bajaj allaiz
TRANSCRIPT
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ASUMMER TRAINING PROJECT REPORT
ON
SALES & MARKETING FORTHE
BAJAJ ALLIANZ LIFEINSURANCE CO.
SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF
THE DEGREE OF
MASTER OF BUSINESSADMINISTRATION
(2007-2009)
Under the Guidance of:
Retd. Col. Sh. S.k Jain Mr. Deepak Kumar
HOD-MBA Sales Manager SUS Group of colleges Bajaj Allianz Life Insu.
Tangori (Mohali)
SUBMITED BY:
HARENDER SINGH NAINMBA-III SEMESTER
ROLL NO.: 7025220794
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SHAHEED UDHAM SINGHCOLLEGE OF ENGG. &
TECHNOLOGYTANGORI (MOHALI)
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PREFACE
The importance of an academic course would gain advantage and
acceptance of the true form, only through practical experience. Hence i t
is quite necessary to put the theories into talk. I t is r igidly accepted that
the theory widens ones thinking hor izons viz. Concepts of market ing
philosophies, but practice indicates the modern marketing and used in
variety of settings of products.
The s ummer t ra in ing p rogr ammers a re des igned t o g ive t he
manager the future of the corporate happenings and work culture. These
real l i fe s i tuat ions are ent irely di fferent f rom the s t imulated exercise
enact ed i n an a rt if ic ia l env ir onment i ns ide t he s ummer t ra in ing
programmers and designed, so that the manager to tomorrow do not feel
i ll case when the t ime comes to shoulder r esponsibi li ti es . Prac ti ca l
exposure for the PGDM students i s very necessary because what they
s tudy in the c lass room i s not the r ea li ty. S ituat ion in the market i s
unknown and very much unpredictable. So the pract ical exper ience is
very much necessary this i s made possible wi th the summer t raining
project in Bajaj Allianz Life Insurance Co. in marketing related to search
for the Potential Insurance Consultants.
All organizations involves into business with some objective and
one o f t he obj ec ti ves i s t o endor se p roduct o r s er vi ce whi ch t hey
produce. In my marketing project I tried to fid out the potential
Insurance Consultants through questionnaire for the Bajaj All ianz Life
Insurance Co. The product for the insurance company i s i ts poli ci es
which company sale through its Insurance Consultants. So its quite clear
that there will be as many Insurance Consultants. There will be increased
sales.
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ACKNOWLEDGEMENT
I want to thank to those people who helped me in this
summer training research project. First of all I would l ike to
express my profound grat i tude to the Sales Manager of
Bajaj Allianz Life Insurance Co., Nehru Palace, Delhi,
Mr. Deepak Kumarwho gave me this opportunity to do this
pro ject. He a lways remained a wonder fu l gu ide and
supporter throughout this project.
I would l ike to thank to my inst i tute also where I got
all the knowledge and ski lls requi red for this research
project. I also want to thank to my institute mentorMr. S.K
Jain (H.O.D OF SUS) who took our project seriously and
kept check on this time to time.
At the end I want to say thanks to all persons involved
in this project directly or indirectly.
HARENDER SINGH NAIN(MBA-III SEM.)
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TABLE OF CONTENTS
1. Executive Summary
2. About Life Insurance Sector
3. Industry Overview
4. Company Profile
5. About Policies Of Bajaj Allianz
6. Distribution Channel
7. Research Methodology
8. SWOT Matrix
9. Findings
10. Recommendations
11. Bibliography
12. Questionnaire
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EXECUTIVE SUMMARY
At the present t ime of cut throat compet i t ion in every indust ry
every company want to top the chart and want to show as big as possible
f igure of prof it s in i ts ba lance sheet. I t i s quit e c lear today tha t a t
present time the growth of any organization is possible only with the
help of hard working and wel l focused s taf fs that are the backbone of
any organizations.
I t was my great pleasure that I did my summer training from Bajaj
All ianz L if e I ns ur ance Co. where I got t o know t ha t i n I ns ur ance
industry the skills of the man power matters most and increasing number
of Insurance Consultants help the organization to increase its issuance of
policies which in turn result in growth for the organization. So it is quite
clear that Insurance Consultants matter most for the Bajaj All ianz Life
Insurance Co.
My job was to create the database for the organization so that the
number i f Insurance Consul tants could be increased. My job was to
approach the individuals who are interested in joining the organization
as Insurance Consul tant, with in the l imita tions l ike r elated to age,
r el at ed t o qua li fi ca ti on , and t hen h is /her det ai ls w it h t he hel p o f
ques t ionnaire. I vis i ted var ious areas of Delhi , Ghaziabad in order to
meet different types of people.
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WHAT IS LIFE INSURANCE
First of al l we should come to know that what i s Li fe Insurance.
The different definitions describing life Insurance are as:-
Insurance in which the r isk insured against i s the death of a
particular person, the insured, upon whose death while the policy is in
force, the insurance company agrees to pay a stated sum or income to the
beneficiary. Life Insurance pays a specified sum to the beneficiaries
upon the death of the insured. It is generally used to provide cash to your
f amil y i n t he event o f your dea th . There a re s ever al t ypes o f l if e
insurance whole l ife insurance provides a l i fet ime of protection as long
as you pay the premiums to keep the pol icy act ive. They also accrue a
cash va lue and thus offer a savings component. Term l if e insurance
provides protection only during the term of the policy and the policies
are usually renewable at the end of the term. Insurance on human l ives
including endowment benef i ts , addit ional benef i ts in event of death or
dismemberment by accident or accidental means, addit ional benefi ts for
disability, and annuities.
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LIFE INSURANCE INDUSTRY IN INDIA
Many may not be aware that the l ife insurance industry of India is
a s o ld as i t i s in any o ther par t of the wor ld . The f i r s t Indian Li fe
Insurance Company was the Oriental l i fe Insurance Company, which was
started in India in 1818 at Kolkata. A number of players (over 250 in life
and about 100 in non-l i fe) mainly wi th regional focus f lour ished al l
across the country. However, the Government of India, concerned by the
unethical s tandards adopted by some players agains t the consumers ,
nat ional ized the indust ry in two phases in 1956 ( l i fe) and 1972 (non-
l ife) . The insurance business of the country was then brought under two
public sector companies, Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC).
With such a large populat ion and the untapped market area of this
population Insurance happens to be a very big opportunity in India.
Today i t s tands as a bus iness growing a t the r ate of 15-20 percent
annually. Together with banking services, i t adds about 7 percent to the
countrys GDP. In spite of all this growth the statistics of the penetration
of the insurance in the country i s very poor . Near ly 80% of Indian
populations are without Life Insurance cover and the Health Insurance.
This i s an indicator that growth potent ial for the insurance sector i s
immense in India. It was due to this immense growth that the regulations
were introduced in the insurance sector and in continuations Malhotra
Committee was consti tuted by the government in 1993 to examine the
various aspects of the industry. The Committee recommended throwing
open the sector to private players to usher in competi tion and bring more
choice to the consumer. The objective was to improve the penetrat ion of
i ns ur ance a s a per cent age GDP, whi ch r emai ns l ow i n I nd ia even
compared to some developing countries in Asia. The key element of the
reform process was Part icipation of overseas insurance companies with
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26% capital . Creating a more eff icient and competi t ive f inancial system
suitable for the requirements of the economy as the main idea behind the
reform.
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A BRIEF HISTORY
The or igin of insurance is very old. The t ime when we were not
even born; was has sought some sort of protection from the unpredictable
calamities of the nature. The basic urge in man to secure himself against
any form of risk and uncertainty led to the origin of insurance.
The insurance came to India f rom UK; wi th the es tablishment of
The Oriental Insurance Corporation in 1818. the Indian Life Insurance
company act 1912 was the first statutory body that started to regulate theLife Insurance business in India. By 1956 about 154 Indian, 16 foreign
and 75 provident f irms were been established in India. Then the central
government took
over these companies and as a result the LIC was formed. Since then LIC
has wor ked t owar ds s pr eadi ng L if e I ns ur ance and bui ld ing a w ide
net work acr os s t he l engt h and t he b reat h o f t he count ry . Aft er t he
l ib er al iz at io n t he e ntr an ce o f f or ei gn p la ye rs h as a dd ed t o th e
competition in the market.
The General Insurance bus iness in India, on the other hand, can
trace i t s roots to the Tr i ton Insurance Company Ltd, the f i rs t General
Insurance Company establ ished in the year 1850 in Calcut ta by the
Brit i sh. In 1957 General Insurance Counci l, a wing of the Insurance
Associat ion of India, frames a code of conduct for ensuring fair conduct
and sound business practices. In 1972 the General Insurance Business in
India with effec t f rom 1 s t January 1973. i t was aft er th i s tha t 107
insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd, the New India Assurance Company Ltd, the
Oriental Insurance Company Ltd. GIC incorporated as a company .
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INSURANCE SECTOR REFORMS
In 1993, Malhotra Committee headed by former Finance Secretary
and RBI Governor was formed to evaluate the Indian industry and give
its recommendations. The committee came up with the following major
provisions:-
Private Companies with a minimum paid up capital of Rs. 1 bn
should be allowed to enter the industry.
Foreign companies may be a llowed to enter the indus try in
collaboration with the domestic companies.
Only one s tate level Life Insurance Company should al low to
operate in each state.
Reforms were init iated wi th the passage of Insurance Regulatory
and Development Authority (IRDA) Bil l in 1999. IRDA was set up as an
independent regulatory authori ty, which has put in place regulat ions in
line with global norms.
IRDA : The IRDA since i ts incorporation as a s tatutory body has been
f rami ng r egul at ions and r eg is te ri ng t he p ri va te s ec to r i ns ur ance
compani es . I RDA bei ng an i ndependent s ta tu to ry body has put a
framework of globally compatible regulations .
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INSURANCE MARKET IN INDIA
By any yardstick, with about 200 mill ion middle class households,
presents a huge untapped potential for players in the insurance industry.
Saturat ion of markets in many developed economies has made the Indian
market even more at t ract ive for global insurance majors . With the per
capital income in India expected to grow at over 6% for the next 10 years
and with improvement in awareness levels , the demand for insurance is
e xp ec te d to g ro w a t a n a tt ra ct iv e r at e i n I nd ia . A n in de pe nd en t
consul ting company, the Moni tor Group has est imated tha t the Life
Insurance market will grow.
WINDS OF CHANGE
Reforms have marked the ent ry of many of the global insurance
majors into the Indian market in the form of joint ventures with Indian
companies . Some of the keys names are AIG, New York Life, Al l ianz,
Prudential , Standard Life, Sun Life Canada and Old Mutual. The entry of new players has rejuvenated the erstwhile monopoly player LIC. Which
has responded to the competi t ion in an admirable fashion by launching
new products and improving service standards.
Market Expansion :
There has been an overall expansion in the market . This has
been possible due to improved awareness levels thanks to the large
number of advert is ing campaigns launched by al l the players. The scope
f or e xp an si on i s s ti ll u nl im it ed a s v ir tu al ly a ll th e p la ye rs a re
concentrat ing on large ci t ies and towns except by LIC to an extent
there was no significant attempt to tap the rural markets.
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New Product Offerings :
There has been a plethora of new players, mainly from the stable
of their international partners. Customers have tremendous choice from a
l ar ge var ie ty o f p roduct s f rom pur e t er m i ns ur ance t o uni t- li nked
investment products . Customers are offered unbundled products with a
variety of benefits as riders from which they can choose. More customers
are buying products and services based on their t rue needs and not just
t ra dit io na l mo ne y- ba ck p ol ic ie s, w hi ch i s n ot c on si de re d v er y
appropriate for long-term protection and savings. However, there are still
some key new products yet to be introduced e.g. health products.
Customer Service :
Not unexpectedly, this was one area that witnessed the most
signif icant change with the entry of new players. There is an at tempt to
bring in international best practices in service and operational efficiency
though use of l at es t t echnologies . Advice and need based se ll ing i s
emerging through much better t rained sales force and advisors. There is
improvement in response and turnaround t imes in specif ic areas such as
delivery of f irs t policy receipt , policy document, premium notice, f inal
maturity payment, settlement of claims etc. However, there is a long way
to go and various customer surveys indicate that the standards are st i l l
below customer expectation levels .
Channels of Distribution :
Till two years back, the only mode of distribution of life insurance
products was through Agents. While agents continue to be the
predominant distribution channel, today a number of innovative
al ternat ive channels are being offered to cus tomers . Some of them are
bancassurance, brokers, the internet and direct marketing. Though it is
too ear ly to predict , the wide spread of bank branch network in India
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could l ead to bancassurance emerging as a s ignif icant d is tr ibution
mechanism.
The introduction of private players in the industry has added to the
colors in the dull industry. The ini t iat ives taken by the private players
are very competi t ive and have given immense competit ion to the on t ime
monopoly of the market LIC. Since the advent of the private players in
the market the industry has seen new and innovative steps taken by the
playe rs in this sector. The new playe rs have improved the service quality
of the insurance. As a result LIC down the years have seen the declining
phase in its career. The market share was distributed among the private
playe rs. LIC market share has decreased from 95% (2002-03) to 82%
(2004-05).
The following companies has the market share of the life insurance
industry.
Insurance Company Market Share (Fig. in %)
LIC 71.44
ICICI Prudential 11.35
Bajaj All ianz 7.06
HDFC Standard Life 2.37
SBI Life 1.81
Birla Sun Life 1.49
Max New York Life` 0.98
TATA AIG 0.79
Aviva 0.89
OM Kotak Mahindra 0.86ING Vyasa 0.57
Reliance 0.37
MetLife 0.24
Market Share of Life Insurance Companies as of May 2006
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CURRENT SCENARIO OF THE
INSURANCE INDUSTRY IN INDIA
India with about 200 mill ion middle class household shows a huge
untapped potent ial for players in the insurance indust ry. Saturat ion of
markets in many developed economies has made the Indian market even
more at tractive for global insurance majors . The insurance sector in
India has come to a posit ion of very high potential and competi t iveness
in the market.
Innovative products and aggressive distr ibution have become the
say of the day Indians, have always seen Life Insurance as a tax saving
device, are now suddenly turning to the private sector that are providing
them new products and variety for their choice.
Life Insurance industry is wait ing for a big growth as many Indian
and Foreign companies are wai t ing in the l ine for the green s ignal to
start their operations. The Indian Consumer should be ready now because
the market is going to give them all array of products, different in price,
features and benefi ts . How the customer is going to make his choice wil l
determine the future of the industry.
CUSTOMER SERVICE
Consumers r emain the mos t important cent re of the insurance
sector . After the entry of the foreign players the industry is seeing a lot
of competi tion and thus improvement of the customer service in the
industry. Computerizat ion of operations and updating of technology has
become imperative in the current scenario. Foreign playe rs an bringing
i n i nt er na ti on al b es t p ra cti ce s i n s er vi ce t hr ou gh u se o f la te st
technologies. The one t ime monopoly of the LIC and i ts agents are now
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going through a through revision and training programs to catch up with
the other private players.
DISTRIBUTION CHANNELS
Till date insurance agents s t il l remain the main source through
which insurance products are sold. The concept is very well established
in the country l ike India but s t i l l the increasing use of other sources is
i mper at ive. I t t he re fo re makes s ense t o l ook a t wel l bal anced,
alternatives channels of distribution.
L IC ha s a lre ad y w ell estab lish ed an d h av e an e xten siv e
dis t r ibut ion channel and presence. New players may f ind i t expensive
and t ime consumi ng t o b ri ng up a d is tr ibut ion channel t o have an
advantage.
At present the d is tr ibution channel s tha t a re avai lable in the
market are:
Direct Selling
Corporate Agents
Group Selling
Brokers and Cooperative Societies
Bancassurance
To make al l these channels a success the companies have to be
very aler t and ski l l ful to know how to use these channels in a proper way. Bancassurance is on of the most upcoming channels of distribution.
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BANCASSURANCE
India has an extensive bank network established over the years.
What Insurance companies have to do is to jus t take advantage of the
cus tomers long-s tanding t rus t and relat ionships wi th banks . This i s a
mutual ly benef icial s i tuat ion as banks can also expand thei r range of
products on offer to customers, while the insurance company will also
earn prof i t s f rom the exposure. Another advantage is that banks , wi th
their network in rural areas, help to fulf i l l rural and social obligations
stipulated by the
Insurance Regulatory and Development Authority (IRDA)
recently. Insurance companies should see bancassurance as a tool for increasing their market penetrat ion in India. I t is also good for the one
who sees bancassurance in terms of reduced price, high quali ty product
and delivery at doorsteps. Everybody is a winner here. The creation of
bancassurance operations has made an important impact on the financial
services industry at large. This is though a new concept but i t has gained
a lot of importance in the industry at present and has a great future.
PRODUCT INNOVATION
Cus tomers have t remendous cho ice f rom a l ar ge var ie ty o f
products from pure term insurance to unit- linked investment products.
Customers are offered unbundled products with a variety of benefi ts as
riders from which they can choose. More customers are buying products
and services based on thei r t rue needs and not jus t t radi t ional money-
back policies, which is not considered very appropriate for long-term
protection and savings.
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RURAL MARKETING
R ur al I nd ia s ee ms t o h av e a n a pp eti te f or mo bi le p ho ne s,
computers, and cars and to add to i t we have insurance. In India with the
private players having entered into the insurance industry, the expected
explosion in job opportunit ies may not actually happen but for them the
catchments area i s the opportuni ti es in the rural India . In India the
insurance business can be said to be a marathon, not a sprint. This is
because of the nature of the business being long term. However it seems
that they if not anything, are only increasing their spending, though only
out of the capi tal . As insurance companies go more and more rural in
search of bus iness , there wil l be opportuni ti es in the rura l sec tor .
A lr ea dy U nit ed I nd ia T he R ura l c on su me r i s n ow e xh ib iti ng a nincreas ing propens ity for Insurance products . A research conducted
exhibi ted that the rura l consumers are wil ling to dole out anyth ing
between Rs. 3,500 and Rs. 2,900 as premium each year. In the Insurance
the awareness level for Life Insurance is the highest in rural India, but
the customers are also aware about motor, accidents and cattle insurance.
According to a s tudy nearly one third said that they had purchased some
kind of insurance with the maximum penetrat ion skewed in favor of l i fe
insurance. The study also pointed out the private companies have huge
task to p lay in crea ting awareness and credit abi li ty among the rura l
populace.
INFORMATION TECHNOLOGY AND INSURANCE
In the insurance industry today, there is a clear trend away from
sell ing a broad range of products to a large volume of cus tomers in a
one- size-f i ts-al l manner. Instead of focusing on their different products
l ines as s i los ( i .e. , l i fe, property and casualty etc) insurers are looking
for ways to offer highly targeted insurance products that are tai lored to
the individuals customers with the h ighest propens ity to buy them.
Insurance industry is a data-r ich industry, and thus, there is desire need
to use the data for trend analysis and personalization.
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With increased competi t ion among insurers , service has become a
k ey is su e. P eo pl e to da y d on t w an t to a cc ep t t he c ur re nt v al ue
propositions, they want personalized interactions and they look for more
and more features and add ones and better service. Today managing the
cus tomer intel l igent ly i s very cr i t ical for the insurer especial ly in the
very competi t ive environment. Companies need to apply different set of
rules and treatment strategies to different customer segments.
With the explos ion of Webs it e and grea ter access to d irect or
policy information, there is a need to developing better techniques to
give cus tomers a t ruly personalized exper ience. Personalizat ion helps
organizations to reach their customers with more impact and to generate
new revenue through cross sel l ing and up sel l ing act ivi t ies . To ensure
that the customers are receiving personalized
information, many organizations are incorporating knowledge database-
repositories of content that typically include a search engine and lets the
customers loca te the a ll document and informat ion related to the ir
queries of request for services. Customers can hereby use the knowledge
database to manage the ir product s or the company information and
invoices, c la im records, and h i stor ies of the serv ice inquiry. These
products also may be able to learn from the customers previous
knowledge database and to use their information when determining the
relevance to the customers search request . The insurance sector remains
a very competi tive market and those companies that a re able to best
uti l ize their data and provide their customer with the most personalizedoptions will have the distinct competitive advantage.
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MERGERS AND ACQUISTIONS
This i s an era of merger s and acquis it ions. Private companies
i nc lu din g MN Cs a re a ma lg am at in g t he w or ld o ve r to g et mo re
compet it ive edge. Currently, the general insurance indust ry has been
opened up. The insurers a re doing enough to r ai se the l evel of r isk
a wa re ne ss o r a re t he y me re ly c on te nt t o c om pe te i n t he ma rk et s
organized and established. The private players in the future would have
to turn thei r at tent ion to working in the unorganized and under served
markets.
What is l ikely to happen is that the private players would continue
to skim the profi table segments of the already organized business in theurban areas? The t ime has already come for the government of India to
evaluate the performance of private companies.
H ow ev er i t i s h ig h t im e f or t he g ov ern me nt t o re al iz e t ha t
impor tance of merging the public sector general insurance companies
into s ingle enti ty. The recent scenar io calls for a bet ter performance
from part of each of the public sector insurance companies against each
other. The result what we see i s the undercutt ing to r etain or wrest
business and quoting an uneconomical rate of premium. While this
allows one of the Public Sectors Company to win a business form another
in th i s manner . The o ther s suf fer a los s and the r esul t ant e f fec t i s a
cannibalizat ion with a fal l in the average premium of the public sector
itself.
The purpose of having four companies al l subsidiaries of General
I ns ur an ce C or po ra tion o f I nd ia ( GI C) Na tion al I ns ur an ce
Company, New India Assurance Company, Orienta l Insurance
Company, and The United India Insurance Company; at the t ime of
nationalizat ion was to have competi t ion among themselves in service
and products at the same price.
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Now with real competition coming in with most of the global
insurance p layer s set ting footpr in ts here , i t i s f e lt tha t the t ime for
merger has come and to enjoy the benefi ts i f the size. I t is to be stated
that size does matter in insurance business. All over the worlds mergers
and acquisi t ions in the r isk-underwriting sector is common. The benefi ts
i f the four insurance companies merge wi l l be enormous . The merged
enti ty wil l en joy h igher underwr it ing and r isk r etent ion capacity;
increase in r einsurance premium, reduct ion in r e insurance outf low,
healthy solvency margins, set t ing r ight the asset- l iabil i ty mismatch and
reduction in cost . The loss of profi table business in view of undeserved
compe ti ti on among t he pub li c s ec to r compani es i s hamperi ng t he
subsidization of social insurance including the motor third party liability
(TPL).
I t i s thus clear that i t i s good for the public sector companies to
merge immediately when they are s t i l l s t rong, les t a merger becomes
inevitable later af ter the independent public sector companies fai l one
after another.
STRATEGIC ALTERNATIVES
I f one analyses the his tory of growth of the insurance industry
since reforms, i t is marked by al l- round growth of al l players. More or
l es s a ll p laye rs have aggress ivel y r ec ru it ed and t ra ined adv is or s,
appointed agents , launched new products, improved cus tomer service
s tandards and revamped/expanded their dist r ibut ion networks. Every
playe r would like the customers to believe that its service standards are
the bes t or that i t s agents are the most informed and ethical . In other
words , each company is t rying to be everything to everybody . Some
playe rs justify the above strategy on the basis that the Indian market is
huge and i t can accommodate everybody. St i l l , in a market where i t i s
d if fi cu lt to d i st ingui sh onese lf suff ic i ently on service or any o ther
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parameter to be able to charge a premium, it will lead to unmitigated
price competit ion to the detriment of all playe rs. In the insurance
industry where large amounts of capital are required, this is risky.
While there is room for a few scale players with a f inger in every
pie, it is profitable for the players to focus on different segments to
s ur vi ve and t hr ive i n a mul ti -f ir m open env ir onment . Whi le each
company has to choose i t s own unique pos i t ioning based on i t s unique
strengths.
Variety-based Positioning
This type of posit ioning is based on variet ies in products and
services rather than customer segments. It is a sensible strategy for those
companies who have d i st inc tive advantages or s tr engths in of fering
certain products and services.
In the insurance indust ry too, i t i s poss ible to achieve a unique
position by focusing on certain category of products. Through its
super ior fund management capabi li ti es , the insurance company can
deliver better returns on i t investment-l inked products and thereby for
itself a leadership position in this segment.
Then there i s the ent i re category of pens ion products , which is
widely touted to have immense growth potential in India due to imminent
pension reforms. It is possible to achieve profitable positioning by
focusing and excelling in only pension products.
Needs based Positioning
This is the most commonly understood positioning and is based
on the different needs of different groups of consumers. This can be done
successful ly i f a company has unique s t rengths to service a group of
customer needs better than others.
The insurance needs of young family wi th smal l chi ldren wi l l be
quite different from that of a family in which the income-earner is close
to ret irement. However, in India most of the Life Insurance companies
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have a wide variety of products of different customer needs and there is
no company focusing only on a particular customer needs.
Access- based Positioning
Posit ioning of customers can also be done by the way they are
access ible that i s di fferent groups of cus tomers may be access ible in
dif ferent ways even though they may have s imilar needs . Access i s
typically a function of customer scale.
There is excellent opportunity in the insurance industry to employ
access-based pos it ioning by targeting the rural insurance sector . The
rural market for Life Insurance is very different from the urban market in
terms of needs, income levels , distr ibution, penetrat ion of media and so
on. Except for LIC, no other player has paid any at tent ion or focus on
the rural sector. Contrary to common perception it is a big opportunity as
emphasized repeatedly by such eminent s t rategies l ike C.K.Prahlad.
Rur al mar ke t can be a h ighl y p ro fi tabl e pos it ion i f one i s abl e t o
carefully plan.
CHOOSING THE RIGHT STRATEGY
The r ight s t rategic choice i s not a mat ter of pos i t ioning choice
alone. I t i s the conf igurat ion of the ent i re value chain of the company
through a different set of activities to deliver unique value to consumers.
The set of act ivi t ies cover al l upstream and downstream activi t ies , from
t he s el ec ti on o f t he p roduct mix . Some L if e I ns ur ance compani es
focusing on rural markets have adopted innovative means of distribution.
I ns tead o f appoi nt ing agent s a s i s done t yp ical ly, t hey have used
Gramsevaks in di fferent vi llages across the country to promote Life
Insurance and act as their sales arm.
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So we can conclude that , the size of the market has grown and the
size of the insurable populat ion in India is indeed vast and the exist ing
playe rs have managed to cover about one-fourth of it.
The f al li ng i nt er es t r at es , t he col laps e o f many s ma ll ti me
financial inst i tut ions, the scope for entering related areas l ike banking
and pensions in a bid for synergy and the promise of the e-commerce are
some of the other opportunit ies knocking at the doors of the insurance
majors.
A number of web sites are coming up on insurance, a few financial
magazines exclus ive ly devoted to insurance and a lso a f ew t ra in ing
i ns ti tu te s b ei ng s et u p h ur ri ed ly. M an y o f t he u ni ve rs it ie s a nd
management institutes have already started courses in insurance.
L if e i ns ur ance has t oday become a mai ns tay o f any mar ke t
economy s ince i t offer s p lenty of scope for garner ing l arge sums of
money for long periods of time. A well regulated Life Insurance industry
which moves with the t imes by offering i ts customers t ai lor -made
products to satisfy their financial needs is, therefore, essential if we
desire to progress towards a worry-free future.
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COMPANY
PROFILE
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ABOUT BAJAJ ALLIANZ LIFE INSURANCE
Mission: As a responsible cus tomers focused market leader , we s t i l ls tr ive t o under st and t he i ns ur ance needs o f t he consumers and
translate it into affordable products that deliver value for money .
Vision:
To be the first choice insurer for customers.
To be the preferred employee for staff in the insurance industry.
To be the number one insurer for creating shareholder value.
SAM GHOSH , who was the CEO of Bajaj Allianz earlier has taken over
as country Manager and is also the CEO of Bajaj Allianz Life
Insurance Company.
Bajaj Allianz Life Insurance Company Limited
Bajaj Al l ianz Life Insurance Co. Ltd i s a joint venture between
two leading conglomerates- , and Bajaj Auto, one of the biggest two and
three-wheeler manufacturers in the wor ld and Al l ianz AG, one of the
worlds largest insurance companies.
Bajaj Allianze Life Insurance
Is the fastest growing private life insurance company in India.
Currently have over 300000 satisfied customers.
Have Customer care centers in 156 ci t ies wi th 28000 Insurance
Consultant providing the finest customer service.
One of Indias leading private life insurance companies.
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Bajaj Allianz General Insurance Company Limited
Baja j All ianz Genera l Insurance Company Limited i s a joint
venture between Bajaj Auto Limited and All ianz AG of Germany. Both
enjoy a reputation of expertise, stability and strength.
Bajaj All ianz General Insurance received the Insurance Regulatory
and Development Authori ty (IRDA) cert if icate of Registrat ion (R3) on
May 2n d , 2001 to conduct General Insurance business ( including Health
Insurance business) in India. The Company has an authorized and paid up
capi tal of Rs .110 crores . Bajaj Auto holds 74% and Al l ianz holds the
remaining 26%. AG, Germany.
In i ts f irs t year of operations the company has acquired the NO. 1
status among the private non-l ife insurers . As on 31 s t March 2003, Bajaj
All ianze Gener al I ns ur ance mai nt ai ned i ts l eade rs hi p pos it ion by
garnering a premium income of Rs .300 Crores . Bajaj All ianze a lso
became one of the few companies to make a profit in its first full year of
operations. Bajaj Allianz made a profit after tax of Rs.9.6 crores.
Bajaj All ianze today has a network of 40 offices spread across the
length and breadth of the country. From Surat to Sli l iguri and Jammu to
Thiruvananthapuram, al l the 38 offices are interconnected with the Head
Office at Pune.
In the f ir st ha lf of the current f inancial year , 2004-05, Baja j
Al lianz generated a premium income of Rs.405 crores, achieving a
growth of 84% and regi s t ered a 52% growth in Net prof i t of Rs . 20
Crores over the last year for the same period. In the f inancial year 2003-
04, the premium earned was Rs.480 Crores, which is a jump of 60% and
the profit zoomed by 125% to Rs. 21.6% Crores.
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Shareholders & Promoters
Bajaj Auto Limited
Bajaj Auto Limited is the largest manufacturer of two and three-
wheelers in India and also one of the largest manufacturers in the world.
Bajaj Auto has been in operation for over 55 years. As a promoter of
Bajaj Allianz General Insurance Company Ltd., Bajaj Auto has the
following to offer:
Vast distribution network.
Knowledge of Indian consumers.
Financial strength and stability to support the insurance business
Allianz AG, Germany
Allianz Group is one of the world's leading insurers and financial
services providers.
Founded in 1890 in Berlin, Allianz is now present in more than 70
countries with over 177,000 employees. At the top of the international
group is the holding company, Allianz AG, with its head office in
Munich.
Allianz Group provides its more than 60 million customers worldwide
with a comprehensive range of services in the areas of
Property and casualty insurance,
Life and health insurance,
Asset management and banking.
In fiscal year 2005, Allianz's total revenues amounted to some 100.9
billion euros. At the end of 2005 Allianz Group had more than 1.26
trillion euros in assets under management. Of this, 743 billion euros
were assets managed for third parties.
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History of Allianz
Documenting and researching its corporate history is part and
parcel of the corporate culture of Allianz AG.
The Allianz Center for Corporate History devotes itself to these tasks.
As a frequently used information center, it has evolved into the
company's "living memory".
Global Presence
Allianz Group is present on every continent and has companies and
of fi ces in about 70 countr ies . More informat ion about our loca tions
throughout the wor ld i s avai lable by moving the cursor over the wor ld
map.
Business Fields
Property & Casualty Insurance
When i t comes to proper ty and casualty insurance , All ianz i s
number one in Germany. All ianz also ranks as one of the world's leadingglobal industrial risk insurers.
Life & Health Insurance
In life and health insurance, Allianz Group is among the top
companies in Europe. Private and corporate retirement provision is
emerging as a major market
Asset Management & Banking
Allianz Group's asset management activities are integrated under one
roof at Allianz Global Investors. With Dresdner Bank, the Allianz Group
has laid a broad foundation in order to address clients ' needs on the
investment market.
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All ianz AG i s i n t he bus ines s o f Gener al ( Pr oper ty & Cas ua lt y)
Insurance; Life & Health Insurance and Asset Management and has been
in operat ion for over 110 year s. Al li anz i s one of the l a rgest g lobal
composite insurance with operations in over 70 countries. Further, the
Group provides Risk Management and Loss Prevention Services. All ianz
has insured most of the worlds largest infrastructure projects (including
Honkong Airport and Channel Tunnel between UK and France), further
All ianz insures the majori ty of the fortune 500 companies, besides being
a l arge indus tr ia l insure , All ianz has a subs tanti al port fo lio in the
commercial and personal l ines sector , using a wide variety of innovative
distribution channels.
Allianz AG has the following of offer Bajaj Allianz General
Insurance Company Ltd.:
Set up and running of General insurance operations
New and improved international products
One of the worlds leading insurance companies
More than 700 subsidiar ies and 2 lac employees in over 70 countr ies
worldwide
Provides insurance to almost half the Fortune 500 companies
A Partnership Based on Synergy
Baj aj A ll ianz Gener al I ns ur ance Company o ff er s t echn ical
excellence in al l areas of General and Health Insurance as well as Risk
Management . This par tnership successful ly combines Bajaj Autos in-
depth unders tanding of the loca l market and extensive d is tr ibution
network with the global experience and technical expertise of the Allianz
Group. As a registered Indian Insurance Company and a capital base of
Rs.110 crores, the company is:
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Ful ly l icensed to underwri te al l l ines of general insurance bus iness
including health with management control by Allianz AG
About Bajaj Allianz Life Insurance:
Bajaj Al lianz Life Insurance Company has developed insurance
solu tions that ca ter to every segment and age- income profi les . It s
products include Invest Gain (a unique life insurance plan where
sustenance of income is combined in the same plan that also pays a lump
s um), Cas h Gai n ( Money Back) , Chi ld Gai n( Chil dr en s p lan where
sustenance of income is combined in the same plan that also pays a lum
sum), Cash Gain (Money Back), Child Gain (Childrens Plan), Risk care
(Pure Term), Life Time Care (whole Life) , term Care ( term with return of
premium), Swarna Vishranti (Retirement Plan), Protector (Mortgage term
insurance plan), UnitGain (Unit Linked Whole of Life Plan) and Unit Gain
Single Premium.
Bajaj Al l ianz Life Insurance is poised for an accelerated growth in the
market and has already become the fastest growing private l i fe insurance
company in India. Baja j All ianz Life Insurance has a wide pan India
presence of office network in 156 citied of the country and is aided with a
s t rong and t rained Agency network of over 28000 agents . Bajaj Al l ianz
has also forged strong Banc assurance and Corporate Agency relat ionship
and cont inues to build on new t i e -ups for f ast t rack growth and deep
market penetration.
Bajaj Al l ianz Life Insurance has launched a s lew of need-based
products to cater to each varied needs of the customer. Currently Bajaj
Al l ianz Life Insurance has a product por t fol io of 19 products and more
need-based products are in the pipeline .
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Bajaj Allianz general Insurance: 125 percent profit Increase
Baja j All ianz Genera l Insurance Company Limited i s a jointventure company between Bajaj Auto Ltd., Indias leading manufacturer
of two and three wheeler vehicles and the Allianz Group.
Bajaj All ianz General Insurance offers technical excellence in al l
areas of general and health insurance and risk management.
The par tnership successfully combines Bajaj Autos extens ive
unders tanding of the loca l market and expansive d is tr ibution with
Allianz Groups global experience and technical expertise.
Bajaj Allianz General Insurance is headquartered in Pune and has a
wide network of 40 offices spanning the country. All the offices are fully
networked. The company received the IRDA regis t rat ion in may 2001
; today, i t a l ready has a vas t range of 45 products to suit i t s corporate
and retail customers. The company has also pioneered in unique forms of
risk cover.
In the year 2003-2004, the company garnered a premium income of
approximately 4.8 bil l ion Rupees (86 mill ion Euros) with a profi t af ter
t ax o f 220 mil li on Rupees ( 3.9 mil li on Eur os ); i t s ol d 1 .2 mil li on
policies. With this result, it achieved a net profit growth of 125 percent,
gross written premiums jumped by over 60 percent.
All ianz Bajaj Changed Its Name To Bajaj All ianz Life
Insurance
All ianz Bajaj Li fe Insurance Co. Ltd. , the fas tes t growing pr ivate l i fe
insurance co. today announced that i t has changed i ts corporate name to
Bajaj Al l ianz Life Insurance Co. Ltd, ef fect ive f rom August 03, 2004.
The change i n company name comes i n con junc ti on wit h r es ea rch
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f indings f rom exis ting customers, business associates, prospective
customers and other s takeholders indicates higher comfort level and ease
of recall ing Bajaj name first and then All ianz, and hence the name Bajaj
Allianz.
Baja j All ianz Genera l Insurance Company Limited and Baja j
All ianz Life Insurance Company Limited wil l now have a common logo
and branding which will help in increasing our visibility and familiarity,
which wil l create a much larger awareness and a greater mind share. The
new logo incorporates the new Bajaj Auto logo.
Comment ing on this occas ion Mr. Sam Ghose Manager , Al l ianz
and CEO, Bajaj All ianz Life Insurance said, we are not only acquiring
a ne w nam e, b ut ha ve pu t in mo tion a n ew lev el of en erg y a nd
commitment to del iver ing the bes t products . The name change coupled
with aggressive strategic market ini t iat ives to reach service customers
better will give us an unbeatable position in the insurance market in this
country and both Life and General companies together can unleash the
Power of One and be the leader in the insurance industry.
Bajaj Al l ianz Life Insurance recent ly launched over 100 satel l i tes
branches, new life and non-life group products, which has helped Bajaj
Al l ianz ( former ly known as Al l ianz Bajaj ) to log in Rs .100 Cr . Gross
Writ ten Premium (GWP) in the f irs t 100 days of this f inancial year and
has leaped to 2 nd posit ion as per IRDA figures ending June 04, from its
7 t h position at the end of last financial year.
Bajaj All ianz Life Insurance has also brought in the key executives, to
infuse greater thrust , new ideas, eff iciency and professionalism to impartstate of the art servicing to the customers across the length and breadth of
the country.
CORE COMPETENCIES AT BAJAJ ALLIANZ LIFE
INSURANCE
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The Bajaj Allianz Difference
Business strategy al igned to cl ients needs and trends in India and
global economy industry
I nte rn ati on al ly e xp er ie nc ed c or e t ea m, m aj or it y w it h lo ca l
background
Fast, decentralized decision making
Long-term commitment to market and clients
Trust
At Bajaj Al l ianz, they have real ized that the cus tomer seeks aninsurer whom he/she can trust. Bajaj All ianz Limited is t rusted name for
over 55 years in the Indian market and All ianz AG has over 110 years of
global experience in f inancial services. Together they are committed to
provide the customer with time tested and trusted financial solutions that
provide the customer all the security he/she need for their investments.
And more
Underwriting Philosophy
Their underwriting philosophy focused on:
Understanding the customers needs
Underwriting what we understand
Meeting the customers requirements
Ensuring optimal coverage at lowest cost
Claims Philosophy
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The Bajaj Al l ianz team fol lows a service that aims at taking the
anxiety out of claims process ing. They pr ide themselves on a f r iendly
and open approach. They are focused towards providing the customer a
hassle free and speedy claims processing. Their claims philosophy is to:
Be flexible and settle fast
Ensure no claim file to be seen by more than 3 people
Check p rocess es r egul ar ly aga inst t he g loba l A ll ianz OPEX
(Operational Excellence) methodology
Customer Orientation
At Bajaj All ianz, the guiding principals are customer service and
client satisfaction. All the efforts are directed towards understanding the
cul ture, social environment and individual insurance requirements- so
that they can cater to all the customers varied needs.
Experienced and Expert Servicing Team
Baja j Al li anz i s driven by a t eam of exper ienced people who
understand Indian r isks and are supported by the necessary international
expertise requires to analyses and assess them service engineers located in
every major city.
Superior Technology
In order to ensure speedy and accurate processing o the customersn ee ds , th ey h av e e st ab lis he d w or ld s c la ss t ec hn ol og y, w it h
renowned insurance sof tware, which networks al l our of f ices and
intermediaries
Using the Web, pol icies can be issued form any off ice across the
country for retail products
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Unique, user f r iendly sof tware developed to make the process of
i ss ue o f pol ic ie s and c la ims s et tl emen t s impl er ( e.g. onl ine
insurance of marine policy certificate)
Unique Forms of Risk Cover
Special PA cover for Amarnath Yatris
Housing loan cover for people, who are suddenly unemployed
Film insurance
Event management cover
Risk Management Their Expertise
Their service methodology is t r ied, tested and Proven the world over
and involves:
Risk identification: Inspection
Risk analysis: Portfolio review and gap analysis.
Risk retention
Risk Transfer: To an insurer as well as reinsurer (as required)
Creation of need based products
Ongoing dialogue and proactively
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PRODUCTS
OF
BAJAJ ALLIANZ
LIFE INSURANCE
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LIFE INSURANCE POLICIES
LIFE LONG GAIN
The Bajaj All ianz Life gain Plan comes with a host of features to
a ll ow cus tomer t o have t he bes t o f a ll wor ds r egul ar i ncome f or
customer and the added benefi ts of providing for loved ones too. This is
the perfect plan to take care of ongoing and future family expenses l ike
debts, expenses on children, l iving expenses, etc. I t can also take care of
unforeseen expenses l ike accidents , i l lness. Hospi tal izat ion etc. andprovides a family with a safety net.
How does the plan work?
The premiums paid are invested in the Lifelong Gain Fund (based on the
al location rate) and uni ts are al located depending on the offer pr ice of
units for the fund. The value of the policy is the bid value of units that a
cus tomer hol ds i n t he f und. The l if e i ns ur ance cover cha rges a re
d ed uc te d th ro ugh mon thl y c an cellat io n o f u nits a nd the fun d
administrat ion charge and fund management charge are priced in the unit
value.
Benefits available under the plan
Death Benefit: In the case of unfor tunate premature death the
beneficiaries are entitled to the greater of :
Sum Assured less partial withdrawals
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The bid value of units
I f the age of the insured person is less than 7 or above 70, then the
bid value of unit is paid.
Guaranteed Survival Benefits:
Guaranteed Survival Benefi ts are available under this policy.
Bajaj All ianz Life Insurance wil l pay, by cancellat ion of units in the
account of the pol icy, 3% of the Sum Assured every year af ter the
premium payment are over till the termination of the policy. This
guaranteed amount is payable every year provided al l premiums have
been paid and no partial withdrawal were made, the guaranteed
survival benefi t would be 3% (Sum Assured less part ial withdrawal)
for the subsequent policy years. If the part ial withdrawals made are
equal to the Sum Assured, then the guaranteed survival benefi t wil l
become nil and funds in the account will be available to the customer
for full/partial withdrawals as and when a customer needs them.
Maturity Benefits:
On the l ife assured at taining age 100, the bid value of unit in the
fund will be paid out and the policy will terminate.
Full Withdrawal:
Life long Gain offers the customer the flexibility of the withdrawals
by surrendering all his units, anyt ime after 3 full years premiums
paid. The full withdrawals are paid out at the bid value of units. On
full withdrawal the policy will terminate.
Partial Withdrawal:
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Lifelong Gain allows the customer to make partial withdrawals
anytime after all the premiums are paid. This gives the customer the
liquidity and option to take out additional money over and above the
guaranteed survival benef it s, as and when required . In case of
partial withdrawal, a minimum withdrawal amount is Rs.1000/- . In
the case of a partial withdrawal, the subsequent Guaranteed
S ur vi va l B en ef it s w il l b e 3 % o f (S um A ss ur ed l es s p ar tia l
withdrawals made).
Key Features
Guaranteed death benefits
Whole life protection with only 10 or 15 years of contributions.
Guaranteed survival Benef i ts that pays 3% of the Sum Assured
every year after the premium payments are over
Provision for full and partial withdrawals .
Benefits
Death benefits
Guaranteed Survival Benefits
Maturity Benefits
Full Withdrawals
Partial Withdrawals
UNIT GAIN PLUS
With Bajaj All ianz Unit Gain Plus, A customer can invest in one
life in sura nce plan th at ca n ta ke care o f all h is/h er ch an ging
requirements throughout the ir l if e. This p lan has been des igned to
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provide them with maximum flexibility, so that they do not have to
worry about their changing need s.
Bajaj All ianz Unit Gain Plus Offers the unique option of combining the
protection of life insurance with the attractive prospects of investing in
securities. A person can choose the
i nves tmen t f unds t ha t he wan ts t o i nves t h is money , p rovi di ng an
oppor tuni ty to have a di rect s take in the performance of the f inancial
market . Customer also benef i t s f rom at t ract ive tax advantages and can
protect loved ones against unfortunate events .
How does the plan work?
The premiums paid are invested in fund/ funds of customer s
cho ice ( depend ing on t he a ll ocat ion r at e) and uni ts a re a ll ocat ed
depending on the price of units that the customer holds in the fund/funds.
The insurance cover and admini st ra tion charges a deducted through
cancellation of units , The Fund Management Charge is priced in the unit
value .
Minimum Sum Assured = 5 time the annual premium.
Maximum Sum Assured = y t times annual premium.
The Five funds offered are as under:
a) Equity Index Fund : The investment objective of this Fund is to
provide capital appreciation through investment in equities. The
plan is expected to match the returns given by Nifty Index of the
National Stock Exchange. This fund wi l l inves t a t l eas t 85% in
equities and maximum 15% in debt and cash.
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b) Equity Plus Fund : The investment objective of this Fund is to
provide capital appreciation through investment in select equities
s tocks that have the potent ial for high capital appreciat ion. This
fund wil l invest at least 85% in equit ies and maximum 15% in debt
and cash instruments.
c) Debt P lus Fund : The investment object ive of thi s Fund i s to
provide accumulation of income through investment in high quality
fixed income securi t ies l ike G-Secs, and corporate debt rates AA
and above. This fund wil l be invested fully in Debt Instruments and
money market instruments.
d) Balanced Plus Fund : T his f un d is a fu nd o f f un ds . T he
i nv es tme nt o bj ec tiv e o f t hi s f un d i s t o p ro vi de a b al an ce d
investment be tween long-term capi ta l apprec ia tion and current
income through investment in the Units of Bajaj Allianzs Equity
Index and Debt Plus Funds. The balanced fund wil l invest 30% to
50% in the equity index fund and 50% to 70% in the debt plus fund.
Cash Plus Fund : The investment objective of this Plan is to have a
fund tha t guarantees invested capi ta l through investments in l iquid
money market and short - te rm ins truments l ike Commercia l Papers,
Cert ificate of Deposits , money market , Mutual Funds, Bank FDs etc. The
price of units in this fund is guaranteed not to go down.1005 of this fund
will be invested in money market instruments. The price of the units in
this fund is guaranteed never to go down.
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Flexibilities to manage customer investments
Bajaj Al lianz offers the f lexibil i ty to manage the inves tments.
Ini t ial ly, the customer can al locate the premium into the 5 funds that are
available in a proport ion of his/her choice. Subsequently, depending on
the performance of funds, customer can switch between funds and also
change the a lloca tion of premium to various funds . They a llow the
cus tomer t hr ee s wi tches eve ry pol icy yea r s ub ject t o a minimum
switching amount of Rs. 5,000/- or the fund value, whichever is lower.
The cus tomer can also change the propor t ion of premium al locat ion to
various funds at each policy anniversary.
Unmatched Flexibility to suits the customers changing
requirements
Bajaj All ianz Unit Gain Plus offers unmatched f lexibil i ty to suit the
policy according to the customers requirements.
Flexibility In Premium Payment : The cus tomer has the
flexibil i ty to decide how long he/she wishes to pay the premiums
and when he wants to cash out the policy benefi ts . Customer may
choose to cash out the pol icy benefi t s at one shot or do i t as and
when you require cash through partial surrender of units .
Flexibility to Increase the Sum Assured : The Customerhave the option to increase the Sum Assured without any medical
tests every 3 r d year up to 4 t imes. The quantum of increase would
be 25% of the original Sum Assured or Rs 1,00,000/- whichever is
lower. If the customer does not exercise an option when i t is due,
i t cannot be carried forward. If the age is les than 18 years at the
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s tar t of pol icy, al l 4 increments wi l l be avai lable f rom age 18.
Apart f rom exercising the opt ions to increase the Sum Assured
without medical tes ts , he/she can increase the Sum Assured any
time. Subject to medical underwrit ing (available up to age 60). In
ei ther case, the Sum Assured af ter increase must be equal to or
less than the maximum Sum Assured avai lable foe the premium
level chosen. The customer should give notice of increase in death
benefit 15 days before the yearly policy anniversary.
Flexibility to decrease the Sum Assured : The customer
can decrease the Sum Assured (in multiples of 1000) at any time to
suit their changing needs. The sum Assured, af ter decrease, must
be at least 5 times the annual premium. After a decrease
subsequent increases will be subject to underwriting.
Flexibil ity to Pay Top ups : The cus tomer may have received a
bonus or some lump sum money. The customer can use that to
increase his /her inves tments in their pol icy.98% of any amount
paid as top-up is allocated to their funds.
Flexibility to increase the level of Regular Premium
Payment : The customers earnings grow over t ime, and so does
their savings potent ial . With Bajaj Al lianz Uni t gain Plus , the
cus tomers w il l have t he f lexi bi li ty t o i nc reas e t he ir r egul ar
premium amount at any time.
Assured Protection even if the customer misses payment
of their premiums : Bajaj All ianz Unit Gain Plus provides the
customer with the unique features of continued protection even if
they forget to pay the ir premiums. After payment of three fu ll
years premiums, when premiums due are not paid, the policy wil l
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s tay in force wi th ful l benef i ts so long as there are enough uni ts
ava il ab le f or cha rg ing t he Cos t o f I ns ur ance and Add it iona l
Benefits after deducting all applicable charges .
Important Details of the Bajaj Allianz Unit Gain Plus Plan
Minimum Age at Entry: 0(Risk commences at age 7, and ceases
after age 70)
Maximum Age at Entry: 60.
The minimum age at entry for all additional benefits is 18 years.
The maximum age at entry for all additional benefits is 50 years.
All additional benefits are available till age 65.
Premium Payment Mode
For the customers convenience, All ianz have provided 3 regular
premium payment modes that can be Yearly, Half Yearly, and Quarterly.
They also offer a monthly premium payment mode with salary deduction
schemes. In addit ion, the customer also has the option to pay top-ups to
increase his/her investments. The minimum premium is Rs.15000/- for the Annual Mode, Rs .7500/- for Half Year ly, Rs .3750/- for Quar ter ly,
and Rs.1500/- for the Monthly Mode. The minimum top-up premium is
Rs.5000/-.
Partial and Full Withdrawals
UnitGain Plus offers the full f lexibil i ty of ful l as well as part ialwithdrawals by surrendering units , anytime after 3 ful l years premium
are paid. The surrenders are paid put at the value of units, and there is no
s ur render penal ty on par ti al o r f ul l w it hdrawa ls a ft er f ul l 3 year s
premiums are paid.
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Key Features
Guaranteed death benefit
C ho ice o f 5 inv est men t fu nds w ith flex ib le in vestmen t
management: you can change funds at any time.
Attractive investment alternative to fixed-interest securities.
Provis ion for ful l/part ial wi thdrawals any t ime af ter three full
years premiums is paid.
Unmatched flexibility- to match your changing needs.
Benefits
Death Benefits
Cash withdrawal option
Term Care
This plan not only offers the cus tomer l i fe insurance cover at a
low cost , but a lso provides for r eturn of premiums on matur ity. Thepremiums returns at maturity will be equal to the single premium or the
s um t ot al o f e qu iv ale nt a nn ua l p re miu ms o f t he E co no my P ac k
(excluding extra premiums charged if any). In case of premature death
the policy term, the full sum Assured will be paid to the nominee.
How does the plan work?
The Bajaj All ianz Term care Plan o ff er s t he cus tomer t he
convenience of choosing between two premium payment options.
Regular Premium Payment : Premium payment throughout
the selected term.
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Single Premium Payment : One t ime premium payment for
the selected term at commencement.
Apart from covering the r isk of natural death, this plan also provides
the customer the option to choose up to 5 addi tional benef it s. The
customer can select a speci f ic combinat ion of addi t ional benef i t s bes t
suited to his/her needs, available in 4 attractive packages to choose from.
I. Economy : This is the basic plan, which is available for both the
regular and single premium payment options.
II. Protect : This pack comes with the following 3 in-built additional
benefits :
a) Accidental death Benefit.
b) Accidental Permanent Total/Partial Disability Benefit
c) Waiver of Premium Benefi t ( in case of accidental permanent
total disability)
The Protect Pack is available with the regular premium payment option
only.
III. Health : Thi s pack comes wi th t he f ol lowi ng 2 i n bu il t
additional benefits :
a) Critical Illness Benefit.
b) Hospital cash Benefi t. The health Pack is available with the
regular premium payment option only.
IV. Total : This pack comes with the following 5 in-buil t addit ional
benefits :
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a) Accidental Death Benefit.
b) Accidental Permanent Total/ Partial Disability Benefit.
c) Waiver of Premium Benefi t ( in case of accidental permanent
total disability)
d) Critical Illness benefit
e) Hospital Cash Benefit
The Total Pack is avai lable wi th the regular premium payment opt ion
only.
Benefits :
Accidental Death Benefit
Accidental Permanent Total /Partial Disability Benefit
Waiver of premium Benefit
Critical Illness Benefit
Tax Benefits
Surrender
Loans
LOAN PROTECTOR
The Baj aj A ll ianz Loan Pro tect or p lan i s a mor tgage t er m
insurance plan that covers the outstanding principal amount of a loan. I t
is an economical way to protect the family from the burden of repayment
of the loan in case of death of the loaner. The plan is designed to pay a
sum insured that wil l be equal to the outstanding principal amount of the
loan due.
How does the plan work?
The Bajaj Allianz Protector Plan offers the convenience of
choosing between two premium payment options.
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I. Regular Premium Payment : Premium payment l imi ted to
approximately 2/3 r d of loan tenure, whi le coverage cont inues for
the full tenure of the loan.
II. Single Premium Payment : One t ime p remi um payment
covering the customer for the full tenure of the loan .
Joint Life Availability
The Customer has the option to cover the co-applicant of the loan
under this plan. Under this opt ion, both l ives wi l l be covered and thedeath benefi t wil l be payable in case of death of ei ther l i fe. The policy
terminates on death of either life.
Days of Grace
In case of non-payment of premiums, a grace per iod of 30 days
will be al lowed for the yearly, half yearly and quarterly modes (15 daysfor monthly mode). After that the policy will lapse.
Revival Of the Policy
I t is possible to revive a policy that has lapse due to non-payment
of premiums within 5 years from the date of lapse. The revival wil l be
effected subject to underwrit ing. In case of joint l i fe, revival would be
subject to underwriting on both lives.
General Exclusion
Within 15 days from the date of receipt of the policy, the customer
have the option to review the terms and condit ions and return the policy,
i f the cus tomer disagree to any of the term and condi t ions , s tat ing the
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reasons for his/her objections. The customer wil l be enti t led to a refund
of the premium paid, subject only to a deduction of a proport ionate r isk
premium for the period on cover and expenses incurred on medical
examination and stamp duty charges.
Benefits :
Death Benefit
Premium Payment mode
Tax benefits
Surrender values/ paid up values
CHILD GAIN
Taking care of a child is perhaps the most important job a parent
can have. I t is but natural that a person would l ike to give his/her best ,
and therefore, this is the t ime when careful f inancial planning can help
t hem t o f ul fi ll t he a sp ir at ions t ha t t he cus tomers have f or h is /her
children .
How does the plan work?
The Bajaj Allianz Child Gain solut ions help the cus tomer to
enjoy the joys of parenthood responsibi l i ty, wi th the reassurance of a
secure future for their child.
Common features in the 4 opt ions of Bajaj Al l ianz Chi ld gain
Solutions.
I. Limited Premium Payment Term W hi ch m ea ns t ha t t he
premiums are payable till the customers child attains age 18 ye ars .
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II. The customers contributions grow by way of
compounded annual bonuses, which wi l l be paid to him wi th
the f irs t guaranteed payout (policy anniversary following age 18 of
your child) , for in-force policies. In addit ion to the annual bonuses,
a terminal bonus may also be paid.
III. The customers are also eligible for Tax benefits under Section 88
and Section 10 (10 D) of the Income Tax Act.
IV. Assuring Your Childs Future In an uncertain world , the
prime interest of yo ur child cannot be jeopardized in any way.
Which is why the Bajaj Allianz has buil t in some added benefi ts in
al l thei r plans to protect the interes ts of your chi lds future, by
counter insuring you- the policyholder.
Premiums
For the customers convenience they have provided three Premium
Payment Modes can be Yearly, Half yearly or Quarterly.
They also offer a Monthly Premium Payment Mode under salary
deduction schemes.
SurrenderThey offer the customer the choice of sur render ing the poli cy
provided three full ye ars premium have been paid (Two years for
premium terms of 5 and 6 years). The guaranteed minimum surrender
value is 30% of al l premiums paid excluding the f irs t year premium and
excluding the premiums for premium waiver benefi t and Family Income
benefit and additional benefit opted for. The guaranteed minimum
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surrender value after the premium payment term will be the discounted
value of the outs tanding ins tal lment payments discounted at 10 % p.a.
rate of interest.
Loans
L oa ns a re n ot a va ila bl e w it h Bajaj All ianz Child Gain
solutions.
15 days Free Look Period :
Wit hi n 15 days f rom t he dat e o f r ecei pt s o f t he pol icy, t he
customer have the option to review the terms and condit ions return thepolicy, if he/she disagree to any of the terms and conditions, stating the
reasons for his/her objections. The customer wil l be enti t led to a refund
of the premium paid, subject only to a deduct ion of propor t ionate r i sk
premium for the period on cover and the expenses incurred on medical
examination and stamp duty charges.
Exclusions
The Death Cover is subject to the following Exclusion :
Suicide within one year from commencement of r isk, whether sane or not
this product brochure gives the sal ient feature only. The relevant policy
document i s the conclus ive evidence of the contract , and provides in
detai l a l l the condi t ions . Exclus ion related to each of plans under the
Bajaj Allianz Child Gain Solutions.
INVEST GAIN
I t takes only a moment to make promises and a l i fet ime to keep
the m. Kee pin g pro mises mad e to yo ur lo ved o ne s is n ot ju st a
responsibility, but a commitment that you have to live up to.
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When you promise to see your family through thick and thin you
need to make sure that you have planned for al l the eventual i t ies that
may befall on them. You need to be prepared that even if there ever is an
instance that you are not there with them you have saved enough to see
them through their entire life.
Accidental Death Benefit :
Accidents are always sudden and sometimes fatal. You cant lessen
the emot ional shock, but you can cert a in ly sof ten the f inancia l one.
Bajaj Al lianz Accidental Death Benef it g iv es t he lo ve d o ne s
something to start with after the permanent loss of income by paying an
account equal to Sum Assured. (Subject to a maximum of Rs. 50,00,000/-
under all policies with Bajaj Allianz taken together).
Accidental Permanent Total/Partial Disability Benefit :
Accidents are unpredictable and so are the consequences. They may
lead to a disability partial or total. This benefit provides a financial
cushion against such misfortunes. You will get 50% of the Sum Assured
in case of partial disability and 100% in case of total disability. (Subject
to a maximum of Rs. 25,00,000/- for partial and Rs. 50,00,000/- for total
disability under all policies with Bajaj Allianz taken together).
Waiver of Premium Benefit :An accident may lead to permanent total disabil i ty, l imit ing ones
abil ity to earn . Bajaj Al lianz Waiver of Premium Benef it is a
helping hand when one needs i t most . I t waives off al l future premiums
while keeping the valuable l i fe insurance cover al ive, thus enabling you
to live up to your commitments.
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Critical Illness Benefit (CI) :
Some i l lnesses are cri t ical . They not only al ter ones l i fes pattern
but also result in a financial drain. Bajaj Allianz Critical Il lness
benefit sof tens the impact on the f ami ly by paying out the Cr i t i ca l
I l lness Benefi t under the plan immediately, while other policy benefi ts
con ti nue ( excl ud ing Hos pi ta l Cas h Benef it ). We cover 11 c ri ti ca l
i l lnesses. The customer have the f lexibil i ty of choosing Crit ical I l lness
cover up t o t he bas ic Sum Ass ur ed s el ec ted by you ( Mi ni mum Rs.
50,000)
Hospital Cash Benefit (HC) :
The worry of set t l ing hospi tal bi l l s ( room charges) adds to the
t rauma of hospi tal izat ion. Bajaj Al lianz Hospital Cash Benef it
reduces this financial burden and helps recovery with peace of mind.
Flexibility in Coverage :
All Bajaj Al l ianz, they bel ieve I of fer ing benef i t s and not jus t
products. They realize that customers are unique and their needs fori ns ur ance var y wit h t ime. They t he re fo re o ff er t he cus tomer t he
f lexibi l i ty of inclus ion of coverage or exclus ion of coverage at each
policy anniversary, subject to conditions relating to such inclusions and
exclusion. Comprehensive Accident Protection can be included and
excluded at each pol icy anniversary. Family Income Benef i t, Cr it ical
I l lness benefi t and Hospital Cash Benefi t can be taken at inception only.
CI and HC can be r educed o r exc luded s ubsequen tl y a t any pol icy
anniversary . Once reduced or excluded, they cannot be increased or
included subsequently.
Increase In risk Coverage
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Every added responsibi l i ty in a persons l i fe cal l for increase in
his /her r isk cover. Bajaj All ianz provide the cus tomer the option to
increase coverage up to 505 of the bas ic Sum Assured on each of the
following happy moments in their life :
Your Marriage.
The Birth of your First Child.
The Birth of the Second Child.
This additional coverage is not subject to underwriting
Bajaj Allianz Cash Gain Platinum :
Quadruple Sum Assured + Bonuses
Choice Of Terms
Keeping the customers convenience in mind, Bajaj Allianz offers
the customer the widest range of terms : 15, 20, 25,and 30 years.
Additional Protection For The Customer need Their
Family
The customers have the option to add the fol lowing addi tional
benefits. Providing total protection against uncertainties .
a) Family Income Benefit (FIB) : The Ult imate Protection For
your loved Ones . The customer can selec t the unique Fami ly Income
Benef i t From Bajaj Al lianz that ensures total f inancial protection for
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t he ir l ov ed o ne s. I n c as e o f d ea th o r a cc id en ta l t ot al p er ma ne nt
disabi l i ty, a guaranteed monthly income 1% of the Sum Assured (12%
per annum) is paid till the end of the policy term or at least for a period
of 10 year s, whichever i s h igher . Moreover , a ll future premiums are
waived.
b) Comprehensive Accident protection : This benefi t provides
comprehensive cover in case of an accident. It comprises of :
Accidental Death Benefit
Accidents are always sudden and somet imes fatal . You can t lessen
the emot ional shock, but you can cert a in ly sof ten the f inancia l one.
Bajaj Allianz Accidental Death Benefit gives the loved ones something
to start af ter the permanent loss of income by paying an amount equal to
the Sum Assured. (Subject to a maximum of Rs 50,00,000/- under al l
polices with Bajaj Allianz taken together).
Accidental Permanent Total/ Partial Disability Benefit
Accidents are unpredictable, and so are the consequences. They may
lead to a disabil i ty part ial or total . This Benefi ts provides a f inancial
cushion against such misfortunes. You wil l get 50% of the Sum Assured
in case of part ial disabil i ty. (Subject to a maximum of Rs. 25,00,000/-
for part ial Rs. 50,00,000/- for total disabil i ty under al l policy with Bajaj
Allianz taken together).
Waiver of Premium Benefit
An accident may lead to permanent total disabil i ty, l imit ing ones to
earn. Bajaj All ianz Waiver of Premium Benefi t is a helping hand when
one needs i t most . I t waives off al l future premiums whi le keeping the
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val uabl e l if e i ns ur ance cover a li ve , t hus enabl ing you up t o your
commitments.
c) Critical Illness Benefit (CI): Some i l lnesses are cri t ical . They
not only al ter ones l i fes pat tern but also resul t in a f inancial drain.
Bajaj Allianz Critical Illness Benefit softness the impact on the family
by payi ng out the Critical Illness Benefit under the
plan immediately, while other policy benefits continue (excluding
Hospi tal Cash Benef i t) . We cover 11 cr it ical i l lnesses . The cus tomer
have the flexibility of choosing Critical Illness cover up to the basic Sum
Assured selected by you (Minimum Rs. 50,000).
d) Hospital Cash Benefit (HC): The worry of sett ing hospi tal bi ll s
( room charge) adds to the t rauma of hospit al iza tion . Bajaj All ianz
Hospital Cash Benefi t reduces this f inancial burden and helps recovery
with peace of mind.
Flexibility in CoverageIn Bajaj Allianz, they believe in the offering and not just products.
They realize that the customers are unique and their needs for insurance
vary with t ime. They therefore of fer the customer the f lex ib i li ty of
i nc lu si on o f c ov er ag e o r e xc lu si on o f c ov er ag e a t e ac h p ol ic y
ann iver sa ry , s ub ject t o condi ti ons r el at ing t o s uch i nc lusi ons and
exclus ion. Comprehensive Accident Protect ion can be included and
excluded at each pol icy anniversary. Family Income Benef i t, Cr it ical
I l lness Benefi t and Hospital cash Benefi t can be taken at inception only.
C I & H C c an b e r ed uc ed o r e xc lu de d s ub se qu en tl y a t a ny p ol ic y
anniversary. Once reduced or excluded, they be increased or included
subsequently.
Increase in Risk Coverage :
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Every added responsibil i ty in a persons cal ls for increase in his/her
r i sk cover . Bajaj Al lianz provide the cus tomer the opt ion to increase
coverage up to 50% of the basic Sum Assured on each of the following :
Happy moments on their life :
Your birth of your first child
The birth of the second child
This addit ional coverage is not subject to underwrit ing. The opt ion
should be exercised within 90 days of the occurrence of the said event.
SAVE CARE ECONOMY
As the breadwinner of the family yo u shoulder several
responsibi li ti es. Your spouse s welfare, your childrens education ,
buyi ng a house or a car you have a lot to think about, everyday. We, at
Bajaj All ianz, believe that the securi ty and growth of your hard earned
money should not add to these.
Which is why they have created the Bajaj All ianz Save Care Economy-
Single Premium the 10-year Single Premium vers ion of our popular
Save Care Economy. I t i s an idea l p lan for a one- time lump sum
investment that provides for saving with high risk-cover.
What does Bajaj Allianz Save Care Economy SP offer
you?
The Bajaj Al l ianz Save Care Economy SP, i s a Single Premium
investment plan for 10 years that also part icipates in the profi ts of the
company. The highlights of this plan are:
Minimum Guaranteed Return up to 3 .54%(depending on age a t
entry).
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The Minimum Guaranteed Amount (Sum Assured) would grow
further by way of compounded annual bonuses.
A high risk-cover of up to 142% (depending on age at entry) of the
sum invested from the beginning of the policy term as a f inancial
safety net to provide for unpredictable adversities.
Eligible for Tax Benefi ts under Section 88 and Section 10 (10 D)
of the Income Tax Act.
A t ma tu ri ty yo u w ill r ec ei ve t he S um A ss ur ed (M in imu m
Guaranteed Amount) along with the accrued bonuses.
Death Benefit :
In case of death dur ing the term of the plan, the nominee wi ll be
paid the Sum Assured (Minimu