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ACKNOWLEDGEMENT
It gives me immense pleasure, having done a project on an interesting
and knowledgeable topic like Competitive Analysis at Aegon
Religare.
This project has not only widened my horizon as far as academics are
concerned but also helped me to enlarge my knowledge bank.
Marketing Management and Human resources are not topics, which
could be handled with certain amount of casualty. It requires a deep
study and hard work, which is key to success. There are many people
associated with this project without which this project would not have
been possible.
I thank my Institute who has given me an opportunity to show my skills. I
also thank all my nearer and dearer ones without whose support this
project would not been possible.
I would like to thankMr. Bhargav Thakkar , Business Manager and my
company guide, who allow me to do this project in Aegon Religare Life
Insurance successfully.
I am deeply grateful to Mr. Ashutosh Chavada, my faculty guide for his
ever willing help and guidance to complete my project successfully.
I would like to thank to Mr.Hardev Singh Deora ,Business Head for his
Nobel inspiration, keen interest, constant supervision and ever willing
help throughout the course of this study.
Above all I would like to thank all contacted persons of firm who took
out valuable time to answer my queries and gave me full information
about insurance industry and Aegon Religare life insurance.
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I extend my sincere gratitude towards my parents, who have always
encouraged me and gave suggestions as how to work on project. They
always stand by me in solving all my queries. Their support has alwaysmotivated me.
Above all it gives me immense pleasure to thank authors of various
books who indirectly helped me in gaining knowledge about insurance
industry.
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PREFACE
This is the 21st century. Today every person wants to be a master in the field they
are in. The practical training is a life of management student. In modern world the
importance of management is increasing day by day. Industrial training provide a
student sufficient knowledge to develop an education to connect theory and
practical.
Indian insurance industry is emerging rapidly after year 2000. To survive in
this highly competitive scenario, managers are being pressured to improve
quality, recruit quality and skilled people and eliminate inefficiency. The
collective efforts of the employer, managers and other relative people
assume relevance in this context. And this is where marketing
management and human resources play important role.
To get knowledge of above question and to fulfill the requirements for
my project on Competitive Analysis at Aegon Religare Life Insurance,
I have worked in Aegon Religare and searched some internet sites.
I am student of 3rd semester MBA. Being a part of our course, I have done
Industrial Training at AEGON RELIGARE LIFE INSURANCE CO. LTD. from
SIKKIM-MANIPAL UNIVERSITY.
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On the basis of my study, I have included all topics as the important
aspect of Competitive Analysis at Aegon Religare Life Insurance.
In this project I have tried to give attention to all the topics and study
them in depth. But I would still like to receive all sorts feedback to
enhance my knowledge on the topics as far as this industry is concern.
It gives me great pleasure to present this project report.
TABLE OF CONTENTS.
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Acknowledgement 1
Preface 3
Table of Content 5
SECTION:A INTRODUCTION 8
A.1 ABOUT COMPETITOR ANALYSIS 9
SECTION:B INDUSTRY PROFILE 12
B.1 HISTORY OF INSURANCE 12
B.2 GLOBAL INSURANCE INDUSTRY 21
B.3 FUNCTIONING OF INSURANCE INDUSTRY 25
B.4 INSURANCE AND ECONOMY 38
SECTION:C COMPANY PROFILE 43
C.1 ABOUT AEGON 44
C.2 ABOUT RELIGARE 49
C.3 ABOUT AEGON RELIGARE 52
1 VALUES & VISION 54
2 LEADERSHIP TEAM 55
3 PRODUCT 57
4 PRESS RELEASES 89
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5 PRESS COVERAGE 93
6 NAV 96
7 TVC 97
SECTION: D CUSTOMER SERVING 99
SECTION: E FINDINGS 102
SECTION: F SWOT ANALYSIS 104
SECTION: G MARKET SHARE
SECTION: H OBJECTIVE OF THE STUDY
SECTION: I CONCLUSION 109
EXPERIENCE 110
SUMMARY
RECOMMENDATION
BIBLIOGRAPHY
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Section A
INTRODUCTION.
A.1 ABOUT COMPETITOR ANALYSIS
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Competitor Analysis is an important part of the strategic planning
process. This revision note outlines the main role of, and steps in,
competitor analysis
Why bother to analyze competitors?
Some businesses think it is best to get on with their own plans and
ignore the competition. Others become obsessed with tracking the
actions of competitors (often using underhand or illegal methods).
Many businesses are happy simply to track the competition, copying
their moves and reacting to changes.
Competitor analysis has several important roles in strategic planning:
To help management understand their competitive
advantages/disadvantages relative to competitors
To generate understanding of competitors past, present (and most
importantly) future strategies
To provide an informed basis to develop strategies to achieve
competitive advantage in the future
To help forecast the returns that may be made from future
investments (e.g. how will competitors respond to a new product or
pricing strategy?
Questions to ask
What questions should be asked when undertaking competitor
analysis? The following is a useful list to bear in mind:
Who are our competitors? (see the section on identifying competitors
further below)
What threats do they pose?
What is the profile of our competitors?
What are the objectives of our competitors?
What strategies are our competitors pursuing and how successful are
these strategies?
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What are the strengths and weaknesses of our competitors?
How are our competitors likely to respond to any changes to the way
we do business?
Sources of information for competitor analysis
Davidson (1997) describes how the sources of competitor information
can be neatly grouped into three categories:
Recorded data: this is easily available in published form either
internally or externally. Good examples include competitor annual
reports and product brochures;
Observable data: this has to be actively sought and often assembled
from several sources. A good example is competitor pricing;
Opportunistic data: to get hold of this kind of data requires a lot of
planning and organization. Much of it is anecdotal, coming from
discussions with suppliers, customers and, perhaps, previous
management of competitors.
The table below lists possible sources of competitor data using
Davidsons categorization:
Recorded Data Observable Data Opportunistic Data
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Annual report &
accountsPricing / price lists Meetings with suppliers
Press releasesAdvertising
campaignsTrade shows
Newspaper articles Promotions Sales force meetings
Analysts reports Tenders Seminars / conferences
Regulatory reports Patent applications Recruiting ex-employees
Government reportsDiscussion with shared
distributors
Presentations /
speeches
Social contacts with
competitors
In his excellent book [Even More Offensive Marketing], Davidson likens
the process of gathering competitive data to a jigsaw puzzle. Each
individual piece of data does not have much value. The important skill
is to collect as many of the pieces as possible and to assemble them
into an overall picture of the competitor. This enables you to identify
any missing pieces and to take the necessary steps to collect them.
What businesses probably already know their competitors
Overall sales and profits
Sales and profits by market
Sales by main brand
Cost structure
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Market shares (revenues and volumes)
Organization structure
Distribution system
Identity / profile of senior management
Advertising strategy and spending
Customer / consumer profile & attitudes
Customer retention levels
What businesses would really like to know about competitors
Sales and profits by product
Relative costs
Customer satisfaction and service levels
Customer retention levels
Distribution costs
New product strategies
Size and quality of customer databases
Advertising effectiveness
Future investment strategy
Contractual terms with key suppliers
Terms of strategic partnerships
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SECTION B
INDUSTRY PROFILE
B.1 About the Insurance Sector in India
y Insurance sector is an opportunity for India.
y This business is growing at the rate of 18-22 per cent annually.
y Presently it covers market of RS.450 billion.
y Together with banking sector it contributes about 7% to GDP.
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y Gross premium collection is about 2% of GDP.
y Still 80% of Indian population is without life insurance.
y This is an indicator that growth potential for the insurance sector
is immense.
y Insurance sector contribute a lot in economic development.
y It provides long term fund for infrastructure development.
y It is estimated that over the next ten years India would require
investments of the order of one trillion US dollar.
y The Insurance sector, to some extent, can enable investments in
infrastructure development to sustain economic growth of the
country.
There are two legislations that govern the sector-
The Insurance Act- 1938 The IRDA Act- 1999.
Historical Perspective
y In 1818 it was conceived as a means to provide for English
Widows.
y The Bombay Mutual Life Insurance Society started its business in
1870.
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y It was the first company to charge same premium for both Indian
and non-Indian lives.
y The Oriental Assurance Company was established in 1880.
y Till the end of nineteenth century insurance business was almost
entirely in the hands of overseas companies.
y Insurance regulation formally began in India with the passing of
the LifeInsurance Companies Act of 1912 and the provident fund
Act of 1912.
y Several frauds during 20's and 30's sullied insurance business in
India.
y By 1938 there were 176 insurance companies.
y The first comprehensive legislation was introduced with the
Insurance Act of 1938 that provided strict State Control over
insurance business.
y The insurance business grew at a faster pace after
independence.
y The Government of India in 1956, brought together over 240
private life insurers and provident societies under one
nationalized monopoly corporation and Life Insurance
Corporation (LIC) was born.
Nationalization was justified on the grounds that it would create much
needed funds for rapid industrialization.
Important milestones in the life insurance business in India:
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Insurance Sector Reforms
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In 1993, Malhotra Committee- headed by former Finance Secretary
and RBI Governor R.N. Malhotra- was formed to evaluate the Indian
insurance industry and recommend its future direction. The Malhotra
committee was aimed at creating a more efficient and competitive
financial system suitable for the requirements of the economy keeping
in mind the structural changes currently underway and recognising
that insurance is an important part of the overall financial system where
it was necessary to address the need for similar reforms. In 1994, the
committee submitted the report and some of the key
recommendations included:
i) Structure: Government stake in the insurance Companies to be
brought down to 50%. Government should take over the holdings of
GIC and its subsidiaries so that these subsidiaries can act as
independent corporations. All the insurance companies should be
given greater freedom to operate.
ii) Competition: Private Companies with a minimum paid up capital of
Rs.1bn should be allowed to enter the sector. No Company should deal
in both Life and General Insurance through a single entity. Foreigncompanies may be allowed to enter the industry in collaboration with
the domestic companies. Postal Life Insurance should be allowed to
operate in the rural market. Only one State Level Life Insurance
Company should be allowed to operate in each state.
iii) Regulatory Body: The Insurance Act should be changed. An
Insurance Regulatory body should be set up. Controller of Insurance- a
part of the Finance Ministry- should be made independent
iv) Investments: Mandatory Investments of LIC Life Fund in government
securities to be reduced from 75% to 50%. GIC and its subsidiaries are
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not to hold more than 5% in any company (there current holdings to be
brought down to this level over a period of time)
v) Customer Service: LIC should pay interest on delays in payments
beyond 30 days. Insurance companies must be encouraged to set up
unit linked pension plans. Computerization of operations and updating
of technology to be carried out in the insurance industry.
The committee felt the need to provide greater autonomy to insurance
companies in order to improve their performance and enable them to
act as independent companies with economic motives. For this
purpose, it had proposed setting up an independent regulatory body-
The Insurance Regulatory and Development Authority.
Reforms in the Insurance sector were initiated with the passage of the
IRDA Bill in Parliament in December 1999. The IRDA since its
incorporation as a statutory body in April 2000 has fastidiously stuck to
its schedule of framing regulations and registering the private sector
insurance companies. Since being set up as an independent statutory
body the IRDA has put in a framework of globally compatible
regulations. The other decision taken simultaneously to provide the
supporting systems to the insurance sector and in particular the life
insurance companies was the launch of the IRDA online service fo r
issue and renewal of licenses to agents. The approval of institutions for
imparting training to agents has also ensured that the insurance
companies would have a trained workforce of insurance agents in
place to sell their products.
Present Scenario
The Government of India liberalised the insurance sector in March 2000
with the passage of the Insurance Regulatory and Development
Authority (IRDA) Bill, lifting all entry restrictions for private players and
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allowing foreign players to enter the market with some limits on direct
foreign ownership. Under the current guidelines, there is a 26 percent
equity cap for foreign partners in an insurance company. There is a
proposal to increase this limit to 49 percent.
The opening up of the sector is likely to lead to greater spread and
deepening of insurance in India and this may also include restructuring
and revitalizing of the public sector companies. In the private sector 22
life insurance companies have been registered. A host of private
Insurance companies operating in life segments have started selling
their insurance policies since 2001. Table shows the current market
players in the life Insurance Industry (Source IRDA).
Sr. No. Name of the Company
1 Aegon Religare Life Insurance Company Limited
2 Bajaj Allianz Life Insurance Company Limited
3 Birla Sun Life Insurance Co. Ltd
4 HDFC Standard Life Insurance Co. Ltd
5 ICICI Prudential Life Insurance Co. Ltd
6 ING Vysya Life Insurance Company Ltd.
7 Life Insurance Corporation of India
8 Max New York Life Insurance Co. Ltd
9 Met Life India Insurance Company Ltd.
10 Kotak Mahindra Old Mutual Life Insurance Limited
11 SBI Life Insurance Co. Ltd
12 Tata AIG Life Insurance Company Limited
13 Reliance Life Insurance Company Limited.14 Aviva Life Insurance Company India Limited
15 Sahara India Life Insurance Co, Ltd.
16 Shriram Life Insurance Co, Ltd.
17 Bharti AXA Life Insurance Company Ltd.
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Innovative products, smart marketing and aggressive distribution. That's
the triple whammy combination that has enabled fledgling private
insurance companies to sign up Indian customers faster than anyone
ever expected. Indians, who have always seen life insurance as a tax
saving device, are now suddenly turning to the private sector and
snapping up the new innovative products on offer.
The growing popularity of the private insurers shows in other ways. They
are coining money in new niches that they have introduced. The state
owned companies still dominate segments like endowments and
money back policies. But in the annuity or pension products business,
the private insurers have already wrested over 33 percent of the
market. And in the popular unit-linked insurance schemes they have a
virtual monopoly, with over 90 percent of the customers.
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The private insurers also seem to be scoring big in other ways- they are
persuading people to take out bigger policies. For instance, the
average size of a life insurance policy before privatization was around
Rs 50,000. That has risen to about Rs 80,000. But a rejuvenated LIC is also
trying to fight back to persuade new customers.
B.2 GLOBAL INSURANCE INDUSTRY
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Globally, insurers increasingly are pressured by the demands of their
clients. The development of global insurance industry over the past few
years was influenced by booming stock markets which enabled
considerable capital gains to be made in non life business. Increase in
insurers equity capital increased underwriting capacity, while demand
did not develop at the same pace, resulting in decrease in insurance
policies prices. The stock market boom of the past few years led to
demand for unit linked insurance products.
The global insurance industry is growing at rapid pace. Most of the
markets are undergoing globalization. Lot of mergers and acquisition
are taking place in the insurance world. The rapidity in the industry,
technological improvement has resulted in pressures on a few
economic parameters. The world insurance industry is at peak of its
globalization process.
Global insurance market is increasing by an average of six percent
per year since 1990. Insurance companies have collected $2443.7
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billion premium world wide according to the global development of
premium volume in 144 countries in 2005. $1521. 3 has been generated
as life insurance premium and $922.7 as non life insurance premium.
The US accounted for 35% of global life and non life premium, Japan
had global share of 21%, and UK was having 10% of global share.
Influence on Indian insurance industry:
In this era of globalization, insurance companies face a dynamic
global environment. Dramatic changes are taking place owing to the
internationalization of activities, appearance of new risk, new types of
covers to match with new risk situations, and unconventional and
innovative ideas on customer services. Low growth rates in developed
markets, changing customers needs, and the uncertain economic
conditions in the developing world are exerting pressure on insurers
resources and testing their ability to survive. Now the existing insurers
are facing difficulties from non-traditional competitors those are
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entering the retail market with new approaches and through new
channels.
India has a rapidly growing middle class and this section can
afford to buy insurance products. This shows the attraction that the
Indian market holds for foreign insurers who have been putting pressure
on developing countries as well as on India to open up its market.
Life insurance penetration as a % of GDP
United kingdom 8.9%
Japan 8.3%
Korea 7.3%
United states 4.1%
Malaysia 3.6%
India 3.0%
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China 1.8%
Brazil 1.3%
Source: - www.indianinsuranceresearch.com
B.3 FUNCTIONING OF INSURANCE INDUSTRY
Insurers business model:
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Profit = earned premium + investment income - incurred loss -
underwriting expenses
Insurers make money in two ways: (1) through underwriting, the
processes by which insurers select the risks to insure and decide how
much in premiums to charge for accepting those risks and (2) by
investing the premiums they collect from insured.
The most difficult aspect of the insurance business is the underwriting of
policies. Using a wide assortment of data, insurers predict the likelihood
that a claim will be made against their policies and price products
accordingly. To this end, insurers use actuarial science to quantify the
risks they are willing to assume and the premium they will charge to
assume them. Data is analyzed to fairly accurately project the rate of
future claims based on a given risk. Actuarial science uses statistics and
probability to analyze the risks associated with the range of perils
covered, and these scientific principles are used to determine an
insurer's overall exposure. Upon termination of a given policy, the
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as soon as they are collected and continue to earn interest on them
until claims are paid out.
Naturally, the float method is difficult to carry out in an economical ly
depressed period. Bear markets do cause insurers to shift away from
investments and to toughen up their underwriting standards. So a poor
economy generally means high insurance premiums. This tendency to
swing between profitable and unprofitable periods over time is
commonly known as the "underwriting" or insurance cycle.
Finally, claims and loss handling is the materialized utility of insurance. In
managing the claims-handling function, insurers seek to balance the
elements of customer satisfaction, administrative handling expenses,
and claims overpayment leakages.
Investment management:
Investment operations are often considered incidental to the business
of insurance, and have traditionally viewed as secondary to
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underwriting. In the past risk management was the most important part
of business, whereas today the focus has shifted to fund management.
Investment income is a large component of insurance revenues, skilful
and careful management of funds. Insurance is a business of large
numbers and generates huge amount of funds over time. These funds
arise out of policyholder funds in the case of life insurance, and
technical and free reserves in the non-life segments. Time lag between
the procurement of premium and the payment of claim provides an
interval during which the funds can be deployed to generate income.
Insurance companies are among the largest institutional investors in the
world. Assets managed by insurance companies are estimated to
account for over 40% of the worlds top ten asset managers.
Returns on investments influence the premium rates and bonuses
and hence investment income will continue to be an important
component of insurance company profits. In l ife insurance, benefits
from insurance profits accrue directly to policy holders when it is
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passed on to him in the form of a bonus. In non life insurance the
benefits are indirect and mostly by the creation of an investment
portfolio. Investment income has to compensate for underwriting results
which are increasingly under pressure. In the case of insurance, the
difference between revenue and the expenses is known as operating
surplus.
Revenue =premium.
Expenses =sum of claims + commission payable on procurement of
business + operating expenses.
Operating surplus =revenue-expenses.
Net investment income includes income from trading in and holding
stock market securities including government securities, special
deposits with the central government, loans to several public utilities
and service providers in state government.
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Insurance premium collected is converted in a pool of fund then
divided in to four expenses.
y To pay the expenses of the management.
y To pay agency commission.
y To pay for the claims.
y Surplus money will be invested in govt. securities.
Requirements of an insurance risk
Insurance normally insure only pure risks .However, not all pure risk is
insurable .certain requirements usually must be fulfilled before a pure
risk can be privately insured .From the view point of the insurer, there
are ideally six requirement of an insurable risk
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y There must be a large number of exposure units
y The loss must be accidental and unintentional.
y The loss must be determinable and measurable.
y The loss should not be catastrophic.
y The chance of loss must be calculable.
y The premium must be economically feasible
Comparison of Insurance with other Similar Factors
(1) Insurance and gambling compared
Insurance is often erroneously confused with gambling There are two
important differences between them .First ,gambling creates a new
speculative risk ,while insurance is a technique for handling an already
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existing pure risk .thus ,if you bet Rs 300 on a horse ,a new speculative
technique is created ,but if you pay Rs 300 to an insurer for fire
insurance ,the risk of fire is already present and is transferred to the
insurer by a contract. No new risk is created by the transaction.
The second difference between insurance and gambling is that
gambling is socially unproductive, because the winners gain comes at
the expense of the loser .In contract; insurance is always socially
productive, because neither the insurer nor the insured is placed in a
position where the gain of the winner comes at the expense of the
loser. The insurer and the insured have a common interest in the
prevention of a loss. Both parties win if the loss does occur .Moreover,
consistent gambling transaction generally never restore the losers to
their former financial position .In contract ,insurance contracts restore
the insureds financially in whole or in part if a loss occurs
(2) Insurance and hedging compared
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The concept of hedging is to transferring the risk to the
speculator through purchase of future contracts .An insurance
contract, however, is not the same thing as hedging .Although both
technique are similar in that risk is transferred by a contract, and no
new risk is created, there are some important difference between
them. First, an insurance transaction involves the transfer of insurable
risks, because the requirement of an insurable risk generally can be met
.However, hedging is a technique for handling risks that are typically
uninsurable ,such as protection against a decline in the price
agriculture products and raw materials.
A second difference between insurance and hedging is that insurance
and hedging is that insurance can reduce the objective risk of an
insurer by application of the law of large numbers. As the number of
exposure units increases, the insurers prediction of future losses
improves, because the relative variation of actual loss from expected
loss will decline .thus, many insurance transactions reduce objective
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risk. In contract, hedging typically involves only risk transfer , not risk
reduction .The risk of adverse price fluctuation is transferred because of
superior knowledge of market conditions .The risk is transferred, not
reduced, and prediction of loss generally is not based on the law of
large numbers.
Various types of life insurance policies:-
y Endowment policies: This type of policy covers risk for a specified
period, and at the end of the maturity sum assured is paid back
to policyholder with the bonuses during the term of the policy.
y Money back policies: This type of policy is for periodic payments
of partial survival benefits during the term of the policy as long as
the policy holder is alive.
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y Group insurance: This type of insurance offers life insurance
protection under group policies to various groups such as
employers-employees, professionals, co-operatives etc it also
provides insurance coverage for people in certain approved
occupations at the lowest possible premium cost.
y Term life insurance policies: This type of insurance covers risk only
during the selected term period. If the policy holder survives the
term, risk cover comes to an end. These types of policies are for
those people who are unable to pay larger premium required for
endowment and whole life policies. No surrender, loan or paid
up values are in such policies.
y Whole life insurance policies: This type of policy runs as long as
the policyholder is alive and is covered for the entire life of the
policyholder. In this policy the insured amount and the bonus is
payable only to nominee on the death of policy holder.
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y Joint life insurance policies: These policies are similar to
endowment policies in maturity benefits and risk cover, but joint
life policies cover two lives simultaneously such as married
couples. Sum assured is payable on the first death and again on
the death of survival during the term of the policy.
y Pension plan: a pension plan or annuity is an investment over a
certain number of years but does not provide any life insurance
cover. It offers a guaranteed income either for a life or certain
period.
y Unit linked insurance plan: ULIP is a kind of insurance plan which
provides life cover as well as return on premium paid over a
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certain period of time. The investment is denoted as units and
represented by the value called as net asset value (NAV).
B.4 INSURANCE AND ECONOMY
y Indian economy is growing in reference to global market.
Business of insurance with its unique features has a special place
in Indian economy.
y It is a highly specialized technical business and customer is the
most concern people in this business, therefore this business is
able to spur the growth of infrastructure and act as a catalyst in
the overall development of Indian economy.
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y The high volumes in the insurance business help spread risk wider,
allowing a lowering of the rates of the premium to be charged
and in turn, raising profits. When there is a bigger base, the
probabilities become more predictable, and with system wide
risks balanced out, profits improve. This explains the current
scenario of mergers, acquisitions, and global ization of insurance.
y Insurance is a type of savings. Insurance is not only important for
tax benefits, but also for savings and for providing security. It can
be serving as an essential service which a welfare state must
make available to its people.
y Insurance play a crucial role in the commercial lives of nations
and act as the lubricants of economic activities. Insurance firms
help to spread the potentially financial consequences of risk
among the large number of entities, to mobilize and distribute
savings for productive use, facilitate investment, support and
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encourage external trade, and protect economic entities
against external risk.
Insurance and economic growth mutually influences each other.
As the economy grows, the living standards of people increase. As a
consequence, the demand for life insurance increases. As the assets
of people and of business enterprises increase in the growth process,
the demand for general insurance also increases. In fact, as the
economy widens the demand for new types of insurance products
emerges. Insurance is no longer confined to product markets; they
also cover service industries. It is equally true that growth itself is
facilitated by insurance. A well -developed insurance sector promotes
economic growth by encouraging risk-taking. Risk is inherent in all
economic activities. Without some kind of cover against risk, some of
these activities will not be carried out at all. Also insurance and more
particularly life insurance is a mobilizer of long term saving s and l ife
insurance companies are thus able to support infrastructure projects
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which require long term funds. There is thus a mutually beneficial
interaction between insurance and economic growth. The low income
levels of the vast majority of population have been one of the factors
inhibiting a faster growth of insurance in India. To some extent this is
also compounded by certain attitudes to life. The economy has
moved on to a higher growth path. The average rate of growth of the
economy in the last three years was 8.1 per cent. This strong growth will
bring about significant changes in the insurance industry.
At this point, it is important to note that not all activities can be
insured. If that were possible, it would completely negate
entrepreneurship. Professor Frank Knight in his celebrated book Risk
Uncertainty and Profit emphasized that profit is a consequence of
uncertainty. He made a distinction between quantifiable risk and non-
quantifiable risk. According to him, it is non-quantifiable risk that leads
to profit. He wrote It is a world of change in which we live, and a
world of uncertainty. We live only by knowing something about the
future; while the problems of life or of conduct at least, arise from the
fact that we know so little. This is as true of business as of other spheres
of activity. The real management challenges are uninsurable risks. In
the case of insurable risks, risk is avoided at a cost.
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SECTION: C
COMPANY PROFILE
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States, the Netherlands and the United Kingdom as well as
other businesses in Asia, the Americas and elsewhere inEurope. AEGON is listed on the stock exchanges of
Amsterdam, London, New York and Tokyo.
With just over EUR 330 billion in revenue-generatinginvestments at the end of 2008, AEGON companies employ
just over 31,000 people worldwide, serving more than 40
million policyholders in over twenty countries across the
globe.
Highlights
Poland (December 2008) AEGON finalizes acquisition ofpension fund company PTE Skarbiec Emerytura.
The Netherlands (November 2008) AEGON CEO Alex
Wynaendts outlines short-term strategy to address financial
crisis, promising measures to reduce risk, free up more capital
and keep a tight lid on operating costs (the three Cs:
Capital, Cost, Contingency).
Mexico (October 2008) AEGON signs joint venture with
Mongeral, Brazils sixth biggest independent life insurer.
Spain (August 2008) AEGON agrees new joint venture withsavings bank Caixa Terrassa, further extending distribution in
Spain.
India (July 2008) AEGON launches new life insurance business
in India.
China (April 2008) - AEGON-CNOOC opens new branch
office in Guangdong in line with its strategy to expand itsbusinesses in the fast-growing coastal provinces of eastern
China. Guangdong, one of China's wealthiest and most
populous provinces, is the joint venture's sixth branch
following Beijing, Jiangsu, Shandong, Shanghai and Zhejiang.
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Turkey (February 2008) - AEGON enters into an agreement to
acquire 100% of Ankara Emeklilik, a Turkish life insurance andpension provider. The move is AEGON's first step in the fast-
growing Turkish life insurance and pension market.
United States (December 2007) - AEGON finalizes agreementwith Merrill Lynch, further widening the Groups distribution
network in the United States. As part of the agreement,
AEGON also buys Merrill Lynchs two life insurance businesses.
Our markets
AEGON's businesses serve millions of customers in over twenty
markets throughout the Americas, Europe and Asia, with
major operations in the United States, the Netherlands and
the United Kingdom.
In the past years AEGON has achieved very rapid growth
and expanded its business in Central & Eastern Europe,
signed new partnerships in India and Japan and furtherstrengthened its presence in China. The Group also
extended its commercial reach in places such as Spain, theNetherlands, the United States and the United Kingdom.
AEGON believes its core markets will continue to grow over
the years ahead and wants to capatilze on these growth
opportunities, making sure the Group is present in the right
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markets and making sure too, that its businesses - the
insurance, pension and bank distribution business - worktogether as efficiently and effectively as possible.
Ratings
The current S & P, Moody's and Fitch credit rating and rating
outlook of AEGON N.V. and the insurance financial strengthratings and ratings outlook of AEGON's primary life insurance
companies in AEGON's major country units are shown in the
table below.
Ratings AEGON N.V. AEGON USA
AEGON
The Netherlands
AEGON
Scottish Equitable
S&P rating A AA AA AA
S&Poutlook Negative Negative Negative Negative
Moody's rating A3 A1 Not rated Not rated
Moody's outlook Negative Negative Not rated Not rated
Fitch rating A AA Not rated Not rated
Fitch outlook Negative Negative Not rated Not rated
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C.2 ABOUT RELIGARE
A diversified financial services group with a pan-India presenceand presence in multiple international locations, Religare Enterprises
Limited ("REL") offers a comprehensive suite of customer-focused
financial products and services targeted at retail investors, high net
worth individuals and corporate and institutional clients.
REL, along with its joint venture partners, offers a range of products and
services in India, including asset management, life insurance, wealth
management, equity and commodity broking, investment banking,
lending services, private equity and venture capital. Religare has also
ventured into the alternative investments sphere through its holistic arts
initiative and film fund.
With a view to expand and diversify, REL operates in the life insurance
space under 'Aegon Religare Life Insurance Company Limited' and has
launched India's first wealth management joint venture under the
brand name 'Religare Macquarie Private Wealth'.
REL, through its subsidiaries, has launched India's first holistic arts
initiative - with a gallery - as well as the first SEBI approved film fund,
which is an initiative towards innovation and spotting new opportunities
for creation and maximization of wealth for investors.
REL operates from seven domestic regional offices, 43 sub-regional
offices, and has a presence in 498* cities and towns controlling 1,837*
business locations all over India.
To make a mark in the global arena, REL acquired UK-based Hichens,
Harrison & Co. in 2008 which was subsequently re-named as Religare
Hichens Harrison PLC ("RHH"). Hichens, Harrison & Co. was incorporated
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in London in the year 1803 and is believed to be one of the oldest firms
of stockbrokers in the City of London.
Pursuant to expansion of REL's business, the company has grown from
largely an equity trading company into a diversified finan cial services
company. With the addition of RHH the REL group now operates out of
multiple global locations, other than India, (the UK, the USA, Brazil,
South Africa, Dubai and Singapore).
Vision & Mission
Vision - To build Religare as a globally trusted brand in the financial
services domain and present it as the Investment Gateway of India'.
Mission - Providing complete financial care driven by the core values
of diligence and transparency.
Brand Essence - Core brand essence is Diligence and Religare is driven
by ethical and dynamic processes for wealth creation.
Brand and identity
The first leaf of the clover represents Hope. The aspirations to succeed. The dream of
becoming. Of new possibilities. It is the beginning of every step and the foundation on which
a person reaches for the stars.
The second leaf of the clover represents Trust. The ability to place ones own faith in another.
To have a relationship as partners in a team. To accomplish a given goal with the balance
that brings satisfaction to all, not in the binding, but in the bond that is built.
The third leaf of the clover represents Care. The secret ingredient that is the cement in every
relationship. The truth of feeling that underlines sincerity and the triumph of diligence in everyaspect. From it springs true warmth of service and the ability to adapt to evolving
environments with consideration to all.
The fourth
and final leaf
of the clover
represents
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Good
Fortune.
Signifying
that rare
ability to
meldopportunity
and planning
with
circumstance
to generate
those often
looked for
remunerative
moments of
success.
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Trus
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com
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and
rare
,
four
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-leaf
clov
er
to
visu
allysym
boli
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the
valu
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that
bind
toge
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OurJoint Ventures
AEGONReligare Life Insurance Company
Life Insurance business (AEGON as a partner)
For more information log on to www.aegonreligare.com
Religare Macquarie Wealth Management Ltd.
Private Wealth business (Macquarie, Australian Financial Services
major as a partner)
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For more information log on to www.religaremacquarie.com
Vist
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ugh
the
JV
hav
e
formed
an
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C.3 About Aegon Religare
AEGON, one of the worlds largest life insurance and pension groups,
Religare, one of Indias leading integrated financial services groupsand Bennett, Coleman & company, Indias largest media house, have
come together to launch AEGON Religare Life Insurance Company
Limited. This venture is dedicated to build a firm future, both for
customers and employees and will continue to balance a local
approach with the power of an expanding global operation. We
launched our pan-India multi-channel operations in July, 2008 with over
30 branches spread across India. Our business philosophy is to help
people plan their life better. We provide high quality advice to our
customers and offer superior customer service. In an industry first,
AEGON Religare Life Insurance offers policy servicing on the phone via
Interactive Voice Response System (IVR) by issuing the customer a T-Pin
for authentication. It is also the first company to include the customers
medical report in the policy kit.
AEGONs businesses serve over 40 million customers in over 20 markets
throughout the Americas, Europe and Asia, with major operations in the
United States, the Netherlands and the United Kingdom. With
headquarters in The Hague, the Netherlands, AEGON companies
employ almost 32,000 people worldwide. The companys common
shares are listed on four stock exchanges: Amsterdam, London, New
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York and Tokyo. It manages EUR 351 billion in revenue generating
investments. AEGON has more than 160 years of experience with its
roots going back to 1844. It holds 26% equity in our company.
Religare is a diversified financial services group of India offering a
multitude of investment options. Financial services which Religare offers
can be broadly clubbed across three key verticals - Retail, Institutional
and Wealth spectrums. Religare has also ventured into the alternative
investments sphere through its holistic arts initiative and Film fund. With
a view to expand, diversify and introduce offerings benchmarked
against global best practices, Religare operates in the wealth
management space under the brand name 'Religare Macquarie
Private Wealth'. Religare has a pan India presence, 1837 locations
across 498 cities and towns. It also currently operates from nine
international locations following its acquisition of London's brokerage &
investment firm, Hichens, Harrison & Co. plc. (Now Religare Hichens,
Harrison Plc).
Bennett, Coleman & Co. Ltd. (BCCL), part of the mammoth Times
Group, is Indias largest media house. It reaches out to 2468 cities and
towns all over India. The group owns and manages powerful media
brands like The Times of India, The Economic Times, Maharashtra Times,
Navbharat Times, Femina, Filmfare, Grazia, Top Gear, Radio Mirc hi,
Zoom, Times Now, Times Music, Times OOH, Private Treaties and
indiatimes.com. All of its brands are multinational in outlook, traditional
at heart and national in spirit. From the very first edition on November 3,
1838 the mammoth BCCL Group has come a long way. By way of the
innovative venture of Times Private Treaties
(http://www.timesprivatetreaties.com), the BCCL Group holds 30%
equity in our company.
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1. VALUES & VISION
2. LEADERSHIP TEAM
CHIEF EXECUTIVE OFFICER
Rajiv Jamkhedkar
Mr Rajiv Jamkhedkar joined AEGON Religare Life Insurance Company
Limited as its Chief Executive Officer in July 2007.
Rajiv Jamkhedkar has two decades of experience in Retail Financial
Services in India. He has worked in all parts of the country the North,
South and Western India. Mr Jamkhedkar started his career as a
Management Associate at Citibank N.A. During the course of more
than a decade, he worked in Service, Sales and Product management
roles in a variety of businesses in Consumer Banking.
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During his last assignment at Citi, Mr. Jamkhedkar was head of Personal
lending & SME segment, Citibusiness. His main achievement was that
he quadrupled the balance-sheet in 5 years and made these as two of
the most profitable businesses for the bank.
Mr. Jamkhedkar has been involved in start-ups including a three year
stint in HSBC, where he started up the Retail Assets division of HSBC in
India. He was part of the core team that was instrumental in
transforming HSBC from being a corporate banking institution to being
a significant retail-banking player.
Mr Jamkhedkar has a B.Tech Degree in Electronics Engineering from IT -
BHU and an M.B.A. degree from Faculty of Management Studies, Delhi
University.
CHIEF FINANCIAL OFFICER & APPOINTED ACTUARY
K S Gopalakrishnan
CHIEF INVESTMENT OFFICER
Saibal Ghosh
CHIEF MARKETING OFFICER
Yateesh Srivastava
HEAD - AUDIT RISK & COMPLIANCE
Debmalya Maitra
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3. PRODUCTS
(A) PROTECTION PLANS
(B) CHILDREN PLAN
(C) SAVING PLAN
(D) RETIREMENT PLAN
(A) PROTECTION PLANS
AEGON RELIGARE DECREASING TERM PLAN:
Step 1: Choose the amount of protection you need
Step 2: Decide on the term of your policy
Step 3: Our Life Agent will calculate the premium you will have to
pay
Benefits
Death - In case of your unfortunate demise, the benefit payable is
100% of the Sum Assured in the 1st year, after which it will reduce by
5% on every policy anniversary.
Tax Benefits - Section 80C, 10 (10D) of the Income Tax Act, 1961
would apply. Please consult your tax advisor for confirmation.
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Eligibility
Annualised Premium Minimum - Rs. 2,000 p.a for regular premium
- Rs. 10,000 for single premium
Sum Assured Minimum - Rs. 5,00,000
Entry Age Minimum - 18 years Maximum - 55 years
Maturity Age Maximum - 75 years
Premium Pay Term Single / 11 years (except for 10-year plan
where premium pay term is equal to the policy term)
Policy Term Minimum - 10 years; Maximum - 20 years
Premium Payment Frequency Single, Yearly, Half- yearly,
Quarterly, Monthly (via ECS only)
Other Features
Grace Period - You are allowed to pay premiums within 30 days
from the due date. If a due premium is not received within the
grace period of 30 days, your policy will lapse and the life insurance
cover will be terminated.
Lapsed Policy Reinstatement - You can reinstate your lapsed policy
any time (within 2 years from the due date of the first unpaid
premium) by paying all the due premiums and undergoing
underwriting requirements, if any.
Free Look Cancellation - In case, you are not satisfied, you may
choose to cancel the policy within 15 days of receiv ing the policy
documents. Upon such cancellation, you will be paid back the
premiums minus the cost of stamp duty, medical reports and
proportionate premium for the period for which the risk was
covered.
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Terms and Conditions
Maturity - The policy does not acquire any maturity value, therefore
no amount is payable to the Policy Holder on maturity.
Surrender - The policy does not acquire any surrender value
throughout the policy term and therefore there is no amount
payable to the Policy Holder upon surrender.
Service Tax - Service tax or any other tax shall be levied as per the
prevailing tax laws on premiums or benefits payable.
Exclusion - In case of death by suicide during the first policy year, or
within one year from the date of reinstatement, no de ath benefit is
payable.
AEGON RELIGARE GROUP TERM PLAN:
There is a well known saying People make the place. No matterwhich industry you are in, the value that individuals bring to an
organization cannot be underestimated. Most of the people at your
work place have a family that financially depends on them. Hence,
each one needs life insurance. Providing basic financial security for
these employees would not go unnoticed.
AEGON Religare Group Term Plan provides the members of your
group with a life insurance plan so that their families needs are
looked after.
How do you apply for AEGON Religare Group Term Plan?
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Step 1: Decide on the number of people in your group (minimum 50
members)
Step 2: Choose the amount of protection your group members
need
Step 3: Derive at the Sum Assured for every member on the basis of:
a) Multiple of salary
b) Flat / Fixed Cover for all members
c) Grade wise cover
Benefits
Death - In case of any members unfortunate demise, you will be
paid the Sum Assured for the nominee.
Eligibility
Premium Minimum - Depends upon the group Size & Sum Assured
opted
Maximum - No limit
Sum Assured Minimum - Rs. 5,000 per member
Maximum - Rs. 2,00,000 per member
Entry Age Minimum - 18 years Maximum - 59 years
Maturity Age Maximum - 60 years
Size of the Group Minimum - 50 members
Maximum - No limit
Premium Pay Term Equal to the policy term
Policy Term 1 year (yearly renewable)
Premium Payment Frequency Single,Half- yearly, Quarterly,
Monthly (via ECS only)
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AEGON RELIGARE INCREASING TERM PLAN:
Benefits
Death - In case of your unfortunate demise, the benefit payable is
100% of the Sum Assured in the first year which increases by 5% on
every policy anniversary thereafter, till the amount payable on
death becomes twice the Sum Assured. After that, the benefit
payable remains twice the Sum Assured.
Tax Benefits - Section 80C, 10 (10D) of the Income Tax Act, 1961
would apply. Premiums paid for AEGON Religare CI Rider may
qualify for a deduction under Section 80D of the Income Tax Act,
1961. Please consult your tax advisor for confirmation.
Riders
Besides life cover, AEGON Religare Increasing Term Plan offers you
additional cover through riders. If you opt for a rider, you or yournominee will receive the rider Sum Assured, in case any of the
following event / illness listed under the rider occurs.
AEGON Religare ADDD Rider - This rider benefit is paid on
occurrence of any of the following
* Death due to an accident
* Accidental dismemberment [loss of use of a limb(s) and / or
eye(s)]
* Permanent total disability due to an accident
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AEGON Religare CI Rider - This rider covers the following 9 critical
illnesses
* Cancer (malignant) including Leukemia
* Coronary Artery Bypass Surgery
* Heart Attack
* Kidney Failure
* Stroke
* Major Organ Transplantation
* Paralysis
* Heart Valve Surgery
* Surgery for disease of the Aorta
In case of Critical Illness, the Sum Assured will be paid 30 days after
diagnosis of the critical illness or undergoing surgical procedure as
the case may be.
AEGON RELIGARE LEVEL TERM PLAN:
Your family looks to you for support and strength. You have given
them the best till now and you would want them to get the best
even in the future. However, no one has control over uncertainties
of life. Will they be able to sustain the same lifestyle even in your
absence? To deal with your concern and give your family the best,
we offer you AEGON Religare Level Term Plan, which ensures
protection for your loved ones at a fraction of the cost. With the
help of our Life Agent, fill out the Life Planner that will help you take
the steps to having your own plan.
Features and Benefits
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Enhanced Sum Assured
There are some special occasions in life such as your marriage or
the birth of your child that need your support. On such occasions
this policy gives you the option to increase your Sum Assured. This
increase in the sum assured is subject to a maximum of 50% of the
sum assured or Rs 10 lakh (whichever is lower), without the hassle of
going through a medical examination or any other underwriting
requirements.
Grace period
You are allowed to pay premiums within 30 days from the due date.
If a due premium is not received within the grace period, your
policy will lapse and the life insurance cover, including the rider
cover, if any, will be terminated.
Lapsed Policy Reinstatement
You can reinstate your lapsed policy any time (within 2 years from
the due date of the first unpaid premium) by paying all the due
premiums.
Free Look Cancellation
In case, you are not satisfied, you may choose to cancel the policywithin 15 days of receiving the policy documents. Upon such
cancellation, you will be paid back the premiums minus the cost of
stamp duty, medical reports and proportionate premium for the
period for which the risk was covered.
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Death: Incase of unfortunate demise, the benefit payable to
nominee is sum assured and it does not change during the term of
the contract.
Tax Benefits
Section 80C, 10 (10D) of the Income Tax Act, 1961 would apply.
Premiums paid for AEGON Religare CI Rider may qualify for a
deduction under Section 80D of the Income Tax Act, 1961. Consult
your tax advisor for confirmation.
AEGON RELIGARE RURAL TERM PLAN:
A low-cost plan that offers 100 times of your premium as life cover.
How do you apply for AEGON Religare Rural Term Plan?
All you need to do is choose the amount of premium you need to
pay.
Benefits
Maturity On Survival till the end of policy term, you receive an
amount of 110% of the Single Premium paid.
Death - In case of your unfortunate demise during the policy term,
the benefit payable to your nominee is the Sum Assured which is 100
times of the Single Premium paid.
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Maturity
On maturity, you receive the fund value existing on maturity. If you
do not wish to take the entire maturity amount at one go, you can
avail of the Settlement Option.
4 Fund Options
You have the option of choosing from 4 funds Secure, Debt,
Balanced and Enhanced Equity Fund.
Partial Withdrawal
You or the nominee after death of the Life Assured can partially
withdraw your money after first 3 policy years. The maximum
amount of partial withdrawal in any policy year is 50% of the fund
value at the beginning of that policy year. You can also avail of
AEGON Religare Star Child Plans Systematic Partial Withdrawal
facility by which we redeem units periodically from your unitaccount and credit the money to your bank account. You can opt
for systematic partial withdrawal frequency, say monthly or quarterly
for the duration you choose.
Settlement Option
Under this option, you or the nominee after death of the LifeAssured, receive maturity proceeds in instalments over a period you
choose (not exceeding 5 years). Investment risk during the
settlement period is borne by you.
Surrender
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AEGON RELIGARE PREMIUM GAIN PLAN:
You've always worked hard to give your family nothing but the best.
But growing expenses, never-ending price hikes and inflation make
most of your plans difficult. Which is why, it becomes all the more
important to invest and set aside that little something for whatevermay come your way. The AEGON Religare Premium Gain Plan is
designed keeping just that in mind. It helps maximise your
investments and gives you the best possible returns. So that when it
comes to your plans for your loved ones, nothing comes in the way.
With the help of our Life Agent, fill out the Life Planner that will help
you take the steps to having your own plan.
Advantages of AEGON Religare Premium Gain Plan
* Guaranteed special addition of 150% or 200% of your first year
premium at maturity for a 15 or 20 year term policy respectively.
* 99% to 100% premium is invested in funds second year onwards.
* Additional 100% of sum assured in case of accidental death.
* No medical examination required.
* Unique Invest Protect option strives to protect your returns.
Invest Protect Option
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If you opt for Invest Protect option, it will not only help you gain from
your investment but also minimise the risk to your returns as your
policy nears maturity. It aims to protect your money by
systematically shifting the fund from Balanced Fund to Debt Fund
during the last 2 policy years.
Features and Benefits
No Medical Test
You do not have to undergo any medical investigation. All you
need to do is answer 3 simple questions.
Switch
This feature helps you shift your investments from one fund to
another. Four switches are free of charge in each policy year.
Premium Re-direction
Premium Re-direction feature allows you to alter the premium
allocation made by you in different funds.
Maturity
On maturity, you receive the fund value existing on maturity date
and the special addition.
Three Fund Options
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Tax Benefits
Section 80C, 10 (10D) of the Income Tax Act, 1961 would apply.
Consult your tax advisor for confirmation.
AEGON RELIGARE PREMIUM GAIN PLUS PLAN:
Youve always worked hard to give your family nothing but the best.
But growing expenses, never-ending price hikes and inflation make
most of your plans, difficult. Which is why, it becomes important to
invest and set aside that little something for whatever may come
your way. The AEGON Religare Premium Gain Plus Plan, is designed
keeping just that in mind. It helps maximise your investments andgives you the best possible returns. So that when it comes to your
plans for your loved ones, nothing comes in the way.
Features & Benefits
Special Addition - Earn Special Addition on maturity, on payment ofall your premiums. The value of Special Addit ion amount on maturity
(% of first year policy premium) shall be calculated as:
No of years premium paid * Special Addition Rate p.a. * First Year
Annualised premium
Number of Years Premium paid
Special Addition Rate p.a.
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Special Addition amount on Maturity (% of First Year Policy Premium)
15
9.00%
135%
20
15.00%
300%
No Medical Test - You do not have to undergo any medicalinvestigation up to sum assured of Rs.12.5 Lakhs. All you need to do
is answer 3 simple questions.
100% premium is invested in funds from second policy year onwards
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Invest Protect option - If you opt for Invest Protect option, it will not
only help you gain from your investment but also minimize the risk to
your returns as your policy nears maturity. It aims to protect your
money by systematically shifting the Fund from Enhanced Equity
Fund to Secure Fund during the last 3 policy years.
Fund options - If you dont wish to opt for Invest Protect, you have
the option to invest your premiums in any one or more of the
following 4 funds:
#
Secure Fund
#
Debt Fund
#
Balanced Fund
#
Enhanced Equity Fund
Maturity - On maturity, you receive the fund value existing on
maturity date and the Special Addition.
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Settlement Option - Under this option, you receive your maturity
proceeds in installments over a period you choose (not exceeding 5
years).
Partial Withdrawal - You can partly withdraw your money after first 3
policy years. The maximum amount of partial withdrawal in any
policy year is 20% of the fund value at the beginning of that policy
year.
Surrender - You can surrender the policy any time after the first 3
policy years. Surrender value is equal to the fund value less
surrender charges applicable, if any.
Death - In case of your unfortunate demise during the policy term,
the nominee will receive the Sum Assured or the Fund Value,
whichever is higher. In case the life assured has not attained 7 years
of age, fund value is payable. However, if death occurs in the first
policy year higher of annualized premium and fund value is
payable.
Tax Benefits - Section 80C, 10 (10D) of the Income Tax Act, 1961
would apply. Please consult your tax advisor for confirmation.
AEGON RELIGARE WEALTH PROTECT PLAN:
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A plan that ensures, you never miss an opportunity to maximise the
gains and shields it during down turn. AEGON Religare Wealth
Protect Plan guarantees that the returns will not dip below 80% of
highest NAV during the policy term.
Key Features
NAV Protector Fund - The NAV Protector Fund aims to maximise
gains from your investments and at the same time protect such
gains from eroding. The premiums allocated to the NAV Protector
Fund will be invested in a mix of equity and money market
instruments. The proportion of equity will be dynamically managed
according to a predefined rule.
Reset Days - Every Friday will be the reset day for the AEGON
Religare Wealth Protect Plan.
Special NAV - Special NAV is 80% (Eighty percent) of the highest
NAV declared on any reset day. Refer to the Terms & Conditions to
understand how a special NAV is calculated for Regular Premium
and Top-Up Premium.
Special fund value - Special Fund Value is calculated as, higher of
the NAV as on date or the Special NAV multiplied by the number of
units in your unit account i.e. (Higher of NAV as on date or Special
NAV) x Number of Units.
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For example, the NAV is at its highest 40.12 in policy year 7 as per
the graph above. On the date of maturity, even if the NAV is below
the Special NAV, you are assured of receiving your Special Fund
Value at an NAV of 32.10 which is 80% of the NAV in year 7.
Key Benefits
On Maturity - On maturity, you receive the Special Fund Value (asexplained above) as on maturity date plus Special Addition.
Partial withdrawal - You can partly withdraw your money after the
first 3 policy years. The minimum amount of partial withdrawal is Rs.
5,000 and the maximum amount of partial withdrawal allowed in
any policy year is 20% of the fund value at the beginning of that
policy year.
Surrender - You can surrender the policy any time after the first 3
policy years. Surrender Value is Special Fund Value minus the
surrender charges.
Death - In case of your unfortunate demise during the policy term,
your nominee will receive the Sum Assured or the Special Fund
Value, whichever is higher. For further details, refer to Terms and
Conditions.
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PROTECT GAIN PLAN:
Your life has many phases and it changes with time. But it doesn't
have to be a financial roller coaster ride for you. Life, if
systematically managed, can constantly keep changing for better.
Leading only to a more secured tomorrow. AEGON Religare Protect
Gain plan from AEGON Religare Life Insurance aims to do just that
for you. With the help of our Life Agent, fill out the Life Planner that
will help you take the steps to having your own plan.
Invest Protect Option
If you opt for Invest Protect option, it will not only help you gain from
your investment but also minimize the risk of returns as your policy
nears maturity. It aims to protect your money by systematically
shifting the Fund from the Enhanced Equity Fund to the Secure Fund
during the last 3 policy years.
Features and Benefits
Auto-rebalancing feature, at the end of every policy year,
automatically rebalances the allocation of your investments in
various funds to the allocation proportions chosen by you.
Special Units
You will earn additional special units if your policy term is 15 years or
more. The special units will be added to your account at the end of
10th year and every 3rd year thereafter. The value of special unit
would be equal to 1.50% of the average fund value of the last 36
months before the allotment of special units.
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Premium Re-direction
Premium Re-direction feature allows you to alter the premium
allocation made by you in different funds.
Enhanced Sum Assured
At certain stages in your life such as marriage or child birth your
responsibility towards the family increases. In such cases, you may
want to increase your life cover.
AEGON Religare Protect Gain Plan allows you to increase your life
cover without the hassles of undergoing medical check-up or filling
up any health related questionnaire. You can increase your life
cover by up to 50% of the Sum Assured or Rs 10 lakh (whichever is
lower), subject to certain conditions. In case the Proposer and the
Life Assured are different, then the feature is applicable only to the
Life Assured.
Switch
This feature helps you shift your investments from one fund to
another. Four switches are free of charge in each policy year.
Maturity
On maturity, you receive the fund value existing on maturity date. If
you do not wish to take the entire maturity amount at one go, you
can avail of the Settlement Option.
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Settlement Option
Under this option, you receive your maturity proceeds in instalments
over a period you choose (not exceeding 5 years). Investment risk
during the settlement period is borne by you.
Partial Withdrawal
You can partially withdraw your money after first 3 policy years. The
maximum amount of partial withdrawal in any policy year is 20% of
the fund value at the beginning of that policy year. You can also
avail of AEGON Religare Protect Gain Plans Systematic PartialWithdrawal facility by which we redeem units periodically from your
unit account and credit the money to your bank account. You can
opt for systematic partial withdrawal frequency, say monthly or
quarterly for the duration you choose.
Surrender
You can surrender the policy anytime after the first 3 policy years.
Surrender value is fund value minus the surrender charges. The
charges will depend up on the period for which you have paid your
premiums. There is no surrender charge for units created out of Top-
up.
Death
In case of your unfortunate demise during the policy term, the
nominee will receive the Sum Assured or the Fund Value, whichever
is higher. The fund value is the number of units in your unit account
multiplied by their respective unit price. For further details on the
above benefits refer to Terms and Conditions in the brochure.
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Tax Benefits
Section 80C, 10 (10D) of the Income Tax Act, 1961 would apply.
Premiums paid for AEGON Religare CI Rider may qualify for a
deduction under Section 80D of the Income Tax Act, 1961. Consult
your tax advisor for confirmation.
(D) RETIREMENT PLAN
AEGON RELIGARE INSTA PENSION PLAN:
Your family looks to you for support and strength at all times.
Whether markets crash, prices rise or unforeseen events run riot with
your budgets, you manage to come out of such situations on top.
All your life, you strive hard and make sure you earn enough and
more to ensure that you and your family get the best of everything.
Why should your post-retirement life be any less?
At AEGON Religare Life Insurance we understand this. Hence, we
bring you the AEGON Religare Insta Pension Plan. A plan that paysyou a continuous income post your retirement for the rest of your
life. So that you maintain your current lifestyle even after retirement
and live the way you always have without compromise.
How does the plan work?
Step 1: Decide the amount of premium (lump sum amount) you
want to pay to purchase the Annuity Plan.
Step 2: Choose any one of the two available annuity payout
options.
Step 3: Choose the annuity payout mode with which you would
want to receive your annuity.
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Step 4: Choose the most convenient way to receive your annuity
amount from any of the two available options.
Purchasing an Annuity
As soon as you purchase an annuity plan, you start getting a regular
income in the form of an annuity. The actual amou nt you receive as
annuity will depend upon the Annuity Rates applicable at the time
of purchasing the annuity.
Benefits
Lifetime Income Depending on the annuity payout option that you
choose, the AEGON Religare Insta Pension Plan provides you and
your spouse an income for life.
Features
Annuity Payout Options You have the choice to select from any of
the following Annuity Payout Option.
Life Annuity If you choose the Life Annuity option, you will receive
your annuity payment for as long as you live.
Joint Life Annuity Under this option, an annuity is paid to you for yourentire life. In case of your unfortunate death, the annuity payment
will be continued to be paid to your spouse, till your spouse is alive.
Annuity Payout Mode You can choose to receive your annuity
either on a monthly or on an annual basis.
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Options to receive you annuity You have the option to receive your
annuity amount either by cheques or by direct credit to your bank
account.
Eligibility
Premium Minimum: Rs. 1,00,000
Maximum: No Limit
Premium Pay Term Single Premium
Entry Age Minimum: 50 years Maximum: 75 years
Entry Age of Spouse Minimum: 50 years Maximum: 75 years
AEGON RELIGARE PENSION PLAN:
Today, you are living comfortably. There is a regular inflow of
income and your bills are paid on time. In fact your necessities aretaken care of, without you having to worry about them.
However, the future will be different. Rising inflation will affect the
price of the smallest of items. Milk that costs Rs.20/ltr. today could
cost around Rs.95 twenty years later. Which means, on retirement
you may not be able to afford even the basic necessities like food,
clothing, etc.
Therefore you need to plan your retirement today itself. Presenting
the AEGON Religare Pension Plan. It provid es you with a regular
pension that will help you take care of the much needed basic
necessities, post-retirement. Invest in AEGON Religare Pension Plan
and be assured of a secure tomorrow.
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How does the plan work?
Step 1: Choose your retirement age. Step 2: Consult our Life Advisor
to know what should be your retirement amount. Step 3: Decide the
amount of premium you wish to pay every year from the flexible
options. Step 4: Invest your premiums in the Lifestyle Fund option, a
Fund that systematically minimises the risk to your returns by
reducing the equity exposure throughout the policy term.Alternatively, you can choose to invest your premiums in any of our
5 Funds.
Premium Options
Increasing Premium The Increasing Premium Payment option is a
feature that takes into consideration inflation. As inflation rises, thevalue of your money falls thereby reducing your purchasing power.
Therefore, it becomes important that as time elapses, you should
built a corpus that has the value and purchasing power that you
have always wanted. Under this variant, you can choose to pay
regular premiums which increase by 5% or 8% of the first year
premium every year.
Level Premium If you choose Level Premium, the amount of regular
premium that you pay every year remains fixed till you reach the
vesting age. E.g. The graph below shows you how opting for the
Increasing Premium Option at 5% and 8% over a period of time will
help you in increasing the amount you get at vesting.
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The graph above shows that the returns are 47% more when 5%
Increasing Premium is opted for and 75% more when the 8%
Increasing Premium is opted for as compared to the Level Premium
option.
Benefits
1. Vesting On vesting, you have the option to take a part of fund
value as tax free lump-sum (as per prevailing tax laws). The balance
amount will be used to purchase an immediate annuity from us at
then prevailing rates or from any other Life Insurance Company.
Option to Pre-pone or Postpone your vesting age: Under this option,
you can change your vesting date. The minimum vesting age is
attaining 50 years of age and the maximum up to attaining 70 years
of age.
2. Partial Withdrawal You can partly withdraw your money after first
3 policy years. The minimum amount of partial withdrawal is Rs. 5,000
and the maximum amount allowed in any policy year is 20% of thefund value at the beginning of that policy year.
3. Surrender You can surrender the policy any time after the first 3
policy years. Surrender value is fund value minus the surrender
charges. There is no surrender charge on units from Top-up premium
paid.
4. Death In case of your unfortunate demise, your nominee will
receive the existing Fund Value of the date when we receive such
intimation. In case you have opted for a Term Rider, the Term Ride r
Sum Assured in addition to the Fund Value will be payable.
Key Features:
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Increase and decrease in Premium Under this feature, you have the
flexibility to increase or decrease the level premium that you pay
annually. You also have the flexibility to cha nge from increasing
premium to level premium within minimum and maximum premiumlimits.
Auto-rebalancing This feature at the end of every policy year,
automatically rebalances the allocation of investments in various
funds as to the allocation proportions chosen by you.
Special Units You earn additional Special units if your policy term is
10 years or more. The Special units are added to your account on
the 10th Policy Anniversary and on every policy anniversary
thereafter till the vesting of the policy or death.
Premium Re-direction This feature allows you to alter the premium
allocation to be applied to your future premiums.
Switch This feature helps you to shift your investments from one fund
to another. Four switches are free of charge in each policy year.
Riders AEGON Religare Pension Plan offers you additional cover
through riders. 1. AEGON Religare Term Rider 2. AEGON Religare
Waiver of Premium Rider
These riders are only available with regular premium option.
Eligibility
Annualised Premium Minimum - Rs. 12,000 p.a for regular premium
- Rs. 1,00,000 for single premium
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Premium Pay Term (Years) Single / Equal to the policy term
Entry Age Minimum - 20 years Maximum - 60 years
Vesting Age Minimum - 50 years Maximum - 70 years
Policy Term Minimum - For Level / Increasing Premium - 10 Years- Single Premium 5 Years Maximum - 50 years
Premium Payment Frequency Monthly (via ECS only), Quarterly,
Half- yearly, Yearly or Single Premium
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4. PRESS RELEASES
Mumbai, June 25: AEGON Religare Life Insurance today announced its
business plans for the financial year 2009-2010, giving details on its
performance in FY09.
The key strategy for AEGON Religare Life Insurance in FY10 is to build
distribution and focus on productivity for all of its 52 branches across 42
cities. The company will build a strong sales force and plans to hire
10,000 advisors and over 250 frontline sales staff in the current fiscal. The
business target for FY10 is an APE of Rs 240 crore with over 110,000
policies.
The company started operations in July 2008 and currently has 52
branches spread across 42 cities, as per the plan