A SUMMER TRAINING REPORT

ON

LIFE INSURANCE INDUSTRY IN

INDIA
AT
BAJAJ ALLIANZ

In the partial fulfillment for the award of the degree of

MASTER
OF
BUSINESS ADMINISTRATION
Under the Guidance of

Submitted By:

MR.MANISH SINGH

GAJENDRA PANDEY

Faculty Guide

Roll no.: 1267070012

MBA - Marketing/Finance

Lucknow Model Institute of Management, Lucknow

Affiliated to Gautam Budha Technical University
1

(formely U.P.T.U)
2013-2014

DECLARATION
I here by certify that the work which is being presented in the project
entitled, " LIFE INSURANCE INDUSTRY IN INDIA AT BAJAJ ALLIANZ in
partial fulfillment of the requirements for the award degree of Master of
Business Administration at Lucknow Model Institute of Management, Lucknow
is an authentic record of my work carried out under the matter presented in this
project Report has not been submitted by me for the award of any other degree
of this or any university.

GAJENDRA PANDEY
MBA (Marketing) 4th Sem.
Roll No. 1267070012

ACKNOWLEDGEMENT
I am thankful to management of Bajaj Allianz Mr. Das.( Branch
Manager) . for granting the permission, co-operation and valuable information
for completing this project.
I also express my heart felt thanks to Mr.Manish Singh , ( Internal Guide) for
his valuable guidance and continuous support in better understanding the
study with his excellent ideas throughout the project.
I express my deep gratitude to my internal project Guide Mr. Manish Singh,
(HOD)) who was a source of continuous guidance and inspiration to me.
In spite of heavy responsibilities and busy schedules, they always
managed time to provide proper guidance.
Last but not the least, I would like to say that my parents and friends
for giving me their constant support and encouragement in completion of my
project.

GAJENDRA PANDEY
MBA (Marketing) 4th Sem.
Roll No. 1267070012
4

PREFACE
Training is an integral part of the MBA course curriculum. The main objective
of this training is to supplement the students theoretical knowledge with a
practical exposure to the working environment of an organization.
This program enhances the students capability to cope up with the
uncertainties and challenges which are the part and parcel of every
organization.
The competition in the insurance sector is highly volatile in nature.
Over the decade only government undertaking company was operating in
India but with the opening up of the economy several new players like private
sector & multinational insurance entered in Indian horizon.
In the giving project I made the importance of Financial Advisor in
accelerative the service of the company. Advisors are playing a very important
role for making a bright future of BAJAJ ALLIANZ .
Research design method used was descriptive research. The
sampling method used was simple random sampling. I have taken a size of 60
respondents. I first formed a structure questionnaire to collect data & the
questionnaire is filled by the person, who is related with insurance company.
On the basis of filled questionnaire, coding sheet is formulated &
the conclusions are drawn with the help of graphs pie charts.
5

EXECUTIVE SUMMARY

Identifying different profiles of the people and giving them a Business

Opportunity to join BAJAJ ALLIANZ Insurance Company Ltd. as an advisor.
The study is conducted to identify the perception perceived by the
people and insurance holders amongst Life Insurance Company. To make
people aware of the services facilitated by BAJAJ ALLIANZ Insurance.
Several awareness programs were conducted followed by promotional
activity. People were contacted to make them understand of Sahara Indias
investment Services.
A market survey was done on life insurance companies. Different
questions regarding the companies training programs for advisor, top 5 USP's,
training centers etc were asked. The areas covered up in this survey were
Lucknow. The report contains details of different role of the advisor in life
insurance companies and the importance of financial advisor in accelerative
the service of the company.
Insurance industry is growing rapidly day-by-day. India itself has a
population of 1.12 billion out of which roughly 33.2% people are insured.
This clearly shows that most of the people are not insured just because they
dont know much about insurance.

TABLE OF CONTENTS
1. Chapter I

Introduction
History
2. Chapter II

35

Bajaj Allianz
Vision & Mission
Products & Services
Competitors
3. Chapter III

77

Research Methodology
4. Chapter IV

79

Data Analysis
5. Chapter V

89

Conclusion
6. Chapter VI

91

Suggestion
7. Chapter VII

92

Bibliography
8. Chapter VIII

93

Annexure
Questionnaire

CHAPTER I
INTRODUCTION
Life insurance or life assurance is a contract between the policy owner and
the insurer, where the insurer agrees to pay a designated beneficiary a sum of
money upon the occurrence of the insured individual's or individuals' death or
other event, such as terminal illness or critical illness. In return, the policy
owner agrees to pay a stipulated amount at regular intervals or in lump sums.
There may be designs in some countries where bills and death expenses plus
catering for after funeral expenses should be included in Policy Premium. In
the United States, the predominant form simply specifies a lump sum to be
paid on the insured's demise.
As with most insurance policies, life insurance is a contract between the
insurer

and

the policy

owner whereby

benefit

is

paid

to

the

designated beneficiaries if an insured event occurs which is covered by the

policy.
The value for the policyholder is derived, not from an actual claim event,
rather it is the value derived from the 'peace of mind' experienced by the
policyholder, due to the negating of adverse financial consequences caused by
the death of the Life Assured.

To be a life policy the insured event must be based upon the lives of the
people named in the policy.
Insured events that may be covered include:

Serious illness

Life policies are legal contracts and the terms of the contract describe the
limitations of the insured events. Specific exclusions are often written into the
contract to limit the liability of the insurer; for example claims relating to
suicide, fraud, war, riot and civil commotion.
Life-based contracts tend to fall into two major categories:

Protection policies - designed to provide a benefit in the event of

specified event, typically a lump sum payment. A common form of this
design is term insurance.

Investment policies - where the main objective is to facilitate the

growth of capital by regular or single premiums. Common forms (in the
US anyway) are whole life, universal life and variable life policies.

Overview
Parties to contract
There is a difference between the insured and the policy owner (policy
holder), although the owner and the insured are often the same person. For
example, if Joe buys a policy on his own life, he is both the owner and the
insured. But if Jane, his wife, buys a policy on Joe's life, she is the owner and
he is the insured. The policy owner is the guarantee and he or she will be the
person who will pay for the policy. The insured is a participant in the contract,
but not necessarily a party to it. However, "insurable interest" is required to
9

limit an unrelated party from taking life insurance on, for example, Jane or
Joe.
The beneficiary receives policy proceeds upon the insured's death. The owner
designates the beneficiary, but the beneficiary is not a party to the policy. The
owner can change the beneficiary unless the policy has an irrevocable
beneficiary designation. With an irrevocable beneficiary, that beneficiary must
agree to any beneficiary changes, policy assignments, or cash value
borrowing.
In cases where the policy owner is not the insured (also referred to as the celui
qui vit or CQV), insurance companies have sought to limit policy purchases to
those with an "insurable interest" in the CQV. For life insurance policies, close
family members and business partners will usually be found to have an
insurable interest. The "insurable interest" requirement usually demonstrates
that the purchaser will actually suffer some kind of loss if the CQV dies. Such
a requirement prevents people from benefiting from the purchase of purely
speculative policies on people they expect to die. With no insurable interest
requirement, the risk that a purchaser would murder the CQV for insurance
proceeds would be great. In at least one case, an insurance company which
sold a policy to a purchaser with no insurable interest (who later murdered the
CQV for the proceeds), was found liable in court for contributing to
the wrongful death of the victim (Liberty National Life v. Weldon, 267
Ala.171 (1957)).

10

Contract terms
Special provisions may apply, such as suicide clauses wherein the policy
becomes null if the insured commits suicide within a specified time (usually
two years after the purchase date; some states provide a statutory one-year
suicide clause). Any misrepresentations by the insured on the application is
also grounds for nullification. Most US states specify that the contestability
period cannot be longer than two years; only if the insured dies within this
period will the insurer have a legal right to contest the claim on the basis of
misrepresentation and request additional information before deciding to pay or
deny the claim.
The face amount on the policy is the initial amount that the policy will pay at
the death of the insured or when the policy matures, although the actual death
benefit can provide for greater or lesser than the face amount. The policy
matures when the insured dies or reaches a specified age (such as 100 years
old).
Costs, insurability, and underwriting
The insurer (the life insurance company) calculates the policy prices with
intent to fund claims to be paid and administrative costs, and to make a profit.
The cost of insurance is determined using mortality tables calculated
by actuaries. Actuaries are professionals who employ actuarial science, which
is based in mathematics (primarily probability and statistics). Mortality tables
are statistically-based tables showing expected annual mortality rates. It is
possible to derive life expectancy estimates from these mortality assumptions.
Such estimates can be important in taxation regulation.
11

The three main variables in a mortality table have been age, gender, and use
of tobacco. More recently in the US, preferred class specific tables were
introduced. The mortality tables provide a baseline for the cost of insurance.
In practice, these mortality tables are used in conjunction with the health and
family history of the individual applying for a policy in order to determine
premiums and insurability. Mortality tables currently in use by life insurance
companies in the United States are individually modified by each company
using pooled industry experience studies as a starting point. In the 1980s and
90's the SOA 1975-80 Basic Select & Ultimate tables were the typical
reference points, while the 2001 VBT and 2001 CSO tables were published
more recently. The newer tables include separate mortality tables
forsmokers and non-smokers and the CSO tables include separate tables for
preferred classes.
Recent US select mortality tables predict that roughly 0.35 in 1,000 nonsmoking males aged 25 will die during the first year of coverage after
underwriting. Mortality approximately doubles for every extra ten years of
age so that the mortality rate in the first year for underwritten non-smoking
men is about 2.5 in 1,000 people at age 65. Compare this with the US
population male mortality rates of 1.3 per 1,000 at age 25 and 19.3 at age 65
(without regard to health or smoking status).
The mortality of underwritten persons rises much more quickly than the
general population. At the end of 10 years the mortality of that 25 year-old,
non-smoking male is 0.66/1000/year. Consequently, in a group of one
thousand 25 year old males with a $100,000 policy, all of average health, a
12

life insurance company would have to collect approximately $50 a year from
each of a large group to cover the relatively few expected claims. (0.35 to 0.66
expected deaths in each year x $100,000 payout per death = $35 per policy).
Administrative and sales commissions need to be accounted for in order for
this to make business sense. A 10 year policy for a 25 year old non-smoking
male person with preferred medical history may get offers as low as $90 per
year for a $100,000 policy in the competitive US life insurance market.
The insurance company receives the premiums from the policy owner and
invests them to create a pool of money from which it can pay claims and
finance the insurance company's operations. Contrary to popular belief, the
majority of the money that insurance companies make comes directly from
premiums paid, as money gained through investment of premiums can never,
in even the most ideal market conditions, vest enough money per year to pay
out claims.[citation

needed]

Rates charged for life insurance increase with the

insurer's age because, statistically, people are more likely to die as they get
older.
Given that adverse selection can have a negative impact on the insurer's
financial situation, the insurer investigates each proposed insured individual
unless the policy is below a company-established minimum amount,
beginning with the application process. Group Insurance policies are an
exception.
This

investigation

and

resulting

evaluation

of

the

risk

is

termed underwriting. Health and lifestyle questions are asked. Certain

responses or information received may merit further investigation. Life
insurance companies in the United States support the Medical Information
13

Bureau (MIB) , which is a clearinghouse of information on persons who have

applied for life insurance with participating companies in the last seven years.
As part of the application, the insurer receives permission to obtain
information from the proposed insured's physicians.
Underwriters will determine the purpose of insurance. The most common is to
protect the owner's family or financial interests in the event of the insurer's
demise. Other purposes include estate planning or, in the case of cash-value
contracts, investment for retirement planning. Bank loans or buy-sell
provisions of business agreements are another acceptable purpose.
Life insurance companies are never required by law to underwrite or to
provide coverage to anyone, with the exception of Civil Rights Act
compliance requirements. Insurance companies alone determine insurability,
and some people, for their own health or lifestyle reasons, are deemed
uninsurable. The policy can be declined (turned down) or rated Rating
increases the premiums to provide for additional risks relative to the particular
insured.
Many companies use four general health categories for those evaluated for a
life insurance policy. These categories are Preferred Best, Preferred, Standard,
and Tobacco.[citation

needed]

Preferred Best is reserved only for the healthiest

individuals in the general population. This means, for instance, that the
proposed insured has no adverse medical history, is not under medication for
any condition, and his family (immediate and extended) have no history of
early cancer, diabetes, or other conditions.[5] Preferred means that the
proposed insured is currently under medication for a medical condition and
14

has a family history of particular illnesses. [citation needed] Most people are in the
Standard category.[citation

needed]

Profession, travel, and lifestyle factor into

whether the proposed insured will be granted a policy, and which category the
insured falls. For example, a person who would otherwise be classified as
Preferred Best may be denied a policy if he or she travels to a high risk
country.[citation

needed]

Underwriting practices can vary from insurer to insurer

which provide for more competitive offers in certain circumstances.

Insurance vs Assurance
The specific uses of the terms "insurance" and "assurance" are sometimes
confused. In general, in these jurisdictions "insurance" refers to providing
cover for an event that might happen (fire, theft, flood, etc.), while
"assurance" is the provision of cover for an event that is certain to happen.
"Insurance" is the generally accepted term, but people using this description
are liable to be corrected. In the United States both forms of coverage are
called "insurance", principally due to many companies offering both types of
policy, and rather than refer to themselves using both insurance and assurance
titles, they instead use just one.
History
Insurance began as a way of reducing the risk of traders, as early as 5000 BC
in China and 4500 BC in Babylon. Life insurance dates only to ancient Rome;
"burial clubs" covered the cost of members' funeral expenses and helped
survivors monetarily. Modern life insurance started in 17th century England,
originally as insurance for traders[7] : merchants, ship owners and underwriters
met to discuss deals at Lloyd's Coffee House, predecessor to the
famous Lloyd's of London.
15

The first insurance company in the United States was formed in Charleston,
South Carolina in 1732, but it provided only fire insurance. The sale of life
insurance in the U.S. began in the late 1760s. The Presbyterian Synods
in Philadelphia and New York created the Corporation for Relief of Poor and
Distressed

Widows

and

Children

of

Presbyterian

Ministers

in

1759; Episcopalian priests organized a similar fund in 1769. Between 1787

and 1837 more than two dozen life insurance companies were started, but
fewer than half a dozen survived.
Prior to the American Civil War, many insurance companies in the United
States insured the lives of slaves for their owners. In response to bills passed
in California in 2001 and in Illinois in 2003, the companies have been
required to search their records for such policies. New York Life for example
reported that Nautilus sold 485 slaveholder life insurance policies during a
two-year period in the 1840s; they added that their trustees voted to end the
sale of such policies 15 years before the Emancipation Proclamation.
In India, insurance has a deep-rooted history. It finds mention in the writings
of Manu ( Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kautilya
( Arthasastra ). The writings talk in terms of pooling of resources that could
be re-distributed in times of calamities such as fire, floods, epidemics and
famine. This was probably a pre-cursor to modern day insurance. Ancient
Indian history has preserved the earliest traces of insurance in the form of
marine trade loans and carriers contracts. Insurance in India has evolved over
time heavily drawing from other countries, England in particular.
16

1818 saw the advent of life insurance business in India with the
establishment of the Oriental Life Insurance Company in Calcutta. This
Company however failed in 1834. In 1829, the Madras Equitable had begun
transacting life insurance business in the Madras Presidency. 1870 saw the
enactment of the British Insurance Act and in the last three decades of the
nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of
India (1897) were started in the Bombay Residency. This era, however, was
dominated by foreign insurance offices which did good business in India,
namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe
Insurance and the Indian offices were up for hard competition from the
foreign companies.
In 1914, the Government of India started publishing returns of Insurance
Companies in India. The Indian Life Assurance Companies Act, 1912 was the
first statutory measure to regulate life business. In 1928, the Indian Insurance
Companies Act was enacted to enable the Government to collect statistical
information about both life and non-life business transacted in India by Indian
and foreign insurers including provident insurance societies. In 1938, with a
view to protecting the interest of the Insurance public, the earlier legislation
was consolidated and amended by the Insurance Act, 1938 with
comprehensive provisions for effective control over the activities of insurers.
The Insurance Amendment Act of 1950 abolished Principal Agencies.
However, there were a large number of insurance companies and the level of
competition was high. There were also allegations of unfair trade practices.
The Government of India, therefore, decided to nationalize insurance
business.
17

An Ordinance was issued on 19th January, 1956 nationalising the Life

Insurance sector and Life Insurance Corporation came into existence in the
same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75
provident societies245 Indian and foreign insurers in all. The LIC had
monopoly till the late 90s when the Insurance sector was reopened to the
private sector.
This millennium has seen insurance come a full circle in a journey extending
to nearly 200 years. The process of re-opening of the sector had begun in the
early 1990s and the last decade and more has seen it been opened up
substantially. In 1993, the Government set up a committee under the
chairmanship of RN Malhotra, former Governor of RBI, to propose
recommendations for reforms in the insurance sector.The objective was to
complement the reforms initiated in the financial sector. The committee
submitted its report in 1994 wherein , among other things, it recommended
that the private sector be permitted to enter the insurance industry. They stated
that foreign companies be allowed to enter by floating Indian companies,
preferably a joint venture with Indian partners.
Following the recommendations of the Malhotra Committee report, in 1999,
the Insurance Regulatory and Development Authority (IRDA) was constituted
as an autonomous body to regulate and develop the insurance industry. The
IRDA was incorporated as a statutory body in April, 2000. The key objectives
of the IRDA include promotion of competition so as to enhance customer
satisfaction through increased consumer choice and lower premiums, while
ensuring the financial security of the insurance market.
18

The IRDA opened up the market in August 2000 with the invitation for
application for registrations. Foreign companies were allowed ownership of
up to 26%. The Authority has the power to frame regulations under Section
114A of the Insurance Act, 1938 and has from 2000 onwards framed various
regulations ranging from registration of companies for carrying on insurance
business to protection of policyholders interests.
In December, 2000, the subsidiaries of the General Insurance Corporation
of India were restructured as independent companies and at the same time
GIC was converted into a national re-insurer. Parliament passed a bill delinking the four subsidiaries from GIC in July, 2002.
Today there are 14 general insurance companies including the ECGC and
Agriculture Insurance Corporation of India and 14 life insurance companies
operating in the country.
The insurance sector is a colossal one and is growing at a speedy rate of 1520%. Together with banking services, insurance services add about 7% to the
countrys GDP. A well-developed and evolved insurance sector is a boon for
economic development as it provides long- term funds for infrastructure
development at the same time strengthening the risk taking ability of the
country.
Types of Life Insurance
Life insurance may be divided into two basic classes temporary and
permanent or following subclasses - term, universal, whole life and
endowment life insurance.
19

Term Insurance
Term assurance provides life insurance coverage for a specified term of years
in exchange 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. Common types of term insurance include Level, Annual
Renewable and Mortgage insurance.
Level Term policy has the premium fixed for a period of time longer than a
year. These terms are commonly 5, 10, 15, 20, 25, 30 and even 35 years. Level
term is often used for long term planning and asset management because
premiums remain consistent year to year and can be budgeted long term. At
the end of the term, some policies contain a renewal or conversion option.
Guaranteed Renewal, 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. Some companies
however do not guarantee renewal, and require proof of insurability to
mitigate their risk and decline renewing higher risk clients (for instance those
20

that may be terminal). Renewal that requires proof of insurability often

includes a conversion options that allows the insured to convert the term
program to a permanent one that the insurance company makes available. This
can force clients into a more expensive permanent program because of anti
selection if they need to continue coverage. Renewal and conversion options
can be very important when selecting a program.
Annual renewable term 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 (with the exception of suicide see below), his estate or
named beneficiary receives a payout. If he does not die before the term is up,
he receives nothing. Suicide used to be excluded from ALL insurance
policies[when?], 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.
21

Permanent Life Insurance

Permanent life insurance is life insurance that remains in force (in-line) until
the policy matures (pays out), unless the owner fails to pay the premium when
due (the policy expires OR policies lapse). The policy cannot be canceled by
the insurer for any reason except fraud in the application, and that cancellation
must occur within a period of time defined by law (usually two years).
Permanent insurance builds a cash value that reduces the amount at risk to the
insurance company and thus the insurance expense over time. This means that
a policy with a million dollar face value can be relatively expensive to a 70
year old. The owner can access the money in the cash value by withdrawing
money, borrowing the cash value, or surrendering the policy and receiving the
surrender value.
The four basic types of permanent insurance are whole life, universal
life, limited pay and endowment.
Whole life coverage
Whole life insurance provides for a level premium, and a cash value table
included in the policy guaranteed by the company. The primary advantages of
whole life are guaranteed death benefits, guaranteed cash values, fixed and
known annual premiums, and mortality and expense charges will not reduce
the cash value shown in the policy. The primary disadvantages of whole life
are premium inflexibility, and the internal rate of return in the policy may not
be competitive with other savings alternatives. Also, the cash values are
generally kept by the insurance company at the time of death, the death
benefit only to the beneficiaries. Riders are available that can allow one to
increase the death benefit by paying additional premium. The death benefit
22

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" and are
received "income-tax free". Since these loans decrease the death benefit if not
paid back, payback is optional. Cash values support the death benefit so only
the death benefit is paid out.
Dividends can be utilized in many ways. First, if 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. Another
alternative is to opt in for 'reduced premiums' on some policies. This reduces
the owed premiums by the unguaranteed dividends amount. A third option
allows the owner to take the dividends as they are paid out. (Although some
policies provide other/different/less options than these - it depends on the
company for some cases)
Universal life coverage
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. There are several
types of universal life insurance policies which include "interest sensitive"
(also known as "traditional fixed universal life insurance"), variable universal
life insurance, and equity indexed universal life insurance.
23

A universal life insurance policy includes a cash account but the cash
decreases over time. Premiums increase the cash account, but, the cost of
interest increases each year so the cash deteriorates over time. Interest is paid
within the policy (credited) on the account at a rate specified by the company,
but then 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.
Universal Life does not work in a recession or low interest rate environment.
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
24

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. But, it does not perform
like a whole life policy when each year the costs increase and never stop. In
whole life, the costs are complete within the first few years of the policy.
Option B pays the face amount plus the cash value, as it's designed to increase
the net death benefit as cash values accumulate. Option B offers the benefit of
an increasing death benefit every year that the policy stays in force. The
drawback to option B is that because the cash value is accumulated "on top
of" the death benefit, the cost of insurance never decreases as premium
payments are made. Thus, as the insured gets older, the policy owner is faced
with an ever increasing cost of insurance (it costs more money to provide the
same initial face amount of insurance as the insured gets older).
Limited-pay
Another type of permanent insurance is Limited-pay life insurance, in which
all the premiums are paid over a specified period after which no additional
premiums are due to keep the policy in force. Common limited pay periods
include 10-year, 20-year, and paid-up at age 65.
Endowments
Endowments are policies in which the cash value built up inside the policy,
equals the death benefit (face amount) at a certain age. The age this
25

commences is known as the endowment age. Endowments are considerably

more expensive (in terms of annual premiums) than either whole life or
universal life because the premium paying period is shortened and the
endowment date is earlier.
In the United States, the Technical Corrections Act of 1988 tightened the rules
on tax shelters (creating modified endowments). These follow tax rules
as annuities and IRAs do.
Endowment Insurance is paid out whether the insured lives or dies, after a
specific period (e.g. 15 years) or a specific age (e.g. 65).
Accidental Death
Accidental death is a limited life insurance that is designed to cover the
insured when they pass away due to an accident. Accidents include anything
from an injury, but do not typically cover any deaths resulting from health
problems or suicide. Because they only cover accidents, these policies are
much less expensive than other life insurances.
It is also very commonly offered as "accidental death and dismemberment
insurance", also known as an AD&D policy. In an AD&D policy, benefits are
available not only for accidental death, but also for loss of limbs or bodily
functions such as sight and hearing, etc.
Accidental death and AD&D policies very rarely pay a benefit; either the
cause of death is not covered, or the coverage is not maintained after the
accident until death occurs. To be aware of what coverage they have, an
insured should always review their policy for what it covers and what it
26

excludes. Often, it does not cover an insured who puts themselves 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 a double indemnity coverage. In some cases, some companies
may even offer a triple indemnity cover.
Life Insurance Products
Riders are modifications to the insurance policy added at the same time the
policy is issued. These riders change the basic policy to provide some feature
desired by the policy owner. A common rider is accidental death, which used
to be commonly referred to as "double indemnity", which pays twice the
amount of the policy face value if death results from accidental causes, as if
both a full coverage policy and an accidental death policy were in effect on
the insured. Another common rider is premium waiver, which waives future
premiums if the insured becomes disabled.
Joint life insurance is either a term or permanent policy insuring two or more
lives with the proceeds payable on the first death or second death.
Survivorship life: is a whole life policy insuring two lives with the proceeds
payable on the second (later) death.
27

Single premium whole life: is a policy with only one premium which is
payable at the time the policy is issued.
Modified whole life: is a whole life policy that charges smaller premiums for
a specified period of time after which the premiums increase for the remainder
of the policy.
Group life insurance: is term insurance covering a group of people, usually
employees of a company or members of a union or association. Individual
proof of insurability is not normally a consideration in the underwriting.
Rather, the underwriter considers the size and turnover of the group, and the
financial strength of the group. Contract provisions will attempt to exclude the
possibility of adverse selection. Group life insurance often has a provision that
a member exiting the group has the right to buy individual insurance
coverage.
Senior and preneed products: Insurance companies have in recent years
developed products to offer to niche markets, most notably targeting
the senior market to address needs of an aging population. Many companies
offer policies tailored to the needs of senior applicants. These are often low to
moderate face value whole life insurance policies, to allow a senior citizen
purchasing insurance at an older issue age an opportunity to buy affordable
insurance. This may also be marketed as final expense insurance, and an agent
or company may suggest (but not require) that the policy proceeds could be
used for end-of-life expenses.
28

Preneed (or prepaid) insurance policies: are whole life policies that, although
available at any age, are usually offered to older applicants as well. This type
of insurance is designed specifically to cover funeral expenses when the
insured person dies. In many cases, the applicant signs a prefunded funeral
arrangement with a funeral home at the time the policy is applied for. The
death proceeds are then guaranteed to be directed first to the funeral services
provider for payment of services rendered. Most contracts dictate that any
excess proceeds will go either to the insured's estate or a designated
beneficiary.
Investment Policies
With-profits policies:
Some policies allow the policyholder to participate in the profits of the
insurance company these are with-profits policies. Other policies have no
rights to participate in the profits of the company, these are non-profit policies.
With-profits policies are used as a form of collective investment to achieve
capital growth. Other policies offer a guaranteed return not dependent on the
company's underlying investment performance; these are often referred to
as without-profit policies which may be construed as a misnomer.
Investment Bonds
Pensions: Pensions are a form of life assurance. However, whilst basic life
assurance, permanent health insurance and non-pensions annuity business
includes an amount of mortality or morbidity risk for the insurer, for pensions
there is a longevity risk.
29

A pension fund will be built up throughout a person's working life. When the
person retires, the pension will become in payment, and at some stage the
pensioner will buy an annuity contract, which will guarantee a certain pay-out
each month until death.
Annuities
An annuity is a contract with an insurance company whereby the insured pays
an initial premium or premiums into a tax-deferred account, which pays out a
sum at pre-determined intervals. There are two periods: the accumulation
(when payments are paid into the account) and the annuitization (when the
insurance company pays out). IRS rules restrict how you take money out of an
annuity. Distributions may betaxable and/or penalized.
Life Insurance vs. other Savings
Contract Of Insurance:
A contract of insurance is a contract of utmost good faith technically known as
uberrima fides. The doctrine of disclosing all material facts is embodied in
this important principle, which applies to all forms of insurance.
At the time of taking a policy, policyholder should ensure that all questions in
the proposal form are correctly answered. Any misrepresentation, nondisclosure or fraud in any document leading to the acceptance of the risk
would render the insurance contract null and void.

30

Protection:
Savings through life insurance guarantee full protection against risk of death
of the saver. Also, in case of demise, life insurance assures payment of the
entire amount assured (with bonuses wherever applicable) whereas in other
savings schemes, only the amount saved (with interest) is payable.
Aid To Thrift:
Life insurance encourages 'thrift'. It allows long-term savings since payments
can be made effortlessly because of the 'easy instalment' facility built into the
scheme. (Premium payment for insurance is either monthly, quarterly, half
yearly or yearly).
For example: The Salary Saving Scheme popularly known as SSS, provides a
convenient method of paying premium each month by deduction from one's
salary.
In this case the employer directly pays the deducted premium to LIC. The
Salary Saving Scheme is ideal for any institution or establishment subject to
specified terms and conditions.
Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any
policy that has acquired loan value. Besides, a life insurance policy is also
generally accepted as security, even for a commercial loan.

31

Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax and
wealth tax. This is available for amounts paid by way of premium for life
insurance subject to income tax rates in force.
Assessees can also avail of provisions in the law for tax relief. In such cases
the assured in effect pays a lower premium for insurance than otherwise.
Money When You Need It:
A policy that has a suitable insurance plan or a combination of different plans
can be effectively used to meet certain monetary needs that may arise from
time-to-time.
Children's education, start-in-life or marriage provision or even periodical
needs for cash over a stretch of time can be less stressful with the help of these
policies.
Alternatively, policy money can be made available at the time of one's
retirement from service and used for any specific purpose, such as, purchase
of a house or for other investments. Also, loans are granted to policyholders
for house building or for purchase of flats (subject to certain conditions).
Insurance Companies in India
In India, Insurance is a national matter, in which life and general insurance is
yet a booming sector with huge possibilities for different global companies, as
life insurance premiums account to 2.5% and general insurance premiums
account to 0.65% of India's GDP. The Indian Insurance sector has gone
through several phases and changes, especially after 1999, when the Govt. of
32

India opened up the insurance sector for private companies to solicit

insurance, allowing FDI up to 26%. Since then, the Insurance sector in India is
considered as a flourishing market amongst global insurance companies.
However, the largest life insurance company in India is still owned by the
government.
The history of Insurance in India dates back to 1818, when Oriental Life
Insurance Company was established by Europeans in Kolkata to cater to their
requirements. Nevertheless, there was discrimination among the life of
foreigners and Indians, as higher premiums were charged from the latter. In
1870, Indians took a sigh of relief when Bombay Mutual Life Assurance
Society, the first Indian insurance company covered Indian lives at normal
rates. Onset of the 20th century brought a drastic change in the Insurance
sector.
In 1912, the Govt. of India passed two acts - the Life Insurance Companies
Act, and the Provident Fund Act - to regulate the insurance business. National
Insurance Company Ltd, founded in 1906, is the oldest existing insurance
company in India. Earlier, the Insurance sector had only two state insurers Life Insurers i.e. Life Insurance Corporation of India (LIC), and General
Insurers i.e. General Insurance Corporation of India (GIC). In December
2000, these subsidiaries were de-linked from parent company and were
declared independent insurance companies: Oriental Insurance Company
Limited, New India Assurance Company Limited, National Insurance
Company Limited and United India Insurance Company Limited.
Insurance Companies In India
33

Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest
Insurance Company and Bajaj Finserv.
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 119 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 customised products, supported by the best technology.

Birla Sun Life Insurance Co. Ltd

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture
between the Aditya Birla Group, a well known Indian conglomerate and
Sun Life Financial Inc, one of the leading international financial
services organizations from Canada. With an experience of over a
decade, BSLI has contributed to the growth and development of the
Indian life insurance industry and currently is one of the leading life
insurance companies in the country.

34

CHAPTER II
BAJAJ ALLIANZ
You have always tried your best to fulfill all your responsibilities and take
care of your family. However, life comes with risks and unforeseen incidents
that can put your family's financial security in jeopardy. Presenting the Bajaj
Allianz iSecure Insurance Plan; a level cover term assurance plan that secures
your family's financial needs by giving you a level term cover for high sum
assured, but at a low cost.
Best Term Insurance Plan review by i-save.com as featured in The Economic
Times

Wealth, Bajaj

Allianzi

Secure scores

a 4 star

in Price, Features, Servicing and Overall

rating

Performance.

Tax Exemption u/s 80C and 10(10D)*

Get the advantage of a level term cover at low cost, especially for larger sum
assured.
Get rewarded for maintaining a healthy life-style, if applicable, with special
premium rates for non-smokers and medically fit non-smokers.
Benefit of attractive high sum assured rebate.
35

Flexibility to select your policy term of 10, 15, 20, 25 or 30 years depending
on your requirement.
Alter your premium payment frequency.
Include your spouse at a later date in your existing policy, if you are single at
present.
Choose additional rider benefit(s) for enhanced protection.
Plan to meet recurring expenses of your loved ones by opting for payment of
benefit in annual installments.
What is Term Insurance
Term insurance is a life insurance which provides coverage for the policy term
decided between the policy holder and insurer at the onset of the policy.
After this policy term expires coverage is no longer valid. If the insured dies
during this term, the death benefit is paid to the nominee.
Bajaj Allianz iSecure Insurance Plan offers you the choice to cover your
spouse jointly with yourself. You can customise your policy to suit your
requirements by following these simple steps:
Step 1 : Choose either an individual or a joint life cover
Step 2 : Choose your sum assured(s), i.e, life cover
Step 3 : Choose your policy term and premium payment frequency

36

Step 4 : If sum assured chosen is Rs.2,000,000 and above, you may choose
your lifestyle category - either Preferred Non-Smoker, or Non-Smoker, or
Smoker.*
Your premium will be based on your current age(s), sum assured(s), lifestyle
category (if applicable), policy term and premium payment frequency. In case
of unfortunate demise, the death benefit will be the sum assured under the
policy.
*This categorisation is available for sum assureds of Rs.2,000,000 and above,
subject to medical examination/tests as decided by the Company.
A Non-Smoker who has no abnormalities in his medical examination/tests or
family/personal history; has no risky avocation and does not have a risky
occupation, as decided by the Company, is classified as a Preferred NonSmoker.

37

VISION & MISSION

Vision
To be the first choice insurer for customers
To is the preferred employer for staff in the insurance industry.
To be the number one insurer for creating shareholder value
Mission
As a responsible, customer focused market leader, we will strive to understand
the insurance needs of the consumers and translate it into affordable products
that deliver value for money.
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:
38

 Property and Casualty Insurance,

Life and Health Insurance,
Asset Management and Banking.
Easy access and reach across the country
Bajaj Allianz Life has offices now in over 510 towns across the countryenabling customer to buy our products and get quality efficient service almost
anywhere across the country
ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE
Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 cr.
3rd largest Assets Under Management (AUM) & largest amongst Insurance
cos. - AUM of Rs.51, 96,959 cr.
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

BALIC Claim Settlement Ratio

In FY 2012-13
Our death settlement is the highest among private insurers.
Claim settlement ratio 93.63%
Claim repudiation ratio 4.72%
Claim rejection ratio 1.65%
39

We have one of the lowest repudiation / rejection percentage among private

insurers.
Account value is refunded for repudiated unit linked policies.
Early claims with complete documents are settled within 30 days.
Deaths in calamities are settled with minimum documents and at less TAT.
e.g. Manglore Air crash.
Image based processing introduced which has reduced the turn around time
for claim settlement.
We settle 77% of claims through electronic mode for faster realization of the
claim proceeds.
We have a very broad based Claim Review Committee.
In FY 2012-13
Our death settlement is the highest among private insurers.
Claim settlement ratio 93.63%
Claim repudiation ratio 4.72%
Claim rejection ratio 1.65%
We have one of the lowest repudiation / rejection percentage among private
insurers.
Account value is refunded for repudiated unit linked policies.
40

Early claims with complete documents are settled within 30 days.

Deaths in calamities are settled with minimum documents and at less TAT.
e.g. Manglore Air crash.
Image based processing introduced which has reduced the turn around time
for claim settlement.
We settle 77% of claims through electronic mode for faster realization of the
claim proceeds.
We have a very broad based Claim Review Committee.
Bajaj Allianz iSecure Insurance Plan provides separate sets of premium rates
for sum assured less than Rs.2,000,000 and for sum assured of Rs.2,000,000
and above. The plan provides you with a separate set of premium rates for the
lifestyle categories - Preferred Non-Smoker, Non-Smoker, and Smoker, but
only for sum assured of Rs.2,000,000 and above.
Policies can be taken through the web also for sum assured of Rs.2,000,000
and above. Web rebates are available for these policies. The table below
shows the premiums for an age of 30 years and a sum assured of Rs.2,500,000
under all the lifestyle categories and for various policy terms:

Lifestyle Category

Policy Term (Years)

10

15

20

25

30

Smokers

3803

3973

4266

4753

5387

Non-Smokers

3469

3561

3723

4047

4486

Non- 3258

3353

3488

3780

4208

Preferred

41

Smokers

PRODUCTS & SERVICES

a) Additional Rider Benefits
You can enjoy extra coverage by choosing the optional additional rider
benefits at a nominal extra cost. The riders available with Bajaj Allianz
iSecure Insurance Plan are:
Bajaj Allianz Comprehensive Accidental Protection Benefit*
Bajaj Allianz Critical Illness Benefit**
Bajaj Allianz Hospital Cash Benefit**
(Please refer to Additional Rider Benefit brochures for more details)
* The Bajaj Allianz Comprehensive Accidental Protection (CAP) rider
includes the accidental death benefit, accidental permanent total/partial
disability benefit and waiver of premium benefit.
**Hospital Cash Benefit and Critical Illness Benefit riders can be taken only
at inception of the policy.
b) Option to Take an Individual or a Joint Life Policy
If you are married at policy inception, then your spouse can be included only
at the inception of the policy.

42

If you were not married at policy inception, you may include your spouse after
your marriage in your existing individual policy. Such inclusion can happen at
any policy anniversary subject to:
all the necessary procedures with respect to the inclusion being completed
prior to the policy anniversary.
the policy term post inclusion of your spouse (i) has to be equal to the
outstanding term of your policy and (ii) subject to such policy term being
available under the plan, and satisfactory evidence of insurability, being
submitted as specified by the company.
In a joint life policy, on annulment of marriage, the spouse will be excluded
from the policy. However, you can continue the policy on your life by
informing the company and paying premiums with respect to your life; this
will be calculated based on the age, lifestyle category (if applicable), sum
assured and policy term as at the inception of the policy. Once excluded, the
second life cannot be included in the policy again. If the annulment is not
informed to the Company, on the death of the second life, only the sum total
of the premiums paid from the date of separation (over and above the
premium required for your individual policy), will be refunded. But the policy
may be continued on your life.
c)

Alteration

of

Premium

Payment

Frequency

You can change the premium payment frequency at any policy anniversary
during the term of the policy, subject to the minimum premium limits under
the plan.
43

d)

Option

to

Take

Death

Benefit

in

Annual

Installments

Your loved ones may not be in a position to determine the best suitable
financial plan or to invest the policy proceeds to support their lifestyle, in case
of your unfortunate demise. We offer your nominee (both under the individual
and joint life option) the option to receive the policy proceeds in annual
installments over a settlement period of 10 years from the date of death This
option needs to be informed in writing to the company at the time of filling
the "Death Claim Form."
The annual installment will be an amount equivalent to (100% + x%) of sum
assured divided by 10 years. The x% will be decided by the company at the
time of admitting the death claim and will remain the constant throughout the
settlement period.
How to Choose the Best Term Insurance Plan

44

Parameter
Minimum
Entry Age
Maximum
Entry Age

Eligibility
18 years
60 years

Minimum Rs.250,000

for

general

category

and

Sum

Rs.2,000,000 for the categories split by Preferred Non-

Assured

Smoker, Non-Smoker & Smoker

Maximum
Sum

No Limit

Assured
Policy
Term

10, 15, 20, 25 & 30 years

Sum Assured Yearly

Minimum
Installment
Premium

<
Rs.2,000,000
>=
Rs.2,000,000

HalfYearly

Quarterly Monthly*

Rs.1000 Rs.500 Rs.250

Rs.100

Rs.3000 Rs.1500 Rs.750

Rs.250

Minimum
Maturity

28 years

Age
Maximum
Maturity

70 years

Age

45

The plan offers attractive premium rebates to you for choosing high sum assured. The high
sum assured rebates (HSAR), which will be applied on the tabular premium varying by the
sum assured bands and the lifestyle categories; Preferred Non-Smoker, Non-Smoker and
Smoker. Apart from the HSAR mentioned above, for a joint life policy, joint life rebate
(JLR) as mentioned below is also available:

Age of Older Life Assured

<=
40

41
to
50

>=
51

JLR as %of the total Gross

Premium#
applicable to the individual
lives

5% 3% 1%

# Total Gross premium is the total of the

calculated premiums for each individual life
after allowing for any HSAR for each
individual life

Term Insurance

Premiums paid are eligible for tax benefits as per Section 80C of the Income
Tax Act
Death benefit(s) are eligible for tax benefits as per Section 10 (10D) of the
Income Tax Act.
In case of changes in any relevant tax laws, the same will be applied from
time to time
Your car insurance policy is the most important document in your vehicle.
Millions of car owners across India trust Bajaj Allianz to insure their car.
Along with comprehensive coverage against physical damage, bodily injury
and cover againts third-party liability, your motor insurance brings to you
46

confidence and peace of mind. All this is backed by our superior claims
servicing capability and fast settlement record for vehicles insured by us.
Cashless settlement in over 1500 preferred workshops
Hassle free claim settlement
Quick and easy online purchase process
Our Car Insurance policy provides the following key benefits:
Get your Car Insurance or Car Insurance Renewal in easy steps.
Cashless claims at over 1500 preferred garages. Receive 75% on account
payment when cashless facility is not available.
Transfer up to 50% of your existing No Claim Bonus from any insurance
provider.
Avail of our 24x7 telephonic service for claims support and other assistance,
even on holidays.
Towing Facility in an event of a breakdown/accident.
Instant Claims Assistance and SMS updates on your motor claim status
through our 24x7 call-centers.
Bajaj Allianz's preferred workshops give you access to hassle-free
inspection and bring to you high service standards.
Roadside Assistance

47

This slideshare has been viewed "266926" times, view now

Roadside assistance is a free add-on feature which is available to all online
policies when 24/7 assistance is opted for.

Loss or damage to your car and two-wheeler against natural calamities

Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon,
hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide and
rockslide.
Loss or damage to your car and two-wheeler against man-made calamities
Burglary, theft, riot, strike, malicious act, accident by external means, terrorist
activity, any damage in transit by road, rail, inland waterway, lift, elevator or
air.
Personal Accident Cover
Coverage of Rs. 1 lakh for the individual owner/driver of the vehicle while
driving or travelling and mounting or dismounting from the two-wheeler.
48

Optional personal accident covers for co-passengers available.

Third Party Legal Liability
Protection against legal liability due to accidental damages resulting in the
permanent injury or death of a person, and damage caused to the surrounding
property

In these times of rising medical costs, Bajaj Allianz's Health Guard Family
Floater Option is the perfect health protection for you and your family. It takes
care of the expensive medical treatment incurred during hospitalization
resulting from serious illness or accident.
You want to protect your family, but rising medical expenses mean that an
unforeseen accident or illness can put your savings - and their future - in
jeopardy. Protect your family with the Bajaj Allianz Family Floater Health
Guard. This all-round health insurance policy covers you and your family
against medical expenses such as hospitalization, doctor's consultation,
diagnostic tests, medicines, ambulance, etc. Now you never have to worry
about running out of cash when it comes to your family's treatment.
Best Health Insurance in India
Don't go only by premium, The claim settlement record of the company is also
important.

49

Value Added Services refers to advanced and/or additional services given to

customers. You can save upto 30% on Medicine,OPD expenses and more
value added services *
A Bajaj Allianz Health Card makes you eligible for a number of discounts at
health and fitness centers across the country.
OPD discounts at select outlets.
Discounts on Pathologies at select outlets.
Discount on Radiology at select outlets.
Discounts on Wellness Test at select outlets.
Discounts on Pharmacy.
Many more lucrative health related offers at select outlets.

50

Cumulative bonus of 5% to your Limit of Indemnity for every claim free year.
5% cumulative bonus benefit for each claim free year, maximum up to 50%.
cumulative bonus would be passed for sum insured Rs.2,00,000/- and above
continuously renewed with us.
No medical tests upto 45 years, subject to clean proposal form.
Medical tests (pre-policy check-up) are mandatory for members aged 46 years
and above.
The pre-policy check up would be arranged at our empanelled diagnostic
centers.
100% cost of pre-policy check-up would be refunded if the proposal is
accepted and policy is issued.
In case the member opts for hospitals besides the empanelled ones, the
expenses incurred by him shall be reimbursed within 14 working days from
submission of all documents.

51

Health check-up at designated Bajaj Allianz diagnostic centers or

reimbursement upto Rs.1000/- at the end of 4 continuous claim-free years.
This benefit can be availed by only one member of the family.
Income tax benefit on the premium paid as per Section 80D of the Income Tax
Act.
The team consists of doctors and para medics who are responsible for health
underwriting and claims settlement.
Provides single window assistance to all the health insurance policy holders
for all health care related services.
Faster Claim Settlement due to single point of contact.
Effective and quick in resolving customer queries/better and systematic
redressal mechanisms.
Control over Claims Settlement and Customer service.
Meet the best Health Administration Team

It's common knowledge that buying health insurance helps you to save tax.
Under Section 80D of the Income Tax Act 1961, you can get a maximum tax
52

benefit of Rs.15000 on health insurance premium paid. The exemption limits

are as follows:
An individual can avail an annual deduction of Rs.15000 from taxable income
for health insurance premium paid for self and dependants. 'Dependents,' in
this case, refers to spouse and children.
In the case of senior citizens (aged 60 years and above), the annual deduction
from taxable income goes up to Rs.20000.
But here's a tidbit that might help you save more tax than you think:
If you are paying the premium for your parents' health insurance, you can
claim an additional tax benefit up to Rs.15000 under the provisions of Section
80D.
If your parents are senior citizens (aged 60 years and above), the benefit goes
up to Rs.20000.
However, there are a few conditions:
You cannot claim tax benefit on health insurance premium paid for your inlaws.
Proof of payment of premium has to be furnished, in order to avail the tax
benefit.
Except cash, any mode of payment is acceptable for claiming tax benefit.
53

The health insurance premium must be paid from your taxable income of that
year only if you want to claim a deduction. If you have paid the premium from
your savings or from gifts of money received by you, then you will not be
eligible to claim tax benefit under Section 80D.
*Tax benefits are subject to changes in tax loaws
Travelling abroad to a foreign land entails a lot of risk. Medical expenses in
foreign currency and hospitalization can be prohibitively expensive. Our
travel policy covers you for all medical eventualities for just a fraction of the
amount you would otherwise need.
Covers expenses of hospitalization, loss of baggage and other incidental
expenses
Covers you against trip cancellation, trip curtailment and burglary of your
home*
Quick disbursement of claims
Global expertise matched with local knowledge
Innovative packages to match individual needs
Only insurance company with in-house international toll-free numbers and fax
numbers
*Offered only with Travel Elite
Does your travel policy offer cashless service?
Yes. Our travel policy offers direct settlement for in-hospital medical expenses
abroad (subject to policy terms and conditions and sub-limits).

54

Travel Companion Plan

Travel Elite Plan
The Travel Companion and overseas travel insurance policy is a
comprehensive package which provides complete medical and health cover to
the international traveller.

Travel Care
Coverages

Benefit in US$

Travel Secure
Benefit in US$

Travel Value
Benefit in US$

Medical
Expenses,Evacuatio
n

50,000

2,00,000*

5,00,000

500

500

250**

1,000**

1,000**

100

100

100

25,000***

30,000***

and Repatriation
Emergency

dental

pain

relief 500

included in (I) above

Loss

of

Checked

Baggage
Per

baggage

maximum 50% and

per

item

in

the

baggage 10%
Delay of Baggage
Personal

Accident 10,000***

Only 50% of the

55

Sum

Assured

in

respect of the death

of the insured person
below the age of 18
years
Loss of passport

250

250

250

Personal Liability

1,00,000

2,00,000

2,00,000

$ 50 per day to $ 50 per day to $ 50 per day to a

Hijack

maximum $ 300 maximum $ 300

maximum $ 300

$ 20 per 12 hrs. $ 20 per 12 hrs. 12

Trip Delay

Emergency

12 hrs. maximum hrs.

$120

$120

1000

1,500

250

500

maximum

Cash

Advance****
Cash advance would 500
include

delivery

charges
Golfer Hole-in-one

**Per Baggage maximum 50 % and per item in the baggage 10 %. *** Only
50% of the Sum assured in respect of the death of the insured person below
age of 18 years **** Cash Advance Would include delivery charges.

One of the important features of our travel policies is Emergency Cash

Advance. It is an assistance service wherein the company facilitates providing
emergency cash to the insured during incidents such as theft/burglary of
56

luggage/money or hold ups by co-coordinating with the insured person's

relatives in India to provide emergency cash assistance to the insured person as
per his requirement, up to the limit specified in the policy schedule.
Claim Assistance number
In case of you need any mediclaim assistance in abroad all you need to do is
call us at the given toll free nos.

The Golfer's Hole-in-one is a sporting gesture from the company. It offers

reimbursement of expenses incurred in celebrating a hole-in-one by the insured
during the trip, anywhere in the world (excluding India), in a United States
Golfers' Association recognized golf course. This cover is provided in Travel
Companion.
Travel Elite also provides a Golfer's Hole-in-One cover. In addition to this, it
covers you against burglary of your home while you are away, along with
expenses incurred in the event that your trip is cancelled or curtailed.

Any medical condition or complication arising from it which existed before the
commencement of the policy period, or for which care, treatment or advice was
sought, recommended by or received from a physician.
Routine physical or other examination where there is no objective indication of
impairment of normal health.
Medical expenses beyond the expiry of the policy period.
Suicide, attempted suicide or willfully self-inflicted injury or illness, mental
disorder, anxiety/stress/depression/nervousness having no underlying physical
illness as a cause; venereal disease, alcoholism, drunkenness or the abuse of
drugs.
57

Manual work or hazardous occupation, self-exposure to needless peril (except

in an attempt to save human life), engaging in any criminal or illegal act.
Pregnancy, resulting in childbirth, miscarriage, abortion, or complication
arising out of any of the foregoing.
Experimental, unproven or non-standard treatment.
Treatment by any other system other than modern medicine (also known as
Allopathy).
The cost of spectacles, contact lenses, hearing aids, crutches and all other
external appliances and/or devices whether for diagnosis or treatment.
Delay of baggag e when the intended destination is in India.
Loss or damage to the insured's passport as a result of the confiscation or
detention by customs, police or any other authority.
Loss which is not reported to the appropriate police authority within 24 hours
of the discovery of the loss, and in respect of which an official report has not
been obtained.
Loss caused by the insured's failure to take reasonable steps to guard against
the loss of passport.

Before the policy start date

The insured is expected to inform us and an E mail should be sent by the
insured requesting the cancellation.
He/she should furnish policy number or schedule number in the E mail.
*There will be a Rs 250/- cancellation charges.
After the policy start date - If the insured has not travelled
Following documents should be sent to us:
Proof that the insured has not travelled overseas.
58

Photo copy or Scan copy of all the pages (including empty pages) of the
passport.
Reason for policy cancellation.
Visa rejection letter in case of visa refusal by embassy.
*Based on the underwriters approval the policy will be cancelled within one
working day after receiving the email (and passport copy post start date).
After the policy start date - If the insured has travelled
In case of any early return of the insured person prior to expiry of the policy
period, the company will refund premium at the rates shown in adjacent table
(subject to no claims being incurred on the policy
Your children belong to a generation which offers new and constantly
changing opportunities. Some might require big investments, some might
require smaller ones. You don't want to feel at any moment, that what I have
isn't enough for my child to pursue his dreams.
So we help you put away your hard earned money into fruitful investments
which in return promise to pay back fixed amounts at fixed intervals.
Investment in Super CashGain - Child Insurance will help you take on any
such opportunities that come your child's way!
Planning Better for Your Child's Future!

59

Plan Variants
You need to choose your sum assured (life cover) as a multiple of the base
sum assured, from the following four (4) plan variants:
Silver - with sum assured equal to the base sum assured
Gold - with sum assured equal to twice the base sum assured
Diamond - with sum assured equal to thrice the base sum assured
Platinum - with sum assured equal to quadruple the base sum assured
The surrender value, survival benefit and the maturity benefit will be
determined on the basis of only the base sum assured under your policy.
Plan

Silver

Variants
Sum
Assured
equal to

is

Base
Assured

Gold

Diamond

Platinum

SumDouble the BaseTriple the BaseQuadruple

Sum Assured

Sum Assured

the

Base Sum Assured

Tax Exemption u/s 80(C) & 10(10)D

Select up to 4 times your base sum assured as life cover-Super
CashGain - Platinum
60

Option to select policy term of 12, 16, 20 or 24 years.

Benefit from shorter premium payment term as no premiums are
payable for the last five policy years.
Get 20% of the base sum assured as cash-back at regular intervals,
which you may take as cash or ask us to adjust against your due or
future premium.
Flexibility to pay your future premiums in advance and avail discounts.
Option to
Keep your policy in force for full sum assured in case you miss paying
your premiums on due dates, provided you have paid at least 3 years'
premiums in full.
Convert your policy to a "single premium term cover with return of
premium (ROP)" policy, if you miss paying your premiums on due dates
provided you have paid at least 5 years' premiums in full.
Get more value for your money with high sum assured rebate on
premium.
.
Parameter

Details

Minimum Entry Age

0 years (18 years for additional riders )

Maximum Entry Age

65 years (50 years for additional riders )

Minimum Age at Maturity

18 Years

Maximum Age at Maturity

80 years (70 years, for plan variants other than

Silver & 65 years, for additional riders)

Policy Term

12, 16, 20 and 24 years

Premium Paying Term(PPT)

Policy term less 5 years

Minimum Premium

Rs.6,500
Rs.3,250

per
per

Yearly
Half-yearly

Installment
Installment
61

Rs.1,750

per

Quarterly

Installment

Rs.600 per Monthly installment

Maximum Premium

No Limit

Minimum Base Sum Assured

Rs.50,000

Maximum Base Sum Assured

No Limit

Survival Benefit
The interval at which the cash backs are received depend upon policy term
selected at the time of inception of policy.
Policy

Term Cash Backs

1st Cash-Back

(In Years)

2nd Cash-Back

3rd Cash-Back

12

3rd Year

6th Year

9th Year

16

4th Year

8th Year

12th Year

20

5th Year

10th Year

15th Year

24
6th Year
12th Year
18th Year
If the policy is paid-up or lapsed, the cash-backs shall not be payable. If policy
is in auto-cover, the cash-back will be 20% of the base sum assured less all the
premiums due-but-unpaid (to the extent the survival benefit amount can
support the premiums due in full) along with applicable interest.
Maturity Benefit
40% of base sum assured + applicable bonus will be the maturity benefit
Death Benefit
Sum Assured + applicable bonus will be the death benefit, in case of
unfortunate demise of the life assured during the policy term
Surrender Option
62

You will have the option to surrender your policy anytime after 3 years,
provided at least 3 year's premiums have been paid.
Planning Better for Your Child's Future!

Children are the greatest gift from God and

we welcome them with great joy and enthusiasm....

Premium Payment flexibility

You may adjust your cash-backs against your immediate & future premium.
You may, also, pay your premiums in advance in lump sums and get discount
on premiums that are paid in advance.
Additional Rider Benefits
You can enjoy extra coverage by choosing the optional additional rider
benefits at a nominal extra cost.
The riders available with Bajaj Allianz Super CashGain Insurance Plan are:
Bajaj Allianz Supplementary Death Benefit
Bajaj Allianz Comprehensive Accidental Protection Benefit*
Bajaj Allianz Family Income Benefit
63

Bajaj Allianz Critical Illness Benefit

Bajaj Allianz Hospital Cash Benefit
(Please refer to Additional Rider Benefit brochures for more details)
*The Bajaj Allianz Comprehensive Accidental Protection (CAP) rider
includes the accidental death benefit, accidental permanent total/partial
disability benefit and waiver of premium benefit
Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading
conglomerates-, Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers
in the world and Allianz AG, one of the world's largest insurance companies.
Bajaj Allianz Life Insurance
Is the fastest growing private life insurance company in India
Currently has over 4,40,000 satisfied customers
We have a presence in more than 550 locations with 60,000
Insurance Consultant providing the finest customer service.
One of India's leading private life insurance companies
Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between

Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of
expertise, stability and strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and
Development Authority (IRDA) certificate of Registration (R3) on May 2nd,
2001 to conduct General Insurance business (including Health Insurance
business) in India. The Company has an authorized and paid up capital of Rs
64

110 crores. Bajaj Auto holds 74% and Allianz, AG, holds the remaining 26%
Germany.
In its first year of operations, the company has acquired the No. 1 status
among the private non-life insurers. As on 31st March 2003, Bajaj Allianz
General Insurance maintained its leadership position by garnering a premium
income of Rs.300 Crores. Bajaj Allianz also became one of the few companies
to make a profit in its first full year of operations. Bajaj Allianz made a profit
after tax of Rs.9.6 crores.
Bajaj Allianz today has a network of 42 offices spread across the length and
breadth

of

the country. From

Surat

to

Siliguri

and

Jammu

to

Thiruvananthapuram, all the offices are interconnected with the Head Office
at Pune.
In the first half of the current financial year, 2004-05, Bajaj Allianz garnered a
premium income of Rs. 405 crores, achieving a growth of 84% and registered
a 52% growth in Net profits of Rs.20 Crores over the last year for the same
period. In the financial year 2003-04, the premium earned was Rs.480 Crores,
which is a jump of 60% and the profit zoomed by 125% to Rs. 21.6 Crores

65

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
Bajaj Allianz Life Insurance Company has developed insurance solutions that
cater to every segment and age-income profiles. For companies it provides
comprehensive 'Employee Benefit Solutions' (Group Term Life, EDLI,
Gratuity, Superannuation, Keyman Insurance and more); for the individual
Invest Gain (a unique life insurance plan where sustenance of income is
combined in the same plan that also pays a lump sum), Cash Gain (Money
Back), Child Gain (Children's plan), Risk Care (Pure Term), Lifetime Care
(whole life), Term Care (term with return of premium), Swarna Vishranti
(Retirement Plan), Protector (Mortgage term insurance plan), Unit Gain (Unit
Linked Plan), Unit Gain Single Premium, Unit Gain Plus, Unit Gain Plus SP,
Lifelong Gain Plan, Unit Gain Single Pension & Unit Gain Easy Pension
Plans

66

COMPETITORS
ICICI Prudential Life Insurance Co. Ltd.
Overview
ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank, a premier financial powerhouse, and Prudential plc, a leading
international financial services group headquartered in the United Kingdom.
ICICI Prudential was amongst the first private sector insurance companies to
begin operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).
ICICI Prudential Life's capital stands at Rs. 4,793 crores (as of March 31,
2013) with ICICI Bank and Prudential plc holding 74% and 26% stake
respectively. For the financial year 2013, the company has garnered total
premium of Rs 13,538 crores and has underwritten over 13 million policies
since inception. The company has assets held over Rs. 74,000 crores as on
March 31, 2013.
For the past decade, ICICI Prudential Life Insurance has maintained its
dominant position (on new business retail weighted basis) amongst private life
insurers in the country, with a wide range of flexible products that meet the
needs of the Indian customer at every step in life.
Vision & Values
Vision:
To be the dominant Life, Health and Pensions player built on trust by worldclass people and service.
67

This we hope to achieve by:

Understanding the needs of customers and offering them superior products

and service

Leveraging technology to service customers quickly, efficiently and

conveniently

Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders

Providing an enabling environment to foster growth and learning for our

employees

And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to

5 core values -- Integrity, Customer First, Boundaryless, Ownership and
Passion. Each of the values describe what the company stands for, the
qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity,
where we can play a significant role in redefining and reshaping the sector.
Given the quality of our parentage and the commitment of our team, there are
no limits to our growth.
Values :
Every member of the ICICI Prudential team is committed to 5 core values:
Integrity, Customer First, Boundaryless, Humility, and Passion. These values
shine forth in all we do, and have become the keystones of our success.
PROMOTERS
ICICI Bank (taken from the press release of ICICI Bank)
ICICI Bank Limited (NYSE:IBN) is India's one of the leading private sector
bank and the second largest bank in the country, with consolidated total assets
68

of US$ 111 billion at June 30, 2012. ICICI Bank's subsidiaries include India's
one of the leading private sector insurance companies and among its largest
securities brokerage firms, mutual funds and private equity firms. ICICI
Bank's presence currently spans 19 countries, including India.

About Prudential Plc (taken from the press release of Prudential Plc)
Prudential plc is incorporated in England and Wales, and its affiliated
companies constitute one of the world's leading financial services groups. It
provides insurance and financial services through its subsidiaries and affiliates
throughout the world. It has been in existence for over 160 years and has 363
billion in assets under management (as at 30 June 2012).
RANGE OF PRODUCTS
At ICICI Prudential Life, we understand that different individuals have
different needs.
The ideal insurance plan is one that addresses the exact insurance needs of the
individual which depends on the age and life stage of the individual apart
from a host of other factors.
ICICI Prudential Life offers plans under the following major need categories:

Term Plans

Wealth Plans

Child Plans

Health Plans

Retirement Plans

Group Plans

Rural Plans
69

ING Vysya Life Insurance Company Ltd.

About the company
ING Vysya Life Insurance Company Limited is an established life insurance
company with over a decade of experience serving over I million customers in
over 200 cities in India. Headquartered in Bangalore, ING Vysya Life
Insurance Company Limited is 100% owned by Exide Industries Limited.
The company distributes its products through key channels like Tied Agency,
Banc assurance and Alliances. The Tied Agency channel comprises over
30,000 ING Vysya Life Insurance Advisors, spread across the country. The
Banc assurance and Alliances business within ING Vysya Life Insurance is a
fast growing distribution channel, and includes the Banc assurance partner
(ING Vysya Bank), Referral Partners, Corporate Agents and Brokers.
The word "ING" and the device "

" are trademarks of ING Groep N.V. and

are used under license.

Company Shareholders
Exide Industries Ltd - With eight manufacturing plants strategically located
across the country, Exide is India's largest producer of automotive and
industrial batteries. Its range of products covers everything from the smallest
batteries required in motorcycles to the giant batteries powering submarines.
It is the market leader in the organised sector in both the automotive and
industrial segments. 'EXIDE' and 'SF (Standard Furukawa)', the flagship
brands of the Company, are also the leading battery brands in the country.
70

Life Insurance Corporation of India

The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves against
loss and disaster existed in primitive men also. They too sought to avert the
evil consequences of fire and flood and loss of life and were willing to make
some sort of sacrifice in order to achieve security. Though the concept of
insurance is largely a development of the recent past, particularly after the
industrial era past few centuries yet its beginnings date back almost 6000
years.
Life Insurance in its modern form came to India from England in the year
1818. Oriental Life Insurance Company started by Europeans in Calcutta was
the first life insurance company on Indian Soil. All the insurance companies
established during that period were brought up with the purpose of looking
after the needs of European community and Indian natives were not being
insured by these companies. However, later with the efforts of eminent people
like Babu Muttylal Seal, the foreign life insurance companies started insuring
Indian lives. But Indian lives were being treated as sub-standard lives and
heavy extra premiums were being charged on them. Bombay Mutual Life
Assurance Society heralded the birth of first Indian life insurance company in
the year 1870, and covered Indian lives at normal rates. Starting as Indian
enterprise with highly patriotic motives, insurance companies came into
existence to carry the message of insurance and social security through
insurance to various sectors of society. Bharat Insurance Company (1896) was
also one of such companies inspired by nationalism. The Swadeshi movement
of 1905-1907 gave rise to more insurance companies. The United India in
71

Madras, National Indian and National Insurance in Calcutta and the Cooperative Assurance at Lahore were established in 1906. In 1907, Hindustan
Co-operative Insurance Company took its birth in one of the rooms of the
Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The
Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life)
were some of the companies established during the same period. Prior to 1912
India had no legislation to regulate insurance business. In the year 1912, the
Life Insurance Companies Act, and the Provident Fund Act were passed. The
Life Insurance Companies Act, 1912 made it necessary that the premium rate
tables and periodical valuations of companies should be certified by an
actuary. But the Act discriminated between foreign and Indian companies on
many accounts, putting the Indian companies at a disadvantage.
The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, it
rose to 176 companies with total business-in-force as Rs.298 crore in 1938.
During the mushrooming of insurance companies many financially unsound
concerns were also floated which failed miserably. The Insurance Act 1938
was the first legislation governing not only life insurance but also non-life
insurance to provide strict state control over insurance business. The demand
for nationalization of life insurance industry was made repeatedly in the past
but it gathered momentum in 1944 when a bill to amend the Life Insurance
Act 1938 was introduced in the Legislative Assembly. However, it was much
later on the 19th of January, 1956, that life insurance in India was
nationalized. About 154 Indian insurance companies, 16 non-Indian
companies and 75 provident were operating in India at the time of
nationalization. Nationalization was accomplished in two stages; initially the
72

management of the companies was taken over by means of an Ordinance, and

later, the ownership too by means of a comprehensive bill. The Parliament of
India passed the Life Insurance Corporation Act on the 19th of June 1956, and
the Life Insurance Corporation of India was created on 1st September, 1956,
with the objective of spreading life insurance much more widely and in
particular to the rural areas with a view to reach all insurable persons in the
country, providing them adequate financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart
from its corporate office in the year 1956. Since life insurance contracts are
long term contracts and during the currency of the policy it requires a variety
of services need was felt in the later years to expand the operations and place
a branch office at each district headquarter. Re-organization of LIC took place
and large numbers of new branch offices were opened. As a result of reorganisation servicing functions were transferred to the branches, and
branches were made accounting units. It worked wonders with the
performance of the corporation. It may be seen that from about 200.00 crores
of New Business in 1957 the corporation crossed 1000.00 crores only in the
year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore
mark of new business. But with re-organisation happening in the early
eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on
new policies.
Today LIC functions with 2048 fully computerized branch offices, 109
divisional offices, 8 zonal offices, 992 satallite offices and the Corporate
office. LICs Wide Area Network covers 109 divisional offices and connects
all the branches through a Metro Area Network. LIC has tied up with some
Banks and Service providers to offer on-line premium collection facility in
selected cities. LICs ECS and ATM premium payment facility is an addition
73

to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres
have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai,
Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of
providing easy access to its policyholders, LIC has launched its SATELLITE
SAMPARK offices. The satellite offices are smaller, leaner and closer to the
customer. The digitalized records of the satellite offices will facilitate
anywhere servicing and many other conveniences in the future.
LIC continues to be the dominant life insurer even in the liberalized scenario
of Indian insurance and is moving fast on a new growth trajectory surpassing
its own past records. LIC has issued over one crore policies during the current
year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th
Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding
period of the previous year.
From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life insurance
business. The same motives which inspired our forefathers to bring insurance
into existence in this country inspire us at LIC to take this message of
protection to light the lamps of security in as many homes as possible and to
help the people in providing security to their families.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on
Indian soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.
74

1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government
to collect statistical information about both life and non-life insurance
businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act
with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over
by the central government and nationalised. LIC formed by an Act of
Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from
the Government of India.
The General insurance business in India, on the other hand, can trace its roots
to the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India
are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of
India, frames a code of conduct for ensuring fair conduct and sound business
practices.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.

75

1972: The General Insurance Business (Nationalisation) Act, 1972

nationalised

the

general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.
Objectives of LIC

Spread Life Insurance widely and in particular to the rural areas and to
the socially and economically backward classes with a view to reaching
all insurable persons in the country and providing them adequate
financial cover against death at a reasonable cost.

Maximize mobilization of people's savings by making insurance-linked

savings adequately attractive.

Bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the
best advantage of the investors as well as the community as a whole,
keeping in view national priorities and obligations of attractive return.

Conduct business with utmost economy and with the full realization
that the moneys belong to the policyholders.

Act as trustees of the insured public in their individual and collective

capacities.

Meet the various life insurance needs of the community that would arise
in the changing social and economic environment.

76

CHAPTER III
RESEARCH METHODOLOGY

The Research methodology adopted in the study-1 is Conclusive in nature

and the collection of the data is done through the secondary source i.e.
internet, companies broachers etc.
DESCRIPTIVE RESEARCH STUDY:.
In this type of research study the researcher must able to define clearly,
what he wants to measure and must find adequate methods measuring it
along with the clear cut definition of population he wants to study. Since
the aim of study is to obtain complete and accurate information, the
procedure must be carefully planned .The design in such studies must be
rigid and rigid.In planning and designing a specific research project it is
necessary to anticipate all the steps that must be under taken if the project
is to be successful in collecting valid & reliable information. If it were
broken down into very small parts or activities, the marketing research
process would consist of a great no of steps ---Specifying research objectives.
Preparing a list of the needed information.
Designing the data collection project.
Selecting a sample type.
77

Determining a sample size.

Organizing and carrying out the fieldwork.
Analyzing the collected data and reporting the findings.
The comparison is shown through the table on the next page
In that study what we found is that there is no restriction in the entry
age of the ULIP offered by the BAJAJ ALLIANZ life insurance
company but on all other ( except ICICI PRU ) there is some restriction
on the lower age.
The maturity period of the ULIP is differs from company to company
but it is highest in case of Birla sun life as far as the payment of
premium is concerned BAJAJ ALLIANZ life insurance has all the
option whereas Birla sun life doesnt want any type of flexibility in the
payment of premium and ICICI has only yearly premium payment term.
The Ceiling on the lower level of premium is low in case of all except
icici prudential. On account of death benefit all the companies is giving
different types of benefits to their ULIP holders. The pre-matured
withdrawal is also allowed in all the cases but in case of Birla sun life
the customer needs to pay some charges on account of pre-matured
withdrawal which they called as surrender charges. In case of Bajaj
Allianz life Insurance and Birla sun life, policy fund is given to the
policy holder on maturity.
The guaranteed benefits of Bajaj Allianz Life Insurance Company have
no other substitute. The hospital cash benefit make the company
different from others and also some tax benefits are also their u/s 80(C)
and 10 10(D) of income tax act. Now comes the switch between various
funds offered by the company, in that case 3 free

CHAPTER IV
DATA ANALYSIS
78

After collection the data the most important part comes which is data analysis.
It is the most significant part of the research. Whole work regarding data depe
nds upon the data collection. During the period of summer training I have
collected my data in the area of Lucknow & some parts of Lucknow. For the
collection of data I had gone to the market, gathered places like malls, fun
Cinema halls, and the other gathered places where I can get the potential
customer. As the plans of Bajaj Allianz target medium income level in the
urban area. The minimum premium of the policy is 12,000 yearly, and 15,00
monthly. So had to target those places where I can get person who is salaried
and their salary most be more than10,000.For the collection of data various
questioner is prepared by me and I have gotten certain result form it. These
question and results are thus:-

Q1. Do you invest your money in insurance sector? If yes then which
company you recall firstly?
79

I have gotten mostly person within 100 people they recall firstly LIC because
it is public sector industry and from lots of years it is connected with the
public. So public believe it more than other insurance company.

HDFC
LIC

ICICI

Luck

% of
Belie
ve

Bajaj
Alianz

As in the market out of hundred people 50% people say, on the name
of insurance they recall firstly LIC then 18 % people say about ICICI and
then17% people recall HDFC Standard life and rest people recall other.

Q2.How many times you have invested your money in insurance

sector without consulting to any Financial Consultant.

80

Ans-consulting with Baja Allianz

In this survey I have analyses that mostly people dependent upon financial
consultant for the investment of their money in the insurance sector. Financial
Consultant pays main role in the insurance sector regarding sales
of policies. For the distribution enhancement of the policy Bajaj Allianz it is
most important that it should give more preference to its financial consultant.
It should offer attractive commission to the financial consultant so that they
work for the organization by heart. It is financial consultant who consults with
the people and convinces them for investing their money in the respective
insurance

company.

In

the

market

there

is

certainly

ICICI

prudential have more financial consultant than Bajaj Allianz There are 17
insurance companies in the market and they are trying to increase their market
share and for this purpose they will definitely give more benefit to public so
that they may agree to become financial consultant.

Q3.Are you aware of the advertisement of Healt Insurance Policy? if

yes then are you able to understand what it actually want to say?
81

Ans :-when I talked to the people in this regard then he replied that they
areaware about the this Policy and I am talking about Bajaj Allianz. It shows
our advertisement is making place in the mind of the customer. They are
aware of our insurance company. It will develop faith on

the industry and help to the financial consultant of the Bajaj Allianz to
convince them because advertisement have maid their work to tell them itis a
renounce company and they will not cheated by this company.

4)For the investment in insurance sector you choose company or

your investment based upon the financial consultant.
82

Ans:-Through this question I will be able to know that role of the financial
consultant.
FC chooself
Through the graph I can analyze that most of the investment is done through
financial consultant. 32 persons out of 100 people choose their investment
company themselves. For the purpose of selling policy Financial Consultant
will give more effective work. Generally in this sector mostly work are done
through contact and financial consultant use their contacts for the purpose
of selling policies. Generally what happens that a specific area is covered by
financial consultant who helps in improving in market share of insurance
company.

5)

When I

was

doing phone calling for the recruitment

of financial

consultant then most of person was denying for the job of financial
consultant
83

ANS- because Bajaj Allianz gives only commission to the financial consultant
on each policy. Mostly person dont want to work on commission basis. We
all know that insurance sector have lots of money and here you can earn
enough money but it is a challenging job. If company will give fix salary to
the financial consultant then it will get more financial consultant. A financial
consultant gets minimum 20% and maximum 30% commission on the
premium. Fix salary will entice more public for the financial consultant.

6) Have you ever invested your money in Bajaj Allianz?

Ans:-From 100 person ten person said they have invested their money in this
company. Certainly the market share of this company is not comparable to the
84

LIC but when we talk about private sector companies; all companies are
moving around this minimum value. Till today mostly people want to invest in
public sector bank like LIC. Customer is loyal for LIC. But Bajaj Allianz e is
also trying to increase its market share.

7)Have you gotten calls for the investment in Bajaj Allianz for insurance?
Ans:Yes/ No

Out of hundred people only 32 people have gotten calls for investment in
Bajaj Allianz. This data showing that people is getting call for investment but
only few invest their money. It shows that It has to improve its marketing
system and the recruit more financial Consultant for providing better service
so that more person take interest in it. Analysis of the recruitment of Financial
Consultant
In the recruitment of financial consultant I have recruited 12 financial
consultants. In the process of recruitment of financial consultant I found that
most of the person generally doesnt want to work on commission basis. I
have recruited him having shown the dream like this:-I have divide market on
85

two parts. In the first part I have divided people into two parts 1st who are
businessman and 2nd employ or student.
1st Business man:-There are certain benefits if any businessman joins
insurance sector like Bajaj Allianz as a financial consultant. The table is given
below.
2nd Employ or Student:-For the recruitment of employ and student I have
made dreams which suit them. The benefits regarding FC if they will be a
FC are given below.
a. Performance appraisal of the employ
b. Tax savingc. 150% saving of income. Better opportunity for growing faster
Business mane. It will give back support . Build

your

confidence

in the diverse situation. Fill power and energy because it will give uh
.support of both employ and financial condition.
a. Better opportunity to earn extra or if yo are a student then you can earn or
draw your pocket expenses through FC.
b. You will learn that how to present your view to other.
c. You will get better opportunity to learn marketing skill.
d. You will get better stand to understand Student or employee Organization
behavior.
e. In the adverse situation it will help you financially.
f. In a hour per day you can earn 20 thousand per month.
g. You will meet with different personality
In the analysis part of the recruitment of financial consultant I can say that the
work of financial consultant is very beneficial for the people and if we give
86

them better presentation and try to understand him how it will help you then
they will definitely join it. In the market there are 17 insurance
companies. All these company are recruiting financial consultant but
Bajaj Allianz L is giving a normal target to their financial to their FC which
can be easily achieved by FC. Thats why taking more interest in this Bajaj
Allianz while the charges for making FC is Rs.925 and Rs.825. During the
recruitment of financial consultant I have recruited 12financial consultants. In
these consultants 4 people is doing MBA, 1 people is doing MA. and 9 are the
employ of different organization while the other are doing 1 are doing BCA. I
have tried to fulfill q score of FC. During the recruitment of financial
consultant I have recruited 12 FC while 08 are in the process. In this twenty 8
person are doing their study and because of their exam they dont agree to join
it this time but after exam they will consider one more time about it. Rest
people are providing time of meeting again and again butIll make them
FC. The main competitor of Bajaj Allianz is ICICI PRUDENCIAL and LIC.
Today Bajaj Allianz is no. one position in insurance. It has also gotten most
trusted company award of 2007. Still today people give more priority to LIC
then the other insurance company but they dont know it gives 40%
commission to this FC on the first premium but LIC gives only 15 % premium
to their FC. Bajaj Allianz gives priority to quality only. Quantity doesnt
matter for it, but other company like ICICI gives priority to quantity then
quality. I can say that the criteria, view, vision, mission of Bajaj Allianz is
not comparable to the other company and because of these it gives more
reliability, and benefits to their employ and their customer. In Delhi and NCR
region is spreading their branch for more and more market share and help in
getting business.
87

CHAPTER V
CONCLUSION

88

Bajaj Allianz is the renounce industry in the insurance sector. It believes in

quality not in quantity. Bajaj Allianz have total 12 group companiesany.In the
insurance sector main work is done by the financial consultant who brings
business to the industry. It gives more priority for the recruitment of financial
consultant thats why it has setup 5-qs core. It gives priority that is
professional like as MBA, CA, ENGINEERS, DOCTORS, LAYERS, AND
OTHER PROFESSIONAL.
During summer training I have given presentation

I try to contact

those person to whom I know and contact them for the purpose of financial
consultant. In this process I have recruited 12 people who are either CA,
MBA, SOFTWARE ENGINEER, STUDENT .It gives more facilities to their
employ and provides better opportunity to their employ for promotion because
it has minimum target for fulfillment. FC have to give 36 policy or 360 lack
premium with in six months which less in comparison to the other insurance
industry and for Delhi region where the transaction of money is too high. FC
has chances to become sales development manager with in six month months
when he fulfills the target. The post of SDM is based on payroll. He will get
package of 2.75 lack per year. India is one of the most lucrative financial
services market in the world. The insurance market in India is estimated to be
around 400 Bn growing a an astounding rate of 30% p.a. Still the experts
believe that the potential is largely untapped. The insurance market is
dominated by the public sector giant LIC with amarket share of around
71.4%. With the private players leading the grow thstory, this sector is
witnessing more marketing actions than even the FMCG sector. Traditionally
insurance are sold through direct selling The reason being purely the nature of
product warrants direct communication with the consumer. Kilter categorizes
Insurance as an "Unsought" product. Unsought products are those which are
89

ranked lowest in terms of consumer interest. Consumers may not be even

aware of either the need or existence of this product. Historically, Indian
insurance products are sold for wrong reasons. People buy insurance to avail
the tax benefit and not to ensure protection and LIC was happy to oblige.
Hence most of the sales talks start with the question " How much do you pay
tax?" . Little money was spent on brand building because there was no
competition for LIC. Things have now changed. With the increasing financial
literacy, volatilee conomy and uncertain future are prompting Indians to look
seriously at insurance as a means for protection rather than tax saving
instrument. With more private players entering the domain, the issues of
differentiation and branding became important. Bajaj Allianz is one of the
major players in the insurance market. One of the first private insurers to enter
the market, Bajaj Allianz entered the scene in 2000. It was eclipsed by ICICI
prudential with its media and sales blitz making it second largest player in the
Insurance market. 2006 saw a shake up in this market with Bajaj Allianz
edging out ICICI from the second spot . Bajaj have a market share of around
8% and Bajaj Allianz and ICICI fighting at 3rd place with around 7.5%. Bajaj
Allianz is currently focusing on The Pension Plan and the Child Plan aimingto
cash in on the potential of these segments. The pension market in India is
estimated to be around 1000 crore with a huge potential for growth in the
future.The change in the demographics is going to drive the pension market in
India. Traditionally in a Joint family, there was an inherent protection
for elders. With the urbanization and the evolution of Nuclear Urban
Family( NUF) , elders are often forgotten. Out of the 314 men workers in
Indiaonly

CHAPTER VI
SUGGESTION
90

When we talk about suggestion I think I have small experience of

this sector but whatever I have pointed out which are thus.
In the recruitment of financial consultant I found that mostly person dont
want to give rs.925 or rs.825. I have faced some difficulties when they dont
agree to give this much amount. If the company will less this charge then it
will get more FC.
It should organize weakly meeting with FC for the business and give
appraisal training to FC. It works as a performance appraisal of the FC.
It should give monthly party to the FC for the attachment with the industry.
It should give canopy facility to CDM or RC for the recruitment of FC and
if it will give canopy facility to FC then they can give more facility.
Generally we buy only that thing whatever we see. It means that its hould
spend more on advertisement. Other insurance industry like LIC and ICICI
advertise mostly through banner on metro station, on road and advertise in the
cinema hall. Add more and more movie hall for the advertisement.

CHAPTER VII
BIBLIOGRAPHY
91

Books One
author Philip Kotlers marketing management,
identifying market segment and targets. Page201.Connecting with customer
value page 116MagazinesBrowser given by HDFCSLMagazine related with
HDFC Internet Name of sight on net:- hdfcstandard life insurance.
comhttp://www.IRDA .com
(http://www.persmin.nic.in/)
http://www.irdaindia.org/ins_ombusman.htm
(URL:http://www.irdaindia.org/)
[email protected])
[www.bajajallianz.com]

CHAPTER VIII
92

ANNEXURE
QUESTIONNAIRE
1. NAME:
2. AGE:
3. PH.NUMBER (O) : RESIDENCE :
4. OCCUPATION:
5. ADDRESS:
_____________________________________________________
6. DO YOU THINK LIFE INSURANCE COVER IS IMPORTANT FOR
ALL?
a) Yes b) No
7. WHAT IS THE PREFFERED CRIETRIA FOR SELECTING THE
LIFE INSURANCE POLICY?
a) Term/ Duration of the policy b)Annual Premium
c) Brand Name of the company d)others(Plzspec.)
8. DO YOU THINK THAT LIFE INSURANCE POLICY IS ENOUGH
TO COVER YOUR LIFE?
a) Yes b) No
9) ARE YOU GOING TO TAKE INSURANCE POLICY IN THE NEAR
FUTURE ( WITH IN 6 MONTHS) ?
a) Yes b) No

93

10. WHICH PREMIUM TERM IS SUITABLE FOR YOU?

a) Quarterly b) Half Yearly
c) Annualy d) Single Premium

Thanks for Your Corporation

94