A
A
PROJECT REPORT
ON
Training Undertaken at
A COMPARATIVE STUDY ON THE PERFORMANCE OF BAJAJ ALLIANZ
INSURANCE COMPANY WITH ITS INDUSTRIAL COMPETITORSSubmitted in
partial fulfillment for the
Award of degree of
MASTER OF BUSINESS ADMINISTRATION
(Industry Integrated)
Submitted by: - Submitted To:-Dilip Singh Rathore
FMSSemester IV MAIET M B A2012-2013
MAHARSHI ARVIND INSTITUTE ENGINEERING &
TECHNOLOGYPrefaceThere is a large gap between theoretically and
practical knowledge about handling and managing a business. Only
books knowledge cant help in building up an effective
administrator.In my views everybody have strength and weakness if
you have experience your strength power is going high and your
weakness going lesser thats by one year experience is superior to
ten year study.
According to its compulsory for every students of MBA- Sem IV to
take training under any enterprise of the industry for 15 days, to
get information, knowledge and practical learning about specific
specialized field and of industry at all. I have prepared this
report after taking training entitled in A Study on Products of
Bajaj Allianz Life Insurance". In This Report I Have collected
during my project training. I have prepared this report with great
interest. Although there may be possibility of mistakes in this
report. If there is any mistakes in this report, kindly forgive
me.
ACKNOWLEDGEMENT
First of all I would like to thank the management at Bajaj Life
Insurance Company for giving me the opportunity to do my summer
training in their esteemed organization. I express my thanks to all
sales managers under whose able guidance and direction, I was able
to give shape to my training. Their constant review and excellent
suggestions throughout the project are highly commendable.My
sincere thanks to all executives who helped me gain knowledge about
the actual working and processes involved in various
departments.EXECUTIVE SUMMARY
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 insurance companies. Currently, it has presence
in more than 550 locations with over 60,000 Insurance
Consultants.
In June 2008, Bajaj Allianz entered into partnership with Thomas
Cook India to provide travel finance. Bajaj Allianz Life Insurance
ensures excellent insurance and investment solutions by offering
customized products, supported by the best technology.
In my training Period, I have focused mainly on two products of
Bajaj Allianz Life
Insurance company: New Family Gain and New Unit Gain.
NEW FAMILY GAIN
In this product, the minimum premium which is to be paid by the
customer is Rs.5000. The maximum premium for this product is
Rs.10000.The policy term is 10 years. The Sum Assured is Rs. 50000
or the Fund Value which ever is higher. It is a unit linked plan
and the Lock-in period is 3 years. After 3 years the customer can
withdraw 75% or whole amount but surrender charges will be taken.
After 5 years no surrender charges will be charged. In this product
customer has the facility of getting a premium holiday for 2 years
after 3 years have been completed and if he withdraws after 5 years
he will get Rs. 30000.The customer will get benefit of Section 80C
and Section 10(10D) of Income tax. Under Section 80 C the customer
will get Tax rebate and under Section 10(10D) he will get tax free
maturity gains.
NEW UNIT GAIN
In this product, the minimum premium which is to be paid by the
customer is Rs.10000.The maximum premium for this product has no
limit. The policy term is 10 years. The Sum Assured is 5 times the
premium amount or the Fund Value which ever is higher .It is a unit
linked plan and the Lock-in period is 3 years. After 3 years the
customer can withdraw 75% or whole amount but surrender charges
will be taken. After 5 years there are no surrender charges.In this
product customer has the facility of getting a premium holiday for
2 years after 3 years have been completed and if he withdraws after
5 years he will get Rs. 60000. The customer will get benefit of
Section 80C and Section 10(10D) of Income tax. Under Section 80 C
the customer will get Tax rebate and under Section 10(10D) he will
get tax free maturity gains.
Human Life Value Concept
This concept tells about value of a human life, particularly
when he/she is a earning member of the family. Suppose a person is
30 years old and has a fixed monthly income of Rs. 10000 and if
retires at the age of 60 then he will earn about 36 lakh in those
30 years. Unfortunately if he/she dies at the age of 32 his family
members will have a financial loss, so to minimize the loss
occurred due to the death of the earning member, one should have
insurance of about 36 lakh.
Fixed Deposit compared with Insurance policy
In fixed deposit money is locked in for 5 or more years and in
Insurance Policy money is locked in only for 3 years.In fixed
deposit, at maturity TDS (Tax deduction at source) is deducted but
in Insurance policy, maturity amount is tax free under Section
10(10D).
In fixed deposit the rate of return is about 8-10% but in
Insurance policy rate of return is 15% or more.
In Fixed deposit, no life insurance is given but in Insurance
policy life insurance is given.
In the training period, I have tried to inform people about the
products of Bajaj Allianz Life Insurance. I have met different
people like:
Salaried people
Businessmen
Chartered Accountants
Lawyers
Doctors
Engineers
Housewives
CONTENTSPg. No.1. Introduction to the Industry 8
1.1 Meaning of Insurance1.2 History of Insurance1.3 Meaning of
Life Insurance1.4 Role of Life Insurance in the Growth of the
Economy1.5 Kinds of Life Insurance Policies2. Introduction to the
Organization 30
2.1 Allianz Group
2.2 Bajaj Group
2.3 Mission of the Company
2.4 Vision of the Company
2.5 History of the Company
3. Research Methodology
39
3.1 Title of the Study
3.2 Duration of the Project
3.3 Objective of Study
3.4 Type of Research
3.5 Sample Size and method of selecting sample
3.6 Scope of Study
3.7 Limitation of Study4. Facts and Findings
105
5. SWOT 116
6. Conclusion 119
7. Recommendation and Suggestions 120
8. Bibliography 121
9. Appendix1221. INTRODUCTION TO THE INDUSTRY1.1 MEANING OF
INSURANCEInsurance may be described as a social device to reduce or
eliminate risk of loss to life and property. Insurance is a
collective bearing of risk. Insurance is a financial device to
spread the risks and losses of few people among a large number of
people, as people prefer small fixed liability instead of big,
uncertain and changing liability.Insurance can be defined as a
legal contract between two parties whereby one party called insurer
undertakes to pay a fixed amount of money on the happening of a
particular event, which may be certain or uncertain. The other
party called insured pays in exchange a fixed sum known as
premium.Insurance is desired to safeguard oneself and ones family
against possible losses on account of risks and perils. It provides
financial compensation for the losses suffered due to the happening
of any unforeseen events.
IMPORTANCE OF INSURANCE
Insurance constitutes one of the major segments of the financial
market. Insurance services play predominant role in the process of
financial intermediary. Today insurance industry is one of the most
growing sectors in India. There is lot of potential in the Indian
Insurance Industry.There are many issues, which require study. The
scope of the study of Insurance industry of India would be very
great as there are ongoing developments in the industry after the
opening of the sector
The major issue right now is the hike in FDI (Foreign Direct
Investment) limit from 26% to 49% in the insurance sector. In near
future Government may allow 49% FDI in Insurance. This would lead
to more capital inflow by foreign partners.Another major issue is
the effects on LIC after the entry of private players in the
market. Though market share of LIC has been affected, it has
improved in terms of efficiency.There are number of other hot
topics like penetration of Health Insurance, Rural marketing of
insurance, new distribution channels, new product ranges, insurance
brokers regulation, incentive scheme of development officers of LIC
etc. So it offers lot of scope for studying the insurance
industry.Right now the insurance industry has great opportunities
in countries like India or China which have huge population. Also
the penetration of insurance in India is very low in both life and
non-life segment so there is lot potential to be tapped.Before
starting the discussion on insurance industry and related issues,
we have to start with the basics of insurance. So first we
understand what is Insurance? How the word insurance is different
from the word Assurance? Etc.DIFFERENCE BETWEEN INSURANCE AND
ASSURANCE
Assurance is older in history and it was used to describe all
types of Insurance. From 1826, the term assurance came to be used
only for the risks covered by life insurance and the term insurance
was exclusively used to denote the risks covered by marine, fire,
etc.The word assurance indicated certainty. In life insurance,
there is an assurance from the insurance company to make payment
under the policy either on the maturity or at earlier death. On the
other hand the word insurance was used to denote indemnity type of
insurance where the insurance company was liable to pay only in
case of the loss damage the property.The insured event was bound to
happen sooner or later under assurance but the event insured
against may or may not happen under insurance.The principle of
indemnity applies to insurance contracts (non-life) only. The scope
of the word, insurance is wider.
PRINCIPLES OF INSURANCE
An insurance contract is based on some basic principles of
insurance.(1) Principle of utmost good faith
It means maximum truth. Both the parties should disclose all
material information regarding the subject matter of Insurance.
(2) Principle of indemnity
This means that if the insured suffers a loss against which the
policy has been made, he shall be fully indemnified only to the
extent of loss. In other words, the insured is not entitled to make
a profit on his loss.
(3) Principle of subrogation
This means the insurer has the right to stand in the place of
the insured after settlement of claims in so far as the insureds
right of recovery from an alternative source is involved. The
insurer before the settlement of the claim may exercise the right.
In other words, the insurer is entitled to recover from a negligent
third party any loss payments made to the insured. The purposes of
subrogation are to hold the negligent person responsible for the
loss and prevent the insured from collecting twice for the same
loss. The concept of Third Party Claims is based on the same
principle.
(4) Principle of causa proxima
The cause of loss must be direct and an insured one in order to
claim of compensation.
(5) Principle of insurable interest
The assured must have insurance interest in the life or property
insured. Insurable interest is that interest which considerably
alters the position of the assured in the event of loss taking
place and if the event does not take placed, he remains in the same
old position.
1.2 HISTORY OF INSURANCE
The concept of insurance is believed to have emerged almost 4500
years ago in the ancient land of Babylonia where traders used to
bear risk of the carvan by giving loans, which were later repaid
with interest when the goods arrived safely.The concept of
insurance as we know today took shape in 1688 at a place called
Lloyds Coffee House in London where risk bearers used to meet to
transact business. This coffee house became so popular that Lloyds
became the one of the first modern insurance companies by the end
of the eighteenth century.Marine insurance companies came into
existence by the end of the eighteenth century. These companies
were empowered to write fire and life insurance as well as marine.
The Great Fire of London in 1966 caused huge loss of property and
life. With a view to providing fire insurance facilities, Dr.
Nicholas Barbon set up in 1967 the first fire insurance company
known as the Fire Office.The early history of insurance in India
can be traced back to the Vedas. The Sanskrit term Yogakshema
(meaning well being), the name of Life Insurance Corporation of
Indias corporate headquarters, is found in the Rig Veda. The Aryans
practiced some form of community insurance around 1000 BC.Life
insurance in its modern form came to India from England in 1818.
The Oriental Life Insurance Company was the first insurance company
to be set up in India to help the widows of European community. The
insurance companies, which came into existence between 1818 and
1869, treated Indian lives as subnormal and charged an extra
premium of 15 to 20 percent. The first Indian insurance company,
the Bombay Mutual Life Assurance Society, came into existence in
1870 to cover Indian lives at normal rates.The Insurance Act, 1938,
the first comprehensive legislation governing both life and
non-life branches of insurance were enacted to provide strict state
control over insurance business. This amended insurance Act looked
into investments, expenditure and management of these companies.By
the mid- 1950s there were 154 Indian insurers, 16 foreign insurers,
and 75 provident societies carrying on life insurance business in
India. Insurance business flourished and so did scams,
irregularities and dubious investment practices by scores of
companies. As a result the government decided to nationalize the
life assurance business in India. The Life Insurance Corporation of
India (LIC) was set up in 1956. The nationalization of life
Insurance was followed by general insurance in 1972.
TIME LINE IN INSURANCE HISTORY (MAJOR LANDMARKS)
1818: British introduced the life insurance to India with the
establishment of the Oriental Life Insurance Company in Calcutta.
1850: Non life insurance started with Triton Insurance Company.
1870: Bombay Mutual Life Assurance Society is the first India
owned life insurer. 1912: The Indian Life Assurance Company Act
enacted to regulate the life insurance business. 1938: The
Insurance Act was enacted. 1956: Nationalization took place.
Government took over 245 Indian and foreign insurers and provident
societies. 1972: Non-life business nationalized, General Insurance
Corporation (GIC) came into being. 1993: Malhotra committee was
constituted under the chairmanship of former RBI chief R. N.
Malhotra to draw a blue print for insurance sector reforms. 1994:
Malhotra committe recommended reentry of private players. 1997:
IRDA (Insurance Regulatory and Development Authority) was set up as
a regulator of the insurance market in India. 2000: IRDA started
giving license to private insurers. ICICI Prudential, HDFC were
first private players to sell Insurance Policies. 2001: Royal
Sundaram was the first non-life private player to sell an insurance
policy. 2002: Bank allowed selling insurance plans as TPAs enter
the scene, insurers start setting non-life claims in the cashless
mode. 1.3 MEANING OF LIFE INSURANCE
There are three parties in a life insurance transaction: the
insurer, the insured, and the owner of the policy (policyholder),
although the owner and the insured are often the same person.
Another important person involved in a life insurance policy is the
Beneficiary. The beneficiary is the person or persons who will
receive the policy proceeds upon the death of the insured.
Life insurance may be divided into two basic classes term and
permanent. Term life insurance provides for life insurance coverage
for aspecified term of years for a specified premium. The policy
does not accumulate cash value. Permanent life insurance is life
insurance that remains in force until the policy matures, unless
the owner fails to pay the premium when it is due. Whole life
insurance provides for a level premium, and a cash value table
included in the policy guaranteed by the company. The primary
advantages of whole life are guaranteed death benefits, guaranteed
cash values, fixed and known annual premiums, mortality and expense
charges will not reduce the cash value shown in the policy.
Universal life insurance (UL) is a relatively new insurance product
intended to provide permanent insurance coverage with greater
flexibility in premium payment and the potential for a higher
internal rate of return. A universal life policy includes a cash
account. Premiums increase the cash account. If you want insurance
protection only, and not a savings and investment product, buy a
term life insurance policy. If you want to buy a whole life,
universal life, or other cash value policy, plan to hold it for at
least 15 years. Canceling these policies after only a few years can
more than double your Life insurance costs.NEED FOR LIFE
INSURANCE
You need Life Insurance because typically the need for income
continues for those who are financially dependent on you, but there
is no guarantee of your ability to earn consistently and for the
rest of your life. Life insurance can help you safeguard the
financial needs of your family.
This need has become even more important due to steady
disintegration of the prevalent joint family system, and emergence
of nuclear families. The need to protect your family's ever growing
needs is why you need Life Insurance.
Why Do I Need Life Insurance?Thats a common question. Why would
you need Insurance? Simply put, Life brings with it many surprises,
some pleasant and some not so and a Life Insurance Plan ensures
that you are better prepared to face uncertainties. How? In a
number of ways:
ProtectionYou need life insurance to be there and protect the
people you love, making sure that your family has a means to look
after itself after you are gone. It is a thoughtful business
concept designed to protect the economic value of a human life for
the benefit of those financially dependent on him. Thats a good
reason. Supposing you suffer an injury that keeps you from earning?
Would you like to be a financial burden on your family, already
losing out on your salary? With a life insurance policy, you are
protected. Your family is protected.
RetirementLife insurance makes sure that you have regular income
after you retire and also helps you maintain your standard of
living. It can ensure that your post-retirement years are spent in
peace and comfort.
Savings and InvestmentsInsurance is a means to Save and Invest.
Your periodic premiums are like Savings and you are assured of a
lump sum amount on maturity. A policy can come in really handy at
the time of your childs education or marriage! Besides, it can be
used as supplemental retirement income!
Tax BenefitsLife insurance is one of the best tax saving options
today. Your tax can be saved twice on a life insurance policy-once
when you pay your premiums and once when you receive maturity
benefits. Money saved is money earned!
HISTORY OF LIFE INSURANCE
Risk protection has been a primary goal of humans and
institutions throughout history. Protecting against risk is what
insurance is all about. Over 5000 years ago, in China, insurance
was seen as a preventative measure against piracy on the sea.
Piracy, in fact, was so prevalent, that as a way of spreading the
risk, a number of ships would carry a portion of another ship's
cargo so that if one ship was captured, the entire shipment would
not be lost.In another part of the world, nearly 4,500 years ago,
in the ancient land of Babylonia, traders used to bear risk of the
caravan trade by giving loans that had to be later repaid with
interest when the goods arrived safely. In 2100 BC, the Code of
Hammurabi granted legal status to the practice. It formalized
concepts of bottomry referring to vessel bottoms and respondent
referring to cargo. These provided the underpinning for marine
insurance contracts. Such contracts contained three elements: a
loan on the vessel, cargo, or freight; an interest rate; and a
surcharge to cover the possibility of loss. In effect, ship owners
were the insured and lenders were the underwriters.
Life insurance came about a little later in ancient Rome, where
burial club swere formed to cover the funeral expenses of its
members, as well as help survivors monetarily. With Rome's fall,
around 450 A.D., most of the concepts of insurance were abandoned,
but aspects of it did continue through the Middle Ages,
particularly with merchant and artisan guilds. The seprovided forms
of member insurance covering risks like fire, flood, theft,
disability, death, and even imprisonment.During the feudal period,
early forms of insurance ebbed with the decline of travel and
long-distance trade. But during the 14th to 16th centuries,
transportation, commerce, and insurance would again reemerge
Insurance in India can be traced back to the Vedas. For
instance,Yogakshema, the name of Life Insurance Corporation of
India's corporate headquarters is derived from the Rig Veda. The
term suggests that a form of" community insurance" was prevalent
around 1000 BC and practiced by the Aryans And similar to ancient
Rome, burial societies were formed in the Buddhist period to help
families build houses, and to protect widows and children.
Modern Insurance
Illegal almost everywhere else in Europe, life insurance in
England was vigorously promoted in the three decades following the
Glorious Revolution of 1688. The type of insurance we see today
owes its roots to 17th century England. Lloyd's of London, or as
they were known then, Lloyd's Coffee House, was the location where
merchants, ship owners and underwriters met to discuss and transact
business deals.While serving as a means of risk-avoidance, life
insurance also appealed strongly to the gambling instincts of
England's burgeoning middle class. Gambling was so rampant, in
fact, that when newspapers published names of prominent people who
were seriously ill, bets were placed at Lloyds on their anticipated
dates of death. Reacting against such practices, 79 merchant
underwriters broke away in 1769 and two years later formed a New
Lloyds Coffee House that became known as the real Lloyds. Making
wagers on people's deaths ceased in 1774 when parliament forbade
the practice.Insurance Moves to AmericaThe U.S. insurance industry
was built on the British model. The year 1735 saw the birth of the
first insurance company in the American colonies in Charleston, SC.
The Presbyterian Synod of Philadelphia in 1759, sponsored the first
life insurance corporation in America for the benefit of ministers
and their dependents. And the first life insurance policy for the
general public in the United States was issued, in Philadelphia, on
May 22, 1761. But it wasn't until 80 years later (after 1840), that
life insurance really took off in a big way. The key to its success
was reducing the opposition from religious groups.In 1835, the
infamous New York fire drew people's attention to the need to
provide for sudden and large losses. Two years later, Massachusetts
became the first state to require companies by law to maintain such
reserves. The great Chicago fire of 1871 further emphasized how
fires can cause huge losses in densely populated modern cities. The
practice of reinsurance, wherein the risks are spread among several
companies, was devised specifically for such situations.With the
creation of the automobile, public liability insurance, which first
made its appearance in the 1880s, gained importance and acceptance?
More advancement was made to insurance during the process of
industrialization. In 1897, the British government passed the
Workmen's Compensation Act, which made it mandatory for a company
to insure its employees against industrial accidents.During the
19th century, many societies were founded to insure the life and
health of their members, while fraternal orders provided low-cost,
members only insurance. Even today, such fraternal orders continue
to provide Insurance coverage to members, as do most labor
organizations. Many employers sponsor group insurance policies for
their employees, providing not just life insurance, but sickness
and accident benefits and old-age pensions. Employees contribute a
certain percentage of the premium for these policies. Final
ThoughtsEven though the American insurance industry was greatly
influenced by Britain, the US market developed somewhat differently
from that of the United Kingdom. Contributing to that was America's
size; land diversity and the overwhelming desire to be independent.
As America moved from a colonial outpost to an independent force,
from a farming country to an Industrial nation, the insurance
business developed from a small number of companies to a large
industry.Insurance became more sophisticated, offering new types of
coverage and diversified services for an increasingly complex
country. KEY FEATURES OF LIFE INSURANCE
1) Nomination: -
When one makes a nomination, as the policyholder, one continues
to be the owner of the policy and the nominee does not have any
right under the policy as long as he/she is alive. The nominee has
only the right to receive the policy money in case of your death
within the term of the policy.2) Assignment: -
If your intention is that your policy monies should go only to a
particular person, you need to assign the policy in favor of that
person.3) Death Benefit: -
The primary feature of a life insurance policy is the death
benefit it provides. Permanent policies provide a death benefit
that is guaranteed for the life of the insured, provided the
premiums have been paid and the policy has not been surrendered.4)
Cash Value: -
The cash value of a permanent life insurance policy is
accumulated throughout the term of the policy. It equals the amount
a policy owner would receive, after any applicable surrender
charges, if the policy were surrendered before the insured's
death.5) Dividends: -
Many life insurance companies issue life insurance policies that
entitle the policy owner to share in the company's divisible
surplus.6) Paid-Up Additions: -
Dividends paid to a policy owner of a participating policy can
be used in numerous ways, one of which is toward the purchase of
additional coverage, called paid-up additions.
7) Policy Loans: -
Some life insurance policies allow a policy owner to apply for a
loan against the value of their policy. Either a fixed or variable
rate of interest is charged. This feature allows the policy owner
an easily accessible loan in times of need or opportunity.8)
Conversion from Term to Permanent: -
When in need of temporary protection, individuals often purchase
term life insurance. If one owns a term policy, sometimes a
provision is available that will allow her to convert her policy to
a permanent one without providing additional proof of
insurability.9) Disability Waiver of Premium: -
Waiver of Premium is an option or benefit that can be attached
to a life insurance policy at an additional cost. It guarantees
that coverage will stay in force and continue to grow.BENEFITS OF
LIFE INSURANCE
1) Risk cover: -
Life Insurance contracts allow an individual to have a risk
cover against any unfortunate event of the future.
2) Tax Deduction: -
Under section 80C of the Income Tax Act of 1961 one can get tax
deduction on premiums up to one lakh rupees. Life Insurance
policies thus decrease the total taxable income of an individual.3)
Loans: -
An individual can easily access loans from different financial
institutions by pledging his insurance policies.4) Retirement
Planning: -
What had provided protection against the financial consequences
of premature death may now be used to help them enjoy their
retirement years. Moreover the cash value can be used as an
additional income in the old age.5) Educational Needs: -
Similar to retirement planning the cash values that flow from
ones life Insurance schemes can be utilized for educational needs
of the insurer or his children.
1.4 ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMYSECTION
45 OF THE INSURANCE ACT, 1938
No policy of life insurance effected after the coming into force
of this Act shall, after the expiry of two years from the date on
which it was effected, be called in question by an insurer on the
ground that a statement made in the proposal for insurance or in
any report of a medical officer, or referee, or friend of the
insured, or in any other document leading to the issue of the
policy, was inaccurate or false, unless the insurer shows that such
a statement was on a material matter or suppressed facts which it
was material to disclose and that it was fraudulently made by the
policyholder and that the policyholder knew at that time of making
it that the statement was false or that it suppressed facts which
it was material to disclose.
PROHIBITION OF REBATE:
SECTION 41 OF THE INSURANCE ACT, 1938
No person shall allow or offer to allow, either directly or
indirectly, as an inducement to any person to take out or renew or
continue an insurance in respect of any kind of risk relating to
lives or property in India, any rebate of the whole or part of the
commission payable or any rebate of the premium shown on the
policy, nor shall any person taking out or renewing or continuing a
policy accept any rebate, except such rebate as may be allowed in
accordance with the published prospectuses or tables of the
insurer.Any person making default in complying with the provisions
of this section shall be punishable with a fine which may extend to
five hundred rupees.
LIFE INSURANCE IS INSURANCE AS WELL AS INVESTMENT
It is the special characteristic of life insurance that it not
only provides security but is also a form of investment. The
insured not only wants to secure his family from the risk of his
death, but also wants to invest in the long term insurance plan.
Both these elements are possible in life insurance because the
insurance company promises to pay a fixed amount on the death of
the insured, or on his attaining a certain age.Element of
Protection: Life insurance is the best way of securing against
financial risks. The member of the family insures his life to
provide affixed amount security to his family in case of death and
his family been secured against any financial strain.Financial
problems not only arise on untimely death of the earning member,
but also when the earning member becomes old and his energy to work
reduces and so does his source of income also reduce. At this
stage, he wants to retire and lead a peaceful life. And if he has
no source of income at this time he shall have to depend on others,
which is a very pitiable stage in old age. That is why; a rational
man always saves for his old age, so that he doesnt have to depend
on others for maintaining himself. In such plans, insurance holds
the prime position due to the following reasons-1) He makes savings
in the form of life insurance. To pay a regular premium he has to
save necessarily. Though premium takes a form of compulsory expense
yet for depositing regular premiums he has to develop a habit of
saving.
2) The saving also remains secure in life insurance. The savings
kept in a bank account can be withdrawn anytime for expenses, but
the amount paid as premium can be received from the insurance
company only on attaining a certain age.
3) Life insurance is also a kind of indirect saving. The life
insurance policy cannot be forfeited by Income Tax department, even
after non-payment of income tax.
In this way, the element of economic security is present
entirely in a life insurance policy. It is both, an element of
protection and a helping hand in the old age.
Element of Investment: Life insurance also provides the benefit
of investment. The amount of premium consists, apart from the cost
of insurance, an amount of investment. This investment constantly
increases. And this amount of investment is called Life Fund and
represents the element of investment. The Life insurance companies
invest the amount of life fund to earn profits, and give the
benefits of such profits to the policy holder also. Firstly, while
determining the amount of net premium, the amount of interest is
deducted from the cost of insurance that constitutes interest from
the investment of premium fund. Then the insurance companies
distribute most of the part of their profits (up to 90%) to the
policyholders as bonus. The investment in Life insurance policy is
superior to other kinds of investments because here there is no
risk of loosing money and there is no need to invest the whole
amount at one time. Life insurance can be called as the best kind
of risk- free security, on whose security, lending money is also
possible. By nationalization of Life insurance in our country, the
insurance policy is guaranteed by the government by which it has
become more secure.
1.5 KINDS OF LIFE INSURANCE POLICIES
Temporary Term InsuranceTerm assurance: provides for life
insurance coverage for a specified term of years for a specified
premium. The policy does not accumulate cash value. Term is
generally considered "pure" insurance, where the premium buys
protection in the event of death and nothing else.
There are three key factors to be considered in term
insurance:
1. Face amount (protection or death benefit),
2. Premium to be paid (cost to the insured), and
3. Length of coverage (term).
Various insurance companies sell term insurance with many
different combinations of these three parameters. The face amount
can remain constant or decline. The term can be for one or more
years. The premium can remain level or increase. A common type of
term is called annual renewable term. It is a one year policy but
the insurance company guarantees it will issue a policy of equal or
lesser amount without regard to the insurability of the insured and
with a premium set for the insured's age at that time. Another
common type of term insurance is mortgage insurance, which is
usually a level premium, declining face value policy. The face
amount is intended to equal the amount of the mortgage on the
policy owners residence so the mortgage will be paid if the insured
dies.A policy holder insures his life for a specified term. If he
dies before that specified term is up, his estate or named
beneficiary receives a payout. If he does not die before the term
is up, he receives nothing. In the past these policies would almost
always exclude suicide. However, after a number of court judgments
against the industry, payouts do occur on death by suicide
(presumably except for in the unlikely case that it can be shown
that the suicide was just to benefit from the policy). Generally,
if an insured person commits suicide within the first two policy
years, the insurer will return the premiums paid. However, a death
benefit will usually be paid if the suicide occurs after the two
year period.Permanent Life Insurance
Permanent life insurance is life insurance that remains in force
(in-line) until the policy matures (pays out), unless the owner
fails to pay the premium when due (the policy expires OR policies
lapse). The policy cannot be canceled by the insurer for any reason
except fraud in the application, and that cancellation must occur
within a period of time defined by law (usually two years).
Permanent insurance builds a cash value that reduces the amount at
risk to the insurance company and thus the insurance expense over
time. This means that a policy with a million dollar face value can
be relatively expensive to a 70 year old. The owner can access the
money in the cash value by withdrawing money, borrowing the cash
value, or surrendering the policy and receiving the surrender
value.
The four basic types of permanent insurance are whole life,
universal life, limited pay and endowment.
WHOLE LIFE COVERAGEWhole life insurance provides for a level
premium, and a cash value table included in the policy guaranteed
by the company. The primary advantages of whole life are guaranteed
death benefits; guaranteed cash values, fixed and known annual
premiums, and mortality and expense charges will not reduce the
cash value shown in the policy. The primary disadvantages of whole
life are premium inflexibility, and the internal rate of return in
the policy may not be competitive with other savings alternatives.
Also, the cash values are generally kept by the insurance company
at the time of death, the death benefit only to the beneficiaries.
Riders are available that can allow one to increase the death
benefit by paying additional premium. The death benefit can also be
increased through the use of policy dividends. Dividends cannot be
guaranteed and may be higher or lower than historical rates over
time. Premiums are much higher than term insurance in the
short-term, but cumulative premiums are roughly equal if policies
are kept in force until average life expectancy.Cash value can be
accessed at any time through policy "loans". Since these loans
decrease the death benefit if not paid back, payback is optional.
Cash values are not paid to the beneficiary upon the death of the
insured; the beneficiary receives the death benefit only. If the
dividend option: Paid up additions is elected, dividend cash values
will purchase additional death benefit which will increase the
death benefit of the policy to the named beneficiary.
UNIVERSAL LIFE COVERAGEA universal life insurance policy
includes a cash account. Premiums increase the cash account.
Interest is paid within the policy (credited) on the account at a
rate specified by the company. Mortality charges and administrative
costs are then charged against (reduce) the cash account. The
surrender value of the policy is the amount remaining in the cash
account less applicable surrender charges, if any.With all life
insurance, there are basically two functions that make it work.
There's a mortality function and a cash function. The mortality
function would be the classical notion of pooling risk where the
premiums paid by everybody else would cover the death benefit for
the one or two who will die for a given period of time. The cash
function inherent in all life insurance says that if a person is to
reach age 95 to 100 (the age varies depending on state and
company), then the policy matures and endows the face value of the
policy.Actuarially, it is reasoned that out of a group of 1000
people, if even 10 of them live to age 95, then the mortality
function alone will not be able to cover the cash function. So in
order to cover the cash function, a minimum rate of investment
return on the premiums will be required in the event that a policy
matures.Universal life insurance addresses the perceived
disadvantages of whole life. Premiums are flexible. Depending on
how interest is credited, the internal rate of return can be higher
because it moves with prevailing interest rates
(interest-sensitive) or the financial markets (Equity Indexed
Universal Life and Variable Universal Life). Mortality costs and
administrative charges are known. And cash value may be considered
more easily attainable because the owner can discontinue premiums
if the cash value allows it. And universal life has a more flexible
death benefit because the owner can select one of two death benefit
options, Option A and Option B.Option A pays the face amount at
death as it's designed to have the cash value equal the death
benefit at maturity (usually at age 95 or 100). With each premium
payment, the policy owner is reducing the cost of insurance until
the cash value reaches the face amount upon maturity.Option B pays
the face amount plus the cash value, as it's designed to increase
the net death benefit as cash values accumulate. Option B offers
the benefit of an increasing death benefit every year that the
policy stays in force. The drawback to option B is that because the
cash value is accumulated "on top of" the death benefit, the cost
of insurance never decreases as premium payments are made. Thus, as
the insured gets older, the policy owner is faced with an ever
increasing cost of insurance (it costs more money to provide the
same initial face amount of insurance as the insured gets
older)
LIMITED-PAYAnother type of permanent insurance is Limited-pay
life insurance, in which all the premiums are paid over a specified
period after which no additional premiums are due to keep the
policy in force. Common limited pay periods include 10-year,
20-year, and paid-up at age 65.Endowments are policies in which the
cash value built up inside the policy, equals the death benefit
(face amount) at a certain age. The age this commences is known as
the endowment age. Endowments are considerably more expensive (in
terms of annual premiums) than either whole life or universal life
because the premium paying period is shortened and the endowment
date is earlier.
In the United States, the Technical Correct Limited-payAnother
type of permanent insurance is Limited-pay life insurance, in which
all the premiums are paid over a specified period after which no
additional premiums are due to keep the policy in force. Common
limited pay periods include 10-year, 20-year, and paid-up at age
65.
ENDOWMENTSEndowments are policies in which the cash value built
up inside the policy, equals the death benefit (face amount) at a
certain age. The age this commences is known as the endowment age.
Endowments are considerably more expensive (in terms of annual
premiums) than either whole life or universal life because the
premium paying period is shortened and the endowment date is
earlier.
In the United States, the Technical Corrections Act of 1988
tightened the rules on tax shelters (creating modified endowments).
These follow tax rules as annuities and IRAs do.
Endowment Insurance is paid out whether the insured lives or
dies, after a specific period (e.g. 15 years) or a specific age
(e.g. 65).
Accidental DeathAccidental death is a limited life insurance
that is designed to cover the insured when they pass away due to an
accident. Accidents include anything from an injury, but do not
typically cover any deaths resulting from health problems or
suicide. Because they only cover accidents, these policies are much
less expensive than other life insurances.It is also very commonly
offered as "accidental death and dismemberment insurance", also
known as an AD&D policy. In an AD&D policy, benefits are
available not only for accidental death, but also for loss of limbs
or bodily functions such as sight and hearing, etc.Accidental death
and AD&D policies very rarely pay a benefit; either the cause
of death is not covered, or the coverage is not maintained after
the accident until death occurs. To be aware of what coverage they
have, an insured should always review their policy for what it
covers and what it excludes. Often, it does not cover an insured
that puts himself at risk in activities such as: parachuting,
flying an airplane, professional sports, or involvement in a war
(military or not). Also, some insurers will exclude death and
injury caused by proximate causes due to (but not limited to)
racing on wheels and mountaineering.Accidental death benefits can
also be added to a standard life insurance policy as a rider. If
this rider is purchased, the policy will generally pay double the
face amount if the insured dies due to an accident. This used to be
commonly referred to as double indemnity coverage. In some cases,
some companies may even offer a triple indemnity cover.
NATIONALISATION OF LIFE INSURANCE IN INDIA
On 19th January, 1956, the Indian Government issued an emergency
ordinance, whose objective was to nationalize life insurance. As a
result of this ordinance, the business of life insurance which was
in the hands of private sector organizations at that time now came
in the hands of the Government of India.At the time of
nationalization, in our country 154 Indian Insurance companies, 16
foreign insurance companies and 75 private insurance societies were
working in the Insurance business.In June 1956, an Act by the name
of Life Insurance Corporation Act, 1956 was passed in the
Parliament, which came into force from 1st July 1956 in India. As a
result of this Act, a Government organization was established which
is known as Life Insurance Corporation of India. The Life Insurance
Corporation started the insurance business from 1st September,
1956.Reasons or Objectives of Nationalisation1) To arrange funds
for Five Year Plans of the Government of India.
2) To widely propagate Life Insurance even in villages and small
towns.
3) To eliminate unhealthy competition among Private Insurance
Companies.
4) To end mismanagement, spread in Private Insurance
Companies.
5) To increase the per person insured amount.
6) To establish a socialist society, to give maximum benefits to
the society.
7) To reduce the wasteful administrative expenses of the Private
Insurance Companies.
8) To secure the interests of small insured persons.
9) To create a sense of saving among people.
10) To utilize the Life Insurance Fund properly.
11) To end the delays in payments on maturity to insured by
Private Insurance Companies.
12) To decentralize economic and financial power from the hands
of Private Insurance Companies.
2. INTRODUCTION TO THE ORGANIZATIONBajaj Allianz Life Insurance
is a union between Allianz SE, one of the largest Insurance Company
and Bajaj Finserv. (Recently demerged from Bajaj Auto.)
Allianz SE is a leading insurance conglomerate globally and one
of the largest asset managers in the world, managing assets worth
over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has over
115 years of financial experience and is present in over 70
countries around the world.
At Bajaj Allianz Life Insurance, customer delight is our guiding
principle. Our business philosophy is to ensure excellent insurance
and investment solutions by offering customized products, supported
by the best technology.
It started in 2001.Financial services arm's profit rises to Rs
42 crore
BS Reporter / MumbaiJuly 16, 2009, 0:40 IST
Bajaj Finserv, the financial services arm of the Bajaj Group,
posted a net profit of Rs 42 crore for the quarter ended June 30,
2009. It had posted a loss of Rs 36 crore in the corresponding
period last year.
The groups life insurance arm, Bajaj Allianz Life Insurance
Company, was the biggest contributor to the firms income. Bajaj
Allianz has posted a profit of Rs 68 crore in the June quarter. In
the year-ago quarter, it had posted a loss of Rs 3 crore.
Gross written premium for the quarter rose 40 per cent to Rs
2,001 crore as against Rs 1,847 crore in the corresponding period
last year. Renewal premium, too, increased to Rs 1,423 crore as
against Rs 1,018 crore in the quarter ended June 30, 2008. However,
new business premium fell 42.28 per cent to Rs 577 crore.
2.1 ALLIANZ GROUP
Allianz Group is one of the world's leading insurers and
financial services providers.
Founded in 1890 in Berlin, Allianz is now present in over 70
countries with almost 174,000 employees. At the top of the
international group is the holding company, Allianz AG, with its
head office in Munich.
Allianz Group provides its more than 60 million customers
worldwide with a comprehensive range of services in the areas
of
Property and Casualty Insurance,
Life and Health Insurance,
Asset Management and Banking.
Allianz Ag- A Global Financial Powerhouse Worldwide 2nd by Gross
Written Premiums - Rs.4, 46,654 crore.
3rd largest Assets under Management (AUM) & largest amongst
Insurance cos. - AUM of Rs.51, 96,959 crore.
12th largest corporation in the world
49.8 % of global business from Life Insurance
Established in 1890, 110 yrs of Insurance expertise
70 countries, 173,750 employees worldwide
2.2 BAJAJ GROUP
Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj
group is the largest manufacturer of two-wheelers and
three-wheelers in India and one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand image
& brand loyalty synonymous with quality & customer
focus.
A STRONG INDIAN BRAND- HAMARA BAJAJ
One of the largest 2 & 3 wheeler manufacturer in the
world
21 million+ vehicles on the roads across the globe
Managing funds of over Rs 4000 cr.
Bajaj Auto finance one of the largest auto finance cos. in
India
Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03
It has joined hands with Allianz to provide the Indian consumers
with a distinct option in terms of life insurance products.
As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj
Auto has the following to offer -
Financial strength and stability to support the Insurance
Business.
A strong brand-equity.
A good market reputation as a world class organization.
An extensive distribution network.
Adequate experience of running a large organization.
Accelerated Growth
Fiscal YearNo. of policies soldNew Business in FY
2001-2002(6 months)
21,37
Rs. 7 cr.
2002-2003
1,15,965
Rs. 63.3 cr.
2003-2004
1,86,443
Rs. 180 cr.
2004-2005
2,88,189
Rs. 857 cr.
2005-2006
7,81,685
Rs. 2,717 cr.
2006-2007
20,79,217
Rs. 4,302 cr.
2007-2008
37,44,742
Rs. 6,674 cr.
2.3 MISSION OF THE COMPANYIndia has 102 crore population but
only 16 crore people are insured till now. Still 86 crore
People are yet to be insured. Also in broader perspective,
company wants to make every person get benefited through investing
in Bajaj Allianz Life Insurance.The Company is focusing on
improving employee productivity, policy persistency, operational
processes and service levels.2.4 VISION OF THE COMPANY1) To be the
first choice insurer for customers.
2) To be the preferred employer for staff in Insurance
industry.
3) To be the number one insurer for creating shareholder
value
4) To aspire to be a world class organization.
5) To encourage organizational transparency.
6) To value integrity.
2.5 HISTORY OF THE COMPANYBajaj Allianz Life Insurance Co.
Ltd.is a joint venture between two leading conglomerates- Allianz
AG, one of the world's largest insurance companies, and Bajaj Auto,
one of the biggest 2 and 3 wheeler manufacturers in the world.
Characterized by global presence with a local focus and driven by
customer orientation to establish high earnings potential and
financial strength, Bajaj Allianz Life Insurance Co. Ltd. was
incorporated on 12th March 2001. The company received the Insurance
Regulatory and Development Authority (IRDA) certificate of
Registration (R3) No 116 on 3rd August 2001 to conduct Life
Insurance business in India. Bajaj Auto Ltd, the flagship company
of the Rs. 8000 crore Bajaj group is the largest manufacturer of
two-wheelers and three-wheelers in India and one of the largest in
the world. A household name in India, Bajaj Auto has a strong brand
image & brand loyalty synonymous with quality & customer
focus. With over 15,000 employees, the company is a Rs. 4000 crore
auto giant, is the largest 2/3-wheeler manufacturer in India and
the 4th largest in the world. AAA rated by Crisil, Bajaj Auto has
been in operation for over 55 years. It has joined hands with
Allianz to provide the Indian consumers with a distinct option in
terms of life insurance products.Head, Marketing- Mr. Sanjay
Jain
BOARD OF DIRECTORS:
Mr. Rahul Bajaj (Chairman)
Dr. Werner Zedelius
Mr. Sanjay Asher
Mr. Niraj Bajaj
Mr. Sanjiv Bajaj
Mr. Heinz Dollberg
Mr. Ranjit Gupta
Mr. S. H. Khan
Mr. Suraj Mehta
Mr. Dietmar Raich
Mr. Manu Tandon
Mr. Kamesh Goyal (Alternate Director to Dr. Werner Zedelius)
Head Office Address:
Bajaj Allianz Life Insurance Company Limited
GE Plaza, Airport Road, Yerawada, Pune-411006 Maharashtra
Telephone: (+91 20) 66026777
CHANNEL PARTNERS OF BAJAJ ALLIANZ
Standard Chartered Bank
Contact Number : 022 2492 8888
E-mail Address: [email protected]
Standard Chartered Bank
Syndicate Bank
Contact Number : 020 4026 742
E-mail Address: [email protected]
www.syndicatebank
Placement Sales and Services Ltd.
Contact Number : 0487-2388666,2385922 Tele Fax - 2388666
E-mail Address: [email protected]
Address: Regency Centre, Kalavary Road, West Fort, Thrissur 4
Kerala, India
Team Life Care Co. (India) Ltd.
www.teamlifecare.in
Contact Number : 0427 - 2410707; 2420707; Tele Fax - 2421245
Address: 5/118, Yercaud Main Road, Chinnakollapatti, SALEM -
636008.
Ernestine Consultants Pvt Ltd.
Contact Number : 080- 4034 1999 Fax- 080 - 4034 1920
Address: 1011, Ist Floor 3rd Cross, 13th Main HAL 2nd Stage,
Indira Nagar Bangalore-560038
Organizational chart
Branch Manager
V
V
Business Development Manager (B.D.M.)
V
V
Assistant Business Development Manager (A.B.D.M.)
V
V
Insurance Sales Officer (I.S.O.)
3 RESEARCH METHODOLOGIES
Research methodology is a way to systematically solve the
research problem. Research methodology constitutes of research
methods, selection criterion of research methods, used in context
of research study and explanation of using of a particular method
or technique so that research results are capable of being
evaluated either by researcher himself or by others. Why a research
study has been undertaken, how the research problem has been
formulated, why data have been collected and what particular
technique of analyzing data has been used and a best of similar
other question are usually answered when we talk of Research
methodology concerning a research problem or study. The main aim of
research is to find out the truth which is hidden and which has not
been discovered as yet.
The area of the study related with informing different people
about life insurance policies in the region of jaipur.
3.1 Title of the Study PRODUCTS OF BAJAJ ALLIANZ LIFE
INSURANCE
1) BAJAJ ALLIANZ NEW FAMILYGAIN
The thumb rule for buying insurance is that your insurance needs
are minimal in your early earning years, increases with added
responsibilities (Marriage, children, loans etc.) and taper off by
the time you retire. It is difficult to find a single insurance
plan that can take care of all your changing requirements in life
additional protection, more money to invest, sudden requirement of
cash or a steady post-retirement income.With Bajaj Allianz New
Family Gain, you can invest in one life insurance plan that can
take care of all your changing requirements. This plan has been
designed to provide you with maximum flexibility, so that you do
not have to worry about your changing needs.The Bajaj Allianz New
Family Gain comes with a host of features to allow you to have the
best of all worlds - Protection and Investments. It enables every
participant to create a solid financial protection and savings plan
for himself and his family. In this way, as a participant in the
Bajaj Allianz New Family Gain Plan, you can secure your well-being
and accumulate savings towards financial independence and a
comfortable retirement.
The Key Features of the New Family Gain Plan are:
It is a unit linked Endowment type plan with a minimum term of
10 years and maximum maturity age 70 years.
Guaranteed death benefit: Sum Assured Plus Fund Value of
Units.
You have the option to choose a host of additional rider
benefits: UL
Accidental Death Benefit, UL Accidental Permanent Total/Partial
Disability Benefit.
It provides you with an easy, regular contribution mechanism to
assist you in accumulating funds.
You can select an investment strategy to grow the funds
contributed.
Choice of 7 investment funds today with flexible investment
management: you can change funds at any time and also invest in the
newer funds that would be introduced from time to time.
The premiums allocated are invested in fund/funds of your choice
(depending on the allocation rate) and units are allocated
depending on the price of units for the fund/funds. The value of
your policy is the total value of units that you hold in the
fund/funds. The insurance cover charges, policy administration
charges and the additional rider benefit charges are deducted
through monthly cancellation of units. The Fund Management Charge
is priced in the unit value.You can choose a Sum Assured (Level of
Protection) that you want in the New Family Gain Plan.
Minimum Sum Assured = 5 times of Annualized Premium
Maximum Sum Assured = Policy Term times of Annualized
Premium
Death Benefit:
The death benefit will be
1) On death before attaining the age of 7 year: The death
benefit will be the NAV of the units in the policyholder's account
(Fund Value) as on date of
receipt of intimation of death at the office. The policy
terminates on the death of the life assured.
2) On death on or after attaining the age of 7 years: The death
benefit will be the sum assured plus the NAV of the units in the
policyholder's account (Fund value) as on date of receipt of
intimation of death at the office.
Maturity Benefit
On maturity, the NAV of units in the fund will be paid out and
the policy will terminate.
Additional Rider Benefits available with
New Family Gain
You have the option to add the following additional rider
benefits, providing total protection against uncertainties.
UL Accidental Death Benefit
UL Accidental Permanent Total & Partial Disability
Benefit
(Please refer to the brochure on additional rider benefits for
more details.)
Assured protection even if you miss payment of your premiums
Bajaj Allianz New Family Gain provides you with the unique
feature of continued protection even if you forget to pay your
premiums. After payment of 3 full years' premiums, when premiums
due are not paid the policy will be kept in-force, with full
insurance benefits by way of deducting units for the Cost of
Insurance and all other charges, provided the Fund Value less
surrender charge, if any does not falls to an amount equivalent to
one annual premium under the policy.
Bajaj Allianz New Family Gain offers you a choice of 7 funds.
You can choose to invest fully in any one fund or allocate your
premiums into the various Funds in a proportion that suits your
investment needs.
TAX BENEFITS
Premiums paid and benefits received will be eligible for tax
benefits as per applicable tax laws.
As per the current tax laws:
Premiums payable are eligible for tax benefits as per Section
80C of the Income Tax Act.
Partial Withdrawals, Surrender Value, Death Benefit and Maturity
Benefit are eligible for tax benefits as per Section 10(10D) of the
Income Tax Act.In case of change in any tax laws relevant to the
policyholder or the fund performance, the same will be applied as
per regulations prevailing at that point of time.
RISK OF INVESTMENT UNDER UNIT LINKED PLANS
The Proposed/Life Assured is aware that the investment in the
Units is subject to the following, amongst other risks and agrees
that he is making the investment in the Units with full knowledge
of the same. Unit Linked Life Insurance products are different from
the traditional insurance products and are subject to the risk
factors.
The premium paid in unit linked life insurance policies are
subject to investment risks associated with capital markets and the
Unit Price of the units may go up or down based on the performance
of the fund and factors influencing the capital market and the
insured/policyholder are responsible for his/her decisions.
Bajaj Allianz Life Insurance is only the name of the insurance
company and Bajaj Allianz New Family Gain is only the name of the
policy and does not in any way indicates the quality of the policy,
its future prospects or returns.
Please know the associated risks and the applicable charges from
your policy document or by consulting the Company, your Insurance
agent or your Insurance intermediary.
Pure Stock Fund, Equity Index Fund II, Bond Fund, Asset
Allocation Fund, Accelerator Mid-Cap Fund, Equity Growth Fund and
Liquid Fund are the names of the funds offered currently with Bajaj
Allianz New Family Gain, and in any manner do not indicate the
quality of the respective funds, their future prospects or
returns.
The investments in the Units are subject to market and other
risks and there can be no assurance that the objectives of any of
the funds will be achieved.
Pure Stock Fund, Equity Index Fund II, Bond Fund, Asset
Allocation Fund, Accelerator Mid-Cap Fund, Equity Growth Fund and
Liquid Fund do not offer a guaranteed or assured return.
All benefits payable under the Policy are subject to the tax
laws and other financial enactments, as they exist from time to
time.
The past performance of other funds of the company is not
necessarily indicative of the future performance of any of these
funds.
Important details of the plan:
Minimum Age at Entry: 0 years (Risk commences at age 7)Maximum
Age at Entry: 60 years
Minimum Age at Maturity: 18 years
Maximum Age at Maturity: 70 years
Minimum Term: 10 years. For minor lives: 18 minus age at entry
of minor life subject to minimum of 10 years.
The minimum age at entry for all additional rider benefits is 18
years.
The maximum age at entry for all additional rider benefits is 50
years.
For your convenience, we have provided 3 premium payment modes
that can be Yearly, Half-Yearly, and Quarterly. We also offer a
Monthly premium payment mode with salary deduction schemes or ECS.
The minimum premium is Rs. 5000 for the Yearly Mode, Rs. 2,500 for
Half Yearly, Rs. 1,250 for Quarterly and Rs. 500 for the Monthly
Mode. In addition, you also have the option to pay topups to
increase your investments. The minimum top-up premium is Rs.
1,000.If any due regular premium is not paid within the days of
grace in the first three policy years, the policy shall lapse. The
policyholder will get an opportunity to revive the policy within
two years from the date of first unpaid premium, and if he does not
revive during this period the contract shall be terminated and the
surrender value will be the fund value as on date of lapse less
surrender charge, if any. This would be paid on the expiry of the
revival period or three policy years, whichever is later.If policy
is lapsed and death occurs during this period, the fund value as on
date of lapse would be paid and the policy will terminate
immediately.If all the due premiums have been paid for at least
first three consecutive years and subsequent premiums are unpaid,
you will be given an opportunity to revive the policy within two
years from the first unpaid premium. During this limited period for
revival, the insurance covers under the policy shall continue
levying all appropriate charges by cancellation of units at the
prevailing unit price to meet the mortality charge and other
expense charges until the Fund value in respect of Regular Premium
less surrender charge, if any, falls to an amount equivalent to one
annual premium (NAV) across all the funds.At the end of two years
i.e. period for revival, if the contract is not revived, you can
opt to continue the insurance cover under the policy subject to
deduction of all charges until the Fund value in respect of Regular
Premium less surrender charge, if any, falls to an amount
equivalent to one annual premium (NAV) across all the funds.If you
do not opt to continue with the insurance cover after the revival
period, the contract shall be terminated by paying the fund value
as on date of termination less surrender charge, if any.When the
Fund value in respect of Regular Premium less surrender charge, if
any, falls to an amount equivalent to one annual premium you will
be notified about this and the contract shall be terminated by
paying the fund value as on date of termination less surrender
charge, if any.2) NEW UNIT GAIN
This product is similar to New Family Gain but in this product
the minimum premium that is to be paid is Rs. 10, 000 and there is
no limit for maximum premium. The Sum assured is five times the
premium amount.
Both these products (New Family Gain and New Unit Gain) were
started from 1st July 2006.
Key highlights of Bajaj Allianz New Unit Gain
Your investment, apart from normal allocation receives Loyalty
units
Equivalent to 51% of the first years Annualized Premium over a
period of 10 years.
Choice of 2 investment portfolio strategies to manage your
investments
Better.
Your Policy continues to participate in the investment
performance of the fund(s), even if you are not able to pay 3 full
years premiums.
Maximum flexibility:
Option to increase the premium
Partial withdrawal anytime after 3 years from the commencement
of the policy, provided 3 years regular premiums have been
paid.
Three free switches every year.
Option to pay unlimited top-up premiums anytime during the
tenure of the policy, to further enhance your savings.
Three simple terms to choose from: 15, 20 and 25 years.
A host of additional rider benefits to provide you with
additional protection.
Guaranteed Life Cover, with flexibility to choose insurance
cover to suit your changing needs.
3) PENSION GUARANTEE
Your date of retirement is closing in. You want something that
gives you an assured income long after youre retired. We at Bajaj
Allianz Life Insurance are aware of this need, and have come up
with a plan that lasts you for a lifetime. Invest your savings in
the Bajaj Allianz Pension Guarantee, a plan that gives you a
guaranteed income, till your time comes.
The Bajaj Allianz Pension Guarantee Plan
With Bajaj Allianz Pension Guarantee, you can ensure a regular
income after retirement.
The plan offers you a range of immediate annuities to choose
from. The immediate annuities available are:
Bajaj Allianz Pension Guarantee- Life Annuity: Annuity for
Life
Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 5 years
and life thereafter
Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 10
years and life thereafter
Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 15
years and life thereafter
Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 20
years and life thereafter
Bajaj Allianz Pension Guarantee-Return of Capital: Annuity for
life with Return of
Capital (Purchase Price)
How does Bajaj Allianz Pension Guarantee work?
All you have to do is pay a lump sum amount to Bajaj Allianz
Life Insurance Company and the annuity payments will start after
expiry of monthly/quarterly/half-yearly/ yearly interval
corresponding to the payment mode selected by you. Under all the
options, annuity is payable for life, so you do not have to worry
about your income stopping at any stage. Under the Return of
Capital option (option 6 above), the amount used to purchase the
annuity is paid to the nominee on the death of the annuitant.
Important details of the Bajaj Allianz Pension Guarantee
Plan
Minimum Age at Entry 45
Maximum Age at Entry 80
Minimum Purchase Price Rs. 25,000
Minimum Annuity Installment Rs. 1,000
Annuity Frequency Mode
For your convenience we have provided 4 Annuity Frequency Modes
that can be Yearly, Half yearly, Quarterly or Monthly. The annuity
will be payable one month/quarter/half year/year after the date of
purchase depending on the mode selected.The Sample Annuity Rate per
annum per Rs.1 lakh of purchase price is given below. The annuity
rate varies between different purchase price bands.
Tax Benefits
The policy will be eligible for tax benefits under Section 80C
of the Income Tax Act as of now.
4) BAJAJ ALLIANZ PROTECTOR
Dreams and Aspirations - we are constantly driven in our pursuit
of these. House, Consumer Durables, visits to exotic locations is
some of the dreams we live for. And the best way to fulfill them is
through easy loans available at todays low interest rates. With
small equated monthly installments, the price is not too heavy.Yet,
who can predict the unfortunate twists and turns in life? And in
case of unfortunate death of the loanee, the burden of repayment
falls on the family. Bajaj Allianz Protector is the perfect plan to
protect your family from the repayment liability of outstanding
loans. All this at a very nominal cost. Now, is there a better way
to provide for your familys financial security?
The Bajaj Allianz Protector Plan
The Bajaj Allianz Protector Plan is a mortgage term insurance
plan that covers the outstanding principal amount of a loan. It is
an economical way to protect the family from the burden of
repayment of the loan in case of death of the loanee. The plan is
designed to pay a sum insured that will be equal to the outstanding
principal amount of the loan due.The Bajaj Allianz Protector Plan
offers you the convenience of choosing between two premium payment
options
Regular Premium Payment - Premium payment limited to
approximately 2/3rd of the loan tenure, while coverage continues
for the full tenure of the loan.
Single Premium Payment - One time premium payment covering you
for the full tenure of the loan.Joint life availability
You have the option to cover the co-applicant of the loan under
this plan. Under this option, both lives will be covered and the
death benefit will be payable in case of death of either life. The
policy terminates on death of either life.
Benefits Payable
Death Benefit
The death benefit is equal to the outstanding principal amount
of the loan due as per the loan schedule, irrespective of changes
in interest rate/term at a later stage. The outstanding amount of
loan due will depend on the loan amount, loan tenure and interest
rate as agreed upon at the time of disbursement of the loan.
Important details of the Bajaj Allianz Protector Plan
Eligibility Condition
Minimum Sum Assured Rs. 2, 00,000
Maximum Sum Assured No Limit
Minimum Age at Entry 20 Yrs
Maximum Age at Entry 55 Yrs
Maximum Age at Policy Expiry Date 65 Yrs
Minimum Term for Single Premium 2 Yrs
Minimum Term for Regular Premium 5 Yrs
Maximum Term (Regular and Single Premium) 30 Yrs
Premium Payment Mode
For your convenience we have provided 5 Premium Payment Modes
that can be single premium, yearly, half-yearly, quarterly or
monthly. The premium for frequencies other than yearly mode is the
annual premium multiplied with the frequency factor (0.51 for the
half yearly mode, 0.26 for the quarterly mode, and 0.09 for the
monthly mode). Monthly mode is permitted only by salary deduction
or direct bank debit. The minimum premiums are Rs. 2500 for the
Single Premium, Rs. 1000 for the annual mode, Rs. 700 for the
half-yearly mode, Rs. 450 for quarterly mode and Rs. 175 for
monthly.
Tax Benefits
Tax benefits under Section 80C and Section 10(10) D available as
per applicable tax laws. All payments due under this plan shall be
governed by tax laws applicable at that point of time.
Surrender values/Paid up Values
There are no surrender values or paid-up values under this
plan.
Loans
Loans are not available under this plan
Change of Occupation
On change of occupation, depending upon the nature of the new
occupation, the premiums and benefits may be modified.
Days of Grace
In case of non-payment of premiums, a grace period of 30 days
will be allowed for the yearly, half yearly and quarterly modes (15
days for the monthly mode). After that the policy will lapse.
Revival of the Policy
It is possible to revive a policy that has lapsed due to
non-payment of premiums within 5 years from the date of lapse. The
revival will be effected subject to underwriting. In case of joint
life, revival would be subject to underwriting on both lives.
General Exclusion
In case the life assured (in case of joint life, either of the
life assured) commits suicide within one year from the date of
commencement / reinstatement of the policy, the benefits of the
plan would not be payable, and the premiums would be refunded.
5) TERM CARE
Life Insurance.....
At the back of our minds we are often nagged by certain fears,
the fears of an uncertain future, the insecurity of not being able
to provide adequately for our loved ones, the fear of not being
able to save enough. Life Insurance is the only complete answer to
these fears. It is life insurance that provides you with the
security of a financial safety net and enables you to plan for
unpredictable adversities. Happiness often sneaks in through a door
you didn't know you left open. Let life insurance be that door for
you.
The 'Bajaj Allianz Term Care' Plan
The 'Bajaj Allianz Term Care' Plan is a term insurance plan. It
is an economical way of providing for one's life cover and at the
same time ensuring that the premiums paid are returned at
maturity.
What does the 'Bajaj Allianz Term Care' Plan offer you?
This plan not only offers you life insurance cover at a low
cost, but also provides for return of premiums on maturity. The
premiums returned at maturity will be equal to the single premium
or the sum total of equivalent annual premiums of the Economy Pack
(excluding extra premiums charged, if any). In case of pre-mature
death during the policy term, the full Sum Assured will be paid to
the nominee.
The 'Bajaj Allianz Term Care' Plan offers you the convenience of
choosing between two premium payment options. Regular Premium
Payment - Premium payment throughout the selected term.
Single Premium Payment - One time premium payment for the
selected term at commencement.
Apart from covering the risk of natural death, this plan also
provides you the option to choose up to 5 additional benefits. You
can select a specific combination of additional benefits best
suited to your needs, available in 4 attractive packages to choose
from.
i. Economy: This is the basic plan, which is available for both
the regular and single premium payment options.
ii. Protect: This pack comes with the following 3 in-built
additional benefits:
a. Accidental Death Benefit.
b. Accidental Permanent Total/Partial Disability Benefit.
c. Waiver of Premium Benefit (in case of accidental permanent
total disability).
The Protect Pack is available with the regular premium payment
option only.
iii. Health: This pack comes with the following 2 in-built
additional benefits:
a. Critical Illness Benefit.
b. Hospital Cash Benefit.
The Health Pack is available with the regular premium payment
option only.iv. Total: This pack comes with the following 5
in-built additional benefits:
a. Accidental Death Benefit.
b. Accidental Permanent Total/Partial Disability Benefit.
c. Waiver of Premium Benefit (in case of accidental permanent
total disability).
d. Critical Illness Benefit.
e. Hospital Cash Benefit.
The Total Pack is available with the regular premium payment
option only.
What are the in-built benefits that the 'Bajaj Allianz Term
Care' Plan offers you?
a. Accidental Death Benefit
Accidents are always sudden and sometimes fatal. You can't
lessen the emotional shock, but you can certainly soften the
financial one. Bajaj Allianz Accidental Death Benefit gives your
loved ones something to start with after the permanent loss of your
income by paying double the basic Sum Assured.
The total Accidental Death Benefit shall however be subject to a
maximum of Rs. 10, 00,000/- under all policies taken with Bajaj
Allianz together.
b. Accidental Permanent Total/Partial Disability Benefit
Accidents are unpredictable and so are the consequences. This
may lead to a disability - partial or total. The Bajaj Allianz
Accidental Permanent Total/Partial Disability Benefit provides a
financial cushion against such misfortunes.
Type of Disability Benefits
Accidental Permanent Partial Disability 50 % of Sum Assured
*
Accidental Permanent Total Disability 100 % of Sum Assured
**
* Subject to a maximum of Rs. 5, 00,000/- under all policies
with Bajaj Allianz taken together.
** Subject to a maximum of Rs. 10, 00,000/- under all policies
with Bajaj Allianz taken together.
c. Waiver of Premium Benefit
An accident may lead to permanent total disability limiting your
ability to earn.
The Bajaj Allianz Waiver of Premium Benefit is a helping hand
when you need it most. It keeps your insurance cover alive by
waiving off future premiums and enables you to live up to your
commitments.
d. Critical Illness Benefit
Some illnesses are critical. They not only alter your life's
pattern but also result in a financial drain. Bajaj Allianz
Critical Illness Benefit softens the impact on your family by
paying out the Critical Illness Benefit (equal to the Sum Assured)
under the plan immediately, while other policy benefits continue
(excluding Hospital Cash Benefit). We cover 11 Critical
Illnesses.
e. Hospital Cash Benefit
The worry of settling hospital bills (room charges) adds to the
trauma of hospitalization. Bajaj Allianz Hospital Cash Benefit
reduces this financial burden and helps you to recover with peace
of mind.
Flexibility in Coverage*
At Bajaj Allianz, we believe in offering benefits and not just
products. We realize that you are unique and your needs for
insurance vary with time. We therefore offer you the flexibility of
including the following benefit combination at each policy
anniversary.
Combination 1: Accidental Death Benefit; Accidental Permanent
Total/Partial Disability Benefit; Waiver of Premium Benefit.
This combination can be added, if not taken earlier, deleted and
added subsequently at each policy anniversary.
We also offer the flexibility of excluding the following benefit
combination:
Combination 2: Critical Illness Benefit; Hospital Cash
Benefit.
This combination can be taken at inception only but can be
excluded
Subsequently at any policy anniversary. Once excluded,
Combination 2 cannot be included in the policy subsequently.
* Available with the regular premium payment option onlyOther
important details of the 'Bajaj Allianz Term Care' Plan.
Eligibility ConditionMinimum Age at Entry 18 Years
Maximum Age at Entry 50 years
Maximum Age at Maturity 65 years
Minimum Term 5 years
Maximum Term 40 years
Minimum Sum Assured Rs. 1, 00,000/-
Maximum Sum Assured Rs. 10, 00,000/-
Minimum Premium (Rs.) 1500/- for Yearly,
Rs. 1500/- for Half Yearly.
The minimum premium for Single Premium option shall be Rs.
6000/-
Premium Payment Mode
For your convenience we have provided 3 Premium Payment Modes
that can be single premium, yearly or half-yearly.6) BAJAJ ALLIANZ
NEW RISK CARE PLAN
Bajaj Allianz New Risk Care plan, a bouquet of happiness,
security and pride for you & your family. Commitments towards
the family are non-measurable and countless. Its our endeavor to
keep up your commitments by sharing your burdens and reducing your
liabilities. In case of any mishap or unfortunate event, the plan
will always stand by you as a pillar of strength.
Bajaj Allianz New Risk Care helps you to secure your familys
well being, and create a strong financial back up in case of any
unforeseen eventualities. Allow us to take over your financial
concerns and worries to rest on us.
Insure your Today with us to ensure your familys Smiles
Tomorrow
The Key Features of Bajaj Allianz New Risk Care:
A non-participating traditional Term Assurance plan.
Higher insurance coverage at Low premium.
Regular/Single Premium payment options.
Enhanced Protection options available through Additional Rider
Benefits.
Rebates on premium in-case of high sum assured (both on regular
and single premium mode).
How does the Bajaj Allianz New Risk Care work? What are the
Benefits?
You are required to make regular installments or a one-time
payment. In case of any unfortunate happening before maturity of
the policy, the Death Benefit on the policy will be paid to the
nominee. There is no maturity benefit.
Power of 4 for Enhanced Protection
Power of 4 for Enhanced Protection
Accidental Death Benefit: Covers against Accidental
Protection.
Accidental Permanent Total/Partial Disability Benefit: Covers
against Disability protection.
Critical Illness Benefit: Covers you against 11 defined critical
diseases.
Hospital Cash Benefit: Reduces your burden against
hospitalization expenses.
(For complete details on riders, please refer to our Additional
Rider Benefits Brochure. These additional Rider Benefits are
available on regular premium policies only and not on single
premium policies.)Flexibility in Coverage
At Bajaj Allianz, we believe in offering solutions and not just
benefits. We believe that you are unique and your needs for
insurance are different from others and vary with time. We
therefore present you New Risk Care with Additional Rider Benefits,
which offers you the flexibility of inclusion or exclusion of
coverage at each policy anniversary, subject to conditions relating
to such inclusions and exclusions.Accidental Death Benefit,
Accidental Permanent Total/Partial Disability Benefit can be
included or excluded at each policy anniversary, but once excluded
cannot be included again. Hospital Cash Benefit (HCB) and Critical
Illness (CI) can be taken at inception only. HCB & CI can be
reduced or excluded subsequently at any policy anniversary. Once
reduced or excluded, they cannot be increased or included
subsequently.Minimum Premium Amount
Rs. 200 per Monthly installment (through salary deduction or
ECS), Rs. 500 per Quarterly installment, Rs. 1,000 per Half-Yearly
installment, Rs. 1,500 per Yearly installment, Rs. 5,000 for Single
Premium.Important Details
Minimum Entry Age 18 years
Maximum Entry Age 60 years
Maximum Maturity Age 65 years
Minimum Policy Term 5 years
Maximum Policy Term 40 years
Minimum Sum Assured Rs.4, 00,000
Maximum Sum Assured Rs.50, 00, 00,000
Premium paying frequency Yearly/Half yearly
/Quarterly/Monthly/Single
High Sum Assured Rebate (HSAR) On Sum Assured of Rs.
10,00,000 or more
Indicative Premiums
The table below illustrates the premium rates* for New Risk
Care.
Age: 30 Years
Gender: Male
Sum Assured: Rs. 5, 00,000
Payment Mode Term
10 15 20 25
Single Premium (in Rs.) 9,045 13,140 17,650 22,630
Regular Annual Premium (in Rs.) 1,665 1,840 1,970 2,065
*Excluding service tax.
Death benefit
In case of any unfortunate happening before maturity of the
policy, the Death Benefit equal to the chosen Sum Assured on the
policy will be paid to the nominee.
Surrender Value
In case of Single Premium mode, the policy can be surrendered
after five years from Policy Commencement Date and the surrender
value is equal to 0.70*(n-t)/n*Single Premium, where n is Policy
Term and t is elapsed duration in years from Policy Commencement
Date to the Policy Anniversary following the date of surrender.
Surrender value is not payable on Regular Premium mode.
Revival of lapsed Policy
You may revive the lapsed policy within two years from first
unpaid premium by paying all due regular premiums along with
interest compounding half-yearly at such rate as the Company may
decide from time to time.
Tax Benefits
Premium paid will be eligible for tax benefit under Section 80C.
The death benefit will be eligible for tax benefit under Section
10(10) D as per the prevailing tax laws.
Nomination
Nomination can be made for receiving policy proceeds in case of
death.
General Exclusion
If the Life Assured commits suicide whether sane or insane,
within one year from the Policy Commencement Date or Commencement
of Risk, the Company will not entertain any claim by virtue of this
Policy except to the extent of the Installment/Single Premium paid.
The actual date of death will be the basis for determining the
validity of the
contract of insurance.
7 CHILD GAIN
Are your children destined for greatness? Will they devise the
universal currency, or solve the problem of global warming? Will
they make music like we have never heard before, or keep shattering
records in sports? Will they bring God to men, or peace to the
world? Your children may just be the ones to end wars, feed the
hungry, and care for many. Your child can aim for the highest
echelons of success, for greatness, and immortal fame. Your child
can dream. But before your child does, you must.
Bajaj Allianz Child Gain Plan
Taking care of a child is perhaps the most important job a
parent can have. It is natural that you would like to give your
child your best, and therefore, this is the time when careful
financial planning can help you fulfill the aspirations that you
have for your children. The Bajaj Allianz Child Gain Solutions help
you to enjoy the joys of parenthood responsibly, with the
reassurance of a secure future for your child.
What does Bajaj Allianz ChildGain Plan offer you?
Bajaj Allianz ChildGain offers a wide array of solutions that
allows you to plan for your childs future by providing you with as
many as 4 distinct and unique options.
Option 1: ChildGain 21
Option 2: ChildGain 24
Option 3: ChildGain 21 Plus
Option 4: ChildGain 24 Plus
Common features in the 4 Options of Bajaj Allianz ChildGain
Plan
1. Limited Premium Payment Term which means that the premiums
are payable till your child attains age 18 years.
2. Your contributions grow by the way of compounded annual
bo