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INTRODUCTION
Insurance is an integral part of everyones life in present scenario. Insurance or assurance is a device for indemnifying or guaranteeing an individual against loss. Reimbursement is made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts, called PREMIUMS. Payments for an individual loss, divided among many, do not fall heavily upon the actual loser. The essence of the contract of insurance, called a POLICY is mutuality. The entity that is transferring the risk, which may be an individual or association of any type, including a government or government agency-, is called INSURED. The entity accepting the risk is called the INSURER. The agreement between the two by which the risk is transferred is called the POLICY. This is a legal contract that sets out exactly the terms and conditions of the coverage. The fee paid by the insured to the insurer for assuming the risk is called PREMIUM. This is usually determined by the insurer to fund estimated future claims paid, administrative costs and profits.
The major operations of an insurance company are underwriting, the determination of which risks the insurer can take on; and rate making, the decisions regarding necessary prices for such risks. The underwriter is responsible for guarding against adverse selection, wherein there is excessive coverage of high risk candidates in proportion to the coverage of low risk candidates. In preventing adverse selection, the underwriter must consider physical, psychological, and moral hazards in relation to applicants. Physical hazards include those dangers, which surround the individual or property, jeopardizing the well being of the insured. The amount of the premium is determined by the operation of the law of averages as calculated by the actuaries. By investing premium payments in a wide range of revenue-producing projects, insurance companies have become major suppliers of capital and they rank among the nations largest institutional investors. MEANING OF INSURANCE
Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is a collective bearing of risk. Insurance is a financial device to spread the risks and losses of few people among a large number of people, as people prefer small fixed liability instead of big, uncertain and changing liability. Insurance can be defined as a legal contract between two parties whereby one party called insurer undertakes to pay a fixed amount of money on the happening of a particular event, which may be certain or uncertain. The other party called insured pays in exchange a fixed sum known as premium. Insurance is desired to safeguard oneself and ones family against possible losses on account of risks and perils. It provides financial compensation for the losses suffered due to the happening of any unforeseen events.
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PRINCIPLES OF INSURANCE An insurance contract is based on some basic principles of insurance: 1. Principle of utmost good faith: - It means maximum truth. Both the parties should disclose all material information regarding the subject matter of insurance. 2. Principle of indemnity: - This means that if the insured suffers a loss against which the policy has been made, he shall be fully indemnified only to the extent of loss. In other words, the insured is not entitled to make a profit on his loss. 3. Principle of subrogation: - This means the insurer has the right to stand in the place of the insured after settlement of claims in so far as the insureds right of recovery from an alternative source is involved. The insurer before the settlement of the claim may exercise the right. In other words, the insurer is entitled to recover from a negligent third party any loss payments made to the insured. The purposes of subrogation are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss. The concept of Third Party Claims is based on the same principle. 4. Principle of causa proxima: - The cause of loss must be direct and an insured one in order to claim of compensation. 5. Principle of insurable interest: - The assured must have insurance interest in the life or property insured. Insurable interest is that interest which considerably alters the position of the assured in the event of loss taking place and if the event does not take placed, he remains in the same old position.
IMPORTANCE OF INSURANCE
Insurance constitutes one of the major segments of the financial market. Insurance services play predominant role in the process of financial intermediary. Today insurance industry is one of the most growing sectors in India. There is lot of potential in the Indian Insurance Industry. There are many issues, which require study. The scope of the study of Insurance industry of India would be very great as there are ongoing developments in the industry after the opening of the sector The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. In near future Government may allow 49% FDI in Insurance. This would lead to more capital inflow by foreign partners.
Another major issue is the effects on LIC after the entry of private players in the market. Though market share of LIC has been affected, it has improved in terms of efficiency. There are number of other hot topics like penetration of Health Insurance, Rural marketing of insurance, new distribution channels, new product ranges, insurance brokers regulation, incentive scheme of development officers of LIC etc. So it offers lot of scope for studying the insurance industry. Right now the insurance industry has great opportunities in countries like India or China which have huge population. Also the penetration of insurance in India is very low in both life and nonlife segment so there is lot potential to be tapped. Before starting the discussion on insurance industry and related issues, we have to start with the basics of insurance. So first we understand what is Insurance? How the word insurance is different from the word Assurance? Etc.
HISTORY OF INSURANCE
The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders used to bear risk of the carvan by giving loans, which were later repaid with interest when the goods arrived safely. The concept of insurance as we know today took shape in 1688 at a place called Lloyds Coffee House in London where risk bearers used to meet to transact business. This coffee house became so popular that Lloyds became the one of the first modern insurance companies by the end of the eighteenth century.
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Marine insurance companies came into existence by the end of the eighteenth century. These companies were empowered to write fire and life insurance as well as marine. The Great Fire of London in 1966 caused huge loss of property and life. With a view to providing fire insurance facilities, Dr. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire Office. The early history of insurance in India can be traced back to the Vedas. The Sanskrit term Yogakshema (meaning well being), the name of Life Insurance Corporation of Indias corporate headquarters, is found in the Rig Veda. The Aryans practiced some form of community insurance around 1000 BC. Life insurance in its modern form came to India from England in 1818. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. The insurance companies, which came into existence between 1818 and 1869, treated Indian lives as subnormal and charged an extra premium of 15 to 20 percent. The first Indian insurance company, the Bombay Mutual Life Assurance Society, came into existence in 1870 to cover Indian lives at normal rates. The Insurance Act, 1938, the first comprehensive legislation governing both life and non-life branches of insurance were enacted to provide strict state control over insurance business. This amended insurance Act looked into investments, expenditure and management of these companies. By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75 provident societies carrying on life insurance business in India. Insurance business flourished and so did scams, irregularities and dubious investment practices by scores of companies. As a result the government decided to nationalize the life assurance business in India. The Life Insurance Corporation of India (LIC) was set up in 1956. The nationalization of life Insurance was followed by general insurance in 1972.
1972: Non-life business nationalized, General Insurance Corporation (GIC) came into being. 1993: Malhotra committee was constituted under the chairmanship of former RBI chief R. N. Malhotra to draw a blue print for insurance sector reforms. 1994: Malhotra committee recommended reentry of private players. 1997: IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of the insurance market in India. 2000: IRDA started giving license to private insurers. ICICI Prudential, HDFC were first private players to sell Insurance Policies. 2001: Royal Sundaram was the first non-life private player to sell an insurance policy. 2002: Bank allowed selling insurance plans as TPAs enter the scene, insurers start setting non-life claims in the cashless mode.
Literature Review
The Background
Bajaj Allianz Life Insurance Co. Ltd.is a joint venture between two leading conglomeratesAllianz AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Characterized by global presence with a local focus and driven by customer orientation to establish high earnings potential and financial strength, Bajaj Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance business in India. Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world. A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous with quality & customer focus. With over 15,000 employees, the company is a Rs. 4000 crore auto giant, is the largest 2/3-wheeler manufacturer in India and the 4th largest in the world. AAA rated by Crisil, Bajaj Auto has been in operation for over 55 years. It has joined hands with Allianz to provide the Indian consumers with a distinct option in terms of life insurance products.
Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 5 years and life thereafter Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 10 years and life thereafter Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 15 years and life thereafter Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 20 years and life thereafter Bajaj Allianz Pension Guarantee-Return of Capital: Annuity for life with Return of Capital (Purchase Price) How does Bajaj Allianz Pension Guarantee work? All you have to do is pay a lump sum amount to Bajaj Allianz Life Insurance Company and the annuity payments will start after expiry of monthly/quarterly/half-yearly/ yearly interval corresponding to the payment mode selected by you. Under all the options, annuity is payable for life, so you do not have to worry about your income stopping at any stage. Under the Return of Capital option (option 6 above), the amount used to purchase the annuity is paid to the nominee on the death of the annuitant. Important details of the Bajaj Allianz Pension Guarantee Plan Minimum Age at Entry 45 Maximum Age at Entry 80 Minimum Purchase Price Rs. 25,000 Minimum Annuity Installment Rs. 1,000 Annuity Frequency Mode For your convenience we have provided 4 Annuity Frequency Modes that can be Yearly, Half yearly, Quarterly or Monthly. The annuity will be payable one month/quarter/half year/year after the date of purchase depending on the mode selected. The Sample Annuity Rate per annum per Rs.1 lakh of purchase price is given below. The annuity rate varies between different purchase price bands. Tax Benefits The policy will be eligible for tax benefits under Section 80C of the Income Tax Act as of now.
Yet, who can predict the unfortunate twists and turns in life? And in case of unfortunate death of the loanee, the burden of repayment falls on the family. Bajaj Allianz Protector is the perfect plan to protect your family from the repayment liability of outstanding loans. All this at a very nominal cost. Now, is there a better way to provide for your familys financial security?
Joint life availability You have the option to cover the co-applicant of the loan under this plan. Under this option, both lives will be covered and the death benefit will be payable in case of death of either life. The policy terminates on death of either life.
Benefits Payable
Death Benefit The death benefit is equal to the outstanding principal amount of the loan due as per the loan schedule, irrespective of changes in interest rate/term at a later stage. The outstanding amount of loan due will depend on the loan amount, loan tenure and interest rate as agreed upon at the time of disbursement of the loan. Important details of the Bajaj Allianz Protector Plan Eligibility Condition Minimum Sum Assured Rs. 2, 00,000
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Maximum Sum Assured No Limit Minimum Age at Entry 20 Yrs Maximum Age at Entry 55 Yrs Maximum Age at Policy Expiry Date 65 Yrs Minimum Term for Single Premium 2 Yrs Minimum Term for Regular Premium 5 Yrs Maximum Term (Regular and Single Premium) 30 Yrs
Premium Payment Mode For your convenience we have provided 5 Premium Payment Modes that can be single premium, yearly, half-yearly, quarterly or monthly. The premium for frequencies other than yearly mode is the annual premium multiplied with the frequency factor (0.51 for the half yearly mode, 0.26 for the quarterly mode, and 0.09 for the monthly mode). Monthly mode is permitted only by salary deduction or direct bank debit. The minimum premiums are Rs. 2500 for the Single Premium, Rs. 1000 for the annual mode, Rs. 700 for the half-yearly mode, Rs. 450 for quarterly mode and Rs. 175 for monthly. Tax Benefits Tax benefits under Section 80C and Section 10(10) D available as per applicable tax laws. All payments due under this plan shall be governed by tax laws applicable at that point of time. Surrender values/Paid up Values There are no surrender values or paid-up values under this plan. Loans Loans are not available under this plan Change of Occupation On change of occupation, depending upon the nature of the new occupation, the premiums and benefits may be modified. Days of Grace In case of non-payment of premiums, a grace period of 30 days will be allowed for the yearly, half yearly and quarterly modes (15 days for the monthly mode). After that the policy will lapse. Revival of the Policy
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It is possible to revive a policy that has lapsed due to non-payment of premiums within 5 years from the date of lapse. The revival will be effected subject to underwriting. In case of joint life, revival would be subject to underwriting on both lives. General Exclusion In case the life assured (in case of joint life, either of the life assured) commits suicide within one year from the date of commencement / reinstatement of the policy, the benefits of the plan would not be payable, and the premiums would be refunded.
3. TERM CARE
At the back of our minds we are often nagged by certain fears, the fears of an uncertain future, the insecurity of not being able to provide adequately for our loved ones, the fear of not being able to save enough. Life Insurance is the only complete answer to these fears. It is life insurance that provides you with the security of a financial safety net and enables you to plan for unpredictable adversities. Happiness often sneaks in through a door you didn't know you left open. Let life insurance be that door for you.
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i. Economy: This is the basic plan, which is available for both the regular and single premium payment options. ii. Protect: This pack comes with the following 3 in-built additional benefits: a. Accidental Death Benefit. b. Accidental Permanent Total/Partial Disability Benefit. c. Waiver of Premium Benefit (in case of accidental permanent total disability). The Protect Pack is available with the regular premium payment option only. iii. Health: This pack comes with the following 2 in-built additional benefits: a. Critical Illness Benefit. b. Hospital Cash Benefit. The Health Pack is available with the regular premium payment option only. iv. Total: This pack comes with the following 5 in-built additional benefits: a. Accidental Death Benefit. b. Accidental Permanent Total/Partial Disability Benefit. c. Waiver of Premium Benefit (in case of accidental permanent total disability). d. Critical Illness Benefit. e. Hospital Cash Benefit. The Total Pack is available with the regular premium payment option only.
What are the in-built benefits that the 'Bajaj Allianz Term Care' Plan offers you? a. Accidental Death Benefit Accidents are always sudden and sometimes fatal. You can't lessen the emotional shock, but you can certainly soften the financial one. Bajaj Allianz Accidental Death Benefit gives your loved ones something to start with after the permanent loss of your income by paying double the basic Sum Assured. The total Accidental Death Benefit shall however be subject to a maximum of Rs. 10, 00,000/under all policies taken with Bajaj Allianz together. b. Accidental Permanent Total/Partial Disability Benefit Accidents are unpredictable and so are the consequences. This may lead to a disability - partial or total. The Bajaj Allianz Accidental Permanent Total/Partial Disability Benefit provides a financial cushion against such misfortunes.
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Type of Disability Accidental Permanent Partial Disability Accidental Permanent Total Disability
* Subject to a maximum of Rs. 5, 00,000/- under all policies with Bajaj Allianz taken together. ** Subject to a maximum of Rs. 10, 00,000/- under all policies with Bajaj Allianz taken together. c. Waiver of Premium Benefit An accident may lead to permanent total disability limiting your ability to earn. The Bajaj Allianz Waiver of Premium Benefit is a helping hand when you need it most. It keeps your insurance cover alive by waiving off future premiums and enables you to live up to your commitments. d. Critical Illness Benefit Some illnesses are critical. They not only alter your life's pattern but also result in a financial drain. Bajaj Allianz Critical Illness Benefit softens the impact on your family by paying out the Critical Illness Benefit (equal to the Sum Assured) under the plan immediately, while other policy benefits continue (excluding Hospital Cash Benefit). We cover 11 Critical Illnesses. e. Hospital Cash Benefit The worry of settling hospital bills (room charges) adds to the trauma of hospitalization. Bajaj Allianz Hospital Cash Benefit reduces this financial burden and helps you to recover with peace of mind. Flexibility in Coverage* At Bajaj Allianz, we believe in offering benefits and not just products. We realize that you are unique and your needs for insurance vary with time. We therefore offer you the flexibility of including the following benefit combination at each policy anniversary. Combination 1: Accidental Death Benefit; Accidental Permanent Total/Partial Disability Benefit; Waiver of Premium Benefit. This combination can be added, if not taken earlier, deleted and added subsequently at each policy anniversary. We also offer the flexibility of excluding the following benefit combination: Combination 2: Critical Illness Benefit; Hospital Cash Benefit. This combination can be taken at inception only but can be excluded
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Subsequently at any policy anniversary. Once excluded, Combination 2 cannot be included in the policy subsequently. * Available with the regular premium payment option only Other important details of the 'Bajaj Allianz Term Care' Plan. Eligibility Condition Minimum Age at Entry Maximum Age at Entry Maximum Age at Maturity Minimum Term Maximum Term Minimum Sum Assured Maximum Sum Assured Minimum Premium 18 Years 50 years 65 years 5 years 40 years Rs. 1, 00,000/Rs. 10, 00,000/(Rs.) 1500/- for Yearly, Rs. 1500/- for Half Yearly. The minimum premium for Single Premium option shall be Rs. 6000/Premium Payment Mode For your convenience we have provided 3 Premium Payment Modes that can be single premium, yearly or half-yearly.
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How does the Bajaj Allianz New Risk Care work? What are the Benefits? You are required to make regular installments or a one-time payment. In case of any unfortunate happening before maturity of the policy, the Death Benefit on the policy will be paid to the nominee. There is no maturity benefit. Power of 4 for Enhanced Protection Accidental Death Benefit: Covers against Accidental Protection. Accidental Permanent Total/Partial Disability Benefit: Covers against Disability protection. Critical Illness Benefit: Covers you against 11 defined critical diseases. Hospital Cash Benefit: Reduces your burden against hospitalization expenses. (For complete details on riders, please refer to our Additional Rider Benefits Brochure. These additional Rider Benefits are available on regular premium policies only and not on single premium policies.) Flexibility in Coverage At Bajaj Allianz, we believe in offering solutions and not just benefits. We believe that you are unique and your needs for insurance are different from others and vary with time. We therefore present you New Risk Care with Additional Rider Benefits, which offers you the flexibility of inclusion or exclusion of coverage at each policy anniversary, subject to conditions relating to such inclusions and exclusions. Accidental Death Benefit, Accidental Permanent Total/Partial Disability Benefit can be included or excluded at each policy anniversary, but once excluded cannot be included again. Hospital Cash Benefit (HCB) and Critical Illness (CI) can be taken at inception only. HCB & CI can be reduced or excluded subsequently at any policy anniversary. Once reduced or excluded, they cannot be increased or included subsequently. Minimum Premium Amount Rs. 200 per Monthly installment (through salary deduction or ECS), Rs. 500 per Quarterly installment, Rs. 1,000 per Half-Yearly installment, Rs. 1,500 per Yearly installment, Rs. 5,000 for Single Premium. Important Details Minimum Entry Age Maximum Entry Age Maximum Maturity Age Minimum Policy Term Maximum Policy Term Minimum Sum Assured 18 years 60 years 65 years 5 years 40 years Rs.4, 00,000
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Rs.50, 00, 00,000 Yearly/Half yearly /Quarterly/Monthly/Single On Sum Assured of Rs. 10,00,000 or more
The table below illustrates the premium rates* for New Risk Care. Age: Gender: Sum Assured: Payment Mode 10 15 Single Premium (in Rs.) 9,045 13,140 Regular Annual Premium (in Rs.) 1,665 1,840 *Excluding service tax. Death benefit In case of any unfortunate happening before maturity of the policy, the Death Benefit equal to the chosen Sum Assured on the policy will be paid to the nominee. Surrender Value In case of Single Premium mode, the policy can be surrendered after five years from Policy Commencement Date and the surrender value is equal to 0.70*(n-t)/n*Single Premium, where n is Policy Term and t is elapsed duration in years from Policy Commencement Date to the Policy Anniversary following the date of surrender. Surrender value is not payable on Regular Premium mode. Revival of lapsed Policy You may revive the lapsed policy within two years from first unpaid premium by paying all due regular premiums along with interest compounding half-yearly at such rate as the Company may decide from time to time. Tax Benefits 30 Years Male Rs. 5, 00,000 Term 20 17,650 1,970
25 22,630 2,065
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Premium paid will be eligible for tax benefit under Section 80C. The death benefit will be eligible for tax benefit under Section 10(10) D as per the prevailing tax laws. Nomination Nomination can be made for receiving policy proceeds in case of death. General Exclusion If the Life Assured commits suicide whether sane or insane, within one year from the Policy Commencement Date or Commencement of Risk, the Company will not entertain any claim by virtue of this Policy except to the extent of the Installment/Single Premium paid. The actual date of death will be the basis for determining the validity of the contract of insurance.
5. CHILD GAIN
Are your children destined for greatness? Will they devise the universal currency, or solve the problem of global warming? Will they make music like we have never heard before, or keep shattering records in sports? Will they bring God to men, or peace to the world? Your children may just be the ones to end wars, feed the hungry, and care for many. Your child can aim for the highest echelons of success, for greatness, and immortal fame. Your child can dream. But before your child does, you must.
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1. Limited Premium Payment Term which means that the premiums are payable till your child attains age 18 years. 2. Your contributions grow by the way of compounded annual bonuses, which will be paid to you with the first guaranteed payout (policy anniversary following age 18 of your child), for inforce policies. In addition to the annual bonuses, a terminal bonus may also be paid. 3. You are eligible for Tax Benefits under Section 80C and Section 10(10) D of the Income Tax Act. 4. Assuring Your Childs Future: In an uncertain world, the prime interest of your child cannot be jeopardized in any way. This is why we have built in some added benefits in all our plans to protect the interests of your childs future, by counter insuring you- the policy holder.
Inbuilt Benefits
Premium Waiver Benefit: In case of death or accidental total permanent disability of the policyholder during the premium payment term, all future premium payments are waived. This benefit will not be available in the event of accidental permanent total disability after age 65 of the policyholder. Family Income Benefit: In case of death or accidental total permanent disability of the policyholder during the term of the policy, a monthly income benefit of 1% of the sum assured (12% per annum) subject to a maximum of Rs.10,000 p.m. becomes payable till the end of the policy term. This benefit will not be available in the event of accidental permanent total disability after age 65 of the policyholder. Option to Purchase further Insurance at Maturity: For ensuring continuity of the valuable insurance protection that the child was enjoying, we offer the child an option to purchase a with profits endowment or an equivalent plan from Bajaj Allianz Life Insurance Company for twice the amount of face value of this policy, without any medical examination, on the premium rates prevailing at that time (The application must be made at least 6 months prior to maturity of this policy).
Payout Structures
For Child Gain 21 and Child Gain 21 Plus: The minimum guaranteed payouts are as follows: Policy Anniversary following completion of Age Payout as % of Sum Assured 18 19 20 21
For Child Gain 24 and Child Gain 24 Plus: The minimum guaranteed payouts are as follows:
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Policy Anniversary following 18 completion of Age Payout as % of Sum Assured 25% + Accrued Bonuses
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Refers to probable increase in payout based on higher interest during the payout period.
Start of Life Benefit Unique Feature of Bajaj Allianz Child Gain 21 Plus and 24 Plus
These packages offer you the choice of providing a unique Start of Life Benefit for your child. For a nominal amount, an additional Sum Assured subject to a maximum limit of Rs. 10 lakhs will become payable to enable the child start his/her professional life smoothly, in case of an unfortunate death or Accidental Permanent Total Disability of the Policyholder during the term of the policy. This benefit will not be available in the event of accidental permanent total disability, after age 65 of the policyholder.
Death Payout
In the event of unfortunate death of the child during the policy term, the payouts shall be as under: Age Below 7 years Payout Premiums paid will be refunded without interest and the Policy will terminate. Sum assured with accrued bonuses will be paid and the policy will terminate. Outstanding payouts will be paid as one lump sum and the policy will terminate.
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Maximum age of child 13 13 Minimum Premium Payment Term 5 5 Maximum Premium Payment Term 18 18 Maximum Policy term 21 less age at 24 less age at entry of LA (Child) entry of LA (Child) Maximum age of child at maturity 21 24 Minimum Sum Assured Rs. 100000 Rs. 100000 Maximum Sum Assured Rs. 5000000 Rs. 5000000 Minimum Premium Minimum Premium Rs. 5000 for yearly mode, Rs. 3,000 for half year mode, Rs. 3,000 for quarterly mode and Rs. 700 for monthly mode (Monthly mode available under salary deduction scheme only and minimum proposal deposit should be Rs.2100 i.e. three months payment in advance). Age = Age on last birthday. The Policy Term + Age of policyholder should not exceed 70 for all plans.
Premiums
For your convenience we have provided 4 Premium Payment Modes that can be Yearly, Halfyearly, Quarterly and monthly. We also offer a Monthly Premium Payment Mode under salary deduction schemes.
Surrender
We offer you the choice of surrendering the policy provided three full years premiums have been paid (Two years for premium payment 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 Rider Benefit if 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 Plan
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Suicide within one year from commencement of risk, whether sane or not.
Benefits:
Death Benefit: The death benefit will be the sum assured plus declared reversionary bonuses plus interim bonus. In case of death after 15 full policy years, the Company may pay terminal bonus for in-force and fully paid-up policies. Survival Benefit: In case of survival to age 80, the sum assured plus declared reversionary bonuses plus interim bonus plus a possible terminal bonus is paid at age 80. What are the 5 additional benefits? a) 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 your loved ones something to start with after the permanent loss of your income by paying the basic Sum Assured, subject to a maximum of Rs.10, 00,000/- under all policies with Bajaj Allianz taken together.
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b) Accidental Permanent Total/Partial Disability Benefit Accidents are unpredictable and so are the consequences. This may lead to a mDisability - partial or total. The Bajaj Allianz Accidental Permanent Total/Partial Disability Benefit provides a financial cushion against such misfortunes. Type of disability Benefit Permanent Partial Disability 50% of the Sum Assured * Permanent Total Disability 100% of the Sum Assured ** * Subject to a maximum of Rs. 5, 00,000/- under all policies with Bajaj Allianz taken together ** Subject to a maximum of Rs. 10, 00,000/- under all policies with Bajaj Allianz taken together c) Waiver of Premium Benefit An accident may lead to permanent total disability limiting your ability to earn. Bajaj Allianz Waiver of Premium Benefit is a helping hand when you need it most. It keeps your insurance cover alive by waiving future premiums and enables you to live up to your commitments. d) Critical Illness Benefit Some illnesses are critical. They not only alter your lifes pattern but also result in a financial drain. Bajaj Allianz Critical Illness Benefit softens the impact on your family by paying out the Critical Illness Benefit under the plan immediately, while other policy benefits continue (excluding Hospital Cash Benefit). We cover 11 Critical Illnesses. This benefit is available for the premium payment term only. e) Hospital Cash Benefit The worry of settling hospital bills (room charges) adds to the trauma of hospitalization. Bajaj Allianz Hospital Cash Benefit reduces this financial burden and helps you to recover with peace of mind. This benefit is available for the premium payment term only. Flexibility in Coverage At Bajaj Allianz, we believe in offering benefits and not just products. We realize that you are unique and your needs for insurance vary with time. We therefore offer you the flexibility of including the following benefit combination at each policy anniversary. Combination 1: Accidental Death Benefit, Accidental Permanent Total/Partial Disability Benefit and Waiver of Premium Benefit can be added, if not taken earlier, deleted and added subsequently at each policy anniversary. We also offer the flexibility of excluding the following benefit combination.
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Combination 2: Critical Illness Benefit and Hospital Cash Benefit can be taken at inception only but can be excluded subsequently at any policy anniversary. Once excluded, Combination 2 cannot be included in the policy subsequently. Increase in risk coverage Every added responsibility in your life calls for increase in your risk cover. We provide you the option to include additional death coverage of 50% of the Sum Assured on each of the following happy moments in your life. Your marriage The birth of your first child the birth of your second child This additional coverage is not subject to underwriting. Other Important details of the Bajaj Allianz Lifetime Care Plan.
Eligibility Conditions Lifetime Care Lifetime Care - Protect/ Economy Health/Total Minimum Age at Entry 15 18 Maximum Age at Entry 60 50 Maximum Premium Ceasing Age 80 80 Minimum Premium Payment Term 10 10 Minimum Premium (Rs.) 1,500/- for Yearly, 800/- for Half Yearly, 450/- for Quarterly and 150/- for Monthly*. * By salary deduction only Premium Discount Bajaj Allianz offers an attractive premium discount structure which is offered for all policies where the sum assured exceeds the minimum sum assured by at least Rs.10, 000. The discount for annual premium is Rs.48 for each full Rs.10, 000, the sum assured exceeds the minimum sum assured allowed. Indicative Annual Premium Rates* for Lifetime Care Economy
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Sum Assured Rs. 5, 00,000 Rs. 10, 00,000 15,000 29,760 12,475 24,710 11,190 22,140 10,515 20,790
The rates are for a healthy 30 year old male. Premium Payment Mode For your convenience we have provided 3 Premium Payment Modes that can be yearly, halfyearly or quarterly. We also offer a Monthly Premium Payment Mode with salary deduction schemes. Advantage for Women There will be a basic premium discount for female policyholders in the package. Basic premium payable will be equivalent to the premium for a two-year younger male policyholder. Tax Benefits Premiums paid are eligible for Tax Benefits under Section 80(C) of the Income Tax Act and maturity and death proceeds are eligible for Tax Free under Section 10(10)D of the Income Tax Act. Surrender While we do not encourage surrender of a policy as it breaks your security cover, we realize the importance of availability of cash at a short notice in some emergencies. Therefore, we provide you with a choice of surrendering the policy, provided 3 full years premiums have been duly paid. Fund Access - Loans You can avail of Loans under your policy provided 3 full years premiums have been duly paid. The loan amount shall be within 90% of the surrender value.
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benefits, the most significant is the Family Income Benefit (FIB) that sustains the family by compensating the loss of income due to death or permanent disability. This is a one-stop shop solution that can keep you and your family financially protected at times when you need it most. In a financial world where choices can drive you crazy, your search for the perfect life insurance plan stops here. Important details of the Bajaj Allianz Invest Gain Plan. Conditions Invest Gain Economy Invest Gain Gold / Diamond / Platinum Any additional benefit
0 (Risk Commences 18 at age 7) Maximum Age at Entry 65 50 Maximum Age at Maturity 70 70 Minimum Term 5 years Maximum Term 40 years Minimum Sum Assured Rs. 50000 Maximum Sum Assured No Limit Minimum Premium* Rs. 5000 for Yearly, Rs. 2500 for Half Yearly, Rs. 1250 for Quarterly and Rs. 700 for monthly. Premium Payment term Equal to the policy term or limited as per the table given *Monthly mode is available under ECS / salary savings scheme only. The Ultimate Protection - For Your Loved Ones You can select the unique Family Income Benefit from Bajaj Allianz that ensures total financial protection for your 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 end of the policy term or at least for a period of 10 years, whichever is higher. Moreover, all future premiums are waived. Additional Protection for you and your family. You have the option to add the following additional benefits, providing total protection against uncertainties. a) Family Income Benefit (FIB) - as already described. b) Comprehensive Accident Protection This benefit provides comprehensive cover in case of an accident. It comprises of:
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Accidental Death Benefit Accidents are always sudden and sometimes fatal. You can't lessen the emotional shock, but you can certainly soften the financial one. Bajaj Allianz Accidental Death Benefit gives the loved ones something to start with after the permanent loss of income by paying an amount equal to the Sum Assured. (Subject to a maximum of Rs. 50, 00,000/- under all policies with Bajaj Allianz taken together). Accidental Permanent Total/Partial Disability Benefit Accidents are unpredictable, and so are the consequences. They may lead to a disability partial or total. This Benefit provides a financial cushion against such misfortunes. 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 An accident may lead to permanent total disability, limiting one's ability to earn. Bajaj Allianz Waiver of Premium benefit is a helping hand when one needs it most. It waives off all future premiums while keeping the valuable life insurance cover alive, thus enabling you to live up to your commitments. c) Critical Illness Benefit (CI) Some illnesses are critical. They not only alter one's life's pattern but also result in a financial drain. Bajaj Allianz Critical Illness Benefit 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. You 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 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. e) Mahila Gain Rider Benefit Provides protection against risks specific to women. (Refer Mahila Gain brochure for details).
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Flexibility in Coverage At Bajaj Allianz, we believe in offering benefits and not just products. We realize that you are unique and your need for insurance vary with time. We therefore offer you the flexibility of inclusion of coverage or exclusion of coverage at each policy anniversary, subject to conditions relating to such inclusions and exclusions. Comprehensive Accident Protection can be included and excluded at each policy anniversary. Family Income Benefit, Mahila Gain Rider Benefit, Critical Illness Benefit and Hospital Cash Benefit can be taken at inception only. Mahila Gain Rider Benefit, CI & HC can be reduced or excluded subsequently at any policy anniversary. Once reduced or excluded, they cannot be increased or included subsequently.
Equal to surgical expenses, Max. Rs. 50,000 during the policy term Rs. 50,000 payable on total disability and Rs. 25,000 payable on partial disability
The benefits payable for all policies under Bajaj Allianz HealthCare plan put together will not exceed the maximum amount of cover available under Bajaj Allianz Health Care.
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HealthCare Plan Frequently Asked Questions Q. 1. Why should I buy Bajaj Allianz HealthCare? Ans. Bajaj Allianz HealthCare is a comprehensive Health insurance policy, wherein it offers 6-in-1 insurance cover - i.e., Hospital Cash benefit, Post Hospitalization Benefit, Surgical Benefit, Critical Illness Cover, Benefit for partial and total permanent disability due to accident and Life cover. Q.2. Who can buy Bajaj Allianz HealthCare? Ans. Anyone between the age of 18 and 57 can apply for the Bajaj Allianz HealthCare plan. Q. 3. How can I buy Bajaj Allianz HealthCare? Ans. Visit any of our branches, and our Consultants will get in touch with you and guide you through the required process. Q. 4. Do I have to undergo medical check-up? Ans. Yes. A complete medical examination which will be paid by us may have to be carried out. Our Consultants will guide you through the required process. Q. 5. Why should I buy HealthCare if I have other medical insurance policies? Ans. Bajaj Allianz HealthCare can be claimed along with other medical insurance policies like Mediclaim. Besides, HealthCare provides coverage for 3 years instead of one year, thereby giving added protection and coverage. Premiums are guaranteed for 3 years. Q. 6. What if I miss paying the premiums? Ans. The policy can be reinstated within 6 months from the due date of the first unpaid premium subject to the payment of outstanding premiums plus interest, subject to underwriting. Q. 7. Do I need to be treated only in particular hospitals, which are in your panel? Ans. No, you can choose your own hospital as per your convenience and belief, provided it is a registered hospital with at least 15 beds. The hospital need not be in our panel. Health is Wealth particularly when health care costs are getting higher every year. The emotional and financial burden of a serious accident, major illness or surgery often lasts beyond the immediate period of the trauma. Bajaj Allianz HealthCare protects you and your family from the high expenses associated with medical care and provides you with a comprehensive financial cushion against various health hazards.
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The benefits under this plan are payable in addition to the benefits under all other plans that you may have, including a Mediclaim policy.
Indicative Premiums*: Age For Minimum Cover (Male) For Minimum Cover (Female) 20 917 972 30 1011 1091 40 1445 1347 45 1887 1604 50 2454 1937 * Service Tax applicable as per the prevailing rates. Benefits: Life Cover is payable on death of the life assured. Hospital Cash Benefit: The worry of meeting expenses relating to hospitalization adds to the trauma of hospitalization. Hospital Cash Benefit reduces this financial burden and helps you recover with peace of mind. If you have to stay in hospital as a result of injury, sickness or disease, we will pay at the rate of the room charge in hospital, subject to the limit of the benefit level chosen, for each full days stay in hospital exceeding 3 days up to the total limit allowed in a policy year. The amount is payable in a lump sum at the end of the stay in hospital. The benefit period starts after a waiting period of 60 days from the commencement of risk or reinstatement of risk, except for accidental injury. Multiple claims can be made in a policy year. Post Hospitalization Benefit: Recuperating from a surgery/major treatment takes time, and our Post Hospitalization Benefit allows you this facility without adding burden to your wallet. We pay 50% of the Hospital Cash benefit claim settled per day for a maximum of 5 days in a policy year for essential follow-up treatment on the basis of recommendation of the hospital/surgeon. Surgical Benefit: The costs of doing a surgery have gone up significantly today. Our Surgical benefit pays you for a surgery done by a qualified surgeon performed at a registered hospital with a minimum of 15 beds (as in-patient) for surgical procedures advised by a qualified doctor/physician/surgeon. The benefit amount payable is equal to the surgical expenses (i.e. surgeons fee, operation theatre charges and anesthetists charges) subject to the maximum surgical benefit amount payable in a policy year. The surgical benefit can only be claimed if the illness covered is diagnosed at least 180 days after the date of commencement of risk or reinstatement of risk.
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There is no waiting period if surgery is done due to an accidental injury. Critical Illness Benefit: Some illnesses are critical. They not only alter your lifes pattern but also result in a financial drain. The Critical Illness Benefit softens the impact on the family by paying out a lump sum as per the cover selected immediately, while other policy benefits continue. The critical illness benefit can only be claimed if the illness is diagnosed at least 180 days after the date of commencement or reinstatement of risk. We cover 11 critical illnesses: First Heart Attack, Coronary Artery Disease Requiring Surgery, Stroke, Cancer, Kidney Failure, Major Organ Transplantation, Multiple Sclerosis, Aorta Graft Surgery, and Primary Pulmonary Arterial Hypertension, Alzheimers disease, Paralysis. Accident Permanent Total / Partial Disability (TPD): Accidents are unpredictable and so are the consequences. They may lead to a permanent disability - partial or total. This benefit provides a financial cushion against such misfortunes. Accidental permanent total disability will mean total and permanent disability as a result of an accident (within 180 days from the date of accident) resulting in one of: Loss of both eyes, Loss of both arms or both hands, Loss of one arm and one leg, Loss of one arm and one foot, Loss of one hand and one foot, Loss of one hand and one leg, Loss of both legs, Loss of both feet, Removal of the lower jaw. Accidental permanent partial disability will mean permanent disability as a result of an accident resulting in one of: Loss of one eye, Loss of one leg, Loss of one arm, Loss of one hand, Loss of one foot. Loss of hand will mean above wrist, loss of arm will mean above elbow, loss of feet will mean above ankle and loss of leg will mean above knee. Multiple Claims: Hospital Cash, Post Hospitalization Benefit & Surgical Benefit can be claimed on multiple occasions as per the coverage selected (subject to the overall limits) provided the policy is in force at the time of claim. Claim Settlement Process There are two modes of claim settlement Cashless Service (CLS) facility at networked hospitals and reimbursement of hospitalization expenses (subject to limit as applicable under the plan) wherein treatment is taken in Non Network Hospital. Cashless Service Benefits We have tied up with Medicare Third Party Administrator (TPA) Services to provide you with customized, high-quality health benefit services under this product. Through TPA, we have in our network, easy and fast access to some of the best Hospitals, Nursing Homes and other Medical Resources. You can avail Cashless Service in these networked hospitals. On issuance of a policy, you would be provided with a Health Card (Photo Identity Card) and a
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Guide Book, which would contain list of Network Hospitals, the details how to go about the Cashless Service in case of planned and emergency hospitalization and Hospitalization Intimation Form/Pre-authorization Form to be filled up by your attending Doctor for hospitalization in empanelled hospitals. The Medicare TPA will maintain a 24/7 Help line on Toll free number as well as mobile numbers to facilitate any medical emergency requirements. The Cashless Service would be facilitated by the TPA and will help you avail of the hospitalization benefits quickly through our network hospitals without any caution deposit etc. To avail of the Cashless Service facility all you need to do is to contact our TPA at any of their offices which are convenient to you and submit Hospitalization Intimation /Preauthorization Form. In case of emergency please produce your Health Card to take admission at network hospital. Within 48 hours of hospitalization, contact the TPA to obtain the cashless authorization and complete the formal process of admission. If the TPA sanctions cash fewer requests, the admissible claim amount would directly be settled with network hospital through TPA. Payment by you at the time of discharge will only be required for the cost of inadmissible items not covered by the policy under this plan. Cashless Service is restricted only to those hospitalization expenses which are directly related to the illness which necessitate hospitalization. Cashless Service is not available for Pre/Post hospitalization treatment. Benefit through Reimbursement (Non Cashless Service) You have the right of getting treated in any Hospital anywhere in India. If treated at NonNetwork Hospital we shall reimburse your hospitalization expenses (subject to maximum allowed under the policy) within 7 days on submission of all bills & requisite documents.
year health cover for your entire family and allows You to renew the policy after every 3 years to keep Your family covered till the age of 74 years. So no separate accounts, repetitive paperwork or payment adjustments for each member. Secure Your entire family in one shot. How does the plan work? The Policy covers hospitalization expenses ranging from Rs. 1 lakh to Rs. 10 lakhs. This means, if you opt for a sum assured of Rs. 5 lakhs for your family, you and your family together can avail up to Rs. 5 lakhs every year to meet your hospitalization expenses, subject to limits on reimbursement of expenses, waiting period and exclusions as mentioned below. All the life assureds covered under the policy will be referred to as Member(s). The proposer or his/her spouse, if included, who so ever is of higher age shall be referred to as Primary Member and all other life assureds as dependent Members. Children of the Primary Member shall be covered provided they are economically dependent on parent(s) and are not married. Key Benefits _ Coverage from 3 months to age 74 with guaranteed renewals _ 3 year premium guarantee for each policy term _ Hospitalization Cover in leading hospitals across the country. _ 15% discount on premium on every renewal _ No claim bonus in the form of increase in sum assured@5% every year _ Day Care Treatment for 125 day care procedures _ Pre-Hospitalization and Post-Hospitalization Benefit _ Reimbursement of Ambulance expenses _ Choice to select Health Critical Illness rider _ Choice to include Your spouse, children and parents _ Cash Less Service Facility in leading hospitals across the country Hospitalization Cover Following expenses incurred during the hospitalization (for at least continuous period of 24 hours) for in-patient treatment would be covered under the policy. _ Room rent and Boarding expenses _ Nursing expenses _ Doctors fees _ Operation theatre charges
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_ Cost of Anesthesia, Blood, Oxygen, Medicines and Drugs, Diagnostic Materials, X-Ray, Surgical Appliances, any disposable surgical consumables, dialysis, radiotherapy, Artificial Limbs, stents and implants, and pacemaker. Pre-Hospitalization and Post-Hospitalization Benefit A flat benefit of 3% of the reimbursable hospital expenses will be paid on each hospitalization claim towards pre-hospitalization and post-hospitalization expenses. Ambulance Charges In case the hospitalization requires an ambulance, the expenses for ambulance will be reimbursed by us subject to a maximum reimbursement of Rs. 1,000 for a member in a policy year provided the member is Hospitalized for more than 24 continuous hours. Cash less Service Facility _ Cash Less Services (CLS) will help You avail the hospitalization benefits without any advance payment in the hospital and facilitate quick delivery of services through Network Hospitals (NWH). _ Third Party Administrators (TPA) of the Company facilitates the Cash Less Services. _ On issuance of the policy, the TPA will provide the member(s) a photo identification card and a guide book, which would contain a list of NWH, the details explaining the process for application of CLS and hospitalization intimation form / pre-authorization form to be filled up by your attending doctor for hospitalization in NWH. _ The TPA will maintain 24/7 helpline on toll free number as well as mobile number to facilitate any medical emergency requirement. _ To avail of the CLS facility all you need to do is to contact the TPA at any of their offices which are convenient to you and submit the hospitalization intimation form / preauthorization form. _ In case of an emergency the member need to produce the photo identification card in NWH to get admission and within 48 hours of hospitalization you will have to contact the TPA to obtain CLS authorization. If CLS is authorized then your hospitalization expenses will directly be settled by the TPA with NWH to the extent it is reimbursable and the balance of the hospitalization expenses would be settled by you at the time of discharge. No Claim Bonus
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_ If none of the Member claims during the previous policy year, the sum assured under the plan will be increased by an amount equivalent to 5% of the basic sum assured in the subsequent policy year subject to a maximum increase of 25% of the basic sum assured over the duration of the policy including renewals, where the basic sum assured means the sum assured chosen as on policy commencement date. _ However if a claim is made by any of the Member(s) after this provision has come into force, and then the sum assured under the policy will be reduced back to the sum assured chosen as on policy commencement date in the subsequent policy year. Choices available to You Health Critical Illness rider _ This cover provides a lump sum benefit equal to a chosen sum assured on diagnosis of the specified Critical Illnesses irrespective of the status of reimbursement of medical expenses. _ Only the Primary Member and his/her spouse shall be covered. (Please refer to the Health Critical Illness rider brochure for more details.) Inclusion of family members _ On any policy anniversary, you have the option to include Your spouse, parents or children under the family policy. _ The inclusion of new members in the policy will be subject to underwriting of the new members and the waiting period for new members will apply afresh from the policy anniversary they join the policy. _ On inclusion of new member(s), the revised premium shall be applicable. Eligibility
Minimum Maximum Entry Age Primary Member and Spouse of 18 years Policy Primary Member critical illness rider is opted for 71 for a renewed policy Parents 71 for a renewed policy Children 3 months
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Sum Assured 1, 00,000 10, 00,000 Maximum Maturity Age at which 74 years for Primary Member, risk cover expires Spouse of Primary member and parents 65 years if health critical illness rider is opted for 21 years for children Policy Term 3 years Mode Yearly, Half-Yearly, Quarterly and Monthly Monthly is permitted only by salary deduction and ECS only.
RESEARCH METHODOLOGY
The approach to the research is considered in this chapter, from the theoretical underpinning to the collection & 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 & analyzing which is used in the research.
METHODS
PRIMARY DATA: Data collection for this research was done primarily through filling up of questionnaire. The sample for the research including different individuals of various age groups & having different professions & qualifications. Data was collected through the interview of individuals. The questionnaire was containing questions regarding the personal details of individuals & then some light question regarding their primary knowledge related to private insurance companies. Then there were questions related to their interest in being the insurance consultants of company.
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SECONDARY DATA: A large amount of secondary data has been collected from secondary sources. Some of sources are:
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 was prepared to explore the psychology of individuals about being associated with Bajaj Allianz as Insurance Consultants & 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 Aligarh were covered in order to fill the questionnaire. I interacted with 10 individuals in order to know about their interest of being Insurance Consultants of Bajaj Allianz. SAMPLE COMPOSITION: Youth Executives Serviceman Business person RESEARCH DESIGN: A research design provides the framework to be used as a guide in collecting & analyzing data. DESCRIPTIVE RESEARCH: Market survey is one of the best examples of descriptive research. This is a one shot research study at a given point of time, & 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 in the sample, because other elements can be substituted for them.
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CHAPTER 2
IRDA & LIFE INSURANCE
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Definitions:
a. b. In these regulations, unless the context otherwise requires,Act means the Insurance Act, 1948 Approved Institution means an institution engaged in education and/or training particularly in the area of insurance sales, services and marketing, approved and notified by the authority Authority means the Insurance Regulatory and Development Authority established under the provisions of section 3 of the Insurance Regulatory and Development Authority Act, 1999 Composite Insurance Agent means an insurance agent who holds a license to act as an insurance agent for a life insurer and a general insurer Corporate Agent means a person other than an individual as specified in clause(i) Designated person means an officer normally in charge of marketing operations, as specified by an insurer, and authorized by the authority to issue or renew licenses under these regulations Examination Body means an institution, which conducts, pre-recruitment tests for insurance agents and which is duly recognized by the Authority License means a certificate of license to act as an insurance agent issued under these regulations Person means (i) An individual (ii) A firm (iii) A Company formed under Companies Act 1956 Practical training includes orientation, particularly in the area of insurance sales, service and marketing, through training modules as approved by the authority Proposal form means an application for purchase of insurance product which shall be the basis of insurance contract Prospect means a potential purchaser of an insurance product
c.
d. e. f.
g. h. i.
j. k. l.
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m. Recognized board or institution means such board or institution as may be recognized by any State Government or the Central Government. All words and expressions used herein and not defined but defined in the Insurance Act, 1938, or in the Insurance Regulatory and Development Authority Act, 1999, shall have the meanings respectively assigned to them in those acts.
Practical Training
The applicant shall have completed from an approved institution, at least, one hundred hours practical training in life or general insurance business, as the case may be, which may be spread over three to four weeks, where such applicant is seeking license for the first time to act as an insurance agent. Provided that the applicant shall have completed from an approved institution, at least one hundred and fifty hours practical training in life and general insurance business which may be spread over six to eight weeks, where such applicant is seeking license for the first time to recognize as a composite insurance agent.
Examination:
The applicant shall have passed the pre-recruitment examination in life or general insurance business, or both as the case may be, conducted by the Insurance Institute of India, Mumbai or any other examination body.
Fees payable:
The fees payable to the Authority for issue or renewal of license to act as an insurance agent or a composite insurance agent shall be rupees two hundred and fifty.
Code of Conduct:
Every person holding a license, shall adhere to the code of conduct specified Below: 1. Every insurance agent shall a) identify himself and the insurance company of whom he is an insurance agent b) disclose his license to the prospect on demand c) disseminate the requisite information in respect of insurance products offered for sale by the insurer and take into account the needs of the prospect while recommending a specific insurance plan d) disclose the scales of commission in respect of the insurance product offered for sale, if asked by the prospect e) indicate the premium to be charged by the insurer for insurance product offered for sale f) explain the prospect the nature of information required in the proposal form by the insurer g) bring to notice of the insurer any adverse habits or income inconsistency of the prospect
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h) inform promptly the prospect about the acceptance or rejection of the proposal by the insurer i) obtain the requisite documents at the time of filling the proposal form by the insurer j) render necessary assistance to the policyholders or claimants or beneficiaries in complying with the requirements for settlement of claims k) advise every policyholder to effect nomination and assignment 2. No insurance agent shall a) solicit or procure insurance business without holding a valid license b) induce the prospect to omit any material information in the proposal form c) induce the prospect to submit wrong information in the proposal form or documents submitted to the insurer d) behave in a discourteous manner with the prospect e) interfere with any proposal introduced by any other insurance agent f) offer different rates, advantages, terms and conditions other than those offered by his insurer g) demand or receive a share of proceeds from the beneficiary under an insurance contract h) force a policyholder to terminate the existing policy and to effect a new proposal from him within three years from the date of such termination; i) have, in case of a corporate agent, a portfolio of insurance business under which the premium is in the excess of fifty percent of total premium procured j) apply for fresh license to act as an insurance agent, if his license was earlier cancelled by the designated person k) become or remain the Director of an insurance company 3. Every insurance agent shall, with a view to conserve the insurance business already procured through him, make every attempt to ensure remittance of the premiums by the policyholders within the stipulated time, by giving time to the policyholder orally or in writing;
Cancellation of license:
The designated person may cancel a license of an insurance agent if the insurance agent suffers, at any time during the currency of the license, from any of the disqualifications mentioned in sub-section (4) of section 42 of the Act, and recover from him the license and the identity card issued earlier
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 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
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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 a Bajaj Allianz Manager, you are fully committed to building a high performing, growing agency. This being true, it follows those five concerns must be constant in your annual planning.
The SEARCH for talent The EVALUTION of potential advisors The ATTRACTION of advisors The RETENTION of advisors The PRODUCTIVITY of advisors
Any manager who attains satisfying results in these five areas will enjoy: Satisfying sales results 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
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PRODUCTIVITY
RETENTION
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LIFE INSURANCE
MEANING OF LIFE INSURANCE
There are three parties in a life insurance transaction: the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person. Another important person involved in a life insurance policy is the Beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. Life insurance may be divided into two basic classes term and permanent. Term life insurance provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Permanent life insurance is life insurance that remains in force until the policy matures, unless the owner fails to pay the premium when it is due. Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, mortality and expense charges will not reduce the cash value shown in the policy. Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account. If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy. If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. Canceling these policies after only a few years can more than double your Life insurance costs.
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Protection: - You need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. It is a thoughtful business concept designed to protect the economic value of a human life for the benefit of those financially dependent on him. Thats a good reason. Supposing you suffer an injury that keeps you from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected. Retirement: - Life insurance makes sure that you have regular income after you retire and also helps you maintain your standard of living. It can ensure that your postretirement years are spent in peace and comfort. Savings and Investments: - Insurance is a means to Save and Invest. Your periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy can come in really handy at the time of your childs education or marriage! Besides, it can be used as supplemental retirement income. Tax Benefits: - Life insurance is one of the best tax saving options today. Your tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned.
derived from the Rig Veda. The term suggests that a form of" community insurance" was prevalent around 1000 BC and practiced by the Aryans And similar to ancient Rome, burial societies were formed in the Buddhist period to help families build houses, and to protect widows and children.
Modern Insurance
Illegal almost everywhere else in Europe, life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688. The type of insurance we see today owes its roots to 17th century England. Lloyd's of London, or as they were known then, Lloyd's Coffee House, was the location where merchants, ship owners and underwriters met to discuss and transact business deals. While serving as a means of risk-avoidance, life insurance also appealed strongly to the gambling instincts of England's burgeoning middle class. Gambling was so rampant, in fact, that when newspapers published names of prominent people who were seriously ill, bets were placed at Lloyds on their anticipated dates of death. Reacting against such practices, 79 merchant underwriters broke away in 1769 and two years later formed a New Lloyds Coffee House that became known as the real Lloyds. Making wagers on people's deaths ceased in 1774 when parliament forbade the practice.
KEY FEATURES OF LIFE INSURANCE 1. Nomination: - When one makes a nomination, as the policyholder, one continues to
be the owner of the policy and the nominee does not have any right under the policy as long as he/she is alive. The nominee has only the right to receive the policy money in case of your death within the term of the policy. Assignment: - If your intention is that your policy monies should go only to a particular person, you need to assign the policy in favor of that person. Death Benefit: - The primary feature of a life insurance policy is the death benefit it provides. Permanent policies provide a death benefit that is guaranteed for the life of the insured, provided the premiums have been paid and the policy has not been surrendered. Cash Value: - The cash value of a permanent life insurance policy is accumulated throughout the term of the policy. It equals the amount a policy owner would receive, after any applicable surrender charges, if the policy were surrendered before the insured's death. Dividends: - Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company's divisible surplus. Paid-Up Additions: - Dividends paid to a policy owner of a participating policy can be used in numerous ways, one of which is toward the purchase of additional coverage, called paid-up additions Policy Loans: - Some life insurance policies allow a policy owner to apply for a loan against the value of their policy. Either a fixed or variable rate of interest is charged. This feature allows the policy owner an easily accessible loan in times of need or opportunity.
2. 3. 4.
5. 6. 7.
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PROHIBITION OF REBATE: SECTION 41 OF THE INSURANCE ACT, 1938 No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. Any person making default in complying with the provisions of this section shall be punishable with a fine which may extend to five hundred rupees. LIFE INSURANCE IS INSURANCE AS WELL AS INVESTMENT It is the special characteristic of life insurance that it not only provides security but is also a form of investment. The insured not only wants to secure his family from the risk of his death, but also wants to invest in the long term insurance plan. Both these elements are possible in life insurance because the insurance company promises to pay a fixed amount on the death of the insured, or on his attaining a certain age. Element of Protection: Life insurance is the best way of securing against financial risks. The member of the family insures his life to provide affixed amount security to his family in case of death and his family been secured against any financial strain. Financial problems not only arise on untimely death of the earning member, but also when the earning member becomes old and his energy to work reduces and so does his source of income also reduce. At this stage, he wants to retire and lead a peaceful life. And if he has no source of income at this time he shall have to depend on others, which is a very pitiable stage in old age. That is why; a rational man always saves for his old age, so that he doesnt have to depend on others for maintaining himself. In such plans, insurance holds the prime position due to the following reasons1. He makes savings in the form of life insurance. To pay a regular premium he has to save necessarily. Though premium takes a form of compulsory expense yet for depositing regular premiums he has to develop a habit of saving. 2. The saving also remains secure in life insurance. The savings kept in a bank account can be withdrawn anytime for expenses, but the amount paid as premium can be received from the insurance company only on attaining a certain age. 3. Life insurance is also a kind of indirect saving. The life insurance policy cannot be forfeited by Income Tax department, even after non-payment of income tax. In this way, the element of economic security is present entirely in a life insurance policy. It is both, an element of protection and a helping hand in the old age.
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The four basic types of permanent insurance are whole life, universal life, limited pay and endowment.
discontinue premiums if the cash value allows it. And universal life has a more flexible death benefit because the owner can select one of two death benefit options, Option A and Option B. Option A pays the face amount at death as it's designed to have the cash value equal the death benefit at maturity (usually at age 95 or 100). With each premium payment, the policy owner is reducing the cost of insurance until the cash value reaches the face amount upon maturity. Option B pays the face amount plus the cash value, as it's designed to increase the net death benefit as cash values accumulate. Option B offers the benefit of an increasing death benefit every year that the policy stays in force. The drawback to option B is that because the cash value is accumulated "on top of" the death benefit, the cost of insurance never decreases as premium payments are made. Thus, as the insured gets older, the policy owner is faced with an ever increasing cost of insurance (it costs more money to provide the same initial face amount of insurance as the insured gets older).
LIMITED-PAY
Another type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65. Endowments are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age. The age this commences is known as the endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. In the United States, the Technical Correct Limited-pay Another type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65. ENDOWMENTS Endowments are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age. The age this commences is known as the endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. In the United States, the Technical Corrections Act of 1988 tightened the rules on tax shelters (creating modified endowments). These follow tax rules as annuities and IRAs do. Endowment Insurance is paid out whether the insured lives or dies, after a specific period (e.g. 15 years) or a specific age (e.g. 65).
ACCIDENTAL DEATH
Accidental death is a limited life insurance that is designed to cover the insured when they pass away due to an accident. Accidents include anything from an injury, but do not typically cover
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any deaths resulting from health problems or suicide. Because they only cover accidents, these policies are much less expensive than other life insurances. It is also very commonly offered as "accidental death and dismemberment insurance", also known as an AD&D policy. In an AD&D policy, benefits are available not only for accidental death, but also for loss of limbs or bodily functions such as sight and hearing, etc. Accidental death and AD&D policies very rarely pay a benefit; either the cause of death is not covered, or the coverage is not maintained after the accident until death occurs. To be aware of what coverage they have, an insured should always review their policy for what it covers and what it excludes. Often, it does not cover an insured that puts himself at risk in activities such as: parachuting, flying an airplane, professional sports, or involvement in a war (military or not). Also, some insurers will exclude death and injury caused by proximate causes due to (but not limited to) racing on wheels and mountaineering. Accidental death benefits can also be added to a standard life insurance policy as a rider. If this rider is purchased, the policy will generally pay double the face amount if the insured dies due to an accident. This used to be commonly referred to as double indemnity coverage. In some cases, some companies may even offer a triple indemnity cover.
CHAPTER 3
INTRODUCTION OF THE ORGANISATION
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INTRODUCTION
Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz SE, one of the world's largest insurance companies, and Bajaj Finserv. Allianz SE is a leading insurance corporation globally and one of the largest asset managers in the world, that manage assets worth over a Trillion (over INR. 55, 00,000 Crores). With over 119 years of financial experience, Allianz SE is present in over 70 countries around the world. Bajaj Allianz is into both life insurance and general insurance. Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants. Bajaj Allianz Shareholder Capital Base stands at Rs. 500 crore with Bajaj Auto Limited and Allianz SE of Germany holding 74% and 26% stake respectively. It is the largest private player in the Insurance Industry in India with a market share of around 34% amongst the private companies and second to LIC. In June 2008, Bajaj Allianz entered into partnership with Thomas Cook India to provide travel finance. Bajaj Allianz Life Insurance ensures excellent insurance and investment solutions by offering customized products, supported by the best technology.
BAJAJ GROUP
Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world. A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous with quality & customer focus. With over 15,000 employees, the company is a Rs. 4000 crore auto giant, is the largest 2/3-wheeler manufacturer in India and the 4th largest in the world. AAA rated by Crisil, Bajaj Auto has been in operation for over 55 years. It has joined hands with Allianz to provide the Indian consumers with a distinct option in terms of life insurance products. A STRONG INDIAN BRAND- HAMARA BAJAJ One of the largest 2 & 3 wheeler manufacturer in the world 21 million+ vehicles on the roads across the globe Managing funds of over Rs 4000 cr. Bajaj Auto finance one of the largest auto finance cos. in India Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03 It has joined hands with Allianz to provide the Indian consumers with a distinct option in terms of life insurance products. As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to offer Financial strength and stability to support the Insurance Business. A strong brand-equity.
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As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to offer : Financial strength and stability to support the Insurance Business. A strong brand-equity. A good market reputation as a world class organization. An extensive distribution network. Adequate experience of running a large organization. A 10 million strong base of retail customers using Bajaj products. Advanced Information Technology in extensive use. Experience in the financial services industry through Bajaj Auto Finance Ltd.
ALLIANZ GROUP
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. At the top of the international group is the holding company, Allianz SE, with its head office in Munich. Allianz SE 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 insurers with operations in over 70 countries. Further, the Group provides Risk Management and Loss Prevention Services. Allianz has insured most of the world's largest infrastructure projects (including Hongkong Airport and Channel Tunnel between UK and France), further Allianz insures the majority of the fortune 500 companies, besides being a large industrial insurer, Allianz has a substantial portfolio in the commercial and personal lines sector, using a wide variety of innovative distribution channels. ALLIANZ SE- A GLOBAL FINANCIAL POWERHOUSE Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 cr. 3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. - AUM of Rs.51, 96,959 cr. 12th largest corporation in the world 49.8 % of global business from Life Insurance Established in 1890, 110 yrs of Insurance expertise
STANDARD CHARTERED BANK Contact Number: 022 2492 8888 E-mail Address: customer.care@in.standardchartered.com
SYNDICATE BANK Contact Number: 020 4026 742 E-mail Address: insurancediv@syndicatebank.net Website: www.syndicatebank.com
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PLACEMENT SALES AND SERVICES LTD. Contact Number: 0487-2388666, 2385922 Tele Fax 2388666 E-mail Address: placementss@rediffmail.com Address: Regency Centre, Kalavary Road, West Fort, Thrissur 4 Kerala, India
TEAM LIFE CARE CO. (INDIA) LTD. Contact Number: 0427 - 2410707; 2420707 Tele Fax 2421245 Address: 5/118, Yercaud Main Road, Chinnakollapatti, SALEM - 636008.
ERNESTINE CONSULTANTS PVT LTD. Contact Number: 080- 4034 1999 Tele Fax- 080 - 4034 1920 Address: 1011, Ist Floor 3rd Cross, 13th Main HAL 2nd Stage, Indira Nagar Bangalore-560038
COSMOS CO-OP BANK LTD. Contact Number: 020 2488051 E-mail Address: info@cosmosbank.in Website: www.cosmosbank.com
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CHAPTER 4
ANALYSIS & INTERPRETATION
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DATA ANALYSIS
According to the data collected through survey with the help of questionnaire, the data analysis of questionnaire data is represented through pie charts table as:
SAMPLE SIZE
10
TOTAL = 10
PIE CHART:
AGE GROUP
21< 21-35 0% 30% 35-55 0% >55
70%
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INTERPRETATIONAfter analyzing the above data we can conclude that the people above the age of 21 are interested in the investment activities, the behind this is that the people above the age of 21 are surrounded by various kinds of the responsibilities thats why they take investment activities very seriously.
10
TOTAL = 10
PIE CHART:
QUALIFICATION
XII GRADUATION OR ABOVE 0% PROFESSIONAL DEGREE
40%
60%
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INTERPRETATION- From the analytical point of view after analyzing the above data we
can conclude that the people whose educational background is good that is they are well aware of the importance of the investment, this is the segment which we have to target for the recruitment of the insurance consultant.
TOTAL = 10
PIE CHART:
MARRITAL STATUS
SINGLE MARRIED
50%
50%
INTERPRETATION- After analyzing the above data we can conclude that married person
were mainly involved in the investment activities, because they have heavy responsibilities on their shoulders thats why married= 50% were interested in the activities related to the insurance.
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10
TOTAL = 10
PIE CHART:
OCCUPATION
STUDENT SERVICEMEN 0% 30% BUSINESS HOUSE WIFE
40%
30%
INTERPRETATION- In our survey we have included almost every sector of the society
from student (30%), servicemen (30%), Businessmen (40%).
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10
TOTAL = 10
PIE CHART:
INVESTMENT CHOICE
FIXED DEPOSIT POST OFFICE REAL STATE MUTUAL FUND INSURANCE OTHERS
11%
21%
37% 5% 10%
16%
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10
TOTAL = 10
PIE CHART:
INVESTMENT OPTION
SAFETY HIGH RETURNS EASY ACCESS TAX FREE RISK COVER
16% 11%
24%
22% 27%
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PIE CHART:
MONTHLY INCOME
0-5,000 5,000-10,000 10,000-15,000 0% 14% 14% 15,000-20,000 20,000 & Above
29% 43%
INTERPRETATION- In our survey we have included almost every level Person of the
monthly income from 5,000 20,000 & above.
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10
TOTAL = 10
PIE CHART:
INVESTMENT PRIORITIES
CHILDERN'S EDUCATION OWN RETIREMENT CHIDERN'S MARRIAGE OTHERS PURCHASE OF HOUSE
8% 31% 31%
15% 15%
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QUES: Have you known about the BAJAJ ALLIANZ LIFE INSURANCE COMPANY? ANS: The response of individuals are as: YES- 7 NO - 3
PIE CHART:
30%
70%
INTERPRETATION- In our survey we have concluded that almost 70% people know
about the company Bajaj Allianz Life Insurance Co. Ltd.
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QUES: Do you have own vehicle? ANS: The response of individuals are as: -
YES- 8
NO- 2
PIE CHART:
VEHICLE
YES NO
20%
80%
INTERPRETATION- In our survey we have concluded that almost 80% people have
their own vehicle (Motorbike, Car).
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QUES: Would you like to work in market/field and want to interact with people? ANS: The response of individuals are: Yes- 4 No- 6
PIE CHART:
MARKET INTRACTION
YES NO
40%
60%
INTERPRETATION- In our survey we have concluded that almost 60% people want to
work in market/field to intract with people.
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QUES: Do you want that a sales manager should approach you for agency? ANS: The response of individuals are: Yes- 4 No-6
PIE CHART:
AGENCY INTEREST
YES NO
40%
60%
INTERPRETATION- In our survey we have concluded that almost 60% people want
that a sales manager should approach them for agency.
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CHAPTER 5
FINDINGS
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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. There were many respondents who were not interested in attending seminar conducted by Bajaj Allianz among Indian Market.
The percentage of people without health insurance rose to 16.7 percent in 2009, a 1.3 percentage point increase in the uninsured over 2008 when 15.4 percent were uninsured.
The percentage of people with Medicaid coverage increased from 14.1 percent in 2008 to 15.7 percent in 2009.
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CHAPTER - 6
CONCLUSIONS
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CONCLUSION
The Bajaj Allianz insurance company is entering into booming here. To increase the market share in insurance time-to-time research projects are undertaken and this prefects was endeavor in that direction. To conclude their can't be two ways about Bajaj Allianz life Insurance, commanding a very good brand image people mostly does not go by Bajaj people still think that Bajaj is partly owned by government. And hence would be more secure to invest here. Growing at a breakneck pace with a strong pan Indian presence Bajaj Allianz has emerged as a strong player in India. Characterized by global presence with a local focus driven by customer orientation to establish high earnings potential and financial strength.
An auto insurance policy typically covers you and your spouse, relatives who live in your home and other licensed drivers to whom you give permission to drive your car. Homeowners insurance typically covers the dwelling (the structure), personal property and contents, and some forms of personal liability. The policy may cover direct and consequential loss resulting from damage to the property itself, loss or damage to personal property, and liability for unintentional acts arising out of the non-business, nonautomobile activities of the insured and members of that insured's household. Umbrella insurance helps you protect your assets if you are sued.If you are worried that the liability insurance coverage you have through your auto or property policies is still not enough, you can consider adding an umbrella policy. The insurance contract is a legal document that spells out the coverage, features, conditions and limitations of an insurance policy. Property and casualty insurance is insurance that protects against property losses to your business, home, or car and/or against legal liability that may result from injury or damage to the property of others. This type of insurance can protect a person or a business with an interest in the insured physical property against losses.
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An auto insurance policy typically covers you and your spouse, relatives who live in your home and other licensed drivers to whom you give permission to drive your car. A point of service plan is a hybrid plan that combines aspects of an HMO, PPO and indemnity plan. This type of plan is more flexible in that it allows you to decide at the time you need services to elect to use the POS plan's physician to arrange in-network care (HMO feature), or to go outside the network or hospital and pay a higher portion of the cost.. The reason to buy long term care insurance is to protect your assets in case you need to pay for assisted living, home care or a nursing home stay. Life insurance provides you with the opportunity to protect yourself and your family from personal risk exposures like repayment of debts after death, providing for a surviving spouse and children, fulfilling other economic goals (such as putting your kids through college), leaving a charitable legacy, paying for funeral expenses, etc. Universal life insurance, also known as flexible premium or adjustable life, is a variation of whole life insurance. Like whole life, it is also a permanent policy providing cash value benefits based on current interest rates.
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CHAPTER 7
SUGGESTIONS OR RECOMMANDATIONS
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SUGGESTIONS/RECOMMENDATIONS
Throughout the project work I have tried to my extent to learn more and more so that I enable myself to deliver the best services from my part. I always focused my services to full satisfaction whether it would for employer or for customer. So during this practical learning process whatever I have realized to improve the division of the company is as follows: There should be focus on advertisement 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 increase their distribution channel by more & more tie ups with the locals bank also, because they can help them to penetrate in Indian Market easily. There should be more incentives to ICs as they have to do more efforts than others. Improvement in services through feedbacks from customers is recommended.
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BIBLIOGRAPHY
BOOKS:
Seth Kravitz, Mastering Insurance Marketing: How to Make Your Agency Forward in the New Media Age. S. P. Sharma, Organisation of Indian Insurance. Li-May Chew, Business Strategy: Country Report Spotlighting the Indian Insurance Sector. D C Srivastava, Indian Insurance Industry. Wouter van Ginneken, Social Security for All Indians
INTERNET LINKS:
www.bajajallianz.com www.irdaindia.org Bajaj Allianz Insurance Co. LTD
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APPENDIX
NAME: ADDRESS: AGE GROUP: CONTACT No.: GENDER: EDUCATION: MARITAL STATUS: OCCUPATION:
Q.3 How many members do you have in your family? Q.4 How many members are dependent on you? Q.5 Do you have children?
YES NO If yes then how many
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Q.9 How much amount will you be requiring for the same? PRIOORITIES
Children Education Children Marriage Purchase of House Own Retirement Others
AMOUNT
Q.10 Have you arrangements for achieving your above mentioned goals?
YES NO
Q.11 Do you think you will be able to achieve your goals with present saving scenario?
YES NO
Q.14 Given a chance, would you be interested in earning some extra money by working part time?
YES NO
If yes, how much extra income would you like to earn every month? If yes, how much time can you devote every week to earn above mentioned extra income?
4 to 6 Hrs 7 to 12 Hrs 12 to 16 Hrs More than 16 Hrs
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NO
NO
Q.18 Do you know about the Bajaj Allianz Life Insurance companies?
YES NO
Q.22 Would you like to work in market/field and want to interact with people?
YES NO
Q.23 Do you want that a sales manager should approach you for agency?
YES NO