A STUDY ON ULIP PRODUCT
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Transcript of A STUDY ON ULIP PRODUCT
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Summer Training Report
On
A STUDY ON ULIP PRODUCT
At
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD.
AGRA
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE AWARD OF THE DEGREE
MASTER OF BUSINESS ADMINISTRATION
By
Saurav Kumar Sharma
Roll No 0625170045
(2006-2008)
GLA
Institute of Business Management,
MATHURA (U.P.)
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Affiliated To U.P. Technical University,
Lucknow
PREFACE
The importance of an academic course would gain advantage and
acceptance of the true form, only through practical experience. Hence
it is quite necessary to put the theories into talk. It is rigidly accepted
tha t the theory wid en s o nes think in g h or izon s v iz . Con cept s o f
marketing philosophies , but practice indicates the modern marketing
and used in variety of settings of products.
The s ummer t ra in in g p ro grammers a re d es ig ned to g iv e the
manager the future of the corporate happenings and work culture. These
real l i fe s i tuat ions are entirely different from the s t imulated exercise
enacted in an a rt if ic ia l env iron ment ins id e the s ummer t ra in in g
programmers and designed, so that the manager to tomorrow do not feel
i l l case when the t ime comes to shoulder responsibil it ies . Pract ical
exposure for the MBA students is very necessary because what they
s tudy in the c lass room is no t the rea l i ty . S i tuat ion in the market i s
unknown and very much unpredictable. So the pract ical experience is
very much necessary th is is made poss ible with the summer training
project in Bajaj Allianz Life Insurance Co. in marketing related to find
out the Potential Insurance Consultants.
All organizations involve into business with some objective and
one o f the object ives i s to endorse p roduct o r serv ice which they
p roduce. In my marketing p roject I t r ied to f ind out the potent ial
Insurance Consultants through questionnaire for the Bajaj Allianz Life
Insurance Co. The product for the insurance company is i ts policies
which company sale through i ts Insurance Consultants. So i ts quite
clear that there wil l be as many Insurance Consultants. There wil l be
increased sales.
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ACKNOWLEDGEMENT
I want to thank to those people who helped me in th is summer
t ra in in g res ea rch p ro ject . F ir st o f a ll I wou ld l ik e to exp ress my
p ro fo un d g ra ti tu de t o t he S al es M an ag er o f B aj aj A ll ia nz L if e
Insurance Co. Satna (M.P . ) Mr. Sandeep Sharma who gave me th is
opportunity to do this project. He always remained a wonderful guide
and supporter throughout this project.
I would l ike to thank to my ins t i tu te a lso where I go t a l l the
knowledge and skills required for this research project.
At the end I want to say thanks to al l persons involved in th is
project directly or indirectly.
RANDHIR SINGH
MBA- III sem.
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TABLE OF CONTENTS
1.Introduction
2.Scope & Importance
3. Company Profile4.About Ulip products Of Bajaj Allianz
5.Distribution Channel
6. Research Methodology
7. SWOT Matrix
8.Limitations
9. Findings
10. Recommendations
11. Conclusion
12. Questionnaire
13. Bibliography
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WHAT IS LIFE INSURANCE
First of all we should come to know that what Life Insurance is .
The different definitions describing life Insurance are as:-
Insurance in which the r i sk insured agains t i s the death o f a
particular person, the insured, upon whose death while the policy is in
force, the insurance company agrees to pay a stated sum or income to
the beneficiary. Life Insurance pays a specified sum to the
benef ic iar ies upon the death o f the insured . I t i s general ly used to
p rov ide cash to your family in the even t o f your death . There are
several types of life insurance whole life insurance provides a lifetime
of p rotect ion as long as you pay the p remiums to keep the po l icy
a ct iv e. T he y a ls o a cc ru e a c as h v al ue a nd t hu s o ff er a s av in gs
component. Term l ife insurance provides protect ion only during the
term of the policy and the policies are usually renewable at the end of
the term. Insurance on human l ives includ ing endowment benefi t s,
additional benefits in event of death or dismemberment by accident or
accidental means, additional benefits for disability, and annuities.
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SCOPE AND IMPORTANCE OF STUDY
This report its a complete data analysis of two areas of functioning of an
organisation which a joint venture between Bajaj Auto and Allianz. The company is
one of the Indias leading private life insurance companies and is ranked 2006 in
fortune 500 company. It is Bajaj Allianz Life insurance co. ltd.
Insurance is a social device where uncertain risks of individuals may be combined
in a group and thus made more certain small periodic contribution by the individuals
provide a fund out of which those who suffer losses may be reimbursed. In addition to
being a means to protect oneself, the Insurance Industry is an effective conduit for the
savings of people to be channeled towards economic growth. In India, the Insurance
Industry is more than 150 years old. Today, it is monopolized by two PSUs in their
respective fields of Life and General Insurance.
Insurance plays a very important role in the day-to-day activities of the
common man, business houses, industries, agriculturists and other service providers.
Insurance not only provides protection for individual and industry through risk
coverage; it also mobilizes funds for economic activity, and encourages savings. Thus
an insurance cover is considered an important tool for economic stability. The
insurance industry is a key sector in the economy of any country.
The liberalization of the financial sector was started in 1991 and carried forward by
successive governments. These reforms were carried out in a phased manner and
affected the entire financial sector.
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Till now, however, the insurance sector had been left out of this reform process. With
the passage of the IRDA bill in December, 1999, the way has been paved for the entry
of private players into this long neglected aspect of the Indian economy.
However, the opening up of this sector does not mean that its character will undergo a
sea change. The public sector behemoths will continue to enjoy a huge market share.
It is up to the new players to device innovative strategies to both grab business from
the existing companies as well as expand the size of the pie itself.
The main benefits of this new competitive environment will be to the consumer, who
till now, has had to put up with shoddy products and even shoddier service. The new
entrants will look for new channels of distribution for their products, and banks will
play a very important part as the likely interfaces between the insurance companies
and their prospective customers.
The report gives a brief background of the sector and proceeds to highlight the
performance of the Sales Manager. The benefits of a liberalized sector are
enumerated. The report also tried to identify the market potential and gives
information to how to convince people for insurance products and the strategies that
can be employed to exploit the same.
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LIFE INSURANCE INDUSTRY IN INDIA
Many may not be aware that the life insurance industry of India
is a s o ld as i t is in any other part of the world . The f irs t Indian Life
Insurance Company was the Oriental l i fe Insurance Company, which
was started in India in 1818 at Kolkata. A number of players (over 250
in life and about 100 in non-life) mainly with regional focus flourished
all across the country. However, the Government of India, concerned
b y the u ne th ical s tand ards ado pted b y s ome p layers aga in st the
consumers, nationalized the industry in two phases in 1956 (life) and
1 97 2 (no n- li fe ). The ins uran ce b us in es s o f the cou nt ry was then
brought under two public sector companies, Life Insurance Corporation
of India (LIC) and General Insurance Corporation of India (GIC).
With such a large populat ion and the untapped market area of
this population Insurance happens to be a very big opportunity in India.
Today i t s tands as a bus iness g rowing a t the ra te o f 15-20 percen t
annually. Together with banking services, it adds about 7 percent to the
c ou nt ry s G DP . I n s pi te o f a ll t hi s g ro wt h t he s ta ti st ic s o f t he
penetration of the insurance in the country is very poor. Nearly 80% of
Indian populations are without Life Insurance cover and the Health
Insurance. This is an indicator that growth potential for the insurance
sector is immense in India. It was due to this immense growth that the
regulations were introduced in the insurance sector and inc onti nua ti ons M alhot ra Comm it te e was c onst it ut ed by t he
government in 1993 to examine the various aspects of the industry. The
Committee recommended throwing open the sector to private players to
usher in compet i tion and b r ing more choice to the consumer. The
objective was to improve the penetration of insurance as a percentage
GDP, which remains low in India even compared to some developing
c ou nt ri es i n A si a. T he k ey e le me nt o f t he r ef or m p ro ce ss w as
Par ti cipa tion o f o vers eas ins uran ce companies w ith 2 6% cap it al .
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Creating a more efficient and competitive financial system suitable for
the requirements of the economy as the main idea behind the reform.
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A BRIEF HISTORY
The origin of insurance is very old. The time when we were not
e ven bor n; w as ha s sought some sor t of pr ot ect ion f rom t he
unpredictable calamities of the nature. The basic urge in man to secure
himself agains t any form of r isk and uncertainty led to the origin of
insurance.
The insurance came to India from UK; with the establishment of
The Oriental Insurance Corporation in 1818. the Indian Life Insurance
company act 1912 was the first s tatutory body that started to regulate
the Life Insurance business in India. By 1956 about 154 Indian, 16
foreign and 75 provident firms were been established in India. Then the
central government took
over these companies and as a result the LIC was formed. Since then
LIC has worked towards spreading Life Insurance and building a wide
network across the leng th and the b reath o f the country . Af ter the
l ib er al iz at io n t he e nt ra nc e o f f or ei gn p la ye rs h as a dd ed t o t he
competition in the market.
The General Insurance business in India, on the other hand, can
trace i ts roots to the Tri ton Insurance Company Ltd, the f irs t General
Insurance Company es tab l ished in the year 1850 in Calcu t ta by the
Brit ish . In 1957 General Insurance Council , a wing of the Insurance
Ass oc ia tion o f Ind ia , f rames a cod e o f con du ct for ens ur in g fai r
conduct and sound business pract ices. In 1972 the General Insurance
Business in India with effect from 1 s t January 1973. it was after this
that 107 insurers amalgamated and grouped in to four companies viz.
the Nat io na l Ins uran ce Company L td , the New Ind ia Ass uran ce
Company Ltd, the Oriental Insurance Company Ltd. GIC incorporated
as a company.
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INSURANCE SECTOR REFORMS
I n 1 99 3, M al ho tr a C om mi tt ee h ea de d b y f or me r F in an ce
Secretary and RBI Governor was formed to evaluate the Indian industryand g iv e i ts r ecommend at io ns . The commi tt ee came u p with the
following major provisions:-
Private Companies with a minimum paid up capital of Rs. 1 bn
should be allowed to enter the industry.
Foreign companies may be a l lowed to en ter the indust ry in
collaboration with the domestic companies.
Only one s tate level Life Insurance Company should al low tooperate in each state.
Reforms were initiated with the passage of Insurance Regulatory
and Development Authority (IRDA) Bill in 1999. IRDA was set up as
an independent regulatory authority, which has put in place regulations
in line with global norms.
IRDA:
The IRDA since i ts incorporat ion as a s tatutory body has been
f raming reg ulat io ns and reg is te ring the p riva te s ec to r ins uran ce
companies . IRDA b eing an ind ep en dent s ta tu to ry b od y h as p ut a
framework of globally compatible regulations .
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INSURANCE MARKET IN INDIA
By a ny ya rds ti ck, w it h a bout 200 mi ll ion mid dle c las s
households, p resents a huge untapped potent ial fo r p layers in the
insurance industry. Saturation of markets in many developed economies
has made the Indian market even more at tract ive for g lobal insurance
majors. With the per capital income in India expected to grow at over
6% for the next 10 years and with improvement in awareness levels, the
demand for insurance is expected to grow at an attractive rate in India.
An independent consulting company, the Monitor Group has estimated
that the Life Insurance market will grow.
WINDS OF CHANGE
Reforms have marked the entry of many of the global insurance
majors into the Indian market in the form of joint ventures with Indian
companies. Some of the keys names are AIG, New York Life, Allianz,
Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry
of new players has rejuvenated the ers twhile monopoly player LIC.
Which has responded to the competi t ion in an admirable fashion by
launching new products and improving service standards.
Market Expansion :
There has been an overal l expansion in the market . This has
been poss ible due to improved awareness levels thanks to the largenumber o f adver ti s ing campaigns launched by a l l the p layers . The
scope for expansion is s t i l l unlimited as v ir tual ly al l the players are
concentrat ing on large ci t ies and towns except by LIC to an extent
there was no significant attempt to tap the rural markets.
New Product Offerings:
There has been a plethora of new players, mainly from the stable
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of their international partners. Customers have tremendous choice from
a large varie ty o f p roducts f rom pure term insurance to un it - linked
investment products. Customers are offered unbundled products with a
v ar ie ty o f b en ef it s a s r id er s f ro m which they can cho os e. More
customers are buying products and services based on their t rue needs
and not just traditional money-back policies, which is not considered
very appropriate for long-term protection and savings. However, there
are s t i l l some key new products yet to be in t roduced e .g . heal th
products.
Customer Service:Not unexpected ly , th is was one area that wi tnessed the mos t
significant change with the entry of new players. There is an attempt to
b ring in interna tion al b es t p ract ices in s ervice and o pera tion al
eff iciency though use of lates t technologies . Advice and need based
s el ling i s emerg in g throu gh much b et te r t ra in ed s ales force and
advisors . There is improvement in response and turnaround t imes in
specific areas such as delivery of first policy receipt, policy document, p remium not ice , f inal matur ity payment , se tt lement o f c laims e tc.
However , there i s a long way to go and var ious cus tomer surveys
indicate that the standards are still below customer expectation levels.
Channels of Distribution:
T il l t wo y ea rs b ac k, t he o nl y m od e o f d is tr ib ut io n o f l if e
insurance products was through Agents . While agents continue to be
the predominant d is tr ibution channel , today a number of innovative
alternative channels are being offered to customers. Some of them are
banc assurance, brokers, the internet and direct marketing. Though it is
too early to predict , the wide spread of bank branch network in India
could lead to banc assurance emerging as a s ignif icant d is tr ibution
mechanism.
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The introduction of private players in the industry has added to
the co lo rs in the dul l indust ry. The in it iat ives taken by the p r ivate
p layers are very competi t ive and have given immense competi t ion to
the o n t ime mon op oly o f the marke t L IC . S in ce the adv en t o f the
private players in the market the industry has seen new and innovative
s teps t ak en b y the p layers in thi s s ec to r. The n ew p layers h av e
improved the service quality of the insurance. As a result LIC down the
years have seen the declining phase in its career. The market share was
distributed among the private players. LIC market share has decreased
from 95% (2002-03) to 82% (2004-05).
The fol lo wing companies h av e the marke t s ha re o f the l if e
insurance industry.
Insurance Company Market Share (Fig. in %)
LIC 74.44
ICICI Prudential 12.35
Bajaj Allianz 7.28
HDFC Standard Life 2.37
Other s 3.56
Market Share of Life Insurance Companies as of May 2007
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CURRENT SCENARIO OF THE
INSURANCE INDUSTRY IN INDIA
India with about 200 mil lion middle class household shows a
h ug e u nt ap pe d p ot en ti al f or p la ye rs i n t he i ns ur an ce i nd us tr y.
Satu rat ion o f markets in many developed economies has made the
Indian market even more at tract ive for g lobal insurance majors . The
insurance sector in India has come to a position of very high potential
and competitiveness in the market.
Innovative products and aggressive distribution have become the
say of the day Indians, have always seen Life Insurance as a tax saving
d ev ic e, a re n ow s ud de nl y t ur ni ng t o t he p ri va te se ct or t ha t a re
providing them new products and variety for their choice.
Life Insurance industry is wait ing for a b ig growth as many
Indian and Foreign companies are wait ing in the l ine fo r the g reen
signal to start their operations. The Indian Consumer should be ready
now because the market is going to give them all array of products ,
different in price, features and benefits . How the customer is going to
make his choice will determine the future of the industry.
CUSTOMER SERVICE
Consumers remain the most important centre of the insurance
sector. After the entry of the foreign players the industry is seeing a lot
of competi t ion and thus improvement of the customer service in the
industry. Computerization of operations and updating of technology has
become imperative in the current scenario. Foreign players an bringing
i n i nt er na ti on al b es t p ra ct ic es i n s er vi ce t hr ou gh u se o f l at es t
technologies. The one time monopoly of the LIC and its agents are now
going through a through revis ion and training programs to catch upwith the other private players.
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DISTRIBUTION CHANNELS
Till date insurance agents s t i l l remain the main source through
which insurance products are sold. The concept is very well established
in the country like India but still the increasing use of other sources is
imp erat iv e. I t t he re fo re mak es s en se to loo k a t wel l b alan ced,
alternatives channels of distribution.
LI C has a lr ea dy we ll e st abli she d a nd ha ve a n e xt ens ive
distribution channel and presence. New players may find it expensive
and t ime consuming to b r ing up a d is t ribut ion channel to have an
advantage.
At present the distribution channels that are available in the
market are:
Direct Selling
Corporate Agents
Group Selling
Brokers and Cooperative Societies
Banc assurance
To make al l these channels a success the companies have to be
very alert and skil lfu l to know how to use these channels in a proper
wa y. Ba nc assur ance i s on of t he mos t upcomi ng c ha nne ls of
distribution.
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BANCASSURANCE
India has an extensive bank network established over the years.
What Insurance companies have to do is to jus t take advantage of the
customers long-standing trust and relationships with banks. This is a
mutually beneficial s i tuat ion as banks can also expand their range of
products on offer to customers, while the insurance company will also
earn profits from the exposure. Another advantage is that banks, with
their network in rural areas, help to fulfill rural and social obligations
stipulated by the Insurance Regulatory and Development Authority
(IRDA) recently. Insurance companies should see banc assurance as a
tool for increasing their market penetration in India. It is also good for
the one who sees banc assurance in terms of reduced price, high quality
product and delivery at doors teps . Everybody is a winner here. The
creation of banc assurance operations has made an important impact on
the f inancial services industry at large. This is though a new concept
but it has gained a lot of importance in the industry at present and has a
great future.
PRODUCT INNOVATION
Cus to mers h av e t remend ou s cho ice f ro m a l arge v ar ie ty o f
products from pure term insurance to unit-linked investment products.
Customers are offered unbundled products with a variety of benefits as
r id er s f ro m which they can cho os e. More cus to mers a re b uy in g
products and services based on their true needs and not just traditional
money- back policies , which is not considered very appropriate for
long-term protection and savings.
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RURAL MARKETING
R ur al I nd ia s ee ms t o h av e a n a pp et it e f or m ob il e p ho ne s,
computers , and cars and to add to i t we have insurance. In India with
the p r ivate p layers having en tered in to the insurance indus t ry , the
expected explosion in job opportunities may not actually happen but for
them the ca tchments area i s the oppor tun i t ies in the ru ra l Ind ia . In
India the insurance bus iness can be said to be a marathon, not a
sprint. This is because of the nature of the business being long term.
However i t seems that they if not anything, are only increas ing their
spending, though only out of the capital . As insurance companies go
more and more rural in search of business, there will be opportunities
in the rural sector . Already United India The Rural consumer is now
exhibiting an increasing propensity for Insurance products. A research
conducted exhibited that the rural consumers are wil l ing to dole out
anything between Rs. 3,500 and Rs. 2,900 as premium each year. In the
Insurance the awareness level for Life Insurance is the highest in rural
India , but the cus tomers are a lso aware about motor , acciden ts and
catt le insurance. According to a s tudy nearly one th ird said that they
had purchased some kind of insurance with the maximum penetrat ion
skewed in favor o f l i fe insurance. The s tudy a lso poin ted out the
private companies have huge task to play in creat ing awareness and
creditability among the rural populace.
INFORMATION TECHNOLOGY AND INSURANCE
In the insurance industry today, there is a clear trend away from
selling a broad range of products to a large volume of cus tomers in a
o ne- s ize- f it s-al l man ner. Ins tead o f focus in g o n the ir d if fe rent
products lines as silos (i .e. , l ife, property and casualty etc) insurers are
looking for ways to offer h ighly targeted insurance products that are
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tailored to the individuals customers with the highest propensity to buy
them. Insurance indust ry i s a data- r ich indust ry, and thus , there i s
desire need to use the data for trend analysis and personalization.
With increased competition among insurers, service has become a
k ey i ss ue . P eo pl e t od ay d on t w an t t o a cc ep t t he c ur re nt v al ue
propositions, they want personalized in teract ions and they look for
more and more fea tu res and add o nes and b et te r s ervice . Tod ay
managing the customer inte ll igen tly i s very cr it ica l fo r the insurer
especially in the very competit ive environment. Companies need to
app ly d if fe rent s et o f rules and t reatment s tr at eg ies to d if fe rent
customer segments.
With the explos ion of Website and greater access to d irect or
policy information, there is a need to developing better techniques to
give customers a truly personalized experience. Personalization helps
o rg an izat io ns to r each the ir cus to mers w ith more imp ac t and to
generate new revenue through cross selling and up selling activities. To
ensure that the customers are receiving personalized information, many
organizat ions are incorporat ing knowledge database-repositories of
content that typical ly include a search engine and let the customers
locate the a l l document and information re la ted to thei r quer ies o f
request for services. Customers can hereby use the knowledge database
to manage their products or the company information and invoices ,
claim records, and histories of the service inquiry. These products also
may be able to learn from the customers previous knowledge database
and to use thei r information when determin ing the re levance to the
c us to me rs s ea rc h r eq ue st . T he i ns ur an ce se ct or r em ai ns a v er y
competi t ive market and those companies that are able to bes t u t i l ize
the ir d ata and p ro vide the ir cus to mer w ith the mos t p er so na li zed
options will have the distinct competitive advantage.
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MERGERS AND ACQUISTIONS
This is an era of mergers and acquis i t ions . Private companies
i nc lu di ng M NC s a re a ma lg am at in g t he w or ld o ve r t o g et m or e
competi t ive edge. Currently , the general insurance industry has been
opened up . The insurers are do ing enough to ra ise the level o f r i sk
awareness o r a re they merely con tent to compete in the marke ts
organized and established. The private players in the future would have
to turn their attention to working in the unorganized and under served
markets.
What i s l ik ely to h ap pen i s tha t the p riva te p layers wou ld
cont inue to skim the p rof i tab le segments o f the a l ready organ ized
b us in es s in the u rb an a reas ? The t ime h as a lr eady come for the
government of India to evaluate the performance of private companies.
Howev er i t i s h ig h t ime for the g ov ernmen t to r ea li ze tha timportance of merging the public sector general insurance companies
into s ingle enti ty . The recent scenario cal ls for a bet ter performance
from part of each of the public sector insurance companies against each
o ther . The resu l t what we see i s the undercu t t ing to re ta in o r wres t
business and quoting an uneconomical rate of premium. While th is
a l lows one o f the Public Sectors Company to win a bus iness fo rm
another in this manner. The others suffer a loss and the resultant effect
is a cannibalizat ion with a fal l in the average premium of the public
sector itself.
T he p ur po se o f h av in g f ou r c om pa ni es a ll s ubs id ia ri es o f
General Insurance Corporation of India (GIC) National Insurance
Company, New India Assurance Company, Oriental Insurance
Company, and The United India Insurance Company; at the t ime of
nationalization was to have competition among themselves in service
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and products at the same price.
Now with real competi t ion coming in with most of the global
insurance players set t ing footprints here, i t is fel t that the t ime for
merger has come and to enjoy the benefits if the size. It is to be stated
tha t s ize d oes mat te r in ins uran ce b us in es s. A ll o ver the wor ld s
mergers and acquis i tions in the r isk-underwrit ing sector is common.
The benefits if the four insurance companies merge will be enormous.
The merged enti ty wil l enjoy higher underwrit ing and r isk retention
capacity; increase in reinsurance premium, reduction in reinsurance
outf low, heal thy solvency marg ins, se tt ing r igh t the asse t- l iab il i ty
mismatch and reduction in cost. The loss of profitable business in view
of undeserved compet i tion among the pub l ic secto r companies i s
hampering the subsidizat ion of social insurance including the motor
third party liability (TPL).
It is thus clear that it is good for the public sector companies to
merge immediately when they are s t i l l s trong, les t a merger becomes
inevitable later after the independent public sector companies fail one
after another.
STRATEGIC ALTERNATIVES
If one analyses the his tory of growth of the insurance industry
since reforms, it is marked by all- round growth of all players. More or
less a l l p layers have aggress ively recru ited and t rained advisors ,
appointed agents , launched new products, improved customer service
s tandards and revamped/expanded their d istr ibution networks. Every
player would like the customers to believe that its service standards are
the bes t or that i ts agents are the most informed and ethical . In other
words, each company is trying to be everything to everybody. Some
players justify the above strategy on the basis that the Indian market is
huge and it can accommodate everybody. Still , in a market where it is
d if f icu lt to d ist inguish onesel f suff ic ien tly on serv ice o r any o ther
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parameter to be able to charge a premium, i t wil l lead to unmitigated
p r ice compet i tion to the detr iment o f a l l p layers . In the insurance
industry where large amounts of capital are required, this is risky.
While there is room for a few scale players with a finger in every
pie, i t is profi table for the players to focus on different segments to
s urvive and thr iv e in a mul ti -f irm o pen env iron ment . Whi le each
company has to choose its own unique positioning based on its unique
strengths.
Variety-based Positioning
This type of positioning is based on varieties in products andservices rather than customer segments . I t is a sensible s trategy for
tho se companies who h av e d is tinc tive adv an tages o r s tr en gths in
offering certain products and services.
In the insurance industry too, i t is poss ible to achieve a unique
pos i tion by focusing on certa in ca tegory o f p roducts. Through i t s
superior fund management capab il i ties, the insurance company can
deliver better returns on it investment-linked products and thereby for
itself a leadership position in this segment.
Then there is the entire category of pension products , which is
wid ely tou ted to h av e immen se g ro wth p oten ti al in Ind ia d ue to
i mm in en t p en si on r ef or ms . I t i s p os si bl e t o a ch ie ve p ro fi ta bl e
positioning by focusing and excelling in only pension products.
Needs based Positioning
This is the most commonly understood positioning and is
based on the different needs of different groups of consumers. This can
be done successfully if a company has unique s trengths to service a
group of customer needs better than others.
The insurance needs of young family with small children will be
qu i te d i f feren t f rom that o f a family in which the income-earner i s
c lose to re ti rement . However , in India mos t o f the L ife Insurance
companies have a wide variety of products of different customer needs
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and there is no company focusing only on a particular customer needs.
Access- based Positioning
Positioning of customers can also be done by the way they are
access ible that is d ifferent groups of cus tomers may be access ible in
d i f feren t ways even though they may have s imi lar needs . Access i s
typically a function of customer scale.
There i s excel lent o pp or tu ni ty in the ins uran ce ind us try to
employ access-based pos i tion ing by targeting the ru ra l insurance
sector . The rural market for Life Insurance is very different from the
u rb an marke t in t erms o f n eeds , income lev el s, d is tr ib ut io n, and penetrat ion of media and so on. Except for LIC, no other p layer has
paid any at tention or focus on the rural sector . Contrary to common
perception i t is a b ig opportunity as emphasized repeatedly by such
eminent s trategies l ike C.K.Prahlad. Rural market can be a h igh ly
profitable position if one is able to carefully plan.
CHOOSING THE RIGHT STRATEGY
The r ight s trategic choice is not a matter of posi t ioning choice
alone. It is the configuration of the entire value chain of the company
t hr ou gh a d if fe re nt s et o f a ct iv it ie s t o d el iv er u ni qu e v al ue t o
consumers . The set of act iv i t ies cover al l upstream and downstream
activities, from the selection of the product mix. Some Life Insurance
companies focusing on rural markets have adopted innovative means of
d is tr ibution. Ins tead of appointing agents as is done typically , they
have used Gramsevaks in d i fferen t v i llages across the country to
promote Life Insurance and act as their sales arm.
So we can conclude that , the s ize of the market has grown and
the s ize o f the insurab le popula t ion in Ind ia i s indeed vas t and the
existing players have managed to cover about one-fourth of it .
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The fa ll ing in teres t ra tes , the co llapse o f many smal l time
financial institutions, the scope for entering related areas like banking
and pensions in a b id for synergy and the promise of the e-commerce
are s ome o f the o th er o pp or tu ni ti es k no ck in g a t the d oo rs o f the
insurance majors.
A n um be r o f w eb s it es a re c om in g u p o n i ns ur an ce , a f ew
financial magazines exclus ively devoted to insurance and also a few
training institutes being set up hurriedly. Many of the universities and
management institutes have already started courses in insurance.
L ife ins uran ce h as tod ay b ecome a mains tay o f any marke t
economy s ince i t offers p lenty of scope for garnering large sums of
mon ey for lon g p er io ds o f t ime. A wel l r eg ulated L ife Ins uran ce
industry which moves with the times by offering its customers tailor-
made products to satisfy their financial needs is , therefore, essential if
we desire to progress towards a worry-free future.
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ABOUT BAJAJ ALLIANZ LIFE INSURANCE
Mission:
As a responsible customer focused market leader, we still striveto understand the insurance needs of the consumers and translate it
into affordable products that deliver value for money.
Vision:
To be the first choice insurer for customers.
To be the preferred employee for staff in the insurance industry.
To be the number one insurer for creating shareholder value.
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SAM GHOSH, who was the CEO of Bajaj Allianz earlier has taken
over as country Manager and is also the CEO of Bajaj Allianz Life
Insurance Company.
Bajaj Allianz Life Insurance Company Limited
Bajaj All ianz Life Insurance Co. Ltd is a jo int venture between
two leading conglomerates-, and Bajaj Auto, one of the biggest two and
three-wheeler manufacturers in the world and All ianz AG, one of the
worlds largest insurance companies.
Bajaj Allianz Life Insurance
Is the fastest growing private life insurance company in India.
Currently have over 300000 satisfied customers.
Have Customer care centers in 156 ci t ies with 28000 Insurance
Consultant providing the finest customer service.
Bajaj Allianz General Insurance Company Limited
Bajaj Al lianz General Insurance Company Limited i s a join t
venture between Bajaj Auto Limited and Allianz AG of Germany. Both
enjoy a reputation of expertise, stability and strength.
B aj aj A ll ia nz G en er al I ns ur an ce r ec ei ve d t he I ns ur an ce
R eg ul at or y a nd D ev el op me nt A ut ho ri ty ( IR DA ) c er ti fi ca te o f
Reg is tr at io n (R3 ) o n May 2n d , 2001 to conduct General Insurance
business (including Health Insurance business) in India. The Company
has an au thor ized and paid up cap i ta l o f Rs .110 crores . Baja j Auto
holds 74% and Allianz holds the remaining 26%. AG, Germany.
In its first year of operations the company has acquired the NO. 1
s tatus among the p r ivate non- li fe insurers. As on 31s t March 2003,
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Bajaj Allianz General Insurance maintained its leadership position by
garner ing a p remium income of Rs.300 Crores. Baja j Al lianz a lso
became one of the few companies to make a profit in its first full year
of operations. Bajaj Allianz made a profit after tax of Rs.9.6 crores.
Bajaj Allianz today has a network of 40 offices spread across the
length and breadth of the country. From Surat to Sliliguri and Jammu to
Thiruvananthapuram, al l the 38 offices are in terconnected with the
Head Office at Pune.
In the f i rs t ha l f o f the Curren t f inancia l year , 2006-07 , Baja j
Allianz generated a premium income of Rs. 5310 crores, achieving a
g ro wth o f 8 4% and reg is te red a 5 2% g ro wth in n et p ro fi t. In the
financial year 2005-06, the premium earned was Rs.3133 Crores, which
is a jump of 60% and the profit zoomed by 125% .
Shareholders & Promoters
Bajaj Auto Limited
Bajaj Auto Limited is the largest manufacturer of two and three-
wheelers in India and also one of the largest manufacturers in the
world. Bajaj Auto has been in operation for over 55 years. As a
promoter of Bajaj Allianz General Insurance Company Ltd., Bajaj Auto
has the following to offer:
Vast distribution network.
Knowledge of Indian consumers.
Financial strength and stability to support the insurance business
Allianz AG, Germany
Allianz Group is one of the world's leading insurers and financial servicesproviders.
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Founded in 1890 in Berlin, Allianz is now present in more than 70
countries with over 19,000 employees top of the international group is
the holding company, Allianz AG, with its head office in Munich.
Allianz Group provides its more than 60 million customers worldwide
with a comprehensive range of services in the areas of
Property and casualty insurance,
Life and health insurance,
Asset management and banking.
In fiscal year 2005, Allianz's total revenues amounted to some 100.9
billion euros. At the end of 2005 Allianz Group had more than 1.26
trillion euros in assets under management. Of this, 743 billion euros
were assets managed for third parties.
History of Allianz
Documenting and researching its corporate history is part and
parcel of the corporate culture of Allianz AG.
The Allianz Center for Corporate History devotes itself to these tasks.
As a frequently used information center, i t has evolved into the
company's "living memory".
Global Presence
Allianz Group is present on every continent and has companies
and offices in about 70 countries. More information about our locations
throughout the world is available by moving the cursor over the world
map.
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Business Fields
Property & Casualty Insurance
When it comes to property and casualty insurance, Allianz is number one inGermany. Allianz also ranks as one of the world's leading global industrial risk
insurers.
Life & Health Insurance
In life and health insurance, Allianz Group is among the top
companies in Europe. Private and corporate retirement provision is
emerging as a major market
Asset Management & Banking
Allianz Group's asset management activities are integrated under one
roof at Allianz Global Investors. With Dresdner Bank, the Allianz
Group has laid a broad foundation in order to address clients' needs on
the investment market.
A ll ianz AG i s in the b us in es s o f Gen eral (Prop er ty & Cas ua lty)
Insurance; Life & Health Insurance and Asset Management and has
been in operat ion fo r over 110 years. Al lianz i s one o f the largest
g lobal compos i te insurance wi th operat ions in over 70 countries.
Further , the Group provides Risk Management and Loss Prevention
Services. Allianz has insured most of the worlds largest infrastructure
projects (including Honkong Airport and Channel Tunnel between UK
and France), further All ianz insures the majori ty of the fortune 500
companies , b es id es b eing a l arge ind us tr ia l ins ure, A ll ianz h as a
substantial portfolio in the commercial and personal lines sector, using
a wide variety of innovative distribution channels.
Allianz AG has the following of offer Bajaj Allianz General Insurance
Company Ltd.:
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Set up and running of General insurance operations
New and improved international products
One of the worlds leading insurance companies
More than 700 subsidiaries and 2 lac employees in over 70 countries
worldwide
Provides insurance to almost half the Fortune 500 companies
A Partnership Based on Synergy
Bajaj A ll ianz Gen eral Ins uran ce Company o ffer s t echn ical
excellence in all areas of General and Health Insurance as well as Risk
Management. This partnership successfully combines Bajaj Autos in-depth unders tanding o f the local market and extens ive d ist r ibut ion
network wi th the g lobal exper ience and technical exper ti se o f the
Allianz Group. As a registered Indian Insurance Company and a capital
base of Rs.110 crores, the company is:
Fully l icensed to underwrite al l l ines of general insurance business
including health with management control by Allianz AG
About Bajaj Allianz Life Insurance:
Bajaj All ianz Life Insurance Company has developed insurance
solut ions that cater to every segment and age- income prof iles. I t s
p ro du ct s inc lu de Inv es t Gain (a u niqu e l if e ins uran ce p lan where
sustenance of income is combined in the same plan that also pays a lump
sum), Cash Gain (Money Back) , Child Gain(Chi ldrens p lan where
sustenance of income is combined in the same plan that also pays a lum
sum), Cash Gain (Money Back), Child Gain (Childrens Plan), Risk care
(Pure Term), Life Time Care (whole Life) , term Care ( term with return
of premium), Swarna Vishranti (Retirement Plan), Protector (Mortgage
term insurance plan), Unit Gain (Unit Linked Whole of Life Plan) and
Unit Gain Single Premium.
Bajaj All ianz Life Insurance is poised for an accelerated growth in the
market and has already become the fastest growing private life insurance
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company in Ind ia . Baja j Al l ianz Life Insurance has a wide pan Ind ia
presence of office network in 156 citied of the country and is aided with
a strong and trained Agency network of over 28000 agents. Bajaj Allianz
has also forged strong Banc assurance and Corporate Agency relationship
and con t inues to bu i ld on new t ie-ups fo r fas t t rack g rowth and deep
market penetration.
Bajaj Allianz Life Insurance has launched a slew of need-
based products to cater to each varied needs of the customer.
Currently Bajaj Allianz Life Insurance has a product portfolio of 19
products and more need-based products are in the pipeline.
Bajaj Allianz general Insurance: 125 percent profit
Increase
Bajaj Al lianz General Insurance Company Limited i s a join t
venture company between Bajaj Auto Ltd., Indias leading
manufacturer of two and three wheeler vehicles and the Allianz Group.
Bajaj Allianz General Insurance offers technical excellence in all
areas of general and health insurance and risk management.
The partnership successfully combines Bajaj Autos extensive
unders tanding o f the local market and expansive d is t ribut ion wi th
Allianz Groups global experience and technical expertise.
Bajaj Allianz General Insurance is headquartered in Pune and has
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a wide network of 40 offices spanning the country. All the offices are
fully networked. The company received the IRDA registration in may
2001 ; today, i t a l ready has a vas t range o f 45 p roducts to su it i t s
corporate and re ta i l customers. The company has a lso p ioneered in
unique forms of risk cover.
In the year 2003-2004, the company garnered a premium income
of approximately 4 .8 bi l l ion Rupees (86 mil l ion Euros) with a profi t
after tax of 220 million Rupees (3.9 million Euros); it sold 1.2 million
p ol ic ies. With thi s r es ul t, i t ach ieved a n et p ro fi t g ro wth o f 1 25
percent, gross written premiums jumped by over 60 percent.
All ianz Bajaj Changed Its Name To Bajaj All ianz Life
Insurance
Allianz Bajaj Life Insurance Co. Ltd. , the fastest growing private life
insurance co. today announced that it has changed its corporate name to
Bajaj Allianz Life Insurance Co. Ltd, effective from August 03, 2004.
The change in company name comes in conjunct ion wi th research
f ind ings f rom ex is t ing cus tomers , bus iness associa tes , p rospective
customers and other s takeholders indicates h igher comfort level and
ease of recalling Bajaj name first and then Allianz, and hence the name
Bajaj Allianz.
Baja j Al lianz General Insurance Company Limited and Baja j
Allianz Life Insurance Company Limited will now have a common logoa nd b ra nd in g w hi ch w il l h el p i n i nc re as in g o ur v is ib il it y a nd
familiar i ty , which wil l create a much larger awareness and a greater
mind share. The new logo incorporates the new Bajaj Auto logo.
Commenting on th is occas ion Mr. Sam Ghose Manager, All ianz and
CEO, Bajaj Allianz Life Insurance said, we are not only acquiring a
n ew n am e, b ut h av e p ut i n m ot io n a n ew l ev el o f en erg y a nd
commitment to del ivering the best products . The name change
coupled with aggressive strategic market initiatives to reach service
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c us to mer s b et te r w il l g iv e us a n u nb ea ta bl e p os it io n i n t he
insurance market in t hi s count ry and bot h Lif e and General
companies together can unleash the Power of One and be the
leader in the insurance industry.
Bajaj All ianz Life Insurance recently launched over 100 satel l i tes
branches, new life and non-life group products, which has helped Bajaj
All ianz (formerly known as All ianz Bajaj) to log in Rs .100 Cr. Gross
Written Premium (GWP) in the first 100 days of this financial year and
has leaped to 2 nd position as per IRDA figures ending June 04, from its
7 t h position at the end of last financial year.
Bajaj Allianz Life Insurance has also brought in the key executives,
to infuse greater thrus t , new ideas, eff iciency and professionalism to
impart s tate of the art servicing to the customers across the length and
breadth of the country.
CORE COMPETENCIES AT BAJAJ ALLIANZ LIFE
INSURANCE
The Bajaj Allianz Difference
Business strategy aligned to clients needs and trends in India and
global economy industry
Interna tion al ly exp er ienced core t eam, major ity w ith local
background
Fast, decentralized decision making
Long-term commitment to market and clients
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Trust
At Bajaj All ianz, they have real ized that the customer seeks an
insurer whom he/she can trus t . Bajaj All ianz Limited is t rus ted name
for over 55 years in the Indian market and All ianz AG has over 110
years o f g lobal exper ience in f inancia l serv ices . Together they are
commi tt ed to p ro vide the cus to mer w ith t ime t es ted and t ru sted
financial solut ions that provide the customer al l the securi ty he/she
need for their investments. And more
Underwriting Philosophy
Their underwriting philosophy focused on:
Understanding the customers needs
Underwriting what we understand
Meeting the customers requirements
Ensuring optimal coverage at lowest cost
Claims Philosophy
The Bajaj Allianz team follows a service that aims at taking the
anxiety out of claims processing. They pride themselves on a friendly
and open approach. They are focused towards providing the customer a
hass le free and speedy claims process ing. Their claims philosophy is
to:
Be flexible and settle fast
Ensure no claim file to be seen by more than 3 people
Check processes regu lar ly against the g lobal Al lianz OPEX
(Operational Excellence) methodology
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Customer Orientation
At Bajaj Allianz, the guiding principals are customer service andclient sat is faction. All the efforts are d irected towards unders tanding
the culture, social environment and individual insurance requirements-
so that they can cater to all the customers varied needs.
Experienced and Expert Servicing Team
Bajaj Al l ianz i s d r iven by a team of exper ienced peop le who
understand Indian risks and are supported by the necessary international
expertise requires to analyses and assess them service engineers located
in every major city .
Superior Technology
In order to ensure speedy and accurate processing o the customers
n eeds , they h av e estab li sh ed wor ld s c lass t echn olog y, w ith
renowned insurance software, which networks all our offices andintermediaries
Using the Web, policies can be issued form any office across the
country for retail products
Unique, user fr iendly software developed to make the process of
i ss ue o f p ol ic ies and c la ims s et tl emen t s impler ( e. g. o nl in e
insurance of marine policy certificate)
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Unique Forms of Risk Cover
Special PA cover for Amarnath Yatris
Housing loan cover for people, who are suddenly unemployed
Film insurance
Event management cover
Risk Management Their Expertise
Their service methodology is tried, tested and Proven the world over
and involves:
Risk identification: Inspection
Risk analysis: Portfolio review and gap analysis.
Risk retention
Risk Transfer: To an insurer as well as reinsurer (as required)
Creation of need based products
Ongoing dialogue and proactively
IRDA AND ITS GUIDELINES
Composition of Authority under IRDA Act, 1999
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of
parliament) specify the composition of Authority
The Authority is a ten member team consisting of
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(a) a Chairman;
(b) five whole-time members;
(c) four part-time members,
(all appointed by the Government of India)
Duties, Powers and Functions of IRDA
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..
(1) Subject to the provisions of this Act and any other law for the time being in force,
the Authority shall have the duty to regulate, promote and ensure orderly growth of
the insurance business and re-insurance business.
(2) Without prejudice to the generality of the provisions contained in sub- section (1),
the powers and functions of the Authority shall include, -
(a) issue to the applicant a certificate of registration, renew, modify, withdraw,
suspend or cancel such registration;
(b) protection of the interests of the policy holders in matters concerning assigning of
policy, nomination by policy holders, insurable interest, settlement of insurance claim,
surrender value of policy and other terms and conditions of contracts of insurance;
(c) specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;
(d) specifying the code of conduct for surveyors and loss assessors;
(e) promoting efficiency in the conduct of insurance business;
(f) promoting and regulating professional organizations connected with the insurance
and re-insurance business;
(g) levying fees and other charges for carrying out the purposes of this Act;
(h) calling for information from, undertaking inspection of, conducting enquiries and
investigations including audit of the insurers, intermediaries, insurance intermediaries
and other organizations connected with the insurance business;
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(i) control and regulation of the rates, advantages, terms and conditions that may be
offered by insurers in respect of general insurance business not so controlled and
regulated by the Tariff Advisory Committee under section 64U of the Insurance Act,
1938 (4 of 1938);
(j) specifying the form and manner in which books of account shall be maintained and
statement of accounts shall be rendered by insurers and other insurance
intermediaries;
(k) regulating investment of funds by insurance companies;
(l) regulating maintenance of margin of solvency;
(m) adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
(n) supervising the functioning of the Tariff Advisory Committee;
(o) specifying the percentage of premium income of the insurer to finance schemes
for promoting and regulating professional organizations referred to in clause (f);
(p) specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector; and
(q) exercising such other powers as may be prescribed
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ULIP
ULIP is a unique investment scheme from the Unit Trust of India, offering an
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Insurance cover along with tax benefits and high returns.
Unit linked insurance plan (ULIP) is life insurance solution that provides for the
benefits of protection and flexibility in investment. The investment is denoted as
units and is represented by the value that it has attained called as Net Asset Value
(NAV). The policy value at any time varies according to the value of the
underlying assets at the time.
The company ULIP funds were placed in ranked 1st, 3rd, on the basis of maximum
return since its inception.
Latest survey done by leading personal finance magazine outlook. In the earlier six
month ago in July BAJAJ ALLIANZ funds were first and second.
Employee Benefit solution:
Gratuity, super annotation , key man insurance and for individual invest gain , cash
gain , child gain, Risk care, life time care , swarana vishranti , unit gain, unit gain sp,
Unit gain easy pension plan.
KOTAK ULIP PRODUCTS:
Capital multiplier plan, retirement income plan, child advantage plan, premium return
plan.
ICICI ULIP PRODUCTS:
Secure plus etc.
LIFE INSURANCE PRODUCTS
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LIFE LONG GAIN
The Bajaj Allianz Life gain Plan comes with a host of features to
al low customer to have the bes t o f a l l words regu lar income fo r
customer and the added benefits of providing for loved ones too. This
is the perfect plan to take care of ongoing and future family expenses
like debts, expenses on children, living expenses, etc. It can also take
care of unforeseen expenses like accidents, il lness. Hospitalization etc.
and provides a family with a safety net.
How does the plan work?
The premiums paid are invested in the Lifelong Gain Fund (based on
the allocation rate) and units are allocated depending on the offer price
of units for the fund. The value of the policy is the bid value of units
that a customer holds in the fund. The life insurance cover charges are
de duct ed thr ough mont hly c ance lla ti on of unit s a nd the f und
adminis trat ion charge and fund management charge are priced in the
unit value.
Benefits available under the plan
Death Benefit: In the case of unfortunate premature death the
beneficiaries are entitled to the greater of:
Sum Assured less partial withdrawals
The bid value of units
If the age of the insured person is less than 7 or above 70, then the
bid value of unit is paid.
Guaranteed Survival Benefits:
Guaranteed Survival Benefits are available under this policy.
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Bajaj Allianz Life Insurance will pay, by cancellation of units in the
account of the policy, 3% of the Sum Assured every year after the
premium payment are over t i l l the termination of the policy. This
guaran teed amount i s payab le every year p rov ided a l l p remiums
have been paid and no partial withdrawal were made, the guaranteed
survival benefit would be 3% (Sum Assured less partial withdrawal)
for the subsequent policy years. If the partial withdrawals made are
equal to the Sum Assured, then the guaranteed survival benefit will
b ecome n il and fun ds in the accou nt w il l b e ava il ab le to the
customer for full/partial withdrawals as and when a customer needs
them.
Maturity Benefits:
On the life assured attaining age 100, the bid value of unit in the
fund will be paid out and the policy will terminate.
Full Withdrawal:
Li fe long Ga in of fe rs the c ust ome r the f le xibi li ty of the
wi thdrawals by surrender ing a l l h is uni ts, anyt ime af ter 3 fu ll
years premiums paid. The full withdrawals are paid out at the bid
value of units . On full withdrawal the policy will terminate.
Partial Withdrawal:
Lif el ong Ga in a llow s the c ustome r t o ma ke par ti al
withdrawals anytime after al l the premiums are paid . This g ives
the customer the liquidity and option to take out additional money
over and above the guaran teed surv ival benef it s , as and when
required. In case of partial withdrawal, a minimum withdrawal
amo un t i s Rs.10 00 /- . In the cas e o f a p ar ti al w ithd rawal, the
subsequent Guaranteed
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With Bajaj Allianz Unit Gain Plus, A customer can invest in one
li fe i nsur anc e pl an t hat c an t ake c are of al l his/ he r c ha nging
requ irements th roughout thei r l i fe . This p lan has been des igned to
provide them with maximum flexibil i ty , so that they do not have to
worry about their changing need s.
Bajaj All ianz Unit Gain plus Offers the unique option of combining
the p ro tect io n o f l if e ins uran ce with the a tt ract iv e p ro sp ec ts o f
investing in securities. A person can choose the
Inves tment funds that he wants to inves t h is money, p rov id ing an
opportunity to have a d irect s take in the performance of the f inancial
market. Customer also benefits from attractive tax advantages and can
protect loved ones against unfortunate events .
How does the plan work?
The premiums paid are inves ted in fund / funds o f cus tomers
cho ice (depend in g o n the a llocat io n rate) and u ni ts a re a llocated
d ep en di ng o n t he p ri ce o f u ni ts t ha t t he c us to me r h ol ds i n t he
fund/funds. The insurance cover and administration charges a deducted
through cancellation of units , The Fund Management Charge is priced
in the unit value .
Minimum Sum Assured = 5 time the annual premium.
Maximum Sum Assured = y t times annual premium.
The Five funds offered are as under:
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a) Equity Index Fund : The investment objective of this Fund is
to provide capital appreciation through investment in equit ies .
The plan is expected to match the returns given by Nifty Index of
the National Stock Exchange. This fund will invest at least 85%
in equities and maximum 15% in debt and cash.
b) Equity Plus Fund :The investment objective of this Fund is to
provide capital appreciation through investment in select equities
s tocks that have the potential for h igh capital appreciat ion. This
fund will invest at least 85% in equities and maximum 15% in debt
and cash instruments.
c) Debt Plus Fund : The inves tment ob ject ive o f th is Fund is to
p ro vide accumula tion o f income throu gh inv es tmen t in h ig h
quali ty f ixed income securi t ies l ike G-Secs , and corporate debt
rates AA and above. Th is fund wi l l be inves ted fu l ly in DebtInstruments and money market instruments.
d) Balanced Plus Fund : T hi s f un d i s a f un d o f f un ds . T he
i nv es tm en t o bj ec ti ve o f t hi s f un d i s t o p ro vi de a b al an ce d
investment between long-term capital appreciation and current
income through investment in the Units of Bajaj Allianzs Equity
Index and Debt Plus Funds. The balanced fund will invest 30% to
50% in the equ i ty index fund and 50% to 70% in the deb t p lus
fund.
Cash plus Fund: The investment objective of this Plan is to have afund that guarantees invested capital through investments in l iquid
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money market and shor t- term inst ruments l ike Commercia l Papers,
Cert if icate of Deposits , money market , Mutual Funds , Bank FDs etc.
The price of units in th is fund is guaranteed not to go down.1005 of
this fund will be invested in money market instruments. The price of
the units in this fund is guaranteed never to go down.
Flexibilities to manage customer investments
Bajaj All ianz offers the f lexibil i ty to manage the investments.
Ini tial ly, the customer can al locate the premium into the 5 funds that
a re a va il ab le i n a p ro po rt io n o f h is /h er c ho ic e. Su bs eq ue nt ly ,depending on the performance of funds, customer can switch between
funds and also change the allocation of premium to various funds. They
a llow the cus to mer three s wi tches every p ol icy yea r s ub ject to a
minimum swi tching amount o f Rs. 5 ,000 /- or the f und va lue,
whichever is lower. The customer can also change the proport ion of
premium allocation to various funds at each policy anniversary.
Unmatched Flexibility to suits the customers changing
requirements
Bajaj Allianz Unit Gain Plus offers unmatched flexibility to suit the
policy according to the customers requirements.
Flexibility In Premium Payment: The customer has the
flexibility to decide how long he/she wishes to pay the premiums
and when he wants to cash out the policy benefits . Customer may
choose to cash out the policy benefits at one shot or do it as and
when you require cash through partial surrender of units .
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Flexibility to Increase the Sum Assured: The Customerhave the option to increase the Sum Assured without any medical
tests every 3 r d year up to 4 times. The quantum of increase would
be 25% of the original Sum Assured or Rs 1, 00,000/- whichever
is lower. If the customer does not exercise an option when i t is
due, i t cannot be carr ied forward. If the age is les than 18 years
at the start of policy, all 4 increments will be available from age
1 8. Apart f ro m exerc is in g the o pt io ns to inc reas e the Sum
Assured wi thou t medical tests , he/she can increase the Sum
Assured any time. Subject to medical underwriting (available up
to age 60). In either case, the Sum Assured after increase must be
equal to or less than the maximum Sum Assured available foe the
p remium lev el cho sen. The cus to mer s ho uld g iv e n ot ice o f
inc reas e in d ea th b en ef it 1 5 d ays b efore the yea rly p ol icy
anniversary.
Flexibility to decrease the Sum Assured: The customer
can decrease the Sum Assured (in multiples of 1000) at any time
to suit their changing needs . The sum Assured, after decrease,
must be at leas t 5 t imes the annual premium. After a decrease
subsequent increases will be subject to underwriting.
Flexibility to Pay Top ups: The customer may have received a bonus or some
lump sum money. The customer can use that to increase his/her investments in
their policy.98% of any amount paid as top-up is allocated to their funds.
Flexibility to increase the level of Regular Premium
Payment:The customers earnings grow over time, and so does
their savings potential . With Bajaj All ianz Unit gain Plus , the
customers wi ll have the f lex ibi l ity to increase thei r regu lar
premium amount at any time.
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Assured Protec tion even if the custom er misses
payment of their premiums: Bajaj Allianz Unit Gain Plus
p rov ides the customer wi th the unique features o f cont inued
p ro tect io n even i f they forge t to p ay the ir p remiums. After
payment of three ful l years premiums, when premiums due are
not paid, the policy will s tay in force with full benefits so long
as there are enough uni ts avai lab le fo r charging the Cos t o f
Insurance and Additional Benefits after deducting all applicable
charges.
Important Details of the Bajaj Allianz Unit Gain PlusPlan
Minimum Age at Entry: 0(Risk commences at age 7 , and ceases
after age 70)
Maximum Age at Entry: 60.
The minimum age at entry for all additional benefits is 18 years.
The maximum age at entry for all additional benefits is 50 years.
All additional benefits are available till age 65.
Premium Payment Mode
For the customers convenience, Allianz have provided 3 regular
p re mi um p ay me nt m od es t ha t c an b e Y ea rl y, H al f Y ea rl y, a nd
Quar ter ly . They a lso o ffer a month ly p remium payment mode wi th
salary deduction schemes. In addition, the customer also has the option
to pay top-ups to increase his/her investments. The minimum premium
is Rs.15 00 0/ - for the Ann ua l Mod e, Rs.75 00 /- for Hal f Yearly,
Rs.3750/- fo r Quar ter ly , and Rs.1500/- fo r the Monthly Mode. The
minimum top-up premium is Rs.5000/-.
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Partial and Full Withdrawals
Unit Gain Plus offers the full flexibility of full as well as partial
withdrawals by surrendering units , anytime after 3 full years premium
are paid. The surrenders are paid put at the value of units , and there is
no surrender penalty on part ial or fu l l withdrawals after fu l l 3 years
premiums are paid.
Key Features
Guaranteed death benefit
Choi ce of 5 i nves tme nt fu nds w it h f le xibl e inve st me nt
management: you can change funds at any time.
Attractive investment alternative to fixed-interest securities.
Provis ion for fu l l /part ial withdrawals any t ime after three ful l
years premiums is paid.
Unmatched flexibility- to match your changing needs.
Benefits
Death Benefits
Cash withdrawal option
New Family Gain
Family Gain is a flexible investment plan with unique first of its Pure Stock Fund.
The investment in this ethical fund will specifically exclude companies dealing in
gambling, contests, liquor, entertainment (Films, TV etc.), hotels, banks and financial
institutions, thus suiting religious sentiments on investment guidelines.
Partial and full withdrawals after 3yrs.
Guaranteed Life Cover: Sum Assured + Value of Units
Additional Benefits:
o
Accidental death and disabilityo Critical illness and hospital cash
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New Unit Gain Super
Insure fully and get MAX allocation up to 93%
Flexibility to:
Manage your investments: 4 funds to choose from, with 3 free switches every
year
Partial and full withdrawals after 3yrs.
Pay top-ups.
Reduce regular premium after 2 yrs.
New Unit Gain Plus
Flexible investment were never so easy
Manage your investments: 6 funds to choose from, with 3 free switches every
year
Partial and full withdrawals after 3yrs.
Flexibility to increase sum assured and pay top-ups
Assured Protection even if you miss payment of your premium after 3 yrs
Additional Benefits:
o Accidental death and disabilityo Critical illness and hospital cash
New Unit Gain
A low investment flexible investment plan
Manage your investments: 6 funds to choose from, with 3 free switches every
year
Partial and full withdrawals after 3yrs.
Flexibility to increase sum assured and pay top-ups
Assured Protection even if you miss payment of your premium after 3 yrs
Additional Benefits:
o Accidental death and disability
o Critical illness and hospital cash
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New Unit Gain Premier
A unique single premium product which gives upfront 105% allocation
105% allocation
Guaranteed life cover
Manage your investments:
4 funds to choose from, with 3 free switches every year
Term Care
This plan not only offers the customer l i fe insurance cover at a
low cost , but also provides for return of premiums on maturi ty . The
premiums returns at maturity will be equal to the single premium or the
s um t ot al o f e qu iv al en t a nn ua l p re mi um s o f t he E co no my P ac k
(excluding extra premiums charged if any). In case of premature death
the policy term, the full sum Assured will be paid to the nominee.
How does the plan work?
The Bajaj Al lianz Term care Plan o ffer s the cus to mer the
convenience of choosing between two premium payment options.
Regular Premium Payment: Premium payment throughout
the selected term.
Single Premium Payment: One t ime premium payment for
the selected term at commencement.
Apart f ro m cov er in g the r is k o f n atural d ea th , thi s p lan a ls o
provides the customer the option to choose up to 5 additional benefits .
The customer can select a specific combination of additional benefits
best sui ted to h is/her needs, avai lab le in 4 a t tract ive packages to
choose from.
I. Economy:
This is the basic plan, which is available for both the regular and
single premium payment options.
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II. Protect : This p ack comes with the fol lo wing 3 in-bu il t
additional benefits :
a)Accidental death Benefit.
b) Accidental Permanent Total/Partial Disability Benefit
c) Wa ive r of P remi um Be ne fit ( in ca se of ac cide nt al
permanent total disability)
The Protect Pack is available with the regular premium payment option
only.
III. Health : This p ack co mes wi th the fol lo wing 2 in bu il t
additional benefits :
a) Critical Illness Benefit.
b) Hospital cash Benefi t . 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) Wa ive r of P remi um Be ne fit ( in ca se of ac cide nt al
permanent total disability)d) Critical Illness benefit
e) Hospital Cash Benefit
The Total Pack is available with the regular premium payment option
only.
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Benefits :
Accidental Death Benefit
Accidental Permanent Total /Partial Disability Benefit
Waiver of premium Benefit
Critical Illness Benefit
Tax Benefits
Surrender
Loans
LOAN PROTECTOR
The Baja j Al lianz Loan Protector p lan i s a mor tgage term
insurance plan that covers the outstanding principal amount of a loan.
I t i s an eco no mica l way to p ro tect the family f ro m the b urden o f
r ep ayment o f the loan in cas e o f d ea th o f the loaner. The p lan i s
des igned to pay a sum insured that wil l be equal to the outs tandingprincipal amount of the loan due.
How does the plan work?
The Bajaj Allianz Protector Plan offers the convenience of
choosing between two premium payment options.
I. Regular Premium Payment : Premium payment l imited to
approximately 2/3 r d of loan tenure, while coverage continues for
the full tenure of the loan.
II. Single Premium Payment : One t ime premium payment
covering the customer for the full tenure of the loan .
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Joint Life Availability
The Customer has the option to cover the co-applicant of the loan
under th is p lan. Under th is option, both l ives wil l be covered and the
death benefit will be payable in case of death of either life. The policy
terminates on death of either life.
Days of Grace
In case of non-payment of premiums, a grace period of 30 days
will be allowed for the yearly, half yearly and quarterly modes (15 days
for monthly mode). After that the policy will lapse.
Revival Of the Policy
It is possible to revive a policy that has lapse due to non-
payment of premiums within 5 years from the date of lapse. The
revival will be effected subject to underwriting. In case of joint life,
revival would be subject to underwriting on both lives.
General Exclusion
W it hi n 1 5 d ay s f ro m t he d at e o f r ec ei pt o f t he p ol ic y, t he
customer have the option to review the terms and conditions and return
the policy, if the customer disagree to any of the term and conditions,
stating the reasons for his/her objections. The customer will be entitled
to a r e fu n d o f th e p remiu m p a id , s u b jec t o n ly to a d ed u c t io n o f a
p ropor t ionate r i sk p remium for the period on cover and expenses
incurred on medical examination and stamp duty charges.
Benefits :
Death Benefit
Premium Payment mode
Tax benefits
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Surrender values/ paid up values
CHILD GAIN
Taking care of a child is perhaps the most important job a parent
can have. It is but natural that a person would like to give his/her best,
and therefore, this is the time when careful financial planning can help
them to fu lf i ll the aspi rat ions that the cus tomers have fo r h is/her
children .
How does the plan work?
The Bajaj Allianz Child Gain solutions help the customer to
enjoy the joys of parenthood responsibility, with the reassurance of a
secure future for their child.
Common features in the 4 options of Bajaj All ianz Child gain
Solutions.
I. Limited Premium Payment Term Which means tha t the
p remiums are payab le t i ll the cus tomers ch ild a t ta ins age 18
years.
II. The customers contributions grow by way of
compounded annual bonuses, which will be paid to him with
the first guaranteed payout (policy anniversary following age 18 of
you r chi ld ), for in- force p ol ic ies. In add it io n to the ann ua l
bonuses, a terminal bonus may also be paid.
III. The customers are also eligible for Tax benefits under Section 88
and Section 10 (10 D) of the Income Tax A ct.
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IV. Assuring Your Childs Future In an uncerta in wor ld, the
p r ime in teres t o f your ch i ld cannot be jeopard ized in any way.
Which is why the Bajaj Allianz has built in some added benefits
in all their plans to protect the interests of your childs future, bycounter insuring you- the policyholder.
Premiums
F or t he c us to me r s c on ve ni en ce t he y h av e p ro vi de d t hr ee
Premium Payment Modes can be Yearly, Half yearly or Quarterly.
T he y a ls o o ff er a Monthly Premium Payment Mode under
salary deduction schemes.
Surrender
They offer the customer the choice of surrendering the policy
p rov ided three fu ll years p remium have been paid (Two years fo r
premium terms of 5 and 6 years). The guaranteed minimum surrender
value is 30% of all premiums paid excluding the first year premium andexcluding the premiums for premium waiver benefit and Family Income
benef it and addi t ional benef it op ted fo r. The guaran teed min imum
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.
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Loans
Loans a re n ot ava il ab le w ith Bajaj Al lianz Child Gain
solutions.
15 days Free Look Period :
Within 1 5 d ays f ro m the d ate o f r eceipt s o f the p ol icy, the
customer have the option to review the terms and conditions return the
policy, if he/she disagree to any of the terms and conditions, stating the
reasons for his/her objections. The customer will be entitled to a refund
of the premium paid, subject only to a deduction of proportionate risk
premium for the period on cover and the expenses incurred on medical
examination and stamp duty charges.
Exclusions
The Death Cover is subject to the following Exclusion :
Suicide within one year from commencement of r isk, whether sane or
not th is product brochure gives the sal ient feature only. The relevant
p ol icy d ocumen t i s the con clus iv e evidence o f the con trac t, and
provides in detail all the conditions. Exclusion related to each of plans
under the Bajaj Allianz Child Gain Solutions.
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INVEST GAIN
I t takes only a moment to make promises and a l i fetime to keep
t he m. K ee pi ng p ro mi se s m ad e t o y ou r l ov ed o ne s i s n ot j us t a
responsibility, but a commitment that you have to live up to.
When you promise to see your family through thick and thin you
need to make sure that you have planned for al l the eventuali t ies that
may befall on them. You need to be prepared that even if there ever is
an instance that you are not there with them you have saved enough to
see them through their entire life.
Accidental Death Benefit :
Acciden ts are a lways sudden and somet imes fa ta l . 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
a cc ou nt e qu al t o Su m As su re d. ( Su bj ec t t o a m ax im um o f R s.
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).
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Waiver of Premium Benefit:
An acciden t may lead to permanent to ta l d isab il i ty , l imi t ing
ones ability to earn. Bajaj Allianz Waiver of Premium Benefit is a
helping hand when one needs it most. It waives off all future premiums
while keeping the valuable life insurance cover alive, thus enabling you
to live up to your commitments.
Critical Illness Benefit (CI) :
Some i llness es a re c ri ti ca l. They n ot o nly a lt er o nes l if e s
pat tern but also result in a f inancial drain . Bajaj Allianz Critical
Illness ben