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EXECUTIVE SUMMARY

The insurance industry has come a long way since the time when businesses were tightly regulated and concentrated in the hands of a few public sector insurers. Following the passage of IRDA act in 1999, India abandoned public sector exclusively in the insurance industry in favor of market driven competition. This change has brought about major changes in the industry. The inauguration of new era of insurance development has seen the entry of international insurers the proliferation of innovative products and distribution channels and rising of supervisory standards. Range of different products is launched frequently to cater to the different segments of the market. At the same time changes are also witnessed in the distribution channels. Traditional agents were supplemented by other channels including Internet and Bancassurance. These developments are instrumental in propelling business growth. Bajaj Allianz is one of the most renowned insurance organizations of India. The organization realized the scope and potential of exploring almost all the insurance sector. Bajaj Allianz has also taken advantage of Bancassurance channel of distribution and has capitalized the benefits. It has entered into tie ups with many private and public sector banks. My scope of study during the project was in the Bancassurance channel of the company. Attitude survey of the customers is also done along with strategically evaluating the position, footfall at the bank branches and many other aspects. The study although is limited to the tie up with the UBI but the insights gathered from the interaction with the customers, bank managers and employees is representative of the scenario of the Bancassurance at the public sector banks. The main focus was on selling of the health insurance policies to the walk in customers of the bank. In the course of it I had tried to analyze the potential of health insurance policies in the UBI branches of India as a whole. And have given the projections for the next three years in conservative and aggressive case scenario. The methodology adopted has been kept very flexible for the sake of simplicity.

INTRODUCTION
A contract of insurance is that of utmost good faith or Uberrimae Fides, which means that it is the duty of the proposer to make a full disclosure of all the facts to the insurer and in the event of failure to disclose material facts, the contract can be held to be void ab initio. The insurer is in the position of a trustee as it manages the common fund, for and on behalf of the community of policyholders.

The business of insurance is to (a) Bring together persons with common insurance interests, (b) Collect the share or contribution (called premium) from all of them, and (c) Pay out compensations (called claims) to those who suffer loss. In India, insurance business is conducted as life and non-life (general).

Life Insurance products : Life Insurance means some guarantee to the life. These are products which act as a kind of investment for the policy holder. The insurance policy have a fixed tenure over which the policy holder pays the premium, at the time of

maturity he gets back the insured amount which is equal to the premium he paid compounded at some rate. The insured amount is reimbursed only at the maturity time and not before that.

General Insurance products : The non life insurance is also called general insurance. General insurance, as the name suggests, covers all other aspects of economic activity, assets/ property, vehicle, and certain personal insurance like Health & personal accident to name a few . They basically compensate against financial loss that may arise to property, Vehicle, self, accidental death etc due to unforeseen reasons, though it does not cover loss arising out of speculation or business/ trade related losses. The business of General insurance is related to the protection of the economic values of the assets. Insurance companies are called insurers.

OBJECTIVES OF THE STUDY


The objectives of the study are To study the functional aspects of Bancassurance. To gain knowledge about various insurance policies Comparison of some of the plans offered by the company with some of its competitors and with benchmark indices. To gain knowledge about the operational/functional aspects of general insurance business. To find potential of retail product market To see what are the challenges in the non life insurance business in public sector banks. Suggest the ways by which the loopholes could be eliminated.

CONCEPTS/MODELS INTRODUCED IN THE STUDY

Principle of Utmost Good Faith or Uberrimae Fides- This means that it is assumed that the information disclosed in the proposal form is correct. If found to be incorrect the contract would be void ab initio.

Principle of Insurable Interest- It means that the proposer must have a stake in the continuance of the subject matter insured and could suffer a loss if the risk occurs.

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

Principle of Indemnity- Insurance is meant to compensate losses and the mechanism of insurance cannot be used to make a profit. This is the principle of indemnity as a claim cannot exceed the amount of loss incurred.

Principle of Affordable Premium- If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance.

HISTORY OF INSURANCE
Insurance sector in India is one of the booming sectors of the economy and is growing at the rate of 15-20 per cent annum. Together with banking services, it contributes to about 7 per cent to the country's GDP. The origin of life insurance in India can be traced back to 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. In 1912, insurance regulation formally began with the passing of Life Insurance Companies Act and the Provident Fund Act. By 1938, there were 176 insurance companies in India. But a number of frauds during 1920s and 1930s tainted the image of insurance industry in India. In 1938, the first comprehensive legislation regarding insurance was introduced with the passing of Insurance Act of 1938 that provided strict State Control over insurance business. Insurance sector in India grew at a faster pace after independence. In 1956, Government of India brought together 245 Indian and foreign insurers and provident societies under one nationalized monopoly corporation and formed Life Insurance Corporation (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 crore. The (non-life) insurance business/general insurance remained with the private sector till 1972. There were 107 private companies involved in the business of general operations and their operations were restricted to organized trade and industry in large cities. The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from January 1, 1973. The 107 private insurance companies were amalgamated and grouped into four companies: National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC). In 1993, the first step towards insurance sector reforms was initiated with the formation of Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra. The committee was formed to evaluate the Indian insurance industry and Insurance sector in India was liberalized in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for
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private players and allowing foreign players to enter the market with some limits on direct foreign ownership. There is a 26 percent equity cap for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent. The opening up of the insurance sector has led to rapid growth of the sector. The potential for growth of insurance industry in India is immense as nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be well below international standards recommend its future direction with the objective of complementing the reforms initiated in the financial sector. Insurance industry in India is governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. The origin of life insurance in India can be traced back to 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. In 1912, insurance regulation formally began with the passing of Life Insurance Companies Act and the Provident Fund Act. The insurance sector in India has come a full circle from being an open competitive market to nationalisation and back to a liberalised market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

INSURANCE MARKET IN INDIA


The insurance market cannot be understood except in context on its history on liberalization and nationalization. A reform in Indians non life insurance market which was nationalized in 1972 has progressed substantially and has received an additional boost with the de-tariffing of the Insurance Business. Non life premium has increased 106% since initial liberalization in 2000 and has been constantly outperforming the global growth. Fig. 1. Showing the growth of the non life insurance business over last five years.
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200

150 World 100 India

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0 1 2 3 4 5 6

There are 3 types of players in the insurance market. Public sector undertakings (PSUs) The HO of four public sector insurers is located in the 4 major cities. The four major PSUs currently operating in the Indian general insurance market: National (Calcutta); Oriental (Delhi); United India (Madras); New India (Bombay). In practice, the PSUs tend to focus their efforts on maintaining a strong status and market position within their local region rather than competing with one another. New India is the most successful of the PSUs.

The PSUs have the following common challenges: Sales focus Poor systems Poor claims paying record Staff leakage Exposure to motor business

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

PSU
2 5 10 4 3 2 27

Motor OD Fire PA & Health Motor TP Miscellaneous Engineering Marine Cargo Maine Hull

14 19 14

Liability Aviation

Private companiesJV Fast growing private companies are growing fast are generally run by experienced Indian managers and are strongly supported by foreign expertise. They are steadily building their customer base and, over time, they are expected to acquire an ever larger share of the market their share currently stands at 34.6%. Interviews in both London and India revealed that the new private insurers collectively exhibited a number of strengths, these included: Small and flexible Good staff, system, processes and data

Greater focus on underwriting Strong claims paying reputation Product focus

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

Private Companies
1 4 7 8 5 16 23 3 3 30

Motor OD Fire PA & Health Motor TP Miscellaneous Engineering Marine Cargo Maine Hull Liability Aviation

Foreign players Foreign insurers participation in the Indian non-life insurance businesses currently restricted to a 26% stake in a joint-venture vehicle with an Indian company. Even with this relatively low level of foreign participation, many of the worlds largest insurers (such as AIG, Allianz and RSA) have already entered the market. Despite their disadvantaged position, foreign capital providers have been able to influence strategy, product focus and speed of growth. As a result of this influence, there are growing differences between private companies.

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

25 20 15 10 5 0 19.4 15 14.6 13.9

12.3 6.9 4.8 3.3 3 2.3 1.2 0.8 2.4 0.1 2.4

Fig. 5. Showing the product category wise breakup between public sector and private sector.
35 30 25 20 15 10 5 0 30 27 23 19 16 14 14 10 5 8 5 7 44 33 23 21 PSU Private

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The future of the insurance can be considered very bright for some while dull for others. But in distant future definitely it is going to last long. The industry will keep growing as insurance has become the essential part of ones attitude of decreasing the dispersing risk and giving away the burden to insurance company. Fig.6. Showing the class wise projection for 2010.

classwise projection for 2010


30 25 20 15 10 5 0 2006 2010

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DISTRIBUTION CHANNELS
Traditionally, insurance products were promoted and sold principally through agency systems only. The reliance of insurance industry was totally on the agents. Moreover with the monopoly of public sector insurance companies there was very slow growth in the insurance sector because of lack of competition. The need for innovative distribution channels was not felt because all the companies relied only upon the agents and aggressive marketing of the products was also not done. But with new developments in consumers behaviours, evolution of technology and deregulation, opening up of the insurance sector and increased competition has speeded up the development of new distribution channels rapidly in recent years. The various distribution channels are: Career Agents: Career Agents are full-time commissioned sales personnel holding an agency contract. They are generally considered to be independent contractors. Consequently an insurance company can exercise control only over the activities of the agent which are specified in the contract. Special Advisers: Special Advisers are highly trained employees usually belonging to the insurance partner, who distribute insurance products to the bank's corporate clients. The Clients mostly include affluent population who require personalised and high quality service. Usually Special advisors are paid on a salary basis and they receive incentive compensation based on their sales. Salaried Agents: These are similar to career agents, the only difference is in terms of their remuneration is that they are paid on a salary basis and career agents receive incentive compensation based on their sales. Bank Employees / Platform Banking: Platform Bankers are bank employees who spot the leads in the banks and gently suggest the customer to walk over and speak with appropriate representative within the bank. The platform banker may be a teller or a personal loan assistant. A restriction on the effectiveness of bank employees in

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generating insurance business is that they have a limited target market, i.e. those customers who actually visit the branch during the opening hours. Corporate Agencies and Brokerage Firms: There are a number of banks who cooperate with independent agencies or brokerage firms while some other banks have found corporate agencies. The advantage of such arrangements is the availability of specialists needed for complex insurance matters and through these arrangements the customers get good quality of services. Direct Response: In this channel no salesperson visits the customer to induce a sale and no face-to-face contact between consumer and seller occurs. The consumer purchases products directly from the bancassurer by responding to the company's advertisement, mailing or telephone offers. This channel can be used for simple packaged products which can be easily understood by the consumer without explanation. Internet: Internet banking is already securely established as an effective and profitable basis for conducting banking operations. Banc assurers can feel confident that Internet banking will also prove an efficient vehicle for cross selling of insurance savings and protection products. Functions requiring user input (check ordering, what-if calculations, and credit and account applications) should be immediately added with links to the insurer. Such an arrangement can also provide a vehicle for insurance sales, service and leads. E-Brokerage: Banks can open or acquire an e-Brokerage arm and sell insurance products from multiple insurers. The changed legislative climate across the world should help migration of Bancassurance in this direction. The advantage of this medium is scale of operation, strong brands, easy distribution and excellent synergy with the internet capabilities. Outside Lead Generating Techniques: One last method for developing Bancassurance eyes involves "outside" lead generating techniques, such as seminars, direct mail and statement inserts. Great opportunities await Bancassurance partners today and, in most cases, success or failure depends on precisely how the process is developed and managed inside each financial institution.
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ABOUT BAGIC Parent companies: Bajaj Auto and Allianz SE Bajaj Auto
The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.

The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest twoand three- wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965. He is one of India's most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.

Forth largest 2 & 3 wheeler manufacturer in the world 21 million+ vehicles on the roads across the globe. Bajaj Auto finance one of the largest auto finance cos. in India The turnover of the company stands at Rs. 46.16 billion.

Allianz SE
The Allianz Group is one of the leading integrated financial services providers worldwide. On the insurance side, Allianz is the market leader in the German market and has a strong international presence

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

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Allianz SE shares are traded on all German stock exchanges as well as in London, Zurich, Paris and Milan. 11th largest corporation in the world Allianz became the first German financial services provider to have its shares listed on the New York Stock Exchange, where they have been trading in the form of American Depositary Receipts (ADR). Allianz is also one of the world's largest asset managers, with third-party assets of 703 billion euros under management at year end 2008. The first company in the Dow Jones EURO STOXX 50 Index to adopt the legal form of a Societas Europaea, which is a new European legal form for stock corporations. 50% of global business from Life Insurance, close to 60 million lives insured globally Established in 1890, 110 yrs of Insurance expertise More than 70 countries, 155,000 employees worldwide and 75 million customers In fiscal 2008 the Allianz Group achieved total revenues of over 92.5 billion euros Insurance to almost half of the Fortune 500 companies.

BAJAJ ALLIANZ
Bajaj Allianz Life Insurance Company Limited Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates- , Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world and Allianz AG, one of the world's largest insurance companies.

Bajaj Allianz Life Insurance Is the fastest growing private life insurance company in India. Currently has over 3,00,000 satisfied customers

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We have customer care centers in 155 cities with 28000 Insurance Consultant providing the finest customer service. One of India's leading private life insurance companies

Bajaj Allianz General Insurance Company (BAGIC)


Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE. Bajaj Allianz today has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune.

As on 31st March 2008, Bajaj Allianz General Insurance maintained its premier position in the industry by garnering a premium income of Rs. 2578 crore achieving a growth of 43 % over the last year. Bajaj Allianz has made a profit before taxes of Rs. 167 crore became the first company to cross the Rs.100 crores mark in profit after tax by generating Rs. 105 crores.

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In the first quarter of 2008-09, the company garnered a gross premium of Rs.733.53 crores against Rs.573.73 core last year for the same period registering a growth of 28%.

Bajaj Allianz has received "iAAA rating, from ICRA Limited, an associate of Moody's Investors Services, for Claims Paying Ability.This rating indicates highest claims paying ability and a fundamentally strong position.

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THE CONCEPT OF BANCASSURANCE


Bancassurance is a system of distribution of insurance products through branches or other distribution channels of banks. Its a recent example of diversification which originated in france and is catching up popularity in the whole of asia as well. Cross selling the need of the day and companies strive to diversify their product portfolio. Banks too are not behind in accepting this strategy. They moved from the classical model of deposit taking and credit disbursal and have begun to offer a wide range of products and services like securities, mutual funds, insurance etc. this phenomenon of universal banking leverage upon the existing network of the bank. Modus operandi of Bancassurance There are various models by which Bancassurance operate internationally. Bancassurance can operate by means of marketing tie ups or can also operate through joint ventures or strategic alliances. I. Structural Classification a) Referral Model Banks intending not to take risk could adopt referral model wherein they merely part with their client data base for business lead of commission. The actual transaction with the prospective client in referral model is done by the staff of the insurance company either at the premises of the ban0k or elsewhere. Referral model is nothing but a simple arrangement, wherein the bank, while controlling access to the clients data base, parts with only the business leads to the agents/ sales staff of insurance company for a referral fee or commission for every business lead that was passed on. In fact a number of banks in India have already resorted to this strategy to begin with. This model would be suitable for almost all types of banks including the RRBs /cooperative banks and even cooperative societies both in rural and urban. There is greater scope in the medium term for this model. For, banks to begin with can resort to this model and then move on to the other models.

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b) Corporate Agency The other form of non-risk participatory distribution channel is that of Corporate Agency, wherein the bank staff as an institution acts as corporate agent for the insurance product for a fee/commission. This seems to be more viable and appropriate for most of the mid-sized banks in India as also the rate of commission would be relatively higher than the referral arrangement. This, however, is prone to reputational risk of the marketing bank. There are also practical difficulties in the form of professional knowledge about the insurance products. This could, however, be overcome by intensive training to chosen staff, packaged with proper incentives in the banks coupled with selling of simple insurance products in the initial stage. This model is best suited for majority of banks including some major urban cooperative banks because neither there is sharing of risk nor does it require huge investment in the form of infrastructure and yet could be a good source of income. This model of bancassurance worked well in the US, because consumers generally prefer to purchase policies through broker banks that offer a wide range of products from competing insurers.

c) Insurance as Fully Integrated Financial Service/ Joint ventures Apart from the above two, the fully integrated financial service involves much more comprehensive and intricate relationship between insurer and bank, where the bank functions as fully universal in its operation and selling of insurance products is just one more function within. This includes banks having wholly owned insurance subsidiaries with or without foreign participation. The great advantage of this strategy being that the bank could make use of its full potential to reap the benefit of synergy and therefore the economies of scope. This may be suitable to relatively larger banks with sound financials and has better infrastructure. As per the extant regulation of insurance sector the foreign insurance company could enter the Indian insurance market only in the form of joint venture, therefore, this type of Bancassurance seems to have emerged out of necessity in India to an extent. There is
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great scope for further growth both in life and non-life insurance segments as GOI is reported have been actively considering to increase the FDIs participation up to 49 per cent.

II. Product based classification (a) Stand-alone Insurance Products In this case bancassurance involves marketing of the insurance products through either referral arrangement or corporate agency without mixing the insurance products with any of the banks own products/ services. Insurance is sold as one more item in the menu of products offered to the banks customer, however, the products of banks and insurance will have their respective brands too. (b) Blend of Insurance with Bank Products This method aims at blending of insurance products as a value addition while promoting the banks own products. Thus, banks could sell the insurance products without any additional efforts. In most times, giving insurance cover at a nominal premium/ fee or sometimes without explicit premium does act as an added attraction to sell the banks own products, e.g., credit card, housing loans, education loans, etc. Many banks in India, in recent years, has been aggressively marketing credit and debit card business, whereas the cardholders get the insurance cover for a nominal fee or (implicitly included in the annual fee) free from explicit charges/ premium. Similarly the home loans / vehicle loans, etc., have also been packaged with the insurance cover as an additional incentive.

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III. Bank Referrals There is also another method called 'Bank Referral'. Here the banks do not issue the policies; they only give the database to the insurance companies. The companies issue the policies and pay the commission to them. That is called referral basis. In this method also there is a win-win situation every where as the banks get commission, the insurance companies get databases of the customers and the customers get the benefits.

Possible integration model

Activity

Staff Banks staff

System and Banks system

Facility Banks call center

Sales

insurers staff Insurers staff Insurers system

Policy administration

Shared call center

Claims

Insurers staff

Insurers system

Shared call center

Key success factors Bancassurance is fully embedded in the strategy of the Bank Think Group Integrated Distributor - Manufacturer Bancassurance model Customer Centric

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Integrated Marketing Suitable Products & Natural Fit Maximize sales-capacity Suitable Commission/Remuneration structures Integrated Performance Management at the Point of Sale Suitable end-to-end processes & top quality service delivery Cost Leadership Best Value-For-Money Product & Service Packages

Fig. 7. Bancassurance product philosophy:

Bank insurance Environment

unique client database

product in harmony with bank activities (daily bank , lending, saving and interest)

integrated IT systems with the bank

product focused on client needs

simple product with clear benefits

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Benefits of Bancassurance To the bank The period of 1990 witnessed stiff competitions between the financial institution and profit margins for the banks began to shrink. A need for a new business was felt and Bancassurance could be viewed as a rescue. Bancassurance came as a way of creating new revenue flow and diversifying business activities. Bancassurance helps a bank become a sort of supermarket a one stop shop for financial services where all financial and insurance needs of a customer could be addressed. Broadening the product range makes bank more attractive and thus increases customer satisfaction and loyalty. Distribution costs in such a model are marginal as the existing network and present employees are utilized to carry out the activities. The benefits of Bancassurance to the bank could be summed up as additional stable stream of fee based income leveraging the customer base Full utilization of existing network and employees cross selling extended financial services offering customer centric and life cycle management higher revenues without any additional investment

To the insurance company Through this distribution method the insurance company significantly extends its customer base by getting access to the banks client base. They can now reach the customer which was otherwise difficult to approach. Diversification reduces the risk of too much dependence on a single distribution channel. Insurance company could leverage on the trustworthy image of the bank. The inherent cost of distribution is too low as compared to the conventional sales representative method. A new insurance company could easily establish itself in the market with the help of a locally established bank.

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Benefits of Bancassurance to Insurance Company are: customer base of the bank is readily available ready revenue of asset business cost of distribution is fair widening the product range consumer confidence in banks economies of scale Rural penetration

To the customer Customer enjoys great access to all financial services from a bank that offers both banking as well as insurance products. Since the cost of distribution is low so the customer ultimately gets the product at a cheaper price. Payment of premium is also simplified as premium is collected directly from the bank account. Following are the benefits to the customer: All insurance solutions under one roof Free Professional advice Solution based on buyers need E-insurance enablers Complementary to other bank products Customers get the benefit of professional & unbiased advice Customer gets the facility of a financial hyper mart.

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FUTURE SCOPE FOR BANCASSURANCE


By now, it has become clear that as economy grows it not only demands stronger and vibrant financial sector but also necessitates providing with more sophisticated and variety of financial and banking products and services. The outlook for Bancassurance remains positive. While development in individual markets will continue to depend heavily on each countrys regulatory and business environment, Bancassurers could profit from the tendency of governments to privatize health care and pension liabilities. India has already more than 200 million middle class population coupled with vast banking network with largest depositors base, there is greater scope for use of Bancassurance. In emerging markets, new entrants have successfully employed Bancassurance to compete with incumbent companies. Given the current relatively low Bancassurance penetration in emerging markets, Bancassurance will likely see further significant development in the coming years. In India the Bancassurance model is still in its nascent stages, but the tremendous growth and acceptability in the last three years reflects green pasture in future. The deregulation of the insurance sector in India has resulted in a phase where innovative distribution channels are being explored. In this phase, Bancassurance has simply outshined other alternate channels of distribution with a share of almost 25-30% of the premium income amongst the private players. To be fruitful, it is vital for Bancassurance to ensure that banks remain fully committed to promoting and distributing insurance products. This commitment has to come from both senior management in terms of strategic inputs and the operations staff who would provide the front-end for these products. In India, the signs of initial success are already there despite the fact that it is a completely new phenomenon. There is no doubt that banks are set to become a significant distributor of insurance related products and services in the years to come.

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THE HEALTH INSURANCE SECTOR:


Health insurance is a kind of agreement made between a person and an insurance company. The person, or the insured, must pay a regular fee (called a premium) to the insurance company. In return, the insurance company will pay a all or some medical expenses needed when the insured becomes injured, ill, or otherwise hospitalized.

Health insurance is critical, especially to those living in areas where the costs of hospitalization are high. Most developed nations offer government subsidized medical care, which makes it less critical to have health insurance.

In the US, however, medical care is extremely expensive, and is not paid for by the government. Therefore, it is wise for all Americans living in the US to have good health insurance policies. This will protect them from the possibility of massive financial burden which could result in the garnishing of wages and even bankruptcy. Health insurance can be bought on an individual basis or on a group basis. Health insurance bought on a group structure usually is through an employer, as many employers provide health insurance coverage to their employees. Indian health insurance sector have immense potential and scope for growth and revenue generation. The healthcare industry is expected to increase from its current size to 29.6 billion by 2012. By 2012 the revenue from the healthcare sector is expected to reach 6.5-7.2 % of the GDP.

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Need for health insurance


The country as for now is witnessing change in demographic profile accompanied with lifestyle diseases and increased medical expenses. This increases the potential for the health insurance market. Another reason is the increased awareness among the people to mitigate financial risk caused in case of major illness. Also the income levels are rising and hence people become more inclined to spend on insurance as compared to earlier times. Out of the total medical expenditure 20% is govt. spend, 15 % employer spend, 1% private/social/community insurance and the rest 64 % are the direct spending from the pockets of the customer. This is the portion which acts as the business potential for the insurance companies.

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THE POWER OF RETAIL THE POTENTIAL FROM UNION BANK OF INDIA


The power of retail is immense. It could earn bank heavy revenue without investing a single penny from its pocket to get the business. From a banks perspective it is a very profitable preposition to get retail policies done as compared to loan book. This is a totally risk free business. As compared to loan book business or the core business of the bank the commission received against the retail insurance business goes directly to the profit and loss account of the banks financial statement as profit. To earn this much amount from the core business activities of the bank, the bank have to employ people and bear the risk of default. While retail gives a direct income without incurring any expense. Across India there are 1451 branches of union bank of India. These bank branches could be divided into categories on the basis of scale and categories on the basis of location. On the basis of scale it could range from scale I to scale V, while on the basis of location it could be divided as rural, semi urban, urban and metro. To find out the potential for business following assumptions are taken to draft the given chart and find out the magnitude of sales:

CONSERVATIVE APPROACH The bank branches across India have been divided scale wise and the location wise further on. The ticket size is the value of the policy. The ticket size varies from Rs. 1000 to Rs. 3500. Number of policies expected to be sold per branch ranges from 2 to 5 depending on the location. Renewal rate is taken to be 80%.

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Commission to bank is 25 %

See Table 1 Projections: I year: Total insurance business of Rs. 110580000 cr. could fetch revenue of Rs. 27645000 II year: Total insurance business of Rs. 199044000 cr. could fetch revenue of Rs. 49761000 cr. to the bank III year: Total insurance business of Rs. 269815200 cr. could fetch revenue of Rs. 67453800 cr. to the bank. Fig. 8. Showing the projections for Conservative Approach
300000000 250000000 200000000 150000000 100000000 50000000 0 I II III 49761000 27645000 110580000 67453800 199044000 Insurance Revenue Banks income 269815200

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AGRESSIVE APPROACH While considering the aggressive approach we will assume that bank branch employees one dedicated employee per branch who will work for the insurance business of the bank. The ticket size is the value of the policy. The ticket size varies from Rs. 1000 to Rs. 4000. Number of policies expected to be sold per branch ranges from 3to 10 depending on the location. Renewal rate is taken to be 90%. Commission to bank is 25 %

See Table 2 Projections: I year: Total insurance business of Rs. 214980000 cr. could fetch revenue of Rs. cr. 53745000 II year: Total insurance business of Rs. 408462000 cr. could fetch revenue of Rs. 102115500 cr. to the bank III year: Total insurance business of Rs. 582595800 cr. could fetch revenue of Rs. 145648950 cr. to the bank.

31

Fig. 9. Showing the projections for Aggressive approach


700000000 600000000 500000000 400000000 300000000 200000000 100000000 0 I II III 53745000 214980000 102115500 145648950 408462000 Insurance Revenue Banks Income 582595800

Fig. 10. Showing the comparison of banks income between conservative and aggressive approach
160000000 140000000 120000000 100000000 80000000 60000000 40000000 20000000 0 I II III 53745000 49761000 27645000 67453800 Conservative approach Aggressive approach 102115500 145648950

32

COMPARATIVE ANALYSIS OF FAMILY FLOATER POLICIES


Major players in the general insurance sector apart from Bajaj Allianz are ICICI Lombard, National Insurance, Reliance etc. Premium rate plays a very important role in determining the policy that a person will go for. A comparative analysis of the premium chart will reveal the reasons of choosing of competitors insurance policies. Here comparison have been done with ICICI Lombards family floater policy and national insurances family floater policy

Comparison:

Feature

Bajajs USSY

ICICI

National Insurance

Coverage amount

Rs 1 lac to Rs 5 Rs 2 lac to Rs. 4 Rs 2 lac to Rs 5 lac (in multiples lac (in multiples lac (in multiples of 1 lac) of 1 lac) of 50000) Covered from 4th continuous claim free year 5 yrs to 60 yrs 3 month to 65 yrs

Waiting period for Covered from 5th pre-existing diseases Age continuous year of taking the policy 3 months to 55 yrs

33

Number Empanelled hospitals

of 1400

3500

Hospitals registered as

hospital or nursing home local with the

authorities

and are under the supervision of a registered qualified and medical

practitioner.

Co payment Sublimit payment Health check up

10 % in No sublimit

Nil Only for cataract Sublimit are there

compulsory

No need up to the age of 55 yrs

Pre hospitalization 60 days coverage Post hospitalization 90 days coverage Time limit for 1 year 2 years

15 days

30 days

1 year

which policy could be taken

34

Findings: The premium rate is too competitive. Bajajs premium is slightly above that of national insurances but much more than that of ICICI Lombard ICICI offers family package for 2 years which releases a person from the burden of renewing the policy very next year and ensures business for two years for the company. National insurance have the advantage of getting insurance of employees of public sector firms like KMC, etc. Although pre hospitalization and post hospitalization coverage days are more for Bajaj but the number of hospitals which are empanelled with national insurance is much more than Bajajs. Bajaj has got a very diverse product range. Bajajs products as rich in features and there are various such products which gives benefit of multiple products under one policy at a very reasonable price.

35

METHODOLOGY
The methodology adopted for conducting the project is basically Face to face interaction with the customer. Informal interviews with the branch managers. Interacting with in-house agents and corporate agents. A small survey was conducted to ascertain the customer profile of the bank and to know their preferences. It also helped to find out the loopholes in the marketing strategy of the company. This activity was done on some of the major branches of UBI.

36

RESULTS OF THE SURVEY


Broad street Park street Lal bazaar New market Deshopriya park Location Off the main Main road road Space Spacious Very spacious Average stay/client Client footfall Heavy Heavy Average Very heavy Less 10 mins. 15 mins. 15 mins. 15 mins. 10 mins. Inside market Congested Congested Spacious the Main road Main road

Bajaj Allianz help desk

Available

Available

No

proper No

proper No

proper

arrangement

arrangement

arrangement

Posters and Reasonable banners

Reasonable

Very few

Very few

Very few

Other observations were: No proper attention is paid on creating awareness amongst the customers by display of posters and banners At some branches the footfall is heavy but a company representative is not present. Not much help is done by the bank employees

37

PROBLEMS OR CHALLENGES IN PUBLIC SECTOR BANKS


The problems being faced by the company in selling retail policies through public sector banks Problem to reach the high end customer There are several branches where there is more number of current account then savings account. So the walk in customers at these branches mainly consists of the subordinates of those account holders. It becomes really difficult to reach the account holders in such case.

Lesser awareness regarding general insurance The tendency of inclination towards the life insurance policies is very clearly visible in the attitude of people. Many at times fail to understand the importance of having a general insurance policy and see it at wastage of money. Awareness has to be increased regarding the importance of general insurance. People should be convinced to take general insurance as a supplement to life insurance. It could also be made more attractive by increasing the incentives attached. Incentives could be not only in the form of monetary benefit but otherwise as well.

Competitors eating out share The competition in the market is intense. Various companies are there with competitive products. The company should have a unique selling preposition with it to attract the customer in this competitive scenario. The company should try to win over the customer not on the basis of price war but actually on the basis of some add on benefits in the policy which should have an edge over the competitors products.

38

There should be proper focus on the market segmentation Proper attention should be paid to smartly do the market segmentation to find out the potential market in it. Differential strategies should be adopted for different segments. There are three categories of customer segments namely low income segment, middle income segment and high income segment. The main focus should be on the middle income segment owing to its capacity to pay and risk aversion attitude. High income group have high level of awareness as they have access to large amount of data still it could serve as a big potential on the basis of the USP of the company.

Customers resistance to bear the medical examination charges for mediclaim policies. Most of the medical policies require an individual to have a medical checkup done. Although this is of utmost for the business, but if customers are avoiding the product due to this then the problem needs to be addressed Company could offer medical checkup with the empanelled hospitals at concessional rates. This will also ensure fair idea of the customers actual health and help the underwriters to decide the coverage amount in a better way.

Challenge of culture and speed Bank employees are traditionally low on motivation. Lack of sales culture itself is bigger roadblock than the lack of sales skills in the employees. Banks are generally used to only product packaged selling and hence selling insurance products do not seem to fit naturally in their system.

The challenge of timely resource deployment by the Bank Human Resource Management has experienced some difficulty due to such alliances in financial industry. Poaching for employees, increased work-load, additional training, maintaining the motivation level are some issues that has

39

cropped up quite occasionally. So, before entering into a Bancassurance alliance, just like any merger, cultural due diligence should be done and human resource issues should be adequately prioritized.

The challenge of technology and service synergies The most common obstacles to success of Bancassurance are poor manpower management, lack of a sales culture within the bank, no involvement by the branch manager, insufficient product promotions, failure to integrate marketing plans, marginal database expertise, poor sales channel linkages, inadequate incentives, resistance to change, negative attitudes toward insurance and unwieldy marketing strategy.

Resistance to change Success of a Bancassurance venture requires change in approach, thinking and work culture on the part of everybody involved. The work force at every level are so well entrenched in their classical way of working that there is a definite threat of resistance to any change that Bancassurance may set in. Any relocation to a new company or subsidiary or change from one work to a different kind of work will not be easily acceptable by the employees.

40

RECOMMENDATIONS:
The employees of the bank should be incentivized properly and motivated to recommend the high end customers to take policies from us. Awareness has to be increased regarding the importance of general insurance. People should be convinced to take general insurance as a supplement to life insurance. It could also be made more attractive by increasing the incentives attached. Incentives could be not only in the form of monetary benefit but otherwise as well. The company should have a unique selling preposition with it to attract the customer in this competitive scenario. The company should try to win over the customer not on the basis of price war but actually on the basis of some add on benefits in the policy which should have an edge over the competitors products. There are three categories of customer segments namely low income segment, middle income segment and high income segment. The main focus should be on the middle income segment owing to its capacity to pay and risk aversion attitude. High income group have high level of awareness as they have access to large amount of data still it could serve as a big potential on the basis of the USP of the company. Company could offer medical checkup with the empanelled hospitals at concessional rates. This will also ensure fair idea of the customers actual health and help the underwriters to decide the coverage amount in a better way. There should be a proper well integrated IT support from the bank which could provide the information of the current policies held by its account holders and the renewal dates of the same. Proper focus should be there on the renewals of the policy. Renewal should be considered as important as a fresh policy. Online issuance of policy could be introduced for all the policies

41

The employees of the banks who are selling insurance products must be given proper training so that they can answer to any queries of the customers and can provide them products according to their needs.

A formal and standard agreement between these banks and the insurance companies should be taken up and drafted by a national regulatory body. These agreements must have necessary clauses of revenue sharing. In case of possible conflicts, the bank management and the management of the insurance company should be able to resolve conflicts arising in future.

42

LIMITATIONS OF STUDY
Due to the restriction of time I had to limit my study to UBI only and could not extend it to other public sector tie ups. Some problem was also faced while interacting with less educated customer as language was a barrier. Moreover many people had an attitude to avoid insurance agents so were reluctant to talk let alone buy a policy.

43

BIBLIOGRAPHY

www.wikipedia.com

www.bajajallianz.co.in www.thehindubusinessline.com Newspapers The times of India The Hindu Economic Times

Magazines-

1. Business Today 2. Insurance World

Company Broachers

44

TABLES
Table 1 CONSERVATIVE APPROACH

Particulars No. of policies per Number of Branches 74 16 35 8 Scale I Location Rural SU Urban Metro Ticket Size 1000 1000 2000 3000 branch per month 2 2 4 4 No. of policy per annum 24 24 48 48 Annual Target per branch 24000 24000 96000 144000

First year

Second year

Third year

No. of policies 1776 384 1680 384

Potential for UBOI 1776000 384000 3360000 1152000

No. of policies 3197 691 3024 691 Amount 3196800 691200 6048000 2073600

No. of policies 4333 937 4099 937 Amount 4333440 936960 8198400 2810880

471 94 149 59

II

Rural SU Urban Metro

1000 1000 2000 3000

2 4 5 5

24 48 60 60

24000 48000 120000 180000

11304 4512 8940 3540

11304000 4512000 17880000 10620000

20347 8122 16092 6372

20347200 8121600 32184000 19116000

27582 11009 21814 8638

27581760 11009280 43627200 25912800

107 110 132 120

III

Rural SU Urban Metro

1000 1000 2000 3000

2 5 5 5

24 60 60 60

24000 60000 120000 180000

2568 6600 7920 7200

2568000 6600000 15840000 21600000

4622 11880 14256 12960

4622400 11880000 28512000 38880000

6266 16104 19325 17568

6265920 16104000 38649600 52704000

4 6 22 26

IV

Rural SU Urban Metro

1000 1000 2500 3500

3 5 5 5

36 60 60 60

36000 60000 150000 210000

144 360 1320 1560

144000 360000 3300000 5460000

259 648 2376 2808

259200 648000 5940000 9828000

351 878 3221 3806

351360 878400 8052000 13322400

2 16 1451 Banks share

Urban Metro

3000 3500

5 5

60 60

180000 210000

120 960

360000 3360000 110580000

216 1728

648000 6048000 199044000

293 2342

878400 8198400 269815200

27645000

49761000

67453800

45

Table 2 AGGRESSIVE APPROACH


Particulars No. of policies per Number of Branches 74 16 35 8 Scale I Location Rural SU Urban Metro Ticket Size 1000 1500 2500 3500 branch per month 3 3 5 6 No. policy annually 36 36 60 72 of Annual Target per branch 36000 54000 150000 252000 No. of policies 2664 576 2100 576 Potential for UBOI 2664000 864000 5250000 2016000 Second year No. of policies 5062 1094 3990 1094 Amount 5061600 1641600 9975000 3830400 Third year No. of policies 7219 1561 5691 1561 Amount 7219440 2341440 14227500 5463360 First year Second year Third year

471 94 149 59

II

Rural SU Urban Metro

1000 1500 3000 3500

3 5 6 7

36 60 72 84

36000 90000 216000 294000

16956 5640 10728 4956

16956000 8460000 32184000 17346000

32216 10716 20383 9416

32216400 16074000 61149600 32957400

45951 15284 29073 13431

45950760 22926600 87218640 47007660

107 110 132 120

III

Rural SU Urban Metro

1000 1500 3000 3500

4 6 8 9

48 72 96 108

48000 108000 288000 378000

5136 7920 12672 12960

5136000 11880000 38016000 45360000

9758 15048 24077 24624

9758400 22572000 72230400 86184000

13919 21463 34341 35122

13918560 32194800 103023360 122925600

4 6 22 26

IV

Rural SU Urban Metro

1000 1000 3500 4000

4 6 8 10

48 72 96 120

48000 72000 336000 480000

192 432 2112 3120

192000 432000 7392000 12480000

365 821 4013 5928

364800 820800 14044800 23712000

520 1171 5724 8455

520320 1170720 20032320 33820800

2 16 1451 Bank's share

Urban Metro

3500 4000

8 10

96 120

336000 480000

192 1920

672000 7680000 214980000

365 3648

1276800 14592000 408462000

520 5203

1821120 20812800 582595800

53745000

102115500

145648950

46

PREMIUM TABLE FOR BAJAJS USSY PACKAGE


scheme details 3m-25yrs Individual two individuals option 1 2 adults+1 child 2 adults+2 child 2 adults+3 child Individual two individuals option 2 2 adults+1 child 2 adults+2 child 2 adults+3 child Individual two individuals option 3 2 adults+1 child 2 adults+2 child 2 adults+3 child Individual two individuals option 4 2 adults+1 child 2 adults+2 child 2 adults+3 child Individual two individuals option 5 2 adults+1 child 2 adults+2 child 2 adults+3 child 1448 1883 2810 3736 4670 2705 3517 5248 6977 8722 3832 4983 7431 8679 10848 5024 6532 9739 10800 13500 6088 7915 11801 15687 19609 age band 26-40yrs 1672 2336 3334 4331 5327 3152 4405 6167 8128 9997 4472 6249 8883 10516 12935 5920 8271 11723 13176 16207 7112 9936 14117 18298 22506 41-45yrs 2131 3188 4257 5323 6287 4112 6152 8145 9538 11445 5794 8668 11487 12305 14766 7477 11183 14878 14474 17369 9159 13698 18173 22648 27178 46-55yrs 3176 5069 6207 7344 8446 6351 10138 12262 14384 16542 7959 12735 15740 18636 21431 11853 18916 22854 244793 28512 14454 23206 28936 34666 39866

47

PREMIUM TABLE FOR ICICI LOMBARD


FAMILY FLOATER HEALTH INSURANCE POLICY PREMIUM TABLE (12 months EMI without any extra charges#) Monthly Premium for 1 Year plans in Rupees Plan Details Age of senior most 2 3 2 La c 2 3 2 3 Plan A Plan 2 Adults B Plan C Plan D Plan E Plan F

Individua l

2 Adults & 1 Kids 2 Adults & 2 Kids

1 Adult & 1 1 Adult & 2 Kid Kids

3 Lac

4 Lac

2 Lac

3 Lac

4 Lac

2 Lac

family Lac Lac membe r 5 - 18 yrs. 19 - 35 yrs. 36 - 45 yrs. 46 - 55 yrs. 56 - 60 yrs.

3Lac

4 Lac

La La c c

4 Lac

La La c c

4 Lac

163 188 33 0 41 4 78 6

220 254

381

571

428

493

742

526

606

912

28 33 9 3

502

36 41 1 5

626

276 307

460

642 1,22 3

512

572

812 1,39 3

610

685

983

33 37 5 7

540

40 45 3 5

662

491 546

874

884

986

982

1,09 1,56 54 60 9 4 0 4

860

58 66 9 2

952

669

96 1,07 1,49 1,06 1,18 1,66 1,15 1,29 1,83 63 71 1,01 67 76 1,09 3 0 8 1 3 8 9 5 9 7 2 1 7 0 0

FAMILY FLOATER HEALTH INSURANCE POLICY PREMIUM TABLE (12 months EMI without any extra charges#) Monthly Premium for 2 Year plans in Rupees Plan Details Plan G Plan 2 Adults 2 3 4 H Plan I Plan J Plan K Plan L

Individu al 3

2 Adults & 1 2 Adults & 2 Kids 2 3 4 Kids 2 3Lac 4

1 Adult & 1 Kid 2 3 4

1 Adult & 2 Kids 2 3 4

Age of 2

48

senior La Lac Lac Lac Lac Lac Lac Lac Lac most family memb er 5 - 18 29 yrs. 3 338 1,02 8 1,15 5 1,33 5 c

Lac Lac Lac Lac Lac Lac Lac

1,12 7 1,19 1

19 - 35 39 yrs. 7

457 595 685

771 888

947

1,09 1,64 1 1

521 600 903 649 748

36 - 45 49 yrs. 7

552 745 828

921

1,03 1,46 1,09 1,23 1,76 0 2 7 3 9

603 678 973 725 819

46 - 55 93 1,03 1,49 1,66 2,32 1,68 1,87 2,64 1,86 2,08 2,97 1,02 1,14 1,63 1,11 1,25 1,80 yrs. 56 - 60 yrs. 4 7 4 0 4 0 4 7 5 7 1 6 8 4 8 8 9

1,33 1,92 2,14 2,99 2,12 2,36 3,33 2,31 2,59 3,67 1,27 1,42 2,02 1,35 1,52 2,18 8 6 0 6 2 5 7 7 0 8 5 5 3 4 0 0

49

INSURANCE PREMIUM CHART FOR NATIONAL INSURANCE


Up to 35 years Sum Insured (Rs.) 2,00,000 2,50,000 3,00,000 3,50,000 4,00,000 4,50,000 5,00,000 36 to 45 years Sum Insured (Rs.) 2,00,000 2,50,000 3,00,000 3,50,000 4,00,000 4,50,000 5,00,000 46 to 50 years Sum Insured (Rs.) 2,00,000 2,50,000 3,00,000 4290 5200 6108 35% 1502 1820 2138 20% 858 1040 1222 20% 858 1040 1222 7508 9099 10690 6650 8060 9468 Self Spouse 1st Child 2nd Child 2 Adults + 2 Kids 2Adults + 1 Kid 2683 3213 3743 4207 4670 5135 5598 30% 805 964 1123 1262 1401 1541 1679 20% 537 643 749 841 934 1027 1120 20% 537 643 749 841 934 1027 1120 4561 5462 6363 7152 7939 8730 9517 4025 4820 5615 6311 7005 7703 8397 Self Spouse 1st Child 2nd Child 2 Adults + 2 Kids 2Adults + 1 Kid 2469 2956 3444 3870 4297 4723 5151 25% 617 739 861 968 1074 1181 1288 20% 494 591 689 774 859 945 1030 20% 494 591 689 774 859 945 1030 4074 4877 5683 6386 7089 7794 8499 3580 4286 4994 5612 6230 6849 7469 Self Spouse 1st Child 2nd Child 2 Adults + 2 Kids 2Adults + 1 Kid

50

3,50,000 4,00,000 4,50,000 5,00,000 51 to 55 years Sum Insured (Rs.) 2,00,000 2,50,000 3,00,000 3,50,000 4,00,000 4,50,000 5,00,000 56 to 60 years Sum Insured (Rs.) 2,00,000 2,50,000 3,00,000 3,50,000 4,00,000 4,50,000 5,00,000

6942 7776 8610 9444

2430 2722 3013 3305

1388 1555 1722 1889

1388 1555 1722 1889

12149 13608 15067 16526

10760 12053 13345 14637

Self

Spouse

1st Child

2nd Child

2 Adults + 2 Kids

2Adults + 1 Kid

40% 4485 5436 6386 7258 8129 9001 9873 1794 2174 2554 2903 3252 3600 3949

20% 897 1087 1277 1452 1626 1800 1975

20% 897 1087 1277 1452 1626 1800 1975 8073 9785 11495 13064 14633 16202 17771 7176 8698 10218 11612 13007 14402 15796

Self

Spouse

1st Child

2nd Child

2 Adults + 2 Kids

2Adults + 1 Kid

40% 5127 6236 7346 8375 9406 10436 11466 2051 2495 2938 3350 3762 4175 4586

20% 1025 1247 1469 1675 1881 2087 2293

20% 1025 1247 1469 1675 1881 2087 2293 9228 11226 13223 15076 16931 18785 20638 8203 9978 11754 13401 15049 16698 18345

51