nitish arora banking3

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LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

ASSIGNMENT

OF

BANKING AND INSURANCE

AND

SUBMITTED TO:

SUBMITTED BY

MISS.RAZIA SAHDEV

NITISH ARORA

(LECTURER IN L.H..S.B)

SECTION Q1809

ROLL NO -21

BBA(HONS)-5TH SEM

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United India Insurance Company Limited

Introduction :

United India Insurance company is a leading General Insurance Company of India. The

company has more than three decades of experience in Non-life Insurance business. It was

formed by the merger of 22 companies, consequent to nationalisation of General Insurance.

Its Head Quarters is at Chennai, India. United India Insurance Company Limited wasincorporated as a Company on 18 February 1938. General Insurance Business in India was

nationalized in 1972. 12 Indian Insurance Companies, 4 Cooperative Insurance Societies and

Indian operations of 5 Foreign Insurers, besides General Insurance operations of southern

region of Life Insurance Corporation of India were merged with United India Insurance

Company Limited. After nationalization United India has grown by leaps and bounds and has

18300 work forces spread across 1340 offices providing insurance cover to more than 1 Crore

policy holders. The Company has variety of insurance products to provide insurance cover

from bullock carts to satellites.

United India has been in the forefront of designing and implementing complex covers to largecustomers, as in cases of ONGC Ltd , GMR- Hyderabad International Airport Ltd, Mumbai

International Airport Ltd Tirumala- Devasthanam etc. It has been also the pioneer in taking

Insurance to rural masses with large level implementation of Universal Health Insurance

Programme of Government of India & Vijaya Raji Janani Kalyan Yojana ( covering 45 lakhs

women in the state of Madhya Pradesh) , Tsunami Jan Bima Yojana (in 4 states covering 4.59

lakhs of families) , National Livestock Insurance and many such schemes. It has also made

our presence in more than 200 tier II & II towns and villages through its innovative Micro

Offices.

Products and services

Personal Services

Householder

Personal Accident

Mediclaim

Unimedicare

Commercial Services

Fire Insurance Marine Insurance

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Motor Insurance

Industrial Insurance

Liability Insurance

SWOT ANALYSIS ofUnited India Insurance company

Strengths:

Dedicated Employees.

Well Efficient Management.

Technology.

Diversification of funds.

Strong and popular brand name.

Adaptability to changes.

Weakness:

Lack of good services.

Lack of awareness about insurance among people.

Less coverage in Rural Areas.

Opportunities:

Fast growing economy.

Increasing per capita income in India.

Saving behavior.

High growth of ULIP industry.

Threats:

Arrival of new entrants in the insurance industry.

Cut throat competition within the industry

Benefits offers by life insurance policies:

a) Death Benefit:

An amount equal to the Sum Assured under the basic plan along with Reversionary Bonuses,

and Final Addition Bonus, if any, will be payable.

b) Survival Benefits:

Survival benefits will be payable as given below:

% Of SA under the Basic plan

Survival to end of15-yearplan

20-yearplan

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5 yrs 20% 20%

10 yrs 20% 20%

15 yrs - 20%

c) Maturity Benefit:

For policy term of 15 years: 60% of the Sum Assured under the basic plan along with

vested Reversionary Bonuses and Final Additional Bonus, if any, will be payable.

For policy term of 20 years: 40% of the Sum Assured under the basic plan along with

vested Reversionary Bonuses and Final Additional Bonus, if any, will be payable.

Optional Benefits:

a) Critical Illness Benefit Rider :

An amount equal to the Critical Illness Rider Sum Assured will be payable in case ofdiagnosis of defined categories of Critical Illness subject to certain terms and conditions,

provided the Critical Illness Benefit cover is opted for and is in force. The maximum cover

for this rider will be Rs.5 lakh under all policies of the Life Assured with the united insurance

taken together including the new proposal under consideration. The Critical Illness Rider

Sum Assured shall also not exceed the Sum Assured under the Basic Plan.

b) Accident Benefit Rider :

Accident Benefit as optional rider will be available under the plan for an amount equal to theAccident Benefit Rider Sum Assured subject to the maximum of Rs.50 lakh overall limit

considering the Accident Benefit Sum Assured in respect of all existing policies on the life of

the Life Assured under individual and group policies including the policies taken from United

life Insurance of India and other Insurance companies and the Accident Benefit Rider Sum

Assured under new proposal into consideration.

c) Congenital Disability Benefit Rider: An Amount equal to 50% of the Congenital

Disability Benefit Rider Sum Assured will be payable if the Life Assured gives birth to a

child with specified congenital disabilities. This benefit is payable for a maximum of 2 such

congenitally disabled children.

Rs.5 lakh is the maximum limit taking all Congenital Disability Benefit Riders under all

policies of the life assured including the new proposal into consideration.

Special Features:

i. Encashment of survival benefits as and when needed:

A policyholder can take the survival benefits on or after the due dates, but before the date of

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maturity. In case of deferment of a due survival benefit, the Corporation will pay increased

survival benefit and the increment will be at such rate as decided by the Corporation from

time to time compounding yearly for complete number of months, a fraction of a month being

ignored. This option shall be required to be exercised six months before the due date of the

Survival Benefit. To start with, the rate of increment will be 4% p.a. compounding yearly for

complete number of months, ignoring fraction of a month.

ii. Flexibility to pay premiums in advance:

A policyholder will have the flexibility to pay the next yearly premium in advance. The

policyholder will be eligible for a premium rebate at such rate as may be decided by the

Corporation from time to time. The premium mentioned above will also include premiums

for Critical Illness Rider, Congenital Disability Benefit Rider and Accident Benefit Rider, ifopted for. She will be eligible for a premium rebate of 5% p.a. for complete number of

months on the portion of premium paid.

iii. Option to receive maturity benefits in the form of an annuity:

The policyholder will have the option to receive the maturity proceeds in the form of an

annuity. The immediate annuity rates prevalent at the time of maturity will be applicable.

iv. Auto cover :

Provided at least two years premiums have been paid under a policy, full death cover will be

admissible for a period of three years from the date of first unpaid premium. If death of Life

Assured occurs during the Auto Cover period, then death benefit after deducting unpaid

premiums, with interest will be payable along with the vested bonuses and Final Additional

Bonus, if any. However, claims under the Critical Illness Rider, Congenital Disability Benefit

Rider and Accident benefit will not be admissible during Auto Cover period. Further,

(a) If Critical Illness Rider is not opted for:

If any survival benefit falls due during the above 3-year auto cover period the same will be

paid after deduction of unpaid premiums with interest thereon until the due date of the

survival benefit, provided it is more than the unpaid premiums with interest thereon. If the

survival benefit is insufficient to cover the arrears of premiums with interest thereon up to the

due date of such survival benefit, then the survival benefit will be payable only on payment

of such arrears of premiums with interest thereon, during the period of the aforesaid 3 years

or on revival of the policy thereafter.

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(b) If Critical Illness Rider is opted for:

If any survival benefit falls due during the above 3-year auto cover period the same will be

paid only on revival of the policy.

Loans:

Loan facility will be available under this plan after the policy acquires paid up value. The rate

of interest charged for this loan amount would be determined from time to time by united

India insurance company.

Eligibility Conditions and Restrictions Basic Plan

a) Minimum Sum Assured : Rs.50,000/-

b) Maximum Sum Assured : Rs 25,00,000/-

c) Minimum age at entry : 18 years completed.

d) Maximum age at entry : 55 years nearest birthday

e) Maximum age at maturity : 70 years nearest birthday

f) Policy Term : 15 & 20 years

The Sum Assured shall be in multiples of Rs. 5,000.

Accident Benefit Rider:

a) Minimum Sum Assured : Rs. 50,000

b) Maximum Sum Assured: An amount equal to the Sum Assured under the Basic Plan

subject to the maximum of Rs.50 lakh overall limit considering the Accident Benefit Sum

Assured in respect of all existing policies on the life of the Life Assured under individual and

group policies including the policies taken from Life Insurance Corporation of India and

other Insurance companies and the Accident Benefit Rider Sum Assured under new proposal

into consideration.

The Sum Assured shall be in multiples of Rs. 5,000.

c) Minimum Entry Age : 18 years completed

d) Maximum Entry Age : 55 years nearest Birthday

e) Policy Term : 15 & 20 years

f) Maximum Maturity Age : 70 years nearest Birthday.

Critical Illness Rider:

a) Minimum Sum Assured : Rs. 50,000

b) Maximum Sum Assured: An amount equal to Critical Illness Rider Sum Assured subject

to the maximum of Rs.5 lakh overall limit taking all critical illness riders under all existing

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policies of the life assured and the critical illness rider option under the new proposal into

consideration.

The Sum Assured shall be in multiples of Rs.10,000/-.

c) Minimum Entry Age : 18 years completed

d) Maximum Entry Age : 50 years nearest Birthday

e) Policy Term : Same as basic plan or till age 60 years nearest birthday whichever is earlier.

If PWB is opted for, then the term of the rider should be same as that of the term of the basic

plan.

f) Maximum Maturity Age : 60 years nearest Birthday. If PWB (under the Critical Illness

Rider) is opted for, then the following conditions apply:

(i) The term of all the riders opted for must be same as that of the basic plan.(ii) The Sum Assured of all the riders opted for must be same as that of the basic plan.

Congenital Disability Benefit Rider:

a) Minimum Sum Assured : Rs.50,000

b) Maximum Sum Assured : Rs 500,000

Rs.5 lakh is the maximum limit taking all Congenital Disability Benefit Rider under all

policies of the life assured including the new proposal into consideration.

c) Minimum Entry Age : 18 years completedd) Maximum Entry Age : 35 years nearest birthday

e) Maximum Benefit Ceasing Age : 40 years nearest birthday

f) Terms allowed : Same as the basic plan or till age 40 years (nearest birthday, whichever is

earlier.)

PRODUCTS:

Endowment Policy

Endowment with Profits - Plan no.14

Limited Payment Endowment with Profits - Plan no.48

New jeevan suraksha Policy - Plan no.91

Jeevan Mitra Triple Cover - Plan no.133

Group Insurance Policy

Group Insurance Scheme in lieu of EDLI

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Group (Term) Insurance Scheme

Group Savings Linked Insurance Scheme

Group Superannuation Scheme

Group Mortgage Redemption Assurance Scheme

Shiksha Sahayog Yojana

Joint Life Policy

Jeevan Saathi - Plan no.89

Money Back Policy

Money Back with Profit - Plan no.75

New Money Back - Plan no.93

Bachat- Plan no.175

Pension Plans or Annuities

New avdhoot investment - Plan no.148

New Jeevan Suraksha Plan no. 147

Jeevan Akshay II Plan no. 163

Jeevan Nidhi Plan no. 169Jeevan Akshay V Plan no. 183

Special Plans

Term Assurance - Plan no.43

Mortgage Redemption - Plan no.52

Jeevan Aadhar - Plan no.114

Market Plus - Plan No 181

Jeevan Vishwas Plan No. 136

Jeevan Pramukh Plan No. 167

Money Plus-Plan No 180

Term Policy

Convertible Term Assurance - Plan no.58

Term Assurance

Amulya Jeevan-Plan No-177

Whole Life Policy

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Whole Life with Profits - Plan no.2

Limited Payment Whole Life with Profits - Plan no.5

Single Premium Whole Life - Plan no.8

Jeevan Tarang- Plan no.178

FOR CHILDREN: -

1. bachapan: - This is a money back plan with guaranteed addition and payment of

premiums ceases on the policy anniversary immediately after the child attains 18 years of

age.

This policy is suitable for parents who wants to secure money for their childrens higher

education. It can be availed by parents having children aged between 0 to 10 years.

Strength: - In the ever demanding and competitive environment, it is essential to provide the

best education to your children which can be very expensive. Fortunately, the sooner you

start investing for their education, the more flexibility you'll have and will enable your

children to achieve proficiency in their career endeavours. This would make the children

proud of their parent's effort and call them The Best Parents.

LIC now introduces a new plan to take care of these needs A Bachpan Plan with payment

of premium ceasing on policy anniversary immediately after the child attains 18 years of age.

The plan, besides offering risk cover, also offers payment of Sum Assured in instalments at

age 18,20,22,24 and Guaranteed and Loyalty additions, if any, at the age 26.

Weakness The close relations such as grandparents, elder brothers or sisters, uncles both

from paternal or maternal side can gift 'single premium policy' for love and affection under

this plan. in such cases also, the policies will be proposed by father, mother or legal

guardian.

Source - Life Insurance India, LIC India.

If life insurance buying is approached in the proper manner it can be very beneficial to

yourself and your family. You need to take the time to give some thought to a subject that can

be very unpleasant. I guess that is why most people don't think about it, or at best think about

it only after they have had a brush with death, or when a life insurance professional brings up

the subject. Sometimes these people wait until it is too late to do something about such a

critical matter.

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They find themselves uninsurable when they discover they have some critical illness. People

should give life insurance buying serious thought at least once per year as ones situation may

change and you find that your need for life insurance may change as a result.

Threat: - The policies and benefits given or provided by other insurance plan companies.

2. Children deferred: - His Plan of assurance is designed to enable a parent or a legal

guardian or any near relative of the child to provide for the child by payment of a very low

rate of premium. This is an endowment assurance policy, risk under which will commence at

21 years of age. The policy envisages two stages, one covering the period from the date of

commencement of the policy to the deferred date called the deferment period and the other

covering the period from the deferred date to the date on which the policy emerges as claim

by the death of the child or its survival to a stipulated date. A combined policy will be issued

covering both the aforesaid periods. Ordinarily, policies under this scheme will be issued on

the lives of children, both male and female who have not completed 18 years. No medical

examination would be required where the deferment period is 10 years or more but where it is

less than 10 years, medical examination of the child would be required.

Strength: - Maturity Benefits:

Basic Sum Assured + Vested Bonus + Final Additional Bonus

Death Benefits:

Basic Sum Assured + Vested Bonus + Final Additional Bonus, if death occurs after

date of commencement of risk.

Total Premiums paid excluding the premiums for premium waiver benefit will be

refund, if death occurs before date of commencement of risk.

Mode Benefit:

The following table shows the rebate available on the mode of premium payment.

Mode Rebate

Yearly 1.5 % of tabular premium

Half - Yearly Nil

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Quarterly Nil

Sum Assured Benefit:

The following table shows the rebate available on the sum assured.

Sum Assured Rebate

30,000-49,999 Rs. 0.5 Per Thousand

50,000 and Above Rs. 1.0 Per Thousand

Opportunities: -

Best suited for parents/legal guardians with children.

The policy is an Endowment Assurance plan.

The risk commences only after the child attains a certain age

No medical exam is required if the deferment period is 10 years or more.

FOR EMPLOYED PERSON:-

1. Endowment with profit - Life insurance policy that pays the assured sum plus

bonuses accumulated over the term of the policy. The insured pays a higher-than-normal

premium, which is invested in the insurance company and draws annual bonuses that are

added to the assured sum and paid on maturity or upon the death of the insured. Also

called endowment life policy with profits, or endowment policy with profits.-

Disability Benefit:

In case policy holder becomes totally and permanently disabled due to an accident before

reaching the age of 70 and the policy is in full force, he will not be required to pay further

premiums, (the Disability Benefit is available in respect of the first Rs.20,000 sum

assured on any one life) and the policy will continue to be in force.

Accident Benefit:

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By paying a small extra premium of Rs.1 per Rs.1000/- sum assured per year he or his

family are entitled to the following benefits on death or permanent disability caused by

accident. Even students above the age of 18 years can avail of this benefit.

Premium Stoppage:

If payment of premiums ceases after at least THREE years' premiums have been paid , a

free paid-up policy for a reduced sum assured will be automatically secured provided the

reduced sum assured, exclusive of any attached bonus, is not less than Rs. 250/-. The

reduced sum assured will become payable on the event as stipulated in the policy.

Bonus:

Every year the Life Insurance Corporation distributes its surplus among policyholder to

with profits polices in the form of bonuses. Substantial bonuses have been declared in

the past after each valuation of policy liabilities.

Death Benefits

Payment of full sum assured + Vested Bonus

Survival Benefits

Payment of full Sum Assured + Vested Bonus + Final Additional bonus, if any.

Other Conditions

Minimum age at entry : 12 years

Maximum age at entry : 65 years

Maximum age at maturity : 75 years

Minimum Sum Assured : Rs.00,000

Maximum Sum Assured : No Limit

Policy Term : 5 to 55 Years

Mode of Payment : Monthly, Quarterly, Half Yearly, Yearly, Salary Saving Scheme

weakness: -

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Opportunity: -

Being an endowment assurance policy, this plan is apt for people of of all ages

and social groups who wish to protect their families from a financial setback that

may occur owing to their demise.

The amount assured if not paid by reason of his death earlier will payable at the

end of the endowment term where it can be invested in an annuity provision for

the rest of the policyholder's life or in any other way he may think most suitable at

that time.

2. Jeewan mitra LIC Jeevan Mitra is a Tripple Cover life insurance policy that provides

financial protection at a greater level against the death of policy holder thro' out the entire

term of the policy. On survival till the end of the policy term, the maturity amount is paid.

This LIC Jeevan Mitra policy can be applied only for the people living at the class I and class

II standard and sub standard. It is not allowed for those engaged under hazardous

occupations. Those individuals who are engaged in dangerous pursuits are will be rated

against the revised occupational extra rates.

Strength: - Besides the usual benefits offered by any endowment insurance plan, this policy

provides for an additional insurance cover equal to the sum assured in the event of a policy

holders death during the term of the policy. In other words, the death claim in the case of this

policy is twice the basic sum assured.

The survival claim, on the other hand, is the basic sum assured, plus the accrued bonuses.

Bonus is, similarly, calculated only on the basic sum assured at rates applicable to

endowment policies.

For instance, if a person insured for Rs.10,000 under this policy were to die before its

maturity, the death claim payable would be Rs.20,000 plus the accrued bonus on Rs.10,000,

the basic sum assured. If the policy holder survives the full term of the policy, the pament on

maturity would be Rs.10,000 plus the accumulated bonus.

Opportunities: - Being an endowment assurance policy, this plan is apt for people of of all

ages and social groups who wish to protect their families from a financial setback that may

occur owing to their demise. The amount assured if not paid by reason of his death earlier

will payable at the end of the endowment term where it can be invested in an annuity

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provision for the rest of the policyholders life or in any other way he may think most suitable

at that time.

FOR SENIOR CITIZEN: -

1. Pension plan -Pension Plans are Individual Plans that gaze into your future and foresee

financial stability during your old age. These policies are most suited for senior citizens and

those planning a secure future, so that you never give up on the best things in life.

Citizen first-VI

Jeevan nidhi

New jeevan dhara-I

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Introduction: -

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 insurancecompanies. 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

Children plans: -

Bajaj allianz life insurance Plus II

A few decades back, it was all about focusing on education and ensuring that the children get

the best opportunities for their education. Now it goes beyond that. Its more about having a

multi-faceted personality, being an all-rounder and excelling in various fields.

This desire that every parent has for their child. Therefore, our child plan is designed

specifically to ensure that your child not only gets the best of education but also can explore

and develop his/her hidden talent.

Bajaj Alianz Shiksha plus II is a 360 degree child plan that provides for over all development

of your child in all the circumstances.

Strength: -

Maturity Benefit:

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University Education Pool: On maturity, you will be eligible for an amount equal to

prevailing Fund

Value where the Fund Value will be calculated as:

Fund Value = (Accumulated Units * prevailing NAV)

Death Benefit:

In case of Death of the Life Insured before maturity of Policy, the following benefits shall

apply:

Immediate Family Support: 100% of applicable Sum Assured is paid immediately to the

nominee on the

Death of Life Insured.

University Education Support: All future Premiums are funded by the Company on the due

dates to boost

The University Education Pool. These Premiums will be directly credited to the policy.

School Fee Support: 10% of Sum Assured will be paid immediately along with Immediate

Family

Support. From the next policy anniversary following the date of death, 10% of sum assured

will be paid on

Each policy anniversary till the policy term subject to the maximum payout under School Fee

Support not

Exceeding 100% of the sum assured.

University Education Pool: On the original Policy Maturity date, the prevailing Fund Value

is paid out for

Higher education.

Weakness: -A Grace Period of Thirty (30) days (15 Days in case of monthly mode) from the

due date shall be allowed for payment of contractual Premium without any interest or

penalty. On expiry of Grace Period, the Company shall serve a notice within a period of 15

days to the policyholder to exercise the below mentioned options within a period of 30 days

from the receipt of such notice.

Option 1: Revival of policy

Option 2: Complete withdrawal from the policy without any risk cover

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The policyholder can exercise Option 1 to revive the Policy if,

a. The Policyholder gives the Company a written request to revive the Policy; and

b. The Policyholder has produced evidence of insurability acceptable to the Company as per

the Companys underwriting practices; and

c. The Policyholder pays the Company all overdue contractual Premiums.

On revival, the amount of Premium paid on revival, less any Premium Allocation Charge

attributable to the Premium paid on revival, shall be allocated in the Funds, as specified by

the Policyholder.

Opportunities: -Now days parents are very much conscious about there children because

miss happening are taking place more than previous days. So children plans are more used ortaken by the parents.

Threat: - There were less children plans then other insurance companies.

Strength: -

Tax Benefits: This plan may entitle you to certain tax benefits on your premiums as well as

on your benefits subject to Tax Laws prevailing from time to time. In the current scenario -

Deduction U/s 80C of the Income Tax Act 1961 on your premiums, up to Rs.

100,000/-.

Exemption U/s 10(10D) of the Income Tax Act 1961 on your Maturity and Death

Benefits.

Maturity Benefit: Fixed Percentage of Single Premium as mentioned in Maturity Value

Table

Surrender Value: This Policy will acquire a surrender value from the second Policy Year

onwards.

The Surrender Value in this Policy will be higher of

(a) Guaranteed Surrender Value which is 80% of Single Premium and is guaranteed or

(b) Special Surrender Value determined by company from time to time. The Special

Surrender Value benefit as shown in product brochure is only indicative and is subject to

change as per the companys actual experience.

Death Benefit:

Age 91 Days to upto 7 Years Return of Premium along with interest @3.5% p.a.

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compounded annually.

Age 7 Years and onwards Prevailing Sum assured

o During Policy Year 1 Sum Assured 5 times Single Premium

o During Policy Year 2 and onwards 2 times Single Premium

Eligibility Criteria

Eligibility Criteria

Minimum/Maximum Entry Age of Life

Assured (Last Birthday)

91 Days to 55 Years

Minimum/Maximum Policy Term Fixed 10 Years

Maximum Maturity Age of Life Assured 65 years

Premium Payment Term Single Premium

Minimum Sum Assured Year 1: 5 Times Single Premium

Year 2 and onwards: 2 Times Single Premium

Minimum/Maximum Premium Minimum: Rs. 50,000/-

Maximum: Rs 10,00,000/-

Senior citizen: -

Life Partner plus Plan

This plan offers you triple benefits. It gives you maturity benefits at the age of 75, provides

people a life coverage insurance and fulfill the financial needs of peoples family members,

in case of people untimely death and offers people money back feature as well, where it will

pay a part of the sum assured at regular intervals to take care of their periodic foreseen needs.

Strength: -

Death Benefit

in case the life insured dies it will immediately pay the sum assured equal to 10 times

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of the annual premium.

The policy shall continue to be in existence as it is and all the future premiums will be

funded by the company.

The loyalty additions will also be credited while the policy is on a premium funding

mode.

On actual maturity date of the policy, the maturity value will be paid to the nominee.

Living Benefit

The plan offers Loyalty additions @ 10% of the annual premium and shall be credited

to your account on each of the last 5 policy anniversaries provided the policy is in

force and all due premiums have been paid.

The loyalty additions as and when credited enhance the account value and the interest

is credited on the enhanced account value, thereby making is a double benefit.

Maturity Benefit

The plan matures as per the policy term chosen. The account value at the time of

maturity is payable to the policyholder and the contract ends. Please note that the

account value at maturity will at least be a value considering that the interest credits

have happened at the rate of 3.5% throughout the policy term. This value will also

reflect in the benefit illustration under the guaranteed benefits column.

Tax Benefits

This plan entitles people to certain tax benefits on their premiums as well as on their maturity

value.

Growth perspective : -

According CEO & MD of Bajaj life insurance. It has grown by 54% as of December

2008 on the APE basis. This growth, however, is likely to taper off by the year end

because of the overall conditions. In the next fiscal, It is hoping to outpace the

industry, growth-wise. It has expanded rapidly last year. Bajaj life insurance has 575

offices in the country and an agent network of 72,000.

It has one of the best agency models, with high-quality, better trained agents. Its

market share stands at 6.5% in the private life pie. The industry is expected to grow at

10-15% and It will grow at 2-3 times of the industry growth rate next fiscal. Its paid up

capital is Rs 1,782 crore as of now. It definitely need capital to fund our growth and it

will definitely happen.

The exact modalities will be decided, but we require capital to the tune of Rs 700-800

crore. In fact, the company saw an infusion of Rs 350-crore capital to fund our

expansion plans in November 2008. The upcoming capital infusion is likely to happen

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in 3-4 tranches.

Suggestions: -

As the need of the people is changing so is changing the investment habits of the people and

this has brought in a spate of new products and schemes where people can invest.

Companies should also innovate to come up with better products that would suit the Indian

population and should also try to market and sell their products through new channels of

distribution that can be effective in selling their products to the masses.

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