“CHANNEL DEVELOPMENT

FOR THEBAJAJ ALLIANZ LIFE INSURANCE ”

Submitted towards the partial fulfillment for award of degree ofMaster of Business administration (M.B.A)

Submitted by : -Dilip Kumar Tandi

Roll No. : 0711670037MBA (Batch 2007 -2009)

Jaipuria Institute of Management, 14-C, Vasundhra, Ghaziabad Approved by AICTE (All India Council of Technical Education)

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JAIPURIA INSTITUTE OF MANAGEMENT

14-C, vasundhra, Ghaziabad (U.P.)

CERTIFICATE

This is to certify that the project report titled “CHANNEL DEVELOPMENT FOR THE BAJAJ ALLIANZ LIFE INSURANCE” is a bonafied work carried out by Dilip Kumar Tandi s/o Sri Haldhar Tandi in partial fulfillment for award of the degree of Master of Business Administration (M.B.A.) from U.P. Technical University , Lucknow.

NEERJA CHAUDHARY ILA CHATURVEDI

(PIC MBA 3rd Sem) (HOD, MBA)

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DECLARATION

I hereby declare that the project report “CHANNEL DEVELOPMENT FOR THE BAJAJ ALLIANZ LIFE INSURANCE” submitted for is MASTER OF BUSINESS ADMINISTRATION my original work and the project report has not formed the basis for award of any degree, diploma, associate ship, or other similar titles.

Date

Place Signature

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PREFACE

The importance of an academic course would gain advantage and

acceptance of the true form, only through practical experience. Hence it

is quite necessary to put the theories into talk. It is rigidly accepted that

the theory widens one’s thinking horizons viz. Concepts of marketing

philosophies, but practice indicates the modern marketing and used in

variety of settings of products.

The summer training programmers are designed to give the

manager the future of the corporate happenings and work culture. These

real life situations are entirely different from the stimulated exercise

enacted in an artificial environment inside the summer training

programmers and designed, so that the manager to tomorrow do not feel

ill case when the time comes to shoulder responsibilities. Practical

exposure for the MBA students is very necessary because what they

study in the classroom is not the reality. Situation in the market is

unknown and very much unpredictable. So the practical experience is

very much necessary this is made possible with the summer training

project in Bajaj Allianz Life Insurance Co. in marketing related to search

for the Potential Insurance Consultants.

All organizations involves into business with some objective and

one of the objectives is to endorse product or service which they

produce. In my marketing project I tried to fid out the potential

Insurance Consultants through questionnaire for the Bajaj Allianz Life

Insurance Co. The product for the insurance company is its policies

which company sale through its Insurance Consultants. So its quite clear

that there will be as many Insurance Consultants. There will be increased

sales.

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ACKNOWLEDGEMENT

I want to thank to those people who helped me in this

summer training research project. First of all I would like to

express my profound gratitude to the Branch Head of

Bajaj Allianz Life Insurance Co, Jhansi, Mr. Rahul

Anand who gave me this opportunity to do this project. He

always remained a wonderful guide and supporter

throughout this project.

I am extremely grateful to All (Faculty), JAIPURIA INSTITUTE OF

MANGEMENT,Ghaziabad) for providing me the proper guidance in

preparation of this project report.

At the end I want to say thanks to all persons involved

in this project directly or indirectly.

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TABLE OF CONTENTS

1. Executive Summary

2. About Life Insurance Sector

3. Industry Overview

4. Company Profile

5. About Policies Of Bajaj Allianz

6. Distribution Channel

7. Research Methodology

8. SWOT Analysis

9. Findings

10. Recommendations

11. Bibliography

12. Questionnaire

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EXECUTIVE SUMMARY

At the present time of cut throat competition in every industry

every company want to top the chart and want to show as big as possible

figure of profits in its balance sheet. It is quite clear today that at

present time the growth of any organization is possible only with the

help of hard working and well focused staffs that are the backbone of

any organizations.

It was my great pleasure that I did my summer training from Bajaj

Allianz Life Insurance Co. where I got to know that in Insurance

industry the skills of the man power matters most and increasing number

of Insurance Consultants help the organization to increase its issuance of

policies which in turn result in growth for the organization. So it is quite

clear that Insurance Consultant’s matter most for the Bajaj Allianz Life

Insurance Co.

My job was to create the database for the organization so that the

number if Insurance Consultant’s could be increased. My job was to

approach the individuals who are interested in joining the organization

as Insurance Consultant, within the limitations like related to age,

related to qualification, and then his/her details with the help of

questionnaire. I visited various areas of Delhi, Ghaziabad in order to

meet different types of people.

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WHAT IS LIFE INSURANCE

First of all we should come to know that what is Life Insurance.

The different definitions describing life Insurance are as:-

“Insurance in which the risk insured against is the death of a

particular person, the insured, upon whose death while the policy is in

force, the insurance company agrees to pay a stated sum or income to the

beneficiary. Life Insurance pays a specified sum to the beneficiaries

upon the death of the insured. It is generally used to provide cash to your

family in the event of your death. There are several types of life

insurance whole life insurance provides a lifetime of protection as long

as you pay the premiums to keep the policy active. They also accrue a

cash value and thus offer a savings component. Term life insurance

provides protection only during the term of the policy and the policies

are usually renewable at the end of the term. Insurance on human lives

including endowment benefits, additional benefits in event of death or

dismemberment by accident or accidental means, additional benefits for

disability, and annuities”.

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LIFE INSURANCE INDUSTRY IN INDIA

Many may not be aware that the life insurance industry of India is

a s old as it is in any other part of the world. The first Indian Life

Insurance Company was the Oriental life Insurance Company, which was

started in India in 1818 at Kolkata. A number of players (over 250 in life

and about 100 in non-life) mainly with regional focus flourished all

across the country. However, the Government of India, concerned by the

unethical standards adopted by some players against the consumers,

nationalized the industry in two phases in 1956 (life) and 1972 (non-

life). The insurance business of the country was then brought under two

public sector companies, Life Insurance Corporation of India (LIC) and

General Insurance Corporation of India (GIC).

With such a large population and the untapped market area of this

population Insurance happens to be a very big opportunity in India.

Today it stands as a business growing at the rate of 15-20 percent

annually. Together with banking services, it adds about 7 percent to the

country’s GDP. In spite of all this growth the statistics of the penetration

of the insurance in the country is very poor. Nearly 80% of Indian

populations are without Life Insurance cover and the Health Insurance.

This is an indicator that growth potential for the insurance sector is

immense in India. It was due to this immense growth that the regulations

were introduced in the insurance sector and in continuations “Malhotra

Committee” was constituted by the government in 1993 to examine the

various aspects of the industry. The Committee recommended throwing

open the sector to private players to usher in competition and bring more

choice to the consumer. The objective was to improve the penetration of

insurance as a percentage GDP, which remains low in India even

compared to some developing countries in Asia. The key element of the

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reform process was Participation of overseas insurance companies with

26% capital. Creating a more efficient and competitive financial system

suitable for the requirements of the economy as the main idea behind the

reform.

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A BRIEF HISTORY

The origin of insurance is very old. The time when we were not

even born; was has sought some sort of protection from the unpredictable

calamities of the nature. The basic urge in man to secure himself against

any form of risk and uncertainty led to the origin of insurance.

The insurance came to India from UK; with the establishment of

The Oriental Insurance Corporation in 1818. the Indian Life Insurance

company act 1912 was the first statutory body that started to regulate the

Life Insurance business in India. By 1956 about 154 Indian, 16 foreign

and 75 provident firms were been established in India. Then the central

government took

over these companies and as a result the LIC was formed. Since then LIC

has worked towards spreading Life Insurance and building a wide

network across the length and the breath of the country. After the

liberalization the entrance of foreign players has added to the

competition in the market.

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. In 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. In 1972 the General Insurance Business in

India with effect from 1 s t January 1973. it was after this that 107

insurers amalgamated and grouped into four companies viz. the National

Insurance Company Ltd, the New India Assurance Company Ltd, the

Oriental Insurance Company Ltd. GIC incorporated as a company .

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INSURANCE SECTOR REFORMS

In 1993, Malhotra Committee headed by former Finance Secretary

and RBI Governor was formed to evaluate the Indian industry and give

its recommendations. The committee came up with the following major

provisions:-

Private Companies with a minimum paid up capital of Rs. 1 bn

should be allowed to enter the industry.

Foreign companies may be allowed to enter the industry in

collaboration with the domestic companies.

Only one state level Life Insurance Company should allow to

operate in each state.

Reforms were initiated with the passage of Insurance Regulatory

and Development Authority (IRDA) Bill in 1999. IRDA was set up as an

independent regulatory authority, which has put in place regulations in

line with global norms.

IRDA : The IRDA since its incorporation as a statutory body has been

framing regulations and registering the private sector insurance

companies. IRDA being an independent statutory body has put a

framework of globally compatible regulations .

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INSURANCE MARKET IN INDIA

By any yardstick, with about 200 million middle class households,

presents a huge untapped potential for players in the insurance industry.

Saturation of markets in many developed economies has made the Indian

market even more attractive for global insurance majors. With the per

capital income in India expected to grow at over 6% for the next 10 years

and with improvement in awareness levels, the demand for insurance is

expected to grow at an attractive rate in India. An independent

consulting company, the Monitor Group has estimated that the Life

Insurance market will grow.

WINDS OF CHANGE

Reforms have marked the entry of many of the global insurance

majors into the Indian market in the form of joint ventures with Indian

companies. Some of the keys names are AIG, New York Life, Allianz,

Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry of

new players has rejuvenated the erstwhile monopoly player LIC. Which

has responded to the competition in an admirable fashion by launching

new products and improving service standards.

Market Expansion :

There has been an overall expansion in the market. This has

been possible due to improved awareness levels thanks to the large

number of advertising campaigns launched by all the players. The scope

for expansion is still unlimited as virtually all the players are

concentrating on large cities and towns – except by LIC to an extent

there was no significant attempt to tap the rural markets.

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New Product Offerings :

There has been a plethora of new players, mainly from the stable

of their international partners. Customers have tremendous choice from a

large variety of products from pure term insurance to unit-linked

investment products. Customers are offered unbundled products with a

variety of benefits as riders from which they can choose. More customers

are buying products and services based on their true needs and not just

traditional money-back policies, which is not considered very

appropriate for long-term protection and savings. However, there are still

some key new products yet to be introduced – e.g. health products.

Customer Service :

Not unexpectedly, this was one area that witnessed the most

significant change with the entry of new players. There is an attempt to

bring in international best practices in service and operational efficiency

though use of latest technologies. Advice and need based selling is

emerging through much better trained sales force and advisors. There is

improvement in response and turnaround times in specific areas such as

delivery of first policy receipt, policy document, premium notice, final

maturity payment, settlement of claims etc. However, there is a long way

to go and various customer surveys indicate that the standards are still

below customer expectation levels .

Channels of Distribution :

Till two years back, the only mode of distribution of life insurance

products was through Agents. While agents continue to be the

predominant distribution channel, today a number of innovative

alternative channels are being offered to customers. Some of them are

bancassurance, brokers, the internet and direct marketing. Though it is

too early to predict, the wide spread of bank branch network in India

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could lead to bancassurance emerging as a significant distribution

mechanism.

The introduction of private players in the industry has added to the

colors in the dull industry. The initiatives taken by the private players

are very competitive and have given immense competition to the on time

monopoly of the market LIC. Since the advent of the private players in

the market the industry has seen new and innovative steps taken by the

players in this sector. The new players have improved the service quality

of the insurance. As a result LIC down the years have seen the declining

phase in its career. The market share was distributed among the private

players. LIC market share has decreased from 95% (2002-03) to 82%

(2004-05).

The following companies has the market share of

the life insurance industry.

Insurance Company Market Share (Fig. in %)

LIC 71.44

ICICI Prudential 11.35

Bajaj All ianz 7.06

HDFC Standard Life 2.37

SBI Life 1.81

Birla Sun Life 1.49

Max New York Life` 0.98

TATA AIG 0.79

Aviva 0.89

OM Kotak Mahindra 0.86

ING Vyasa 0.57

Reliance 0.37

MetLife 0.24

Market Share of Life Insurance Companies as of May 2006

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CURRENT SCENARIO OF THE

INSURANCE INDUSTRY IN INDIA

India with about 200 million middle class household shows a huge

untapped potential for players in the insurance industry. Saturation of

markets in many developed economies has made the Indian market even

more attractive for global insurance majors. The insurance sector in

India has come to a position of very high potential and competitiveness

in the market.

Innovative products and aggressive distribution have become the

say of the day Indians, have always seen Life Insurance as a tax saving

device, are now suddenly turning to the private sector that are providing

them new products and variety for their choice.

Life Insurance industry is waiting for a big growth as many Indian

and Foreign companies are waiting in the line for the green signal to

start their operations. The Indian Consumer should be ready now because

the market is going to give them all array of products, different in price,

features and benefits. How the customer is going to make his choice will

determine the future of the industry.

CUSTOMER SERVICE

Consumers remain the most important centre of the insurance

sector. After the entry of the foreign players the industry is seeing a lot

of competition and thus improvement of the customer service in the

industry. Computerization of operations and updating of technology has

become imperative in the current scenario. Foreign players an bringing

in international best practices in service through use of latest

technologies. The one time monopoly of the LIC and its agents are now

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going through a through revision and training programs to catch up with

the other private players.

DISTRIBUTION CHANNELS

Till date insurance agents still remain the main source through

which insurance products are sold. The concept is very well established

in the country like India but still the increasing use of other sources is

imperative. It therefore makes sense to look at well – balanced,

alternatives channels of distribution.

LIC has already well established and have an extensive

distribution channel and presence. New players may find it expensive

and time consuming to bring up a distribution channel to have an

advantage.

At present the distribution channels that are available in the

market are:

Direct Selling

Corporate Agents

Group Selling

Brokers and Cooperative Societies

Bancassurance

To make all these channels a success the companies have to be

very alert and skillful to know how to use these channels in a proper

way. Bancassurance is on of the most upcoming channels of distribution.

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BANCASSURANCE

India has an extensive bank network established over the years.

What Insurance companies have to do is to just take advantage of the

customer’s long-standing trust and relationships with banks. This is a

mutually beneficial situation as banks can also expand their range of

products on offer to customers, while the insurance company will also

earn profits from the exposure. Another advantage is that banks, with

their network in rural areas, help to fulfill rural and social obligations

stipulated by the

Insurance Regulatory and Development Authority (IRDA)

recently. Insurance companies should see bancassurance as a tool for

increasing their market penetration in India. It is also good for the one

who sees bancassurance in terms of reduced price, high quality product

and delivery at doorsteps. Everybody is a winner here. The creation of

bancassurance operations has made an important impact on the financial

services industry at large. This is though a new concept but it has gained

a lot of importance in the industry at present and has a great future.

PRODUCT INNOVATION

Customers have tremendous choice from a large variety of

products from pure term insurance to unit-linked investment products.

Customers are offered unbundled products with a variety of benefits as

riders from which they can choose. More customers are buying products

and services based on their true needs and not just traditional money-

back policies, which is not considered very appropriate for long-term

protection and savings.

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RURAL MARKETING

Rural India seems to have an appetite for mobile phones,

computers, and cars and to add to it we have insurance. In India with the

private players having entered into the insurance industry, the expected

explosion in job opportunities may not actually happen but for them the

catchments area is the opportunities in the rural India. In India the

insurance business can be said to be “a marathon, not a sprint”. This is

because of the nature of the business being long term. However it seems

that they if not anything, are only increasing their spending, though only

out of the capital. As insurance companies go more and more rural in

search of business, there will be opportunities in the rural sector.

Already United India The Rural consumer is now exhibiting an

increasing propensity for Insurance products. A research conducted

exhibited that the rural consumers are willing to dole out anything

between Rs. 3,500 and Rs. 2,900 as premium each year. In the Insurance

the awareness level for Life Insurance is the highest in rural India, but

the customers are also aware about motor, accidents and cattle insurance.

According to a study nearly one third said that they had purchased some

kind of insurance with the maximum penetration skewed in favor of life

insurance. The study also pointed out the private companies have huge

task to play in creating awareness and creditability among the rural

populace.

INFORMATION TECHNOLOGY AND INSURANCE

In the insurance industry today, there is a clear trend away from

selling a broad range of products to a large volume of customers in a

one- size-fits-all manner. Instead of focusing on their different products

lines as silos (i .e., l ife, property and casualty etc) insurers are looking

for ways to offer highly targeted insurance products that are tailored to

the individuals customers with the highest propensity to buy them.

Insurance industry is a data-rich industry, and thus, there is desire need

to use the data for trend analysis and personalization.

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With increased competition among insurers, service has become a

key issue. People today don’t want to accept the current value

propositions, they want personalized interactions and they look for more

and more features and add ones and better service. Today managing the

customer intelligently is very critical for the insurer especially in the

very competitive environment. Companies need to apply different set of

rules and treatment strategies to different customer segments.

With the explosion of Website and greater access to direct or

policy information, there is a need to developing better techniques to

give customers a truly personalized experience. Personalization helps

organizations to reach their customers with more impact and to generate

new revenue through cross selling and up selling activities. To ensure

that the customers are receiving personalized

information, many organizations are incorporating knowledge database-

repositories of content that typically include a search engine and lets the

customers locate the all document and information related to their

queries of request for services. Customers can hereby use the knowledge

database to manage their products or the company information and

invoices, claim records, and histories of the service inquiry. These

products also may be able to learn from the customer’s previous

knowledge database and to use their information when determining the

relevance to the customers search request. The insurance sector remains

a very competitive market and those companies that are able to best

utilize their data and provide their customer with the most personalized

options will have the distinct competitive advantage.

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MERGERS AND ACQUISTIONS

This is an era of mergers and acquisitions. Private companies

including MNC’s are amalgamating the world over to get more

competitive edge. Currently, the general insurance industry has been

opened up. The insurers are doing enough to raise the level of risk

awareness or are they merely content to compete in the markets

organized and established. The private players in the future would have

to turn their attention to working in the unorganized and under served

markets.

What is likely to happen is that the private players would continue

to skim the profitable segments of the already organized business in the

urban areas? The time has already come for the government of India to

evaluate the performance of private companies.

However it is high time for the government to realize that

importance of merging the public sector general insurance companies

into single entity. The recent scenario calls for a better performance

from part of each of the public sector insurance companies against each

other. The result what we see is the undercutting to retain or wrest

business and quoting an uneconomical rate of premium. While this

allows one of the Public Sectors Company to win a business form another

in this manner. The others suffer a loss and the resultant effect is a

cannibalization with a fall in the average premium of the public sector

itself.

The purpose of having four companies all subsidiaries of General

Insurance Corporation of India (GIC) – National Insurance

Company, New India Assurance Company, Oriental Insurance

Company, and The United India Insurance Company; at the time of

nationalization was to have competition among themselves – in service

and products at the same price.

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Now with real competition coming in with most of the global

insurance players setting footprints here, it is felt that the time for

merger has come and to enjoy the benefits if the size. It is to be stated

that size does matter in insurance business. All over the world’s mergers

and acquisitions in the risk-underwriting sector is common. The benefits

if the four insurance companies merge will be enormous. The merged

entity will enjoy higher underwriting and risk retention capacity;

increase in reinsurance premium, reduction in reinsurance outflow,

healthy solvency margins, setting right the asset-liability mismatch and

reduction in cost. The loss of profitable business in view of undeserved

competition among the public sector companies is hampering the

subsidization of social insurance including the motor third party liability

(TPL).

It is thus clear that it is good for the public sector companies to

merge immediately when they are still strong, lest a merger becomes

inevitable later after the independent public sector companies fail one

after another.

STRATEGIC ALTERNATIVES

If one analyses the history of growth of the insurance industry

since reforms, it is marked by all- round growth of all players. More or

less all players have aggressively recruited and trained advisors,

appointed agents, launched new products, improved customer service

standards and revamped/expanded their distribution networks. Every

player would like the customers to believe that its service standards are

the best or that its agents are the most informed and ethical. In other

words, each company is trying to be ‘everything to everybody’. Some

players justify the above strategy on the basis that the Indian market is

huge and it can accommodate everybody. Still , in a market where it is

difficult to distinguish oneself sufficiently on service or any other

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parameter to be able to charge a premium, it will lead to unmitigated

price competition to the detriment of all players. In the insurance

industry where large amounts of capital are required, this is risky.

While there is room for a few scale players with a finger in every

pie, it is profitable for the players to focus on different segments to

survive and thrive in a multi-firm open environment. While each

company has to choose its own unique positioning based on its unique

strengths.

Variety-based Positioning

This type of positioning is based on varieties in products and

services rather than customer segments. It is a sensible strategy for those

companies who have distinctive advantages or strengths in offering

certain products and services.

In the insurance industry too, it is possible to achieve a unique

position by focusing on certain category of products. Through its

superior fund management capabilities, the insurance company can

deliver better returns on it investment-linked products and thereby for

itself a leadership position in this segment.

Then there is the entire category of pension products, which is

widely touted to have immense growth potential in India due to imminent

pension reforms. It is possible to achieve profitable positioning by

focusing and excelling in only pension products.

Needs –based Positioning

This is the most commonly understood positioning and is based

on the different needs of different groups of consumers. This can be done

successfully if a company has unique strengths to service a group of

customer needs better than others.

The insurance needs of young family with small children will be

quite different from that of a family in which the income-earner is close

to retirement. However, in India most of the Life Insurance companies

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have a wide variety of products of different customer needs and there is

no company focusing only on a particular customer needs.

Access- based Positioning

Positioning of customers can also be done by the way they are

accessible that is different groups of customers may be accessible in

different ways even though they may have similar needs. Access is

typically a function of customer scale.

There is excellent opportunity in the insurance industry to employ

access-based positioning by targeting the rural insurance sector. The

rural market for Life Insurance is very different from the urban market in

terms of needs, income levels, distribution, penetration of media and so

on. Except for LIC, no other player has paid any attention or focus on

the rural sector. Contrary to common perception it is a big opportunity as

emphasized repeatedly by such eminent strategies like C.K.Prahlad.

Rural market can be a highly profitable position if one is able to

carefully plan.

CHOOSING THE RIGHT STRATEGY

The right strategic choice is not a matter of positioning choice

alone. It is the configuration of the entire value chain of the company

through a different set of activities to deliver unique value to consumers.

The set of activities cover all upstream and downstream activities, from

the selection of the product mix. Some Life Insurance companies

focusing on rural markets have adopted innovative means of distribution.

Instead of appointing agents as is done typically, they have used

Gramsevaks in different villages across the country to promote Life

Insurance and act as their sales arm.

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So we can conclude that, the size of the market has grown and the

size of the insurable population in India is indeed vast and the existing

players have managed to cover about one-fourth of it .

The falling interest rates, the collapse of many small –time

financial institutions, the scope for entering related areas like banking

and pensions in a bid for synergy and the promise of the e-commerce are

some of the other opportunities knocking at the doors of the insurance

majors.

A number of web sites are coming up on insurance, a few financial

magazines exclusively devoted to insurance and also a few training

institutes being set up hurriedly. Many of the universities and

management institutes have already started courses in insurance.

Life insurance has today become a mainstay of any market

economy since it offers plenty of scope for garnering large sums of

money for long periods of time. A well regulated Life Insurance industry

which moves with the times by offering its customers tailor-made

products to satisfy their financial needs is, therefore, essential if we

desire to progress towards a worry-free future.

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COMPANY

PROFILE

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ABOUT BAJAJ ALLIANZ LIFE INSURANCE

Mission: As a responsible customers focused market leader, we still

strive to understand the insurance needs of the consumers and translate it

into affordable products that deliver value for money .

Vision:

To be the first choice insurer for customers.

To be the preferred employee for staff in the insurance

industry.

To be the number one insurer for creating shareholder

value.

SAM GHOSH , who was the CEO of Bajaj Allianz earlier has taken over

as country Manager and is also the CEO of Bajaj Allianz Life Insurance

Company.

Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance Co. Ltd is a joint venture between

two leading conglomerates-, and Bajaj Auto, one of the biggest two and

three-wheeler manufacturers in the world and Allianz AG, one of the

world’s largest insurance companies.

Bajaj Allianze Life Insurance

Is the fastest growing private life insurance company in India.

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Currently have over 300000 satisfied customers.

Have Customer care centers in 156 cities with 28000 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 2 n d , 2001 to conduct General Insurance business (including Health

Insurance business) in India. The Company has an authorized and paid up

capital of Rs.110 crores. Bajaj Auto holds 74% and Allianz holds the

remaining 26%. AG, Germany.

In its first year of operations the company has acquired the NO. 1

status among the private non-life insurers. As on 31 s t March 2003, Bajaj

Allianze General Insurance maintained its leadership position by

garnering a premium income of Rs.300 Crores. Bajaj Allianze 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 Allianze today has a network of 40 offices spread across the

length and breadth of the country. From Surat to Sliliguri and Jammu to

Thiruvananthapuram, all the 38 offices are interconnected with the Head

Office at Pune.

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In the first half of the current financial year, 2004-05, Bajaj

Allianz generated a premium income of Rs.405 crores, achieving a

growth of 84% and registered a 52% growth in Net profit 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.

Shareholders & Promoters

Bajaj Auto Limited

Bajaj Auto Limited is the largest manufacturer of two and three-

wheelers in India and also one of the largest manufacturers in the world.

Bajaj Auto has been in operation for over 55 years. As a promoter of

Bajaj Allianz General Insurance Company Ltd., Bajaj Auto has the

following to offer :

Vast distribution network.

Knowledge of Indian consumers.

Financial strength and stability to support the insurance business

Allianz AG, Germany

Allianz Group is one of the world's leading insurers and financial

services providers.

Founded in 1890 in Berlin, Allianz is now present in more than 70

countries with over 177,000 employees. At the top of the international

group is the holding company, Allianz AG, with its head office in

Munich.

Allianz Group provides its more than 60 million customers worldwide

with a comprehensive range of services in the areas of

Property and casualty insurance,

Life and health insurance,

30

Asset management and banking.

In fiscal year 2005, Allianz's total revenues amounted to some 100.9

billion euros. At the end of 2005 Allianz Group had more than 1.26

trillion euros in assets under management. Of this, 743 billion euros

were assets managed for third parties.

History of Allianz

Documenting and researching its corporate history is part and

parcel of the corporate culture of Allianz AG.

The Allianz Center for Corporate History devotes itself to these tasks.

As a frequently used information center, it has evolved into the

company's "living memory".

Global Presence

Allianz Group is present on every continent and has companies and

offices in about 70 countries. More information about our locations

throughout the world is available by moving the cursor over the world

map.

Business Fields

Property & Casualty Insurance

When it comes to property and casualty insurance, Allianz is

number one in Germany. Allianz also ranks as one of the world's leading

global industrial risk insurers.

Life & Health Insurance

In life and health insurance, Allianz Group is among the top

companies in Europe. Private and corporate retirement provision is

emerging as a major market

31

Asset Management & Banking

Allianz Group's asset management activities are integrated under one

roof at Allianz Global Investors. With Dresdner Bank, the Allianz Group

has laid a broad foundation in order to address clients' needs on the

investment market.

Allianz AG is in the business of General (Property & Casualty)

Insurance; Life & Health Insurance and Asset Management and has been

in operation for over 110 years. Allianz is one of the largest global

composite insurance with operations in over 70 countries. Further, the

Group provides Risk Management and Loss Prevention Services. Allianz

has insured most of the world’s largest infrastructure projects (including

Honkong Airport and Channel Tunnel between UK and France), further

Allianz insures the majority of the fortune 500 companies, besides being

a large industrial insure, Allianz has a substantial portfolio in the

commercial and personal lines sector, using a wide variety of innovative

distribution channels.

Allianz AG has the following of offer Bajaj Allianz General

Insurance Company Ltd.:

Set up and running of General insurance operations

New and improved international products

One of the world’s leading insurance companies

More than 700 subsidiaries and 2 lac employees in over 70

countries worldwide

Provides insurance to almost half the Fortune 500 companies

A Partnership Based on Synergy

Bajaj Allianz General Insurance Company offers technical

excellence in all areas of General and Health Insurance as well as Risk

Management. This partnership successfully combines Bajaj Auto’s in-

32

depth understanding of the local market and extensive distribution

network with the global experience and technical expertise of the

Allianz Group. As a registered Indian Insurance Company and a capital

base of Rs.110 crores, the company is:

Fully licensed to underwrite all lines of general insurance business

including health with management control by Allianz AG

About Bajaj Allianz Life Insurance:

Bajaj Allianz Life Insurance Company has developed insurance

solutions that cater to every segment and age-income profiles. Its

products include 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 where

sustenance of income is combined in the same plan that also pays a lum

sum), Cash Gain (Money Back), Child Gain (Children’s Plan), Risk care

(Pure Term), Life Time Care (whole Life), term Care (term with return of

premium), Swarna Vishranti (Retirement Plan), Protector (Mortgage term

insurance plan), UnitGain (Unit Linked Whole of Life Plan) and Unit Gain

Single Premium.

Bajaj Allianz Life Insurance is poised for an accelerated growth in the

market and has already become the fastest growing private life insurance

company in India. Bajaj Allianz Life Insurance has a wide pan India

presence of office network in 156 citied of the country and is aided with a

strong and trained Agency network of over 28000 agents. Bajaj Allianz

has also forged strong Banc assurance and Corporate Agency relationship

and continues to build on new tie-ups for fast track growth and deep

market penetration.

Bajaj Allianz Life Insurance has launched a slew of need-based

products to cater to each varied needs of the customer. Currently Bajaj

33

Allianz Life Insurance has a product portfolio of 19 products and more

need-based products are in the pipeline .

Bajaj Allianz general Insurance: 125 percent profit Increase

Bajaj Allianz General Insurance Company Limited is a joint

venture company between Bajaj Auto Ltd., India’s leading manufacturer

of two and three wheeler vehicles and the Allianz Group.

Bajaj Allianz General Insurance offers technical excellence in all

areas of general and health insurance and risk management.

The partnership successfully combines Bajaj Auto’s extensive

understanding of the local market and expansive distribution with

Allianz Group’s global experience and technical expertise.

Bajaj Allianz General Insurance is headquartered in Pune and has a

wide network of 40 offices spanning the country. All the offices are fully

networked. The company received the IRDA registration in may

2001 ;today, it already has a vast range of 45 products to suit its

corporate and retail customers. The company has also pioneered in

unique forms of risk cover.

In the year 2003-2004, the company garnered a premium income of

approximately 4.8 billion Rupees (86 million Euros) with a profit after

tax of 220 million Rupees (3.9 million Euros); it sold 1.2 million

policies. With this result, i t achieved a net profit growth of 125 percent,

gross written premiums jumped by over 60 percent.

Allianz Bajaj Changed Its Name To Bajaj Allianz Life

Insurance

Allianz Bajaj Life Insurance Co. Ltd., the fastest growing private life

insurance co. today announced that it has changed its corporate name to

34

Bajaj Allianz Life Insurance Co. Ltd, effective from August 03, 2004.

The change in company name comes in conjunction with research

findings from existing customers, business associates, prospective

customers and other stakeholders indicates higher comfort level and ease

of recalling Bajaj name first and then Allianz, and hence the name Bajaj

Allianz.

Bajaj Allianz General Insurance Company Limited and Bajaj

Allianz Life Insurance Company Limited will now have a common logo

and branding which will help in increasing our visibility and familiarity,

which will create a much larger awareness and a greater mind share. The

new logo incorporates the new Bajaj Auto logo.

Commenting on this occasion Mr. Sam Ghose Manager, Allianz

and CEO, Bajaj Allianz Life Insurance said, “ we are not only acquiring

a new name, but have put in motion a new level of energy and

commitment to delivering the best products. The name change coupled

with aggressive strategic market initiatives to reach service customers

better will give us an unbeatable position in the insurance market in this

country and both Life and General companies together can unleash the ‘

Power of One’ and be the leader in the insurance industry.”

Bajaj Allianz Life Insurance recently launched over 100 satellites

branches, new life and non-life group products, which has helped Bajaj

Allianz (formerly known as Allianz Bajaj) to log in Rs.100 Cr. Gross

Written Premium (GWP) in the first 100 days of this financial year and

has leaped to 2 n d position as per IRDA figures ending June 04, from its

7 t h position at the end of last financial year.

Bajaj Allianz Life Insurance has also brought in the key executives, to

infuse greater thrust, new ideas, efficiency and professionalism to impart

state of the art servicing to the customers across the length and breadth of

the country.

35

CORE COMPETENCIES AT BAJAJ ALLIANZ LIFE

INSURANCE

The Bajaj Allianz Difference

Business strategy aligned to clients’ needs and trends in India and

global economy industry

Internationally experienced core team, majority with local

background

Fast, decentralized decision making

Long-term commitment to market and clients

Trust

At Bajaj Allianz, they have realized that the customer seeks an

insurer whom he/she can trust. Bajaj Allianz Limited is trusted name for

over 55 years in the Indian market and Allianz AG has over 110 years of

global experience in financial services. Together they are committed to

provide the customer with time tested and trusted financial solutions that

provide the customer all the security he/she need for their investments.

And more…

Underwriting Philosophy

Their underwriting philosophy focused on:

Understanding the customer’s needs

Underwriting what we understand

Meeting the customer’s requirements

Ensuring optimal coverage at lowest cost

36

Claims Philosophy

The Bajaj Allianz team follows a service that aims at taking the

anxiety out of claims processing. They pride themselves on a friendly

and open approach. They are focused towards providing the customer a

hassle free and speedy claims processing. Their claims philosophy is to:

Be flexible and settle fast

Ensure no claim file to be seen by more than 3 people

Check processes regularly against the global Allianz OPEX

(Operational Excellence) methodology

Customer Orientation

At Bajaj Allianz, the guiding principals are customer service and

client satisfaction. All the efforts are directed towards understanding the

culture, social environment and individual insurance requirements- so

that they can cater to all the customer’s varied needs.

Experienced and Expert Servicing Team

Bajaj Allianz is driven by a team of experienced people who

understand Indian risks and are supported by the necessary international

expertise requires to analyses and assess them service engineers located in

every major city .

Superior Technology

In order to ensure speedy and accurate processing o the customer’s

needs, they have established worlds class technology, with

renowned insurance software, which networks all our offices and

intermediaries

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Using the Web, policies can be issued form any office across the

country for retail products

Unique, user friendly software developed to make the process of

issue of policies and claims settlement simpler (e.g. online

insurance of marine policy certificate)

Unique Forms of Risk Cover

Special PA cover for Amarnath Yatris

Housing loan cover for people, who are suddenly unemployed

Film insurance

Event management cover

Risk Management – Their Expertise

Their service methodology is tried, tested and Proven the world over

and involves:

Risk identification: Inspection

Risk analysis: Portfolio review and gap analysis.

Risk retention

Risk Transfer: To an insurer as well as reinsurer (as required)

Creation of need based products

Ongoing dialogue and proactively

38

PRODUCTS

OF

BAJAJ ALLIANZ

LIFE INSURANCE

39

LIFE INSURANCE POLICIES

LIFE LONG GAIN

The Bajaj Allianz Life gain Plan comes with a host of features to

allow customer to have the best of all words – regular income for

customer and the added benefits of providing for loved ones too. This is

the perfect plan to take care of ongoing and future family expenses like

debts, expenses on children, living expenses, etc. It can also take care of

unforeseen expenses like accidents, illness. Hospitalization etc. and

provides a family with a safety net.

How does the plan work?

The premiums paid are invested in the Lifelong Gain Fund (based on the

allocation rate) and units are allocated depending on the offer price of

units for the fund. The value of the policy is the bid value of units that a

customer holds in the fund. The life insurance cover charges are

deducted through monthly cancellation of units and the fund

administration charge and fund management charge are priced in the unit

value.

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Benefits available under the plan

Death Benefit: In the case of unfortunate premature death the

beneficiaries are entitled to the greater of :

Sum Assured less partial withdrawals

The bid value of units

If the age of the insured person is less than 7 or above 70, then the

bid value of unit is paid.

Guaranteed Survival Benefits:

Guaranteed Survival Benefits are available under this policy.

Bajaj Allianz Life Insurance will pay, by cancellation of units in the

account of the policy, 3% of the Sum Assured every year after the

premium payment are over till the termination of the policy. This

guaranteed amount is payable every year provided all premiums have

been paid and no partial withdrawal were made, the guaranteed

survival benefit would be 3% (Sum Assured less partial withdrawal)

for the subsequent policy years. If the partial withdrawals made are

equal to the Sum Assured, then the guaranteed survival benefit will

become nil and funds in the account will be available to the customer

for full/partial withdrawals as and when a customer needs them.

Maturity Benefits:

On the life assured attaining age 100, the bid value of unit in the

fund will be paid out and the policy will terminate.

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Full Withdrawal: Life long Gain offers the customer the flexibility of the withdrawals

by surrendering all his units, anytime after 3 full years’ premiums

paid. The full withdrawals are paid out at the bid value of units. On

full withdrawal the policy will terminate.

Partial Withdrawal:

Lifelong Gain allows the customer to make partial withdrawals

anytime after all the premiums are paid. This gives the customer the

liquidity and option to take out additional money over and above the

guaranteed survival benefits, as and when required. In case of

partial withdrawal, a minimum withdrawal amount is Rs.1000/-. In

the case of a partial withdrawal, the subsequent Guaranteed

Survival Benefits will be 3% of (Sum Assured less partial

withdrawals made).

Key Features

Guaranteed death benefits

Whole life protection with only 10 or 15 years of contributions.

Guaranteed survival Benefits that pays 3% of the Sum Assured

every year after the premium payments are over

Provision for full and partial withdrawals .

Benefits

Death benefits

Guaranteed Survival Benefits

Maturity Benefits

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Full Withdrawals

Partial Withdrawals

UNIT GAIN PLUS

With Bajaj Allianz Unit Gain Plus, A customer can invest in one

life insurance plan that can take care of all his/her changing

requirements throughout their life. This plan has been designed to

provide them with maximum flexibility, so that they do not have to

worry about their changing need s.

Bajaj Allianz Unit Gain Plus Offers the unique option of combining the

protection of life insurance with the attractive prospects of investing in

securities. A person can choose the

investment funds that he wants to invest his money, providing an

opportunity to have a direct stake in the performance of the financial

market. Customer also benefits from attractive tax advantages and can

protect loved ones against unfortunate events .

How does the plan work?

The premiums paid are invested in fund/ funds of customer’s

choice (depending on the allocation rate) and units are allocated

depending on the price of units that the customer holds in the fund/funds.

The insurance cover and administration charges a deducted through

cancellation of units, The Fund Management Charge is priced in the unit

value .

Minimum Sum Assured = 5 time the annual premium.

Maximum Sum Assured = y t times annual premium.

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The Five funds offered are as under:

a) Equity Index Fund : The investment objective of this Fund is to

provide capital appreciation through investment in equities. The

plan is expected to match the returns given by Nifty Index of the

National Stock Exchange. This fund will invest at least 85% in

equities and maximum 15% in debt and cash.

b) Equity Plus Fund : The investment objective of this Fund is to

provide capital appreciation through investment in select equities

stocks that have the potential for high capital appreciation. This

fund will invest at least 85% in equities and maximum 15% in debt

and cash instruments.

c) Debt Plus Fund : The investment objective of this Fund is to

provide accumulation of income through investment in high quality

fixed income securities like G-Secs , and corporate debt rates AA

and above. This fund will be invested fully in Debt Instruments and

money market instruments.

d) Balanced Plus Fund : This fund is a fund of funds. The

investment objective of this fund is to provide a balanced

investment between long-term capital appreciation and current

income through investment in the Units of Bajaj Allianz’s Equity

Index and Debt Plus Funds. The balanced fund will invest 30% to

50% in the equity index fund and 50% to 70% in the debt plus fund.

44

Cash Plus Fund : The investment objective of this Plan is to have a

fund that guarantees invested capital through investments in liquid

money market and short-term instruments like Commercial Papers,

Certificate of Deposits, money market, Mutual Funds, Bank FDs etc. The

price of units in this fund is guaranteed not to go down.1005 of this fund

will be invested in money market instruments. The price of the units in

this fund is guaranteed never to go down.

Flexibilities – to manage customer investments

Bajaj Allianz offers the flexibility to manage the investments.

Initially, the customer can allocate the premium into the 5 funds that are

available in a proportion of his/her choice. Subsequently, depending on

the performance of funds, customer can switch between funds and also

change the allocation of premium to various funds. They allow the

customer three switches every policy year subject to a minimum

switching amount of Rs. 5,000/- or the fund value, whichever is lower.

The customer can also change the proportion of premium allocation to

various funds at each policy anniversary.

Unmatched Flexibility – to suits the customer’s changing

requirements

Bajaj Allianz Unit Gain Plus offers unmatched flexibility to suit the

policy according to the customer’s requirements.

Flexibility In Premium Payment : The customer has the

flexibility to decide how long he/she wishes to pay the premiums

45

and when he wants to cash out the policy benefits. Customer may

choose to cash out the policy benefits at one shot or do it as and

when you require cash through partial surrender of units .

Flexibility to Increase the Sum Assured : The Customer

have the option to increase the Sum Assured without any medical

tests every 3 r d year up to 4 times. The quantum of increase would

be 25% of the original Sum Assured or Rs 1,00,000/- whichever is

lower. If the customer does not exercise an option when it is due,

it cannot be carried forward. If the age is les than 18 years at the

start of policy, all 4 increments will be available from age 18.

Apart from exercising the options to increase the Sum Assured

without medical tests, he/she can increase the Sum Assured any

time. Subject to medical underwriting (available up to age 60). In

either case, the Sum Assured after increase must be equal to or

less than the maximum Sum Assured available foe the premium

level chosen. The customer should give notice of increase in death

benefit 15 days before the yearly policy anniversary.

Flexibility to decrease the Sum Assured : The customer

can decrease the Sum Assured (in multiples of 1000) at any time to

suit their changing needs. The sum Assured, after decrease, must

be at least 5 times the annual premium. After a decrease

subsequent increases will be subject to underwriting.

Flexibility to Pay Top ups : The customer may have received a

bonus or some lump sum money. The customer can use that to

increase his/her investments in their policy.98% of any amount

paid as top-up is allocated to their funds.

46

Flexibility to increase the level of Regular Premium

Payment : The customer’s earnings grow over time, and so does

their savings potential. With Bajaj Allianz Unit gain Plus, the

customers will have the flexibility to increase their regular

premium amount at any time.

Assured Protection even if the customer misses payment

of their premiums : Bajaj Allianz Unit Gain Plus provides the

customer with the unique features of continued protection even if

they forget to pay their premiums. After payment of three full

years premiums, when premiums due are not paid, the policy will

stay in force with full benefits so long as there are enough units

available for charging the Cost of Insurance and Additional

Benefits after deducting all applicable charges .

Important Details of the ‘Bajaj Allianz Unit Gain Plus’ Plan

Minimum Age at Entry: 0(Risk commences at age 7, and ceases

after age 70)

Maximum Age at Entry: 60.

The minimum age at entry for all additional benefits is 18 years.

The maximum age at entry for all additional benefits is 50 years.

All additional benefits are available till age 65.

Premium Payment Mode

For the customer’s convenience, Allianz have provided 3 regular

premium payment modes that can be Yearly, Half Yearly, and Quarterly.

They also offer a monthly premium payment mode with salary deduction

schemes. In addition, the customer also has the option to pay top-ups to

increase his/her investments. The minimum premium is Rs.15000/- for

the Annual Mode, Rs.7500/- for Half Yearly, Rs.3750/- for Quarterly,

47

and Rs.1500/- for the Monthly Mode. The minimum top-up premium is

Rs.5000/-.

Partial and Full Withdrawals

UnitGain Plus offers the full flexibility of full as well as partial

withdrawals by surrendering units, anytime after 3 full years premium

are paid. The surrenders are paid put at the value of units, and there is no

surrender penalty on partial or full withdrawals after full 3 years

premiums are paid.

Key Features

Guaranteed death benefit

Choice of 5 investment funds with flexible investment

management: you can change funds at any time.

Attractive investment alternative to fixed-interest securities.

Provision for full/partial withdrawals any time after three full

year’s premiums is paid.

Unmatched flexibility- to match your changing needs.

Benefits

Death Benefits

Cash withdrawal option

Term Care

This plan not only offers the customer life insurance cover at a

low cost, but also provides for return of premiums on maturity. The

premiums returns at maturity will be equal to the single premium or the

sum total of equivalent annual premiums of the Economy Pack

48

(excluding extra premiums charged if any). In case of premature death

the policy term, the full sum Assured will be paid to the nominee.

How does the plan work?

The “Bajaj Allianz Term care” Plan offers the customer the

convenience of choosing between two premium payment options.

Regular Premium Payment : Premium payment throughout

the selected term.

Single Premium Payment : One time premium payment for

the selected term at commencement.

Apart from covering the risk of natural death, this plan also provides

the customer the option to choose up to 5 additional benefits. The

customer can select a specific combination of additional benefits best

suited to his/her needs, available in 4 attractive packages to choose from.

I. Economy : This is the basic plan, which is available for both the

regular and single premium payment options.

II. Protect : This pack comes with the following 3 in-built additional

benefits :

a) Accidental death Benefit.

b) Accidental Permanent Total/Partial Disability Benefit

c) Waiver of Premium Benefit (in case of accidental permanent

total disability)

The Protect Pack is available with the regular premium payment option

only.

49

III.

Health : This pack comes with the following 2 in –built additional

benefits :

a) Critical Illness Benefit.

b) Hospital cash Benefit. The health Pack is available with the

regular premium payment option only .

IV. Total : This pack comes with the following 5 in-built additional

benefits :

a) Accidental Death Benefit.

b) Accidental Permanent Total/ Partial Disability Benefit.

c) Waiver of Premium Benefit (in case of accidental permanent

total disability)

d) Critical Illness benefit

e) Hospital Cash Benefit

The Total Pack is available with the regular premium payment option

only.

Benefits :

Accidental Death Benefit

Accidental Permanent Total /Partial Disability Benefit

Waiver of premium Benefit

Critical Illness Benefit

Tax Benefits

Surrender

Loans

LOAN PROTECTOR

50

The Bajaj Allianz “Loan Protector” plan is a mortgage term

insurance plan that covers the outstanding principal amount of a loan. It

is an economical way to protect the family from the burden of repayment

of the loan in case of death of the loaner. The plan is designed to pay a

sum insured that will be equal to the outstanding principal amount of the

loan due.

How does the plan work?

The “Bajaj Allianz Protector” Plan offers the convenience of

choosing between two premium payment options.

I. Regular Premium Payment : Premium payment limited to

approximately 2/3 r d of loan tenure, while coverage continues for

the full tenure of the loan.

II. Single Premium Payment : One time premium payment

covering the customer for the full tenure of the loan .

Joint Life Availability

The Customer has the option to cover the co-applicant of the loan

under this plan. Under this option, both lives will be covered and the

death benefit will be payable in case of death of either life. The policy

terminates on death of either life.

Days of Grace

In case of non-payment of premiums, a grace period of 30 days

will be allowed for the yearly, half yearly and quarterly modes (15 days

for monthly mode). After that the policy will lapse.

51

Revival Of the Policy

It is possible to revive a policy that has lapse due to non-payment

of premiums within 5 years from the date of lapse. The revival will be

effected subject to underwriting. In case of joint life, revival would be

subject to underwriting on both lives.

General Exclusion

Within 15 days from the date of receipt of the policy, the customer

have the option to review the terms and conditions and return the policy,

if the customer disagree to any of the term and conditions, stating the

reasons for his/her objections. The customer will be entitled to a refund

of the premium paid, subject only to a deduction of a proportionate risk

premium for the period on cover and expenses incurred on medical

examination and stamp duty charges.

Benefits :

Death Benefit

Premium Payment mode

Tax benefits

Surrender values/ paid up values

CHILD GAIN

Taking care of a child is perhaps the most important job a parent

can have. It is but natural that a person would like to give his/her best,

and therefore, this is the time when careful financial planning can help

them to fulfill the aspirations that the customers have for his/her

children .

How does the plan work?

52

The “Bajaj Allianz Child Gain” solutions help the customer to

enjoy the joys of parenthood responsibility, with the reassurance of a

secure future for their child.

Common features in the 4 options of Bajaj Allianz “Child gain”

Solutions.

I. Limited Premium Payment Term Which means that the

premiums are payable till the customer’s child attains age 18 years .

II. The customer’s contributions grow by way of

compounded annual bonuses, which will be paid to him with

the first guaranteed payout (policy anniversary following age 18 of

your child), for in-force policies. In addition to the annual bonuses,

a terminal bonus may also be paid.

III. The customers are also eligible for Tax benefits under Section 88

and Section 10 (10 D) of the Income Tax Act.

IV. Assuring Your Child’s Future In an uncertain world, the

prime interest of your child cannot be jeopardized in any way.

Which is why the Bajaj Allianz has built in some added benefits in

all their plans to protect the interests of your child’s future, by

counter insuring you- the policyholder.

Premiums

53

For the customer’s convenience they have provided three

Premium Payment Modes can be Yearly, Half yearly or Quarterly.

They also offer a Monthly Premium Payment Mode under salary

deduction schemes.

Surrender

They offer the customer the choice of surrendering the policy

provided three full years premium have been paid (Two years for

premium terms of 5 and 6 years). The guaranteed minimum surrender

value is 30% of all premiums paid excluding the first year premium and

excluding the premiums for premium waiver benefit and Family Income

benefit and additional benefit opted for. The guaranteed minimum

surrender value after the premium payment term will be the discounted

value of the outstanding installment payments discounted at 10 % p.a.

rate of interest.

Loans

Loans are not available with Bajaj Allianz “Child Gain”

solutions.

15 days Free Look Period :

Within 15 days from the date of receipts of the policy, the

customer have the option to review the terms and conditions return the

policy, if he/she disagree to any of the terms and conditions, stating the

reasons for his/her objections. The customer will be entitled to a refund

of the premium paid, subject only to a deduction of proportionate risk

premium for the period on cover and the expenses incurred on medical

examination and stamp duty charges.

Exclusions

The Death Cover is subject to the following Exclusion :

54

Suicide within one year from commencement of risk, whether sane or

not this product brochure gives the salient feature only. The relevant

policy document is the conclusive evidence of the contract, and provides

in detail all the conditions. Exclusion related to each of plans under the

Bajaj Allianz “Child Gain” Solutions.

INVEST GAIN

It takes only a moment to make promises and a lifetime to keep

them. Keeping promises made to your loved ones is not just a

responsibility, but a commitment that you have to live up to.

When you promise to see your family through thick and thin you

need to make sure that you have planned for all the eventualities that

may befall on them. You need to be prepared that even if there ever is an

instance that you are not there with them you have saved enough to see

them through their entire life.

Accidental Death Benefit :

Accidents are always sudden and sometimes fatal. You can’t lessen

the emotional shock, but you can certainly soften the financial one.

“Bajaj Allianz Accidental Death Benefit” gives the loved ones

something to start with after the permanent loss of income by paying an

account equal to Sum Assured. (Subject to a maximum of Rs. 50,00,000/-

under all policies with Bajaj Allianz taken together).

Accidental Permanent Total/Partial Disability Benefit :

Accidents are unpredictable and so are the consequences. They may

lead to a disability – partial or total. This benefit provides a financial

cushion against such misfortunes. You will get 50% of the Sum Assured

in case of partial disability and 100% in case of total disability. (Subject

55

to a maximum of Rs. 25,00,000/- for partial and Rs. 50,00,000/- for

total disability under all policies with Bajaj Allianz taken together).

Waiver of Premium Benefit :An accident may lead to permanent total disability, limiting one’s

ability to earn. “Bajaj Allianz Waiver of Premium Benefit” is a

helping hand when one needs it most. It waives off all future premiums

while keeping the valuable life insurance cover alive, thus enabling you

to live up to your commitments.

Critical Illness Benefit (CI) :

Some illnesses are critical. They not only alter one’s life’s pattern

but also result in a financial drain. “Bajaj Allianz Critical Illness

benefit” softens the impact on the family by paying out the Critical

Illness Benefit under the plan immediately, while other policy benefits

continue (excluding Hospital Cash Benefit). We cover 11 critical

illnesses. The customer have the flexibility of choosing Critical Illness

cover up to the basic Sum Assured selected by you (Minimum Rs.

50,000)

Hospital Cash Benefit (HC) :

The worry of settling hospital bills (room charges) adds to the

trauma of hospitalization. “Bajaj Allianz Hospital Cash Benefit”

reduces this financial burden and helps recovery with peace of mind.

Flexibility in Coverage :

All Bajaj Allianz, they believe I offering benefits and not just

products. They realize that customers are unique and their needs for

insurance vary with time. They therefore offer the customer the

flexibility of inclusion of coverage or exclusion of coverage at each

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policy anniversary, subject to conditions relating to such inclusions and

exclusion. “Comprehensive Accident Protection” can be included and

excluded at each policy anniversary. Family Income Benefit, Critical

Illness benefit and Hospital Cash Benefit can be taken at inception only.

CI and HC can be reduced or excluded subsequently at any policy

anniversary. Once reduced or excluded, they cannot be increased or

included subsequently.

Increase In risk Coverage

Every added responsibility in a person’s life call for increase in

his/her risk cover. Bajaj Allianz provide the customer the option to

increase coverage up to 505 of the basic Sum Assured on each of the

following happy moments in their life :

Your Marriage.

The Birth of your First Child.

The Birth of the Second Child.

“This additional coverage is not subject to underwriting”

Bajaj Allianz Cash Gain Platinum :

Quadruple Sum Assured + Bonuses

Choice Of Terms

Keeping the customer’s convenience in mind, Bajaj Allianz offers

the customer the widest range of terms : 15, 20, 25,and 30 years.

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Additional Protection For The Customer need Their

Family

The customers have the option to add the following additional

benefits. Providing total protection against uncertainties .

a) Family Income Benefit (FIB) : The Ultimate Protection For

your loved Ones. The customer can select the unique Family Income

Benefit From Bajaj Allianz that ensures total financial protection for

their loved ones. In case of death or accidental total permanent

disability, a guaranteed monthly income 1% of the Sum Assured (12%

per annum) is paid till the end of the policy term or at least for a period

of 10 years, whichever is higher. Moreover, all future premiums are

waived.

b) Comprehensive Accident protection : This benefit provides

comprehensive cover in case of an accident. It comprises of :

Accidental Death Benefit

Accidents are always sudden and sometimes fatal. You can’t lessen

the emotional shock, but you can certainly soften the financial one.

“Bajaj Allianz Accidental Death Benefit” gives the loved ones something

to start after the permanent loss of income by paying an amount equal to

the Sum Assured. (Subject to a maximum of Rs 50,00,000/- under all

polices with Bajaj Allianz taken together).

Accidental Permanent Total/ Partial Disability Benefit

Accidents are unpredictable, and so are the consequences. They may

lead to a disability – partial or total. This Benefits provides a financial

cushion against such misfortunes. You will get 50% of the Sum Assured

in case of partial disability. (Subject to a maximum of Rs. 25,00,000/-

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for partial Rs. 50,00,000/- for total disability under all policy with

Bajaj Allianz taken together).

Waiver of Premium Benefit

An accident may lead to permanent total disability, limiting one’s to

earn. “Bajaj Allianz Waiver of Premium Benefit” is a helping hand when

one needs it most. It waives off all future premiums while keeping the

valuable life insurance cover alive, thus enabling you up to your

commitments.

c) Critical Illness Benefit (CI): Some illnesses are critical. They

not only alter one’s life’s pattern but also result in a financial drain.

“Bajaj Allianz Critical Illness Benefit” softness the impact on the family

by paying out the Critical Illness Benefit under the

plan immediately, while other policy benefits continue (excluding

Hospital Cash Benefit). We cover 11 critical illnesses. The customer

have the flexibility of choosing Critical Illness cover up to the basic Sum

Assured selected by you (Minimum Rs. 50,000).

d) Hospital Cash Benefit (HC): The worry of setting hospital bills

(room charge) adds to the trauma of hospitalization. “Bajaj Allianz

Hospital Cash Benefit” reduces this financial burden and helps recovery

with peace of mind.

Flexibility in Coverage

In Bajaj Allianz, they believe in the offering and not just products.

They realize that the customers are unique and their needs for insurance

vary with time. They therefore offer the customer the flexibility of

inclusion of coverage or exclusion of coverage at each policy

anniversary, subject to conditions relating to such inclusions and

exclusion. “Comprehensive Accident Protection” can be included and

59

excluded at each policy anniversary. Family Income Benefit, Critical

Illness Benefit and Hospital cash Benefit can be taken at inception only.

CI & HC can be reduced or excluded subsequently at any policy

anniversary. Once reduced or excluded, they be increased or included

subsequently.

Increase in Risk Coverage :

Every added responsibility in a person’s calls for increase in his/her

risk cover. Bajaj Allianz provide the customer the option to increase

coverage up to 50% of the basic Sum Assured on each of the following :

Happy moments on their life :

Your birth of your first child

The birth of the second child

“This additional coverage is not subject to underwriting. The option

should be exercised within 90 days of the occurrence of the said event.”

SAVE CARE ECONOMY

As the breadwinner of the family you shoulder several

responsibilities. Your spouse’s welfare, your children’s education,

buying a house or a car – you have a lot to think about, everyday. We, at

Bajaj Allianz, believe that the security and growth of your hard earned

money should not add to these.

Which is why they have created the “Bajaj Allianz Save Care Economy-

Single Premium” the 10-year Single Premium version of our popular

“Save Care Economy”. It is an ideal plan for a one-time lump sum

investment that provides for saving with high risk-cover.

What does “Bajaj Allianz Save Care Economy – SP” offer

you?

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The “Bajaj Allianz Save Care Economy – SP, is a Single Premium

investment plan for 10 years that also participates in the profits of the

company. The highlights of this plan are:

Minimum Guaranteed Return up to 3.54%(depending on age at

entry).

The Minimum Guaranteed Amount (Sum Assured) would grow

further by way of compounded annual bonuses.

A high risk-cover of up to 142% (depending on age at entry) of the

sum invested from the beginning of the policy term as a financial

safety net to provide for unpredictable adversities.

Eligible for Tax Benefits under Section 88 and Section 10 (10 D)

of the Income Tax Act.

At maturity you will receive the Sum Assured (Minimum

Guaranteed Amount) along with the accrued bonuses.

Death Benefit :

In case of death during the term of the plan, the nominee will be

paid the Sum Assured (Minimum Guaranteed Amount) plus accrued

bonuses. I case of death of a minor (below age 7), the death benefit will

be the surrender value or Single Premium whichever is higher.

RISK CARE

This plan offers the customer life insurance cover at the lowest

possible cost for a selected term. It is an ideal option to cover their near

and dear ones against financial risks arising out of life’s adversities –

like death and permanent disability. In the case of pre-mature death

during the term, the Sum Assured is paid to the nominee. There are no

survival benefits under this plan.

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What does this plan offer?

The “Bajaj Allianz Risk Care” Plan offers the convenience of

choosing between two payment options.

Regular Premium Payment - Premium payment through the

selected term.

Single Premium Payment - One time premium for the selected

term at commencement.

Apart from covering the risk of natural death, this plan also provides

the option to choose up to 5 additional benefits. A person can select a

specific combination of additional benefits best suited to his/her needs,

available in 4 attractive packages to choose from .

Economy:

This is the basic plan, which is available for both the regular and

single premium payment options.

Protect: This pack comes with the following 3 in-built additional

benefits:

Accidental Death Benefits.

Accidental Permanent Total/Partial Disability Benefits.

Waiver of Premium Benefit (in case of accidental permanent total

disability)

The Protect Pack is available with the regular premium payment

option only.

Health: This pack comes with the following 2 in-built additional

benefits:

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1. Critical Illness Benefit.

2. Hospital Cash Benefit. The heath pack is available with the regular

premium payment option only .

Total: This pack comes with the following 5 in-built additional

benefits:

1. Accidental Death Benefit.

2. Accidental Permanent Total/Partial Disability Benefit.

3. Waiver of Premium Benefit (in case of accidental permanent total

disability).

4. Critical Illness Benefit.

5. Hospital Cash Benefit.

The total Pack is available with the regular premium payment option

only.

Benefits

Premium Waiver Benefit

Family Income Benefit

Option to Purchase future Insurance

Exclusions

Suicide within one year from commencement of risk, whether same

or not. This product gives the salient featured only the relevant policy

document is the conclusive evidence of the contract, and provides in

details all the conditions, exclusion related to each of plans under the

Bajaj Allianz “Child Gain” Solutions.

LIFE TIME CARE

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This plan provides you with the comfort that your near and dear

ones will continue to live their life without financial worries, even

when you are not around.

PENSION PLANS

SWARNA VISHRANTI

You have been working hard. You’re going to retire one day, How

do you see your retirement? Traveling Golfing? Turning a hobby into a

second career or volunteering for a noble cause or simply spending more

time with your family.

In retirement, how you choose to spend your time is now up to

you. It’s also up to you to ensure your retirement income lasts as long

you do. The decisions you make about your money today should be

flexible enough to accommodate your changing needs. Taking charge of

your olden years are golden years.

What does “Bajaj Allianz Swarna Vishranti” offers?

With Bajaj Allianz Swarna Vishranti, a person can take control

of his/her future and ensure a retirement he can look forward to. This

plan helps a person to prudently play for his retirement today, so that he

doesn’t have to worry about inflation, declining interest rates and rising

medical bills in the future as also ensures the financial security of his

family. The annuity payable under this plan will ensure that his/her

earnings never stop during their lifetime. Packed with a host of

innovative features and with flexibility like never before, then the search

for the perfect pension ends here with Bajaj Allianz Swarna Vishranti,

they have the option to choose the following additional benefits:

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a) Family Income Benefit : The customer can select the unique

Family Income Benefit from Bajaj Allianz that ensures total

financial protection for loved ones. In case of death or

accidental total permanent disability, a guaranteed monthly

income of 1% of the Sum assured (12% per annum) is paid till

the vesting date or at least for period of 10years, whichever is

higher. Moreover, all future premiums are waived. This unique

regular income benefit can act as important supplement to the

pension available to the spouse in the case of death.

b) Comprehensive Accident Protection :This benefit provides

comprehensive cover in case of an accident. It comprises of :

Accidental Death Benefit : Accidents are always

sudden and sometimes fatal. You can’t lessen the

emotional shock but you can certainly soften the

financial one. Bajaj Allianz Accidental Death Benefit

gives the loved ones something to start with after the

permanent loss of income by paying an amount equal to

the Sum Assured. (Subject to a maximum of Rs.

50,00,000/- under all policies with Bajaj Allianz taken

together).

Accidental Permanent Total/Partial Disability

Benefit : Accidents are unpredictable and so are the

consequences. They may lead to a disability- partial or

total. This benefit provides a financial cushion against

such misfortunes. One will get 50% of the Sum Assured

in case of partial disability and

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100% in case of total disability. (Subject to a maximum

of Rs. 25,00,000/- for partial and Rs. 50,00,000/- for

total disability under all policies with Bajaj Allianz taken

together).

Waiver of Premium Benefit : An accident may lead

to premium total disability, limiting one’s ability to earn.

Bajaj Allianz Waiver of Premium Benefit is a helping

hand when one needs it most. It waives off all future

premiums while keeping the valuable life insurance cover

alive, thus enabling you to live up to your commitments.

c) Term Cover :

Additional Protection for Your Family: The customers

have an option to include a Term Cover in his/her policy, which

will provide an additional life insurance protection at a nominal

cost. This also ensures that the pension available to spouse is

further supplemented.

d) Critical Illness Benefit : Some illnesses are critical. They

not only alter one’s life’s pattern but also result in a financial

drain. “Bajaj Allianz Critical Illness Benefit” softness the

impact on the family by paying out the Critical Illness Benefit

under the plan immediately, while other policy benefits

continue (excluding Hospital Cash Benefit). We cover 11

critical illnesses. The customer have the flexibility of choosing

Critical Illness cover up to the basic Sum Assured selected by

you (Minimum Rs. 50,000).

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e) Hospital Cash Benefit (HC) : The worry of setting hospital

bills (room charge) adds to the trauma of hospitalization. “Bajaj

Allianz Hospital Cash Benefit” reduces this financial burden

and helps recovery with peace of mind.

What are the benefits of Bajaj Allianz Swarna Vishranti?

The plan works in two parts - The deferment period and The

annuity period. During the deferment period, the plan provided valuable

life cover and builds up the funds required to purchase the immediate

annuity. The deferment period ends at the vesting date. The customers

are free to choose their age of retirement (vesting date) between 45 and

70 years.

Since the Bajaj Allianz Swarna Vishranti plan participates in the

profits of the company, the Sum Assured grows with time through the

bonuses declared by the company.

The benefits on vesting date (the date you choose to retire)

1. The Sum Assured along with all accrued bonuses will be used to

purchase an immediate annuity . The immediate will be purchased

at rates prevailing at that point of time.

2. Option to take lump sum: The customers have the option to take

upto 33% of Sum Assured plus accrued bonuses on the vesting date

as a lump sum. This amount would be tax in their hand, as per

current tax laws. The balance amount will be used to purchase an

immediate annuity.

3. Open Market Option: You have the option to purchase an

immediate annuity from Bajaj Allianz or from any other company.

If the immediate annuity is purchased from Bajaj Allianz, the

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amount available for purchased of annuity will be up to 2% At

present, they offer their immediate annuity plan for life, Swarna

Raksha, tied to this plan.

4. The minimum installment of annuity from Bajaj Allianz

is Rs.1000/-. The annuity mode may be changed to make each

installment more than the minimum requirement. If it is still below

the minimum, the Sum Assured + Accrued Bonuses would be paid .

Added Assurance – for your family

In the unfortunate event of death during the deferent period, your

spouse will have the option to take the Sum Assured plus accrued

bonuses as a lump sum pr purchase an annuity to get regular income for

life. For the immediate annuity, your spouse will have the Open Market

Option as well, Bajaj Allianz immediate annuity, with a mark up of 2%

will be available only if the spouse is above 45 years of age. In all ages

lower than 45, the Sum Assured + A Accrued bonuses would paid out.

Flexibility in Coverage

At Bajaj Allianz, they believe in offering benefits and not just

products. They have realized that the customers are unique and their

needs for insurance vary with time. They therefore offer the flexibility of

inclusion of coverage or exclusion of coverage at each policy

anniversary till the vesting date, subject to conditions relating to such

inclusion and exclusion. “Comprehensive Accident Protection” can be

included and excluded at each policy anniversary.

The Term Cover, Family Income Benefit, Critical Illness Benefit

and Hospital Cash Benefit can be reduced or excluded subsequently at

any policy anniversary. Once reduced or excluded, they cannot be

68

increased or included in the policy subsequently. The Family Income

benefit, once selected, cannot be removed. The term cover can be

excluded at any subsequent policy anniversary. Once removed, it cannot

be included in the policy subsequently.

UNIT GAIN EASY PENSION

You have been working hard. You’re going to retire one day. How

do you see your retirement? Traveling? Golfing? Turning a hobby into a

second career or volunteering for a noble cause or simply spending more

time with your family. In retirement, how you choose to spend your time

is now upto you. Its also upto you to ensure your retirement income lasts

as long as you do. The decisions you make about your money today

should be flexible enough to accommodate your changing needs. Taking

charge ensures that your olden years are your golden years.

The “Bajaj Allianz Unit Gain Easy Pension” Plan

With Bajaj Allianz, you can take control of your future and ensure

a retirement you can look forward to.

There are two packages to choose from:

UnitGain Easy Pension Regular Premium

UnitGain Easy Pension Single Premium

What are the benefits available?

The plan works in two parts – the deferment period and the

annuity period. During the deferment period, the plan builds up the

funds required to purchase the immediate annuity. The deferment period

ends at the vesting date. You are free to choose your age of retirement

(vesting date) between 45 and 70 years.

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The benefits on Vesting Date (the date you choose to retire)

1. The Account Value as on the vesting date will be used to purchase

an immediate annuity. The immediate annuity will be purchased at

rates prevailing at that point of time.

2. Option to take lump sum: You have the option to take up to 1/3 r d

of the account value on the vesting date as a lump sum. This

amount would be tax free in your hand, as per current tax laws.

The balance amount will be used to purchase an immediate

annuity.

3. Open Market Option: You have the option to purchase an

immediate annuity from Bajaj Allianz or from any other company.

If the immediate annuity is purchased from Bajaj Allianz, the

amount available for purchase of the annuity will be market up by

2%.

4. The minimum installment of annuity from Bajaj Allianz is

Rs.1000/-. The annuity frequency may be changed to make each

installment more than the minimum requirement. If it still below

the minimum, the Account Value may be utilized to purchase an

immediate annuity from any other company in the a open market as

per your choice, or paid in lump sum, if permissible, subject to the

prevailing tax laws.

Assurance – for your family

In the unfortunate event of death during the deferment period, your

spouse will have the option to take the Account Value as a lump sum

or purchase an annuity to get regular income for life. For the

immediate annuity, your spouse will have the Open Market Option as

well. The immediate annuity from Bajaj Allianz will be available only

if the spouse is above 45. If age were below 45, the Account Value

would be paid out.

Annuity options:

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You will be able to choose from all immediate annuity products

offered by Bajaj Allianz Life insurance at the vesting date. The

annuity products currently available are:

Annuity for Life

Annuity for Life with 5, 10 or 15 years certain payout

Annuity for Life with Return of Capital You also has the open market

option to purchase immediate annuity.

UNITGAIN LIFE PENSION

You have been working hard. You’re going to retire one day. How

do you see your retirement? Traveling? Golfing? Turning a hobby into

a second career or volunteering for a noble cause or simply spending

more time with your family. In retirement, how you choose to spend

your time is now up to you. Its also up to you to ensure your

retirement lasts as long as you do. The decision you make about your

money today should be flexible enough to accommodate your

changing needs. Taking charge of your retirement begins with Bajaj

Allianz UnitGain Life Pension, a plan that ensures that your olden

years are your golden years.

The “Bajaj Allianz Unit Gain Life Pension” Plan with Bajaj

Allianz, you can take control of your future and ensure a retirement

you can look forward to. This plan has been designed to take care of

your retirement and insurance needs, thereby providing you with a

comprehensive solution for a lifetime.

There are two packages to choose from:

UnitGain Life Pension Regular Premium

UnitGain Life Pension Single Premium

What are the benefits available?

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The plan works in two parts – the deferment period and the annuity

period. During the deferment period, the plan provides valuable life

cover and builds up the funds required to purchase the immediate

annuity. The deferment period ends at the vesting date. You are free

to choose your age of retirement (vesting date) between 45 and 70

years.

The benefits on Vesting Date (the date you choose to retire)

1. The Account Value as on the vesting date will be used to

purchase an immediate annuity. The immediate annuity will

be purchased at rates prevailing at that point of time.

2. Option to take lump sum: You have the option to take up to

1/3 r d of the account value on the vesting date as a lump sum. This

amount would be tax free in your hand, as per current tax laws.

The balance amount will be used to purchase an immediate

annuity .

3. Open Market Option: You have the option to purchase an

immediate annuity from Bajaj Allianz or from any other company.

If the immediate annuity is purchased from Bajaj Allianz, the

amount available for purchase of the annuity will be up by 2%.

4. The minimum installment of annuity from Bajaj Allianz is

Rs.1000/-. The annuity frequency may be charged to make each

installment more than the minimum requirement. If it still below

minimum, the Account Value may be utilized to purchase an

immediate annuity from any other company in the open market as

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per your choice, or paid in lumpsum, if permissible, subject to

prevailing tax laws.

Assurance – for your family

In the unfortunate event of death during the deferment period, your

spouse will get the greater of the Sum Assured or the Account Value.

S/he will have the option to take it as a lump sum or purchase an

annuity to get regular income for life. For the immediate annuity,

your spouse will have the Open Market Option as well. The immediate

annuity from Bajaj Allianz will be available only if the spouse is

above 45. If age were below 45, the amount would be paid out as a

lump sum .

Annuity Options

You will be able to choose from all annuity products offered by

Bajaj Allianz Life insurance at the vesting date. The annuity products

currently available are:

1. Annuity for Life

2. Annuity for Life with 5,10 or 15 years certain payout

3. Annuity for Life with Return of Capital You also has the open

market option to purchase immediate annuity .

SWARNA RAKSHA ROC

You have been working hard. You’re going to retire one day. How

do you see your retirement? Traveling? Golfing? Turning a hobby into a

second career or volunteering for a noble cause or simply spending more

time with your family. In retirement, how you choose to spend your time

is now up to you. Its also up to you to ensure your retirement income

lasts as long as you do. Taking charge of your retirement begins with

Bajaj Allianz

73

Swarna Raksha, a plan that ensures that your olden years olden

years are you golden years.

The “Bajaj Allianz Swarna Raksha” ROC Plan

With Bajaj Allianz Swarna Raksha, you can ensure a regular

income after retirement. The plan offers you a Life Annuity with Return

of Capital.

How does Bajaj Allianz Swarna Raksha work?

All you have to do is pay a lump sum amount to Bajaj Allianz Life

Insurance Company, and the annuity payments will start after expiry of

monthly/quarterly/half yearly/yearly interval corresponding to the

payment mode selected by you. Here annuity is payable for life, so you

do not have to worry about your income stopping at any stage. What

more, under the return of capital option, the amount used to purchase the

annuity is paid to the nominee on the death of the annuity .

Important details of the “Bajaj Allianz Swarna Raksha

ROC” Plan

Minimum Age at Entry 45

Maximum Age at Entry 80

Minimum Lump Sum Rs.50,000

Minimum Annuity Installment Rs.1000

How much will you get?

For Rs.10, 00,000/- invested in Swarna Raksha at age 60, you will

receive Rs.53, 690/- per GERANTEED for life, with return of Rs.10,

00,000/- to your nominee on death.

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Annuity Frequency Mode for your convenience they have provided

4 Annuity Frequency Modes that can be Yearly, Half yearly, quarterly

or monthly. The annuity will be payable one month/quarter/half

year/year after the date of purchase depending on the mode selected.

Female Lives The annuity rates for female lives shall be the

corresponding annuity rate for a 4 year younger male.

15 days Free Lock Period:

Within 15 days from the date of receipt of the policy, you have the

option to review the terms and conditions and return the policy, if you

disagree to any of the terms & conditions, stating the reason for your

objections. You will be entitled to a refund of the premium paid, subject

only to a deduction of the expenses incurred.

DISTRIBUTION CHANNEL

Bajaj Allianz General Insurance Company Limited is a joint

venture company between Bajaj Auto Limited, India’s leading insurance

and financial services group. Bajaj Allianz General

Insurance Company offers technical excellence in all areas of

General & Health insurance and Risk Management. The partnership

successfully combines Bajaj Auto’s extensive understanding of the local

market and expensive distribution with the global experience and

technical expertise of the Allianz Group. Allianz AG, Germany brings its

technical expertise of insuring the majority of Fortune 500 companies.

Bajaj Allianz General Insurance is headquartered on Pune and has

a wide network of 40 offices spanning the country. All the offices are

fully networked. The company received the IRDA registration May 2001

and today has a vast range of 45 products to suit the corporate and retail

customers. The company has also pioneered the issue of unique forms of

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risk cover, like Special PA cover for Amarnath Yatris, Housing loan

cover for people who may become unemployed, Film Insurance, Credit

Insurance cover for domestic as well as credit risk.

Bajaj Allianz has two main channels of distribution, one is the

Agency channel, which is the dominant one, and the other one is

bancassurance agreement so far. The first was Standard Chartered Bank.

When they started their operations in India, it had a good customer base

of HNIs & corporate and therefore they chose that bank. Their next

bancassurance arrangement was with Syndicate Bank last year. Recently,

we have entered into bancassurance with Centurion Bank. This bank has

a vast network of around 100 branches not in metro cities but also in “B”

class cities.

Bajaj Allianz Life Insurance is poised for an accelerated growth in

the market and has already become the fastest growing private life

insurance company in India. Bajaj Allianz Life Insurance has a wide pan

India presence of office network in 156 cities of the country and is aided

with a strong and trained Agency network of over 28,000 agents. Bajaj

Allianz has forged strong Bancassurance and Corporate Agency

relationships and continues to build on new tie-ups for fast track growth

and deep market penetration. Bajaj Allianz has tied up with 6 banks viz.

bank of Punjab, Bank of Rajasthan, Jammu & Kashmir bank, Lord

Krishna bank, Karur Vysya Bank and Punjab & Sind Bank – the 1 s t

Public Sector bank to tie up with it . Bajaj Allianz is the only private

general insurer to have tied up with 6 Bancassurance partners. And so far

they are happy with the performance of this channel of distribution for

their products.

Bajaj Allianz has tied up with Janakalyan Sahakari Bank, schedule

urban co-operative bank, for Bancassurance on a referral basis. As per

the arrangement, Janakalyan sahakari Bank will distribute Bajaj Allianz

life insurance products through its branches.

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The bank has a network of 25 branches in Mumbai ad its suburbs Thane,

Vashi and Panvel. Its area of operation covers entire Maharashtra.

Centurion Bank has inked a pact with Bajaj Allianz Life Insurance

Company to distribute the latter’s Bancassurance products through

branches in the country as part of plans to grow free-base income. In the

first phase the private sector bank would rollout Bancassurance products

at 46 branches and 16 extension counters from October one, its managing

director Shaliendra told reporters on Wednesday. The distribution set-up

would be expanded to 15 more branches and 6 extension counters in

second phase.

Bajaj Allianz Life Insurance has launched a slew of need-based

products to cater to each varied needs of the customer. Currently Bajaj

Allianz Life Insurance has a product portfolio of 19 products and more

need-based products are in the pipeline.

Bajaj Allianz is also targeting tech savvy customers. The banks

are in regular touch with their customers anyway either through the

ATMs, Internet Banking etc. and hence the bank can at least inform their

customers about the insurance products. Once the customer evinces keen

interest the product features can be explained to them. Again in order to

issue the policy they need not visit their office, but the bank branch can

issue the policy from their office itself.

Bajaj Allianz Life Insurance Company Ltd recorded Rs.500 crore

GWP from April 2004 to January2005and has insured a total of 500,000+

customers, scoring a double-500 this year. The company Recently

launched an online sales portal and has been widening its distribution

network as well strengthening its market presence, through strategic

partnerships with the right distributors and a strong, focused relationship

with each of its partners. At present, Bajaj Allianz ranks second amongst

private players, with a market share of 12% (as per IRDA results for this

77

financial year, up to December 2004), and 2.03 % amongst overall

players.

The company’s agents, bancassurance partners, corporate agents

and sales team, apart from its decentralized operations and flexible

products, have played a major role in its fast paced growth.

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With the authority to think as business managers and build their

branches as profit centers. They are encouraged to open satellite

branches. This gives branch managers the depth of decision-making and

speed required to react to market dynamics and consumer needs. The

management has also appointed full-time training personnel for each

branch.

The fastest growing private Life Insurance company in India, Bajaj

Allianz’s portfolio of 19 products includes comprehensive ‘Employee

Benefit Solution (Group Term Life, EDLI, Gratuity, Super

annuation, Keyman Insurance and More); Invest Gain ( a unique Life

Insurance plan for the individual, where a regular income is combined

in a 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), UnitGain Single Premium, Unit Gain Plus,

Unit Gain Plus SP, Lifelong Gain Plus, Unit Gain Single Pension and

Unit Gain Easy Pension.

80

RESEARCH METHODOLOGY

The approach to the research is considered in this chapter, from

the theoretical underpinning to the collection and analysis of the data. It

begins with the extent of the research to provide the specific guidelines

of studying. The next part is concerned with the method of the research

that refers to the data collection and analyzing which is used in the

research.

CONCEPTUAL CONTEXT OF THE RESEARCH

As the objective of the research focuses on the research of

potential Insurance Consultants with special emphasis of Bajaj Allianz.

It will help the company to increase its sales, which is the prime

objective of the company at this time. The research attempts to generate

awareness among the people of Delhi regarding the agency of Bajaj

Allianz.

81

METHODS

PRIMARY DATA

Date collection for this research was done primarily through filling

up of questionnaire. The sample for the research including different

individuals of various age groups and having different professions and

qualifications. Data was collected through the interview of individuals.

The questionnaire was containing questions regarding the personal

details of individuals and then some light questions regarding their

primary knowledge related to private insurance companies. Then there

were questions related to their interest in being the Insurance

Consultants of company.

SECONDARY DATA

A large amount of secondary data has been collected from secondary

sources. Some of the sources are:-

Reports on Insurance Sector of India.

Articles from Newspapers and magazines.

Various web sites of the insurance companies and related sites .

82

DATA ANALYSIS

There are some features of analyzing data that need to be borne in

mind when choosing the method for analyzing the research. The

questionnaire were prepared to explore the psychology of individuals

about being associated with Bajaj Allianz as Insurance Consultants and

to help the company grow by increasing its sales. Instead of testing a

hypothesis, a qualitative analyst may demonstrate evidence showing that

a theory, generalizing, or interpretation is plausible .

SAMPLE SIZE:-

Various areas of Delhi were covered in order to fill the

questionnaire. I interacted with 200 individuals in order to know about

their interest of being Insurance Consultants of Bajaj Allianz.

SAMPLE COMPOSITION

Youth

Executives

Serviceman

Business persons

RESEARCH DESIGN :

A research design provides the framework to be used as a guide in

collecting and analyzing data.

Descriptive Research : Market survey is one of the best example of

descriptive research. This is a one shot research study at a given point of

83

time, and consists of a sample of the population of interest. Its

advantages are that it gives a good overall picture of the position at a

given time. It can cover many variables of interest, and is not affected by

the movements of elements in the sample, because other elements can be

substituted for them.

AGENTS LICENSED BY THE AUTHORITY (2004-2005)(URBAN AND RURAL)

LIFE INSURERS

Name Urban Rural TotalBAJAJ ALLIANZ LIFE INSURANCE CO. LTD

28912 3768 32680

TATA AIG LIFE INSURANCE CO. LTD

17590 189 17779

AMP SANMAR INSURANCE CO.LTD.

4226 7875013

BIRLA SUN LIFE INSURANCE CO.LTD.

5432 43 5475

AVIVA LIFE INSURANCE CO INDIA PVT. LTD.

3702 1173819

HDFC STANDARD LIFE INSURANCE CO. LTD.

9324 103210356

ICICI PRUDENTIAL LIFE INSURANCE CO. LTD.

29838 92 29930

ING VYSYA LIFE INSURANCE CO. PVT. LTD.

7404 3167720

LIFE INSURANCE CORPORATION OF INDIA

173958 179815353773

MAX NEW YORK LIFE INSURANCE CO.LTD

. 6899 996998

METLIFE INDIA INSURANCE CO. PVT. LTD.

3310 64 3374

KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE CO.LTD.

2772 2042976

SAHARA INDIA LIFE INSURANCE CO. LTD.

1 01

SBI LIFE INSURANCE CO. LTD.

1908 2672175

Sub Total 295,276 186,793 482,069

84

DATA ANALYSIS:-

After collection of data, the analysis of it was done through various

graphs:-

Doughnut

Pie Diagram

Bar Diagram

Tubes

Cones

According to the data collected through survey with the help of

questionnaire, the break up with respect to income of individuals is as

follows :

MONTHLY INCOME NUMBER OF INDIVIDUALS0-5000 43

5000-10000 6010000-15000 4915000-20000 32

20000 AND ABOVE 16

85

Number of individuals

Break up according to monthly income

1k=10000

10

20

30

40

50

60

0k-5k 5k-10k 10k-15k 15k-20k 20 andabove

0-5

ANALYSIS FOR THE OVERALL INCOME GROUP

Servicemen–32% Businessmen-68%

Graduate – 95% Beyond Graduate-5%

86

95

5

Graduate

Non Graduate

32

68

Servicemen

Businessmen

Company Premium Income (cr)

Market Share (%)

HDFC Standard 352.14 3.11Bajaj Allianz 643.59 5.68ICICI Pru Life 819.75 7.24Birla Sunlife 207.93 1.84Tata AIG 189.24 1.67

87

16%

29%

37%

9%

9%

HDFC Standard

Bajaj Allianz

ICICI Pru Life

Birla Sunlife

Tata AIG

Q1 . Do you know about the Bajaj Allianz Life Insurance companies? Ans. The response of individuals are as :-

Yes- 60% No-40%

Q2. Would you like to earn some extra money? Ans. The response of individuals is as follows :

Yes- 90% No-10%

88

60

40Yes

No

90

10

Yes

No

Q3. What is desired or expected monthly income?Ans. The response of individuals are as follows :-

MONTHLY INCOME % of people0-5000 0

5000-10000 210000-15000 1015000-20000 75

20000 and above 13

89

02 10

75

13

0-5000

5000-10000

10000-15000

15000-20000

20000 and above

Q4. How much time you can provide easily besides your job hours?Ans. The response of individuals are as follows:-

TIME PERIOD % people0-2 hrs. 422-4 hrs. 454-6 hrs. 11

Full time 2

Q5. Do you have your own vehicle? Ans. The response of people is as follows :-

Yes- 96.5% No-3.5%

90

96.5

3.5

Yes

No

42

45

11 2

0-2 hrs.

2-4 hrs.

4-6 hrs.

Full time

Q6. Do you have your own mobile?Ans. The response of people is as follows :

Yes- 98% No-2%

Q7. Would you like to work in market/field and want to interact with people? Ans. The response of individuals is as follows :-

Yes- 65% No- 35%

91

98

2

Yes

No

65

35

Yes

No

Q8. Would you like to come our company office and spend your some time with our people in a seminar? Ans. The response of people are as follows :-

Yes- 45% No- 55%

Q9. Do you want that a sales manager should approach you for agency?Ans. The responses of people are as follows :

Yes- 64.3% No-35.7%

92

YesNo

S1

64.3

35.7

0

20

40

60

80

Q10. How many people do you know in Delhi?Ans. The responses of people are as follows: -

MONTHLY INCOME % of people0-5000 15

5000-10000 1010000-15000 3515000-20000 25

20000 and above 15

93

0-5000 5000-10000

10000-15000

15000-20000

20000 andabove

S1

IMPORTANCE OF ADVISORS IN AN INSURANE COMPANY:

In the insurance industry the sales team following the typical organization structure:

Hierarchy in Insurance Company

The sales team comprises of the Sales Manager superior to Area

Sales Manager, These ASM’s (Area Sales Manager) have their own

individual team of Unit Manager and in turn Unit Managers their own

team of financial advisors.

Each team of ASM’s competing with each other in surge of

achieving targets, each Unit Manager depends on their Advisors for their

business. They represent the company in the market to the customers, so

nobody can deny the importance of Advisors in the whole system.

They providing the company with the business and help their

respective Unit Manager to achieve their targets. So a unit Manager has

to be really careful while recruiting their Advisors. During the year of

94

SALES MANAGER

AREA SALES MANAGER

AREA SALES MANAGER

AREA SALES MANAGER

UNIT MANAGER

UNIT MANAGER

UNIT MANAGER

ADVISORS ADVISORS ADVISORS

appointment, new Advisor usually account for a relatively small

proportion of the organization’s total production.

The most promising means of achieving profitable production

growth lies in your sales organization’s capacity to give policy owners

good counsel and prompt, courteous serves –to give them value for

premium paid. The best guarantee of having that capacity comes from

retaining large number of productive advisor.

Consequently, the development needs of your sales organization

call for successful recruiting. It’s a necessity. This is why manager who

move to the top of Bajaj Allianz honor roll and stay there are always

found to be manpower-focused.

Before we move to the “how to” of recruiting, let’s consider some

important philosophies relative to recruiting.

FIVE PERSISTENT CONCERNS:

As an Bajaj Allianz Manager, you are fully committed to building a

high performing, growing agency. This being true, it follows those five

concerns must be constant in your annual planning.

The SEARCH for talent

The EVALUTION of potential advisors

The ATTRACTION of advisors

The RETENTION of advisors

The PRODUCTIVITY of advisors

Any manager who attains satisfying results in these five areas will

enjoy

Satisfying sales results

95

Outstanding persistency of business

Superior policy owner service capabilities

An enviable reputation as a Bajaj Allianz agency builder

A momentum which comes from the synergistic benefit of

success

CHART SHOWING HOW TO GET POTENTIAL ADVISOR:

Putting it simply in a f low

SEARCHWhere to look for

ATTRACTHow to attract to l i fe Insurance

EVALUATEHow to evaluate

PRODUCTIVITY

RETENTION

96

COMPETITIVE ADVANTAGE

SWOT ANALYSIS:

97

Strength Threats

Environmental Scan

Internal Analysis External Analysis

Weaknesses Opportunities

SWOT ANALYSIS

Strengths

Strong brand name

Customer loyalty

Product Quality

Good reputation among customers

Weaknesses

Insufficient product promotion

Unawareness about the product

Opportunity

Allianz Bajaj adds complete suite of group insurance

products to its product Portfolio

Allianz Bajaj plans to focus on group insurance for its

next phase of aggressive growth

An unfilled customer need

Threat

Emergence of substitute products

Resistance to change

Non- response from the target customers

98

FINDINGS

People are becoming more & more money conscious as I didn’t

find any person who doesn’t want to earn extra money.

People are very much aware of ICICI Prudential among private

companies and LIC in public sector as they respond me first name

of LIC then ICICI prudential and then others.

The overall scenario is that still people trust on LIC more than any

other insurance company. Sometimes when I asked someone to

become an agent of Bajaj Allianz they misunderstood with LIC.

For them still l ife insurance means LIC.

Generally people are having leisure time of around 2-3 hrs and

still want to utilize this time to earn extra money, if they can.

Contrary of the prior thinking most of the people don’t hesitate in

doing field work an roaming in the market. They know that without

hard work they can’t earn money.

There were many respondents who were not interested in attending

seminar conducted by Bajaj Allianz among Indian Market.

99

RECOMMENDATIONS

There should be focus on advertisements through T.V. or other

Electronic Media.

Try to make Brand Image, with the help of Bajaj Auto, more &

more as it has a strong brand image in Indian market.

Make use of internet banking for increasing sales, and also for

promotion.

They should increase their Distribution Channels by more & more

tie ups with the locals banks also, because they can help them to

penetrate in Indian market easily.

There should be more incentives to IC’s as they are the backbone

of the company in order to increase sales they have to do more

efforts than others.

100

BIBLIOGRAPHY

LIFE INSURERSWebsites

Life Insurance Corporation of India

www.licindia.com

ICICI Prudential Life Insurance Co. Limited

www.iciciprulife.com

Birla Sun-Life Insurance Company Limited

www.birlasunlife.com

HDFC Standard Life Insurance Co. Limited

www.hdfcinsurance.com

ING Vysya Life Insurance Company Limited

www.ingvysayalife.com

MetLife Insurance Company Limited

www.metlife.com

Om Kotak Mahindra Life Insurance Co. Ltd.

www.omkotakmahnidra.com

TATA AIG Life Insurance Company Limited

www.tata-aig.com

Bajaj All ianz General Insurance Co. Limited

www.bajajall ianz.co.in

Cholamandalam General Insurance Co. Ltd.

www.cholainsurance.com

Insurance Regulatory Development Authority

www.irdaindia.org

Life Insurance Corporation of India

www.licindia.com

Royal Sundaram All iance Insurance Co. Ltd.

www.royalsun.com

Insurance Regulatory Development Authority

www.irdaindia.org

101

BOOKS WERE CONSIDERED

Marketing management by Mr. Philip Kotler.

Principles of marketing by Mr. Richard Armstrong.

Marketing Strategy and Management by Mr. Michael J. Baker.

Marketing Channels by Mr. Louis Stern

Business Research Methodology by Mr. C.R. Kothari.

BUSINESS MAGAZINE & NEWS PAPER

The Times of India

The Economic Times

4Ps, Pitch, Business & Economy

102

PERFORMA OF QUESTIONNAIRE

Q1.Do you know about the Bajaj Allianz Life Insurance companies?

Yes No

Q2. Would you like to earn some extra money?

Yes No

Q3. What is desired or expected monthly income?

0 – 5000 5000 – 10000 10000 – 15000 15000 – 20000 20000 and Above

Q4. How much time you can provide easily besides your job hours?

0-2 4-6 6-8 Full Time

Q5. Do you have your own vehicle?

Yes No

Q6. Do you have your own mobile?

Yes No

103

Q7. Would you like to work in market/field and want to interact with people?

Yes No

Q8. Would you like to come our company office and spend your some time with our people in a seminar?

Yes No

Q9. Do you want that a sales manager should approach you for agency?

Yes No

Q10. How many people do you know in Delhi?

Yes No

104

105