A

A

PROJECT REPORT

ON

A STUDY ON PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE PREPARED FOR AND PRESENTED TO

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED

UNDER THE GUIDANCE

COMPANY GUIDE NAME UNIVERSITY GUIDE NAME

Mr. ABHISHEK RANJAN DUBEY Mr. GAURAV BISARIA

B.D.M. LECTURER

SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF DEGREE OF

MASTERS OF BUSINESS ADMINSTRATION

BY

SAMARTHA SHUKLA

M.B.A

FINANCE

0800122094

INTEGRAL UNIVERSITY

DASAULI, KURSI ROAD, LUCKNOW- 226026 (U.P.) INDIA

PHONE: +91 522 2890812, 3096117, 6451039

2008-2009

BAJAJ ALLIANZ LIFE INSURANCE

COMPANY LIMITED

7TH FLOOR, SHALIMAR TOWERS,

VIBHUTI KHAND GOMTINAGAR

LUCKNOW-226010

CERTIFICATE BY THE COMPANY

THIS IS TO CERTIFY THAT SAMARTHA SHUKLA , STUDENT OF M.B.A. FINANCE , INTEGRAL UNIVERSITY DID HIS SUMMER TRAINING IN BAJAJ ALLIANZ LIFE INSURANCY COMPANY LIMITED FROM 15TH JUNE TO 13TH AUGUST 2009.

Mr. ABHISHEK RANJAN DUBEY Mr. RAJESH KHANNA B. D.M.

CERTIFICATE BY THE UNIVERSITY

This is to certify that Samartha Shukla, student of M.B.A. Finance has done his summer training in Bajaj Allianz Life Insurance Company Ltd. and prepared a project report on the topic Comparative Analysis of Bajaj Allianz Life Insurance Company with other Companies.

M.S. KHAN

Head of the Department

(Samartha Shukla)

ACKNOWLEDGEMENT

First of all I would like to thank the management at Bajaj Life Insurance Company for giving me the opportunity to do my summer training in their esteemed organization. I am highly obliged to Mr. Abhishek Ranjan Dubey (Business Development Manager) and Mr. Rajesh Khanna for granting me an opportunity to undertake training in Gomtinagar Branch.

I express my thanks to all sales managers under whose able guidance and direction, I was able to give shape to my training. Their constant review and excellent suggestions throughout the project are highly commendable.

My sincere thanks to all executives who helped me gain knowledge about the actual working and processes involved in various departments.

I am grateful to my teacher Mr. Gaurav Bisaria who has helped in making this project. His valuable guidance has helped in preparing this project.

(Samartha Shukla)CONTENTS

S.NO. TOPICS Page No.

1). TITLE PAGE 1

2) CERTIFICATE BY THE COMPANY 2

3) CERTIFICATE BY THE UNIVERSITY 3

4) ACKNOWLEDGEMENT 4

5) EXECUTIVE SUMMARY 6

6) RESEARCH OBJECTIVES 10

7) MEANING OF INSURANCE 11

8) MEANING OF LIFE INSURANCE 16

9) HISTORY OF LIFE INSURANCE 18

10) BENEFITS OF LIFE INSURANCE 22

11) LIFE INSURANCE IS INSURANCE AS WELL AS 23

INVESTMENT

12) KINDS OF INSURANCE POLICIES 25

13) NATIONALISATION OF LIFE INSURANCE IN INDIA 30

14) INTRODUCTION ABOUT THE COMPANY 31

15) PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE 40

16) RESEARCH METHODOLOGY 97

17) RESULT 102

18) SUGGESTIONS AND RECOMMENDATIONS 103

19) LIMITATIONS 104

20) BIBLIOGRAPHY 105

EXECUTIVE SUMMARY

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz SE, one of the world's largest insurance companies, and Bajaj Finserv. Allianz SE is a leading insurance corporation globally and one of the largest asset managers in the world, that manage assets worth over a Trillion. With over 115 years of financial experience, Allianz SE is present in over 70 countries around the world. Bajaj Allianz is into both life insurance and general insurance. Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants.

In June 2008, Bajaj Allianz entered into partnership with Thomas Cook India to provide travel finance. Bajaj Allianz Life Insurance ensures excellent insurance and investment solutions by offering customized products, supported by the best technology. A comprehensive list of policies and products offered by Bajaj Allianz Life Insurance Co. Ltd. is as follows:

UNIT LINKED

Regular Premium

New UnitGain Super

UnitGain Plus Gold

New UnitGain Plus

New UnitGain

YoungCare

YoungCare Plus

New FamilyGain-R

Single Premium

New UnitGain Premier SP

New UnitGain Plus SP

PENSION

Annuity

Pension Guarantee

Retirement

Future Income Generator

Swarna Vishranti

New UnitGain Easy Pension Plus RP

New UnitGain Easy Pension Plus SP

Future Secure

TRADITIONAL

Endowment

InvestGain

SaveCare Economy SP

Life Time Care

Super Saver

Money Back

CashGain

TERM PLANS

Protector

Term Care

New Risk Care

WOMEN INSURANCE

Miss Confident Plans

HEALTH

Care First

Health Care

Family CareFirst

CHILDREN PLAN

ChildGain

JUST LAUNCHED

Family Assure

Fortune Plus

CenturyPlus II

UnitGain Protection Plus

Invest Plus

Group Seva Plan

In my training Period, I have focused mainly on two products of Bajaj Allianz LifeInsurance company: New Family Gain and New Unit Gain.

NEW FAMILY GAIN

In this product, the minimum premium which is to be paid by the customer is Rs.5000.

The maximum premium for this product is Rs.10000.The policy term is 10 years.

The Sum Assured is Rs. 50000 or the Fund Value which ever is higher.

It is a unit linked plan and the Lock-in period is 3 years. After 3 years the customer can withdraw 75% or whole amount but surrender charges will be taken. After 5 years no surrender charges will be charged.

In this product customer has the facility of getting a premium holiday for 2 years after 3 years have been completed and if he withdraws after 5 years he will get Rs. 30000.

The customer will get benefit of Section 80C and Section 10(10D) of Income tax. Under Section 80 C the customer will get Tax rebate and under Section 10(10D) he will get tax free maturity gains.

NEW UNIT GAIN

In this product, the minimum premium which is to be paid by the customer is Rs.10000.

The maximum premium for this product has no limit. The policy term is 10 years.

The Sum Assured is 5 times the premium amount or the Fund Value which ever is higher.

It is a unit linked plan and the Lock-in period is 3 years. After 3 years the customer can withdraw 75% or whole amount but surrender charges will be taken. After 5 years there are no surrender charges

In this product customer has the facility of getting a premium holiday for 2 years after 3 years have been completed and if he withdraws after 5 years he will get Rs. 60000.

The customer will get benefit of Section 80C and Section 10(10D) of Income tax. Under Section 80 C the customer will get Tax rebate and under Section 10(10D) he will get tax free maturity gains.

Human Life Value Concept

This concept tells about value of a human life, particularly when he/she is a earning member of the family. Suppose a person is 30 years old and has a fixed monthly income of Rs. 10000 and if retires at the age of 60 then he will earn about 36 lakh in those 30 years. Unfortunately if he/she dies at the age of 32 his family members will have a financial loss, so to minimize the loss occurred due to the death of the earning member, one should have insurance of about 36 lakh.

Fixed Deposit compared with Insurance policy

In fixed deposit money is locked in for 5 or more years and in Insurance Policy money is locked in only for 3 years.

In fixed deposit, at maturity TDS (Tax deduction at source) is deducted but in Insurance policy, maturity amount is tax free under Section 10(10D).

In fixed deposit the rate of return is about 8-10% but in Insurance policy rate of return is 15% or more.

In Fixed deposit, no life insurance is given but in Insurance policy life insurance is given.

In the training period, I have tried to inform people about the products of Bajaj Allianz Life Insurance. I have met different people like:

Salaried people

Businessmen

Chartered Accountants

Lawyers

Doctors

Engineers

Housewives

RESEARCH OBJECTIVES1) To know the consumer responses about Bajaj Allianz life insurance policy.

2) To know about the products of Bajaj Allianz Life Insurance.

3) To know about the objections of people for not taking the Insurance policy.

4) To know the need for Life Insurance.5) To know the benefits of Life Insurance.6) To know the market share of Bajaj Allianz Life Insurance in the Market.

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.

IMPORTANCE OF INSURANCE

Insurance constitutes one of the major segments of the financial market.

Insurance services play predominant role in the process of financial intermediary. Today insurance industry is one of the most growing sectors in India. There is lot of potential in the Indian Insurance Industry.

There are many issues, which require study. The scope of the study of Insurance industry of India would be very great as there are ongoing developments in the industry after the opening of the sector.

The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. In near future Government may allow 49% FDI in Insurance. This would lead to more capital inflow by foreign partners.

Another major issue is the effects on LIC after the entry of private players in the market. Though market share of LIC has been affected, it has improved in terms of efficiency.

There are number of other hot topics like penetration of Health Insurance, Rural marketing of insurance, new distribution channels, new product ranges, insurance brokers regulation, incentive scheme of development officers of LIC etc. So it offers lot of scope for studying the insurance industry.

Right now the insurance industry has great opportunities in countries like India or China which have huge population. Also the penetration of insurance in India is very low in both life and non-life segment so there is lot potential to be tapped.

Before starting the discussion on insurance industry and related issues, we have to start with the basics of insurance. So first we understand what is Insurance? How the word insurance is different from the wordAssurance? etc.

DIFFERENCE BETWEEN INSURANCE AND ASSURANCE

Assurance is older in history and it was used to describe all types of Insurance. From 1826, the term assurance came to be used only for the risks covered by life insurance and the term insurance was exclusively used to denote the risks covered by marine, fire, etc.

The word assurance indicated certainty. In life insurance, there is an assurance from the insurance company to make payment under the policy either on the maturity or at earlier death. On the other hand the word insurance was used to denote indemnity type of insurance where the insurance company was liable to pay only in case of the loss damage the property.

The insured event was bound to happen sooner or later under assurance but the event insured against may or may not happen under insurance.

The principle of indemnity applies to insurance contracts (non-life) only. The scope of the word, insurance is wider.

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance.

(1) Principle of utmost good faith

It means maximum truth. Both the parties should disclose

all material information regarding the subject matter of Insurance.

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made, he shall be fully indemnified only to the extent of loss. In other words, the insured is not entitled to make a profit on his loss.

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims in so far as the insureds right of recovery from an alternative source is involved. The insurer before the settlement of the claim may exercise the right. In other words, the insurer is entitled to recover from a negligent third party any loss payments made to the insured. The purposes of subrogation are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss. The concept of Third Party Claims is based on the same principle.

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation.

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured. Insurable interest is that interest which considerably alters the position of the assured in the event of loss taking place and if the event does not take placed, he remains in the same old position.

HISTORY OF INSURANCE

The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders used to bear risk of the carvan by giving loans, which were later repaid with interest when the goods arrived safely.

The concept of insurance as we know today took shape in 1688 at a place called Lloyds Coffee House in London where risk bearers used to meet to transact business. This coffee house became so popular that Lloyds became the one of the first modern insurance companies by the end of the eighteenth century.

Marine insurance companies came into existence by the end of the

eighteenth century. These companies were empowered to write fire and life insurance as well as marine. The Great Fire of London in 1966 caused huge loss of property and life. With a view to providing fire insurance facilities, Dr. Nicholas Barbon set up in 1967 the first fire insurance company known

as the Fire Office.

The early history of insurance in India can be traced back to the Vedas. The Sanskrit term Yogakshema (meaning well being), the name of Life Insurance Corporation of Indias corporate headquarters, is found in the Rig Veda. The Aryans practiced some form of community insurance around 1000 BC.

Life insurance in its modern form came to India from England in 1818. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. The insurance companies, which came into existence between 1818 and 1869, treated Indian lives as subnormal and charged an extra premium of 15 to 20 percent. The first Indian insurance company, the Bombay Mutual Life Assurance Society, came into existence in 1870 to cover Indian lives at normal rates.

The Insurance Act, 1938, the first comprehensive legislation governing both life and non-life branches of insurance were enacted to provide strict state control over insurance business. This amended insurance Act looked into investments, expenditure and management of these companies.

By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75 provident societies carrying on life insurance business in India. Insurance business flourished and so did scams, irregularities and dubious investment practices by scores of companies. As a result the government decided to nationalize the life assurance business in India. The Life Insurance Corporation of India (LIC) was set up in 1956. The nationalization of life

Insurance was followed by general insurance in 1972.

TIME LINE IN INSURANCE HISTORY (MAJOR LANDMARKS)

1818: British introduced the life insurance to India with the

establishment of the Oriental Life Insurance Company

in Calcutta.

1850: Non life insurance started with Triton Insurance

Company.

1870: Bombay Mutual Life Assurance Society is the first India

owned life insurer.

1912: The Indian Life Assurance Company Act enacted to

regulate the life insurance business.

1938: The Insurance Act was enacted.

1956: Nationalization took place. Government took over 245

Indian and foreign insurers and provident societies.

1972: Non-life business nationalized, General Insurance

Corporation (GIC) came into being.

1993: Malhotra committee was constituted under the

chairmanship of former RBI chief R. N. Malhotra to

draw a blue print for insurance sector reforms.

1994: Malhotra 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 to sell insurance plans as TPAs enter the

scene, insurers start setting non-life claims in the

cashless mode.

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.

NEED FOR LIFE INSURANCE

You need Life Insurance because typically the need for income continues for those who are financially dependent on you, but there is no guarantee of your ability to earn consistently and for the rest of your life. Life insurance can help you safeguard the financial needs of your family.

This need has become even more important due to steady disintegration of the prevalent joint family system, and emergence of nuclear families. The need to protect your family's ever growing needs is why you need Life Insurance.

Why Do I Need Life Insurance?Thats a common question. Why would you need Insurance? Simply put, Life brings with it many surprises, some pleasant and some not so and a Life Insurance Plan ensures that you are better prepared to face uncertainties. How? In a number of ways: ProtectionYou need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. It is a thoughtful business concept designed to protect the economic value of a human life for the benefit of those financially dependent on him. Thats a good reason. Supposing you suffer an injury that keeps you from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected. RetirementLife insurance makes sure that you have regular income after you retire and also helps you maintain your standard of living. It can ensure that your post-retirement years are spent in peace and comfort. Savings and InvestmentsInsurance is a means to Save and Invest. Your periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy can come in really handy at the time of your childs education or marriage! Besides, it can be used as supplemental retirement income! Tax BenefitsLife insurance is one of the best tax saving options today. Your tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned!

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions

throughout history. Protecting against risk is what insurance is all about. Over 5000 years ago, in China, insurance was seen as a preventative measure against piracy on the sea. Piracy, in fact, was so prevalent, that as a way of spreading the risk, a number of ships would carry a portion of another ship's cargo so that if one ship was captured, the entire shipment would not be lost.In another part of the world, nearly 4,500 years ago, in the ancient land of

Babylonia, traders used to bear risk of the caravan trade by giving loans that

had to be later repaid with interest when the goods arrived safely. In 2100

BC, the Code of Hammurabi granted legal status to the practice. It

formalized concepts of bottomry referring to vessel bottoms and

respondentia referring to cargo. These provided the underpinning for

marine insurance contracts. Such contracts contained three elements: a loan

on the vessel, cargo, or freight; an interest rate; and a surcharge to cover the

possibility of loss. In effect, ship owners were the insured and lenders were

the underwriters.

Life insurance came about a little later in ancient Rome, where burial clubs

were formed to cover the funeral expenses of its members, as well as help

survivors monetarily. With Rome's fall, around 450 A.D., most of the

concepts of insurance were abandoned, but aspects of it did continue through

the Middle Ages, particularly with merchant and artisan guilds. These

provided forms of member insurance covering risks like fire, flood, theft,

disability, death, and even imprisonment.

During the feudal period, early forms of insurance ebbed with the decline

of travel and long-distance trade. But during the 14th to 16th centuries,

transportation, commerce, and insurance would again reemerge.

Insurance in India can be traced back to the Vedas. For instance,

Yogakshema, the name of Life Insurance Corporation of India's corporate

headquarters is derived from the Rig Veda. The term suggests that a form of

"community insurance" was prevalent around 1000 BC and practiced by the

Aryans.

And similar to ancient Rome, burial societies were formed in the Buddhist

period to help families build houses, and to protect widows and children.

Modern Insurance

Illegal almost everywhere else in Europe, life insurance in England was

vigorously promoted in the three decades following the Glorious Revolution

of 1688. The type of insurance we see today owes its roots to 17th century

England. Lloyd's of London, or as they were known then, Lloyd's Coffee

House, was the location where merchants, ship owners and underwriters met

to discuss and transact business deals.

While serving as a means of risk-avoidance, life insurance also appealed

strongly to the gambling instincts of England's burgeoning middle class.

Gambling was so rampant, in fact, that when newspapers published names of

prominent people who were seriously ill, bets were placed at Lloyds on

their anticipated dates of death. Reacting against such practices, 79 merchant

underwriters broke away in 1769 and two years later formed a New Lloyds

Coffee House that became known as the real Lloyds. Making wagers on

people's deaths ceased in 1774 when parliament forbade the practice.

Insurance moves to America

The U.S. insurance industry was built on the British model. The year 1735

saw the birth of the first insurance company in the American colonies in

Charleston, SC. The Presbyterian Synod of Philadelphia in 1759, sponsored

the first life insurance corporation in America for the benefit of ministers

and their dependents. And the first life insurance policy for the general

public in the United States was issued, in Philadelphia, on May 22, 1761.

But it wasn't until 80 years later (after 1840), that life insurance really took

off in a big way. The key to its success was reducing the opposition from

religious groups.

In 1835, the infamous New York fire drew people's attention to the need to

provide for sudden and large losses. Two years later, Massachusetts became

the first state to require companies by law to maintain such reserves. The

great Chicago fire of 1871 further emphasized how fires can cause huge

losses in densely populated modern cities. The practice of reinsurance,

wherein the risks are spread among several companies, was devised

specifically for such situations.

With the creation of the automobile, public liability insurance, which first

made its appearance in the 1880s, gained importance and acceptance?

More advancement was made to insurance during the process of

industrialization. In 1897, the British government passed the Workmen's

Compensation Act, which made it mandatory for a company to insure its

employees against industrial accidents.

During the 19th century, many societies were founded to insure the life and

health of their members, while fraternal orders provided low-cost, members only insurance. Even today, such fraternal orders continue to provide

Insurance coverage to members, as do most labour organizations. Many

employers sponsor group insurance policies for their employees, providing

not just life insurance, but sickness and accident benefits and old-age

pensions. Employees contribute a certain percentage of the premium for

these policies.

Final Thoughts

Even though the American insurance industry was greatly influenced by

Britain, the US market developed somewhat differently from that of the

United Kingdom. Contributing to that was America's size; land diversity

and the overwhelming desire to be independent. As America moved from a

colonial outpost to an independent force, from a farming country to an

Industrial nation, the insurance business developed from a small number of

companies to a large industry.

Insurance became more sophisticated, offering new types of coverage and

diversified services for an increasingly complex country.

KEY FEATURES OF LIFE INSURANCE

1) Nomination: -

When one makes a nomination, as the policyholder, one continues to be the

owner of the policy and the nominee does not have any right under the

policy as long as he/she is alive. The nominee has only the right to receive the policy money in case of your death within the term of the policy.

2) Assignment: -

If your intention is that your policy monies should go only to a particular

person, you need to assign the policy in favor of that person.

3) Death Benefit: -

The primary feature of a life insurance policy is the death benefit it provides.

Permanent policies provide a death benefit that is guaranteed for the life of

the insured, provided the premiums have been paid and the policy has not

been surrendered.

4) Cash Value: -

The cash value of a permanent life insurance policy is accumulated

throughout the term of the policy. It equals the amount a policy owner would

receive, after any applicable surrender charges, if the policy were

surrendered before the insured's death.

5) Dividends: -

Many life insurance companies issue life insurance policies that entitle the

policy owner to share in the company's divisible surplus.

6) Paid-Up Additions: -

Dividends paid to a policy owner of a participating policy can be used in

numerous ways, one of which is toward the purchase of additional coverage,

called paid-up additions.

7) Policy Loans: -

Some life insurance policies allow a policy owner to apply for a loan against

the value of their policy. Either a fixed or variable rate of interest is charged.

This feature allows the policy owner an easily accessible loan in times of

need or opportunity.

8) Conversion from Term to Permanent: -

When in need of temporary protection, individuals often purchase term life

insurance. If one owns a term policy, sometimes a provision is available that

will allow her to convert her policy to a permanent one without providing

additional proof of insurability.

9) Disability Waiver of Premium: -

Waiver of Premium is an option or benefit that can be attached to a life

insurance policy at an additional cost. It guarantees that coverage will stay in

force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover: -

Life Insurance contracts allow an individual to have a risk cover against any

unfortunate event of the future.

2) Tax Deduction: -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction

on premiums up to one lakh rupees. Life Insurance policies thus decrease the

total taxable income of an individual.

3) Loans: -

An individual can easily access loans from different financial institutions by

pledging his insurance policies.

4) Retirement Planning: -

What had provided protection against the financial consequences of

premature death may now be used to help them enjoy their retirement years.

Moreover the cash value can be used as an additional income in the old age.

5) Educational Needs: -

Similar to retirement planning the cash values that flow from ones life

Insurance schemes can be utilized for educational needs of the insurer or his

children.

ROLE OF LIFE INSURANCE IN THE

GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public

sector units. It has a Consistent profit and dividend paying record

accompanied by a steady growth in its financial resources. Through

investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nation's development. The

industry is recognized as one of the largest financial Institutions in the

country. The ventures initiated by the industry in the areas of Mutual

Fund, Housing Finance have done exceedingly well in recent years. To protect the

country's foreign exchange reserves, the reinsurance arrangement are so

organized that maximum retention is made possible within the country while

at the same time protecting interests of the policy holders.

SECTION 45 OF THE INSURANCE ACT, 1938

No policy of life insurance effected after the coming into force of this Act shall, after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such a statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at that time of making it that the statement was false or that it suppressed facts which it was material to disclose.

PROHIBITION OF REBATE:

SECTION 41 OF THE INSURANCE ACT, 1938

No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.

Any person making default in complying with the provisions of this section shall be punishable with a fine which may extend to five hundred rupees.LIFE INSURANCE IS INSURANCE AS WELL AS INVESTMENTIt is the special characteristic of life insurance that it not only provides security but is also a form of investment. The insured not only wants to secure his family from the risk of his death, but also wants to invest in the long term insurance plan. Both these elements are possible in life insurance because the insurance company promises to pay a fixed amount on the death of the insured, or on his attaining a certain age.Element of Protection: Life insurance is the best way of securing against financial risks. The member of the family insures his life to provide affixed amount security to his family in case of death and his family been secured against any financial strain. Financial problems not only arise on untimely death of the earning member, but also when the earning member becomes old and his energy to work reduces and so does his source of income also reduce. At this stage, he wants to retire and lead a peaceful life. And if he has no source of income at this time he shall have to depend on others, which is a very pitiable stage in old age. That is why; a rational man always saves for his old age, so that he doesnt have to depend on others for maintaining himself. In such plans, insurance holds the prime position due to the following reasons-1) He makes savings in the form of life insurance. To pay a regular premium he has to save necessarily. Though premium takes a form of compulsory expense yet for depositing regular premiums he has to develop a habit of saving.

2) The saving also remains secure in life insurance. The savings kept in a bank account can be withdrawn anytime for expenses, but the amount paid as premium can be received from the insurance company only on attaining a certain age.3) Life insurance is also a kind of indirect saving. The life insurance policy cannot be forfeited by Income Tax department, even after non-payment of income tax.

In this way, the element of economic security is present entirely in a life insurance policy. It is both, an element of protection and a helping hand in the old age.

Element of Investment: Life insurance also provides the benefit of investment. The amount of premium consists, apart from the cost of insurance, an amount of investment. This investment constantly increases. And this amount of investment is called Life Fund and represents the element of investment. The Life insurance companies invest the amount of life fund to earn profits, and give the benefits of such profits to the policy holder also. Firstly, while determining the amount of net premium, the amount of interest is deducted from the cost of insurance that constitutes interest from the investment of premium fund. Then the insurance companies distribute most of the part of their profits (up to 90%) to the policyholders as bonus. The investment in Life insurance policy is superior to other kinds of investments because here there is no risk of loosing money and there is no need to invest the whole amount at one time.

Life insurance can be called as the best kind of risk- free security, on whose security, lending money is also possible. By nationalization of Life insurance in our country, the insurance policy is guaranteed by the government by which it has become more secure.KINDS OF LIFE INSURANCE POLICIES

Temporary Term InsuranceTerm assurance: provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else.

There are three key factors to be considered in term insurance:

1. Face amount (protection or death benefit),

2. Premium to be paid (cost to the insured), and

3. Length of coverage (term).

Various insurance companies sell term insurance with many different combinations of these three parameters. The face amount can remain constant or decline. The term can be for one or more years. The premium can remain level or increase. A common type of term is called annual renewable term. It is a one year policy but the insurance company guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the insured and with a premium set for the insured's age at that time. Another common type of term insurance is mortgage insurance, which is usually a level premium, declining face value policy. The face amount is intended to equal the amount of the mortgage on the policy owners residence so the mortgage will be paid if the insured dies.

A policy holder insures his life for a specified term. If he dies before that specified term is up, his estate or named beneficiary receives a payout. If he does not die before the term is up, he receives nothing. In the past these policies would almost always exclude suicide. However, after a number of court judgments against the industry, payouts do occur on death by suicide (presumably except for in the unlikely case that it can be shown that the suicide was just to benefit from the policy). Generally, if an insured person commits suicide within the first two policy years, the insurer will return the premiums paid. However, a death benefit will usually be paid if the suicide occurs after the two year period.

Permanent Life Insurance

Permanent life insurance is life insurance that remains in force (in-line) until the policy matures (pays out), unless the owner fails to pay the premium when due (the policy expires OR policies lapse). The policy cannot be canceled by the insurer for any reason except fraud in the application, and that cancellation must occur within a period of time defined by law (usually two years). Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time. This means that a policy with a million dollar face value can be relatively expensive to a 70 year old. The owner can access the money in the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and receiving the surrender value.

The four basic types of permanent insurance are whole life, universal life, limited pay and endowment.

Whole life coverageWhole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits; guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy. The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Also, the cash values are generally kept by the insurance company at the time of death, the death benefit only to the beneficiaries. Riders are available that can allow one to increase the death benefit by paying additional premium. The death benefit can also be increased through the use of policy dividends. Dividends cannot be guaranteed and may be higher or lower than historical rates over time. Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equal if policies are kept in force until average life expectancy.

Cash value can be accessed at any time through policy "loans". Since these loans decrease the death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only. If the dividend option: Paid up additions is elected, dividend cash values will purchase additional death benefit which will increase the death benefit of the policy to the named beneficiary.

Universal life coverage

A universal life insurance policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. Mortality charges and administrative costs are then charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any.

With all life insurance, there are basically two functions that make it work. There's a mortality function and a cash function. The mortality function would be the classical notion of pooling risk where the premiums paid by everybody else would cover the death benefit for the one or two who will die for a given period of time. The cash function inherent in all life insurance says that if a person is to reach age 95 to 100 (the age varies depending on state and company), then the policy matures and endows the face value of the policy.

Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of them live to age 95, then the mortality function alone will not be able to cover the cash function. So in order to cover the cash function, a minimum rate of investment return on the premiums will be required in the event that a policy matures.

Universal life insurance addresses the perceived disadvantages of whole life. Premiums are flexible. Depending on how interest is credited, the internal rate of return can be higher because it moves with prevailing interest rates (interest-sensitive) or the financial markets (Equity Indexed Universal Life and Variable Universal Life). Mortality costs and administrative charges are known. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. And universal life has a more flexible death benefit because the owner can select one of two death benefit options, Option A and Option B.

Option A pays the face amount at death as it's designed to have the cash value equal the death benefit at maturity (usually at age 95 or 100). With each premium payment, the policy owner is reducing the cost of insurance until the cash value reaches the face amount upon maturity.

Option B pays the face amount plus the cash value, as it's designed to increase the net death benefit as cash values accumulate. Option B offers the benefit of an increasing death benefit every year that the policy stays in force. The drawback to option B is that because the cash value is accumulated "on top of" the death benefit, the cost of insurance never decreases as premium payments are made. Thus, as the insured gets older, the policy owner is faced with an ever increasing cost of insurance (it costs more money to provide the same initial face amount of insurance as the insured gets older)

Limited-payAnother type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65. EndowmentsEndowments are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age. The age this commences is known as the endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier.

In the United States, the Technical Correct Limited-payAnother type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65.

EndowmentsEndowments are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age. The age this commences is known as the endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier.

In the United States, the Technical Corrections Act of 1988 tightened the rules on tax shelters (creating modified endowments). These follow tax rules as annuities and IRAs do.

Endowment Insurance is paid out whether the insured lives or dies, after a specific period (e.g. 15 years) or a specific age (e.g. 65).

Accidental DeathAccidental death is a limited life insurance that is designed to cover the insured when they pass away due to an accident. Accidents include anything from an injury, but do not typically cover any deaths resulting from health problems or suicide. Because they only cover accidents, these policies are much less expensive than other life insurances.

It is also very commonly offered as "accidental death and dismemberment insurance", also known as an AD&D policy. In an AD&D policy, benefits are available not only for accidental death, but also for loss of limbs or bodily functions such as sight and hearing, etc.

Accidental death and AD&D policies very rarely pay a benefit; either the cause of death is not covered, or the coverage is not maintained after the accident until death occurs. To be aware of what coverage they have, an insured should always review their policy for what it covers and what it excludes. Often, it does not cover an insured that puts himself at risk in activities such as: parachuting, flying an airplane, professional sports, or involvement in a war (military or not). Also, some insurers will exclude death and injury caused by proximate causes due to (but not limited to) racing on wheels and mountaineering.

Accidental death benefits can also be added to a standard life insurance policy as a rider. If this rider is purchased, the policy will generally pay double the face amount if the insured dies due to an accident. This used to be commonly referred to as double indemnity coverage. In some cases, some companies may even offer a triple indemnity cover.

NATIONALISATION OF LIFE INSURANCE IN INDIA

On 19th January, 1956, the Indian Government issued an emergency ordinance, whose objective was to nationalize life insurance. As a result of this ordinance, the business of life insurance which was in the hands of private sector organizations at that time now came in the hands of the Government of India. At the time of nationalization, in our country 154 Indian Insurance companies, 16 foreign insurance companies and 75 private insurance societies were working in the Insurance business.

In June 1956, an Act by the name of Life Insurance Corporation Act, 1956 was passed in the Parliament, which came into force from 1st July 1956 in India. As a result of this Act, a Government organization was established which is known as Life Insurance Corporation of India. The Life Insurance Corporation started the insurance business from 1st September, 1956.REASONS OR OBJECTIVES OF NATIONALISATION

1) To arrange funds for Five Year Plans of the Government of India.2) To widely propagate Life Insurance even in villages and small towns.

3) To eliminate unhealthy competition among Private Insurance Companies.

4) To end mismanagement, spread in Private Insurance Companies.

5) To increase the per person insured amount.

6) To establish a socialist society, to give maximum benefits to the society.

7) To reduce the wasteful administrative expenses of the Private Insurance Companies.

8) To secure the interests of small insured persons.9) To create a sense of saving among people.10) To utilize the Life Insurance Fund properly.

11) To end the delays in payments on maturity to insured by Private Insurance Companies.

12) To decentralize economic and financial power from the hands of Private Insurance Companies.

INTRODUCTION ABOUT THE COMPANY

Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance Company and Bajaj Finserv. (recently demerged from Bajaj Auto.)

Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has over 115 years of financial experience and is present in over 70 countries around the world.

At Bajaj Allianz Life Insurance, customer delight is our guiding principle. Our business philosophy is to ensure excellent insurance and investment solutions by offering customized products, supported by the best technology.It started in 2001.

Financial services arm's profit rises to Rs 42 crore

BS Reporter / MumbaiJuly 16, 2009, 0:40 IST

Bajaj Finserv, the financial services arm of the Bajaj Group, posted a net profit of Rs 42 crore for the quarter ended June 30, 2009. It had posted a loss of Rs 36 crore in the corresponding period last year.

The groups life insurance arm, Bajaj Allianz Life Insurance Company, was the biggest contributor to the firms income. Bajaj Allianz has posted a profit of Rs 68 crore in the June quarter. In the year-ago quarter, it had posted a loss of Rs 3 crore.

Gross written premium for the quarter rose 40 per cent to Rs 2,001 crore as against Rs 1,847 crore in the corresponding period last year. Renewal premium, too, increased to Rs 1,423 crore as against Rs 1,018 crore in the quarter ended June 30, 2008. However, new business premium fell 42.28 per cent to Rs 577 crore.

ALLIANZ GROUP

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

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. At the top of the international group is the holding company, Allianz AG, with its head office in Munich.

Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of

Property and Casualty Insurance,

Life and Health Insurance,

Asset Management and Banking.

ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE

Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 crore.

3rd largest Assets under Management (AUM) & largest amongst Insurance cos. - AUM of Rs.51, 96,959 crore.

12th largest corporation in the world

49.8 % of global business from Life Insurance

Established in 1890, 110 yrs of Insurance expertise

70 countries, 173,750 employees worldwide

BAJAJ GROUP

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.

A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous with quality & customer focus.

A STRONG INDIAN BRAND- HAMARA BAJAJ

One of the largest 2 & 3 wheeler manufacturer in the world

21 million+ vehicles on the roads across the globe

Managing funds of over Rs 4000 cr.

Bajaj Auto finance one of the largest auto finance cos. in India

Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03

It has joined hands with Allianz to provide the Indian consumers with a distinct option in terms of life insurance products.

As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to offer -

Financial strength and stability to support the Insurance Business.

A strong brand-equity.

A good market reputation as a world class organization.

An extensive distribution network.

Adequate experience of running a large organization.

Accelerated Growth

Fiscal YearNo. of policies soldNew Business in FY

2001-2002(6 months)

21,37

Rs. 7 cr.

2002-2003

1,15,965

Rs. 63.3 cr.

2003-2004

1,86,443

Rs. 180 cr.

2004-2005

2,88,189

Rs. 857 cr.

2005-2006

7,81,685

Rs. 2,717 cr.

2006-2007

20,79,217

Rs. 4,302 cr.

2007-2008

37,44,742

Rs. 6,674 cr.

Mission of the company

India has 102 crore population but only 16 crore people are insured till now. Still 86 crore

People are yet to be insured. Also in broader perspective, company wants to make every person get benefited through investing in Bajaj Allianz Life Insurance. The Company is focusing on improving employee productivity, policy persistency, operational processes and service levels. Vision of the Company

1) To be the first choice insurer for customers.

2) To be the preferred employer for staff in Insurance industry.

3) To be the number one insurer for creating shareholder value4) To aspire to be a world class organization.5) To encourage organizational transparency.6) To value integrity.

HISTORY OF THE COMPANYBajaj Allianz Life Insurance Co. Ltd.is a joint venture between two leading conglomerates- Allianz AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Characterized by global presence with a local focus and driven by customer orientation to establish high earnings potential and financial strength, Bajaj Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance business in India. Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world. A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous with quality & customer focus. With over 15,000 employees, the company is a Rs. 4000 crore auto giant, is the largest 2/3-wheeler manufacturer in India and the 4th largest in the world. AAA rated by Crisil, Bajaj Auto has been in operation for over 55 years. It has joined hands with Allianz to provide the Indian consumers with a distinct option in terms of life insurance products.Details of the Company

Managing Director and CEO Mr. Kamesh Goyal

Sashi Krishnan, CIO, Bajaj Allianz Life Insurance

C.F.O. Mr. Rajesh Viswanathan

Head, Marketing- Mr. Sanjay Jain

BOARD OF DIRECTORS:

Mr. Rahul Bajaj (Chairman)

Dr. Werner Zedelius

Mr. Sanjay Asher

Mr. Niraj Bajaj

Mr. Sanjiv Bajaj

Mr. Heinz Dollberg

Mr. Ranjit Gupta

Mr. S. H. Khan

Mr. Suraj Mehta

Mr. Dietmar Raich

Mr. Manu Tandon

Mr. Kamesh Goyal (Alternate Director to Dr. Werner Zedelius)Address

Branch Address: Bajaj Allianz Life Insurance Co. Ltd.

Shalimar Towers, TC-57N Vibhuti Khand

Gomtinagar, Lucknow-226010.

Telephone: (+91 522) 6450751

Head Office Address:

Bajaj Allianz Life Insurance Company Limited

GE Plaza, Airport Road, Yerawada, Pune-411006 Maharashtra

Telephone: (+91 20) 66026777

CHANNEL PARTNERS OF BAJAJ ALLIANZ

Standard Chartered Bank

Contact Number : 022 2492 8888

E-mail Address: customer.care@in.standardchartered.com

Syndicate Bank

Contact Number : 020 4026 742

E-mail Address: insurancediv@syndicatebank.net www.syndicatebank

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

www.teamlifecare.in

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 Fax- 080 - 4034 1920

Address: 1011, Ist Floor 3rd Cross, 13th Main HAL 2nd Stage, Indira Nagar Bangalore-560038

www.cosmosbank.com

COSMOS Co-op BANK Ltd.

Contact Number : 020 2488051

E-mail Address : info@cosmosbank.in

Organizational chart

Branch Manager

V

V

Business Development Manager (B.D.M.)

V

V

Assistant Business Development Manager (A.B.D.M.)

V

V

Insurance Sales Officer (I.S.O.)

PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE

1) BAJAJ ALLIANZ NEW FAMILYGAINThe thumb rule for buying insurance is that your insurance needs are minimal in your early earning years, increases with added responsibilities (Marriage, children, loans etc.) and taper off by the time you retire. It is difficult to find a single insurance plan that can take care of all your changing requirements in life additional protection, more money to invest, sudden requirement of cash or a steady post-retirement income.

With Bajaj Allianz New Family Gain, you can invest in one life insurance plan that can take care of all your changing requirements. This plan has been designed to provide you with maximum flexibility, so that you do not have to worry about your changing needs.

The Bajaj Allianz New Family Gain comes with a host of features to allow you to have the best of all worlds - Protection and Investments. It enables every participant to create a solid financial protection and savings plan for himself and his family. In this way, as a participant in the Bajaj Allianz New Family Gain Plan, you can secure your well-being and accumulate savings towards financial independence and a comfortable retirement.

The Key Features of the New Family Gain Plan are:

It is a unit linked Endowment type plan with a minimum term of 10 years and maximum maturity age 70 years.

Guaranteed death benefit: Sum Assured Plus Fund Value of Units.

You have the option to choose a host of additional rider benefits: UL

Accidental Death Benefit, UL Accidental Permanent Total/Partial Disability Benefit.

It provides you with an easy, regular contribution mechanism to assist you in accumulating funds.

You can select an investment strategy to grow the funds contributed.

Choice of 7 investment funds today with flexible investment management: you can change funds at any time and also invest in the newer funds that would be introduced from time to time.

The premiums allocated are invested in fund/funds of your choice (depending on the allocation rate) and units are allocated depending on the price of units for the fund/funds. The value of your policy is the total value of units that you hold in the fund/funds. The insurance cover charges, policy administration charges and the additional rider benefit charges are deducted through monthly cancellation of units. The Fund Management Charge is priced in the unit value.

You can choose a Sum Assured (Level of Protection) that you want in the New Family Gain Plan.

Minimum Sum Assured = 5 times of Annualized Premium

Maximum Sum Assured = Policy Term times of Annualized Premium

Death Benefit:

The death benefit will be

1) On death before attaining the age of 7 year: The death benefit will be the NAV of the units in the policyholder's account (Fund Value) as on date of

receipt of intimation of death at the office. The policy terminates on the death of the life assured.

2) On death on or after attaining the age of 7 years: The death benefit will be the sum assured plus the NAV of the units in the policyholder's account (Fund value) as on date of receipt of intimation of death at the office.

Maturity Benefit

On maturity, the NAV of units in the fund will be paid out and the policy will terminate.

Additional Rider Benefits available with

New Family Gain

You have the option to add the following additional rider benefits, providing total protection against uncertainties.

UL Accidental Death Benefit

UL Accidental Permanent Total & Partial Disability Benefit

(Please refer to the brochure on additional rider benefits for more details.)

Assured protection even if you miss payment of your premiums

Bajaj Allianz New Family Gain provides you with the unique feature of continued protection even if you forget to pay your premiums. After payment of 3 full years' premiums, when premiums due are not paid the policy will be kept in-force, with full insurance benefits by way of deducting units for the Cost of Insurance and all other charges, provided the Fund Value less surrender charge, if any does not falls to an amount equivalent to one annual premium under the policy.

Bajaj Allianz New Family Gain offers you a choice of 7 funds. You can choose to invest fully in any one fund or allocate your premiums into the various Funds in a proportion that suits your investment needs.

TAX BENEFITS

Premiums paid and benefits received will be eligible for tax benefits as per applicable tax laws.

As per the current tax laws:

Premiums payable are eligible for tax benefits as per Section 80C of the Income Tax Act.

Partial Withdrawals, Surrender Value, Death Benefit and Maturity Benefit are eligible for tax benefits as per Section 10(10D) of the Income Tax Act.

In case of change in any tax laws relevant to the policyholder or the fund performance, the same will be applied as per regulations prevailing at that point of time.RISK OF INVESTMENT UNDER UNIT LINKED PLANS

The Proposed/Life Assured is aware that the investment in the Units is subject to the following, amongst other risks and agrees that he is making the investment in the Units with full knowledge of the same.

Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors.

The premium paid in unit linked life insurance policies are subject to investment risks associated with capital markets and the Unit Price of the units may go up or down based on the performance of the fund and factors influencing the capital market and the insured/policyholder are responsible for his/her decisions.

Bajaj Allianz Life Insurance is only the name of the insurance company and Bajaj Allianz New Family Gain is only the name of the policy and does not in

any way indicates the quality of the policy, its future prospects or returns.

Please know the associated risks and the applicable charges from your policy document or by consulting the Company, your Insurance agent or your Insurance intermediary.

Pure Stock Fund, Equity Index Fund II, Bond Fund, Asset Allocation Fund, Accelerator Mid-Cap Fund, Equity Growth Fund and Liquid Fund are the names of the funds offered currently with Bajaj Allianz New Family Gain, and in any manner do not indicate the quality of the respective funds, their future prospects or returns.

The investments in the Units are subject to market and other risks and there can be no assurance that the objectives of any of the funds will be achieved.

Pure Stock Fund, Equity Index Fund II, Bond Fund, Asset Allocation Fund, Accelerator Mid-Cap Fund, Equity Growth Fund and Liquid Fund do not offer a guaranteed or assured return.

All benefits payable under the Policy are subject to the tax laws and other financial enactments, as they exist from time to time.

The past performance of other funds of the company is not necessarily indicative of the future performance of any of these funds.

Important details of the plan:

Minimum Age at Entry: 0 years(Risk commences at age 7)

Maximum Age at Entry: 60 years

Minimum Age at Maturity: 18 years

Maximum Age at Maturity: 70 years

Minimum Term: 10 years. For minor lives: 18 minus age at entry of minor life subject to minimum of 10 years.

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

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

For your convenience, we have provided 3 premium payment modes that can be Yearly, Half-Yearly, and Quarterly. We also offer a Monthly premium payment mode with salary deduction schemes or ECS. The minimum premium is Rs. 5000 for the Yearly Mode, Rs. 2,500 for Half Yearly, Rs. 1,250 for Quarterly and Rs. 500 for the Monthly Mode. In addition, you also have the option to pay topups to increase your investments. The minimum top-up premium is Rs. 1,000.

If any due regular premium is not paid within the days of grace in the first three policy years, the policy shall lapse. The policyholder will get an opportunity to revive the policy within two years from the date of first unpaid premium, and if he does not revive during this period the contract shall be terminated and the surrender value will be the fund value as on date of lapse less surrender charge, if any. This would be paid on the expiry of the revival period or three policy years, whichever is later.

If policy is lapsed and death occurs during this period, the fund value as on date of lapse would be paid and the policy will terminate immediately.

If all the due premiums have been paid for at least first three consecutive years and subsequent premiums are unpaid, you will be given an opportunity to revive the policy within two years from the first unpaid premium. During this limited period for revival, the insurance covers under the policy shall continue levying all appropriate charges by cancellation of units at the prevailing unit price to meet the mortality charge and other expense charges until the Fund value in respect of Regular Premium less surrender charge, if any, falls to an amount equivalent to one annual premium (NAV) across all the funds.

At the end of two years i.e. period for revival, if the contract is not revived, you can opt to continue the insurance cover under the policy subject to deduction of all charges until the Fund value in respect of Regular Premium less surrender charge, if any, falls to an amount equivalent to one annual premium (NAV) across all the funds.

If you do not opt to continue with the insurance cover after the revival period, the contract shall be terminated by paying the fund value as on date of termination less surrender charge, if any.

When the Fund value in respect of Regular Premium less surrender charge, if any, falls to an amount equivalent to one annual premium you will be notified about this and the contract shall be terminated by paying the fund value as on date of termination less surrender charge, if any.

2) NEW UNIT GAINThis product is similar to New Family Gain but in this product the minimum premium that is to be paid is Rs. 10, 000 and there is no limit for maximum premium. The Sum assured is five times the premium amount.Both these products (New Family Gain and New Unit Gain) were started from 1st July 2006.

Key highlights of Bajaj Allianz New Unit Gain Your investment, apart from normal allocation receives Loyalty unitsEquivalent to 51% of the first years Annualized Premium over a period of 10 years.

Choice of 2 investment portfolio strategies to manage your investmentsBetter.

Your Policy continues to participate in the investment performance of the fund(s), even if you are not able to pay 3 full years premiums.

Maximum flexibility:

Option to increase the premium

Partial withdrawal anytime after 3 years from the commencement of the policy, provided 3 years regular premiums have been paid. Three free switches every year.

Option to pay unlimited top-up premiums anytime during the tenure of the policy, to further enhance your savings.

Three simple terms to choose from: 15, 20 and 25 years.

A host of additional rider benefits to provide you with additional protection.

Guaranteed Life Cover, with flexibility to choose insurance cover to suit your changing needs.

3) PENSION GUARANTEE

Your date of retirement is closing in. You want something that gives you an assured income long after youre retired. We at Bajaj Allianz Life Insurance are aware of this need, and have come up with a plan that lasts you for a lifetime. Invest your savings in the Bajaj Allianz Pension Guarantee, a plan that gives you a guaranteed income, till

your time comes.

The Bajaj Allianz Pension Guarantee Plan

With Bajaj Allianz Pension Guarantee, you can ensure a regular income after retirement.

The plan offers you a range of immediate annuities to choose from. The immediate annuities available are:

Bajaj Allianz Pension Guarantee- Life Annuity: Annuity for Life

Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 5 years and life thereafter

Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 10 years and life thereafter

Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 15 years and life thereafter

Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 20 years and life thereafter

Bajaj Allianz Pension Guarantee-Return of Capital: Annuity for life with Return of

Capital (Purchase Price)

How does Bajaj Allianz Pension Guarantee work?

All you have to do is pay a lump sum amount to Bajaj Allianz Life Insurance Company and the annuity payments will start after expiry of monthly/quarterly/half-yearly/ yearly interval corresponding to the payment mode selected by you. Under all the options, annuity is payable for life, so you do not have to worry about your income stopping at any stage. Under the Return of Capital option (option 6 above), the amount used to purchase the annuity is paid to the nominee on the death of the annuitant.Important details of the Bajaj Allianz Pension Guarantee Plan

Minimum Age at Entry 45

Maximum Age at Entry 80

Minimum Purchase Price Rs. 25,000

Minimum Annuity Installment Rs. 1,000

Annuity Frequency Mode

For your convenience we have provided 4 Annuity Frequency Modes that can be Yearly, Half yearly, Quarterly or Monthly. The annuity will be payable one month/quarter/half year/year after the date of purchase depending on the mode selected.

The Sample Annuity Rate per annum per Rs.1 lakh of purchase price is given below. The annuity rate varies between different purchase price bands.Tax Benefits

The policy will be eligible for tax benefits under Section 80C of the Income Tax Act as of now. 4) BAJAJ ALLIANZ PROTECTORDreams and Aspirations - we are constantly driven in our pursuit of these. House, Consumer Durables, visits to exotic locations are some of the dreams we live for. And the best way to fulfill them is through easy loans available at todays low interest rates. With small equated monthly installments, the price is not too heavy.

Yet, who can predict the unfortunate twists and turns in life? And in case of unfortunate death of the loanee, the burden of repayment falls on the family. Bajaj Allianz Protector is the perfect plan to protect your family from the repayment liability of outstanding loans. All this at a very nominal cost. Now, is there a better way to provide for your familys financial security?The Bajaj Allianz Protector Plan

The Bajaj Allianz Protector Plan is a mortgage term insurance plan that covers the outstanding principal amount of a loan. It is an economical way to protect the family from the burden of repayment of the loan in case of death of the loanee. The plan is designed to pay a sum insured that will be equal to the outstanding principal amount of the loan due.

The Bajaj Allianz Protector Plan offers you the convenience of choosing between two premium payment options

Regular Premium Payment - Premium payment limited to approximately 2/3rd of the loan tenure, while coverage continues for the full tenure of the loan.

Single Premium Payment - One time premium payment covering you for the full tenure of the loan.

Joint life availability

You have the option to cover the co-applicant of the loan under this plan. Under this option, both lives will be covered and the death benefit will be payable in case of death of either life. The policy terminates on death of either life.

Benefits PayableDeath 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 PlanEligibility Condition

Minimum Sum Assured Rs. 2, 00,000

Maximum Sum Assured No Limit

Minimum Age at Entry 20 Yrs

Maximum Age at Entry 55 Yrs

Maximum Age at Policy Expiry Date 65 Yrs

Minimum Term for Single Premium 2 Yrs

Minimum Term for Regular Premium 5 Yrs

Maximum Term (Regular and Single Premium) 30 Yrs

Premium Payment Mode

For your convenience we have provided 5 Premium Payment Modes that can be single premium, yearly, half-yearly, quarterly or monthly. The premium for frequencies other than yearly mode is the annual premium multiplied with the frequency factor (0.51 for the half yearly mode, 0.26 for the quarterly mode, and 0.09 for the monthly mode). Monthly mode is permitted only by salary deduction or direct bank debit. The minimum premiums are Rs. 2500 for the Single Premium, Rs. 1000 for the annual mode, Rs. 700 for the half-yearly mode, Rs. 450 for quarterly mode and Rs. 175 for monthly.

Tax Benefits

Tax benefits under Section 80C and Section 10(10)D available as per applicable tax laws. All payments due under this plan shall be governed by tax laws applicable at that point of time.

Surrender values/Paid up Values

There are no surrender values or paid-up values under this plan.

Loans

Loans are not available under this planChange of Occupation

On change of occupation, depending upon the nature of the new occupation, the premiums and benefits may be modified.

Days of Grace

In case of non-payment of premiums, a grace period of 30 days will be allowed for the yearly, half yearly and quarterly modes (15 days for the monthly mode). After that the policy will lapse.

Revival of the Policy

It is possible to revive a policy that has lapsed due to non-payment of premiums within 5 years from the date of lapse. The revival will be effected subject to underwriting. In case of joint life, revival would be subject to underwriting on both lives.

General Exclusion

In case the life assured (in case of joint life, either of the life assured) commits suicide within one year from the date of commencement / reinstatement of the policy, the benefits of the plan would not be payable, and the premiums would be refunded.5) TERM CARELife Insurance.....

At the back of our minds we are often nagged by certain fears, the fears of an uncertain future, the insecurity of not being able to provide adequately for our loved ones, the fear of not being able to save enough. Life Insurance is the only complete answer to these fears. It is life insurance that provides you with the security of a financial safety net and enables you to plan for unpredictable adversities. Happiness often sneaks in through a door you didn't know you left open. Let life insurance be that door for you.The 'Bajaj Allianz Term Care' Plan

The 'Bajaj Allianz Term Care' Plan is a term insurance plan. It is an economical way of providing for one's life cover and at the same time ensuring that the premiums paid are returned at maturity.What does the 'Bajaj Allianz Term Care' Plan offer you?This plan not only offers you life insurance cover at a low cost, but also provides for return of premiums on maturity. The premiums returned at maturity will be equal to the single premium or the sum total of equivalent annual premiums of the Economy Pack (excluding extra premiums charged, if any). In case of pre-mature death during the policy term, the full Sum Assured will be paid to the nominee.

The 'Bajaj Allianz Term Care' Plan offers you the convenience of choosing between two premium payment options. Regular Premium Payment - Premium payment throughout the selected term.

Single Premium Payment - One time premium payment for the selected term at commencement.

Apart from covering the risk of natural death, this plan also provides you the option to choose upto 5 additional benefits. You can select a specific combination of additional benefits best suited to your needs, available in 4 attractive packages to choose from.

i. Economy: This is the basic plan, which is available for both the regular and single premium payment options.

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

a. Accidental Death Benefit.

b. Accidental Permanent Total/Partial Disability Benefit.

c. Waiver of Premium Benefit (in case of accidental permanent total disability).

The Protect Pack is available with the regular premium payment option only.

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

a. Critical Illness Benefit.

b. Hospital Cash Benefit.

The Health Pack is available with the regular premium payment option only.iv. Total: This pack comes with the following 5 in-built additional benefits:

a. Accidental Death Benefit.

b. Accidental Permanent Total/Partial Disability Benefit.

c. Waiver of Premium Benefit (in case of accidental permanent total disability).

d. Critical Illness Benefit.

e. Hospital Cash Benefit.

The Total Pack is available with the regular premium payment option only.

What are the in-built benefits that the 'Bajaj Allianz Term Care' Plan offers you?

a. Accidental Death Benefit

Accidents are always sudden and sometimes fatal. You can't lessen the emotional shock, but you can certainly soften the financial one. Bajaj Allianz Accidental Death Benefit gives your loved ones something to start with after the permanent loss of your income by paying double the basic Sum Assured.

The total Accidental Death Benefit shall however be subject to a maximum of Rs. 10, 00,000/- under all policies taken with Bajaj Allianz together.b. Accidental Permanent Total/Partial Disability Benefit

Accidents are unpredictable and so are the consequences. This may lead to a disability - partial or total. The Bajaj Allianz Accidental Permanent Total/Partial Disability Benefit provides a financial cushion against such misfortunes.Type of Disability Benefits

Accidental Permanent Partial Disability 50 % of Sum Assured *

Accidental Permanent Total Disability 100 % of Sum Assured **

* Subject to a maximum of Rs. 5, 00,000/- under all policies with Bajaj Allianz taken together.

** Subject to a maximum of Rs. 10, 00,000/- under all policies with Bajaj Allianz taken together.

c. Waiver of Premium Benefit

An accident may lead to permanent total disability limiting your ability to earn.

The Bajaj Allianz Waiver of Premium Benefit is a helping hand when you need it most. It keeps your insurance cover alive by waiving off future premiums and enables you to live up to your commitments.

d. Critical Illness Benefit

Some illnesses are critical. They not only alter your life's pattern but also result in a financial drain. Bajaj Allianz Critical Illness Benefit softens the impact on your family by paying out the Critical Illness Benefit (equal to the Sum Assured) under the plan immediately, while other policy benefits continue (excluding Hospital Cash Benefit). We cover 11 Critical Illnesses.e. Hospital Cash Benefit

The worry of settling hospital bills (room charges) adds to the trauma of hospitalization. Bajaj Allianz Hospital Cash Benefit reduces this financial burden and helps you to recover with peace of mind.

Flexibility in Coverage*

At Bajaj Allianz, we believe in offering benefits and not just products. We realize that you are unique and your needs for insurance vary with time. We therefore offer you the flexibility of including the following benefit combination at each policy anniversary.

Combination 1: Accidental Death Benefit; Accidental Permanent Total/Partial Disability Benefit; Waiver of Premium Benefit.

This combination can be added, if not taken earlier, deleted and added subsequently at each policy anniversary.

We also offer the flexibility of excluding the following benefit combination:

Combination 2: Critical Illness Benefit; Hospital Cash Benefit.

This combination can be taken at inception only but can be excluded

subsequently at any policy anniversary. Once excluded, Combination 2 cannot be included in the policy subsequently.* Available with the regular premium payment option onlyOther important details of the 'Bajaj Allianz Term Care' Plan.

Eligibility Condition

Minimum Age at Entry 18 Years

Maximum Age at Entry 50 years

Maximum Age at Maturity 65 years

Minimum Term 5 years

Maximum Term 40 years

Minimum Sum Assured Rs. 1, 00,000/-

Maximum Sum Assured Rs. 10, 00,000/-

Minimum Premium (Rs.) 1500/- for Yearly,

Rs. 1500/- for Half Yearly.

The minimum premium for Single Premium option shall be Rs. 6000/-

Premium Payment Mode

For your convenience we have provided 3 Premium Payment Modes that can be single premium, yearly or half-yearly.6) BAJAJ ALLIANZ NEW RISK CARE PLANBajaj Allianz New Risk Care plan, a bouquet of happiness, security and pride for you & your family. Commitments towards the family are non-measurable and countless. Its our endeavor to keep up your commitments by sharing your burdens and reducing your liabilities. In case of any mishap or unfortunate event, the plan will always stand by you as a pillar of strength.

Bajaj Allianz New Risk Care helps you to secure your familys well being, and create a strong financial back up in case of any unforeseen eventualities. Allow us to take over your financial concerns and worries to rest on us.

Insure your Today with us to ensure your familys Smiles Tomorrow

The Key Features of Bajaj Allianz New Risk Care:

A non-participating traditional Term Assurance plan.

Higher insurance coverage at Low premium.

Regular/Single Premium payment options.

Enhanced Protection options available through Additional Rider Benefits.

Rebates on premium in-case of high sum assured (both on regular and