Bajaj Allianz unveils FamilyGain

Islamic principles become the lodestar for the plan

Bajaj Allianz Life Insurance Company today launched "FamilyGain" insurance plan offering a fund option with investment norms similar to Islamic practices.

The pure equity option under the unit-linked insurance plan will specifically exclude companies dealing in gambling, contests, liquor, entertainment, hotels, banks and financial institutions. Shariah, the Islamic law, prohibits investment in these companies.

Sanjay Jain, head - marketing at Bajaj Allianz Life, said, "It's a kind of ethical fund that will also appeal to certain sections of Sikhs and Christians apart from the Muslim community."

FamilyGain also offers policy holders a choice of three other investment options "� equity index fund, debt fund and balanced fund "� but the investments of these funds will also be made in sectors banned by Shariah.

Apart from blacklisting sectors, Shariah also stipulates financial parameters such as debt-equity ratio or the market capitalisation-debt ratio.

Muslims are barred from investing in companies where the debt ratios are higher than certain levels.

Industry sources said the Insurance Development Regulatory Authority (Irda) had earlier denied Bajaj Allianz permission to introduce a "takafull" insurance product for Muslims as the Reserve Bank of India (RBI) has not yet allowed Islamic banking in India.

A senior official from Bajaj Allianz stated, "There is a huge untapped potential in this market. Hence, through the FamilyGain plan, we plan to incorporate features conducive to Islamic investment norms."

The Pune-based life insurer also launched three other insurance products today. These include a single premium UnitGain Premier and HealthCare, a health care plan at just Rs 100 per month.

The health care plan provides life cover. As part of future growth strategies, Bajaj Allianz is looking at launching a capital guarantee plan and also introducing a few modifications in the existing pension plan.