Bajaj Allianz to double premium income

Bajaj Allianz Life Insurance is aiming at doubling its premium income in 2007-08.

Sam Ghosh, chief executive officer, Bajaj Allianz Life Insurance, said the company reported a premium income of Rs 4,300 crore in 2006-07. "We are aiming for a 100 per cent growth in premium income this financial year," Ghosh said.

Bajaj Allianz, with a current capital base of Rs 700 crore, might need capital infusion of Rs 200-250 crore by March 2008, Ghosh said.

The company is looking at bringing in long-term, pension-linked products, women and children plan products and schemes for the rural population.

A women-and-children product is being developed by Bajaj Allianz. "We are in the midst of drawing up the product. We hope it will be ready within this year," said Ghosh.

The company was also planning to increase its distribution reach in rural areas to promote its already existing rural products, Ghosh said.

Ghosh was in the city to launch the company's standalone health insurance product, Care First.

The new product aims at health and life cover. The dual benefit entails utilisation of the common sum assured in case of hospitalisation cover for treatment as well as life cover benefit in case of death of the policyholder.

Anyone between 18 and 56 years of age is eligible to take the policy. Bajaj Allianz assures continuity of the policy up to the age of 65 years. The product features include the same premium for three years and hospital cover up to Rs 7 lakh.

Bajaj Allianz has entered into a tie-up with 2,000 hospitals in 200 towns in the country for the new cover. As a part of its plans to keep a check on rising medical costs, all the empanelled hospitals will have to inform of changes in rates to insurers. Otherwise, insurers will follow the previous rates.

Pre- and post-hospitalisation and critical illness are covered under the programme.

Typically, for age groups between 18 and 29 years, a person will have to shell out a premium of Rs 2,121 for Rs 1 lakh cover, while it will be Rs 5,810 in case of a Rs 7 lakh cover. The company is targeting Rs 500 crore premium income from the new product in the current financial year itself.

Bajaj Allianz, with a major portfolio of unit-linked products, currently has a policy-retension rate of 74 per cent.

The company is also setting up a review cell to look at premium rates with the change in mobility and mortality rates.