WEALTH MANAGEMENT

SERVICES

General Insurance

Health Insurance

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1.1) Life Insurance:-1
 Life Insurance is a contract between the insurer and the
insured wherein the insurer promises to pay the
beneficiary a sum of money in exchange for a premium on
the death of an insured person or the policyholder. The
Human Life Value (HLV) concept is mostly used to
determine the amount of life insurance to be
recommended to an individual.

1.1.1) HLV Concept:-2

 The HLV concept considers human life as a kind of
property or asset that earns an income. It thus measures
the value of human life based on an individuals expected
1.2) Life Insurance at Bank of Baroda:-3

Our Bank offers Life Insurance products

to its customers through India First Life
Insurance Company (IFLIC) Ltd. IFLIC
Ltd is a joint venture between Bank of
Baroda, Union Bank of India and
Warburg Pincus. The stake holding of
the partners in the joint venture is as
follows:-
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 Bank of Baroda 65%
Union Bank of India 9%
Warburg Pincus 26%

Following products of India First Life Insurance are offered by

Bank of Baroda:-4
 IndiaFirst MahaJeevan Plan – A traditional non – linked
participating plan. This plan also offers Term Rider to
enhance life cover. Guaranteed death benefit and
maturity benefit is the key feature of this plan.
 IndiaFirst Life Cash Back Plan – A traditional non – linked
non – participating plan which offers guaranteed
additions as a percentage of premium paid depending on
the premium paying term. Periodic survival benefits as a
percentage of sum assured and balance sum assured on
maturity is payable under the plan.
 IndiaFirst Life Wealth Maximizer Plan – A unit linked plan
offering three investment strategies to suit your profile. A
plan which provides additions to your fund value for
paying your premiums regularly and Systematic Partial

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 Withdrawal (after completion of 5 policy years) to access
your funds when you require.
 IndiaFirst Life Money Balance Plan – A unit linked plan
offering market linked returns. The Automatic Trigger
Based Investment Strategy helps you to safeguard your
returns from the upside of the equity market.
 IndiaFirst Life Plan – This is a pure term plan which offers
only death benefit. Nothing is payable if the life insured
survives the policy term. This plan offers high cover at
very economical rates.
 Baroda Jeevan Suraksha – A group term plan offering
only death benefit to the group members. Ideal for
employer to take care of the employees’ families in case
of untimely demise of the employee.
 IndiaFirst Group Credit Life Plan – A group term plan to
take care of your loan liabilities so that the burden of
repaying the outstanding loan does not fall on the
shoulders of the family members of the person who has
taken a loan.

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1.3) Standalone Health Insurance:-5
The Health Insurance Regulations of IRDA define health
cover as follows:- “Health Insurance Business” or
“Health Cover” means the effecting of insurance
contracts which provide for sickness benefits or medical,
surgical or hospital expense benefits, including assured
benefits and long term care. There are mainly two types
of Health insurance policies offered by insurance
companies:-

Health Insurance
Schemes

Indemnity Based Benefit Type Policies

Policies

Reimbursement of Provides for lumpsum

expenses incurred as a payment on happening
direct result of disease, illness or injury
hospitalization

Examples include
Available for Daily Allowance or
Individual, Family Hospital Cash Cover
and Group Basis and Critical Illness

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Therefore, health insurance is important mainly for two reasons:
 Providing financial assistance to pay for medical
facilities in case of any illness.

 Preserving the savings of an individual which may

otherwise be wiped out due to illness.

1.3.1) Health Insurance at Bank of Baroda:-6

A wide range of health insurance products are available for

our customers. In purview of the extent regulations, Bank of
Baroda has entered into corporate agency agreement with
two leading Stand Alone Health Insurance companies (Niva
Bupa Health Insurance Co Ltd & Star Health and Allied
Insurance Co Ltd) on 7th May, 2016 for distribution of health
insurance products.

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1.3.2) Niva Bupa Health Insurance Co Ltd.

Following are some of the Health Insurance products

offered by Niva Bupa Health Insurance Co Ltd for Bank of
Baroda customers:-

A) Group Health Insurance- Family Plan

B) Health Plus
C) Health Plus Loan Linked
D) Health Plus SB Attachment
E) Max B-Health
F) Health Recharge- Top up Plan
G) Group Critical Illness Plan
H) Group Personal Accident Plan
I) Group Criti Care Plan

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Star Health & Allied Insurance Co Ltd.
Following are some of the Health Insurance products offered
by Star Health Insurance Co Ltd for Bank of Baroda
customers:-
A) Star Family Health Optima Insurance Plan
B) Star Group Criticare Gold Loan Protect
C) Star Medi-Classic Insurance Policy
D) Star Comprehensive Health Insurance Plan
E) Star Senior Citizens Red Carpet Health Insurance Plan
F) Star Cardiac Care Health Insurance Plan
G) Star Diabetes Safe Health Insurance Plan
H) Star Accident Care Plan

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1.4) General Insurance: -

7Insurance other than ‘Life Insurance’ falls under the category

of General Insurance. General Insurance comprises of
insurance of property against fire, burglary etc., personal
insurance such as Accident and Health Insurance, and liability
insurance which covers legal liabilities. There are also other
covers such as Errors and Omissions insurance for
professionals, credit insurance etc.

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1.4.1) General Insurance at Bank of Baroda:-8
Our Bank has tied up with following partners for offering
various General Insurance Products to our customers:-

1.4.2) National Insurance Company Limited:-

 Householders Insurance: - A packaged policy which
provides a range of covers required for a common
householder.

1.4.3) Tata-AIG general Insurance:-

Following products of TATA-AIG General Insurance are

available for distribution at our Bank:
 Mediprime :- Comprehensive medical insurance without
sub limits which lets you focus on your family’s recovery
without any financial worry.
 Motor Insurance:- A comprehensive package policy
covering “Own Damage + Third Party + Add Ons”
 Travel Guard:-A Travel Plan to take care of any
unforeseen contingency while travelling abroad.
 SME protect:-A specifically developed and designed
product for insurance coverage options under SME.
 Baroda Medicare-TATA AIG

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1.4.4) Chola MS General Insurance

 Group Health Insurance:-A Family floater plan covering

Self, Spouse, Parents and 3 Dependent Children.
 Group Health Insurance-Chola MS
 Group Personal Accident:- Cover for accidental death,
disablement and medical expenses
 Motor Insurance:-Comprehensive insurance cover for all
vehicle classes.
 Fire Insurance:-Covering financial loss following
damage to the property by fire and other specified
named perils.
 Burglary Cover:-Covering of damages caused to
self/premises resulting from actual or attempted
burglary.
 Package Policies:-Combines multiple insurance
products as sections and covers in one insurance.

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1.5) Mutual Fund:-9

 A mutual fund is a pool of money managed by a professional

Fund Manager.
 It is a trust that collects money from a number of
investors who share a common investment objective and
invests the same in equities, bonds, money market
instruments and/or other securities.
 The income / gains generated from this collective
investment is distributed proportionately amongst the
investors after deducting applicable expenses and levies,
by calculating a scheme’s “Net Asset Value” or NAV.
 Simply put, the money pooled in by a large number of
investors is what makes up a Mutual Fund.
The flow chart below describe mutual fund:

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9www.nism.ac.in

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TYPES OF MUTUAL FUNDS SCHEMES

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Products available under Mutual Fund:-
There are wide variety of Mutual fund schemes that cater to
your needs, whatever your age, financial position, Risk
Tolerance and return Expectations. Before investing in Mutual
Fund Schemes; you should know which scheme suits your
requirements.
 Growth Schemes
Aim to provide capital appreciation over the medium to long
term. These schemes normally invest a majority of their funds
in equities and are willing to bear short-term decline in value
for possible future appreciation.
 Income Schemes
Aim to provide regular and steady income to investors. These
schemes generally invest in fixed income securities such as
bonds and corporate debentures. Capital appreciation in such
schemes may be limited.
 Balanced Schemes
Aim to provide both growth and income by periodically
distributing a part of the income and capital gains they earn.
They invest in both shares and fixed income securities in the
proportion indicated in their offer documents. In a rising stock
market, the NAV of these schemes may not normally keep
pace or fall equally when the market falls.
 Money Market / Liquid Schemes
Aim to provide easy liquidity, preservation of capital and
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moderate income. These schemes generally invest in safer,
short term instruments such as treasury bills,

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certificates of deposit, commercial paper and interbank call
money. Returns on these schemes may fluctuate, depending
upon the interest rates prevailing in the market.
 Tax Saving Schemes (Equity Linked Saving Scheme - ELSS)
These schemes offer tax incentives to the investors under tax
laws as prescribed from time to time and promote long term
investments in equities through Mutual Funds. Index fund
schemes are ideal for investors who are satisfied with a return
approximately equal to that of an index. Sectoral fund
schemes are ideal for investors who have already decided to
invest in a particular sector or segment.
 Fixed Maturity Plans
Fixed Maturity Plans (FMPs) are investment schemes floated
by mutual funds and are close- ended with a fixed tenure, the
maturity period ranging from one month to three/five years.
These plans are predominantly debt-oriented, while some of
them may have a small equity component.
 Exchange Traded Funds (ETFs)
Exchange Traded Funds are essentially index funds that are
listed and traded on exchanges like stocks.

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  Capital Protection Oriented Schemes
Capital Protection Oriented Schemes are schemes that
endeavor to protect the capital as the primary objective by
investing in high quality fixed income securities and generate
capital appreciation by investing in equity / equity related
instruments as a secondary objective.
 Gold Exchange Traded Funds (GETFs)
Gold Exchange Traded Funds offer investors an innovative,
cost-efficient and secure way to access the gold market. Gold
ETFs are intended to offer investors a means of participating
in the gold bullion market by buying and selling units on the
Stock Exchanges, without taking physical delivery of gold.
 Funds Investing Abroad
With the opening up of the Indian economy, Mutual Funds
have been permitted to invest in foreign securities/ American
Depository Receipts (ADRs) / Global Depository Receipts
(GDRs). Some of such schemes are dedicated funds for
investment abroad while others invest partly in foreign
securities and partly in domestic securities. While most such
schemes invest in securities across the world there are also
schemes which are country specific in their investment
approach.

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  Fund of Funds (FOFs)
Fund of Funds are schemes that invest in other mutual fund
schemes. The portfolio of these schemes comprise only of
units of other mutual fund schemes and cash / money market
securities/ short term deposits pending deployment. Fund of
Funds can be Sector specific e.g. Real Estate FOFs, Theme
specific e.g. Equity FOFs, Objective specific e.g.

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 Our Bank’s ARN is : 35783
 Likewise, before being employed in sale and/or distribution
of mutual fund products, employees of MFDs are also
required to obtain the relevant NISM certification and
register with AMFI and obtain Employee Unique
Identification Number (EUIN).
 Important terminology used in Mutual Fund Schemes :
 AUM: AUM or Assets under Management refers to
the recent/updated cumulative market value of
investments managed by a mutual fund or any
investment firm.
 AAUM: AAUM or Average Assets under Management
refers to the Average cumulative market value of
investment managed by a mutual fund or any
investment firm.
 Standard Deviation: Standard Deviation is a
statistical measure of the range of an investment’s
performance. When a mutual fund has a high
standard deviation, it means its range of
performance is wide, implying greater volatility.
 Sharpe Ratio: The Sharpe Ratio, named after its
founder, the Nobel Laureate William Sharpe, is a
measure of risk-adjusted returns; it is calculated
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 using standard deviation and excess return to
determine reward per unit of Risk.
 Alfa - It is a measure of an investment's performance
on a risk-adjusted basis.
 Beta: Beta is a measure of an investment’s volatility
vis-à-vis the market. Beta of less than 1 means that
the security will be less volatile than the market. A
Beta of greater than 1 implies that the security’s price
will be more volatile than the market.
 Expense Ratio: The expense ratio is the annual fee
that all funds or ETFs charge their shareholders. It
expresses the percentage of assets deducted each
fiscal year for fund expenses, including 12b-1 fees,
management fees,

10 https://www.amfiindia.com/investor-corner/online-center/locate-mf-
distributor.aspx

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 administrative fees, operating costs, and all other
asset-based costs incurred by the fund.

 EUIN - Employee Unique Identification Number

 AMC - Asset Management Company

 AIF- Alternate Investment Funds

 PMS - Portfolio Management Services

 SID - Scheme Information Document

 CAGR - Compounded annual growth rate


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1.6.1) Bank’s tie-ups for Wealth Management Services

Bank’s tie-ups for Wealth Management Services are listed as under

Name of Tie-up Partner Name of Product Date of

Tie-up
IndiaFirst Life Insurance Life Insurance 16.11.2009
Co. Ltd*

National Insurance Co Ltd General Insurance 01.06.2004

Tata AIG General Insurance General Insurance 18.07.2016
Co Ltd
Chola MS General General Insurance 18.07.2016
Insurance

Star Health and Allied Standalone Health 07.05.2016

Insurance Co Ltd Insurance

Niva Bupa Health Insurance Standalone Health 07.05.2016

Co. Ltd Insurance

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Million Dollar Round Table (MDRT) Program:
The Million Dollar Round Table (MDRT), the Premier
Association of Financial Professionals, is a global,
independent association of the world's leading life insurance
and financial services professionals.

Lev Recognition STEP -1 STEP -2 STEP -3 STEP -4

el Jan 23 to Jan 23 to Jan 23 to Jan 23 to
March 23 June 23 Sept 23 Dec 23

I Million Dollar Rs 40 Lacs Rs 45 Lacs Rs 55 Lacs Rs 60 Lacs

Round Table
(MDRT)

II Court of Table Rs 120 Lacs Rs 135 Lacs Rs 165 Lacs Rs 180

(COT) Lacs

III Top of Table Rs 240 Lacs Rs 270 Lacs Rs 330 Lacs Rs 360
(TOT) Lacs

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