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Mount Carmel College


Submitted by

Red Hot Chilli Peppers


Company Policy

Company Summary

Management Summary

Industry Analysis

Marketing Strategy

Human Resource Management

Public Relations and Corporate Image

Corporate Social Responsibility

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Policy for the 28 Year Old Man

1. Company Policy

1.1 Vision

At Aura RHCP insurance, we believe that excellence is a journey not a destination. We

will continue to expand in domestic by satisfying our stake holders as well as customers
with quality insurance services and look forward to growth through synergetic and
mutually beneficial partnership with our stakeholders. Our vision to excel propels us to

1.2 Mission

We aspire to become a world class insurance service provider. We shall provide value
addition to stakeholders and customers through customer satisfaction, effective supply
chain management, cost effectiveness, quality, advancement and service consistency.
Employees first will be our approach; we shall train them to achieve the set goals.

1.3 Objectives

• Year 1 – Making our business secure

• Year 2 – Focus on profitability
• Year 3 – Expansion
• Year 4 – Growth of reserves
• Year 5 – Giving back money to stakeholders

1.4 Values
Aura RHCP insurance is proud to follow the following corporate values:

1. Integrity - Nothing but the highest level of integrity is acceptable.

2. Teamwork - Effective teamwork is the key to company's success.

3. Individual - Individuals are valued, trusted and respected assets of the corporation.

4. Performance - A high level of achievement and contribution from all the employees.

5. Community - A percentage of management’s time and company’s resources are

contributed to community welfare.

1.5 Action plan

1. Train representative/employees.
2. Procure/deliver services in line with customer needs
3. Develop an image in customer mind – that we are low cost and innovative
insurance service provider, with no hidden costs and have great variety of
schemes in all categories
4. Every festive season, give discounts to increase sales.

1.6 Keys To Success

1.6.1 Our Guiding Strategy

Our guiding strategy will

be the Mckinsey 7s
Framework, which
analyzes the hard and the
soft factors of a company.
Description of the 7-S framework of McKinsey

The 7-S framework of McKinsey is a Value Based Management (VBM)

model that describes how one can holistically and effectively organize a
company. Together these factors determine the way in which a corporation

• Shared Value: The interconnecting center of McKinsey's model is:

Shared Values. What does the organization stands for and what it believes in, central beliefs
and attitudes.
• Strategy: Plans for the allocation of firms scarce resources, over time, to
reach identified goals. Environment, competition, customers.
• Structure: The way the organization's units relate to each other:
centralized, functional divisions (top-down); decentralized (the trend in larger organizations);
matrix, network, holding, etc.
• System: The procedures, processes and routines that characterize how
important work is to be done: financial systems; hiring, promotion and performance appraisal
systems; information systems.

• Staff: Numbers and types of personnel within the organization.

• Style: Cultural style of the organization and how key managers behave in
achieving the organization’s goals.

• Skill: Distinctive capabilities of personnel or of the organization as whole,

core competencies.

2.1 Firm Ownership

2. Company Summary
The Aura RHCP insurance is the Joint Venture of Aura Bank and RHCP India
which is a leading name in the financial sector in India. The Aura Bank has
an international pedigree which is unique.Aura Bank will enter the Indian
insurance market through a joint venture with the Indian bank RHCP. Aura
RHCP insurance will have two subsidiaries which will take care of life
insurance and non-life insurance separately. Many of its principal
companies opened for business over a decade ago and they have a history
which is rich in variety and achievement. The Aura Bank was established in

Aura RHCP insurance is one of the fastest growing insurance services organizations in
the world. Aura Bank’s international network comprises over 200 offices in 35 countries
including territories in Europe, the Asia-Pacific region, the Americas, the Middle East
and Africa.

Through an international network linked by advanced technology, including a rapidly

growing e-commerce capability, Aura RHCP insurance provides a comprehensive
range of insurance services.

2.2 Personnel Plan

As the personnel plan shows, we expect to invest in a good team, fairly compensated. We
think the planned staffs are in good proportion to the size of the store and projected

The management of Aura RHCP insurance is working continuously towards making it as

a true learning enterprise. The company works on the model of shared value (Mckinsey
7s), which provides us the required guidance and approach to value our employees. We
want to develop our employees into an Intellectual Capital by offering them opportunities
and good working environment. It is our employees that will take Aura RHCP insurance
vision into reality.

2.3 Location
The company will set up the headquarters in Cannaught Place in the New Delhi as it has
a high knowledge base and a the main economic zone of New Delhi. The government is
marketing it as an industrial hub.

Secondly, other the insurance majors are also targeting this region and want to make it a
hub for insurance industry.

AURA RHCP will expand by increasin its branches in the span of first 3 years by
following a expansion strategy.

2.4 Organizational Structure

Board of

Internal Audit External Audit

Committee Committee
Legal Advisors
Building Unit

VP Retail VP Corporate VP Strategic VP Customer
Service Relations Planning Relations

VP Marketing & VP Technology VP Human

Communication & Logistics Resource & CSR


The initial management team consisted of the following members:

3. Management Summary
 Anshuman Chawla – MD
 Vidhi Bhargava – CEO

 Saurabh Thapar – VP Finance

 Lakshya sethia – VP Strategic planning

 Yash Rai – VP Human Resource

 Manan Modi – VP Marketing

The management philosophy is based on responsibility and mutual respect. People

working at Aura RHCP insurance enjoy an environment that encourages "C4A," which
is: Creativity, Concepts, Competencies, Connections, and Achievement. This C4A
concept is our tool in Value Creation for all stake holders of ABC.

3.1 Aura RHCP Insurance and Aura Bank

Aura insurance grew organically and through

strategic joint ventures. It has entered India
through a joint venture between the multinational
Aura Bank and the Indian RHCP Bank.

Aura Bank continued its long-standing

commitment to the environment, becoming a
founder member of the Climate Group in April and announcing its intention in December
to become the first major bank to go carbon neutral.

Group structure
Aura Bank Holdings is a public limited company incorporated in England. Headquartered
in London, the Aura Bank group operates in following regions: Europe; the rest of Asia
Pacific; including the Middle East and Africa; North America; and South America.
The entities which form the Aura Bank provide a comprehensive range of financial
services to personal, commercial, corporate, institutional and investment, and private
insurance clients. To more easily promote the Group as a whole, Aura Bank was
established as a uniform, international brand name in 1999. In 2002, Aura Bank
launched a campaign to differentiate its brand from those of its competitors by describing
the unique characteristics which distinguish Aura Bank, summarized by the words,

“The global insurance language.”

Aura Bank’s largest and best-known subsidiaries and their primary

areas of operation are:

Subsidiary Primary area of operation

Hong Kong SAR, with an
Aura Bank Limited extensive network throughout
Hang Seng insurance Hong Kong SAR
Subsidiary Primary area of operation
Aura RHCP insurance
United Kingdom
Aura investments France
Aura Household
International, Inc.
Aura Bank USA N.A. New York State in the US
Aura Bank Brasil S.A.-
Banco Múltiplo
Switzerland, Hong Kong SAR,
Aura Private Banking Monaco, Luxembourg, United
Holdings (Suisse) S.A. Kingdom, Singapore and the
Channel Islands.
Grupo Financiero Aura,
S.A. de C.V.

4. Industry Analysis



The insurance sector is growing at a high rate. The leading insurance markets in the
world are:

US 33.8%
Japan 15.1%
U.K. 9.1%
France 6.01%

♦ South Korea is the only Asian country other than Japan to figure on the global
insurance map. It accounts for over 2.13 % of the global insurance market.

Emerging Markets
(Total Premium, figures in $billion)
Taiwan 17.3
China 13.4
India 7.2
Hong Kong 6.1
Israel 5.8
Singapore 5.0



♦ In 2005-2006 , life insurance accounted for 57%(USD 1,849bn) of the total
premium and non-life insurance accounted for 43% (USD 1,395bn)

♦ In 2005-2006 the relative importance of life and non-life varied across regions.
the share of life in total business in Asia was almost twice the same figure for
Latin America

♦ In Asia the share of life insurance was around 76% and in Latin America 41%.


♦ Since 2000 , life and non-life insurance business has followed different paths.
Non-life premiums increased because of better prices . Higher non-life premiums
and underwriting discipline improved underwriting results
♦ The growth rate of the non – life insurance business has ranged between 1% and
17% in the last 5 years while that of life insurance business ranged between -6 %
and +10% for the same period.

Insurance premium in 2005-2006 concentrated more in the developed world:

Europe led with a share of 36.93% followed by North America 36% and Asia 22.61%.
Insurance markets in China, Russia, Brazil, India poised to grow fuelled by rapid
economic expansion, changing demographics, deregulations.

Top ten countries in global life insurance

Top 10 countries in global non life insurance
INSURANCE PENETRATION 2005-2006: The insurance penetration is highes in
North America followed by Europe because the per capita spending on insurance
premium is very high in these countries where a major chunk of savings go into insurance

• The penetration in the Asian market is the 4th largest. The major Asian players
attracting the foreign players are China, India and South East Asia( Vietnam).In
Asia both life as well as non-life insurance business are highly concentrated in
China, India and Vietnam.
• The insurance markets in Asia-Pacific vary greatly, ranging from relatively
undeveloped to fully mature, and the countries differ widely in terms of economic
development, political factors, business infrastructure, regulatory environment,
management, products and distribution. Markets such as Hong Kong and
Singapore are very open, while others such as China, India and Taiwan are tightly
• The life insurance business is enjoying the fastest growth in Asia-Pacific and the
growth is strongest in China and India. Non-life insurance has seen strong growth
in countries such as New Zealand , Malaysia and also India due to the increasing
affluence of the region's population.
Insurance premium market in India is the fifth largest in Asia. It rose by 17.2% in 2005-
2006. According to global reinsurer Swiss Re, the two nations ( China and India) will
continue to lead the region's insurance markets with average annual growth rates of 13%
and 8% respectively until 2015


A well-developed and evolved insurance sector is needed for economic development as it
provides long term funds for infrastructure development and at the same time strengthens
the risk taking ability. It is estimated that over the next ten years India would require
investments of the order of one trillion US dollar. The Insurance sector, to some extent,
can enable investments in infrastructure development to sustain economic growth of the
• According to government sources, the insurance and banking services'
contribution to the country's gross domestic product (GDP) is 7% out of which the
gross premium collection forms a significant part.
• For the period up to October 2006, the premium growth for both LIC and private
insurers is expected to be well above the 50% mark. The recent stock market
crash will drive the retail investors, to invest in insurance policies as it is
considered to be one of the safest options. This will further enhance the growth of
the insurance sector in India.
• Since opening up of the insurance sector in 1999, foreign investments of Rs. 8.7
billion have poured into the Indian market and a lot of private companies have
been granted licenses.
• With an annual growth rate of 15-20% and the largest number of life insurance
policies in force, the potential of the Indian insurance industry is huge. Total
value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion
(US$10 billion).
• Only 20% of the total insurable population of India is covered under various life
insurance schemes, the penetration rates of health and other non-life insurances in
India is also well below the international level. These facts indicate the of
immense growth potential of the insurance sector.
• Though, the existing rule says that a foreign partner can hold 26% equity in an
insurance company, a proposal to increase this limit to 49% is pending with the

The Indian insurance sector is divided in to life and non-life insurance. Their
performance and growth signifies the high potential in the insurance market.
Life insurance
The life insurance industry grew by 28%, in terms of weighted new premium income, in
the period April to December 2005 over the corresponding period in 2004.

Major players in the market:

• ICICI Prudential remained the top private life insurer, with a new business
market share of 11.5% of the total market.
• Bajaj Allianz Life was in second place amongst the private players, with a
market share of 5.6%
• HDFC Standard Life with a market share of 4.2%. Birla Sun Life slipped to
fourth position, with a market share of 2.9%, due to an 8.5% fall in its weighted
new business premium income during April to December 2005 over the
corresponding period last year.
• The new business market share of the Life Insurance Corporation of India
(“LIC”) fell to 64.3%, down from 75.0% in the first nine months of FY2004/05
showing the increasing power of the private and foreign sector.

Non-life insurance
In terms of gross premium income, the market share of private non-life insurers increased
to approximately 27% in the period April to December 2005, up from approximately 20%
in the corresponding period in 2004. The private non-life insurers achieved
approximately 54% growth in gross new business premium income in the period April to
December 2005 over the corresponding period last year.

Main players in the market:

• ICICI Lombard is the leading private sector non-life insurers, with market shares
of 8.1% in terms of gross premium income.
• Bajaj Allianz General occupied market share of 6.4% respectively, in terms of
gross premium income.

Driving factors for high penetration:

The competitive environment in India presents both challenges and opportunities to

global banks seeking market entry. Entrenched domestic competitors and restrictive
equity ownership ceilings imposed by the government create obstacles for banks
establishing a foothold in India. Primary challenges include tough competition and
government ceilings on foreign equity ownership. Opportunities exist because global
banks often have technological advantages, well-honed, efficient processes and appealing
products and services
• The Indian insurance market has grown impressively since liberalization in 1999,
and the positive effects of competition have seen new investors enter the market
• Improved consumer purchasing power, coupled with more liberal attitudes toward
personal debt, is fueling India's explosive banking segment.
• A near saturation stage in developed nations like the UK and US, makes India an
attractive destination offering high growth potential to international insurers.
• Rising per capita income, increased life expectancy, low insurance penetration
rates and deregulation are driving the development of Asia's insurance sector.
• Given the huge population and the rising risk awareness and increasing wealth
among the region's middle-class, established insurers from around the globe paid
closer attention to India in a bid to exploit the growing business opportunities
• With the exception of Japan, where sales of recent available standard policies
declined over the past six months due to the effects of a saturated market, all
insurance markets in the region saw business expansion with the launch of new
• In Asia, there is a strong correlation between insurance penetration and the
standard of living measured as per capita GDP. It means that the higher the per
capita income as a percentage of GDP, the higher the insurance penetration will
be. And the Indian GDP is growing at a rate of 7.96.
• India is one of Asia's fastest growing emerging insurance markets. To date, the
insurance sector has attracted foreign direct investment (FDI) of more than
US$235 million and accounts for 2% of India's gross domestic product (GDP)
• Among those that have reportedly entered into strategic alliances or are preparing
to forge one are Allianz, Aegon, AIG, Allstate, AXA, CGU, Canada Life,Cigna,
ING, Mitsui Marine, Munich Re, New York Life, Old Mutual, Prudential,
Rothschild, Royal Sun Alliance, Standard Life, Sun Life, Tokio Marine,Yasuda
Fire and Marine and Zurich.
• The CII Expert Group estimates non-life premia to rise to 4% of the gross
domestic capital formation by the year 2010 as compared to around 2.5%
• With an annual growth rate of 15-20% and the largest number of life insurance
policies in force, the potential of the Indian insurance industry is huge. Total
value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion
(US$10 billion). According to government sources, the insurance and banking
services' contribution to the country's gross domestic product (GDP) is 7% out of
which the gross premium collection forms a significant part. The funds available
with the state-owned Life Insurance Corporation (LIC) for investments are 8% of
• Till date, only 20% of the total insurable population of India is covered under
various life insurance schemes, the penetration rates of health and other non-life
insurances in India is also well below the international level. These facts indicate
the of immense growth potential of the insurance sector.

Japan is the largest insurance market in the Asia-Pacific, followed by South Korea as the
second largest and Taiwan in third place. But China and India are trailing close behind
and are very likely to overtake the current leaders to become Asia's insurance

For protection of the domestic industry, avoid hyper competition and overcrowding,
seepage of insurance premia out of country and limits on foreign participation the
following by building appropriate safety provisions into the IRDA Act.

• Mandatory prescriptions relating to minimum paid-up capital, investment of

policyholders’ funds in India and minority foreign equity holding with a provision
for dilution of Indian promoters’ holding over a specified period take cognisance
of such concerns.
• Competitive forces will propel erstwhile monopoly insurers to focus seriously on
issues of overstaffing, inadequate infrastructure, training and retention of agents,
product innovation, pricing and customer service.
• A phased licensing roll-out providing for the entry of a small number of large,
established players initially, followed by a second rung of players, coupled with
the continued regulation of pricing is expected to allow the incumbent insurers
sufficient time to adapt to changing market conditions and evolve adequately to
meet the competitive pressures.


• A minimum net worth of Rs 5 bn;

• A minimum capital requirement of Rs.1 bn,(this is mandatory for any player in
the sector, including banks)
• A minimum capital adequacy ratio of 10 per cent
• Entry through a joint venture
• A net profit record for last three years;
• Net non-performing assets (NPAs) that "are reasonable"and
• A good track record in the case of subsidiaries as well



The Indian insurance industry has been a target for many foreign investors because of
increasing liberalization and globalization and also because other major growing markets
have become saturated or are already preoccupied. In this scenario we as a multinational
bank have to target our operations and policies to the untapped markets which have
potential to grow so as to enter the insurance market.

• The life insurance market in India is cluttered with too many players both private
and public on the other hand in the non-life insurance our major competitor will
only be Bajaj Alliance and ICICI Lombard.
• The non-life sector is experiencing a steady uptrend in interest rates and a stable
investment environment, which are likely to boost the sector's future performance.
• According to the Insurance Regulatory and Development Authority (IRDA),
premium growth of India's non-life insurance sector has expanded at an annual
average of 15.5%, with the private sector alone growing by 55%.
• Non-life insurance business is picking up due to the increasing affluence of the
region's population

Further in the non-life insurance market we would focus more on travel and health.
But at the starting phase of entering the India market and to get a firm grip on the market.
It is very important to offer a very good variety of Life insurance policies.


We will focus on the traveling insurance because the traveling insurance is becoming a
key consideration due to the following reason:
• With the increasing amount spend on travelling and increase in frequency of
traveling. the demand for travel insurance will also increase.
• Increase in ageing population. There is a change in life-style of the ageing
population who have increasing high disposable incomes, active lifestyles and
extra leisure time personal travel market will continue to grow.
• The spending on travelling is also increasing For instance, according to
MasterCard Asia-Pacific research shows, in 2005, the retired travellers in the
middle income bracket of US$30,000 to US$100,000 spent US$17.5 billion and
they are projected to spend US$23.6 billion by 2014. Countries that have been
accounted for include India, Japan, Singapore, South Korea, China, Malaysia,
Taiwan, Hong Kong SAR, Indonesia, Thailand, the Philippines, Australia and
New Zealand.

Hence we plan to come up with plans that cover different types of protection, especially
related to travelling to exotic countries. The increasing aged population accompanied by
the changing trend will act as basic driver of demand for the product and the trend is
expected to continue in the future.


We will be concentrating on the health insurance policies due to the following reasons:

The government is promoting this sector so that health care will come within the reach of
a large proportion of the population. Health insurance will make healthcare affordable to
a large number of people

The health insurance will be changed from providing cover for treating sickness to
ensuring the wellness of the consumer. An insurance model must be created with the
`Total Health' perspective to not only give access to quality healthcare but also
incorporate preventive health care into the main system. Hospitals, different service
centres and diagnostic centres needs to be accredited.

In India, approximately 80% of the total health expenditure comes from self-paid
category as against government’s contribution of 20-30 %.These 80% will be looked
after by our policies.

A majority of private hospitals are expensive for a normal middle class family. We will
help in improving this scenario by insuring such people at considerable rates.

Currently, in India only 2 million people (0.2 % of total population of 1 billion), are
covered under Mediclaim, whereas in developed nations like USA about 75 % of the total
population are covered under some insurance scheme

The Indian government see insurance as a solution to the healthcare needs of the
growing ageing population, while it is a profitable business to enter in for new players.
Since traditional in-force business is no longer profitable and is sort of saturated, we as a
foreign player have decided to shift and develop non-life insurance, centered on health
and traveling policies.



The expectations of a customer are the essence of any service. A service provider has to
make sure that he knows what the customer wants and provides the closest thing
possible. Services can be altered any time pre or post purchase, which requires a
service provider to be extremely flexible. Today’s educated customers demand a
high degree of customerization. This lead to a gap between the service provider’s
ability and the customers wants.

The Customer Gap

The central focus the gap model is the customer gap, the difference between customer
expectations and perceptions. Expectations are the reference point’s customers have
coming in to a service experience; perceptions reflect the service as actually
received. The idea is that firms will want to close this gap- between what is
expected and what is received- to satisfy their customers and build long- term
relationship with them. To close this all important customer gap, the model
suggests four other gaps- the provider gaps need to be closed.

The Provider Gaps

Gap 1

The primary cause in many firms for not meeting the customer’s expectations is that the
firm’s lack accurate understanding of exactly what those expectations are. A gap
exists between company perceptions of customer expectations and what the
customers actually expect.

We at Aura RHCP Insurance have tried to best to meet up with the various customer
expectations. Our process stands on the pillars of trust, loyalty and customer

In order to deal with these particular gaps our company is following the policies of
Integrated Marketing Communications, conducting through marketing research,
encouraging upward marketing communication and following a thin layer of

Gap 2
Even if an insurance company does have a clear understanding of its customer’s
expectations, there still maybe problems if that understanding is not translated into
customer driven service designs and standards. This situation can be caused by
these three factors:

Resource Constraints
Market Condition
Management Indifference

Today insurance is a personalized service. We understand that our customers have variant
needs and providing personalized service in such a situation is difficult. Our
employees are selected through a stringent recruitment process and we have gone a
step ahead by training each and every employee to provide maximum personal
interaction and customer satisfaction.

Gap 3

Once service designs and standards are in place, it would seem that the firm is well on its
way to delivering high-quality service. This is true, but still not enough. There must
be systems, processes and people in place to ensure that service delivery actually
matches the designs and standards in place. In order to deal with this particular gap:

We would be having a tough selection process concentration on the work ethics in an

insurance agent.
The firm will focus on team building among the employees.
We would be placing a suggestion box at all the counters.
Special preference would be given to senior citizens(retirement policy)
Develop a supervisory control system and to reward employees for good quality service.
Reduce employee role conflicts and role ambiguity.

Gap 4

Finally, with everything in place to effectively meet or exceed customer expectations, the
firm must ensure that what is promised is delivered. This particular gap is the most
important of the 4 as it is a link between the customer and the service provider. In
order to reduce this particular gap, our company is taking the following steps:

Advanced communication exercises between the marketing and service personnel

Follow the concept of “under-promise over delivery”.
Money can alter a customer’s expectations at the speed of light. A 6-year-old loyal
customer may close his policy due to a decline in service. In insurance services the
customer expectations are constantly rising driven by personal interest and at times
circumstances. Some people see investments as a source of livelihood, investing in
their last penny. Therefore, insurance services are all about giving the customer
what he wants on the right time.


There are several reasons why banks should seriously consider Bancassurance, the most
important of which is increased return on assets (ROA). One of the best ways to increase
ROA, assuming a constant asset base, is through fee income. Banks that build fee income
can cover more of their operating expenses, and one way to build fee income is through
the sale of insurance products. Banks that effectively cross-sell financial products can
leverage their distribution and processing capabilities for profitable operating expense

By leveraging their strengths and finding ways to overcome their weaknesses, banks
could change the face of insurance distribution. Sale of personal line insurance products
through banks meets an important set of consumer needs. Most large retail banks
engender a great deal of trust in broad segments of consumers, which they can leverage in
selling them personal line insurance products. In addition, a bank’s branch network
allows the face to face contact that is so important in the sale of personal insurance.

Another advantage banks have over traditional insurance distributors is the lower cost per
sales lead made possible by their sizable, loyal customer base. Banks also enjoy
significant brand awareness within their geographic regions, again providing for a lower
per-lead cost when advertising through print, radio and/or television. Banks that make the
most of these advantages are able to penetrate their customer base and markets for above-
average market share.
Other bank strengths are their marketing and processing capabilities. Banks have
extensive experience in marketing to both existing customers (for retention and cross
selling) and non-customers (for acquisition and awareness). They also have access to
multiple communications channels, such as statement inserts, direct mail, ATMs,
telemarketing, etc. Banks' proficiency in using technology has resulted in improvements
in transaction processing and customer service.

By successfully mining their customer databases, leveraging their reputation and

'distribution systems’ (branch, phone, and mail) to make appointments, and utilizing
'sales techniques’ and products tailored to the middle market, European banks have more
than doubled the conversion rates of insurance leads into sales and have increased sales
productivity to a ratio which is more than enough to make bancassurance a highly
profitable proposition


Bancassurance in its simplest form is the distribution of insurance products through a

bank's distribution channels .It describes a package of financial services that can fulfill
both banking and insurance needs at the same time.

Motive behind bancassurance:

 For banks it is a means of product diversification and a source of additional fee

 Insurance companies see bancassurance as a tool for increasing their market
penetration and premium turnover.
 The customer sees bancassurance as a bonanza in terms of reduced price, high
quality product and delivery at doorsteps.

Most obviously, banks own proprietary databases that can be tapped for middle-market
warm leads. In addition, they can leverage their name recognition and reputation at both
local and regional levels. Strong players also excel at managing multiple distribution
channels, cross-selling banking products, and using direct mail. However, most banks
lack experience in several areas critical to successful bancassurance strategies: in
particular, developing insurance products, selling through face-to-face "push" channels
underwriting, and managing long-tail insurance products. This is done using insurance
companies competencies.

Thus AURA bank plans to enter the market through a joint venture with a leading bank in
India, RHCP and this collaboration will help us to use RHCP’s reputation and multiple
distribution cannels and our own competency for developing insurance products and
hence establish a strong and profitable insurance company.

5. Marketing Strategy

The company will follow a holistic approach by delivering the customers quality oriented
and customized insurance services. The company will be working in three phases in
which it will try to fulfill its commitment to quality and customer satisfaction leadership.
Our marketing strategy will work on these four point strategy which will focus on all the
major services simultaneously.
I) The Entry Phase:
• The company will open 18 branches in India in this phase. Focus on creating
more Premiums and investments, to satisfy the investment requirements of the
clients and to ensure wide scale reaches in the country, with the help of a well
established branch network in India, this will also help to build a certain amount
of trust towards the insurance services provided by the Aura RHCP insurance.
The aim would be to get brand awareness by focusing on life insurance in this
stage. This would be done as the life insurance has more market popularity.

II) The Growth Phase:

• The insurance company will promote non life insurance towards its focal point by
offering more innovative non-life policies particularly focusing on travel and
health as they are the untapped policies in the market.

III) The Stability Stage:

• In order to continue with the growth the company will focus on the next
upcoming field in insurance sector which comprises innovative policies in both
life and non life insurance.
IV) The Future: We also plan to start with the Unit Link Investment Plans to increase
our market share.




Region India
Density Urban, semi- urban (IInd and IIIrd phase)


Age 18 – 75+ years

Family Life Bachelor, Newly Married, Full Nest (I, II &III),
Cycle Empty Nest (I & II)
Gender Male, Female
Income Above Rs. 50,000/- p.a.
Generation Baby Boomers, Generation Xers, Gen Yers.
Social Class Upper Upper, Lower Upper, Upper Middle, Middle and
Lower Middle Class


Life style Saving Oriented, Investment Oriented, Luxury

Personality Ambitious, Compulsive, Caring


Occasions Regular occasions, Special Occasions

Benefits Quality, Social Status, Service, Security
Readiness Stage Informed
Attitude Positive

The company will try to position it as a brand associated with nation’s heritage offering
high level of satisfaction, which in turn provide the customer a premium which is
prestigious and exclusive. We will try to position our company in such a way that it will
help the use to reflect our self – image of customer orientation and, by elevating the
perceived impression of the users for our company.

The image related benefit which has been derived from London’s ethnic and customer
oriented background will be used to differentiate our brand from the others prevailing in
the market. It can also provide motivation to buy our services. The company will focus
upon quality, exclusive service delivery (Privileged insurance Service etc.)

However the company would be working on these five dimensions which will further
enhance our understanding of the customer and the factors which propel him/her to buy
the product:

• Perceived Conspicuousness: Consumers who consume luxury only for their social
status, this particular aspect is measured in terms status associated with the
insurance brand. As Aura insurance, is associated with excellence service delivery
for its account holders, we can take care of this particular niche segment.

• Perceived Uniqueness: This particular attribute provides the customer

distinctiveness and enhances his image, thus rare and exclusive services will be
provided by us under schemes Moththercare, Mediclaim, cash back etc.
• Perceived Trust: A insurance company can only live up to customer satisfaction,
If it can built a bond of trust with its stakeholders Aura Insurance employees
through their culture specific behavior and attitude are working in this direction.

• Perceived Quality: The perceived quality factor will work depending upon person
to person. Aura insurance will try to give excellent amount of banking services
and thus able to provide required brand assurance to the customers.




Policy is suitable for people who wish to have combined benefit of savings and liquidity
all the while having insurance protections. Since the benefits under the policy are payable
at regular intervals. This plan is best suited for some one planning for children's higher
education/marriage. . At the same time, the policy provides insurance protection for the
family and acts as tool for old age provision.

• Minimum Face Amount: Rs. 50,000.
• Terms Available : 15,20,25,30 Years
• Maximum age at maturity : 70 years

Min age at entry:

15 years term 15
20 years term 14
25 years term 13
30 years term 12

Max age at entry:

15 years term 55
20 years term 50
25 years term 45
30 years term 40

• Guaranteed percentage is paid at every 1/5th period of your selected policy term.
• Provided the policy is in full force, a guaranteed addition of Rs.100.00 per Rs.1,
000 of Face Amount will be added to the Face Amount at the end of each policy
anniversary and will be payable either on the date of maturity or on earlier death
of the Life Insured
• The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthly
mode is also available under salary deduction scheme

• Premium charged:
Mode Premium
Annual Rs. 1500/-
Half Yearly Rs. 800/-
Quaterly Rs. 450/-
Monthly Rs. 150/-

• Premiums discounts will be given for the female policy holders. Basic premium
payable will be equivalent to the premium for a two-year younger male


On death
• Within the term Full Sum assured +Bonus+Guaranteed Additions(Guaranteed
additions are payable only if the death occurs after ten policy years) are payable.

On Survival
• On maturity date balance amount +Bonus +Guaranteed additions are payable.
• Guaranteed percentage is paid at every 1/5th period of your selected policy term

% of Sum Assured Payable as Cash Benefits

2nd Cash 3rd Cash 4th Cash
1 Cash Benefit
On Maturity
Benefit Benefit Benefit

10% 15% 25% 25% 50%

• Minimum Face Amount: Rs. 50,000.

• In the event the Insured commits suicide, whether sane or insane at that time,
within one year from the effective date of insurance cover or the date of the
Policy or the date of the last reinstatement whichever is later, the benefit is
restricted to the extent of refunding the premium(s) received without interest, if
any, less any expenses incurred by the company.

1) Accidental Death Benefit :
The Accidental Death Benefit rider pays double the basic sum assured plus accrued
bonuses subject to a maximum of Rs. 10,00,000/- under all policies taken together.

2) Accidental Permanent Total/Partial Disability Benefit

Under this rider in case of a disability- partial or total the following is provided.
Type of disability Benefit
Permanent partial disability 50% of the Sum Assured(subject to a
maximum of Rs.5 lakhs on all policies taken
Permanent Total Disability 100% of the Sum Assured (subject to a
maximum of Rs.5 lakhs on all policies taken

3) Critical Illness Benefit:

The Critical Illness Benefit rider covers 11 critical illnesses and it pays off the
critical illness benefit on the plan immediately while other policy benefits continue
except hospital Cash Benefit. Claim under this rider is not admissible during first
six months of the policy.

4) Hospital Cash Benefit

By the virtue of this rider a fixed amount for every day of hospitalisation is payable.
Amount payable for every day of hospitalisation is specified under the policy.

5) Level Term Insurance

Additional cover in the event of death happening within the term

1) Cash care total: It includes Accidental Death Benefit, Accidental Permanent
Total/Partial Disability Benefit,Critical illness and Hospital Cash Benefit are built
in and no additional premium needs to be paid. One can exclude certain riders for
discount in premium at the end of each policy year.

2) Cash care economy: Accidental Death Benefit, Accidental Permanent

Total/Partial Disability Benefit. This Combination can be excluded and included
again at each policy anniversary by paying additional premiums or for discount in
3) Cash care protect: Accidental Death Benefit, Accidental Permanent Total/Partial
Disability Benefit Are built in and no additional premiums needs to be paid.
Combination can be included and excluded again at each policy anniversary.
4) Cash care health: Critical illness and Hospital Cash Benefit riders are built in, no
additional premiums need to be paid. Combination can be included and excluded
again at each policy anniversary.


This is a policy that provides guaranteed returns and is specially designed to meet
children's educational expenses at different life stages.

Policy is to be taken on the life of the parent for the benefit of the child
1. Risk commences after 2 years from the date of commencement of policy or on
policy anniversary following completion of 7 years by the child, whichever is
2. One has the flexibility to choose the exact age of the child (between 20 to 25
years), at which the policy is to mature. The term of the policy is determined by
Age of the child on maturity - Age of the child on the date of proposal.
Guaranteed additions @ Rs. 50 / Rs 1000 sum assured is paid for every year for which
the policy is in force. This apart, terminal additions equivalent to 20% of the
guaranteed additions payable on maturity
• The policy provides an option wherein the child can avail of a permanent life
insurance policy on the date of maturity to the extent of sum assured without
undergoing any medical examination. However this benefit has to be availed with
in 6 months from the date of maturity.
• Policy holder has the option to utilise the bonus/gurantee in any of the following
three ways:
1. Annual Bonus payment
2. Bonus accumulated and paid on maturity

Bonus used to offset Premiums

Premium can be paid yearly, half-yearly, quarterly, monthly (only if Premium is over
Rs.2500 per month


On maturity, the policy value is payable

• Full sum assured along with bonus will be payable

On Death during the term

• Death Of Parent
• 100% of Face Amount shall be payable and all the future premiums are waived.
These benefits are in addition to the fixed term benefits that will be paid to the
child as per the agreement
• In case of death of life assured before the commencement of risk, the policy is
cancelled and premiums paid are refunded.

Two options are available:

• Sum insured plus the policy value is paid to the nominee and the policy is
• The units can be held till the maturity date and these continue to earn investment
returns. In this case, units are purchased for an amount equal to the sum insured.
These are then added to the policy value and returns accrue on this higher sum.
• If the nominee is a minor, the beneficiary or the appointee has the option of
making partial withdrawals as per the terms and conditions of the policy (subject
to a minimum policy value


If the insured's death is due to suicide or attempted suicide during the first twelve months
from the commencement date of the policy, the Company will only pay the surrender
value of accumulation units pertaining to additional single premium

• Minimum age of the Parent : 20 years.

• Maximum age of the Parent : 60 years.
• Minimum premium: Rs. 8,000 per year.
• Minimum Sum Assured:Rs.1,00,000.
• Maximum Sum assured: Rs.30,00,000
The policy is suitable for people who wish to plan and save for the golden years of
retirement years. The plan is mostly suitable for people who are not in any pension
schemes and wish to provide regular income for life after a stipulated date.

• The policy is a deferred pension plan wherein pay premiums during the deferment
period to purchase an annuity at the end of deferment period. The amount you
receive depends on the premium you pay till the stipulated date and the option
you choose.
• Policyholder can choose the date of retirement to be between 50 to 65 years.
• Policy offers 9% guaranteed return on investment.
• Premiums paid under the policy are eligible for tax benefits under section
80CCC(1) of IT Act ,1961.
• The plan provides for 4 annuity options:
1. Life annuity: annuity for life
2. Life annuity certain for 5, 10, 15 years: Annuity is paid for
chosen term and for life thereafter
3. Life annuity with return of purchase price: life annuity with
return of purchase price on death to the beneficiary
4. Joint Life, last survivor annuity with return of purchase price:
life annuity to you and then to your spouse with return of purchase
price to the beneficiary on death of last survivor.

Surrendering options
• Surrender during the first year is not permitted. But the policy acquires a
guaranteed surrender value after the first year which will be 70% of the single
premium after one year, 75% of the single premium after two years and 80% of
the single premium after 3 years. Cash value of guaranteed additions already
allocated to the policy will also be payable
• If the policy holder decides to terminate his policy, after 3 years premiums are
paid, a guaranteed surrender value is payable and the insurance protection
provided under this policy will also cease.

Bonus Offered
• Reversionary Bonus: Annual bonus will be declared by the company from the 5th
policy anniversary, which would be credited to the policy. This is paid on a
compounded basis.
• Terminal Bonus: This bonus will be payable either on the date of retirement or on
death, provided the policy has been in force for 10 years.

Reversionary bonus and Terminal bonus are not guaranteed and depend on the
performance of the company.

Other Conditions
• Minimum age at entry : 18 years.
• Maximum age at entry: 55 years.
• Minimum age of retirement : 50 years.
• Maximum age of retirement: 65 years.
• Minimum Sum Assured - Rs. 50,000/-.
• Maximum Sum Assured - unlimited.
• The minimum premium paying period is ten years, subject to a minimum
retirement age of 50 years.

• If the insured, whether sane or insane, commits suicide within one year from the
policy issue date or commencement date, whichever is later, our liability shall be
limited to the refund of premiums paid less any indebt ness without interest.


On Death
• On death during the deferment phase, a regular income stream is automatically
provided to the insured's spouse. If the spouse is not alive a lumpsum amount is
paid to the nominees. The amount of annuity payable is determined on the basis
of the sum assured plus guaranteed additions plus vested bonuses (if any) as on
the date of death.

On survival
• On vesting date insured has the option of taking 25% of the aggregate of the sum
assured, guaranteed additions and vested bonuses as an immediate lump sum. And
utilise the remaining 75% to provide an annuity. Annuity payment depends on the
type of option chosen

• Accident and Disability Benefit
• Critical Illness Benefit
• Major Surgical Assistance Benefit
• Level Term (Double Life) Insurance Benefit


The policy has been designed keeping in mind the needs of rural people. It provides
insurance protection for the fixed term, all the while providing a good return on the
premium paid.

Salient Features
Only single premium payment option is available benefits are payable either on death or
on maturity which ever is earlier.
• Term is fixed at 15 years.
• The policy can be surrendered, losing the maturity benefit. Surrender Value
payout table:
After 1 year 90% of the premium
After 4 years 100% of the premium
After 10 years 160% of the premium
After 14 years 230% of the premium


On Maturity
• 250% of the Single Premium is payable.

On Death
• On death after two policy years, 250% of the single premium is paid, however on
death within the first two policy years, single premium paid is refunded.

Other Conditions
• Policy term - 15 years .
• Minimum age to take the policy - 18 years
• Maximum age to take the policy - 45 years
• Maximum age covered - 60 years
• Premium range Rs. 1,000 - Rs. 50,000
Aura Endowment Plan

• The policy provides for family protection as well as old age provision. Further
sums are guaranteed, Covering the contingencies of both surviving to maturity
and also death within the term. This policy is suitable for all categories of people

Salient Features
• Lump sum amount is payable on survival to maturity or on death, whichever is
• Premiums are payable till the end of payment term chosen or death which ever is
earlier. However in case of plans where Waiver of Premium benefit has been
availed, premiums are not payable during the period of disablement.
• Premiums paid under the policy are eligible for tax rebate under section 88 of
Income Tax Act 1961.
• Benefits under the policy can be enhanced by opting for riders. Riders are the
additional benefits which can be availed by paying marginal additional premium.
Riders available under the plan are:


On Maturity
• Full sum Assured + Bonus + Guaranteed additions are payable

On Death
• Full Sum Assured + Bonus + Guaranteed Additions(Guaranteed additions are
payable only if the death occurs after ten policy years) are payable.

• Double Sum Assured (DSA):This benefit provides for an additional amount
equivalent to the basic sum assured in case of unfortunate death.
• Accidental Death Benefit (ADB):This benefit provides for an additional amount
equivalent to the basic sum assured in case of death due to accident.
• Waiver of Premium (WOP):By the virtue of this benefit all future premiums stand
waived in case of total disablement of the life assured. The waiver applies during
the period of total disability.
• Critical Illness (CI):This benefit will provide for an additional amount equivalent
to the basic sum assured on insured contracting to any of the six specified critical
illnesses. Critical illness benefit will be paid on insured surviving 30 days from
the date of claim. This benefit comes to an end once the claim is paid, however
basic policy continues.

Other Conditions
• Minimum Entry age: Age 15 last birthday.
• Maximum Entry age: Age 60 last birthday {Maximum Entry age is subject to
maximum maturity age of 75 years}
• Maximum Maturity age: Age 75 last birthday.
• Minimum Face Amount: Rs.300000
• Maximum Face Amount: There is no limit.
• Minimum premium Amount: Met 100 Platinum it is Rs.8000(not inclusive of
the Rider Premium).

• The company will not be liable to pay the benefit amount, if the death of the
life assured is caused directly or indirectly by suicide within one year of the
date of commencement, or the date of issue of the policy, if later.
• Intentionally self-inflicted injury or attempted suicide, irrespective of mental
• Alcohol or solvent abuse, or the taking of drugs except under the direction of
a registered medical practitioner.
• War, invasion, hostilities (whether war is declared or not), civil war, rebellion,
revolution or taking part in a riot or civil commotion.
• Taking part in any flying activity, other than as a passenger in a commercially
licensed aircraft.
• Taking part in any act of a criminal nature.

Non Life Insurance

Health care cost are high and getting higher. Who will pay your bills if you have a
serious accident or major illness? Most of the times we are unprepared for these
difficult times, emotionally, as well as financially. AURA MEDICAL PLUS
Policy, protect you and your family in case you need expensive medical care. It
also offers you cashless benefit & medical reimbursement for hospitalisation

• Any one in the age group of 5 to 75 years can take the policy. Children in the
age below the age of 5 years can also be covered from the age of 3 months
onwards provided one or both of the parents are covered concurrently.Policy
provides for the cash benefits in the event of insured person(s) being
hospitalised due to sickness or accident. It also offers you cashless benefit and
medical reimbursement for hospitalisation expenses.

Salient Features
• This is medical insurance policy providing financial assistance in case of
hospitalisation following any sickness or accident.
• Single policy can be issued to cover spouse, dependent children and
dependent parents.
• There is no limit on the number of children to be covered. The minimum age
for the children is 3 months with maximum being 21 years.
• Cashless facility: With Health Guard, the member has access to the cashless
facility at various hospitals across India (Subject to exclusions and
• The member can opt for hospitals besides the empanelled ones, in which case
the expenses incurred by him shall be reimbursed within 14 working days
from submission of all the documents.
• Premium paid upto Rs.15,000 per annum is eligible for Tax benefit u/s 80 D
of IT Act.
• There is no need to submit medical bills. Only a discharge certificate is
sufficient for admitting the claim.
• Waiver of pre-existing diseases: Pre-existing diseases are normally excluded
at the time of taking the policy. however, from 5th year onwards it is covered
if the policy is continuously renewed for 4 years with the company and the
insured has declared such ailment while taking the policy for the first time.

• Policy provides financial assistance in case of hospitalisation following an
accident or sickness.
• Discount in insurance premium is allowed on family package, cumulative
bonus and health check. In case of family package cover, a single member can
avail of the entire policy limits.
• Policy holder can avail cash less hospitalisation facility in the hospitals which
come in the network of AURA RHCP INSURANCE.
• Premiums paid under the policy are eligible for tax rebate under section 80
80-D of the Income Tax Act 1961.
• Pre hospitalisation and post hospitalisation expenses for 30 days and 60 days
respectively are payable

Premium Table
Indicative Premium table. All the premiums are per annum

90 days - 25 Yrs 26yrs - 40yrs 41yrs - 45yrs 46yrs - 55yrs
Sum insured(Rs)
100000 1045 1211 1330 2280
1,50,000 1568 1758 1948 3420
200000 1948 2280 2565 4560
300000 2755 3230 3610 5700
400000 3610 4275 4655 6315
500000 4370 5130 5700 7013

• The policy is not paid in case of
• All diseases/injuries existing at the time of proposing this insurance
• Any disease contracted during the first 30 days of commencement of the
• Certain disease such as hernia, cataract, piles, sinusitis shall be covered after a
waiting period of 2 years.
• Non allopathic medicine
• Congenital diseases
• All expenses arising from AIDS and related diseases
• Cosmetic, aesthetic or related treatment
• Use of intoxicating drugs, alcohol.

Critical Illness Benefit – HealthAssure provides you cover against the following six
critical illnesses
• Cancer
• Coronary Artery Bypass Graft/Surgery
• Heart Attack
• Kidney Failure
• Major Organ Transplant (as a recipient)
• Stroke

In case any of the specified critical illnesses is diagnosed, the benefit amount (Critical
Illness Sum Assured) will be paid to you the flexibility to choose from the two options to
claim your Critical Illness benefits.

Lump sum where the whole amount can be collected by the person when the illness is
diagnosed. In this case the insured will get 100 % of the total amount.

Installment where Rs. 25,000 (25% of Sum Assured) for 1st year + Rs.20,000 (20% of
Sum Assured) from 2nd to 5th year (Total benefit:105% of Sum Assured)

Critical Illness Benefit Amount and Payout Options

The benefit amount which you receive is based on the time that has elapsed since the date
of issue of the policy to the date of diagnosis of Critical Illnesses. You also have

• Documents Required
• Standard documents required for claim processing are as under
• Written intimation of the claim
• Original plan document
• Hospital Certificates
• Claimant's statement with hospital's discharge card or hospital/pathology
• Any other relevant hospital records

List of hospitals in The network of AURA RHCP INSURANCE.

Bangalore Chennai
1. Agadi Hospital & research Centre 1. Miot Hospitals
2. Hosmat Hospital 2. Devaki Hospital Limited
3. Lakeside medical Centre & hospital 3. Sankara nethralaya Medical Research Foundation
4. Mallya Hospital 4. Sooriya Hospital
5. Seventh Day Adventist Medical Centre 5. Sri Ramchandra Medical Centre
Hyderabad Kolkata
1. Apollo Hospital 1. Kothari Medical Centre
2. Care Hospiral 2. B.M. Birla heart Reaearch Centre
3. Kamieneni Hospitals 3. The calcutta Medical Research Institute
4. Mythri Multi Speciality Hospital 4. Wockhardt Hospitals Limited
New Delhi
1. Dr. Balabhai Nanavati Hospital
1. Spinal injuries centre
2. Holy Family Hospital and Medical research centre
3. Indraprastha Apollo Hospital
3. Bombay Hospital and Medical research centre
4. Batra Hospital and Medical research centre
4. Holy Spirit Hospital
5. Escorts Heart institute and reasearch centre
5. Jaslok Hospital and Research Centre
6. Pushpawati singhania reasearch institute for liver,
6. Liliavati Hospital and Research centre
renal and digestive disease
7. P.D. Hinduja National Hospital and Medical
7. Sir Gangaram Hospital
research centre
1.Grant medical foundation - Ruby Hall clinic
2. Inlaks and Budhani hospital
3. Sancheti Hospital


Bodyguard Policy from Aura is a personal accident policy and can be availed by
any one in the age group 18 to 65 years. The policy seeks to provide
compensation on death or bodily injury caused by an accident. In today's fast
moving world one is highly susceptible to accidents and at times financial
implications of the same could be disastrous to oneself or his/her family. This
policy provides financial assistance to the insured or his/her family members in
case of an accident at an affordable premium and hence recommended

Salient Features
• The policy provides financial assistance in the case of an accident resulting in
death or disability of the life insured.
• Policyholder can cover his/her spouse along with children under a single
policy. A discount of 10 % can be availed on insuring spouse.
• Types of benefits
• Escalating Benefit: The compensation payable for accidental death,
Dismemberment and Permanent Total Disablement will automatically be
increased by 5% every year on renewal, up to 5 years.
• Grace Period: For the purpose of escalating benefit, a grace period of 31 days
for renewal is allowed under this policy.
• 24-hour protection: Whether you are working, or at home, or travelling, you
are protected 24 hours a day, 7 days a week, anywhere in the world.
• Recovery benefits of Rs. 80000 are paid if the insured spends more than 30
consecutive days in hospital following an accident.

The company agrees to pay compensation at the following rates in case insured
meets with an accident resulting in the loss of the following:
Features Compensation
1. Both Hands or Both Feet or Sight of Both Eyes 200% of the Principal Sum
2. One Hand and One Foot 200% of the Principal Sum
3. Either Hand or Foot and Sight of One Eye 200% of the Principal Sum
4. Hearing of Both Ears 200% of the Principal Sum
5. Speech 200% of the Principal Sum
6. Either Hand or Foot 100% of the Principal Sum
7. Sight of One Eye 100% of the Principal Sum
8. Thumb and Index Fingers 50% of the Principal Sum

• Accident Hospital Cash: Provides a daily compensation for period of 14 days

starting from the 4th day of hospitalisation, should the insured be confined to a
hospital as a result of an accident.
• Weekly Indemnity: Insured is eligible for a weekly compensation for a maximum
period of 26 weeks, for claims payable under the policy in excess of one week.
Premium Applicable
The plan comes in five variants the benefits and premium payable is as follows:

Class1&2 Class1&2 Class1& 2 Class1& 2 Class1& 2

Annual Premium 600 1150 1401 1650 1850
Service Tax 30 58 70 83 93
Total Premium 630 1208 1471 1783 1943
All benefits and premiums are payable in Indian rupees.

Occupational Classes - Definition

For the purpose of the policy occupations are divided in to four categories
based on the incidence of risk.

Class 1 & 2: White collar non-hazardous occupations with office, showroom or

travel duties only i.e. lawyers; office executives; clerks; salesmen; non-
delivering merchants; overseeing or superintending engineers; semi-hazardous
occupations with duties as a supervisor, not an operator; nor doing manual
work i.e. physicians; dentists; supervising executives; merchants; general duties
in store.

Class 3 & 4: Skilled or semi-skilled workers; using light machinery i.e. filling
station attendants; farmers; retail clerks; building tradesmen; taxi drivers;
industrial workers using heavy machinery or unskilled labourers i.e. Lorry
drivers, construction workers, crane operators, electricians, labourers, etc

Exclusions include suicide, military service operations, bacterial infection,
disease, war, Illegal acts, AIDS, etc.

• Children Education Bonus: In case of Death or Permanent Total Disability of
Insured or the insured person, an additional amount to the Insured's or the
insured person's children to support their education is payable.
• Medical Expenses: A percentage of the admitted claim under other specified
coverage towards the actual medical expenses necessarily and reasonably
incurred for medical treatment within 100 weeks of its happening is paid. This
is paid only if the Insured or the insured person suffers injury during the
period of insurance and provided such treatment is received from a qualified
and registered medical practitioner. Additional premium needs to be paid to
avail of this benefit.
• Hospital Confinement Allowance: In the event of the Insured or the insured
person being confined in hospital for treatment of injury, compensation is
payable under this policy. A daily benefit is paid for confinement period
subject to a maximum period of 30 days. Additional premium needs to be paid
to avail of this benefit


• This policy is suitable for persons who go on a holiday with family or People who
travel frequently can avail of this policy.

Salient Features

• The policy is a Personal Accident policy covering accident benefits for a capital
sum insured of Rs.1 lakh for each member of the family while in travel within the
• The plan covers domestic travel by Rail, Road, Waterways or Air within the
country for a period of 60 days
• Loss or damage to accompanied baggage by accident or misfortune is covered.
• The plan also covers travel by use of own conveyance .Theft from car is also
covered provided the car has total locking system
• The policy covers loss or damage (due to fire, Storm, tempest, hurricane, flood,
inundation, riot, strike, terrorism, malicious damage, accident, theft or burglary) of
accompanied baggage upto a certain limit. The compensation provided for loss of each
article is limited to Rs.500, unless specifically declared.

This Policy consists of the following sections:

• Personal Accident - covering death and permanent disablement

• Medical Expenses and repatriation - covering hospitalisation expenses arising out
of illness/sickness and also repatriation expenses for sending mortal remains to India
• Loss of checked baggage - covering total loss of baggage checked by an
international airline
• Delay of checked baggage - covering cost of emergency purchase of replacement
• Loss of passport - covering the actual expenses incurred in obtaining duplicate
passport or alternate travel document and
• Personal Liability - covering legal liability attaching in a private capacity during
the course of overseas travel.
• Hospitalisation Allowance - covering daily allowance maximum for 30 days
applicable only for Corporate Frequent Traveller policy holders


The following benefits will be paid as compensation depending upon the nature
of injury.
Nature of injury Compensation
On Death only Rs.2lakh for each person.
Permanent Total Disablement* (PTD) Rs. 1 lakh
Loss of limb or loss of sight of one Eye Rs. 50,000
Depends on attending surgeon's
Permanent Partial Disablement* (PPD)

Scope of cover for baggage

Number of Persons Max sum

1 Rs. 5000

2 Rs. 10,000

3 Rs. 12,500

4 and more Rs. 15,000

Completed proposal furnishing the date of journey in particular. Value of each piece of
baggage should be declared, if same exceeds Rs.500.


Number of persons Premium

1 Rs. 80

2 Rs. 140

3 Rs. 190

4 Rs. 240

5 Rs. 280

In case of more than 8 persons, an additional premium @ Rs.50per head.


• One should possess a valid "Liability Policy" to use a motor vehicle in a public
place, as it is made compulsory by the provisions of Motor Vehicles Act 1988. In case a
vehicle is purchased under Hire Purchase agreement, the financiers insist upon a
Comprehensive Policy to take care of their interest as collateral security

Salient Features

• Insurance companies issue Liability policy for "Act Risks"and Package policy for
Comprehensive Risks under the Motor Vehicles Insurance

Liability policy

• Liability policy covers risks required to be covered under the Motor Vehicles Act.
It is mandatory that every car owner be covered against Act Risks under Section 146 of
Motor Vehicles Act 1988
• The scope of cover is to pay compensation for death of or bodily injuries to third
parties and damage to the property of third parties. While the insured is treated as the first
party and the Insurance Company second party, all others would be third parties
• This policy provides personal accident cover of Rs.2,00,000 to owner driver.
• While the compensation for the personal injuries to third parties is unlimited,
property damage is limited to Rs.7,50,000.

Package Policy (Comprehensive)

• This policy covers all the risks of Liability policy as well as the loss of or damage
to insured's vehicle also
• The perils covered are:
o Damage to vehicle by accidental external means, fire, lightning, explosion,
self-ignition, Burglary. Housebreaking
o Riot & strike, malicious acts and terrorist acts
o Earth quake
o Flood, inundation, cyclone etc
o Landslide/ rockslide while in transit by rail, road, air, inland waterways,
lift or elevator
• Package policy can be restricted to loss or damage due to fire or theft or both fire
& theft in combination with policy A or without
• In case of "Liability Policy" + fire, the premium is only 25% of own damage
premium + Liability Premium
• In case of "Liability only Policy" + theft, the premium is only 30% of own
damage premium + Liability Premium
• In case of Liability only Policy + Fire & theft, the premium is 50% of own
damage premium + Liability Premium
• These extended covers can be obtained without inclusion of Liability only risks,
provided the vehicle is not put to use
• The geographical limits for use of the vehicle is India but the limits can be
extended to Bangladesh, Bhutan, Pakistan, Nepal, Sri Lanka and Maldives by charging an
extra premium of Rs.500 for package policy and Rs.100/ for Liability policies
• Policies can be issued for periods less than one year. In such cases, short period
scales are charged, which are higher than pro-rata rates.
• No claim Discount: For every claim free year, the insured is rewarded with
discounts in premium up to an extent of 55% (Package policy only). In case of a claim in
any year, bonus earned till that year is wiped out. In case of adverse claims, premiums are
loaded with Mauls.


Liability Policy

• The policy pays compensation awarded by a court of law, for death of or bodily
injuries to third parties
• It also pays damage to the property of third parties up to a limit of Rs. 7,50,000.
• The policy also provides for the death of or bodily injuries with respect to paid
drivers (workman) engaged in driving or maintenance of vehicle. The compensation
payable is limited to the provisions of Workmen's Compensation Act 1923

Policy B

• This policy covers all the risks of Liability Policy as well as the loss of or damage
to insured's vehicle also
• Temporary spot repairs and/or towing charges to repair workshop & delivery for
repairs up to Rs.1,000 are also paid


• Premium rating for private cars is based mainly on:

o Power of the Engine (by its c.c.): Up to 1000 c.c. engine, between 1000 c.c
and 1500 c.c. or over 1500 c.c
o Value: Minimum value of up to 1000 cc car to be Rs.15,000 , for vehicles
between 1000 c.c and 1500 c.c. it is Rs.20,000 and for vehicles above 1500 cc, Rs.30,000
will be the minimum value
o Geographical Areas where the car is used: For this purpose, the country is
divided in two zones - Zone A comprising of Ahmedabad, Bangalore, Chennai,
Hyderabad , Kolkata, Mumbai, New Delhi and Pune and Zone B - the rest of India
o Age of the vehicle: Tariff classifies vehicles into three categories viz.,
those below the age of 5 years, those between 5 and 10 years and those aged above 10
years. Premiums increase as the age of the vehicle increases
• Extra Benefits on Payment of Additional Premium

The following benefits can be availed on the payment of an additional

1. Vehicles fitted with Bi-fuel system (CNG kit)
2. Vehicles (like jeeps) fitted with trailers or caravan trailers
3. In case of Foreign made vehicles, valuation by an automobile
Engineer is compulsory. If the vehicles are owned by foreign
embassies an extra premium of 30% is charged. In case of damage to
wind screen glasses of these cars, the compensation is limited to 3%
of value or Rs. 30,000, whichever is lower
• Also, by payment of Rs. 25 per employee, legal liability to employees while
traveling or driving (not as paid driver) is covered
• On payment of Rs. 25, a wider cover than the standard liability available under
Workmen's Compensation Act can be availed of
• Personal Accident cover to occupants, up to Rs. 200,000, while travelling in an
insured car, can be obtained on payment of additional premium

Other Conditions

• If the insured is a member of recognized Automobile Association in India, he gets

a 5% discount to a maximum of Rs. 200
• If the insured opts to limit the third party property damage to the amount specified
in M.V.Act 1988 i.e., Rs.6000, he gets a discount of Rs.100.
• If the insured's vehicle is fitted with anti theft device approved by automobile
research association of India , the he can avail a discount of 2.5% of OD premium subject
to a maximum of Rs.500.
• Insured can avail discounts by opting for deductibles. Deductible is the portion of
each and every claim, which has to be borne by the insured.

Liability policy is compulsory and cannot be avoided. Package Policy, not only covers
features of Liability Policy, but also provides cover against the loss of or damage to
insured's vehicle. With the increasing number of accidents on roads and the surging costs
of repairs, this policy is very much recommended

Mothercare policy

• Evidently, only women meet the eligibility criterion for the product.
• From the time of pregnancy awareness, the product becomes active for the female
• The plan is apt for nursing mothers, since it relieves the burden of complications
during pregnancy. This burden may be emotional, monetary and physical.
• Plan targets lower and middle class nursing women.
• The policy also has a feature that it can be extended into a child growth policy.
• It is also for those people who want a safe future for their children.


• The plan is a pre-birth insurance plan, for the unborn child.

• It rests on the basis of compensating nursing mothers who:
Have a miscarriage
Have given birth to a disabled child
Give birth to a pre-mature baby
Have other complications during delivery

• Different compensation slabs and schemes are prepared in due accordance to the
• The premium payment can start anytime after marriage.They can be annual,
quarterly and even monthly when the policy is taken after the 3rd month of the
• The latest can be in the 3rd month of the pregnancy.
• A fully detailed medical examination will be undertaken by a panel of doctors,
before the pregnancy cycle commences. This ensures authenticity of the program.
• Monthly checkup by self employed doctors of the mother for ensuring mother and
child safety.
• Incase of death of child, a post-death investigation will be carried out, so as to
eliminate the possibility of an abortion.
• The policy has 2 plans

o Where on the child’s birth will be insured and in case the birth is
absolutely fine then the companies liability gets over.
o The other plan is where the pre-birth policy is in a combination with the
children growth policy. Here the policy is to be taken on the life of the
parent for the benefit of the child

Child growth policy

The child gets certain amounts of money at every important phase of his life.
1. One has the flexibility to choose the exact age of the child (between 20 to
25 years), at which the policy is to mature. The term of the policy is
determined by Age of the child on maturity - Age of the child on the date
of proposal.
2. Guaranteed additions @ Rs. 50 / Rs 1000 sum assured is paid for every
year for which the policy is in force. This apart, terminal additions
equivalent to 20% of the guaranteed additions payable on maturity.

Bonus Offered

• Reversionary Bonus: Annual bonus will be declared by the company from the 5th
policy anniversary, which would be credited to the policy. This is paid on a
compounded basis.
• Terminal Bonus: This bonus will be payable either on the date of retirement or on
death, provided the policy has been in force for 10 years.

Reversionary bonus and Terminal bonus are not guaranteed and depend on the
performance of the company.

Other Conditions

Entry on marriage
The policy provides an option wherein the child can avail of a permanent life insurance
policy on the date of maturity to the extent of sum assured without undergoing any
medical examination. However this benefit has to be availed with in 6 months from the
date of maturity.

Policy holder has the option to utilise the bonus/gurantee in any of the following three

• Annual Bonus payment

• Bonus accumulated and paid on maturity
• Bonus used to offset Premiums

Plan A

• Most nursing mothers would feel at ease taking on a plan like this as they go
through a lot of physical insecurity.
• Monetarily, the woman would be compensated for the emotional stress she
undertakes during the nine month process.
• Traumatic conditions and momentary stress get siphoned off by the compensation
• Incase of disability to child, the compensation aids in providing for a long term
medical cost associated with treatment.

Plan B (All features of the Plan A and a children growth policy which continus till the
child turns 25)

• On Maturity

Full sum assured along with bonus and guarantee repayment will be payable.

• On Death during the term

DEATH OF PARENT:100% of Face Amount shall be payable and all the

future premiums are waived. These benefits are in addition to the fixed term
benefits that will be paid to the child as per the agreement.

In case of death of life assured before the commencement of risk, the policy is
cancelled and premiums paid are refunded or the policy can be continued and
installments will be received as per planned.

If the nominee is a minor, the beneficiary or the appointee has the option of
making partial withdrawals as per the terms and conditions of the policy (subject
to a minimum policy value

• Critical Illness Benefit
The Critical Illness Benefit rider covers 11 critical illnesses and it pays off the critical
illness benefit on the plan immediately while other policy benefits continue except
hospital Cash Benefit. Claim under this rider is not admissible during first six months of
the policy.
• Hospital Cash Benefit
By the virtue of this rider a fixed amount for every day of hospitalisation is payable.
Amount payable for every day of hospitalisation is specified under the policy.
• Maternity period BenefitThis rider is given to insure the mother during the
maternity period and also on delivery of the baby.

Premium Paid

In case of yearly payments: 6500 per year

In case of monthly premium: 500-600 during the time of pregnancy.
If this policy is continued to the child growth scheme then the following constraints have
to be followed:

• Minimum age of the Parent : 20 years.

• Maximum age of the Parent : 60 years.
• Minimum premium: Rs. 8,000 per year.
• Minimum Sum Assured:Rs.1,00,000.
• Maximum Sum assured: Rs.30,00,000


In case of Death of the child 100% of the Sum assured is paid.

In case of one of the critical illness and the critical illness rider being there 100% of the
Sum assured is paid.
In case of Disability of the child 50% of the Sum assured is paid.
In case of Sissarion of the child 100% of the Sum assured is paid.

In case of an abortion or if any discrepancy is found in the medical check-up of the child
which has lead to the death or any deformity.If the insured's death is due to suicide or
attempted suicide during the first twelve months from the commencement date of the
policy, the Company will only pay the surrender value of accumulation units pertaining
to additional single premium
5.4 MARKETING MIX Marketing Mix

Aura RHCP insurance head office is located in Cannaught Place, New Delhi. The main
reason behind that particular aspect is that CP is the best economic zone in New Delhi,
which apart from being the center of attraction for Delhites is also a place of investment
related activities.
Aura RHCP Insurance

We will have also other branches in the rest of the country. The company will enter the
market with establishing branches in the major cities of the country from where the
business will start and then will penetrate into the rest of the country in later phases.
Promotional techniques are the key ingredients in boosting sales. Our promotional
strategy will revolve around theses following factors:

• Awareness: Our first and foremost priority will be to generate consumer

awareness towards the existence of the company and its approach to the insurance

• Comprehension: Our second objective will be to make the consumer understand

what our company is offering them Apart from innovative insurance services
which includes Life insurance, Mediclaim, Unit linked insurance plans attractive
schemes for the whole family loans etc.

• Conviction: Our third objective will be to develop a mental disposition in the

minds of the customers to buy our service. Studies revealed that more than half of
the advertising and promotion campaign will not be able to create a good mental
outlook in the minds of the consumer.

• Action: The main phase of the plan which is based on the three pillars of
Awareness, Comprehension and Conviction is to propel the customers to open
accounts or purchase our insurance schemes.

Following this approach we will be using these promotional tools:

• Promotion
1. Advertising
• Print ads at various repair shops.
• Scooter spare wheel covers with our advertisements printed on
• Small ads in overdrive car magazine.
• Ads on the internet.
2. Sales promotion

• Trade shows
• Providing incentives to retailers like a small travel package of three
days within India on achievement of half-yearly sales targets.
• Having lucky draw contests.
• Sponsoring some events and small trade associations seminars

3. Public relations

 Donations in times of natural calamities

 Rural development.
 Press kits

Preventing Cannibalization of Promotional Resources

There is a myth among executives that one channel will cannibalize another. Butt, the
truth is that, customers are more loyal to the company that adopts multiple channels. For
successful multi channel marketing, the marketer should send the campaign though the
customer’s preferred channel. He should not replace the customer’s preferred channel for
his convenience. The organization must have knowledge of the existing channels which
customers use their preferred additional channels.

Aura insurance values its staff and follows strategy designed to provide them an all round
development (The Concept of HR Value Proposition):

1. Promote high morale and foster good working relationships among employees by
providing uniform personnel policies and consideration of employee needs;

2. Provide fair and equal opportunity for qualified employees to enter and progress in
service based upon merit and fitness as determined through objective and practical
personnel management methods;

3. Enhance the attractiveness of a career with Aura insurance and encourage each of its
employees to give his/her best effort to the company and our esteemed customers;

4. Encourage courteous and dependable service to our esteemed customers.

5. Ensure that all activities are conducted in an ethical and legal manner to promote
the HR Manager's reputation as an efficient, progressive individual in the company

Physical Evidence

• Architecturally renowned branches which are increasing every year.

• Well equipped and fully furnished branch offices.
• Friendly and Amiable employees.

A service mix can only be highly effective if market offering is highly attractive.

Value Based Prices

Of the market

Product Feature & quality Service mix & quality

In order to stay in the ongoing competition the company is providing an augmented

product that will exceed the customer’s expectation (in the secondary market) on two

1. Price: - The company is planning to price its Policy/Schemes highly competitive and
Aura insurance guarantees that there are no hidden charges as we value our customer’s
money. The company is operating upon the pricing strategy of Value Based Prices.

2. Quality (Services offered): - Another attribute which complete attractiveness of the

market offering. Since we are offering exceeding quality at justifiable & competitive
price we are in a letter position to ward of the competition as most of the competition
takes place at product augmentation level


In order to promote Aura insurance as a stronger brand in India the company will focus
upon building the brand identity which requires additional decisions on the brand
building step. The company believes that a brand is essentially a marketer’s promise to
the customer so that they can establish a mission for the brand and a vision of what a
brand must do.

The company‘s high priority is to build ‘Brand Bonding’ which occurs when customers
experience the company on delivering on its benefit promise

Competitive Branding Strategy - Building the brand identity

The company will portray the cultures and values which it currently holds and its image
as one of the most upcoming insurance company in the world. The company will try to
capitalize on this advantage by implementing the 5 keys in order to have a competitive

1. Creating a brand strategy

The company wants to market itself on a local scale with the commitment to
position itself with its own unique corporate identity and to manage its image.

2. Managing the brand equity

Perceptions affect the firm’s ability to develop and grow, attain its goals and
ultimately sustain itself. Image begins with a vision of the company. The
company will manage its brand equity with a strategic marketing plan which
encompasses every visual, verbal and behavioral element of business, woven
together into marketing efforts. In words of Tim F Crull, chairman Nestle Food
“Long term brand equity and growth depends on our ability to successfully
integrate and implement all elements of a comprehensive marketing program.”

3. Differentiating the form of competition

Differentiation is that thing which every design firm has, which makes it stand out
from the competitors in a meaningful way. The unique proposition of our business
is that we are offering the best service in the current existing insurance scenario in
India. People like to be taken care of and if they have an insurance agent to take
care of all their insurance and investment needs with trust, there is no other place
than Aura insurance.

4. Created value added perception

The company is focusing on value creation which must be real and tangible to the
target audience. Innovation fueled by quality and customerization will always act
as a powerful differentiator. That’s why innovative services which include Travel,
Health and Mother Care insurance are and privileged insurance services provide
us an advantage over other insurance companies.

5. Maintaining customer base and adding new customers

Nothing is more exciting to most businesses then attracting customers, however

they must value the loyal customers, because they are the most profitable since
they do not consider value of service. They are also a tremendous source of
information (Veryl marketing), thereby expanding our customer base.
Various brand building tools to be used during this process are

1. Public relations and press release

2. Insurance camps
3. Trade shows
4. Event marketing


The company is planning to go for Multi Channel Marketing in order to create larger
impact on the target potential customers.

Multi channel marketing is an effective tool that a marketer can use to develop customer
loyalty for his brand. Personalized multi channel marketing is much more effective than a
traditional campaign. The response rate is more in case of personalized multi channel
marketing as compared to its investment.

The prime objective of multi channel marketing is to reach different times in different
way. It is one of the most successful marketing strategies. The use of multiple media
helps an organization to be top of the mind at the time of purchase.

According to one research, 69% of consumers prefer highly personalized and 31% prefer
none personalized in case of direct mail and email. 78% prefer highly personalized
messages and offers that are unique to their needs and 22% prefer non personalized
message and offers that everyone can avail of irrespective of their needs?


The new trend in marketing is the use of prospect and customer data to sort out the target
mass from the data to develop personalized marketing campaigns among a wide range of
media channels. For the success of the campaign, it should reach customers in a
sequential and consistent manner. Personalized communications acts as a competitive
advantage for the company that adopts it. As personalized offerings increase from one to
seven, the response rate increases from 4.7-14% according to survey conducted by yes
mail in July 2002. The second important element for effective campaign is regular
communication through various media channels. According to a research study by AMR
research in July 2002, email followed by other direct communication, increase the
response rate up to 5-15%, due to multiple effects of the multimedia channel.
The various tools used during the Multi Channel Marketing exercise are;

1. Advertising (Business Buyers and Retail Market)

• Motion Pictures
• Audio Visual Displays
• Packaging inserts
• Brochures and booklets
• Symbols and logos
• Print ads
• Point of Purchase Displays (POP’s)

2. Sales Promotion

• Premium and gifts

• Trade shows
• Rebates
• Personalized Emails
• Telephone promotion
• Exhibits

3. Public Relations

• Press kits
• Speeches and seminars
• Charitable donations (CSR)
• Events
• Publications (Investment Journals etc.)
4. Personal selling

• Insurance Fair and trade shows

• Catalogs

5. Direct Marketing

• Catalogs
• Mailing (E –mails)


In such a customer oriented market following a strategy based solely on Customer

Centric Approach is required and CRM will not only allow the specific platform for this
particular requirement but will provide us with a structured database which can help us in
better targeting.

The key to successful CRM campaign are:

• Data and content management: The key to an effective marketing campaign is

acquiring and maintaining good prospect and customer data. This data helps the
process of the segmentation of prospect and customers for delivering personalized

• The quality of email list: The email campaign is much more effective when
sender knows detail information like purchase history, registered products or
stated preference of the recipient. This knowledge helps the marketer to send
customized email to recipients. This type of customized service can be extremely
helpful because most investors work online.
• Design and measurement of email: The email should be linked with certain
desired customer behavior links and also the link with registration and purchase.

• Consistency with other campaign and corporate branding guidelines: E mail

should contain rich text or html based email for recipient attention and use of
familiar branding for a greater response rate.

• Frequency of communication: The company is keeping tab on the overuse of

email. It must keep an option of interaction channel to alter or discontinue email
subscription for recipient convenience. In additional to direct email, email
newsletter is also effective means to communicate with both prospects and new
customers. A newsletter develop credibility and loyal among customers by
providing useful information.


In order to live up to the expectations of customers and fulfill our values regarding
customer satisfaction thereby making us a complete CRM company, Aura Insurance has
taken these steps to ensure better bonding between its consumers and the company.

 Braille and large-print policy updates and information

You can receive your policy letters, brochures and updates in Braille or large-
print formats.

 Premium reminders
Premium reminders can be sent through various new-age communication
channels like emails and SMS
 Online payment premium
An option online payment is provided to the customers
Reader services
You can have important insurance documents read to you by contacting your local
insurance center or online account centre. Because location hours vary, we
suggest that you schedule an appointment if requesting reader services with a
insurance center agent.
6. Human Resource

6.0 Human Resource Office

At Aura insurance, the HR manager has to take care of lot of responsibilities. He/she
enjoys a direct link with the CEO, who is in contact with the department all the time,
through his private secretary. It is a very important responsibility, of which he/she has
been made in charge of and is expected to discharge them to his fullest of his/her

6.1 Recruitment & Selection Policy

The recruitment and selection decision is of prime importance as the vehicle for obtaining
the best possible person-to-job fit which will, when aggregated, contribute significantly
towards the Company's effectiveness. It is also becoming increasingly important, as the
Company evolves and changes, that new recruits show a willingness to learn, adaptability
and ability to work as part of a team. The Recruitment & Selection procedure followed at
Aura insurance ensures that these criteria are addressed.
The Company Recruitment and Selection Policy are:
(a) Fair and consistent;
(b) Non-discriminatory on the grounds of sex, race, age, religion or disability;
(c) Conforming to statutory regulations and agreed best practice.
(d) Ensuring that the policy aims are achieved.

6.1.1 The Recruitment Process

The following procedure is used when a post is filled at Aura insurance. The appointing
manager must:

1. Define the job -

(a) If it is an existing post, whether an exact replacement required or is it an opportunity
to revise the requirements.
(b) If it is a newly established post, the exact requirements should be precise, and an
appropriate job description needs to be made, in consultation with the appropriate
(c) All the technical details required in the job must also be defined with the job and the
required training must be provided.

Department Head, in relation to the grade and salary.

Complete a Job Vacancy Form which confirms:

(i) Details of the post, final approval from the appropriate Department Head;
(ii) In the event of the job being newly established, the approval of the CEO, and
confirmation from the Finance Officer, that funding is available.
The Job Vacancy Form needs to be sent to the HR Department. No vacancy can be
processed without the HR Department’s authorization.

(d) Ensure the Job Description and person specification are up-to-date. Contact the
Human Resources Department for advice / any assistance in completing these.
(e) Collate an information package appropriate for the post. This package should include:
(i) job description and if appropriate, the person specification
(ii) information on the department
(iii) information on the Company
(iv) terms and conditions of employment

It is important that this pack is carefully put together in order to present a professional
image of the Company, therefore out-of date or poorly presented information is not
(f) Discuss with the Human Resources Department / appropriate Department Head the
most effective means of obtaining suitable candidates. The following options should be
explored (in this order):
(i) Internal advert within the Company
(ii) Examination of previous applications, or those held on file within the Human
Resources Department
(iii) External advert within the job centre
(iv) External advert in the local press
(v) External Advert in Automobile Journals
(vi) External advert in the National press
(vii) External advert in the appropriate technical / professional Journal
(viii) In senior posts the use of a recruitment agency
(g) Design the advertisement. All advertisements must contain as much information as
possible to ensure the correct recruitment group is targeted and reduce unsuitable
applications, while remaining as cost-effective as possible.
(h) External adverts will be submitted to the appropriate Department Head / senior
manager for approval before being placed.

6.1.2 The Selection Process

Appropriate selection procedures must be used for each post. Procedures may vary, at its
simplest this may involve a straight forward interview and skills testing. For more senior
posts psychometric testing, presentations to the interview panel on a chosen topic and/or
a series of individual interviews on various topics may be included.

The appointing manager will approach relevant people to assist with short listing and
interviewing. At least two people should be involved in short listing and sit on the
Interview Panel.

The application forms received by the closing date will be forwarded to the appointing
managers for short listing. Applicants must be chosen against the Person Specification. It
is the responsibility of the appointing manager at this stage to record (in writing) the
reasons why an applicant is not short listed. All papers must be returned to the Human
Resources Department / Company Administration Office, who will invite the candidates
for interview, obtain references and make the necessary housekeeping arrangements for
the interview. This will include timetabling the interviews and arranging Occupational
Health / Company Doctor Medicals if appropriate. Candidates who have not been short
listed will also be informed.

At least one week prior to the interview, each panelist will receive an interview pack
(i) Copies of application forms / resume’
(ii) Blank interview report forms;
(iii) A copy of the job advertisement;
(iv) A copy of the job description;
(v) A copy of the person specification
The appointing manager will:
(i) Decide on the interview format and determine which areas to concentrate on
with the questioning;
(ii) Decide on who will chair the Interview Panel;
(iii) Receive the references for candidates from the Human Resources Department

Company Administration Offices, and be responsible for ensuring the confidentiality of

these, and for their safe return to the Human Resources Department / Company
Administration Offices for destruction.

a. At the interview, the appointing manager will ensure that the Interview
Report Form is completed as fully as possible. When interviewing, they
will ensure that Equal Opportunities legislation is strictly adhered to, with
no discrimination shown on the grounds of sex, religion, age, disability or
ethnic origin.

b. When all candidates have been interviewed, the panel will decide on the
best person for the post. The appointing manager will arrange to inform
the successful candidate as soon as possible, agreeing a commencement
date and starting salary.

c. All interview packs should be returned marked "private & confidential" to

the Human Resources Department / Company Administration Offices

d. Upon return of the Interview Report Form, the Human Resources

Department / Company Administration Offices will:
(a) Telephone all unsuccessful candidates with outcome of interview
within one working day, this will be confirmed in writing;
(b) Write to the appointee, offering the post providing satisfactory
references and health clearance initiate a personnel file and computer
entry for the new member of staff;
(c) notify the Manager if the appointee refuses the offer, or if there are
any other details to be cleared. Deal with any requirements for removal
expenses or the finding of temporary accommodation for the

The Human Resources Department / Company Administration Offices will arrange, in

conjunction with the appointing manager an individual programmed of induction for the
new start which will be arranged and agreed at least one week before the appointee

6.2 Employee Policy

Aura insurance highlights the following points in its employee policy:


a. A newly appointed full-time employee will serve a probationary period of one hundred
twenty (120) calendar days, except for those positions that have been granted a longer
probationary period by the HR Department . A full-time employee hired into a position
with a longer probationary period will be notified prior to induction.

b. A newly appointed part-time employee working a portion of each workday will serve a
probationary period of one hundred twenty (120) calendar days.

c. A newly appointed part-time employee who works an irregular schedule or fewer than
the standard number of days each week will serve a probationary period of seven hundred
(700) hours worked.

d. Time spent on inactive pay status or non-paid leave of absence will not be counted
toward the completion of the probationary period.
a. An employee who has successfully completed a probationary period in his/her current
position may be considered for a promotion to a higher classification.
b. A current employee will be considered for promotion to a vacancy only when he/she is
determined by the Appointing Authority to be fully qualified for the position.
c. An employee who has been promoted to a higher classification will serve a
probationary period as described earlier.
d. An employee serving a probationary period after a promotion may be returned to
his/her former position (or one that is substantially similar) and rate of pay at any time
during the probationary period if work performance, behavior and/or attitude is not

a.) Each Appointing Authority will maintain official personnel files for the employees
that work in that Office. Files will include, but are not limited to: employment
application; references; individual employment data; performance evaluations; records
pertaining to transfers, promotions, demotions, layoffs and termination; documents
relating to pay and fringe benefits; disciplinary actions and documentation of training
b.) Personnel files, except medical records, are public documents and are subject to
inspection by the public in accordance with the applicable laws.
c.)Personnel records will be retained permanently. After an employee leaves
employment, the records may be stored in microfilm.
d.) An employee may arrange a time to examine his/her personnel file by giving the
Appointing Authority a minimum of one (1) day's notice of the request. Such
examination may be made on non-work time or at some other mutually agreed upon time.
The employee may not remove the personnel file from the office, but may request a copy
of any items within the file. The employee will be required to pay the established rate for
each copy requested.
e.) When a member of the public makes a written request to examine an employee's
personnel file, the Appointing Authority or his/her designee will arrange an appointment
for the individual to review the file in the Appointing Authority or his/her designee's
presence. The employee will be notified of the request. Confidential information as
defined in the law will not be released.
f.)Each employee is responsible for maintaining the following current information on file
by notifying his/her supervisor of changes in: name, address, telephone number,
emergency contact, marital status, tax exemptions, affiliation with any branch of the
armed services, licensure (if relevant to the employee's job) and current information on
dependents and beneficiaries of health or life insurance policies.


a. The hours of work including the work day, work week and work shift for employees
shall be determined by the HR Department.
b. HR Department may permit or request that an employee work "flex time" to promote
efficiency or better accommodate the needs of the department and/or the public. The use
of "flex time" does not increase or decrease the total number of hours an employee is
scheduled to work. Flex time merely results in the employee beginning or ending his/her
work day at times that are earlier or later than his/her regular shift.


a. Each employee scheduled for a minimum of an eight (8) hour day is entitled to an
unpaid lunch break. The length of the lunch break and time the break may be taken will
be set by the employee's supervisor.
b. An employee may not work through a lunch break in exchange for arriving at work
late or leaving early, unless expressly authorized by the supervisor.
c. An employee will be relieved of all duties and may not stay in his/her work area during
any unpaid meal break.

a. Generally, there are no formal work breaks during the course of the day. An employee
who must take an unscheduled break from his/her duties must ensure that there is
adequate coverage in the department prior to leaving his/her work area and must keep the
time away from his/her duties to a minimum. Such unscheduled breaks should not occur
on a frequent or regular basis.
b. Certain departments may have formal work breaks. In such cases, the HR
Department will establish the length of the work break and the time that the break may be
taken. Formal work breaks may not be taken at the beginning or end of the shift or be
used to extend a lunch break. Formal breaks may not be accumulated and used at a later


Government of India law requires that all employees contribute to EPF unless they
contribute to another recognized provident fund. Eight and one-half percent (8.5%) of
each part-tine or full-time employee's gross pay is deducted as a required contribution to
EPF. The employer contributes an additional 8.5% of the employee's gross pay to the
EPF. The stated percentages may change at the discretion of the EPF Board of Directors
or Government of India Regulations.


Central, state, municipal and school taxes will be withheld as required by law. An
employee must complete a tax return form (A-2) at the time of initial employment and
keep the Finance Department informed of any changes in tax payment status.

a. Travel by air, bus or other common carrier must be at the lowest available rate. The
employee is responsible for notifying the carrier of any reservation change or cancellation
at the earliest possible time.
b. Mileage reimbursement for travel in privately owned vehicles will be at Rs.1.20 per
kilometer for 2-wheelers and Rs 5.0 per kilometer for 4-wheelers. The mileage
reimbursement will be deemed to cover all expenses incurred by use of the privately
owned vehicle including oil, petrol, tires, depreciation, insurance and all other expenses
of operation. No reimbursement for mileage will be made unless an employee carries
automobile/liability insurance on his/her vehicle as required by the Company's liability
insurance carrier.
c. When two (2) or more employees are traveling to the same destination, they should
travel together and only one (1) may claim mileage reimbursement.
d. An employee who chooses to use his/her own vehicle for an out-of-state trip will be
reimbursed for mileage at the rate indicated above, but the mileage reimbursement may
not exceed the cost of air transportation at the lowest available rate.
e. Reimbursement for taxi fares, bridge, highway and tunnel tolls, parking and garage
charges may be claimed upon submission of receipts.
f. Prior approval from the HR Department must be obtained for any out of foreign travel.
g. No reimbursement will be made for travel between the employee's home and the
Company offices or worksites.


a. Expenses covering the actual cost of a hotel or motel room will be reimbursed in full
when an employee travels out of the town on official Company business and such travel
requires an overnight stay. Prior approval of the HR Department is required for
reimbursement of lodging expenses.
b. Only business telephone calls will be reimbursed.
c. No reimbursement will be made for entertainment, in-room movies, restocking in-room
snacks, room service, dry cleaning or laundry charges.


a. Medical leave can be taken to care for an immediate family member with a "serious
health condition" or for the employee's own "serious health condition".

b. "Serious health condition" is defined as an illness, injury or impairment that requires:

i) In-patient care in a hospital, hospice or residential facility including any period
of incapacity or subsequent treatment in connection with inpatient care; or

ii) Continuing treatment by a health care provider involving any of the following:
c. A period of incapacity of more than three (3) consecutive calendar days that involves:
i) Treatment two (2) or more times by a health care provider; or
ii) One (1) treatment by a health care provider that results in a regimen of
continuous treatment.
iii) Any period of incapacity due to pregnancy or pre-natal care;
iv) Any period of incapacity or treatment for incapacity due to a chronic serious
health condition;
v) Permanent or long-term conditions for which treatment may not be effective; or
vi)Any period of incapacity to receive multiple treatments either for restorative
surgery after an accident or injury or for a condition that would likely result in a
period of incapacity of more than three (3) consecutive calendar days in the
absence of medical intervention or treatment.
d. Examinations to determine if a severe health condition exists
and evaluations for the condition:
i) Short-term conditions such as illnesses lasting only a few days, elective
treatments not requiring hospitalization or out-patient treatment requiring only a
brief recovery period do not qualify.
ii) For purposes of this section, "immediate family member" is defined as an
employee's legal spouse, parent, son or daughter.
iii) Use of family/medical leave will be recorded in minimum increments of one-
half (½) hour.
e. In the case of a medical or medically-related maternity leave, an employee is required
to use all accrued sick, vacation and other available paid leave prior to being placed on
unpaid status. In the case of family leave, an employee is required to use all accrued
vacation, personal days or other paid leave other than sick leave prior to being placed on
unpaid status. All leave, paid and unpaid, will be included in the twelve (12) week leave
period. If an employee is on an absence covered by Workers' Compensation payments,
and for a condition that qualifies for family/medical leave, paid leave will only be applied
to that portion of the leave not covered by Workers' Compensation.


The primary purposes of a performance evaluation are to:

a) Uniformly and objectively rate an employee's job performance;
b) Provide an opportunity for the employee to recognize and correct specific
performance problems and to clarify expectations;
c) Provide a means of communication between the employee and the Appointing
d) Provide data on which to base promotional selection decisions;
e) Provide a means of determining job efficiency for layoff purposes;
f) Provide a basis to make pay decisions;
g). Reveal conditions that contribute to poor morale or low productivity;
h) Enable the Appointing Authority to detect gaps in his/her own supervisory
performance; and Provide a means of establishing mutually agreed goals and
objectives for the coming period.

All employees are expected to maintain the highest possible ethical standards and to
perform within the laws of the State of Ohio and other policies, procedures, rules and
regulations as may be set forth by the Appointing Authority. This Manual is not all-
inclusive with regard to policies, procedures, rules and regulations. Conduct that
interferes with normal office operations, brings discredit to the office, is illegal or is
offensive to the public or fellow employees will not be tolerated. Any employee found to
be in violation of this section will be subject to disciplinary action, up to and including
termination, and possible criminal charges.


a) A complaint is any disagreement with management about the employment

relationship. A formal complaint exists when an informal resolution to a dispute cannot
be achieved and the employee making the complaint has submitted a written complaint to
his/her immediate supervisor.

b) Complaints are to be settled at the earliest possible step of the procedure. The
employee must proceed through each step of the complaint procedure in proper order and
within the prescribed time limits. Where a complaint cites issues of law that the
individual hearing the complaint cannot address, the complaint will be sent to the
Prosecutor's office for an opinion before proceeding. All time limits stated in this
procedure will be held in abeyance until a response from the Prosecutor is received. A
complaint regarding alleged violations of civil rights (discrimination on the basis of race,
age, religion, sex, national origin or disability) should be brought to the attention of the
Equal Employment Officer
a). A classified employee may be reduced in pay or position, suspended, terminated or
otherwise disciplined by the Appointing Authority for, among other reasons,
incompetence, inefficiency, dishonesty, drunkenness, immoral conduct, insubordination,
discourteous treatment of the public, neglect of duty, violation of departmental
regulations or any other failure of good behavior or for any other act of misfeasance,
malfeasance or nonfeasance in office.
b). An unclassified employee may be removed at any time for any or no reason, and no
reason need be given.
c) The HR Department is obliged to investigate the nature of alleged infractions to
determine if a violation of law or policy has occurred. Employees must provide complete
and accurate information during any investigation.

6.3 Functions

The HR manager is supposed to engage himself in the following functions:-

• Rewriting HR policy handbooks
o Develop HR policy
o Write policy handbooks based on current agency policy in the human
resources management arena
• Reviewing Official Personnel Folders (OPF's)
o Periodic review of OPF's
o Assure accuracy in the event of a reduction in force
o Necessary purging of OPF's
o Counsel employees regarding retirement and/or benefits issues
• Conducting Organizational Studies
o General organizational review studies
o Evaluate the effectiveness of the agency's HR program
o Functional review of HR office to assess current and future needs
o Review of organizational operations to determine most effective/efficient

6.4 Human Resource Strategy

The HR Power

We hire the best in the industry and nurture their development with extensive training and
challenging assignments. At ABC, we promote actively from within the organization to
give our employees the opportunity to excel and advance their careers. We, at ABC, are
extremely proud of the committed and skilled workforce that will constantly strive to
innovate and deliver value to the customer through constant improvement in the product
and service portfolio. Equipped with a highly motivated workforce, ABC has some of the
best technical services and quality products to offer. The workforce includes specialists in
industrial, manufacturing and building automation having strong domain knowledge and
an innate ability to understand various platforms, processes, software applications,
installations and implementations. A state-of-the- art Research & Development cell and
regular training programs will continuously enhance the skills of its people and motivate
them to give their best.

We are your strategic business partners for success.

6.5 Sales Force Utilization

The basic factors on which the sales representatives of Aura insurance. Will work are as
• Prospecting
• Targeting
• Communicating
• Selling
• Informational Gathering
• Allocating

The company will distribute the sales force on territorial basis depending upon the
territorial size. This structure will reflect a clear definition of responsibilities. It increases
the representative incentive to cultivate local business and personal ties. Travel expenses
are also relatively low.



Manager – New Manager – OEM Sales Manager Export Manager

Product Develop. Relations

East North South West

Zone Zone Zone Zone
Sales Sales Sales Sales
Officer Officer Officer Officer

S: - Sales Force

7. Public Relations & Corporate Image

At Aura insurance, the PR office involves lot of action and news. The PR officer, who is
also the in charge of Corporate Affairs, enjoys the limelight. He/she is the public face of
the company. A lot of good media exposure, that in turn benefits the company, is on
his/her shoulder.

7.1 Public Relation Policy

The primary public relations policy of Aura insurance shall be as follows:

1. To evaluate public attitudes and to determine public needs.

2. To execute a program of action to earn public understanding and acceptance.

3. To inform the public of all services offered and to explain objectives,
problems, plans projects and standards.

4. To promote and encourage active participation in the varied services offered to

people of all ages.

5. The Manager and professional staff shall be expected to give talks and to
participate in community activities.

6. All printed publicity; including materials to be used by the press, radio, and
television shall be approved by the Manager.

Recognizing that public relations involve every person connected with the company, staff
members shall be trained to give courteous and efficient service to company
patrons. Aura Insurance urges its own members and every staff member to realize that he
or she represents the company in every public contact.

7.2 Functions
Our public relations and corporate affairs officer perform the following duties:

1. Develop, implement and evaluate communications strategies and programs

designed to inform clients, employees and the general public of initiatives and
policies of businesses, governments and other organizations.

2. Gather, research and prepare communications material for internal and

external audiences.

3. Conduct public opinion and attitude surveys to identify the interests and
concerns of key groups served by their organization.

4. Prepare or oversee preparation of reports, briefs, bibliographies, speeches,

presentations, Web sites and press releases.
5. Develop and organize workshops, meetings, ceremonies and other events for
publicity, fund-raising and information purposes.

6. Prepare and deliver educational and publicity programs and informational

materials to increase awareness of museums, galleries and other tourist

7. Initiate and maintain contact with the media.

8. Act as spokesperson for an organization and answer written and oral inquiries.

9. Co-ordinate special publicity events and promotions for internal and external

10. Assist in the preparation of brochures, reports, newsletters and other material.

7.3 Public Relation Strategy

Aura insurance believes that publicity can:

(a) Create visibility nationally.

(b) Attract sponsors.
(c) Create opportunities for strategic alliances.

The company always tries to leave an imprint on the customer’s memory.

Whenever the people hear the company’s name, they should immediately think
of the key products on offer by the company. Therefore, the PR Department
contacts the media to inform any of the following:

(a) Awards.
(b) Contracts.
(c) Personnel appointments.
(d) Case histories.
(e) Signed articles.
(f) Calendar items.

The PR department makes it a point to regularly pitch the story to reporters for
getting press coverage. The PR Department, therefore, convinces reporters to
write news articles or reviews, which benefit us a lot. The company has built
quite a good rapport with the concerned media persons, who can help it in the

8.Corporate Social Responsibility

For Aura insurance, corporate social responsibility, or 'CSR', means addressing the
expectations of our customers, shareholders, employees and other stakeholders in
managing our business responsibly and sensitively for long-term success.

Our Approach to CSR

Addressing the expectations of our stakeholders in managing our business responsibly

and sensitively for long-term success is what we mean by corporate social responsibility,
or CSR.

We continue to believe that our greatest social responsibility is to be a successful

company. That is the best way of fulfilling our obligations to our customers,
shareholders, colleagues and the world at large.

However, we also know that sustainable success must go hand in hand with the highest
standards of behavior. Living by our principles and values is an Aura tradition and
sharing our success with the communities which we serve is part of that tradition.
Business case for CSR

For Aura RHCP Insurance, good CSR is good business. There are a number of business
reasons for investing in CSR.

The Social Dimension

• Listening to our stakeholders helps us to develop our business in ways that will
continue to appeal to customers, investors, employees and other stakeholders.
• We believe the world is a rich and diverse place. The better our workforce reflects
this diversity, the better we can anticipate and meet our customers’ needs.
• Involving our employees in the community brings many benefits. Our employees
gain in understanding, confidence and self-esteem. And being recognised in the
community as good
• Corporate citizens and employers help Aura Insurance to attract great people who
in turn can provide great service to our customers.
• Education is crucial to the development and prosperity of every country. By
investing in education, we seek to build the confidence and abilities of young
people on whom, as customers or employees, our future business will depend.

The Environmental Dimension

• We believe companies like ours must share responsibility with governments and
citizens for minimizing the damaging effects of human activity — pollution of
land, water and air and the depletion of resources.
• The depletion of the planet’s natural resources on which life depends can only
lead to human conflict. Dependent as it is on political stability, the financial
services industry has a vested interest in helping to provide solutions to these
major challenges.
• Being one of the world’s most upcoming banks means we can sometimes make a
big difference. With that comes great responsibility to ensure our activities are a
force for good. We aim to lend and invest responsibly, avoiding projects where
the potential for environmental damage outweighs the economic benefits.
• Businesses that damage the environment will eventually lose the support and
commitment of their stakeholders and so represent a less attractive credit risk to
our business.
• Initiatives that are good for the environment often make good financial sense too.

Stakeholder views

We recognize that our success and that of our stakeholders go hand in hand. Ultimately,
we depend on — and contribute to — the health and vitality of society and the
environment at large. That’s why our first responsibility is to be a successful company.
Success is the only outcome that satisfies all of our stakeholders.


Our executive Directors lead our engagement efforts with the investment community
through a range of activities and reports including the Annual Report and Accounts
the Annual Review, the Annual General Meeting.


In most of the countries and territories in which we operate, we conduct regular surveys
to monitor customer satisfaction. In our larger businesses, this information is typically
one of the elements used for measuring branch performance and determining individual
We generally seek to respond to customer queries and complaints and use them as
opportunities to learn and improve.


The employee’s views play a vital part in making Aura a great place to work.


We have developed an Ethical Code of Conduct for Suppliers of Goods and Services for
Aura suppliers.

Non-governmental Organizations

We are in regular contact with a number of non-governmental organizations representing

wider society including our Investing in Nature partners WWF, Earthwatch and Botanic
Gardens Conservation International.

We acknowledge the need for more disclosure of the effects of our policies such as
lending, and seek the right balance between transparency and protecting our commercial
and customer interests.
Considering the loan of 40 lakhs and yearly income of 12 lakhs and a 4 year old child we
studied the viability of various policies and schemes for the individual. Calculation of net
disposable income helped in the selection of the following two policies:

1. Child growth
2. Loan repayment

1. Income from Salary
Annual Income 1200000

Loan Amount 4000000

EMI for the loan of 20 years 29116
Yearly payment due 349392

Salary left after payment of loan 850608

Tax at 30 % 255182.4
Salary after tax 595425.6
Yearly Expenses 426000

Disposible income 169425.6

The first policy we offer them are:


1) Suitability
• This is a non-par money back policy that provides guaranteed returns
and is specially designed to meet children's educational expenses at different
life stages. The policy is suitable for parents having children between the age
0-12 children and parents in the age group 20-50 years.

Salient Features
• This is a money back policy where lump sum amounts are paid to the
life assured to fund the educational needs of the child.
• Policy is to be taken on the life of the parent for the benefit of the child.
• Policy is offered in two variants viz., option A and option B. While
option A matures on the child attaining the age of 21 years, option B matures
on the child attaining the age of 25 years. One can choose either of the
options based on their requirements.
• Guaranteed additions @ Rs. 50 / Rs 1000 sum assured is paid for every
year for which the policy is in force. This apart, terminal additions equivalent
to 20% of the guaranteed additions payable on maturity.
• In the event of death of the parent, 100% face amount is paid
immediately and future premium are waived. These benefits are in addition
to the fixed term benefits, which will be paid to child at the specified dates in
the policy.
• In the event of death of the child within the term, policyholder has the
option to continue the policy and receive the fixed term benefits or surrender
the policy.
• In the event of death of the child after the death of the parent, another
person can be nominated to receive the benefits.
• The policy can be customised through 4 riders -Accidental death
benefit, Critical Illness (10 illness), Waiver of Premium (Accidental
Disability) and Term Rider.


Premium paying terms: 21 years

Premium paying modes:

Modes Amt.

Annual Rs. 65800

Semi-annual Rs. 33762

Quarterly 17141

Monthly 5830

PSP 5711

PAYOUT :sum assurd = 2000000

Option A Option B
Child's age Payout Child's age Payout
15 20% of FA 17 20% of FA
17 30% of FA 21 30% of FA
20 50% of FA 23 50% of FA
21 GA + TA* 25 GA + TA*

If the premium is not paid within the grace period for the first three policy
years the policy will lapse. The policy can be revived by providing
satisfactory evidence and paying all due premiums to the date of
reinstatement with compound interest at the rare prescribed.


Guarenteed surrender value: If all premium have been paid for at least 3 full
policy years, the policy acquires a guarantee surrender value. The company
pays this amount if you choose to surrender this policy after first 3 policy

Fixed term benefits:If all premiums are paid on time then fixed term benefits
are received when the child turns the pay out age.

Maturity benefits: Repayment of the sum assured along with bonus and
guarantee surrender value.

Death benefits: The family will receive the entire face amount alon g with the
fixed term benefits and maturity benefit and all future premiums are waived

In case of death of the child insured the insurer could:

• Keep policy in force by the payment of the premium and nominate any
other individual in whom you have insurable interest.

• Surrender the policy and receive the gurentee surrender value.

• Opt to discontinue further premium and keep the policy in force as

reduced paid up value.

The second policy offered would be:

2) Met-Mortgage Protector Single Pay / Limited Pay (MRTA)

IRR=75% (assuming the person dies in the 10th year of paying the

Met-Mortgage Protector Single Pay / Limited Pay is specially designed to protect your
dependents against the liabilities incurred on a housing loan. Available in terms of 5
through 25 years, the Met Mortgage Limited pay version continues even after the
premium paying term is over

Met Mortgage Protector could be the ideal plan for you if you’re looking for -

• An affordable plan that has been designed to help your family repay the outstanding
home loan in case of your unfortunate death.
• Premium payment options – single pay or limited pay

Tax Benefits
The Premium paid under this plan will qualify for the rebate under Sec 88 of the income
tax act 1961 and the returns are fully exempt under Sec 10 (10 D).

Premium paying options

You have the choice of paying your premium either in yearly, half-yearly or quarterly
modes, depending on your convenience.

Insurance against loan repayment:

Age 28
Term 20
amount 4000000
Interest 8.25%
PPT 13
Premium 8134

Policy Year Coverage amount for the policy Year

1 4000000
2 3914983
3 3822952
4 3723329
5 3615486
6 3498747
7 3372376
8 3235581
9 3087499
10 2927201
11 2753678
12 2565839
13 2362504
14 2142393
15 1904124
16 1646197
17 1366991
18 1064751
19 737576
20 383409


THE POLICY under Sec 88 of the income tax act 1961 and the returns are fully exempt
under Sec 10 (10 D).

This is better than any other investments because:

• The returns provided by these policies are higher and less risky compared to any
security.( as signifies by the IRR)
• The features provided are suitable to the individual’s need whose major needs are
to secure the life of his 4 year old kid as well as the repayment of the loan.
• Provides emotional benefits along with financial security.