Bajaj steps towards policy portability

Tag : floater switch

Bajaj Allianz Life Insurance has introduced a facility under whichpeople having a health policy of another insurer can make a lateralshift to a similar policy from Bajaj Allianz, while maintaining thecontinuity of their original policy i.e., customers will not losethe premium paid to the earlier insurer.
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The shift, subject to Bajaj Allianz's approval, also requires thatthe immediate preceding year be claim-free.
Portability in health insurance policies is currently beingexamined by the insurance regulator (Irda). At present,policyholders can shift their mediclaim policies within the fournationalised general insurance companies, but such instances arefew.
Ujjaini Dasgupta, head, health insurance, Bajaj Allianz, told DNAMoney, "All that is generally needed is a copy of the existingpolicy and a certificate from the earlier company that the premiumhas been paid. It is too early to forecast a trend, but the optionis definitely there for a lateral shift from similar products."
The company is also preparing to counter the possibility of fraudon such offers. "What we are now looking at is sharing of adatabase of the negative profile of the customer, if any, toprevent frauds and help underwrite better," Dasgupta said.
Bajaj Allianz Life unveiled its national expansion plans for itshealth insurance vertical here on Friday. The insurer also rolledout a new product, Family CareFirst family floater plan, thatcovers policyholders family as well as in-laws.
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E C J Augustine, head, sales and strategic initiatives, BajajAllianz Life said, "Health is one of our key verticals and weexpect to do Rs 120 crore of premium this year from the products wehave at present. We will be introducing new products on women andchildren in the coming months." "The company will aim to sell 2lakh policies and we are looking at cross selling within thegroup," Ujjaini Dasgupta added.
Bajaj Allianz suffered a knock last year, as it has to do away withactuarially funded products, which contributed almost 50% of sales.But the company has been able to reverse the situation through risein sales of other products.
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According to Augustine, the company will lay emphasis on ruralsales, for which it is upping its agent count to 20,000. It willalso have 1,000 unit managers for the new thrust. Overall, thecompany is planning 50,000 additional agents to take their totalcount to 3 lakh.
It is targeting a first premium income of Rs 8,500 crore thisfiscal.
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