COMPARATIVE ANALYSIS OF INSURANCEPRODUCTS OF BAJAJ ALLIANZ LIFEINSURANCE CO. LTD. WITH OTHER LIFEINSURANCE COMPANIES”

 INDEXS . N o .  P a r t i c ul a r s . 1 . A c k n o w l ed g e m e n t 2 . I n t r o d u c t i o n 3 . N e e d   f o r L i f e   i n s u r a n c e 4 . C o m p a n y   P r o f i l e 5 . P r o d u c t  P r o f i l e 6 . C o m p a r a t i v e   a n a l y s i s 7 . R e s e a r c h   M e t h od o l o g y 8 . S u g g e s t i o n s 9 . S W O T   A n a l y s i s10.Suggestions11.Conclusion12. Appendix13.Data Analysis14. Bibliography

INTRODUCTION

Our Plans Arm You For Tomorrow... At Bajaj allianz Life, there is nothing we holdhigher than life itself. We therefore view our plans not as tax saving devices but asa means to add protection to life. We believe in enhancing the very quality of life,in addition to safeguarding your security. Our products are designed in a way thathelps you bear heavy expenses while building your home or providing for your children's education and marriage. We make sure your post retirement years arecarefree and secure, ensuring your family and loved ones are protected againstfinancial difficulties in the event of a premature death. Depending on your personalneeds, priorities and individual responsibilities, you can go for a Protection, Savingor Investment plan. If you are not sure of which plan would suit you best, you coulduse the Life Maker, an application we developed for that very purpose

WHY DO I NEED LIFE INSURANCE

That’s a common question. Why would you need Insurance? Simply put, Life brings with it many surprises, some pleasant and some not so and a Life InsurancePlan ensures that you are better prepared to face uncertainties. How? In a number of ways:

ProtectionYou need life insurance to be there and protect the people you love, making surethat your family has a means to look after itself after you are gone. It is a thoughtful business concept designed to protect the economic value of a human life for the benefit of those financially dependent on him. That’s a good reason. Supposingyou suffer an injury that keeps you from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected.

RetirementLife insurance makes sure that you have regular income after you retire and alsohelps you maintain your standard of living. It can ensure that your post-retirementyears are spent in peace and comfort.Savings and InvestmentsInsurance is a means to Save and Invest. Your periodic premiums are like Savingsand you are assured of a lump sum amount on maturity. A policy can come in reallyhandy at the time of your child’s education or marriage! Besides, it can be used assupplemental retirement income!

Tax BenefitsLife insurance is one of the best tax saving options today. Your tax can be savedtwice on a life insurance policy-once when you pay your premiums and once whenyou receive maturity benefits. Money saved is money earned!Superior Technology•

In order to ensure speedy and accurate processing of your needs, we haveestablished world class technology, with renowned insurance software, whichnetworks all our offices and intermediaries•

Using the Web, policies can be issued from any office across the country for retail products•

Unique, user friendly software developed to make the process of issue of policiesandclaims settlement simpler (e.g. online insurance of marine policy certificate)Unique Forms of Risk Cover•

Film insurance•

Event management cover •

Sports & Entertainment Insurance PackageRisk Management- Our ExpertiseOur service methodology is tried, tested and Proven the world over and involves: 

•

Risk identification: Inspections•

Risk analysis: Portfolio review and gap analysis•

Risk retention•

Risk Transfer: To an insurer as well as reinsurer (as required)•

Creation of need based products•

Ongoing dialogue

COMPANY PROFILEBajaj Allianz Lifel Insurance Company LimitedBajaj Allianz Life Insurance Company Limited is a joint venture between Bajaj AutoLimited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability andstrength.Bajaj Allianz Life Insurance received the Insurance Regulatory and DevelopmentAuthority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct LifeInsurance business (including Health Insurance business) in India. The Company has anauthorized and paid up capital of Rs 147 crores. Bajaj Auto holds 74% and the remaining26% is held by Allianz, AG, Germany.In its first year of operations, the company has acquired the No. 1 status among the privatenon-life insurers. As on 31st March 2006 Bajaj Allianz Life Insurance maintained itsleadership position by garnering the premium income of Rs.1285 crore. Bajaj Allianz hasmade a profit after tax of Rs.52 crores.Bajaj Allianz today has a network presence in over 100 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all theoffices are interconnected with the Head Office at Pune.In the first half of the current financial year, 2006-07, Bajaj Allianz garnered a premiumincome of Rs. 842 crores, achieving a growth of 35% and Net profits rose to Rs.27 Crores.Vision• To be the first choice insurer for customers

 To be the preferred employer for staff in the insurance industry.• To be the number one insurer for creating shareholder valueMissionAs a responsible, customer focused market leader, we will strive to understand theinsurance needs of the consumers and translate it into affordable products that deliver valuefor money.A Partnership Based on SynergyBajaj Allianz Life Insurance Company offers technical excellence in all areas of Life andHealth Insurance as well as Risk Management. This partnership successfully combinesBajaj Auto's in-depth understanding of the local market and extensive distribution network with the global experience and technical expertise of the Allianz Group. As a registeredIndian Insurance Company and a capital base of Rs. 147 crores, the company isAchievements •

Bajaj Allianz has received ,"iAAA rating, by ICRA Limited, an associate of Moody's Investors Services, for Claims Paying Ability.This rating

indicates highestclaims paying ability and a fundamentally strong position.•

Indias Most Respected Companies The Business World's Most RespectedCompanies survey 2006 ,has ranked "Bajaj Allianz Life Insurance, No.2 this year,in the insurance sector.

Bajaj Auto LimitedBajaj Auto Limited is the largest manufacturer of two and three-wheelers in India and alsoone of the largest manufacturers in the world. Bajaj Auto has been in operation for over 55years. As a promoter of Bajaj Allianz Life Insurance Company Ltd., Bajaj Auto has thefollowing to offer:• Vast distribution network.• Knowledge of Indian consumers.• Financial strength and stability to support the insurance business.

llianz AG, GermanyAllianz AG is in the business of General (Property & Casualty) Insurance; Life & HealthInsurance and Asset Management and has been in operation for over 110 years. Allianz isone of the largest global composite insurers with operations in over 70 countries. Further,the Group provides Risk Management and Loss Prevention Services. Allianz has insuredmost of the world's largest infrastructure projects (including Hongkong Airport andChannel Tunnel between UK and France), further Allianz insures the majority of thefortune 500 companies, besides being a large industrial insurer, Allianz has a substantial portfolio in the commercial and personal lines sector, using a wide variety of innovativedistribution channels.Allianz AG has the following to offer Bajaj Allianz Life Insurance Company Ltd. :• Set up and running of Life insurance operations• New and improved international products• One of the world's leading insurance companies• More than 700 subsidiaries and 2 lac employees in over 70 countries worldwide• Provides insurance to almost half the Fortune 500 companies• Technology

Other similar businessesThe promoters have also incorporated a Life insurance Company in India, called BajajAllianz General Insurance Company Limited to provide life insurance solutions.Visit Bajaj Allianz General Insurance Website  www.bajajallianz.co.in

The Bajaj Allianz Difference• Business strategy aligned to clients' needs and trends in Indian and global economy /industry• Internationally experienced core team, majority with local background. Fast, decentralised decision making• Long-term commitment to market and clientsTrust At Bajaj Allianz, we realise that you seek an insurer whom you can trust. Bajaj AutoLimited is trusted name for over 55 years in the Indian market and Allianz AG has over 110 years of global experience in financial services. Together we are committed to provideyou with time tested and trusted financial solutions that provide you all the security youneed for your investments.Underwriting PhilosophyOur underwriting philosophy focuses on :•

Understanding the customer's needs•

Underwriting what we understand•

Meeting the customer's requirements•

Ensuring optimal coverage at lowest costClaims PhilosophyThe Bajaj Allianz team follows a service that aims at taking the anxiety out of claims processing. We pride ourselves on a friendly and open approach. We

are focused towards providing you a hassle free and speedy claims processing.Claims philosophy is to :• Be flexible and settle fast• Ensure no claim file to be seen by more than 3 people• Check processes regularly against the global Allianz OPEX (Operational Excellence)methodology Sold over 1 million since inception.Customer OrientationAt Bajaj Allianz, our guiding principles are customer service and client satisfaction. All our efforts are directed towards understanding the culture, social environment and individualinsurance requirements - so that we can cater to all your varied needs.Experienced and Expert Servicing TeamWe are driven by a team of experienced people who understand Indian risks and aresupported by the necessary international expertise required to analyse and assess them.Service engineers located in every major city .

PRODUCT PROFILE

RODUCT PROFILEWhat are these plans? Protection plans safeguard your income and your family’s financialfuture in case you are not around. They shield you from

heavy economic loss and reducethe impact of financial risk on you and those dependent on you. Conquering Life Saving plans act as a compulsory savings instrument for families when the premium is paidregularly. They work as long-term savings,

enhanced by tax benefits, which give you thefinancial strength to achieve your life goals. Capital unit gain ,Child gain , .Investment plans act as wealth creation instruments helping to create big estates for thefamily. It is a long-

term investment, free from the risk of market swings. At the end of theterm, you or your family can enjoy added returns on investment. Powering Life, One Life .Retirement plans can ensure that your post-retirement years are

spent in peace and comfort.They make sure that you have regular income after you retire and also helps you maintainyour standard of living.( c ) C A P I T A L   U N I T   G A I N•

Guaranteed Maturity Benefits  (Payments in Case of Death and at onMaturity).•

Flexible maturity benefits option•

Build in Wavier of Premium BenefitELIGIBILITY :•

Minimum entry age : 18 years,•

Maximum Entry age – 55 year,•

Maximum maturity age : 65 years.TERMS :10 – 20 years. 

*CHILD GAIN PLAN1 . R e g u l a r C a s h   R e t u r n s 2 . T h e   C a s h  B o n u s   A d v a n t a g e 3 . M o n e y b a c k   p l a n w i t h l o a n   f a c i l i t yELIGIBILITY :•

Minimum entry age : 12 years,•

Maximum Entry age – 49 year,•

Maximum maturity age : 65 years.TERMS :16 years20 years24 years.

POWERING LIFE1 . S a f e   i n v e s t m e n t   w i t h h i g h   T a x –   f r e e   r e t u r n s . 2 . C u s t o m i z a b l e p r e m i u m p a y m e n t t e r m 3 . E n h a n c i n g   l i f e   c o v e r  ELIGIBILITY :•

Minimum entry age : 18 years,•

Maximum Entry age – 60 year,

•

Maximum maturity age : 70 years.TERMS :10 years15 years20 years. 

COMPARATIVE ANALYSIS OFINSURANCEPRODUCTS OF BAJAJ ALLIANZ LIFEINSURANCE CO. LTD. WITH OTHER LIFEINSURANCE COMPANIES

F e a t u r e s \ C o m p a n i e s B a j a j  A l l i a n z I C I C I PrudentialBirla SunLifeTata AIGP l a n   N a m e C a p i t a l  U n i t GainLife TemeSuper  New ClassicLife Premier Invest AssurellMin/ Max Age atentry0 (risk commences atage 7)- 600 / 6 5 3 0   d a y s   t o  3 0 yrs for wholelife plan, 40for 30 yrsterm, 50 for 20 yrs termand so on.30 days to45/55/60 yrs(depending onterm)M a x   A g e   a t  m a t u r i t y 7 0 7 57 0   y e a t s . 1 5 ,2 0 , 3 0 M i n / M a x P r e m i u m 1 0 , 0 0 0 / N o l i m i t 1 8 , 0 0 0 / N o LimitMin Annual prem of Rs.25000P r e m i u m   T y p e  R e g u l a r R e g u l a r L i m i t e d  ( u p   t o 5 yrs) or Regular as per term of the planRegular Min/ Max SumAssuredMin 0.5* term*AP, max y* APwhere y for basecover or basecover withAccidental death&/or TPD rider is0- 30 31-35 36-40 41-45 46-5556-60 100 8570 50 30 20Y for base cover with any other rider or withmore than onerider MAX(5,0.5* policyTerm)Min SA =0.5 *term*Annualised premium, s.t.min of 100,000Min SA 2lacs.Max SA NolimitSA is amultiple of AP. Multipledepends onentry age andterm of the policy and policy holder gets a choiceD e a t h   B e n e f i t B e f o r e  A g e   7   –   Degular  premium F. V &Top-Up FV.

To be set off by partialSA net of  permissiblewithdrawalsor FVwhicherer ishigher.Before age 5only FVBtwn age 5 &60 – higher of FV or SA lesswithdrawalsSA less permissiblewithdrawals or FV whichever is higher.