Bajaj Allianz Report

A PROJECT

REPORT ON

“A STUDY ON PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE” PREPARED FOR AND PRESENTED TO BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED UNDER THE GUIDANCE COMPANY GUIDE NAME NAME Mr. ABHISHEK RANJAN DUBEY B.D.M.

UNIVERSITY GUIDE Mr. GAURAV BISARIA LECTURER

SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF DEGREE OF MASTERS OF BUSINESS ADMINSTRATION BY SAMARTHA SHUKLA M.B.A FINANCE 0800122094 INTEGRAL UNIVERSITY DASAULI, KURSI ROAD, LUCKNOW- 226026 (U.P.) INDIA PHONE: +91 522 2890812, 3096117, 6451039 2008-2009

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED 7TH FLOOR, SHALIMAR TOWERS, VIBHUTI KHAND GOMTINAGAR LUCKNOW-226010

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

Mr. ABHISHEK RANJAN DUBEY B. D.M.

Mr. RAJESH KHANNA

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CERTIFICATE BY THE UNIVERSITY

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

M.S. KHAN Head of the Department (Samartha Shukla)

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ACKNOWLEDGEMENT First of all I would like to thank the management at Bajaj Life Insurance Company for giving me the opportunity to do my summer training in their esteemed organization. I am highly obliged to Mr. Abhishek Ranjan Dubey (Business Development Manager) and Mr. Rajesh Khanna for granting me an opportunity to undertake training in Gomtinagar Branch. I express my thanks to all sales managers under whose able guidance and direction, I was able to give shape to my training. Their constant review and excellent suggestions throughout the project are highly commendable. My sincere thanks to all executives who helped me gain knowledge about the actual working and processes involved in various departments. I am grateful to my teacher Mr. Gaurav Bisaria who has helped in making this project. His valuable guidance has helped in preparing this project.

(Samartha Shukla)

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CONTENTS S.NO. 1). 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20)

TOPICS TITLE PAGE CERTIFICATE BY THE COMPANY CERTIFICATE BY THE UNIVERSITY ACKNOWLEDGEMENT EXECUTIVE SUMMARY RESEARCH OBJECTIVES MEANING OF INSURANCE MEANING OF LIFE INSURANCE HISTORY OF LIFE INSURANCE BENEFITS OF LIFE INSURANCE LIFE INSURANCE IS INSURANCE AS WELL AS INVESTMENT KINDS OF INSURANCE POLICIES NATIONALISATION OF LIFE INSURANCE IN INDIA INTRODUCTION ABOUT THE COMPANY PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE RESEARCH METHODOLOGY RESULT SUGGESTIONS AND RECOMMENDATIONS LIMITATIONS BIBLIOGRAPHY

Page No. 1 2 3 4 6 10 11 16 18 22 23 25 30 31 40 97 102 103 104 105

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EXECUTIVE SUMMARY Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz SE, one of the world's largest insurance companies, and Bajaj Finserv. Allianz SE is a leading insurance corporation globally and one of the largest asset managers in the world, that manage assets worth over a Trillion. With over 115 years of financial experience, Allianz SE is present in over 70 countries around the world. Bajaj Allianz is into both life insurance and general insurance. Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants. In June 2008, Bajaj Allianz entered into partnership with Thomas Cook India to provide travel finance. Bajaj Allianz Life Insurance ensures excellent insurance and investment solutions by offering customized products, supported by the best technology.

A comprehensive list of policies and products offered by Bajaj Allianz Life Insurance Co. Ltd. is as follows: 6

UNIT LINKED Regular Premium New UnitGain Super UnitGain Plus Gold New UnitGain Plus New UnitGain YoungCare YoungCare Plus New FamilyGain-R Single Premium New UnitGain Premier SP New UnitGain Plus SP

WOMEN INSURANCE Miss Confident Plans

PENSION

TRADITIONAL

Annuity Pension Guarantee

Endowment InvestGain SaveCare Economy SP Life Time Care Super Saver

Retirement Future Income Generator Swarna Vishranti New UnitGain Easy Pension Plus RP New UnitGain Easy Pension Plus SP Future Secure

HEALTH Care First Health Care Family CareFirst

TERM PLANS Protector Term Care New Risk Care

Money Back CashGain

CHILDREN PLAN ChildGain

JUST LAUNCHED Family Assure Fortune Plus CenturyPlus II UnitGain Protection Plus Invest Plus Group Seva Plan

In my training Period, I have focused mainly on two products of Bajaj Allianz Life Insurance company: “New Family Gain and New Unit Gain”. NEW FAMILY GAIN In this product, the minimum premium which is to be paid by the customer is Rs.5000. 7

The maximum premium for this product is Rs.10000.The policy term is 10 years. The Sum Assured is Rs. 50000 or the Fund Value which ever is higher. It is a unit linked plan and the Lock-in period is 3 years. After 3 years the customer can withdraw 75% or whole amount but surrender charges will be taken. After 5 years no surrender charges will be charged. In this product customer has the facility of getting a premium holiday for 2 years after 3 years have been completed and if he withdraws after 5 years he will get Rs. 30000. The customer will get benefit of Section 80C and Section 10(10D) of Income tax. Under Section 80 C the customer will get Tax rebate and under Section 10(10D) he will get tax free maturity gains. NEW UNIT GAIN In this product, the minimum premium which is to be paid by the customer is Rs.10000. The maximum premium for this product has no limit. The policy term is 10 years. The Sum Assured is 5 times the premium amount or the Fund Value which ever is higher. It is a unit linked plan and the Lock-in period is 3 years. After 3 years the customer can withdraw 75% or whole amount but surrender charges will be taken. After 5 years there are no surrender charges

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In this product customer has the facility of getting a premium holiday for 2 years after 3 years have been completed and if he withdraws after 5 years he will get Rs. 60000. The customer will get benefit of Section 80C and Section 10(10D) of Income tax. Under Section 80 C the customer will get Tax rebate and under Section 10(10D) he will get tax free maturity gains.

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

Fixed Deposit compared with Insurance policy In fixed deposit money is locked in for 5 or more years and in Insurance Policy money is locked in only for 3 years. In fixed deposit, at maturity TDS (Tax deduction at source) is deducted but in Insurance policy, maturity amount is tax free under Section 10(10D). In fixed deposit the rate of return is about 8-10% but in Insurance policy rate of return is 15% or more.

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In Fixed deposit, no life insurance is given but in Insurance policy life insurance is given. In the training period, I have tried to inform people about the products of Bajaj Allianz Life Insurance. I have met different people like: Salaried people Businessmen Chartered Accountants Lawyers Doctors Engineers Housewives

RESEARCH OBJECTIVES 1)

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

2) To know about the products of Bajaj Allianz Life Insurance. 3) To know about the objections of people for not taking the Insurance policy. 4)

To know the need for Life Insurance.

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To know the benefits of Life Insurance.

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6) To know the market share of Bajaj Allianz Life Insurance in the Market. MEANING OF INSURANCE Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is a collective bearing of risk. Insurance is a financial device to spread the risks and losses of few people among a large number of people, as people prefer small fixed liability instead of big, uncertain and changing liability. Insurance can be defined as a “legal contract between two parties whereby one party called insurer undertakes to pay a fixed amount of money on the happening of a particular event, which may be certain or uncertain.” The other party called insured pays in exchange a fixed sum known as premium. Insurance is desired to safeguard oneself and one’s family against possible losses on account of risks and perils. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. IMPORTANCE OF INSURANCE Insurance constitutes one of the major segments of the financial market. Insurance services play predominant role in the process of financial intermediary. Today insurance industry is one of the most growing sectors in India. There is lot of potential in the Indian Insurance Industry. 11

There are many issues, which require study. The scope of the study of Insurance industry of India would be very great as there are ongoing developments in the industry after the opening of the sector. The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. In near future Government may allow 49% FDI in Insurance. This would lead to more capital inflow by foreign partners. Another major issue is the effects on LIC after the entry of private players in the market. Though market share of LIC has been affected, it has improved in terms of efficiency. There are number of other hot topics like penetration of Health Insurance, Rural marketing of insurance, new distribution channels, new product ranges, insurance brokers’ regulation, incentive scheme of development officers of LIC etc. So it offers lot of scope for studying the insurance industry. Right now the insurance industry has great opportunities in countries like India or China which have huge population. Also the penetration of insurance in India is very low in both life and non-life segment so there is lot potential to be tapped. Before starting the discussion on insurance industry and related issues, we have to start with the basics of insurance. So first we understand what is Insurance? How the word ‘insurance’ is different from the word ‘Assurance’? etc.

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DIFFERENCE BETWEEN INSURANCE AND ASSURANCE Assurance is older in history and it was used to describe all types of Insurance. From 1826, the term assurance came to be used only for the risks covered by life insurance and the term insurance was exclusively used to denote the risks covered by marine, fire, etc. The word assurance indicated certainty. In life insurance, there is an assurance from the insurance company to make payment under the policy either on the maturity or at earlier death. On the other hand the word insurance was used to denote indemnity type of insurance where the insurance company was liable to pay only in case of the loss damage the property. The insured event was bound to happen sooner or later under assurance but the event insured against may or may not happen under insurance. The principle of “indemnity” applies to “insurance contracts” (non-life) only. The scope of the word, insurance is wider.

PRINCIPLES OF INSURANCE An insurance contract is based on some basic principles of insurance. (1) Principle of utmost good faith It means “maximum truth”. Both the parties should disclose all material information regarding the subject matter of Insurance. 13

(2) Principle of indemnity This means that if the insured suffers a loss against which the policy has been made, he shall be fully indemnified only to the extent of loss. In other words, the insured is not entitled to make a profit on his loss. (3) Principle of subrogation This means the insurer has the right to stand in the place of the insured after settlement of claims in so far as the insured’s right of recovery from an alternative source is involved. The insurer before the settlement of the claim may exercise the right. In other words, the insurer is entitled to recover from a negligent third party any loss payments made to the insured. The purposes of subrogation are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss. The concept of ‘Third Party Claims’ is based on the same principle. (4) Principle of causa proxima The cause of loss must be direct and an insured one in order to claim of compensation. (5) Principle of insurable interest The assured must have insurance interest in the life or property insured. Insurable interest is that interest which considerably alters the position of the assured in the event of loss taking place and if the event does not take placed, he remains in the same old position.

HISTORY OF INSURANCE The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land 14

of Babylonia where traders used to bear risk of the carvan by giving loans, which were later repaid with interest when the goods arrived safely. The concept of insurance as we know today took shape in 1688 at a place called Lloyd’s Coffee House in London where risk bearers used to meet to transact business. This coffee house became so popular that Lloyd’s became the one of the first modern insurance companies by the end of the eighteenth century. Marine insurance companies came into existence by the end of the eighteenth century. These companies were empowered to write fire and life insurance as well as marine. The Great Fire of London in 1966 caused huge loss of property and life. With a view to providing fire insurance facilities, Dr. Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire Office. The early history of insurance in India can be traced back to the Vedas. The Sanskrit term ‘Yogakshema’ (meaning well being), the name of Life Insurance Corporation of India’s corporate headquarters, is found in the Rig Veda. The Aryans practiced some form of ‘community insurance’ around 1000 BC. Life insurance in its modern form came to India from England in 1818. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. The insurance companies, which came into existence between 1818 and 1869, treated Indian lives as subnormal and charged an extra 15

premium of 15 to 20 percent. The first Indian insurance company, the Bombay Mutual Life Assurance Society, came into existence in 1870 to cover Indian lives at normal rates. The Insurance Act, 1938, the first comprehensive legislation governing both life and non-life branches of insurance were enacted to provide strict state control over insurance business. This amended insurance Act looked into investments, expenditure and management of these companies. By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75 provident societies carrying on life insurance business in India. Insurance business flourished and so did scams, irregularities and dubious investment practices by scores of companies. As a result the government decided to nationalize the life assurance business in India. The Life Insurance Corporation of India (LIC) was set up in 1956. The nationalization of life Insurance was followed by general insurance in 1972. TIME LINE IN INSURANCE HISTORY (MAJOR LANDMARKS) 1818: British introduced the life insurance to India with the establishment of the Oriental Life Insurance Company in Calcutta. 1850: Non life insurance started with Triton Insurance Company. 1870: Bombay Mutual Life Assurance Society is the first India owned life insurer. 16

1912: The Indian Life Assurance Company Act enacted to regulate the life insurance business. 1938: The Insurance Act was enacted. 1956: Nationalization took place. Government took over 245 Indian and foreign insurers and provident societies. 1972: Non-life business nationalized, General Insurance Corporation (GIC) came into being. 1993: Malhotra committee was constituted under the chairmanship of former RBI chief R. N. Malhotra to draw a blue print for insurance sector reforms. 1994: Malhotra committee recommended reentry of private players. 1997: IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of the insurance market in India. 2000: IRDA started giving license to private insurers. ICICI Prudential, HDFC were first private players to sell Insurance Policies. 2001: Royal Sundaram was the first non-life private player to sell an insurance policy. 2002: Bank allowed to sell insurance plans as TPAs enter the scene, insurers start setting non-life claims in the cashless mode.

MEANING OF LIFE INSURANCE

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There are three parties in a life insurance transaction: the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person. Another important person involved in a life insurance policy is the beneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. Life insurance may be divided into two basic classes – term and permanent. • Term life insurance provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. • Permanent life insurance is life insurance that remains in force until the policy matures, unless the owner fails to pay the premium when it is due. • Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, mortality and expense charges will not reduce the cash value shown in the policy. • Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account.

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If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy. If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years. Canceling these policies after only a few years can more than double your Life insurance costs. NEED FOR LIFE INSURANCE You need Life Insurance because typically the need for income continues for those who are financially dependent on you, but there is no guarantee of your ability to earn consistently and for the rest of your life. Life insurance can help you safeguard the financial needs of your family. This need has become even more important due to steady disintegration of the prevalent joint family system, and emergence of nuclear families. The need to protect your family's ever growing needs is why you need Life Insurance.

Why Do I Need Life Insurance? 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 Insurance Plan ensures that you are better prepared to face uncertainties. How? In a number of ways:

Protection You need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. It is a thoughtful business concept designed to protect the economic value of a human life for the benefit of those financially dependent on him. That’s a good reason. Supposing you suffer an injury that keeps you from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected. 19

Retirement Life insurance makes sure that you have regular income after you retire and also helps you maintain your standard of living. It can ensure that your postretirement years are spent in peace and comfort.

Savings and Investments Insurance is a means to Save and Invest. Your periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy can come in really handy at the time of your child’s education or marriage! Besides, it can be used as supplemental retirement income!

Tax Benefits Life insurance is one of the best tax saving options today. Your tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned!

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

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Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. It formalized concepts of “bottomry” referring to vessel bottoms and “respondentia” referring to cargo. These provided the underpinning for marine insurance contracts. Such contracts contained three elements: a loan on the vessel, cargo, or freight; an interest rate; and a surcharge to cover the possibility of loss. In effect, ship owners were the insured and lenders were the underwriters. Life insurance came about a little later in ancient Rome, where burial clubs were formed to cover the funeral expenses of its members, as well as help survivors monetarily. With Rome's fall, around 450 A.D., most of the concepts of insurance were abandoned, but aspects of it did continue through the Middle Ages, particularly with merchant and artisan guilds. These provided forms of member insurance covering risks like fire, flood, theft, disability, death, and even imprisonment. During the feudal period, early forms of insurance ebbed with the decline of travel and long-distance trade. But during the 14th to 16th centuries, transportation, commerce, and insurance would again reemerge. Insurance in India can be traced back to the Vedas. For instance,

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Yogakshema, the name of Life Insurance Corporation of India's corporate headquarters is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. And similar to ancient Rome, burial societies were formed in the Buddhist period to help families build houses, and to protect widows and children. Modern Insurance Illegal almost everywhere else in Europe, life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688. The type of insurance we see today owes its roots to 17th century England. Lloyd's of London, or as they were known then, Lloyd's Coffee House, was the location where merchants, ship owners and underwriters met to discuss and transact business deals. While serving as a means of risk-avoidance, life insurance also appealed strongly to the gambling instincts of England's burgeoning middle class. Gambling was so rampant, in fact, that when newspapers published names of prominent people who were seriously ill, bets were placed at Lloyd’s on their anticipated dates of death. Reacting against such practices, 79 merchant underwriters broke away in 1769 and two years later formed a “New Lloyd’s Coffee House” that became known as the “real Lloyd’s.” Making wagers on

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people's deaths ceased in 1774 when parliament forbade the practice. Insurance moves to America The U.S. insurance industry was built on the British model. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC. The Presbyterian Synod of Philadelphia in 1759, sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. And the first life insurance policy for the general public in the United States was issued, in Philadelphia, on May 22, 1761. But it wasn't until 80 years later (after 1840), that life insurance really took off in a big way. The key to its success was reducing the opposition from religious groups. In 1835, the infamous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations. With the creation of the automobile, public liability insurance, which first made its appearance in the 1880s, gained importance and acceptance? More advancement was made to insurance during the process of

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industrialization. In 1897, the British government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents. During the 19th century, many societies were founded to insure the life and health of their members, while fraternal orders provided lowcost, members only insurance. Even today, such fraternal orders continue to provide Insurance coverage to members, as do most labour organizations. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies. Final Thoughts Even though the American insurance industry was greatly influenced by Britain, the US market developed somewhat differently from that of the United Kingdom. Contributing to that was America's size; land diversity and the overwhelming desire to be independent. As America moved from a colonial outpost to an independent force, from a farming country to an Industrial nation, the insurance business developed from a small number of companies to a large industry. Insurance became more sophisticated, offering new types of coverage and diversified services for an increasingly complex country.

KEY FEATURES OF LIFE INSURANCE

1) Nomination: -

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When one makes a nomination, as the policyholder, one continues to be the owner of the policy and the nominee does not have any right under the policy as long as he/she is alive. The nominee has only the right to receive the policy money in case of your death within the term of the policy. 2) Assignment: If your intention is that your policy monies should go only to a particular person, you need to assign the policy in favor of that person. 3) Death Benefit: The primary feature of a life insurance policy is the death benefit it provides. Permanent policies provide a death benefit that is guaranteed for the life of the insured, provided the premiums have been paid and the policy has not been surrendered. 4) Cash Value: The cash value of a permanent life insurance policy is accumulated throughout the term of the policy. It equals the amount a policy owner would receive, after any applicable surrender charges, if the policy were surrendered before the insured's death. 5) Dividends: Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company's divisible surplus. 6) Paid-Up Additions: Dividends paid to a policy owner of a participating policy can be used in numerous ways, one of which is toward the purchase of additional coverage, called paid-up additions. 7) Policy Loans: -

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Some life insurance policies allow a policy owner to apply for a loan against the value of their policy. Either a fixed or variable rate of interest is charged. This feature allows the policy owner an easily accessible loan in times of need or opportunity. 8) Conversion from Term to Permanent: When in need of temporary protection, individuals often purchase term life insurance. If one owns a term policy, sometimes a provision is available that will allow her to convert her policy to a permanent one without providing additional proof of insurability. 9) Disability Waiver of Premium: Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an additional cost. It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE 1) Risk cover: Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of the future. 2) Tax Deduction: Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to one lakh rupees. Life Insurance policies thus decrease the total taxable income of an individual. 3) Loans: An individual can easily access loans from different financial institutions by pledging his insurance policies. 4) Retirement Planning: -

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What had provided protection against the financial consequences of premature death may now be used to help them enjoy their retirement years. Moreover the cash value can be used as an additional income in the old age. 5) Educational Needs: Similar to retirement planning the cash values that flow from ones life Insurance schemes can be utilized for educational needs of the insurer or his children.

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY The Life Insurance Industry has an enviable track record among public sector units. It has a Consistent profit and dividend paying record accompanied by a steady growth in its financial resources. Through investments in the Government sector and socially- oriented sectors the Industry has contributed immensely to the nation's development. The industry is recognized as one of the largest financial Institutions in the country. The ventures initiated by the industry in the areas of Mutual Fund, Housing Finance have done exceedingly well in recent years. To protect the country's foreign exchange reserves, the reinsurance arrangement are so organized that maximum retention is made possible within the country while at the same time protecting interests of the policy holders. SECTION 45 OF THE INSURANCE ACT, 1938 27

“No policy of life insurance effected after the coming into force of this Act shall, after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such a statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at that time of making it that the statement was false or that it suppressed facts which it was material to disclose.” PROHIBITION OF REBATE: SECTION 41 OF THE INSURANCE ACT, 1938 “No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. Any person making default in complying with the provisions of this section shall be punishable with a fine which may extend to five hundred rupees.”

LIFE INSURANCE IS INSURANCE AS WELL AS INVESTMENT It is the special characteristic of life insurance that it not only provides security but is also a form of investment. The insured not only wants to secure his family from the risk of his death, but also wants to invest in the long term insurance plan. Both these elements are possible in life insurance

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because the insurance company promises to pay a fixed amount on the death of the insured, or on his attaining a certain age. Element of Protection: Life insurance is the best way of securing against financial risks. The member of the family insures his life to provide affixed amount security to his family in case of death and his family been secured against any financial strain. Financial problems not only arise on untimely death of the earning member, but also when the earning member becomes old and his energy to work reduces and so does his source of income also reduce. At this stage, he wants to retire and lead a peaceful life. And if he has no source of income at this time he shall have to depend on others, which is a very pitiable stage in old age. That is why; a rational man always saves for his old age, so that he doesn’t have to depend on others for maintaining himself. In such plans, insurance holds the prime position due to the following reasons1) He makes savings in the form of life insurance. To pay a regular premium he has to save necessarily. Though premium takes a form of compulsory expense yet for depositing regular premiums he has to develop a habit of saving. 2) The saving also remains secure in life insurance. The savings kept in a bank account can be withdrawn anytime for expenses, but the amount paid as premium can be received from the insurance company only on attaining a certain age. 3) Life insurance is also a kind of indirect saving. The life insurance policy cannot be forfeited by Income Tax department, even after non-payment of income tax. In this way, the element of economic security is present entirely in a life insurance policy. It is both, an element of protection and a helping hand in the old age. Element of Investment: Life insurance also provides the benefit of investment. The amount of premium consists, apart from the cost of insurance, an amount of investment. This investment constantly increases. And this amount of investment is called Life Fund and represents the element of investment. The Life insurance companies invest the amount of life fund to earn profits, and give the benefits of such profits to the policy holder also. Firstly, while determining the amount of net premium, the amount of interest is deducted from the cost of insurance that constitutes interest from the investment of premium fund. Then the insurance companies 29

distribute most of the part of their profits (up to 90%) to the policyholders as bonus. The investment in Life insurance policy is superior to other kinds of investments because here there is no risk of loosing money and there is no need to invest the whole amount at one time. Life insurance can be called as the best kind of risk- free security, on whose security, lending money is also possible. By nationalization of Life insurance in our country, the insurance policy is guaranteed by the government by which it has become more secure.

KINDS OF LIFE INSURANCE POLICIES Temporary Term Insurance

Term assurance: provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else. There are three key factors to be considered in term insurance: 1. Face amount (protection or death benefit), 2. Premium to be paid (cost to the insured), and 3. Length of coverage (term). Various insurance companies sell term insurance with many different combinations of these three parameters. The face amount can remain constant or decline. The term can be for one or more years. The premium can remain level or increase. A common type of term is called annual renewable term. It is a one year policy but the insurance company guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the insured and with a premium set for the insured's age at that time. Another common type of term insurance is mortgage insurance, which is usually a level premium, declining face value policy. The face amount is intended to equal the amount of the mortgage on the policy owner’s residence so the mortgage will be paid if the insured dies. A policy holder insures his life for a specified term. If he dies before that specified term is up, his estate or named beneficiary receives a payout. If he 30

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

Permanent life insurance is life insurance that remains in force (in-line) until the policy matures (pays out), unless the owner fails to pay the premium when due (the policy expires OR policies lapse). The policy cannot be canceled by the insurer for any reason except fraud in the application, and that cancellation must occur within a period of time defined by law (usually two years). Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time. This means that a policy with a million dollar face value can be relatively expensive to a 70 year old. The owner can access the money in the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and receiving the surrender value. The four basic types of permanent insurance are whole life, universal life, limited pay and endowment. Whole life coverage Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits; guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy. The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Also, the cash values are generally kept by the insurance company at the time of death, the death benefit only to the beneficiaries. Riders are available that can allow one to increase the death benefit by paying additional premium. The death benefit can also be increased through the use of policy dividends. Dividends cannot be guaranteed and may be higher or lower than historical rates over

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time. Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equal if policies are kept in force until average life expectancy. Cash value can be accessed at any time through policy "loans". Since these loans decrease the death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only. If the dividend option: Paid up additions is elected, dividend cash values will purchase additional death benefit which will increase the death benefit of the policy to the named beneficiary. Universal life coverage A universal life insurance policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. Mortality charges and administrative costs are then charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any. With all life insurance, there are basically two functions that make it work. There's a mortality function and a cash function. The mortality function would be the classical notion of pooling risk where the premiums paid by everybody else would cover the death benefit for the one or two who will die for a given period of time. The cash function inherent in all life insurance says that if a person is to reach age 95 to 100 (the age varies depending on state and company), then the policy matures and endows the face value of the policy. Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of them live to age 95, then the mortality function alone will not be able to cover the cash function. So in order to cover the cash function, a minimum rate of investment return on the premiums will be required in the event that a policy matures. Universal life insurance addresses the perceived disadvantages of whole life. Premiums are flexible. Depending on how interest is credited, the internal rate of return can be higher because it moves with prevailing interest rates (interest-sensitive) or the financial markets (Equity Indexed Universal Life and Variable Universal Life). Mortality costs and administrative charges are 32

known. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. And universal life has a more flexible death benefit because the owner can select one of two death benefit options, Option A and Option B. Option A pays the face amount at death as it's designed to have the cash value equal the death benefit at maturity (usually at age 95 or 100). With each premium payment, the policy owner is reducing the cost of insurance until the cash value reaches the face amount upon maturity. Option B pays the face amount plus the cash value, as it's designed to increase the net death benefit as cash values accumulate. Option B offers the benefit of an increasing death benefit every year that the policy stays in force. The drawback to option B is that because the cash value is accumulated "on top of" the death benefit, the cost of insurance never decreases as premium payments are made. Thus, as the insured gets older, the policy owner is faced with an ever increasing cost of insurance (it costs more money to provide the same initial face amount of insurance as the insured gets older) Limited-pay Another type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65. Endowments Endowments are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age. The age this commences is known as the endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. In the United States, the Technical Correct Limited-pay Another type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional

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premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65. Endowments Endowments are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age. The age this commences is known as the endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. In the United States, the Technical Corrections Act of 1988 tightened the rules on tax shelters (creating modified endowments). These follow tax rules as annuities and IRAs do. Endowment Insurance is paid out whether the insured lives or dies, after a specific period (e.g. 15 years) or a specific age (e.g. 65). Accidental Death Accidental death is a limited life insurance that is designed to cover the insured when they pass away due to an accident. Accidents include anything from an injury, but do not typically cover any deaths resulting from health problems or suicide. Because they only cover accidents, these policies are much less expensive than other life insurances. It is also very commonly offered as "accidental death and dismemberment insurance", also known as an AD&D policy. In an AD&D policy, benefits are available not only for accidental death, but also for loss of limbs or bodily functions such as sight and hearing, etc. Accidental death and AD&D policies very rarely pay a benefit; either the cause of death is not covered, or the coverage is not maintained after the accident until death occurs. To be aware of what coverage they have, an insured should always review their policy for what it covers and what it excludes. Often, it does not cover an insured that puts himself at risk in activities such as: parachuting, flying an airplane, professional sports, or involvement in a war (military or not). Also, some insurers will exclude death and injury caused by proximate causes due to (but not limited to) racing on wheels and mountaineering. 34

Accidental death benefits can also be added to a standard life insurance policy as a rider. If this rider is purchased, the policy will generally pay double the face amount if the insured dies due to an accident. This used to be commonly referred to as double indemnity coverage. In some cases, some companies may even offer a triple indemnity cover. NATIONALISATION OF LIFE INSURANCE IN INDIA On 19th January, 1956, the Indian Government issued an emergency ordinance, whose objective was to nationalize life insurance. As a result of this ordinance, the business of life insurance which was in the hands of private sector organizations at that time now came in the hands of the Government of India. At the time of nationalization, in our country 154 Indian Insurance companies, 16 foreign insurance companies and 75 private insurance societies were working in the Insurance business. In June 1956, an Act by the name of Life Insurance Corporation Act, 1956 was passed in the Parliament, which came into force from 1st July 1956 in India. As a result of this Act, a Government organization was established which is known as ‘Life Insurance Corporation of India’. The Life Insurance Corporation started the insurance business from 1st September, 1956.

REASONS OR OBJECTIVES OF NATIONALISATION 1) To arrange funds for Five Year Plans of the Government of India. 2) To widely propagate Life Insurance even in villages and small towns. 3) To eliminate unhealthy competition among Private Insurance Companies. 4) To end mismanagement, spread in Private Insurance Companies. 5) To increase the per person insured amount. 6) To establish a socialist society, to give maximum benefits to the society. 7) To reduce the wasteful administrative expenses of the Private Insurance Companies. 8) To secure the interests of small insured persons.

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9) To create a sense of saving among people. 10)To utilize the ‘Life Insurance Fund’ properly. 11) To end the delays in payments on maturity to insured by Private Insurance Companies. 12)To decentralize economic and financial power from the hands of Private Insurance Companies.

INTRODUCTION ABOUT THE COMPANY Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance Company and Bajaj Finserv. (recently demerged from Bajaj Auto.) Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has over 115 years of financial experience and is present in over 70 countries around the world. At Bajaj Allianz Life Insurance, customer delight is our guiding principle. Our business philosophy is to ensure excellent insurance and investment solutions by offering customized products, supported by the best technology. It started in 2001. Financial services arm's profit rises to Rs 42 crore BS Reporter / Mumbai July 16, 2009, 0:40 IST

Bajaj Finserv, the financial services arm of the Bajaj Group, posted a net profit of Rs 42 crore for the quarter ended June 30, 2009. It had posted a loss of Rs 36 crore in the corresponding period last year. The group’s life insurance arm, Bajaj Allianz Life Insurance Company, was the biggest contributor to the firm’s income. Bajaj Allianz has posted a profit of Rs 68 crore in the June quarter. In the year-ago quarter, it had posted a loss of Rs 3 crore. 36

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

ALLIANZ GROUP Allianz Group is one of the world's leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. At the top of the international group is the holding company, Allianz AG, with its head office in Munich. Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of • Property and Casualty Insurance, • Life and Health Insurance, • Asset Management and Banking. • ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE • Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 crore. • 3rd largest Assets under Management (AUM) & largest amongst Insurance cos. - AUM of Rs.51, 96,959 crore. • 12th largest corporation in the world

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• 49.8 % of global business from Life Insurance • Established in 1890, 110 yrs of Insurance expertise • 70 countries, 173,750 employees worldwide

BAJAJ GROUP Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world. A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous with quality & customer focus. A STRONG INDIAN BRAND- HAMARA BAJAJ • One of the largest 2 & 3 wheeler manufacturer in the world • 21 million+ vehicles on the roads across the globe • Managing funds of over Rs 4000 cr. • Bajaj Auto finance one of the largest auto finance cos. in India • Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03 • It has joined hands with Allianz to provide the Indian consumers with a distinct option in terms of life insurance products. • As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to offer • Financial strength and stability to support the Insurance Business. • A strong brand-equity. 38

• A good market reputation as a world class organization. • An extensive distribution network. •

Adequate experience of running a large organization.

Fiscal Year 2001-2002(6 months) 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

Accelerated Growth No. of policies sold 21,37 1,15,965 1,86,443 2,88,189 7,81,685 20,79,217 37,44,742

New Business in FY Rs. 7 cr. Rs. 63.3 cr. Rs. 180 cr. Rs. 857 cr. Rs. 2,717 cr. Rs. 4,302 cr. Rs. 6,674 cr.

Mission of the company India has 102 crore population but only 16 crore people are insured till now. Still 86 crore People are yet to be insured. Also in broader perspective, company wants to make every person get benefited through investing in Bajaj Allianz Life Insurance. The Company is focusing on improving employee productivity, policy persistency, operational processes and service levels. Vision of the Company 1) To be the first choice insurer for customers. 2) To be the preferred employer for staff in Insurance industry. 3) To be the number one insurer for creating shareholder value 4) To aspire to be a world class organization.

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5) To encourage organizational transparency. 6) To value integrity.

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

Details of the Company Managing Director and CEO – Mr. Kamesh Goyal 40

Sashi Krishnan, CIO, Bajaj Allianz Life Insurance

C.F.O. – Mr. Rajesh Viswanathan

Head, Marketing- Mr. Sanjay Jain

BOARD OF DIRECTORS: Mr. Rahul Bajaj (Chairman) Dr. Werner Zedelius Mr. Sanjay Asher Mr. Niraj Bajaj 41

Mr. Sanjiv Bajaj Mr. Heinz Dollberg Mr. Ranjit Gupta Mr. S. H. Khan Mr. Suraj Mehta Mr. Dietmar Raich Mr. Manu Tandon Mr. Kamesh Goyal (Alternate Director to Dr. Werner Zedelius) Address Branch Address: Bajaj Allianz Life Insurance Co. Ltd. Shalimar Towers, TC-57N Vibhuti Khand Gomtinagar, Lucknow-226010. Telephone: (+91 522) 6450751 Head Office Address: Bajaj Allianz Life Insurance Company Limited GE Plaza, Airport Road, Yerawada, Pune-411006 Maharashtra Telephone: (+91 20) 66026777

CHANNEL PARTNERS OF BAJAJ ALLIANZ Standard Chartered Bank Contact Number : 022 2492 8888 E-mail Address: [email protected]

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Syndicate Bank Contact Number : 020 4026 742 E-mail Address: [email protected] www.syndicatebank.com Placement Sales and Services Ltd. Contact Number : 0487-2388666,2385922 Tele Fax 2388666 E-mail Address: [email protected] Address: Regency Centre, Kalavary Road, West Fort, Thrissur –4 Kerala, India Team Life Care Co. (India) Ltd.

www.teamlifecare.in

Contact Number : 0427 - 2410707; 2420707; Tele Fax 2421245 Address: 5/118, Yercaud Main Road, Chinnakollapatti, SALEM - 636008. Ernestine Consultants Pvt Ltd. Contact Number : 080- 4034 1999 Fax- 080 - 4034 1920 Address: 1011, Ist Floor 3rd Cross, 13th Main HAL 2nd Stage, Indira Nagar Bangalore-560038

COSMOS Co-op BANK Ltd. Contact Number : 020 2488051 E-mail Address : [email protected] www.cosmosbank.com 43

Organizational chart Branch Manager V V Business Development Manager (B.D.M.) V V Assistant Business Development Manager (A.B.D.M.) V V Insurance Sales Officer (I.S.O.)

PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE 1) BAJAJ ALLIANZ NEW FAMILYGAIN

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The thumb rule for buying insurance is that your insurance needs are minimal in your early earning years, increases with added responsibilities (Marriage, children, loans etc.) and taper off by the time you retire. It is difficult to find a single insurance plan that can take care of all your changing requirements in life additional protection, more money to invest, sudden requirement of cash or a steady post-retirement income. With Bajaj Allianz New Family Gain, you can invest in one life insurance plan that can take care of all your changing requirements. This plan has been designed to provide you with maximum flexibility, so that you do not have to worry about your changing needs. The Bajaj Allianz New Family Gain comes with a host of features to allow you to have the best of all worlds - Protection and Investments. It enables every participant to create a solid financial protection and savings plan for himself and his family. In this way, as a participant in the Bajaj Allianz New Family Gain Plan, you can secure your well-being and accumulate savings towards financial independence and a comfortable retirement. The Key Features of the New Family Gain Plan are: • It is a unit linked Endowment type plan with a minimum term of 10 years and maximum maturity age 70 years. • Guaranteed death benefit: Sum Assured Plus Fund Value of Units. • You have the option to choose a host of additional rider benefits: UL Accidental Death Benefit, UL Accidental Permanent Total/Partial Disability Benefit. • It provides you with an easy, regular contribution mechanism to assist you in accumulating funds. • You can select an investment strategy to grow the funds contributed. • Choice of 7 investment funds today with flexible investment management: you can change funds at any time and also invest in the newer funds that would be introduced from time to time. The premiums allocated are invested in fund/funds of your choice (depending on the allocation rate) and units are allocated depending on the price of units for the fund/funds. The value of your policy is the total value of units that you hold in the fund/funds. The insurance cover charges, policy administration charges and the additional rider benefit charges are deducted through monthly cancellation of units. The Fund Management Charge is priced in the unit value.

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You can choose a Sum Assured (Level of Protection) that you want in the New Family Gain Plan. Minimum Sum Assured = 5 times of Annualized Premium Maximum Sum Assured = Policy Term times of Annualized Premium

Death Benefit: The death benefit will be 1) On death before attaining the age of 7 year: The death benefit will be the NAV of the units in the policyholder's account (Fund Value) as on date of receipt of intimation of death at the office. The policy terminates on the death of the life assured. 2) On death on or after attaining the age of 7 years: The death benefit will be the sum assured plus the NAV of the units in the policyholder's account (Fund value) as on date of receipt of intimation of death at the office. Maturity Benefit On maturity, the NAV of units in the fund will be paid out and the policy will terminate. Additional Rider Benefits available with New Family Gain You have the option to add the following additional rider benefits, providing total protection against uncertainties. • UL Accidental Death Benefit • UL Accidental Permanent Total & Partial Disability Benefit (Please refer to the brochure on additional rider benefits for more details.) Assured protection even if you miss payment of your premiums Bajaj Allianz New Family Gain provides you with the unique feature of continued protection even if you forget to pay your premiums. After payment of 3 full years' premiums, when premiums due are not paid the 46

policy will be kept in-force, with full insurance benefits by way of deducting units for the Cost of Insurance and all other charges, provided the Fund Value less surrender charge, if any does not falls to an amount equivalent to one annual premium under the policy. Bajaj Allianz New Family Gain offers you a choice of 7 funds. You can choose to invest fully in any one fund or allocate your premiums into the various Funds in a proportion that suits your investment needs. TAX BENEFITS Premiums paid and benefits received will be eligible for tax benefits as per applicable tax laws. As per the current tax laws: Premiums payable are eligible for tax benefits as per Section 80C of the Income Tax Act. Partial Withdrawals, Surrender Value, Death Benefit and Maturity Benefit are eligible for tax benefits as per Section 10(10D) of the Income Tax Act. In case of change in any tax laws relevant to the policyholder or the fund performance, the same will be applied as per regulations prevailing at that point of time. RISK OF INVESTMENT UNDER UNIT LINKED PLANS The Proposed/Life Assured is aware that the investment in the Units is subject to the following, amongst other risks and agrees that he is making the investment in the Units with full knowledge of the same. • Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. • The premium paid in unit linked life insurance policies are subject to investment risks associated with capital markets and the Unit Price of the units may go up or down based on the performance of the fund and factors influencing the capital market and the insured/policyholder are responsible for his/her decisions. • Bajaj Allianz Life Insurance is only the name of the insurance company and Bajaj Allianz New Family Gain is only the name of the policy and does not in any way indicates the quality of the policy, its future prospects or returns. • Please know the associated risks and the applicable charges from your policy document or by consulting the Company, your Insurance agent or your Insurance intermediary. 47

• Pure Stock Fund, Equity Index Fund II, Bond Fund, Asset Allocation Fund, Accelerator Mid-Cap Fund, Equity Growth Fund and Liquid Fund are the names of the funds offered currently with Bajaj Allianz New Family Gain, and in any manner do not indicate the quality of the respective funds, their future prospects or returns. • The investments in the Units are subject to market and other risks and there can be no assurance that the objectives of any of the funds will be achieved. • Pure Stock Fund, Equity Index Fund II, Bond Fund, Asset Allocation Fund, Accelerator Mid-Cap Fund, Equity Growth Fund and Liquid Fund do not offer a guaranteed or assured return. • All benefits payable under the Policy are subject to the tax laws and other financial enactments, as they exist from time to time. • The past performance of other funds of the company is not necessarily indicative of the future performance of any of these funds. Important details of the plan: Minimum Age at Entry: 0 years(Risk commences at age 7) Maximum Age at Entry: 60 years Minimum Age at Maturity: 18 years Maximum Age at Maturity: 70 years Minimum Term: 10 years. For minor lives: 18 minus age at entry of minor life subject to minimum of 10 years. The minimum age at entry for all additional rider benefits is 18 years. The maximum age at entry for all additional rider benefits is 50 years. For your convenience, we have provided 3 premium payment modes that can be Yearly, Half-Yearly, and Quarterly. We also offer a Monthly premium payment mode with salary deduction schemes or ECS. The minimum premium is Rs. 5000 for the Yearly Mode, Rs. 2,500 for Half Yearly, Rs. 1,250 for Quarterly and Rs. 500 for the Monthly Mode. In addition, you also have the option to pay topups to increase your investments. The minimum top-up premium is Rs. 1,000. If any due regular premium is not paid within the days of grace in the first three policy years, the policy shall lapse. The policyholder will get an opportunity to revive the policy within two years from the date of first unpaid premium, and if he does not revive during this period the contract shall be terminated and the surrender value will be the fund value as on date of lapse less surrender charge, if any. This would be paid on the expiry of the revival period or three policy years, whichever is later.

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If policy is lapsed and death occurs during this period, the fund value as on date of lapse would be paid and the policy will terminate immediately. If all the due premiums have been paid for at least first three consecutive years and subsequent premiums are unpaid, you will be given an opportunity to revive the policy within two years from the first unpaid premium. During this limited period for revival, the insurance covers under the policy shall continue levying all appropriate charges by cancellation of units at the prevailing unit price to meet the mortality charge and other expense charges until the Fund value in respect of Regular Premium less surrender charge, if any, falls to an amount equivalent to one annual premium (NAV) across all the funds. At the end of two years i.e. period for revival, if the contract is not revived, you can opt to continue the insurance cover under the policy subject to deduction of all charges until the Fund value in respect of Regular Premium less surrender charge, if any, falls to an amount equivalent to one annual premium (NAV) across all the funds. If you do not opt to continue with the insurance cover after the revival period, the contract shall be terminated by paying the fund value as on date of termination less surrender charge, if any. When the Fund value in respect of Regular Premium less surrender charge, if any, falls to an amount equivalent to one annual premium you will be notified about this and the contract shall be terminated by paying the fund value as on date of termination less surrender charge, if any.

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

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Key highlights of Bajaj Allianz New Unit Gain  Your investment, apart from normal allocation receives Loyalty units

Equivalent to 51% of the first year’s Annualized Premium over a period of 10 years.  Choice of 2 investment portfolio strategies to manage your investments Better.  Your Policy continues to participate in the investment performance of the fund(s), even if you are not able to pay 3 full years’ premiums.  Maximum flexibility: • Option to increase the premium • Partial withdrawal anytime after 3 years from the commencement of the policy, provided 3 years’ regular premiums have been paid. • Three free switches every year. • Option to pay unlimited top-up premiums anytime during the tenure of the policy, to further enhance your savings. o Three simple terms to choose from: 15, 20 and 25 years. o A host of additional rider benefits to provide you with additional protection. o Guaranteed Life Cover, with flexibility to choose insurance cover to suit your changing needs.

3) PENSION GUARANTEE Your date of retirement is closing in. You want something that gives you an assured income long after you’re retired. We at Bajaj Allianz Life Insurance are aware of this need, and have come up with a plan that lasts you for a lifetime. Invest your savings in the Bajaj Allianz Pension Guarantee, a plan that gives you a guaranteed income, till your time comes. The “Bajaj Allianz Pension Guarantee” Plan With Bajaj Allianz Pension Guarantee, you can ensure a regular income after retirement. The plan offers you a range of immediate annuities to choose from. The immediate annuities available are:

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• Bajaj Allianz Pension Guarantee- Life Annuity: Annuity for Life • Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 5 years and life thereafter • Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 10 years and life thereafter • Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 15 years and life thereafter • Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 20 years and life thereafter • Bajaj Allianz Pension Guarantee-Return of Capital: Annuity for life with Return of Capital (Purchase Price) How does “Bajaj Allianz Pension Guarantee” work? All you have to do is pay a lump sum amount to Bajaj Allianz Life Insurance Company and the annuity payments will start after expiry of monthly/quarterly/half-yearly/ yearly interval corresponding to the payment mode selected by you. Under all the options, annuity is payable for life, so you do not have to worry about your income stopping at any stage. Under the Return of Capital option (option 6 above), the amount used to purchase the annuity is paid to the nominee on the death of the annuitant. Important details of the “Bajaj Allianz Pension Guarantee” Plan Minimum Age at Entry 45 Maximum Age at Entry 80 Minimum Purchase Price Rs. 25,000 Minimum Annuity Installment Rs. 1,000 Annuity Frequency Mode For your convenience we have provided 4 Annuity Frequency Modes that can be Yearly, Half yearly, Quarterly or Monthly. The annuity will be payable one month/quarter/half year/year after the date of purchase depending on the mode selected.

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The Sample Annuity Rate per annum per Rs.1 lakh of purchase price is given below. The annuity rate varies between different purchase price bands. Tax Benefits The policy will be eligible for tax benefits under Section 80C of the Income Tax Act as of now. 4) BAJAJ ALLIANZ PROTECTOR Dreams and Aspirations - we are constantly driven in our pursuit of these. House, Consumer Durables, visits to exotic locations are some of the dreams we live for. And the best way to fulfill them is through easy loans available at today’s low interest rates. With small equated monthly installments, the price is not too heavy. Yet, who can predict the unfortunate twists and turns in life? And in case of unfortunate death of the loanee, the burden of repayment falls on the family. Bajaj Allianz Protector is the perfect plan to protect your family from the repayment liability of outstanding loans. All this at a very nominal cost. Now, is there a better way to provide for your family’s financial security? The Bajaj Allianz Protector Plan The Bajaj Allianz Protector Plan is a mortgage term insurance plan that covers the outstanding principal amount of a loan. It is an economical way to protect the family from the burden of repayment of the loan in case of death of the loanee. The plan is designed to pay a sum insured that will be equal to the outstanding principal amount of the loan due. The Bajaj Allianz “Protector” Plan offers you the convenience of choosing between two premium payment options • Regular Premium Payment - Premium payment limited to approximately 2/3rd of the loan tenure, while coverage continues for the full tenure of the loan. • Single Premium Payment - One time premium payment covering you for the full tenure of the loan.

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Joint life availability You have the option to cover the co-applicant of the loan under this plan. Under this option, both lives will be covered and the death benefit will be payable in case of death of either life. The policy terminates on death of either life. Benefits Payable Death Benefit The death benefit is equal to the outstanding principal amount of the loan due as per the loan schedule, irrespective of changes in interest rate/term at a later stage. The outstanding amount of loan due will depend on the loan amount, loan tenure and interest rate as agreed upon at the time of disbursement of the loan. Important details of the ‘Bajaj Allianz Protector’ Plan Eligibility Condition Minimum Sum Assured Rs. 2, 00,000 Maximum Sum Assured No Limit Minimum Age at Entry 20 Yrs Maximum Age at Entry 55 Yrs Maximum Age at Policy Expiry Date 65 Yrs Minimum Term for Single Premium 2 Yrs Minimum Term for Regular Premium 5 Yrs Maximum Term (Regular and Single Premium) 30 Yrs Premium Payment Mode For your convenience we have provided 5 Premium Payment Modes that can be single premium, yearly, half-yearly, quarterly or monthly. The premium for frequencies other than yearly mode is the annual premium multiplied with the frequency factor (0.51 for the half yearly mode, 0.26 for the quarterly mode, and 0.09 for the monthly mode). Monthly mode is permitted only by salary deduction or direct bank debit. The minimum premiums are Rs. 2500 for the Single Premium, Rs. 1000 for the annual mode, Rs. 700 for the halfyearly mode, Rs. 450 for quarterly mode and Rs. 175 for monthly. 53

Tax Benefits Tax benefits under Section 80C and Section 10(10)D available as per applicable tax laws. All payments due under this plan shall be governed by tax laws applicable at that point of time. Surrender values/Paid up Values There are no surrender values or paid-up values under this plan. Loans Loans are not available under this plan Change of Occupation On change of occupation, depending upon the nature of the new occupation, the premiums and benefits may be modified. Days of Grace In case of non-payment of premiums, a grace period of 30 days will be allowed for the yearly, half yearly and quarterly modes (15 days for the monthly mode). After that the policy will lapse. Revival of the Policy It is possible to revive a policy that has lapsed due to nonpayment of premiums within 5 years from the date of lapse. The revival will be effected subject to underwriting. In case of joint life, revival would be subject to underwriting on both lives. General Exclusion In case the life assured (in case of joint life, either of the life assured) commits suicide within one year from the date of commencement / reinstatement of the policy, the benefits of the plan would not be payable, and the premiums would be refunded. 5) TERM CARE Life Insurance..... At the back of our minds we are often nagged by certain fears, the fears of an uncertain future, the insecurity of not

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being able to provide adequately for our loved ones, the fear of not being able to save enough. Life Insurance is the only complete answer to these fears. It is life insurance that provides you with the security of a financial safety net and enables you to plan for unpredictable adversities. Happiness often sneaks in through a door you didn't know you left open. Let life insurance be that door for you. The 'Bajaj Allianz Term Care' Plan The 'Bajaj Allianz Term Care' Plan is a term insurance plan. It is an economical way of providing for one's life cover and at the same time ensuring that the premiums paid are returned at maturity. What does the 'Bajaj Allianz Term Care' Plan offer you? This plan not only offers you life insurance cover at a low cost, but also provides for return of premiums on maturity. The premiums returned at maturity will be equal to the single premium or the sum total of equivalent annual premiums of the Economy Pack (excluding extra premiums charged, if any). In case of pre-mature death during the policy term, the full Sum Assured will be paid to the nominee. The 'Bajaj Allianz Term Care' Plan offers you the convenience of choosing between two premium payment options. • Regular Premium Payment - Premium payment throughout the selected term. • Single Premium Payment - One time premium payment for the selected term at commencement. Apart from covering the risk of natural death, this plan also provides you the option to choose upto 5 additional benefits. You can select a specific combination of additional benefits best suited to your needs, available in 4 attractive packages to choose from. i. Economy: This is the basic plan, which is available for both the regular and single premium payment options.

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ii. Protect: This pack comes with the following 3 in-built additional benefits: a. Accidental Death Benefit. b. Accidental Permanent Total/Partial Disability Benefit. c. Waiver of Premium Benefit (in case of accidental permanent total disability). The Protect Pack is available with the regular premium payment option only. iii. Health: This pack comes with the following 2 in-built additional benefits: a. Critical Illness Benefit. b. Hospital Cash Benefit. The Health Pack is available with the regular premium payment option only. iv. Total: This pack comes with the following 5 in-built additional benefits: a. Accidental Death Benefit. b. Accidental Permanent Total/Partial Disability Benefit. c. Waiver of Premium Benefit (in case of accidental permanent total disability). d. Critical Illness Benefit. e. Hospital Cash Benefit. The Total Pack is available with the regular premium payment option only. What are the in-built benefits that the 'Bajaj Allianz Term Care' Plan offers you? a. Accidental Death Benefit Accidents are always sudden and sometimes fatal. You can't lessen the emotional shock, but you can certainly soften the financial one. Bajaj Allianz Accidental Death Benefit gives your loved ones something to start with after the permanent loss of your income by paying double the basic Sum Assured. The total Accidental Death Benefit shall however be subject to a maximum of Rs. 10, 00,000/- under all policies taken with Bajaj Allianz together. b. Accidental Permanent Total/Partial Disability Benefit Accidents are unpredictable and so are the consequences. This may lead to a disability - partial or total. The Bajaj

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Allianz Accidental Permanent Total/Partial Disability Benefit provides a financial cushion against such misfortunes. Type of Disability Benefits Accidental Permanent Partial Disability 50 % of Sum Assured * Accidental Permanent Total Disability 100 % of Sum Assured ** * Subject to a maximum of Rs. 5, 00,000/- under all policies with Bajaj Allianz taken together. ** Subject to a maximum of Rs. 10, 00,000/- under all policies with Bajaj Allianz taken together. c. Waiver of Premium Benefit An accident may lead to permanent total disability limiting your ability to earn. The Bajaj Allianz Waiver of Premium Benefit is a helping hand when you need it most. It keeps your insurance cover alive by waiving off future premiums and enables you to live up to your commitments. d. Critical Illness Benefit Some illnesses are critical. They not only alter your life's pattern but also result in a financial drain. Bajaj Allianz Critical Illness Benefit softens the impact on your family by paying out the Critical Illness Benefit (equal to the Sum Assured) under the plan immediately, while other policy benefits continue (excluding Hospital Cash Benefit). We cover 11 Critical Illnesses. e. Hospital Cash Benefit The worry of settling hospital bills (room charges) adds to the trauma of hospitalization. Bajaj Allianz Hospital Cash Benefit reduces this financial burden and helps you to recover with peace of mind. Flexibility in Coverage* At Bajaj Allianz, we believe in offering benefits and not just products. We realize that you are unique and your needs for insurance vary with time. We therefore offer you the flexibility of including the following benefit combination at each policy anniversary.

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• Combination 1: Accidental Death Benefit; Accidental Permanent Total/Partial Disability Benefit; Waiver of Premium Benefit. This combination can be added, if not taken earlier, deleted and added subsequently at each policy anniversary. We also offer the flexibility of excluding the following benefit combination: • Combination 2: Critical Illness Benefit; Hospital Cash Benefit. This combination can be taken at inception only but can be excluded subsequently at any policy anniversary. Once excluded, Combination 2 cannot be included in the policy subsequently. * Available with the regular premium payment option only Other important details of the 'Bajaj Allianz Term Care' Plan. Eligibility Condition Minimum Age at Entry Maximum Age at Entry Maximum Age at Maturity Minimum Term Maximum Term Minimum Sum Assured 00,000/Maximum Sum Assured 00,000/Minimum Premium Yearly,

18 Years 50 years 65 years 5 years 40 years Rs. 1, Rs. 10, (Rs.) 1500/- for Rs. 1500/- for

Half Yearly. The minimum premium for Single Premium option shall be Rs. 6000/Premium Payment Mode For your convenience we have provided 3 Premium Payment Modes that can be single premium, yearly or half-yearly. 58

6) BAJAJ ALLIANZ NEW RISK CARE PLAN Bajaj Allianz New Risk Care plan, a bouquet of happiness, security and pride for you & your family. Commitments towards the family are non-measurable and countless. It’s our endeavor to keep up your commitments by sharing your burdens and reducing your liabilities. In case of any mishap or unfortunate event, the plan will always stand by you as a pillar of strength. Bajaj Allianz New Risk Care helps you to secure your family’s well being, and create a strong financial back up in case of any unforeseen eventualities. Allow us to take over your financial concerns and worries to rest on us. “Insure your Today with us to ensure your family’s Smiles Tomorrow” The Key Features of Bajaj Allianz New Risk Care: • A non-participating traditional Term Assurance plan. • Higher insurance coverage at Low premium. • Regular/Single Premium payment options. • Enhanced Protection options available through Additional Rider Benefits. • Rebates on premium in-case of high sum assured (both on regular and single premium mode). How does the Bajaj Allianz New Risk Care work? What are the Benefits? You are required to make regular installments or a one-time payment. In case of any unfortunate happening before maturity of the policy, the Death Benefit on the policy will be paid to the nominee. There is no maturity benefit. Power of 4 for Enhanced Protection Power of 4 for Enhanced Protection • Accidental Death Benefit: Covers against Accidental Protection. • Accidental Permanent Total/Partial Disability Benefit: Covers against Disability protection. • Critical Illness Benefit: Covers you against 11 defined critical diseases.

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• Hospital Cash Benefit: Reduces your burden against hospitalization expenses. (For complete details on riders, please refer to our Additional Rider Benefits Brochure. These additional Rider Benefits are available on regular premium policies only and not on single premium policies.) Flexibility in Coverage At Bajaj Allianz, we believe in offering solutions and not just benefits. We believe that you are unique and your needs for insurance are different from others and vary with time. We therefore present you New Risk Care with Additional Rider Benefits, which offers you the flexibility of inclusion or exclusion of coverage at each policy anniversary, subject to conditions relating to such inclusions and exclusions. “Accidental Death Benefit, Accidental Permanent Total/Partial Disability Benefit” can be included or excluded at each policy anniversary, but once excluded cannot be included again. Hospital Cash Benefit (HCB) and Critical Illness (CI) can be taken at inception only. HCB & CI can be reduced or excluded subsequently at any policy anniversary. Once reduced or excluded, they cannot be increased or included subsequently. Minimum Premium Amount Rs. 200 per Monthly installment (through salary deduction or ECS), Rs. 500 per Quarterly installment, Rs. 1,000 per HalfYearly installment, Rs. 1,500 per Yearly installment, Rs. 5,000 for Single Premium. Important Details Minimum Entry Age 18 years Maximum Entry Age 60 years Maximum Maturity Age 65 years Minimum Policy Term 5 years Maximum Policy Term 40 years Minimum Sum Assured Rs.4, 00,000 Maximum Sum Assured Rs.50, 00, 00,000 Premium paying frequency yearly

Yearly/Half

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/Quarterly/Monthly/ Single High Sum Assured Rebate (HSAR)

On Sum Assured of Rs. 10,00,000 or more

Indicative Premiums The table below illustrates the premium rates* for New Risk Care. Age: 30 Years Gender: Male Sum Assured: Rs. 5, 00,000 Payment Mode 10 25 Single Premium (in Rs.) 9,045 22,630 Regular Annual Premium (in Rs.) 1,665 2,065

15

Term 20

13,140

17,650

1,840

1,970

*Excluding service tax. Death benefit In case of any unfortunate happening before maturity of the policy, the Death Benefit equal to the chosen Sum Assured on the policy will be paid to the nominee. Surrender Value In case of Single Premium mode, the policy can be surrendered after five years from Policy Commencement Date and the surrender value is equal to 0.70*(n-t)/n*Single Premium, where “n” is Policy Term and “t” is elapsed duration in years from Policy Commencement Date to the Policy Anniversary following the date of surrender. Surrender value is not payable on Regular Premium mode. Revival of lapsed Policy You may revive the lapsed policy within two years from first unpaid premium by paying all due regular premiums along

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with interest compounding half-yearly at such rate as the Company may decide from time to time. Tax Benefits Premium paid will be eligible for tax benefit under Section 80C. The death benefit will be eligible for tax benefit under Section 10(10) D as per the prevailing tax laws. Nomination Nomination can be made for receiving policy proceeds in case of death. General Exclusion If the Life Assured commits suicide whether sane or insane, within one year from the Policy Commencement Date or Commencement of Risk, the Company will not entertain any claim by virtue of this Policy except to the extent of the Installment/Single Premium paid. The actual date of death will be the basis for determining the validity of the contract of insurance. 7) CHILD GAIN Are your children destined for greatness? Will they devise the universal currency, or solve the problem of global warming? Will they make music like we have never heard before, or keep shattering records in sports? Will they bring God to men, or peace to the world? Your children may just be the ones to end wars, feed the hungry, and care for many. Your child can aim for the highest echelons of success, for greatness, and immortal fame. Your child can dream. But before your child does, you must. Bajaj Allianz ‘ChildGain’ Plan Taking care of a child is perhaps the most important job a parent can have. It is natural that you would like to give your child your best, and therefore, this is the time when careful financial planning can help you fulfill the aspirations that you have for your children. The Bajaj Allianz ChildGain Solutions

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help you to enjoy the joys of parenthood responsibly, with the reassurance of a secure future for your child. What does Bajaj Allianz ‘ChildGain’ Plan offer you? Bajaj Allianz ChildGain offers a wide array of solutions that allows you to plan for your child’s future by providing you with as many as 4 distinct and unique options. Option 1: ChildGain 21 Option 2: ChildGain 24 Option 3: ChildGain 21 Plus Option 4: ChildGain 24 Plus Common features in the 4 Options of Bajaj Allianz ‘ChildGain’ Plan 1. Limited Premium Payment Term which means that the premiums are payable till your child attains age 18 years. 2. Your contributions grow by the way of compounded annual bonuses, which will be paid to you with the first guaranteed payout (policy anniversary following age 18 of your child), for in-force policies. In addition to the annual bonuses, a terminal bonus may also be paid. 3. You are eligible for Tax Benefits under Section 80C and Section 10(10) D of the Income Tax Act. 4. Assuring Your Child’s Future: In an uncertain world, the prime interest of your child cannot be jeopardized in any way. This is why we have built in some added benefits in all our plans to protect the interests of your child’s future, by counter insuring you- the policy holder. Inbuilt Benefits • Premium Waiver Benefit: In case of death or accidental total permanent disability of the policyholder during the premium payment term, all future premium payments are waived. This benefit will not be available in the event of accidental permanent total disability after age 65 of the policyholder.

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• Family Income Benefit: In case of death or accidental total permanent disability of the policyholder during the term of the policy, a monthly income benefit of 1% of the sum assured (12% per annum) subject to a maximum of Rs.10,000 p.m. becomes payable till the end of the policy term. This benefit will not be available in the event of accidental permanent total disability after age 65 of the policyholder. • Option to Purchase further Insurance at Maturity: For ensuring continuity of the valuable insurance protection that the child was enjoying, we offer the child an option to purchase a with profits endowment or an equivalent plan from Bajaj Allianz Life Insurance Company for twice the amount of face value of this policy, without any medical examination, on the premium rates prevailing at that time (The application must be made at least 6 months prior to maturity of this policy). Payout Structures For ChildGain 21 and ChildGain 21 Plus: The minimum guaranteed payouts are as follows: Policy Anniversary following 21 completion of Age Payout as % of Sum Assured 35%*

18

19

20% + Accrued 25%

20 25%

Bonuses For ChildGain 24 and ChildGain 24 Plus: The minimum guaranteed payouts are as follows: Policy Anniversary following 24 completion of Age Payout as % of Sum Assured 40%

18 25% + Accrued

20

22

25% 25%

Bonuses

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•

refers to probable increase in payout based on higher interest during the payout period.

Start of Life Benefit Unique Feature of Bajaj Allianz ‘ChildGain’ 21 Plus and 24 Plus These packages offer you the choice of providing a unique Start of Life Benefit for your child. For a nominal amount, an additional Sum Assured subject to a maximum limit of Rs. 10 lakhs will become payable to enable the child start his/her professional life smoothly, in case of an unfortunate death or Accidental Permanent Total Disability of the Policyholder during the term of the policy. This benefit will not be available in the event of accidental permanent total disability, after age 65 of the policyholder. Death Payout: In the event of unfortunate death of the child during the policy term, the payouts shall be as under:

Age Below 7 years

Payout Premiums paid will be refunded without interest and the policy will terminate.

Above 7 and below 18 years

Sum assured with accrued bonuses will be paid and the policy will terminate.

Above 18 and Outstanding payouts will be paid as one lump sum below 24 years and the policy will terminate. Important details of Bajaj Allianz ‘ChildGain’ Plan Eligibility Conditions

ChildGain 21 and

ChildGain 24 and 65

ChildGain 21 Plus ChildGain 24 Plus Minimum age of the policyholder 20 20 Maximum age of policyholder 50 50 Minimum age of child 0 0 Maximum age of child 13 13 Minimum Premium Payment Term 5 5 Maximum Premium Payment Term 18 18 Maximum Policy term 21 less age at 24 less age at entry of LA (Child) entry of LA (Child) Maximum age of child at maturity 21 24 Minimum Sum Assured Rs. 100000 Rs. 100000 Maximum Sum Assured Rs. 5000000 Rs. 5000000 Minimum Premium Minimum Premium Rs. 5000 for yearly mode, Rs. 3,000 for half year mode, Rs. 3,000 for quarterly mode and Rs. 700 for monthly mode (Monthly mode available under salary deduction scheme only and minimum proposal deposit should be Rs.2100 i.e. three months payment in advance). Age = Age on last birthday. The Policy Term + Age of policyholder should not exceed 70 for all plans. Premiums For your convenience we have provided 4 Premium Payment Modes that can be Yearly, Half-yearly, Quarterly and monthly. We also offer a Monthly Premium Payment Mode under salary deduction schemes. Surrender We offer you the choice of surrendering the policy provided three full years’ premiums have been paid (Two years for premium payment terms of 5 and 6 years). The guaranteed minimum surrender value is 30% of all premiums paid excluding the first year premium and excluding the premiums for Premium Waiver Benefit and Family Income Benefit and Additional Rider Benefit if opted for. The guaranteed minimum surrender value after the premium payment term will be the discounted value of the outstanding installment payments discounted at 10% p.a. rate of interest. Loans 66

Loans are not available with Bajaj Allianz ‘ChildGain’ Plan Exclusions The Death Cover is subject to the following Exclusion: Suicide within one year from commencement of risk, whether sane or not. 8) NEW UNITGAIN PREMIER SP “IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER” You and Your investments deserve more… This is why we have designed a unique plan that really offers you more? New UnitGain Premier SP is a unique insurance cum investment plan that provides your investment a zing from the start, by allocating 105% of the single premium paid from day one, thereby ensuring that you get MORE. Bajaj Allianz New UnitGain Premier SP is exactly what the name suggests, with a wide range of high quality investment funds to choose from coupled with flexible investment management. You really have the best of all worlds – investment, insurance and tax benefits. With Bajaj Allianz New UnitGain Premier SP, you can invest in one life insurance plan that can take care of all your changing requirements, be it your investment needs, children education needs or peaceful golden years. This plan has been designed to provide your family with higher financial assistance should anything unfortunate were to happen to you as well as flexibility, so that you do not have to worry about your changing needs. The Key Features of the New UnitGain Premier SP Plan are: • It is a unit linked plan with minimum term of 10 years and maximum maturity age 70 years. • Convenient single premium payment. • 105% of the single premium is allocated. • Guaranteed death benefit. • You can adopt your own investment strategy to grow the funds.

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• Choice of three investment funds today with flexible investment management: You can change funds at any time and also invest in the newer funds that may be introduced from time to time subject to prior approval from IRDA. • Partial or full withdrawal facility, after three years from commencement (subject to surrender charge, if applicable). How does the Bajaj Allianz New UnitGain Premier SP plan work? 105% of the single premium paid is invested in fund/funds of your choice and units are allocated depending on the price of units for the fund/funds. The fund value of your policy is the total value of units that you hold in the fund/funds. The mortality charge and policy administration charge are deducted through monthly cancellation of units. The Fund Management Charge is priced in the unit value. Death Benefit: You can choose a Sum Assured (Level of Protection) that you want in the New UnitGain Premier SP Plan. Minimum Sum Assured = 1.25 times the single premium Maximum Sum Assured = Y times the single premium where Y will be as per the following table: Age 0 - 17 18 – 35 36 - 45 46 - 50 51 - 55 56 – 60 Group Y 10 10 7 5 3* 2* * Multiplier may be increased to 5 in special cases on caseto-case basis. Benefits available under the plan Death Benefit: • On death before the age of 7 years: The death benefit will be the NAV of the units in the policyholder’s account (Fund Value) as on date of receipt of intimation of death at the office. The policy terminates on the death of the life assured.

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• On death after the age of 7 years and before the age of 60 years: The death benefit will be the higher of the sum assured less the value of the units withdrawn by partial withdrawals in the last 24 months prior to the date of death or the NAV of the units in the policyholder’s account (Fund value) as on date of receipt of intimation of death at the office. • On death of the life assured on or after attaining the age of 60 years: The benefit will be the higher of the sum assured less the value of the units withdrawn within two years before attaining age 60 years and all the withdrawals made after attaining age 60 years or the value of the units in the policyholder’s account (Fund Value) as on the date of intimation of death at the office. Maturity Benefit On maturity, the value of the units is payable to the life assured/ policyholder. Fund Value: The Fund Value is equal to the number of units under this policy multiplied by the 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 the valuation date (before any new unit is allocated or cancelled) Valuation Date: The Company aims to value the Funds on each day the financial markets are open. However, the Company reserves the right to value less frequently in extreme circumstances, where the value of the assets may be too uncertain. In such circumstances, the Company may defer valuation of assets until a certainty on the value of assets is resumed. The deferment of valuation of assets will be subject to prior consultation with IRDA. Currently, the cut-off time is 3 p.m. for applicability of Unit Price of a particular day for switches, redemptions and publication of Unit Price. Cash withdrawal option: You can withdraw (partially or fully) anytime after three years from the date of commencement. In case of partial withdrawal, a minimum balance of Rs. 20,000 or one-tenth of the Single Premium, whichever is higher, across all funds must be maintained, and the minimum withdrawal amount is Rs. 5,000. The surrender charge applicable for partial withdrawal would be 6% in the

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4th year, 4% in the 5th year, 2% in the 6th year, & 0% thereafter. In case the policy is taken on the life of a minor, the partial withdrawals shall not be allowed until the minor (life insured) attains majority (i.e. on or after attainment of age 18). Surrender: Full withdrawal of units by way of surrender of the policy is allowed after three years from commencement. The surrender charge applicable for full withdrawal would be 6% in the 4th year, 4% in the 5th year, 2% in the 6th year, & 0% thereafter. Important Details of the ‘Bajaj Allianz New UnitGain Premier SP’ Plan Minimum Maximum Age at Entry 0 Yrs (Risk commences at age 7) 60 Yrs Term 10 Yrs Age at Maturity 18 Yrs 70 Yrs Single Premium Rs. 50000 No limit Termination of the Policy The policy will terminate on occurrence of any of the following: a) The units in the policy are fully surrendered b) The account value becomes equal to one tenth of the single premium paid. c) The death of the Life Assured d) On maturity, if settlement option is not taken e) The expiry of the period for the Settlement Option On the occurrence of (a) and (b) above the value of the units, if any, would be paid to the life assured/policyholder upon such termination, subject to surrender penalty, if applicable. In case of (c), death benefit will be paid as mentioned separately herein. In case of (d) and (e), the value of the units, if

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any is paid to the life assured/policyholder at maturity or at each installment date, as applicable under the settlement option. 9) INVEST PLUS Bajaj Allianz Life Insurance launches Invest Plus Press Trust of India / Mumbai June 15, 2009, 17:52 IST

Leading private sector life and general insurance company, Bajaj Allianz Life Insurance has launched Invest Plus, which offers upfront minimum guaranteed investment returns at the beginning of each year, a company statement said here.

Invest Plus is the first of its kind traditional plan that offers upfront minimum guaranteed investment returns at the beginning of each year and a guaranteed maturity value so that customers can feel protected at all times and plan their investments without any worries. "Invest Plus offers guaranteed benefits in these uncertain times. The USP is the transparency of a ULIP product in a traditional product," Bajaj Allianz Life Insurance Country Manager, Allianz & CEO, Kamesh Goyal said. The minimum guaranteed investment returns works towards the benefit of the customer as he gets an upfront minimum guaranteed rate of returns. This would be beneficial irrespective of market conditions as he is equally compensated by guaranteed returns, Goyal said. Minimum guaranteed returns stands for a rate of return which is declared at the beginning of each financial year itself and promises to offer the customer the same return for the year irrespective of the market scenario, it said. The company has announced minimum guaranteed returns for FY10 at 7 per cent. “Bajaj Allianz Invest Plus”

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Presenting a one-of-its-kind investment plan that is secure, accountable and transparent - All in one. Bajaj Allianz Invest Plus helps you get security while ensuring peace of mind. The guaranteed investment returns give you a great maturity benefit and protection to your family. You can multiply your returns by paying additional premiums. Securing the future of your family and yourself was never this easy. Enjoy your life with this all-in-one plan, and leave your worries to us. Key features of Bajaj Allianz Invest Plus: • Guaranteed Investment Returns and minimum Guaranteed Maturity Value. • 10% of each Net Premium added as Loyalty Additions from the 11th Policy Year • Refund of a proportion of the cost of your life insurance cover at maturity • Option to pay Premium over and above the Regular Premium to acquire Additional Accrued Maturity Value • Choice of insurance cover as per your requirement • Option to take loan up to 85% of the surrender value of Accrued Maturity Value. • Option to en-cash partially the Additional Accrued Maturity Value • A host of optional Additional Rider Benefits to choose from • Option to reduce the regular premium from the fourth policy year How does Bajaj Allianz Invest Plus work? For Your policy the Company will maintain two accounts; an Accrued Maturity Value (AMV) account for regular premiums and an Additional Accrued Maturity Value (AAMV) From the Regular Premium paid by you, a Life Insurance Risk Premium for the Sum Assured chosen and the Additional Rider Benefits premium, if any, will be deducted upfront and 95% of the resulting Net Premium shall be added to your Accrued Maturity Value (as and when the Regular Premium is received by the Company). You can pay Additional Premium over and above the Regular Premium any time (except during last three years before maturity) which shall be added to your Additional Accrued Maturity Value (AAMV) account, after multiplying the Additional Premium paid by you with the Additional Premium Factor.

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The Accrued Maturity Value (AMV) and the Additional Accrued Maturity Value (AAMV), if any, shall be further enhanced at the rate of Guaranteed Investment Return (GIR) on a monthly basis. The Loyalty Additions at the rate of 10% of the Net Premium will further enhance your Accrued Maturity Value (AMV) from the 11th policy year as and when the premiums are received by the Company. The fund in respect of your Accrued Maturity Value (AMV) and Additional Accrued Maturity Value (AAMV), if any, shall be invested in a Controlled Fund. The investment mix of the Controlled Fund shall always be in such proportion as that stipulated by the Insurance Regulatory and Development Authority’s (IRDA’s) relevant regulations on investments for the non-linked business including any change in future. “Bajaj Allianz Invest Plus’’ offers you the following cover choices: You can choose sum assured as 5 times, 10 times, 15 times or 20 times (subject to maximum of chosen policy term times) of annual premium. Additional Rider Benefits available The following additional rider benefits in the form of rider can be availed at the option of the policyholder. • Accidental Death Benefit Rider • Accidental Total / Partial Disability Benefit Rider • Critical Illness Benefit Rider • Hospital Cash Benefit Rider • Waiver of Premium Rider • Family Income Benefit Rider (Please refer to the additional rider benefits brochure for more details.) Death Benefit The Death Benefit payable to the Nominee (provided the policy is in force) will be equal to the amount of Sum Assured under the Policy plus the Accrued Maturity Value plus the Additional Accrued Maturity Value, if any, as on date of receipt of intimation of death at the office of the Company. In case of paid up policy, the death benefit shall be higher of the reduced Sum Assured and the Paid Up Accrued Maturity Value, plus the Additional Accrued Maturity Value, if any, as on the date of receipt of intimation of the death. In case of lapsed policy, the death benefit shall be equal to the Additional Accrued Maturity Value, if any, as on the date of receipt of intimation of the death. Maturity Benefit The maturity benefit shall be 73

• The Accrued Maturity Value as on Maturity Date plus Refund of a proportion of the total life insurance premium paid (excluding any rider premium, extra premium and service tax); subject to a minimum of the Guaranteed Maturity Value • Plus the Additional Accrued Maturity Value, if any, as on Maturity Date. The refund proportion of the total life insurance premium on maturity shall be made only if all the due regular premiums till maturity date have been paid. The proportion will be 50% for policy term 10, 75% for policy term 15 and 100% for policy term 20 & 25. The Guaranteed Maturity Value (GMV) shall be equal to the total regular premium paid till maturity date excluding rider premium, any extra premium & service tax and is applicable only if the entire due premiums have been paid under the policy till maturity. Surrender You may surrender the policy after three policy years, provided first three years’ Regular Premiums have been paid in full. The Surrender Value shall be equal to the Accrued Maturity Value plus the Additional Accrued Maturity Value, if any, less applicable penalty and subject to application of Market Value Adjustment (MVA), if any. Guaranteed Investment Return The Company will declare a Guaranteed Investment Return for a year at the start of each financial year keeping in view the expected rate of Investment Return in the coming financial year. The Guaranteed Investment Return shall be used to enhance the Accrued Maturity Value and the Additional Accrued Maturity Value, if any, on a monthly basis at end of each calendar month. For any cash flow taking place during the month, the GIR for that cash flow shall be calculated and credited for the fraction of the month. The Guaranteed Investment Return declared by the Company for the Financial Year 2009 -10 is 7%. Loyalty Additions If the Regular Premium has been paid in full for the first 10 Policy Years, then from the 11th Policy Year, the Company will add Loyalty Addition to the Accrued Maturity Value equal to the 10% of the subsequent net premium on receipt of each Regular Premium by the Company. Market Value Adjustment (MVA) Market Value Adjustment (MVA) will be the reduction to the AMV and/or the AAMV that may be applied by the company on the date of Full or Part

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surrender payment, based on the need for the Company to realize the investments and the market value of the assets as on that date. The MVA shall not be applicable in case of death or maturity. Policy Loan You can avail up to 85% of the surrender value of the Accrued Maturity Value as loan from the Company, after three policy years at prevailing rate of interest provided at least three years regular premiums have been paid in full. On payment of death, maturity or surrender benefit, any outstanding loan amount with interest shall be deducted from the benefit. Option to en-cash partially • You can opt for Part Surrender of your Additional Accrued Maturity Value after three years from the date of payment of each such additional premium. • The minimum amount of Part Surrender from Additional Accrued Maturity Value is Rs.5, 000 • Only one Part Surrender request is allowed in a calendar month. • In case of minor life, Part Surrender is allowed after attaining age 18 years. • The Part Surrender of the Additional Accrued Maturity Value will be subject to deduction of Surrender Penalty, as applicable. • The actual amount payable as Part Surrender may differ from the face value of the Additional Accrued Maturity Value being surrendered, due to the application of the Market Value Adjustment (MVA) and surrender penalty. Option to Reduce the Regular Premium You can reduce your regular premium after three policy years by giving a written notice at least 30 days prior to a policy anniversary, provided you have paid all due regular premiums till date. Such reduction in regular premium shall be subject to the minimum regular premium payable under the product at the time of such reduction and further the revised regular premium shall not be less than the life insurance premium and the rider premium, if any, including any extra premium, payable under the policy. Any reduction in regular premium shall not result in any reduction of sum assured. The reduction in regular premium shall be effected from the policy anniversary. Non-Forfeiture In the event of non-payment of Regular Premiums due under the policy within the Grace Period the following provisions will be applicable: • If the failure to make payment of Regular Premium occurs in the first 3 Policy Years, the Policy will lapse for all Life Insurance Cover and rider cover and no Surrender Value or Death Benefit in respect of the Accrued 75

Maturity Value shall be payable. However Surrender Value in respect of Additional Accrued Maturity Value, if any, shall be payable on the termination of the Policy on the expiry of the Revival Period. The AMV of a lapsed policy shall not participate in the Guaranteed Investment Return during the lapsed period, but the AAMV will continue to be enhanced by the Guaranteed Investment Return during the lapse period. • In case of earlier death of the life assured under a lapsed policy, the Additional Accrued Maturity Value, if any, shall be payable. • If at least three full years Regular Premium has been paid, the Policy will be converted to a Paid-Up Policy and the Accrued Maturity Value shall be reduced to the Paid up Accrued Maturity Value by deducting the Premium Discontinuance Penalty from the Accrued Maturity Value as on date of first unpaid premium. The Paid up Accrued Maturity Value and the Additional Accrued Maturity Value, if any, shall continue to participate in the Guaranteed Investment Return. The Sum Assured shall be reduced by applying the proportion of number of premiums paid to the total number of premiums payable till the Maturity Date. . • In the case of the death of the Life Assured under a Paid-Up Policy, the Company is liable to pay a Death Benefit equal to the higher of the reduced Sum Assured and the Paid-up Accrued Maturity Value, plus the Additional Accrued Maturity Value, if any, as on the date of receipt of intimation of the death. . • Under a Paid-Up Policy, no Additional Rider Benefit shall be payable. Parameter Minimum Age at Entry

Details 7 years (18 years in case of all Additional Rider Benefits) Maximum Age at Entry 60 years (50 years in case of all Additional Rider Benefits) Minimum Maturity Age 18 years Maximum Maturity Age 70 years Additional Rider Benefit 65 years Ceasing Age Policy Term 10, 15, 20 and 25 years Minimum Premium* Rs. 10,000 per yearly installment, Rs. 5,000 per half-yearly installment,

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Rs. 2,500 per quarterly installment Rs. 1,000 per monthly mode (Monthly mode is available through ECS salary saving scheme only.) Traditional Endowment Plan

10) BAJAJ ALLIANZ LIFE TIME CARE PLUS At the back of our minds we are often nagged by certain fears, the fears of an uncertain future, the insecurity of not being able to provide adequately for our loved ones, the fear of not being able to save enough. Life Insurance is the only complete answer to these fears. It is life insurance that provides you with the security of a financial safety net and enables you to plan for unpredictable adversities. Happiness often sneaks in through a door you didn’t know you left open. Let life insurance be that door for you. ‘Bajaj Allianz Lifetime Care’ Plan You and your family deserve the very best in life, and the good life you lead should last a lifetime. However, one cannot always avoid the unpleasant surprises, and sometimes misfortunes in life. ‘Bajaj Allianz Lifetime Care’ Plan provides you with the comfort that your near and dear ones will continue to live their life without financial worries, even when you are not around. What does ‘Bajaj Allianz Lifetime Care’ offer you This plan not only provides insurance protection, but also ensures that your valuable savings grow by way of compounded annual bonuses. In addition, a terminal bonus may be paid on survival till age 80 for in-force and fully paid-up policies. In case of death after 15 full policy years, the company may pay a terminal bonus for in-force and fully paid-up policies. Benefits : Death Benefit: The death benefit will be the sum assured plus declared reversionary bonuses plus interim bonus. In case of death after 15 full policy years, the Company may pay terminal bonus for in-force and fully paid-up policies.

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Survival Benefit: In case of survival to age 80, the sum assured plus declared reversionary bonuses plus interim bonus plus a possible terminal bonus is paid at age 80. What are the 5 additional benefits? a) Accidental Death Benefit Accidents are always sudden and sometimes fatal. You can’t lessen the emotional shock, but you can certainly soften the financial one. Bajaj Allianz Accidental Death Benefit gives your loved ones something to start with after the permanent loss of your income by paying the basic Sum Assured, subject to a maximum of Rs. 10, 00,000/- under all policies with Bajaj Allianz taken together. b) Accidental Permanent Total/Partial Disability Benefit Accidents are unpredictable and so are the consequences. This may lead to a disability - partial or total. The Bajaj Allianz Accidental Permanent Total/Partial Disability Benefit provides a financial cushion against such misfortunes. Type of disability Benefit Permanent Partial Disability 50% of the Sum Assured * Permanent Total Disability 100% of the Sum Assured ** * subject to a maximum of Rs. 5,00,000/- under all policies with Bajaj Allianz taken together ** subject to a maximum of Rs. 10,00,000/- under all policies with Bajaj Allianz taken together c) Waiver of Premium Benefit An accident may lead to permanent total disability limiting your ability to earn. Bajaj Allianz Waiver of Premium Benefit is a helping hand when you need it most. It keeps your insurance cover alive by waiving future premiums and enables you to live up to your commitments. d) Critical Illness Benefit Some illnesses are critical. They not only alter your life’s pattern but also result in a financial drain. Bajaj Allianz Critical Illness Benefit softens the impact on your family by paying out the Critical Illness Benefit under the plan immediately, while other policy benefits continue (excluding Hospital Cash Benefit). We cover 11 Critical Illnesses. This benefit is available for the premium payment term only. e) Hospital Cash Benefit

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The worry of settling hospital bills (room charges) adds to the trauma of hospitalization. Bajaj Allianz Hospital Cash Benefit reduces this financial burden and helps you to recover with peace of mind. This benefit is available for the premium payment term only. Flexibility in Coverage At Bajaj Allianz, we believe in offering benefits and not just products. We realize that you are unique and your needs for insurance vary with time. We therefore offer you the flexibility of including the following benefit combination at each policy anniversary. Combination 1: Accidental Death Benefit, Accidental Permanent Total/Partial Disability Benefit and Waiver of Premium Benefit can be added, if not taken earlier, deleted and added subsequently at each policy anniversary. We also offer the flexibility of excluding the following benefit combination. Combination 2: Critical Illness Benefit and Hospital Cash Benefit can be taken at inception only but can be excluded subsequently at any policy anniversary. Once excluded, Combination 2 cannot be included in the policy subsequently. Increase in risk coverage Every added responsibility in your life calls for increase in your risk cover. We provide you the option to include additional death coverage of 50% of the Sum Assured on each of the following happy moments in your life • your marriage • the birth of your first child • the birth of your second child This additional coverage is not subject to underwriting. Other Important details of the “Bajaj Allianz Lifetime Care” Plan. Eligibility Conditions Lifetime Care Lifetime Care - Protect/ Economy Health/Total Minimum Age at Entry 15 18 Maximum Age at Entry 60 50 Maximum Premium Ceasing Age 80 80 Minimum Premium Payment Term 10 10 Minimum Premium (Rs.) 1,500/- for Yearly, 800/- for Half Yearly, 450/- for Quarterly and 150/- for Monthly*.

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* by salary deduction only Premium Discount Bajaj Allianz offers an attractive premium discount structure which is offered for all policies where the sum assured exceeds the minimum sum assured by at least Rs.10, 000. The discount for annual premium is Rs.48 for each full Rs.10, 000, the sum assured exceeds the minimum sum assured allowed. Indicative Annual Premium Rates* for Lifetime Care Economy Premium Sum Assured Payment Term Rs. 3, 00,000 Rs. 5, 00,000 Rs. 10, 00,000 15 Years 9,096 15,000 29,760 20 Years 7,581 12,475 24,710 25 Years 6,810 11,190 22,140 30 Years 6,405 10,515 20,790 The rates are for a healthy 30 year old male. Premium Payment Mode For your convenience we have provided 3 Premium Payment Modes that can be yearly, half-yearly or quarterly. We also offer a Monthly Premium Payment Mode with salary deduction schemes. Advantage for Women There will be a basic premium discount for female policyholders in the package. Basic premium payable will be equivalent to the premium for a two-year younger male policyholder. Tax Benefits Premiums paid are eligible for Tax Benefits under Section 80(C) of the Income Tax Act and maturity and death proceeds are eligible for Tax Free under Section 10(10)D of the Income Tax Act. Surrender While we do not encourage surrender of a policy as it breaks your security cover, we realize the importance of availability of cash at a short notice in some emergencies. Therefore, we provide you with a choice of surrendering the policy, provided 3 full years’ premiums have been duly paid. Fund Access - Loans You can avail of Loans under your policy provided 3 full years’ premiums have been duly paid. The loan amount shall be within 90% of the surrender value. •

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11) THE ‘BAJAJ ALLIANZ INVESTGAIN’ PLAN Bajaj Allianz InvestGain is a specially designed plan that offers a unique combination of benefits to help you develop a sound financial portfolio for your family. Among the many unique benefits, the most significant is the Family Income Benefit (FIB) that sustains the family by compensating the loss of income due to death or permanent disability. This is a one-stop shop solution that can keep you and your family financially protected at times when you need it most. In a financial world where choices can drive you crazy, your search for the perfect life insurance plan stops here. Important details of the ‘Bajaj Allianz InvestGain’ Plan. Conditions InvestGain Economy InvestGain Gold / Diamond / Platinum Any additional benefit Minimum Age at Entry 0 (Risk Commences 18 at age 7) Maximum Age at Entry 65 50 Maximum Age at Maturity 70 70 Minimum Term 5 years Maximum Term 40 years Minimum Sum Assured Rs. 50000 Maximum Sum Assured No Limit Minimum Premium* Rs. 5000 for Yearly, Rs. 2500 for Half Yearly, Rs. 1250 for quarterly and Rs. 700 for monthly. Premium Payment term Equal to the policy term or limited as per the table given *Monthly mode is available under ECS / salary savings scheme only. The Ultimate Protection - For Your Loved Ones You can select the unique Family Income Benefit from Bajaj Allianz that ensures total financial protection for your loved ones. In case of death or accidental total permanent disability, a guaranteed monthly income of 1% of the sum assured (12% per annum) is paid till the end of the policy term or at least for a period of 10 years, whichever is higher. Moreover, all future premiums are waived. Additional Protection for you and your family. 81

You have the option to add the following additional benefits, providing total protection against uncertainties. a) Family Income Benefit (FIB) - as already described. b) Comprehensive Accident Protection This benefit provides comprehensive cover in case of an accident. It comprises of: Accidental Death Benefit Accidents are always sudden and sometimes fatal. You can't lessen the emotional shock, but you can certainly soften the financial one. Bajaj Allianz Accidental Death Benefit gives the loved ones something to start with after the permanent loss of income by paying an amount equal to the Sum Assured. (subject to a maximum of Rs. 50,00,000/- under all policies with Bajaj Allianz taken together). Accidental Permanent Total/Partial Disability Benefit Accidents are unpredictable, and so are the consequences. They may lead to a disability - partial or total. This Benefit provides a financial cushion against such misfortunes. You will get 50% of the Sum Assured in case of partial disability and 100% in case of total disability. (subject to a maximum of Rs. 25,00,000/- for partial and Rs. 50,00,000/- for total disability under all policies with Bajaj Allianz taken together.) Waiver of Premium Benefit An accident may lead to permanent total disability, limiting one's ability to earn. Bajaj Allianz Waiver of Premium benefit is a helping hand when one needs it most. It waives off all future premiums while keeping the valuable life insurance cover alive, thus enabling you to live up to your commitments. c) Critical Illness Benefit (CI) Some illnesses are critical. They not only alter one's life's pattern but also result in a financial drain. Bajaj Allianz Critical Illness Benefit softens the impact on the family by paying out the Critical Illness Benefit under the plan immediately, while other policy benefits continue (excluding Hospital Cash Benefit). We cover 11 Critical Illnesses. You have the flexibility of choosing Critical Illness cover up to the basic Sum Assured selected by you (Minimum Rs. 50,000). d) Hospital Cash Benefit (HC) The worry of settling hospital bills (room charges) adds to the trauma of hospitalization. Bajaj Allianz Hospital Cash Benefit reduces this financial burden and helps recovery with peace of mind. e) MahilaGain Rider Benefit

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Provides protection against risks specific to women. (Refer MahilaGain brochure for details). Flexibility in Coverage At Bajaj Allianz, we believe in offering benefits and not just products. We realize that you are unique and your need for insurance vary with time. We therefore offer you the flexibility of inclusion of coverage or exclusion of coverage at each policy anniversary, subject to conditions relating to such inclusions and exclusions. ‘Comprehensive Accident Protection’ can be included and excluded at each policy anniversary. Family Income Benefit, MahilaGain Rider Benefit, Critical Illness Benefit and Hospital Cash Benefit can be taken at inception only. MahilaGain Rider Benefit, CI & HC can be reduced or excluded subsequently at any policy anniversary. Once reduced or excluded, they cannot be increased or included subsequently. HEALTH PLANS 12) BAJAJ ALLIANZ ‘CARE FIRST’ PLAN Bajaj Allianz Care First is a unique hospitalization-cum-insurance plan that takes care of your hospitalization bills and also provides crucial financial support to your dependents in case of your unfortunate death. Unlike ordinary annual Mediclaim policies, this is a 3-year risk cover plan that allows you to renew the policy after every 3 years and keeps you covered till the age of 65 years. The premium rate is level and guaranteed for the length of the each policy term of 3 years. How does the plan work? The Policy covers hospitalization expenses ranging from Rs. 1 lakh to Rs. 7 lakhs. This means, if you opt for a sum assured of Rs. 5 lakhs then you can avail up to Rs. 5 lakhs every year to meet your hospitalization expenses, subject to limits on reimbursement of expenses and exclusions as mentioned below, and in the event of your unfortunate death your dependent will get balance of any unclaimed sum assured as death benefit. In case the child is the life assured under this policy, then any one of the parents should be covered under any of the hospitalisation reimbursement plan either with Bajaj Allianz or with any other insurer with at least the same sum assured as chosen for the child. The policy shall automatically vest in the life assured as soon as minor life assured attains age 18 years. Key Benefits 83

_ Hospitalisation Cover _ Day Care Treatment _ Pre-Hospitalisation and Post-Hospitalisation Cover _ Cash Less Service Facility _ Increased proportion of re imbursement of your hospitalisation expenses for every claim-free year _ Death benefit _ Tax Benefit _ Hospitalization Cover Following expenses incurred during hospitalization for continuous period of 24 hours for in-patient treatment would be covered under the policy. _ Room rent and Boarding expenses _ Nursing expenses _ Doctor’s fees _ Operation theatre charges _ Cost of Anesthesia, Blood, Oxygen, Medicines and Drugs, Diagnostic Materials and X-Ray, Artificial Limb, and pacemaker _ Enlisted day care expenses for specified treatments are also covered. Day Care Treatment If you require to undergo treatment for the illnesses or procedures like Eye surgery, Cataract, Lithotripsy (kidney stone removal), Tonsillectomy, Dilatation & Curettage, Cardiac Catheterization, Hydrocoele Surgery, Hernia repair surgery, wherein you don’t need to be hospitalized for at least 24 continuous hours, it will be considered as proper hospitalization and the medical expense would be reimbursed. Pre-Hospitalisation and Post-Hospitalisation Cover This plan covers the expenses associated with pre-hospitalization treatment, for a period of 15 days prior to the hospitalization and post-hospitalization expenses for a period of 30 days after the discharge from the hospital. Cash Less Service Facility Cash Less Services (CLS) will help you avail of the hospitalization benefits without any advance payment in the hospital and facilitate quick delivery of services through Network Hospitals (NWH). Third Party Administrators (TPA) of the Company facilitates the Cash Less Services. On issuance of the policy, The TPA will provide you a photo identification card and a guide book, which would contain a list of NWH, the details explaining the process for application of CLS and hospitalization intimation form / preauthorization form to be filled up by your attending doctor for hospitalization in NWH. The TPA will maintain 24/7 helpline on toll free 84

number to facilitate any medical emergency requirement. To avail of the CLS facility all you need to do is to contact the TPA at any of their offices which are convenient to you and submit the hospitalization intimation form / pre-authorization form. In case of an emergency you need to produce the photo identification card in NWH to get admission and within 48 hours of hospitalization you will have to contact the TPA to obtain CLS authorization. If CLS is authorized then your hospitalisation expenses will directly be settled by the Company with NWH to the extent it is reimbursable and the balance of the hospitalisation expenses would be settled by you at the time of discharge. Death Benefit In case of unfortunate death of the life assured, provided death occurs after attaining age of 7 years, the sum assured less all benefits already paid or payable in that policy year shall be paid. Tax Benefits The premium paid towards Death benefit will be eligible for tax benefits under Section 80C of the Income Tax Act 1961, and the premium paid towards hospitalisation benefit will be eligible for tax benefits under Section 80D of the Income Tax Act 1961. Eligibility Entry Age Sum Assured Maximum Expiry Policy Term Premium Payment Frequency

Minimum Maximum 3 months 56 years 100,000 700,000 Age 65 years 3 years Yearly, Half-Yearly, Quarterly, Monthly

(Monthly mode is available through ECS or Salary Deduction Only) Limits on reimbursement of expenses _ In a policy year, Company’s total liability towards reimbursement of medical expense or any other benefit payment under the policy shall be limited to the sum assured. _ If hospitalisation has taken place due to the following Illnesses/Procedures/Group of Illnesses, the Company will reimburse 80% of medical expenses subject to maximum reimbursement limit as given below in the table:

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Sr. Illnesses/Procedures/Group of Illnesses The lower of: No. % of sum assured Lump sum 1. Cataract 12% 25,000 2. Hysterectomy Abdominal/ vaginal, with or without BSO. 20% 40,000 3. Laparoscopic Hysterectomy 20% 50,000 4. Hydrocoele 15% 30,000 5. Hernia 20% 40,000 6. Trans Urethral resection of the Prostate 20% 40,000 7. Knee replacement 50% 150,000 8. Hip replacement 50% 175,000 9. Cholestectomy 20% 40,000 10. Lithotripsy 15% 30,000 11. Angioplasty 50% 150,000 12. Angiography 10% 20,000 13. Organ Transplant 50% 1, 50,000 _ In case of Major Organ Transplant, the Company will pay an additional amount of 25% of the sum assured as lump sum. Major Organ Transplant means the receipt of a transplant of a) Human bone marrow using haematopoietic stem cells preceded by total bone marrow ablation; or b) One of the following whole human organs: heart, lung, liver, kidney, pancreas (excluding the transplantation of the islets of Langerhans only), that resulted from irreversible end-stage failure of the relevant organ. Other stem cell transplants are excluded. _ If hospitalisation has taken place due to Illnesses/Procedures/Group of Illnesses other than those listed in the table then the company will reimburse 80% of following expenses: Room rent and boarding expenses per day Maximum 1.5% of sum assured for non intensive care unit and 3% of sum assured for intensive care unit Doctor’s Fee Maximum 25% of the total medical expenses incurred on in-patient treatment Operation theatre charge Maximum twice of the per day room rent and boarding expenses admissible under the 86

policy on the date of surgery / medical procedure Other Actual expenses on Nursing, Anesthesia, Blood, Oxygen, Medicines and Drugs, Diagnostic Materials and XRay, _ The Company will reimburse 80% of the costs of following implants subject to maximum reimbursement limit as given below in the table; Sr. No.

Implants

The lower of: Lump sum Rs. 100,000 50,000 150,000

% of Sum Assured 1. Artificial limbs 30% 2. Cardiac Pacemaker – one chamber 20% 3. Cardiac Pacemaker – two chamber 50% Grace Period, Lapse & Reinstatement If any installment of premium is not received in full by the due date, the Company shall allow a grace period of 15 days under all premium modes for premium to be received in full. If premium is not received within the grace period then the policy will lapse without acquiring any surrender value or paid up value. A lapsed policy may be revived within 30 days of the due date of the first unpaid premium and before the expiry of the policy term subject to medical examination, at your expense, and payment of outstanding premiums plus interest from the original due dates of premium payment. Renewals: The policy can be renewed within 30 days after the expiry of the current policy term for the sum assured same as the existing sum assured and at the premium rates and terms & conditions prevailing at the time of renewal. However if policy is not renewed within 30 days after the expiry of the current policy or new sum assured is more than the existing sum assured then renewal of the policy would be subject to the life assured satisfying company’s underwriting requirements. 13) BAJAJ ALLIANZ HEALTH CARE What is Bajaj Allianz HealthCare ? Bajaj Allianz HealthCare is a three-year health insurance plan, providing comprehensive health cover with life insurance benefit. You can choose the

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amount of cover for each benefit separately in multiples of the minimum cover amount, subject to a maximum multiple of 10. Feature Minimum Cover Life Cover Rs. 10,000 Hospital Cash (HC) Equal to Room charges (Max. Rs 500 per day and Max. Rs1000 per day in ICU), Maximum Rs.30, 000 in a policy year. Post Hospitalisation Benefit 50 % of Claim settled for HC per day, maximum 5 days in a policy year. Surgical Benefit Equal to surgical expenses, Max. Rs.50, 000 per policy year Critical Illness Cover Rs. 50,000 during the policy term Accidental Permanent Rs. 50,000 payable on total Total / Partial Disability disability and Rs. 25,000 ( TPD) payable on partial disability The benefits payable for all policies under Bajaj Allianz HealthCare plan put together will not exceed the maximum amount of cover available under Bajaj Allianz Health Care. HealthCare Plan – Frequently Asked Questions Q. 1. Why should I buy Bajaj Allianz HealthCare? Ans. Bajaj Allianz HealthCare is a comprehensive Health insurance policy, wherein it offers 6-in-1 insurance cover - i.e., Hospital Cash benefit, Post Hospitalisation Benefit, Surgical Benefit, Critical Illness Cover, Benefit for partial and total permanent disability due to accident and Life cover. Q.2. Who can buy Bajaj Allianz HealthCare? Ans. Anyone between the age of 18 and 57 can apply for the Bajaj Allianz HealthCare plan. Q. 3. How can I buy Bajaj Allianz HealthCare? Ans. Visit any of our branches, and our Consultants will get in touch with you and guide you through the required process. Q. 4. Do I have to undergo medical check-up? Ans. Yes. A complete medical examination which will be paid by us may have to be carried out. Our Consultants will guide you through the required process.

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Q. 5. Why should I buy HealthCare if I have other medical insurance policies? Ans. Bajaj Allianz HealthCare can be claimed along with other medical insurance policies like Mediclaim. Besides, HealthCare provides coverage for 3 years instead of one year, thereby giving added protection and coverage. Premiums are guaranteed for 3 years. Q. 6. What if I miss paying the premiums? Ans. The policy can be reinstated within 6 months from the due date of the first unpaid premium subject to the payment of outstanding premiums plus interest, subject to underwriting. Q. 7. Do I need to be treated only in particular hospitals, which are in your panel? Ans. No, you can choose your own hospital as per your convenience and belief, provided it is a registered hospital with at least 15 beds. The hospital need not be in our panel. Health is Wealth… particularly when health care costs are getting higher every year. The emotional and financial burden of a serious accident, major illness or surgery often lasts beyond the immediate period of the trauma. Bajaj Allianz HealthCare protects you and your family from the high expenses associated with medical care and provides you with a comprehensive financial cushion against various health hazards. The benefits under this plan are payable in addition to the benefits under all other plans that you may have, including a Mediclaim policy. Indicative Premiums*: Age For Minimum Cover (Male) For Minimum Cover (Female) 20 917 972 30 1011 1091 40 1445 1347 45 1887 1604 50 2454 1937 * Service Tax applicable as per the prevailing rates. Benefits: • Life Cover is payable on death of the life assured. • Hospital Cash Benefit: The worry of meeting expenses relating to hospitalisation adds to the trauma of hospitalisation. Hospital Cash Benefit reduces this financial burden and helps you recover with peace of mind. If you have to stay in hospital as a result of injury, sickness or disease, we will 89

pay at the rate of the room charge in hospital, subject to the limit of the benefit level chosen, for each full day’s stay in hospital exceeding 3 days up to the total limit allowed in a policy year. The amount is payable in a lumpsum at the end of the stay in hospital. The benefit period starts after a waiting period of 60 days from the commencement of risk or reinstatement of risk, except for accidental injury. Multiple claims can be made in a policy year. • Post Hospitalisation Benefit: Recuperating from a surgery/major treatment takes time, and our Post Hospitalisation Benefit allows you this facility without adding burden to your wallet. We pay 50% of the Hospital Cash benefit claim settled per day for a maximum of 5 days in a policy year for essential follow-up treatment on the basis of recommendation of the hospital/surgeon. • Surgical Benefit: The costs of doing a surgery have gone up significantly today. Our Surgical benefit pays you for a surgery done by a qualified surgeon performed at a registered hospital with a minimum of 15 beds (as in-patient) for surgical procedures advised by a qualified doctor/physician/surgeon. The benefit amount payable is equal to the surgical expenses (i.e. surgeon’s fee, operation theatre charges and anesthetist’s charges) subject to the maximum surgical benefit amount payable in a policy year. The surgical benefit can only be claimed if the illness covered is diagnosed at least 180 days after the date of commencement of risk or reinstatement of risk. There is no waiting period if surgery is done due to an accidental injury. • Critical Illness Benefit: Some illnesses are critical. They not only alter your life’s pattern but also result in a financial drain. The Critical Illness Benefit softens the impact on the family by paying out a lumpsum as per the cover selected immediately, while other policy benefits continue. The critical illness benefit can only be claimed if the illness is diagnosed at least 180 days after the date of commencement or reinstatement of risk. We cover 11 critical illnesses: First Heart Attack, Coronary Artery Disease Requiring Surgery, Stroke, Cancer, Kidney Failure, Major Organ Transplantation, Multiple Sclerosis, Aorta Graft Surgery, Primary Pulmonary Arterial Hypertension, Alzheimer’s disease, Paralysis. • Accident Permanent Total / Partial Disability (TPD): Accidents are unpredictable and so are the consequences. They may lead to a permanent disability - partial or total. This benefit provides a financial cushion against such misfortunes.

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Accidental permanent total disability will mean total and permanent disability as a result of an accident (within 180 days from the date of accident) resulting in one of: Loss of both eyes, Loss of both arms or both hands, Loss of one arm and one leg, Loss of one arm and one foot, Loss of one hand and one foot, Loss of one hand and one leg, Loss of both legs, Loss of both feet, Removal of the lower jaw. Accidental permanent partial disability will mean permanent disability as a result of an accident resulting in one of: Loss of one eye, Loss of one leg, Loss of one arm, Loss of one hand, Loss of one foot. Loss of hand will mean above wrist, loss of arm will mean above elbow, loss of feet will mean above ankle and loss of leg will mean above knee. • Multiple Claims: Hospital Cash, Post Hospitalisation Benefit & Surgical Benefit can be claimed on multiple occasions as per the coverage selected (subject to the overall limits) provided the policy is in force at the time of claim. Claim Settlement Process There are two modes of claim settlement – Cashless Service (CLS) facility at networked hospitals and reimbursement of hospitalisation expenses (subject to limit as applicable under the plan) wherein treatment is taken in Non Network Hospital. Cashless Service Benefits • We have tied up with Medicare Third Party Administrator (TPA) Services to provide you with customized, high-quality health benefit services under this product. Through TPA, we have in our network, easy and fast access to some of the best Hospitals, Nursing Homes and other Medical Resources. You can avail Cashless Service in these networked hospitals. On issuance of a policy, you would be provided with a Health Card (Photo Identity Card) and a Guide Book, which would contain list of Network Hospitals, the details how to go about the Cashless Service in case of planned and emergency hospitalisation and Hospitalisation Intimation Form/Preauthorization Form to be filled up by your attending Doctor for hospitalisation in empanelled hospitals. • The Medicare TPA will maintain a 24/7 Help line on Toll free number as well as mobile numbers to facilitate any medical emergency requirements. • The Cashless Service would be facilitated by the TPA and will help you avail of the hospitalisation benefits quickly through our network hospitals without any caution deposit etc. To avail of the Cashless Service facility all you need to do is to contact our TPA at any of their offices which are

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convenient to you and submit Hospitalisation Intimation /Pre-authorization Form. • In case of emergency please produce your Health Card to take admission at network hospital. Within 48 hours of hospitalisation, contact the TPA to obtain the cashless authorization and complete the formal process of admission. • If the TPA sanctions cash less request, the admissible claim amount would directly be settled with network hospital through TPA. Payment by you at the time of discharge will only be required for the cost of inadmissible items not covered by the policy under this plan. • Cashless Service is restricted only to those hospitalisation expenses which are directly related to the illness which necessitate hospitalisation. • Cashless Service is not available for Pre/Post hospitalisation treatment. Benefit through Reimbursement (Non Cashless Service) You have the right of getting treated in any Hospital any where in India. If treated at Non-Network Hospital we shall reimburse your hospitalisation expenses (subject to maximum allowed under the policy) within 7 days on submission of all bills & requisite documents. 14) BAJAJ FAMILY CARE FIRST The health of your family is very important to you. When faced with hospitalisation for one or more family members, the medical bills can severely dent your savings. The cost associated with hospitalisation might be very high and you need to be better prepared for such an emergency. Buying Medical Insurance for each individual family member can be cumbersome and expensive. What if there is a solution that gives you a single tool to cover your entire family – all in one? Bajaj Allianz Family CareFirst presents an innovative yet practical health care plan for everyone in your family including children and parents. This unique hospitalisation plan gives you a 3-year health cover for your entire family and allows You to renew the policy after every 3 years to keep Your family covered till the age of 74 years. So no separate accounts, repetitive paperwork or payment adjustments for each member. Secure Your entire family in one shot. How does the plan work? The Policy covers hospitalisation expenses ranging from Rs. 1 lakh to Rs. 10 lakhs. This means, if you opt for a sum assured of Rs. 5 lakhs for Your family, You and Your family together can avail up to Rs. 5 lakhs every year

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to meet Your hospitalisation expenses, subject to limits on reimbursement of expenses, waiting period and exclusions as mentioned below. All the life assureds covered under the policy will be referred to as Member(s). The proposer or his/her spouse, if included, who so ever is of higher age shall be referred to as Primary Member and all other life assureds as dependent Members. Children of the Primary Member shall be covered provided they are economically dependent on parent(s) and are not married. Key Benefits _ Coverage from 3 months to age 74 with guaranteed renewals _ 3 year premium guarantee for each policy term _ Hospitalisation Cover in leading hospitals across the country. _ 15% discount on premium on every renewal _ No claim bonus in the form of increase in sum assured@5% every year _ Day Care Treatment for 125 day care procedures _ Pre-Hospitalisation and Post-Hospitalisation Benefit _ Reimbursement of Ambulance expenses _ Choice to select Health Critical Illness rider _ Choice to include Your spouse, children and parents _ Cash Less Service Facility in leading hospitals across the country Hospitalisation Cover Following expenses incurred during the hospitalisation (for at least continuous period of 24 hours) for in-patient treatment would be covered under the policy. _ Room rent and Boarding expenses _ Nursing expenses _ Doctor’s fees _ Operation theatre charges _ Cost of Anesthesia, Blood, Oxygen, Medicines and Drugs, Diagnostic Materials, X-Ray, Surgical Appliances, any disposable surgical consumables, dialiysis, radiotherapy, Artificial Limbs, stents and implants, and pacemaker. Pre-Hospitalisation and Post-Hospitalisation Benefit A flat benefit of 3% of the reimbursable hospital expenses will be paid on each hospitalisation claim towards pre-hospitalisation and posthospitalisation expenses. Ambulance Charges

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In case the hospitalisation requires an ambulance, the expenses for ambulance will be reimbursed by us subject to a maximum reimbursement of Rs. 1,000 for a member in a policy year provided the member is hospitalized for more than 24 continuous hours. Cash Less Service Facility _ Cash Less Services (CLS) will help You avail the hospitalisation benefits without any advance payment in the hospital and facilitate quick delivery of services through Network Hospitals (NWH). _ Third Party Administrators (TPA) of the Company facilitates the Cash Less Services. _ On issuance of the policy, the TPA will provide the member(s) a photo identification card and a guide book, which would contain a list of NWH, the details explaining the process for application of CLS and hospitalisation intimation form / pre-authorization form to be filled up by Your attending doctor for hospitalisation in NWH. _ The TPA will maintain 24/7 helpline on toll free number as well as mobile number to facilitate any medical emergency requirement. _ To avail of the CLS facility all You need to do is to contact the TPA at any of their offices which are convenient to You and submit the hospitalisation intimation form / pre-authorization form. _ In case of an emergency the member need to produce the photo identification card in NWH to get admission and within 48 hours of hospitalisation You will have to contact the TPA to obtain CLS authorization. If CLS is authorized then Your hospitalisation expenses will directly be settled by the TPA with NWH to the extent it is reimbursable and the balance of the hospitalisation expenses would be settled by You at the time of discharge. No Claim Bonus _ If none of the Member claims during the previous policy year, the sum assured under the plan will be increased by an amount equivalent to 5% of the basic sum assured in the subsequent policy year subject to a maximum increase of 25% of the basic sum assured over the duration of the policy including renewals, where the basic sum assured means the sum assured chosen as on policy commencement date. _ However if a claim is made by any of the Member(s) after this provision has come into force, then the sum assured under the policy will be reduced back to the sum assured chosen as on policy commencement date in the subsequent policy year. Choices available to You 94

Health Critical Illness rider _ This cover provides a lump sum benefit equal to a chosen sum assured on diagnosis of the specified Critical Illnesses irrespective of the status of reimbursement of medical expenses. _ Only the Primary Member and his/her spouse shall be covered. (Please refer to the Health Critical Illness rider brochure for more details.) Inclusion of family members _ On any policy anniversary, You have the option to include Your spouse, parents or children under the family policy. _ The inclusion of new members in the policy will be subject to underwriting of the new members and the waiting period for new members will apply afresh from the policy anniversary they join the policy. _ On inclusion of new member(s), the revised premium shall be applicable. Eligibility Minimum Entry Age • Primary Member and Spouse of Primary Member

• Parents • Children Sum Assured Maximum Maturity Age at which risk cover expires

Policy Term Mode

Maximum

18 years

56 years for a new policy 50 years if health critical illness rider is opted for 71 for a renewed policy 68 years for a new policy 71 for a renewed policy 3 months 18 years 1, 00,000 10, 00,000 74 years for Primary Member, Spouse of Primary member and parents 65 years if health critical illness rider is opted for 21 years for children 3 years Yearly, Half-Yearly, Quarterly and Monthly

Monthly is permitted only by salary deduction and ECS only.

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15) BAJAJ ALLIANZ FAMILY ASSURE It is also an endowment plan which offers Protection as well as Investment. Important Details Parameter Minimum Age at Entry Maximum Age at Entry Maximum Maturity Age Additional Rider Benefit Ceasing Age Minimum Policy term Minimum Premium

Details 0 years, risk commences at age 7. Minimum age at Entry for all riders is 18 years. 60 years( 50 years in case of all additional rider benefits) 70 years 65 years for all riders 10 years (In case of minor life, minimum policy term is 18 less age at entry of the minor life.) Rs. 5000 per yearly installment, Rs. 2500 per half-yearly installment, Rs. 1250 per quarterly installment, Rs. 500 per Monthly mode. Monthly mode is available through ECS and Salary saving scheme only. Minimum top-up premium is Rs. 5000. 5 X Annualized Premium Policy term X Annualized Premium

Minimum Sum assured Maximum Sum assured For base cover or base cover with ULADB rider and/or ULAPTPDB rider Maximum Sum assured 5 X Annualized Premium For base cover with UL CIB rider and/or UL HCB rider 16) BAJAJ ALLIANZ CENTURYPLUS II

Bajaj Allianz CenturyPlus II - Score a century with your investment plan! Flexible and systematic investments are always good for you. At Bajaj Allianz Life Insurance, we value your investment and reward you for regular investments, giving you unmatched benefits with great returns.

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Bajaj Allianz CenturyPlus II offers you a limited premium payment term option and a unique combination of protection and prospect of attractive returns. With 100% allocation in the 2nd policy year and thereafter, it ensures that your investment income gets accelerated and you reap benefits from a plan that delivers prosperity and happiness to you. Key features of Bajaj Allianz CenturyPlus II • Guaranteed life cover of sum assured plus fund value. • Get full 100% allocation to your funds from the 2nd policy year onwards. • Guaranteed Addition to enhance your fund value every year from the 6th policy year. • Choice of 2 investment portfolio strategies to manage your investments better. Offering the special Wheel of Life portfolio strategy, which will help you to balance and safeguard your investment. • Also if you want to manage the mix of assets for your policy on your own, you have a choice of 7 investment funds, with complete flexibility to switch money from one fund to the other, to manage your investments better. • Get the option of limited premium payment ranging between 3 to 10 years. • Your policy continues to participate in the investment performance of the fund(s) even if you discontinue premiums in the first three policy years. • Flexibility of unlimited number of partial withdrawals at any time after 3 years from commencement of the policy, provided 3 full years' premiums are paid. • Flexibility to decrease your regular premium at any policy anniversary, to suit your changing needs. • At maturity, you can take your fund value in a lumpsum or as periodic instalments spread over a maximum period of 5 years. • A host of optional additional rider benefits which include assurance to your family with accidental death benefit and accidental permanent total/partial disability benefit. • Option to pay unlimited Top-up Premiums anytime during the tenure of your policy, to further enhance your savings. How does Bajaj Allianz CenturyPlus II work? Premiums paid by you, net of premium allocation charge, if any, are invested as per the portfolio strategy chosen by you at the unit prices of the fund(s). Your fund value is the total value of units that you hold in the fund(s). The 97

insurance cover charges, policy administration charges and the additional rider benefit charges (if any) are deducted through monthly cancellation of units. The Fund Management Charge is adjusted in the unit price. From the end of the 6th policy year, every year, a percentage of the first year's annual premium and, if applicable, a percentage of the fund value, is added to your fund(s) by the Company as Guaranteed Addition. Over and above the fund value, throughout the policy term, you have a risk cover of the Sum Assured chosen by you. Premium Payment Term: You have the flexibility to select any premium paying term ranging between three to ten years. Bajaj Allianz CenturyPlus II offers you the following cover: Your Sum Assured is always equal to 5 (five) times your Annualized Premium. Death Benefit • The Death Benefit will be the "Sum Assured in respect of regular premium and Top-up Premium (if any) plus the fund value in respect of regular premium and Top-up Premium (if any)''. • If three years’ regular premium has not been paid and the policy has lapsed, then death benefit will be the fund value in respect of regular premium and Top-up Premium (if any). Guaranteed Addition If your policy is not terminated, we shall allocate a Guaranteed Addition at the end of the 6th policy year, and thereafter at the end of each policy year, at the unit price, as applicable on date of allocation of the guaranteed addition, for an amount equivalent to: Policy Year End

Guaranteed Addition as percentage of first years' Annualized Premium

6 to 10

6%

*Guaranteed Addition as percentage of Regular Premium Fund Value 0.25%

*Guaranteed Addition as percentage of fund value in respect of regular premium will be allocated only to policies where Annualized Premium as on the date of allocation is greater than or equal to Rs. 100,000. No Guaranteed Addition will be allocated on fund value in respect of Top-up Premium (if any). Maturity Benefit On maturity, the fund value in respect of regular premium and Top-up 98

Premium (if any), will be paid. Surrender Benefit • The surrender value of the policy will be equal to the fund value less surrender charge, if any. • Your fund value shall be determined on the basis of the unit price as applicable on the date of receipt of written request to surrender the policy. However, if no such request is received, then surrender value shall be based on the fund value as on date of termination of the policy. • After three years from the date of commencement of the policy, you have the option to avail of surrender benefit by complete surrender of units at any point of time. Additional Rider Benefits available The following additional rider benefits in the form of riders can be availed of At the option of Policyholder. • UL Accidental Death Benefit Rider (UL ADB) • UL Accidental Permanent Total/ Partial Disability Benefit Rider ( ULAPTPDB) Important details of the Bajaj Allianz CenturyPlus II Plan Parameter Minimum Age at Entry Maximum Age at Entry Minimum Maturity Age Maximum Maturity Age Additional Rider Benefit Ceasing Age Minimum / Maximum Term Minimum Premium Paying Term Maximum Premium Paying Term Minimum Premium

Details 8 years Minimum age at entry for all riders is 18 years 60 years (50 years in case of all Additional Rider Benefits) 18 years 70 years 65 years 10 years 3 years 10 years Rs 15,000 per yearly installment, Rs 7,500 per half-yearly installment Rs. 4,000 per quarterly installment Rs 1,500 per monthly mode (Monthly mode is available through ECS and Salary Saving Scheme only) 99

Minimum Top Up Premium is Rs. 5,000 Minimum / Maximum Sum Assured

5 times Annualized Premium

17) BAJAJ ALLIANZ UNITGAIN PROTECTION PLUS “The plan that takes care of your insurance and investment requirements for life” With Bajaj Allianz UnitGain Protection Plus we have formulated a unique combination of protection and prospects of attractive returns with investment in various mix of assets to make a perfect plan to last you a lifetime prosperity and happiness. Key Benefits of Bajaj Allianz UnitGain Protection Plus • Guaranteed life cover, with a flexibility to choose insurance cover according to your changing needs. • Additional Sum Assured shall be payable in case of accidental death • 100% allocation to your funds from the 4th year onwards. • Guaranteed Addition to enhance your fund value every year from the sixth policy year. • Choice of 2 investment portfolio strategies to manage your investments better. Offering the special Wheel of Life portfolio strategy, which will help you to balance and safeguard your investment. • Your policy continues to participate in investment performance of the fund(s) even if you are unable to pay 3 full years' premium. • Flexibility of partial withdrawals at any time after 3 years from commencement of the policy provided 3 full years' premiums are paid. • Flexibility to increase or decrease your regular premium to suit your changing needs. • Flexibility to pay unlimited top-up premium during the tenure of your policy, an additional lump sum which gives a boost to your investment portfolio. • Flexibility to add additional rider benefits which gives you and your family extra protection How does Bajaj Allianz UnitGain Protection Plus works? Bajaj Allianz UnitGain Protection Plus is a simple to understand unit-linked life insurance plan. Premiums paid by you, net of premium allocation charge, are invested as per the portfolio strategy of your choice (&, if applicable, in fund(s) of your choice) and units are allocated depending on the unit price of the fund(s). The fund value of your policy is the total value 100

of units that you hold in the fund(s). From the end of the 6th policy year, every year, a percentage of the first year's annual premium is added by the Company as Guaranteed Addition. The mortality charge, policy administration charge and rider premium charges (if any) are deducted monthly through cancellation of units. Fund Management Charge is adjusted in the unit price. What are my Investment Options and Funds? Bajaj Allianz UnitGain Protection Plus provides you with two unique portfolio strategies, which can be chosen at the inception of the Policy or on subsequent policy anniversary: 1) Investor Selectable Portfolio Strategy 2) Wheel Of Life Portfolio Strategy a) Investor selectable Portfolio Strategy: If you want to allocate your premiums based on your personal choice and decision, you can opt for this strategy. You have a choice of seven (7) investment funds to make Your investment decision. Premium Apportionment: You can choose to invest fully in any one fund or allocate your premiums into the various funds in a proportion that suits your investment needs. The proportion of allocated premium to any fund must be at least 5%. At any policy anniversary, you also have the flexibility to change the proportion of future premiums to the funds. b) Wheel of Life Portfolio Strategy: • We provide you with “Years to maturity based portfolio management”. • At the commencement of the Policy, your premium (regular premium and top up premium, if any) would be allocated in various funds (namely Equity Index Fund II, Equity Growth Fund & Accelerator Mid-Cap Fund) • On each policy anniversary, we will reallocate your fund value among various funds in the proportion based on your outstanding years to maturity. • The premiums (regular premium and top up premium, if any) paid in that particular policy year will also be allocated in the same proportion. • This will ensure that a balance is maintained between your “years to maturity” and level of risk to your investments to optimize the returns. Important details of the plan: Parameter Minimum Entry Age Maximum Entry Age Minimum Age at Maturity

Details 8 years (18 years in case of Additional Rider Benefits) 60 years (50 years in case of Additional Rider Benefits) 18 years 101

Maximum Age at Maturity Minimum Policy Term Maximum Policy Term Minimum Regular Premium

Maximum Regular premium Minimum Top Up Premium Maximum Top Up Premium Minimum Sum Assured Maximum Sum Assured

70 years (Additional Rider Benefits ceasing Age 65 years) 10 years Customer selectable term subject to max maturity age Rs. 12,000 per yearly installment Rs. 6,000 per half- yearly installment Rs. 3,000 per quarterly installment Rs. 1,000 per monthly installment (Monthly mode is available through ECS and Salary Saving Scheme only). No Limit Rs. 5,000 No Limit 5 times Annualized Premium Policy Term times Annualized Premium with base cover [Only 5 times Annualized Premium with base cover & Rider(s)]

Guaranteed Addition If your policy has not been terminated, we shall allocate guaranteed addition at the end of the sixth policy year and thereafter at the end of each policy year at the unit price as applicable on date of allocation of the guaranteed addition for an amount equivalent to the following: Annual Premium Guaranteed Addition as percentage of First years’ Size at Annualized Premium from policy year end 6 and above the inception of the policy 12, 000-24, 999 1.50% 25, 000-99, 999 5.50% 100000-249, 999 6.50% 250000 and 7.00% above No Guaranteed Addition will be allocated on fund value in respect of top up premium (if any). Guaranteed Addition will be allocated to your policy even if you have stopped paying premiums.

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Key developments for Bajaj Allianz Life Insurance Company Ltd. 1) Bajaj Allianz Life Insurance Company Ltd. Reports Earnings Results for the First Quarter of 2010 07/16/2009 Bajaj Allianz Life Insurance Company Ltd. reported earnings results for the first quarter of 2010. For the quarter, the company posted a profit of INR 6,800 million, against a loss of INR 30 million. New business premium underwritten by the company stood at INR 5,770 million, registering a negative growth of 30%. 2) Bajaj Allianz Life Insurance Launches Invest Plus, to Offer Upfront Minimum Guaranteed Investment Returns at the Beginning of Each Year 06/15/2009

Bajaj Allianz Life Insurance Company Ltd. has launched Invest Plus, which offers upfront minimum guaranteed investment returns at the beginning of each year. Invest Plus is the first-of-its-kind traditional plan that offers upfront minimum guaranteed investment returns at the beginning of each year and a guaranteed maturity value so that customers can feel protected at all times and plan their investments without any worries. Invest Plus offers guaranteed benefits in these uncertain times. The USP is the transparency of a ULIP product in a traditional product. The minimum guaranteed investment returns works towards the benefit of the customer as he gets an upfront minimum guaranteed rate of returns. This would be beneficial irrespective of market conditions as he is equally compensated by guaranteed returns. Minimum guaranteed returns stand for a rate of return which is declared at the beginning of each financial year itself and promises to offer the customer the same return for the year irrespective of the market scenario. 3) Dhanalakshmi Bank and Bajaj Allianz Sign Strategic Partnership 05/28/2009 Dhanalakshmi Bank has joined hands with Bajaj Allianz General Insurance Co. Ltd. and Bajaj Allianz Life Insurance Company Ltd. to offer both life and non-life insurance products. Bajaj Allianz has also launched a cobranded product called Dhanam Suraksha, a health insurance product with a family-floater plan, which will be available exclusively for the bank's customers, a release here said. Through the alliance, Dhanalakshmi Bank will make available Dhanam Suraksha along with other Bajaj Allianz Insurance products and services to its customers. These include motor insurance, health insurance, home insurance and life insurance which will be 103

provided to the bank's customers through its 181 branches and 26 extension counters.

RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. Research methodology constitutes of research methods, selection criterion of research methods, used in context of research study and explanation of using of a particular method or technique so that research results are capable of being evaluated either by researcher himself or by others. Why a research study has been undertaken, how the research problem has been formulated, why data have been collected and what particular technique of analyzing data has been used and a best of similar other question are usually answered when we talk of Research methodology concerning a research problem or study. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet.

The area of the study related with informing different people about life insurance policies in the region of Lucknow.

SAMPLE DESIGN A sample design is a definite plan for obtaining a sample from a given population. It refers to the techniques or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well be drawn from the population to be included in the sample i.e. the size of the sample. Sample design is determined before data are collected.

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During my study I have taken 60 prospects as the size of sample.

TOOLS USED

To know the response, I have used the questionnaire method. If one wishes to find what prospects think or know, the logical procedure is to ask them. This has led marketing researchers to use the questionnaire technique for collecting data more than any other method.

In this method questionnaire were distributed to the respondents and they were asked to answer the questions in the questionnaire. The questionnaire were structured non disguised questionnaire because the question which the questionnaire contained, were arranged in a specific order besides every question asked were logical for the study, no question can be termed as irrelevant.

The questionnaire was non-disguised because the questionnaire was constructed so that the objective is clear to the respondent. The respondents were aware of the objective. They knew why they were asked to fill the questionnaire.

With the help of following techniques, which are used by Bajaj Allianz I have analyzed that the how techniques of sales promotion are useful

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Questionnaire used was as follows: Name: Address: Contact number: Age: 1) Whether you are Married or Unmarried? (.M for married, U for

Unmarried) : 2) What is your Educational Qualification? 3) What is your Profession? 4) How many People depend on you? 5) What is your Annual Income? 6) Which vehicle you own? 7) What are the recent developments in your family?

• New House • New Baby • New Car 8) Where do you invest money? • Savings Bank Account • Insurance Policies • Shares • Mutual Fund

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• Real Estate

DATA COLLECTION PRIMARY DATA SOURCES

• Through interaction with insurance care consultant • Through questionnaires filled from the insurance care consultant. SECONDARY DATA SOURCES: • Through internet, various official sites of the companies. • Through pamphlets and brochures of the companies. • Journals & Magazine

LIMITATIONS OF THE STUDY Following limitations were faced during the study: 1. While designing the questionnaire it was kept in mind to gather more and more information from each target person. For the neither present nor descriptive questions could have served the purpose. Therefore the questionnaire contained in the open-ended questions. 2. The study was conducted in Bajaj Allianz in Lucknow city, which has 60 to 100 insurance prospects only. The sample size was of 50 insurance care consultants only so that accuracy of data so collected could be absurd covered by circulation of questionnaire. 107

3. The accuracy of indications given by the respondents may not be consider adequate as whether the language used in the questionnaire is understood by the respondent cannot be taken for granted. 4. The study is based on the information gathered from the insurance care consultants. Therefore in such case it is possible that the information supplied might be biased because the insurance care consultant might have shown partiality towards their insurance policies. 5. Since the survey was limited to 50 insurance prospects it is rather

difficult to give a precise conclusion but I have tried to the best of my capability to give the conclusion on a comprehensive manner.

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RESULT •

Most of investors not fully aware about Life insurance policies and their advantage.

•

It was found most of the investor prefer, less risk taking saving scheme or fixed deposits.

•

Some of the people, who were related to rural area, did not know about facility for investment of money in Life Insurance Policy schemes.

•

The proportion of investor and non-investor 20% & 80%.

•

The investors were interested more in Policies of LIC because it is a Government body.

•

Some of the investors were pleased to know about New FamilyGain and said that it is a very good plan and is very much affordable by middle class people.

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SUGGESTIONS & RECOMMENDATIONS Through out the project work I have tried to my extent to learn more and more so that I enable myself to deliver the best services from my part. I always focused my services to full satisfaction whether it would for employer or for customer. So during this practical learning process whatever I have realized to improve the division of the company is as follows: •

Tapping the up coming market - Semi Urban Market as there is a lot of opportunity. Most of the Life Insurance companies are operating in the metros and big cities as per their present branch office locations. If they have to increase their market size they have to open more distribution centers at the various urban and semi-urban markets.

•

The company always should have proper communication with its front office as well as back office workers to increase the morale and productivity.

•

The company should always have proper planning for gifts/incentives for employees on various occasions or on competitions.

•

Premium and economical class of services should be launched by the company to serve the varied nature of customers.

•

Service cum awareness camps should be run by the company in remote areas. .

Distribution channel needs more strength.

. Improvement in services through feedbacks from customers is recommended.

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LIMITATIONS

As every aspect of life has its own limitation the same goes with research. The few limitations attached to this research are: •

As time and tide waits for none so is the case with this research. A much more detailed analysis could be done had three been more time spent for data collection. Due to lack of time data from the all places could not be collected.

•

Management of all the activities from one place limited the research with in it self as appropriate data, which was required, was not available.

•

The views of respondents are likely to change as human nature is very dynamic.

•

The result figure may be biased since the subjects/investors may provide wrong information.

•

The survey may not give the whole scenario of Indian market.

•

Some subjects/investors were not co–operative on their approach. 111

BIBLIOGRAPHY www.bajajallianzlife.co.in www.en.wikipedia.org www.google.com Insurance Principles and Practice- By Noorul Hasan Ambar Prakashan Kendra, Lucknow 2009 Edition Page Numbers- 15, 16, 77

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