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  • 8/8/2019 shrish pratap singh



    Comparative Study of ULIP Products



    Submitted in Partial Fulfillment of the Requirement forMaster of Business Administration

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    There are number forces that make marketing an endlessly changing

    activity. The constantly activity sociological, psychological and political

    environment may represent the uncontrollable marketing factors. To

    understanding these factors in better way marketing research is of most


    This Project Report has been completed in Partial fulfillment of my

    Management Program, Master of Business Administration (MBA) in

    the company Tata-AIG Life Insurance. The objective of my project was

    Comparative Study of ULIP Products of Tata-AIG Life Insuranceis the name which is working as one of the best private insurance

    company in insurance sector. With such large population and the

    untapped market of populations insurance happens to be very big

    opportunity in India. Today it stands as a business growing at the rate of

    15-20 percent annually. Together with banking services, It adds about 7

    percent to the countrys GDP. In spite of all this growth the statistics of

    the penetration of the insurance in the country is very poor. Nearly 70%

    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.

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    On the successful completion of this project I would like to express my

    gratitude to all the people who have helped me throughout the project


    At first, I owe my debt of thanks to Tata-AIG Life, which gave me an

    opportunity to do this project work.

    I wish to extend my deep and sincere gratitude to KRISHAN MURARI

    who provided me with their guidance from day one and also helped me

    whole heartedly to achieve the ultimate goal of the project.

    I am also indebted to the Institute, EXCEL SCHOOL OF BUSINESS

    CHHTA MATHURAand its staff members for providing me with thislearning opportunity.

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    Chapter 1. Introduction 01

    1.1 Object of the Project 02

    1.2 Objective of the Study 03

    1.3 Scope of the Study 04

    1.4 Limitation of the Study 05

    Chapter 2. Industry Profile 06

    2.1 Insurance Sector 07-16

    2.2 Important Milestone In Life Insurance in INDIA) 17-18

    2.3 Current Scenario of Insurance Industry 19-20

    2.4 Swot analysis of Insurance industry 21-23

    2.5 Knowledge Management 24-27

    2.6 Unit Linked Insurance Plans (ULIPs) 28-33

    How Does ULIP wWork? (Chart) 34

    Chapter 3 Company Profile 35

    3.1 About the Company 36-38

    3.2 Company Mission 39-40

    3.3 Organisation Chart 41

    3.4 Products of Organisation 42

    3.5 ULIP Products 43-44

    3.6 Competitors of Tata-AIG Life Insurance 45-55

    Chapter 4 Comparative Study of ULIP Produt Of Tata-AIG 56

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    4.2 Comparative chart 67-68

    Chapter 5 Research Methodology 69-70

    5.1 Data Collection 71-73

    5.2 Data analyzing 72-78

    5.3 Interpretation 79

    5.4 Limitation of Research Methodology 80

    Chapter 6 Annexure 81

    6.1 Conclusion 82-84

    6.2 Recommendation 85-88

    6.3 Executive Summary 89

    6.4 Glossary 90-97

    6.5Bibliography 98

    6.6 Questionnaire99-


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    Overall, the life insurance and pension sector is set for rapid changes and

    growth in the years ahead. Delivering service, building trust and being

    innovative are key areas in which any company will have to excel in order

    to do well in the long road ahead. Different companies will take different

    approaches and it would be myriad of solutions that will be found to

    delight the Indian customer.

    During the first part, I was given complete classroom training about the

    various unit linked as well as the traditional plans and solutions which the

    company offers.

    Later, Market Research was done through various activities and tele-

    calling which are discussed further in the report. Activities led to practical

    exposure and taught me the aspects of customer dealing.

    Finally, interesting conclusions were drawn out of the data collected

    regarding the Awareness of Financial Planning among the people in

    todays environment.

    It was great experience because selling an insurance product

    demands a great deal of confidence and product knowledge.

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    Every study has certain objective there is no study without the objective,

    because objective are the purpose of study. No study serves any existence

    without its significant thus; they are the backbone on which the body

    study stands.

    To find out the awareness of TALIC product among thecustomers.

    To find out the factors affecting the purchase of TALIC products.

    To find out from where the customer prefer to buy the TALICproducts.

    To find out which bank is being preferred by the customer.

    To find out the purpose of taking TALIC products.

    To find out the better funds (ULIP) available in the marketthrough comparative study of the funds ( NAV ) of HDFC SLIC,Bajaj Allianz, Birla Sunlife, ICICI Prudential etc


    To be one of the top private life insurers in terms of new business

    premium& profitability.

    To provide products with maximum values to customers in

    accordance & consistent with Govt rules/ policies.

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    To create strong position in field of insurance sector &

    development of new products.

    Ensure to retain staffs that are key resource.

    To further enhance the distribution network for provide the

    service to customers throughout the country through the

    expansion of network.

    Scope of the Project

    This project gives interesting and challenging task to acquire the

    knowledge of Mutual Funds and ULIP product with the help of

    different plans and schemes of TATA AIG.

    This project gives information to the individual investor about the

    ULIP product and guides them while taking any product of TATA AIG.

    This report provides the sufficient knowledge about the product

    portfolio and its asset allocation.

    Analyzing various funds and their growth.

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    With largest number of life insurance policies in force in the world, Insurance

    happens to be a mega opportunity in India. Its a business growing at the rate

    of 15-20 per cent annually.

    Together with banking services, it adds about 7 percent to the countrys

    GDP .In spite of all this growth the statistics of the penetration of the

    insurance in the country is very poor. Nearly 80 per cent of Indian population

    is without life insurance cover while health insurance and non-life insurance

    continues to be below international standards. And this part of the population

    is also subject to weak social security and pension systems with hardly any

    old age income security. This it-self is an indicator that growth potential for

    the insurance sector is immense.

    Historical Perspective

    The insurance came to India from UK; with the establishment of the Oriental

    Life insurance Corporation in 1818.The Indian life insurance company act

    1912 was the first statutory body that started to regulate the life insurance

    business in India. By 1956 about 154 Indian, 16 foreign and 75 provident

    firms were been established in India. Then the central government took overthese companies and as a result the LIC was formed. Since then LIC has

    worked towards spreading life insurance and building a wide network across

    the length and the breath of the country.

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    Important milestones in the life insurance business in India:

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

    to regulate the life insurance business.

    1956: 245 Indian and foreign insurers and provident societies were taken

    over by the central government and nationalized. LIC formed by an Act of

    Parliament- LIC Act 1956- with a capital contribution of Rs.5 cr. from the

    Government of India.

    Important milestones in the general insurance business in India

    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


    1972: The general insurance business in India nationalized through The

    General Insurance Business (Nationalization) Act, 1972 with effect from 1st

    January 1973. 107 insurers amalgamated and grouped into four companies-

    the National Insurance Company Limited, the New India Assurance Company

    Limited, the Oriental Insurance Company Ltd. and the United India Insurance

    Company Ltd. GIC incorporated as a company.

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    Insurance Sector Reforms

    Prior to liberalization of Insurance industry, Life insurance was

    monopoly of LIC.

    In 1993, Malhotra Committee headed by former Finance Secretary and RBI

    Governor R.N. Malhotra was formed to evaluate the Indian insurance industry

    and recommend its future direction. The Malhotra committee was set up with

    the objective of complementing the reforms initiated in the financial sector.

    The reforms were aimed at creating a more efficient and competitive financial

    system suitable for the requirements of the economy keeping in mind the

    structural changes currently underway and recognizing that insurance is an

    important part of the overall financial system where it was necessary to

    address the need for similar reforms. In 1994, the committee submitted the

    report and some of the key recommendations included:


    Government stake in the insurance Companies to be brought down to 50%.

    Government should take over the holdings of GIC and its subsidiaries so that

    these subsidiaries can act as independent corporations.


    Private Companies with a minimum paid up capital ofRs.1 billion should be

    allowed to enter the sector. No Company should deal in both Life and General

    Insurance through a single entity. Foreign companies may be allowed to enter

    the industry in collaboration with the domestic companies.

    Regulatory Body

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    The Insurance Act should be changed. An Insurance Regulatory body should

    be set up. Controller of Insurance- a part of the Finance Ministry- should be

    made independent


    Mandatory Investments of LIC Life Fund in government securities to be

    reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than

    5% in any company (there current holdings to be brought down to this level

    over a period of time)

    Customer Service

    LIC should pay interest on delays in payments beyond 30 days. Insurance

    companies must be encouraged to set up unit linked pension plans.

    Computerization of operations and updating of technology is to be carried out

    in the insurance industry


    The insurance industry provides protection against financial losses resulting

    from a variety of perils. By purchasing insurance policies, individuals and

    businesses can receive reimbursement for losses due to car accidents, theft of

    property, and fire and storm damage; medical expenses; and loss of income

    due to disability or death. The insurance industry consists mainly of

    insurance carriers (or insurers) and insurance agencies and

    brokerages. In general, insurance carriers are large companies that provideinsurance and assume the risks covered by the policy. Insurance agencies

    and brokerages sell insurance policies for the carriers.

    Insurance companies assume the risk associated with annuities and insurance

    policies and assign premiums to be paid for the policies. In the policy, the

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    companies states the length and conditions of the agreement, exactly which

    losses it will provide compensation for, and how much will be awarded.

    The premium charged for the policy is based primarily on the amount to be

    awarded in case of loss, as well as the likelihood that the insurance carrier

    will actually have to pay. In order to be able to compensate policyholders for

    their losses, insurance companies invest the money they receive in

    premiums, building up a portfolio of financial assets and income-producing

    real estate which can then be used to pay off any future claims that may be


    There are two basic types of insurance carriers:Direct and Reinsurance.

    Direct carriers are responsible for the initial underwriting of insurance

    policies and annuities, while Reinsurance carriers assume all or part of the

    risk associated with the existing insurance policies originally underwritten by

    other insurance carriers.

    Direct insurance carriers offer a variety of insurance policies.

    Life insurance provides financial protection to beneficiariesusually spouses

    and dependent childrenupon the death of the insured.

    Disability insurance supplies a preset income to an insured person who is

    unable to work due to injury or illness

    Health insurance pays the expenses resulting from accidents and illness.

    An Annuity (a contract or a group of contracts that furnishes a periodic

    income at regular intervals for a specified period) provides a steady income

    during retirement for the remainder of ones life.

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    Property-casualty insurance protects against loss or damage to property

    resulting from hazards such as fire, theft, and natural disasters.

    Liability insurance shields policyholders from financial responsibility for

    injuries to others or for damage to other peoples property. Most policies,

    such as automobile and homeowners insurance, combine both property-

    casualty and liability coverage. Companies that underwrite this kind of

    insurance are called property-casualty carriers.

    What is Life Insurance?

    Human life is subject to risks of death and disability due to natural and

    accidental causes. When human life is lost or a person is disabled

    permanently or temporarily, there is a loss of income to the household. The

    family is put to hardship. Risks are unpredictable. Death/disability may occur

    when one least expects it. There are a number of life insurance products

    which offer protection and also coupled with savings.

    A Term insurance product provides a fixed amount of money on death

    during the period of contract.

    A Whole Life insurance product provides a fixed amount of money on


    An Endowment Assurance product provided a fixed amount of money

    either on death during the period of contract or at the expiry of contract if life

    assured is alive.

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    A Money Back Assurance product provides not only fixed amounts which

    are payable on specified dates during the period of contract, but also the full

    amount of money assured on death during the period of contract.

    An Annuity product provides a series of monthly payments on stipulated

    dates provided that the life assured is alive on the stipulated dates.

    A Linked product provides not only a fixed amount of money on death but

    also sums of money which are linked with the underlying value of assets on

    the desired dates.

    There are a variety of life insurance products to suit to the needs of various

    categories of peoplechildren, youth, women, middle-aged persons, old

    people; and also rural people, film actors and unorganized laborers.

    Life insurance products could be purchased from registered life insurers

    notified by the IRDA. Insurers appoint insurance agents to sell their products.

    As per regulations, insurers have to give the various features of the products

    at the point of sale. The insured should also go through the various terms and

    conditions of the products and understand what they have bought and met

    their insurance needs. They ought to understand the claim procedures so that

    they know what to do in the event of a loss.


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    When Should One Go For Insurance?

    Your insurance need will change as your life does, from starting to work to

    enjoying your golden years and all the stages in between. Each one of these

    stages may pose a different insurance need/cover for you. In this section, we

    have drawn up the basic life stages and help you analyze various insurance

    needs accordingly.

    Stage 1 : Young and Single

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    This is an important stage where one lays down the foundation of a successful

    life ahead. Take advantage of the time and power of compounding to ensure

    that you build up your dreams, so start saving early.

    Your needs:

    o Save for a home and wedding

    o Tax Planning

    Save for Golden years

    Stage 2 - Just Married

    Marriage brings about a significant change. New dreams and new

    opportunities also bring in additional responsibilities. While both of you look

    forward to a happy and secure life , it is equally important to ensure that

    eventualities dont come in the way of shaping your dreams.

    Your needs:

    o Planning for home / securing your home loan


    o Save for vacation

    o Save for your first child

    Stage 3 - Proud Parents

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    Once you have children, your need for life insurance is even more. You need

    to protect your family from an untoward incident. Ensure your protection

    umbrella takes into account the future cost of securing your childs dream.

    You will want life to go on for your loved ones, and having enough life

    insurance is a way to help ensure that.

    Your needs:

    o Provide for childrens education

    o Safeguarding family against loan liabilities

    o Savings for post-retirement

    Stage 4 - Planning for Retirement

    While you are busy climbing the ladder of success today, it is important for

    you to take time and plan for your life after retirement. Having an early start

    for retirement planning can make a significant difference to your savings.

    Think about your golden years even before you have reached them. The key

    is to think ahead and plan well using your time and money.

    Your needs:

    o Provide for regular income post retirement

    o Immediate Tax benefits

    o Lead a secure, independent and comfortable

    life style after retirement

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    Unit Linked Insurance Plans (ULIPs)

    For the generation of insurance seekers who thrived on insurance policieswith assured returns issued by a single public sector enterprise, unit-linkedinsurance plans are a revelation.

    The subsequent softening of interest rates introduced a degree a much-needed rationality to insurance products like endowment plans; attractivereturns at low risk became a thing of the past. The same period alsocoincided with an upturn in equity markets and the emergence of a newbreed of market-linked insurance products like ULIPs. While in conventionalinsurance products the insurance component takes precedence over thesavings component, the opposite holds true for ULIPs.

    More importantly ULIPs (powered by the presence of a large number ofvariants) offer investors the opportunity to select a product which matchestheir risk profile; for example an individual with a high risk appetite can shuntraditional endowment plans (which invest about 85% of their funds in thedebt instruments) in favour of a ULIP which invests most of its corpus inequities.

    In traditional insurance products, the sum assured is the corner stone; inULIPs premium payments is the key component. ULIPs are remarkably alike

    to mutual funds in terms of their structure and functioning; premiumpayments made are converted into units and a net asset value (NAV) isdeclared for the same.

    Investors have the choice of enhancing their insurance cover, modifyingpremium payments and even opting for a distinct asset allocation than theone they originally opted for. This calls for enhanced flexibility in ULIPs. Alsoif an unforeseen eventuality were to occur, in case of traditional products, thesum assured is paid along with accumulated bonuses; conversely in ULIPs,the insured is paid either the sum assured or corpus amount whichever ishigher.

    Insurance seekers have never been exposed to this kind of flexibility intraditional insurance products and it would be fair to say that ULIPs representthe new face of insurance. While few would dispute the value-add that ULIPscan provide to one's insurance portfolio and financial planning; the same isnot without its flipside.

    For the uninitiated, understanding the functioning of ULIPs can be quite ahandful! The presence of what seem to be relatively higher expenses, rigidly

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    defined insurance and investment components and the impact of markets onthe corpus clearly make ULIPs a complex proposition. Traditionally theinsurance seeker's role was a passive one restricted to making premiumpayments; ULIPs require greater participation from the insured.

    Charges and Expenses

    ULIPs work very similar to a mutual fund with an added benefit of life coverand tax deduction. They have a mandate to invest the premiums in varyingproportions in gsecs (government securities), bonds, the money markets (callmoney) and equities. The primary difference between conventional savings-based insurance plans like endowment and ULIPs is the investment mandate-while ULIPs can invest up to 100% of the premium in equities, the percentage

    is much lower (usually not more than 15%) in case of conventional insuranceplans. ULIPs are also available in multiple options like aggressive ULIPs(which can invest upto 100% in equities), balanced ULIPs (which invest 40-60% in equities) and debt ULIPs (which invest only in debt and moneymarket instruments).

    Broadly speaking, ULIP expenses are classified into three major categories:

    1) Mortality charges

    Mortality expenses are charged by life insurance companies for providing a

    life cover to the individual. The expenses vary with the age, sum assured andsum-at-risk for the individual. There is a direct relation between the mortalityexpenses and the above mentioned factors. In a ULIP, the sum-at-risk is animportant reference point for the insurance company. The sum-at-risk is thedifference between the sum assured and the investment value the individualscorpus as on a specified date. Usually, the mortality charges are levied on theper thousand sum assured.

    2) Sales and Fund Administration expenses

    Insurance companies incur these expenses for operational purposes on aregular basis. The expenses are recovered from the premiums that individualspay towards their insurance policies. Agent commissions, sales and marketingexpenses and the overhead costs incurred to run the insurance business on aday-to-day basis are examples of such expenses.

    3) Fund management charges (FMC)

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    These charges are levied by the insurance company to meet the expensesincurred on managing the ULIP investments. A portion of ULIP premiums areinvested in equities, bonds, g-secs and money market instruments. Managingthese investments incurs a fund management charge, similar to what mutualfunds incur on their investments. FMCs differ across investment options likeaggressive, balanced and debt ULIPs; usually a higher equity optiontranslates into higher FMC.

    Apart from the three expense categories mentioned above, individuals mayalso have to incur certain expenses, which are primarily optional in nature-the expenses will be incurred if certain choices that are made available toindividuals are exercised.

    a) Switching chargesIndividuals are allowed to switch their ULIP options. For example, anindividual can switch his fund money from 100% equities to a balancedportfolio, which has say, 60% equities and 40% debt. However, the companymay charge him a fee for switching. While most life insurance companiesallow a certain number of free switches annually, a switch made over andabove this number is charged.

    b) Top-up charges

    ULIPs allow individuals to invest a top-up amount. Top-up amount is paid inaddition to the premium amount for a particular year. Insurance companiesusually deduct a certain percentage from the top-up amount as charges.These charges are usually lower than the regular charges that are deductedfrom the annual premium.

    c) Cancellation charges

    Life insurance companies levy cancellation charges if individuals decide tosurrender their policies before the mandated lock-in period which is usually

    three years. These charges are levied as a percentage of the fund value on aparticular date

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    ULIPs offer a twin benefit: ULIPs serve the purpose of providing lifeinsurance combined with savings at market-linked returns. This is morebeneficial to the investor as compared to his investment in a mutual fundwhich does not offer a life cover. Moreover, they offer transparent disclosure,monthly portfolios and daily NAVs (net asset values). ULIP became popularmostly on account of Sensex northward journey.

    ULIPs have multiple investment options:

    The individuals have an option of investing based on his market analysis andhis risk profile. Generally there are three categories of ULIPs.

    Aggressive ULIPs (which can typically invest 80%-100% in equities, balancein debt)

    Balanced ULIPs (can typically invest around 40%-60% in equities)

    Conservative ULIPs (can typically invest upto 20% in equities)

    ULIPS are Flexible:

    The individuals are allowed to switch between the ULIP variants outlinedabove to capitalize on investment opportunities across the equity and debtmarkets. Free switches are an important feature that allows the informedindividual/investor to benefit from the vagaries of stock/debt markets. Forinstance, when stock markets were on the brink of 7,000 points (Sensex), theprudent investor would prefer to shift his assets from an Aggressive ULIP to alow-risk Conservative ULIP.


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    Insurance is a federal subject in India. The primary legislation that deals with

    insurance business in India is: Insurance Act, 1938, and Insurance Regulatory

    & Development Authority Act, 1999.

    The Insurance Regulatory and Development

    Authority (IRDA)

    Reforms in the Insurance sector were initiated with the passage of the IRDA

    Bill in Parliament in December 1999. The IRDA since its incorporation as astatutory body in April 2000 has fastidiously stuck to its schedule of framing

    regulations and registering the private sector insurance companies.

    The other decision taken simultaneously to provide the supporting systems to

    the insurance sector and in particular the life insurance companies was the

    launch of the IRDAs online service for issue and renewal of licenses to

    agents. Since being set up as an independent statutory body the IRDA has

    put in a framework of globally compatible regulations.


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    To protect the interests of the policyholders, to regulate, promote

    and ensure orderly growth of the insurance industry and for matters

    connected therewith or incidental thereto.



    India with about 200 million middle class household shows a huge untapped

    potential for players in the insurance industry. Saturation of markets in many

    developed economies has made the Indian market even more attractive for

    global insurance majors. The insurance sector in India has come to a position

    of very high potential and competitiveness in the market.

    Innovative products and aggressive distribution have become the say of the

    day. Indians, have always seen life insurance as a tax saving device, are now

    suddenly turning to the private sector that are providing them new productsand variety for their choice. Life insurance industry is waiting for a big growth

    as many Indian and foreign companies are waiting in the line for the green

    signal to start their operations. The Indian consumer should be ready now

    because the market is going to give them an 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.


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    Consumers remain the most important centre of the insurance sector. After

    the entry of the foreign players the industry is seeing a lot of competition and

    thus improvement of the customer service in the industry. Computerization of

    operations and updating of technology has become imperative in the current

    scenario. Foreign players are bringing in international best practices in service

    through use of latest technologies. The one time monopoly of the LIC and its

    agents are now going through a through revision and training programs to

    catch up with the other private players. Though lot is being done for the

    increased customer service and adding technology to it but there is a long

    way to go and various customer surveys indicate that the standards are still

    below customer expectation levels.


    Till date insurance agents still remain the main source through which

    insurance products are sold. The concept is very well established in the

    country like India but still the increasing use of other sources is imperative. It

    therefore makes sense to look at well- balanced, alternative channels of


    LIC has already well established and have an extensive distribution channel

    and presence. New players may find it expensive and time consuming to

    bring up a distribution network to such standards. Therefore they are looking

    to the diverse areas of distribution channel to have an advantage. At present

    the distribution channels that are available in the market are:

    Direct selling/Retail

    Corporate agents

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    Group selling

    Brokers and cooperative societies



    Direct selling or retail business is carried out by Agents of the company. This

    is the main distribution channel due to the complexity of most

    insurance products (Endowment, Whole of Life, Unit Linked). This tends to be

    the focus of most companies due to its past success as well as its ability to

    deliver the right advice. However, this channel can be expensive and it is a

    time consuming sales process. An agent is the public face of an Insurance

    company. Hence it is important that this face is always smiling and

    presentable and the facts and figures at his/ her command are updated and


    An agent should be a pleasing personality with complete knowledge about the

    various plans and solutions which the company has to offer and must also

    understand the customers psychology well to deal in an efficient manner.


    Bancassurance is the distribution of insurance products through the bank's

    distribution channel. It is a phenomenon wherein insurance products are

    offered through the distribution channels of the banking services along with a

    complete range of banking and investment products and services. To put it

    simply, Bancassurance, tries to exploit synergies between both the insurance

    companies and banks.

    Advantages to banks

    Productivity of the employees increases.

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    By providing customers with both the services under one roof, they can

    improve overall customer satisfaction resulting in higher customer retention


    Increase in return on assets by building fee income through the sale of

    insurance products.

    Can leverage on face-to-face contacts and awareness about the


    conditions of customers to sell insurance products.

    Banks can cross sell insurance products e.g.: Term insurance products



    Advantages to insurers

    Insurers can exploit the banks' wide network of branches for

    distribution of products. The penetration of banks' branches into the

    rural areas can be utilized to sell products in those areas.

    Customer database like customers' financial standing, spending habits,

    investment and purchase capability can be used to customize products

    and sell accordingly.

    Since banks have already established relationship with customers,

    conversion ratio of leads to sales is likely to be high. Further service

    aspect can also be tackled easily.

    Advantages to consumers

    Comprehensive financial advisory services under one roof. i.e.,

    insurance services along with other financial services such as banking,

    mutual funds, personal loans etc.

    Enhanced convenience on the part of the insured

    Easy accesses for claims, as banks are a regular go.

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    1.Best returns with the added advantage of 100% life insurance coverage.

    2. Good option for new investors into the market as all the money is invested

    by best fund managers so with less knowledge also they can earn good


    3. Best commission charges paid to the agents which vary from 12% to 35%

    which is much higher as compared to mutual funds i.e. , only 2-2.5%.

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    1. TALIC could not able to match LIC in remote areas services.

    2. Misleading facts given by life advisors about the returns of ULIPs.

    3. Hidden charges taken by the companies.

    4. Less Promotional Campaigns.


    1. 80 percent of Indian population is still under insured. So

    there is a big opportunity for insurance companies.

    2. As the stock market can be under the mark any time so it can bring

    loss to the investors but as in ULIPs there is proper mixture of debt securities

    and equity so the loss is incurred during dark trading days also.

    3. Unit-linked products are exempted from tax and they provide life


    4. Increasing consumer awareness about Insurance and its use.


    1. Cannibalism within the industry by providing misleading figures to the


    2. Govt.s instability has a long term repercussions affecting companys

    policies and its growth

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    About Company

    Tata-AIG Life Insurance Company Limited (Tata-AIG Life) is a joint venture

    company, formed by the Tata Group and

    American International Group, Inc. (AIG). Tata AIG Life combines the

    Tata Groups pre-eminent leadership position in India and AIGs global

    presence as the worlds leading international insurance and financial services

    organization. The Tata Group holds 74 per cent stake in the insurance

    venture with AIG holding the balance 26 percent. Tata AIG Life provides

    insurance solutions to individuals and corporates. Tata AIG Life Insurance

    Company was licensed to operate in India on February 12, 2001 and started

    operations on

    April 1, 2001.

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    The Tata Group is one of India's largest and most respected business

    conglomerates, with revenues in 2004-05 of $17.8 billion (Rs. 799,118

    million), the equivalent of about 2.8 per cent of the country's GDP. Tata

    companies together employ some 215,000 people. The Group's 32 publicly

    listed enterprises - among them standout names such as Tata Steel, Tata

    Consultancy Services, Tata Motors and Tata Tea - have a combined market

    capitalisation that is the highest among Indian business houses in the private

    sector, and a shareholder base of over 2 million. The Tata Group has

    operations in more than 40 countries across six continents, and its companies

    export products and services to 140 nations.


    American International Group, Inc. (AIG), world leaders in insurance and

    financial services, is the leading international insurance organization with

    operations in more than 130 countries and jurisdictions. AIG companies serve

    commercial, institutional and individual customers through the most extensive

    worldwide property-casualty and life insurance networks of any insurer. In

    addition, AIG companies are leading providers of retirement services,

    financial services and asset management around the world. AIG's common

    stock is listed on the New York Stock Exchange as well as the stock

    exchanges in London, Paris, Switzerland and Tokyo

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    TrevorBull Managing Director

    Mr. Trevor Bull joined Tata-AIG Life as Managing Director in January 2006.

    Prior to this, Trevor was Senior Vice President and General Manager at

    American International Assurance in Korea.

    Trevor has over 28 years of experience in the life insurance industry and has

    spent considerable time working in Japan and Britain. His experience covers

    an array of skills at various authority levels including Director, Regional

    Executive, Senior Line Management and Project Management. Additionally,

    Trevor has acquired keen insights into Unit Linked, conventional life and

    health insurance/ reinsurance and all major products & distribution channels.

    A proud father of two boys and one girl, he aligns his hobbies with theirs and

    connects with them through a game of tennis or football regularly


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    Mr. Trever Bull - MD

    Mr.Fhill Heman - CEO

    Ms. Vijay Singha VP

    Mr. Anurag Shrivastava- ZM

    Mr.Sanjiva Gorihatta RM

    Mr. Ashwani khosa - Area Manager

    Mr. Mudit Mathur - Branch Manager

    Mr. Jitendra Dhiman sales manager

    Mr.Deepak Sharma - SBDM

    Mr. Ashawani Sharma BDM

    Mr. Vivek Singh - ABDM

    Mr. Saurabh Gupta -MBA

    Ms. Deepika -SBA

    TATA-AIG LIFE has a staff strength of 1029, which includes professionals from

    the fields of finance, law, accountancy, engineering and marketing.


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    To be the top life insurance company in the market.

    This not only means being the largest or the most productive company in themarket, but a combination of several things like-

    Customer service of the highest order

    Value for money for customers

    Professionalism in carrying out business

    Innovative products to cater to different needs of different customers

    Use of technology to improve service standards

    Increasing market share


    SECURITY: Providing long term financial security to our policy holders

    will be our constant endeavor. This is done by offering life insurance

    and pension products.

    TRUST: Company appreciates the trust placed by our policy holders inus. Hence, company will aim to manage their investments very carefully

    and live up to this trust.

    INNOVATION: Recognizing the different needs of our customers,

    company will be offering a range of innovative products to meet these


    Competitors of Tata-AIG life insurance

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    ICICI prudential:

    ICICI prudential insurance is a joint

    venture of ICICI bank and prudential plc a leading financial service group in

    the UK.Total capital stands for Rs. 37.72 billion, with ICICI Bank holding a

    stake of 74% and Prudential plc holding 26%. ICICI begin their operations in

    December 2000 after receiving approval from IRDA. Now ICICI prudential is

    having over 1000 offices, over 270000 advisors and 21bancassurance

    partners. ICICI Prudential was the first life insurer in India to receive a

    National Insurer Financial Strength rating of AAA from Fitch ratings. ICICI

    prudential is working on the base of five core values-

    1 Integrity

    2 Customer first

    3 Boundary less

    4 Ownership

    5 Passion

    Key features:

    1 Understanding the needs of customers and offering them superior

    products and service.

    2 Leveraging technology to service customers quickly, efficiently and


    3 Developing and implementing superior risk management and

    4 investment strategies to offer sustainable and stable returns to


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    5 Providing an enabling environment to foster growth and learning for


    HDFC standard life insurance:

    HDFC Standard Life Insurance Company Ltd. is one of India's leading private

    insurance companies. It is a joint venture of Housing Development Finance

    Corporation Limited, India's leading housing finance institution and a Group

    Company of the Standard Life in UK. HDFC as on March 31, 2007 holds 81.9per cent of equity venture. Gross premium income of the HDFC for the year

    ending March 31, 2007 was Rs. 2, 856 crores and new business premium

    income was Rs. 1,624 crores. The company has covered over 8, 77,000 lives

    year ending March 31, 2007. HDFC standard is having 1000 advisors in 11


    Key features:

    1 Creating corporate agents through HDFC bank in India.

    2 Creating agents to provide total financial consultancy.

    3 Introducing low cost group schemes for companies and NGOs.

    Reliance life

    insurance Reliance Life Insurance Company Limited is a part of Reliance

    Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is

    one of Indias leading private sector financial services companies, and ranks

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    among the top 3 private sector financial services and banking companies, in

    terms of net worth. Reliance Capital has interests in asset management and

    mutual funds, stock broking, life and general insurance, proprietary

    investments, private equity and other activities in financial services. Reliance

    Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered

    with the Reserve Bank of India under section 45-IA of the Reserve Bank of

    India Act, 1934 .

    Aviva life insurance

    Aviva is UKs largest and the worlds fifth largest insurance Group. It is one

    of the leading providers of life and pensions products to Europe and has

    substantial businesses elsewhere around the world. Aviva has a joint venture

    of Dabur, one of India's oldest, and largest Group of companies. And

    country's leading producer of traditional healthcare products. In accordance

    with the government regulations Aviva holds a 26 per cent stake in the joint

    venture and the Dabur group holds the balance 74 per cent share. Aviva

    has 193 Branches in India (including rural branches) supporting its

    distribution network. Through its Banc assurance partner locations, Aviva

    products are available in more than 2,795 locations across India. Aviva has a

    sales force of over 30000 financial planning advisors.

    Key features:

    1 Through the Financial Health Check (FHC) Avivas sales force has

    been able to establish its credibility in the market. The FHC is a free

    service administered by the FPAs for a need-based analysis of the

    customers long-term savings and insurance needs. Depending on the

    life stage and earnings of the customer, the FHC assesses and

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    recommends the right insurance product for them.

    2 Introduced the concept of Banc assurance in India.

    3 Products to provide customers flexibility, transparency and value for


    4 Differentiation in fund management operations.

    MetLife insurance:

    MetLife India Insurance Company Limited is an affiliate of MetLife, Inc. and

    was incorporated as a joint venture between MetLife International Holdings,

    Inc.and The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited

    and other private investors. MetLife is one of the fastest growing life

    insurance companies in the country. It offers a range of innovative products

    to individuals and group customers at more than 600 locations through its

    bank partners and company-owned offices. MetLife has more than 32,000Financial Advisors. It has approximately 70 million customers all over world.

    MetLife is working on the base of six core values-

    1 Innovation

    2 Long term relationship

    3 Customer centered and result focused vision

    4Creating high performance organization

    5 Working with integrity, fairness and financial prudence

    6 Partnering with internal and external customers

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    Max New York life insurance:

    Max New York Life Insurance Company Ltd. is a joint venture between New

    York Life, a Fortune 100 company and Max India Limited, one of India's

    leading multi-business corporations The Company's paid up capital is Rs.

    907.4 crore. Max New York life is working on the base of six core values-

    1 Excellence,

    2 Honesty,

    3 Knowledge,

    4 Caring,

    5 Integrity

    The Company practices a lot of importance on its selection process of

    insurance advisors which comprises four stages - screening, psychometric

    test, career seminar and final interview. 337 agent advisors have

    qualified for the Million Dollar Round Table (MDRT) membership in 2007 and

    Max New York Life has moved up to 21st rank in MDRT global list.

    Key features:

    1 Max New York Life has adopted prudent financial practices to ensure

    safety of policyholder's funds.

    2 Investing significantly in its training programme and each agent is

    trained for 152 hours as opposed to the mandatory 100 hours

    stipulated by the IRDA before beginning to sell in the marketplace.

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    3 Using a five-pronged strategy to pursue alternative channels of

    distribution which include the franchisee model, rural business, direct

    sales force involving group insurance and telemarketing opportunities,

    banc assurance and corporate alliances.

    Bharti Axa life insurance:

    Bharti Axa life insurance is a joint venture between Bharti, one of Indias

    leading business groups with interests in telecom, agri business and retail,

    and Axa world leader in financial protection and wealth management. The

    joint venture company has a 74% stake from Bharti and 26% stake of Axa.

    The company started its operations in December 2006. Now company is

    having over 5200 employees across over 12 states in the country. Company

    is working on the base of five core values-

    1 Professionalism

    2 Innovation

    3 Team Spirit

    4 Pragmatism

    5 Integrity

    Key features:

    1 Using multi-distribution, multi product platform techniques.

    2 Adapting AXA's best practices as a sound platform for profitable


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    3 Leveraging Bharti's local knowledge, infrastructure and customer


    4 Delivering high levels of shareholder return.

    5 Building long term value with business partners by enhancing the

    proposition to their customers.

    6 Retaining the best talent in India.

    Bajaj Allianz life insurance:

    Bajaj Allianz life insurance company ltd. Is a joint venture of Allianz AG,

    one of the worlds largest insurance companies and Bajaj auto, one of the

    biggest two and three wheeler manufacturing companies in the world.

    Company is having over 440000 satisfied customers in India. Company is

    having 550 branches across the country and over 60000 advisors.

    Key features:

    1 Tying up with seven regional rural banks sponsored by Syndicate Bank

    to tap the rural market.

    2 Introducing micro-insurance products and coming out with a new

    capital guarantee product.

    3 Expanding its agency force from 1.60 lakh to 2 lakh and the branch

    network will also be increased from 900 to 1400.

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    Vysya Life Insurance Company Limited a part of the ING group the worlds

    largest financial services provider entered in the private life insurance

    industry in India in September 2001.ING Vysya Life is currently present in

    246 cities and has a network of over 300 branches, staffed by 7,000

    employees and over 51,000 advisors, serving over 5.5 lakh customers.

    ING Vysya Life has a diversified distribution channels,. While Tied Agency

    remains the strongest channel, the Alternate Channels business within ING

    Vysya Life is one of the fastest growing distribution channels. ING Vysya

    Life has strengthened its position as the unparallel leader in the life

    insurance industry in cooperative banks tie ups. The company currently

    has tie ups with 130 cooperative banks across the country. The Alternate

    Channels division has Banc assurance, ING Vysya Bank, Corporate Agents

    and SMINCE. ING Vysya is working on the base of five core values-

    1 Professionalism

    2 Entrepreneurial

    3 Trustworthy

    4 Approachable

    5 Caring

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    Birla sun life insurance

    Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between

    the Aditya Birla Group and the Sun Life Financial Services of Canada. It

    started operations in March 2001 after receiving its registration license from

    IRDA in January 2001. Company is having more than 45 branches across


    Key features:

    1 Focus on unit linked insurance products supported with protection

    products to maintain leadership in product innovation.

    2 Use of multi distribution channels- Direct Sales Force, Alternate

    Channels and offering convenient channels of purchase to customers.

    3 Web-enabled IT systems for superior customer services and issuing

    policies on the internet.

    4 High degree of transparency in all business practices and procedures.

    Working on operational Bus

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    A unit linkA unit link


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    New U

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    COMPANY Tata-AIG Life


    MINIMUM PREMIUM 15,000(annually)








    PREMIUM MODE Annual/Semi-annual/Quartely/Monthly

    MINIMUM TERM(yrs) 5 yrs

    MAXIMUM TERM(yrs) 40 yrs






    ( in %age) 15000-24999 16%(1st&2nd yr) 3%(3yrs)

    25000-4,99,999 15%(1st&2nd yr) 3%(3yrs)

    5,00,000-9,99,999 13%(1st&2nd yr) 3%(3yrs)

    10,00,000-99,99,999 9%(1st&2nd yr) 3%(3yrs)

    10,000,000 & Above 1.5%(1st&2nd yr) 1.5%(3yrs)








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    MINIMUM PREMIUM 10,000(annually)


    FUND ALLOCATION 1)LIQUID FUND(low risk profile)

    100% in bank deposits

    2)BOND FUND(moderate risk profile)

    20% in money market instruments, 80%in G-sec bonds

    3)EQUITY GROWTH FUND(very high risk profile)

    20% in bank deposits and money market instruments, 80%

    in equity

    4)EQUITY INDEX FUND-II (high risk profile)

    15% in bank deposits and money market instruments ,

    85% in equity

    5) ACCELERATOR MID-CAP FUND(very high)

    20% in bank deposits and money market instruments, 80%

    in equity

    MINIMUM TERM(yrs) 10 yrs

    MAXIMUM TERM(yrs) 30 yrs





    CHARGE( in %age) Rs 10,000-Rs1999,999 5%

    Rs 2000,000-Rs999,999 4%

    Rs 1,000,0000 3%

    POLICY ADMINISTRATION Rs 600 per annum per policyCHARGE

    MORTALITY & AGE(yrs) amount(Rs)



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    MINIMUM PREMIUM 18,000(annually)


    60-100 IN EQUITY,0-40 IN DEBT


    40-80 IN EQUITY,20-60 IN DEBT


    30-60 IN EQUITY,20-70 IN DEBT

    MINIMUM TERM(yrs) 10 YRS

    MAXIMUM TERM(yrs) 30 yrs





    CHARGE( in %age) year 1 14%

    year 2 onwards 3.5%


    CHARGE Rs 40 per month


    there are charges for any alteration in policy


    OTHER RISK BENEFIT CHARGE revival charge is Rs 500

    preminum redirection is Rs 100

    FUND MANAGEMENT CHARGE 1.6% for aggressive growth

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    PARTIAL WITHDRWAL3% in yr 4,2% in yr 5,1% in yr 6 and 0% from yr 7onwards

    SWITCHING CHARGE Rs 500 after 4 free switches


    3% in yr 4,2% in yr 5,1% in yr 6 and 0% from yr 7


    MISCELLANEOUS CHARGE annual fund management charges would

    not increase 40% of the initial level

    policy administration charges wouldnot increase 5% from the original level

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    MINIMUM PREMIUM 10,000(annually)

    FUND ALLOCATION 1)LIQUID FUND(low risk profile)

    100% in bank deposits

    2)SECURE MANAGED FUNDS(low moderate)

    100% in govt. securities and bonds


    70-85% in govt securities and bonds,15-30% in equity

    4)BALANCED MANAGED FUND(high risk profile)

    40-70% in govt securities and bonds, 30-60% in equity

    5)EQUITY MANAGED FUND(very high risk profile)

    0-40% in govt securities and bonds, 60-100% in equity

    6)GROWTH FUND(very high risk profile)

    100% in equity

    MINIMUM TERM(yrs) 10 yrs

    MAXIMUM TERM(yrs) 30 yrs





    CHARGE( in %age) upto 1,99,999 30%(1st&2nd yr) 1%(>3yrs)

    2,00,000-4,99,999 20%(1st&2nd yr) 1%


    5,00,000-9,99,999 15%(1st&2nd yr) 1%


    10,00,000-19,99,999 10%(1st&2nd yr) 1%


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    >20,00,000 5%(1st&2nd yr) 1%






    FUND MANAGEMENT CHARGE 0.80% of fund value

    PARTIAL WITHDRWAL 6 partial withdrawls free and

    additional will cost Rs250per request

    SWITCHING CHARGE after the 24 free charges additional

    charges will cost Rs100 per switch

    SURRENDER CHARGE 30% of the difference between regular

    premiums expctd& received in the first 2 yrs

    MISCELLANEOUS CHARGE after 12 free premium redirection requests

    additional will be charged Rs 250 per request

    after 6 free policy serving requests

    additional will be charged Rs 250 per requests

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    Everything changes with time. At Bajaj Allianz Life Insurance, its nodifferent. Keeping in line with changing trends and new horizons, BajajAllianz Life Insurance presents Bajaj Allianz New UnitGain Plan.

    Presenting an investment plan that provides the best returns possiblefor every rupee you invest.

    The plan is structured to provide a secure life cover and extraordinarybenefits aligned with our commitment to give you the ultimateinvestment plan.

    Key highlight of Bajaj Allianz New UnitGain

    Your investment, apart from normal allocation, receives Loyalty Units

    equivalent to 51% of First Years Annualized Premium over a period of10 years.

    Seven investment funds to choose from with unmatched flexibility tomanage your investments better.

    You policy continues to participate in investment performance of thefund(s). Even if you are not able to pay 3 full years premium

    Maximum flexibility

    Option to increase premium.

    Partial withdrawals anytime after three years from the commencementof policy, provided three full years premiums are paid.

    Three free switches every year.

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

    You have three simple terms to choose from 15, 20 and 25 yrs.

    Guaranteed Life Cover, with a flexibility to choose insurance coveraccording to your changing needs.

    How does the plan work?

    Premiums paid by you, net of premium allocation charge, are investedin fund(s) of your choice and units are allocated depending on the unit

    price of the fund(s). The value of your policy is the total value of unitsthat you hold in the fund(s). The insurance cover charges, policyadministration charges and the additional rider benefit charges (if any)are deducted through monthly cancellation of units. Fund ManagementCharge is priced in the unit value.

    Death Benefit

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    On death occurring before the age of 7 years: The death benefit will bethe fund value as on date of receipt of intimation of death at the office.

    On death after the age of 7 years and before the age of 60 years: Thebenefit payable would be the sum assured less value of partialwithdrawals made in the last 24 months prior to the date of death orthe fund value as on date of receipt of intimation of death at theCompanys office, whichever is higher. The death benefit payable wouldbe calculated separately for regular premiums and top up premiums.

    On death of the life assured on or after attaining the age of 60 years:The benefit payable would be the sum assured less value of partialwithdrawals made, within 24 months before attaining age 60 years andall partial withdrawals made after attaining age 60 years or the fund

    value as on the date of receipt of intimation of death at the office, whichever is

    higher. The death benefit would be calculated separately for regularpremiums and top up premiums.

    If three years regular premium has not been paid and the policy haslapsed, fund value as on date of receipt of intimation of death at theCompanys office will be paid on death of the life assured.

    The policy will terminate upon payment of death benefit.

    Maturity Benefit

    On Maturity, the Fund Value in respect of regular premium and top uppremium, if any, will be paid and the policy will terminate.

    Surrender Benefit

    The surrender value of the policy will be equal to the fund value lesssurrender charge, if any.

    Anytime after three years from the date of commencement of thepolicy, you have the option to avail of surrender benefit by completesurrender of units.

    The policy will terminate upon payment of surrender value.

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    Additional Rider Benefits available

    The following additional rider benefits in the form of rider can be availedat the option of the policyholder.

    UL Accidental Death Benefit Rider (UL ADB)

    UL Accidental Permanent Total/ Partial Disability Benefit Rider (ULAPT/PDB)

    UL Critical Illness Benefit Rider (UL CI)

    UL Hospital Cash Benefit Rider (UL HCB)

    UL Waiver of Premium Benefit (UL WOP)

    UL Family Income Benefit (UL FIB)

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

    You have the flexibility to add or remove the riders at any policy

    anniversary subject to rider terms and conditions.

    Fund Value:

    The fund value is equal to the number of units under this policymultiplied by the respective unit price on the relevant valuation date

    Unit Price:

    The unit price of each fund is arrived at by dividing the Net Asset Value

    (NAV) of the fund by the number of units existing in the fund at thevaluation date (before any new unit is allocated or cancelled)

    Valuation Date:

    The Company aims to value the Funds on each day the financialmarkets are open. However, the Company reserves the right to valueless frequently in extreme circumstances, where the value of the assetsmay be too uncertain. In such circumstances, the Company may defervaluation of assets until a certainty on the value of assets is resumed.

    The deferment of valuation of assets will be subject to prior consultationwith IRDA.

    Currently, the cut-off time is 3.00 p.m. for applicability of Unit Price of aparticular day for switches, redemptions and publication of Unit Price.

    Computation of NAV:When Appropriation price is Applied:

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    The NAV of a fund shall be computed as Market value of investmentheld by the fund plus the expenses incurred in the purchase of theassets plus the value of any current assets plus any accrued income netof fund management charges less the value of any current liabilities lessprovision, if any. This gives the net asset value of the fund.

    Dividing by the number of units existing at the valuation date (beforeany new units are allocated), gives the unit price of the fund underconsideration. This is applicable when the company is required topurchase assets to allocate units at the valuation date.

    When Expropriation price is applied:

    The NAV of a fund shall be computed as Market value of investmentheld by the fund less the expenses incurred in the sale of the assetsplus the value of any current assets plus any accrued income net offund management charges less the value of any current liabilities lessprovision, if any. This gives the net asset value of the fund. Dividing bythe number of units existing at the valuation date (before any units areredeemed), gives the unit price of the fund under consideration. This isapplicable when the company is required to sell assets to redeem unitsat the valuation date.

    Investment Options:

    Bajaj Allianz offers you a choice of seven (7) investment funds as givenbelow

    Asset Allocation Fund Risk Profile High

    Liquid Fund - Risk profile Low

    Bond Fund - Risk profile Moderate

    Equity Growth Fund - Risk profile - Very High

    Equity Index Fund II - Risk profile High

    Accelerator Mid-Cap Fund - Risk profile - Very High

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    Pure Stock Fund - Risk profile - Very High

    Bajaj Allianz New UnitGain Easy Pension Plus RP Plan

    With Bajaj Allianz New UnitGain Easy Pension Plus RP you can takecontrol of your future and ensure a retirement you can look forward to.

    Early retirement from work is every ones dream; you want your savingand investment to grow fast so you dont have to work for moneyanymore and enjoy every moment of being with your loved ones.

    The New UnitGain Easy Pension Plus RP is a retirement plan that helps

    you retire with laughter lines. This unitlinked pension plan gives you theadvantage of investing in securities making your savings grow faster soyou can retire earlier.

    What are the benefits available?

    The plan works in two parts the deferment period and the annuityperiod. During the deferment period, the plan builds up the funds. Thedeferment period ends at the vesting date. You are free to choose yourage of retirement (vesting date) between 45 and 70 years. After the

    vesting date, the annuity payments begin. The benefits on Vesting Date (the date you choose to retire)

    The Fund Value as on the vesting date will be used to purchase animmediate

    annuity, at rates prevailing at that point of time.

    Option to take lump sum: You have the option to take up to 1/3rd ofthe Fund

    Value as a lump sum. This amount would be tax free in your hand, asper current

    tax laws. The balance amount will be used to purchase an immediateannuity.

    Open Market Option: You have the option to purchase an immediateannuity

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    from Bajaj Allianz or from any other life insurer as recognised by IRDA.If the

    immediate annuity is purchased from Bajaj Allianz, the amountavailable for

    purchase of the annuity will be marked up as applicable in theimmediate

    annuity product available on that time.

    There will be a minimum instalment of annuity from Bajaj Allianzdepending on

    the immediate annuity product available on that time. The annuityfrequency

    may be changed to make each instalment more than the minimumrequirement.

    If it still below the minimum, the Fund Value may be paid in a lumpsum, if

    permissible, subject to applicable tax laws.

    Assurance for your family

    In the unfortunate event of death during the deferment period, yourspouse will have the option to take the Fund Value as a lump sum orpurchase an annuity to get regular income for life. For the immediateannuity, your spouse will have the Open Market Option as well. The

    immediate annuity from Bajaj Allianz will be available only if the spouseis above 45. If age were below 45, the Fund Value would be paid out.

    Annuity options:

    You will be able to choose from all immediate annuity products offeredby Bajaj Allianz Life insurance at the vesting date. The annuity productscurrently available are:

    Annuity for Life

    Annuity for Life with 5, 10, 15 or 20 years certain payout

    Annuity for Life with Return of Capital

    You also have the open market option to purchase immediate annuity.

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    any accrued income net of fund management charges less the value of anycurrent liabilities less provision, if any. This gives the net asset value of thefund. Dividing by the number of units existing at the valuation date (beforeany new units are allocated), gives the unit price of the fund underconsideration.

    This is applicable when the company is required to purchase assets toallocate units at the valuation date.

    When Expropriation price is Applied:

    The NAV of a Unit Linked Life Insurance Product shall be computed as:Market value of investment held by the fund less the expenses incurredin the sale of the assets plus the value of any current assets plus any

    accrued income net of fund management charges less the value of anycurrent liabilities less provision, if any. This gives the net asset value ofthe fund. Dividing by the number of units existing at the valuation date(before any units are redeemed), gives the unit price of the fund underconsideration.

    This is applicable when the company is required to sell assets to redeemunits at the valuation date.

    Investment Options:

    Bajaj Allianz offers you a choice of 6 funds. You can choose to investfully in any one fund or allocate your premiums into the various funds ina proportion that suits your investment needs. All the funds will bemanaged by asset managers of Bajaj Allianz, backed with the richexperience of Allianz SE, one of the largest asset managers in the worldtoday, managing assets worth over a Trillion Euros (over Rs. 55,00,000crores).

    The six funds offered are as under:

    Liquid Pension Fund- Risk Profile Low :

    Bond Pension Fund- Risk Profile Moderate : Equity Growth Pension Fund- Risk Profile Very High Equity Index Pension Fund II- Risk Profile High Pure Stock Pension Fund Risk Profile Very High :

    Flexibility - to pay top ups:

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    You may have received a bonus or some lump sum money. You can usethat to

    increase your investments in your policy provided you have paid all dueregular

    premiums.. 98% of any amount paid as top-up is allocated to yourfunds.

    Flexibility to increase the level of Regular Premium Payment:

    Your earnings grow over time, and so does your savings potential. With

    Bajaj Allianz, you have the flexibility to increase your regular premiumamount

    Fund Management Charge will be 1.75% p.a. of NAV for Equity GrowthPension Fund, Accelerator Mid-Cap Pension Fund and Pure StockPension Fund, 1.25% p.a. of the NAV for Equity Index Pension Fund II,0.95% p.a. of the NAV for Bond Pension Fund and 0.95% p.a. of NAVfor Liquid Pension Fund.

    Switching Charges: Three free switches would be allowed every year.

    Subsequent switches would be charged @ 5% of switch amount or Rs.100, whichever is lower

    Allocation: A portion of the premium paid will be charged towardsexpenses in

    the initial years. Accordingly, the allocation to your fund will be will beas follows:

    Annual Premium size

    Premium Payment due in

    Policy Year 1 Policy Year 2 onwards

    10,000 24,999 84% 98%

    25,000 49,999 86% 98% 50,000 99,999 88% 98%

    100,000 499,999 90% 98%

    500,000 and above 92% 98%

    The allocation of top ups would be 98%.

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    Surrender Charge If first three years regular premiums are not paidand the policy is lapsed, the Surrender Charge on regular premium unitvalue would be 100% of the first years annualised Allocated Premium.

    If first three years regular premiums have been paid in full, the scale ofSurrender

    Charge applicable on regular premium unit value would be as follows:

    Policy Year Surrender Charge

    4 5%

    5 2%

    6 and above No Charge

    The Surrender Value would be payable after three policy years. Further,if first three years regular premiums have not been paid and the policyis lapsed, the Surrender Value, if any, would be payable at the expiry of

    the revival period or three policy years, whichever is later. No surrender charge will be applied in case of complete surrender of

    units in respect of Top Up Premium.


    Bajaj Allianz YoungCare Plus

    Bajaj Allianz Life Insurance presents a plan that takes care of you and the financial requirements of your loved ones after you. Bajaj Allianz YoungCarePlus offers you a unique way to reassure yourself that you havetaken care of the ones you cherish. With this unique policy that allows yourloved ones to live comfortably, even if something were to happen to you. .Bajaj Allianz YoungCare Plus insures a safe financial future with prospectsof attractive returns and guaranteed life cover. Only to make sure that whenyour life changes, your plans can still stay the same as always.

    A plan thats made Just for you

    Gift of a lifetime to your loved one, who has been nominated by you toreceive the benefits under the policy. Loyalty Units to enhance your fund value every year from the sixth policyyear.

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    Get a guaranteed Sum Assured plus we will continue to pay premium onyour behalf, in case of your unfortunate death or on being diagnosed to besuffering from specified Critical Illnesses, whichever occurs first Your policy continues to participate in investment performance of thefund(s) till maturity even after the payment of Sum Assured as part of deathor critical illness benefit. An Asset Allocation Fund looks after your investments even when themarket conditions change. Our experienced fund managers monitor the mixof assets in the fund and manage the mix in such situations to maximize yourreturns. Also if you want to manage the mix of assets for your policy on your own,you have a choice of 5 other investment funds, with complete flexibility to

    switch money from one fund to the other to manage your investments better. Your policy continues to participate in investment performance of thefund(s) even if you are not able to pay the premium for first 3 full years. Flexibility of partial withdrawals at any time after three years fromcommencement of the policy provided first three full years premiums arepaid. Option to pay top up premiums anytime during the tenure of your policy tofurther enhance your savings Option to choose UL Accidental Permanent Total/Partial Disability Benefit asan additional rider benefit to provide assurance to your family.

    How does the plan work?

    Premium paid by you, net of the premium allocation charge, if any, areinvested in fund(s) of your choice and units are allocated depending on theunit price of the fund(s). The fund value of your policy is the total value ofunits that you hold in the fund(s). The insurance cover charges, policyadministration charges and the additional rider benefit charges (if any) arededucted through monthly cancellation of units. Fund Management Charge ispriced in the unit value.

    Bajaj Allianz YoungCare Plus offers you the following cover:

    Your Sum Assured is always equal to Half of the Policy Term times AnnualizedPremium

    Death / Critical Illness Benefit

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    In case of death or diagnosis of critical illness of the life assured, whicheveroccurs first, the following benefit shall be payable: Sum Assured payable immediately. All future regular premium falling due from the date of death or date ofdiagnosis of critical illness, whichever occurs first, till the end of the policyterm shall be allocated by the company to the various funds, as had beenchosen by you, on the premium due dates.The policy will continue with nil Sum Assured till maturity after the death orearlier occurrence of critical illness of the life assured or till early surrender ofthe Policy. After the death of the life assured, the nominee or appointee, ifnominee is minor, shall have right only to receive policy proceeds by way ofpartial withdrawal, surrender or whole fund value at maturity date.

    If the company has already paid the above benefits on critical illness, thennothing is payable on death of the life assured. If first three years regular premium has not been paid and the policy haslapsed, then the benefit payable on death or critical illness of the life assured,whichever occurs first, will be the fund value and in such case, the policy willterminateCritical Illness means First Heart Attack, Coronary Artery Disease (requiringSurgery), Stroke, Cancer, Kidney Failure, Major Organ Transplant, MultipleSclerosis, Aorta Graft Surgery, Primary Pulmonary Hypertension, AlzheimersDisease and Paralysis.

    Maturity Benefit

    On maturity, the fund value will be paid to the policyholder, or in case ofdeath of life assured to the nominee.

    Surrender Benefit

    The surrender value of the policy will be equal to the fund value less

    surrender charge, if any. Anytime after three years from the date of commencement of the policy,provided due premiums for first three policy years have been paid, you havethe option to avail surrender benefit by complete surrender of units. Further, if first three years regular premiums have not been paid and thepolicy has lapsed, the surrender value, if any, would be payable at the expiryof the revival period or at the end of third policy year, whichever is later.

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    Computation of NAV:

    When Appropriation price is Applied:

    The NAV of a fund shall be computed as the market value of investment heldby the fund plus the expenses incurred in the purchase of the assets plus thevalue of any current assets plus any accrued income net of fund managementcharges less the value of any current liabilities less provision, if any. Thisgives the net asset value of the fund.Dividing by the number of units existing at the valuation date (before anynew units are allocated), gives the unit price of the fund under consideration.This is applicable when the company is required to purchase assets to allocate

    units at the valuation date.

    When Expropriation price is applied:

    The NAV of a fund shall be computed as the market value of investment heldby the fund less the expenses incurred in the sale of the assets plus the valueof any current assets plus any accrued income net of fund managementcharges less the value of any current liabilities less provision, if any. Thisgives the net asset value of the fund. Dividing by the number of units existingat the valuation date (before any units are redeemed), gives the unit price ofthe fund under consideration. This is applicable when the company is requiredto sell assets to redeem units at the valuation date.

    Investment Options:

    We offer you a choice of six (6) investment funds as given below.

    Asset Allocation Fund Risk Profile High

    Liquid Fund - Risk profile Low

    Bond Fund - Risk profile Moderate

    Equity Growth Fund - Risk profile - Very High

    Equity Index Fund II - Risk profile High

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    Assurance for you

    Even if you forget to pay your premium, after three years regular premiumsare paid, you have an option to continue the policy for full insurance cover.Under this option, the policy will be kept in force by cancellation of units atthe prevailing unit price to meet all the charges, provided the value of theunits in respect of regular premium less surrender charges does not fall to anamount equivalent to one annual premium under the policy.

    Partial withdrawal option

    Anytime after three years from the date of commencement of the policyprovided regular premiums for three full years have been paid, you / yournominee have the option to partially withdraw units from fund(s) subject tofollowing conditions: The minimum amount of withdrawal is Rs.5,000. Maximum partial withdrawal allowed shall be equal to fund value minus twoannual premiums which means a minimum fund value of two annualpremiums needs to be maintained at any given time. All partial withdrawals will be first made from eligible top up premium units,if any. Once the top up premium units are exhausted, further partialwithdrawals will be made from regular premiums units. For the purpose of partial withdrawals, each payment of top up premiumshall have a lock-in period of three years, unless the payment of top uppremium is made in the last 3 policy years. No charge is applicable on partial withdrawals either from top up premiumunits or from regular premium units We may vary the minimum value of units at NAV to be withdrawn and/orthe minimum balance of value of units to be maintained after such partialwithdrawals subject to prior approval from IRDA. After the death of life assured, the nominee or appointee if nominee isminor shall be allowedto make one partial withdrawal only during a policy

    year up to maximum of 25% of the existing fund value.

    Important Details of the Bajaj Allianz YoungCare Plan

    Parameter DetailsMinimum Age at Entry 18

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    Maximum Age at Entry Age attained 60 / In case UL APTPDB rider has beenchosen, maximum entry age is 50 years attainedMaximum Maturity Age 70 yearsAdditional Rider Benefit Ceasing Age 65 years for UL APTPDBMinimum Term 10 years.Maximum Term 30 years or Age at entry less Maximum MaturityAge of 70, whichever is lessMinimum Premium Rs 20,000 per yearly installment,Rs 10,000 per half-yearly installment,Rs. 5,000 per quarterly installmentRs 2,000 per monthly mode(Monthly mode is available through ECS and Salary Saving Scheme only).

    Minimum Top Up Premium is Rs. 5,000.*You can change the premium payment mode on any policy anniversary.

    Free Look Period

    Within 15 days from the date of receipt of the policy, you have the option toreview the terms and conditions and return the policy, if you disagree to anyof the terms & conditions, stating the reasons for your objections. You will beentitled to a refund of the premium paid, subject only to a deduction of aproportionate risk premium for the period on cover and the expenses incurredon medical examination and stamp duty charges. The refund paid to you willalso be reduced or increased (as applicable) by the amount of any reductionor increase in the fund value, if any, due to a fall or rise in the unit pricebetween the date of allocation and redemption of units (without reference toany premium allocation rate or charges).

    Days of Grace

    A grace period of 30 days for the yearly, half yearly and quarterly modes andof 15 days for the monthly mode is allowed under the policy. Your policy

    remains in force for all insurance covers, if any, even if the due premiums arenot paid during this period.

    Revival of the Policy

    It is possible to revive a policy that has lapsed due to non-payment ofpremiums within 2 years from such date of lapse. You have to give a writtenapplication to the company to revive the policy with all due unpaid regular

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    premiums. The revival will be effected subject to underwriting. We maydisallow the revival of the policy on the original terms and conditions

    Termination Conditions

    This policy shall automatically terminate on the earlier occurrence of either ofthe following events: The units in the policy are fully surrendered; The fund value in respect of regular premium less surrender charge falls toan amount equivalent to one annual premium provided regular premiumshave been paid for first 3 full years; Upon the policy remaining lapsed for two years or remaining lapsed till the

    end of the third policy anniversary, whichever is later; On death of the life assured provided the policy has lapsed; On the maturity date.

    Fund Access Loan

    Loan is not available under this plan.

    Tax Benefits

    Premiums paid and benefits received will be eligible for tax benefits as perapplicable tax laws.As per the current tax laws: Premiums payable are eligible for tax benefits as per Section 80C of theIncome Tax Act. Partial Withdrawals, Surrender Value, Death Benefit and Maturity Benefitare eligible for tax benefits as per Section 10(10D) of the Income Tax Act. The charge paid for UL APTPDB rider benefit is eligible for tax benefits asper Section 80(D) of the Income Tax Act. In case of change in any tax laws relevant to you or the fund performance,the same will be applied as per regulations prevailing at that point of time

    Death Benefit Exclusion

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    In case the life assured commits suicide within one year of the date ofcommencement/revival of the policy, the amount payable would be the valueof the units in your account.

    Charges Under the Plan

    Policy Administration Charge:

    Rs. 630 per annum inflating at 5% every 1st of April will be deducted at eachmonthly anniversary by cancellation of units.

    Fund Management Charge

    1.75% p. a. of the NAV for Equity Growth Fund and Accelerator Mid-CapFund, 1.25% p.a. of the NAV for Equity Index Fund II and Asset AllocationFund, 0.95% p.a. of the NAV for Bond Fund and Liquid Fund. The FundManagement Charge is charged on a daily basis and adjusted in the unitprice.

    Premium Allocation Charge:

    Annual Premium size Premium Allocation Charge for Premium Payment due in(Rs.) Policy Year 1 Policy Year 2 to 10 Policy Year 11 and above20,000 99,999 60% 3% Nil100,000 1,99,999 55% 3% Nil2,00,000 4,99,000 50% 3% Nil5,00,000 9,99,999 35% 3% Nil10,00,000 and above 25% 3% NilAll Top up premiums have a premium allocation charge of 2%.

    Fund Switching Charges:

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    Three free switches would be allowed every year. Subsequent switches wouldbe charged @ 5% of switch amount or Rs. 100, whichever is lower, on eachsuch occasion.

    Miscellaneous Charge:

    The miscellaneous charge would be Rs.100/- per transaction in respect ofreinstatement, alteration of premium frequency or mode, decrease in regularpremium or issuance of copy of policy document

    Surrender Charge:

    If any due regular premium is not paid within the grace period in the first

    three policy years, the surrender charge will be 60% of the first yearsAnnualized Premium. If first three years regular premiums have been paid in full, the surrendercharge will be as follows:[1 (1/1.10)^N ] * First Years Annualized Premium.where N is 10 years less the elapsed policy duration in years an