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AURA RHCP INSURANCE

CARPE DIEM 2006

Mount Carmel College

Banglore

Submitted by

Red Hot Chilli Peppers



CONTENTS

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





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

Our guiding strategy will

be the M

Framework, which

analyzes the hard and the

soft factors of a company.

1.6.1 Our Guiding Strategy



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

operates.

• 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. AuraRHCP 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

1992.

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

revenues

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



s

s

The initial management team consisted of the following members:

Anshuman Chawla – MD

3. Management Summary

Board of

VP Retail VP Corporate VP Strategic VP Customer

External AuditInternal Audit

Managing

VP Marketing & VP Technology VP Human

PARENT ORGANIZATION SUPPORT

Legal Advisors

Strategy



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.

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 structureAura 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.

3.1 Aura RHCP Insurance and Aura Bank



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

Aura Bank LimitedHong Kong SAR, with anextensive network throughoutAsia-Pacific.

Hang Seng insurance Hong Kong SAR



Subsidiary Primary area of operation

Limited

Aura RHCP insurance plc

United Kingdom

Aura investments France

Aura HouseholdInternational, Inc.

US

Aura Bank USA N.A. New York State in the US

Aura Bank Brasil S.A.-Banco Múltiplo

Brazil

Aura Private BankingHoldings (Suisse) S.A.

Switzerland, Hong Kong SAR,Monaco, Luxembourg, UnitedKingdom, Singapore and theChannel Islands.

Grupo Financiero Aura,S.A. de C.V.

Mexico

GLOBAL MARKET

4. Industry Analysis

4.1 GLOBAL MARKET



MARKET PERFORMANCE:

The insurance sector is growing at a high rate. The leading insurance markets in theworld 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 globalinsurance map. It accounts for over 2.13 % of the global insurance market.

Emerging Markets(Total Premium, figures in $billion)

Taiwan 17.3China 13.4India 7.2Hong Kong 6.1Israel 5.8Singapore 5.0

INDUSTRY SEGMENTATION

♦ LIFE

♦ NON-LIFE

4.2 INDUSTRY SEGMENTATION



♦ 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%.

INDUSTRY PERFORMANCE4.3 INDUSTRY PERFORMANCE



♦ Since 2000 , life and non-life insurance business has followed different paths. Non-life premiums increased because of better prices . Higher non-life premiumsand underwriting discipline improved underwriting results

♦ The growth rate of the non – life insurance business has ranged between 1% and17% 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 rapideconomic 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 policies.

• The penetration in the Asian market is the 4 th largest. The major Asian playersattracting the foreign players are China, India and South East Asia( Vietnam).InAsia both life as well as non-life insurance business are highly concentrated inChina, India and Vietnam.

• The insurance markets in Asia-Pacific vary greatly, ranging from relativelyundeveloped 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 andSingapore are very open, while others such as China, India and Taiwan are tightlyregulated.

• The life insurance business is enjoying the fastest growth in Asia-Pacific and thegrowth is strongest in China and India. Non-life insurance has seen strong growthin countries such as New Zealand , Malaysia and also India due to the increasingaffluence 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) willcontinue to lead the region's insurance markets with average annual growth rates of 13%and 8% respectively until 2015

INSURANCE INDUSTRY IN INDIA4.4 INSURANCE INDUSTRY IN INDIA



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 strengthensthe risk taking ability. It is estimated that over the next ten years India would requireinvestments 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 thecountry.

• According to government sources, the insurance and banking services'contribution to the country's gross domestic product (GDP) is 7% out of which thegross premium collection forms a significant part.

• For the period up to October 2006, the premium growth for both LIC and privateinsurers is expected to be well above the 50% mark. The recent stock marketcrash will drive the retail investors, to invest in insurance policies as it isconsidered 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. Totalvalue 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 lifeinsurance schemes, the penetration rates of health and other non-life insurances inIndia 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 thegovernment.

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, inthe 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 businessmarket share of 11.5% of the total market.

• Bajaj Allianz Life was in second place amongst the private players, with amarket share of 5.6%

• HDFC Standard Life with a market share of 4.2%. Birla Sun Life slipped tofourth position, with a market share of 2.9%, due to an 8.5% fall in its weightednew business premium income during April to December 2005 over thecorresponding 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 increasedto approximately 27% in the period April to December 2005, up from approximately 20%in the corresponding period in 2004. The private non-life insurers achievedapproximately 54% growth in gross new business premium income in the period April toDecember 2005 over the corresponding period last year.

Main players in the market:

• ICICI Lombard is the leading private sector non-life insurers, with market sharesof 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 toglobal banks seeking market entry. Entrenched domestic competitors and restrictiveequity ownership ceilings imposed by the government create obstacles for banksestablishing a foothold in India. Primary challenges include tough competition andgovernment 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 anattractive destination offering high growth potential to international insurers.

• Rising per capita income, increased life expectancy, low insurance penetrationrates 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 paidcloser attention to India in a bid to exploit the growing business opportunities

• With the exception of Japan, where sales of recent available standard policiesdeclined over the past six months due to the effects of a saturated market, allinsurance markets in the region saw business expansion with the launch of new products



• In Asia, there is a strong correlation between insurance penetration and thestandard 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 thanUS$235 million and accounts for 2% of India's gross domestic product (GDP)

• Among those that have reportedly entered into strategic alliances or are preparingto 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,YasudaFire and Marine and Zurich.

• The CII Expert Group estimates non-life premia to rise to 4% of the grossdomestic capital formation by the year 2010 as compared to around 2.5%currently.

• 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. Totalvalue of the Indian insurance market (2004-05) is estimated at Rs. 450 billion(US$10 billion). According to government sources, the insurance and bankingservices' contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The funds availablewith the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP.

• 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-lifeinsurances in India is also well below the international level. These facts indicatethe of immense growth potential of the insurance sector.

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

For protection of the domestic industry, avoid hyper competition and overcrowding,seepage of insurance premia out of country and limits on foreign participation thefollowing 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 provisionfor dilution of Indian promoters’ holding over a specified period take cognisanceof such concerns.

• Competitive forces will propel erstwhile monopoly insurers to focus seriously onissues 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 withthe continued regulation of pricing is expected to allow the incumbent insurerssufficient time to adapt to changing market conditions and evolve adequately tomeet the competitive pressures.

THE BASIC IRDA REQUIREMENTS FOR A FOREIGN PLAYER:

• 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

GAP ANALYSIS

The Indian insurance industry has been a target for many foreign investors because of increasing liberalization and globalization and also because other major growing marketshave 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 privateand public on the other hand in the non-life insurance our major competitor willonly be Bajaj Alliance and ICICI Lombard.

• The non-life sector is experiencing a steady uptrend in interest rates and a stableinvestment 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 annualaverage of 15.5%, with the private sector alone growing by 55%.

• Non-life insurance business is picking up due to the increasing affluence of theregion'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.

TRAVELING

We will focus on the traveling insurance because the traveling insurance is becoming akey consideration due to the following reason:

4.5 GAP ANALYSIS



• 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 andextra leisure time personal travel market will continue to grow.

• The spending on travelling is also increasing For instance, according toMasterCard Asia-Pacific research shows, in 2005, the retired travellers in themiddle income bracket of US$30,000 to US$100,000 spent US$17.5 billion andthey are projected to spend US$23.6 billion by 2014. Countries that have beenaccounted 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, especiallyrelated to travelling to exotic countries. The increasing aged population accompanied bythe changing trend will act as basic driver of demand for the product and the trend is

expected to continue in the future.

HEALTH

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 toa large number of people

The health insurance will be changed from providing cover for treating sickness toensuring 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 alsoincorporate preventive health care into the main system. Hospitals, different servicecentres and diagnostic centres needs to be accredited.

In India, approximately 80% of the total health expenditure comes from self-paidcategory as against government’s contribution of 20-30 %.These 80% will be lookedafter 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), arecovered 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 thegrowing 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 aforeign player have decided to shift and develop non-life insurance, centered on healthand traveling policies.

GAP MODEL OF SERVICE QAULITY

.



SERVICE QUALITY

The expectations of a customer are the essence of any service. A service provider has tomake 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 aservice provider to be extremely flexible. Today’s educated customers demand ahigh degree of customerization. This lead to a gap between the service provider’sability 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 havecoming in to a service experience; perceptions reflect the service as actuallyreceived. The idea is that firms will want to close this gap- between what isexpected and what is received- to satisfy their customers and build long- termrelationship with them. To close this all important customer gap, the modelsuggests 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 thefirm’s lack accurate understanding of exactly what those expectations are. A gapexists between company perceptions of customer expectations and what thecustomers 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 satisfaction.

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 management.

Gap 2



Even if an insurance company does have a clear understanding of its customer’sexpectations, there still maybe problems if that understanding is not translated intocustomer driven service designs and standards. This situation can be caused bythese three factors:

Resource ConstraintsMarket ConditionManagement Indifference

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

Gap 3

Once service designs and standards are in place, it would seem that the firm is well on itsway 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 actuallymatches 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 aninsurance 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, thefirm 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. Inorder to reduce this particular gap, our company is taking the following steps:

Advanced communication exercises between the marketing and service personneldepartment.

Follow the concept of “under-promise over delivery”.



Money can alter a customer’s expectations at the speed of light. A 6-year-old loyalcustomer may close his policy due to a decline in service. In insurance services thecustomer expectations are constantly rising driven by personal interest and at timescircumstances. Some people see investments as a source of livelihood, investing intheir 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 mostimportant of which is increased return on assets (ROA). One of the best ways to increaseROA, assuming a constant asset base, is through fee income. Banks that build fee incomecan cover more of their operating expenses, and one way to build fee income is throughthe sale of insurance products. Banks that effectively cross-sell financial products can

leverage their distribution and processing capabilities for profitable operating expenseratios.

By leveraging their strengths and finding ways to overcome their weaknesses, bankscould change the face of insurance distribution. Sale of personal line insurance productsthrough banks meets an important set of consumer needs. Most large retail banksengender a great deal of trust in broad segments of consumers, which they can leverage inselling 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 enjoysignificant 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 themost of these advantages are able to penetrate their customer base and markets for above-average market share.

4.6 NEED ANALYSIS



Other bank strengths are their marketing and processing capabilities. Banks haveextensive experience in marketing to both existing customers (for retention and crossselling) and non-customers (for acquisition and awareness). They also have access tomultiple 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 morethan 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 feeincome.

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, highquality product and delivery at doorsteps.

Most obviously, banks own proprietary databases that can be tapped for middle-marketwarm leads. In addition, they can leverage their name recognition and reputation at bothlocal and regional levels. Strong players also excel at managing multiple distributionchannels, 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" channelsunderwriting, and managing long-tail insurance products. This is done using insurancecompanies competencies.

Thus AURA bank plans to enter the market through a joint venture with a leading bank inIndia, RHCP and this collaboration will help us to use RHCP’s reputation and multiple

4.7 BANCASSURANCE



distribution cannels and our own competency for developing insurance products andhence establish a strong and profitable insurance company.

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.

5. Marketing Strategy



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 increaseour market share.

THE ENTRY PHASE



THE GROWTH PHASE



THE STABILITY STAGE



Geographical

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

Demographic

Age 18 – 75+ yearsFamily LifeCycle

Bachelor, Newly Married, Full Nest (I, II &III),Empty Nest (I & II)

Gender Male, FemaleIncome Above Rs. 50,000/- p.a.

EducationGeneration Baby Boomers, Generation Xers, Gen Yers.Social Class Upper Upper, Lower Upper, Upper Middle, Middle and

Lower Middle Class

Psychographic

Life style Saving Oriented, Investment Oriented, LuxuryOriented

Personality Ambitious, Compulsive, Caring

Behavioral

Occasions Regular occasions, Special OccasionsBenefits Quality, Social Status, Service, SecurityReadiness Stage InformedAttitude Positive

5.1 TARGET MARKET SEGMENTATION



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.

5.2 POSITIONING



• 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.

LIFE INSURANCE PRODUCTS

CASH BACK POLICY: AURA LIFE PLANNER

SUITABILITY

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 payableat 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 thefamily and acts as tool for old age provision.

FEATURE:

• 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 1520 years term 14

25 years term 13

30 years term 12

Max age at entry:

15 years term 55

5.3 THE PRODUCT MIX



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 policyanniversary and will be payable either on the date of maturity or on earlier deathof the Life Insured

• The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthlymode 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 policyholder.

Benefits

On death

• Within the term Full Sum assured +Bonus+Guaranteed Additions(Guaranteedadditions 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

1st Cash Benefit2nd CashBenefit

3rd CashBenefit

4th CashBenefit

On Maturity

10% 15% 25% 25% 50%

• Minimum Face Amount: Rs. 50,000.



Exclusions

• 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 isrestricted to the extent of refunding the premium(s) received without interest, if any, less any expenses incurred by the company.

Riders:

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 takentogether)

Permanent Total Disability 100% of the Sum Assured (subject to amaximum of Rs.5 lakhs on all policies takentogether)

3) Critical Illness Benefit:The Critical Illness Benefit rider covers 11 critical illnesses and it pays off thecritical illness benefit on the plan immediately while other policy benefits continue

except hospital Cash Benefit. Claim under this rider is not admissible during firstsix months of the policy.

4) Hospital Cash BenefitBy 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 InsuranceAdditional cover in the event of death happening within the term

Plans:



1) Cash care total: It includes Accidental Death Benefit, Accidental PermanentTotal/Partial Disability Benefit,Critical illness and Hospital Cash Benefit are builtin 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 PermanentTotal/Partial Disability Benefit. This Combination can be excluded and includedagain at each policy anniversary by paying additional premiums or for discount in premiums.

3) Cash care protect: Accidental Death Benefit, Accidental Permanent Total/PartialDisability 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, noadditional premiums need to be paid. Combination can be included and excludedagain at each policy anniversary.

FOR CHILDREN: TWINKLING STARS

Suitability

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

Features

Policy is to be taken on the life of the parent for the benefit of the child1. 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 islater

2. One has the flexibility to choose the exact age of the child (between 20 to 25years), at which the policy is to mature. The term of the policy is determined byAge 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 whichthe policy is in force. This apart, terminal additions equivalent to 20% of theguaranteed additions payable on maturity

• The policy provides an option wherein the child can avail of a permanent lifeinsurance policy on the date of maturity to the extent of sum assured withoutundergoing 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 payment2. 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

Benefits

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 thechild as per the agreement

•

In case of death of life assured before the commencement of risk, the policy iscancelled and premiums paid are refunded.

Two options are available:

• Sum insured plus the policy value is paid to the nominee and the policy isterminated.

• The units can be held till the maturity date and these continue to earn investmentreturns. 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 (subjectto a minimum policy value

Exclusions

If the insured's death is due to suicide or attempted suicide during the first twelve monthsfrom 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



RETIREMENT POLICY

Suitability

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.

Features

• 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 youreceive depends on the premium you pay till the stipulated date and the optionyou 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 section80CCC(1) of IT Act ,1961.

• The plan provides for 4 annuity options:1. Life annuity: annuity for life2. 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 withreturn of purchase price on death to the beneficiary4. 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 aguaranteed 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 alreadyallocated 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 acompounded basis.

• Terminal Bonus: This bonus will be payable either on the date of retirement or ondeath, 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 minimumretirement age of 50 years.

Exclusions

• 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 belimited to the refund of premiums paid less any indebt ness without interest.

Benefits

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 basisof the sum assured plus guaranteed additions plus vested bonuses (if any) as onthe date of death.

On survival

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

type of option chosen

Riders



• Accident and Disability Benefit

• Critical Illness Benefit

• Major Surgical Assistance Benefit

• Level Term (Double Life) Insurance Benefit

RURAL LIFE POLICY

Suitability

The policy has been designed keeping in mind the needs of rural people. It providesinsurance 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



Benefits

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 ondeath 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

Suitability

• The policy provides for family protection as well as old age provision. Further

sums are guaranteed, Covering the contingencies of both surviving to maturityand 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 isearlier.

• Premiums are payable till the end of payment term chosen or death which ever isearlier. However in case of plans where Waiver of Premium benefit has beenavailed, 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 theadditional benefits which can be availed by paying marginal additional premium.Riders available under the plan are:

Benefits

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.

Riders

• Double Sum Assured (DSA):This benefit provides for an additional amountequivalent to the basic sum assured in case of unfortunate death.

• Accidental Death Benefit (ADB):This benefit provides for an additional amountequivalent 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 standwaived in case of total disablement of the life assured. The waiver applies duringthe period of total disability.

•

Critical Illness (CI):This benefit will provide for an additional amount equivalentto the basic sum assured on insured contracting to any of the six specified criticalillnesses. Critical illness benefit will be paid on insured surviving 30 days fromthe 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 tomaximum 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).

Exclusions

• The company will not be liable to pay the benefit amount, if the death of thelife assured is caused directly or indirectly by suicide within one year of thedate of commencement, or the date of issue of the policy, if later.

• Intentionally self-inflicted injury or attempted suicide, irrespective of mentalcondition.

• 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 commerciallylicensed aircraft.

• Taking part in any act of a criminal nature.

Non Life Insurance



AURA MEDICAL PLUS

Health care cost are high and getting higher. Who will pay your bills if you have aserious accident or major illness? Most of the times we are unprepared for thesedifficult times, emotionally, as well as financially. AURA MEDICAL PLUS

Policy, protect you and your family in case you need expensive medical care. Italso offers you cashless benefit & medical reimbursement for hospitalisationexpenses.

Suitability

• Any one in the age group of 5 to 75 years can take the policy. Children in theage below the age of 5 years can also be covered from the age of 3 monthsonwards provided one or both of the parents are covered concurrently.Policy provides for the cash benefits in the event of insured person(s) beinghospitalised due to sickness or accident. It also offers you cashless benefit andmedical 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 anddependent parents.

• There is no limit on the number of children to be covered. The minimum agefor the children is 3 months with maximum being 21 years.

• Cashless facility: With Health Guard, the member has access to the cashlessfacility at various hospitals across India (Subject to exclusions and

conditions).• The member can opt for hospitals besides the empanelled ones, in which case

the expenses incurred by him shall be reimbursed within 14 working daysfrom submission of all the documents.

• Premium paid upto Rs.15,000 per annum is eligible for Tax benefit u/s 80 Dof IT Act.

• There is no need to submit medical bills. Only a discharge certificate issufficient for admitting the claim.

• Waiver of pre-existing diseases: Pre-existing diseases are normally excludedat the time of taking the policy. however, from 5th year onwards it is coveredif 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.

Benefits

• Policy provides financial assistance in case of hospitalisation following anaccident 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 canavail of the entire policy limits.

• Policy holder can avail cash less hospitalisation facility in the hospitals whichcome in the network of AURA RHCP INSURANCE.

• Premiums paid under the policy are eligible for tax rebate under section 8080-D of the Income Tax Act 1961.

• Pre hospitalisation and post hospitalisation expenses for 30 days and 60 daysrespectively are payable

Premium Table

Indicative Premium table. All the premiums are per annum

Age(Yrs)Sum insured(Rs)

90 days - 25 Yrs 26yrs - 40yrs 41yrs - 45yrs 46yrs - 55yrs

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

Exclusions

• 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 policy

• Certain disease such as hernia, cataract, piles, sinusitis shall be covered after awaiting 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.

RidersCritical Illness Benefit – HealthAssure provides you cover against the following sixcritical 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 (CriticalIllness Sum Assured) will be paid to you the flexibility to choose from the two options toclaim your Critical Illness benefits.

Lump sum where the whole amount can be collected by the person when the illness isdiagnosed. 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 dateof 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

report

• Any other relevant hospital records

List of hospitals in The network of AURA RHCP INSURANCE.Bangalore

1. Agadi Hospital & research Centre2. Hosmat Hospital

3. Lakeside medical Centre & hospital

Chennai

1. Miot Hospitals2. Devaki Hospital Limited

3. Sankara nethralaya Medical Research Foundation



4. Mallya Hospital5. Seventh Day Adventist Medical Centre

4. Sooriya Hospital5. Sri Ramchandra Medical Centre

Hyderabad

1. Apollo Hospital2. Care Hospiral3. Kamieneni Hospitals4. Mythri Multi Speciality Hospital

Kolkata

1. Kothari Medical Centre2. B.M. Birla heart Reaearch Centre3. The calcutta Medical Research Institute4. Wockhardt Hospitals Limited

Mumbai1. Dr. Balabhai Nanavati Hospital2. Holy Family Hospital and Medical research centre3. Bombay Hospital and Medical research centre4. Holy Spirit Hospital5. Jaslok Hospital and Research Centre6. Liliavati Hospital and Research centre7. P.D. Hinduja National Hospital and Medicalresearch centre

New Delhi

1. Spinal injuries centre3. Indraprastha Apollo Hospital4. Batra Hospital and Medical research centre5. Escorts Heart institute and reasearch centre6. Pushpawati singhania reasearch institute for liver,renal and digestive disease7. Sir Gangaram Hospital

Pune

1.Grant medical foundation - Ruby Hall clinic2. Inlaks and Budhani hospital3. Sancheti Hospital

AURA BODYGUARD POLICY

Suitability



Bodyguard Policy from Aura is a personal accident policy and can be availed byany one in the age group 18 to 65 years. The policy seeks to providecompensation on death or bodily injury caused by an accident. In today's fastmoving world one is highly susceptible to accidents and at times financialimplications 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 incase of an accident at an affordable premium and hence recommended

Salient Features

• The policy provides financial assistance in the case of an accident resulting indeath 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, youare 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 30consecutive days in hospital following an accident.

Benefits

The company agrees to pay compensation at the following rates in case insuredmeets with an accident resulting in the loss of the following:

Features Compensation1. 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 daysstarting from the 4th day of hospitalisation, should the insured be confined to ahospital 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 manualwork i.e. physicians; dentists; supervising executives; merchants; general dutiesin store.

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

Exclusions

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

RIDERS

• 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 theinsured person's children to support their education is payable.



• Medical Expenses: A percentage of the admitted claim under other specifiedcoverage towards the actual medical expenses necessarily and reasonablyincurred for medical treatment within 100 weeks of its happening is paid. Thisis 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 toavail 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 periodsubject to a maximum period of 30 days. Additional premium needs to be paidto avail of this benefit

AURA ‘AROUND THE WORLD’ POLICY

Suitability



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

Salient Features

• The policy is a Personal Accident policy covering accident benefits for a capitalsum insured of Rs.1 lakh for each member of the family while in travel within thecountry.

• The plan covers domestic travel by Rail, Road, Waterways or Air within thecountry 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 alsocovered 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 eacharticle is limited to Rs.500, unless specifically declared.

RIDERS

This Policy consists of the following sections:

• Personal Accident - covering death and permanent disablement

• Medical Expenses and repatriation - covering hospitalisation expenses arising outof illness/sickness and also repatriation expenses for sending mortal remains to India

• Loss of checked baggage - covering total loss of baggage checked by aninternational airline

• Delay of checked baggage - covering cost of emergency purchase of replacementitems

• 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 duringthe course of overseas travel.

• Hospitalisation Allowance - covering daily allowance maximum for 30 daysapplicable only for Corporate Frequent Traveller policy holders

Benefits

The following benefits will be paid as compensation depending upon the natureof 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

Permanent Partial Disablement* (PPD)Depends on attending surgeon's

assessment.

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

Requirements

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

Premium

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.

AURA ZOOM



Suitability

• 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 aComprehensive 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 damageto insured's vehicle also

• The perils covered are:o Damage to vehicle by accidental external means, fire, lightning, explosion,

self-ignition, Burglary. Housebreakingo 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 owndamage premium + Liability Premium

• In case of Liability only Policy + Fire & theft, the premium is 50% of owndamage 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 beextended to Bangladesh, Bhutan, Pakistan, Nepal, Sri Lanka and Maldives by charging anextra 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 periodscales are charged, which are higher than pro-rata rates.

• No claim Discount: For every claim free year, the insured is rewarded withdiscounts in premium up to an extent of 55% (Package policy only). In case of a claim inany year, bonus earned till that year is wiped out. In case of adverse claims, premiums areloaded with Mauls.

Benefits

Liability Policy

• The policy pays compensation awarded by a court of law, for death of or bodilyinjuries 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 paiddrivers (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 damageto 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

• 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.30,000will be the minimum valueo 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 Indiao 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 10years. 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 premium

1. Vehicles fitted with Bi-fuel system (CNG kit)2. Vehicles (like jeeps) fitted with trailers or caravan trailers3. In case of Foreign made vehicles, valuation by an automobile

Engineer is compulsory. If the vehicles are owned by foreignembassies an extra premium of 30% is charged. In case of damage towind 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 whiletraveling 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 aninsured car, can be obtained on payment of additional premium

Other Conditions

• If the insured is a member of recognized Automobile Association in India, he getsa 5% discount to a maximum of Rs. 200

• If the insured opts to limit the third party property damage to the amount specifiedin 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 automobileresearch association of India , the he can avail a discount of 2.5% of OD premium subjectto 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.

Recommendations

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

Mothercare policy

Suitability

• Evidently, only women meet the eligibility criterion for the product.



• From the time of pregnancy awareness, the product becomes active for the femalesex.

• The plan is apt for nursing mothers, since it relieves the burden of complicationsduring 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.

Features

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

• It rests on the basis of compensating nursing mothers who:Have a miscarriageHave given birth to a disabled childGive birth to a pre-mature babyHave other complications during delivery

• Different compensation slabs and schemes are prepared in due accordance to thecircumstances.

• 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 pregnancy.

• 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 andchild safety.

• Incase of death of child, a post-death investigation will be carried out, so as toeliminate 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 to25 years), at which the policy is to mature. The term of the policy isdetermined by Age of the child on maturity - Age of the child on the dateof 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 additionsequivalent 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 acompounded basis.

• Terminal Bonus: This bonus will be payable either on the date of retirement or ondeath, 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 anymedical examination. However this benefit has to be availed with in 6 months from thedate of maturity.

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

• Annual Bonus payment

• Bonus accumulated and paid on maturity

• Bonus used to offset Premiums

Benefits



Plan A

• Most nursing mothers would feel at ease taking on a plan like this as they gothrough 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

umbrella.

• Incase of disability to child, the compensation aids in providing for a long termmedical cost associated with treatment.

Plan B (All features of the Plan A and a children growth policy which continus till thechild 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 thefuture 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 iscancelled and premiums paid are refunded or the policy can be continued andinstallments 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 (subjectto a minimum policy value

Riders



• Critical Illness Benefit

The Critical Illness Benefit rider covers 11 critical illnesses and it pays off the criticalillness benefit on the plan immediately while other policy benefits continue excepthospital 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 thematernity 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 haveto 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

Repayments

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 theSum 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.

Exclusions



In case of an abortion or if any discrepancy is found in the medical check-up of the childwhich 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 pertainingto additional single premium



Marketing Mix

Place

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

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.

Aura RHCP Insurance

5.4 MARKETING MIX



Promotion

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

company.

• 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

them.

• 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.



People

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

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

platforms:-

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

AttractivenessOf the market

Offering

5.5. THE SERVICE STRATEGY

5.6 BUILDING THE BRAND IDENTITY



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

advantage:

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

Corporation



“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 mediahelps 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?

EXPLORING MULTI CHANNEL MARKETING

5.7 INTEGRATED MARKETING COMMUNICATION



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

campaigns.

• 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.

5.8 CUSTOMER RELATIONSHIP MANAGEMENT – THE NEW CONCEPT



• 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 communicationchannels like emails and SMS

Online payment premium

An option online payment is provided to the customers

5.9 THE COMPETITIVE EDGE





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

capabilities.

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.

6. Human Resource

6.0 Human Resource Office

6.1 Recruitment & Selection Policy



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.

PROCEDURE

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 opportunityto 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.

6.1.1 The Recruitment Process



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

suitable.

(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.

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 candidatesfor 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

containing:

(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

6.1.2 The Selection Process



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

appointee.

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

commences.

Aura insurance highlights the following points in its employee policy:

1. DURATION

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 positionwith 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.

6.2 Employee Policy



2. PROMOTION

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

satisfactory.

3. PERSONNEL FILES

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

received.

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.

4. REGULAR HOURS

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.

5. LUNCH BREAKS

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.



6. WORK BREAKS

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

time.

7. RETIREMENT - EMPLOYEE PROVIDENT FUND (EPF)

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.

8. INCOME TAXES

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.



9. TRANSPORTATION

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.

10. LODGING

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.

11. MEDICAL LEAVE

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.

12. PERFORMANCE EVALUATION

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

Authority;

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.



13. CODE OF ETHICS

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.

14. COMPLAINT PROCEDURE

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



15. DISCIPLINARY AUTHORITY

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.

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

6.3 Functions



o Review of organizational operations to determine most effective/efficient

organization

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.

The basic factors on which the sales representatives of Aura insurance. Will work are as

follows:

• Prospecting

• Targeting

• Communicating

• Selling

• Informational Gathering

6.4 Human Resource Strategy

6.5 Sales Force Utilization



• 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.

ORGANIZATIONAL STRUCTURE (Marketing Department)

Direct

Manager – New Manager – OEM Sales Manager Export Manager

EastZoneSales

NorthZoneSales

SouthZoneSales

WestZoneSales

S S S S



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.

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.

7. Public Relations & Corporate Image

7.1 Public Relation Policy

S: - Sales Force



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.

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.

7.2 Functions



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

attractions.

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

audiences.

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

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.

7.3 Public Relation Strategy



(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

future.

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.

8.Corporate Social Responsibility



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.

Investors

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.

Customers

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

rewards.



We generally seek to respond to customer queries and complaints and use them as

opportunities to learn and improve.

Employees

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

Suppliers

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.



4. PRINT ADVERTISEMENTS







Considering the loan of 40 lakhs and yearly income of 12 lakhs and a 4 year old child westudied the viability of various policies and schemes for the individual. Calculation of netdisposable income helped in the selection of the following two policies:

1. Child growth

2. Loan repayment

PARTICULARS AMOUNT

Rs.

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)MET BHAVISHYA BY METLIFE – IRR 9%

1) Suitability

• This is a non-par money back policy that provides guaranteed returnsand is specially designed to meet children's educational expenses at differentlife stages. The policy is suitable for parents having children between the age0-12 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 thelife 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. Whileoption A matures on the child attaining the age of 21 years, option B matureson the child attaining the age of 25 years. One can choose either of theoptions based on their requirements.• Guaranteed additions @ Rs. 50 / Rs 1000 sum assured is paid for everyyear for which the policy is in force. This apart, terminal additions equivalentto 20% of the guaranteed additions payable on maturity.• In the event of death of the parent, 100% face amount is paidimmediately 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 inthe policy.• In the event of death of the child within the term, policyholder has theoption 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 (AccidentalDisability) and Term Rider.

TOTAL ANNUAL PREMIUM: RS. 65800

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 = 2000000Option 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 providingsatisfactory evidence and paying all due premiums to the date of

reinstatement with compound interest at the rare prescribed.

BENEFITS:

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

years.

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

off.

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

• Keep policy in force by the payment of the premium and nominate anyother 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 asreduced 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 theinstallments.)

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 5through 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 outstandinghome 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 incometax 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 quarterlymodes, depending on your convenience.

Insurance against loan repayment:Age 28

Term 20

Faceamount 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 308749910 2927201

11 2753678

12 2565839

13 2362504

14 2142393

15 1904124

16 1646197

17 1366991

18 1064751

19 737576

20 383409

BOTH THESE POLICIES TOGETHER WILL HELP IN CREATION OF A TAXBENEFIT AS THEY PROVIDE TAX BENEFITS ON THE PREMIUM PAID FOR THE POLICY under Sec 88 of the income tax act 1961 and the returns are fully exemptunder Sec 10 (10 D).



HENCE PROVISION OF A TAX BENEFIT ON APPROX. RS. 73134 ANNUALYWILL BE GIVEN TO THE INDIVIDUAL.

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.

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