Bajaj Allianz Annual Report 2015-16

th16 ANNUAL REPORT 2015 - 2016 Bajaj Allianz General Insurance Company Limited 15 Years of Bajaj Allianz General Insurance On 2nd May 2001, Bajaj Allianz General Insurance received the certificate of registration from IRDA to conduct general insurance business in India. The company started with a paid up capital of Rs. 110 crore with an aim to be the leader in the general insurance sector, to be the customer's first choice and the best employer in the industry. 15 years later, Bajaj Allianz General Insurance continues to sustain this momentum and stands tall amongst its peers as the most customer centric and profitable private insurer in the industry. Since the beginning, the company aimed at creating its own niche in the market and a brand name the customers could relate to, for all their insurance needs. The idea was to be a customer focused market leader, who understood the insurance needs of the consumers and translated them into affordable products that delivered value for money. Bajaj Allianz General Insurance has come a long way since it started its operations. In its first year, the company had 36 offices and around 100 employees and today, it has a presence in over 600 geographies across India with over 4,000 employees. The company also recruits from Tier II and Tier III cities, thus providing employment opportunities to people in smaller towns and cities and giving them a chance to be a part of the insurance industry. With the insurance market being ruled by public sector companies for over half a century, the challenge was to change the customers' mindset and most importantly, earn their trust. Besides, post liberalization, the regulator was ringing in new changes in the insurance industry year on year, thus making it imperative for the company to quickly adapt to change and allow flexibility in its plans, strategies, systems and processes to be able to respond faster to the changing market scenario. However, Bajaj Allianz General Insurance with its strong understanding of the market, high customer service levels, a strong distribution network and constant innovation in terms of products and services, soon became a brand name to reckon within the insurance industry. Despite the evolving market dynamics, in the last 15 years, what has not changed is the company's customer service levels and its clear focus on profitability with growth even as it continues to look at opportunities in an agile manner that is consistent with this objective. 15 Years of Bajaj Allianz General Insurance As a general insurer, Bajaj Allianz General Insurance aimed at becoming a company that offers customers a broad range of innovative insurance solutions to choose from. The company, in its very first year, introduced many major tariff as well as the conventional non- tariff products available in the Indian insurance market. Kicking off its first innovative product, the company introduced Hospital Cash, a daily allowance cover for hospitalization expenses in 2001, followed by many other innovative products such as Liability insurance, Personal Guard, Householders Policy, Health Guard, Farmer's Package and Critical Illness in the formative years. In the course of 15 years, Bajaj Allianz General Insurance has created a strong product portfolio, which includes many industry firsts. For instance, the company was the first insurer to introduce event insurance in the Indian market or the more recent industry first was the introduction of the My Home All Risk Policy cover and a global customizable Personal Accident plan. Bajaj Allianz General Insurance was instrumental in introducing customization of products and services – a breakthrough in the traditional product norms of the industry since the company did not believe in the 'one size fits all' approach. The company has always aimed to be a one-stop shop for insurance solutions for all its customers. The customer centric approach of the company led to the creation of add-on covers that meet the customer's requirement. Through value added services, the company explored newer ways to engage with its customers throughout the year. With add-ons like 24x7 Roadside Assistance, Depreciation Cap, Engine Protector for motor policies and value added services such as discounted rates at hospitals, pharmacies, wellness centers for health policy holders, the company constantly touches base with customers, while these services reduce their out-of-pocket expenses. Believe Beyond Beliefs The importance of innovation in claim settlement drastically reduced the turnaround time from months to days. controlled pricing and settlement of claims. This led to the Insurance wallet Claim Assistance onset of digitalization in the insurance market in India. Bajaj Allianz General Insurance has made its presence felt in social media through a dedicated in-house digital marketing team and today has nearly 20 lakh ardent followers on social media handles such as Twitter and Facebook. all thanks to digitalization. As part of this. Bajaj Allianz General Insurance was also Home Insurance the first insurer to leverage the digital platform and offer speedy services to Travel Insurance policyholders. especially at the time of claims. The company's tie-ups with a range of premier hospitals and garages across the country has helped it settle claims instantly. an android-based mobile application through which agents could instantly issue or renew motor insurance policies for customers. track claims and get information on the company's branches and hospitals and garages. the company has spread its wings across the digital world and initiated real time customer care through customer focused mobile apps that empower them to take all policy-related decisions independently. among others. Besides. The aim was to innovate on the entire customer experience and make it digital by default with no manual intervention. the company became the first insurer in India to issue policies online. Committed to making innovative changes using digitalization. The idea behind online policy issuance was to reduce the time consumed in the manual work from days to Motor Insurance minutes. They could purchase as well as renew policies. The company launched another mobile application. It launched a novel innovation. the company took to digitization in its early days and aimed at paperless claim settlement. The app made it easy for agents to function in today's digital world as it was an end-to-end solution for policy issuance (operations). The company was one of the first in the industry to offer mobile solutions for ease of claims-related transactions of customers. . access policy-related information and value added services. now making it instant. The unique claims initiatives of the company are aimed at better services to customers. intimate and file claims. Bajaj Allianz General Insurance was the first company to break the conventional method of claim settlement through reimbursements and introduced the cashless facility. EEZEE Tab. Insurance Wallet that empowered the customer to conduct all insurance transactions anytime anywhere. Today after 15 years. the next step for the company was to ensure superior claims management. Bajaj Allianz General Insurance issues policies at the Customer Services Motor Insurance I-Inspect Pre-Inspection point of sale and pays claims at the place of occurrence.15 Years of Bajaj Allianz General Insurance INSURANCE DIGITIZATION .A New Era I-Inspect Pre-Inspection In addition to its unique product offerings. where the customer would not have to shell out any money from his/her pocket. Having set the pace with its innovative products and service offerings. The story of Bajaj Allianz General Insurance from a GWP of Rs 141 crore to Rs. is one of how the company grew from strength to strength. which not only consumed a lot of time but also led to discrepancies and higher customer complaints. employee strength of 141 to over 4000 and eight regional offices to presence in over 600 cities and towns. The company was the first health insurer in the industry to open an in-house Health Administration Team to settle claims in 2004. Tier III as well as other remote. With 500 Virtual Offices across India today.15 Years of Bajaj Allianz General Insurance Traditionally. The All Women Branch initiative was started as a pilot project in the head office with 30 agents and today the initiative has 1000 agents associated with it in 30 branches and has given women who had taken a break from their careers. Whenever a natural catastrophe hits the country. In 2014. The company is known as the best general insurer not only in India but across Asia Pacific for its customer-centric initiatives and claims management services. to the more recent J&K floods where the company settled over 32. Bajaj Allianz General Insurance has constantly intensified its efforts to assist customers in every possible way and settle claims faster and seamlessly. thereby aiding them in rebuilding their lives. The team has implemented learning through gamification. Bajaj Allianz General Insurance's effort to reduce this dependency resulted in the creation of an in-house TPA in the form of a Health Administration Team (HAT). . the company has successfully leveraged digitalization to penetrate Tier II. the company started two strategic initiatives for demographic and geographical expansion in the country namely Virtual Offices and All Women Branches. In the last decade. built talent pipelines and created a highly engaged workforce and has been providing employment opportunities for people even in smaller towns and Tier II and Tier III cities.The induction of medical professionals into the company for faster and better claims settlement brought in more transparency and hastened the process. the teams immediately get into action to form helpdesks and dedicated help lines and streamline the claim settlement processes to ensure speedy financial relief to the customers. the Mumbai floods when it settled over 4. Bajaj Allianz General Insurance took a step forward to reach its customers faster and help them in their times of need.000 claims worth Rs 341 crore. an opportunity to make a comeback professionally.000 claims worth over Rs 1. health insurers were highly dependent on external Third Party Administrators (TPAs) to settle health claims.000 crore. Bajaj Allianz General Insurance has also been adjudged an Aon Best Employer for its transparent work culture and superior HR practices. the country witnessed many natural calamities and during each event. From the first big natural calamity to hit the country since the company's inception viz. 5900 crore. untapped markets and made insurance solutions available. with its prudent underwriting norms and the philosophy of growth with profitability is the only insurance company in the industry to have been profitable since its inception. Given the strong support of its distribution network. Keeping up with the rigorous changes in the industry. brokers to increase its footprints. the company would continue to offer the best-in-class services to its customers and keep evolving with the times to innovate and create many more industry-first products. agents. With the constant support of its partners and external stakeholders. In the future too.15 Years of Bajaj Allianz General Insurance The biggest enablers for Bajaj Allianz's growth have been its business partners. the company expanded in volumes and today has an impressive market share of 6. the company has consolidated its fundamentally strong position in the industry in a short span of time. Today. All the facets of the company. in- house TPAs. after more than a decade since its origin. despite challenges. . Since its inception the company has forged strong alliances with motor manufacturers. including policy issuance.7%. claims renewals. Bajaj Allianz General Insurance constantly strived to succeed and keep its motto of profitability with growth intact. HR and in-house IT evolved remarkably to help expand the company's business. banks. the company proudly stands as one of the largest private general insurer in the country. The company. Awards & Recognition Awards won by Bajaj Allianz General Insurance in 2015 .2016 Claims Award Asia 2015 Insurer Claim of the Year & Claims Innovation of the Year Engage Digital Summit 2015 TISS. 2015 Seven awards for excellence in Digital Bronze Medal for Best L&D Team Best General Insurance Company Marketing & Communications of the Year of the Year Ranked 2nd amongst top health L&OD Best Leadership Silicon Valley Business Award insurance brands in the country Development Programme Awards 2015 in the Best Financial app on the basis of customer loyalty Silver Medal for Best Entry Level Best overall app for Insurance Wallet Leadership Programme in Asia. 2015 Based on a survey conducted by Indian Market Research Bureau (IMRB) SKOCH Smart Technology Awards 2015 SKOCH Order of Merit for its innovation Insurance Wallet .Chief Learning Vijayavani BFSI Excellence Award Officer's Awards Award. Pharma Leaders Power Mega Corporate Film Punjab & Haryana Brands Award 2015 Festival and Awards 2016 Recognizing the efforts of the TP Most Admired Health Insurance Four awards organized by LNOD Claims team for settling over 150 Company of the Year (Learning and Organizational cases in National Lok Adalats Development Roundtable) Outlook Money Awards 2015 Inspiring Work Places Economic Times Best Runner-up in the Health Insurance Awards 2015 Corporate Brands 2016 Provider of the Year category Best HR & Talent Practices An outcome of the ET Best Category by Banking Frontier Brands Survey .Awards & Recognition Awards won by Bajaj Allianz General Insurance in 2015 .2016 Aon Best Employer 2016 Highlighting the company’s excellence in promoting a transparent culture and healthy work environment Certificate of Appreciation from High Courts of Rajasthan. Lila Poonawalla Mr. Ropar. Bajaj Finserv Limited.Board of Directors Mr. Sanjay Asher Director. Also President (Insurance) MD Mukand Ltd. Director. Poddar Developers Ltd. Dipak Poddar Mr. of Indian Institute of Also former MD Technology. Bajaj Finserv Ltd. Southern Europe. Crawford Bayley & Co. Africa and India at Allianz SE. Also Vice Chairman. (Alternate Director to Also former CEO. Rahul Bajaj Chairman Also MD. Also Partner. Suraj Mehta Mrs. Also Chairman. Board of Governance Mr. Bajaj Finserv Ltd. of Alffa Laval – Tetra Pak India Mr. Board of Management. Bajaj Finance Ltd. (Mrs. Insurance Western & Bajaj Finserv Ltd. Ranjit Gupta Director. Sergio Balbinot Mr. . Also Executive Chairman.) Asha Joshi Appointed Actuary Mr. Bajaj Auto Ltd. Bajaj Holdings & Investment Ltd. Also Consultant Director. Also Chairman. Mr. Independent Director. Manu Tandon Independent Director. Heinz Dollberg Mr. Also member of Director. Niraj Bajaj Mr. Also Chairman & Director. Nanoo Pamnani Mr. Heinz Dollberg) NABIL Bank Ltd. formar CMD Elantas Beck India Ltd. to Allianz SE. Milind Choudhari Chief Financial Officer Dr. LLP and M/s. LLP. Onkar Kothari Company Secretary & Compliance Officer Statutory Auditors M/s. Mr. Bajaj Holdings & Investment Ltd. Independent Director. BSR & Co. Independent Director. Walker Chandiok & Co. Middle East. Sanjiv Bajaj Mr. Mr. Tapan Singhel Managing Director & Chief Executive Officer Mr. few things 3. ensuring growth with profitability for a sustainable future and pricing. being the best employer in the Industry. The company maintained its credit rating of iAAA awarded by ICRA combined ratio of 99. have been 2. we once again emerged as one of the most financially robust insurers in the industry with a 6. However. Some of our key performance indicators for paying ability. Combined ratio of 99. 564 crores. the year under review are: 2 . 4. which signifies the highest claims due to the Chennai Floods. We reached out to 411 new territories through our strategic 2015-16 was a year where we scaled our operations. 5901 crores. 5901 crores growth of 11.113 dated 2nd May 2001 MD & CEO's Message Tapan Singhel MD & CEO Dear Friends We have come a long way in the last 15 years.3% despite Nat Cat events once again remain constant – our obsession with delivering superior customer emphasizes our prudent underwriting model and risk based value. which is a gross written premium of Rs. Industry and have won numerous accolades. opportunities and frequent touch points that enabled us to tailor our offerings for our customers and reach out to untapped markets. We have grown in scale. from 29 offices and a 1.8 lakh claims. and home insurance. brought in unique offerings. The company continues to be one of the most profitable insurers in accredited for innovations that paved the way for reforms in the the industry with a Profit after Tax of Rs. Most importantly.3% despite paying claims worth Rs. and a business that is spread across 600 geographies. We issued over 83 lakh policies and settled over 7. also diversified our portfolio with a greater emphasis on retail health which represents a significant proportion in the industry. We 5.Bajaj Allianz General Insurance Company Limited IRDA Registration No.3%. 141 crores to a revenue of Rs. our strategic initiative Virtual Office. 164 crores for the 10th consecutive year. selling over 2 lakh policies through this investments bore fruit and digitalization offered us newer digital distribution platform. The Gross Written Premium grew to Rs. overcome challenges. • Claims Awards Asia 2015 conferred Bajaj Allianz as the Insurer Claims Team of the Year for its claims management Technology and digitalization continue to be instrumental in changing during the Nat Cat events of J&K and Andhra Pradesh. These initiatives are a great example of how simplicity of the first-choice insurer for over 72 lakh Indians and being the number products. Insurers cannot bring this change 2015 in the Best Financial app and Best overall app individually. The the way the industry functions with all the players in the ecosystem company also won an award for the Claims Innovation of the working towards digitizing not only the processes or distribution Year for its best in class claims management models in networks. but was also honored for its superior practices in every financial year also saw the regulator pushing for distribution reforms segment of the business: through initiatives like point of sale and multiple corporate agent guidelines. but also aspects like product and service offerings. Besides. While digitization will continue to be the catalyst in improving penetration. Bajaj Allianz continues to live up to its vision of being Minister. our business partners The biggest breakthrough for the Industry last year was the financial and the regulator. We will remain transform the entire industry and improve penetration. the need of the hour is to shift • The company was awarded Silicon Valley Business Award focus to customer centricity. Warm Regards Tapan Singhel MD & CEO 3 . a robust distribution network and use of technology can one insurer in terms of creating shareholder value. employees. highlighting the company's excellence in In the coming year.2016 MD & CEO's Message 7. I would growing prominence of retail health insurance in the books of insurers. • Recognized as the Economic Times Best Corporate Brand. During the year. insurance products and transactions are hassle free. The journey towards being one of India's leading general insurance • Emerged as the runner-up in the category Health Insurance companies and the milestones that the company has achieved in the Provider of the Year at the Outlook Money Awards 2015. we will have to create a need for promoting a transparent culture and healthy work insurance in the country taking into consideration the frequent environment. remains a major challenge is the price war that continues to have an adverse impact on the industry's profitability and combined ratio. support and trust of our customers. along with designing employee-friendly policies. like to thank you all for the unstinted support for the last 15 years and look forward to our journey ahead. • Bajaj Allianz General Insurance was recognised as the Aon Best Employer 2016. Another significant development was the market leader by offering best-in-class products and services. which remains committed towards being a responsible and customer-focused an ongoing challenge. the last 2015. as an industry. short span of 15 years would have not been possible if it was not for the for its exemplary contribution in the health insurance space. With the undeterred commitment and passion of inclusion initiatives like PMSBY and PMFBY launched by the Prime our employees. It will need collaborative efforts by all stakeholders so that categories for its customer app Insurance Wallet. 16th Annual Report 2015 . not only was the company awarded as the Best which I believe will see a larger share in days to come in the light of General Insurance Company by Vijayavani BFSI Excellence Awards increased awareness and rising medical inflation. occurrences of Nat Cat events. This will encourage more Indians to cover their risks. What managing health related claims. 301 4.4% 91.790 2. 4 .6% 1.4% 17.255 959 836 793 673 575 412 Assets Under Management   9.3% Available Solvency Margin (ASM) to Required Solvency Margin (RSM) Ratio 2.6% -5.4% 131.725 2.048 1.4% 18.38 0.8% 31.2% 14.8% Net Premium Ratio Underwriting Balance Ratio -1.5% 104.8% 17.2% -0.756) (2.972 2.9% 95.753 1.225 1.9% 14.224 3.4% 93.55 1.1% 2.901 5.054) (2.7% 5.141) (943) (836) (769) (672) (646) (549) (599) (520) (345) Underwriting Results (65) 83 (4) (62) (180) (238) (83) (91) (31) 16 Recurring Investment Income 726 648 570 472 366 278 219 204 140 77 Non-Recurring Investment Income 111 40 7 (4) (1) 2 9 16 50 12 Others (0) 6 14 16 9 20 34 20 9 12 Profit Before Tax 771 777 587 422 194 62 180 150 168 117 Provision for Tax (207) (215) (178) (126) (70) (19) (59) (55) (62) (42) Profit After Tax 564 562 409 295 124 43 121 95 106 75 Shareholder's Equity 2.1% -7.1% 14.701) (1.8% 4.9% 43.1% 16.761 3.3% 71.479 2.1% 73.5% 11.7% 8.56 Ratios are computed in accordance with and as per definition given in the Master Circular on Preparation of Financial Statements dated 5th October 2012 and subsequent corrigendum thereon dated 3rd July 2013.Bajaj Allianz General Insurance Company Limited IRDA Registration No.9% Technical Reserves to 136.41 0.803 Net Written Premium 4.0% 102.129 2.0% 57.2% 15.582 3.9% 73.9% 103.73 1.360) (946) (556) Net Commissions (94) (49) (135) (99) (75) (40) (32) (24) 19 79 Management Expenses (1.025 3.387) (1.1% 10.975 2.464 4.859 6.24 0.8% 72.71 1.828 2.211 7.1% -7.2% 25.676 3.4% 70.3% 15.27 0.1% 99.0% 40.6% Liquid Assets to liabilities ratio 0.3% 96.6% 138.967 5.6% 82.1% -0.6% 11.4% 77.82 1.311 1.584 4.8% 108.2% 141.7% 1.758 3.506 3.9% 5.8% -4.0% 144.2% -1.3% 72.2% 93.6% 30.9% 72.0% 1.3% 73.9% Combined Ratio 99.2% 43.1% 129.6% 3.6% 23.924 2.475 Employee Count ( In Nos) 4.7% 98.9% 66.845 4.51 1.9% 17.3% 24.696 2.5% 12.664 1.7% 30.7% 19.6% 37.475 2.8% 43.1% 1.32 0.1% 79.493 2.040 Net Earned Premium 4.36 0.0% 77.891 1.9% Operating Profit Ratio 13.832 3.24 0.89 Return on Net worth 20.540 Key Ratios Particulars 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 Growth in Gross Written Premium 11.009 3.31 0.884 1.150 1.908) (1.687 3.6% 138.0% Growth Rate of Net Worth 25.9% 34.7% Net Incurred Claims to Net Earned Premium 72.2% 3.2% 15. Particulars 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 Gross Written Premium 5.6% 71.9% 11.7% 32.5% 33.8% 66.6% Expenses of Management to Net Written Premium Ratio 31.654 3.8% 1.4% -0.9% -4.5% 75.2% 9.23 0.525) (2.572 4.2% 18.8% Net Retention Ratio 77.6% 68.113 dated 2nd May 2001 Financials Highlights ` in Cr.4% Growth in Net Earned Premium 10.1% -2.603 2.6% 2.5% 36.0% 68.0% 39.0% 13.1% 28.7% 30.0% 4.007 1.203 2.2% 11.4% 18.62 1.4% -10.118) (1.578 1.4% 33.866 2.56 1.79 1.973 3.5% 3.2% 108.7% 48.3% Net Commission Ratio 2.473 3.5% 14.109 3.415 839 Net Incurred Claims (3.4% 33.1% -2.96 1. IRDAI website and IRDAI Handbook of Insurance Statistics.418 77.701 35.6% for FY 2016 in terms of Gross Direct Premium.2016 Directors' Report Directors' Report for the financial year ended 31st March 2016 Sanjiv Bajaj Chairman Your Directors have pleasure in presenting their Sixteenth annual report & audited Financial Statements for the Financial Year 2015-16. State of Companies affairs & Financial Summary or Highlights Industry Update The general insurance industry in India posted a growth of 12. 5 . excluding reinsurance accepted. with Motor and Health segments recording the strongest growth.832 5.717 42.149 Private Sector 13% 10% Public Sector 47. Gross Direct Premium in India (excluding reinsurance accepted) (` crore) FY2016 FY2016 FY2015 FY2015 Bajaj Allianz 5.663 Industry 13% 10% Gross Direct Premium Growth Rates Source: GI Council figures.514 Public Sector 12% 10% Industry 87. 16th Annual Report 2015 .230 Bajaj Allianz 12% 16% Private Sector 39. 9% combined ratios in the industry and vindicates your Company's strong underwriting focus and cost management skills. compromising quality of risk and minimum profitability benchmarks. Although third party loss ratios FY2015 have reduced over the last few years. Net written premium 4. Insurers are Profits required to achieve the overall third party premium obligation based on the weighted average of the company's overall market share and Your Company earned Profit Before Tax (PBT) of Rs. which offers 24x7 ease of buying. The Net Earned Premium. During FY 2016. primarily a weather based crop insurance scheme. this segment would start providing a reasonable economic profit. with the city of Chennai stand-alone health insurers) at 6. 777 crore during the previous financial year.920 to absorb large losses without impairing policyholders' security . Your Company wrote gross 2016 as compared to Rs.5% 28. This is not expected to have a material impact Your Company recorded an underwriting loss of Rs. the Insurance Regulatory and Development Underwriting Results Authority of India (IRDAI) has dismantled the Indian Motor Third Party Declined Insurance Pool.301 years.411 as against 716. 3. your Company sold over 84 Lakhs policies as Despite these losses.149 crore under this segment and fulfilled over 97% The Profit After Tax (PAT) for FY 2016 was Rs. The growth as well as profitability of agricultural 69% of the business. for FY 2016 was Rs. sales channel. writing business of Rs.301 Profit before tax 771 777 crore during the previous year. Program. 5. In a market that is highly competitive. as well as cooperative and rural banks. your Company wrote 70% of its GWP from motor and health insurance. previous financial year. Your Company continued to participate in the National Crop Insurance agricultural insurance and miscellaneous lines. 6 . 5. as defined by Claims Ratio 72. Your Company being the worst hit.7% recorded in FY 2015. demonstrating its ability number of claims reported in FY 2016 was 784. solvency margin remains healthy and well above the minimum required by regulations. marine. Motor and Bancassurance continue to be Your Company issued over 50. as compared to underwriting profit of Rs. marred by natural catastrophes. grew by over 15% during FY 2016. 564 crore as compared to its minimum obligation. The month of November 2015 witnessed sector and maintained its market share (excluding specialized and unprecedented floods in the state of Tamil Nadu. From 1st April 2016. It is ideally suited for off-the-shelf retail products like Motor and Health. 368 crore during FY 2016 (previous year 459 crore).224 crore as against Rs.7% during FY 2016. Its reported during the previous year. continues to pursue efforts to retain renewal business.572 4. 771 crore during FY motor market share for the previous year.1 crore. Rs. Motor Third Party Insurance Effective 1st April 2016. including reinsurance accepted. 562 crore during the previous Financial Year.000 policies across 22 districts insuring the mainstay of your Company's channel mix.000 claims worth Rs. with a net pre-tax impact.7% against 96.113 dated 2nd May 2001 Directors' Report Directors' Report for the financial year ended 31st March 2016 Business Update Chennai Floods FY 2016 was a tough year in terms of claims for the industry as well as for Your Company continued to retain the second position in the private your Company. With its Agriculture Insurance Business strong retail focus. Your Company has one of the largest networks of business during FY 2016 has been adversely affected by the limited independent partner banks including nationalised banks with strong opportunity for the private insurance companies to get into the crop regional presence. the IRDAI has increased the motor third party Summary of Financials (`crore) FY2016 premium rates by around 20% on average.Bajaj Allianz General Insurance Company Limited IRDA Registration No.009 Business Performance during the Year Underwriting results (65) 83 Your Company's Gross Written Premium.3% 96. where it has strengths in distribution and claims handling capabilities. It is hoped that over the next few Gross written premium 5. 65 crore during FY on the company's profitability as your Company had met its obligations 2016. premium of Rs.9% Master Circular on 'Preparation of Financial Statements of General Insurance Business' issued by the IRDA. 1. During the year. The loss arose largely due to the impact of the catastrophic floods in Chennai. 4. The online insurance program of the states and deficient monsoon conditions. The Combined Ratio. this is one of the best Return on average equity 22. contributing to around over 40 lakh farmers. the incurred claims are still more than the premiums for the industry. The profitable amongst peers of comparable size. your Company has been able to remain the most compared to about 73 Lakhs during the previous financial year. Your Company settled over 6. grew by 10% at Rs. with the rest coming from fire. 83 crore during the under the said pool for the last three years.832 crore during the previous year.3% 71. which measures the premium retained after reinsurance and reserves for Profit after tax 564 562 unexpired risks.901 5. Your Company's focus continues to be on retail business. after reinsurance of Rs 80.901 crore as compared to Rs. for FY 2016 stood at 99. Retail channels like Agency. IRDAI notified Regulations on the ‘Obligation of Insurer in respect of Motor Third Party Insurance Business’. without 164 crore.3% as Combined Ratio 99. Policy on Directors' appointment and remuneration. 2013 during the year Year' at the Claims Award Asia 2015. Detailed Expenditure in foreign currency Rs. Your Company continues to be one of the most efficient users of capital in the private sector as (a) in the preparation of the annual accounts. investment philosophy is based on strong cash generation. 16th Annual Report 2015 . 486 crore The Board of Directors met four times during the year. Your Company's and for preventing and detecting fraud and other irregularities. Solvency and Shareholders' Funds Directors' Responsibility Statement The Shareholders' equity of your Company stood at Rs. independence of a Return on Equity Director and other matters provided under Section 178(3) of the The return on average equity for your Company during FY 2016 was Companies Act 2013 is annexed. Investments and Investment Income (c) the Directors have taken proper and sufficient care for the The investment duration of the portfolio is actively monitored. your Company continued its award winning streak. 7 .211 crore as against Rs.790 crore as at In accordance with the requirements of Section 134(3)© of the Companies 31st March 2016 as against Rs. 2013 (the Act). your Company has been able to maintain its solvency them consistently and made judgments and estimates that are ratio at 251% as at 31st March 2016. prudent investment of surpluses keeping in mind the obligation to pay claims when they arise. which is well above the regulatory reasonable and prudent so as to give a true and fair view of the requirement of 150%. being an Insurance Company. 2013 read with Rule 12 (1) of the Companies The Company. explanation relating to material departures.9 is annexed to this report. 7. through an Asset Liability the provisions of the Act for safeguarding the assets of the Company Management model as well as its solvency position. 838 Directors' Remuneration Policy crore as against Rs. 9. Related Party Transactions Recognition & Awards All related party transactions entered during Financial Year under During FY 2016. which have occurred between the paying ability awarded by ICRA. 696 crore in the previous year. keeping maintenance of adequate accounting records in accordance with in mind the duration of liabilities. (e) the Directors have devised proper systems to ensure compliance The assets under management represented by cash and investments with the provisions of all applicable laws and that such systems are as at 31st March 2016 stood at Rs. 400 crore information about dates of meetings and attendance of Directors thereat is given in the annexed Corporate Governance Report. positive attributes. review were on arm's length basis and were in the ordinary course of the more notable being recognized as AON Best Employer 2016. Despite absorbing additional losses arising out of natural catastrophes (b) the Directors have selected such accounting policies and applied during the year. 2. have nothing to MGT. 2.352 crore or about 17%. There were no material contracts or arrangement or 'Health Insurance Provider of the Year' at the Outlook Money Awards transactions at arm's length basis that needs to be disclosed in Form 2015. Any shareholder interested in obtaining such information may write to the Company Foreign Exchange Earnings and Expenditure during Secretary at the registered office of the Company for a copy thereof.859 crore adequate and operating effectively. Extract of the Annual Return Conservation of Energy & Technology Absorption The extract of Annual Return prepared pursuant to section 92(3) of the Companies Act. 1. The investment income for FY 2016 was Rs. backed by (d) the annual accounts have been prepared on a going concern basis. as at 31st March 2015. under review. 'Insurer Claims Team of the Year' and 'Claims Innovation of the AOC-2 as required under the Companies Act.5% as against 28.225 crore as at 31st March 2015. 2014 in the prescribed Form manufacturing activity. business. the applicable measured by the ratio of gross written premiums to capital infused and accounting standards have been followed along with proper by gross written premiums to shareholders' equity. 22. including criteria for determining qualifications. This is the highest rating for claims financial position of the Company. sent to shareholders excluding the said information. FY 2016 Number of Meetings of the Board Earnings in foreign currency Rs. state of affairs of the Company as at 31st March 2016 and of the profits of the Company for that period.2016 Directors' Report Directors' Report for the financial year ended 31st March 2016 Capital. end of Financial Year of the Company and the date of this report. Credit Rating Material Changes and Commitments Your Company maintained its credit rating of “iAAA” awarded by ICRA There have been no material changes or commitments affecting the for the ninth consecutive year. the Board of Directors wishes to confirm that: new capital was infused during the year. an increase in investible surplus by Rs. does not have any (Management and Administration) Rules. This report and accounts are being report on conservation of energy and technology absorption. therefore.9% in the previous year. No Act. The Directors. Prohibition and Redressal) Act. 06841619) ceased to be an Alternate Director to Mr. Heinz Dollberg (DIN Composition of Committees 00168797) and Mr. Particulars of Employees b) A consolidated summary of the ratings given by each of the As required by the provisions of Rule 5(2) of the Companies Directors was then prepared. management policy for the company including identification therein In light of the provisions of the Companies Act. 12th May. have offered themselves for reappointment. insurance companies issued by IRDAI (Corporate Governance Report) Mr. Performance Evaluation of the Board. 00006170) as a member of the Board and of its Committees. by rotation at the ensuing Annual General Meeting and.f.e. 16th May.e. 01816985). Manuel Bauer (DIN 03443230) and Mr. Disclosure under the Sexual Harassment of Women at Workplace (Prevention. its Committees and Individual Directors (except for the Director being evaluated) for the year under review. 2016. Khan (DIN 00006170) as Additional (Independent) Director for five years w.Bajaj Allianz General Insurance Company Limited IRDA Registration No. Khan (DIN the FY 2016. Any shareholder interested in obtaining such information may write to the Company Secretary at the registered c) The report of performance evaluation so arrived at was then office of the Company for a copy thereof. in accordance with Section 134(3)(p) of the Internal financial controls with reference to the financial statements Companies Act 2013. respect of the performance of the Board. Mr. Sergio Balbinot (DIN 01629245) were appointed in These details are provided in the Corporate Governance Report their places as Additional Directors. 2016 and has been appointed as Alternate Director to Mr.113 dated 2nd May 2001 Directors' Report Directors' Report for the financial year ended 31st March 2016 Risk Management Policy The Independent Directors have submitted declarations stating that they meet the criteria of independence as provided in Section 149(6) A statement indicating development and implementation of risk of the Companies Act. Mr. Ernst & Young LLP. 2013 during the appreciation of the valuable contributions made by Mr. 2013. formal annual performance evaluation of the were adequate and operating effectively. 12th January 2016.e. Corporate Social Responsibility Significant and Material Orders Passed by the Report on Corporate Social Responsibility Policy developed and implemented by the Company and CSR initiatives taken during the Regulators or Courts year pursuant to Section 134 and Section 135 of the Companies Act. performance evaluation was prepared by the Chairman in 2014. Mr.e. out in the following manner: to conduct an assessment of adequacy and operational efficacy of internal financial controls in the Company. retire Company has been given in the Corporate Governance Report. Board. S H Khan (DIN 00006170). Kamesh Goyal (DIN 01816985) w. its Committees and This report and accounts are being sent to shareholders excluding the Directors individually. 2013 Mr. Prohibition and Directors & Key Managerial Personnel Redressal) Act. 7th March Corporate Governance 2016 subject to the approval of the shareholders in the ensuing Annual A report on compliance with the Corporate Governance Guidelines for General Meeting. resigned as Directors of the Company w. financial 8 . being eligible. if any. Manu Tandon (DIN Establishment of Vigil Mechanism 00087615) resigned as Independent Director of the Company w. which may pose significant risk to the (DIN 00014529) and Mr. Kamesh Goyal (DIN is annexed along with a certificate from the Company Secretary. Independent Director of the Company No cases were filed pursuant to the Sexual Harassment of Women at passed away on 12th January 2016 at Pune.f. The Company has established vigil mechanism in the form of Whistle Heinz Dollberg (DIN 00168797) w. Blowing Committee for the employees to raise concerns internally about possible irregularities. based on which a report of (Appointment and Remuneration of Managerial Personnel) Rules.f. or Courts or Tribunals during the year under review impacting the going concern status of your Company and it's operations in future. governance weaknesses.f. George Sartorel (DIN annexed to this report. Nanoo Pamnani (DIN 00053673) replaced Mr. evaluation of performance of the Board. discussed by the Nomination & Remuneration Committee and Board at their meetings held on 19th May 2016. said information. your Company appointed M/s. report of which has been a) Rating sheets were filled by each of the Directors with regard to submitted to the Audit Committee of the Board.f. Ranjit Gupta (DIN 00139465). Mr. The Board placed on record Workplace (Prevention. Directors. There were no significant and material orders passed by the Regulators 2013 is annexed. the names and other particulars of the employees are annexed.e. 2013. its Committees and the Directors individually has been carried During the FY 2016. its Committees and Directors Adequacy of Internal Financial Controls For the FY 2016. 31st August 2015 and 12th January 2016 respectively and Mr. Rahul Bajaj of elements of risk. 2015 on 16th February 2015. Shyamprasad Pune. statements to IRDAI from the quarter ended 31st December 2016 onwards. the Company has appointed Mr. The Secretarial Audit report for the financial year ended on 31st March 2016 is annexed to the Report. Insurers also need to submit proforma Ind AS financial deliver value to all our stakeholders. with comparatives for the period ending 31st unstinted faith in your Company and we are confident of continuing to March 2018. Government of India has guidance in the working of the Company. Bajaj Finserv Limited and Allianz SE for providing strategic direction to and The Ministry of Corporate Affairs (MCA). For and on behalf of the Board of Directors of Bajaj Allianz General Insurance Company Limited Secretarial Auditor Sanjiv Bajaj (DIN 00014615) Pursuant to the provisions of Section 204 of the Companies Act 2013 read with Companies (Appointment and Remuneration of Managerial Chairman Personnel) Rules 2014. The insurers are required to comply with Ind AS On behalf of the Board of Directors. 19th May 2016 Limaye (Membership No. we thank your Company's for financial statements for accounting periods beginning from 1st policyholders. intermediaries and reinsurers for reposing their April 2018 onwards. 1587). notified the Companies (Indian Accounting Standards) Rules.2016 Directors' Report Directors' Report for the financial year ended 31st March 2016 reporting issues or other such matters of irregularities. 16th Annual Report 2015 . 9 . The Board is grateful to the IRDAI and other regulatory authorities for the concerned person may approach the Chairperson of the Audit their continued support. Implementation of Indian AS Your Directors take this opportunity to thank the promoters. Your Company's performance during the year would not have been possible without the commitment and hard work of the employees. Committee. The Audit Committee oversees the vigil mechanism of the Company. The said vigil Appreciation & Acknowledgment mechanism provides adequate measures to safeguard the persons who take recourse to such vigil mechanism and in appropriate cases. Company Secretary in Practice to undertake the Secretarial Audit of the Company. has Master's Company w. He is an engineering graduate from Massachusetts Institute of Promoters of the Bajaj Group. as Additional Directors w. Middle Sweden along with numerous other national and international East. has Development.f. in place of Late Mr. Sanjay Asher is a Partner of M/s. Starting from 1988. 12th May 2016 and has been appointed as Alternate Economics. Rahul Bajaj. Sergio Balbinot were appointed in their places Railway Institute of Mechanical & Electrical Engineers. Director. Director. Royal order of the Polar star from the King of of Management.e. Mr. Pune. the private sector bank in Nepal. Mumbai and Masters in 10. Suraj Mehta. Member of the Board award in 1989. Kamesh Goyal. who passed away on 12th January 2016.f. serves as an Business Administration from Harvard Business School.Bajaj Allianz General Insurance Company Limited IRDA Registration No. Ranjit Gupta. USA.e. Heinz Dollberg w. Mr. Khan. 7th March 2016 privatization of the public sector enterprises. 16th May 2016. and was than 42 years of experience in the banking. Mr. Independent Director. Board of Directors The Board of Directors consists of 13 Directors. Heinz Dollberg. from Sydenham College of Commerce & Economics. has a Bachelor's degree in Arts (Honours) from Bombay University (stood first in 2. Mr. Dipak Poddar. UK and MBA from Harvard NABIL Bank Limited. Prior to his Director.e. Middle East and North Africa in collaboration with Allianz and none of the Independent Directors are close relatives of any other offices across the region. Niraj Bajaj.113 dated 2nd May 2001 Annexure to the Directors Report for the year ended 31st March 2016 Corporate Governance Report The Corporate Governance Guidelines dated 5th August 2009 (the Guidelines) for the insurance companies issued by Insurance Regulatory and Development Authority of India (IRDAI) outlines the framework of corporate governance policies and practices followed at the Company. USA. 9. Director. 7. Manu Tandon resigned as Independent Director of the 8. at Bajaj Finserv Limited. 4. S H Khan. Securities Broking and Software 1.f. BPL Limited. The CEO of the Company. resigned as Directors of the President – Insurance. who is currently working as Manuel Bauer and Mr. Mr. Chairman. Sanjay Asher is an Independent Director. Mr. as the Managing Allianz SE and now is consultant to Allianz SE. Mr. Director. 10 . Retired from Independent Directors. He Executive Chairman of Poddar Developers Ltd. Mrs. Heinz Dollberg and Mr. auto and financial an invitee to the Department of Disinvestment's Committee for services sectors. Business School. Mr. Mr. he was Senior Vice President looking after operations of the Company and all other Directors are Non-executive Directors in Asia. Independent Director. The Chairman retirement. is a mechanical engineer. She is the Chairperson of the Board of the Bajaj Group of Companies.f. He has also worked as the Chief Executive Officer of done M Sc from University of Warwick. USA. has done his B. He is also the has been Co-Chairman of Mukand Ltd since July 14. Ropar. Africa and India at Allianz SE awards. Mr. Mr. Technology. Asia Pacific Division of Allianz SE in Munich. Mr. 2007 and Chairman of Monotona Securities Limited and Monotona Tyres serves as its Managing Director. Degree in law. Master Degree in Business from COEP. Insurance Western and Southern Europe. as Independent Director for five years w.e. Governors of Indian Institute of Technology. Independent Director. Mr. Poonawalla has Bachelor's Degree in Mechanical Engineering 5. Nanoo Pamnani. is an Honors graduate in Economics 11. Mehta has held key management positions in India and abroad with ANZ Grindlays Bank till the year 1994. Nanoo Pamnani replaced Mr. He is considered Chairperson of Lila Poonawalla Foundation and also former CMD as one of the most successful business leaders of India and heads of Alfa Laval-Tetra Pak India. also serves as Non-Executive Independent Director of Director to Mr. Crawford Bailey & Co. Sanjiv Bajaj. Mrs. 31st August 2015 and 12th January 2016 respectively and Degree in Mechanical & Electrical Engineering from the Indian Mr.e. who has honors in Company w. was the Geographic Head for the group's four businesses which included Investment.f. Sergio Balbinot. She has been presented the “Padmashree” Administration from University of Bologna. Mr. Com. which includes 4 6. Mr. Pamnani has been appointed as an standardizing the transaction documents in relation to Independent Director for a period of 5 years w. He has more Mr. Niraj Bajaj is one of the Ltd. Lila Poonawalla. is the and Law and MBA from Harvard Business School. Banking. 16th October 2015 and 12th January 2016 respectively. He is a the University in Economics Major) in 1960 and a bachelor's Commerce and Law Graduate from Mumbai University and a degree in Economics from the London School of Economics fellow member of the Institute of Chartered accountants of India.e. He is currently the Managing Director of Bajaj Finserv Limited. He The list of Directors as on 31st March 2016 and other major offices held was the Chief Executive Officer of Dresdner Bank AG in India and by them is mentioned elsewhere in this report. he was based in the Director or employee of the Company. 3. Mr. (Majored in Economics and Econometrics) in 1964. 7th March 2016. Independent Director. is executive member of the Board of Directors.f. f. Heinz Dollberg w. performance and oversight of the work of the Internal.e. Heinz Dollberg appointed as Additional Director w. have been constituted in directly responsible for the recommendation of the appointment. Confederation of Indian Industry (CII) and also the Chairman of CII National Council for Chemicals Fertilizers & Petrochemicals. Mr. Suraj Mehta Independent Director 3/4 1. Rahul Bajaj Director 4/4 NIL Mr. The senior management and Nomination and Remuneration Committee of the Board of personnel are invited to the meetings of the Audit Committee.e. the Board of Directors met 4 (Four) times on 15th May 2015. c) Mr.00.e. the remuneration.00.50. f) Mr. Committee at every meeting thereof.e. Manu Tandon resigned as Independent Director of the Company w. England & Wales. which are its plans and reports on a quarterly basis. Dipak Poddar Director 3/4 NIL Mrs. He was Director. The Audit Committee is mandatorily required under the Guidelines. Tapan Singhel. formed to plan the retail market strategy.f.50. along Directors as required pursuant to Section 135 and Section 178 of the with the Head of Internal Audit.f. accordance with the requirements set out therein.000/- Mr. 11 8 . Manu Tandon. Manuel Bauer Director 1/2 NIL Mr. Germany. BASF India Ltd. He direct Officer in 1991. Committees of the Board of Directors: Audit Committee Constitution & Composition The Audit Committee of the Board of Directors oversees the periodic financial reporting before submission to the Board and disclosure Audit Committee. Manuel Bauer resigned as Director w. Manu Tandon Alternate Director 4/4 2.f.000/- Mr. Meetings of the Board of Directors During the year 2015-16. Further. 16th October 2015 and 12th January 2016. Sanjiv Bajaj Chairman 4/4 NIL Mr.f.2016 Annexure to the Directors Report for the year ended 31st March 2016 12. Lila Poonawalla Independent Director 4/4 2.000/- Mr. 12th January 2016.f. Nanoo Pamnani Independent Director 0/0 NIL Mr. Ranjit Gupta Director 4/4 NIL Mr. Tapan Singhel MD & CEO 4/4 NIL a) Mr. started his career with a prominent PSU insurer as a Corporate Affairs. 7th March 2016. Kamesh Goyal resigned as Director w. He retired Allianz since its inception in 2001 and a part of the core team in 2008 as Managing Director Elantas Beck India Ltd Pune. 12th May 2016 and has been appointed as Alternate Director to Mr. e) Mr. Tapan Singhel. Sergio Balbinot appointed as Additional Director w. Mumbai from 1983 till 1996. who presents his report to the Companies Act. Company has also formed Corporate Social Responsibility Committee Statutory and Concurrent Auditors. Kamesh Goyal Director 1/3 NIL Mr.000/- Mr. d) Mr.e.e. Following table sets out the details of attendance of Directors at the Board meetings: Name of Director Category Meetings Attended Sitting Fees (Amt in `) Mr.f. 16th Annual Report 2015 . Investment Committee. 16th October 2015. Nanoo Pamnani appointed as Additional Independent Director w. b) Mr. 31st August 2015. S H Khan Independent Director 3/3 1. Finance & alumnus. was the Chairman of Pune Zonal Council. Mr. Sergio Balbinot Additional Director 1/1 NIL Mr. Managing Director. is a Commerce 13. Heinz Dollberg Additional Director 2/2 NIL Mr. Mr. 2013 respectively. has been with Bajaj graduate and Chartered Accountant. 16th May 2016. 17th July 2015. Niraj Bajaj Director 3/4 NIL Mr.000/- Mr. a BHU subsidiary of Altana AG.e. 12th January 2016. functioning of the Internal Audit Department and reviews Committee and Policyholders' Protection Committee. Sanjay Asher Independent Director 3/4 1.50. Alternate Director. Risk Management processes. 16th July 2015. are also Mr. who resigned on 31st August 2015. Heinz Dollberg is the Chairman of the Investment Committee. Heinz Dollberg Director 0/0 performance and the evaluation of dynamic market conditions and places it before the Board of Directors for approval.f. 15th October 2015 and 11th January 2016. 16th October 2015 and 12th January 2016. sets out the particulars of attendance of members of the Committee at various meetings: Name of Member Category Meetings Attended Sitting Fees (Amt in `) Mr. Manu Tandon Alternate Director 0/0 with Mr. Ranjit Gupta appointed as Member of the Committee w. Sanjay Asher Independent Director 3/4 1. Mr. 7th March 2016 in place of Late Mr. Sanjiv Bajaj and Mr. Mr. Independent Director 0/0 NIL Mr. Sanjiv Bajaj Director 4/4 NIL Mr.) Asha Joshi AA 4/4 review. Manuel Bauer. Dollberg. 2016. (Mrs. Manuel Bauer Director 1/2 NIL Mr. has been appointed as the executive Directors. Amit Joshi has been appointed in his place w.50. Sanjay Asher. Mr.f. Investment Committee The Investment Committee establishes the Investment Policy and Name of Member Category Meetings Attended operational framework for the investment operations of the Company. c) Mr. Mr. During the year under Dr. Mr.) Asha Joshi. Milind Choudhari CFO 4/4 invited to the Investment Committee meetings.f 16th May 2016. Ashish Goyal CIO 2/2 members of the Investment Committee. Mr. Mr. Heinz Dollberg became Member w. Lila Poonawalla Independent Director 4/4 2. (Mrs. 11th April 2016. Manu Tandon appointed as Alternate Member to Mr. Following table sets out the particulars of attendance of members of c) Mr. S H Khan. are other members of the 17th July 2015. 16th May 2016. Independent Directors. Ashish Goyal ceased to be member w. Suraj Mehta Independent Director 3/4 1. Heinz Dollberg Director 1/2 NIL Mr.000/- Mrs. Lila Poonawalla.000/- Mr.e.50. Kamesh Goyal attended the meeting as Alternate Member to Mr. Manu Tandon appointed as Alternate Member to Mr. Ranjit Gupta Director 3/4 Mr.f. Nanoo Pamnani has been appointed as Member and Chairman of the Committee w. Independent Director. Mr. Chief Investment Officer.e.e.f.Bajaj Allianz General Insurance Company Limited IRDA Registration No. in place of Late Mr. S H Khan.e. Kamesh Goyal Director 1/2 NIL Mr. the Investment Committee at various meetings: 12 .50.e.f. d) Mr.e. Nanoo Pamnani. 16th May 2015. a) Mr.113 dated 2nd May 2001 Annexure to the Directors Report for the year ended 31st March 2016 Mr. resigned and Mr. Nanoo Pamnani Chairman. Ranjit Gupta Directors.00. Heinz Dollberg w.e. S H Khan Chairman. e) Mr. Appointed Actuary. with majority of them being Independent Member and Chairman of the Audit Committee w.e.f. Independent Director 3/3 1.000/- Mr. The Investment Committee met four times during the year on 14th May b) Mr. Suraj Mehta and Mrs.000/- Mr. Mr. All the members of the Audit Committee are Non. Chief Mr. Manu Tandon Alternate Director 0/0 NIL a) Mr. Following table Committee.e. 7th March 2016 Directors. Kamesh Goyal Director 1/4 It periodically reviews the Investment policy based on the investment Mr. Tapan Singhel MD & CEO 4/4 Financial Officer and Dr. being the other Director members thereof. b) Mr. Tapan Singhel. Ashish Goyal. MD & CEO. 12th January 2016. 30th September 2015. Heinz Dollberg replaced Mr.f. Sanjiv Bajaj Director 4/4 Mr. Manuel Bauer. Heinz The Audit Committee met four times during the year on 15th May 2015. Kamesh Goyal as Member and Chairman w. The Chief Risk Officer is also Mr. Heinz Dollberg w. 16th October 2015 in place of Mr. Sanjiv Bajaj. Ranjit Gupta Director 0/0 NIL Mr.f. Milind Choudhari. Ranjit Gupta and Mr. Mr. e. Tapan Mr. Rannjit Gupta. Kamesh Goyal Director 1/4 Care also invited to meetings of the Policyholders' Protection Committee.f. with Mr. S H Khan Chairman. Nanoo Pamnani is the Chairman of the Nomination and The Nomination and Remuneration Committee met twice during the year Remuneration Committee.e. members of the Policyholders' Protection Committee at various b) Mr. Heinz Dollberg. Nomination and Remuneration Committee As required by the Section 178 of the Companies Act.e. 16th May 2016. with responsibility to identify persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down and to formulate the criteria for determining qualifications. 16th Annual Report 2015 . Following table sets out the particulars of attendance of a) Mr. Independent Directors.00. being the other members thereof. Ranjit Gupta Director 0/0 NIL Mrs. Following table sets out the Poonawalla. Mr. Mr.000/- Mr. Tapan Singhel MD & CEO 4/4 year on 14th May 2015. 16th July 2015. Heinz Dollberg replaced Mr. Lila on 15th May 2015 and 12th January 2016. Lila Poonawalla Independent Director 0/0 NIL Mr. the Company has formed the Nomination and Remuneration Committee. Name of Director Category Meetings Attended Sitting Fees (Amt in `) Mr. being the Remuneration Committee at various meetings: other members thereof.f. Ranjit Gupta and Mr. Sanjay Asher and Mrs. Sanjiv Bajaj Director 2/2 NIL Mr. Independent Director 1/1 50.e. with Mr. 15th October 2015 and 11th January 2016. 12th January 2016. Heinz Dollberg Director 0/0 NIL Mr. Mr. S H Khan. 16th May 2016. Appointed Actuary and Head of BPR.f.e. Manu Tandon appointed as Alternate Member to Mr. 12th January 2016. 2013. b) Mr. e) Mrs. Sanjay Asher Independent Director 2/2 1. Sanjiv Bajaj is the Chairman of the Policyholders' Protection Name of Member Category Meetings Attended Committee. Heinz Dollberg w. Manuer Bauer Director 1/1 NIL Mr. 7th March 2016 in place of Late Mr. 13 8 . Nanoo Pamnani Chairman. Manu Tandon appointed as Alternate Member to Mr. Lila Poonawalla appointed as Member of the Committee w. Heinz Dollberg Director 0/0 Officer.e. f) Mr. Sanjiv Bajaj Director 4/4 Singhel. Heinz particulars of attendance of members of the Nomination and Dollberg and Mr. Ranjit Gupta Director 3/4 Mr. Sanjiv Bajaj during the year and has been appointed as the Member of the Committee w. Mr. Directors of the Company. 16th May meetings: 2016. d) Mr. Heinz Dollberg replaced Mr. Mr. MD & CEO. c) Mr. Nanoo Pamnani has been appointed as Member and Chairman of the Committee w. Heinz Dollberg w.e.f. Manu Tandon Alternate Director 0/0 The Policyholders' Protection Committee met four times during the Mr. Chief Financial Mr. Operations & Customer Mr. It reviews the Grievance Redressal Mechanism and the status of complaints at periodic intervals.2016 Annexure to the Directors Report for the year ended 31st March 2016 Policyholders' Protection Committee The Policyholders' Protection Committee of the Board of Directors has the responsibility to put in place proper procedures and effective mechanism to address complaints and grievances of policyholders including mis-selling by intermediaries and to ensure compliance with the statutory requirements. Ranjit Gupta was Alternate Member to Mr. Kamesh Goyal as Member w.f. Manuel Bauer attended the meeting as Alternate Member to Mr. Kamesh Goyal Director 0/1 NIL Mr. Sanjiv Bajaj.f. Manu Tandon Alternate Director 0/0 NIL a) Mr. Mr. positive attributes and independence of a Director. 16th May 2016.000/- Mr. Kamesh Goyal as Member w. Independent Director 0/0 NIL Mr.f. Kamesh Goyal. Manu Tandon appointed as Alternate Member to Mr. Nanoo Pamnani has been appointed as Member w.f. a) Mr. convened by the CRO. flagging off areas Statutory and Concurrent Auditors and lastly the Control Committee.f. comprises of various Heads of Departments. Ranjit Gupta and Mr. out the particulars of attendance of members of the Corporate Social Responsibility Committee at various meetings: Name of Director Category Meetings Attended Sitting Fees (Amt in `) Mr. Mr. S H Khan Independent Director 1/1 50.e. Heinz Dollberg Director 0/0 NIL b) Mr. c) Mr. Director 2/2 NIL a) Mr. b) Mr. Kamesh Goyal as Member and Chairman w.e. Mr. year on 16th October 2015 and 11th March 2016. Internal Audit. the Company has formed a Corporate Social Responsibility Committee. Sanjiv Bajaj Chairman. 14 . Heinz Dollberg w. This committee the Board Risk Management Committee (RMC) and the Executive Risk monitors centralized risk monitoring and management. the the identification. 16th July The risk management practices are aimed to address following risk 2015. Tapan Singhel MD & CEO 1/2 NIL Enterprise Risk Management Framework Risk Objectives The Company perceives risk management as a means of value management strategy. Sanjiv Bajaj Director 4/4 management which include identification of risks. Manu Tandon Alternate Director 0/0 NIL Mr. Kamesh Goyal Chairman. meetings: • Integration of risk considerations into decision-making processes Name of Director Category Meetings Attended including promotion of a strong risk management culture Mr. with Mr.f.e. Manu Tandon Alternate Director 0/0 • To ensure adherence to all regulatory mandates as laid down by Mr. 16th May 2016. Mr.Bajaj Allianz General Insurance Company Limited IRDA Registration No. Heinz Dollberg Director 0/0 • Determine the relevant processes and strategies for risk Mr. 7th March 2016 in place of Late Mr. Manu Tandon appointed as Alternate Member to Mr. Sanjiv Bajaj. monitor and assess CSR activities undertaken by the Company.e.f. with responsibility to carry out. Heinz Dollberg. Internal Audit and the Risk team. 16th May 2016. The Chief Risk Officer (CRO). MD & CEO being the other members thereof. • Minimizing reputational risk as identified and assessed as part of a regular assessment and managed on a case-to-case basis. They are responsible for implementation of risk management activities including risk mitigation The risk governance structure of the Company consists of the Board. Independent Director and Mr. Committee and then there are various lines of defenses which include The Risk. Heinz Dollberg appointed as Member of the Mr. 2013. the Chief Financial Officer (CFO) and the component of the business culture which is exposed to different types Appointed Actuary are permanent invitees to all meetings of the RMC. 12th January 2016. ongoing measurement and monitoring of risk exposures and ensuring Mr. which have been identified Risk Governance Framework as the owners of key risks within the Company. Mr. Mr.000/. Concurrent Audit and Statutory Audits support the Heads of each department. Nanoo Pamnani Independent Director 1/1 50. The Company also recognizes the importance of internal the RMC. Following table sets out management goals: the particulars of attendance of members of the RMC at various • Determine the risk profile of the Company.000/. plan within their respective vertical/departments. Following table sets Tapan Singhel. of risks arising from both internal and external sources. Heinz Dollberg replaced Mr. Director is th Chairman of optimization. Heinz Dollberg w. The RMC oversees the functioning of the overall risk management The risk strategy of the Company is to identify actual and potential threats framework of the Company and implementation of the risk to the Company on a short and long term basis internally and externally. The RMC met four times during the year on 14th May 2015. with Mr. measurement and control of risks. the Chief and endeavors to make risk management and control an essential Investment Officer (CIO). S H Khan. Director 1/4 supported by a robust risk governance structure. Ranjit Gupta Director 3/4 relevant control or risk transfer. Tapan Singhel MD & CEO 4/4 different regulatory authorities and all critical internal policies/limits. 15th October 2015 and 11th January 2016. 16th May 2016. Nanoo Pamnani. where corrective action is needed. Committee w. Mr. Mr. Tapan Singhel controls and risk management in sustaining the business continuity being the other members.113 dated 2nd May 2001 Annexure to the Directors Report for the year ended 31st March 2016 Corporate Social Responsibility Committee As required by the Section 135 of the Companies Act.f. Mr.e. Sanjiv Bajaj is the Chairman of the Corporate Social Responsibility The Corporate Social Responsibility Committee met twice during the Committee. The supervisory level Executive Risk Committee. Onkar Kothari 19th May 2016 Pune Company Secretary & Compliance Officer 15 8 . Liquidity Risk is monitored on a regular basis to ensure sufficient periodic basis to mitigate the risk of inadequate pricing. The liquidity is maintained to meet short-term obligations. Company has insured itself with sufficient NatCat cover. Market Risk and Asset Liability Management risk is the risk to the framework which includes internal quality checks. 5. 16th Annual Report 2015 . The Company has developed a process of analyzing credit rating and reviewing changes in credit ratings. monitoring durations of plan to mitigate Business Continuity risk assets vis-à-vis liabilities and ensuring adequate reserves are maintained for meeting claims and liabilities. values of its investments. Investigation Company’s profits and/or liabilities due to changes in market and Loss Mitigation and Internal Audit. The Company mitigates this risk by 6.2016 Annexure to the Directors Report for the year ended 31st March 2016 Key Risk and their Mitigation 1. The Company has an off-site data center and a business continuity controlling exposures to risky assets. Risk of inadequate reserving is sought to be mitigated by reviewing 3. the claim experience and profitability of various products on 4. Operational Risk is mitigated by implementing internal control 2. Credit Risk or the risk of default of counter parties is sought to be the sufficiency of IBNR and reserves provided for its claims on mitigated by investing in securities with minimum acceptable periodic basis. Company for approval. retain and motivate Directors and Company and its goals.Bajaj Allianz General Insurance Company Limited IRDA Registration No. including the Key Managerial Committee and approved by the Board of Directors from time to Personnel and Senior Management. 2013. Personnel and Senior Management should involve an optimal balance between fixed and incentive pay reflecting short and long 2) The level and composition of remuneration should be reasonable term performance objectives appropriate to the working of the and sufficient to attract. 3) Relationship of remuneration to performance should be clear and 6) While remuneration and changes in remuneration including meet appropriate performance benchmarks. Key Managerial requirements of Section 178 of the Companies Act. 2013. payment of bonus to the Managing Director shall be recommended by the Nomination and Remuneration Committee 4) The Independent Directors may be paid sitting fees as per for approval of the Board of Directors. 16 . Company.113 dated 2nd May 2001 Remuneration Policy Remuneration Policy of Bajaj Allianz General Insurance Company Limited 1) This Remuneration Policy is prepared pursuant to the 5) Remuneration to the Managing Director. Any changes in the same should be employees of the quality required to run the Company referred to one Director representing each Co-promoter of the successfully. may be finalized with time within the overall limit as may be prescribed under the approval from one Director representing each Co-promoter of the Companies Act. annual revision of recommendation of the Nomination and Remuneration remuneration of all the employees. free cleft surgeries at selected preventive health namely Smile Train. CSR Project or activities Sector in which the Projects or programs (1) Amount Amount spent on the Cumulative Amount spent: Direct or identified project is covered Local area or other (2) outlay projects or programs sub expenditure through implementing Specify the state and (budget) heads: (1) Direct up to the agency district where projects or project or Expenditure on projects reporting programs was programs or programs. Amount unspent: Nil various channels. India hospitals in India. 6 Crore 1) Direct: Rs. Brief Outline of Company’s CSR Policy. 11. as a corporate citizen and lays down the guidelines and mechanism for undertaking activities for welfare and sustainable 4. 5 Crore Amont spent through Institute's Kamalnayan Bajaj care including 2) Overheads: Nil Marathwada Medical Hospital . 2) Overheads: Nil implementing agency. The CSR Committee. Manner in which the amount spent during the Financial Year is implementation agency and recommendation to the CSR detailed below: Committee. Composition of the CSR Committee: overview of projects or programs proposed to The CSR Committee of the Company comprises of the following be undertaken and a reference to the web-link Directors: to the CSR Policy and projects or programs: a) Mr. Sanjiv Bajaj. 2013.20 Crore Rs. due diligence of c. 0. Prescribed CSR Expenditure: (2% of amount as development of the community at large. 3 above) Rs. assessment of the project in terms of funding required.333 safe . Three family homes at SOS Employment namely SOS Children's Children's Village at Latur. 2. approves the proposal and amount of expenditure to be incurred on the same within the overall limit approved by the Board.bajajallianz. 11. Home in Pune Employment namely Association of enhancing vocational Rural and Urban Needy skills. Managing Director & Chief Executive Office Policy has been approved by the Board of Directors and the same is placed on the Company’s website (www. Chairman b) Mr.2016 Annual Report on Corporate Social Responsibility Activities 1. 4. Total amount to be sent for the Financial Year: Rs.20 Crores Amount spent through Needy: Starting One Rainbow education.9 Crore. 0. 2. 2) Overheads: Nil implementing agency. Nanoo Pamnani. Independent Director The Company has in place its Corporate Social Responsibility (CSR) Policy in line with the requirements of Companies Act. Implementation through CSR 5. 2015-16: The process for implementation of CSR programs involves a. 0. Average net profit of the Company for last three The Company’s CSR Policy outlines the Company’s responsibility financial years: Rs. 3. implementation area and overall scope.30 Crore Amount spent through 3. period undertaken wise (2) Overheads: 1 Smile Train India: To provide Promoting health The project was undertaken Rs. 0.25 Crore 1) Direct: Rs. The c) Mr.20 Crore Amount spent through India: To construct and equip education. The CSR Policy of the in Item No. 0.20 Crores Rs. 5 Crore Rs. 3 Deenanath Mangeshkar Super Promoting health Pune Rs. including 2. care 2 Association of Rural and Urban Promotion of Pune Rs. enhancing vocational Villages of India Maharashtra skills.com).25 Crore Amount spent through Specialty Hospital and care including 2) Overheads: Nil implementing agency. Research Center 4 SOS Children's Villages of Promotion of Latur Rs.30 Crore Rs. Research Center: preventive health care namely Lata Mangeshkar Establishment of a dedicated Medical Foundation's tertiary care center for Deenanath Mangeshkar comprehensive treatment Super Specialty Hospital & (including surgery) of epilepsy.9 Crore identification of programs based on proposals received through b. 1 Crore 1) Direct Rs. 16th Annual Report 2015 . 5 Marathwada Medical Research Promoting health Aurangabad Rs. 5 Crore 1) Direct Rs. Crores 2) Overheads: Nil implementing agency. quality and total care including on All India basis. Company outlines the Scope of CSR activities. 595 Crore.25 Crore Rs. Tapan Singhel. 2. Details of CSR spent during the Financial Year Cell / other vehicles of CSR implementation and Monitoring Assessment of CSR Projects / Programmes. Modalities of execution of Projects / Programmes. 4. Sr No.Corpus donation to preventive health care Research Institute's set up a charity fund for free Kamalnayan Bajaj Hospital treatment of needy patients 17 8 . if found appropriate.30 1) Direct: Rs. In case the Company fails to spend the 2% of the Average Net Profit of the last 3 financial years. The CSR activities including the projects to be taken up are considered and monitored at group level along with other Bajaj Group companies. society. CSR Committee ’s Responsibility Statement The CSR Committee hereby confirms that the implementation and monitoring of CSR activities is in compliance with CSR objectives and Policy of the Company Sanjiv Bajaj (DIN 00014615) Tapan Singhel (DIN 03428746) Chairman of Managing Director & Of CSR Committee Chief Executive Officer 18 . During the year 2015-16. (CSR vehicle). the reasons for not spending the amount shall be stated in the Board report: The CSR policy of the Company allows undertaking CSR Projects directly (CSR Cell) or through a registered trust. where substantial commitments are made. etc. the Company has spent more than 2% of the average net profit of the last three Financial Years.113 dated 2nd May 2001 Annual Report on Corporate Social Responsibility Activities 6.Bajaj Allianz General Insurance Company Limited IRDA Registration No. (CIN U66010PN2000PLC015329) GE Plaza Airport Road. Company to monitor and ensure compliance with applicable laws. Yerawada. in the manner and subject to the reporting made herein after: Adequate notice was given to all Directors to schedule the Board Meetings. circulars and notifications issued by the Insurance Regulatory and Development Authority of India Shyamprasad D. provisions of the Act. 1999 and the rules and I further report that there are adequate systems and processes in the regulations made there under regarding Foreign Direct Company commensurate with the size and operations of the Investment.: 572 Pune 19th May 2016 19 8 . having major bearing on the Company's affairs in pursuance of the above referred laws. Limaye (IRDAI) as are applicable to a general insurance company. standards etc.411006. including committees thereof. Rules. regulations. guidelines. 2016. rules. The changes in the composition 31st. etc. The decisions are carried thereunder. Bajaj Allianz General Insurance Company Limited. 1587 C P No. Regulations. rules. (iii)The Insurance Act. forms and returns filed and other records maintained by the applicable. 2014] To. complied with the applicable statutory provisions listed of the Board of Directors that took place during the period under hereunder and also that the Company has proper Board-processes and review were carried out in compliance with the provisions of the Act. (iv) Rules. compliance mechanism in place to the extent. issued by conducts/statutory compliances and expressing my opinion thereon.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules. I hereby report that in my opinion. regulations. regulations and guidelines. FCS No. agents and authorized representatives during the conduct of I further report that the Board of Directors of the Company is duly secretarial audit. guidelines. according to the provisions of: on the agenda items before the meeting and for meaningful (I) The Companies Act. minute During the period under review the Company has complied with the. books. mentioned above. officers. the Institute of Company Secretaries of India. I have conducted the secretarial audit of the compliance of applicable The Company is a Public Company which is a subsidiary of a Listed statutory provisions and the adherence to good corporate practices by Company. Based on my verification of the Company. forms and returns detailed notes on agenda at least seven days in advance. 2016.2016 Secretarial Audit Report for the year ended 31st March 2016 Form No. 1938. the Insurance Regulatory and Development Authority Act. MR-3 [Pursuant to section 204(1) of the Companies Act. alongwith agenda and I have examined the books. Non-Executive during the audit period covering the financial year ended on March Directors and Independent Directors. (ii) Foreign Exchange Management Act. its Standards. The Members. minute books. Guidelines. 16th Annual Report 2015 . Bajaj Allianz General Insurance Company Limited. 2013 and Rule No. the Company has. and a system filed and other records maintained by the Company for the financial exists for seeking and obtaining further information and clarifications year ended on March 31st. Secretarial Audit was conducted in a manner that I have also examined compliance with the applicable clauses of the provided me a reasonable basis for evaluating the corporate Secretarial Standards pursuant to section 118(10) of the Act. papers. papers. books. constituted with proper balance of Executive Directors. 2013 (the Act) and the rules made participation at the meeting by the directors. 1999 and rules and regulations made I further report that during the audit period there was no event/action thereunder. (hereinafter called as “the Company”). Pune. Company and also the information provided by the Company. unanimously. Blower mechanism in place. the trends in average claim settlement time during the preceding five 20 . those where adequate documentation to assess the claims location and category. the Audit Committee of the Board of Directors. Nomination and Remuneration The Company has a multi layer reinsurance program which seeks Committee. 1938 has The Company has an Anti Money Laundering Policy and a Whistle been maintained. 2000. has formed various other committees of the Board of Directors. the Company of business. The automatic reinsurance program of the Company is designed as 9. The Company is exposed to settlement times. The required solvency margin under the Insurance Act. 2013 read with the Insurance claim. The Company has appointed an the date of Balance Sheet and in management’s belief. report of which is submitted to the Audit several headings – ‘investments’. Corporate Social Responsibility Committee. available country. the Company also has an Internal Risk Committee consisting of various departmental 7. The investment portfolio is also diversified within limits 6. Ageing of claims indicating the exposure to any single covered event. We certify that all dues payable to the statutory authorities have The Company has in place a risk management process which. We certify that the values of all the assets have been reviewed on set under the IRDA Regulations. As a general insurer. identifies major risks that the Company is exposed to and sets 3. The Company has internal processes for regular review of such proportional reinsurance treaty. Pursuant to the and severity of claims as measured by the average amount per requirements of the Companies Act. 1938 has been amended by the Insurance Laws (Amendment) Act. claims which result in total or partial an agreed proportion) and non-proportional reinsurance. The destruction of assets or records (such as those caused by Acts of limits under the treaties are set based on accumulation of risks by God). which reviews The primary risks are that of frequency of claims as measured by the risks as well as the risk processes and compliance with the Risk the number of claims in relation to number of policies outstanding Management Policy of the Company. The shareholding pattern is in accordance with the statutory and out action plans for mitigation of such risks. 2. The settlement time for claims depends on various factors multi-layer treaties combining proportional reinsurance (where pertinent to various lines of business. The Company has paid to the Insurance Regulatory and Company also purchases. after considering the exposure based on are awaited and those which are the subject matter of judicial Probable Maximum Loss. 5. ‘due from other entities carrying on insurance business.Bajaj Allianz General Insurance Company Limited IRDA Registration No. which is mitigated by a separate non. and the expected processes (such as Motor Third Party claims) tend to have longer frequency of claim events. 2015 w. Development Authority of India (IRDAI) the annual fees for the facultative reinsurance for specific policies. which has The reinsurance program of the Company is filed with the IRDAI. convened by the Chief Risk Officer. duly approved by the Board of Directors. ‘income accrued on investments’. In addition to treaties. catastrophe risk. which limits the Company’s claims paid and outstanding. backups. The Company does not have insurance operations in any other relevant factors such as capital and solvency position. the the Company and the reinsurer share the premiums and claims in nature of claim. including reinsurers The Company has a Risk Management Committee of the Board of (net)’. directly or indirectly outside India. ‘outstanding Committee on a quarterly basis. where applicable. which include Audit Committee. inter been duly paid except where the Company has preferred appeals.113 dated 2nd May 2001 Management Report for the Financial Year ended 31st March 2016 With respect to the operations of Bajaj Allianz General Insurance Company Limited (“the Company”) for the year ended 31st March 2016 and results thereof. which are beyond the control of the Company. alia. where required. No shares have been transferred during The Company has a separate Internal Audit Department which the year.f. reinsurance capacity and adequacy of reinsurance terms. audits the operations of its offices. under the related processes. 1938 and various regulations made thereunder. ‘cash and bank balances’ and the several items specified Directors which advises the Board on the risk exposures and the under ‘advances recoverable’. The Management has not invested any funds of holders of policies compliances are audited according to an audit plan approved by in India. The frequency and severity risks vary according to the lines Act. etc. Key operational risks and 4. such as cause of loss. the management of the Company confirms and declares that: 1. regulatory requirements. where either treaty year 2016-17 as specified by the IRDA (Registration of Indian limits are inadequate or the risk is not covered by the terms of the Insurance Companies) Regulations. the Company is exposed to a variety of risks. In addition. representatives.e. removed the process of annual renewal of Certificate of The Company has an offsite disaster recovery center for its data Registration. ‘agents’ balances’. on a case-to-case basis. 26th December 2014. to optimize the retention of risk at each policy level as well as at the Policyholders’ Protection Committee and Investment Committee. Typically. the assets independent firm of Chartered Accountants to undertake the set forth in the Balance Sheet are shown in the aggregate at concurrent audit of Company’s investment transactions and amounts not exceeding their realizable or market value. premiums’. Section 3A of the reinsurance treaties. actions taken to manage the same. level of lines of business. The Company’s retention of risks varies according to lines of business and is decided after considering 8. Insurance Act. The emphasis is also on the liquidity of concern basis. The fixed income securities are mainly Company and for preventing and detecting fraud and other approved Government securities and bonds rated AA and above. Most of the Company’s investments are in fixed income securities. as shown in the Balance Sheet. in line with the objectives. the and fair view of the state of the affairs of the Company at the market value is based on procedure issued by Fixed Income and end of the financial year and of the operating profit and of the Money Market and Derivative Dealers Association (FIMMDA). Investments in loans are valued at historical cost. equity applied them consistently and made judgments and shares and mutual fund units have been valued as per accounting estimates that are reasonable and prudent so as to give a true policies prescribed by IRDA. Companies Act. all assets. The schedule of payments which have been made to individuals. For fixed income securities. 2013 for safeguarding the assets of the deposits and loan. quality and expected performance of all the investments. with the applicable provisions of the Insurance Act. For and on Behalf of the Board of Directors Sanjiv Bajaj Nanoo Pamnani Sergio Balbinot Chairman Director Director (DIN 00014615) (DIN 00053673) (DIN 01629245) Tapan Singhel Milind Choudhari Onkar Kothari Managing Director & Chief Financial Officer Company Secretary & Chief Executive Officer Compliance Officer (DIN 03428746) Pune 19th May 2016 21 8 . The management of the Company certifies that: registered and not settled (excluding provision for IBNR / IBNER and claims relating to inward re-insurance from terrorism pool a) The financial statements of the Company have been prepared and the Indian Motor Third Party Insurance Pool) is given in in accordance with the applicable Accounting Standards and Annexure II to this Report. 10.2016 Management Report for the Financial Year ended 31st March 2016 years is given in Annexure I and ageing analysis of claims 12. 16th Annual Report 2015 . The profit of the Company for the year. of the b) The management has adopted accounting policies and investments which consists of fixed income securities. irregularities. principles and policies with no material departures. The primary aim while investing is to generate adequate return d) The financial statements have been prepared on a going while minimizing risk. companies and organizations in which the Directors of the track record. The Company monitors e) The management has set up an internal audit system the cash position on daily basis and seasonal liquidity needs are commensurate with the size and nature of the business and considered while planning maturities of investments in respect of the same was operational throughout the year. if any. None of the fixed income investments and loan have had any delays in servicing of interest or principal amounts. investments to ensure that the Company meets all its obligations related to Claims and other operations. 1938 and 11. The c) The management has taken proper and sufficient care for the investments in the Mutual Funds are valued at the Net Asset Values maintenance of adequate accounting records in accordance (NAV) of these Mutual Funds as on the Balance Sheet date. investment in equity shares is valued at market value. Based on the past firms. the Management has reasonable confidence in the Company are interested is given as Annexure III. We certify that the values. 13. 18 3.092.504.220.586.78 645 2.598 3.829.22 87.366 2.53 21.08 5.29 Marine ` in Lacs No of Claims Amount No of Claims Amount No of Claims Amount No of Claims Amount No of Claims Amount 30 days 5.809.16) 11 8.26 338 1.054.216 4.53 5.403.30 7.97 1.604.02 Health ` in Lacs No of Claims Amount No of Claims Amount No of Claims Amount No of Claims Amount No of Claims Amount 30 days 75.635.612.89 17.750 37.184.05 51 68.677 274.638.583.509 60.777.94 4.032.186.15 11.15 420.31 6.98 30 days to 6 months 69.28 5.515 784.205.70 15.31 6.722.66 17 16.174 1.16 298 1.666.277 2.757 37.878 33.100 24.346 1.877 37.546.90 6 months to 1 year 315 3.049.Bajaj Allianz General Insurance Company Limited IRDA Registration No.88 5 years and above 15 48.63 2.19 7.774 4.60 1 year to 5 years 2.591.113 dated 2nd May 2001 Annexure I: Average Claims Settlement Time during Preceding 5 Years Fire ` in Lacs 2011-12 2012-13 2013-14 2014-15 2015-16 Period No of Claims Amount No of Claims Amount No of Claims Amount No of Claims Amount No of Claims Amount 30 days 912 612.083.444.41 5.71 7.109 11.604.591.52 30 days to 6 months 4.817.718.609.023.029 2.723 3.358.11 7.71 5.18 6.71 371.657.797 48.03 1.842 11.686.91 6.279.02 1.680 22.58 6.05 82.976 2.488.493.894.20 1.60 38 176.734 14.The above includes partially settled claims and on-account payments made 22 .07 146 (1.07 44.375 5.686 19.183.36 3.789.646 5.367.730 3.125.02 6 months to 1 year 1.12 21.69 504 1.63 16.778.876 28.765 1.280 41.713 2.124 3.71 31 13.467 4.681 2.19 43 99.703.07 31.266.99 30 days to 6 months 1.19 5.43 166 2.44 1.878.57 213 9.84 799 242.75 5 years and above 1.98 1.84 920 296.85 594 324.043 (18.60 229.994.246.951 3.997.058 29.152 32.126.00 121.516.89 24 47.01 5.797 968.06 3.23 340.089 2.574 19.337 65.586 24.693 1.803 2.951 34.98 258 3.867 0.015 1.35) 331 129.274.711 36.76 1.63 30 days to 6 months 8.824 5.028 5.398.530.65 1 year to 5 years 524 150.44 7.88 1.78 24.62 28.32 1.78 5 years and above 71 55.239 3.31 537 620.217 785.99 432 1.151.395.397 1.405 4.54 7.503.40 Motor OD ` in Lacs No of Claims Amount No of Claims Amount No of Claims Amount No of Claims Amount No of Claims Amount 30 days 334.663.145 34.37 65.44 5 years and above 76 21.03 8 20.17 1 year to 5 years 26.999 44.31 339 1.608.692 56.253.465.53 352 5.913.878.57 30 days to 6 months 26.02 7.58 3.82 283 2.407.518 2.810.030.86 2.045.235.79 5.256.577.292 6.32 6 months to 1 year 1.198.099.41 18.96 1.723.738 665.511.079 3.007 291.92 7.774 1.87 5 years and above 16 3.718 2.76 1.136 697.032.492 2.33 30 days to 6 months 8.69 494 784.677 3.109 10.120.34 124 26.364.027.769.54 53.35 65.469.247 3.347.713 515.82 Note:.008.68 2.266 5.42 121.38 6.809.85 3.419.178 809.04 5 years and above 18 (32.33 1.72 182 92.576.61 6 months to 1 year 684 1.61 5.048.575 11.163 46.537 409.00 27.97 111.771.047.94 46.15 307 54.756 845.443.482 395.954 5.24 944 2.43 382.50 6 months to 1 year 8.06 3.983.79 2.46 9.853.038 21.661 2.68 248 2.773.771 8.73 2.337 3.35 6.28 982 715.737.553 5.123.499 5.104.22 5.158 17.079 4.969 5.18 2.814.236 2.684.82 99.93 467 216.719.13 3.599.150 54.28 1 year to 5 years 1.23 Motor TP ` in Lacs No of Claims Amount No of Claims Amount No of Claims Amount No of Claims Amount No of Claims Amount 30 days 9.047 3.72 1 year to 5 years 232 5.45 228 4.10 937 379.519 1.69) Others ` in Lacs No of Claims Amount No of Claims Amount No of Claims Amount No of Claims Amount No of Claims Amount 30 days 13.17 1 year to 5 years 410 1.51 6.53 4.874 9.64 6 months to 1 year 3.836 27.88 31 148.206 4.611.374 385.18 39 283.39 400 333.341 2.02 312 190.520 593.821.563 40.463 27.352. 516.686 12.00 8.730 15.00 250 342.00 9.962.00 1 year to 5 years 226 1.277 9.69 4.528 1.218 1.030 27.391 17.00 556 791.385.889 168 1.061 17.676 28.457 3.116 3.297.52 259 714.354 1.331 377 912 2.00 2.618 325 2.862 88 114 1.323 133 814 596 1.181 4.954.047 100 124 1.272 1.044.00 116 110.997 24.567.67 242 1.286 29.535 256 457 2.099 2.24 As at 31st March 2013 ` in Lacs Period Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt 0-30 days 99 635.332 19.593 876 1.20 62 85.00 2.332 > 5 year 161 1.227 5.00 38 80.00 5.207 22.225.356 2.689 1.00 355 1.392.851.242 28.174.906 2.379.00 6.597 6.00 6.590 4.991 3.673.131.343 163 672 332 992 4.77 32.39 777 1.42 328 344.06 1 year to 5 Year 308 1.039.09 13.389 As at 31st March 2015 ` in Lacs Period Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt 0 .984 11.079.561 63.286 159 575 623 1.709.920 92 474 532 1.32 13.288.00 > 5 years 81 439.315 1.08 614 561.000 51.083 29.729 31 days-6 month 761 5.00 31 days-6 months 149 1.015.09 22.653 13.06 2.817.00 1.00 38 252.00 101 318.646 11.002 23.356.00 400 601.198 13.919.726.00 805 1.863 17.54 2.683 1.971 > 5 year 130 991 80 348 514 835 12.903 5.00 4.152 701.169 3.091 31 days-6 month 6.957.173 12.740.00 699 851.52 647 828.063.934 539 811 11.23 12.213 29.486.010 5.406 2.077 2.250 2.00 33.766.00 1.821 2.130.00 1.00 223 215.00 > 5 years 48 317.028.925 37.27 28.322 1.00 548 871.727 8.239.371 2.00 27 126.531 26.050.020 4.00 4.00 68 61.668 14.988 6.354.262.093.972.803.348 1.186 9.00 31 days-6 months 211 2.395 5.818.522 2.00 362 852.156 21.67 10.020 14.777.209 22.501 2.901 38.719.578 298 1.30 Days 127 362.685.791 8.00 622 1.051.650.040 1.00 2.395 37.14 498 1.00 6.00 160 1.884 4.279 10.00 8.00 6.115.383 2.806.154 4.44 1.2016 Annexure II: Ageing Analysis of Claims Registered and not Settled As at 31st March 2016 ` in Lacs Line of Business Fire Marine Motor OD Motor TP Health Other Total Period Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt 0 .217 1.368.00 33.270 7.00 6 months to 1 year 90 1.220 14.00 5.184 2.515 42.400 2.458 3.905 5.030 1.00 153 1.00 5.669 3.092 7.449.070 15.71 719 1.38 52 225.043 2.672 1.276 4.06 3.030 396 918 1.635.00 1.43 > 5 year 91 807.11 8.058.00 447 221.071 14.414.00 6 months to 1 year 117 635.00 1.00 5.790 1.35 4.428 6 moths to 1 Year 613 1.00 1 year to 5 years 244 2.046 2.934 11.56 1.782.00 108 491.683 17.986 7.818 st As at 31 March 2014 ` in Lacs Period Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt 0 .00 196 226.516 14.559 20.231 4.986 4. 16th Annual Report 2015 .045 2.00 3.239.00 12.20 6 moths to 1 Year 143 1.236 4.00 67 81.326.00 2.00 23 8 .218 36.858 74.440 298 597 4.474 3.46 999 1.479 217 720 3.974.850.00 3.61 76 247.63 31 days-6 month 227 2.053.30 Days 962 1.592.00 208 331.721.01 6.128 1 year to 5 Year 467 2.00 37.616.100.374 2.742 3.00 583 895.935 15.466.00 3.00 st As at 31 March 2012 ` in Lacs Period Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt Nos Amt 0-30 days 116 900.242 3.236.996.472 15.295.130 26.00 1.217 6 moths to 1 Year 205 1.216 4.00 37.00 380 733.00 792 1.00 31 73.772 801.00 319 566.19 294 551.808 6.285 4.726.234 3.056.852 1.00 1.00 10.30 Days 308 879 331 526 3.196 1 year to 5 Year 1. 113 dated 2nd May 2001 Annexure III to the Management Report: Particulars of Payments made to entities where Directors are interested: Sr. Entity in which Director Name of the Interested as Payment during the year in No is interested Director ` In Lakhs 1 Bajaj Finserv Ltd Rahul Bajaj Director Rent paid lease premises 187 Sanjiv Bajaj Director Insurance claims paid 1 S H Khan Director Billable expenses reimbursed on behalf 19 2 Bajaj Auto Limited Rahul Bajaj Director Insurance claims paid 1.96 Sanjiv Bajaj Relative is a Director Other expenses paid 2 24 .500 5 Bajaj Allianz Life Insurance Rahul Bajaj Director Expenditure incurred by BALIC on behalf of the 841 Company Limited ("BALIC") Company Kamesh Goyal Director Insurance Claims paid 340 Sanjiv Bajaj Director Insurance premium paid 12 Niraj Bajaj Director Payment against Gratuity Fund 463 Sanjay Asher Director Rent & Maintenance Charges Paid 108 Suraj Mehta Director Deposits for leased premises 19 S H Khan Director Advance rent paid 10 Ranjit Gupta Director Manuel Bauer Director Manu Tandon Director 6 Mukand Engineers Ltd Niraj Bajaj Director Insurance claims paid 12 7 Mukand Ltd Rahul Bajaj Director Insurance claims paid 698 Sanjiv Bajaj Relative is a Director Niraj Bajaj Director 8 Hind Musafir Agency Limited Rahul Bajaj Shareholding exceeds 2% Travel agency services paid 918 Niraj Bajaj Shareholding exceeds 2% Insurance claims paid 0.Bajaj Allianz General Insurance Company Limited IRDA Registration No.865 Sanjiv Bajaj Director Investment in Corporate Bonds (Book Value) 7.900 Niraj Bajaj Director Sanjiv Bajaj Director S H Khan Director 3 Bajaj Electricals Ltd Rahul Bajaj Shareholding exceeds 2% Insurance claims paid 446 Niraj Bajaj Shareholding exceeds 2% 4 Bajaj Finance Ltd Rahul Bajaj Director Insurance claims paid 8 Dipak Poddar Director Insurance commission paid 1. the IRDA Act. orders/directions issued by information required in accordance with the Insurance Act. We have relied auditing standards and matters which are required to be included in upon the Company's Appointed Actuary's certificate in this regard for the audit report under the provisions of the Act and the Rules made forming our opinion on the financial statements of the Company. 2013 (“the Act”) with respect of the accounting policies used and the reasonableness of the to the preparation of these financial statements that give a true and fair accounting estimates made by the Company's Directors. if any. the Profit and Loss Account. Other Matters Auditors' Responsibility The actuarial valuation of liabilities in respect of Claims Incurred But Not Reported (IBNR) and Claims Incurred But Not Enough Reported (IBNER) Our responsibility is to express an opinion on these financial is the responsibility of the Company's Appointed Actuary. selection and application of appropriate ended on that date. An audit involves Account. of the state of affairs of the records in accordance with the provisions of the Act for safeguarding Company as at 31st March 2016. and effectively for ensuring the accuracy and completeness of the (d) in the case of the Receipts and Payments Account. the schedules annexed thereto and a and the disclosures in the financial statements. the IRDA the Insurance Regulatory and Development Authority of India (the Act. the IRDA Financial Statements Regulations and the Act to the “IRDAI”/ “Authority”) in this regard. thereunder. issued by IRDAI and the Institute orders/directions/circulars issued by the IRDAI. as applicable to Insurance Companies: This responsibility also includes maintenance of adequate accounting (a) in the case of the Balance Sheet. the financial statements that give a true and fair view and are free from material misstatement. 16th Annual Report 2015 . that were operating ended on that date. the related evaluating the overall presentation of the financial statements. including the provisions of the Insurance Act. which audit to obtain reasonable assurance about whether the financial comprise the Balance Sheet as at 31st March 2016. 25 . In making those risk assessments. the assets of the Company and for preventing and detecting frauds (b) in the case of the Revenue Account. the accounting and of Actuaries of India in concurrence with the Authority. in India. of the risks of material misstatement of the financial statements. of the receipts accounting records. amended by the Insurance Laws (Amendment) Act. including the assessment information. Those Standards require We have audited the accompanying financial statements of Bajaj that we comply with ethical requirements and plan and perform the Allianz General Insurance Company Limited (“the Company”). 1999 (the “IRDA Act”). 2015 (the “Insurance Act”). valuation of these liabilities as at 31st March 2016 has been duly certified by the Appointed Actuary. Profit and Loss statements are free from material misstatement. relevant to the preparation and presentation of and payments for the year ended on that date. the IRDA Financial Statements Regulations. 1938 as statements. and the Accounting Standards extent applicable and in the manner so required and give a true and fair specified under Section 133 of the Act. accounting policies. of the surplus for the year and other irregularities. whether due to fraud or error. 2002 (the explanations given to us. the Insurance Regulatory and Opinion Development Authority (Preparation of Financial Statements and In our opinion and to the best of our information and according to the Auditor's Report of Insurance Companies) Regulations. An audit also includes evaluating the appropriateness in section 134(5) of the Companies Act. the assumptions for such valuation are in accordance Act. the Insurance in her opinion. read with Rule 7 of the view in conformity with the accounting principles generally accepted Companies (Accounts) Rules. the aforesaid financial statements give the “IRDA Financial Statements Regulations”). 2014. implementation and (c) in the case of the Profit and Loss Account. the Management's Responsibility for the Financial auditor considers internal financial controls relevant to the Company's preparation of the financial statements that give a true and fair view in Statements order to design audit procedures that are appropriate in the The Company's Board of Directors is responsible for the matters stated circumstances. with the guidelines and norms. and the design. Revenue Account and Receipts and Payments Account of the We believe that the audit evidence we have obtained is sufficient and Company in accordance with accounting principles generally appropriate to provide a basis for our audit opinion on the financial accepted in India. whether due to fraud or error.2016 Independent Auditors’ Report To the Members of Bajaj Allianz General Insurance Company Limited Report on the Financial Statements We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. as well as view of the Balance Sheet. of the profit for the year maintenance of internal financial controls. The Appointed Actuary has also certified that We have taken into account the provisions of the Act. making judgments and estimates that are reasonable and prudent. The actuarial statements based on our audit. The procedures summary of significant accounting policies and other explanatory selected depend on the auditors' judgment. the Insurance Regulatory and Development Authority Act. its related Revenue Account and the Receipts and Payments performing procedures to obtain audit evidence about the amounts Account for the year then ended. read with rule 7 of the Companies (Accounts) Rules. we report that: (i) With respect to the adequacy of the internal financial controls (a) We have sought and obtained all the information and over financial reporting of the Company and the operating explanations which to the best of our knowledge and belief effectiveness of such controls. proper books of Auditors) Rules. (j) With respect to the other matters to be included in the Auditors' (b) In our opinion and to the best of our information and Report in accordance with Rule 11 of the Companies (Audit and according to the explanation given to us. required under Section 143 (8) of the Act. read with of section 164 (2) of the Act. one of which Company are appropriate and are in compliance with the is the predecessor audit firm. Refer Schedule 16 note 28 to the according to the explanations given to us. refer to “Annexure A” to this report. LLP For Walker Chandiok & Co LLP Chartered Accountants Chartered Accountants Firm Registration Number Firm Registration Number 101248W/W-100022 001076N/N500013 Juzer Miyajiwala Khushroo B. read with Rule 7 of the Companies (Accounts) Rules. the Revenue Account. iii. 2014. investments have Financial Statements. Refer Schedule 16 note 27 to the (e) In our opinion. from being appointed as a Director in terms 2. The Company has made provision. no returns for the purposes of our audit are statements – Refer Schedule 16 note 26 to the financial prepared at the branches and other offices of the Company as statements. There were no amounts which were required to be transferred to the Investor Education and Protection Fund (f) In our opinion and to the best of our information and by the Company.Bajaj Allianz General Insurance Company Limited IRDA Registration No. on long term contracts. Company did not have any outstanding long term derivative contracts. For B S R & Co. 047483 Membership No. the Profit and Loss applicable law or accounting standards.113 dated 2nd May 2001 Independent Auditors’ Report The financial statements of the Company for the year ended 31st March (g) In our opinion. 1. for material Account and the Receipts and Payments Account dealt with by foreseeable losses. the IRDA Financial Statement Regulations and / or orders / directions issued by IRDAI in this regard. Panthaky Partner Partner Membership No. 042423 Pune Pune 19th May 2016 19th May 2016 26 . in our opinion and to the best of our account as required by law have been kept by the Company so information and according to the explanations given to us: far as appears from our examination of those books. of the Act. I. 2014 and with the accounting principles prescribed in IRDA Report on Other Legal and Regulatory Requirements Financial Statements Regulations and orders/directions issued by the IRDAI in this regard. Board of Directors. section 143(3) of the Act. been valued in accordance with the provisions of the Insurance Act. as required under the (d) The Balance Sheet. if any. none of the Directors are disqualified as on 31st March 2016. As required by IRDA Financial Statements Regulations. the aforesaid financial statements comply with financial statements. the accounting policies selected by the 2015 were audited by the joint auditors of the Company. the Accounting Standards specified under Section 133 of the Act. whose report dated 15th May 2015 applicable Accounting Standards specified under Section 133 expressed an unmodified opinion on those statements. As required by the IRDA Financial Statements Regulations. we have issued a separate certificate dated 19th May 2016 certifying the (h) On the basis of written representations received from the matters specified in paragraphs 3 and 4 of Schedule C to the IRDA Directors as on 31st March 2016 and taken on record by the Financial Statements Regulations. The this Report are in agreement with the books of account. ii. The Company has disclosed the impact of pending (c) As the Company's financial accounting system is centralized at litigations on its financial position in its financial Head Office. were necessary for the purposes of our audit. 047483 Membership No. The Company is not a trustee of any trust. This includes collecting. We have reviewed the Management Report attached to the Insurance Companies) Regulations 2002. is limited to certificates/confirmations received directly or from the custodian certifying matters contained in paragraphs 3 and 4 of Schedule C of the and/or Depository Participants appointed by the Company. the IRDA Financial Statements Regulations. The Company's Board of Directors is responsible for complying with 2. inconsistencies with the financial statements. Based on information and explanations received during the the provisions of The Insurance Act. as the IRDA Financial Statements Regulations. nothing has come to our attention issued by the Insurance Regulatory and Development Authority of which causes us to believe that the Company has not complied India (the “IRDAI”) which includes the preparation of the Management with the terms and conditions of registration stipulated by IRDAI. and on Statements Regulations”) read with Regulation 3 and may not be the basis of our review. We have verified the cash balances. 1999 (the “IRDA officers of the Company charged with compliance and the same Act”). Panthaky Partner Partner Membership No. there is no apparent mistake or material suitable for any other purpose. Report. by actual inspection or on the basis of Our responsibility. No part of the assets of the Policyholders' funds has been directly or of test checks and materiality. management representations and the amended by the Insurance Laws (Amendment) Act. the compliance certificate submitted to the Board of Directors by the Insurance Regulatory and Development Authority Act. relating to the application and investments of the Policyholders' Funds. and securities relating to the Company's investments as at 31st March 2016. for the purpose of this certificate. LLP For Walker Chandiok & Co LLP Chartered Accountants Chartered Accountants Firm Registration Number Firm Registration Number 101248W/W-100022 001076N/N500013 Juzer Miyajiwala Khushroo B. 2015. orders/directions being noted by the Board. 1938 (the “Insurance Act”) as normal course of our audit. 042423 Pune Pune 19th May 2016 19th May 2016 27 . examination in accordance with the Guidance Note on Audit Reports and Certificates for Special Purposes issued by the Institute of 4. to the extent considered for ensuring compliance as aforesaid. we certify that: and 4 of Schedule C of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor's Report of 1. For B S R & Co. necessary. indirectly applied in contravention to the provisions of the Insurance Act. and Chartered Accountants of India (the 'ICAI') which include the concepts 5. (the “IRDA Financial financial statements for the year ended 31st March 2016. collating and validating data and designing.2016 Independent Auditors' Certificate To the Members of Bajaj Allianz General Insurance Company Limited (Referred to in paragraph 1 of our Report on Other Legal and In accordance with the information and explanations given to us and to Regulatory Requirements forming part of the Independent Auditors' the best of our knowledge and belief and based on our examination of Report dated 19th May 2016) the books of account and other records maintained by Bajaj Allianz General Insurance Company Limited ('the Company') for the year This certificate is issued to comply with the provisions of paragraphs 3 ended 31st March 2016. 16th Annual Report 2015 . implementing and monitoring of internal controls suitable 3. We have conducted our case may be. conditions. and (3) provide reasonable assurance regarding prevention or timely detection of Auditors’ Responsibility unauthorised acquisition. in design. and the timely preparation of reliable financial the company are being made only in accordance with authorisations information. including the assessment of the risks of material misstatement of the financial statements. A company's Internal financial Reporting (the “Guidance Note”) issued by the Institute of Chartered controls over financial reporting includes those policies and Accountants of India (“the ICAI”). Management’s Responsibility for Internal Financial Meaning of Internal Financial Controls over Financial Controls Reporting The Company’s management is responsible for establishing and A company's internal financial controls over financial reporting is a maintaining internal financial controls based on the internal control process designed to provide reasonable assurance regarding the over financial reporting criteria established by the Company reliability of financial reporting and the preparation of financial considering the essential components of internal control stated in the statements for external purposes in accordance with generally Guidance Note on Audit of Internal Financial Controls over Financial accepted accounting principles. both issued by the ICAI. use.Bajaj Allianz General Insurance Company Limited IRDA Registration No. (2) provide reasonable orderly and efficient conduct of the its business. or disposition of the company's assets that could have a material effect on the financial statements. including adherence assurance that transactions are recorded as necessary to permit to company’s policies. The procedures selected depend on the Section 143 of the Companies Act. We Inherent Limitations of Internal Financial Controls conducted our audit in accordance with the Guidance Note and Standards on Auditing. Our responsibility is to express an opinion on the Company's Internal financial controls over financial reporting based on our audit. and that receipts and expenditures of the accounting records. internal financial controls system over financial reporting. Those Standards and management override of controls. We have audited the internal financial controls over financial reporting of Bajaj Allianz General Insurance Company Limited (“the Company”) We believe that the audit evidence we have obtained is sufficient and as of 31st March 2016 in conjunction with our audit of financial appropriate to provide a basis for our audit opinion on the Company’s statements for the year ended on that date. both applicable to an audit of Internal financial reporting. whether due to fraud or error. and testing and evaluating the design and operating effectiveness of internal control Financial Controls under Clause (i) of Sub-section 3 of based on the assessed risk. the prevention preparation of financial statements in accordance with generally and detection of frauds and errors. as required under the Act. the safeguarding of its assets. or that the degree of compliance with the policies or procedures may deteriorate.113 dated 2nd May 2001 Annexure to the Independent Auditors’ Report Annexure A to the Independent Auditor's Report of Even Date To the Members of Bajaj Allianz General Insurance Company Limited On the Financial Statements for the year ended 31st March 2016 Referred to in paragraph 2 (I) in the Report on Other Legal and Our audit involves performing procedures to obtain audit evidence Regulatory Requirements of the Independent Auditors’ Report to the about the adequacy of the internal financial controls system over members of Bajaj Allianz General Insurance Company Limited on the financial reporting and their operating effectiveness. issued by the ICAI and deemed to be prescribed over Financial Reporting under section 143(10) of the Act. implementation and maintenance of adequate internal reasonable detail. including the possibility of collusion or improper Financial Controls and. 2013 (“the Act”) auditors’ judgement. of management and directors of the company. Our audit of internal financial statements for the year ended 31st March 2016. accurately and fairly reflect the transactions and financial controls that were operating effectively for ensuring the dispositions of the assets of the company. financial controls over financial reporting included obtaining an understanding of internal financial control over financial reporting. to the extent applicable to an audit of Because of the inherent limitations of internal financial control over internal financial controls. the accuracy and completeness of accepted accounting principles. Independent Auditors’ report on the Internal assessing the risk that a material weakness exists. 28 . These responsibilities include the procedures that (1) pertain to the maintenance of records that. Also. material misstatements due to the Guidance Note require that we comply with ethical requirements error or fraud may occur and not be detected. projections of any and plan and perform the audit to obtain reasonable assurance about evaluation of the internal financial controls over financial reporting to whether adequate internal financial controls over financial reporting future periods are subject to the risk that internal financial control over were established and maintained and if such controls operated financial reporting may become inadequate because of changes in effectively in all material respects. 16th Annual Report 2015 - 2016 Annexure to the Independent Auditors’ Report Opinion Other Matter In our opinion, the Company has, in all material respects, adequate The actuarial valuation for claims Incurred But Not Reported (IBNR) internal financial controls system over financial reporting and such and claims Incurred But Not Enough Reported (IBNER), has been duly internal financial controls over financial reporting were operating certified by the Company’s Appointed Actuary in accordance with the effectively as at 31st March 2016, based on the internal control over guidelines and norms issued by the Insurance Regulatory financial reporting criteria established by the Company considering Development Authority and the Institute of Actuaries of India in the essential components of internal control stated in the Guidance concurrence with the Authority and has been relied upon by us, as Note issued by the ICAI. mentioned in “Other Matter” paragraph of our audit report on the financial statements of the Company as at and for the year ended 31st March 2016. Accordingly, our opinion on the internal financial controls over financial reporting does not include reporting on the adequacy and operating effectiveness of internal controls over valuation and accuracy of aforesaid actuarial liabilities. For B S R & Co. LLP For Walker Chandiok & Co LLP Chartered Accountants Chartered Accountants Firm Registration Number Firm Registration Number 101248W/W-100022 001076N/N500013 Juzer Miyajiwala Khushroo B. Panthaky Partner Partner Membership No. 047483 Membership No. 042423 Pune Pune 19th May 2016 19th May 2016 29 Bajaj Allianz General Insurance Company Limited IRDA Registration No.113 dated 2nd May 2001 Revenue Accounts for the year ended 31st March 2016 ` in '000 st st Particulars For the year ended 31 March 2016 For the year ended 31 March 2015 Schedule Fire Marine Miscellaneous Total Fire Marine Miscellaneous Total Premiums earned - (Net) 1 1,658,503 848,821 39,729,149 42,236,473 1,466,249 720,087 36,132,710 38,319,046 Profit /(Loss) on sale/redemption of 67,369 20,021 737,575 824,965 25,453 7,268 276,149 308,870 Investments Other Income - Miscellaneous Income 123,467 1,587 29,835 154,889 107,757 730 23,101 131,588 Amortisation of Discount/(Premium) 3,857 1,146 42,225 47,228 8,767 2,504 95,117 106,388 Interest, Dividend and Rent-Gross 435,228 129,340 4,765,030 5,329,598 402,583 114,966 4,367,717 4,885,266 Sub Total 629,921 152,094 5,574,665 6,356,680 544,560 125,468 4,762,084 5,432,112 Total (A) 2,288,424 1,000,915 45,303,814 48,593,153 2,010,809 845,555 40,894,794 43,751,158 Claims incurred (Net) 2 1,112,508 413,465 29,012,608 30,538,581 936,574 646,786 25,976,565 27,559,925 Commission 3 (171,142) 67,824 1,042,607 939,289 (170,837) 44,834 618,442 492,439 Contribution to Solatium Fund - - 11,491 11,491 - - 5,562 5,562 Change in Premium Deficiency - - - - - - - - Operating Expenses related to 4 471,320 216,190 10,719,587 11,407,097 388,555 166,908 8,877,690 9,433,153 Insurance Business Total (B) 1,412,686 697,479 40,786,293 42,896,458 1,154,292 858,528 35,478,259 37,491,079 OPERATING PROFIT/(LOSS) (C )=(A)-(B) 875,738 303,436 4,517,521 5,696,695 856,517 (12,973) 5,416,535 6,260,079 Appropriations Transfer to Shareholders' Account 875,738 303,436 4,517,521 5,696,695 856,517 (12,973) 5,416,535 6,260,079 Transfer to Catastrophe Reserve - - - - - - - - Transfer to Other Reserves - - - - - - - - Total ( C) 875,738 303,436 4,517,521 5,696,695 856,517 (12,973) 5,416,535 6,260,079 Significant Accounting Policies and Notes to the Financial Statements 16 The Schedules referred to above form an integral part of the Financial Statements As required by Section 40C of the Insurance Act, 1938, as amended by Insurance Laws (Amendment) Act, 2015, we hereby certify that on the basis of information and explanation given to us all expenses of management in respect of General Insurance business transactions in India, incurred by the Company, have been fully recognised in the revenue account as expenses. As per our report of even date attached For and on behalf of the Board of Directors For B S R & Co. LLP For Walker Chandiok & Co LLP Sanjiv Bajaj Nanoo Pamnani Sergio Balbinot Chartered Accountants Chartered Accountants Chairman Director Director Firm Registration Number Firm Registration Number DIN : 00014615 DIN : 00053673 DIN : 01629245 101248W/W-100022 001076N/N500013 Juzer Miyajiwala Khushroo B. Panthaky Tapan Singhel Milind Choudhari Onkar Kothari Partner Partner Managing Director & Chief Financial Officer Company Secretary & Membership No. 047483 Membership No. 042423 Chief Executive Officer Compliance Officer DIN : 03428746 Pune Pune Pune 19th May 2016 19th May 2016 19th May 2016 30 16th Annual Report 2015 - 2016 Profit and Loss Account for the year ended 31st March 2016 ` in '000 Particular For the year ended For the year ended 31st March, 2016 31st March, 2015 Operating Profit/(Loss), as per Revenue Accounts of (a) Fire Insurance 875,738 856,517 (b) Marine Insurance 303,436 (12,973) (c) Miscellaneous Insurance 4,517,521 5,416,535 5,696,695 6,260,079 Income From Investments (a) Interest, Dividends and Rent - Gross 1,861,711 1,453,951 (b) Amortization of Discount/(Premium) 16,498 31,663 (c) Profit on Sale/Redemption of Investments 308,168 107,926 Less:- Loss on Sale/Redemption of Investments (19,995) (16,000) 2,166,382 1,577,540 Other income -Miscellaneous income 10,887 9,023 Total(A) 7,873,964 7,846,642 Provisions (Other than taxation) (a) For diminution in the value of investments - - (b) For doubtful debts 3,195 (5,617) (c) Others - - Other Expenses (a) Expenses other than those related to the insurance business 156,088 77,482 (b) Bad debts written off - 4,612 (c) Others - - 159,283 76,477 Total (B) 159,283 76,477 Profit before tax 7,714,681 7,770,165 Provision for Taxation Current Tax ( Refer Schedule 16 - Note 25 ) 2,254,263 2,328,983 Fringe Benefit Tax written back - (53,849) Deferred Tax Expense /(Income) ( Refer Schedule 16 - Note 18 ) (181,830) (128,159) 2,072,433 2,146,975 Profit after tax 5,642,248 5,623,190 Profit available for appropriation 5,642,248 5,623,190 Appropriations (a) Interim dividends paid during the year - - (b) Proposed final dividend - - (c) Dividend distribution on tax - - (d) Transfer to reserve/other accounts - - Balance of Profit brought forward last year 19,486,370 13,874,485 Less: Transitional adjustment of depreciation (net of deferred tax) as per Companies Act , 2013 - (11,305) Balance carried forward to Balance Sheet 25,128,618 19,486,370 Significant accounting policies and notes to the Financial Statements 16 Earning per Share: Basic and Diluted ( Refer Schedule 16 - Note 17 ) 51.19 51.01 The Schedules referred to above form an integral part of the Financial Statements As per our report of even date attached For and on behalf of the Board of Directors For B S R & Co. LLP For Walker Chandiok & Co LLP Sanjiv Bajaj Nanoo Pamnani Sergio Balbinot Chartered Accountants Chartered Accountants Chairman Director Director Firm Registration Number Firm Registration Number DIN : 00014615 DIN : 00053673 DIN : 01629245 101248W/W-100022 001076N/N500013 Juzer Miyajiwala Khushroo B. Panthaky Tapan Singhel Milind Choudhari Onkar Kothari Partner Partner Managing Director & Chief Financial Officer Company Secretary & Membership No. 047483 Membership No. 042423 Chief Executive Officer Compliance Officer DIN : 03428746 Pune Pune Pune 19th May 2016 19th May 2016 19th May 2016 31 315.341 Deferred Tax Asset ( Refer schedule 16 .296 Loans 9 .699 Net Current Assets / (Liabilities) (C) = (A .254.830 Sub-Total (A) 14.263.Bajaj Allianz General Insurance Company Limited IRDA Registration No. - Total 27.611. 042423 Chief Executive Officer Compliance Officer DIN : 03428746 Pune Pune Pune 19th May 2016 19th May 2016 19th May 2016 32 .Note 18 ) 633.254.B ) (62. - Borrowings 7 . LLP For Walker Chandiok & Co LLP Sanjiv Bajaj Nanoo Pamnani Sergio Balbinot Chartered Accountants Chartered Accountants Chairman Director Director Firm Registration Number Firm Registration Number DIN : 00014615 DIN : 00053673 DIN : 01629245 101248W/W-100022 001076N/N500013 Juzer Miyajiwala Khushroo B.441 22.522) (51.730 Current Assets Cash and Bank Balances 11 5.091 Provisions 14 25.897.825.992.518.527) Miscellaneous Expenditure (to the extent not written off or adjusted) 15 .069.725 66. Panthaky Tapan Singhel Milind Choudhari Onkar Kothari Partner Partner Managing Director & Chief Financial Officer Company Secretary & Membership No. - Total 27.091.102.152.292 8.153.491.342 Advances and Other Assets 12 9.172 Current Liabilities 13 51.567 Fair Value Change Account .794. 047483 Membership No.672.560 451.897.730.273 Reserves and Surplus 6 26.190.198.796.273 1.911 7.102.608 Sub-Total (B) 77.113 dated 2nd May 2001 Balance Sheet as at 31st March 2016 ` in '000 Particulars As at As at Schedule 31st March 2016 31st March 2015 SOURCES OF FUNDS Share Capital 5 1.088 22.763.203 15.927.681 2.088 22. - Fixed Assets 10 2.815 21.840 Significant accounting policies and notes to the Financial Statement 16 The schedules referred to above form an integral part of the Financial Statements As per our report of even date attached For and on behalf of the Board of Directors For B S R & Co.272.840 APPLICATION OF FUNDS Investments 8 86. - Debit Balance in Profit and Loss Account .369 70.284 44. 260 36.260.503 841.503 841.327.312 862.198 20.716.886 1.015 576.309.132.265 3.762.403.055 7.501 (6.055 7.149 42.143.249 718.046 Note : Premium Income earned from business concluded: In India 1.905 191.319.923.079 86.748.917 52.330 37.850 13.132.466.453 22.404 197.312 45.987. .729.908 Change in the Unexpired Risk Reserve 206.149 42.311.865.236.500) 1.585.158 6.560 115. .611 20.842 . .282.658. .783 155.766 39.259.260 36.729.464 Add: Premium on Reinsurance Accepted 506.132.172 22.249 718.258.716.148.046 *Refer Schedule 1(A) 33 .917.227 42.319.827 1.951 Net Premium 1.128 18.088.625.346 159.271 40.236.260 36.327.466.725.757.347 9.555 12. 16th Annual Report 2015 .125. .468.248 82.827 1.750 712.265 3.238.720 685.236.557.473 1.473 4.198 20.165 Less: Premium on Reinsurance Ceded 3.710 38. . 155.298.711.327 2.2016 SCHEDULE .1 Premium Earned (Net) Schedules to and forming part of Financial Statements ` in ‘000 Particulars For the year ended 31st March 2016 For the year ended 31st March 2015 Fire Marine Miscellaneous* Total Fire Marine Miscellaneous* Total Cargo Others Cargo Others Premium from Direct Business written 4.710 38.574 52.538 9.632 Total Premium Earned (Net) 1.055 7.540 Less: Reserve created during the previous year Written Back 1.466.172 22.819 1.503 841.766 39.789 1.766 39.909 708.740 9.249 718.669 3.070 1.561 1.540 1.657 147.659 23.163 3.046 Outside India . .827 1.321.809 21.769.319.615.510 46.335 25.442 58.678 Adjustment for Change in Reserve for Unexpired Risk Reserve created during the year 1.149 42.723. - Total Premium Earned (Net) 1.658.815 419.577 445.905 191.765 2.178 3.913 461 3.473 1.729.674 1.658. .968 8.487.714 213.238.473 1.710 38. 067.038 365.439 1.361 29.736 2.964 40.528 1.856.598.312 Adjustment for Change in Reserve for Unexpired Risk Reserve created during the year 10.353 235.711.850 Net Premium 19.332 8.300 23. . .393 9.579.087 9.524.085 2.353 235. 2.170 340.085 2. 5.908.383.789. .106) (49.533 27.550 146.878 26.448 879 409.087 9.916.814 645.350 92.615.735 315.378 6. .830 218.860 5. .797 3.130.095.097.413 2. .385 67.400 18. .420.799 1.247 16.878 26.986.618.063 19.484 1.1 (A) Premium Earned (Net) Schedules to and forming part of Financial Statements ` in '000 st Particulars For the year ended 31 March 2016 Motor OD Motor TP Motor Total Workmen’s Public Engineering Aviation Personal Health Credit Others Total Compensation Liability Accident Insurance Insurance /Employers’ Liability Premium from Direct Business 21.113 dated 2nd May 2001 SCHEDULE . .417 403.125.100.621 102.610.350 92.034.874 39. - Total Premium Earned (Net) 19.535 1.877 106.140 1.120 320 2.854 2.172 Change in the Unexpired Risk Reserve 816.736 2.763 14.054 7.327.858 30. .025.287.615.195.246.160.287.022 117.153 2.950 567.330 28.163 Total Premium Earned (Net) 19.754 384. .067.748.038 57.107 173.064 13.713.829.100.378 6.365. . .245 550.729. .172 Less: Reserve created during the previous year Written Back 9.180 21.366 678 403.513 3.347 10.367 7.038 57.916 199.799 1.427 36.327.330 28.710 Outside India .986.022 117.480 422.305 352 2.275 351.067.330 28.756.004 104.120 320 2.617 (1.854 2.003 2.500.584 191.638.856.614 663.275 351.217 4.749 561.670.867 445.787 20.947.814 645.397 8.505 8.950 567.473.044 (40) 176.888 512.696 905.353 235. 46.281 139.287.561 Total Premium Earned (Net) 18.417 403.478 7.659 37.367 7.668 6.772.787 20.427 36.378 6.801.634 8.720 Less: Premium on Reinsurance Ceded 1.854 2.350 92.254.325 4.383.087 9.095.689 46. .802.584 191.639 216. 20.475 .909 Less: Premium on Reinsurance Ceded 1.149 Note : Premium Income earned from business concluded: In India 19.132.044 140.799 1.986.410 638 580.736 2.439 1.039 2.285 604.729.149 ` in '000 st Particulars For the year ended 31 March 2015 Motor OD Motor TP Motor Total Workmen’s Public Engineering Aviation Personal Health Credit Others Total Compensation Liability Accident Insurance Insurance /Employers’ Liability Premium from Direct Business: 19.004.246. Bajaj Allianz General Insurance Company Limited IRDA Registration No.729.100. .655 1.153 2.848 .810.397 8.500.810 878.797 3. .802.584 191. 51.387 1.490 155.722 1.387 22.106) .907 11.432.987.825 206.484 3. .305 1.756. .780 2.132. - Total Premium Earned (Net) 18.004 104.917 Add: Premium on Reinsurance Accepted (0) (49.102 1.242 73.778 5.779 346 1.697 102.473 257.908.019 9.898.719 14.387 42.004 104.528) (29.153 2.082) (201) (5.192 804.531 218. .418 142.710) 426.878 26.341 (26) 187.149 Outside India .665 4.874 39.842.710 Note : Premium Income earned from business concluded: In India 18.246.367 7.366 678 403.023.766 .293 5. .687 554.756.108 475.144 115.183.710 52.421 58.258.856.622 10.670.025.640 7.449.507 2.417 403.719 14.044 154.710 34 .803.702. .969.439 1.610 19.432.080 6.397 8.185 32 542.470.432.473.442 Add: Premium on Reinsurance Accepted .311.271 Adjustment for Change in Reserve for Unexpired Risk Reserve created during the year 9.185 2.814 645.044 154.143.173.869 18.611 Change in the Unexpired Risk Reserve 548.490.085 2.114 215.886.191 7.311. .500.335 Less: Reserve created during the previous year Written Back 9.774 822.757.874 39.281.132.814 37.950 567.321 105.354 125.813 9.427 36.383.960 32. .585.555 Net Premium 18.052 508.325 4.275 351.387.692 12 4. 326.282.029 232.976. .012.447 29.372.560 .847.976.261. .347 35.953 930.608 30.130.365 Add: Re-insurance Accepted 323.519.197 9.644 Less: Re-insurance Ceded 2.781) 25.581 936.867.574 653. 32.112.225.925 Outside India .574 653.259.649 816 29.561 Claims Outstanding (including IBNR and IBNER) Add : Claims Outstanding at the close 1.608 30.722 12.599 575.041 37.205 2.639 309.574 653. 9.031 659.113 31.375 438.636) Total Claims Incurred (Net) 1. - Total Claims Incurred (Net) 1.463 1.225.311.448 Net Claims paid 795.231 29.976.525 371.538. .506 11 22.782 28.513 13.565 27.649 816 29.012.112.283 542.925 Claims incurred In India 1.084 327.766.2 Claims Incurred (Net) Schedules to and forming part of Financial Statements ` in ‘000 Particulars For the year ended 31st March 2016 For the year ended 31st March 2015 Fire Marine Miscellaneous* Total Fire Marine Miscellaneous* Total Cargo Others Cargo Others Claims Paid Direct 3.199 1.508.782 6.758.608 30.832.565 27. .722 12.782.508 412.171 16.781) 25.739 beginning of the year (net of Re-insurance) Change in Claims Outstanding 316.2016 SCHEDULE .192 379.867 28.231 29.618 20.646 229.567 (6.104 (8.112.276 28.857) 805 6.606.944.925 *Refer Schedule 2(A) 35 .783.559.639.012.508 412. .725.442.865 13.057) (2.567 (6.794.103 635.457 . .990 8.214.909 (162.387.743.567 (6.481 5.559.013 36.882) (1.508 412.581 936.283 542.373 27 32.781) 25. .725.649 816 29.394 5.559.924 30.427 16 10.581 936.565 27.199 215. .865.538.103 of the year (net of Re-insurance) Less: Claims Outstanding at the 944.298 372.416.867 28. 16th Annual Report 2015 .097 15.672 34.491.742 944.942 627.538.506 10.826 23. 565 Claims incurred In India 10.041 Add: Re-insurance Accepted .817.334) 55 565.363 28.913 5.782 Total Claims Incurred (Net) 11.356 4. .212 1. . .492) 100.817.895 2.517.717 2.826 Claims Outstanding (including IBNR and IBNER) Add : Claims Outstanding at the close of the year (net of Re-insurance) 1.559 2. 6.530 32.379 41.440 72.382 5.358 625 1.638 109.239 8. .745.428 144.608 ` in '000 st Particulars For the year ended 31 March 2015 Motor OD Motor TP Motor Total Workmen’s Public Engineering Aviation Personal Health Credit Compensation /Product Accident Insurance Insurance Others Total /Employers’ Liability Liability Claims Paid Direct 10.069 6. .211 5.119 72.231 Less: Claims Outstanding at the beginning of the year (net of Re-insurance) 1.688 312 1. 16.013 Less: Claims Outstanding at the beginning of the year (net of Re-insurance) 1.311 14.817.722 (96) 47.404 5.259.410 116.003 .325.995 2.783. .2 (A) Claims incurred (Net) Schedules to and forming part of Financial Statements ` in '000 Particulars For the year ended 31st March 2016 Workmen’s Compensation Public /Employers’ /Product Personal Health Credit Motor OD Motor TP Motor Total Liability Liability Engineering Aviation Accident Insurance Insurance Others Total Claims Paid Direct 13.609 77. .819 314.132 1.802 6.517 1.995 297.499 1. .404 5.358 625 1.826.476.371.209.694 (3.609 77.209 7.442.775 121.830 4.452 8.494 379.013 205.906.830 4.608.851.565 Outside India .231 147.551 125.554.509.271 1.995 297. .209.452 8.179 28.796.796.410 116.524 7.960 355.113 dated 2nd May 2001 SCHEDULE .459 26.958 18.363 28.432 34.189 20.888. .103.495 1. 4.304.437 2.695 2.889 164.815.197 Less: Re-insurance Ceded 699.124 22.595 19 390.225.497 101.217 23.530 53.595 19 390.890.565 36 . 5.526) (34.688 312 1.435.658.111 28.909 300 (2.745 53.086.239 8.012.447 Claims Outstanding (including IBNR and IBNER) Add : Claims Outstanding at the close of the year (net of Re-insurance) 1.170 78.271 1.608 Claims incurred In India 11.579.586.579.530 53. .412 14.408 1.906.606.022 257 805.588 (4. Bajaj Allianz General Insurance Company Limited IRDA Registration No.825 3.692 570 1.568 129.106 921 89. - Total Claims Incurred (Net) 10.878 6.134 14.530 53.782.695 300.722.503 13.513 Net Claims paid 11.993.976. .402 9.334 25.408 1.865.456.882) Total Claims Incurred (Net) 10.524 10.668.087. .559 2.218.188.993.222 213.052.890.371.781 334.229 46.911 1. 5.019 29.218.043 1.189 161.432 4.187 82.125 7.932 135. .389 876 371.906.413) 10.609 77. .428 144.668.005 .954 6.452 8.189 161.766.412 14.559 2.801.694 (3.737 30.758 (2.873 115 343.554.158 368.776.766. .563. .737 25.845) (2.253 2.410 116.797 452.551 125.867.372.830 4.694 (3.334 25.834.535.046.124 20.890.958 18.552 .554.271 1.810.239 8.193 29. .193 29.749 3.158 32.093 208.680 22.753.558.237.187 82.586. .976.428 144.298 Less: Re-insurance Ceded 1.600 9.976.214.785 400 69. . .687 1.123.748 121.402 .694 11.508.087) 15.958 18.012.445 119.589 4.517 1.564 10.046.136 18.787.371 1.217 23.035 28.225.097 Net Claims paid 10. .976.209.124.737 25.737 25.983 5.820 7.976.218.639. 8. - Total Claims Incurred (Net) 11.861 47.955.081.639. .282. .408 1.381 281.703.193 29.803 21.766.599 86.234 5.932 2.358 625 1.060 .189 20.685 107.223 1.608 Outside India .595 19 390.590 6.626 (2.492) 100.112. .668.212 31.995 297.796.231 Change in Claims Outstanding 113.189 20.492) 100.113 Change in Claims Outstanding 121.335 1.869.976.059 192.993.611.404 5.347 Add: Re-insurance Accepted (0) 9.012.426 194.013 205.639.096 15. 607 939.682 Add: Re-insurance Accepted 39.007 (75) 812.146 768.171 59.080. 16th Annual Report 2015 .299 935 . .439 *Refer Schedule 3(A) 37 .613 52.634) 1.607 939.436 11 755. .837) 45.497 848.533 475.662.142) 71.3 Commission Schedules to and forming part of Financial Statements ` in ‘000 st st Particulars For the year ended 31 March 2016 For the year ended 31 March 2015 Fire Marine Miscellaneous* Total Fire Marine Miscellaneous* Total Cargo Others Cargo Others Commission Paid direct 285.285 Total 285.042.436 3.073 48.821 4.000. .210 (376) 618.655.200.442 492.679.210 (376) 618.617.605 115.680 Brokers 91.106 Net Commission (171.679.743 (35) 2.673 79.599 1.863 Less: Commission on Re-insurance Ceded 496. .042.289 (170.439 Outside India .634) 1.482 2. 18. - Net Commission (171. .668 2.262.743 (35) 2.617.2016 SCHEDULE .817 2.111.741 40.778 120.528 54. .128 955.436 3.458 (3.233.607 939.442 492.839 59.535 12 644.717 Corporate Agency 131.142) 71.174 1.262.289 (170.442 492.837) 45.300 29 1.976 39 2.615 481 1.592 3.458 (3.142) 71.517 54.439 Break-up of commission paid direct : Agents 62.605 115.193.289 (170.046 45.682 Commission Paid In India (171.850 98.976 39 2.107 67.841 849 66 18.798 1.837) 45.963 26 890.458 (3. .042.510 891. .210 (376) 618.634) 1.220 3.850 98.749 255.749 255.298 55.817 2.080.478 1 728. . .433 2.296.108.977 27. . .730 (18. .328) (553.108.205 (19.144 . .261 187. Bajaj Allianz General Insurance Company Limited IRDA Registration No.320 10.295) (913. .607 ` in '000 Particulars For the year ended 31st March 2015 Motor OD Motor TP Motor Total Workmen’s Public Engineering Aviation Personal Health Credit Others Total Compensation /Product Accident Insurance Insurance /Employers’ Liability Liability Commission Paid direct 1.042.177 1.745 24.437 34.616 886 66.259 1.677) 992.590 28.442 Outside India .677) 992.513) 618.592 25.810 7.144) 1.586 31.233 (23.144) 1.508 (13.108.779) (230. .086 398.277 622.965) (106. 102 64 .469 42.031 50.556 28.607 Commission Paid In India 1.299 585.328) (553.253 164.734 (8. - Net Commission 1.262.779) (230.233 (23.668 Net Commission 1. .056 48.037 1.556 28.386) (342) 106.965) (106. .538 (28.299 585.016.277 622. .233 (23.113 dated 2nd May 2001 SCHEDULE . .641) 62 60.144) 1.205 (19.117 1.730 (18.538 (28.375 66.588 3.508 (13.729 6. .513) 618.535 .295) (913.299 585.662.328) (553.016.467) 1.944 1.792 824 6.679.655. .232 740.911 23.156 18.779) (230. .386) (342) 106.414 961.302 118.205 (19. .851 3.126.620 289. .538 (28.011 33.586 31.965) (106.231 18.107 Less: Commission on Re-insurance Ceded 147. 1.730 (18.286.016. . .467) 1.636 2.556 28.513) 618.707 .791 11.734 (8.677 171. . . 1.734 (8.126.126.164. .839 Less: Commission on Re-insurance Ceded 159.3 (A) Commission Schedules to and forming part of Financial Statements ` in '000 st Particulars For the year ended 31 March 2016 Motor OD Motor TP Motor Total Workmen’s Public Engineering Aviation Personal Health Credit Others Total Compensation /Product Accident Insurance Insurance /Employers’ Liability Liability Commission Paid direct 1.057 118. . 9.295) (913.042. 232 9.641) 62 60.386) (342) 106.144 31.190.641) 62 60.575 268.164.508 (13.442 38 .644 12. .436 Add: Re-insurance Accepted .870 1.042.817 Add: Re-insurance Accepted . 8.277 622. . .442 Commission Paid In India 1.467) 1.633 651.677) 992.586 31.607 Outside India . - Net Commission 1.317 39.482 Net Commission 1. 41 68 . 155) (3.617) (136) (60) .343 3.445 505.131 11 56.112 1.004 1.235 20 330.119 39 205.042 Travel. (650) (691) (56) (24) . .244 12 61.649 763 7 38.002 Rents.100 (b) as advisor or in any other capacity in respect of: (i) Taxation matters .976 Legal and professional charges 1. . 62.236 40 211.184 40 208.295 3.872 160.407.662 201.078 736 7 121. rates and taxes 8. conveyance and vehicle running expenses 9. 772 820 31 14 .887 1.421 Training expenses 20 9 .959 5.032 224.348 8.351) Miscellaneous Expenses 20.286. 943 1.193 7. .431 221.431 183.269 7. .204 2.539. expenses.065 106. .303 736 3.895 Others Exchange (gain) /loss (556) (257) (2) (12.445 1.310 1.850 56 291.154 7.206 400.731 579 3.297) (1.198 Advertisement and publicity 15.426 3.442 2. .949 Business development and promotion 16.078.291 124.888 383. 799 850 26 12 .802 5.379 1. 4.276 63. 724 769 (d) Out of pocket expenses 20 9 .096 8 .827 54.401 350.802) (13.042 4.819 942 4.941 155.029 67 350.153 *Refer Schedule 4(A) 39 . - (iii) Management services .543 6.560 1. .377) Information Technology 12. .810 22 360.122 Repairs and maintenance 2.579 12 189.111 4.400 14 233. - (iv) Tax audit 35 16 .718 9 144.230 6. .194 10 169.689 1.146 10. 546 579 167.922.148 223 3.Note 2.269 Communication 7. 612 650 (c) In any other capacity 33 15 .547 34 176.320 213.611.4 Operating Expenses Related to Insurance Business Schedules to and forming part of Financial Statements ` in ‘000 Particulars For the year ended 31st March 2016 For the year ended 31st March 2015 Fire Marine Miscellaneous* Total Fire Marine Miscellaneous* Total Cargo Others Cargo Others Employees' remuneration. (1.013 40.025.552 72 376.877.025 71. 456 485 23 10 . 16th Annual Report 2015 .954. .532 68.850. (a) as auditors 208 96 1 4.723.808 4. .926 6.271 60.853 1.263 Loss/(Profit) on disposal of Assets (28) (13) .367 70.736 15 250.821 2.690 9.631 9.965.395 309.938 1.345 221. .849 62.289 3.719. (3.545 91 475.513 5.265 4 67.094 77.210 3.518 24 125.587 11. .693 179 2.712 15. 459 488 41 18 . .555 165.160 247.363 6.904 4.810 4.087 Auditors' fees.097 34.045 152.235 179.549 3.495 93. .791 124.432 1. .465 8.044 4.679 187.924 2.945 10.644 5.959 Depreciation ( Refer Schedule 16 .886 Interest and bank charges 2. etc.411 Other acquisition costs 12.157 4.428 14.254 11 172.888 6 100.699 10.616 Service Tax Expenses 2.265 230 3. .970.666 3.979 65.598 98.460 95. benefits and other manpower costs(Net) 131.324 7.795 5.044 3.235.217.835. .14 ) 9.165 1.433. .104 130.407 133.380 Total 471.898.181 Printing and stationery 5.095.100 207 91 . .555 293.207 218.057 6.728 Marketing and support services 213. - (ii) Insurance matters .459 639 2 60.885 93.604 12. .139 372.351 59.382 606 2 32.168 3. .994 266.209 812 79.126 80.097 388. .2016 SCHEDULE . .391 4. 416 4.759.045 2.410 340.935.542 21.877 3.238 374 91 177 2 727 6. .137 125.302 3. 29 459 Rents.587 40 .748 7. (42) (650) Information Technology 135.909 291.517 121.850 475.934 2 2.623 766.850.690 2 79. .335) (1) (830) (12.634.802) Miscellaneous Expenses 220.222 1.242 14.569 52. .780 29.460 Others Exchange (gain) /loss (5.866 9.246.301 95.4 (A) Operating Expenses Related to Insurance Business Schedules to and forming part of Financial Statements ` in '000 st Particulars For the year ended 31 March 2016 Motor OD Motor TP Motor Total Workmen’s Public Engineering Aviation Personal Health Credit Compensation /Product Accident Insurance Insurance Others Total /Employers’ Liability Liability Employees' remuneration.103 31.693 211. - (ii) Insurance matters .025.798 208.023 61. .715 15.443 838 1.281 120.384 4.157 2.879 154 196.525 208.774 53.174) (126) (31) (59) (1) (245) (2.603 1. etc.355 2. .194 68.134 897. . .435 10 13.108 14. .877 318 94.078 10. benefits and other manpower costs(Net) 1.534 15.413 376.897 1.533 32.207 Repairs and maintenance 28.699 901 1.932) (3.188.696 63. rates and taxes 95. .851 551. 51 799 (c) In any other capacity 357 195 552 8 2 4 .745 126.249 201.630 19 24.379 32.132 975. 30 456 1. .092 86.468 38.351 Business development and promotion 174.214 3. 312 4.539.090 27 71 2.970 147. .926.307 3 4.998 250 319.875 18 22.784. 50 772 (d) Out of pocket expenses 211 116 327 4 1 2 .572 53.616 328 422. 92 875 .634 7.795 (b) as advisor or in any other capacity in respect of: (i) Taxation matters .167.811 25.057 Depreciation ( Refer Schedule 16 .922.527.018 491 954 13 3.748 24 7.013 Auditors' fees.627 103. .611 9. .224 88.151 80.242) (9. .761 89.075 505 981 14 4.059 195 57.277 269.033.14 ) 96.219 2.737 423 821 11 3. .692.663 3.697 64. 15 146 .134 63.431 Service Tax Expenses 12. .491 195 249.007 73.162 10.354 19 5.403 11.697 44.412 609 148 288 4 1. 9 83 .218 33.291 Total 4.032 Training expenses 213 116 329 5 1 2 . . .640 702.675 250.436 47 11 22 .707.719.865 698 1.658. (12) (119) .139 Interest and bank charges 26.271 40.395 3.023 11 13. 9 84 .979 Printing and stationery 58.578 3.858 44.720 350.138 2.750 1.206 Marketing and support services 2.036 38.096 569 61 10.217 17.656 56.808 Advertisement and publicity 162.986 38.233 300 583 8 2.691 4.398 22. Bajaj Allianz General Insurance Company Limited IRDA Registration No.445 151.627 23 6.113 dated 2nd May 2001 SCHEDULE .243 6.445 Loss/(Profit) on disposal of Assets (301) (165) (466) (6) (2) (3) .864 1.734 24 30.112 987 123. expenses.050 499 969 13 3.246 2.332 48.407 Communication 81. . . .210 Travel. . .317 205.785 22. . . - (iii) Management services .993 2.675 1.337 51. 15 141 .878 6 8. .805 2.075 51.231 9 11.280. .627 27.570 1.148 1. .379 554 135 262 4 1.378 37. 3.498 11 13.924 37.401.820 536 765.679 Legal and professional charges 17.Note 2.185 11.395 . - (iv) Tax audit 370 203 573 8 2 4 .786 149.899 3. . conveyance and vehicle running expenses 97.513 Other acquisition costs 41.210 31 9. .158 15 18.897 247 73.393 22.465 176. (a) as auditors 2.760 361 88 170 2 701 6.669 1.280 3 3. 007 138.065 Communication 70.670 470 941 13 2.165 34.228 324 550.143 20.329 170. .14 ) 114.908 2.217 23.978 9. 3. .803 8. . .429.929 172.159 123. 9 110 . 277 4.616 23.450 59.404 671.650 181 283.331. .624 1.404 240.810 40. 4 . conveyance and vehicle running expenses 93.518 30.362 1. .419 883.018 51. .276 Total 4.723.838 19.343 Travel.848 34. (75) (1.140 3.659 4.073 7.143 25.416 27.297) Information Technology 123.495 983 1.889 48. 16th Annual Report 2015 .429 3.097 Auditors' fees.555 2.301) (31) (9) (17) .831.837 517 1.028 330. .401 Interest and bank charges 16. .377 16.2016 SCHEDULE . . . .025 Printing and stationery 49.910 3 166 790 11 40 16.566 31.911 3.639 461 924 12 2.951 60. (a) as auditors 2.972 58. benefits and other manpower costs 1. . .126 522.495 Others Exchange (gain) /loss (1.238 40.117 13.658 35. etc. .822 34.849 32.966 15.532 6 9.258 635 1.217 7 10.235 Marketing and support services 1. .905 48.888 (Profit)/Loss on disposal of assets (637) (308) (945) (13) (4) (7) . . 11 131 .549 Other acquisition costs 36.746 169.110 1 1.008 2.120.607 12 19.510 84.774 2.Note 2.370 18 3.916 59.428 233.146 5.502 47 13 26 .734 651.859 67. 36 612 (c) In any other capacity 356 172 528 7 2 4 .632.638 263. rates and taxes 84.320 271 55.431 684 1. 8 98 .284 45.877.051 .552) (749) (2.938 21. .291 1. - (iii) Management services . .922 189.787 7. . (47) (569) .291 3.421 893.282 9 14.425. .962 969 273 546 7 1.895 15. .403 311 87 175 2 478 5.4 (A) Operating Expenses Related to Insurance Business Schedules to and forming part of Financial Statements ` in '000 Particulars For the year ended 31st March 2015 Motor OD Motor TP Motor Total Workmen’s Public Engineering Aviation Personal Health Credit Others Total Compensation /Product Accident Insurance Insurance /Employers’ Liability Liability Employees' remuneration.994 2.397 1.203.959 Depreciation ( Refer Schedule 16 . expenses. . 71 866 .561 183.803 24 4.295 Advertisement and publicity 162.544 687.762 100. (181) (3. 33 546 1.502 85.370 65.676 328 92 185 2 504 6.353 23.108 6 9.763 139 214.802 (b) as advisor or in any other capacity in respect of: (i) Taxation matters . 41 724 (d) Out of pocket expenses 268 130 398 5 1 3 . - (ii) Insurance matters .108 14 20.015 36. .160 Service Tax Expenses 11.469 42.735 45.955 6.316 643 129.200 900 1.395 392 786 10 2.871 649 183 366 5 997 12.745 72.987 5 8.523 .690 41 . 14 170 .524 79.318 28.035 14 2.814 47.728 1. (19) (234) .053 4 5.507 78. .092 3 3.207 856.776.715.749 62.970.611.452.510 134 207.958 2.431 Repairs and maintenance 32.817 211 43. .155) Miscellaneous Expenses 177.918 125.113.045 Legal and professional charges 15.030 1.272 17 3.454 250.898.967 3.633.489 18. .849 Business development and promotion 83.662 Training expenses 464 224 688 9 3 5 .887 108 166. .337 364 72.707 262 53. .523 1. .140 3. 45.969 26 5. 54 943 Rents.064 9 13. .587. .783 360. .182 105.065 10.791 1 1. . - (iv) Tax audit 301 145 446 6 2 3 .011 2.297 144.679 55.596 2. - Balance in Profit and Loss Account 25. .250. - Other Reserves . - Financial Institutions .567 SCHEDULE .273 1. - Expenses including commission or brokerage on underwriting or subscription of shares Total 1.273 Subscribed Capital 110.273 Less: Calls unpaid .102.7 Borrowings Schedules to and forming part of Financial Statements ` in '000 Particulars As at As at 31st March 2016 31st March 2015 Debentures/Bonds .00% Others .000 1. - Share Premium 1.273 1.250) Equity Shares of Rs 10 each fully paid up 1.102.568.00% 110.165 74.618 19.227.Bajaj Allianz General Insurance Company Limited IRDA Registration No.250) Equity Shares of Rs 10 each fully paid up 1.102.815 21.227.128.227.000 ( previous year :125. - 42 . - Less: Debit balance in Profit and Loss Account .227. . - Others .659.113 dated 2nd May 2001 SCHEDULE . - Add : Equity Shares forfeited (Amount originally paidup) .102.666.227.227. - Capital Redemption Reserve .250 ( previous year :110. - Less: Amount utilised for Buy-back Catastrophe Reserve .000) Equity shares of Rs 10 each 1.273 SCHEDULE .102.250 100.085 26.273 1.5A Share Capital / Pattern of Shareholding Schedules to and forming part of Financial Statements (As certified by the Management) Shareholder As at 31st March 2016 As at 31st March 2015 Number of % of Number of % of Shares Holding Shares Holding Promoters Indian Bajaj Finserv Limited 81. - Total 110. - Less : Par Value of Equity Shares bought back .250 ( previous year :110.165 74.197 1.6 Reserves and Surplus Schedules to and forming part of Financial Statements ` in '000 Particulars As at As at 31st March 2016 31st March 2015 Capital Reserve . - Banks .227.085 26.370 Total 26.102.5 Share Capital Schedules to and forming part of Financial Statements ` in '000 Particulars As at As at 31st March 2016 31st March 2015 Authorised Capital 125.250 100. - Less: Preliminary Expenses to the extent not written off .273 Called-up Capital 110.227.102.794.666.00% Foreign Allianz SE 28.486.152.00% 28.273 1.000 Issued Capital 110.102.00% SCHEDULE .250 ( previous year :110.197 General Reserves .000.659.250.000. - Total .250) Equity Shares of Rs 10 each fully paid up 1.568.00% 81. 791.630 5 Other than Approved Investments (a) Shares (aa) Equity Shares . - ( c) Debenture/Bonds 136. 3) Investments maturing within next 12 months are Rupees 9.185 Thousand ) deposited with Standard Chartered Bank (Custodian).938.369 70. - Total 86.369 Thousand (Previous year Rupees 70.274 ( c) Other securities-Loan 500. - (g) Investment Properties-Real Estate .678 5 Other than Approved Investments (a) Shares (aa) Equity Shares .800 - ( c) Derivative Instruments . - (f) Subsidiaries .296 Thousand) Market value as at 31st March 2016 Rupees 88. which are held in Government of India Bonds aggregating Rupees Nil thousand (Previous year Rupees 112.965 3.697 Thousand) 5) Value of contracts in relation to investments where deliveries are pending Rupees 938.682 Thousand (Previous year Rupees 4.069. - (b) Mutual Funds .321.796. - 3 Approved Investments (a) Shares (aa) Equity Shares .461 39.069. - (f) Subsidiaries .984 Thousand (Previous year Rs 72. - (c) Derivative Instruments .069. - (bb) Preference Shares . - (d) Debenture/Bonds 7.369 70. 2) All the above investments are performing assets.796.152. - 4 Investments in Infrastructure and Social Sector 329.109.1938.296 Outside India .841.369 70.8 Investments Schedules to and forming part of Financial Statements ` in '000 Particulars As at As at 31st March 2016 31st March 2015 Long Term Investments 1 Government securities and Government guaranteed bonds including Treasury Bills 45.796.039 (Previous year Rupees Nil).666.000 Short Term Investments 1 Government securities and Government guaranteed bonds including Treasury Bills . - (bb) Preference Shares 1.587) and in respect of sale of investments where payments are overdue Rupees 831. - 2 Other Approved Securities .000 (b) Debenture/Bonds . - (b) Mutual Funds .903. 125.296 NOTES: 1) All the Investments are free of any encumberances other than investments under Section 7 of the Insurance Act. - (d) Debenture/Bonds 12.063 135.230.932 (e) Other securities . - (bb) Preference Shares . - 4 Investments in Infrastructure and Social Sector 18.046.850 Total 86. - (bb) Preference Shares .000 375.784 (Previous year Rupees 52. - (g) Investment Properties-Real Estate . - Fair Value Change Accretion/(Diminution) .414 11.813.747.871. 16th Annual Report 2015 .796.854 252. - (b) Mutual Funds 851.069.461 Thousand) 4) Investment other than Equities and Derivative instruments Aggregate value of Investments as at 31st March 2016 Rupees 86.312 12.600 (e) Other securities (to be specified) . - 3 Approved Investments (a) Shares (aa) Equity Shares .2016 SCHEDULE .332 2 Other Approved Securities .500 750. 43 . - Less : Accumulated depreciation .296 Investments In India 86. 9 Loans Schedules to and forming part of Financial Statements ` in '000 Particulars As at As at 31st March 2016 31st March 2015 1 SECURITY-WISE CLASSIFICATION Secured . - a) On Mortgage of Property (aa) In India . Bonds. - d) Industrial Undertakings . - e) Others . - b) Bank and Financial Institutions . - c) Others . - Total . - Unsecured . - (bb) Outside India . - b) Non-performing loans less provisions (aa) In India .Bajaj Allianz General Insurance Company Limited IRDA Registration No.Term . - Total .Term . - b) Long. - 2 BORROWER-WISE CLASSIFICATION a) Central and State Government . - Total 4 MATURITY-WISE CLASSIFICATION a) Short. - (bb) Outside India . - c) Subsidiaries . Securities . - Total . - b) On Shares. Govt. - Total . - 3 PERFORMANCE-WISE CLASSIFICATION a) Loans classified as standard (aa) In India . - (bb) Outside India .113 dated 2nd May 2001 SCHEDULE . - 44 . 874 2.720.720 (bb) Others 1.758.Computer Softwares 376. 24. .238 52.360 30.806 30.202 10. 41 Buildings** 2.702 112.419 211.856 1.14 * Opening Balance of depreciation consists transitional adjustment as per Companies Act.618.112 337. .212.586 289.315.898.914 247.989 (c) Others .642 62.292 8.374 21. .681 2. .699 3.720.312.011 1.342 45 .424.401 69.958 2.000 (b) Current Accounts 2.177 Thousand ( Previous year Rs.788 238.Fixed Assets Schedules to and forming part of Financial Statements ` in '000 Particulars Gross Block Depreciation / Amortisation Net Block As at Additions/ Deductions/ As at As at For the On Sales/ As at As at As at 1st April Adjustments Adjustments 31st March.155 1.320 8.825 Freehold Improvements 24. 20.168 Outside India 90. 16th Annual Report 2015 .342 Balance with non-scheduled Banks included in (3) above 90.174 Total 5.898.674 53. .198 302.518.987 43.300.727 Vehicles 18.694 .881 223.437 3.292 8.300. .011 122.309 9. .198 1. 31st March.19. - 5.634. Others .374 2. .704 Grand Total 4.011 122.374 221. .874 2.825.775 112.177 .698 175.090 2. Cash and Stamps on Hand 75.898.720.730. - Leasehold Improvements 129.716 9.209 125.425 38.615 108.752 176.444.933 105.126 Thousand) ** Include share of undivided portion of Land.598 Total 4.136 14.288 127. . 253.217 2.895 8.224.320 Furniture and Fittings 423.476 144.844 15. Money at Call and Short Notice (a) With Banks . 19.825.2016 SCHEDULE 10 .742 15. 24.397 206. 11. along with office premises.744 791.374 221. - (b) With Other Institutions .508 43.341 - * Refer Schedule 16 Note 2. - Intangibles .177 24.989 8. 2.637 Capital work-in-progress & advances 9.665.931 16. 1st April Year Adjustments 31st March.907 4.280 4.381.860 4. .493 Office Equipment 286.518.944.856 1. 2013 amounting to Rs.174 Cash and Bank Balances In India 5. .190 . .872 110.949 Information Technology Equipment 827.634.306.440 323.Cash and Bank Balances Schedules to and forming part of Financial Statements ` in '000 Particulars As at As at 31st March 2016 31st March 2015 1.103 .720.626 1.000 1.307 .264.137 40 .405 14.341 As at 31st March 2015 4. - Total 5.752 176.698 175.137 63. Cheques on Hand 461.177 Thousand) SCHEDULE 11 .203 716.944.177 .684 Land .719 128.546 105.994 110.656 10.127 30. - 4.119 2.890 10.Freehold .196 2.821.198 1.192 1. at an estimated cost of Rs.778 10.764 278.315.112 347. . . Nil (Previous year Rs 17.665.725 18. 31st March 2015 during the during the 2016 2015* 2016 2016 2015 year year Goodwill .744 51.398 665.307 209.397 206.907 4.982 2.832 404. . . .061 14.746 429. Bank Balances (a) Deposit Accounts (aa) Short Term (due within 12 months) 1. Bajaj Allianz General Insurance Company Limited IRDA Registration No.968 1.664 3.742.153.830 46 .309) (5.113 dated 2nd May 2001 SCHEDULE . Income accrued on investments 2. - 3. Foreign Agencies Balances .782.068 Less : Provision for doubtful advances (3.330 876.611. Reserve Deposits with Ceding Companies . Due from other entities carrying on insurance business.388.999. Agents' Balances 43.968 1.028 Other Assets 1.639 ( c) Unutilised service tax Carried forward 534. Advance Tax Paid and Taxes Deducted at Source 743.171 526. Advances to Directors / Officers .370 19.429) 433.871 Less: Provision For Doubtful Recoveries (6.742. Application money for investments .403 5.202 416. - 5.508 1. - 5.186 (b) Advances recoverable 436.614. Others (a) Advance to Employees 927 1.648 4.193 127.058 2.Deposits 145.612. Prepayments 69.849 66.986.039 - Total (A) 2.802 Total (A + B) 9. Outstanding Premiums 764.320 391.911 7.517 Less : Provision for doubtful amounts .751.797 thousand)) 6.348 (Net of Provision for Taxation Rupees 8.517 6.425 (d) Unsettled Investment Contract Receivable 831. - 2.958 2.832 18.434.538) (1.430 4.629 397.12 Advances and Other Assets Schedules to and forming part of Financial Statements ` in '000 Particulars As at As at 31st March 2016 31st March 2015 Advances 1.402.434. Others .332 thousand (Previous year Rupees 8. Due from Subsidiary/Holding Companies 4. - 3.223) 36.015 Total (B) 6. including reinsurers (net) 3.022 - 7. 005 ( c) Long Term Incentive Plan 66. - (Net of Advance Tax of Rupees NIL thousand (Previous year Rupees 80.874 ( c) Unsettled Investment Contract Payable 938.272. 82 6.519.420 741.580 thousand)) 4. Due to Officers/Directors .485.284 44.491.916 (b) Statutory Dues 72.508 3. Unallocated Premium 1. For Proposed Dividends . - 10. Provision for Income Tax 122. Provision for Fringe Benefit Tax .198.743.725.103 8.13 Current Liabilities Schedules to and forming part of Financial Statements ` in '000 Particulars As at As at 31st March 2016 31st March 2015 1.987.2016 SCHEDULE .725.553 11.519 33.870 1.094 345.15 Miscellaneous Expenditure (to the extent not written off or adjusted) Schedules to and forming part of Financial Statements ` in '000 Particulars As at As at 31st March 2016 31st March 2015 Discount allowed in issue of shares/debentures . Others (a) Sales Tax/Service Tax Payable 50.642 8.806 (Net of Advance Tax Paid and Tax Deducted at Source Rupees 2. Sundry Creditors ( Refer Schedule 16 .742 29.413 6.393 1.175 Total 25. - 47 .981.587 Total 51. - Others . Due to Subsidiaries/holding Company . Balances due to other insurance companies including reinsurers (net) 6.571. - 8.974 4. - 3. Claims Outstanding ( Net ) 36.784 52.Note 22 ) 1. Premium Deficiency ( Refer Schedule 16 . - Total . Solatium Fund 45.238.588 34. - 7.091 SCHEDULE . 16th Annual Report 2015 .594 5.127.Note 19 ) .593. Due to policyholders/ Insured ( Refer Schedule 16 .239.429 thousand (Previous year Rupees 901.375 thousand)) 5.642 1.351 116.Note 24 ) 727.608 SCHEDULE .097 9. Provision for Wealth Tax .886 22. Reserve for Unexpired Risk 25. Agents' Balances 178. Others : For Employee Benefits (a) Gratuity ( Refer Schedule 16 .999 2.962.9 and Note 10 ) . For Dividend Distribution Tax .14 Provisions Schedules to and forming part of Financial Statements ` in '000 Particulars As at As at 31st March 2016 31st March 2015 1.511 26.Note 2. 1.598 59.992. Premiums Received in Advance 2.441 22.540 2.685 103. - (b) Compensated Absences 77.473 7. 2 Use of Estimates Reinsurance premium in respect of proportional reinsurance is The preparation of financial statements in conformity with the ceded at the commencement of the risk over the contract period generally accepted accounting principles requires management or the period of risk. Premium year in which they are incurred. 2013 read with rule 7 of the Companies (Accounts) Rules. it is recognized on 1. including reinstatement 2.. Marine and Miscellaneous ii). whichever is appropriate. 2006 which continues to apply under section iv). contingent liabilities as of the Balance Sheet date.3 Revenue recognition viz. as a remaining period of risk or contract period.113 dated 2nd May 2001 SCHEDULE – 16 : Significant Accounting Policies and Notes to and forming st Part of the Financial Statements for the year ended 31 March 2016 on a gross basis and for installment cases. commission. for specific investments sold/redeemed during the year. Actual Reinsurance inward acceptances are accounted for on the basis results may differ from the estimates and assumptions used in of reinsurance slips accepted from the reinsurers. refunds or cancellations of premiums are recognized in the year revenue and expenses for the year ended and disclosure of in which they occur.. Non-proportional reinsurance premium is to make estimates and assumption that affect the reported ceded when incurred and due. 2. previously recognized and credited to Fair Value Regulatory and Development Authority (Preparation of Financial Reserve. Any subsequent revisions to premium Bajaj Allianz General Insurance Company Limited (‘the are recognized in the year in which they occur over the Company’) was incorporated on 19 September 2000. the Insurance changes. The estimates and assumptions used in accompanying financial statements are 2. and are primarily related to. 2. is Premium received in advance represents premium received in recognized as income at the commencement of risk over the respect of policies issued during the year. 48 . company under the Companies Act. defined as costs that vary with. Interest income is recognized on accrual basis and dividend income is recognized when the right to receive the dividend is 2. the Companies Act. Acquisition costs. preparing the accompanying financial statements. 2002 (‘The Regulations’) and orders and directions issued by the IRDAI in this behalf. Any subsequent revisions to. the insurance industry. SIGNIFICANT ACCOUNTING POLICIES established. Profit commission under re-insurance treaties.Premium / Discount on Purchase of Investments The financial statements are prepared and presented in Premium or discount on acquisition.4 Reinsurance Ceded 2. standards notified pursuant to Companies (Accounting Standards) Rules. Interest / Dividend Income segments and holds a valid Certificate of Registration. amounts of assets and liabilities as of the Balance Sheet date. 2014 and in accordance with the statutory Profit or loss on sale/redemption of securities is recognized on requirements of the Insurance Act.Bajaj Allianz General Insurance Company Limited IRDA Registration No. are expensed in the I). off to the nearest thousand. BACKGROUND installment due dates. 1938 (amended by the trade date basis and includes effects of accumulated fair value Insurance laws (Amendment) Act. commences subsequent to the Balance Sheet date. policy issue expenses etc.5 Reinsurance Accepted based upon management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. insurance policies relating to Fire.Profit / Loss on Sale of Securities 133 of the Companies Act. Premium (net of service tax). 1956. the acquisition of new and renewal insurance contracts 2. is recognized in the year of final determination of The financial statements are presented in Indian rupees rounded the profits and as intimated by Reinsurer. 2015). Commission on Reinsurance Ceded Regulations. is amortized / accreted on followed in India under the historical cost convention and accrual constant yield to maturity basis over the period of basis of accounting and comply with applicable accounting maturity/holding. as the case may be.7 Premium Received in Advance premium on direct business and reinsurance accepted. Statements and Auditor’s Report of Insurance Companies) v). as applicable. where the risk contract period or the period of risk. wherever applicable.6 Acquisition Costs to accounting estimates is recognized prospectively in current and future periods. in accordance with the Generally Accepted Accounting Principles respect of fixed income securities. The Company is Adjustments to premium income arising on cancellation of registered with Insurance Regulatory and Development Authority policies are recognized in the period in which they are of India (‘IRDAI’) and is in the business of underwriting general cancelled. 2013 (‘The Commission received on reinsurance ceded is recognized as Act’) (to the extent applicable) and current practices prevailing in income in the period in which reinsurance premium is ceded.1 Basis of Preparation of Financial Statements iii). Any revision 2. whichever is appropriate. the premium deficiency arising out of reinsurance acceptances from The method of apportionment is decided by the management. Claims are recognized as and when reported. It also includes survey fees. 2. 2012). 20 thousands are depreciated fully in the year of acquisition. and set aside for subsequent risks to be borne by the Company under contractual obligations on contract period 2.9 Premium Deficiency Appointed Actuary based on actuarial principles. Premium Deficiency was recognized at the overall segments are allocated on actuals. subject to a Incurred But Not Enough Reported) minimum of 100% in case of Marine Hull business and 50% in case of other businesses based on net premium written on all Incurred But Not Reported (IBNR) reserve is a provision for all unexpired policies at Balance Sheet date during the twelve claims that have occurred prior to the end of the current months preceding the Balance Sheet date as required by Section accounting period but have not been reported to the Company.. related expenses and maintenance with guidelines and norms issued by the Institute of Actuaries of costs exceeds the sum of related premium carried forward to the India in concurrence with the IRDAI regulations. as life specified in Schedule II of the Companies Act. if any. in line with transitional provision b) Other expenses. The Company considers maintenance costs as relevant direct 2. 2. declined risk pool is not considered as per regulatory guidelines.13 Income from Investments and Other Income 2. 49 . dated 5th October. dated 3rd July. Depreciation and Amortization Claims paid (net of recoveries including salvage retained by the Tangible Fixed Assets and Depreciation insured and includes interest paid towards claims) are charged to the respective revenue account when approved for payment. Until 31st a) Expenses which are directly identifiable to the business March 2015. costs directly attributable to claims. 2013. under the terms of the reinsurance and coinsurance Reserve for unexpired risk represents that part of the net arrangements respectively. Provision is made for estimated value of outstanding claims at the Balance Sheet date net of reinsurance. Operating expenses (net of reimbursements) related to the 2013 (Corrigendum to Master Circular IRDA/F&I/CIR/F&A/231/ insurance business are allocated to specific business segments on 10/2012. the recoveries from expenses relating to acquisition and installation) less sale of salvage are recognized at the time of sale. wherever possible. The said liability is determined by 2. as follows: anticipated and estimated by the management in light of past experience and subsequently modified for changes. which are not directly identifiable. 64 V(1)(ii)(b) of the Insurance Act. are recognized together with the premium (i. 1938.8 Reserve for Unexpired Risk Amounts received/receivable from the reinsurers and coinsurers.2016 SCHEDULE – 16 : Significant Accounting Policies and Notes to and forming st Part of the Financial Statements for the year ended 31 March 2016 2. Tangible Fixed Assets are stated at cost (including incidental Where salvage is retained by the Company. change in the outstanding provision of to the revenue account and the profit and loss account on the claims and estimated liability for claims Incurred But Not basis of funds available from insurance operations and Reported (‘IBNR’) and claims Incurred But Not Enough Reported shareholders’ funds and are further allocated to the lines of (‘IBNER’).14 Fixed Asset. (Also refer note 2. based on the nature of the expenses and their logical correlation The expected claim costs is calculated and duly certified by the with various business segments. premium deficiency in miscellaneous revenue account.e. Assets costing up to Rs. company level and disclosed in Revenue Account from which the same had predominantly arisen. The IBNR reserve also includes provision for claims Incurred But Not Enough Reported (IBNER). Appointed Actuary. net of reinsurance ceded) which is recognition of the claim. Such provision is made on the basis of the ultimate assessment of useful life which is in accordance with the Useful amounts that are likely to be paid against each claim.19). as per IRDAI circular IRDA/F&A/CIR/FA/126/07/2013. as appropriate. legal expenses and other business in proportion of their respective Gross Direct Premium. are mentioned in above circular dated 3rd July 2013 In computing the apportioned on the basis of Net Written Premium. attributable to. Further. premium deficiency. has the following basis: been recognized at Segmental Revenue Account Level. accumulated depreciation.12 Operating Expenses Related to the Insurance Business costs incurred for ensuring claim handling operations. salvage and other Depreciation on other assets is provided based on Management’s recoveries.11 IBNR and IBNER (Claims Incurred But Not Reported and Claims basis or risk period basis. Claims incurred gain or loss on sale of investments and other income is allocated comprises claims paid. 16th Annual Report 2015 .10 Claims Incurred Income earned from investments and fixed deposits with banks. The Appointed Actuary has certified that the methodology and assumptions Premium deficiency is recognized if the ultimate amount of used to estimate the liability are appropriate and in accordance expected net claim costs. subsequent accounting period as the reserve for unexpired risk. premium. comprising direct cost and change account. etc.Bajaj Allianz General Insurance Company Limited IRDA Registration No. as on the date of sale. desktops. in respect of the particular security.15 Investments (in years) as per (in years) as Management’s per Schedule assessment II of the Investments are recorded on trade date at cost. Value in Mutual Fund Units use is the present value of the estimated future cash flows Mutual Fund Units are stated at their Net Asset Value ('NAV') at expected to arise from the continuing use of the assets and from the Balance Sheet date. Classification: laptops. The Company provides pro rata depreciation from/to the Equities (Listed & Actively Traded) month in which the asset is acquired or put to use/disposed off Listed and Actively Traded securities are stated at the last quoted as appropriate. Information technology equipment • End user devices. closing price on the National Stock Exchange of India Limited Capital Work in Progress: (NSE). if any. such as. then they are valued on the last quoted closing price on BSE Limited. 50 . if any. in respect of carrying amount of the asset over its remaining useful life. Cost includes Companies brokerage. furniture & fittings)* 10 10 Valuation: (*Electrical fittings installed at leased premises are depreciated over an estimated useful life of 3 years) Debt Securities and Non-convertible Preference Shares Lease hold improvements to leased properties are depreciated over the primary period of All debt securities including government securities and non- lease of 3 years. 3 3 • Servers and networks 6 6 Investments maturing within twelve months from Balance Vehicles 8 8 Sheet date and investments made with the specific intention to Office equipment 5 5 dispose off within twelve months from Balance Sheet date are Furniture & fixtures 10 10 classified as short-term investments. Act.113 dated 2nd May 2001 SCHEDULE – 16 : Significant Accounting Policies and Notes to and forming st Part of the Financial Statements for the year ended 31 March 2016 Nature of Assets Useful Life Useful Life 2. etc. weighted average cost basis. Capital works in progress includes assets not ready for the Unrealized gains or losses are credited / debited to the fair value intended use and are carried at cost. depreciation is provided on the revised previously taken to the fair value change account. In assessing value in use debited to the fair value change account. such gain or loss is transferred to revenue on the trade date. commencing from the date the assets are available for use. The useful life of the between the sale consideration and the amortized cost in the asset is reviewed by the management at each Balance Sheet books of the Company as on the date of sale determined on date. determined on a weighted average cost basis and includes the accumulated changes in the fair value (ii) After impairment. the particular security. transfer charges. related incidental expenses. exceeds its recoverable amount. In case the equity shares are not listed on the NSE. The recoverable amount is greater of the assets net selling price and value in use. life on a straight-line basis. such gain loss is recognized wherever the carrying amount of an asset or loss is transferred to revenue on the trade date. If there is any indication of changes in the fair value previously taken to the fair value impairment based on internal/external factors. and excludes pre-acquisition interest. The management has estimated the The realized gain or loss on the securities is the difference useful life for such software as three years. as difference between the sale consideration and the carrying cost determined by the management. The realized gain or loss on the listed and actively traded Impairment of Assets equities is the difference between the sale consideration and the carrying cost as on the date of sale. Buildings 60 60 Air conditioner (part of office equipment) 5 5 The investments are shown at Company level and not Electrical fittings (part of segregated at Shareholder's level and Policyholder's level. Investments other than short term investments are classified as long-term investments. determined on a (i) The carrying amounts of all assets are reviewed by the Company weighted average cost basis and includes the accumulated at each Balance Sheet date. Unrealized gains or losses are credited / its disposal at the end of its useful life. transaction taxes as applicable. the estimated future cash flows are discounted to their present value at a rate that reflects current market assessments of the The realized gain or loss on the mutual fund units is the time value of money and the risks specific to the asset. convertible preference shares are considered as 'held to Intangible Fixed Assets and Amortization maturity' and accordingly stated at historical cost adjusted for amortization of premium or accretion of discount on constant Intangible Fixed Assets representing software are recorded at its yield to maturity basis in the revenue account and profit and loss acquisition price and are amortized over their estimated useful account over the period of maturity /holding. an impairment change account. 2013. 5 billion (Previous year Rupees The Company's Superannuation Scheme and Provident Fund 10 billion) per location/compound. participated in the valuation carried out by an independent actuary using Projected Terrorism Pool. GIC retro cedes. obligation is measured on the basis of independent actuarial Fair Value Change Account valuation using the Projected Unit Credit Method.Defined Contribution Plans premium collected to the Terrorism Pool. the Balance Sheet date are converted at the exchange rates If at the Balance Sheet date there is any indication that a prevailing at that date. which is employees under a defined contribution plan. The stated at historical cost. earlier recognized in Profit and Loss Account. is is recognized in the Revenue Account or Profit and Loss reversed in Profit and Loss Account and the investment is Account. ex-gratia and compensated leaves. The Company contributes to the Bajaj to the Company. Assets and Liabilities in foreign currency. The plan is a discretionary account is considered as a component of shareholders' funds deferred compensation plan. It is a rolling plan with annual and not available for distribution as dividend. the Company. accrued compensated absences and utilize it in future service periods or receive cash compensation on termination of Loans – Investment employment. is recorded based on quarterly confirmation received from GIC. To the extent the benefits premium in accordance with the requirements of the Tariff are already vested.17 Foreign Currency Transactions and hence the investments are not considered as impaired. Actuarial gains and losses are recognized Corporation of India ('GIC'). This pool is managed by the General Insurance Unit Credit Method. for which recorded as reinsurance accepted.Defined Benefit Plan 2. where the lessor effectively retains substantially all the I) Short Term Employee Benefits risks and rewards of ownership of the leased item. if any. 16th Annual Report 2015 .19 Contributions to Terrorism and Third Party Insurance Pools The Employees' Gratuity Scheme is a defined benefit plan. The I) Terrorism Pool present value of the obligation under such defined benefit plan In accordance with the requirements of IRDAI. Scheme are defined contribution plans. These benefits include salaries. The total lease rentals (including scheduled rendering the service are classified as short term employee rental increases) in respect of an asset taken on operating lease benefits and are recognized in the period in which the employee are charged to the Revenue Account on a straight line basis over renders the related service. the lease term. are However.16 Employee Benefits Leases. Unrealized losses on listed and actively traded investments held for long term are not considered to be of a permanent nature 2. The balance in the selected management personnel. in the Revenue Account. subject to conditions and an overall limit of Rupees 15. reinstated to that extent. Provision for LTIP Impairment of Investment liability is accrued and provided for on the basis of actuarial valuation made at the Balance Sheet date. as applicable. the Company. Amounts collected as terrorism immediately in the Revenue Account. at each Balance Sheet date. 2. if any. Initial direct costs incurred specifically for an bonus. accruals and a defined payment schedule. previously assessed impairment loss no longer exists then Exchange rate difference either on settlement or on translation impairment loss. Advisory Committee ('TAC') are ceded at 100% of the terrorism iii) Post-employment Benefits . The Company records an obligation for such compensated absences in the period in which the employee Loans given are classified as 'held to maturity' and accordingly renders the services that increase this entitlement. assesses recorded at the exchange rate prevailing on the date of the investments for any impairment and necessary provisions are transaction. is determined at each Balance Sheet date based on actuarial together with other insurance companies. if any. terrorism premium to the extent of the share Auto Employees' Superannuation Fund at fixed rates for eligible agreed to be borne by the Company in the risk. Fair Value Change Account represents unrealized gains or losses v) Long Term Incentive Plan in respect of investments in equity securities and mutual fund The Company has a Long Term Incentive Plan ('LTIP') for units outstanding at the close of the year. Such reinsurance accepted necessary approvals have been obtained. operating lease are charged to the Revenue Account.18 Operating Lease 2. The contributions paid/payable under the schemes are recognized immediately In accordance with the terms of the agreement. Transactions denominated in foreign currencies. past service cost is recognized immediately. ii) Post-employment Benefits . 51 . are classified Employee Benefits payable wholly within twelve months of as operating lease.2016 SCHEDULE – 16 : Significant Accounting Policies and Notes to and forming st Part of the Financial Statements for the year ended 31 March 2016 Real Estate – Investment Property iv) Compensated Absences Investment Property is measured at historical cost less The employee can carry forward a portion of the unutilized accumulated depreciation and impairment loss. as at made for the same where ever required. based on the returns be. that sufficient future taxable income will be available against submitted by the GIC. Timing differences are the differences between taxable Alone Third Party Liability of Commercial Vehicles i. underwriting parameters of respective insurer shall be ceded to Deferred tax is measured based on the tax rates and the tax laws the DR Pool. administered by the GIC. The premium to the extent of 20% in respect of enacted or substantively enacted at the Balance Sheet date. period NIL) are provided based on the management's estimate and recorded net under claims incurred. NIL (Previous respective balances has been disclosed in Schedule 16. for the purpose of Section 32D of the Insurance subsequent periods and service tax liability to be remitted to the Act. Act Only income and accounting income for a period that originate in policies.10% of total TP Premium of direct business as per period as 'Unexpired Risk Reserve' for subsequent risks. such share has been recorded by the Company up on the face of the Balance Sheet. IRDA/NL/CIR/MISC/051/03/2016 Service Tax collected is considered as a liability against which dismantling Indian Motor Third Party Declined Risk Pool Service Tax paid for eligible input services.960 Thousand under Motor TP obligation. to requirements of IRDAI circular. note 18. 1961. as prescribed. Forward’ and disclosed in Schedule 12 for adjustments in Every insurer. the Company re-assesses 31st December 2015 stating the details of premium ceded to the unrecognized deferred tax assets. Any business relating to Act only policies of one period and are capable of reversal in one or more Commercial Vehicles which does not fall within the subsequent periods. net of claims and expenses. forty five days from the end of the quarter. GIC has circulated the settlement statement up to At each Balance Sheet date. reinsurance accepted on account of the Terrorism 31st March 2016 the Company has accounted for business of Rs. of Act Only commercial vehicle third deferred tax assets can be realized. 2. Regulations. Pool has been recorded in accordance with the latest statement 11. during a financial year. 2. be borne by the Company. 1938. The Indian Motor Third Party Declined Risk Insurance of current year timing differences between taxable income and Pool (DR Pool).113 dated 2nd May 2001 SCHEDULE – 16 : Significant Accounting Policies and Notes to and forming st Part of the Financial Statements for the year ended 31 March 2016 Accordingly. has been carried forward to the subsequent accounting 0. For the period ended 52 . to the extent (IMTPDRP) for Commercial Vehicle (Act only Insurance).21 Income Tax ii) The Indian Motor Third Party Declined Risk Insurance Pool Tax expense comprises of current and deferred tax. The Company has recorded its share of premium become reasonably certain or virtually certain. If the Company has party insurance. are IRDAI issued a circular towards. ‘Obligation of insurer in respect carried forward under ‘Others – Unutilized Service Tax Carried of Motor Third Party Insurance Business. is adjusted and the net liability is remitted to the appropriate authority as stipulated. if any. shortfall of obligation and share of the Company in the DR unrecognized deferred tax assets to the extent that it has Pool premium. under the respective heads of income or which such deferred tax assets can be realized. is an arrangement accounting income and reversal of timing differences for earlier among all the existing General Insurers to share in the Stand years. 5% is to be Deferred tax assets are recognized and carried forward only to ceded to GIC under obligatory cession and residual 75% is to be the extent that there is a reasonable certainty that sufficient ceded to DR Pool.490. 2015’. every underwriting year on a clean cut basis by transferring the deferred tax assets are recognized only if there is virtual certainty risk at par to the members who have not fulfilled their supported by convincing evidence that such deferred tax assets mandatory obligation. shall underwrite such appropriate authority is disclosed under ‘Others-Service Tax minimum percentage of the 90% of the overall motor third party Payable’ in Schedule 13. if any.Bajaj Allianz General Insurance Company Limited IRDA Registration No. Unutilized credits.e.22 Service Tax IRDAI issued an order No. The break-up of deferred tax to 31st December 2015 and for the period from 1st January 2016 assets and deferred tax liabilities into major components of the to 31st March 2016 the losses from the pool of Rs. Every insurer shall submit the financial Revenue Account as expenses under a separate line item in returns to the IRDAI for every quarter of the financial year within Schedule 4 and Schedule 4(A). as the case may and claims as inward reinsurance business. expense as the case may be and included within the Motor Third Party sub-segment of the Miscellaneous Revenue Account. DR pool shall be extinguished at the end of unabsorbed depreciation or carry forward business losses. Deferred tax asset (net of the deferred tax liability) is disclosed Accordingly. specified risks is to be retained by the Company. received from GIC as on 31st December 2015. claimable. The Company has to underwrite a minimum future taxable income will be available against which such percentage.20 Contributions to Solatium Funds The entire amount of reinsurance accepted for the current year on this account. Deferred income tax reflects the impact 12/2011. 2. Current ('IMTPDRIP') income tax is measured at the amount expected to be paid to IRDAI has formed a Declined Risk Insurance Pool with effect the tax authorities in accordance with the provisions of the from 01st April 2012 vide order IRDA/NL/ORD/MPL/277/ Income Tax Act. It recognizes previously pool. Accordingly. up to the above The Company provides for contribution to Solatium fund at date. can be realized against sufficient future taxable profits. Service Tax paid for eligible input insurance business premium of the industry for the immediate services not recoverable by way of credits is recognized in the preceding financial year. outflow of resources will be required to settle the obligation. a flat IBNR of Rs 10. but 5.060 Thousand (Previous year disclosure is made. Rupees 9. The Chain Ladder Method has accordingly been applied to Motor.316 6. Contingent Liabilities not provided for in respect of claims against the Company not acknowledged as debts other than insurance matters – 7.000 Thousand and Rs 5. These constitute almost 98% weighted average number of equity shares which would have (Previous year 97. The demand notices A provision is recognized when an enterprise has a present are classified as disputed obligations only when the same are obligation as a result of a past event and it is probable that an confirmed by Appellate Tribunal. Capital Commitments probably will not. Claims other than those under policies 9.2016 SCHEDULE – 16 : Significant Accounting Policies and Notes to and forming st Part of the Financial Statements for the year ended 31 March 2016 2. Others Nil Nil 53 . Engineering. 16th Annual Report 2015 . Statutory demands/liabilities in dispute. after allowance for reinsurance recoveries.Nil). the Actuary has chosen to adopt the outstanding during the reporting year. Fire. Guarantees given by or on behalf Particulars For the year ended For the year ended of the Company Nil Nil 31st March 2016 31st March 2015 5. Where shareholders by weighted average number of equity shares sufficient data is available. no provision or assets amount to Rupees 222. Extent of premium income recognized based on varying risk 2. Claims settled and outstanding for more than six months ` in '000 Rupees . Contingent Assets are neither recognized nor disclosed in the 6. Marine Cargo. Partly paid up investments Nil Nil 8. Personal Number of equity shares used in computing diluted earnings Accident (excluding Pradhan Mantri Suraksha Bima Yojana – per share comprises the weighted average number of shares “PMSBY”).185 Thousand).128 7. PMSBY and Agriculture lines of computing diluted earnings per share only potential equity business the Expected Ultimate Loss Ratio method has been used shares that are dilutive are included. Computation of Managerial Remuneration: not acknowledged as debts Nil Nil ` in '000 4. For Liability. Health. These are reviewed at each Balance Sheet date and Rupees Nil (Previous year Rupees 112. to arrive at the estimate of IBNR reserve. 2016 2015 1. not provided for. Reinsurance obligations to the extent not provided for in accounts Nil Nil • Perquisites 1. In Premium. require an outflow of resources. No assets adjusted to reflect the current best estimates.762 38. A disclosure for a Contingent Liability is made when there is a possible obligation or a present obligation that may. The Appointed Actuary has certified to the Company that Financial Statements. Particulars 31st March 31st March No. Contingent Liabilities estimates based on the claim data.313 1. Workmen’s Compensation.23 Provisions.162 Nil (including contributions b) Service Tax Nil Nil to funds) 38.24 Earnings per Share determined using actuarial principles. All assets of the Company are free from any encumbrances other than investments under Section 7 of Insurance Act. In the determination. Provisions are not discounted to their present value and are determined based 4. Sr. (in respect of shares and securities) Nil Nil 3. Tapan Singhel • Salary. allowances and bonus a) Income Tax 65. When there is a possible obligation or a present obligation in respect of which Commitments made and outstanding for acquisition of fixed the likelihood of outflow of resources is remote. actuarial estimates for IBNR (including IBNER) reserves have been 2. Contingent Liabilities and Contingent Assets The Show Cause Notices issued by tax authorities have not been considered as obligations by the Company.6%) of the Company’s total Net Written been issued on the conversion of all dilutive potential shares.Nil (Previous year – Rupees Nil). Nil (Previous year – Rupees . Underwriting commitments outstanding pattern Rupees. the Actuarial Practice Standards issued by the Institute of Actuaries of The basic earnings per share is computed by dividing the net India with the concurrence -of the Authority and any directions profit in the Profit and Loss Account attributable to the equity issued by the Authority in this behalf have been followed.000 Thousand has been adopted. For Aviation and Marine Hull lines of business. NOTES TO ACCOUNTS Net IBNR reserves have been arrived at on the basis of actuarial 3. in respect of Mr. Travel and considered for deriving basic earnings per share and also Miscellaneous lines of business.149 Thousand). Chain Ladder Method. Credit. in respect of which a reliable estimate can be made. 1938 on best estimate required to settle the obligation at the Balance which are held in Government of India Bonds aggregating Sheet date. of the Company are subject to restructuring. 190 Environment Relief Fund from public liability policies.407 Thousand). Loss and Catastrophe Reinsurance).897 696.248 5. Nil (Previous (Accounting Standards) Rules.03 13. segment assets and liabilities have been identified determined actuarially on an overall Company basis annually to the extent possible in the statement annexed hereto.01 14.242 8.071 7.034 644. • The period of agreement is generally for three years and Particulars For the year ended For the year ended renewable thereafter at the option of the lessee.51.321.190 The Company has collected an amount of Rupees 6. The Weighted average number of Company has paid all the funds collected towards Environment equity shares (par value of Rupees 10 each) [C] 110. These lease 11.227.667 286. 2.739 557. The future minimum lease payments relating to non-cancellable leases are disclosed below: ` in ‘000.250 110.326 100 52. Percentage of Business Sector – Wise (Based agreements are generally mutually renewal / cancellable by the on Gross Written Premium Direct): lessor / lessee. The Company has provided Premium Deficiency Rs. except to the extent paid.700.13 and 21 respectively.767 Thousand) towards -ordinary items [B] Rupees 5. of No of % of No.408 .refer Schedule 16 note 2. 7.845 Rural 4. 2016 to United India Insurance Basic and diluted earnings per Company.28 Payable later than five years .738 1. Earnings per Share ('EPS') Risk Reinsured 20% 22% ` in ‘000. The Company’s primary reportable segments are business segments.51. share excluding extraordinary items [B/C] Rupees Rs.992. 15. The balance share [A/C] Rupees Rs. Segment revenue and results have been disclosed in the financial statements. 100 • Amount charged to Revenue Accounts in respect of all lease arrangements aggregates Rupees 199.505 1.464 7. The operating expenses. Count-numbers 100% 100% Particulars As at 31st March 2016 As at 31st March 2015 Profit after Tax 13.9. Nil) as per IRDAI regulatory guideline . Gross Written Premium (Excluding Excess of • There are no transactions in the nature of subleases.51.Bajaj Allianz General Insurance Company Limited IRDA Registration No.248 5.19 Rs. 1938.69 Payable later than one year but Social 16.623.701 0.895 . Due to inherent 54 .022. 31st March 2016 31st March 2015 % age of business written % age of business written Risk retained 80% 78% 17. accorded by a resolution of the Board of Directors and which has been approved by IRDAI as required under Section 34A of the Insurance Act.40 4.7.250 Relief Fund up to February 29th.124 Basic earnings after extra Thousand (Previous year .01 payable has been disclosed under the head current liabilities in Basic and diluted earnings per Schedule 13.644 Thousand (Previous 12. 2006. - Total 58. year – Rs.623.546 0. the implementing agency for the fund. which have been identified in accordance with the Regulations. Contribution to Environment Relief Fund Basic earnings before extra -ordinary items [A]Rupees 5.398.692 6.298.19 Rs.397 .312.03 not later than five years 11.92.473 8.113 dated 2nd May 2001 SCHEDULE – 16 : Significant Accounting Policies and Notes to and forming st Part of the Financial Statements for the year ended 31 March 2016 Expenses towards gratuity and compensated absence are complexities. There and accordingly have not been considered in the above are no reportable geographical segments since the Company information.262. Related party disclosures have been set out in a separate statement annexed to this schedule as per Accounting Standard 18 ‘Related Party Disclosures’ issued under Companies 10. Extent of Risk Written and Reinsured Based on year Rupees 172.642.190 .51.642.Rupees 6. income from investments and other income attributable to the business segments are allocated as mentioned in Schedule 16 Note numbers 2.227. provides services only to customers in the Indian Market or to Indian interests overseas and does not distinguish any reportable The managerial remuneration is in accordance with the approval regions within India.700. Count-numbers Business For the year ended For the year ended ` in '000 sector 31st March 2016 31st March 2015 Particulars As at 31st March 2016 As at 31st March 2015 No.357 - Urban 53.57 48.92. 16.12. The Company’s significant leasing arrangements include agreements for official and residential premises.347. of No of % of GDPI Policies Lives GDPI GDPI Policies Lives GDPI Payable not later than one year 5.846 . 707 154.404 ` in ‘000 Employees State Insurance Corporation 149 212 Particulars 31st March 2016 31st March 2015 Labour Welfare Fund 176 144 Investments with Insurer 100% 100% Total 42.569 101.855 Defined Benefit Obligation 198. (16.430 Benefits Paid (14.569 recognized in the Profit and Expected Return 10. arising due to timing differences ` in ‘000 have been recognized in the financial statements as under: st st ` in ‘000 Particulars 31 March 2016 31 March 2015 Deferred tax asset As at 31st March 2016 As at 31st March 2015 Opening Defined Benefit Obligation 154. The following table shows the amounts Discount Rate 7.5% thereafter & 7.254) ` in ‘000 Experience Adjustments on Particulars 31st March 2016 31st March 2015 Plan Liabilities 8.637 644 504 1.586 ii) Defined Benefit Plan (Gratuity) (v) The principal assumptions used in determining gratuity and compensated absences and leave entitlement benefit The Company has a defined gratuity plan payable to every obligations for the Company's plans are shown below: employee on separation from employment.776 2. (5.637 Closing Fair Value of Plan Assets 198.766 8.627 14.912) (vi) Experience Adjustments for the current and previous Net Actuarial Gain Recognized in the Year 20.290 117.062 18. such as supply and Current Service Cost 24.663 recognized in Opening Reserves .124 II.702 41.290) 55 .290 19. .518 Expected Return on Plan Assets (10.290 117.663 ` in ‘000 Actual Return on Plan Assets 11.548 Particulars 2016 2015 2014 2013 2012 Defined Benefit Obligation 198.569 84. take account of inflation.730 Deferred Tax expense/(income) Opening Fair Value of Plan Assets 154.419 34.821) Benefits Paid (14. considered in ` in ‘000 actuarial valuation.290 Experience Adjustments on Plan Assets 861 5.95% recognized in the Balance Sheet.5% 8.707) (154. Expected Rate of Return on Assets 8.707 154.491) Actuarial Gains 861 5. ` in ‘000 (iv) The major categories of plan assets as a percentage of the Particulars 31st March 2016 31st March 2015 fair value of total plan assets are as follows: Provident Fund 39.800 Compensated Absence 26.290 Total 810. 50.766) (8. (iii) Changes in the Fair Value of plan assets are as follows: Depreciation as per Section 32 ` in ‘000 of Income Tax Act.870 (i) Details of provision for gratuity Surplus / (deficit) .570 11.491) Provision for doubtful debts 3.601 38.2016 SCHEDULE – 16 : Significant Accounting Policies and Notes to and forming st Part of the Financial Statements for the year ended 31 March 2016 18.560 451.629) (12.530 541.000 Thousand to gratuity in 2016-17. seniority.930) (142.490 594. The Company ` in ‘000 makes the contribution to an approved gratuity fund which is Particulars 31st March 2016 31st March 2015 maintained and managed by Bajaj Allianz Life Insurance Company Limited.414 18.164) 9.969 84.707 154.201 13.410 2.419 34.707 154. Taxation (ii) Changes in the present value of the defined benefit obligation are as follows: The deferred tax assets and liabilities. Interest Cost 13. 1961 (176.5% thereafter Net employee benefit expense (recognized in Employee cost) The estimates of future salary increases. Revenue Account 11% for the first 2 years 10% for the first2 years Increase in Compensation Cost & 7.518 Reserve for Unexpired Risks 764.028 86.707 154. Balance Sheet Plan Assets 198.5% I.629) (12.257 four years are as follows: Net Benefit Expense 47.657 Fair Value of Plan Assets (198.570 11.590 Closing Defined Benefit Obligation 198.893 Solatium Fund 15.569 Timing difference on account of.159) Deferred Tax expense/(income) Contributions by Employer 47.826 Superannuation Scheme 2.830) (128. The Company has recognized the following amounts which are defined contribution plans in the revenue account.760) Particulars 31st March 2016 31st March 2015 Net deferred tax asset 633. .770 39.912 loss account (181.592 (12.260 Actuarial Gains/(Loss) on Obligation 21.616 18. Interest Cost on Defined Benefit Obligation 13.414 18.490 Deferred tax liability Timing difference on account of.059) (1. Particulars 31st March 2016 31st March 2015 promotion and other relevant factors.780 11.210 Current Service Cost 24. 16th Annual Report 2015 .992 3. Gratuity Benefit Plans: i) Defined Contribution Plan The Company expects to contribute Rs.800 demand in the employment market.290 117.290 117.7% 7. No Authority Non-compliance / Violation Penalty awarded Penalty paid Penalty Waived / Reduced/Stay Received 1 Insurance Regulatory & Penalty for non-compliance of certain provisions of Development Authority of India Insurance Act 1938 and Regulations / Guidelines issued by IRDA 1. income or staff cost as appropriate.037) (1.991 Thousand) which could be apportionable towards investments activity.994 Thousand) are included under “expenses other than those relating to insurance business” in the Profit and Loss Account.468 policyholders either as terms of conditions of the policy or as per law or as may be directed by the authority but not refunded so far (32.407) (57. until such date when the interest dues as above are actually paid to the small enterprise Nil Nil 23.375 8.443 5.293 4. Small and Medium Enterprises under the said Act as at March 31st. 3. Particulars 31st March 2016 31st March 2015 I) The principal amount remaining unpaid to any supplier as at the end of the year 7.803 1. . 56 . Operating Expenses related to insurance business in Schedule 4.193) (264) (-) (-) Cheques issued but not encashed by the .500 - In respect of the outstanding show cause notices. Age wise analysis of the amount due to Policy Holders / Insured is disclosed as below: ` in '000 Ageing 1 to 6 7 To 12 13 To 18 19 To 24 25 To 30 31 To 36 Beyond Months Months Months Months Months Months 36 Months Claims settled but not paid to the policyholders . includes indirect expenses of Rupees 21. - / insured due to any reasons except under litigation from the insured / policyholders (-) (-) (-) (-) (-) (-) (-) Sum due to the insured / policyholders on maturity or otherwise . 22.227 844 1. excess collection of the premium / tax which is refundable and cheques issued but not encashed by policy holders / Insured.500 1. Further.113 dated 2nd May 2001 SCHEDULE – 16 : Significant Accounting Policies and Notes to and forming st Part of the Financial Statements for the year ended 31 March 2016 20. .430) (1. . According to information available with the management. . 2006 (MSMED) Act. 21. No. Small and Medium Enterprises Development Act. IRDAI has vide circular no. in relation to payments made to corporate agents. Small and Medium Enterprises Development Act.319 Thousand) has been computed on the basis of number of documents.870 ii) Interest due on the above amount Nil Nil iii) The amount of interest paid by in terms of Section 16 of the Micro. 2016. Out of the said expenses amounting to Rupees 8. Expenses directly identifiable with investment activity amounting to Rupees 10.963 6. . The summary of the financial statements for the last 5 years and the ratios required to be furnished have been set out in the statement annexed hereto. .801 Thousand (previous year Rupees 9. .370) (7.821) (1. the Company has responded to the IRDAI and no further communication has been received from IRDAI.293) (1. . 2006 Nil Nil iv) Amounts of the payment made to the supplier beyond the appointed day during the year.551) (9. . Details of Penal actions taken by various Government Authorities as below: Sr. 24. .227 7. .663) (9.Bajaj Allianz General Insurance Company Limited IRDA Registration No. 2016 as follows: ` in '000 Sr. . the Company has amounts due to Micro. - Any excess collection of the premium / tax or any other charges which is refundable to the 2. Nil Nil v) Amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under Micro Small and Medium Enterprise Development Act. IRDA/F&I/CIR/CMP/174/11/2010 advised all insurers to disclose under Schedule 13 – Current Liabilities amount due to policyholders/ Insured on accounts of claims settled but not paid (except under litigation).344 Thousand (previous year Rupees 5.262 54.083) * Figures in brackets pertain to financial year ended March.140 policyholder/ insured ** (-) (8. 2006 Nil Nil vi) Amount of interest accrued and remaining unpaid at the end of the year Nil Nil vii) The amount of further interest remaining due and payable even in the succeeding years. on the basis of information received from the suppliers regarding their status under the Micro. ** Does not include cheques issued to policyholders and appearing in Bank reconciliation as on 31st March.309 Thousand (previous year Rupees 20. 2015. .022 6. During the financial year ended 31st March 2016. The Company does not expect the outcome of these proceedings to have a significant impact on its financial position. Panthaky Tapan Singhel Milind Choudhari Onkar Kothari Partner Partner Managing Director & Chief Financial Officer Company Secretary & Membership No. No. The Company has spent Rs.000 Reclassification of Security 2. 80.500 43. Particulars Reported in Previous Year figures Difference Reasons Previous Year reported in Current Year 1.500 (previous year: Rs. as per provisions of section 135 of Companies Act 2013.274 125. Based on such review. the Company was required to spend Rs. 8 Long Term Other than Approved. wherever applicable. in its financial statements. in pursuance of its Corporate Social Responsibility Policy.053 Thousand (Previous year – Rs. (Refer Note no.500) towards Corporate Social Responsibility activities during the year. 042423 Chief Executive Officer Compliance Officer DIN : 03428746 Pune Pune Pune 19th May 2016 19th May 2016 19th May 2016 57 . the current tax includes reversal of income tax provision of Rs. The details of amount spent during the year are as follows: ` in '000 Sr. The Company periodically reviews all its long term contracts to assess for any material foreseeable losses. 43.500 Total 119. Service Tax and Profession Tax. Previous year figures have been regrouped where possible and wherever necessary to make them comparable with those of the current year. Particulars 31st March 2016 31st March 2015 1) Construction / Acquisition of any Asset Nil Nil 2) On purposes other than (i) above 119.036 Thousand (previous year: Rs.168 Thousand) being 2% of average net profits made during the three immediately preceding financial years.2016 SCHEDULE – 16 : Significant Accounting Policies and Notes to and forming st Part of the Financial Statements for the year ended 31 March 2016 25. 16th Annual Report 2015 . 119. 305. 119.274 (375.000 375. The summary of other amounts of the previous year which have been regrouped is as follows: ` in '000 Sr.500 30. 26.Debentures/Bonds 500. 27. 193. LLP For Walker Chandiok & Co LLP Sanjiv Bajaj Nanoo Pamnani Sergio Balbinot Chartered Accountants Chartered Accountants Chairman Director Director Firm Registration Number Firm Registration Number DIN : 00014615 DIN : 00053673 DIN : 01629245 101248W/W-100022 001076N/N500013 Juzer Miyajiwala Khushroo B.500 43. 29. the Company is not required to transfer any amount into the Investor Education & Protection Fund.000) Reclassification of Security As per our report of even date attached For and on behalf of the Board of Directors For B S R & Co. 8 Long Term Other than Approved. 047483 Membership No. Sch. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions. the Company has made adequate provisions for these long term contracts in the books of account as required under any applicable law/accounting standard. wherever required and disclosed the contingent liabilities.Other Securities Nil 375.3 for details on Contingent Liabilities). The Company’s pending litigations comprise of claims against the Company and proceedings pending with various Tax Authorities including Income Tax. As at 31st March 2016 the Company did not have any outstanding derivative contracts. No.176 Thousand) for earlier years being difference between tax liability as per return of income and tax liability provided in books of account. During the year. For the year ended 31st March 2016. 28. 950.09% 9.906.714.289 492.347.696.938 36.086 1.722) (12. increase in URR and other outgoes 34.087.758.231) (292.084 Operating Profit/Loss 5.352.166 71 2.974) Claims Outstanding ( Net ) 1.642.505 35.725.687.335 25.418 29.013 36. ` in '000 Fire Marine Miscellaneous* Total Cargo Others Premium Received in Advance 15.153 8.192 379.018.813 89.789.006.939.372.553.753 7.770.350 Total Income 52. .496 26.905) (191.865 13.254.92% 9.88 86.236. .09 201.Notes to Accounts and forming part of the Financial Statements for the year ended 31st March 2016 (Refer Note no.623.201.524 4.283) (542.351) Profit after Tax 5.102. .614) (703.864 4.791 5.923.725.260.957.238.790 42.695 6.672 34.962.884 NON OPERATING RESULTS Total income under Shareholder's Account 2.659 23.912.505) (339) (1. . .190 4.273 1.681 7.889 131.10 26.103) Reserve for Unexpired Risk 1.999 Yield on Total Investments 9.320.260) (1.716.541) Solatium Fund .642.678 37.097) (34.273 1.425 6.629 45. .225.327.165 5.215.742 (944.955 12. - Dividend per share .98 Total Dividend .178 3.787 94.541 MISCELLANEOUS Policyholder's Account Not Applicable being General Insurance Company Total Funds Total Investments Yield on Investments Shareholder's Account Not Applicable being General Insurance Company Total Funds Total Investments Yield on Investments Paid up Equity Capital 1.819 40.080 32.499 45.884 764.866 41.870 (31.198) (20.072.248 5.779.802 1.435 3.102.766 108.273 Net Worth 27.520.261.77 11.273 1.295 Claims.838.987.143 Operating Expenses 11.45% Earning Per Share 51.068 747. . have been allocated amongst various segments to the extent possible.956.037.300.01 37.310 23.897.433.869.102.173) (22.22 Book value per Share 253.088.737.892 2.950. 45.840 16. .006.273 1.865.622 11.433) (2.080. However segment asset and liabilities.097 9. 20) Particulars 2016 2015 2014 2013 2012 OPERATING RESULTS Gross Written Premium 59.335.519.089.406 Commissions 939.99 113.532 1.312. - 58 .714 213.867) (28.968.349 Miscellaneous Income 154.102.007 991.407.439 1.011 2.488 53.986 1.90 150. given the nature of the business.59% 9.633.079 4.362.248 29.707 Income from Investments (net of losses) 6.223 21.892 Provision for Tax (2.467 53.031.113 dated 2nd May 2001 Annexure to Schedule 16 .Bajaj Allianz General Insurance Company Limited IRDA Registration No.254 Total Assets (Gross of current liabilities and provisions) 105.063 9.720.416 1. 14) st Segmental Break up of the Balance Sheet Item as at 31 March 2016 Segment revenues and segment results have been incorporated in the Financial Statements.539 77.969.972) (1.588 .588 105.429 894.146.093.827.265) (3.017.585.088 22.36% 9.097) st 31 March 2015 figures are in Brackets Summary of Financial Statements for the year ended 31st March 2016 (Refer Note no.19 51. (34.722.175. .264.587.606 65.723.588 45.149.936.119 27.975) (1.510.608.659 3.889 Net Premium Income (net of Reinsurance) 45.886 (1.102.965 2.870) (5.008 Profit before Tax 7. . 31% 96.55% Marine Hull 5.82% Health 14.00% 0.2016 Ratios for the year ended 31st March 2016 Sr.71% 2.99% 94.06% 8 Net Incurred Claims to Net Earned Premium 72.12% Health 93.65% 44.04% 7 Expenses of Management to Net Written Premium Ratio 31.51 1.28% 6.33% 2.93% 10.02% -29.68% 10 Technical Reserves to Net Premium Ratio 1. Particulars For the year ended For the year ended 31st March 2016 31st March 2015 1 Gross Direct Premium Growth Rate 11.90% 22.72% 4 Net Retention Ratio 77.48% -1365.32% -51.35% 33.03% Public/Product Liability 28.72% -1. No.60% 5 Net Commission Ratio 2.60% 3. 59 .51% 10.40% 33.62% Workmen's Compensation / Employers' Liability 94.34% 14.23 0.14% Workmen's Compensation / Employers' Liability 7.66% Public/Product Liability 7.71% 8.15 0.61% Fire -9.21 Marine 0.33% Engineering 18.86% Public/Product Liability -13.18 -0.23% Motor 3. - Ratios are computed in accordance with and as per definition given in the Master Circular on Preparation of Financial Statements dated 5th October 2012 and subsequent corrigendum thereon dated 3rd July 2013.70% Credit Insurance 53.35% Marine Hull -44.03 0.05% 1.55% Engineering 11.44% 93.63% Personal Accident 55.94% 8.45% 7.30% 8.02 0.25% Marine Hull 88.19 Miscellaneous -0.77% Others 0.02% 6 Expenses of Management to Gross Direct Premium Ratio 24.82 17 NPA Ratio .17% -10.63% Motor 93.02% 84.09 2.77% Aviation -12.53% Others -19.27% 16 Available Solvency Margin (ASM) to Required Solvency Margin (RSM) Ratio 2.99% 13 Liquid Assets to liabilities ratio 0.49% 75.80% Motor 12.92% 9 Combined Ratio 99.02 Fire 0.59% Credit Insurance -1296.69% 30.38% Aviation 6.72% Engineering -115.51% Marine Cargo 8.28% 61.09% Fire 10.84% -42.06% Credit Insurance 1.99% Others 35.12% 15.02 12 Operating Profit Ratio 13.84% 23.98% Marine Cargo 9.26% Personal Accident 12.95% 95.36 1.47% Fire 35.30% 71.17% -16.30 11 Underwriting Balance Ratio -0.24 14 Net Earning Ratio 12.52% 15.29% 2.39% -8.03% 15 Return on Net worth 20.52% 20.79% Aviation 86.09% 27.71% Personal Accident 79.55% -15.35 3 Growth Rate of Net Worth 25.48% -70.88% 12.88% 163.23% 25.83% Workmen's Compensation / Employers' Liability 15. 16th Annual Report 2015 .74% Health 7.97% 2 Gross Direct Premium to Net Worth Ratio 2.53% 32.27% Marine Cargo 67.85% 4. 042423 Chief Executive Officer Compliance Officer DIN : 03428746 Pune Pune Pune 19th May 2016 19th May 2016 19th May 2016 60 .987 9. Fixed Deposits placed during the year (1.788.342 Less: Fixed Deposits maturing after 3 months 2.179.869 3.720 12. Receipts from Co-Insurers (net of claims) 566.503 3. - 3. Proceeds from issuance of Share Capital / Application Money (including Share Premium and net of Share Issue Expenses) .000) 11 b. LLP For Walker Chandiok & Co LLP Sanjiv Bajaj Nanoo Pamnani Sergio Balbinot Chartered Accountants Chartered Accountants Chairman Director Director Firm Registration Number Firm Registration Number DIN : 00014615 DIN : 00053673 DIN : 01629245 101248W/W-100022 001076N/N500013 Juzer Miyajiwala Khushroo B.054) (927.606 2.734) (39.390.062 3.296. Net (Decrease) / Increase in Cash and Cash Equivalents (921. - 4.531.000 4. Purchase of Fixed Assets (including Capital Advances) (129. - 10.376. - 6. Income Taxes Paid (net) (2.835.612. - 5.288) (2. (Payments) / Receipts to / from Re-Insurers (net of commission and claims) (1.379) 7.Bajaj Allianz General Insurance Company Limited IRDA Registration No. Net Cash Flows from Investing Activities (5.062 F. Cash and Cash Equivalents at the end of the year 3.004.000) 5. - D.426) (9. Service Tax Paid (4. Cash Flows from Extraordinary Activities .694 2. Repayment of Borrowings .594) 11 a.887 2.993) 8 b.856.824.666. - 7.326.677.541.292 3. Purchase of Investment Property . Sale of Investments 63.465.535 B.337 36. Deposits placed during the year (39.000.333) (1.586) (3. Effect of Foreign Exchange Rates on Cash and Cash Equivalents.937.044 8 a.300.319 56.280 Cash and Cash Equivalents 3.684) 6. 2016 ` in '000 Particulars For the year ended For the year ended 31st March 2016 31st March 2015 A.088.243) (44.015. Payment of Commission and Brokerage (3.456 1. - 13.535.452. Cash Flows from Investing Activities 1.518.890) 3.382) 10.248 4.898) (30.188 5. Premium received from Policyholders (including advance receipts and service tax) 64.062 As per our report of even date attached For and on behalf of the Board of Directors For B S R & Co. Rent / Interest / Dividend Received 7.363.184) 11.280 2.909) 2.937.581.430) C. Investment in Money Market Instruments and Liquid Mutual Funds (net) (478. Payment of Other Operating Expenses (10.542.123 3. Repayments Received . 047483 Membership No.118 6.292 8. Expenses related to Investments (11.015.738) (211.770) 640. Cash and Cash Equivalents Balance as per Schedule 11 5. Miscellaneous Income 30.113 dated 2nd May 2001 Receipts and Payments for the year ended 31st March.411. Net Cash Flows from Operating Activities 4.457) 4. Cash Flows from Financing Activities 1. Interest and Dividends Paid .351 E.250.492. - 2.405) (10.043 16. Loans Disbursed .000) (1.179.115 496. Purchase of Investments (78.860.173 8.948) (2. Payment of Claims (net of salvage) (37.292 3.120. Cash and Cash Equivalents at the beginning of the year 3.315.694 2.372 3. Proceeds from borrowings .535 12. net 5. Net Cash Flows from Financing Activities .855 9. Cash Flows before Extraordinary Activities 4. Deposits recovered during the year 22.860. Proceeds from Sale of Fixed Assets 2.614. Cash Flows from Operating Activities 1. Fixed Deposits matured during the year 3.715. Panthaky Tapan Singhel Milind Choudhari Onkar Kothari Partner Partner Managing Director & Chief Financial Officer Company Secretary & Membership No.054) 9.937. 16th Annual Report 2015 .2016 Related Party Disclosures under AS 18 ( for the year ended 31 st March 2016) st Annexure to Schedule 16 Notes to Accounts and forming Part of Financial Statements for the year ended 31 March 2016 ` in '000 Sr. (31. 3. 465 - Investments Limited Unallocated Premium . 4. - Manpower supply charges Paid /Payable 574. . 1 .059 .720 .292 6 Bajaj Allianz Group Company Insurance Premium received 12.607 - Unallocated Premium .365 - Deposits for leased premises 1. 78 Manpower supply charges Paid /Payable 250.000) 250. (18.292 - Insurance Premium received 99. 4.000 (600.714 Balance receivable against Bank Guarantee .819 - Unallocated Premium .264 .099 - Distributors Limited Insurance Claims paid 1. (68.022) . 107 .716 Billable expenses recovered on behalf 5. 34. - Staffing Solutions Insurance Claims paid 4.956 .775 .465 .594 . 10.051 - Insurance Claims paid 114 .947 5.951 . 815.477 9. 49. - Payment against Gratuity Fund 46. Related party Relationship with for the carried to Balance for the carried to Balance the Company current year Sheet Payable/ Previous year Sheet Payable/ (Receivable) (Receivable) 2015-2016 2014-2015 1 Bajaj Finserv Limited Holding Company Contribution to Equity . Name of the Nature of Description of Transactions /Categories Transactions Outstanding Amt Transactions Outstanding Amt No.618 Premium Receivable as an Agent .834 (0) 16.473 2 Bajaj Finserv House Group Association Society Maintenance deposit . 19.047) Investment in Corporate Bonds (Book Value) 750.194 (4. 1 Insurance commission paid/payable 102.072 95. 5. 800.172 .876 59 Premium Receivable as an Agent . (18.642 . . 941 8 Bajaj Finance Group Company Insurance Premium received 5. 35.442 .386 Insurance commission paid/payable 186. 700 5 Bajaj Allianz Financial Group Company Insurance Premium received 533 . 230 - Unallocated Premium .966 8.185 - 9 Bajaj Allianz Group Company Expenditure incurred by BAGIC on Life Insurance behalf of BALIC 28.527 - Insurance Claims paid 33. 72. 78 - Unallocated Premium .293 Company Limited Expenditure incurred by BALIC on behalf of BAGIC 84. .350.682 . 1.000 .456 - Limited Insurance Claims paid 44.827 . 815.000) Interest received on investment 58. (700) 700 (700) Owners Association Society Share Certificate . 514 . 3.146 9.246 - 61 .179 . 1. 3.315 .755 . (1) Society maintenance charges Paid 15.187) 5.720) . 40.241 . .937 (7.296 28. 86.596 4 Bajaj Holdings and Group Company Insurance Premium received 642 .214 - Limited Insurance Claims paid 806 . 11 .465 . - 7 Bajaj Electricals Group Company Insurance Premium received 47.920 - Unallocated Premium . 33.784 . .872 . 45. 331 Insurance Premium paid 1.682 Rent paid lease premises 18. - Rent & Maintenance Charges Paid 10.894 65. - Billable expenses reimbursed on behalf 1. 1.329 7. (1) .811 1. 43 .007 .309 - Insurance Claims received . 5. 18. 153 .925 .720) Insurance Premium received 4.686 65. 3.286) .273 .250) Advance Rent Paid to BALIC 968 (968) .720 - Deposits for leased premises . 301 3 Bajaj Auto Limited Group Company Insurance Premium received 128. - Unallocated Premium .349 0 Insurance Premium received 230 . - Unallocated Premium .250 (5.000 (1. 66. 64.133 . 3.045 . 953 - Unallocated Premium . .720 - Insurance Claims paid 190. 123 83 Asia Pacific (Allianz Singapore) 17 Allianz Group Company Investment Management fees Paid / Payable 2. 39.915 - 19 Allianz Global Group Company Reinsurance premium paid/payable 6. 619 - Insurance Company 20 Allianz Global Group Company Reinsurance premium paid/payable 3. - Billable expenses reimbursed on behalf 1.591 Germany Receipt of award 1. Spain 21 Allianz Global Group Company Reinsurance premium paid/payable 206.243) .671 (1.226) .515 - Engineers director is having Insurance Claims paid 1.836 2. .487 . 1. 974 - Speciality SE.130 36.514 11.979 16.730 3.542 55 1.198) Insurance Commission on reinsurance premium 7.114 - Income form Risk Survey Fee Received .489 - Company Claims recovery on reinsurance 23. 384 (384) / Receivable 22 Allianz Global Group Company Reinsurance premium paid/payable 2.357 Risks US Commission on reinsurance premium 1. - Switzerland 62 . Italy Claims recovery on reinsurance 634 . Shareholder Contribution to Equity .441 . - Management Billable expenses recovered on behalf 57 .280 4. . 117 .716 - director is having Insurance Claims paid 69. Name of the Nature of Description of Transactions Outstanding Amt Transactions Outstanding Amt No. 92 12 Mukand Limited Enterprise where Insurance Premium received 38. 6 - Solutions Limited 11 Mukand Enterprise where Insurance Premium received 2. - 24 Allianz Global Group Company Reinsurance premium paid/payable (6. 10 .671 1.975 Corporate & Commission on reinsurance premium 29.512 .685 .889 (2.175 .620 . 3. . 9. 5. 34 - Unallocated Premium . Bajaj Allianz General Insurance Company Limited IRDA Registration No. 30.120) 341 - Billable expenses recovered on behalf 7. . 286. 3 Services Private Limited 15 Allianz SE.090 - Speciality SE.163 .095 .939 67.235 (5.487 - Speciality SE. 286.001 .150 709 Investment Management Singapore Pte 18 AGCS Marine Group Company Reinsurance premium paid/payable 49. .002 .073 - Limited significant influence Unallocated Premium . .398 Corporate & Commission on reinsurance premium 1.251 101 2.428 .760 . 1.235 Agency Limited director is having Insurance Premium received 156 . . (56) - Speciality SE. 114.022 3.637) 5. . Netherlands 23 Allianz Global Group Company Reinsurance premium paid/payable 3. . UK Claims recovery on reinsurance 23.317 . 63 - Information Unallocated Premium . 6.669 - significant influence Unallocated Premium . - 16 Allianz Insurance Group Company Billable expenses reimbursed on behalf 755 . (860) 201 Corporate & Commission on reinsurance premium 642 .978 Corporate & Commission on reinsurance premium (2.800 630 3.753 .591 . Claims recovery on reinsurance . 1.053 - Speciality SE.210 - Corporate & Commission on reinsurance premium 836 .476 20. 148 - significant influence Insurance Claims paid 96 .650 24.113 dated 2nd May 2001 Related Party Disclosures under AS 18 ( for the year ended 31 st March 2016) st Annexure to Schedule 16 Notes to Accounts and forming Part of Financial Statements for the year ended 31 March 2016 ` in '000 Sr. 92 13 Hind Musafir Enterprise where Travel Agency Services Paid / Payable 91. 2. 11 Other expenses Paid/Payable 181 22 654 (177) 14 Allianz Cornhill Group Company Insurance Premium received 501 . Related party Relationship with Transactions /Categories for the carried to Balance for the carried to Balance the Company current year Sheet Payable/ Previous year Sheet Payable/ (Receivable) (Receivable) 2015-2016 2014-2015 10 Bajaj Financial Group Company Insurance Premium received 7 . 2. Commission on reinsurance premium 467. Claims recovery on reinsurance 4 . 2. .Austria Claims recovery on reinsurance 2. SUFFOLK) 32 Allianz Global Group Company Reinsurance premium paid/payable 19.612 91. .554 .605.935 .859 - Transfer AG Commission on reinsurance premium 7.013.700 Versicherungs Commission on reinsurance premium 630 .788 .273 Corporate & Commission on reinsurance premium 2. 16th Annual Report 2015 .073 . 650 (427) Singapore .992 86.518 (5. - 63 . . Name of the Nature of Description of Transactions Outstanding Amt Transactions Outstanding Amt No.462 . 467 - Claims recovery on reinsurance (74) .107 .412) .348 15 292.737 - Munich 29 Allianz SE Group Company Reinsurance premium paid/payable 2. 391 - AG (ALLIANZ AGF MAT LTD .787 592. France Claims recovery on reinsurance 934. . (240) - (Formerly known Commission on reinsurance premium . .034 1.816 - Allianz Insurance Billable expenses recovered on behalf 23 . .539 (292.561 .480 - CAT XOL & Risk Xol Claim Recovered 182. (91) - Versicherungs Claims recovery on reinsurance .479 - 35 Allianz Global Group Company Reinsurance premium paid/payable 209.355 . (424) - Aviation Commission on reinsurance premium .418 . 4.2016 Related Party Disclosures under AS 18 ( for the year ended 31 st March 2016) st Annexure to Schedule 16 Notes to Accounts and forming Part of Financial Statements for the year ended 31 March 2016 ` in '000 Sr. Related party Relationship with Transactions /Categories for the carried to Balance for the carried to Balance the Company current year Sheet Payable/ Previous year Sheet Payable/ (Receivable) (Receivable) 2015-2016 2014-2015 25 Allianz Global Group Company Reinsurance premium paid/payable 10.408 . . - Denmark - Nordic Region 26 Allianz Global Group Company Billable expenses reimburse on behalf . 25. 118. Claims recovery on reinsurance 153. .737 Corporate & Commission on reinsurance premium 87.333 1. - Insurance Limited Commission on reinsurance premium (282) .618 6.698 - Claims recovery on reinsurance 1. Malaysia 27 Insurance Joint Group Company Reinsurance premium paid/payable .665 .371 - Speciality SE. 1. . 741 - Speciality SE. 820 - Speciality SE. . - Speciality SE.412 - Profit commission on reinsurance 52. (72) - Allianz Russia 28 Allianz Global Group Company Reinsurance premium paid/payable 526.776 124 Corporate & Commission on reinsurance premium 2.205.891 72. 2.733 - 34 Allianz Elementar Group Company Reinsurance premium paid/payable 3.130 (218) 3. 21.745 - branch Asia Pacific Claims recovery on reinsurance 4.160. 2.542 - Speciality SE. .521 231. 183. . 1.657 97. - CAT XOL &Risk XOL Premium Paid 136.949) 4. .238) Reinsurance.473) ( Priveously Known Commission on reinsurance premium Paid 27 . Claims recovery on reinsurance 6 .079.091 . .597 - 30 Allianz Hongkong Group Company Reinsurance premium paid/payable . - Company of Income form Risk Survey Fee Received/ 1. 1.672 .810 .093 - Singapore Reinsurance premium received/receivable 222 .808 Commission on reinsurance premium 275 .654 2.218 2. (131) - as Allianz China) 31 Allianz Marine and Group Company Reinsurance premium paid/payable . .078 (1.643 5.864 .240 Corporate & Commission on reinsurance premium 31. (221) - Stock Company Commission on reinsurance premium . - 37 Allianz Australia Group Company Reinsurance premium paid/payable (1. 784 - .040. 242.392 - 36 Allianz Risk Group Company Reinsurance premium paid/payable 331.PTE ) Receivable 33 Allianz Belgium Group Company Reinsurance premium paid/payable 3. 52 52 Corporate & Billable expenses recovered on behalf 18 .551.009 2.375 . 6. 1. 120. Ltd. - Management Asia Pacific China 52 Allianz Taiwan Life Group Company Billable expenses recovered on behalf 45 . Ltd. . 53 Euler Hermes Credit Group Company Billable expenses recovered on behalf 28 . . - Insurance Malaysia Berhad 51 Allianz SE Insurance Group Company Billable expenses recovered on behalf 28 . .201 - as Euler Hermes Billable expenses recovered on behalf 23. 7. 54 Allianz Managed Group Company SAS License Fee paid /payable 6. .260 .382 4.276 . .634 40.436 . - Assurance PCL.973 20.656 . . - 41 Allianz CP General Group Company Claims paid on reinsurance accepted 5. . . Thailand 46 Allianz Generales Group Company Billable expenses recovered on behalf 11 . - Insurance Co. Name of the Nature of Description of Transactions Outstanding Amt Transactions Outstanding Amt No. . 96. .720 30. 625 - Operations & Insurance Claims paid 71 . . - Du Laos 47 Allianz Global Group Company Billable expenses recovered on behalf 51 . .922) 24. - Utama Indonesia 44 Allianz Life Group Company Billable expenses recovered on behalf 23 .800 40. Commission on reinsurance premium . Korea 45 Allianz Ayudhya Group Company Billable expenses recovered on behalf 34 .499 - Services SE India Unallocated Premium . 1.927 Operations & Income from Software Consultancy . - Automotive Singapore 50 Allianz Life Group Company Billable expenses recovered on behalf 18 . 42.000 . Commission on reinsurance premium 22.433 38.033 . 10.770 - Singapore Branch Claims recovery on reinsurance 11.067 - E-learning services fee 3. . Related party Relationship with Transactions /Categories for the carried to Balance for the carried to Balance the Company current year Sheet Payable/ Previous year Sheet Payable/ (Receivable) (Receivable) 2015-2016 2014-2015 38 Euler Hermes Group Company Reinsurance premium paid/payable 77.616 (9.745 1. Bajaj Allianz General Insurance Company Limited IRDA Registration No.V. . - Transfer N. .791 (8.420 Deutschland Commission on reinsurance premium 15. .813 1. 16. 532 - 55 Allianz Managed Group Company Insurance Premium received 619 . - 40 Allianz Risk Group Company Reinsurance premium paid/payable 6.950 Europe. 692 . . . - Underwriters Hong Kong Ltd.966 . .894 - [Formerly known Claims recovery on reinsurance 100. - Assistance Australia 48 Allianz Global Group Company Billable expenses recovered on behalf 28 .525) Cr Insurance (S) Ltd. - Assistance China 49 Allianz Global Group Company Billable expenses recovered on behalf 28 . . .068 . 413 - Services SE received /receivable Opus License & Maintenance fees paid 9. - Billable expenses recovered on behalf .604 92. . - Public Limited received /receivable 42 PT Asuransi Allianz Group Company Claims paid on reinsurance accepted . 603 64 . - 43 PT Asuransi Allianz Group Company Billable expenses recovered on behalf 28 .670 .113 dated 2nd May 2001 Related Party Disclosures under AS 18 ( for the year ended 31 st March 2016) st Annexure to Schedule 16 Notes to Accounts and forming Part of Financial Statements for the year ended 31 March 2016 ` in '000 Sr. - Insurance Co. - Life Indonesia Billable expenses recovered on behalf 28 .] 39 Euler Hermes Group Company Reinsurance premium paid/payable 126.451 - Insurance Company Income from Software Consultancy 9. 313 .434 - Limited Premium Receivable as an Agent .858 .385 459 Unallocated Premium . Name of the Nature of Description of Transactions Outstanding Amt Transactions Outstanding Amt No.316 - Personnel Perquisites 1.286 .211 1.308 12. 22. 28 Insurance Premium received 35 . 691 789 - Lanka Limited Commission on reinsurance premium Paid .886 .690 - Limited Other expenses Paid/Payable 19.673 - (India) Private Claim assistance fee paid 25.565 .542 3.269 58 Euler Hermes Group Company Credit risk assessment fees paid 21. (159) Insurance commission paid/payable 9.918 - (India) Private Claims assistance fee paid 49. .2016 Related Party Disclosures under AS 18 ( for the year ended 31 st March 2016) st Annexure to Schedule 16 Notes to Accounts and forming Part of Financial Statements for the year ended 31 March 2016 ` in '000 Sr. .567 430 5. 16th Annual Report 2015 . . 2. 32 24 GMBH 61 Tapan Singhel Key Management Remuneration 38. 173.Reinsurance balances are net of Commission and claims wherever applicable. 11 - Billable expenses recovered on behalf 731 (836) 1.922 - 57 AGA Services Group Company Insurance Claims paid 134. 11. 38.Above amounts are excluding Service Tax. 460 . 65 . 62.128 - Notes: 1.762 . 158 - Claims paid on reinsurance accepted 2.119 .887 - Services India Private Limited 59 Allianz Insurance Group Company Reinsurance premium received/receivable .943 . Related party Relationship with Transactions /Categories for the carried to Balance for the carried to Balance the Company current year Sheet Payable/ Previous year Sheet Payable/ (Receivable) (Receivable) 2015-2016 2014-2015 56 AGA Assistance Group Company Insurance Claims paid 11. 18. 7 . - 60 AZT Automotive Group Company Billable expenses reimburse on behalf . 1. Two Wheeler Package Policy and Commercial Vehicle Package Policy • Motor Vehicle Warranty Policy Health Insurance • Health Care Supreme • Surgical Protection Plan • Comprehensive Care Plan • Health Guard • Global Personal Guard Policy (Individual) • Extra Care • Silver Health • Hospital Cash Daily Allowance • Sankat Mochan • Tax Gain • Star Package • Premium Personal Guard • Women Specific Critical Illness Plan • Personal Accident Insurance Policy • Critical Illness Insurance • Bajaj Allianz Janata Personal Accident Policy. Electronic Equipment.Individual • Loan Care • Pradhan Mantri Suraksha Bima Yojana Travel Insurance • Travel Prime Policy • Travel Prime Holiday Policy • Travel Assist Card • E-Travel Value Policy • Travel Companion • Pravasi Bharatiya Bima Yojana Asset Insurance • My Home All Risk Policy • Householders Insurance Policy • Jeweller’s Comprehensive Protection Policy • Commercial Package Policy • Office Package Insurance • Shopkeeper’s Policy • Motor Dealer’s Package Insurance Policy • Easy Householder’s Package Insurance Policy • Plate Glass Insurance Policy • Kitchen Suraksha Insurance Plan Corporate Products Fire & Engineering • Standard Fire and Special Perils Policy • Consequential Loss (Fire) Insurance Policy • Industrial All Risk • Engineering-Projects (includes EAR. Deterioration of Stocks) Speciality Lines • Marine Cargo • Marine Hull • Aviation • Trade Credit Insurance World Policy • Extended Warranty • Event Insurance • Education Package Policy • Entertainment Package Policy Liability Insurance • Bajaj Allianz Commercial Crime Insurance Policy • Bajaj Allianz Cyber Protect Digital Business and Data Protection Insurance (Premium and Standard) • Composite Public and Product Liability • Public Liability/Public Liability Act • Commercial General Liability • Clinical Trial Liability Policy • Comprehensive General Liability Insurance • Directors & Officers Liability • Public Offering of Securities Insurance • Professional indemnity • Bajaj Allianz Professional Protect Insurance Policy Group Health Insurance • Global Personal Guard Policy (Group) • Group Hospital Cash Policy • Group Personal Accident • Mediclaim Insurance •Bajaj Allianz Janata Personal Accident. CAR) • Engineering-Operational (includes Contractor’s Plant and Machinery.113 dated 2nd May 2001 A Range of Corporate and Retail Products Personal Products Motor • Private Car Package Policy • Long Term Two Wheeler Package Policy • Two Wheeler Package Policy • Commercial Vehicle Package Policy • Add on Covers for Private Car Package Policy. Civil Engineering Completed Risk Insurance. Boiler and Pressure Plant Insurance.Group Rural Insurance • Bajaj Allianz Weather Protect Insurance Policy • Bajaj Allianz Crop Insurance Policy • Farmers Package • Cattle Insurance and Livestock Insurance Miscellaneous Insurance •Money Insurance Policy • Fidelity Guarantee • Burglary Insurance Policy • Workmen’s Compensation • Bajaj Allianz Poultry Insurance Policy 66 .Bajaj Allianz General Insurance Company Limited IRDA Registration No. Machinery Breakdown. A.Vijay Kumar Chief Mentor Motor “ Ever evolving Claims & Underwriting process and Risk Selection will go a long way in ensuring profitability.T.which has made us the industry leader !” . than it has in the last 15.” .” .Manohar U Bhat Chief Business Head Motor 67 .” . We need not be Big but need to be Fast to be relevant in this competitive era.Milind Choudhari Chief Financial Officer “Our underwriting discipline is helping us deliver sustainable growth with profitability over the years.Sasikumar Adidamu Chief Technical Officer . 16th Annual Report 2015 .Zones “This is fantastic time to be completing 15 years because insurance is going to change more in the next 15 years. our partners for their unstinted support and our wonderful colleagues for their dedication .Channels “2015-16 challenged us on many counts. Relentless focus on customer centricity.” .Anamika Roy Rashtrawar Senior President .Non Motor “The world around us is very dynamic.2016 Top Management “We thank our customers for their patronage. Ramalingam Senior President .” . team member productivity and improving profitability worked. com | customercare@bajajallianz. Pune .co.113. No. Plaza.E.in CIN : U66010PN2000PLC015329 BJAZ-O-0970/30-Jun-16 .411 006. dated 2nd May 2001 Tel: (020) 6602 6666. Relationship Beyond Insurance Bajaj Allianz General Insurance Company Limited G. Yerawada. Airport Road. | IRDA Regn. | Fax: (020) 6602 6667 www.bajajallianz.