Benefit Plan
A Unit-Linked Group Insurance Plan
“IN THIS POLICY, THE INVESTMENT RISK IN
INVESTMENT PORTFOLIO IS BORNE BY THE
POLICYHOLDER”
Bajaj Allianz Group Employee Benefit Plan
“A complete Employee Benefit Solution”
Our Group Employee Benefit Plan allows you to offer benefits to your employees as part of your statutory or employee welfare requirements. Your financial obligations towards such requirements increase with increase in number of employees, their pay scales and tenure of employment.
Our Plan helps you to make provisions to meet your obligations by helping you to set and manage your funds for gratuity and leave encashment benefits of your employees
Presenting…Bajaj Allianz Group Employee Benefit Plan, a non- participating, unit linked, fund based multi – featured plan which gives you – ‘A Complete Employee Benefit Solution’
Key Benefits of Bajaj Allianz Group Employee Benefit Plan
• Gives you an opportunity to set up a separate fund for gratuity and leave encashment benefit • You have a choice of 9 funds to select from to suit your investment needs
• Option to choose the frequency of making the contributions. • Unlimited free switches to manage your investments.
Working of the Plan
• The plan is for Employer-Employee Group only
• A pooled unit fund will be created for your fund as per the scheme rules.
• The contributions paid to fund the scheme shall be invested in the investment fund/s as chosen by you
and units will be allocated to the pooled unit fund at the prevailing unit price of the respective investment
fund/s
• Employee’s benefits shall be paid, as defined in the scheme rules, by cancelling the units from the pooled
unit fund
• Non-zero positive additions, if any, will be added to the pooled unit fund in order to meet the maximum
reduction in yield criteria [as stipulated in Sub-regulation 37 of IRDA (Linked Insurance Products) Regulations, 2013] at the end of each policy year starting from the fifth policy year.
How to set up the Scheme?
Three easy steps to set up a fund under Bajaj Allianz Group Employee Benefit Plan:
• Draft a scheme rules and/or trust deed as applicable for administration of the scheme. Bajaj Allianz
provides you with guidance on the same.
• Apply for securing approval of Commissioner of Income Tax under Part C of the Fourth Schedule of the Income Tax 1961, if applicable.
• Pay the required contribution along with Master Proposal Form, employee data, scheme rules and/or
trust deed as applicable
You can also transfer your self-managed fund(s) or an on-going scheme to us under this plan based on pre-agreed terms and conditions.
Eligibility Criteria under the Plan
Parameters Eligibility Criteria
Minimum & Maximum Age at Entry Minimum: 15 years Maximum: 79 years
Maximum Age at Maturity 80 years or up to retirement age
Pooled Unit Fund Size Minimum: ` 100,000
Maximum: No Limit
Sum Assured Minimum: ` 1,000
Maximum: No Limit
Policy Term One year renewable
Size of the Group at inception Minimum: 10 members* Maximum: No Limit
*In your existing policy, even if the group size falls below 10 due to any exits, it will be continued. Contribution Frequency Yearly, Half-Yearly, Quarterly and Monthly
Benefits under the Plan
Death Benefit: Sum assured plus an amount as decided by you in accordance with the scheme rules shall
be paid by cancellation of unit from the pooled unit fund. The sum assured on death shall be payable by the
company and not from the pooled unit fund.
Other than Death Benefit: Benefit(s) as stated in the scheme rules will be paid by cancellation of units from
the pooled unit fund. The company’s liability for such benefit(s) payable shall be limited to the extent of the
fund value in the pooled unit fund.
Surrender Benefit
You can surrender the policy at any time and the surrender value shall be equal to the pooled unit fund value
Funds and Investment Options
This plan offers you the option of the following funds, and any one or more of the funds may be selected by the policyholder to invest. All the Funds will be managed Bajaj Allianz Life Insurance Company.
Fund Name
Investment Objective Risk Profile
Asset Allocation SFIN
Group Equity Fund
To provide capital appreciation through investment in equity shares.
Very High Equity and equity related securities –60%-100% Debt and debt related securities incl. Fixed deposits – 0% - 40%
Cash/ Money Market Instruments** /Mutual Funds* – 0 % - 40%
ULGF01018/04/11 GREQTYFUND116
Group Bluechip Fund
To provide capital appreciation through investment in equities forming part of NSE IFTY.
High Equity and equity related securities –60%-100% Debt and debt related securities incl. Fixed deposits - 0% - 40%
Cash /Money Market instruments** and Mutual funds* – 0% - 40%
ULGF01118/04/11 GRBLUECHIP116
Group Asset Allocation Fund - II
To realize a level of total income, including current income and capital appreciation, which is consistent with reasonable investment risk
High Equity and equity related securities – 20%-100% Debt and debt related instruments 0% - 80% Money Market instruments**/ Mutual Funds* – 0 % - 80%
ULGF01710/05/13 GRASSALLC2116
Stable Gain Fund
To provide moderate returns keeping risk levels moderate
Moderate Equity and equity related securities – 0%-35% Debt and debt related securities incl. Fixed deposits -65% - 100%
Cash, Money market instruments**, Mutual funds*: 65% - 100%
ULGF00115/09/04 STABLEFUND116
Secure Gain Fund
To provide stable returns with low risk to loss of principle.
Moderate Equity and equity related securities – 0%-20% Debt and debt related securities incl. Fixed deposits - 80% - 100%
Cash, Money market instruments**, Mutual funds*: 80% - 100%
ULGF00215/10/04 SECUREFUND116
Group Debt Fund II
To provide stable returns through investment in various fixed income securities
Low Debt and debt related securities incl. Fixed deposits – 40% - 100%
Cash, Mutual funds* : 40% - 100% Money market instruments**:0% - 60%
ULGF01924/06/13 GRDEBTFU02116 Group Short Term Debt Fund III
To earn moderate returns by investing in medium tenor fixed income securities
Low Debt and debt related securities incl. Fixed deposits - 40% -100%
Cash, Mutual funds* : 40% - 100% Money market instruments** : 0% - 60%
ULGF02024/06/13 GRSHTRDE03116
Fund Name
Investment Objective Risk Profile
Asset Allocation SFIN
Group Liquid Fund II
To provide stable returns through investment in various fixed deposits, money market Instruments and short term debt instruments.
Very Low Debt and Debt related Securities incl. Fixed deposits -0%-60%
Cash, Mutual funds*: 0% - 60%
Money market instruments** - 40% - 100%
ULGF02124/06/13 GRLIQUFU02116
Group Balanced Gain Fund
To provide capital appreciation with
reasonable risk by investing in a suitable mix of debt and equities
High Equity and equity related securities: 0%-60% Debt and debt related instruments – 40%-100% Mutual funds* and Money market instruments**: 40%-100%
ULGF01810/05/13 GRBALCEDGA116
* The maximum investment in mutual funds shall be governed by the relevant IRDA guidelines
Computation of NAV
The NAV of the Fund shall be computed as the market value of investment held by the fund plus value of current assets less value of current liabilities and provisions, if any. This calculation will be done before creation/redemption of units.
Unit Price of each fund is arrived at by dividing the Net Asset Value (NAV) of the fund by the number of units existing in the fund at the valuation date.
All requests received for any unit transaction till the cut-off time of a day shall be processed at the unit price of
the same day. The requests received after the cut-off time of a day shall be processed at the unit price of the next day. The request for unit transaction can be premium payment/surrender / death claim. Currently the
cut-off time is 3.00pm for applicability of unit price for a particular day.
Valuation Date: We aim to value the funds on each day the financial markets are open. However, we may
value the funds less frequently in extreme circumstances, where the values of assets are too uncertain. In
such circumstances, we may defer the valuation of assets for up to 30 days until we feel that certainty as to
the value of assets is resumed. The deferment of valuation of assets will be with prior consultation with the
Flexibility – to manage your investments
Switching Option
o You have the flexibility to manage your investments by switching between funds by your perception of
changing economic conditions. We allow unlimited free switches from one fund to the other.
o The minimum switching amount is ` 5000 or the value of units in the fund to be switched from, whichever
is lower.
o The company shall effect the switch by redeeming units from the fund to be switched from and allocating
new units in the fund bein g switched to at their respective unit price.
Non-Forfeiture
If regular contribution from you in any year is not received by the Company as the fund is certified to be
overfunded/in-surplus by your actuary* as per AS15 (Revised), then, such contracts shall not be treated as
discontinued contracts and the pooled unit fund will participate in the opted fund performance subject to deduction of all applicable charges. As long as there is sufficient balance in the pooled unit fund to cover all the charges due, the company shall renew the policy at every policy anniversary, and, also, subject to the balance in the pooled unit account not being below ` 1,10,000; in which case, the company will intimate you to pay the contribution. If the pooled unit fund falls below `100,000, then, the policy shall be foreclosed
and the surrender value as on date of such foreclosure will be paid immediately to you and the policy will be terminated.
The policy will be renewed yearly as long as there is sufficient balance to cover the charges and provided the
minimum fund value is maintained.
* It is advised that you get a valuation by an independent actuary on a yearly basis to assess the funding of the scheme.
Termination of the scheme
The scheme will automatically terminate on: • Upon foreclosure of the Policy
Charges
Premium Allocation Charge* 2.0% of the contribution subject to maximum of ` 100,000 as and when the contribution is paid.
Surrender Charge Month of Surrender Surrender Charge
(as a percentage of fund value)
1– 35 months Minimum of (0.05% of fund value
or `500,000 )
36 and above Nil
Partial withdrawal charge No partial withdrawal charge is applicable
Fund Management Charge (FMC)
Fund Name Charge p.a.
Group Equity Fund 1.35%
Group BlueChip Fund 1.35%
Group Asset Allocation Fund – II 1.25%
Stable Gain Fund 1.20%
Secure Gain Fund 1.20%
Group Balanced Gain Fund 1.20%
Group Debt Fund II 1.00%
Group Short Term Debt Fund III 0.90%
Group Liquid Fund II 0.70%
This charge would be adjusted in unit price
Switching Charge Unlimited free switches
Miscellaneous Charge The charge of ` 100 would be applicable in case the company is requested to issue a duplicate policy document due to loss of original policy document.
Mortality Charges • Mortality charge would vary according to the attained age of the
members, sum assured and nature of the group and deducted at each monthly anniversary through cancellation of units.
• The mortality charge is guaranteed for the entire term of the
scheme.
• The mortality charge is applied on the sum at risk, which is the
sum assured
Service Tax on charges All charges will be subject to applicable service tax. * This charge would be aligned to the commission payable
Revision of charges
After taking due approval from the Insurance Regulatory and Development Authority, the Company reserves
the right to revise the above-mentioned charges excluding Mortality Charge and Premium Allocation
Charge.
• Fund Management Charge up to a maximum of 1.35% per annum • Miscellaneous charge up to a maximum of `
200/-The Company will give a notice of three months to the policyholders for any changes in charges. 200/-The
policyholders who do not agree with the modified charges shall be allowed to withdraw the units in the plan at the then prevailing unit price and terminate the policy.
Sample Illustration*
Age Maturity
Age
Policy Term
Premium Paying Term
Premium p.a.
Sum As-sured
Fund Value at maturity @ 4%
Fund Value at maturity @ 8%
30 40 10 10 200,000 20,000 2,287,488 2,856,382
30 45 15 15 500,000 50,000 9,237,013 12,907,969
30 50 20 20 1,000,000 100,000 26,566,728 41,836,595 * This is an indicative projection on basis of prescribed growth rate by the regulator. The above projection is based on 100% investment in 'Group debt Fund II' after consideration of service tax and cess.
Loans
No loans are available under the scheme.
Suicide Clause
No Suicide exclusion is applicable. On death of an employee due to suicide, the full death benefit as stated
Nomination
The company will pay the policy proceeds to the member’s nominee through you. The individual employees
can nominate the person(s) to whom the policy proceeds will be payable by you upon their death. A change in nomination may be made by the policyholder at any time during the term of the policy and must be registered
with the Company. Nomination is effected as per section 39 of the Insurance Act, 1938.”
Grace Period
A grace period of 15 days is available for monthly frequency and 30 days for other frequencies.
Tax Benefits
As per applicable Tax Laws
Free Look Period
Within 15 days [thirty (30) days in case this policy is issued under the provisions of IRDA Guidelines on Distance Marketing* of Insurance Products] from the date of receipt of the policy, you have the option to review the terms and conditions and return the policy, if you disagree to any of the terms & conditions, stating the reasons
for your objections. You will be entitled to a refund of the contribution paid, subject only to a deduction of
proportionate mortality charge for the period of cover and the expenses incurred by the company on medical examination of the members and the applicable stamp duty charges.
* Distance Marketing includes every activity of solicitation (including lead generation) and sale of insurance products through modes other than in person.
Risks of Investment in the Units of the Plan
The Policyholder should be aware that the investment in the Units is subject to the following, amongst other risks and agrees that he/she is making the investment in the Units with full knowledge of the same.
1) Unit Linked Life Insurance products are different from the traditional insurance products and are subject
to the risk factors.
2) The premium paid in unit linked life insurance policies are subject to investment risks associated with capital markets and the Unit Price of the units may go up or down based on the performance of the fund and factors influencing the capital market and policyholder is responsible for his/her decisions.
3) Bajaj Allianz Life Insurance is only the name of the insurance company and Bajaj Allianz Group Employee Benefit Plan is only the name of the plan and does not in any way indicate the quality of the policy, its future prospects or returns.
4) Please know the associated risks and the applicable charges from your policy document or by consulting
the Company, your Insurance agent or your Insurance Intermediary.
5) The investments in the Units are subject to market and other risks and there can be no assurance that the
objectives of the fund will be achieved.
6) The past performance of other funds of the company is not necessarily indicative of the future performance
of any of these funds.
Prohibition of Rebate: Section 41 of the Insurance Act, 1938
No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take
out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor
shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may
be allowed in accordance with the published prospectuses or tables of the insurer.
Any person making default in complying with the provision of this section shall be punishable with a fine that
may extend to five hundred rupees.
Fraud & Misrepresentation: Section 45 of the Insurance Act, 1938
No Policy of life insurance effected after the coming into force of this Act shall, after the expiry of two years
from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policy-holder and that the policy holder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose.
Why Bajaj Allianz Life Insurance?
Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE. Both enjoy a reputation of expertise, stability and strength. This joint venture company incorporates global expertise with local experience. The comprehensive, innovative solutions combine the technical expertise and experience of the 123 years old Allianz SE, and in-depth market knowledge and goodwill of “Bajaj brand” in India. Competitive pricing and
quick honest response have earned the company the customer's trust and market leadership in a very short time.
Disclaimer
Bajaj Allianz Group Employee Benefit Plan is fund based Group Unit Linked Insurance Plan (ULIP). Investment in ULIPs is subject to risks associated with the capital markets. The policyholder is solely responsible for his/ her decisions while investing in ULIPs. Bajaj Allianz Life Insurance and Bajaj Allianz Group Employee Benefit
Plan are the names of the company and the product respectively and do not in any way indicate the quality of
the product and its future prospects or returns. All Charges applicable shall be levied. The policy document is the conclusive evidence of contract and provides in details all the conditions and exclusions related to Bajaj
Allianz Group Employee Benefit Plan.
This sales literature should be read in conjunction with the Benefit Illustration. Please ask for the same along
with the quotation
Contact Details
Bajaj Allianz Life Insurance Company Limited, G.E Plaza, Airport Road, Yerawada, Pune - 411006, Reg.No.: 116., Fax: (020) 6602 6789, Visit: www.bajajallianz.com, BALIC CIN : U66010PN2001PLC015959
For any queries please contact:
Mail us : customercare@bajajallianz.co.in Chat: bajajallianzlife.co.in/chat
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT OFFERS IRDA clarifies to public that
-• IRDA or its officials do not involve in activities like sale of any kind of insurance or financial products nor invest premiums. • IRDA does not announce any bonus. Public receiving such phone calls are requested to lodge a police complaint along with details of phone call, number.
For More Information: Kindly consult our “Insurance Consultant” or call us today on the TOLL FREE numbers mentioned above. This brochure should be read in conjunction with the Benefit Illustration and Policy Exclusions. Please ask for the same along with the quotation.
Bajaj Allianz Group Employee Benefit Plan UIN 116L104V02
Bajaj Allianz Group Employee Benefit Plan is a Unit-Linked Insurance Plan
Insurance is the subject matter of solicitation. BJAZ-PB-0416/3-Sep-14
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