nitish arora banking3
TRANSCRIPT
-
8/8/2019 nitish arora banking3
1/20
LOVELY PROFESSIONAL UNIVERSITY
DEPARTMENT OF MANAGEMENT
ASSIGNMENT
OF
BANKING AND INSURANCE
AND
SUBMITTED TO:
SUBMITTED BY
MISS.RAZIA SAHDEV
NITISH ARORA
(LECTURER IN L.H..S.B)
SECTION Q1809
ROLL NO -21
BBA(HONS)-5TH SEM
1
-
8/8/2019 nitish arora banking3
2/20
United India Insurance Company Limited
Introduction :
United India Insurance company is a leading General Insurance Company of India. The
company has more than three decades of experience in Non-life Insurance business. It was
formed by the merger of 22 companies, consequent to nationalisation of General Insurance.
Its Head Quarters is at Chennai, India. United India Insurance Company Limited wasincorporated as a Company on 18 February 1938. General Insurance Business in India was
nationalized in 1972. 12 Indian Insurance Companies, 4 Cooperative Insurance Societies and
Indian operations of 5 Foreign Insurers, besides General Insurance operations of southern
region of Life Insurance Corporation of India were merged with United India Insurance
Company Limited. After nationalization United India has grown by leaps and bounds and has
18300 work forces spread across 1340 offices providing insurance cover to more than 1 Crore
policy holders. The Company has variety of insurance products to provide insurance cover
from bullock carts to satellites.
United India has been in the forefront of designing and implementing complex covers to largecustomers, as in cases of ONGC Ltd , GMR- Hyderabad International Airport Ltd, Mumbai
International Airport Ltd Tirumala- Devasthanam etc. It has been also the pioneer in taking
Insurance to rural masses with large level implementation of Universal Health Insurance
Programme of Government of India & Vijaya Raji Janani Kalyan Yojana ( covering 45 lakhs
women in the state of Madhya Pradesh) , Tsunami Jan Bima Yojana (in 4 states covering 4.59
lakhs of families) , National Livestock Insurance and many such schemes. It has also made
our presence in more than 200 tier II & II towns and villages through its innovative Micro
Offices.
Products and services
Personal Services
Householder
Personal Accident
Mediclaim
Unimedicare
Commercial Services
Fire Insurance Marine Insurance
2
-
8/8/2019 nitish arora banking3
3/20
Motor Insurance
Industrial Insurance
Liability Insurance
SWOT ANALYSIS ofUnited India Insurance company
Strengths:
Dedicated Employees.
Well Efficient Management.
Technology.
Diversification of funds.
Strong and popular brand name.
Adaptability to changes.
Weakness:
Lack of good services.
Lack of awareness about insurance among people.
Less coverage in Rural Areas.
Opportunities:
Fast growing economy.
Increasing per capita income in India.
Saving behavior.
High growth of ULIP industry.
Threats:
Arrival of new entrants in the insurance industry.
Cut throat competition within the industry
Benefits offers by life insurance policies:
a) Death Benefit:
An amount equal to the Sum Assured under the basic plan along with Reversionary Bonuses,
and Final Addition Bonus, if any, will be payable.
b) Survival Benefits:
Survival benefits will be payable as given below:
% Of SA under the Basic plan
Survival to end of15-yearplan
20-yearplan
3
-
8/8/2019 nitish arora banking3
4/20
5 yrs 20% 20%
10 yrs 20% 20%
15 yrs - 20%
c) Maturity Benefit:
For policy term of 15 years: 60% of the Sum Assured under the basic plan along with
vested Reversionary Bonuses and Final Additional Bonus, if any, will be payable.
For policy term of 20 years: 40% of the Sum Assured under the basic plan along with
vested Reversionary Bonuses and Final Additional Bonus, if any, will be payable.
Optional Benefits:
a) Critical Illness Benefit Rider :
An amount equal to the Critical Illness Rider Sum Assured will be payable in case ofdiagnosis of defined categories of Critical Illness subject to certain terms and conditions,
provided the Critical Illness Benefit cover is opted for and is in force. The maximum cover
for this rider will be Rs.5 lakh under all policies of the Life Assured with the united insurance
taken together including the new proposal under consideration. The Critical Illness Rider
Sum Assured shall also not exceed the Sum Assured under the Basic Plan.
b) Accident Benefit Rider :
Accident Benefit as optional rider will be available under the plan for an amount equal to theAccident Benefit Rider Sum Assured subject to the maximum of Rs.50 lakh overall limit
considering the Accident Benefit Sum Assured in respect of all existing policies on the life of
the Life Assured under individual and group policies including the policies taken from United
life Insurance of India and other Insurance companies and the Accident Benefit Rider Sum
Assured under new proposal into consideration.
c) Congenital Disability Benefit Rider: An Amount equal to 50% of the Congenital
Disability Benefit Rider Sum Assured will be payable if the Life Assured gives birth to a
child with specified congenital disabilities. This benefit is payable for a maximum of 2 such
congenitally disabled children.
Rs.5 lakh is the maximum limit taking all Congenital Disability Benefit Riders under all
policies of the life assured including the new proposal into consideration.
Special Features:
i. Encashment of survival benefits as and when needed:
A policyholder can take the survival benefits on or after the due dates, but before the date of
4
-
8/8/2019 nitish arora banking3
5/20
maturity. In case of deferment of a due survival benefit, the Corporation will pay increased
survival benefit and the increment will be at such rate as decided by the Corporation from
time to time compounding yearly for complete number of months, a fraction of a month being
ignored. This option shall be required to be exercised six months before the due date of the
Survival Benefit. To start with, the rate of increment will be 4% p.a. compounding yearly for
complete number of months, ignoring fraction of a month.
ii. Flexibility to pay premiums in advance:
A policyholder will have the flexibility to pay the next yearly premium in advance. The
policyholder will be eligible for a premium rebate at such rate as may be decided by the
Corporation from time to time. The premium mentioned above will also include premiums
for Critical Illness Rider, Congenital Disability Benefit Rider and Accident Benefit Rider, ifopted for. She will be eligible for a premium rebate of 5% p.a. for complete number of
months on the portion of premium paid.
iii. Option to receive maturity benefits in the form of an annuity:
The policyholder will have the option to receive the maturity proceeds in the form of an
annuity. The immediate annuity rates prevalent at the time of maturity will be applicable.
iv. Auto cover :
Provided at least two years premiums have been paid under a policy, full death cover will be
admissible for a period of three years from the date of first unpaid premium. If death of Life
Assured occurs during the Auto Cover period, then death benefit after deducting unpaid
premiums, with interest will be payable along with the vested bonuses and Final Additional
Bonus, if any. However, claims under the Critical Illness Rider, Congenital Disability Benefit
Rider and Accident benefit will not be admissible during Auto Cover period. Further,
(a) If Critical Illness Rider is not opted for:
If any survival benefit falls due during the above 3-year auto cover period the same will be
paid after deduction of unpaid premiums with interest thereon until the due date of the
survival benefit, provided it is more than the unpaid premiums with interest thereon. If the
survival benefit is insufficient to cover the arrears of premiums with interest thereon up to the
due date of such survival benefit, then the survival benefit will be payable only on payment
of such arrears of premiums with interest thereon, during the period of the aforesaid 3 years
or on revival of the policy thereafter.
5
-
8/8/2019 nitish arora banking3
6/20
(b) If Critical Illness Rider is opted for:
If any survival benefit falls due during the above 3-year auto cover period the same will be
paid only on revival of the policy.
Loans:
Loan facility will be available under this plan after the policy acquires paid up value. The rate
of interest charged for this loan amount would be determined from time to time by united
India insurance company.
Eligibility Conditions and Restrictions Basic Plan
a) Minimum Sum Assured : Rs.50,000/-
b) Maximum Sum Assured : Rs 25,00,000/-
c) Minimum age at entry : 18 years completed.
d) Maximum age at entry : 55 years nearest birthday
e) Maximum age at maturity : 70 years nearest birthday
f) Policy Term : 15 & 20 years
The Sum Assured shall be in multiples of Rs. 5,000.
Accident Benefit Rider:
a) Minimum Sum Assured : Rs. 50,000
b) Maximum Sum Assured: An amount equal to the Sum Assured under the Basic Plan
subject to the maximum of Rs.50 lakh overall limit considering the Accident Benefit Sum
Assured in respect of all existing policies on the life of the Life Assured under individual and
group policies including the policies taken from Life Insurance Corporation of India and
other Insurance companies and the Accident Benefit Rider Sum Assured under new proposal
into consideration.
The Sum Assured shall be in multiples of Rs. 5,000.
c) Minimum Entry Age : 18 years completed
d) Maximum Entry Age : 55 years nearest Birthday
e) Policy Term : 15 & 20 years
f) Maximum Maturity Age : 70 years nearest Birthday.
Critical Illness Rider:
a) Minimum Sum Assured : Rs. 50,000
b) Maximum Sum Assured: An amount equal to Critical Illness Rider Sum Assured subject
to the maximum of Rs.5 lakh overall limit taking all critical illness riders under all existing
6
-
8/8/2019 nitish arora banking3
7/20
policies of the life assured and the critical illness rider option under the new proposal into
consideration.
The Sum Assured shall be in multiples of Rs.10,000/-.
c) Minimum Entry Age : 18 years completed
d) Maximum Entry Age : 50 years nearest Birthday
e) Policy Term : Same as basic plan or till age 60 years nearest birthday whichever is earlier.
If PWB is opted for, then the term of the rider should be same as that of the term of the basic
plan.
f) Maximum Maturity Age : 60 years nearest Birthday. If PWB (under the Critical Illness
Rider) is opted for, then the following conditions apply:
(i) The term of all the riders opted for must be same as that of the basic plan.(ii) The Sum Assured of all the riders opted for must be same as that of the basic plan.
Congenital Disability Benefit Rider:
a) Minimum Sum Assured : Rs.50,000
b) Maximum Sum Assured : Rs 500,000
Rs.5 lakh is the maximum limit taking all Congenital Disability Benefit Rider under all
policies of the life assured including the new proposal into consideration.
c) Minimum Entry Age : 18 years completedd) Maximum Entry Age : 35 years nearest birthday
e) Maximum Benefit Ceasing Age : 40 years nearest birthday
f) Terms allowed : Same as the basic plan or till age 40 years (nearest birthday, whichever is
earlier.)
PRODUCTS:
Endowment Policy
Endowment with Profits - Plan no.14
Limited Payment Endowment with Profits - Plan no.48
New jeevan suraksha Policy - Plan no.91
Jeevan Mitra Triple Cover - Plan no.133
Group Insurance Policy
Group Insurance Scheme in lieu of EDLI
7
-
8/8/2019 nitish arora banking3
8/20
Group (Term) Insurance Scheme
Group Savings Linked Insurance Scheme
Group Superannuation Scheme
Group Mortgage Redemption Assurance Scheme
Shiksha Sahayog Yojana
Joint Life Policy
Jeevan Saathi - Plan no.89
Money Back Policy
Money Back with Profit - Plan no.75
New Money Back - Plan no.93
Bachat- Plan no.175
Pension Plans or Annuities
New avdhoot investment - Plan no.148
New Jeevan Suraksha Plan no. 147
Jeevan Akshay II Plan no. 163
Jeevan Nidhi Plan no. 169Jeevan Akshay V Plan no. 183
Special Plans
Term Assurance - Plan no.43
Mortgage Redemption - Plan no.52
Jeevan Aadhar - Plan no.114
Market Plus - Plan No 181
Jeevan Vishwas Plan No. 136
Jeevan Pramukh Plan No. 167
Money Plus-Plan No 180
Term Policy
Convertible Term Assurance - Plan no.58
Term Assurance
Amulya Jeevan-Plan No-177
Whole Life Policy
8
-
8/8/2019 nitish arora banking3
9/20
Whole Life with Profits - Plan no.2
Limited Payment Whole Life with Profits - Plan no.5
Single Premium Whole Life - Plan no.8
Jeevan Tarang- Plan no.178
FOR CHILDREN: -
1. bachapan: - This is a money back plan with guaranteed addition and payment of
premiums ceases on the policy anniversary immediately after the child attains 18 years of
age.
This policy is suitable for parents who wants to secure money for their childrens higher
education. It can be availed by parents having children aged between 0 to 10 years.
Strength: - In the ever demanding and competitive environment, it is essential to provide the
best education to your children which can be very expensive. Fortunately, the sooner you
start investing for their education, the more flexibility you'll have and will enable your
children to achieve proficiency in their career endeavours. This would make the children
proud of their parent's effort and call them The Best Parents.
LIC now introduces a new plan to take care of these needs A Bachpan Plan with payment
of premium ceasing on policy anniversary immediately after the child attains 18 years of age.
The plan, besides offering risk cover, also offers payment of Sum Assured in instalments at
age 18,20,22,24 and Guaranteed and Loyalty additions, if any, at the age 26.
Weakness The close relations such as grandparents, elder brothers or sisters, uncles both
from paternal or maternal side can gift 'single premium policy' for love and affection under
this plan. in such cases also, the policies will be proposed by father, mother or legal
guardian.
Source - Life Insurance India, LIC India.
If life insurance buying is approached in the proper manner it can be very beneficial to
yourself and your family. You need to take the time to give some thought to a subject that can
be very unpleasant. I guess that is why most people don't think about it, or at best think about
it only after they have had a brush with death, or when a life insurance professional brings up
the subject. Sometimes these people wait until it is too late to do something about such a
critical matter.
9
-
8/8/2019 nitish arora banking3
10/20
They find themselves uninsurable when they discover they have some critical illness. People
should give life insurance buying serious thought at least once per year as ones situation may
change and you find that your need for life insurance may change as a result.
Threat: - The policies and benefits given or provided by other insurance plan companies.
2. Children deferred: - His Plan of assurance is designed to enable a parent or a legal
guardian or any near relative of the child to provide for the child by payment of a very low
rate of premium. This is an endowment assurance policy, risk under which will commence at
21 years of age. The policy envisages two stages, one covering the period from the date of
commencement of the policy to the deferred date called the deferment period and the other
covering the period from the deferred date to the date on which the policy emerges as claim
by the death of the child or its survival to a stipulated date. A combined policy will be issued
covering both the aforesaid periods. Ordinarily, policies under this scheme will be issued on
the lives of children, both male and female who have not completed 18 years. No medical
examination would be required where the deferment period is 10 years or more but where it is
less than 10 years, medical examination of the child would be required.
Strength: - Maturity Benefits:
Basic Sum Assured + Vested Bonus + Final Additional Bonus
Death Benefits:
Basic Sum Assured + Vested Bonus + Final Additional Bonus, if death occurs after
date of commencement of risk.
Total Premiums paid excluding the premiums for premium waiver benefit will be
refund, if death occurs before date of commencement of risk.
Mode Benefit:
The following table shows the rebate available on the mode of premium payment.
Mode Rebate
Yearly 1.5 % of tabular premium
Half - Yearly Nil
10
-
8/8/2019 nitish arora banking3
11/20
Quarterly Nil
Sum Assured Benefit:
The following table shows the rebate available on the sum assured.
Sum Assured Rebate
30,000-49,999 Rs. 0.5 Per Thousand
50,000 and Above Rs. 1.0 Per Thousand
Opportunities: -
Best suited for parents/legal guardians with children.
The policy is an Endowment Assurance plan.
The risk commences only after the child attains a certain age
No medical exam is required if the deferment period is 10 years or more.
FOR EMPLOYED PERSON:-
1. Endowment with profit - Life insurance policy that pays the assured sum plus
bonuses accumulated over the term of the policy. The insured pays a higher-than-normal
premium, which is invested in the insurance company and draws annual bonuses that are
added to the assured sum and paid on maturity or upon the death of the insured. Also
called endowment life policy with profits, or endowment policy with profits.-
Disability Benefit:
In case policy holder becomes totally and permanently disabled due to an accident before
reaching the age of 70 and the policy is in full force, he will not be required to pay further
premiums, (the Disability Benefit is available in respect of the first Rs.20,000 sum
assured on any one life) and the policy will continue to be in force.
Accident Benefit:
11
-
8/8/2019 nitish arora banking3
12/20
By paying a small extra premium of Rs.1 per Rs.1000/- sum assured per year he or his
family are entitled to the following benefits on death or permanent disability caused by
accident. Even students above the age of 18 years can avail of this benefit.
Premium Stoppage:
If payment of premiums ceases after at least THREE years' premiums have been paid , a
free paid-up policy for a reduced sum assured will be automatically secured provided the
reduced sum assured, exclusive of any attached bonus, is not less than Rs. 250/-. The
reduced sum assured will become payable on the event as stipulated in the policy.
Bonus:
Every year the Life Insurance Corporation distributes its surplus among policyholder to
with profits polices in the form of bonuses. Substantial bonuses have been declared in
the past after each valuation of policy liabilities.
Death Benefits
Payment of full sum assured + Vested Bonus
Survival Benefits
Payment of full Sum Assured + Vested Bonus + Final Additional bonus, if any.
Other Conditions
Minimum age at entry : 12 years
Maximum age at entry : 65 years
Maximum age at maturity : 75 years
Minimum Sum Assured : Rs.00,000
Maximum Sum Assured : No Limit
Policy Term : 5 to 55 Years
Mode of Payment : Monthly, Quarterly, Half Yearly, Yearly, Salary Saving Scheme
weakness: -
12
-
8/8/2019 nitish arora banking3
13/20
Opportunity: -
Being an endowment assurance policy, this plan is apt for people of of all ages
and social groups who wish to protect their families from a financial setback that
may occur owing to their demise.
The amount assured if not paid by reason of his death earlier will payable at the
end of the endowment term where it can be invested in an annuity provision for
the rest of the policyholder's life or in any other way he may think most suitable at
that time.
2. Jeewan mitra LIC Jeevan Mitra is a Tripple Cover life insurance policy that provides
financial protection at a greater level against the death of policy holder thro' out the entire
term of the policy. On survival till the end of the policy term, the maturity amount is paid.
This LIC Jeevan Mitra policy can be applied only for the people living at the class I and class
II standard and sub standard. It is not allowed for those engaged under hazardous
occupations. Those individuals who are engaged in dangerous pursuits are will be rated
against the revised occupational extra rates.
Strength: - Besides the usual benefits offered by any endowment insurance plan, this policy
provides for an additional insurance cover equal to the sum assured in the event of a policy
holders death during the term of the policy. In other words, the death claim in the case of this
policy is twice the basic sum assured.
The survival claim, on the other hand, is the basic sum assured, plus the accrued bonuses.
Bonus is, similarly, calculated only on the basic sum assured at rates applicable to
endowment policies.
For instance, if a person insured for Rs.10,000 under this policy were to die before its
maturity, the death claim payable would be Rs.20,000 plus the accrued bonus on Rs.10,000,
the basic sum assured. If the policy holder survives the full term of the policy, the pament on
maturity would be Rs.10,000 plus the accumulated bonus.
Opportunities: - Being an endowment assurance policy, this plan is apt for people of of all
ages and social groups who wish to protect their families from a financial setback that may
occur owing to their demise. The amount assured if not paid by reason of his death earlier
will payable at the end of the endowment term where it can be invested in an annuity
13
-
8/8/2019 nitish arora banking3
14/20
provision for the rest of the policyholders life or in any other way he may think most suitable
at that time.
FOR SENIOR CITIZEN: -
1. Pension plan -Pension Plans are Individual Plans that gaze into your future and foresee
financial stability during your old age. These policies are most suited for senior citizens and
those planning a secure future, so that you never give up on the best things in life.
Citizen first-VI
Jeevan nidhi
New jeevan dhara-I
14
-
8/8/2019 nitish arora banking3
15/20
Introduction: -
Bajaj 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 insurancecompanies. 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
Children plans: -
Bajaj allianz life insurance Plus II
A few decades back, it was all about focusing on education and ensuring that the children get
the best opportunities for their education. Now it goes beyond that. Its more about having a
multi-faceted personality, being an all-rounder and excelling in various fields.
This desire that every parent has for their child. Therefore, our child plan is designed
specifically to ensure that your child not only gets the best of education but also can explore
and develop his/her hidden talent.
Bajaj Alianz Shiksha plus II is a 360 degree child plan that provides for over all development
of your child in all the circumstances.
Strength: -
Maturity Benefit:
15
-
8/8/2019 nitish arora banking3
16/20
University Education Pool: On maturity, you will be eligible for an amount equal to
prevailing Fund
Value where the Fund Value will be calculated as:
Fund Value = (Accumulated Units * prevailing NAV)
Death Benefit:
In case of Death of the Life Insured before maturity of Policy, the following benefits shall
apply:
Immediate Family Support: 100% of applicable Sum Assured is paid immediately to the
nominee on the
Death of Life Insured.
University Education Support: All future Premiums are funded by the Company on the due
dates to boost
The University Education Pool. These Premiums will be directly credited to the policy.
School Fee Support: 10% of Sum Assured will be paid immediately along with Immediate
Family
Support. From the next policy anniversary following the date of death, 10% of sum assured
will be paid on
Each policy anniversary till the policy term subject to the maximum payout under School Fee
Support not
Exceeding 100% of the sum assured.
University Education Pool: On the original Policy Maturity date, the prevailing Fund Value
is paid out for
Higher education.
Weakness: -A Grace Period of Thirty (30) days (15 Days in case of monthly mode) from the
due date shall be allowed for payment of contractual Premium without any interest or
penalty. On expiry of Grace Period, the Company shall serve a notice within a period of 15
days to the policyholder to exercise the below mentioned options within a period of 30 days
from the receipt of such notice.
Option 1: Revival of policy
Option 2: Complete withdrawal from the policy without any risk cover
16
-
8/8/2019 nitish arora banking3
17/20
The policyholder can exercise Option 1 to revive the Policy if,
a. The Policyholder gives the Company a written request to revive the Policy; and
b. The Policyholder has produced evidence of insurability acceptable to the Company as per
the Companys underwriting practices; and
c. The Policyholder pays the Company all overdue contractual Premiums.
On revival, the amount of Premium paid on revival, less any Premium Allocation Charge
attributable to the Premium paid on revival, shall be allocated in the Funds, as specified by
the Policyholder.
Opportunities: -Now days parents are very much conscious about there children because
miss happening are taking place more than previous days. So children plans are more used ortaken by the parents.
Threat: - There were less children plans then other insurance companies.
Strength: -
Tax Benefits: This plan may entitle you to certain tax benefits on your premiums as well as
on your benefits subject to Tax Laws prevailing from time to time. In the current scenario -
Deduction U/s 80C of the Income Tax Act 1961 on your premiums, up to Rs.
100,000/-.
Exemption U/s 10(10D) of the Income Tax Act 1961 on your Maturity and Death
Benefits.
Maturity Benefit: Fixed Percentage of Single Premium as mentioned in Maturity Value
Table
Surrender Value: This Policy will acquire a surrender value from the second Policy Year
onwards.
The Surrender Value in this Policy will be higher of
(a) Guaranteed Surrender Value which is 80% of Single Premium and is guaranteed or
(b) Special Surrender Value determined by company from time to time. The Special
Surrender Value benefit as shown in product brochure is only indicative and is subject to
change as per the companys actual experience.
Death Benefit:
Age 91 Days to upto 7 Years Return of Premium along with interest @3.5% p.a.
17
-
8/8/2019 nitish arora banking3
18/20
compounded annually.
Age 7 Years and onwards Prevailing Sum assured
o During Policy Year 1 Sum Assured 5 times Single Premium
o During Policy Year 2 and onwards 2 times Single Premium
Eligibility Criteria
Eligibility Criteria
Minimum/Maximum Entry Age of Life
Assured (Last Birthday)
91 Days to 55 Years
Minimum/Maximum Policy Term Fixed 10 Years
Maximum Maturity Age of Life Assured 65 years
Premium Payment Term Single Premium
Minimum Sum Assured Year 1: 5 Times Single Premium
Year 2 and onwards: 2 Times Single Premium
Minimum/Maximum Premium Minimum: Rs. 50,000/-
Maximum: Rs 10,00,000/-
Senior citizen: -
Life Partner plus Plan
This plan offers you triple benefits. It gives you maturity benefits at the age of 75, provides
people a life coverage insurance and fulfill the financial needs of peoples family members,
in case of people untimely death and offers people money back feature as well, where it will
pay a part of the sum assured at regular intervals to take care of their periodic foreseen needs.
Strength: -
Death Benefit
in case the life insured dies it will immediately pay the sum assured equal to 10 times
18
-
8/8/2019 nitish arora banking3
19/20
of the annual premium.
The policy shall continue to be in existence as it is and all the future premiums will be
funded by the company.
The loyalty additions will also be credited while the policy is on a premium funding
mode.
On actual maturity date of the policy, the maturity value will be paid to the nominee.
Living Benefit
The plan offers Loyalty additions @ 10% of the annual premium and shall be credited
to your account on each of the last 5 policy anniversaries provided the policy is in
force and all due premiums have been paid.
The loyalty additions as and when credited enhance the account value and the interest
is credited on the enhanced account value, thereby making is a double benefit.
Maturity Benefit
The plan matures as per the policy term chosen. The account value at the time of
maturity is payable to the policyholder and the contract ends. Please note that the
account value at maturity will at least be a value considering that the interest credits
have happened at the rate of 3.5% throughout the policy term. This value will also
reflect in the benefit illustration under the guaranteed benefits column.
Tax Benefits
This plan entitles people to certain tax benefits on their premiums as well as on their maturity
value.
Growth perspective : -
According CEO & MD of Bajaj life insurance. It has grown by 54% as of December
2008 on the APE basis. This growth, however, is likely to taper off by the year end
because of the overall conditions. In the next fiscal, It is hoping to outpace the
industry, growth-wise. It has expanded rapidly last year. Bajaj life insurance has 575
offices in the country and an agent network of 72,000.
It has one of the best agency models, with high-quality, better trained agents. Its
market share stands at 6.5% in the private life pie. The industry is expected to grow at
10-15% and It will grow at 2-3 times of the industry growth rate next fiscal. Its paid up
capital is Rs 1,782 crore as of now. It definitely need capital to fund our growth and it
will definitely happen.
The exact modalities will be decided, but we require capital to the tune of Rs 700-800
crore. In fact, the company saw an infusion of Rs 350-crore capital to fund our
expansion plans in November 2008. The upcoming capital infusion is likely to happen
19
-
8/8/2019 nitish arora banking3
20/20
in 3-4 tranches.
Suggestions: -
As the need of the people is changing so is changing the investment habits of the people and
this has brought in a spate of new products and schemes where people can invest.
Companies should also innovate to come up with better products that would suit the Indian
population and should also try to market and sell their products through new channels of
distribution that can be effective in selling their products to the masses.
20