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Company Policy
Company Summary
Management Summary
Industry Analysis
Marketing Strategy
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1.1 Vision
1.2 Mission
We aspire to become a world class insurance service provider. We shall provide value
addition to stakeholders and customers through customer satisfaction, effective supply
chain management, cost effectiveness, quality, advancement and service consistency.
Employees first will be our approach; we shall train them to achieve the set goals.
1.3 Objectives
1.4 Values
Aura RHCP insurance is proud to follow the following corporate values:
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.
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.
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.
s
VP Retail VP Corporate VP Strategic VP Customer
Service Relations Planning Relations
3. Management Summary
Anshuman Chawla – MD
Vidhi Bhargava – CEO
Group structure
Aura Bank Holdings is a public limited company incorporated in England. Headquartered
in London, the Aura Bank group operates in following regions: Europe; the rest of Asia
Pacific; including the Middle East and Africa; North America; and South America.
The entities which form the Aura Bank provide a comprehensive range of financial
services to personal, commercial, corporate, institutional and investment, and private
insurance clients. To more easily promote the Group as a whole, Aura Bank was
established as a uniform, international brand name in 1999. In 2002, Aura Bank
launched a campaign to differentiate its brand from those of its competitors by describing
the unique characteristics which distinguish Aura Bank, summarized by the words,
4. Industry Analysis
GLOBAL MARKET
MARKET PERFORMANCE:
The insurance sector is growing at a high rate. The leading insurance markets in the
world are:
US 33.8%
Japan 15.1%
U.K. 9.1%
France 6.01%
♦ South Korea is the only Asian country other than Japan to figure on the global
insurance map. It accounts for over 2.13 % of the global insurance market.
Emerging Markets
(Total Premium, figures in $billion)
Taiwan 17.3
China 13.4
India 7.2
Hong Kong 6.1
Israel 5.8
Singapore 5.0
♦ LIFE
♦ NON-LIFE
♦ 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%.
Europe led with a share of 36.93% followed by North America 36% and Asia 22.61%.
Insurance markets in China, Russia, Brazil, India poised to grow fuelled by rapid
economic expansion, changing demographics, deregulations.
• The penetration in the Asian market is the 4th largest. The major Asian players
attracting the foreign players are China, India and South East Asia( Vietnam).In
Asia both life as well as non-life insurance business are highly concentrated in
China, India and Vietnam.
• The insurance markets in Asia-Pacific vary greatly, ranging from relatively
undeveloped to fully mature, and the countries differ widely in terms of economic
development, political factors, business infrastructure, regulatory environment,
management, products and distribution. Markets such as Hong Kong and
Singapore are very open, while others such as China, India and Taiwan are tightly
regulated.
• The life insurance business is enjoying the fastest growth in Asia-Pacific and the
growth is strongest in China and India. Non-life insurance has seen strong growth
in countries such as New Zealand , Malaysia and also India due to the increasing
affluence of the region's population.
Insurance premium market in India is the fifth largest in Asia. It rose by 17.2% in 2005-
2006. According to global reinsurer Swiss Re, the two nations ( China and India) will
continue to lead the region's insurance markets with average annual growth rates of 13%
and 8% respectively until 2015
The Indian insurance sector is divided in to life and non-life insurance. Their
performance and growth signifies the high potential in the insurance market.
Life insurance
The life insurance industry grew by 28%, in terms of weighted new premium income, in
the period April to December 2005 over the corresponding period in 2004.
• ICICI Prudential remained the top private life insurer, with a new business
market share of 11.5% of the total market.
• Bajaj Allianz Life was in second place amongst the private players, with a
market share of 5.6%
• HDFC Standard Life with a market share of 4.2%. Birla Sun Life slipped to
fourth position, with a market share of 2.9%, due to an 8.5% fall in its weighted
new business premium income during April to December 2005 over the
corresponding period last year.
• The new business market share of the Life Insurance Corporation of India
(“LIC”) fell to 64.3%, down from 75.0% in the first nine months of FY2004/05
showing the increasing power of the private and foreign sector.
Non-life insurance
In terms of gross premium income, the market share of private non-life insurers increased
to approximately 27% in the period April to December 2005, up from approximately 20%
in the corresponding period in 2004. The private non-life insurers achieved
approximately 54% growth in gross new business premium income in the period April to
December 2005 over the corresponding period last year.
• ICICI Lombard is the leading private sector non-life insurers, with market shares
of 8.1% in terms of gross premium income.
• Bajaj Allianz General occupied market share of 6.4% respectively, in terms of
gross premium income.
Japan is the largest insurance market in the Asia-Pacific, followed by South Korea as the
second largest and Taiwan in third place. But China and India are trailing close behind
and are very likely to overtake the current leaders to become Asia's insurance
powerhouses.
For protection of the domestic industry, avoid hyper competition and overcrowding,
seepage of insurance premia out of country and limits on foreign participation the
following by building appropriate safety provisions into the IRDA Act.
The Indian insurance industry has been a target for many foreign investors because of
increasing liberalization and globalization and also because other major growing markets
have become saturated or are already preoccupied. In this scenario we as a multinational
bank have to target our operations and policies to the untapped markets which have
potential to grow so as to enter the insurance market.
• The life insurance market in India is cluttered with too many players both private
and public on the other hand in the non-life insurance our major competitor will
only be Bajaj Alliance and ICICI Lombard.
• The non-life sector is experiencing a steady uptrend in interest rates and a stable
investment environment, which are likely to boost the sector's future performance.
• According to the Insurance Regulatory and Development Authority (IRDA),
premium growth of India's non-life insurance sector has expanded at an annual
average of 15.5%, with the private sector alone growing by 55%.
• Non-life insurance business is picking up due to the increasing affluence of the
region's population
Further in the non-life insurance market we would focus more on travel and health.
But at the starting phase of entering the India market and to get a firm grip on the market.
It is very important to offer a very good variety of Life insurance policies.
TRAVELING
We will focus on the traveling insurance because the traveling insurance is becoming a
key consideration due to the following reason:
• With the increasing amount spend on travelling and increase in frequency of
traveling. the demand for travel insurance will also increase.
• Increase in ageing population. There is a change in life-style of the ageing
population who have increasing high disposable incomes, active lifestyles and
extra leisure time personal travel market will continue to grow.
• The spending on travelling is also increasing For instance, according to
MasterCard Asia-Pacific research shows, in 2005, the retired travellers in the
middle income bracket of US$30,000 to US$100,000 spent US$17.5 billion and
they are projected to spend US$23.6 billion by 2014. Countries that have been
accounted for include India, Japan, Singapore, South Korea, China, Malaysia,
Taiwan, Hong Kong SAR, Indonesia, Thailand, the Philippines, Australia and
New Zealand.
Hence we plan to come up with plans that cover different types of protection, especially
related to travelling to exotic countries. The increasing aged population accompanied by
the changing trend will act as basic driver of demand for the product and the trend is
expected to continue in the future.
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 to
a large number of people
The health insurance will be changed from providing cover for treating sickness to
ensuring the wellness of the consumer. An insurance model must be created with the
`Total Health' perspective to not only give access to quality healthcare but also
incorporate preventive health care into the main system. Hospitals, different service
centres and diagnostic centres needs to be accredited.
In India, approximately 80% of the total health expenditure comes from self-paid
category as against government’s contribution of 20-30 %.These 80% will be looked
after by our policies.
A majority of private hospitals are expensive for a normal middle class family. We will
help in improving this scenario by insuring such people at considerable rates.
Currently, in India only 2 million people (0.2 % of total population of 1 billion), are
covered under Mediclaim, whereas in developed nations like USA about 75 % of the total
population are covered under some insurance scheme
The Indian government see insurance as a solution to the healthcare needs of the
growing ageing population, while it is a profitable business to enter in for new players.
Since traditional in-force business is no longer profitable and is sort of saturated, we as a
foreign player have decided to shift and develop non-life insurance, centered on health
and traveling policies.
.
SERVICE QUALITY
The expectations of a customer are the essence of any service. A service provider has to
make sure that he knows what the customer wants and provides the closest thing
possible. Services can be altered any time pre or post purchase, which requires a
service provider to be extremely flexible. Today’s educated customers demand a
high degree of customerization. This lead to a gap between the service provider’s
ability and the customers wants.
The central focus the gap model is the customer gap, the difference between customer
expectations and perceptions. Expectations are the reference point’s customers have
coming in to a service experience; perceptions reflect the service as actually
received. The idea is that firms will want to close this gap- between what is
expected and what is received- to satisfy their customers and build long- term
relationship with them. To close this all important customer gap, the model
suggests four other gaps- the provider gaps need to be closed.
Gap 1
The primary cause in many firms for not meeting the customer’s expectations is that the
firm’s lack accurate understanding of exactly what those expectations are. A gap
exists between company perceptions of customer expectations and what the
customers actually expect.
We at Aura RHCP Insurance have tried to best to meet up with the various customer
expectations. Our process stands on the pillars of trust, loyalty and customer
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’s
expectations, there still maybe problems if that understanding is not translated into
customer driven service designs and standards. This situation can be caused by
these three factors:
Resource Constraints
Market Condition
Management Indifference
Today insurance is a personalized service. We understand that our customers have variant
needs and providing personalized service in such a situation is difficult. Our
employees are selected through a stringent recruitment process and we have gone a
step ahead by training each and every employee to provide maximum personal
interaction and customer satisfaction.
Gap 3
Once service designs and standards are in place, it would seem that the firm is well on its
way to delivering high-quality service. This is true, but still not enough. There must
be systems, processes and people in place to ensure that service delivery actually
matches the designs and standards in place. In order to deal with this particular gap:
Gap 4
Finally, with everything in place to effectively meet or exceed customer expectations, the
firm must ensure that what is promised is delivered. This particular gap is the most
important of the 4 as it is a link between the customer and the service provider. In
order to reduce this particular gap, our company is taking the following steps:
There are several reasons why banks should seriously consider Bancassurance, the most
important of which is increased return on assets (ROA). One of the best ways to increase
ROA, assuming a constant asset base, is through fee income. Banks that build fee income
can cover more of their operating expenses, and one way to build fee income is through
the sale of insurance products. Banks that effectively cross-sell financial products can
leverage their distribution and processing capabilities for profitable operating expense
ratios.
By leveraging their strengths and finding ways to overcome their weaknesses, banks
could change the face of insurance distribution. Sale of personal line insurance products
through banks meets an important set of consumer needs. Most large retail banks
engender a great deal of trust in broad segments of consumers, which they can leverage in
selling them personal line insurance products. In addition, a bank’s branch network
allows the face to face contact that is so important in the sale of personal insurance.
Another advantage banks have over traditional insurance distributors is the lower cost per
sales lead made possible by their sizable, loyal customer base. Banks also enjoy
significant brand awareness within their geographic regions, again providing for a lower
per-lead cost when advertising through print, radio and/or television. Banks that make the
most of these advantages are able to penetrate their customer base and markets for above-
average market share.
Other bank strengths are their marketing and processing capabilities. Banks have
extensive experience in marketing to both existing customers (for retention and cross
selling) and non-customers (for acquisition and awareness). They also have access to
multiple communications channels, such as statement inserts, direct mail, ATMs,
telemarketing, etc. Banks' proficiency in using technology has resulted in improvements
in transaction processing and customer service.
4.7 BANCASSURANCE
Most obviously, banks own proprietary databases that can be tapped for middle-market
warm leads. In addition, they can leverage their name recognition and reputation at both
local and regional levels. Strong players also excel at managing multiple distribution
channels, cross-selling banking products, and using direct mail. However, most banks
lack experience in several areas critical to successful bancassurance strategies: in
particular, developing insurance products, selling through face-to-face "push" channels
underwriting, and managing long-tail insurance products. This is done using insurance
companies competencies.
Thus AURA bank plans to enter the market through a joint venture with a leading bank in
India, RHCP and this collaboration will help us to use RHCP’s reputation and multiple
distribution cannels and our own competency for developing insurance products and
hence establish a strong and profitable insurance company.
5. Marketing Strategy
The company will follow a holistic approach by delivering the customers quality oriented
and customized insurance services. The company will be working in three phases in
which it will try to fulfill its commitment to quality and customer satisfaction leadership.
Our marketing strategy will work on these four point strategy which will focus on all the
major services simultaneously.
I) The Entry Phase:
• The company will open 18 branches in India in this phase. Focus on creating
more Premiums and investments, to satisfy the investment requirements of the
clients and to ensure wide scale reaches in the country, with the help of a well
established branch network in India, this will also help to build a certain amount
of trust towards the insurance services provided by the Aura RHCP insurance.
The aim would be to get brand awareness by focusing on life insurance in this
stage. This would be done as the life insurance has more market popularity.
Geographical
Region India
Density Urban, semi- urban (IInd and IIIrd phase)
Demographic
Psychographic
Behavioral
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 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.
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 payable
at regular intervals. This plan is best suited for some one planning for children's higher
education/marriage. . At the same time, the policy provides insurance protection for the
family and acts as tool for old age provision.
FEATURE:
• Minimum Face Amount: Rs. 50,000.
• Terms Available : 15,20,25,30 Years
• Maximum age at maturity : 70 years
• Guaranteed percentage is paid at every 1/5th period of your selected policy term.
• Provided the policy is in full force, a guaranteed addition of Rs.100.00 per Rs.1,
000 of Face Amount will be added to the Face Amount at the end of each policy
anniversary and will be payable either on the date of maturity or on earlier death
of the Life Insured
• The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthly
mode is also available under salary deduction scheme
• Premium charged:
Mode Premium
Annual Rs. 1500/-
Half Yearly Rs. 800/-
Quaterly Rs. 450/-
Monthly Rs. 150/-
• Premiums discounts will be given for the female policy holders. Basic premium
payable will be equivalent to the premium for a two-year younger male
policyholder.
Benefits
On death
• Within the term Full Sum assured +Bonus+Guaranteed Additions(Guaranteed
additions are payable only if the death occurs after ten policy years) are payable.
On Survival
• On maturity date balance amount +Bonus +Guaranteed additions are payable.
• Guaranteed percentage is paid at every 1/5th period of your selected policy term
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.
Plans:
1) Cash care total: It includes Accidental Death Benefit, Accidental Permanent
Total/Partial Disability Benefit,Critical illness and Hospital Cash Benefit are built
in and no additional premium needs to be paid. One can exclude certain riders for
discount in premium at the end of each policy year.
Suitability
This is a policy that provides guaranteed returns and is specially designed to meet
children's educational expenses at different life stages.
Features
Policy is to be taken on the life of the parent for the benefit of the child
1. Risk commences after 2 years from the date of commencement of policy or on
policy anniversary following completion of 7 years by the child, whichever is
later
2. One has the flexibility to choose the exact age of the child (between 20 to 25
years), at which the policy is to mature. The term of the policy is determined by
Age of the child on maturity - Age of the child on the date of proposal.
Guaranteed additions @ Rs. 50 / Rs 1000 sum assured is paid for every year for which
the policy is in force. This apart, terminal additions equivalent to 20% of the
guaranteed additions payable on maturity
• The policy provides an option wherein the child can avail of a permanent life
insurance policy on the date of maturity to the extent of sum assured without
undergoing any medical examination. However this benefit has to be availed with
in 6 months from the date of maturity.
• Policy holder has the option to utilise the bonus/gurantee in any of the following
three ways:
1. Annual Bonus payment
2. Bonus accumulated and paid on maturity
Benefits
Exclusions
If the insured's death is due to suicide or attempted suicide during the first twelve months
from the commencement date of the policy, the Company will only pay the surrender
value of accumulation units pertaining to additional single premium
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 you
receive depends on the premium you pay till the stipulated date and the option
you choose.
• Policyholder can choose the date of retirement to be between 50 to 65 years.
• Policy offers 9% guaranteed return on investment.
• Premiums paid under the policy are eligible for tax benefits under section
80CCC(1) of IT Act ,1961.
• The plan provides for 4 annuity options:
1. Life annuity: annuity for life
2. Life annuity certain for 5, 10, 15 years: Annuity is paid for
chosen term and for life thereafter
3. Life annuity with return of purchase price: life annuity with
return of purchase price on death to the beneficiary
4. Joint Life, last survivor annuity with return of purchase price:
life annuity to you and then to your spouse with return of purchase
price to the beneficiary on death of last survivor.
Surrendering options
• Surrender during the first year is not permitted. But the policy acquires a
guaranteed surrender value after the first year which will be 70% of the single
premium after one year, 75% of the single premium after two years and 80% of
the single premium after 3 years. Cash value of guaranteed additions already
allocated to the policy will also be payable
• If the policy holder decides to terminate his policy, after 3 years premiums are
paid, a guaranteed surrender value is payable and the insurance protection
provided under this policy will also cease.
.
Bonus Offered
• Reversionary Bonus: Annual bonus will be declared by the company from the 5th
policy anniversary, which would be credited to the policy. This is paid on a
compounded basis.
• Terminal Bonus: This bonus will be payable either on the date of retirement or on
death, provided the policy has been in force for 10 years.
Reversionary bonus and Terminal bonus are not guaranteed and depend on the
performance of the company.
Other Conditions
• Minimum age at entry : 18 years.
• Maximum age at entry: 55 years.
• Minimum age of retirement : 50 years.
• Maximum age of retirement: 65 years.
• Minimum Sum Assured - Rs. 50,000/-.
• Maximum Sum Assured - unlimited.
• The minimum premium paying period is ten years, subject to a minimum
retirement age of 50 years.
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 be
limited 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 basis
of the sum assured plus guaranteed additions plus vested bonuses (if any) as on
the date of death.
On survival
• On vesting date insured has the option of taking 25% of the aggregate of the sum
assured, guaranteed additions and vested bonuses as an immediate lump sum. And
utilise the remaining 75% to provide an annuity. Annuity payment depends on the
type of option chosen
Riders
• Accident and Disability Benefit
• Critical Illness Benefit
• Major Surgical Assistance Benefit
• Level Term (Double Life) Insurance Benefit
Salient Features
Only single premium payment option is available benefits are payable either on death or
on maturity which ever is earlier.
• Term is fixed at 15 years.
• The policy can be surrendered, losing the maturity benefit. Surrender Value
payout table:
After 1 year 90% of the premium
After 4 years 100% of the premium
After 10 years 160% of the premium
After 14 years 230% of the premium
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 on
death within the first two policy years, single premium paid is refunded.
Other Conditions
• Policy term - 15 years .
• Minimum age to take the policy - 18 years
• Maximum age to take the policy - 45 years
• Maximum age covered - 60 years
• Premium range Rs. 1,000 - Rs. 50,000
Aura Endowment Plan
Suitability
• The policy provides for family protection as well as old age provision. Further
sums are guaranteed, Covering the contingencies of both surviving to maturity
and also death within the term. This policy is suitable for all categories of people
Salient Features
• Lump sum amount is payable on survival to maturity or on death, whichever is
earlier.
• Premiums are payable till the end of payment term chosen or death which ever is
earlier. However in case of plans where Waiver of Premium benefit has been
availed, premiums are not payable during the period of disablement.
• Premiums paid under the policy are eligible for tax rebate under section 88 of
Income Tax Act 1961.
• Benefits under the policy can be enhanced by opting for riders. Riders are the
additional benefits which can be availed by paying marginal additional premium.
Riders available under the plan are:
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 amount
equivalent to the basic sum assured in case of unfortunate death.
• Accidental Death Benefit (ADB):This benefit provides for an additional amount
equivalent to the basic sum assured in case of death due to accident.
• Waiver of Premium (WOP):By the virtue of this benefit all future premiums stand
waived in case of total disablement of the life assured. The waiver applies during
the period of total disability.
• Critical Illness (CI):This benefit will provide for an additional amount equivalent
to the basic sum assured on insured contracting to any of the six specified critical
illnesses. Critical illness benefit will be paid on insured surviving 30 days from
the date of claim. This benefit comes to an end once the claim is paid, however
basic policy continues.
Other Conditions
• Minimum Entry age: Age 15 last birthday.
• Maximum Entry age: Age 60 last birthday {Maximum Entry age is subject to
maximum maturity age of 75 years}
• Maximum Maturity age: Age 75 last birthday.
• Minimum Face Amount: Rs.300000
• Maximum Face Amount: There is no limit.
• Minimum premium Amount: Met 100 Platinum it is Rs.8000(not inclusive of
the Rider Premium).
Exclusions
• The company will not be liable to pay the benefit amount, if the death of the
life assured is caused directly or indirectly by suicide within one year of the
date of commencement, or the date of issue of the policy, if later.
• Intentionally self-inflicted injury or attempted suicide, irrespective of mental
condition.
• Alcohol or solvent abuse, or the taking of drugs except under the direction of
a registered medical practitioner.
• War, invasion, hostilities (whether war is declared or not), civil war, rebellion,
revolution or taking part in a riot or civil commotion.
• Taking part in any flying activity, other than as a passenger in a commercially
licensed aircraft.
• Taking part in any act of a criminal nature.
Suitability
• Any one in the age group of 5 to 75 years can take the policy. Children in the
age below the age of 5 years can also be covered from the age of 3 months
onwards provided one or both of the parents are covered concurrently.Policy
provides for the cash benefits in the event of insured person(s) being
hospitalised due to sickness or accident. It also offers you cashless benefit and
medical reimbursement for hospitalisation expenses.
Salient Features
• This is medical insurance policy providing financial assistance in case of
hospitalisation following any sickness or accident.
• Single policy can be issued to cover spouse, dependent children and
dependent parents.
• There is no limit on the number of children to be covered. The minimum age
for the children is 3 months with maximum being 21 years.
• Cashless facility: With Health Guard, the member has access to the cashless
facility at various hospitals across India (Subject to exclusions and
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 days
from submission of all the documents.
• Premium paid upto Rs.15,000 per annum is eligible for Tax benefit u/s 80 D
of IT Act.
• There is no need to submit medical bills. Only a discharge certificate is
sufficient for admitting the claim.
• Waiver of pre-existing diseases: Pre-existing diseases are normally excluded
at the time of taking the policy. however, from 5th year onwards it is covered
if the policy is continuously renewed for 4 years with the company and the
insured has declared such ailment while taking the policy for the first time.
Benefits
• Policy provides financial assistance in case of hospitalisation following an
accident or sickness.
• Discount in insurance premium is allowed on family package, cumulative
bonus and health check. In case of family package cover, a single member can
avail of the entire policy limits.
• Policy holder can avail cash less hospitalisation facility in the hospitals which
come in the network of AURA RHCP INSURANCE.
• Premiums paid under the policy are eligible for tax rebate under section 80
80-D of the Income Tax Act 1961.
• Pre hospitalisation and post hospitalisation expenses for 30 days and 60 days
respectively are payable
Premium Table
Indicative Premium table. All the premiums are per annum
Age(Yrs)
90 days - 25 Yrs 26yrs - 40yrs 41yrs - 45yrs 46yrs - 55yrs
Sum insured(Rs)
100000 1045 1211 1330 2280
1,50,000 1568 1758 1948 3420
200000 1948 2280 2565 4560
300000 2755 3230 3610 5700
400000 3610 4275 4655 6315
500000 4370 5130 5700 7013
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 a
waiting period of 2 years.
• Non allopathic medicine
• Congenital diseases
• All expenses arising from AIDS and related diseases
• Cosmetic, aesthetic or related treatment
• Use of intoxicating drugs, alcohol.
Riders
Critical Illness Benefit – HealthAssure provides you cover against the following six
critical illnesses
• Cancer
• Coronary Artery Bypass Graft/Surgery
• Heart Attack
• Kidney Failure
• Major Organ Transplant (as a recipient)
• Stroke
In case any of the specified critical illnesses is diagnosed, the benefit amount (Critical
Illness Sum Assured) will be paid to you the flexibility to choose from the two options to
claim your Critical Illness benefits.
Lump sum where the whole amount can be collected by the person when the illness is
diagnosed. In this case the insured will get 100 % of the total amount.
Installment where Rs. 25,000 (25% of Sum Assured) for 1st year + Rs.20,000 (20% of
Sum Assured) from 2nd to 5th year (Total benefit:105% of Sum Assured)
The benefit amount which you receive is based on the time that has elapsed since the date
of issue of the policy to the date of diagnosis of Critical Illnesses. You also have
• Documents Required
• Standard documents required for claim processing are as under
• Written intimation of the claim
• Original plan document
• Hospital Certificates
• Claimant's statement with hospital's discharge card or hospital/pathology
report
• Any other relevant hospital records
Salient Features
• The policy provides financial assistance in the case of an accident resulting in
death or disability of the life insured.
• Policyholder can cover his/her spouse along with children under a single
policy. A discount of 10 % can be availed on insuring spouse.
• Types of benefits
• Escalating Benefit: The compensation payable for accidental death,
Dismemberment and Permanent Total Disablement will automatically be
increased by 5% every year on renewal, up to 5 years.
• Grace Period: For the purpose of escalating benefit, a grace period of 31 days
for renewal is allowed under this policy.
• 24-hour protection: Whether you are working, or at home, or travelling, you
are protected 24 hours a day, 7 days a week, anywhere in the world.
• Recovery benefits of Rs. 80000 are paid if the insured spends more than 30
consecutive days in hospital following an accident.
Benefits
The company agrees to pay compensation at the following rates in case insured
meets with an accident resulting in the loss of the following:
Features Compensation
1. Both Hands or Both Feet or Sight of Both Eyes 200% of the Principal Sum
2. One Hand and One Foot 200% of the Principal Sum
3. Either Hand or Foot and Sight of One Eye 200% of the Principal Sum
4. Hearing of Both Ears 200% of the Principal Sum
5. Speech 200% of the Principal Sum
6. Either Hand or Foot 100% of the Principal Sum
7. Sight of One Eye 100% of the Principal Sum
8. Thumb and Index Fingers 50% of the Principal Sum
Class 3 & 4: Skilled or semi-skilled workers; using light machinery i.e. filling
station attendants; farmers; retail clerks; building tradesmen; taxi drivers;
industrial workers using heavy machinery or unskilled labourers i.e. Lorry
drivers, construction workers, crane operators, electricians, labourers, etc
Exclusions
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 the
insured person's children to support their education is payable.
• Medical Expenses: A percentage of the admitted claim under other specified
coverage towards the actual medical expenses necessarily and reasonably
incurred for medical treatment within 100 weeks of its happening is paid. This
is paid only if the Insured or the insured person suffers injury during the
period of insurance and provided such treatment is received from a qualified
and registered medical practitioner. Additional premium needs to be paid to
avail of this benefit.
• Hospital Confinement Allowance: In the event of the Insured or the insured
person being confined in hospital for treatment of injury, compensation is
payable under this policy. A daily benefit is paid for confinement period
subject to a maximum period of 30 days. Additional premium needs to be paid
to avail of this benefit
Suitability
• This policy is suitable for persons who go on a holiday with family or People who
travel frequently can avail of this policy.
Salient Features
• The policy is a Personal Accident policy covering accident benefits for a capital
sum insured of Rs.1 lakh for each member of the family while in travel within the
country.
• The plan covers domestic travel by Rail, Road, Waterways or Air within the
country for a period of 60 days
• Loss or damage to accompanied baggage by accident or misfortune is covered.
• The plan also covers travel by use of own conveyance .Theft from car is also
covered provided the car has total locking system
• The policy covers loss or damage (due to fire, Storm, tempest, hurricane, flood,
inundation, riot, strike, terrorism, malicious damage, accident, theft or burglary) of
accompanied baggage upto a certain limit. The compensation provided for loss of each
article is limited to Rs.500, unless specifically declared.
RIDERS
This Policy consists of the following sections:
Benefits
The following benefits will be paid as compensation depending upon the nature
of injury.
Nature of injury Compensation
On Death only Rs.2lakh for each person.
Permanent Total Disablement* (PTD) Rs. 1 lakh
Loss of limb or loss of sight of one Eye Rs. 50,000
Depends on attending surgeon's
Permanent Partial Disablement* (PPD)
assessment.
1 Rs. 5000
2 Rs. 10,000
3 Rs. 12,500
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
1 Rs. 80
2 Rs. 140
3 Rs. 190
4 Rs. 240
5 Rs. 280
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 a
Comprehensive Policy to take care of their interest as collateral security
Salient Features
• Insurance companies issue Liability policy for "Act Risks"and Package policy for
Comprehensive Risks under the Motor Vehicles Insurance
Liability policy
• Liability policy covers risks required to be covered under the Motor Vehicles Act.
It is mandatory that every car owner be covered against Act Risks under Section 146 of
Motor Vehicles Act 1988
• The scope of cover is to pay compensation for death of or bodily injuries to third
parties and damage to the property of third parties. While the insured is treated as the first
party and the Insurance Company second party, all others would be third parties
• This policy provides personal accident cover of Rs.2,00,000 to owner driver.
• While the compensation for the personal injuries to third parties is unlimited,
property damage is limited to Rs.7,50,000.
• This policy covers all the risks of Liability policy as well as the loss of or damage
to insured's vehicle also
• The perils covered are:
o Damage to vehicle by accidental external means, fire, lightning, explosion,
self-ignition, Burglary. Housebreaking
o Riot & strike, malicious acts and terrorist acts
o Earth quake
o Flood, inundation, cyclone etc
o Landslide/ rockslide while in transit by rail, road, air, inland waterways,
lift or elevator
• Package policy can be restricted to loss or damage due to fire or theft or both fire
& theft in combination with policy A or without
• In case of "Liability Policy" + fire, the premium is only 25% of own damage
premium + Liability Premium
• In case of "Liability only Policy" + theft, the premium is only 30% of own
damage premium + Liability Premium
• In case of Liability only Policy + Fire & theft, the premium is 50% of own
damage premium + Liability Premium
• These extended covers can be obtained without inclusion of Liability only risks,
provided the vehicle is not put to use
• The geographical limits for use of the vehicle is India but the limits can be
extended to Bangladesh, Bhutan, Pakistan, Nepal, Sri Lanka and Maldives by charging an
extra premium of Rs.500 for package policy and Rs.100/ for Liability policies
• Policies can be issued for periods less than one year. In such cases, short period
scales are charged, which are higher than pro-rata rates.
• No claim Discount: For every claim free year, the insured is rewarded with
discounts in premium up to an extent of 55% (Package policy only). In case of a claim in
any year, bonus earned till that year is wiped out. In case of adverse claims, premiums are
loaded with Mauls.
Benefits
Liability Policy
• The policy pays compensation awarded by a court of law, for death of or bodily
injuries to third parties
• It also pays damage to the property of third parties up to a limit of Rs. 7,50,000.
• The policy also provides for the death of or bodily injuries with respect to paid
drivers (workman) engaged in driving or maintenance of vehicle. The compensation
payable is limited to the provisions of Workmen's Compensation Act 1923
Policy B
• This policy covers all the risks of Liability Policy as well as the loss of or damage
to insured's vehicle also
• Temporary spot repairs and/or towing charges to repair workshop & delivery for
repairs up to Rs.1,000 are also paid
Premium
Other Conditions
Recommendations
Liability policy is compulsory and cannot be avoided. Package Policy, not only covers
features of Liability Policy, but also provides cover against the loss of or damage to
insured's vehicle. With the increasing number of accidents on roads and the surging costs
of repairs, this policy is very much recommended
Mothercare policy
Suitability
• Evidently, only women meet the eligibility criterion for the product.
• From the time of pregnancy awareness, the product becomes active for the female
sex.
• The plan is apt for nursing mothers, since it relieves the burden of complications
during pregnancy. This burden may be emotional, monetary and physical.
• Plan targets lower and middle class nursing women.
• The policy also has a feature that it can be extended into a child growth policy.
• It is also for those people who want a safe future for their children.
Features
• Different compensation slabs and schemes are prepared in due accordance to the
circumstances.
• 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 and
child safety.
• Incase of death of child, a post-death investigation will be carried out, so as to
eliminate the possibility of an abortion.
• The policy has 2 plans
o Where on the child’s birth will be insured and in case the birth is
absolutely fine then the companies liability gets over.
o The other plan is where the pre-birth policy is in a combination with the
children growth policy. Here the policy is to be taken on the life of the
parent for the benefit of the child
Bonus Offered
• Reversionary Bonus: Annual bonus will be declared by the company from the 5th
policy anniversary, which would be credited to the policy. This is paid on a
compounded basis.
• Terminal Bonus: This bonus will be payable either on the date of retirement or on
death, provided the policy has been in force for 10 years.
Reversionary bonus and Terminal bonus are not guaranteed and depend on the
performance of the company.
Other Conditions
Entry on marriage
The policy provides an option wherein the child can avail of a permanent life insurance
policy on the date of maturity to the extent of sum assured without undergoing any
medical examination. However this benefit has to be availed with in 6 months from the
date of maturity.
Policy holder has the option to utilise the bonus/gurantee in any of the following three
ways:
Benefits
Plan A
• Most nursing mothers would feel at ease taking on a plan like this as they go
through a lot of physical insecurity.
• Monetarily, the woman would be compensated for the emotional stress she
undertakes during the nine month process.
• Traumatic conditions and momentary stress get siphoned off by the compensation
umbrella.
• Incase of disability to child, the compensation aids in providing for a long term
medical cost associated with treatment.
Plan B (All features of the Plan A and a children growth policy which continus till the
child turns 25)
• On Maturity
Full sum assured along with bonus and guarantee repayment will be payable.
In case of death of life assured before the commencement of risk, the policy is
cancelled and premiums paid are refunded or the policy can be continued and
installments will be received as per planned.
If the nominee is a minor, the beneficiary or the appointee has the option of
making partial withdrawals as per the terms and conditions of the policy (subject
to a minimum policy value
Riders
• Critical Illness Benefit
The Critical Illness Benefit rider covers 11 critical illnesses and it pays off the critical
illness benefit on the plan immediately while other policy benefits continue except
hospital Cash Benefit. Claim under this rider is not admissible during first six months of
the policy.
• Hospital Cash Benefit
By the virtue of this rider a fixed amount for every day of hospitalisation is payable.
Amount payable for every day of hospitalisation is specified under the policy.
• Maternity period BenefitThis rider is given to insure the mother during the
maternity period and also on delivery of the baby.
Premium Paid
Repayments
Exclusions
In case of an abortion or if any discrepancy is found in the medical check-up of the child
which has lead to the death or any deformity.If the insured's death is due to suicide or
attempted suicide during the first twelve months from the commencement date of the
policy, the Company will only pay the surrender value of accumulation units pertaining
to additional single premium
5.4 MARKETING MIX Marketing Mix
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
Aura RHCP Insurance
We will have also other branches in the rest of the country. The company will enter the
market with establishing branches in the major cities of the country from where the
business will start and then will penetrate into the rest of the country in later phases.
Promotion
Promotional techniques are the key ingredients in boosting sales. Our promotional
strategy will revolve around theses following factors:
• 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.
• 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
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;
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
A service mix can only be highly effective if market offering is highly attractive.
Attractiveness
Of the market
Offering
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.
The company‘s high priority is to build ‘Brand Bonding’ which occurs when customers
experience the company on delivering on its benefit promise
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:
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.
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.”
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.
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.
The company is planning to go for Multi Channel Marketing in order to create larger
impact on the target potential customers.
Multi channel marketing is an effective tool that a marketer can use to develop customer
loyalty for his brand. Personalized multi channel marketing is much more effective than a
traditional campaign. The response rate is more in case of personalized multi channel
marketing as compared to its investment.
The prime objective of multi channel marketing is to reach different times in different
way. It is one of the most successful marketing strategies. The use of multiple media
helps an organization to be top of the mind at the time of purchase.
According to one research, 69% of consumers prefer highly personalized and 31% prefer
none personalized in case of direct mail and email. 78% prefer highly personalized
messages and offers that are unique to their needs and 22% prefer non personalized
message and offers that everyone can avail of irrespective of their needs?
• Motion Pictures
• Audio Visual Displays
• Packaging inserts
• Brochures and booklets
• Symbols and logos
• Print ads
• Point of Purchase Displays (POP’s)
2. Sales Promotion
3. Public Relations
• Press kits
• Speeches and seminars
• Charitable donations (CSR)
• Events
• Publications (Investment Journals etc.)
4. Personal selling
5. Direct Marketing
• Catalogs
• Mailing (E –mails)
• The quality of email list: The email campaign is much more effective when
sender knows detail information like purchase history, registered products or
stated preference of the recipient. This knowledge helps the marketer to send
customized email to recipients. This type of customized service can be extremely
helpful because most investors work online.
• Design and measurement of email: The email should be linked with certain
desired customer behavior links and also the link with registration and purchase.
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.
You can receive your policy letters, brochures and updates in Braille or large-
print formats.
Premium reminders
Premium reminders can be sent through various new-age communication
channels like emails and SMS
Online payment premium
An option online payment is provided to the customers
Reader services
You can have important insurance documents read to you by contacting your local
insurance center or online account centre. Because location hours vary, we
suggest that you schedule an appointment if requesting reader services with a
insurance center agent.
6. Human Resource
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.
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:
(i) Details of the post, final approval from the appropriate Department Head;
(ii) In the event of the job being newly established, the approval of the CEO, and
confirmation from the Finance Officer, that funding is available.
The Job Vacancy Form needs to be sent to the HR Department. No vacancy can be
processed without the HR Department’s authorization.
(d) Ensure the Job Description and person specification are up-to-date. Contact the
Human Resources Department for advice / any assistance in completing these.
(e) Collate an information package appropriate for the post. This package should include:
(i) job description and if appropriate, the person specification
(ii) information on the department
(iii) information on the Company
(iv) terms and conditions of employment
It is important that this pack is carefully put together in order to present a professional
image of the Company, therefore out-of date or poorly presented information is not
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 candidates
for interview, obtain references and make the necessary housekeeping arrangements for
the interview. This will include timetabling the interviews and arranging Occupational
Health / Company Doctor Medicals if appropriate. Candidates who have not been short
listed will also be informed.
At least one week prior to the interview, each panelist will receive an interview pack
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
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
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.
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 position
with a longer probationary period will be notified prior to induction.
b. A newly appointed part-time employee working a portion of each workday will serve a
probationary period of one hundred twenty (120) calendar days.
c. A newly appointed part-time employee who works an irregular schedule or fewer than
the standard number of days each week will serve a probationary period of seven hundred
(700) hours worked.
d. Time spent on inactive pay status or non-paid leave of absence will not be counted
toward the completion of the probationary period.
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.
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.
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".
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.
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.
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.
6.3 Functions
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.
The basic factors on which the sales representatives of Aura insurance. Will work are as
follows:
• Prospecting
• Targeting
• Communicating
• Selling
• Informational Gathering
• Allocating
The company will distribute the sales force on territorial basis depending upon the
territorial size. This structure will reflect a clear definition of responsibilities. It increases
the representative incentive to cultivate local business and personal ties. Travel expenses
are also relatively low.
Direct
S S S S
S: - Sales Force
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.
5. The Manager and professional staff shall be expected to give talks and to
participate in community activities.
6. All printed publicity; including materials to be used by the press, radio, and
television shall be approved by the Manager.
Recognizing that public relations involve every person connected with the company, staff
members shall be trained to give courteous and efficient service to company
patrons. Aura Insurance urges its own members and every staff member to realize that he
or she represents the company in every public contact.
7.2 Functions
Our public relations and corporate affairs officer perform the following duties:
3. Conduct public opinion and attitude surveys to identify the interests and
concerns of key groups served by their organization.
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.
(a) Awards.
(b) Contracts.
(c) Personnel appointments.
(d) Case histories.
(e) Signed articles.
(f) Calendar items.
The PR department makes it a point to regularly pitch the story to reporters for
getting press coverage. The PR Department, therefore, convinces reporters to
write news articles or reviews, which benefit us a lot. The company has built
quite a good rapport with the concerned media persons, who can help it in the
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.
However, we also know that sustainable success must go hand in hand with the highest
standards of behavior. Living by our principles and values is an Aura tradition and
sharing our success with the communities which we serve is part of that tradition.
Business case for CSR
For Aura RHCP Insurance, good CSR is good business. There are a number of business
reasons for investing in CSR.
• 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.
• 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 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 we
studied the viability of various policies and schemes for the individual. Calculation of net
disposable income helped in the selection of the following two policies:
1. Child growth
2. Loan repayment
PARTICULARS AMOUNT
Rs.
1. Income from Salary
Annual Income 1200000
1) Suitability
• This is a non-par money back policy that provides guaranteed returns
and is specially designed to meet children's educational expenses at different
life stages. The policy is suitable for parents having children between the age
0-12 children and parents in the age group 20-50 years.
Salient Features
• This is a money back policy where lump sum amounts are paid to the
life assured to fund the educational needs of the child.
• Policy is to be taken on the life of the parent for the benefit of the child.
• Policy is offered in two variants viz., option A and option B. While
option A matures on the child attaining the age of 21 years, option B matures
on the child attaining the age of 25 years. One can choose either of the
options based on their requirements.
• Guaranteed additions @ Rs. 50 / Rs 1000 sum assured is paid for every
year for which the policy is in force. This apart, terminal additions equivalent
to 20% of the guaranteed additions payable on maturity.
• In the event of death of the parent, 100% face amount is paid
immediately and future premium are waived. These benefits are in addition
to the fixed term benefits, which will be paid to child at the specified dates in
the policy.
• In the event of death of the child within the term, policyholder has the
option to continue the policy and receive the fixed term benefits or surrender
the policy.
• In the event of death of the child after the death of the parent, another
person can be nominated to receive the benefits.
• The policy can be customised through 4 riders -Accidental death
benefit, Critical Illness (10 illness), Waiver of Premium (Accidental
Disability) and Term Rider.
Modes Amt.
Quarterly 17141
Monthly 5830
PSP 5711
If the premium is not paid within the grace period for the first three policy
years the policy will lapse. The policy can be revived by providing
satisfactory evidence and paying all due premiums to the date of
reinstatement with compound interest at the rare prescribed.
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.
• Keep policy in force by the payment of the premium and nominate any
other individual in whom you have insurable interest.
IRR=75% (assuming the person dies in the 10th year of paying the
installments.)
Met-Mortgage Protector Single Pay / Limited Pay is specially designed to protect your
dependents against the liabilities incurred on a housing loan. Available in terms of 5
through 25 years, the Met Mortgage Limited pay version continues even after the
premium paying term is over
Met Mortgage Protector could be the ideal plan for you if you’re looking for -
• An affordable plan that has been designed to help your family repay the outstanding
home loan in case of your unfortunate death.
• Premium payment options – single pay or limited pay
Tax Benefits
The Premium paid under this plan will qualify for the rebate under Sec 88 of the income
tax act 1961 and the returns are fully exempt under Sec 10 (10 D).
You have the choice of paying your premium either in yearly, half-yearly or quarterly
modes, depending on your convenience.