The Hindu Business Line : Revised ULIPs not appealing to HNI segment

The demand for ULIPs (Unit Linked Insurance Plans) from the high net-worth segment will see a drop due to the product's revised features, said Mr Sam Ghosh, CEO, Bajaj Allianz Life Insurance Company.

The guidelines for revised ULIPs have come into effect from July. As per these guidelines, there has to be a minimum lock-in period and the sum assured has to be 125 times the premium in the case of a single premium policy.

Mr Ghosh said the company had seen a growth of 130 per cent in the first quarter on account of the demand for old ULIPs. "ULIPs will now cater to the lower end of the population rather than high net-worth segment," he said.

Bajaj Allianz Life Insurance, on a trajectory to growth in rural areas, has tied up with Godrej Aadhar to sell its traditional life insurance products.

The pilot launch of the project would take place in August through 12 Godrej Aadhar outlets in Maharashtra, Gujarat and Punjab.

"Around 20 per cent of our business comes from rural areas and there is great potential from smaller towns," said Mr Ghosh.

Bajaj Allianz expects to bring in premium of more than Rs 10-15 lakh in the next 12 months from this project, he added.

The company would initially offer traditional life insurance products and later specially designed insurance products such as InvestGain and CashGain. "We are also looking at offering several other services through our outlets like crop insurance, banking, communication, among others," said Mr C.K. Vaidya, Managing Director, Godrej Agrovet.

Mr Ghosh also said that the company would tie up with 50 additional co-operative banks to expand its reach to the rural areas.

Bajaj Allianz expects to increase its offices from 560 to 650 by September.

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