A PROJECT ON A STUDY ON PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE PREPARED FOR AND PRESENTED TO BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED UNDER THE GUIDANCE COMPANY GUIDE NAME NAME Mr. ABHISHEK RANJAN DUBEY B.D.M. UNIVERSITY GUIDE Mr. GAURAV BISARIA LECTURER REPORT

SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF DEGREE OF MASTERS OF BUSINESS ADMINSTRATION BY SAMARTHA SHUKLA M.B.A FINANCE 0800122094 INTEGRAL UNIVERSITY DASAULI, KURSI ROAD, LUCKNOW- 226026 (U.P.) INDIA PHONE: +91 522 2890812, 3096117, 6451039 2008-2009

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED 7TH FLOOR, SHALIMAR TOWERS, VIBHUTI KHAND GOMTINAGAR LUCKNOW-226010

CERTIFICATE BY THE COMPANYTHIS IS TO CERTIFY THAT SAMARTHA SHUKLA , STUDENT OF M.B.A. FINANCE , INTEGRAL UNIVERSITY DID HIS SUMMER TRAINING IN BAJAJ ALLIANZ LIFE INSURANCY COMPANY LIMITED FROM 15 T H JUNE TO 13 T H AUGUST 2009.

Mr. ABHISHEK RANJAN DUBEY B. D.M.

Mr. RAJESH KHANNA

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CERTIFICATE BY THE UNIVERSITY

This is to certify that Samartha Shukla, student of M.B.A. Finance has done his summer training in Bajaj Allianz Life Insurance Company Ltd. and prepared a project report on the topic Comparative Analysis of Bajaj Allianz Life Insurance Company with other Companies.

M.S. KHAN Head of the Department (Samartha Shukla)

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ACKNOWLEDGEMENTFirst of all I would like to thank the management at Bajaj Life Insurance Company for giving me the opportunity to do my summer training in their esteemed organization. I am highly obliged to Mr. Abhishek Ranjan Dubey (Business Development Manager) and Mr. Rajesh Khanna for granting me an opportunity to undertake training in Gomtinagar Branch. I express my thanks 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 knowledge about the actual working and processes involved in various departments. I am grateful to my teacher Mr. Gaurav Bisaria who has helped in making this project. His valuable guidance has helped in preparing this project.

(Samartha Shukla)

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CONTENTS S.NO.1). 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20)

TOPICSTITLE PAGE CERTIFICATE BY THE COMPANY CERTIFICATE BY THE UNIVERSITY ACKNOWLEDGEMENT EXECUTIVE SUMMARY RESEARCH OBJECTIVES MEANING OF INSURANCE MEANING OF LIFE INSURANCE HISTORY OF LIFE INSURANCE BENEFITS OF LIFE INSURANCE LIFE INSURANCE IS INSURANCE AS WELL AS INVESTMENT KINDS OF INSURANCE POLICIES NATIONALISATION OF LIFE INSURANCE IN INDIA INTRODUCTION ABOUT THE COMPANY PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE RESEARCH METHODOLOGY RESULT SUGGESTIONS AND RECOMMENDATIONS LIMITATIONS BIBLIOGRAPHY

Page No.1 2 3 4 6 10 11 16 18 22 23 25 30 31 40 97 102 103 104 105

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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 has presence 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:6

UNIT LINKED Regular Premium New UnitGain Super UnitGain Plus Gold New UnitGain Plus New UnitGain YoungCare YoungCare Plus New FamilyGain-R Single Premium New UnitGain Premier SP New UnitGain Plus SP

PENSION Annuity Pension Guarantee Retirement Future Income Generator Swarna Vishranti New UnitGain Easy Pension Plus RP New UnitGain Easy Pension Plus SP Future Secure

TRADITIONAL Endowment InvestGain SaveCare Economy SP Life Time Care Super Saver Money Back CashGain

TERM PLANS Protector Term Care New Risk Care

WOMEN INSURANCE Miss Confident Plans

HEALTH Care First Health Care Family CareFirst

CHILDREN PLAN ChildGain

JUST LAUNCHED Family Assure Fortune Plus CenturyPlus II UnitGain Protection Plus Invest Plus Group Seva Plan

In my training Period, I have focused mainly on two products of Bajaj Allianz Life Insurance company: New Family Gain and New Unit Gain. NEW FAMILY GAIN In this product, the minimum premium which is to be paid by the customer is Rs.5000.7

The maximum premium for this product is Rs.10000.The policy term is 10 years. The Sum Assured is Rs. 50000 or the Fund Value which ever 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 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 and under 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 is 10 years. The Sum Assured is 5 times the premium amount or the Fund Value which ever 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 no surrender charges

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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. 60000. 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 and under Section 10(10D) he will get tax free maturity gains.

Human Life Value Concept This 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 members will have a financial loss, so to minimize the loss occurred due to the death of the earning member, one should have insurance of about 36 lakh.

Fixed Deposit compared with Insurance policyIn fixed deposit money is locked in for 5 or more years and in Insurance Policy money is locked in only for 3 years. In fixed deposit, at maturity TDS (Tax 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 in Insurance policy rate of return is 15% or more.

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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. I have met different people like: Salaried people Businessmen Chartered Accountants Lawyers Doctors Engineers Housewives

RESEARCH OBJECTIVES1)

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

2) To know about the products of Bajaj Allianz Life Insurance. 3) To know about the objections of people for not taking the Insurance policy.4) 5)

To know the need for Life Insurance. To know the benefits of Life Insurance.

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6) To know the market share of Bajaj Allianz Life Insurance in the Market. MEANING OF INSURANCEInsurance 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 financial device 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 of a 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. 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. Today insurance industry is one of the most growing sectors in India. There is lot of potential in the Indian Insurance Industry.11

There are many issues, which require study. The scope of the study of Insurance industry 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. In near future Government may allow 49% FDI in Insurance. This would lead to more capital 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, insurance brokers 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 and non-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 of insurance. So first we understand what is Insurance? How the word insurance is different from the word Assurance? etc.

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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 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, there is 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 denote indemnity 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 happen sooner or later under assurance but the event insured against may or may not happen under insurance. The principle of indemnity applies to insurance contracts (non-life) only. The scope of the word, insurance is wider.

PRINCIPLES OF INSURANCEAn insurance contract is based on some basic principles of insurance. (1) Principle of utmost good faith It means maximum truth. Both the parties should disclose all material information regarding the subject matter of Insurance.13

(2) Principle of indemnity This 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 insured is not entitled to make a profit on his loss. (3) Principle of subrogation This 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 the right. 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 the negligent 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 proxima The 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. Insurable interest 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 the same old position.

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land14

of Babylonia where traders used to bear risk of the carvan by giving loans, 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. This coffee house became so popular that Lloyds became the one of the first modern insurance companies by the end of the eighteenth century. Marine insurance companies came into existence by the end of the eighteenth century. 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 to India 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 European community. The insurance companies, which came into existence between 1818 and 1869, treated Indian lives as subnormal and charged an extra15

premium of 15 to 20 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 over insurance 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 flourished and so did scams, irregularities and dubious investment practices by scores of companies. As a result the government decided to nationalize the life assurance business in India. The Life Insurance Corporation of India (LIC) was set up in 1956. The nationalization of life Insurance was followed by general insurance in 1972. TIME LINE IN INSURANCE HISTORY (MAJOR LANDMARKS) 1818: British introduced the life insurance to India with the establishment of the Oriental Life Insurance Company in Calcutta. 1850: Non life insurance started with Triton Insurance Company. 1870: Bombay Mutual Life Assurance Society is the first India owned life insurer.16

1912: The Indian Life Assurance Company Act enacted to regulate the life insurance business. 1938: The Insurance Act was enacted. 1956: Nationalization took place. Government took over 245 Indian and foreign insurers and provident societies. 1972: Non-life business nationalized, General Insurance Corporation (GIC) came into being. 1993: Malhotra committee was constituted under the chairmanship of former RBI chief R. N. Malhotra to draw a blue print for insurance sector reforms. 1994: Malhotra committee recommended reentry of private players. 1997: IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of the insurance market in India. 2000: IRDA started giving license to private insurers. ICICI Prudential, HDFC were first private players to sell Insurance Policies. 2001: Royal Sundaram was the first non-life private player to sell an insurance policy. 2002: Bank allowed to sell insurance plans as TPAs enter the scene, insurers start setting non-life claims in the cashless mode.

MEANING OF LIFE INSURANCE

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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 often the 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 two basic classes term 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 table included in the policy guaranteed by the company. The primary advantages of 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 in the policy. Universal life insurance (UL) is a relatively new insurance product intended to provide 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.

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If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy. 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 after only a few years can more than double your Life insurance costs. 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 to earn 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 steady disintegration of the prevalent joint family system, and emergence of nuclear families. 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 sure that 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 the benefit 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.19

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 postretirement years are spent in peace and comfort.

Savings and InvestmentsInsurance is a means to Save and Invest. Your periodic premiums are like Savings and 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 as supplemental retirement income!

Tax BenefitsLife insurance is one of the best tax saving options today. Your tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned!

HISTORY OF LIFE INSURANCERisk protection has been a primary goal of humans and institutions throughout history. Protecting against risk is what insurance is all about. Over 5000 years ago, in China, insurance was seen as a preventative measure against piracy on the sea. Piracy, in fact, was so prevalent, that as a way of spreading the risk, a number of ships would carry a portion of another ship's cargo so that if one ship was captured, the entire shipment would not be lost.In another part of the world, nearly 4,500 years ago, in the ancient land of

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Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. It formalized concepts of bottomry referring to vessel bottoms and respondentia referring to cargo. These provided the underpinning for marine insurance contracts. Such contracts contained three elements: a loan on the vessel, cargo, or freight; an interest rate; and a surcharge to cover the possibility of loss. In effect, ship owners were the insured and lenders were the underwriters. Life insurance came about a little later in ancient Rome, where burial clubs were formed to cover the funeral expenses of its members, as well as help survivors monetarily. With Rome's fall, around 450 A.D., most of the concepts of insurance were abandoned, but aspects of it did continue through the Middle Ages, particularly with merchant and artisan guilds. These provided forms of member insurance covering risks like fire, flood, theft, disability, death, and even imprisonment. During the feudal period, early forms of insurance ebbed with the decline of travel and long-distance trade. But during the 14th to 16th centuries, transportation, commerce, and insurance would again reemerge. Insurance in India can be traced back to the Vedas. For instance,

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Yogakshema, the name of Life Insurance Corporation of India's corporate headquarters is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. And similar to ancient Rome, burial societies were formed in the Buddhist period to help families build houses, and to protect widows and children. Modern Insurance Illegal almost everywhere else in Europe, life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688. The type of insurance we see today owes its roots to 17th century England. Lloyd's of London, or as they were known then, Lloyd's Coffee House, was the location where merchants, ship owners and underwriters met to discuss and transact business deals. While serving as a means of risk-avoidance, life insurance also appealed strongly to the gambling instincts of England's burgeoning middle class. Gambling was so rampant, in fact, that when newspapers published names of prominent people who were seriously ill, bets were placed at Lloyds on their anticipated dates of death. Reacting against such practices, 79 merchant underwriters broke away in 1769 and two years later formed a New Lloyds Coffee House that became known as the real Lloyds. Making wagers on

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people's deaths ceased in 1774 when parliament forbade the practice. Insurance moves to America The U.S. insurance industry was built on the British model. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC. The Presbyterian Synod of Philadelphia in 1759, sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. And the first life insurance policy for the general public in the United States was issued, in Philadelphia, on May 22, 1761. But it wasn't until 80 years later (after 1840), that life insurance really took off in a big way. The key to its success was reducing the opposition from religious groups. In 1835, the infamous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations. With the creation of the automobile, public liability insurance, which first made its appearance in the 1880s, gained importance and acceptance? More advancement was made to insurance during the process of

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industrialization. In 1897, the British government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents. During the 19th century, many societies were founded to insure the life and health of their members, while fraternal orders provided lowcost, members only insurance. Even today, such fraternal orders continue to provide Insurance coverage to members, as do most labour organizations. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies. Final Thoughts Even though the American insurance industry was greatly influenced by Britain, the US market developed somewhat differently from that of the United Kingdom. Contributing to that was America's size; land diversity and the overwhelming desire to be independent. As America moved from a colonial outpost to an independent force, from a farming country to an Industrial nation, the insurance business developed from a small number of companies to a large industry. Insurance became more sophisticated, offering new types of coverage and diversified services for an increasingly complex country.

KEY FEATURES OF LIFE INSURANCE

1) Nomination: -

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When one makes a nomination, as the policyholder, one continues to be the owner of 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 been surrendered. 4) Cash Value: The cash value of a permanent life insurance policy is accumulated throughout 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 policy owner 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-up additions. 7) Policy Loans: -

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Some life insurance policies allow a policy owner to apply for a loan against the value 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 life insurance. If one owns a term policy, sometimes a provision is available that will 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 and continue to grow

BENEFITS OF LIFE INSURANCE1) Risk cover: Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of the future. 2) Tax Deduction: Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to one lakh 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 by pledging his insurance policies. 4) Retirement Planning: -

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What had provided protection against the financial consequences of premature 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 ECONOMYThe 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 is recognized 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 exchange reserves, 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, 193827

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 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 made by 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, 1938 No 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 or part 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 with the published prospectuses or tables of the insurer. Any person making default in complying 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 INVESTMENTIt is the special characteristic of life insurance that it not only provides security but is 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

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because the insurance company promises 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 securing against 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 to work 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 is why; 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 reasons1) 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 for depositing regular premiums he has to develop a habit of saving. 2) The saving also remains secure in life insurance. The savings kept in a bank account can be withdrawn anytime for expenses, but the 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 cannot be 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 insurance policy. 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. The amount 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 insurance companies 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 that constitutes interest from the investment of premium fund. Then the insurance companies29

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 loosing money and there is no need 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 is guaranteed by the government by which it has become more secure.

KINDS OF LIFE INSURANCE POLICIESTemporary Term Insurance

Term assurance: provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else. There are three key factors to be considered in term insurance: 1. Face amount (protection or death benefit), 2. Premium to be paid (cost to the insured), and 3. Length of coverage (term). Various insurance companies sell term insurance with many different combinations of these three parameters. The face amount can remain constant or decline. The term can be for one or more years. The premium can remain level or increase. A common type of term is called annual renewable term. It is a one year policy but the insurance company guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the insured and with a premium set for the insured's age at that time. Another common type of term insurance is mortgage insurance, which is usually a level premium, declining face value policy. The face amount is intended to equal the amount of the mortgage on the policy owners residence so the mortgage will be paid if the insured dies. A policy holder insures his life for a specified term. If he dies before that specified term is up, his estate or named beneficiary receives a payout. If he30

does not die before the term is up, he receives nothing. In the past these policies would almost always exclude suicide. However, after a number of court judgments against the industry, payouts do occur on death by suicide (presumably except for in the unlikely case that it can be shown that the suicide was just to benefit from the policy). Generally, if an insured person commits suicide within the first two policy years, the insurer will return the premiums paid. However, a death benefit will usually be paid if the suicide occurs after the two year period.Permanent Life Insurance

Permanent life insurance is life insurance that remains in force (in-line) until the policy matures (pays out), unless the owner fails to pay the premium when due (the policy expires OR policies lapse). The policy cannot be canceled by the insurer for any reason except fraud in the application, and that cancellation must occur within a period of time defined by law (usually two years). Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time. This means that a policy with a million dollar face value can be relatively expensive to a 70 year old. The owner can access the money in the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and receiving the surrender value. The four basic types of permanent insurance are whole life, universal life, limited pay and endowment. Whole life coverage Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits; guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy. The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Also, the cash values are generally kept by the insurance company at the time of death, the death benefit only to the beneficiaries. Riders are available that can allow one to increase the death benefit by paying additional premium. The death benefit can also be increased through the use of policy dividends. Dividends cannot be guaranteed and may be higher or lower than historical rates over

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time. Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equal if policies are kept in force until average life expectancy. Cash value can be accessed at any time through policy "loans". Since these loans decrease the death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only. If the dividend option: Paid up additions is elected, dividend cash values will purchase additional death benefit which will increase the death benefit of the policy to the named beneficiary. Universal life coverage A universal life insurance policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. Mortality charges and administrative costs are then charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any. With all life insurance, there are basically two functions that make it work. There's a mortality function and a cash function. The mortality function would be the classical notion of pooling risk where the premiums paid by everybody else would cover the death benefit for the one or two who will die for a given period of time. The cash function inherent in all life insurance says that if a person is to reach age 95 to 100 (the age varies depending on state and company), then the policy matures and endows the face value of the policy. Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of them live to age 95, then the mortality function alone will not be able to cover the cash function. So in order to cover the cash function, a minimum rate of investment return on the premiums will be required in the event that a policy matures. Universal life insurance addresses the perceived disadvantages of whole life. Premiums are flexible. Depending on how interest is credited, the internal rate of return can be higher because it moves with prevailing interest rates (interest-sensitive) or the financial markets (Equity Indexed Universal Life and Variable Universal Life). Mortality costs and administrative charges are32

known. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. And universal life has a more flexible death benefit because the owner can select one of two death benefit options, Option A and Option B. Option A pays the face amount at death as it's designed to have the cash value equal the death benefit at maturity (usually at age 95 or 100). With each premium payment, the policy owner is reducing the cost of insurance until the cash value reaches the face amount upon maturity. Option B pays the face amount plus the cash value, as it's designed to increase the net death benefit as cash values accumulate. Option B offers the benefit of an increasing death benefit every year that the policy stays in force. The drawback to option B is that because the cash value is accumulated "on top of" the death benefit, the cost of insurance never decreases as premium payments are made. Thus, as the insured gets older, the policy owner is faced with an ever increasing cost of insurance (it costs more money to provide the same initial face amount of insurance as the insured gets older) Limited-pay Another type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65. Endowments Endowments are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age. The age this commences is known as the endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. In the United States, the Technical Correct Limited-pay Another type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional

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premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65. Endowments Endowments are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age. The age this commences is known as the endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. In the United States, the Technical Corrections Act of 1988 tightened the rules on tax shelters (creating modified endowments). These follow tax rules as annuities and IRAs do. Endowment Insurance is paid out whether the insured lives or dies, after a specific period (e.g. 15 years) or a specific age (e.g. 65). Accidental Death Accidental death is a limited life insurance that is designed to cover the insured when they pass away due to an accident. Accidents include anything from an injury, but do not typically cover any deaths resulting from health problems or suicide. Because they only cover accidents, these policies are much less expensive than other life insurances. It is also very commonly offered as "accidental death and dismemberment insurance", also known as an AD&D policy. In an AD&D policy, benefits are available not only for accidental death, but also for loss of limbs or bodily functions such as sight and hearing, etc. Accidental death and AD&D policies very rarely pay a benefit; either the cause of death is not covered, or the coverage is not maintained after the accident until death occurs. To be aware of what coverage they have, an insured should always review their policy for what it covers and what it excludes. Often, it does not cover an insured that puts himself at risk in activities such as: parachuting, flying an airplane, professional sports, or involvement in a war (military or not). Also, some insurers will exclude death and injury caused by proximate causes due to (but not limited to) racing on wheels and mountaineering.34

Accidental death benefits can also be added to a standard life insurance policy as a rider. If this rider is purchased, the policy will generally pay double the face amount if the insured dies due to an accident. This used to be commonly referred to as double indemnity coverage. In some cases, some companies may even offer a triple indemnity cover. NATIONALISATION OF LIFE INSURANCE IN INDIA On 19th January, 1956, the Indian Government issued an emergency ordinance, whose objective was to nationalize life insurance. As a result of this ordinance, the business of life insurance which was in the hands of private sector organizations at that time now came in the hands of the Government of India. At the time of nationalization, in our country 154 Indian Insurance companies, 16 foreign insurance companies and 75 private insurance societies were working in the Insurance business. In June 1956, an Act by the name of Life Insurance Corporation Act, 1956 was passed in the Parliament, which came into force from 1st July 1956 in India. As a result of this Act, a Government organization was established which is known as Life Insurance Corporation of India. The Life Insurance Corporation started the insurance business from 1st September, 1956.

REASONS OR OBJECTIVES OF NATIONALISATION1) To arrange funds for Five Year Plans of the Government of India. 2) To widely propagate Life Insurance even in villages and small towns. 3) To eliminate unhealthy competition among Private Insurance Companies. 4) To end mismanagement, spread in Private Insurance Companies. 5) To increase the per person insured amount. 6) To establish a socialist society, to give maximum benefits to the society. 7) To reduce the wasteful administrative expenses of the Private Insurance Companies. 8) To secure the interests of small insured persons.

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9) To create a sense of saving among people. 10)To utilize the Life Insurance Fund properly. 11) To end the delays in payments on maturity to insured by Private Insurance Companies. 12)To decentralize economic and financial power from the hands of Private Insurance Companies.

INTRODUCTION ABOUT THE COMPANYBajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance Company and Bajaj Finserv. (recently demerged from Bajaj Auto.) 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 and is 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.Financial services arm's profit rises to Rs 42 croreBS Reporter / Mumbai July 16, 2009, 0:40 IST

Bajaj Finserv, the financial services arm of the Bajaj Group, posted a net profit of Rs 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 the biggest 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.36

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 per cent to Rs 577 crore.

ALLIANZ GROUPAllianz Group is one of the world's leading insurers and financial services providers. 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 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. 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

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49.8 % of global business from Life Insurance Established in 1890, 110 yrs of Insurance expertise 70 countries, 173,750 employees worldwide

BAJAJ GROUPBajaj 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 brand image & brand loyalty synonymous with quality & customer focus. A STRONG INDIAN BRAND- HAMARA BAJAJ One of the largest 2 & 3 wheeler manufacturer 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 distinct option in terms of life insurance products. As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to offer Financial strength and stability to support the Insurance Business. A strong brand-equity.38

A good market reputation as a world class organization. An extensive distribution network.

Adequate experience of running a large organization.

Fiscal Year 2001-2002(6 months) 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

Accelerated Growth No. of policies sold 21,37 1,15,965 1,86,443 2,88,189 7,81,685 20,79,217 37,44,742

New Business in FY Rs. 7 cr. Rs. 63.3 cr. Rs. 180 cr. Rs. 857 cr. Rs. 2,717 cr. Rs. 4,302 cr. Rs. 6,674 cr.

Mission of the companyIndia has 102 crore population but only 16 crore people are insured till now. Still 86 crore People are yet to be insured. Also in broader perspective, company wants to make every person get benefited through investing in Bajaj Allianz Life Insurance. The Company is focusing on improving employee productivity, policy persistency, operational processes and service levels. Vision 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.

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5) To encourage organizational transparency. 6) To value integrity.

HISTORY OF THE COMPANYBajaj Allianz Life Insurance Co. Ltd.is a joint venture between two leading conglomerates- Allianz AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Characterized by global presence with a local focus and driven by customer orientation to establish high earnings potential and financial strength, Bajaj Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance 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 in India 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. AAA rated 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 terms of life insurance products.

Details of the CompanyManaging Director and CEO Mr. Kamesh Goyal40

Sashi Krishnan, CIO, Bajaj Allianz Life Insurance

C.F.O. Mr. Rajesh Viswanathan

Head, Marketing- Mr. Sanjay Jain

BOARD OF DIRECTORS: Mr. Rahul Bajaj (Chairman) Dr. Werner Zedelius Mr. Sanjay Asher Mr. Niraj Bajaj41

Mr. Sanjiv Bajaj Mr. Heinz Dollberg Mr. Ranjit Gupta Mr. S. H. Khan Mr. Suraj Mehta Mr. Dietmar Raich Mr. Manu Tandon Mr. Kamesh Goyal (Alternate Director to Dr. Werner Zedelius) Address Branch Address: Bajaj Allianz Life Insurance Co. Ltd. Shalimar Towers, TC-57N Vibhuti Khand Gomtinagar, Lucknow-226010. Telephone: (+91 522) 6450751 Head Office Address: Bajaj Allianz Life Insurance Company Limited GE Plaza, Airport Road, Yerawada, Pune-411006 Maharashtra Telephone: (+91 20) 66026777

CHANNEL PARTNERS OF BAJAJ ALLIANZStandard Chartered Bank Contact Number : 022 2492 8888 E-mail Address: customer.care@in.standardchartered.com

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Syndicate Bank Contact Number : 020 4026 742 E-mail Address: insurancediv@syndicatebank.net www.syndicatebank.com Placement Sales and Services Ltd. Contact Number : 0487-2388666,2385922 Tele Fax 2388666 E-mail Address: placementss@rediffmail.com Address: Regency Centre, Kalavary Road, West Fort, Thrissur 4 Kerala, India Team Life Care Co. (India) Ltd. Contact Number : 0427 - 2410707; 2420707; Tele Fax 2421245 Address: 5/118, Yercaud Main Road, Chinnakollapatti, SALEM - 636008. Ernestine Consultants Pvt Ltd. Contact Number : 080- 4034 1999 Fax- 080 - 4034 1920 Address: 1011, Ist Floor 3rd Cross, 13th Main HAL 2nd Stage, Indira Nagar Bangalore-560038

www.teamlifecare.in

COSMOS Co-op BANK Ltd. Contact Number : 020 2488051 E-mail Address : info@cosmosbank.in www.cosmosbank.com 43

Organizational chartBranch Manager V V Business Development Manager (B.D.M.) V V Assistant Business Development Manager (A.B.D.M.) V V Insurance Sales Officer (I.S.O.)

PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE1) BAJAJ ALLIANZ NEW FAMILYGAIN

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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 in life additional protection, more money to invest, sudden requirement of cash or a steady post-retirement income. With Bajaj Allianz New Family Gain, you can invest in one life insurance plan that can take care of all your changing requirements. This plan has been designed to provide you with maximum flexibility, 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 your well-being and accumulate savings towards financial independence and a comfortable 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 be introduced from time to time. The premiums allocated are invested in fund/funds of your choice (depending on the allocation rate) and units are allocated depending on 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, policy administration charges and the additional rider benefit charges are deducted through monthly cancellation of units. The Fund Management Charge is priced in the unit value.

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You can choose a Sum Assured (Level of Protection) that you want in the New Family Gain Plan. Minimum Sum Assured = 5 times of Annualized Premium Maximum Sum Assured = Policy Term times of Annualized Premium

Death Benefit: The death benefit will be 1) 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 life assured. 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 Benefit On maturity, the NAV of units in the fund will be paid out and the policy will terminate. Additional Rider Benefits available with New Family Gain You 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 the brochure on additional rider benefits for more details.) Assured protection even if you miss payment of your premiums Bajaj 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 the46

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 falls to 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 that suits your investment needs. TAX BENEFITS Premiums paid and benefits received will be eligible for tax benefits as per 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 as per regulations prevailing at that point of time. RISK OF INVESTMENT UNDER UNIT LINKED PLANS The 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 in the 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 capital market 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.47

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 manner do 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 be no 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 indicative of 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 years Minimum Age at Maturity: 18 years Maximum Age at Maturity: 70 years Minimum Term: 10 years. For minor lives: 18 minus age at entry of minor 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 payment mode 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. 500 for 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 due regular 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 revive during 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.

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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 and subsequent 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 all appropriate 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 one annual premium (NAV) across all the funds. At the end of two years i.e. period for revival, if the contract is not revived, you can opt 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 of termination less surrender charge, if any.

2) NEW UNIT GAINThis product is similar to New Family Gain but in this product the minimum 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 1st July 2006.

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Key highlights of Bajaj Allianz New Unit Gain Your investment, apart from normal allocation receives Loyalty units

Equivalent to 51% 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 the policy, to further enhance your savings. o Three simple terms to choose from: 15, 20 and 25 years. o A host of additional rider benefits to provide you with additional protection. o Guaranteed Life Cover, with flexibility to choose insurance cover to suit your changing needs.

3) PENSION GUARANTEEYour date of retirement is closing in. You want something that gives you an assured income 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 your savings in the Bajaj Allianz Pension Guarantee, a plan that gives you a guaranteed income, till your time comes. The Bajaj Allianz Pension Guarantee Plan With 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:

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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 thereafter Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 20 years and life thereafter 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 Insurance Company and the annuity payments will start after expiry of monthly/quarterly/half-yearly/ yearly interval corresponding to the payment mode selected 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 the nominee on the death of the annuitant. Important details of the Bajaj Allianz Pension Guarantee Plan Minimum Age at Entry 45 Maximum Age at Entry 80 Minimum Purchase Price Rs. 25,000 Minimum Annuity Installment Rs. 1,000 Annuity Frequency Mode For 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 mode selected.

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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 Benefits The 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 low interest 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 the family. 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 Plan The Bajaj Allianz Protector Plan is a mortgage term insurance plan that covers the outstanding principal amount of a loan. It is an economical way to protect the 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 principal amount 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 of the loan tenure, while coverage continues for the full tenure of the loan. Single Premium Payment - One time premium payment covering you for the full tenure of the loan.

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Joint life availability You 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 per the loan schedule, irrespective of changes in interest rate/term at a later stage. The outstanding 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 Condition Minimum Sum Assured Rs. 2, 00,000 Maximum Sum Assured No Limit Minimum Age at Entry 20 Yrs Maximum Age at Entry 55 Yrs Maximum Age at Policy Expiry Date 65 Yrs Minimum Term for Single Premium 2 Yrs Minimum Term for Regular Premium 5 Yrs Maximum Term (Regular and Single Premium) 30 Yrs Premium 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 the frequency 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 halfyearly mode, Rs. 450 for quarterly mode and Rs. 175 for monthly.53

Tax Benefits Tax benefits under Section 80C and Section 10(10)D available as per applicable tax laws. All payments due under this plan shall be governed by tax laws applicable at that point of time. Surrender values/Paid up Values There are no surrender values or paid-up values under this plan. Loans Loans are not available under this plan Change of Occupation On change of occupation, depending upon the nature of the new occupation, the premiums and benefits may be modified. 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 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 nonpayment 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 In case the life assured (in case of joint life, either of the life assured) commits suicide 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 an uncertain future, the insecurity of not

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being able to provide adequately for our loved ones, the fear of not being able to save enough. Life Insurance is the only complete 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 the premiums 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 provides for 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 the Economy Pack (excluding extra premiums charged, if any). In case of pre-mature 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 two premium 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 from covering 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 additional benefits 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.

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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 emotional shock, but you can certainly soften the financial one. Bajaj Allianz Accidental Death Benefit gives your loved ones something to start with after the permanent loss of your income by paying double the basic Sum Assured. The total Accidental 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

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Allianz Accidental Permanent Total/Partial Disability Benefit provides a financial cushion against such misfortunes. Type of Disability Benefits Accidental 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 Allianz taken together. ** Subject to a maximum of Rs. 10, 00,000/- under all policies with Bajaj Allianz taken together. c. Waiver of Premium Benefit An 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 you to live up to your commitments. d. Critical Illness Benefit Some 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) under the 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 offer you the flexibility of including the following benefit combination at each policy anniversary.

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Combination 1: Accidental Death Benefit; Accidental Permanent Total/Partial Disability Benefit; Waiver of Premium Benefit. This combination can be added, if not taken earlier, deleted and added subsequently at each policy anniversary. We also offer the flexibility of excluding the following benefit combination: Combination 2: Critical Illness Benefit; Hospital Cash Benefit. This combination can be taken at inception 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 Maximum Age at Entry Maximum Age at Maturity Minimum Term Maximum Term Minimum Sum Assured 00,000/Maximum Sum Assured 00,000/Minimum Premium Yearly, Half Yearly. The minimum premium for Single Premium option shall be Rs. 6000/Premium Payment Mode For your convenience we have provided 3 Premium Payment Modes that can be single premium, yearly or half-yearly.58

18 Years 50 years 65 years 5 years 40 years Rs. 1, Rs. 10, (Rs.) 1500/- for Rs. 1500/- for

6) BAJAJ ALLIANZ NEW RISK CARE PLAN Bajaj Allianz New Risk Care plan, a bouquet of happiness, security and pride for you & your family. Commitments towards the family are non-measurable and countless. Its our endeavor to keep up your commitments by sharing your burdens and reducing your liabilities. In case of any mishap or unfortunate event, the plan will always stand by you as a pillar of strength. Bajaj Allianz New Risk Care helps you to secure your familys well being, and create a strong financial back up in case of any unforeseen eventualities. Allow us to take over your financial concerns and worries to rest on us. Insure your Today with us to ensure your familys Smiles Tomorrow The Key Features of Bajaj Allianz New Risk Care: A non-participating traditional Term Assurance plan. Higher insurance coverage at Low premium. Regular/Single Premium payment options. Enhanced Protection options available through Additional Rider Benefits. Rebates on premium in-case of high sum assured (both on regular and single premium mode). How does the Bajaj Allianz New Risk Care work? What are the Benefits? You are required to make regular installments or a one-time payment. In case of any unfortunate happening before maturity of the policy, the Death Benefit on the policy will be paid to the nominee. There is no maturity benefit. Power of 4 for Enhanced Protection Power of 4 for Enhanced Protection Accidental Death Benefit: Covers against Accidental Protection. Accidental Permanent Total/Partial Disability Benefit: Covers against Disability protection. Critical Illness Benefit: Covers you against 11 defined critical diseases.

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Hospital Cash Benefit: Reduces your burden against hospitalization expenses. (For complete details on riders, please refer to our Additional Rider Benefits Brochure. These additional Rider Benefits are available on regular premium policies only and not on single premium policies.) Flexibility in Coverage At Bajaj Allianz, we believe in offering solutions and not just benefits. We believe that you are unique and your needs for insurance are different from others and vary with time. We therefore present you New Risk Care with Additional Rider Benefits, which offers you the flexibility of inclusion or exclusion of coverage at each policy anniversary, subject to conditions relating to such inclusions and exclusions. Accidental Death Benefit, Accidental Permanent Total/Partial Disability Benefit can be included or excluded at each policy anniversary, but once excluded cannot be included again. Hospital Cash Benefit (HCB) and Critical Illness (CI) can be taken at inception only. HCB & CI can be reduced or excluded subsequently at any policy anniversary. Once reduced or excluded, they cannot be increased or included subsequently. Minimum Premium Amount Rs. 200 per Monthly installment (through salary deduction or ECS), Rs. 500 per Quarterly installment, Rs. 1,000 per HalfYearly installment, Rs. 1,500 per Yearly installment, Rs. 5,000 for Single Premium. Important Details Minimum Entry Age 18 years Maximum Entry Age 60 years Maximum Maturity Age 65 years Minimum Policy Term 5 years Maximum Policy Term 40 years Minimum Sum Assured Rs.4, 00,000 Maximum Sum Assured Rs.50, 00, 00,000 Premium paying frequency yearly Yearly/Half

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/Quarterly/Monthly/ Single High Sum Assured Rebate (HSAR) On Sum Assured of Rs. 10,00,000 or more

Indicative Premiums The table below illustrates the premium rates* for New Risk Care. Age: 30 Years Gender: Male Sum Assured: Rs. 5, 00,000 Payment Mode 10 25 Single Premium (in Rs.) 9,045 22,630 Regular Annual Premium (in Rs.) 1,665 2,065 *Excluding service tax. Death benefit In case of any unfortunate happening before maturity of the policy, the Death Benefit equal to the chosen Sum Assured on the policy will be paid to the nominee. Surrender Value In case of Single Premium mode, the policy can be surrendered after five years from Policy Commencement Date and the surrender value is equal to 0.70*(n-t)/n*Single Premium, where n is Policy Term and t is elapsed duration in years from Policy Commencement Date to the Policy Anniversary following the date of surrender. Surrender value is not payable on Regular Premium mode. Revival of lapsed Policy You may revive the lapsed policy within two years from first unpaid premium by paying all due regular premiums along 15 13,140 1,840 Term 20 17,650 1,970

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with interest compounding half-yearly at such rate as the Company may decide from time to time. Tax Benefits Premium paid will be eligible for tax benefit under Section 80C. The death benefit will be eligible for tax benefit under Section 10(10) D as per the prevailing tax laws. Nomination Nomination can be made for receiving policy proceeds in case of death. General Exclusion If the Life Assured commits suicide whether sane or insane, within one year from the Policy Commencement Date or Commencement of Risk, the Company will not entertain any claim by virtue of this Policy except to the extent of the Installment/Single Premium paid. The actual date of death will be the basis for determining the validity of the contract of insurance. 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 never heard 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 child does, you must. Bajaj Allianz ChildGain Plan Taking care of a child is perhaps the most important job a parent can have. It is natural 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

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help you to enjoy the joys of parenthood responsibly, with the reassurance of a secure future for your child. What does Bajaj Allianz ChildGain Plan offer you? Bajaj Allianz ChildGain 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: ChildGain 21 Option 2: ChildGain 24 Option 3: ChildGain 21 Plus Option 4: ChildGain 24 Plus Common features in the 4 Options of Bajaj Allianz ChildGain Plan 1. 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 terminal bonus 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 your child 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 during the 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.

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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 will not 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 the valuable 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 For ChildGain 21 and ChildGain 21 Plus: The minimum guaranteed payouts are as follows: Policy Anniversary following 21 completion of Age Payout as % of Sum Assured 35%* 18 19 20 25%

20% + Accrued 25%

Bonuses For ChildGain 24 and ChildGain 24 Plus: The minimum guaranteed payouts are as follows: Policy Anniversary following 24 completion of Age Payout as % of Sum Assured 40% 18 25% + Accr