bajaj final sip report

7/29/2019 Bajaj Final Sip Report

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EXECUTIVE SUMMARY

The insurance industry has come a long way since the time when businesses were tightly

regulated and concentrated in the hands of a few public sector insurers. Following the

passage of IRDA act in 1999, India abandoned public sector exclusively in the insurance

industry in favor of market driven competition. This change has brought about major

changes in the industry. The inauguration of new era of insurance development has seen

the entry of international insurers the proliferation of innovative products and distribution

channels and rising of supervisory standards.

Range of different products is launched frequently to cater to the different segments of

the market. At the same time changes are also witnessed in the distribution channels.

Traditional agents were supplemented by other channels including Internet and

Bancassurance. These developments are instrumental in propelling business growth.

Bajaj Allianz is one of the most renowned insurance organizations of India. The

organization realized the scope and potential of exploring almost all the insurance sector.

Bajaj Allianz has also taken advantage of Bancassurance channel of distribution and has

capitalized the benefits. It has entered into tie ups with many private and public sector

banks.

My scope of study during the project was in the Bancassurance channel of the company.

Attitude survey of the customers is also done along with strategically evaluating theposition, footfall at the bank branches and many other aspects. The study although is

limited to the tie up with the UBI but the insights gathered from the interaction with the

customers, bank managers and employees is representative of the scenario of the

Bancassurance at the public sector banks.

The main focus was on selling of the health insurance policies to the walk in customers of

the bank. In the course of it I had tried to analyze the potential of health insurance

policies in the UBI branches of India as a whole. And have given the projections for the

next three years in conservative and aggressive case scenario.

The methodology adopted has been kept very flexible for the sake of simplicity.


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INTRODUCTION

A contract of insurance is that of utmost good faith or Uberrimae Fides, which means

that it is the duty of the proposer to make a full disclosure of all the facts to the insurer

and in the event of failure to disclose material facts, the contract can be held to be void ab

initio. The insurer is in the position of a trustee as it manages the common fund, for and

on behalf of the community of policyholders.

The business of insurance is to

(a) Bring together persons with common insurance interests,

(b) Collect the share or contribution (called premium) from all of them, and

(c) Pay out compensations (called claims) to those who suffer loss.

In India, insurance business is conducted as life and non-life (general).

Life Insurance products : Life Insurance means some guarantee to the life. These are

products which act as a kind of investment for the policy holder. The insurance policy

have a fixed tenure over which the policy holder pays the premium, at the time of

maturity he gets back the insured amount which is equal to the premium he paid

compounded at some rate. The insured amount is reimbursed only at the maturity time

and not before that.

General Insurance products : The non life insurance is also called general insurance.

General insurance, as the name suggests, covers all other aspects of economic activity,

assets/ property, vehicle, and certain personal insurance like Health & personal accident

to name a few . They basically compensate against financial loss that may arise to

property, Vehicle, self, accidental death etc due to unforeseen reasons, though it does not

cover loss arising out of speculation or business/ trade related losses. The business of

General insurance is related to the protection of the economic values of the assets.

Insurance companies are called insurers.


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OBJECTIVES OF THE STUDY

The objectives of the study are-

To study the functional aspects of Bancassurance.

To gain knowledge about various insurance policies

Comparison of some of the plans offered by the company with some of its

competitors and with benchmark indices.

To gain knowledge about the operational/functional aspects of general insurance

business.

To find potential of retail product market

To see what are the challenges in the non life insurance business in public sector

banks.

Suggest the ways by which the loopholes could be eliminated.


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CONCEPTS/MODELS INTRODUCED IN THE STUDY

Principle of Utmost Good Faith orUberrimae Fides- This means that it is assumed

that the information disclosed in the proposal form is correct. If found to be incorrect

the contract would be void ab initio.

Principle of Insurable Interest- It means that the proposer must have a stake in the

continuance of the subject matter insured and could suffer a loss if the risk occurs.

Concept of Underwriting- The process of verifying the level of risk in each newentrant and determining the terms of admission is called selection or

underwriting.

Principle of Indemnity- Insurance is meant to compensate losses and the mechanism

of insurance cannot be used to make a profit. This is the principle of indemnity as a

claim cannot exceed the amount of loss incurred.

Principle of Affordable Premium- If the likelihood of an insured event is so high, or

the cost of the event so large, that the resulting premium is large relative to the

amount of protection offered, it is not likely that anyone will buy insurance, even if

on offer. Further, as the accounting profession formally recognizes in financial

accounting standards, the premium cannot be so large that there is not a reasonable

chance of a significant loss to the insurer. If there is no such chance of loss, the

transaction may have the form of insurance, but not the substance.


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HISTORY OF INSURANCE

Insurance sector in India is one of the booming sectors of the economy and is growing at

the rate of 15-20 per cent annum. Together with banking services, it contributes to about

7 per cent to the country's GDP. The origin of life insurance in India can be traced back

to 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. In

1912, insurance regulation formally began with the passing of Life Insurance Companies

Act and the Provident Fund Act.

By 1938, there were 176 insurance companies in India. But a number of frauds during

1920s and 1930s tainted the image of insurance industry in India. In 1938, the first

comprehensive legislation regarding insurance was introduced with the passing of

Insurance Act of 1938 that provided strict State Control over insurance business.

Insurance sector in India grew at a faster pace after independence. In 1956, Government

of India brought together 245 Indian and foreign insurers and provident societies under

one nationalized monopoly corporation and formed Life Insurance Corporation (LIC) by

an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 crore. The

(non-life) insurance business/general insurance remained with the private sector till 1972.

There were 107 private companies involved in the business of general operations and

their operations were restricted to organized trade and industry in large cities. TheGeneral Insurance Business (Nationalization) Act, 1972 nationalized the general

insurance business in India with effect from January 1, 1973. The 107 private insurance

companies were amalgamated and grouped into four companies: National Insurance

Company, New India Assurance Company, Oriental Insurance Company and United

India Insurance Company. These were subsidiaries of the General Insurance Company

(GIC).

In 1993, the first step towards insurance sector reforms was initiated with the formation

of Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N.

Malhotra. The committee was formed to evaluate the Indian insurance industry and

Insurance sector in India was liberalized in March 2000 with the passage of the Insurance

Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for


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private players and allowing foreign players to enter the market with some limits on

direct foreign ownership. There is a 26 percent equity cap for foreign partners in an

insurance company. There is a proposal to increase this limit to 49 percent. The opening

up of the insurance sector has led to rapid growth of the sector. The potential for growth

of insurance industry in India is immense as nearly 80 per cent of Indian population is

without life insurance cover while health insurance and non-life insurance continues to be

well below international standards recommend its future direction with the objective of

complementing the reforms initiated in the financial sector.

Insurance industry in India is governed by Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972,

Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related

Acts. The origin of life insurance in India can be traced back to 1818 with the

establishment of the Oriental Life Insurance Company in Calcutta. In 1912, insurance

regulation formally began with the passing of Life Insurance Companies Act and the

Provident Fund Act.

The insurance sector in India has come a full circle from being an open competitive

market to nationalisation and back to a liberalised market again. Tracing the

developments in the Indian insurance sector reveals the 360-degree turn witnessed over aperiod of almost two centuries.

The business of life insurance in India in its existing form started in India in the year

1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.


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1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalised. LIC formed by an Act of Parliament, viz. LIC

Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the

Triton Insurance Company Ltd., the first general insurance company established in

the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all

classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the

general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National

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

Insurance Company Ltd. and the United India Insurance Company Ltd. GIC

incorporated as a company.


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INSURANCE MARKET IN INDIA

The insurance market cannot be understood except in context on its history on

liberalization and nationalization. A reform in Indians non life insurance market which

was nationalized in 1972 has progressed substantially and has received an additional

boost with the de-tariffing of the Insurance Business. Non life premium has increased

106% since initial liberalization in 2000 and has been constantly outperforming the

global growth.

Fig. 1. Showing the growth of the non life insurance business over last five years.

There are 3 types of players in the insurance market.

Public sector undertakings (PSUs)

The HO of four public sector insurers is located in the 4 major cities. The four major

PSUs currently operating in the Indian general insurance market: National (Calcutta);

Oriental (Delhi); United India (Madras); New India (Bombay). In practice, the PSUs tend

to focus their efforts on maintaining a strong status and market position within their local

region rather than competing with one another. New India is the most successful of the

PSUs.

0

50

100

150

200

250

1 2 3 4 5 6

World

India


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The PSUs have the following common challenges:

Sales focus

Poor systems

Poor claims paying record

Staff leakage

Exposure to motor business

Fig. 2. Showing the breakup of the type of policies sold by PSUs

Private companiesJV

Fast growing private companies are growing fast are generally run by experienced

Indian managers and are strongly supported by foreign expertise. They are steadily

building their customer base and, over time, they are expected to acquire an ever larger

share of the market their share currently stands at 34.6%. Interviews in both London and

India revealed that the new private insurers collectively exhibited a number of strengths,

these included:

Small and flexible

Good staff, system, processes and data

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14

14

10

54

3

2

2

PSUMotor OD

Fire

PA & Health

Motor TP

Miscellaneous

Engineering

Marine Cargo

Maine Hull

Liability

Aviation


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Greater focus on underwriting

Strong claims paying reputation

Product focus

Fig. 3. Showing the breakup of the type of policies sold by private companies.

Foreign players

Foreign insurers participation in the Indian non-life insurance businesses currently

restricted to a 26% stake in a joint-venture vehicle with an Indian company. Even with

this relatively low level of foreign participation, many of the worlds largest insurers

(such as AIG, Allianz and RSA) have already entered the market. Despite their

disadvantaged position, foreign capital providers have been able to influence strategy,

product focus and speed of growth. As a result of this influence, there are growing

differences between private companies.

30

2316

5

8

7

43 3

1

Private Companies Motor ODFire

PA & Health

Motor TP

Miscellaneous

Engineering

Marine Cargo

Maine Hull

Liability

Aviation


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Fig .4. Showing the sector wise and company wise percentage of insurance business

done.

Fig. 5. Showing the product category wise breakup between public sector and privatesector.

19.4

15 14.6 13.912.3

6.9

4.83.3 3 2.3

1.2 0.82.4

0.1

2.4

0

5

10

15

20

25

27

19

14 14

10

5 4 3 2 2

30

23

16

58 7

4 3 3

10

5

10

15

20

25

30

35

PSU

Private


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The future of the insurance can be considered very bright for some while dull for

others. But in distant future definitely it is going to last long. The industry will

keep growing as insurance has become the essential part of ones attitude of

decreasing the dispersing risk and giving away the burden to insurance company.

Fig.6. Showing the class wise projection for 2010.

0

5

10

15

20

25

30

classwise projection for 2010

2006

2010


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DISTRIBUTION CHANNELS

Traditionally, insurance products were promoted and sold principally through agency

systems only. The reliance of insurance industry was totally on the agents. Moreover

with the monopoly of public sector insurance companies there was very slow growth in

the insurance sector because of lack of competition. The need for innovative distribution

channels was not felt because all the companies relied only upon the agents and

aggressive marketing of the products was also not done. But with new developments in

consumers behaviours, evolution of technology and deregulation, opening up of the

insurance sector and increased competition has speeded up the development of new

distribution channels rapidly in recent years.

The various distribution channels are:

Career Agents: Career Agents are full-time commissioned sales personnel holding

an agency contract. They are generally considered to be independent contractors.

Consequently an insurance company can exercise control only over the activities of

the agent which are specified in the contract.

Special Advisers: Special Advisers are highly trained employees usually belonging

to the insurance partner, who distribute insurance products to the bank's corporate

clients. The Clients mostly include affluent population who require personalised and

high quality service. Usually Special advisors are paid on a salary basis and they

receive incentive compensation based on their sales.

Salaried Agents: These are similar to career agents, the only difference is in terms of

their remuneration is that they are paid on a salary basis and career agents receive

incentive compensation based on their sales.

Bank Employees / Platform Banking: Platform Bankers are bank employees who

spot the leads in the banks and gently suggest the customer to walk over and speak

with appropriate representative within the bank. The platform banker may be a teller

or a personal loan assistant. A restriction on the effectiveness of bank employees in


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generating insurance business is that they have a limited target market, i.e. those

customers who actually visit the branch during the opening hours.

Corporate Agencies and Brokerage Firms: There are a number of banks who

cooperate with independent agencies or brokerage firms while some other banks have

found corporate agencies. The advantage of such arrangements is the availability of

specialists needed for complex insurance matters and through these arrangements the

customers get good quality of services.

Direct Response: In this channel no salesperson visits the customer to induce a sale

and no face-to-face contact between consumer and seller occurs. The consumer

purchases products directly from the bancassurer by responding to the company's

advertisement, mailing or telephone offers. This channel can be used for simple

packaged products which can be easily understood by the consumer without

explanation.

Internet: Internet banking is already securely established as an effective and

profitable basis for conducting banking operations. Banc assurers can feel confident

that Internet banking will also prove an efficient vehicle for cross selling of insurance

savings and protection products. Functions requiring user input (check ordering,

what-if calculations, and credit and account applications) should be immediately

added with links to the insurer. Such an arrangement can also provide a vehicle for

insurance sales, service and leads.

E-Brokerage: Banks can open or acquire an e-Brokerage arm and sell insurance

products from multiple insurers. The changed legislative climate across the world

should help migration of Bancassurance in this direction. The advantage of this

medium is scale of operation, strong brands, easy distribution and excellent synergy

with the internet capabilities.

Outside Lead Generating Techniques: One last method for developing

Bancassurance eyes involves "outside" lead generating techniques, such as seminars,

direct mail and statement inserts. Great opportunities await Bancassurance partners

today and, in most cases, success or failure depends on precisely how the process is

developed and managed inside each financial institution.


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ABOUT BAGIC

Parent companies: Bajaj Auto and Allianz SE

Bajaj Auto

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches

over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers),

home appliances, lighting, iron and steel, insurance, travel and finance.

The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two-

and three- wheeler manufacturer and the Bajaj brand is well-known across several

countries in Latin America, Africa, Middle East, South and South East Asia.

The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965. He

is one of India's most distinguished business leaders and internationally respected for his

business acumen and entrepreneurial spirit.

Forth largest 2 & 3 wheeler manufacturer in the world

21 million+ vehicles on the roads across the globe.

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

The turnover of the company stands at Rs. 46.16 billion.

Allianz SE

The Allianz Group is one of the leading integrated financial services providers

worldwide.

On the insurance side, Allianz is the market leader in the German market and has a strong

international presence

In 2006 Allianz SE, the parent company, Allianz SE is headquartered in Munich,

Germany.


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Allianz SE shares are traded on all German stock exchanges as well as in London,

Zurich, Paris and Milan.

11th

largest corporation in the world

Allianz became the first German financial services provider to have its shares listed

on the New York Stock Exchange, where they have been trading in the form of

American Depositary Receipts (ADR).

Allianz is also one of the world's largest asset managers, with third-party assets of

703 billion euros under management at year end 2008.

The first company in the Dow Jones EURO STOXX 50 Index to adopt the legal form

of a Societas Europaea, which is a new European legal form for stock corporations.

50% of global business from Life Insurance, close to 60 million lives insured globally

Established in 1890, 110 yrs of Insurance expertise

More than 70 countries, 155,000 employees worldwide and 75 million customers

In fiscal 2008 the Allianz Group achieved total revenues of over 92.5 billion euros

Insurance to almost half of the Fortune 500 companies.

BAJAJ ALLIANZ

Bajaj Allianz Life Insurance Company Limited

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

conglomerates- , Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the

world and Allianz AG, one of the world's largest insurance companies.

Bajaj Allianz Life Insurance

Is the fastest growing private life insurance company in India.

Currently has over 3,00,000 satisfied customers


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We have customer care centers in 155 cities with 28000 Insurance Consultant

providing the finest customer service.

One of India's leading private life insurance companies

Bajaj Allianz General Insurance Company (BAGIC)

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj

Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both

enjoy a reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development

Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General

Insurance business (including Health Insurance business) in India. The Company has an

authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the

remaining 26% is held by Allianz, SE.

Bajaj Allianz today has a countrywide network connected through the latest technology

for quick communication and response in over 200 towns spread across the length and

breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the

offices are interconnected with the Head Office at Pune.

As on 31st March 2008, Bajaj Allianz General Insurance

maintained its premier position in the industry by garnering a premium income of

Rs. 2578 crore

achieving a growth of 43 % over the last year.

Bajaj Allianz has made a profit before taxes of Rs. 167 crore

became the first company to cross the Rs.100 crores mark in profit after tax by

generating Rs. 105 crores.


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In the first quarter of 2008-09, the company garnered a gross premium of Rs.733.53

crores against Rs.573.73 core last year for the same period registering a growth of

28%.

Bajaj Allianz has received "iAAA rating, from ICRA Limited, an associate of

Moody's Investors Services, for Claims Paying Ability.This rating indicates highest

claims paying ability and a fundamentally strong position.


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THE CONCEPT OF BANCASSURANCE

Bancassurance is a system of distribution of insurance products through branches or other

distribution channels of banks. Its a recent example of diversification which originated

in france and is catching up popularity in the whole of asia as well. Cross selling the need

of the day and companies strive to diversify their product portfolio. Banks too are not

behind in accepting this strategy. They moved from the classical model of deposit taking

and credit disbursal and have begun to offer a wide range of products and services like

securities, mutual funds, insurance etc. this phenomenon of universal banking leverage

upon the existing network of the bank.

Modus operandi of Bancassurance

There are various models by which Bancassurance operate internationally. Bancassurance

can operate by means of marketing tie ups or can also operate through joint ventures or

strategic alliances.

I. Structural Classificationa) Referral Model

Banks intending not to take risk could adopt referral model wherein they merely

part with their client data base for business lead of commission. The actualtransaction with the prospective client in referral model is done by the staff of the

insurance company either at the premises of the ban0k or elsewhere. Referral model

is nothing but a simple arrangement, wherein the bank, while controlling access to the

clients data base, parts with only the business leads to the agents/ sales staff of

insurance company for a referral fee or commission for every business lead that was

passed on. In fact a number of banks in India have already resorted to this strategy to

begin with. This model would be suitable for almost all types of banks including the

RRBs /cooperative banks and even cooperative societies both in rural and urban.

There is greater scope in the medium term for this model. For, banks to begin with

can resort to this model and then move on to the other models.


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b) Corporate Agency

The other form of non-risk participatory distribution channel is that of Corporate

Agency, wherein the bank staff as an institution acts as corporate agent for the

insurance product for a fee/commission. This seems to be more viable and

appropriate for most of the mid-sized banks in India as also the rate of commission

would be relatively higher than the referral arrangement. This, however, is prone to

reputational risk of the marketing bank. There are also practical difficulties in the

form of professional knowledge about the insurance products. This could, however,

be overcome by intensive training to chosen staff, packaged with proper incentives in

the banks coupled with selling of simple insurance products in the initial stage. This

model is best suited for majority of banks including some major urban cooperative

banks because neither there is sharing of risk nor does it require huge investment in

the form of infrastructure and yet could be a good source of income. This model of

bancassurance worked well in the US, because consumers generally prefer to

purchase policies through broker banks that offer a wide range of products from

competing insurers.

c) Insurance as Fully Integrated Financial Service/ Joint ventures

Apart from the above two, the fully integrated financial service involves much more

comprehensive and intricate relationship between insurer and bank, where the bank

functions as fully universal in its operation and selling of insurance products is just

one more function within. This includes banks having wholly owned insurance

subsidiaries with or without foreign participation. The great advantage of this

strategy being that the bank could make use of its full potential to reap the benefit of

synergy and therefore the economies of scope. This may be suitable to relatively

larger banks with sound financials and has better infrastructure. As per the extant

regulation of insurance sector the foreign insurance company could enter the Indian

insurance market only in the form of joint venture, therefore, this type of

Bancassurance seems to have emerged out of necessity in India to an extent. There is


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great scope for further growth both in life and non-life insurance segments as GOI is

reported have been actively considering to increase the FDIs participation up to 49

per cent.

II. Product based classification(a)Stand-alone Insurance Products

In this case bancassurance involves marketing of the insurance products through

either referral arrangement or corporate agency without mixing the insurance

products with any of the banks own products/ services. Insurance is sold as one more

item in the menu of products offered to the banks customer, however, the products of

banks and insurance will have their respective brands too.

(b)Blend of Insurance with Bank Products

This method aims at blending of insurance products as a value addition while

promoting the banks own products. Thus, banks could sell the insurance products

without any additional efforts. In most times, giving insurance cover at a nominalpremium/ fee or sometimes without explicit premium does act as an added attraction

to sell the banks own products, e.g., credit card, housing loans, education loans, etc.

Many banks in India, in recent years, has been aggressively marketing credit and

debit card business, whereas the cardholders get the insurance cover for a nominal

fee or (implicitly included in the annual fee) free from explicit charges/ premium.

Similarly the home loans / vehicle loans, etc., have also been packaged with the

insurance cover as an additional incentive.


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III.Bank ReferralsThere is also another method called 'Bank Referral'. Here the banks do not issue the

policies; they only give the database to the insurance companies. The companies

issue the policies and pay the commission to them. That is called referral basis. In

this method also there is a win-win situation every where as the banks get

commission, the insurance companies get databases of the customers and the

customers get the benefits.

Possible integration model

Activity Staff System Facility

Sales Banks staff and

insurers staff

Banks system Banks call center

Policy

administration

Insurers staff Insurers system Shared call center

Claims Insurers staff Insurers system Shared call center

Key success factors

Bancassurance is fully embedded in the strategy of the Bank

Think Group

Integrated Distributor - Manufacturer Bancassurance model

Customer Centric


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Integrated Marketing

Suitable Products & Natural Fit

Maximize sales-capacity

Suitable Commission/Remuneration structures

Integrated Performance Management at the Point of Sale

Suitable end-to-end processes & top quality service delivery

Cost Leadership

Best Value-For-Money Product & Service Packages

Fig. 7. Bancassurance product philosophy:

Bank insurance

Environment

unique client

database

product focused on

client needs

product in harmony

with bank activities

(daily bank , lending,saving and interest)

integrated IT

systems with the

bank

simple product with

clear benefits


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Benefits of Bancassurance

To the bank

The period of 1990 witnessed stiff competitions between the financial institution and

profit margins for the banks began to shrink. A need for a new business was felt and

Bancassurance could be viewed as a rescue. Bancassurance came as a way of creating

new revenue flow and diversifying business activities. Bancassurance helps a bank

become a sort of supermarket a one stop shop for financial services where all

financial and insurance needs of a customer could be addressed. Broadening the

product range makes bank more attractive and thus increases customer satisfaction

and loyalty. Distribution costs in such a model are marginal as the existing network

and present employees are utilized to carry out the activities.

The benefits of Bancassurance to the bank could be summed up as

additional stable stream of fee based income

leveraging the customer base

Full utilization of existing network and employees

cross selling

extended financial services offering

customer centric and life cycle management

higher revenues without any additional investment

To the insurance company

Through this distribution method the insurance company significantly extends its

customer base by getting access to the banks client base. They can now reach the

customer which was otherwise difficult to approach. Diversification reduces the risk

of too much dependence on a single distribution channel. Insurance company could

leverage on the trustworthy image of the bank. The inherent cost of distribution is too

low as compared to the conventional sales representative method. A new insurance

company could easily establish itself in the market with the help of a locally

established bank.


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Benefits of Bancassurance to Insurance Company are:

customer base of the bank is readily available

ready revenue of asset business

cost of distribution is fair

widening the product range

consumer confidence in banks

economies of scale

Rural penetration

To the customer

Customer enjoys great access to all financial services from a bank that offers both

banking as well as insurance products. Since the cost of distribution is low so the

customer ultimately gets the product at a cheaper price. Payment of premium is also

simplified as premium is collected directly from the bank account.

Following are the benefits to the customer:

All insurance solutions under one roof

Free Professional advice

Solution based on buyers need

E-insurance enablers

Complementary to other bank products

Customers get the benefit of professional & unbiased advice

Customer gets the facility of a financial hyper mart.


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FUTURE SCOPE FOR BANCASSURANCE

By now, it has become clear that as economy grows it not only demands stronger and

vibrant financial sector but also necessitates providing with more sophisticated and

variety of financial and banking products and services. The outlook for Bancassurance

remains positive. While development in individual markets will continue to depend

heavily on each countrys regulatory and business environment, Bancassurers could

profit from the tendency of governments to privatize health care and pension liabilities.

India has already more than 200 million middle class population coupled with vast

banking network with largest depositors base, there is greater scope for use of

Bancassurance. In emerging markets, new entrants have successfully employed

Bancassurance to compete with incumbent companies. Given the current relatively low

Bancassurance penetration in emerging markets, Bancassurance will likely see further

significant development in the coming years.

In India the Bancassurance model is still in its nascent stages, but the tremendous

growth and acceptability in the last three years reflects green pasture in future. The

deregulation of the insurance sector in India has resulted in a phase where innovative

distribution channels are being explored. In this phase, Bancassurance has simply

outshined other alternate channels of distribution with a share of almost 25-30% of the

premium income amongst the private players.

To be fruitful, it is vital for Bancassurance to ensure that banks remain fully committed

to promoting and distributing insurance products. This commitment has to come from

both senior management in terms of strategic inputs and the operations staff who would

provide the front-end for these products. In India, the signs of initial success are already

there despite the fact that it is a completely new phenomenon. There is no doubt that

banks are set to become a significant distributor of insurance related products and

services in the years to come.


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27

THE HEALTH INSURANCE SECTOR:

Health insurance is a kind of agreement made between a person and an insurance

company. The person, or the insured, must pay a regular fee (called a premium) to the

insurance company. In return, the insurance company will pay a all or some medical

expenses needed when the insured becomes injured, ill, or otherwise hospitalized.

Health insurance is critical, especially to those living in areas where the costs of

hospitalization are high. Most developed nations offer government subsidized medical

care, which makes it less critical to have health insurance.

In the US, however, medical care is extremely expensive, and is not paid for by thegovernment. Therefore, it is wise for all Americans living in the US to have good health

insurance policies. This will protect them from the possibility of massive financial burden

which could result in the garnishing of wages and even bankruptcy.

Health insurance can be bought on an individual basis or on a group basis. Health

insurance bought on a group structure usually is through an employer, as many employers

provide health insurance coverage to their employees.

Indian health insurance sector have immense potential and scope for growth and revenue

generation.

The healthcare industry is expected to increase from its current size to 29.6 billion by

2012. By 2012 the revenue from the healthcare sector is expected to reach 6.5-7.2 % of

the GDP.


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28

Need for health insurance

The country as for now is witnessing change in demographic profile accompanied with

lifestyle diseases and increased medical expenses. This increases the potential for the

health insurance market. Another reason is the increased awareness among the people to

mitigate financial risk caused in case of major illness. Also the income levels are rising

and hence people become more inclined to spend on insurance as compared to earlier

times.

Out of the total medical expenditure 20% is govt. spend, 15 % employer spend, 1%

private/social/community insurance and the rest 64 % are the direct spending from the

pockets of the customer. This is the portion which acts as the business potential for the

insurance companies.


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29

THE POWER OF RETAIL

THE POTENTIAL FROM UNION BANK OF INDIA

The power of retail is immense. It could earn bank heavy revenue without investing a

single penny from its pocket to get the business. From a banks perspective it is a very

profitable preposition to get retail policies done as compared to loan book. This is a

totally risk free business. As compared to loan book business or the core business of the

bank the commission received against the retail insurance business goes directly to the

profit and loss account of the banks financial statement as profit. To earn this much

amount from the core business activities of the bank, the bank have to employ people and

bear the risk of default. While retail gives a direct income without incurring any expense.

Across India there are 1451 branches of union bank of India. These bank branches could

be divided into categories on the basis of scale and categories on the basis of location. On

the basis of scale it could range from scale I to scale V, while on the basis of location it

could be divided as rural, semi urban, urban and metro.

To find out the potential for business following assumptions are taken to draft the given

chart and find out the magnitude of sales:

CONSERVATIVE APPROACH

The bank branches across India have been divided scale wise and the location

wise further on.

The ticket size is the value of the policy. The ticket size varies from Rs. 1000 to

Rs. 3500.

Number of policies expected to be sold per branch ranges from 2 to 5 depending

on the location.

Renewal rate is taken to be 80%.


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30

Commission to bank is 25 %

See Table 1

Projections:

I year: Total insurance business of Rs. 110580000 cr. could fetch revenue of Rs.

27645000

II year: Total insurance business of Rs. 199044000 cr. could fetch revenue of Rs.

49761000 cr. to the bank

III year: Total insurance business of Rs. 269815200 cr. could fetch revenue of Rs.

67453800 cr. to the bank.

Fig. 8. Showing the projections for Conservative Approach

110580000

199044000

269815200

27645000

4976100067453800

0

50000000

100000000

150000000

200000000

250000000

300000000

I II III

Insurance Revenue

Banks income


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31

AGRESSIVE APPROACH

While considering the aggressive approach we will assume that bank branch

employees one dedicated employee per branch who will work for the insurance

business of the bank.

The ticket size is the value of the policy. The ticket size varies from Rs. 1000 to

Rs. 4000.

Number of policies expected to be sold per branch ranges from 3to 10 depending

on the location.

Renewal rate is taken to be 90%.

Commission to bank is 25 %

See Table 2

Projections:

I year: Total insurance business of Rs. 214980000 cr. could fetch revenue of Rs. cr.

53745000

II year: Total insurance business of Rs. 408462000 cr. could fetch revenue of Rs.

102115500 cr. to the bank

III year: Total insurance business of Rs. 582595800 cr. could fetch revenue of Rs.

145648950 cr. to the bank.


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32

Fig. 9. Showing the projections for Aggressive approach

Fig. 10. Showing the comparison of banks income between conservative and

aggressive approach

214980000

408462000

582595800

53745000102115500

145648950

0

100000000

200000000

300000000

400000000

500000000

600000000

700000000

I II III

Insurance Revenue

Banks Income

27645000

49761000

67453800

53745000

102115500

145648950

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

I II III

Conservative approach

Aggressive approach


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33

COMPARATIVE ANALYSIS OF FAMILY FLOATER POLICIES

Major players in the general insurance sector apart from Bajaj Allianz are ICICI

Lombard, National Insurance, Reliance etc. Premium rate plays a very important role in

determining the policy that a person will go for. A comparative analysis of the premium

chart will reveal the reasons of choosing of competitors insurance policies. Here

comparison have been done with ICICI Lombards family floater policy and national

insurances family floater policy

Comparison:

Feature Bajajs USSY ICICI National

Insurance

Coverage amount Rs 1 lac to Rs 5

lac (in multiples

of 1 lac)

Rs 2 lac to Rs. 4

lac (in multiples

of 1 lac)

Rs 2 lac to Rs 5

lac (in multiples

of 50000)

Waiting period for

pre-existing

diseases

Covered from 5t

continuous year of

taking the policy

- Covered from 4t

continuous claim

free year

Age 3 months to 55 yrs 5 yrs to 60 yrs 3 month to 65 yrs


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34

Number of

Empanelled

hospitals

1400 3500 Hospitals

registered as

hospital or nursing

home with the

local authorities

and are under the

supervision of a

registered and

qualified medical

practitioner.

Co payment 10 % Nil

Sublimit in

payment

No sublimit Only for cataract Sublimit are there

Health check up compulsory No need up to the

age of 55 yrs

Pre hospitalization

coverage

60 days 15 days

Post hospitalization

coverage

90 days 30 days

Time limit for

which policy could

be taken

1 year 2 years 1 year


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35

Findings:

The premium rate is too competitive. Bajajs premium is slightly above that of

national insurances but much more than that of ICICI Lombard

ICICI offers family package for 2 years which releases a person from the burden

of renewing the policy very next year and ensures business for two years for the

company.

National insurance have the advantage of getting insurance of employees of

public sector firms like KMC, etc.

Although pre hospitalization and post hospitalization coverage days are more for

Bajaj but the number of hospitals which are empanelled with national insurance is

much more than Bajajs. Bajaj has got a very diverse product range. Bajajs products as rich in features and

there are various such products which gives benefit of multiple products under

one policy at a very reasonable price.


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36

METHODOLOGY

The methodology adopted for conducting the project is basically

Face to face interaction with the customer.

Informal interviews with the branch managers.

Interacting with in-house agents and corporate agents.

A small survey was conducted to ascertain the customer profile of the bank and to

know their preferences. It also helped to find out the loopholes in the marketing

strategy of the company. This activity was done on some of the major branches of

UBI.


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37

RESULTS OF THE SURVEY

Broad street Park street Lal bazaar New market Deshopriya

park

Location Off the main

road

Main road Inside the

market

Main road Main road

Space Spacious Very

spacious

Congested Congested Spacious

Average

stay/client

10 mins. 15 mins. 15 mins. 15 mins. 10 mins.

Client

footfall

Heavy Heavy Average Very heavy Less

Bajaj

Allianz help

desk

Available Available No proper

arrangement

No proper

arrangement

No proper

arrangement

Posters and

banners

Reasonable Reasonable Very few Very few Very few

Other observations were:

No proper attention is paid on creating awareness amongst the customers by

display of posters and banners

At some branches the footfall is heavy but a company representative is not

present.

Not much help is done by the bank employees


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38

PROBLEMS OR CHALLENGES IN PUBLIC SECTOR BANKS

The problems being faced by the company in selling retail policies through public sector

banks

Problem to reach the high end customer

There are several branches where there is more number of current account then

savings account. So the walk in customers at these branches mainly consists of the

subordinates of those account holders. It becomes really difficult to reach the

account holders in such case.

Lesser awareness regarding general insurance

The tendency of inclination towards the life insurance policies is very clearly

visible in the attitude of people. Many at times fail to understand the importance

of having a general insurance policy and see it at wastage of money.

Awareness has to be increased regarding the importance of general insurance.

People should be convinced to take general insurance as a supplement to life

insurance.

It could also be made more attractive by increasing the incentives attached.

Incentives could be not only in the form of monetary benefit but otherwise aswell.

Competitors eating out share

The competition in the market is intense. Various companies are there with

competitive products.

The company should have a unique selling preposition with it to attract the

customer in this competitive scenario. The company should try to win over the

customer not on the basis of price war but actually on the basis of some add on

benefits in the policy which should have an edge over the competitors products.


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39

There should be proper focus on the market segmentation

Proper attention should be paid to smartly do the market segmentation to find out

the potential market in it. Differential strategies should be adopted for different

segments.

There are three categories of customer segments namely low income segment,

middle income segment and high income segment. The main focus should be on

the middle income segment owing to its capacity to pay and risk aversion attitude.

High income group have high level of awareness as they have access to large

amount of data still it could serve as a big potential on the basis of the USP of the

company.

Customers resistance to bear the medical examination charges for mediclaim

policies.

Most of the medical policies require an individual to have a medical checkup

done. Although this is of utmost for the business, but if customers are avoiding

the product due to this then the problem needs to be addressed

Company could offer medical checkup with the empanelled hospitals at

concessional rates. This will also ensure fair idea of the customers actual health

and help the underwriters to decide the coverage amount in a better way.

Challenge of culture and speed

Bank employees are traditionally low on motivation. Lack of sales culture itself is

bigger roadblock than the lack of sales skills in the employees. Banks are

generally used to only product packaged selling and hence selling insurance

products do not seem to fit naturally in their system.

The challenge of timely resource deployment by the BankHuman Resource Management has experienced some difficulty due to such

alliances in financial industry. Poaching for employees, increased work-load,

additional training, maintaining the motivation level are some issues that has


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40

cropped up quite occasionally. So, before entering into a Bancassurance alliance,

just like any merger, cultural due diligence should be done and human resource

issues should be adequately prioritized.

The challenge of technology and service synergies

The most common obstacles to success of Bancassurance are poor manpower

management, lack of a sales culture within the bank, no involvement by the

branch manager, insufficient product promotions, failure to integrate marketing

plans, marginal database expertise, poor sales channel linkages, inadequate

incentives, resistance to change, negative attitudes toward insurance and unwieldy

marketing strategy.

Resistance to change

Success of a Bancassurance venture requires change in approach, thinking and

work culture onthe part of everybody involved. The work force at every level areso well entrenched in their classical way of working that there is a definite threat

of resistance to any change that Bancassurance may set in. Any relocation to a

new company or subsidiary or change from one work to a different kind of work

will not be easily acceptable by the employees.


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41

RECOMMENDATIONS:

The employees of the bank should be incentivized properly and motivated to

recommend the high end customers to take policies from us.

Awareness has to be increased regarding the importance of general insurance.

People should be convinced to take general insurance as a supplement to life

insurance.

It could also be made more attractive by increasing the incentives attached.

Incentives could be not only in the form of monetary benefit but otherwise as

well.

The company should have a unique selling preposition with it to attract the

customer in this competitive scenario. The company should try to win over the

customer not on the basis of price war but actually on the basis of some add on

benefits in the policy which should have an edge over the competitors products.

There are three categories of customer segments namely low income segment,

middle income segment and high income segment. The main focus should be on

the middle income segment owing to its capacity to pay and risk aversion attitude.

High income group have high level of awareness as they have access to large

amount of data still it could serve as a big potential on the basis of the USP of the

company. Company could offer medical checkup with the empanelled hospitals at

concessional rates. This will also ensure fair idea of the customers actual health

and help the underwriters to decide the coverage amount in a better way.

There should be a proper well integrated IT support from the bank which could

provide the information of the current policies held by its account holders and the

renewal dates of the same.

Proper focus should be there on the renewals of the policy. Renewal should be

considered as important as a fresh policy.

Online issuance of policy could be introduced for all the policies


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42

The employees of the banks who are selling insurance products must be given

proper training so that they can answer to any queries of the customers and can

provide them products according to their needs.

A formal and standard agreement between these banks and the insurance

companies should be taken up and drafted by a national regulatory body. These

agreements must have necessary clauses of revenue sharing. In case of possible

conflicts, the bank management and the management of the insurance company

should be able to resolve conflicts arising in future.


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43

LIMITATIONS OF STUDY

Due to the restriction of time I had to limit my study to UBI only and could not extend it

to other public sector tie ups. Some problem was also faced while interacting with less

educated customer as language was a barrier. Moreover many people had an attitude to

avoid insurance agents so were reluctant to talk let alone buy a policy.


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44

BIBLIOGRAPHY

www.wikipedia.com

www.bajajallianz.co.in

www.thehindubusinessline.com

NewspapersThe times of India

The Hindu

Economic Times

Magazines- 1. Business Today

2. Insurance World

Company Broachers


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45

TABLES

Table 1 CONSERVATIVE APPROACH

Particulars First year Second year Third year

Number

of

Branches Scale Location

Ticket

Size

No. of

policies

per

branch

per

month

No. of

policy

per

annum

Annual

Target

per

branch

No. of

policies

Potential

for UBOI

No. of

policies Amount

No. of

policies Am

74 I Rural 1000 2 24 24000 1776 1776000 3197 3196800 4333 433

16 SU 1000 2 24 24000 384 384000 691 691200 937 936

35 Urban 2000 4 48 96000 1680 3360000 3024 6048000 4099 819

8 Metro 3000 4 48 144000 384 1152000 691 2073600 937 281

471 II Rural 1000 2 24 24000 11304 11304000 20347 20347200 27582 275

94 SU 1000 4 48 48000 4512 4512000 8122 8121600 11009 110

149 Urban 2000 5 60 120000 8940 17880000 16092 32184000 21814 436

59 Metro 3000 5 60 180000 3540 10620000 6372 19116000 8638 259

107 III Rural 1000 2 24 24000 2568 2568000 4622 4622400 6266 626

110 SU 1000 5 60 60000 6600 6600000 11880 11880000 16104 161

132 Urban 2000 5 60 120000 7920 15840000 14256 28512000 19325 386

120 Metro 3000 5 60 180000 7200 21600000 12960 38880000 17568 527

4 IV Rural 1000 3 36 36000 144 144000 259 259200 351 351

6 SU 1000 5 60 60000 360 360000 648 648000 878 878

22 Urban 2500 5 60 150000 1320 3300000 2376 5940000 3221 805

26 Metro 3500 5 60 210000 1560 5460000 2808 9828000 3806 133

2 V Urban 3000 5 60 180000 120 360000 216 648000 293 8784

16 Metro 3500 5 60 210000 960 3360000 1728 6048000 2342 819

1451 110580000 199044000 269

Banks

share 27645000 49761000 674


46/51

46

Table 2 AGGRESSIVE APPROACH

Particulars First year Second year Third year

Number

of

Branches Scale Location

Ticket

Size

No. of

policies

per

branch

per

month

No. of

policy

annually

Annual

Target

per

branch

No. of

policies

Potential

for UBOI

Second

year

No. of

policies Amount

Third

year

No. of

policies Am

74 I Rural 1000 3 36 36000 2664 2664000 5062 5061600 7219 72

16 SU 1500 3 36 54000 576 864000 1094 1641600 1561 23

35 Urban 2500 5 60 150000 2100 5250000 3990 9975000 5691 14

8 Metro 3500 6 72 252000 576 2016000 1094 3830400 1561 54

471 II Rural 1000 3 36 36000 16956 16956000 32216 32216400 45951 45

94 SU 1500 5 60 90000 5640 8460000 10716 16074000 15284 22

149 Urban 3000 6 72 216000 10728 32184000 20383 61149600 29073 87

59 Metro 3500 7 84 294000 4956 17346000 9416 32957400 13431 47

107 III Rural 1000 4 48 48000 5136 5136000 9758 9758400 13919 13

110 SU 1500 6 72 108000 7920 11880000 15048 22572000 21463 32

132 Urban 3000 8 96 288000 12672 38016000 24077 72230400 34341 10

120 Metro 3500 9 108 378000 12960 45360000 24624 86184000 35122 12

4 IV Rural 1000 4 48 48000 192 192000 365 364800 520 52

6 SU 1000 6 72 72000 432 432000 821 820800 1171 11

22 Urban 3500 8 96 336000 2112 7392000 4013 14044800 5724 20

26 Metro 4000 10 120 480000 3120 12480000 5928 23712000 8455 33

2 V Urban 3500 8 96 336000 192 672000 365 1276800 520 18

16 Metro 4000 10 120 480000 1920 7680000 3648 14592000 5203 20

1451 214980000 408462000 58

Bank's

share 53745000 102115500 14


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47

PREMIUM TABLE FOR BAJAJS USSY PACKAGE

scheme details age band

3m-25yrs 26-40yrs 41-45yrs 46-55yrs

Individual 1448 1672 2131 3176

two individuals 1883 2336 3188 5069

option 1 2 adults+1 child 2810 3334 4257 6207

2 adults+2 child 3736 4331 5323 7344

2 adults+3 child 4670 5327 6287 8446

Individual 2705 3152 4112 6351

two individuals 3517 4405 6152 10138


2 adults+2 child 6977 8128 9538 14384

2 adults+3 child 8722 9997 11445 16542

Individual 3832 4472 5794 7959

two individuals 4983 6249 8668 12735


2 adults+2 child 8679 10516 12305 18636

2 adults+3 child 10848 12935 14766 21431

Individual 5024 5920 7477 11853

two individuals 6532 8271 11183 18916


2 adults+2 child 10800 13176 14474 244793

2 adults+3 child 13500 16207 17369 28512

Individual 6088 7112 9159 14454

two individuals 7915 9936 13698 23206


2 adults+2 child 15687 18298 22648 34666

2 adults+3 child 19609 22506 27178 39866


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48

PREMIUM TABLE FOR ICICI LOMBARD

FAMILY FLOATER HEALTH INSURANCE POLICY PREMIUM TABLE (12 months EMI without any

extra charges#)

Monthly Premium for 1 Year plans in Rupees

Plan

Details

Plan A

Individua

l

Plan B

2 Adults

Plan C

2 Adults & 1 Kids

Plan D

2 Adults & 2 Kids

Plan E

1 Adult & 1

Kid

Plan F

1 Adult & 2

Kids

Age of

senior

most

family

membe

r

2

Lac

3

Lac

2

La

c

3

Lac

4

Lac

2

Lac

3

Lac

4

Lac

2

Lac3Lac

4

Lac

2

La

c

3

La

c

4

Lac

2

La

c

3

La

c

4

Lac

5 - 18

yrs.163 188 - - - - - - - - - - - - - - -

19 - 35

yrs.220 254

33

0381 571 428 493 742 526 606 912

28

9

33

3502

36

1

41

5626

36 - 45

yrs.276 307

41

4460 642 512 572 812 610 685 983

33

5

37

7540

40

3

45

5662

46 - 55

yrs. 491 546

78

6 874

1,22

3 884 986

1,39

3 982

1,09

9

1,56

4

54

0

60

4 860

58

9

66

2 952

56 - 60

yrs.669

96

3

1,07

0

1,49

8

1,06

1

1,18

3

1,66

8

1,15

9

1,29

5

1,83

9

63

7

71

2

1,01

1

67

7

76

0

1,09

0

FAMILY FLOATER HEALTH INSURANCE POLICY PREMIUM TABLE (12 months EMI without any

extra charges#)

Monthly Premium for 2 Year plans in Rupees

Plan

Details

Plan G

Individu

al

Plan H

2 Adults

Plan I

2 Adults & 1

Kids

Plan J

2 Adults & 2

Kids

Plan K

1 Adult & 1 Kid

Plan L

1 Adult & 2

Kids

Age of 2 3 2 3 4 2 3 4 2 3Lac 4 2 3 4 2 3 4


49/51

49

senior

most

family

memb

er

La

c

Lac Lac Lac Lac Lac Lac Lac Lac Lac Lac Lac Lac Lac Lac Lac

5 - 18

yrs.

29

3338 - - - - - - - - - - - - - - -

19 - 35

yrs.

39

7457 595 685

1,02

8771 888

1,33

5947

1,09

1

1,64

1521 600 903 649 748

1,12

7

36 - 45

yrs.

49

7552 745 828

1,15

5921

1,03

0

1,46

2

1,09

7

1,23

3

1,76

9603 678 973 725 819

1,19

1

46 - 55

yrs.

93

4

1,03

7

1,49

4

1,66

0

2,32

4

1,68

0

1,87

4

2,64

7

1,86

5

2,08

7

2,97

1

1,02

6

1,14

8

1,63

4

1,11

8

1,25

8

1,80

9

56 - 60

yrs.

1,33

8

1,92

6

2,14

0

2,99

6

2,12

2

2,36

5

3,33

7

2,31

7

2,59

0

3,67

8

1,27

5

1,42

5

2,02

3

1,35

4

1,52

0

2,18

0


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50

INSURANCE PREMIUM CHART FOR NATIONAL INSURANCE

Up to 35 years

Sum

Insured

Self Spouse 1st

Child 2nd

Child 2 Adults + 2

Kids

2Adults +

1 Kid

(Rs.) 25% 20% 20%

2,00,000 2469 617 494 494 4074 3580

2,50,000 2956 739 591 591 4877 4286

3,00,000 3444 861 689 689 5683 4994

3,50,000 3870 968 774 774 6386 5612

4,00,000 4297 1074 859 859 7089 6230

4,50,000 4723 1181 945 945 7794 6849

5,00,000 5151 1288 1030 1030 8499 7469

36 to 45 years

Sum

Insured

Self Spouse 1st

Child 2nd

Child 2 Adults + 2

Kids

2Adults +

1 Kid

(Rs.) 30% 20% 20%

2,00,000 2683 805 537 537 4561 4025

2,50,000 3213 964 643 643 5462 4820

3,00,000 3743 1123 749 749 6363 56153,50,000 4207 1262 841 841 7152 6311

4,00,000 4670 1401 934 934 7939 7005

4,50,000 5135 1541 1027 1027 8730 7703

5,00,000 5598 1679 1120 1120 9517 8397

46 to 50 years

Sum

Insured

Self Spouse 1st

Child 2nd

Child 2 Adults + 2

Kids

2Adults +

1 Kid

(Rs.) 35% 20% 20%

2,00,000 4290 1502 858 858 7508 6650

2,50,000 5200 1820 1040 1040 9099 8060

3,00,000 6108 2138 1222 1222 10690 9468


51/51

3,50,000 6942 2430 1388 1388 12149 10760

4,00,000 7776 2722 1555 1555 13608 12053

4,50,000 8610 3013 1722 1722 15067 13345

5,00,000 9444 3305 1889 1889 16526 14637

51 to 55 years

Sum

Insured

Self Spouse 1st

Child 2nd

Child 2 Adults + 2

Kids

2Adults +

1 Kid

(Rs.) 40% 20% 20%

2,00,000 4485 1794 897 897 8073 7176

2,50,000 5436 2174 1087 1087 9785 8698

3,00,000 6386 2554 1277 1277 11495 10218

3,50,000 7258 2903 1452 1452 13064 116124,00,000 8129 3252 1626 1626 14633 13007

4,50,000 9001 3600 1800 1800 16202 14402

5,00,000 9873 3949 1975 1975 17771 15796

56 to 60 years

Sum

Insured

Self Spouse 1st

Child 2nd

Child 2 Adults + 2

Kids

2Adults +

1 Kid

(Rs.) 40% 20% 20%

2,00,000 5127 2051 1025 1025 9228 8203

2,50,000 6236 2495 1247 1247 11226 9978

3,00,000 7346 2938 1469 1469 13223 11754

3,50,000 8375 3350 1675 1675 15076 13401

4,00,000 9406 3762 1881 1881 16931 15049

4,50,000 10436 4175 2087 2087 18785 16698

5,00,000 11466 4586 2293 2293 20638 18345

bajaj final sip report

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