a study on ulip product

8/7/2019 A STUDY ON ULIP PRODUCT

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Summer Training Report

On

A STUDY ON ULIP PRODUCT

At

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD.

AGRA

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE

MASTER OF BUSINESS ADMINISTRATION

By

Saurav Kumar Sharma

Roll No 0625170045

(2006-2008)

GLA

Institute of Business Management,

MATHURA (U.P.)


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Affiliated To U.P. Technical University,

Lucknow

PREFACE

The importance of an academic course would gain advantage and

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

it is quite necessary to put the theories into talk. It is rigidly accepted

tha t the theory wid en s o nes think in g h or izon s v iz . Con cept s o f

marketing philosophies , but practice indicates the modern marketing

and used in variety of settings of products.

The s ummer t ra in in g p ro grammers a re d es ig ned to g iv e the

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

real l i fe s i tuat ions are entirely different from the s t imulated exercise

enacted in an a rt if ic ia l env iron ment ins id e the s ummer t ra in in g

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

i l l case when the t ime comes to shoulder responsibil it ies . Pract ical

exposure for the MBA students is very necessary because what they

s tudy in the c lass room is no t the rea l i ty . S i tuat ion in the market i s

unknown and very much unpredictable. So the pract ical experience is

very much necessary th is is made poss ible with the summer training

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

out the Potential Insurance Consultants.

All organizations involve into business with some objective and

one o f the object ives i s to endorse p roduct o r serv ice which they

p roduce. In my marketing p roject I t r ied to f ind out the potent ial

Insurance Consultants through questionnaire for the Bajaj Allianz Life

Insurance Co. The product for the insurance company is i ts policies

which company sale through i ts Insurance Consultants. So i ts quite

clear that there wil l be as many Insurance Consultants. There wil l be

increased sales.


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ACKNOWLEDGEMENT

I want to thank to those people who helped me in th is summer

t ra in in g res ea rch p ro ject . F ir st o f a ll I wou ld l ik e to exp ress my

p ro fo un d g ra ti tu de t o t he S al es M an ag er o f B aj aj A ll ia nz L if e

Insurance Co. Satna (M.P . ) Mr. Sandeep Sharma who gave me th is

opportunity to do this project. He always remained a wonderful guide

and supporter throughout this project.

I would l ike to thank to my ins t i tu te a lso where I go t a l l the

knowledge and skills required for this research project.

At the end I want to say thanks to al l persons involved in th is

project directly or indirectly.

RANDHIR SINGH

MBA- III sem.


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TABLE OF CONTENTS

1.Introduction

2.Scope & Importance

3. Company Profile4.About Ulip products Of Bajaj Allianz

5.Distribution Channel

6. Research Methodology

7. SWOT Matrix

8.Limitations

9. Findings

10. Recommendations

11. Conclusion

12. Questionnaire

13. Bibliography


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WHAT IS LIFE INSURANCE

First of all we should come to know that what Life Insurance is .

The different definitions describing life Insurance are as:-

Insurance in which the r i sk insured agains t i s the death o f 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

benef ic iar ies upon the death o f the insured . I t i s general ly used to

p rov ide cash to your family in the even t o f your death . There are

several types of life insurance whole life insurance provides a lifetime

of p rotect ion as long as you pay the p remiums to keep the po l icy

a ct iv e. T he y a ls o a cc ru e a c as h v al ue a nd t hu s o ff er a s av in gs

component. Term l ife insurance provides protect ion only during the

term of the policy and the policies are usually renewable at the end of

the term. Insurance on human l ives includ ing endowment benefi t s,

additional benefits in event of death or dismemberment by accident or

accidental means, additional benefits for disability, and annuities.


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SCOPE AND IMPORTANCE OF STUDY

This report its a complete data analysis of two areas of functioning of an

organisation which a joint venture between Bajaj Auto and Allianz. The company is

one of the Indias leading private life insurance companies and is ranked 2006 in

fortune 500 company. It is Bajaj Allianz Life insurance co. ltd.

Insurance is a social device where uncertain risks of individuals may be combined

in a group and thus made more certain small periodic contribution by the individuals

provide a fund out of which those who suffer losses may be reimbursed. In addition to

being a means to protect oneself, the Insurance Industry is an effective conduit for the

savings of people to be channeled towards economic growth. In India, the Insurance

Industry is more than 150 years old. Today, it is monopolized by two PSUs in their

respective fields of Life and General Insurance.

Insurance plays a very important role in the day-to-day activities of the

common man, business houses, industries, agriculturists and other service providers.

Insurance not only provides protection for individual and industry through risk

coverage; it also mobilizes funds for economic activity, and encourages savings. Thus

an insurance cover is considered an important tool for economic stability. The

insurance industry is a key sector in the economy of any country.

The liberalization of the financial sector was started in 1991 and carried forward by

successive governments. These reforms were carried out in a phased manner and

affected the entire financial sector.


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Till now, however, the insurance sector had been left out of this reform process. With

the passage of the IRDA bill in December, 1999, the way has been paved for the entry

of private players into this long neglected aspect of the Indian economy.

However, the opening up of this sector does not mean that its character will undergo a

sea change. The public sector behemoths will continue to enjoy a huge market share.

It is up to the new players to device innovative strategies to both grab business from

the existing companies as well as expand the size of the pie itself.

The main benefits of this new competitive environment will be to the consumer, who

till now, has had to put up with shoddy products and even shoddier service. The new

entrants will look for new channels of distribution for their products, and banks will

play a very important part as the likely interfaces between the insurance companies

and their prospective customers.

The report gives a brief background of the sector and proceeds to highlight the

performance of the Sales Manager. The benefits of a liberalized sector are

enumerated. The report also tried to identify the market potential and gives

information to how to convince people for insurance products and the strategies that

can be employed to exploit the same.


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LIFE INSURANCE INDUSTRY IN INDIA

Many may not be aware that the life insurance industry of India

is a s o ld as i t is in any other part of the world . The f irs t Indian Life

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-life) mainly with regional focus flourished

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

b y the u ne th ical s tand ards ado pted b y s ome p layers aga in st the

consumers, nationalized the industry in two phases in 1956 (life) and

1 97 2 (no n- li fe ). The ins uran ce b us in es s o f the cou nt ry 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 g rowing a t the ra te o f 15-20 percen t

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

c ou nt ry s G DP . I n s pi te o f a ll t hi s g ro wt h t he s ta ti st ic s o f t he

penetration of the insurance in the country is very poor. Nearly 80% of

Indian populations are without Life Insurance cover and the Health

Insurance. This is an indicator that growth potential for the insurance

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

regulations were introduced in the insurance sector and inc onti nua ti ons M alhot ra Comm it te e was c onst it ut ed by t he

government in 1993 to examine the various aspects of the industry. The

Committee recommended throwing open the sector to private players to

usher in compet i tion and b r ing more choice to the consumer. The

objective was to improve the penetration of insurance as a percentage

GDP, which remains low in India even compared to some developing

c ou nt ri es i n A si a. T he k ey e le me nt o f t he r ef or m p ro ce ss w as

Par ti cipa tion o f o vers eas ins uran ce companies w ith 2 6% cap it al .


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Creating a more efficient and competitive financial system suitable for

the requirements of the economy as the main idea behind the reform.


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A BRIEF HISTORY

The origin of insurance is very old. The time when we were not

e ven bor n; w as ha s sought some sor t of pr ot ect ion f rom t he

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

himself agains t any form of r isk and uncertainty led to the origin of

insurance.

The insurance came to India from UK; with the establishment of

The Oriental Insurance Corporation in 1818. the Indian Life Insurance

company act 1912 was the first s tatutory body that started to regulate

the Life Insurance business in India. By 1956 about 154 Indian, 16

foreign and 75 provident firms 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 worked towards spreading Life Insurance and building a wide

network across the leng th and the b reath o f the country . Af ter the

l ib er al iz at io n t he e nt ra nc e o f f or ei gn p la ye rs h as a dd ed t o t he

competition in the market.

The General Insurance business in India, on the other hand, can

trace i ts roots to the Tri ton Insurance Company Ltd, the f irs t General

Insurance Company es tab l ished in the year 1850 in Calcu t ta by the

Brit ish . In 1957 General Insurance Council , a wing of the Insurance

Ass oc ia tion o f Ind ia , f rames a cod e o f con du ct for ens ur in g fai r

conduct and sound business pract ices. In 1972 the General Insurance

Business in India with effect from 1 s t January 1973. it was after this

that 107 insurers amalgamated and grouped in to four companies viz.

the Nat io na l Ins uran ce Company L td , the New Ind ia Ass uran ce

Company Ltd, the Oriental Insurance Company Ltd. GIC incorporated

as a company.


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INSURANCE SECTOR REFORMS

I n 1 99 3, M al ho tr a C om mi tt ee h ea de d b y f or me r F in an ce

Secretary and RBI Governor was formed to evaluate the Indian industryand g iv e i ts r ecommend at io ns . The commi tt ee came u p 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 l lowed to en ter the indust ry in

collaboration with the domestic companies.

Only one s tate level Life Insurance Company should al low tooperate in each state.

Reforms were initiated with the passage of Insurance Regulatory

and Development Authority (IRDA) Bill in 1999. IRDA was set up as

an independent regulatory authority, which has put in place regulations

in line with global norms.

IRDA:

The IRDA since i ts incorporat ion as a s tatutory body has been

f raming reg ulat io ns and reg is te ring the p riva te s ec to r ins uran ce

companies . IRDA b eing an ind ep en dent s ta tu to ry b od y h as p ut a

framework of globally compatible regulations .


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INSURANCE MARKET IN INDIA

By a ny ya rds ti ck, w it h a bout 200 mi ll ion mid dle c las s

households, p resents a huge untapped potent ial fo r p layers in the

insurance industry. Saturation of markets in many developed economies

has made the Indian market even more at tract ive for g lobal 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 expected to grow at an attractive rate in India.

An independent consulting company, the Monitor Group has estimated

that the Life Insurance market will grow.

WINDS OF CHANGE

Reforms have marked the entry 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, Allianz,

Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry

of new players has rejuvenated the ers twhile 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 overal l expansion in the market . This has

been poss ible due to improved awareness levels thanks to the largenumber o f adver ti s ing campaigns launched by a l l the p layers . The

scope for expansion is s t i l l unlimited as v ir tual ly al l the players are

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.

New Product Offerings:

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


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of their international partners. Customers have tremendous choice from

a large varie ty o f p roducts f rom pure term insurance to un it - linked

investment products. Customers are offered unbundled products with a

v ar ie ty o f b en ef it s a s r id er s f ro m which they can cho os e. More

customers are buying products and services based on their t rue needs

and not just traditional money-back policies, which is not considered

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

are s t i l l some key new products yet to be in t roduced e .g . heal th

products.

Customer Service:Not unexpected ly , th is was one area that wi tnessed the mos t

significant change with the entry of new players. There is an attempt to

b ring in interna tion al b es t p ract ices in s ervice and o pera tion al

eff iciency though use of lates t technologies . Advice and need based

s el ling i s emerg in g throu gh much b et te r t ra in ed s ales force and

advisors . There is improvement in response and turnaround t imes in

specific areas such as delivery of first policy receipt, policy document, p remium not ice , f inal matur ity payment , se tt lement o f c laims e tc.

However , there i s a long way to go and var ious cus tomer surveys

indicate that the standards are still below customer expectation levels.

Channels of Distribution:

T il l t wo y ea rs b ac k, t he o nl y m od e o f d is tr ib ut io n o f l if e

insurance products was through Agents . While agents continue to be

the predominant d is tr ibution channel , today a number of innovative

alternative channels are being offered to customers. Some of them are

banc assurance, brokers, the internet and direct marketing. Though it is

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

could lead to banc assurance emerging as a s ignif icant d is tr ibution

mechanism.


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The introduction of private players in the industry has added to

the co lo rs in the dul l indust ry. The in it iat ives taken by the p r ivate

p layers are very competi t ive and have given immense competi t ion to

the o n t ime mon op oly o f the marke t L IC . S in ce the adv en t o f the

private players in the market the industry has seen new and innovative

s teps t ak en b y the p layers in thi s s ec to r. The n ew p layers h av e

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 players. LIC market share has decreased

from 95% (2002-03) to 82% (2004-05).

The fol lo wing companies h av e the marke t s ha re o f the l if e

insurance industry.

Insurance Company Market Share (Fig. in %)

LIC 74.44

ICICI Prudential 12.35

Bajaj Allianz 7.28

HDFC Standard Life 2.37

Other s 3.56

Market Share of Life Insurance Companies as of May 2007


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CURRENT SCENARIO OF THE

INSURANCE INDUSTRY IN INDIA

India with about 200 mil lion middle class household shows a

h ug e u nt ap pe d p ot en ti al f or p la ye rs i n t he i ns ur an ce i nd us tr y.

Satu rat ion o f markets in many developed economies has made the

Indian market even more at tract ive for g lobal insurance majors . The

insurance sector in India has come to a position of very high potential

and competitiveness in the market.

Innovative products and aggressive distribution have become the

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

d ev ic e, a re n ow s ud de nl y t ur ni ng t o t he p ri va te se ct or t ha t a re

providing them new products and variety for their choice.

Life Insurance industry is wait ing for a b ig growth as many

Indian and Foreign companies are wait ing in the l ine fo r the g reen

signal 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 benefits . How the customer is going to

make his choice will determine the future of the industry.

CUSTOMER SERVICE

Consumers remain the most important centre of the insurance

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

of competi t ion and thus improvement of the customer service in the

industry. Computerization of operations and updating of technology has

become imperative in the current scenario. Foreign players an bringing

i n i nt er na ti on al b es t p ra ct ic es i n s er vi ce t hr ou gh u se o f l at es t

technologies. The one time monopoly of the LIC and its agents are now

going through a through revis ion and training programs to catch upwith the other private players.


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DISTRIBUTION CHANNELS

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

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

in the country like India but still the increasing use of other sources is

imp erat iv e. I t t he re fo re mak es s en se to loo k a t wel l b alan ced,

alternatives channels of distribution.

LI C has a lr ea dy we ll e st abli she d a nd ha ve a n e xt ens ive

distribution channel and presence. New players may find it expensive

and t ime consuming to b r ing up a d is t ribut ion channel to have an

advantage.

At present the distribution channels that are available in the

market are:

Direct Selling

Corporate Agents

Group Selling

Brokers and Cooperative Societies

Banc assurance

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

very alert and skil lfu l to know how to use these channels in a proper

wa y. Ba nc assur ance i s on of t he mos t upcomi ng c ha nne ls 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

customers long-standing trust and relationships with banks. This is a

mutually beneficial s i tuat ion as banks can also expand their range of

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

earn profits from the exposure. Another advantage is that banks, with

their network in rural areas, help to fulfill rural and social obligations

stipulated by the Insurance Regulatory and Development Authority

(IRDA) recently. Insurance companies should see banc assurance as a

tool for increasing their market penetration in India. It is also good for

the one who sees banc assurance in terms of reduced price, high quality

product and delivery at doors teps . Everybody is a winner here. The

creation of banc assurance operations has made an important impact on

the f inancial services industry at large. This is though a new concept

but it has gained a lot of importance in the industry at present and has a

great future.

PRODUCT INNOVATION

Cus to mers h av e t remend ou s cho ice f ro m a l arge v ar ie ty o f

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

Customers are offered unbundled products with a variety of benefits as

r id er s f ro m which they can cho os e. More cus to mers a re b uy in g

products and services based on their true needs and not just traditional

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 et it e f or m ob il e p ho ne s,

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

the p r ivate p layers having en tered in to the insurance indus t ry , the

expected explosion in job opportunities may not actually happen but for

them the ca tchments area i s the oppor tun i t ies in the ru ra l Ind ia . In

India the insurance bus iness can be said to be a marathon, not a

sprint. This is because of the nature of the business being long term.

However i t seems that they if not anything, are only increas ing their

spending, though only out of the capital . As insurance companies go

more and more rural in search of business, there will be opportunities

in the rural sector . Already United India The Rural consumer is now

exhibiting an increasing propensity for Insurance products. A research

conducted exhibited that the rural consumers are wil l ing to dole out

anything 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 cus tomers are a lso aware about motor , acciden ts and

catt le insurance. According to a s tudy nearly one th ird said that they

had purchased some kind of insurance with the maximum penetrat ion

skewed in favor o f l i fe insurance. The s tudy a lso poin ted out the

private companies have huge task to play in creat ing awareness and

creditability among the rural populace.

INFORMATION TECHNOLOGY AND INSURANCE

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

selling a broad range of products to a large volume of cus tomers in a

o ne- s ize- f it s-al l man ner. Ins tead o f focus in g o n the ir d if fe rent

products lines as silos (i .e. , l ife, property and casualty etc) insurers are

looking for ways to offer h ighly targeted insurance products that are


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tailored to the individuals customers with the highest propensity to buy

them. Insurance indust ry i s a data- r ich indust ry, and thus , there i s

desire need to use the data for trend analysis and personalization.

With increased competition among insurers, service has become a

k ey i ss ue . P eo pl e t od ay d on t w an t t o a cc ep t t he c ur re nt v al ue

propositions, they want personalized in teract ions and they look for

more and more fea tu res and add o nes and b et te r s ervice . Tod ay

managing the customer inte ll igen tly i s very cr it ica l fo r the insurer

especially in the very competit ive environment. Companies need to

app ly d if fe rent s et o f rules and t reatment s tr at eg ies to d if fe rent

customer segments.

With the explos ion of Website and greater access to d irect or

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

give customers a truly personalized experience. Personalization helps

o rg an izat io ns to r each the ir cus to mers w ith more imp ac t and to

generate new revenue through cross selling and up selling activities. To

ensure that the customers are receiving personalized information, many

organizat ions are incorporat ing knowledge database-repositories of

content that typical ly include a search engine and let the customers

locate the a l l document and information re la ted to thei r quer ies o f

request for services. Customers can hereby use the knowledge database

to manage their products or the company information and invoices ,

claim records, and histories of the service inquiry. These products also

may be able to learn from the customers previous knowledge database

and to use thei r information when determin ing the re levance to the

c us to me rs s ea rc h r eq ue st . T he i ns ur an ce se ct or r em ai ns a v er y

competi t ive market and those companies that are able to bes t u t i l ize

the ir d ata and p ro vide the ir cus to mer w ith the mos t p er so na li zed

options will have the distinct competitive advantage.


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MERGERS AND ACQUISTIONS

This is an era of mergers and acquis i t ions . Private companies

i nc lu di ng M NC s a re a ma lg am at in g t he w or ld o ve r t o g et m or e

competi t ive edge. Currently , the general insurance industry has been

opened up . The insurers are do ing enough to ra ise the level o f r i sk

awareness o r a re they merely con tent to compete in the marke ts

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

to turn their attention to working in the unorganized and under served

markets.

What i s l ik ely to h ap pen i s tha t the p riva te p layers wou ld

cont inue to skim the p rof i tab le segments o f the a l ready organ ized

b us in es s in the u rb an a reas ? The t ime h as a lr eady come for the

government of India to evaluate the performance of private companies.

Howev er i t i s h ig h t ime for the g ov ernmen t to r ea li ze tha timportance of merging the public sector general insurance companies

into s ingle enti ty . The recent scenario cal ls for a bet ter performance

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

o ther . The resu l t what we see i s the undercu t t ing to re ta in o r wres t

business and quoting an uneconomical rate of premium. While th is

a l lows one o f the Public Sectors Company to win a bus iness fo rm

another in this manner. The others suffer a loss and the resultant effect

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

sector itself.

T he p ur po se o f h av in g f ou r c om pa ni es a ll s ubs id ia ri es o f

General Insurance Corporation of India (GIC) National Insurance

Company, New India Assurance Company, Oriental Insurance

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

nationalization was to have competition among themselves in service


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and products at the same price.

Now with real competi t ion coming in with most of the global

insurance players set t ing footprints here, i t is fel t that the t ime for

merger has come and to enjoy the benefits if the size. It is to be stated

tha t s ize d oes mat te r in ins uran ce b us in es s. A ll o ver the wor ld s

mergers and acquis i tions in the r isk-underwrit ing sector is common.

The benefits if the four insurance companies merge will be enormous.

The merged enti ty wil l enjoy higher underwrit ing and r isk retention

capacity; increase in reinsurance premium, reduction in reinsurance

outf low, heal thy solvency marg ins, se tt ing r igh t the asse t- l iab il i ty

mismatch and reduction in cost. The loss of profitable business in view

of undeserved compet i tion among the pub l ic secto r companies i s

hampering the subsidizat ion of social insurance including the motor

third party liability (TPL).

It is thus clear that it is good for the public sector companies to

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

inevitable later after the independent public sector companies fail one

after another.

STRATEGIC ALTERNATIVES

If one analyses the his tory of growth of the insurance industry

since reforms, it is marked by all- round growth of all players. More or

less a l l p layers have aggress ively recru ited and t rained advisors ,

appointed agents , launched new products, improved customer service

s tandards and revamped/expanded their d istr ibution networks. Every

player would like the customers to believe that its service standards are

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

words, each company is trying to be everything to everybody. Some

players justify the above strategy on the basis that the Indian market is

huge and it can accommodate everybody. Still , in a market where it is

d if f icu lt to d ist inguish onesel f suff ic ien tly on serv ice o r any o ther


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parameter to be able to charge a premium, i t wil l lead to unmitigated

p r ice compet i tion to the detr iment o f a l l p layers . 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 finger in every

pie, i t is profi table for the players to focus on different segments to

s urvive and thr iv e in a mul ti -f irm o pen env iron ment . Whi le each

company has to choose its own unique positioning based on its unique

strengths.

Variety-based Positioning

This type of positioning is based on varieties in products andservices rather than customer segments . I t is a sensible s trategy for

tho se companies who h av e d is tinc tive adv an tages o r s tr en gths in

offering certain products and services.

In the insurance industry too, i t is poss ible to achieve a unique

pos i tion by focusing on certa in ca tegory o f p roducts. Through i t s

superior fund management capab il i ties, the insurance company can

deliver better returns on it investment-linked products and thereby for

itself a leadership position in this segment.

Then there is the entire category of pension products , which is

wid ely tou ted to h av e immen se g ro wth p oten ti al in Ind ia d ue to

i mm in en t p en si on r ef or ms . I t i s p os si bl e t o a ch ie ve p ro fi ta bl e

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 successfully if a company has unique s trengths to service a

group of customer needs better than others.

The insurance needs of young family with small children will be

qu i te d i f feren t f rom that o f a family in which the income-earner i s

c lose to re ti rement . However , in India mos t o f the L ife Insurance

companies have a wide variety of products of different customer needs


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and there is no company focusing only on a particular customer needs.

Access- based Positioning

Positioning of customers can also be done by the way they are

access ible that is d ifferent groups of cus tomers may be access ible in

d i f feren t ways even though they may have s imi lar needs . Access i s

typically a function of customer scale.

There i s excel lent o pp or tu ni ty in the ins uran ce ind us try to

employ access-based pos i tion ing by targeting the ru ra l insurance

sector . The rural market for Life Insurance is very different from the

u rb an marke t in t erms o f n eeds , income lev el s, d is tr ib ut io n, and penetrat ion of media and so on. Except for LIC, no other p layer has

paid any at tention or focus on the rural sector . Contrary to common

perception i t is a b ig opportunity as emphasized repeatedly by such

eminent s trategies l ike C.K.Prahlad. Rural market can be a h igh ly

profitable position if one is able to carefully plan.

CHOOSING THE RIGHT STRATEGY

The r ight s trategic choice is not a matter of posi t ioning choice

alone. It is the configuration of the entire value chain of the company

t hr ou gh a d if fe re nt s et o f a ct iv it ie s t o d el iv er u ni qu e v al ue t o

consumers . The set of act iv i t ies cover al l upstream and downstream

activities, from the selection of the product mix. Some Life Insurance

companies focusing on rural markets have adopted innovative means of

d is tr ibution. Ins tead of appointing agents as is done typically , they

have used Gramsevaks in d i fferen t v i llages across the country to

promote Life Insurance and act as their sales arm.

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

the s ize o f the insurab le popula t ion in Ind ia i s indeed vas t and the

existing players have managed to cover about one-fourth of it .


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The fa ll ing in teres t ra tes , the co llapse o f many smal l time

financial institutions, the scope for entering related areas like banking

and pensions in a b id for synergy and the promise of the e-commerce

are s ome o f the o th er o pp or tu ni ti es k no ck in g a t the d oo rs o f the

insurance majors.

A n um be r o f w eb s it es a re c om in g u p o n i ns ur an ce , a f ew

financial magazines exclus ively devoted to insurance and also a few

training institutes being set up hurriedly. Many of the universities and

management institutes have already started courses in insurance.

L ife ins uran ce h as tod ay b ecome a mains tay o f any marke t

economy s ince i t offers p lenty of scope for garnering large sums of

mon ey for lon g p er io ds o f t ime. A wel l r eg ulated L ife Ins uran ce

industry which moves with the times by offering its customers tailor-

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

we desire to progress towards a worry-free future.


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ABOUT BAJAJ ALLIANZ LIFE INSURANCE

Mission:

As a responsible customer focused market leader, we still striveto understand the insurance needs of the 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.


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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 All ianz Life Insurance Co. Ltd is a jo int venture between

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

three-wheeler manufacturers in the world and All ianz AG, one of the

worlds largest insurance companies.

Bajaj Allianz 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 with 28000 Insurance

Consultant providing the finest customer service.

Bajaj Allianz General Insurance Company Limited

Bajaj Al lianz General Insurance Company Limited i s a join t

venture between Bajaj Auto Limited and Allianz AG of Germany. Both

enjoy a reputation of expertise, stability and strength.

B aj aj A ll ia nz G en er al I ns ur an ce r ec ei ve d t he I ns ur an ce

R eg ul at or y a nd D ev el op me nt A ut ho ri ty ( IR DA ) c er ti fi ca te o f

Reg is tr at io n (R3 ) o n May 2n d , 2001 to conduct General Insurance

business (including Health Insurance business) in India. The Company

has an au thor ized and paid up cap i ta l o f Rs .110 crores . Baja j Auto

holds 74% and Allianz holds the remaining 26%. AG, Germany.

In its first year of operations the company has acquired the NO. 1

s tatus among the p r ivate non- li fe insurers. As on 31s t March 2003,


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Bajaj Allianz General Insurance maintained its leadership position by

garner ing a p remium income of Rs.300 Crores. Baja j Al lianz 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 Allianz today has a network of 40 offices spread across the

length and breadth of the country. From Surat to Sliliguri and Jammu to

Thiruvananthapuram, al l the 38 offices are in terconnected with the

Head Office at Pune.

In the f i rs t ha l f o f the Curren t f inancia l year , 2006-07 , Baja j

Allianz generated a premium income of Rs. 5310 crores, achieving a

g ro wth o f 8 4% and reg is te red a 5 2% g ro wth in n et p ro fi t. In the

financial year 2005-06, the premium earned was Rs.3133 Crores, which

is a jump of 60% and the profit zoomed by 125% .

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 servicesproviders.


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

countries with over 19,000 employees 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.

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, i t has evolved into the

company's "living memory".

Global Presence

Allianz Group is present on every continent and has companies

and offices in about 70 countries. More information about our locations

throughout the world is available by moving the cursor over the world

map.


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Business Fields

Property & Casualty Insurance

When it comes to property and casualty insurance, Allianz is number one inGermany. Allianz also ranks as one of the world's leading global 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.

A ll ianz AG i s in the b us in es s o f Gen eral (Prop er ty & Cas ua lty)

Insurance; Life & Health Insurance and Asset Management and has

been in operat ion fo r over 110 years. Al lianz i s one o f the largest

g lobal compos i te insurance wi th operat ions in over 70 countries.

Further , the Group provides Risk Management and Loss Prevention

Services. Allianz 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 , b es id es b eing a l arge ind us tr ia l ins ure, A ll ianz h as a

substantial portfolio in the commercial and personal lines sector, using

a wide variety of innovative distribution channels.

Allianz AG has the following of offer Bajaj Allianz General Insurance

Company Ltd.:


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Set up and running of General insurance operations

New and improved international products

One of the worlds leading insurance companies

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

worldwide

Provides insurance to almost half the Fortune 500 companies

A Partnership Based on Synergy

Bajaj A ll ianz Gen eral Ins uran ce Company o ffer s t echn ical

excellence in all areas of General and Health Insurance as well as Risk

Management. This partnership successfully combines Bajaj Autos in-depth unders tanding o f the local market and extens ive d ist r ibut ion

network wi th the g lobal exper ience and technical exper ti se o f the

Allianz Group. As a registered Indian Insurance Company and a capital

base of Rs.110 crores, the company is:

Fully l icensed to underwrite al l l ines of general insurance business

including health with management control by Allianz AG

About Bajaj Allianz Life Insurance:

Bajaj All ianz Life Insurance Company has developed insurance

solut ions that cater to every segment and age- income prof iles. I t s

p ro du ct s inc lu de Inv es t Gain (a u niqu e l if e ins uran ce p lan where

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

sum), Cash Gain (Money Back) , Child Gain(Chi ldrens 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), Unit Gain (Unit Linked Whole of Life Plan) and

Unit Gain Single Premium.

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

market and has already become the fastest growing private life insurance


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company in Ind ia . Baja j Al l ianz Life Insurance has a wide pan Ind ia

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

a strong and trained Agency network of over 28000 agents. Bajaj Allianz

has also forged strong Banc assurance and Corporate Agency relationship

and con t inues to bu i ld on new t ie-ups fo r fas t t rack g rowth and deep

market penetration.

Bajaj Allianz Life Insurance has launched a slew of need-

based products to cater to each varied needs of the customer.

Currently Bajaj Allianz Life Insurance has a product portfolio of 19

products and more need-based products are in the pipeline.

Bajaj Allianz general Insurance: 125 percent profit

Increase

Bajaj Al lianz General Insurance Company Limited i s a join t

venture company between Bajaj Auto Ltd., Indias leading

manufacturer of two and three wheeler vehicles and the Allianz Group.

Bajaj Allianz General Insurance offers technical excellence in all

areas of general and health insurance and risk management.

The partnership successfully combines Bajaj Autos extensive

unders tanding o f the local market and expansive d is t ribut ion wi th

Allianz Groups global experience and technical expertise.

Bajaj Allianz General Insurance is headquartered in Pune and has


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

fully networked. The company received the IRDA registration in may

2001 ; today, i t a l ready has a vas t range o f 45 p roducts to su it i t s

corporate and re ta i l customers. The company has a lso p ioneered in

unique forms of risk cover.

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

of approximately 4 .8 bi l l ion Rupees (86 mil l ion Euros) with a profi t

after tax of 220 million Rupees (3.9 million Euros); it sold 1.2 million

p ol ic ies. With thi s r es ul t, i t ach ieved a n et p ro fi t g ro wth o f 1 25

percent, gross written premiums jumped by over 60 percent.

All ianz Bajaj Changed Its Name To Bajaj All ianz Life

Insurance

Allianz Bajaj Life Insurance Co. Ltd. , the fastest growing private life

insurance co. today announced that it has changed its corporate name to

Bajaj Allianz Life Insurance Co. Ltd, effective from August 03, 2004.

The change in company name comes in conjunct ion wi th research

f ind ings f rom ex is t ing cus tomers , bus iness associa tes , p rospective

customers and other s takeholders indicates h igher comfort level and

ease of recalling Bajaj name first and then Allianz, and hence the name

Bajaj Allianz.

Baja j Al lianz General Insurance Company Limited and Baja j

Allianz Life Insurance Company Limited will now have a common logoa nd b ra nd in g w hi ch w il l h el p i n i nc re as in g o ur v is ib il it y a nd

familiar i ty , which wil l create a much larger awareness and a greater

mind share. The new logo incorporates the new Bajaj Auto logo.

Commenting on th is occas ion Mr. Sam Ghose Manager, All ianz and

CEO, Bajaj Allianz Life Insurance said, we are not only acquiring a

n ew n am e, b ut h av e p ut i n m ot io n a n ew l ev el o f en erg y a nd

commitment to del ivering the best products . The name change

coupled with aggressive strategic market initiatives to reach service


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c us to mer s b et te r w il l g iv e us a n u nb ea ta bl e p os it io n i n t he

insurance market in t hi s count ry and bot h Lif e and General

companies together can unleash the Power of One and be the

leader in the insurance industry.

Bajaj All ianz Life Insurance recently launched over 100 satel l i tes

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

All ianz (formerly known as All ianz Bajaj) to log in Rs .100 Cr. Gross

Written Premium (GWP) in the first 100 days of this financial year and

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

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

Bajaj Allianz Life Insurance has also brought in the key executives,

to infuse greater thrus t , new ideas, eff iciency and professionalism to

impart s tate of the art servicing to the customers across the length and

breadth of the country.

CORE COMPETENCIES AT BAJAJ ALLIANZ LIFE

INSURANCE

The Bajaj Allianz Difference

Business strategy aligned to clients needs and trends in India and

global economy industry

Interna tion al ly exp er ienced core t eam, major ity w ith local

background

Fast, decentralized decision making

Long-term commitment to market and clients


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Trust

At Bajaj All ianz, they have real ized that the customer seeks an

insurer whom he/she can trus t . Bajaj All ianz Limited is t rus ted name

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

years o f g lobal exper ience in f inancia l serv ices . Together they are

commi tt ed to p ro vide the cus to mer w ith t ime t es ted and t ru sted

financial solut ions that provide the customer al l the securi ty 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

The Bajaj Allianz team follows a service that aims at taking the

anxiety out of claims processing. They pride themselves on a friendly

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

hass le free and speedy claims process ing. Their claims philosophy is

to:

Be flexible and settle fast

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

Check processes regu lar ly against the g lobal Al lianz OPEX

(Operational Excellence) methodology


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Customer Orientation

At Bajaj Allianz, the guiding principals are customer service andclient sat is faction. All the efforts are d irected towards unders tanding

the culture, social environment and individual insurance requirements-

so that they can cater to all the customers varied needs.

Experienced and Expert Servicing Team

Bajaj Al l ianz i s d r iven by a team of exper ienced peop le who

understand Indian risks 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 customers

n eeds , they h av e estab li sh ed wor ld s c lass t echn olog y, w ith

renowned insurance software, which networks all our offices andintermediaries

Using the Web, policies can be issued form any office across the

country for retail products

Unique, user fr iendly software developed to make the process of

i ss ue o f p ol ic ies and c la ims s et tl emen t s impler ( e. g. o nl in e

insurance of marine policy certificate)


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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 tried, 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

IRDA AND ITS GUIDELINES

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development

Authority (IRDA, which was constituted by an act of

parliament) specify the composition of Authority

The Authority is a ten member team consisting of


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(a) a Chairman;

(b) five whole-time members;

(c) four part-time members,

(all appointed by the Government of India)

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..

(1) Subject to the provisions of this Act and any other law for the time being in force,

the Authority shall have the duty to regulate, promote and ensure orderly growth of

the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub- section (1),

the powers and functions of the Authority shall include, -

(a) issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration;

(b) protection of the interests of the policy holders in matters concerning assigning of

policy, nomination by policy holders, insurable interest, settlement of insurance claim,

surrender value of policy and other terms and conditions of contracts of insurance;

(c) specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

(d) specifying the code of conduct for surveyors and loss assessors;

(e) promoting efficiency in the conduct of insurance business;

(f) promoting and regulating professional organizations connected with the insurance

and re-insurance business;

(g) levying fees and other charges for carrying out the purposes of this Act;

(h) calling for information from, undertaking inspection of, conducting enquiries and

investigations including audit of the insurers, intermediaries, insurance intermediaries

and other organizations connected with the insurance business;


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(i) control and regulation of the rates, advantages, terms and conditions that may be

offered by insurers in respect of general insurance business not so controlled and

regulated by the Tariff Advisory Committee under section 64U of the Insurance Act,

1938 (4 of 1938);

(j) specifying the form and manner in which books of account shall be maintained and

statement of accounts shall be rendered by insurers and other insurance

intermediaries;

(k) regulating investment of funds by insurance companies;

(l) regulating maintenance of margin of solvency;

(m) adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

(n) supervising the functioning of the Tariff Advisory Committee;

(o) specifying the percentage of premium income of the insurer to finance schemes

for promoting and regulating professional organizations referred to in clause (f);

(p) specifying the percentage of life insurance business and general insurance

business to be undertaken by the insurer in the rural or social sector; and

(q) exercising such other powers as may be prescribed


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ULIP

ULIP is a unique investment scheme from the Unit Trust of India, offering an


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Insurance cover along with tax benefits and high returns.

Unit linked insurance plan (ULIP) is life insurance solution that provides for the

benefits of protection and flexibility in investment. The investment is denoted as

units and is represented by the value that it has attained called as Net Asset Value

(NAV). The policy value at any time varies according to the value of the

underlying assets at the time.

The company ULIP funds were placed in ranked 1st, 3rd, on the basis of maximum

return since its inception.

Latest survey done by leading personal finance magazine outlook. In the earlier six

month ago in July BAJAJ ALLIANZ funds were first and second.

Employee Benefit solution:

Gratuity, super annotation , key man insurance and for individual invest gain , cash

gain , child gain, Risk care, life time care , swarana vishranti , unit gain, unit gain sp,

Unit gain easy pension plan.

KOTAK ULIP PRODUCTS:

Capital multiplier plan, retirement income plan, child advantage plan, premium return

plan.

ICICI ULIP PRODUCTS:

Secure plus etc.

LIFE INSURANCE PRODUCTS


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LIFE LONG GAIN

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

al low customer to have the bes t o f a l l words regu lar income fo r

customer and the added benefits of providing for loved ones too. This

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

like debts, expenses on children, living expenses, etc. It can also take

care of unforeseen expenses like accidents, il lness. Hospitalization etc.

and provides a family with a safety net.

How does the plan work?

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

the allocation rate) and units are allocated depending on the offer price

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

that a customer holds in the fund. The life insurance cover charges are

de duct ed thr ough mont hly c ance lla ti on of unit s a nd the f und

adminis trat ion charge and fund management charge are priced in the

unit value.

Benefits available under the plan

Death Benefit: In the case of unfortunate premature death the

beneficiaries are entitled to the greater of:

Sum Assured less partial withdrawals

The bid value of units

If 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 Benefits are available under this policy.


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Bajaj Allianz Life Insurance will pay, by cancellation of units in the

account of the policy, 3% of the Sum Assured every year after the

premium payment are over t i l l the termination of the policy. This

guaran teed amount i s payab le every year p rov ided a l l p remiums

have been paid and no partial withdrawal were made, the guaranteed

survival benefit would be 3% (Sum Assured less partial withdrawal)

for the subsequent policy years. If the partial withdrawals made are

equal to the Sum Assured, then the guaranteed survival benefit will

b ecome n il and fun ds in the accou nt w il l b e ava il ab le to the

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

them.

Maturity Benefits:

On the life assured attaining age 100, the bid value of unit in the

fund will be paid out and the policy will terminate.

Full Withdrawal:

Li fe long Ga in of fe rs the c ust ome r the f le xibi li ty of the

wi thdrawals by surrender ing a l l h is uni ts, anyt ime af ter 3 fu ll

years premiums paid. The full withdrawals are paid out at the bid

value of units . On full withdrawal the policy will terminate.

Partial Withdrawal:

Lif el ong Ga in a llow s the c ustome r t o ma ke par ti al

withdrawals anytime after al l the premiums are paid . This g ives

the customer the liquidity and option to take out additional money

over and above the guaran teed surv ival benef it s , as and when

required. In case of partial withdrawal, a minimum withdrawal

amo un t i s Rs.10 00 /- . In the cas e o f a p ar ti al w ithd rawal, the

subsequent Guaranteed


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

li fe i nsur anc e pl an t hat c an t ake c are of al l his/ he r c ha nging

requ irements th roughout thei r l i fe . This p lan has been des igned to

provide them with maximum flexibil i ty , 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 p ro tect io n o f l if e ins uran ce with the a tt ract iv e p ro sp ec ts o f

investing in securities. A person can choose the

Inves tment funds that he wants to inves t h is money, p rov id ing an

opportunity to have a d irect s take in the performance of the f inancial

market. Customer also benefits from attractive tax advantages and can

protect loved ones against unfortunate events .


The premiums paid are inves ted in fund / funds o f cus tomers

cho ice (depend in g o n the a llocat io n rate) and u ni ts a re a llocated

d ep en di ng o n t he p ri ce o f u ni ts t ha t t he c us to me r h ol ds i n t he

fund/funds. The insurance cover and administration 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:


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

to provide capital appreciation through investment in equit ies .

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

the National Stock Exchange. This fund will invest at least 85%

in equities and maximum 15% in debt and cash.

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 potential for h igh capital appreciat ion. This

fund will invest at least 85% in equities and maximum 15% in debt

and cash instruments.

c) Debt Plus Fund : The inves tment ob ject ive o f th is Fund is to

p ro vide accumula tion o f income throu gh inv es tmen t in h ig h

quali ty f ixed income securi t ies l ike G-Secs , and corporate debt

rates AA and above. Th is fund wi l l be inves ted fu l ly in DebtInstruments and money market instruments.

d) Balanced Plus Fund : T hi s f un d i s a f un d o f f un ds . T he

i nv es tm en t o bj ec ti ve o f t hi s f un d i s t o p ro vi de a b al an ce d

investment between long-term capital appreciation and current

income through investment in the Units of Bajaj Allianzs Equity

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

50% in the equ i ty index fund and 50% to 70% in the deb t p lus

fund.

Cash plus Fund: The investment objective of this Plan is to have afund that guarantees invested capital through investments in l iquid


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money market and shor t- term inst ruments l ike Commercia l Papers,

Cert if icate of Deposits , money market , Mutual Funds , Bank FDs etc.

The price of units in th is 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.

Flexibilities to manage customer investments

Bajaj All ianz offers the f lexibil i ty to manage the investments.

Ini tial ly, the customer can al locate the premium into the 5 funds that

a re a va il ab le i n a p ro po rt io n o f h is /h er c ho ic e. Su bs eq ue nt ly ,depending on the performance of funds, customer can switch between

funds and also change the allocation of premium to various funds. They

a llow the cus to mer three s wi tches every p ol icy yea r s ub ject to a

minimum swi tching amount o f Rs. 5 ,000 /- or the f und va lue,

whichever is lower. The customer can also change the proport ion of

premium allocation to various funds at each policy anniversary.

Unmatched Flexibility to suits the customers changing

requirements

Bajaj Allianz Unit Gain Plus offers unmatched flexibility to suit the

policy according to the customers requirements.

Flexibility In Premium Payment: The customer has the

flexibility to decide how long he/she wishes to pay the premiums

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

choose to cash out the policy benefits at one shot or do it as and

when you require cash through partial surrender of units .


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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 times. 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 carr ied forward. If the age is les than 18 years

at the start of policy, all 4 increments will be available from age

1 8. Apart f ro m exerc is in g the o pt io ns to inc reas e the Sum

Assured wi thou t medical tests , he/she can increase the Sum

Assured any time. Subject to medical underwriting (available up

to age 60). In either case, the Sum Assured after increase must be

equal to or less than the maximum Sum Assured available foe the

p remium lev el cho sen. The cus to mer s ho uld g iv e n ot ice o f

inc reas e in d ea th b en ef it 1 5 d ays b efore the yea rly p ol icy

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, after decrease,

must be at leas t 5 t imes the annual premium. After a decrease

subsequent increases will be subject to underwriting.

Flexibility to Pay Top ups: The customer may have received a bonus or some

lump sum money. The customer can use that to increase his/her investments in

their policy.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 time, and so does

their savings potential . With Bajaj All ianz Unit gain Plus , the

customers wi ll have the f lex ibi l ity to increase thei r regu lar

premium amount at any time.


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Assured Protec tion even if the custom er misses

payment of their premiums: Bajaj Allianz Unit Gain Plus

p rov ides the customer wi th the unique features o f cont inued

p ro tect io n even i f they forge t to p ay the ir p remiums. After

payment of three ful l years premiums, when premiums due are

not paid, the policy will s tay in force with full benefits so long

as there are enough uni ts avai lab le fo r charging the Cos t o f

Insurance and Additional Benefits after deducting all applicable

charges.

Important Details of the Bajaj Allianz Unit Gain PlusPlan

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, Allianz have provided 3 regular

p re mi um p ay me nt m od es t ha t c an b e Y ea rl y, H al f Y ea rl y, a nd

Quar ter ly . They a lso o ffer a month ly p remium payment mode wi th

salary deduction schemes. In addition, the customer also has the option

to pay top-ups to increase his/her investments. The minimum premium

is Rs.15 00 0/ - for the Ann ua l Mod e, Rs.75 00 /- for Hal f Yearly,

Rs.3750/- fo r Quar ter ly , and Rs.1500/- fo r the Monthly Mode. The

minimum top-up premium is Rs.5000/-.


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Partial and Full Withdrawals

Unit Gain Plus offers the full flexibility of full as well as partial

withdrawals by surrendering units , anytime after 3 full years premium

are paid. The surrenders are paid put at the value of units , and there is

no surrender penalty on part ial or fu l l withdrawals after fu l l 3 years

premiums are paid.

Key Features

Guaranteed death benefit

Choi ce of 5 i nves tme nt fu nds w it h f le xibl e inve st me nt

management: you can change funds at any time.

Attractive investment alternative to fixed-interest securities.

Provis ion for fu l l /part ial withdrawals any t ime after three ful l

years premiums is paid.

Unmatched flexibility- to match your changing needs.

Benefits

Death Benefits

Cash withdrawal option

New Family Gain

Family Gain is a flexible investment plan with unique first of its Pure Stock Fund.

The investment in this ethical fund will specifically exclude companies dealing in

gambling, contests, liquor, entertainment (Films, TV etc.), hotels, banks and financial

institutions, thus suiting religious sentiments on investment guidelines.

Partial and full withdrawals after 3yrs.

Guaranteed Life Cover: Sum Assured + Value of Units

Additional Benefits:

o

Accidental death and disabilityo Critical illness and hospital cash


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New Unit Gain Super

Insure fully and get MAX allocation up to 93%

Flexibility to:

Manage your investments: 4 funds to choose from, with 3 free switches every

year


Pay top-ups.

Reduce regular premium after 2 yrs.

New Unit Gain Plus

Flexible investment were never so easy


year


Flexibility to increase sum assured and pay top-ups

Assured Protection even if you miss payment of your premium after 3 yrs


o Accidental death and disabilityo Critical illness and hospital cash

New Unit Gain

A low investment flexible investment plan


year


Flexibility to increase sum assured and pay top-ups

Assured Protection even if you miss payment of your premium after 3 yrs


o Accidental death and disability

o Critical illness and hospital cash


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New Unit Gain Premier

A unique single premium product which gives upfront 105% allocation

105% allocation

Guaranteed life cover

Manage your investments:

4 funds to choose from, with 3 free switches every year

Term Care

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

low cost , but also provides for return of premiums on maturi ty . The

premiums returns at maturity will be equal to the single premium or the

s um t ot al o f e qu iv al en t a nn ua l p re mi um s 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.


The Bajaj Al lianz Term care Plan o ffer s the cus to mer the

convenience of choosing between two premium payment options.

Regular Premium Payment: Premium payment throughout

the selected term.

Single Premium Payment: One t ime premium payment for

the selected term at commencement.

Apart f ro m cov er in g the r is k o f n atural d ea th , thi s p lan a ls o

provides the customer the option to choose up to 5 additional benefits .

The customer can select a specific combination of additional benefits

best sui ted to h is/her needs, avai lab le in 4 a t tract ive packages to

choose from.

I. Economy:

This is the basic plan, which is available for both the regular and

single premium payment options.


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II. Protect : This p ack comes with the fol lo wing 3 in-bu il t

additional benefits :

a)Accidental death Benefit.

b) Accidental Permanent Total/Partial Disability Benefit

c) Wa ive r of P remi um Be ne fit ( in ca se of ac cide nt al

permanent total disability)

The Protect Pack is available with the regular premium payment option

only.

III. Health : This p ack co mes wi th the fol lo wing 2 in 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-built additional

benefits :

a) Accidental Death Benefit.

b) Accidental Permanent Total/ Partial Disability Benefit.

c) Wa ive r of P remi um Be ne fit ( in ca se of ac cide nt al

permanent total disability)d) Critical Illness benefit

e) Hospital Cash Benefit

The Total Pack is available with the regular premium payment option

only.


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Benefits :

Accidental Death Benefit

Accidental Permanent Total /Partial Disability Benefit

Waiver of premium Benefit

Critical Illness Benefit

Tax Benefits

Surrender

Loans

LOAN PROTECTOR

The Baja j Al lianz Loan Protector p lan i s a mor tgage term

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

I t i s an eco no mica l way to p ro tect the family f ro m the b urden o f

r ep ayment o f the loan in cas e o f d ea th o f the loaner. The p lan i s

des igned to pay a sum insured that wil l be equal to the outs tandingprincipal amount of the loan due.


The Bajaj Allianz Protector Plan offers the convenience of

choosing between two premium payment options.

I. Regular Premium Payment : Premium payment l imited to

approximately 2/3 r d of loan tenure, while coverage continues for

the full tenure of the loan.

II. Single Premium Payment : One t ime premium payment

covering the customer for the full tenure of the loan .


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Joint Life Availability

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

under th is p lan. Under th is option, both l ives wil l be covered and the

death benefit will be payable in case of death of either life. The policy

terminates on death of either life.

Days of Grace

In 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 monthly mode). After that the policy will lapse.

Revival Of the Policy

It 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 will be effected subject to underwriting. In case of joint life,

revival would be subject to underwriting on both lives.

General Exclusion

W it hi n 1 5 d ay s f ro m t he d at e o f r ec ei pt o f t he p ol ic y, t he

customer have the option to review the terms and conditions and return

the policy, if the customer disagree to any of the term and conditions,

stating the reasons for his/her objections. The customer will be entitled

to a r e fu n d o f th e p remiu m p a id , s u b jec t o n ly to a d ed u c t io n o f a

p ropor t ionate r i sk p remium for the period on cover and expenses

incurred on medical examination and stamp duty charges.

Benefits :

Death Benefit

Premium Payment mode

Tax benefits


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Surrender values/ paid up values

CHILD GAIN

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

can have. It is but natural that a person would like to give his/her best,

and therefore, this is the time when careful financial planning can help

them to fu lf i ll the aspi rat ions that the cus tomers have fo r h is/her

children .


The Bajaj Allianz Child Gain solutions help the customer to

enjoy the joys of parenthood responsibility, with the reassurance of a

secure future for their child.

Common features in the 4 options of Bajaj All ianz Child gain

Solutions.

I. Limited Premium Payment Term Which means tha t the

p remiums are payab le t i ll the cus tomers ch ild a t ta ins age 18

years.

II. The customers contributions grow by way of

compounded annual bonuses, which will be paid to him with

the first guaranteed payout (policy anniversary following age 18 of

you r chi ld ), for in- force p ol ic ies. In add it io n to the ann ua l

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 A ct.


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IV. Assuring Your Childs Future In an uncerta in wor ld, the

p r ime in teres t o f your ch i ld cannot be jeopard ized in any way.

Which is why the Bajaj Allianz has built in some added benefits

in all their plans to protect the interests of your childs future, bycounter insuring you- the policyholder.

Premiums

F or t he c us to me r s c on ve ni en ce t he y h av e p ro vi de d t hr ee

Premium Payment Modes can be Yearly, Half yearly or Quarterly.

T he y a ls o o ff er a Monthly Premium Payment Mode under

salary deduction schemes.

Surrender

They offer the customer the choice of surrendering the policy

p rov ided three fu ll years p remium have been paid (Two years fo r

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

value is 30% of all premiums paid excluding the first year premium andexcluding the premiums for premium waiver benefit and Family Income

benef it and addi t ional benef it op ted fo r. The guaran teed min imum

surrender value after the premium payment term will be the discounted

value of the outstanding installment payments discounted at 10 % p.a.

rate of interest.


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Loans

Loans a re n ot ava il ab le w ith Bajaj Al lianz Child Gain

solutions.

15 days Free Look Period :

Within 1 5 d ays f ro m the d ate o f r eceipt s o f the p ol icy, the

customer have the option to review the terms and conditions return the

policy, if he/she disagree to any of the terms and conditions, stating the

reasons for his/her objections. The customer will be entitled to a refund

of the premium paid, subject only to a deduction of proportionate risk

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 th is product brochure gives the sal ient feature only. The relevant

p ol icy d ocumen t i s the con clus iv e evidence o f the con trac t, and

provides in detail all the conditions. Exclusion related to each of plans

under the Bajaj Allianz Child Gain Solutions.


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INVEST GAIN

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

t he m. K ee pi ng p ro mi se s m ad e t o y ou r l ov ed o ne s i s n ot j us t a

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

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

need to make sure that you have planned for al l the eventuali 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 :

Acciden ts are a lways sudden and somet imes fa ta l . You can t

lessen the emotional shock, but you can certainly soften the financial

one. Bajaj Allianz Accidental Death Benefit gives the loved ones

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

a cc ou nt e qu al t o Su m As su re d. ( Su bj ec t t o a m ax im um o f R s.

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).


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Waiver of Premium Benefit:

An acciden t may lead to permanent to ta l d isab il i ty , l imi t ing

ones ability to earn. Bajaj Allianz Waiver of Premium Benefit is a

helping hand when one needs it most. It waives off all future premiums

while keeping the valuable life insurance cover alive, thus enabling you

to live up to your commitments.

Critical Illness Benefit (CI) :

Some i llness es a re c ri ti ca l. They n ot o nly a lt er o nes l if e s

pat tern but also result in a f inancial drain . Bajaj Allianz Critical

Illness ben

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