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

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 Consultants 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 Consultants 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.

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.

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 (nonlife). 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
countrys 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
reform process was Participation of overseas insurance companies with
5

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

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

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 .

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 .

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.

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

predominant

through
distribution

Agents.

While

channel,

agents

today

continue

number

of

to

be

the

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

10

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
LIC
ICICI Prudential
Bajaj Allianz

Market Share (Fig. in %)

71.44
11.35
7.06

HDFC Standard Life

SBI Life
Birla Sun Life
Max New York Life`

2.37
1.81
1.49
0.98

TATA AIG
Aviva
OM Kotak Mahindra

0.79
0.89
0.86

ING Vyasa
Reliance
MetLife

0.57
0.37
0.24
Ma rk e t S ha re of Li fe I ns ura nce Compa nie s as of May 20 06

11

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
12

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.

13

BANCASSURANCE
India has an extensive bank network established over the years.
What Insurance companies have to do is to just take advantage of the
customers 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 moneyback policies, which is not considered very appropriate for long-term
protection and savings.

14

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., life, 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.
15

With increased competition among insurers, service has become a

key issue. People today dont 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 databaserepositories 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.

16

MERGERS AND ACQUISTIONS

This is an era of mergers and acquisitions. Private companies
including

MNCs 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

Company,

New

India

of

India

Assurance

(GIC)

National

Insurance

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.

17

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 worlds 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
parameter to be able to charge a premium, it will lead to unmitigated
18

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

19

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.

20

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.

21

COMPANY
PROFILE

22

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
worlds largest insurance companies.

Bajaj Allianze Life Insurance

Is the fastest growing private life insurance company in India.

Currently have over 300000 satisfied customers.

Have Customer care centers in 156 cities with 28000 Insurance

Consultant providing the finest customer service.

23

One of Indias 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.
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-

24

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 threewheelers 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,
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
25

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

Asset Management & Banking

Allianz Group's asset management activities are integrated under one
roof at Allianz Global Investors. With Dresdner Bank, the Allianz Group
26

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 worlds 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 worlds 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 Autos indepth understanding of the local market and extensive distribution
network with the global experience and technical expertise of the Allianz
27

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(Childrens plan where
sustenance of income is combined in the same plan that also pays a lum
sum), Cash Gain (Money Back), Child Gain (Childrens 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
Allianz Life Insurance has a product portfolio of 19 products and more
need-based products are in the pipeline .

28

Bajaj Allianz general Insurance: 125 percent profit Increase

Bajaj Allianz General Insurance Company Limited is a joint

venture company between Bajaj Auto Ltd., Indias 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 Autos extensive
understanding of the local market and expansive distribution with
Allianz Groups 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, it 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
Bajaj Allianz Life Insurance Co. Ltd, effective from August 03, 2004.
The change in company name comes in conjunction with research
29

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.

CORE

COMPETENCIES

AT

BAJAJ

ALLIANZ

LIFE

INSURANCE
30

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 customers needs
Underwriting what we understand
Meeting the customer s requirements
Ensuring optimal coverage at lowest cost

31

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 customers 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
32

 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

33

PRODUCTS
OF
BAJAJ ALLIANZ
LIFE INSURANCE

34

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.

Benefits available under the plan

35

 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.

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.
36

 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
Full Withdrawals
Partial Withdrawals

UNIT GAIN PLUS

37

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.

The Five funds offered are as under:

a) Equity Index Fund :

provide capital

The investment objective of this Fund is to

appreciation through investment in equities. The

38

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 :

investment

objective

of

This fund is a fund of funds. The

this

fund

is

to

provide

balanced

investment between long-term capital appreciation and current

income through investment in the Units of Bajaj Allianzs 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.

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
39

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
sw itching 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 customers changing

requirements
Bajaj Allianz Unit Gain Plus offers unmatched flexibility to suit the
policy according to the customers requirements.

Flexibility In Premium Payment :

The customer has the

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

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
40

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.

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
41

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, 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
42

surrender penalty on partial or full withdrawals after full 3 years

premiums are paid.

Key Features
Guaranteed death benefit
Choice

of

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
years 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 (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.
43

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.

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 .

44

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
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.
45

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.

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.
46

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?

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.
47

Limited Premium Payment Term Which means that the

I.

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

The

II.

customers

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 Childs 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 childs future, by counter
insuring you- the policyholder.

Premiums
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

48

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 :
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.

49

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 cant 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
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 :

50

An accident may lead to permanent total disability, limiting ones

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 ones lifes 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
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.
51

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 persons 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 customers convenience in mind, Bajaj Allianz offers

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

Additional Protection For The Customer need Their

Family
52

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 cant 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/for partial Rs. 50,00,000/- for total disability under all policy with Bajaj
Allianz taken together).

53

Waiver of Premium Benefit

An accident may lead to permanent total disability, limiting ones 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 ones lifes 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
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
54

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

subsequently.

Increase in Risk Coverage :

Every added responsibility in a persons 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 spouses welfare, your childrens 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 EconomySingle 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?

55

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 lifes 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.

56

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:

1. Critical Illness Benefit.

57

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

58

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. Youre 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
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 Sw arna 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
doesnt 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 Sw arna Vishranti,
they have the option to choose the following additional benefits:

59

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 cant 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

60

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 ones 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 ones lifes 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).

61

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
62

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
63

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. Youre 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.
64

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:
65

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. Youre 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?

66

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
per your choice, or paid in lumpsum, if permissible, subject to
prevailing tax laws.
67

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. Youre 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
Swarna Raksha, a plan that ensures that your olden years olden
years are you golden years.
68

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.

Annuity Frequency Mode for your convenience they have provided

4 Annuity Frequency Modes that can be Yearly, Half yearly, quarterly or
69

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

70

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.

71

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
72

financial year, up to December 2004), and 2.03 % amongst overall

players.
The companys 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.

73

74

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

Allianzs 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
(childrens plan), Risk Care (pure term), Lifetime Care (whole life),
Term

Care (term

w ith return

of premium), Sw arna 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.

75

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.

76

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 .

77

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.

78

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
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
BAJAJ
ALLIANZ
LIFE
28912
INSURANCE CO. LTD
TATA AIG LIFE INSURANCE
17590
CO. LTD
AMP SANMAR INSURANCE
CO.LTD.
BIRLA
SUN
LIFE
INSURANCE CO.LTD.
AVIVA LIFE INSURANCE CO
INDIA PVT. LTD.
HDFC
STANDARD
LIFE
INSURANCE CO. LTD.
ICICI PRUDENTIAL LIFE
INSURANCE CO. LTD.
ING
VYSYA
LIFE
INSURANCE CO. PVT. LTD.
LIFE
INSURANCE
CORPORATION OF INDIA
MAX
NEW
YORK
LIFE
INSURANCE CO.LTD
METLIFE
INDIA
INSURANCE CO. PVT. LTD.
KOTAK MAHINDRA OLD
MUTUAL LIFE INSURANCE
CO.LTD.
SAHARA
INDIA
LIFE
INSURANCE CO. LTD.
SBI LIFE INSURANCE CO.
LTD.

Rural

Total

3768

32680

189

17779

4226

787

5432

43

3702

117

9324

1032

29838

92

7404

316

173958

179815

. 6899

99

3310

64

2772

204

1908

267

5013
5475
3819
10356
29930
7720
353773
6998
3374
2976
1
2175
79

Sub Total

295,276

186,793

482,069

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 INDIVIDUALS

0-5000
5000-10000
10000-15000
15000-20000
20000 AND ABOVE

43
60
49
32
16

Break up according to monthly income

60
50

Number
of
individua
ls

40
30
0-5

20
10

1k=1000

0
0k-5k

5k-10k

10k-15k

15k-20k

20 and
above

80

ANALYSIS FOR THE OVERALL INCOME GROUP

Servicemen32%

Businessmen-68%

32
Servicemen
Businessmen
68

Graduate 95%

Beyond Graduate-5%

5
Graduate
Non Graduate

95

81

Company

Premium Income
(cr)

HDFC Standard
Bajaj Allianz
ICICI Pru Life
Birla Sunlife
Tata AIG

352.14
643.59
819.75
207.93
189.24

9%

Market Share (%)

3.11
5.68
7.24
1.84
1.67

16%

9%
HDFC Standard
Bajaj Allianz
ICICI Pru Life
29%

Birla Sunlife
Tata AIG

37%

82

Q1 . Do you know about the Bajaj Allianz Life Insurance

companies?
Ans. The response of individuals are as :Yes- 60%

No-40%

40
Yes
No
60

Q2. Would you like to earn some extra money?

Ans. The response of individuals is as follows :
Yes- 90%

No-10%

10
Yes
No
90

83

Q3. What is desired or expected monthly income?

Ans. The response of individuals are as follows :-

MONTHLY INCOME
0-5000
5000-10000
10000-15000
15000-20000
20000 and above

13

02

% of people
0
2
10
75
13

10
0-5000
5000-10000
10000-15000
15000-20000
20000 and above

75

84

Q4. How much time you can provide easily besides your job
hours?
Ans. The response of individuals are as follows:-

TIME PERIOD
0-2
2-4
4-6
Full

% people

hrs.
hrs.
hrs.
time

11

42
45
11
2

2
0-2 hrs.
42

2-4 hrs.
4-6 hrs.
Full time

45

Q5. Do you have your own vehicle?

Ans. The response of people is as follows :Yes- 96.5%

No-3.5%

3.5

Yes
No

96.5

85

Q6. Do you have your own mobile?

Ans. The response of people is as follows :
Yes- 98%

No-2%
2

Yes
No

98

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%

35
Yes
No
65

86

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%

45%
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%

80
60

No-35.7%

64.3

40

35.7

20
0

S1
Yes

No

87

Q10. How many people do you know in Delhi?

Ans. The responses of people are as follows: MONTHLY INCOME

% of people

0-5000
5000-10000
10000-15000
15000-20000
20000 and above

15
10
35
25
15

S1
0-5000

500010000

1000015000

1500020000

20000 and
above

88

IMPORTANCE
COMPANY :

OF

ADVISORS

IN

AN

INSURANE

In the insurance industry the sales team following the typical

organization structure:

Hierarchy in Insurance Company

SALES
MANAGER

AREA SALES
MANAGER

AREA SALES
MANAGER

AREA SALES
MANAGER

UNIT
MANAGER

UNIT
MANAGER

UNIT
MANAGER

ADVISORS

ADVISORS

ADVISORS

The sales team comprises of the Sales Manager superior to Area

Sales Manager, These ASMs (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 ASMs 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
89

appointment, new Advisor usually account for a relatively small

proportion of the organizations total production.
The most promising means of achieving profitable production
growth lies in your sales organizations 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. Its 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, lets 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 w ill
enjoy
Satisfying sales results
90

 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 flow

SEARCH
Where to look for

ATTRACT
How to attract to life Insurance

EVALUATE
How to evaluate

PRODUCTIVITY

RETENTION

91

COMPETITIVE ADVANTAGE

SWOT ANALYSIS:

Environmental Scan

Internal Analysis

Weaknesses
Strength

External Analysis

Opportunities
Threats

92

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
93

 Non- response from the target customers

FINDINGS

People are becoming more & more money conscious as I didnt

find any person who doesnt 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 life 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 dont hesitate in

doing field work an roaming in the market. They know that without
hard work they cant earn money.

There were many respondents who were not interested in attending

seminar conducted by Bajaj Allianz among Indian Market.

94

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 ICs as they are the backbone

of the company in order to increase sales they have to do more
efforts than others.

95

BIBLIOGRAPHY
LIFE INSURERS
Life Insurance Corporation of
India
ICICI Prudential Life Insurance
Co. Limited
Birla Sun-Life Insurance
Company Limited
HDFC Standard Life Insurance
Co. Limited
ING Vysya Life Insurance
Company Limited
MetLife Insurance Company
Limited
Om Kotak Mahindra Life
Insurance Co. Ltd.
TATA AIG Life Insurance
Company Limited
Bajaj Allianz General Insurance
Co. Limited
Cholamandalam General
Insurance Co. Ltd.
Insurance Regulatory
Development Authority
Life Insurance Corporation of
India
Royal Sundaram Alliance
Insurance Co. Ltd.
Insurance Regulatory
Development Authority

Websites
www.licindia.com
www.iciciprulife.com
www.birlasunlife.com
www.hdfcinsurance.com
www.ingvysayalife.com
www.metlife.com
www.omkotakmahnidra.com
www.tata-aig.com
www.bajajallianz.co.in
www.cholainsurance.com
www.irdaindia.org
www.licindia.com
www.royalsun.com
www.irdaindia.org

96

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

97

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

98

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

99

100