20th ANNUAL REPORT 2019-20: Bajaj Allianz General Insurance Company Limited

BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LIMITED
20th ANNUAL REPORT 2019-20

CONTENTS
Corporate Information ...........................................................................................02
The Torchbearers ....................................................................................................05
MD & CEO’s Message .............................................................................................06
Management Discussion and Analysis ................................................................10
Directors’ Report for the financial year ended 31 March 2020 .........................32
Annexures to the Directors’ Report for the year ended 31 March 2020 .........44
Management Report for the financial year ended 31 March 2020 .................72
Independent Auditors’ Report ..............................................................................88
Financial Statements for the financial year ended 31 March 2020 .................98
20th Annual Report 2019-20 1

Corporate
Information
Board of Directors Audit Committee
Sanjiv Bajaj Lila Poonawalla
Chairman Chairperson
Solmaz Altin Ritu Arora
(up to 8 October 2019) Sanjay Asher
Ritu Arora (up to 5 March 2020)
Sanjay Asher Sanjiv Bajaj
(up to 5 March 2020) Ranjit Gupta
Niraj Bajaj Suraj Mehta
Rahul Bajaj Nanoo Pamnani
(up to 31 March 2020) (Deceased on 22 February 2020)
Sergio Balbinot Anami Roy
Dipak Poddar (from 13 March 2020)
(up to 31 March 2020) Shashi Kant Sharma
(from 13 March 2020)
Meleveetil Damodaran
(from 16 October 2019)
Investment Committee
Ranjit Gupta
Sanjiv Bajaj
Suraj Mehta
Chairman
Nanoo Pamnani
Ritu Arora
(Deceased on 22 February 2020)
Ranjit Gupta
Lila Poonawalla
Tapan Singhel
Anami Roy
(from 13 March 2020) Milind Choudhari
(up to 30 April 2020)
Shashi Kant Sharma
Amit Joshi
Rajeev Kumar
S Sreenivasan
(from 1 April 2020) Gaurav Malhotra
T S Vijayan Ramandeep Singh Sahni

(from 1 April 2020) (From 1 May 2020)
Avais Karmali
Alternate Director for Sergio Balbinot
Tapan Singhel
Managing Director and Chief Executive Officer
2 Bajaj allianz general insurance company Limited

Corporate Social Responsibility Risk Management Committee
Committee
Sanjiv Bajaj
Sanjiv Bajaj Chairman
Chairman Ritu Arora
Ritu Arora Ranjit Gupta
Ranjit Gupta Tapan Singhel
Nanoo Pamnani
(Deceased on 22 February 2020) Chief Financial Officer
Anami Roy
Milind Choudhari
(up to 30 April 2020)
Tapan Singhel
Ramandeep Singh Sahni
(from 1 May 2020)
Nomination and Remuneration
Committee Company Secretary & Compliance Officer
Lila Poonawalla Onkar Kothari
Chairperson
(Designated as Chairperson from 13 March 2020) Joint Statutory Auditors
Nanoo Pamnani
S R Batliboi & Co. LLP
Chairman
Chartered Accountants
(Deceased on 22 February 2020)
BSR & Co LLP
Ritu Arora
Chartered Accountants
Sanjay Asher
(up to 5 March 2020)
Secretarial Auditor
Sanjiv Bajaj
Shyamprasad D Limaye
Ranjit Gupta Practising Company Secretary
Suraj Mehta
(from 13 March 2020) Registered Office & Head Office
Anami Roy
Bajaj Allianz House, Airport Road,
Yerawada, Pune 411006. IRDA Reg No.: 113.
Policyholders’ Protection Committee www.bajajallianz.com
Sanjiv Bajaj CIN: U66010PN2000PLC015329

Chairman
Ritu Arora
Ranjit Gupta
Tapan Singhel

Sanjiv Bajaj
Chairman

Ramandeep Singh Sahni Sasikumar Adidamu T A Ramalingam Ashish Sapra
Chief Financial Officer Chief Distribution Officer Chief Technical Officer Chief Distribution Officer
- Institutional Sales – Retail Sales
K S V V S Murthy Naidu Aditya Sharma Sourabh Chatterjee Aashish Sethi

Country Head - Products Head - Motor Business Head - IT, Websales, Travel Head - Bancassurance
(Private Banks & NBFCs)
K V Dipu Vikramjeet Singh Alpana Singh Ashish Agrawal

Head - Operations & President and Chief Head - Bancassurance Head Agri. Business & CSC
Customer Service Human Resources Officer - PSUs, RRBs & Co- Banks
Gurneesh Singh Khurana Sriram Srinivasan Iyer Chetan Prakash Amarnath Saxena
Head - Motor LOB and National Head - Health Insurance Country Head - Agency National Head - Corporate Business
New OEM acquisition
The Torchbearers
Amit Joshi
Chief Investment Officer

Tapan Singhel

MD & CEO’s Message
Dear Friends
The last financial year has been quite challenging for India with us witnessing economic headwinds and muted
growth across the sectors, subsequently having a direct impact on the insurance industry as well. The entire
economy was in a strong hope of recovery in the last quarter, but the coronavirus outbreak presented fresh
challenges, causing a disruptive impact on all businesses. Despite these unfavourable circumstances, at Bajaj
Allianz General Insurance, our prudent underwriting policies, customer-centric approach and our digital
readiness helped us register a successful year wherein we grew above industry.
Throughout the year, we were committed to work towards our aim of making general insurance a pull rather
than a push product. Introduction of innovative products and services thus acted as a key differentiator for us in
FY2020. With the launch of ‘Health Infinity’, we are the only ones in the Indian industry who offer unlimited
sum insured to customers for their health insurance policies. We launched ‘Farmitra’ mobile app, a one stop
shop that provides insurance solutions along with a range of other information and advisories that cater to the
day to day activities of one of our largest customer base – our farmers. We enhanced our operational
efficiencies by launching ‘Saarthi’ mobile app for agents on-boarding, issued more than 30,000 policies through
‘Raftar’ that leverages Robotic Process Automation (RPA) and with ‘Maximus’ we embarked on the journey of
core transformation and in Phase-I we successfully moved the Travel LOB to this new policy administration
system. We rolled out ‘BAGICARE – CRM’, which helps in enhancing customer experience through quick query
resolution while also improving the quality of sales by providing all relevant data about the customer in one go.
During this period, we also forged new partnerships with established players like Can Fin Homes Ltd., new-age
players like PhonePe and GOQii, and motor tie-ups with MG Motors, KIA Motors, JAWA Motorcycles amongst
others, allowing us to be present across various platforms and catering to specific needs of our customers.
Giving a boost to our innovative ideas, IRDAI under its Regulatory Sandbox framework approved our four
proposals, namely ‘Co-pay model’ under health insurance, ‘Pay as you consume’ and ‘V-Pay’ under motor
insurance, and ‘Total Business Protection’ under commercial property insurance. These approvals will enable us
to test the feasibility of our ideas thus helping us to embark on the journey of transformation in the way
insurance is perceived today in our country.
Our efforts paid off with customers appreciating our products & services, directly reflecting in our growth which
stood at a significant 15.6%, while the sector grew at 11.7%. Our intent to simplify insurance solutions for our
customers and our prudent underwriting practices played a crucial role in maintaining our brand stance of being
one of the best companies in the Indian General Insurance industry. Some of our key performance indicators
are highlighted below:
• The Gross Written Premium Grew to 12,833 crore, which is a growth of 15.6%
• The company continues to be one of the most profitable insurers in the industry, with a Combined Ratio of
100.8% and Profit Before Tax of 1,376 crore, which is a growth of 19.5%
• Over the year, we issued over 26 million policies and settled close to 6 million claims
• The company maintained a credit rating of iAAA awarded by ICRA for the 13th year in a row, signifying our
highest claims paying ability
• We received an ISO 9001:2015 certification for operations
Alongside the performance metrics, our customer centric initiatives and best practices were recognized across various
platforms, not just within India, but on a global scale. A few major recognitions we received during the year:
• We won the coveted Porter Prize award under the category of Creating Distinct Value from a pool of 120
Indian companies from across the sectors
• IDC Financial Insights recognized us as one of the 20 Best Insurers across Asia/Pacific
• We were recognized as Prompt General Insurance Company for our claim settlement initiatives and efforts
at the 6th ET Insurance Summit & Awards 2019

MD & CEO’s Message
• We were honoured as a Gold Winner for Non-Life Insurance Provider of the Year at the prestigious Outlook
Money Awards 2020
• We won the Celent Model Insurer award automated Talent Acquisition Portal – Tal.Port for best practices of
technology usage in different areas critical to success in insurance
• We won the prestigious Asia Insurance Technology Awards 2019 for our ‘Digitization of Pre-Insurance
Medical Check-up Process’ under the Operational Excellence category
• We won Domestic General Insurer of Year – India award and Claims Initiative of the Year – India Award for
Motor OTS at the Insurance Asia Awards 2019
• We won the Best Travel Insurance award at the prestigious Outlook Traveler Awards 2020
• Business Today - Money Today Financial Services awards recognized us as the Best Motor Insurance
Provider of the Year
• We won the Company of the year – General Insurance category, Customer Service Provider of the Year, and
Best Cyber Team of the Year award at the 4th Annual Insurance Summit & Awards
Amidst these trials and triumphs, the COVID-19 lockdown knocked our doors towards mid-March 2020. I believe
that it’s always during such times, that a true value of your sustainability and preparedness is gauged. We
started testing efficiencies 2-weeks before the lockdown was officially announced, this foresight helped us
understand where we stand and how we can improve in terms of a complete work from home scenario. This
was also to ensure the safety of our biggest asset - our employees, further extended to their families through
dedicated COVID-19 related help-lines and reach-out programs for lockdown induced anxiety and stress.
Subsequently, all our investment into enhancing our digital capabilities built over the past few years, helped us
move from ‘crises’ to ‘business as usual’ in just a matter of couple of days. Right from issuing policies to
renewing them and to settling claims, we ensured that we were able to serve our customers digitally and in a
seamless manner. In order to create awareness about Covid-19 amongst customers and steps that they need to
take to safeguard themselves, we launched unique features like Social Trackback, Doctor on Chat, Self Insta
Check on our customer facing mobile app ‘Caringly yours’.
As we enter into the new financial year, which has transformed drastically due to this lockdown, new
opportunities await us. Although there have been some challenges in premium collections, we see increase in
awareness about insurance as a social security tool, which in turn will contribute towards increase in
penetration of insurance. This lockdown will not only change our operating models and how we underwrite
risks, but will also help us introduce new-age products & services considering the changing risk scenarios. There
will certainly be some challenges as business won’t bounce back to normal in an instant, but I’m sure that
gradually we will see the demand picking up as soon as we see reviving signs in the economy. All through this,
we remain committed towards being there for our customers and addressing their worries in their times of
need by offering them best in class insurance solutions. While our grievance ratio stood at 0.006% which is
amongst the Industry’s lowest, our Net Promoter Score was amongst the highest in the industry, i.e. 52% and
51%, for Motor and Health respectively. During the lockdown phase between 19th March to 31st March 2020,
we issued 569,461 policies and settled 271,772 claims along with maintaining an all-time low grievance ratio,
albeit amongst the lowest in the insurance industry. This further boosts our confidence in our ability to serve
our customers in the direst circumstances even without the physical presence of our employees/intermediaries
in any of our offices.
I believe, every dark cloud has a silver lining, and during these unprecedented times where we battle a
pandemic globally, we would extend our gratitude to all our customers, employees, partners, regulator and
each and every stakeholder for their continued support and trust in our brand. We look forward to serving and
working closely with all of you throughout, and in a renewed world post the COVID-19 phase where we
continue to be your preferred choice of risk management experts.
Wishing all of you sound physical and financial health.

Caringly yours,
Tapan Singhel

Directors’ Report for the financial year ended 31 March 2020

Management Discussion and Analysis
Management
discussion and
analysis

A. Macroeconomic overview
The economy of India is characterised as a developing market economy. It is the world’s fifth-largest economy
by nominal GDP and the third-largest by purchasing power parity (PPP).
Even without the terrible effects of the COVID-19 pandemic, India’s GDP growth had shown clear signs of
slowing down. It was 5.9% in Q4 FY2019; then fell to 5.6% in Q1 FY2020; then yet again to 5.1% in Q2 FY2020;
followed by 4.7% growth in Q3 FY2020. At the time of writing this Management Discussion and Analysis, we do
not have the official data for GDP growth in the fourth quarter of FY2020. However, we do know that the last
eight days of March 2020 were under a full national lockdown and, therefore, would have posted close to zero
output and value added. Hence, there is no reason to believe that there was a bump up in the growth rate in
Q4 FY2020. If anything, it may have been lower.
Before the COVID-19 pandemic and lockdown, both the RBI and the Central Statistical Office (CSO) of the
Government of India had revised the GDP growth rate downwards. The RBI changed its full year GDP growth
estimate from an initial 7.2% to 5% in February 2020, and ascribed the tapering of growth to a tight credit
market impacting fresh investments, weak capital expenditure and a slowdown in manufacturing. In a similar
vein, the second advance estimates of national income for FY2020 released by the CSO on 28 February 2020
was substantially lower: GDP growth for FY2020 was pegged at 5% compared to 6.1% in FY2019; and growth in
gross value added was estimated at 4.9% in FY2020 versus 6% in FY2019.
If anything, the effects of the lockdown on the last eight days of FY2020, may possibly bring down the growth
rate a bit further. And we should be expecting real GDP growth for FY2020 to be somewhere between 4.9%
and 5%.
Post Covid-19 pandemic and Lockdowns: The relatively slow GDP growth of around 5% in FY2020 now
sounds like a miracle after being engulfed in the COVID-19 pandemic. On 24 March 2020, India went on to
initiate the largest nation-wide lockdown in the world involving 1.3 billion people. The full lockdown lasted up
to 3 May 2020. Thereafter, varying forms of hard lockdowns have continued in states that have had large
number of COVID-19 cases — be these across the states, or in what are called the ‘red’ districts or across
containment zones in various cities.
The 40-days continuous lockdown across India has probably played a significant role in limiting the number of
COVID-19 infections as of 30 April 2020, India has reported 33,304 confirmed infections. While this may be an
underestimate on account of the lack of sufficient testing, it is still true that, for its huge population, India has
thankfully reported relatively few infections. Having said so, nobody really knows whether the infection rate
will spike or not; if it does, at what rate; and when might we as a nation be out of this scourge.
What we do know with some certainty is that the economy will take a massive hit in FY2021. Estimates of
economists who are recognised for their soundness and care with which they do empirical work suggest that
India’s real GDP will fall from around 5% in FY2020 to around (-)0.5% in FY2021. If it were so, this will be the
deepest contraction that India has seen since the downturn that occurred in 1979-80, when real GDP growth
plummeted from 5.7% in the previous year to (-)5.2%. According to these economists, Q1 FY2021 will see a
wasted first quarter (April-June 2020), a tortuously limping second quarter (July-September), followed by some
recovery in the latter half of the fiscal year.
Insurance industry overview

The insurance industry of India consists of 58 insurance companies of which 24 are in life insurance business
and 34 are non-life insurers. Government’s policy of insuring the uninsured has been pushing insurance
penetration in the country and proliferation of insurance schemes.
Gross Direct Premium (GDPI) underwritten in India by private and public insurers general insurers grew at 9.5%
in FY2020 and reached Rs. 164,218 crore. Including standalone Health Companies and Specialised Companies
the industry grew 11.7% and reached Rs. 189,302 crore. Overall non-life insurance penetration (premium as %
of GDP) in India was at 0.97% in FY2018. (Source: General Insurance Council, IRDAI)

i. Premium growth and relative performance of insurers
Gross Domestic Premium Income (GDPI) growth (in %)
100
GDPI Growth Trend FY2016 to FY2020
80
72.5%
60
41.1% 41.9%
40 41.0% 36.6%
35.5% 30.2%
33.0% 24.3%
17.6% 21.6% 27.4%
20
13.6% 12.9% 26.3% 17.5% 12.5% 12.2%
12.6% 11.7%
12.0% 8.8% 1.3% 6.4%
0
-10.1%
FY2016 FY2017 FY2018 FY2019 FY2020
Private PSU Standalone Specialized Total
Source: IRDAI and General Insurance Council statistics
Over the period of FY2016 to FY2020, on GDPI:
• The industry registered a growth of 18.4% (CAGR)
• Private insurers registered a growth of 23.1% (CAGR)
• Public players registered a growth of 11.2% (CAGR).
Market share based on GDPI (in %)
Market Share Trend FY2016 To FY2020
5.0% 6.5% 6.0% 4.8% 5.6%

4.3% 4.6% 5.5% 6.7% 7.6%
49.5% 47.0% 45.0% 40.5% 38.6%
41.2% 42.0% 43.4% 48.0% 48.2%
FY2016 FY2017 FY2018 FY2019 FY2020
Private PSU Standalone Specialized
• Over the period of FY2016 to FY2020, the market share of private players increased from 41.2% to
48.2% and corresponding decrease observed in PSU players from 49.5% to 38.6%

ii. Shift in business mix
Line of business wise mix
Line of business wise mix trend FY2016 to FY2020
7.7% 7.3% 6.5% 7.1% 6.6% 6.6% 6.6% 7.0% 6.1% 5.7%
0.0% 10.8%
4.5% 6.8% 8.2% 19.3% 7.3%
18.4% 16.3%
13.4% 18.2%
32.6%
11.4% 32.0% 13.7% 34.3% 14.4% 33.7%
31.8%
12.6%
56.9% 49.3%
39.4%
41.5% 48.4% 40.7% 47.0% 48.0% 34.8%
38.3%
36% 8.4%
36% 36% 36%
7.8% 6.2% 6.4% 5.7% 5.4% 5.5% 5.4% 5.4%
5.1%
9.7% 10.2% 8.3% 8.4% 8.6% 7.7% 7.9% 7.7% 9.8% 9.6%
Private PSU Private PSU Private PSU Private PSU Private PSU
FY2016 FY2017 FY2018 FY2019 FY2020
Fire Marine, Engg, Liability Motor Health Crop All Other Misc
Based on GDPI of private and public general insurers excluding monoline/specialised insurers.
Private players
As seen above, there has been a substantial reduction in business mix of motor from 56.9% in FY2016 to
48.0% in FY2020 backed by increase in mix of crop insurance from 4.5% in FY2016 to 16.3% in FY2020
PSU players
As seen above, there has been a substantial reduction in business mix of motor from 41.5% in FY2016 to
34.8% in FY2020 backed by increase in mix of crop insurance from 0.01% in FY2016 to 10.8% in FY2020
iii. Distribution mix
GDPI distribution channel mix

Channel Mix Trend FY2016 to 9MFY2020
26% 32% 31% 33%

41%
26% 26% 26%

28%
26%
5%
6% 7%
7% 6%
6% 6% 4%
7%
6%
36% 30% 30% 26%
23%
FY2016 FY2017 FY2018 FY2019 9M FY2020
Individual agents Corporate Agents-Banks Corporate Agents-Others Brokers Direct Business
Based on GDPI for private and public general insurers excluding monoline/specialised insurers.
Source: Public disclosures
As can be seen above, substantial shift observed in business mix of direct business from 26% in FY2016 to
41.0% in 9MFY2020. Agency mix is down from 36% in FY2016 to 23% in 9MFY2020.

iv. Regulatory changes and implications thereof
Some of the key regulatory initiatives taken by IRDAI during the year are summarised below:
Information to the Insurance policyholder / claimants about various insurance policy services:
Through these Guidelines, timely intimation to policyholders / claimants about various stages of policy
servicing through SMS and emails has been mandated.
Preparation of Solvency Certificate:
Through this circular, depreciation of IT assets / software, consideration of Intellectual Property Rights ,
hypothecated assets, etc. have been clarified and timelines for submission of solvency certificate on
quarterly basis have been set out.
Premium rates for Motor TP Insurance for the FY2020:
Through this circular, Motor TP rates for the FY2020 were prescribed with effect from 16 June 2019, along
with Motor TP rates for long term policies.
Standalone Motor Own Damage Cover:
Through this circular, annual motor standalone OD insurance policies were allowed for Private Cars and
Two Wheelers, as per pricing for OD component of existing package policies.
Issuing long term products - Private Car and Two Wheelers:
Through this circular, it was clarified that 3 and 5 Year Motor TP Insurance policies were only for New Cars
and New Two wheelers.
IRDAI (Regulatory Sandbox Regulation) 2019:
Through these Regulations, final guidelines on operational issues pertaining to Regulatory Sandbox were
issued and applications were invited by October 2019.
Guidelines on Filling of Minor Modification in the approved individual insurance products offered by
general and standalone health insurance on certification basis:
Through these Guidelines, insurers were allowed to undertake minor modifications in approved individual
products on a certification basis, including addition of distribution channels, change of +/- 5% in annual
premium rates, change in minimum / maximum age, collection of premium in installments, etc.
Guideline on appointment of Postmen and Grameen Dak Sevaks of Dept. of Posts as POSPs by India
Post Payment Bank (IPPB):
Through these guidelines, IPPB was allowed to enter into a single contact with Department of Posts and
engage all postmen as POSPs.
Guideline on Migration and Portability of Health Insurance Policies:
Through these guidelines:
• Portability was allowed under all Individual Indemnity health insurance policies including family
floater.
• Option of migration was made available to every Individual policyholder to (1) Individual Health
Insurance Policy or a Family Floater; or (2) a Group health Insurance policy.
• Option of migration should be provided in case of modification of the group policy or at the time of
exit from a group policy or withdrawal of the policy to migrate to an Individual health Insurance
policy or a family floater.

Marketing Standard Individual Health Insurance Products through POSP:
Through this circular, “Arogya Sanjeevani Policy” was allowed to be marketed by Point of Sales Persons
(POSP)
Guidelines on Group Health Insurance Policies upon merger of PSBs’:
Through this circular (applicable for group insurance policies only):
• Underlying group health Insurance policies of the customers of the merged bank should continue to
be serviced by the respective insurance companies, which issued the policy till the end of the policy
period.
• The acquiring bank could also offer insurance coverage given to its customer to the customer of the
merged bank with the consent of its insurer.
Guidelines on filling of Re-Insurance Arrangement with the IRDAI:
Through this circular, it was directed that alternate risk transfer / non-traditional structured solutions,
financial reinsurance, etc. could be done only with prior approval of IRDAI.
General instructions on Covid-19 related issues:
Through this circular, detailed guidelines were issued to the insurer in terms of handling scenarios arising
from outbreak of Covid-19 pandemic, business continuity planning, communicating with stakeholders,
policy servicing and claims, reporting to the board, etc.
v. Industry outlook
India is the 4th largest non-life insurance market in Asia and 15th largest globally and Non-life Insurance
penetration in India is around a third of Global average in 2018 (Source: Swiss Re Sigma Report 2018).
While the insurance industry like most other industries globally will see a significant impact from COVID-19,
this may be an inflection point for the industry with customers realising the importance and need for
Insurance, especially health.
The first half of FY2021 is likely to be significantly impacted by COVID-19 as activities come to a grinding
halt due to the nation-wide lockdown in Q1 FY2021.
The future for the insurance industry in India however looks promising with (a) the extent of under-
penetration in India, (b) people becoming even more aware of the insurance gap and (c) Companies learn
from the lockdown and change the way they function and engage with distributors, customers and other
stakeholders.
Factors that will help insurance industry grow include:

• Very low insurance penetration at 0.97% as against other developed/developing countries,
• Growing middle class/affluent population which is exhibited through growth in per capita GDP,
• Growing population and within that higher share of young insurable population and
• Growing awareness for the need of insurance.
vi. Opportunities
Economic growth: While there would be a slowdown on account of Covid-19, the Indian economy with its
strong fundamentals is still likely to remain amongst the strongest. As per the World Economic Forum, by
2030, the economies of top 5 cities in India will be comparable to those of middle-income countries today
(like Vietnam, Philippines, Malaysia).
High middle-income and high consumption economy: As per the World Bank “As the world’s third
largest economy in purchasing parity terms, India aspires to better the lives of all its citizens and become a
high-middle income country by 2030”. Rising income levels will result in demand for better living habitat,
water, sanitation, education, healthcare and the need for insurance.

Demographic advantage and low insurance penetration: Demographic factors such as large and
growing population, growing middle class, high mix of working population and young insurable population
and growing awareness of the need for insurance will support the growth of Indian insurance space.
Further, very low premium per capita versus other developed/developing economies indicates significant
opportunities for the insurance sector to expand. India’s non-life insurance sector is amongst the top 15 in
the world and is expected to increase at a CAGR of 12-15% over the next five years (pre Covid-19
assessment). India currently accounts for less than 1.1% of the world’s total non-life insurance premiums
despite being the second most populous nation. (Source: IRDAI Annual Report and IBEF).
Government thrust: Governments on going push on insurance through various schemes such as the
National Health Protection Scheme that was launched under Ayushman Bharat or the Pradhan Mantri Fasal
Bima Yojana (PMFBY) that was launched for farmers, continues to give a thrust to insurance penetration.
vii. Risks and threats
Continued low insurance awareness and penetration: Insurance industry could continue to face
challenge of low awareness and the need for insurance resulting in low insurance penetration.
Extended impact of COVID-19: An unexpected outcome of the ongoing Pandemic could have far reaching
implications through stresses on businesses leading to job losses that could lead to slowdown in
consumption. While COVID-19 could positively impact health insurance in long term it could have a
negative impact on insurance sales linked to consumption such a car sales, etc.
Impact of change in Crop scheme in FY2021: Government has recently announced significant changes in
the Crop insurance scheme. These could significantly impact the premium which the Company writes
under the schemes in the years to come. As the states our still to finalise their adoption plans, the actual
impact of the same would be known only in due course on actual roll out by the respective states during
the year.
Disruption of business models by technology and data driven companies: World over, large scale
distribution models (such as insurance) are facing disruption from entities that maximize the use of data.
Data backed by analytics and use of technology is expected to change the distribution landscape in the
years to come. With the traditional business models being used by most insurers in India, it is likely that
the competitive landscape will change significantly thus warranting Companies to strategize in such a way
that they can provide the best value proposition to the largest set of customers in the most convenient
manner.
B. Business overview
i. Company strategy
(a) Growth with profitability
The Company has always focussed on growing profitably rather than compromising on profitability at the
cost maintaining market leadership on top line. It does so consistently through, (a) robust and prudent
underwriting practices, (b) generation of cash flows through strong retention of premium and judicious
investments of the proceeds, and (c) focus on high quality customer service.
Accordingly, the Company has been amongst the top performing general insurers consistently on both top
and bottom line amongst the private players, over the past decade.
(b) Diversified and largest distribution and diverse business mix with a diversified product portfolio
The Company endeavours and continues to maintain a healthy mix of business across various distributors
and product lines. This helps the company tied over business cycles that may impact one line of business
or distribution.
The Company has one of the largest distribution across the industry with a large network of institutional
partners like banks, NBFC’s, motor dealers and individuals including agents, POS and our proprietary Virtual
Sales Officers.

In addition, we continue to maintain a diversified product portfolio to address varying insurance needs of
the customers while maximizing value to our three key stakeholders i.e. Customer, Distributor and the
Shareholders.
(c) Retail orientation
While the Company continues to invest in all available market opportunities, the endeavour is to always
maintain a high proportion of retail business mix to avoid over dependence on any customer segment and
to maintain high level of profitability.
(d) Robust underwriting and risk practices
We manage risk as culture which encompasses across the organisation. Our rewards programs across the
organisation ensure the sufficient weightage is given to both top line and bottom line hence ensuring a
well-balanced and idle risk reward structure. The Company maintains a very effective multi-layer
reinsurance program which seeks to optimize the retention of risk at each policy level as well as at the
level of lines of business. The limits under the treaties are set based on accumulation of risks by location
and category, after considering the exposure based on Probable Maximum Loss, where applicable, and the
expected frequency of claim events. Any catastrophe risk is mitigated by a separate non-proportional
reinsurance treaty, which limits the Company’s exposure to any single covered event. The reinsurers
chosen are most highly rated and rated few notches above the regulatory mandate. Our robust
underwriting and reinsurance guidelines prevent any over-exposure to a single loss event and exposure to
claim payments for perils that were never intended to be insured. Detailed reserving guidelines are in
place and the adequacy of reserves is tested from time to time and monitored by the Reserving
Committee.
(e) Best in class customer service
We endeavour to and maintain best in class customer service which is continuously tracked through our
highest Net Promoter Scores, amongst highest claims settlement ratio and claims settlement efficiency
ratio and lowest grievance percentages.
(f) Endeavor to continuously invest in new engines of growth
With the objective of being ahead of the market we continue to reinvent the wheel and challenge our
distribution to identify newer engines for growth such as the Virtual Sales Office model that we pioneered
and is now close to a thousand crore Gross Written Premium model. Other such models include the POS
and the Health vertical.
(g) Digitalization to maintain competitive edge
Digital assets and smart process enabled business delivery are the DNA of the Company. We have been
operating in a two-speed model (running BAU and Transformation parallelly ensuring agile, innovative
initiatives move forward quickly without being hampered by the checks and balances that are needed to
maintain business-critical and BAU IT and operations). RUN, TRANSFORM and INNOVATE is our operating
model for delivery of technology and operational processes. In RUN, we have focused on creating an array
of digital assets for ease of use for the end user. These range from our self-service BOT, apps such as
Caringly Yours, Farmitra, community portals such as caringlyyours.com, NPS feedback tool across ten
different languages, portals such as Ezeetab and iMitra for sales & partners and our paperless agent
licensing tool such as Saarthi. In TRANSFORM, our journey to transform our core policy administration
platform and re-engineer our processes end-to-end will provide us the platform for the future to serve all
segments of our customers, partners and employees. We have also enabled our omnichannel environment
by shifting to an enterprise grade CRM tool and connected it across our service and sales functions for a
single view of the customer. In INNOVATE, we continue to experiment and roll out solutions with the latest
in cloud technologies, AI /ML models for instant claims settlement, renewal propensity, fraud detection,
cross sell and customer churn. We believe technology and operational agility will be the drivers of
competitive differentiation for any organization in the future. The Company is continuously evolving to
ensure that we stay at the top of our game.

(ii) Performance overview: FY2020

(a) Business growth and market ranking
In terms of GWP, the Company’s growth was at 15.6% as against the market growth of 11.7% (Private and
Public multiline players). The Company maintained its 2nd rank during FY2020 with a market share of 6.8%
which moved up from 6.5% in FY2019. Excluding the bulky Crop, Government health and Group Health
business the growth for the Company was at 11.3% as against the market growth of 9.8%.
BAGIC Gross Direct Premium (Rs In Crore) BAGIC Gross Direct Premium Excl Crop,
Govt Health & Group Health (Rs In Crore)
12,780
15.6%
11,059
8,904
11.3%
8,000
FY2019 FY2020 FY2019 FY2020
(b) Claims ratio
Claims ratio for the Company for FY2020 was 70.7% as compared to 68.6% in FY2019. Excluding NATCAT
claims, claim ratio is at 69.4% (PY 67.9%). Despite the increase, we would have amongst the lowest
claims ratio in the industry.
Worsening claims ratio is attributable to (a) Losses from a few natural catastrophies such as Fani cyclone,
Heavy extended monsoons in Maharashtra and Gujarat and floods in Kerala and (b) higher crop claims
ratio from 74.9% in FY2019 to 92.0% in FY2020 largely attributable to higher Kharif season claims in
FY2020.
Claims Ratio
70.7%
68.6%
FY2019 FY2020
Claim Ratio = Net Claims Incurred / Net Earned Premium

(c) Expense ratio

Expenses Ratio
30.1%
28.1%
FY2019 FY2020
Expense Ratio = (Net Commission + Operating Expenses)/Net Written Premium
Increase in Expense ratios is largely attributable to the investments being made by the Company in new
channels of growth, including new bank tie ups and investments in technology.
(d) Grievance ratio
During the year, number of complaints increased by 15.0% from 1,103 registered in FY2019 to 1,268 in
FY2020 with corresponding increase in number of policies from 21 million in FY2019 to 27.5 million in
FY2020. Accordingly, the grievances per 10,000 new policies issued stood at 0.61 in FY2020 as against 0.53
in FY2019, this is amongst the lowest grievances across all general insurance companies in the country.
(e) Profitability – COR, Profit after Tax and ROE
The Company’s COR moved up from 96.7% in FY2019 to 100.8% in FY2020 largely on account of the impact
of multiple catastrophies and extended monsoons. Excluding NATCAT claims, COR was at 99.5% in FY2020.
The Company earned a profit after tax of Rs. 999 crore during FY2020 as compared to the profit of Rs. 780
crore for the previous year; a growth of 28%.
Consequently, the ROE of the Company moved up from 16.2% in FY2019 to 18.5% in FY2020.
(f) Strong Assets Under Management (AUM) and Solvency
The Company remains well capitalised and maintained very high levels of solvency throughout the year.
The solvency ratio as at 31 March 2020 stood at 254% (31 March 2019: 255%) which is well in excess of the
required solvency margin of 150%.
The AUM for the Company grew by 8.8% in FY2020 to end at Rs. 18,746 crore at 31 March 2020 up from Rs.
17,237 crore at 31 March 2019.
AUM (Rs In Crore) Solvency Margin%

255%
254%
18,746
17,237
FY2019 FY2020 FY2019 FY2020

(g) Brand performance - Brand Transition: Caringly yours
To build an emotional engagement with the customers, BAGIC initiated the brand transformational journey
by repositioning it as “Caringly Yours” With an aim to shift the business category from push to a pull, the
positioning is anchored on differentiated products and services of BAGIC that solves daily worries of
customers. BAGIC protects and offers caring solutions to solve financial worries of customers’ most prized
possessions - their health, home & content, vehicles and businesses.
BAGIC’s Funnel Improvement Index, a measure of brand health score, moved up to 228 points in FY2020,
from 191 in the previous year, as per the independent consumer research agency evaluating the Brand
Performance Measure. The brand maintains lead position on brand awareness, consideration and advocacy
scores in the General Insurance industry.
One of the significant brand initiatives during the year has been the launch of brand property BAGIC Care
Heroes. As an extension of brand philosophy, the Care Heroes initiative seeks to recognise individuals
across various walks of life who through acts of selfless care are making positive impacts on several lives
around them. The initiative is amplified extensively through social media platforms. Several offline and
online initiatives including Bajaj Allianz Marathon, Bagic4Fitness and programmes around mental and
spiritual well-being were initiated to position BAGIC as a holistic health enabler brand.
On digital marketing initiatives, BAGIC website saw an increase of 12% over the previous year, garnering
4.5 crore website visitors. The online campaigns impacted a reach of 42 crore (including repeat, unique
would be a quarter of these) with 19% increase in time session. BAGIC has a lead position in number of
followers and subscribers across all social media platforms aggregating to over 26 Lacs across Facebook,
Instagram, Linkedin, Twitter and YouTube.
Through strong PR efforts, BAGIC’s various milestones during the year have been publicised in media. Thus,
increasing our brand recall value amongst all stakeholders. The Company has a strong editorial presence in
the general insurance industry and has been ranked Number 1 for its SOV in print media as per an
independent PR monitoring agency for 2019 (*9 month ranking for 2019-20, final ranking awaited).
(h) Internal control and its adequacy
The company has in place adequate systems of internal control commensurate with its size and nature of
business.
Board oversees the internal control governance structure. Head of departments (HOD) ensure control
activities are performed at all levels within their functions, at various stages within business processes, and
over the technology environment.
Observations of statutory, internal and concurrent auditors are presented before the audit committee for
corrective and preventive actions. A pre-audit committee is in place to go through, in great detail, each
aspect impacting the control environment. The Audit Committee deliberates upon auditors’ views on the
adequacy of internal control systems and monitors the progress of open items through action taken report.
The risk management process identifies risks surrounding the Company’s activities. Risk management is
integrated into the Company’s culture by way of an effective policy and a program led by the senior
management.
Departmental policies and procedures are an effective way to maintain a strong system of internal
controls. All the departments have documented policies and procedures of critical processes in their
respective functions and ensure operating level controls through clear delegation of authority and
segregation of duties.
The financial reporting control framework reasonably assures that the Company’s financial statements are
reliable and prepared in compliance with the accounting standards as prescribed in the Companies Act,
2013, in accordance with the provisions of the Insurance Act, 1938 and the practices prevailing in the
insurance industry in India.
As required under the Companies Act, 2013, Company has implemented Internal Financial Control (IFC)
considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

The Company also has established a Governance & Controls Committee (GCC) to promptly address process
improvement decisions and support in enhancing business resiliency for embracing change and create
opportunities.
Various other policies and committees support a robust internal control structure which include the Whistle
Blower policy, Whistle Blower Committee, etc.
(i) Material developments in Human Resources - Constantly driving towards a better future
At BAGIC, our people are curious, bold and resilient. We see challenges as opportunities and are excited by
the possibilities they offer. With a hypercompetitive external job market and growing employee career
development expectations we have rapidly upped our game through planned investment in People
processes and technology. Undeniably, FY2020, has been one of the remarkable years for Human
resources function in BAGIC where we have re-defined the entire approach towards employee lifecycle in
the organization.
We have paved our way to achieve greater heights and have continued to raise the benchmark with a
vision of creating a culture through our EVP (Employee Value Proposition) statement - “Live Ambition.
Breathe Care”. With ever-increasing complexity, competitive market and widely spread talent, one of the
biggest challenges we had was to have greater sense of ‘purpose’ inculcated in each of our employees.
This certainly required reinforcement through Talent Acquisition, development, and engagement strategies.
We have made some massive transformation in our People processes to build the culture of ‘Workforce of
One’
1. Talent Attraction: We launched an industry first Robotic Video Behavioral Interview, 3 click application and
Job recommendation engine. This is represented by ‘Eve’ the first virtual employee of BAGIC. Indeed, this
intervention has also enabled us to be environment friendly through 100% paperless onboarding process.
2. Development: Stemming from driving a culture of capability building and innovation, human resources
function launched an array of learning interventions around three major learning tracks i.e. building
capability, workplace effectiveness and functional proficiency. Building Capability track focused on building
complex and critical skills required to become an all-round leader. Workplace Effectiveness focused on the
development of key work skills required for employees to maximize productivity and to better
performance in their current role. Functional Proficiency track focused on development of core knowledge
and thus building functional expertise. Another big leap in the learning intervention was the pilot launch of
our Digital Learning Experience Platform for some of the programs. The platform aims at creating a digitally
enabled personalized learning culture anywhere, anytime. The architecture of the platform is based on the
skill development inputs coming from an enterprise wide scalable technical competency framework (TCF).
The framework not only fuels the capability development engine for BAGIC but also helps in empowering
employees to take charge of own career through understanding of skill requirement for their role.
3. Engagement: With the changing talent landscape and entrance of GenZ at workplace, we have redefined
the ‘Engagement’ to ‘Fulfillment’. At BAGIC, we define fulfillment as a feeling employee have when their
work and motivations are aligned, and they gain a sense of meaning and purpose as result. We have
rolled out various initiatives to walk towards this journey i.e. (a) Social impact projects - Platform for
employee to contribute towards the social projects, (b) Wellness initiatives - Promoting wellness for
employees and families for wellbeing of mind and body and (c) Social club - Pursue and acquire new
hobbies.

C. Financial statements
a. Results from operations: Analysis of Profit and Loss and Revenue Account
The statement below summarises the Company’s Revenue and Profit and Loss accounts:
(` in Crore)
Particulars FY2020 FY2019
Gross written premium (GWP) 12,833 11,097

Less: Premium ceded 4,817 3,323
Net written premium (NWP) 8,016 7,774
Less/(add): Adjustment for change in reserve for unexpired risks (190) 765
Net earned premium (NEP) 8,206 7,010
Income from investments (net) 1,408 1,146
(` in Crore)
Other income (excluding EOM funding) 24 19

Total income 9,638 8,174
Claims incurred (net) 5,805 4,810
Commissions (net) 92 375
Operating expenses related to insurance business 2,320 1,807
Other expenses (excluding EOM funding) 46 30
Total outgo 8,263 7,023
Profit before tax 1,376 1,152
Provision for taxes 377 372
Profit after tax 999 780
The Company’s results from operations have been analysed below:
i. Premium income
(` in Crore)
Particulars FY2020 FY2019 Growth
Premium from direct business written (GDPI) (net of GST) 12,780 11,059 15.6%
Premium on reinsurance accepted 53 38 41.7%
Gross written premium (GWP) 12,833 11,097 15.6%
Less premium on Reinsurance ceded 4,817 3,323 45.0%
Net written premium (NWP) 8,016 7,774 3.1%
Less: Adjustment for change in reserve for unexpired risks (190) 765 -124.9%
Premium earned (net) (NEP) 8,206 7,010 17.1%

Segmental NEP
(` in Crore)
Fire 268 188 42.8%

Marine Cargo 117 104 13.0%
Marine Hull 0 0 27.8%
Marine Total 117 104 13.0%
Motor OD 2,024 1,984 2.0%
Motor TP 2,865 2,232 28.3%
Motor Total 4,889 4,216 15.9%
Workmen’s Compensation 48 42 13.8%
Public Liability 13 15 -8.5%
Engineering 29 26 14.2%
Aviation 10 3 294.7%
Personal Accident 244 200 22.2%
Health Insurance 1,734 1,666 4.1%
Credit Insurance 0 0 29.0%
Crop Insurance 538 288 86.9%
Others 316 264 19.9%
Grand Total 8,206 7,010 17.1%
ii. Investment income
Details of income from investments are given in the table below:

(` in Crore)
Interest, dividend and rent* 1,260 1,108 13.7%

Profit /(loss) on sale of investments (net) 278 95 193.6%
Impairment loss (129) (56) 128.1%
Total income/(loss) on investments 1,408 1,146 22.9%
* includes accretion of discount/amortisation of premium
The total income on investments is analysed as follows:

(` in Crore)
Interest (including accretion of discount/amortisation of

1,124 1,039 8.1%
premium)
Dividend 15 10 44.5%
Total 1,138 1,049 8.5%

As can be seen above, interest income increased by 8.1% up from Rs.1,039 crore in FY2019 to Rs. 1,124
crore in FY2020 due to increase in average debt assets under management partly offset by lower yields
during the year. The table below indicates average debt investments and average yield earned in the
respective years.
(` in Crore)
Average interest earning assets 16,339 14,367

Average yield 6.8% 7.2%
Profit and loss on sale on investments

Profits and losses on sale of investments represents the amount by which the proceeds from the sale of
investments exceeds the carrying amount of the investments that were sold. Profits and losses are booked
considering the overall market condition and available investment opportunities.
Impairment
Impairment provisions made of Rs 129 Cr (Previous year Rs. 56 Cr) are towards various debt exposures to a
few stressed NBFC’s. The value on book represents the realisable value of such stressed exposures.
Total investment yield including impairment:
Particulars FY 2020 FY 2019
Market value yield including impairment 7.9% 8.3%
iii. Other income

Other income mainly includes interest on income tax refund of Rs. 8.2 Cr and interest income other than
investment Rs. 13 Cr.
iv. Claims
Claims incurred (net) are the total claims incurred by the Company during the year including both paid and
outstanding and including Incurred but not reported (IBNR)/Incurred but not enough reported (IBNER)
reserves, net of claims recovered from reinsurance ceded. The statement below summarises the Claims
incurred (net).
(` in Crore)
Claims paid 6,737 5,765 16.9%

Claims paid on reinsurance accepted 6 7 -11.8%
Gross claims paid 6,743 5,771 16.8%
Less: Claims recovered from reinsurance ceded 2,449 1,891 29.5%
Net claims paid 4,294 3,880 10.7%
Add: Increase/(decrease) in claims outstanding (net) 1,511 930 62.4%
Total claims incurred (net) 5,805 4,810 20.7%
The table below summarises the claims ratio for key lines of businesses:
Fire 68.0% 74.4%

Marine Cargo 67.3% 94.0%
Motor OD 67.7% 60.0%
Motor TP 64.5% 64.5%
Engineering 52.8% 43.5%
Personal Accident 56.0% 50.2%
Health Insurance 85.6% 89.5%
Crop Insurance 92.0% 74.9%
Total claims ratio 70.7% 68.6%

As can be seen above the increase in claims ratio is largely in the motor and Crop business.
v. Expenses (including commission)

(` in Crore)
Commission 92 375 -75.5%

Operating expenses related to insurance business 2,320 1,807 28.4%
Other expenses 46 30 53.3%
Total expenses 2,458 2,212 11.1%
The total expenses are further analysed below:
Commission expenses
(` in Crore)
Commission paid-Direct 828 830 -0.3%

Commission paid on reinsurance accepted 5 3 63.8%
Gross Commission paid 833 833 0.0%
Less: Commission received from reinsurance ceded 741 458 61.7%
Commission paid (net) 92 375 -75.5%
As can be seen above, the lower commission paid (net) is largely attributable to higher commission on
reinsurance ceded.
Increase in expenses has largely been driven by higher wage costs due to higher investments in people to
staff new tie ups and higher Business development and promotion and Marketing and support services.
Other expenses largely include CSR expenses and CEO’s remuneration.
vi. Profit
Based on the above, the underwriting loss was at Rs. 11 Cr (excluding NATCAT profit of Rs. 98 Cr) for
FY2020 and at profit of Rs. 18 Cr (excluding NATCAT profit of Rs. 68 Cr) for FY2019. The segmental results
were as follows:
(` in Crore)
Fire (12) (3)

Marine (8) (31)
Miscellaneous 9 52
Total (11) 18
Profit before tax (PBT) increased to Rs. 1,376 Cr in FY2020 from Rs. 1,152 Cr in FY2019, an increase of 19.4%.
As a result of the above, Profit after tax (PAT) increased to Rs. 999 Cr in FY2020 from Rs. 780 Cr in FY2019,
an increase of 28.1%. Higher growth in PAT vis-à-vis PBT is attributable to the lower Corporate tax rates
from FY2020.

b. Financial condition
The following table sets forth, on the dates indicated, the summarised Balance Sheet
(` in Crore)
Particulars At 31 March 2020 At 31 March 2019
Sources of funds
Equity capital 110 110
Reserves and Surplus 5,841 4,976
Fair value change account (310) 78
Total Equity 5,642 5,164
Current liabilities 11,973 10,077
Provisions 4,250 4,484
Total 21,866 19,725
Application of funds
Investments
- Shareholders' 3,213 3,649
- Policyholders' 15,091 13,138
Fixed assets 430 344
Deferred tax assets 64 154
Cash & Bank balances 576 456
Advances & other assets 2,492 1,984
Total 21,866 19,725
Sources of funds
i. Equity capital and reserves
Equity capital
Shareholding pattern and transfer of shares
The shareholding pattern of the Company is as follows:

At 31 March 2020 At 31 March 2019
Particulars No. of shares Percentage of holding No. of shares Percentage of holding
Bajaj Finserv Limited 81,568,165 74% 81,568,165 74%

Allianz SE 28,659,085 26% 28,659,085 26%
Total 110,227,250 100% 110,227,250 100%
There has been no transfer of shares during the year and the shareholding pattern is in accordance with
the statutory and regulatory requirements. The share capital stood at Rs. 110 crore.
The Company is required to maintain minimum solvency margin (i.e. excess of value of assets over value
of insurance liabilities) at 150% as prescribed by IRDAI. The solvency margin was 254% at 31 March 2020 as
against 255 % at 31 March 2019.
Reserves and surplus

A summary of reserves and surplus is provided in the table below:

(` in Crore)
Share premium 167 167

Balance of profit in Profit and Loss account 5,675 4,809
Fair value change account (310) 78
Total 5,532 5,054
The increase in Profit and Loss Account balance represents the profit generated during the year.
Fair value change account represents unrealised gain/(loss) as on the Balance Sheet date on equity and
mutual fund investments. Such mark to market treatment of equity and mutual fund securities as on the
reporting date is in line with requirements of IRDAI (Preparation of Financial Statements and Auditor’s
report of Insurance Companies) Regulations, 2002 which require equity and mutual fund assets to be
reflected at their current fair value in the Balance Sheet and the mark to market adjustment being
reflected under “Fair value change account” on the liability side of the Balance Sheet. Movement in fair
value change account is a function of performance of the equity markets and the mix of equity and mutual
funds in the portfolio.
The net-worth of the Company grew by 9.3% to Rs. 5,642 crores at 31 March 2020 up from Rs. 5,164 crore
at 31 March 2019.
ii. Current liabilities and provisions
Current liabilities
A summary of current liabilities is provided in the table below:

(` in Crore)
Amount pertaining to Policyholders'

- Unclaimed amount of Policyholders' 7 7
- Policyholders' claims payable 8,358 6,847
- Unallocated premium 453 379
- Premium received in advance 1,139 657
- Payable to Policyholders 1 2
Sundry creditors and payables for expenses 355 368
Solatium fund 14 11
Payables for unsettled investment contracts 77 120
Payable to agents (Agents balances) 114 155
Statutory dues and Taxes (including GST) payable 107 137
Balances due to other insurance companies 1,213 1,388
Other liabilities 135 6
Total 11,973 10,077
(a) ]The unclaimed amount to policyholder balance are on account of claims settled but not paid (except under
litigation) and cheques issued but not encashed by policy holders / Insured.
(b) Policyholders’ claims payable represent amounts payable to the policyholders that are intimated to the
Company and are outstanding as a part of the normal claims process or pending due to incomplete
documentation from the policyholders or pending investigations or may be under litigation.
(c) Unallocated premium mainly includes amount received toward proposed insurance contract that will be
recognised as premium post underwriting or fulfilment of requirements by the customer. This also includes

monies kept with the Company by Group policyholders to take care of ongoing additions to the Group
policy.
(d) Premium received in advance is held in accordance with the IRDAI guidelines and as per file and use and
will be recognised as premium income on the due date of the policy.
(e) Payable to policyholders indicates amount due to the policyholder which is under regular process of being
disbursed.
(f) Sundry creditors and payables for expenses represent amounts payable to various service providers
towards goods and services availed by the Company along with the provision for the services availed/
goods received but bills not received.
(g) Solatium fund - the Company provides for contribution to Solatium fund at 0.10% of total Third Party
Premium of direct business as per requirements of IRDAI.
(h) Payable for unsettled investment contracts represents amount outstanding towards investment trades of
last few days that are not due for settlement.
(i) Agents’ balances represent amount payable to agents towards commission as on the Balance Sheet date.
(j) Taxes payable represent tax deducted and payable under various tax rules and regulations, such taxes will
be paid in due course within their due dates.
(k) Balances due to other insurance companies primarily indicates payables to reinsurers under various
reinsurance arrangements.
(l) Other liabilities primarily include bank overdraft as per the books of accounts.
Provisions
A summary of provisions is provided in the table below:

(` in Crore)
Reserve for unexpired risk 4,185 4,375

Premium deficiency 0 0
Income tax 20 69
Provision for leave encashment, long term incentive plan and gratuity 45 40
Total 4,250 4,484
Company’s liability towards leave encashment, long term incentive plan and gratuity is actuarially valued
and is as per the requirements of revised Accounting Standard 15 (Revised) on Employee Benefits.

Application of funds
i. Investments
A statement of total investments made by the Company is given below:

(` in Crore)
Investments
- Shareholders' 3,213 3,649
- Policyholders' 15,091 13,138
Total 18,305 16,786
Total investments grew by 9.0% from Rs. 16,786 crore as at 31 March 2019 to Rs. 18,305 crore as at 31
March 2020.
ii. Fixed Assets
A statement of movement of fixed assets is given below

(` in Crore)
Gross block 694 565

Less: Accumulated depreciation 275 242
Net block 420 324
Add: Capital work in progress 10 21
Net fixed assets 430 344
iii. Deferred Tax asset (net)
Deferred tax assets carried in the books comprise of:

(` in Crore)
Deferred tax asset

Timing difference on account of -
Reserve for unexpired risks 22 142
Employee Benefits 3 4
Long Term Incentive Plan 9 10
Provision for doubtful debts 1 1
Solatium fund 4 4
Provision for diminution in value of Investments 47 20
Total 85 180
Deferred tax liability
Depreciation as per Section 32 of Income Tax Act, 1961 (21) (26)
Net deferred tax asset 64 154

iv. Cash, bank, advances & other assets
A summary of current assets, loans and advances is provided in the table below:
(` in Crore)
Cash and bank balances 576 456

Advance tax and TDS 71 101
Income accrued on investments 483 404
Assets held to cover unclaimed funds 10 10
Outstanding premium 1,271 1,047
Dues from entities carrying on insurance business 242 228
Unsettled investment contract receivable 74 0
GST/Service tax unutilized credit 191 24
Deposits 32 31
Prepayments 10 16
Other advances and receivables 107 123
Total 3,068 2,440
(a) Cash and bank balances represent amounts collected during last few days of the financial year and
includes cheques on hand and cheques deposited but not cleared.
(b) Advance tax and TDS (net of provisions) indicates advance tax paid and amounts paid to the Tax
Authorities under protest for matters in Appeal.
(c) Income accrued on investments represents interest income accrued but not due as at 31 March 2020. This
largely pertains to interest on fixed deposits, Government securities and debentures. The increase is
attributable to the increase in the debt investments of the Company.
(d) Assets held to cover unclaimed funds are assets segregated for unclaimed policyholders and invested in
money market instruments in line with the IRDAI regulations.
(e) Outstanding premium represents premium income accrued and due. These largely pertain to the Crop
business where monies are due from the Central and State governments.
(f) Dues from entities carrying on insurance business include dues from coinsurers and reinsurers
(g) Unsettled investment contract receivable represents amount receivable from counter-parties for
investment trades done on the last few days of the year where settlement is not due.
(h) GST/Service tax unutilized credits represent the credit of GST/service tax available with the Company
which can be used to offset the GST/service tax liability of the Company. Most dues pertain to GST dues by
vendors that have not been updated on the GST portal.
(i) Deposits represent deposits placed for premises taken on lease as well as for leased accommodations for
employees. It also includes deposits to service providers for electricity, telephone and other utilities
services.
(j) Prepayments includes amounts paid in advance as per contractual terms with vendors for services to be
utilised in the future.
(k) Other advances and receivables primarily include advances made in the ordinary course of business for
services to be availed in the future and recoverable from reinsurers and recoverables from Agents.


Directors’ Report
for the financial
year ended on
31 March 2020

Your Directors have pleasure in presenting their Twentieth annual report and audited financial statements for
the financial year ended 31 March 2020 (FY2020).
Industry update
While the general insurance industry has seen a decent amount of growth in the last five years with a CAGR of
18.4%, FY2020 was a challenging year due to several reasons, some of which were:
a) Economic slowdown backed by a global slow-down in motor sales,
b) Multiple catastrophes and prolonged monsoons leading to wide-spread losses across the country in retail as
well as commercial lines,
c) Slashed credit ratings and write-down of certain fixed income securities and
d) Lastly, the impact of COVID-19.
Despite this challenging backdrop, the industry posted a reasonable growth of 11.7% for FY2020. This was
largely driven by growth in Property, Motor TP, Health and Crop insurance. Your Company did very well, posting
an industry beating growth rate of 15.6%.
The growth rates in gross direct premium in India (Gross written premium less reinsurance accepted) for the
industry and for your Company, are shown in the following Table:
Gross direct premium in India - the general insurance industry

(H In Crore)
Gross Premium
Particulars FY2020 FY2019 Growth%
BAGIC 12,780 11,059 15.6%
Private Sector 91,177 81,287 12.2%
Public Sector 73,042 68,659 6.4%
Industry 164,218 149,946 9.5%
Standalone Health Insurers (SAHI) 14,470 11,354 27.4%
Industry Including SAHI 178,689 161,300 10.8%
Specialized Insurers 10,613 8,148 30.2%
Industry All 189,302 169,448 11.7%

*Source: : GI Council figures, IRDA website and IRDA.
Excluding the bulky crop, government health and group health insurance, your Company grew by 11.3%
compared to the industry growth of 9.8%.
The Company increased its market share from 6.5% in FY2019 to 6.8% in FY2020.
Key events impacting the industry

Change in Crop Insurance Guidelines
The crop insurance guidelines have undergone a significant change which comes in effect from 1 April 2020.
The key changes include (a) Scheme being made voluntary for loanee farmers, (b) Each district / cluster would
be mandatorily allotted for three years and (c) Restriction in subsidy to states from the Centre. This could
impact the crop insurance business volumes in the years to come.

Impact of COVID-19
Your Company carries on business operations through a wide network of its branches and branches of its
distribution partners, hence the lock-down in the second half of March’ 2020 led to disruption of normal
business operations as the entire economy came to standstill. Having a robust IT infrastructure enabled the
employees to work from home and support the needs of customers, distributors and other functions of the
Company, which was also required for arresting further spread of the deadly virus. Best efforts were put in to
channelize business flow and operational activities to online modes. While your Company could meet the
service expectations of its existing customers, the lock-down hampered new and renewal business during the
second half of March 2020. In terms of COVID-19 health claims, we only had a handful of reported cases till 31
March 2020.
The extent to which COVID-19 pandemic will impact the Company depends on future spread of the virus and
related developments, which are highly uncertain, including, among other things, period of lockdown and its
repercussions on the economy, development of a vaccine, government intervention to provide financial support
to the stressed sections, etc. Your Company is however highly capitalized with a solvency ratio of 254% as
against the required solvency ratio of 150% to withstand various stress scenarios that have been estimated by
the Company on its investment portfolio and expected claims.
Business update
BBAGIC has a strong focus on growing its retail business. While the total portfolio of the Company includes
motor insurance, health insurance for individuals, other personal lines of insurance, insurance for commercial
entities like shops, SMEs, etc. BAGIC also participates in annual tender-driven businesses like crop insurance and
government health schemes. Your Company continued its journey of growing profitably. It did so through
robust and prudent underwriting practices, generation of cash flows through strong retention of premium and
judicious investments of the proceeds and focus on high quality customer service.
Floods across multiple states in 2020 and cyclone Fani resulted in losses to the extent of Rs. 179 crore. After
reinsurance and reinstatement of reinsurance treaties, the profit and loss account was negatively impacted by
Rs.109 crore. BAGIC also had exposure to fixed income securities issued by entities which saw credit rating
downgrade and had to take an impairment loss of Rs. 129 crore. Our health claims were also impacted through
extended monsoons.
Notwithstanding these unexpected losses, BAGIC continues to be among the more profitable general insurers
vis-a-vis peers in the public and private sectors of comparable size. Combined ratio of 100.8% in FY2020 is still
expected to be one of the lowest in the industry, reflecting a sound balance between growth and profitability.
Motor and retail health insurance are the major focus areas, with 46.3% of gross premium coming from these
lines. BAGIC’s online sales channel, which offers 24x7 ease of buying and ideally suited for off-the-shelf retail
products, grew by 22.8% during FY2020.
Your Company maintains one of the largest distribution network through tie ups with banks, NBFCs, individual
agents, MISPs, POSPs and the Company’s proprietary Virual Sales Officers. Your Company continued to expand
its network of independent bancassurance partners including private banks, public sector banks, regional banks,
small finance banks and cooperative banks. The company has the strongest network of bancassurance partners
among all insurers; and this channel is expected to provide strong momentum for growth and profits in the
coming years. During FY2020, your Company tied up with 24 new corporate agents including the likes of Tata
Capital, several co-operative and medium sized commercial banks and NBFCs and new age financial
intermediaries such as PhonePe, one of India’s leading digital payments platform.
Business performance during the year

Your Company’s Gross Written Premium (GWP), including reinsurance accepted, for FY2020 was Rs. 12,833 crore
as compared to Rs. 11,097 crore during the previous year, growth of 15.6%. Excluding the bulky crop, group
health and government health insurance, GWP grew by 11.3%. The Net Earned Premium, which measures the
premium retained after reinsurance and reserves for unexpired risks, grew by 17.1% at Rs. 8,206 crore as
against Rs. 7,010 crore during the previous year. The Combined Ratio for FY2020, as defined by Master Circular
on ‘Preparation of Financial Statements of General Insurance Business’ issued by the IRDAI, stood at 100.8%.

Your Company continued to retain the second position in terms of the top-line in the private sector and
improved its market share in the industry, to 6.8% in FY2020 compared to 6.5% a year earlier. Your Company
continues to pursue efforts to retain renewal business, without compromising quality of risk and minimum
profitability benchmarks. Your Company sold over 2.69 crore policies during FY2020 as compared to 2.07 crore
during the previous financial year. The number of claims reported in FY2020 were 57.7 lakh as against 26.83
lakh reported during FY2019.
Investments and Investment Income

The investment duration of the portfolio is actively monitored, keeping in mind the duration of liabilities,
through an Asset Liability Management model as well as solvency position. Your Company’s investment
philosophy is based on strong cash generation, backed by prudent investment of surpluses keeping in mind
the obligation to pay claims when they arise.
In line with the Company’s policy, provision has been created for impairment of the Company’s investment in
the commercial papers and bonds of a few large NBFCs on account of downgrading of its credit rating, default
in repayment on maturity and financial stress these Companies are going through.
The assets under management as at 31 March 2020 stood at Rs. 18,746 crore as against Rs. 17,237 crore as at
31 March 2019, an increase in investible surplus by Rs. 1,509 crore or 8.8%. The investment and other income
for FY2020 was Rs.1,386 crore as against Rs. 1,134 crore in the previous year.
Profits
Profit before tax (PBT) during FY2020 was Rs. 1,376 crore as compared to Rs. 1,152 crore during the previous
financial year. The profit after tax (PAT) for FY2020 was Rs. 999 crore as compared to Rs. 780 crore during the
previous financial year. The growth in PAT was mainly on account of higher realized investment gains and
lower Corporate tax rate..
Profit after tax over the last five years

(` in Crore)
999
1000 921
800 780
728
600 564
400
200
0
FY2016 FY2017 FY2018 FY2019 FY2020

Dividend
While your Company continues to be highly capitalised, no dividend has been recommended for FY2020 in
line with the directive from IRDAI on prudent management of financial resources of insurers in the context of
Covid-19 pandemic vide circular dated 24 April 2020.
Summary of Financials
(H In Crore)
Particulars FY2020 FY2019 % Change
Gross written premium (GWP) 12,833 11,097 15.6%

Net earned premium 8,206 7,010 17.1%
Underwriting results (11) 18 -161.1%
Profit before tax 1,376 1,152 19.1%
Profit after tax 999 780 27.6%
Claims ratio 70.7% 68.6% -2.1%
Combined ratio* 100.8% 96.7% -4.1%
Return on average equity 18.5% 16.2% 2.3%
* - Combined ratio is calculated according to the Master Circular on ‘Preparation of Financial Statements of General Insurance Business’
issued by the IRDA effective from 1 April 2013. Without the natural catastrophe, Combined ratio for FY2020 would have been 99.5%.
Capital, Solvency and Shareholders’ Funds

The Shareholders’ equity of your Company stood at Rs. 5,642 crore as at 31 March 2020 as against Rs. 5,164
crore as at 31 March 2019. Your Company has completed 12 consecutive years since the last capital infusion and
continues to be one of the most efficient users of capital in the private sector as measured by the ratio of gross
written premiums to share capital and by gross written premiums to shareholders’ equity. Your Company has
been able to improve its solvency ratio at 254% as at 31 March 2020, which is well above the regulatory
requirement of 150%.
Return on Equity
The return on average equity for your Company during FY2020 was 18.5% as against 16.2% in the previous
year.
Digital transformation
Your Company had launched a campaign “Caringly Yours”, which was in line with philosophy of taking its
service levels beyond just insurance and converting it from a “Push” product to “Pull”. The self-servicing app of
your Company, insurance wallet, has also been transformed to “Caringly Yours” app and it saw phenomenal
acceptance from patrons. It makes insurance purchase and servicing like inspection, claim processing and other
self-service functionalities across the insurance value chain extremely simple-easy-convenient for the
customers, partners and employees. It is remarkable to mention that it has got play store rating of 4.2.

The robustness of your Company’s IT infrastructure has stood the test of constrained working environment
during COVID-19 outbreak. Mobile computer assets were arranged for over 2,000 employees, including shifting
the desktop computers to some of the employees’ residences so that they could continue to provide services
by accessing various systems and database while working from home. It also put unprecedented stress on the
systems, which showed flexibility and scalability of IT architecture of your Company.
The unique 20-minute settlement for motor insurance and health insurance reimbursement claims has proven
its immense utility as it was found most useful in bringing relief to the customers during toughest times. Using
the Ezeetab app, your Company issued over 26 lakh policies during FY2020 which is one more step towards
enabling self-sufficiency for its distribution partners..
Recognition & Awards

Your Company won numerous awards during FY2020, out of which here is a brief highlight of some of the
major awards:
1. “Company of the year-General Insurance Award” at the 4th Annual Insurance Summit & Awards
2. “Domestic General Insurer of Year – India” at Insurance Asia Awards
3. “General Insurance Company of the Year” at India Insurance Summit & Awards
4. “Porter Prize Award” under the category of Creating Distinct Value
5. “Gold Winner for Non-Life Insurance Provider of the Year” at the Outlook Money Awards
6. “Prompt General Insurance Company” at the Economic Times Insurance Summit
Tapan Singhel, MD & CEO, featured as one of the top voices in LinkedIn Top Voices 2019 List for India second
time in a row.
Credit rating
Your Company maintained its credit rating of “iAAA” awarded by ICRA. This is the highest rating for claims
paying ability of a general insurance company.
IRDAI registration
Your Company has paid to IRDAI annual fees for FY2021 as specified by the IRDA (Registration of Indian
Insurance Companies) Regulations, 2000.
Directors and key managerial personnel

The details of the Directors/ Board are given in the Corporate Governance Report annexed to this report.
Key changes in the Board are however highlighted below:
Solmaz Altin resigned as Director with effect from 9 October 2019. Nanoo Pamnani passed away on 22 February
2020. Sanjay Asher ceased to be Independent Director with effect from 6 March 2020 on expiry of the term of
appointment. Rahul Bajaj and Dipak Poddar resigned as Director with effect from 1 April 2020.
Meleveetil Damodaran (DIN 02106990) was appointed as Additional Director with effect from 16 October 2019.
Anami Roy (DIN 01361110) and Shashi Kant Sharma (DIN 03281847) were appointed as Additional Directors
(Independent Directors) with effect from 13 March 2020. T S Vijayan (DIN 00043959) and S Sreenivasan (DIN
03206811) were appointed as Additional Directors (Non-independent Non-executive Directors) with effect from
1 April 2020.
Avais Karmali (DIN 07565946) ceased to be Alternate Director for Sergio Balbinot with effect from 16 July 2019
and was appointed as an Alternate Director for Sergio Balbinot (DIN 01629245) with effect from 18 July 2019.

The Independent Directors have submitted declarations stating that they meet the criteria of independence as
provided in section 149(6) of the Act.
Pursuant to the provisions of the Act, Niraj Bajaj (DIN 00028261) and Ranjit Gupta (DIN 00139465), Directors,
retire by rotation and, being eligible, have offered themselves for re-appointment as Directors at the ensuing
20th AGM. Meleveetil Damodaran, Anami Roy, Shashi Kant Sharma, T S Vijayan and S Sreenivasan will hold
office as Additional Directors up to the date of the ensuing AGM. The Company has received notices under
section 160 of the Companies Act, 2013 proposing candidature of the said individuals as Director liable to retire
by rotation at the ensuing AGM. Being eligible, they have offered themselves for such appointment.
Number of meetings of the Board

The Board of Directors met five times during the year. Detailed information about dates of meetings and
attendance of Directors thereat is given in the Corporate Governance Report annexed to this report.
Performance evaluation of the Board, its Committees and

Directors
In accordance with section 134(3)(p) of the Act formal annual performance evaluation of the Board, its
Committees and the Directors individually has been carried out in the following manner:
a) Rating sheets were filled by each of the Directors with regards to evaluation of performance of the Board,
its Committees and individual Directors (except for the Director being evaluated) for the year under review.
b) A consolidated summary of the ratings given by each of the Directors was then prepared, based on which
a report of performance evaluation was prepared by the Chairman in respect of the performance of the
Board, its Committees and Directors individually.
c) The report of performance evaluation so arrived at was then discussed in the meeting of the Board of
Directors.
d) The Nomination and Remuneration Committee reviewed the implementation and compliance of the
process of performance evaluation.
Directors’ Responsibility Statement

In accordance with section 134(3)(c) of the Companies Act, 2013 (‘the Act’) the Board of Directors wishes to
confirm that:
(a) in the preparation of the annual accounts, the applicable accounting standards have been followed along
with proper explanation relating to material departures, if any;
(b) the Directors have selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of
the Company as at 31 March 2020 and of the profits of the Company for that period;
(c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities;
(d) the annual accounts have been prepared on a going concern basis;
(e) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws
and that such systems are adequate and operating effectively.

Extract of the Annual Return

The extract of Annual Return prepared pursuant to section 92 (3) of the Companies Act, 2013 read with Rule 12
(1) of the Companies (Management and Administration) Rules, 2014 in the prescribed Form MGT- 9 is annexed
to this Report. This Report and accounts are being sent to shareholders excluding the said information. Any
shareholder interested in obtaining such information may write to the Company Secretary at the registered
office of the Company for a copy thereof.
Remuneration policy
Policy on remuneration of Directors, key managerial personnel and other employees, including criteria for
determining qualifications, positive attributes, independence of a Director and other matters provided under
section 178(3) of the Act, is placed on the Company’s website https://www.bajajallianz.com/download-
documents/other-information/Remuneration-Policy.pdf
The policy is directed towards a compensation philosophy and structure that will reward and retain talent and
provides for a balance between fixed and incentive pay reflecting short and long term performance objectives
appropriate to the working of the Company and its goals.
During the year under review, the policy was amended to provide for payment of profit related commission to
Independent Directors as may be approved by the Board of Directors upon recommendation of the Nomination
and Remuneration Committee within the overall limit prescribed under the Companies Act, 2013 and Insurance
Regulatory and Development Authority of India (Remuneration of Non-executive Directors of Private Sector
Insurers) Guidelines, 2016, as amended.
Related party transactions

As per section 177 of the Act, the Audit Committee of the Board of Directors approves the estimated related
party transactions of the Company at the beginning of every financial year. Related party transactions are
placed before the Audit Committee for noting on a quarterly basis. Related party transactions entered during
the year under review were in the ordinary course of business and on an arm’s length basis, thus not requiring
prior approval of the Board or the shareholders. During the year, there were no material contracts or
arrangements or transactions at arm’s length basis that needed to be disclosed in Form AOC-2 as required
under the Act. As per Accounting Standard (AS) 18 on ‘Related Party Disclosures’, the details of related party
transactions entered into by the Company are also included in the notes to the financial statements.
Material changes and commitments

There have been no material changes or commitments affecting the financial position of the Company, which
have occurred between the end of financial year of the Company and the date of this report.
Conservation of energy and technology absorption

The Company, being an insurance company, does not have any manufacturing activity. The Directors, therefore,
have nothing material to report on conservation of energy. However, the Company continues its efforts to
implement energy efficient solutions in various spheres of its activities.
Your Company, however, strives to employ latest technologies with a view to improve presence in digital
space. Your Company is increasingly deploying mobility solutions, analytics, cloud and other technological
innovations towards automation of processes to provide a competitive edge and impetus to its
intermediaries, employees and partners. It would also ensure faster services and better customer experience
and, more importantly, position the Company for future readiness. Your Company is focusing more towards
paperless journey as an initiative towards conservation of energy by adopting digital initiatives. Your
Company also implemented various security systems / tools to have enhanced information technology and
cyber security posture and arrest the leakages of organisational sensitive data / information.

Foreign exchange earnings and expenditure

Earnings in foreign currency Rs. 137.69 crore
Expenditure in foreign currency Rs. 369.87 crore
Risk management policy

A statement indicating development and implementation of risk management policy for the Company including
identification therein of elements of risk, if any, which in the opinion of the Board may threaten the existence
of the Company has been given in the Corporate Governance Report annexed to this report.
Corporate social responsibility (CSR)

During FY2020, your Company has spent the amount as required by section 135 of the Act on CSR activities /
projects in accordance with the CSR policy of the Company. Report on Corporate Social Responsibility Policy
developed and implemented by the Company on CSR initiatives taken during the year pursuant to section 134
and section 135 of the Act is given in annexure to this report.
Significant and material orders passed by the Regulators or

Courts
There were no significant and material orders passed by the Regulators or Courts or Tribunals during the year
under review impacting the going concern status of your Company and its operations in future.
Adequacy of Internal Financial Controls

Your Company has established an Internal Financial Control Framework as per the requirements of the
Companies Act, 2013. The Company has documented its internal financial controls considering the essential
components of various critical processes, physical and operational. This includes its design, implementation and
maintenance along with periodical internal review of operational effectiveness and sustenance, which are
commensurate with the nature of its business and the size and complexity of its operations. This ensures
orderly and efficient conduct of its business, including adherence to the Company’s policies, safeguarding of its
assets, prevention of errors, accuracy and completeness of the accounting records and the timely preparation of
reliable financial information.
The key components of the internal financial control framework include Entity Level Controls (ELC), Process
Level Controls and Review Controls. The Company undergoes review of internal controls by specialised third
party professional consultants across functions.
During the year under review, the internal financial controls with reference to the financial statements were
adequate and operating effectively.
There is no qualification, reservation, adverse remark or disclaimer made by the joint statutory auditors in their
report on Internal Financial Controls.
Particulars of employees
As required by the provisions of Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the names and other particulars of the employees are set out in the Annexure. This
Report and accounts are being sent to shareholders excluding the said information. Any shareholder interested
in obtaining such information may write to the Company Secretary at the registered office of the Company for a
copy thereof.

Disclosure under the Sexual Harassment of Women at Workplace

(Prevention, Prohibition and Redressal) Act, 2013
Your Company has complied with provisions relating to the constitution of Internal Complaints Committee under
the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. During the
year under review, five cases were filed pursuant to the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 and enquiries were conducted. All cases have been closed.
Corporate governance
A report on Corporate Governance as required under the Corporate Governance Guidelines for insurance
companies issued by IRDAI (Corporate Governance Report) is annexed to this report along with a certificate
from the Company Secretary.
Composition of committees
These details are provided in the Corporate Governance Report annexed to this report.
Establishment of vigil mechanism

The Company has established a vigil mechanism in the form of Whistle Blowing Committee for the employees
to raise concerns internally about possible irregularities, governance weaknesses, financial reporting issues or
other such matters of irregularities. The said vigil mechanism provides adequate measures to safeguard the
persons who take recourse to such vigil mechanism and in appropriate cases, the concerned person may
approach the Chairperson of the Audit Committee. The Audit Committee oversees the vigil mechanism of the
Company.
Implementation of Indian Accounting Standards (Ind AS)

IRDAI vide its Circular No. IRDAI/F&A/CIR/ACTS/023/01/2020 dated 21 January 2020 deferred implementation of
Ind AS sine die from originally planned year i.e. FY2021.
Disclosures under the Companies Act, 2013 / rules thereunder

• The Company is not required to maintain cost records pursuant to section 148 of the Companies Act, 2013
read with rules thereunder.
• Section 186 of the Companies Act, 2013 relating to loans, guarantees and investments, requiring, inter alia,
disclosure thereof in the financial statements does not apply to the Company.
• The Company does not have any subsidiary, joint venture or associate company.
• The Company has not accepted any deposits during the year under review.
Secretarial Standards of ICSI

The Company has complied with the applicable Secretarial Standards issued by the Institute of Company
Secretaries of India from time to time.

Statutory auditors
BSR & Co. LLP, Chartered Accountants (FRN: 101248W / W100022), the joint statutory auditors of the Company,
hold office up to conclusion of the 22nd AGM.
S R Batliboi & Co. LLP, Chartered Accountants (FRN: 301003E / E300005), the joint statutory auditors of the
Company, hold office up to conclusion of the 23rd AGM.
The Audit Report from the joint statutory auditors does not contain any qualification, reservation or adverse
remark or disclaimer.
During the year under review, there was no fraud reported by the joint statutory auditors to the Audit
Committee under section 143(12) of the Companies Act, 2013.
Secretarial auditor
Pursuant to section 204 of the Act, the Board has re-appointed Shyamprasad Limaye, Company Secretary in
Practice (FCS No. 1587, CP No. 572) to undertake the Secretarial Audit of the Company for FY2019.
A report from the secretarial auditor in the prescribed Form MR-3 is annexed to this Report. The same does not
contain any qualification, reservation or adverse remark or disclaimer.
Appreciation & Acknowledgment

The Board is grateful to the IRDAI and other regulatory authorities for their continued support.
Your Company’s performance during the year would not have been possible without the commitment and hard
work of the employees.
Your Directors take this opportunity to thank the promoters, Bajaj Finserv Limited and Allianz SE, for providing
strategic direction to and guidance in the working of the Company. The Board of Directors, is thankful to your
Company’s policyholders, agents, intermediaries and reinsurers for reposing their unstinted faith in your
Company.
For and on behalf of the Board of Directors of

Bajaj Allianz General Insurance Company Limited
Sanjiv Bajaj
Chairman
(DIN 00014615)
Pune, 15 May 2020

Annexures to the Directors’ Report for the year ended 31 March 2020

Annexures to the
Directors’ Report
for the year ended
31 March 2020

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Annual Report on Corporate Social Responsibility Activities

1. Brief outline of Company’s CSR Policy, including overview of projects or programs
proposed to be undertaken and a reference to the web-link to the CSR Policy and
projects or programs:
The Company has in place its Corporate Social Responsibility (CSR) Policy in line with the requirements of
Companies Act, 2013. The Policy has been approved by the Board of Directors and the same is placed on the
Company’s website (https://www.bajajallianz.com/download-documents/other-information/CSR-Policy.pdf)
The Company’s CSR Policy outlines the Company’s responsibility as a corporate citizen and lays down
the guidelines and mechanism for undertaking activities for welfare and sustainable development of the
community at large, including health-care, education, environment, etc. The CSR Policy of the Company
outlines the scope of CSR activities, modalities of execution of projects / programs, implementation through
CSR Cell / other vehicles of CSR implementation and monitoring assessment of CSR projects / programs.
The process for implementation of CSR programs involves identification of programs based on proposals
received through various channels, assessment of the project in terms of funding required, implementation
area and overall scope, due diligence of implementation agency and recommendation to the CSR
Committee. If found appropriate, the CSR Committee approves the proposal and amount of expenditure to
be incurred on the same within the overall limit approved by the Board.
2. Composition of the CSR Committee:

The CSR Committee of the Company comprises of the following Directors:
1) Sanjiv Bajaj, Chairman
2) Ritu Arora, Director
3) Ranjit Gupta, Director
4) Anami Roy
5) Tapan Singhel, Managing Director & Chief Executive Officer
Note: Nanoo Pamnani passed away and hence ceased to be member with effect from 22 February 2020.
3. Average net profit of the Company for last three financial years: `1,194 crore.
4. Prescribed CSR Expenditure (2% of amount as in Item No. 3 above): ` 23.88 crore.
5. Details of CSR spent during FY2019:

a. Total amount to be spent for the financial year: ` 23.93 crore.
b. Amount unspent: Nil
c. Manner in which the amount spent during the financial year is detailed below:

(H In Crore)
Amount
spent on the
Projects or projects or
programs programs Sub
(1) Local area heads:
or other ( Amount (1) Direct
2) Specify outlay Expenditure Cumulative
the state and
(budget) on projects or expenditure
district where
Name and details Sector in which projects or project or programs up to the
Sr. of Implementing CSR Project or activities the project is programs was programs (2) reporting
No. Agency identified covered undertaken wise Overheads period
Eradication
Funding support for
The Akanksha of poverty, Pune,
1. Pujya Kasturba Gandhi 1.5 1.4 1.4
Foundation Promotion of Maharashtra
English Medium Schools
education
Funding support for
Setting up
“Bajaj Majhi City
Center for Applied homes and
Swach City’ - Phase Aurangabad,
2. Research and hostel for 0.94 0.25 0.74
2 and “Bajaj Swach Maharashtra
People Engagement women and
Maharashtra Mission”
orphans
for 36 months
Funding support for Eradication
Foundation for
education of meritorious of poverty, Pune,
3. Excellence India 1.05 0.21 0.63
and financially needy Promotion of Maharashtra
Trust
medical students education
Setting up
Funding support
homes and
for construction of Pune,
4. Janaseva Foundation hostel for 2.25 0.5 1.5
rehabilitation center for Maharashtra
women and
street children
orphans
Funding support for Eradication
Jeevoday Education Jeevoday Special School of poverty, Nagpur,
5. 2.6 1.05 2.6
Society over a period of 27 Promotion of Maharashtra
months education
Lata Mangeshkar Funding support for Promoting
Medical children, especially from health care
Pune,
6. Foundation's economically weaker including 2 0.3 2
Maharashtra
Deenanath sections, suffering from preventive
Mangeshkar Hospital terminal disease/s. health care
Lata Mangeshkar Support to purchase Promoting
Medical the medical equipment health care
Pune,
7. Foundation’s to cater to increasingly including 0.55 0.05 0.55
Maharashtra
Deenanath volume and workload preventive
Mangeshkar Hospital of the Center health care
Lata Mangeshkar Expansion of Bajaj Promoting
Medical Allianz Center for health care
Pune,
8. Foundation’s Epilepsy to cater the including 5 3.51 3.51
Maharashtra
Deenanath increasing needs of preventive
Mangeshkar Hospital patients health care
Project support and
Eradication
pilot schools for
Lend A Hand India of poverty, Jammu &
9. J&K government to 1.69 0.35 1.65
(LAHI) Promotion of Kashmir
implement skill-based
education
education in schools
Funding support for
Eradication
comprehensive daycare
Mumbai Mobile of poverty, Mumbai,
10. programme for children 0.6 0.25 0.55
Crèche Promotion of Maharashtra
living on construction
education
sites

(H In Crore)
Amount
spent on the
the state and
district where
Funding support for cleft

Promoting
reconstructive surgeries
health care Selected
and rehabilitation of
11. Smile Train India including centres in 21 7 21
cleft patients by speech
preventive India
therapy and orthodontic
health care
treatment
Setting up
Funding support for homes and
Ahmednagar,
12. Snehalaya operating expenses of hostels for 1.5 0.5 1.25
Maharashtra
the adoption center women and
orphans
Setting up
homes and
Funding of operating Ahmednagar,
13. Snehalaya hostels for 0.35 0.1 0.3
expenses for Snehankur Maharashtra
women and
orphans
Promoting
Funding support for health care
Tata Memorial Mumbai,
14. medical treatment of including 3 1 3
Center Maharashtra
cancer affected children preventive
health care
Promoting
Funding support for health care
Tata Memorial Mumbai,
15. Pediatric Cancer Support including 2 0. 50 1.75
Center Maharashtra
Staff Project preventive
health care
Funding support to
Promoting Aurangabad,
conduct eye screenings
health care Pune,
and provide eyeglasses
16. Vision Spring including Wardha, 9 3.2 6.25
under See to Learn: See
preventive Pantnagar
to work: See to be Safe
health care and Sikar
program
“Every Village a Bio
Eradication
Village” - A Programme
M S Swaminathan of poverty,
17. to achieve sustainable Odhisa 1 0.9 0.9
Research Foundation Promotion of
human development
education
goals
Develop innovative,
participatory and
Eradication
durable services for
of poverty, Pune,
18. Parivartan Trust individuals with mental 1.69 0.7 0.7
Promotion of Maharashtra
health problems and for
education
vulnerable community
groups
Promotion of Setting up
Professional
comprehensive farm- homes and
Assistance for
19. based livelihoods hostel for Rajasthan 2.95 0.53 0.53
Development Action
through collectives in a women and
(PRADAN)
sustainable manner orphans

(H In Crore)
Amount
spent on the
the state and
district where
Eradication
Skill ability for the of poverty, Pune,
20. Samarthanam 0.2 0.1 0.1
disabled Promotion of Maharashtra
education
“Sustainable livelihood”
Eradication
enhancement of poor
of poverty,
21. Yuva Mitra and marginalized Sinner, Nashik 3.9 1.27 1.27
Promotion of
women through goat
education
rearing
Eradication
Institute ogf Triveni-A school Mental of poverty, Pune,
22. 0.33 0.2 0.2
Psychological Health Health Initiative Promotion of Maharashtra
education
Professional fees paid CSR
23. CSR Overheads - 0.3 0.06 0.3
to the CSR consultant Overhead
Total 23.93
Note: All amounts mentioned above as spent are spent through implementing agency.
6. In case the Company fails to spend the 2% of the Average Net Profit of the last
3 financial years, the reasons for not spending the amount shall be stated in the
Board report: Not applicable
CSR Committee’s Responsibility Statement

The CSR Committee hereby confirms that the implementation and monitoring of CSR Policy is in
compliance with CSR objectives and Policy of the Company.
Sanjiv Bajaj Tapan Singhel

(DIN 00014615) (DIN 03428746)
Chairman of Managing Director &
CSR Committee Chief Executive Officer
Date: 15 May 2020



Report on Corporate Governance

This report outlines the compliance of the Company to the Corporate Governance Guidelines of Insurance
Regulatory and Development Authority of India (IRDAI).and the Companies’ Act, 2013 in so far as it relates to
Corporate Governance.
As can be seen from this report, the Company’s governance practices and disclosures often go well beyond the
complying with the minimum statutory requirements stipulated in applicable law.
The various elements of the Corporate Governance framework, along with relevant details are described below:
Philosophy
The commitment of the Company and its promoters to the highest standards of corporate governance practices
predates the Companies Act and the insurance regulations. Ethical dealings, transparency, fairness, disclosure
and empowered accountability are the main thrust of the working of the Company.
Board of Directors
In keeping with good governance practice, the Company’s policy is to have an appropriate blend of executive,
non-executive and independent directors to maintain the independence of the Board and to separate the Board
functions of governance and management.
Composition of the Board of Directors
The Board of Directors consists of 14 Directors which include 4 Independent Directors. The CEO of the Company,
as the Managing Director, is executive member of the Board of Directors. All other Directors, including the
Chairman, are non-executive Directors.
The Managing Director, who is the only executive director, is a professional with vast experience in insurance
and he is unrelated to the promoters. There are two women directors on the Board.
Brief profiles of the Directors are as follows:
1.
Sanjiv Bajaj, Chairman, Bachelor’s degree in Engineering (Mechanical) with distinction from the University
of Pune, a Master’s degree in Science (Manufacturing Systems Engineering) with distinction from the
University of Warwick, U.K. and a Master’s degree in Business Administration from Harvard Business School,
U.S.A.He is currently the Chairman and Managing Director of Bajaj Finserv Ltd. He has vast experience in
variety of areas in business strategy, marketing, finance, investment, audit, legal and IT related functions in
automotive and financial services sectors. He is widely regarded as being among the top business leaders in
India’s financial services sector.
2.
Solmaz Altin, Non-executive and Non-independent Director (Please refer note 1), Graduate degree in Business
Administration and Economics from Gerhard-Mercator-University in Duisburg, Germany. He was the
Regional Chief Executive Officer, Asia Pacific and Board Member of the Allianz Asia Regional Executive Board
at Allianz SE. He was Chief Risk Officer and subsequently CEO of Allianz Turkey. He was also the Chief
Digital Officer of Allianz SE. He has vast experience in variety of areas including risk management, digital
transformation, venture capital investment and financial institution advisory.

3.
Ritu Arora, Non-executive and Non-independent Director, Post Graduate in Management from S. P. Jain
Institute of Management and Research, she completed ICWAI (Institute of Cost and Works Accountants)
and is a Lady Gold medalist from Osmania University in Bachelor of Commerce (Hons). She is the CEO and
CIO (Asia) and a member of global Allianz Investment Management (AIM) Board. AIM is responsible for
investments of Allianz insurance companies worldwide. AIM Asia hub, oversees investments of 20 entities
in 11 countries across asset classes: debt, corporates, equities and alternatives. She represents Allianz on the
steering committee of G7 Investor Leadership Network. She has over 24 years of leadership experience and
been the founding member of two very successful life insurance ventures in India. She was awarded World
Women Leadership Achievement Award by World Women Leadership Congress in 2016 and “Woman Leader
of Choice” Award by WILL in 2013.
4. Sanjay Asher, Independent Director (Please refer note 2), Bachelor’s degree in Commerce and a Bachelor’s
Degree in Law from the University of Bombay, Qualified Chartered Accountant and a Solicitor. He has over
thirty years of experience in the field of law and corporate matters. He is presently a senior Partner at
M/s Crawford Bayley and Co., and deals with corporate laws, mergers and acquisitions and capital market
transactions.
5. Niraj Bajaj, Non-executive and Non-independent Director, Bachelor’s degree in Commerce from Sydenham
College of Commerce and Economics, Mumbai and a Master’s degree in Business Administration from
Harvard Business School, U.S.A. He has been Chairman of Mukand Ltd. since 14 July 2007 and serves as
its Managing Director. He is one of the Promoters of the Bajaj Group. He was the President of Indian
Merchants’ Chamber, Alloy Steel Producer’s Association and Indian Stainless Steel Development Association.
6. Rahul Bajaj, Non-executive and Non-independent Director (Please refer note 3), Honours Graduate in
Economics and a Bachelor’s degree in Law and a Master’s degree in Business Administration from Harvard
Business School, U.S.A. He is considered as one of the most successful business leaders of India and heads
the Bajaj Group of Companies. He was awarded the ‘Padma Bhushan’ by the President of India in March
2001. He has immense experience, among others, in the auto and financial services sectors.
7. Dipak Poddar, Non-executive and Non-independent Director (Please refer note 4), Engineering graduate from
Massachusetts Institute of Technology, U.S.A. He serves as an Executive Chairman of Poddar Developers
Limited. He is also the Chairman of Monotona Securities Limited and Monotona Tyres Limited.
8. Sergio Balbinot, Non-executive and Non-independent Director, Economics and Business Administration
from University of Bologna. He is currently a Member of the Board of Management of Allianz SE and
responsible for the insurance business in the countries of Southern and Western Europe and Asia at Allianz
SE.
9. Meleveetil Damodaran, Non-executive and Non-independent Director (Please refer note 5), Graduate with
distinction in Economics and in Law from the Universities of Madras and Delhi respectively. He has in a
career spanning over 40 years, worked with the Union and the State governments in India, regulatory
bodies, investment institutions, banks, development financial institutions and with the private sector. He
has held regulatory and developmental positions in the Government and in India’s financial sector, before
demitting office as Chairman, Securities and Exchange Board of India. He was elected Chairman of the
International Organization of Securities Commissions (IOSCO)’s 80 member Emerging Markets Committee.
He was the Chairman of Unit Trust of India and Industrial Development Bank of India, where he successfully
led their turnaround efforts.
10. Ranjit Gupta, Non-executive and Non-independent Director, Fellow of the Institution of Engineering and
Technology, London. He is currently working as President – Insurance, at Bajaj Finserv Ltd. He has rich
experience in the automotive and financial services sectors.

11. Suraj Mehta, Independent Director, Honours Graduate in Economics from Calcutta University. He has held
key management positions in India and abroad with ANZ Grindlays Bank till the year 1994. Thereafter, he
was the Chief Executive Officer of Dresdner Bank AG in India and was the Geographic Head for the group’s
four businesses which included Investment Banking, Securities Broking and Software Development. He was
also the Chief Executive Officer of NABIL Bank Ltd., the largest private sector bank in Nepal.
12. Nanoo Pamnani, Independent Director (Please refer note 6), Bachelor’s degree in Arts (Honours) from Bombay
University (stood first in the University in Economic Major) and a Bachelor’s degree in Science (Economics)
from the London School of Economics (Majored in Economics and Econometrics). He was associated with Citi
Bank India (‘Citi’) for more than 35 years and was the CEO India and Regional Head, Sri Lanka, Bangladesh
and Nepal before taking charge as non-executive chairman of Citi. He had rich experience in the banking,
auto and financial services sectors.
13. Lila Poonawalla, Independent Director, Bachelor’s Degree in Mechanical Engineering from COEP, Pune.
Marketing management course at Harvard University, a Senior executive program at Stanford University
and a General management program at IMDR Management Institute, Lausanne, besides a Tier III program
at IIM Ahmedabad. She is the Chairperson of Lila Poonawalla Foundation and also former Chairperson and
Managing Director of Alfa Laval-Tetra Pak India. She was the Chairperson of the Board of Governors of
Indian Institute of Technology, Ropar. She has been presented the “Padmashree” award in 1989, Royal order
of the Polar star and Royal Order of the Polar Star – Commander 1st Class from the King of Sweden along
with numerous other national and international awards.
14. Anami Roy, Independent Director (Please refer note 7), Master’s degree in Arts and Master of Philosophy. He
is a distinguished former civil servant, having served in the Indian Police Service in Maharashtra and the
Government of India for over 38 years. He held a wide variety of assignments both in Maharashtra and
the Central Government including Commissioner of Police, Aurangabad, Pune and Mumbai, and retired
as Director General of Police, Maharashtra, commanding a 225,000 strong Force. He was appointed as an
Advisor to the Governor of Andhra Pradesh when the State was under President’s rule in 2014.
15. Shashi Kant Sharma, Independent Director (Please refer note 7), Bachelor of Science degree from University
of Allahabad, an M. A. in Political Science from Agra University and M. Sc. in Administrative Science and
Development Problems from the University of York (the UK). He served as the Comptroller and Auditor
General (CAG) of India from 23 May 2013 to 24 September 2017. Before taking office as the CAG, he was
the Defense Secretary, Government of India. He was also the Secretary, Department of Financial Services
(Ministry of Finance) and Secretary, Department of Information Technology (Ministry of Telecommunication),
in the Government of India. In all, he has over forty years of experience in public policy and management.
He was elected by the General Assembly of the United Nations as a Member of UN Board of Auditors in
July, 2014, and was chairing the UN Board of Auditors up to September, 2017. He was also active on the
Governing Boards of the International Organization of Supreme Audit Institutions and the Asian Organization
of Supreme Audit Institutions.
16. T S Vijayan, Non-executive and non-independent director (Please refer note 8), Special Graduate Degree from
Kerala University and Diploma in Management. He had a career spanning over three decades. He was the
Chairman of IRDAI and also the Chairman of LIC of India. As the Chairman, IRDAI, he was also there on the
Board of Institute of Insurance and Risk Management. He represented the Asian Region on the Executive
Committee of the International Association of Insurance Supervisors (IAIS), Basel, apart from being a
member of its Technical and Implementation Committees.
17. Avais Karmali, Non-executive and non-independent director Alternate Director for Mr. Sergio Balbinot,
Master of Science in Actuarial Science from HEC Lausanne Switzerland. He is currently working at the Allianz
SE Board Office responsible for Southern and Western Europe and Asia.

18. S Sreenivasan, Non-executive and Non-independent Director (Please refer note 9), B Sc (Physics, Mathematics
& Statistics) Chartered Accountant, Cost Accountant, Chartered Financial Analyst (CFA Institute, Virginia, USA)
and MBA from the Indian Institute of Management, Calcutta. He is currently CFO of Bajaj Finserv Limited and
overseeing the insurance subsidiaries of Bajaj Finserv Limited. He is a member of the Institute of Chartered
Accountants of India, holds an MBA from Indian Institute of Management Calcutta and is a member of the
CFA Institute, Virginia USA. He has overall experience of over 33 years spanning functional and general
management roles in insurance, corporate finance, taxation, portfolio management and investor relations.
19. Tapan Singhel, Managing Director & Chief Executive Officer, Banaras Hindu University alumnus M Sc in
Physics (Gold medalist). He started his career with a prominent PSU insurer as a direct Officer in 1991 before
joining the Company in 2001. He has been with the Company since its inception in 2001 and a part of the
core team formed to plan and execute the retail market strategy of the Company.
Notes (Changes in the Board of Directors):

1. Solmaz Altin resigned as Director with effect from 9 October 2019.
2. Sanjay Asher ceased to be Independent Director with effect from 6 March 2020 on expiry of the term of
appointment.
3. Rahul Bajaj resigned as Director with effect from 1 April 2020.
4. Dipak Poddar resigned as Director with effect from 1 April 2020.
5. Meleveetil Damodaran was appointed as Additional Director with effect from 16 October 2019.
6. Nanoo Pamnani passed away on 22 February 2020.
7. Anami Roy and Shashi Kant Sharma were appointed as Additional Directors with effect from 13 March 2020
8. T S Vijayan was appointed as Additional Director with effect from 1 April 2020.
9. S Sreenivasan has been appointed as Additional Director (non-independent non-executive director) with
effect from 1 April 2020.
Changes in the committees of the Board of Directors

1. Ramandeep Singh Sahni was appointed as Chief Financial Officer of the Company w.e.f. 1 May 2020 and as
member of Investment Committee with effect from that date.
2. Lila Poonawalla, member of Nomination and Remuneration Committee, was designated as Chairperson
thereof with effect from 13 March 20020 in place of Nanoo Pamnani.
3. Anami Roy was inducted as member of the Audit Committee, Corporate Social Responsibility Committee
and Nomination and Remuneration Committee with effect from 13 March 2020.
4. Shashi Kant Sharma was inducted as member of the Audit Committee with effect from 13 March 2020.
5. Suraj Mehta was inducted as member of the Nomination and Remuneration Committee with effect from 13
March 2020.

Board Meetings
The Board met five times during FY2020 as compared to the minimum statutorily required 4 meetings including
one meeting dedicated to strategy, planning and annual budget. The Board meets once in every quarter, to,
inter alia, review the Company’s quarterly and periodical financial results, regulatory issues, risks, business
plans and their implementation, solvency margin, etc. The gap between Board meetings is less than 120 days
as required by law.
In case of any matter requiring urgent approval of the Board, the approval is taken by passing resolution by
circulation.
The Board is provided, on a timely basis, detailed agenda papers in advance of the meetings. The agenda
items include, inter alia, minutes of previous meetings of the Board and Committees, business reviews, plans
and budget, quarterly / annual financial results, financial condition report, bonus to policyholders, investment
performance, approval / reviews of company policies, formation / reconstitution of Board Committees, etc.
Directors have separate and independent access to officers of the Company. The Independent Directors, in their
meeting held on 15 January 2020, have expressed satisfaction on the quantity, quality and timeliness of the
information supplied to the Board.
Board Meetings held during FY2020
The Board of Directors met five times during FY2020 on 8 May 2019, 17 July 2019, 16 October 2019, 16 January
2020 and 13 March 2020. Following table sets out the details of attendance of Directors at the aforesaid Board
meetings.
Name of Director Designation / Status No. of meetings attended
Chairman, Non-Executive and Non-

Sanjiv Bajaj
Independent Director 5/5
Solmaz Altin (up to 8 October 2019) Non-Executive and Non-Independent Director 0/2
Ritu Arora Non-Executive and Non-Independent Director 3/5
Sanjay Asher (up to 5 March 2020) Independent Director 4/4
Niraj Bajaj Non-Executive and Non-Independent Director 3/5
Rahul Bajaj (up to 31 March 2020) Non-Executive and Non-Independent Director 4/5
Sergio Balbinot Non-Executive and Non-Independent Director 1/5
Meleveetil Damodaran
(w.e.f. 16 October 2019) Non-Executive and Non-Independent Director 2/2
Dipak Poddar Non-Executive and Non-Independent Director 5/5
Ranjit Gupta Non-Executive and Non-Independent Director 5/5
Suraj Mehta Independent Director 5/5
Nanoo Pamnani (up to 22 February 2020) Independent Director 4/4
Lila Poonawalla Independent Director 5/5
Anami Roy (w.e.f. 13 March 2020) Independent Director 0/0
Shashi Kant Sharma (w.e.f. 13 March 2020) Independent Director 0/0
T S Vijayan (w.e.f. 1 April 2020) Non-Executive and Non-Independent Director 0/0
Alternate Director, Non-Executive and Non-
Avais Karmali
Independent 3/4
Tapan Singhel Managing Director and Chief Executive Officer 5/5

Independent Directors
The Board has 4 Independent Directors with rich and diverse experience in the relevant fields. The Independent
Directors conduct a separate meeting pursuant to the provisions of the Companies Act, 2013. Additionally, the
Independent Directors periodically meet the senior management team.
Committees of the Board of Directors: Constitution &

Composition
The Board of Directors has committees consisting of Directors having required expertise. The Committees also
invite other senior managers to its meetings to seek clarification and, thereby improving the effectiveness.
Audit Committee, Investment Committee, Risk Management Committee, Policyholders’ Protection Committee
and Nomination and Remuneration Committee which are mandatorily required under the Corporate Governance
Guidelines, have been constituted in accordance with the requirements set out therein. Further, the Company
has also formed Corporate Social Responsibility Committee of the Board of Directors as required pursuant to
Section 135 of the Companies Act, 2013.
Audit Committee
The Audit Committee of the Board of Directors oversees the internal audit function and conducts a detailed
review of the internal, concurrent, systems and other audit reports including reports of the statutory
auditors whereby detailed management responses and action plans are reviewed. The Committee further
reviews periodic financial reporting before submission to the Board, disclosure processes, legal compliances,
functioning of the internal financial control framework and the internal audit department whistle blower and
sexual harassment complaints. The Committee also reviews and approves the related party transactions.
Statutory auditors attend the meetings of the Audit Committee to present their findings and reports. The Audit
Committee is directly responsible for the recommendation of the appointment, remuneration, performance
and oversight of the work of the internal, statutory, concurrent and Investment Risk Management Systems and
Process (IRMS) auditors. The Audit Committee reviews and sets the internal audit plan for the year. The senior
management personnel are invited to the meetings of the Audit Committee for providing clarifications on the
audit matters, along with the Head of Internal Audit, who presents his report and update to the audit plan to
the Committee at every meeting thereof.
The Chairperson of the Audit Committee conducts pre-audit committee meeting about one week before the
Audit Committee meeting with the senior management to review the audit observations, action taken reports
on previous reports, and regulatory issues, if any.
Lila Poonawalla, Independent Director, is the Chairperson of the Audit Committee with Suraj Mehta, Anami
Roy and Shashi Kant Sharma, Independent Directors and Ritu Arora, Sanjiv Bajaj and Ranjit Gupta, Directors,
being the other members thereof. All the members of the Audit Committee are non-executive Directors, with
majority of them being Independent Directors.
The Audit Committee met four times during FY2020 on 7 May 2019, 16 July 2019, 15 October 2019 and 15 January
2020. Following table sets out the particulars of attendance of members of the Committee at the aforesaid
meetings:

Name of member Designation / Status No. of meetings attended
Lila Poonawalla Chairperson,Independent Director 4/4

Sanjiv Bajaj Non-Executive and Non-Independent Director 4/4
Suraj Mehta Independent Director 4/4
Shashi Kant Sharma (w.e.f. 13 March 2020) Independent Director 0/0
Investment Committee
The Investment Committee establishes the investment policy and operational framework for the investment
operations of the Company. It periodically reviews the investment performance and the market conditions
and recommends the investment policy for approval of the Board of Directors. The information provided to
the Committee is rich in content and discussions are extensive on key issues related to performance, risk,
regulatory compliance, systems and structure of investment teams.
Sanjiv Bajaj is the Chairman of the Investment Committee with Ritu Arora and Ranjit Gupta, Directors and Tapan
Singhel, MD & CEO, Gaurav Malhotra, Appointed Actuary, Ramandeep Singh Sahni, Chief Financial Officer, Rajeev
Kumar, Chief Risk Officer, and Amit Joshi, Chief Investment Officer being the other members thereof.
The Committee met four times during FY2020 on 7 May 2019, 16 July 2019, 15 October 2019 and 15 January
meetings:
Sanjiv Bajaj Chairman, Non-Executive and Non-Independent Director 4/4

Gaurav Malhotra Appointed Actuary 4/4
Milind Choudhari Chief Financial Officer 4/4
Rajeev Kumar Chief Risk Officer 4/4
Amit Joshi Chief Investment Officer 4/4
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 those
arising out of mis-selling by intermediaries and to ensure compliance with the statutory requirements relating
to servicing of policyholders. It reviews the Grievance Redressal Mechanism and the status of complaints at
periodic intervals. Service turnaround times, status of grievances and their resolution, root cause analysis of
complaints, benchmarking with peer group, status of cases in consumer court and ombudsmen are some of the
matters reviewed on a regular basis.

Sanjiv Bajaj is the Chairman of the Policyholders’ Protection Committee with Ritu Arora, Ranjit Gupta, Directors
and Tapan Singhel, MD & CEO, being the other members thereof. The Appointed Actuary, Chief Financial Officer
and Head of Operations and Lila Poonawalla (Customer Representative) are also invited to meetings of the
Committee.
The Committee met four times during FY2020 on 7 May 2019, 16 July 2019, 15 October 2019 and 16 January
meetings:
Chairman, Non-Executive and Non-Independent

Sanjiv Bajaj
Director 4/4
Nomination and Remuneration Committee
Pursuant to Section 178 of the Companies Act, 2013, the Company has formed the Nomination and
Remuneration Committee, 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, to formulate the
criteria for determining qualifications, positive attributes and independence of a Director, to specify the manner
for effective evaluation of performance of the Board, its committees and individual directors and review its
implementation and compliance, recommendation of remuneration policy for Directors, key managerial persons
and other employees, etc.
Lila Poonawalla, Independent Director, is the Chairperson of the Committee with Suraj Mehta and Anami Roy,
Independent Directors, Sanjiv Bajaj, Ritu Arora and Ranjit Gupta, Directors being the other members thereof.
The Committee met four times during FY2020 on 8 May 2019, 16 October 2019, 15 January 2020 and 13 March
meetings:
Lila Poonawalla Chairperson, Independent Director 4/4

Sanjiv Bajaj Non-Executive and Non-Independent Director 4/4
Suraj Mehta (w.e.f. 13 March 2020) Independent Director 0/0
Corporate Social Responsibility (CSR) Committee
Pursuant to Section 135 of the Companies Act, 2013, the Company has formed the Corporate Social
Responsibility Committee, with responsibility to formulate and monitor CSR policy of the Company, recommend
the amount of expenditure to be incurred on CSR activities, approve the projects for CSR activities, etc. The CSR
team also provides updates on various projects.

Sanjiv Bajaj is the Chairman of the Corporate Social Responsibility Committee with Ritu Arora, Ranjit Gupta,
Directors, Anami Roy, Independent Director and Tapan Singhel, MD & CEO being the other members thereof.
The Committee met three times during FY2020 on 17 July 2019, 16 October 2019 and 15 January 2020. Following
table sets out the particulars of attendance of members of the Committee at the aforesaid meetings:
Name of member No. of Meetings Attended No. of Meetings Attended
Chairman, Non-Executive and Non-Independent

Sanjiv Bajaj
Director 3/3
Disclosure on remuneration of Managing Director (MD) and Key

Management Persons
The Company has a Board approved policy on the remuneration structure of the Managing Director / Chief
Executive Officer / Whole-Time Director of the Company.
a) Objectives & Key Features of Company’s Remuneration Policy
The objective of the policy is that the remuneration structure and the quantum payable to the MD besides
being in compliance with the applicable regulatory requirements should also be competitive in the
insurance industry. The said policy sets out all aspects of the remuneration structure of the Managing
Director / Chief Executive Officer / Whole-Time Director of the Company including level and components of
remuneration, risk adjustment, remuneration in case of new appointment and revision of remuneration.
b) Design & Structure of the Remuneration Process
The Nomination and Remuneration Committee (NRC) considers the size and complexity of the Company
for comparison of salary levels prevailing amongst other insurance companies and other comparable
companies in financial services like NBFCs, banks and mutual funds etc. Benchmarking is undertaken
periodically in order to arrive at an optimum compensation to be recommended to the Board so as to
attract and retain the best talent.
c) Risks adjustment to and linkage of performance with remuneration
The remuneration process considers the current and future risk factors in terms of setting the targets and
evaluation criteria as well. Performance criteria, aligned with the annual operating plan, are set covering
quantitative measures as well as relevant qualitative and risk factors, based on priorities set by the Board
each year.
d) Elements of Remuneration of MD, other Directors & Key Management Persons
Independent Directors were paid sitting fees of Rs. 100,000 per meeting of the Board or committee thereof,
excluding Corporate Social Responsibility Committee, attended by them. Other than the MD, no other
Director of the Company is entitled to / paid any remuneration (excluding sitting fees as aforesaid) during
FY2020, as all other members of the Board are non-executive.
Elements of remuneration package (including incentives) of MD & CEO and Key Management Persons, along
with the break-up of amount of remuneration awarded to MD for FY2020 into fixed, variable, etc. is given in
the Annexure to this report..

Enterprise Risk Management (ERM) framework

Risk Objectives
Your Company operates in an environment that is continuously changing due to external pressures to quickly
adapt to new regulations and competition. Any business strategy entails risk. In all types of undertaking, there
is the potential for events and consequences that constitute opportunities for benefit (upside) or threats to
success (downside).
At your Company, ERM deals with risks and opportunities to create or preserve value. ERM as a process is
ongoing, effected by people (Board of Directors, Management and Employees), applied in setting strategy and
across the Company, designed to identify potential events (risks and opportunities) and manage the risks within
its risk appetite, to provide reasonable assurance regarding the achievement of the Company’s objectives.
Your Company is committed towards managing risks in line with its stated risk appetite through a systematic
framework which identifies, evaluates, mitigates and monitors risks that could potentially have a material
impact on the value of the organisation or potentially hinder the organisation in achieving its stated business
objectives and goals.
The risk management practices are aimed to address one or more of these risk management goals as given
below:
• Determine the risk profile/appetite of the Company;
• Ensure integration of risk considerations into decision-making processes including promotion of a strong risk
management culture supported by a robust risk governance structure;
• Determine the relevant processes and strategies for risk management which include identification of risks,
ongoing measurement and monitoring of risk exposures and ensuring relevant control or risk transfer;
• Develop and monitor mitigation plans for high risk items identified through the self-assessment mechanism
carried out by respective business functions, loss events and internal / statutory audit findings;
• To ensure adherence to all regulatory mandates as laid down by different regulatory authorities and all
critical internal policies/limits;
• Proactive and reactive approach to manage fraud;
• Minimising reputational risk as identified and assessed as part of a regular assessment and managed on a
case-by-case basis.
Risk Governance Framework
Effective risk management is based on a common understanding of risks, clear organisational structures and
comprehensively defined risk management processes. The management establishes and adheres to a risk
strategy and associated risk appetite for the Company’s business, which is derived from and consistent with
the business strategy. There is a defined risk governance framework in place to address the risk management
objectives of the Company. The risk governance structure of the Company consists of the Risk Management
Committee (RMC) of the Board and the Executive Risk Committee (ERC).
The risk strategy of the Company is to identify actual and potential threats to the Company on a short and
long-term basis internally and externally. The RMC oversees the functioning of the overall risk management
framework of the Company and implementation of the risk management strategy. The RMC has also been
vested with the responsibility to formulate, implement, monitor and periodically revise the Asset Liability
Management strategy of the Company. The RMC comprises of Sanjiv Bajaj as the Chairman, with Ritu Arora,
Ranjit Gupta, Directors and Tapan Singhel, MD & CEO being the other members thereof. The Chief Risk Officer,
Chief Investment Officer, Chief Financial Officer and Appointed Actuary are permanent invitees to all meetings
of the RMC.

The RMC met four times during FY2020 on 7 May 2019, 16 July 2019, 15 October 2019 and 16 January 2020.
Following table sets out the particulars and attendance of members of the Committee at the aforesaid
meetings:
Sanjiv Bajaj Chairman, Non-Executive and Non-Independent Director 4/4

The supervisory level ERC, convened by the Chief Risk Officer, comprises of various Heads of Departments,
which have been identified as the owners of key risks within the Company. They are responsible for
implementation of risk management activities including risk mitigation plan within their respective vertical/
department. This executive level committee ensures centralized risk monitoring and management. The quorum
of the meeting is one third of the total number of members of the committee. The ERC holds meetings on
regular basis generally every quarter. The committee may call for a meeting of the ERC if the needs arise and
may invite any person to the meeting.
Covering major categories of assessable risks, independent of the assessment methodology and quantifiability,
the risk management framework encompasses practices relating to identification, assessment, monitoring and
mitigation of these risks. The overall risks are divided into several categories, which are further subdivided
into major sub-categories. While the risk categories remain clearly distinct from each other, at the time of
assessment their interdependencies are taken into account.
Key Risks and their mitigation
1. Market risk and Asset Liability Management (ALM) risk arises from unexpected losses arising due to changes
in market prices or parameters influencing market prices or from changes to the net worth of assets
and liabilities in related undertakings driven by market parameters. The risk is mitigated by maintaining
a desired mix between debt and equity subjected to investment regulations by IRDAI, active asset
management based on the ALM output along with asset and liability duration matching which limits impact
of interest rate changes.
2. Credit risk or the risk of default of counter parties is sought to be mitigated by investing in securities with
minimum acceptable credit rating and reviewing changes in credit ratings. The Company also seeks to deal
with financially sound reinsurers.
3. Liquidity risk is monitored on a regular basis to ensure sufficient liquidity is maintained to meet short-term
obligations by timing the cash inflows and outflows through cash flow matching and by maintaining a
minimum mix of liquid assets.
4. Operational risk is mitigated by a system of internal audit, risk control assessments and fraud prevention
which flags off areas where risks are identified.
5. Insurance / business risk is sought to be mitigated by executing business operating plan and having a risk
and reward plan for new business, renewals, expenses, claims ratio and monitor actuals.
6. The Company has a Disaster recovery (DR) site in a different seismic zone and a business continuity plan to
mitigate Business Continuity risk.

Intentionally left blank
Certification for compliance of the Corporate

Governance Guidelines
I, Onkar Kothari, Company Secretary hereby certify that the Company has complied with the Corporate
Governance Guidelines for Insurance Companies issued by Insurance Regulatory and Development Authority of
India (IRDAI), as amended from time to time, and nothing has been concealed or suppressed.
For Bajaj Allianz General Insurance Company Limited
15 May 2020 Onkar Kothari

Pune Company Secretary & Compliance Officer

Form No. MR-3

Secretarial Audit Report
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
For the financial year ended 31 March, 2020
To,
The Members,
Bajaj Allianz General Insurance Company Limited,
(CIN U66010PN2000PLC015329)
Bajaj Allianz House, Airport Road,
Yerawada, Pune- 411006
I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence
to good corporate practices by Bajaj Allianz General Insurance Company Limited (hereinafter called as “the
Company”). Subject to limitation of physical interaction and verification of records caused by Covid 19
Pandemic lock down while taking review after completion of financial year, the Secretarial Audit was conducted
in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances
and expressing my opinion thereon.
Based on my verification of the Company, books, registers, papers, minute books, forms and returns filed and
other records maintained by the Company and also the information provided by the Company, its officers,
agents and authorised representatives during the conduct of secretarial audit, I hereby report that in my
opinion, the Company has, during the audit period covering the financial year ended on 31st March, 2020,
complied with the applicable statutory provisions listed hereunder and also that the Company has proper
Board-processes and compliance mechanism in place subject to the reporting made hereinafter:
I have examined the books, registers, papers, minute books, forms and returns filed and other records
maintained by the Company for the financial year ended on 31st March, 2020, according to the provisions of:
1. The Companies Act, 2013 (the Act) and the rules made thereunder;
2. Foreign Exchange Management Act, 1999 and the rules and regulations made there under regarding Foreign
Direct Investment;
3. The Insurance Act, 1938, the Insurance Regulatory and Development Authority Act, 1999 and rules and
regulations made thereunder;
4. Rules, regulations, guidelines, circulars and notifications issued by the Insurance Regulatory and
Development Authority of India (IRDAI) as are applicable to a general insurance company.
The Company is a unlisted public company and subsidiary of a listed company.
I have also examined compliance with the applicable clauses of the Secretarial Standards pursuant to Section
118(10) of the Act, issued by the Institute of Company Secretaries of India.
During the period under review the Company has complied with the applicable provisions of the Act, Rules,
Regulations, Guidelines and Standards mentioned above.

I further report that the Board of Directors of the Company is duly constituted with proper balance of executive,
non-executive and independent directors. The changes in the composition of the Board of Directors that took
place during the period under review were carried out in compliance with the provisions of the Act.
Adequate notices were given to all Directors to schedule the Board Meetings, including committees thereof,
alongwith agenda and detailed notes on agenda at least seven days in advance, and a system exists for
seeking and obtaining further information and clarifications on the agenda items before the meeting and for
meaningful participation at the meeting by the directors. The decisions are carried unanimously.
I further report that there are adequate systems and processes in the Company commensurate with the size
and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and
guidelines.
I further report that during the audit period there was no event/action having major bearing on the Company’s
affairs in pursuance of the above referred laws, rules, regulations, guidelines and standards.
Place: Pune Shyamprasad D. Limaye

Date: 15 May 2020 FCS No. 1587 C P No.: 572
UDIN : F001587B000244313

Management Report for the financial year ended 31 March 2020

Management
Report for the
Financial Year
ended
31 March 2020

The Management Report has been prepared in accordance with the Insurance Regulatory and Development
Authority (‘IRDAI’) (Preparation of Financial Statements and Auditors’ Report of Insurance Companies)
Regulations, 2002, and circulars/guidelines issued by IRDAI thereafter, for the financial year ended 31 March
2020.
With respect to the operations of Bajaj Allianz General Insurance Company Limited (“the Company”) for the year
ended 31 March 2020 and results thereof, the Management of the Company confirms and declares that:
1. Certificate of registration
The Company has paid to the Insurance Regulatory and Development Authority of India (IRDAI) the annual
fees for FY2021 as specified by the IRDA (Registration of Indian Insurance Companies) Regulations, 2000, as
amended and the registration certificate granted by IRDAI is in force as on the date of this report.
2. Statutory liabilities
All dues payable to the statutory authorities have been duly paid except those under dispute where the
Company has preferred appeals.
3. Shareholding pattern and transfer of shares

The shareholding pattern is in accordance with the statutory and regulatory requirements and no shares
have been transferred during the year.
The shareholding pattern of the Company is as follows:
Particulars 31 March 2020 31 March 2019
Bajaj Finserv Limited 74% 74%

Allianz SE 26% 26%
Total 100% 100%
4. Investments outside India

The Management has not invested any funds of holders of policies in India, directly or indirectly, outside
India.
5. Solvency margin
We hereby confirm that the Company has maintained adequate assets to cover both its liabilities and
required solvency margin as prescribed under Section 64VA of the Insurance Act, 1938 (amended by the
Insurance Laws (Amendment) Act, 2015) and the IRDAI (Assets, Liabilities and Solvency Margin of General
Insurance Business) Regulations, 2016. The solvency position of the Company is as follows:
Actual solvency ratio 254% 255%

Required solvency ratio 150% 150%

6. Valuation of assets in the Balance Sheet

We certify that the values of all the assets have been reviewed on the date of Balance Sheet and in
Management’s belief, the assets set forth in the Balance Sheet are shown in the aggregate at amounts not
exceeding their realizable or market value, under the several headings - “investments”, “agents’ balances”,
“outstanding premiums”, “income accrued on investments”, “dues from other entities carrying on insurance
business, including reinsurers (net)”, “cash and bank balances” and several other items specified under
“advances recoverable” except debt securities.
At 31 March 2020 the market and book value of these debt investments were as follows:
(H ‘000)
Value as per Balance Sheet (Book value) Market value*
Particulars 31 March 2020 31 March 2019 31 March 2020 31 March 2019
Debt investments 166,435,739 151,755,948 171,171,553 152,452,189
* Market value for government securities is the price obtained from FIMMDA and for debt securities other than government securities
is determined using bond valuer from FIMMDA, basis the yield of the security.
7. Overall risk exposure and strategy adopted to mitigate the

same
The Enterprise Risk Management (ERM) framework of Company inculcates a rigorous, proactive, responsible
and balanced enterprise-wide risk management to support in informed decision making. The Company
considers and embeds the Corporate Governance Guidelines and other practices guided by IRDAI from time
to time. The Company’s ERM also draws upon the ISO 31000:2018 standard which is a world recognised
methodology for risk management. The Company has in place a risk management process which, inter alia,
identifies major risks that the Company is exposed to and sets out action plans for mitigation of such risks.
The Company has been certified for its Operational Risk Framework process in conformation to the globally
recognised ISO 9001:2015 standard that signifies the processes are benchmarked against international as
well as domestic practices and are efficiently implemented within the Company.
The Company has a multi-layer reinsurance program which seeks to optimize the retention of risk at each
policy level as well as at the level of lines of business. The Company’s retention of risks varies according
to lines of business and is decided after considering relevant factors such as capital and solvency position,
available reinsurance capacity and adequacy of reinsurance terms. The automatic reinsurance program
of the Company is designed as multi-layer treaties combining proportional reinsurance (where the
Company and the reinsurer share the premiums and claims in an agreed proportion) and non-proportional
reinsurance. The limits under the treaties are set based on accumulation of risks by location and category,
after considering the exposure based on Probable Maximum Loss, where applicable, and the expected
frequency of claim events. The Company is exposed to catastrophe risk, which is mitigated by a separate
non-proportional reinsurance treaty, which limits the Company’s exposure to any single covered event.
In addition to treaties, the Company also purchases, where required, on a case-to-case basis, facultative
reinsurance for specific policies, where either treaty limits are inadequate or the risk is not covered by the
terms of the reinsurance treaties. The reinsurance program of the Company is filed with the IRDAI.

Risk governance
The Company has a dedicated and independent risk management department headed by the Chief Risk Officer
who reports on status of risks to the Executive Risk Committee (“ERC”) and Risk Management Committee
(“RMC”) of the Board. The quarterly Committee meetings allow dedicated evaluation and review of existing
strategies to mitigate the risks. The Company also has established a Governance & Controls Committee (“GCC”)
to promptly address process improvement decisions and support in enhancing business resiliency for embracing
change and create opportunities. The RMC advises the Board on the risk exposures and the actions taken to
manage the same. The ERC consisting of various departmental representatives, convened by the Chief Risk
Officer, reviews risks as well as the risk processes and procedures with the Board approved Risk Management
Policy. The Company has an independent Internal Audit Department which audits the operations of its offices
and functions. Key operational risks and compliances are audited according to an audit plan approved by the
Audit Committee of the Board of Directors. Valuation of policy liabilities is independently done by the Actuary
and the methodologies are also reviewed by IRDAI apart from the peer-review mechanism.
Risk management process
The Company has adopted the three lines-of-defence model for fostering proactive and risk-aware culture.
Heads and functional teams constitute the first line of defence that actively ensure effectiveness and relevance
of the mitigation controls, process improvements and system capabilities and subject to Internal Financial
Control mechanism. The second line of defence includes the risk management, compliance, fraud investigation
team followed by Audit & Assurance teams in the third line of defence.
Risk Management Cycle is applied as base for identification and solution tool that entails:
Operations & Monitoring
a) Risk Identification
b) Risk Assessment & Control
c) Risk Treatment & Management Action Plan
d) Monitoring & Reviewing
Controls & Compliance
a) Standard Operating Procedures

b) Internal Audit
c) External Audit
d) Periodic Risk Management Review
Risk Control Assessments that factor in multiple sources of risk related inputs are conducted periodically to
enrich and build on the previous risk registers in consideration of the changes to functional process. Risk
Review process involves segregating between control types, undertaking control testing for key areas to
evaluate mitigation effectiveness, understanding the level of residual risks, examining loss events and
assigning Key Risk Indicators towards a comprehensive risk rating mechanism and aggregated risk repository
for profiling based on likelihood and impact. Risk assessment methodology applied to report on the systemic
and correlated risks is based on Occurrence Likelihood x Probable Financial Impact x Outrage (Reputation, public
perception).
The Company follows the Top Risk Assessment (“TRA”) methodology to identify, measure and assess residual
risks along with Bottoms-Up Approach from conducting periodic Risk Control Assessments.

Key risks: As a general (non-life) insurer, the Company is exposed to a variety of risks. The primary risks are
that of frequency of claims as measured by the number of claims in relation to number of policies outstanding
and severity of claims as measured by the average amount per claim. The frequency and severity risks vary
according to the lines of business. Key risks include:
Risks arising from our
Risks accepted from our customers Risks from our investments business operations
In Non-Life Insurance majority of Income generated through approved Operational risk is the losses
products are offered for a 1 year period investments has been the prime source for arising from inadequate or failed
exposing to pricing & reserving risks, insurance companies in ensuring settlement internal processes, people and
underwriting (risk selection), claims of policyholder claims. We hence ensure the systems or external events
experience, risks from lower growth exposure to the capital markets is managed including legal risk and regulatory
rate for new and renewal business. prudently by the investment strategy and changes.
portfolio management.
Product bouquet include Non-Motor Operational failures of severe
(like Property, Engineering, Marine, Investing in different assets to meet our nature may impact our customers
Misc. etc.), Motor, Health, Crop and obligations to our customers in respect directly leading to reputational
Travel. to Riskto-Return balance we are exposed damage amongst the customers,
to credit default risk and market risks intermediaries, partners and
Some of the products like workmen’s (interest-rate movements, portfolio value regulators.
compensation, third-party motor claims fluctuations and mis-match in assets &
and liability insurance usually have liabilities). This includes business continuity
a long tail claims experience and as management and fraud risks.
per court orders, requires providing Liquidity risk is the inability to pay claims
for funds accordingly to meet the as and when they fall due, on account of
contractual obligations arising from the insufficient funds or investments tied up in
policies. illiquid asset class.
The key risks faced by the Company can broadly be categorized as below:
Risk type Risk preference Mitigations
A. Insurance risk
• Premium pricing • Channel and Line of Business wise • Risk segmentation for identifying profitable
analysis is conducted to monitor business segments
• Reserving mix
• Monitoring key performance indicators
• Underwriting • Periodic reserving calculations and
assumptions are validated for relevance • Specifying deductibles for high risk
• Claims and accuracy for predicting claims severity
management and frequency • Tracking concentration and accumulation
• Catastrophe • Portfolio level insurance are preferred in • Run Nat Cat models on exposures for different
underwriting corporate programs perils
• Business mix –
acquisition and • We maintain adequate Actual Solvency • Stringent policy terms & conditions
retention Margin over the 150% regulatory
requirementt • Appropriate treaty and facultative coverage’s in
• Capital structure Reinsurance program
• Solvency • Asset-Liability modelling
• Liquidity • Stress Testing and Sensitivity analysis for

liquidity scenarios
• Solvency and Capital Management

B. Credit Risk
• Default • Prudent investment strategy to diversify • We have a well-diversified investment portfolio

credit risk exposure and healthy asset quality
• Reinsurance
• Adequate predictability modelling of • Investment limits and thresholds
• Recoveries future cash inflows and outflows allows
us to allocate funds in durations that • Assets invested in either sovereign or AAA/ AA
allow for better return over periods rated instruments.
• Reinsurance decisions based on • Reinsurance protection from reinsurers with

risk retention appetite and capacity good credit rating (A- and above)
determined from business growth plans
• Risks are passed to multiple reinsures in order
to avoid accumulation of risk
C. Market Risk
• Unfavourable • Assets and Liabilities of the Company are • Investments are carried out within the
movement in well matched based on duration regulatory threshold limits
interest rates,
currency rates • We have exposure to market risk but the • We have very limited exposure to equity and
and equity expertise of the investment management foreign currency
team and conservative approach to
• Volatility in investments allows the risk to be fairly • Majority of the investments comprise of fixed
market prices well managed interest securities
• Reinvestment • Adequate liquid and reserves are maintained
• Asset class diversification

D. Operational Risk
• People • We continue to develop system-based • Dedicated Operational Risk Management

risk tools in-house for a move towards framework for continued Enterprise-wide
• (incl. conduct) integrated risk management methodology resilience
• Process • To continue to lower operational risk is • Mapping of department RCAs, KRIs and internal
priority that allows for taking opportunity Loss Event database for corrective action and
• Systems and curb preventable losses preventive treatment
• Regulatory • We work on preventing frauds through the • Event based root cause analysis for design level
fraud risk management framework that flaw or operating level failure
• Legal includes fraud analytics model & tracking
mechanism to reduce insurance frauds • Fraud Strategy encompasses Prevention;
• Reputation Detection; Deterrence, Response and awareness
• We have a strong Information Technology plan whilst maintaining an ethical culture and
• Business Governance Controls model to address conduct code in investigations
resilience Technology risks, data and information
security measures and safety mechanisms • System based triggers for fraud detection and
• Security – Cyber against cyber-threat prevention
& Data
• We select our vendors based on their • Help determine Risk Appetite / tolerance
• IT General resiliency to support us in ensuring we limits to develop “alert systems” for senior
Controls (ITGC) meet and exceed customer expectations management
• Third-Party • We attend to customer issues promptly • Risks rating based on movements and maturity
through our customer focus channels levels for proactive risk management rather than
• Frauds reactive
• We transfer specific insurable risks to the
• External threats insurance market for adequate coverage’s • Business Continuity Management Systems
and optimal premium. in place and drills for various scenarios are
conducted
• We have an offsite disaster recovery centre for

its data backups
• We assess our counterparties and key vendors

to avoid disruption and help them inculcate best
internal control practices
• Teams monitor for possible reputational risks

across various media channels including print,
social media etc.
The Company was exposed to an unprecedented risk of COVID-19 pandemic outbreak in March 2020. The
pandemic has had significant impact almost all countries across the world. The Company, in anticipation of
possible interruption to its business services across locations in India, had activated business continuity plans
(BCP) and procedures to ensure stakeholder expectations and requirements are suitably addressed. Having
a robust BCP and awareness in place helped the Company to continue operating business functions without
interruption. Furthermore, the Company has been focussing on enhancing the plans based on developments
and in consideration to government orders as well as regulatory advisories.

8. Operations outside of India

The Company does not have operations in any other country.
9. Claims
The settlement time for claims depends on various factors pertinent to respective lines of business, such
as cause of loss, the nature of claim, etc. Typically, claims which result in total or partial destruction of
assets or records (such as those caused by Acts of God), those where adequate documentation to assess
the claims are awaited and those which are the subject matter of judicial processes (such as motor
third party insurance claims) tend to have longer settlement times, which are beyond the control of the
Company. The Company has internal processes for regular review of such claims paid and outstanding.
Ageing of claims indicating the trends in average claim settlement time during the preceding five years is
given in Annexure I and ageing analysis of claims registered and not settled (excluding provision for IBNR
/ IBNER and claims relating to inward re-insurance from terrorism pool and the Indian Motor Third Party
Insurance Pool) is given in Annexure II to this Report.
10. Valuation of Investments

As required by IRDAI (Preparation of Financial Statements and Auditor’s Report of Insurance Companies)
Regulations 2002, all investments are valued as stated below:
• Debt Securities and Non-convertible Preference Shares: All debt securities (except for Additional Tier 1
(Basel III Compliant) Perpetual Bonds (“AT1 Bonds”)) including government securities and non-convertible
preference shares are considered as ‘held to maturity’ and accordingly stated at historical cost adjusted
for amortization of premium or accretion of discount on constant yield to maturity basis in the Revenue
account and Profit and Loss account over the period of maturity/holding.
• AT1 Bonds shall be forming part of Equity, market valuation of AT1 Bonds are at applicable Market Yield
Rates published by any rating agency registered with Securities Exchange Board of India (SEBI).
• Money market instruments (including treasury bills, certificate of deposits, commercial papers,
collateralized borrowing & lending obligation – CBLO and Tri-Party Repo - TREPs) are valued at historical
cost and adjusted for amortization of premium or accretion of discount, as may be the case, over the
period of maturity/holding on a straight-line basis.
• Equity shares: Listed and actively traded securities are stated at the last quoted closing price on the
National Stock Exchange of India Limited (NSE). In case the equity shares are not listed on the NSE, then
they are valued on the last quoted closing price on BSE Limited. Unrealized gains or losses are credited /
debited to the fair value change account. Unlisted equity shares are stated at historical cost.
• Mutual Fund Units: Mutual fund units are stated at their Net Asset Value (‘NAV’) at the Balance Sheet
date. Unrealized gains or losses are credited / debited to the fair value change account.
• Loans – In the nature of Investments are stated at historical cost.
• Fair Value Change Account: Fair value change account represents unrealized gains or losses in respect
of investments in equity securities and mutual fund units and AT1 Bonds outstanding at the close of the
year. The Balance in the account is considered as a component of Shareholders’ funds and Policyholders’
funds, as the case may be, in the Balance Sheet but not available for distribution as dividend.

11.Review of asset quality and performance of investments

All investments are made in accordance with the regulatory norms, the Investment Policy and the asset
liability management guidelines.
(a) Asset composition
Most of the Company’s investments are in fixed income securities, deposits and equities. The fixed
income securities are mainly approved Government securities and bonds rated AA and above. The
primary aim while investing is to generate adequate return while minimizing risk. The emphasis is also
on the liquidity of investments to ensure that the Company meets all its obligations related to Claims and
other operations. The Company monitors the cash position on daily basis and seasonal liquidity needs
are considered while planning maturities of investments in respect of all assets. Based on the past track
record, the Management has reasonable confidence in the quality and expected performance of all the
investments.
The asset composition of investment assets of the Company as at 31 March 2020 is as follows:
(H ‘000)
Total investments
Asset class Amount %
Government securities 79,833,606 43.6%

Debenture and bonds
- AAA 76,465,824 41.8%

- AA / AA+ 1,282,489 0.7%
- AA - & Below 1,804,404 1.0%
Money Market Instruments 6,066,663 3.3%
Fixed Deposits 250,000 0.1%
Equities 10,549,183 5.8%
AT1 Bonds 4,185,096 2.3%
Equity ETF 1,875,576 1.0%
Others1 732,752 0.4%
Total 183,045,594 100.0%
1 Includes investment in Preference Shares
The Company has invested in well diversified investment portfolio. Substantial portion of the investments
are readily marketable thereby extending good liquidity support.
The Company maintains a strong quality of fixed income portfolio at all point of time. 98% of the fixed
income portfolio is held in highest credit rated securities (Sovereign/AAA or equivalent). 83% of the total
equity investments are held in Nifty 50 index stocks.
The Company has during the year made an impairment provision of Rs. 128.66 crore as per Impairment
Policy. These exposures pertain to certain stressed NBFCs.

(b) Investment performance
The performance of investments for FY2020, is as follows:
FY2020 FY2019
Particulars Book value yields Market value yields Book value yields Market value yields
Including impairment 7.94% 7.87% 7.54% 8.34%

Excluding impairment 8.66% 8.58% 7.91% 8.72%
Notes:
* Market Value yields computed as investment income/monthly average investment
# Book value yields computed as investment income/monthly average investment
12. Payments made to parties in which Directors are interested

The schedule of payments which have been made to individuals, firms, companies and organizations in
which the Directors of the Company are interested is given as Annexure III.
13. Management responsibility statement

The Management of the Company certifies that:
a) The financial statements of the Company have been prepared in accordance with the applicable Account-
ing Standards and principles and policies with no material departures;
b) The Management has adopted accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of the
affairs of the Company at the end of the financial year and of the operating profit and of the profit of the
Company for the year;
c) The Management has taken proper and sufficient care for the maintenance of adequate accounting records
in accordance with the applicable provisions of the Insurance Act, 1938 and Companies Act, 2013 for
safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) The financial statements have been prepared on a going concern basis;
e) The Management has set up an internal audit system commensurate with the size and nature of the
business and the same was operational throughout the year.

For and on behalf of the Board of Directors of

CIN U66010PN2000PLC015329

Sanjiv Bajaj Lila Poonawalla Tapan Singhel
Chairman Chairperson of Managing Director &
DIN : 00014615 Audit Committee Chief Executive Officer
DIN : 00074392 DIN : 03428746
Ramandeep Singh Sahni Onkar Kothari

Chief Financial Officer Company Secretary &
Compliance Officer
Pune
Date: 15 May 2020

Annexure I: Average Claims Settlement Time during Preceding

5 Years
(H In Lacs)
FY2016 FY2017 FY2018 FY2019 FY2020

No of No of No of No of No of
Particulars Claims Amount Claims Amount Claims Amount Claims Amount Claims Amount
01 FIRE
Upto 30 days 2,797 969 1,405 838 1,537 673 3,791 4,327 3,106 6,863
30 days to 6 months 6,874 9,050 1,496 7,011 1,557 4,332 2,745 9,756 2,609 10,711
>6 months to 1 year 2,954 5,854 845 9,065 500 8,468 705 10,592 672 9,967
>1 year to 5 years 1,038 21,185 2,305 8,385 2,293 8,120 1,325 11,040 483 10,773
>5 years and above 38 176 47 91 66 334 134 387 55 1,302
02 MARINE
Upto 30 days 6,519 1,009 9,982 1,139 9,242 955 35,435 1,857 15,094 2,598
30 days to 6 months 4,598 3,636 4,806 3,509 4,234 3,362 6,278 5,269 4,275 4,694
>6 months to 1 year 645 2,657 751 2,798 514 1,421 635 4,256 729 2,477
>1 year to 5 years 283 2,151 388 1,906 545 5,152 305 1,815 258 851
>5 years and above 17 16 48 103 113 82 35 43 43 75
03 MOTOR OD
Upto 30 days 420,337 65,770 430,446 69,834 397,773 57,909 513,745 70,467 493,517 77,324
30 days to 6 months 87,509 60,187 72,732 53,200 92,215 46,913 71,186 44,895 63,136 47,647
>6 months to 1 year 5,266 5,612 4,049 6,469 4,571 6,808 4,041 6,972 3,501 6,060
>1 year to 5 years 1,765 1,488 1,435 1,362 1,391 1,229 1,317 1,425 740 1,180
>5 years and above 331 129 392 201 548 145 1,342 300 217 249
04 MOTOR TP
Upto 30 days 5,007 292 5,674 63 4,567 75 5,042 190 285 120
30 days to 6 months 6,951 3,083 5,717 1,601 5,311 1,004 6,140 1,153 6,938 2,151
>6 months to 1 year 5,028 5,591 4,338 4,243 5,370 3,690 4,563 3,381 4,742 6,410
>1 year to 5 years 17,058 29,048 13,623 24,087 18,135 27,107 13,789 36,095 12,798 39,999
>5 years and above 7,109 10,126 7,301 11,354 9,464 14,412 8,796 22,164 6,526 20,299
05 HEALTH
Upto 30 days
121,711 36,687 249,051 43,598 448,722 62,210 1,563,984 109,664 1,061,397 137,915
30 days to 6 months 44,574 19,030 65,643 26,600 80,046 27,787 135,098 53,727 133,919 51,419
>6 months to 1 year 3,015 1,605 4,198 1,753 4,521 1,701 8,783 3,158 6,812 3,129
>1 year to 5 years 982 716 1,496 938 1,759 770 2,980 1,269 1,692 1,472
>5 years and above 146 (2) 194 22 401 32 85 70 41 80
06 OTHER
Upto 30 days
53,692 56,235 36,914 6,748 73,906 82,228 240,213 86,823 3,120,901 162,405
30 days to 6 months 27,680 22,246 54,042 25,065 100,679 31,459 85,173 52,737 468,221 48,356
>6 months to 1 year 6,079 4,033 9,243 4,882 10,401 5,019 6,200 20,203 29,569 8,320
>1 year to 5 years 2,047 3,639 2,601 6,939 7,488 6,617 5,216 11,130 1,811 6,429
>5 years and above 537 621 514 294 829 514 643 975 318 679
Note: The above includes partially settled claims and on-account payments made.
Annexure II: Ageing analysis of Claims registered and not settled

(H 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
As at 31 March 2020
Upto 30 days 183 1,986 1,209 489 6,735 5,469 934 4,849 13,987 3,802 95,685 5,692 118,733 22,287
30 days to 6 months 401 6,290 305 1,422 5,512 11,629 5,954 38,746 10,257 1,589 53,552 6,332 75,981 66,008
>6 months to 1 year 395 2,382 287 446 762 2,394 5,001 34,692 332 383 13,492 2,728 20,269 43,025
>1 year to 5 years 1,160 3,388 1,273 1,867 1,288 3,387 20,732 121,922 528 1,814 4,330 5,021 29,311 137,400
>5 years and above 896 3,088 323 1,301 996 2,324 16,165 34,732 134 410 2,522 3,305 21,036 45,160
As at 31 March 2019
Upto 30 days 179 1,466 347 669 4,331 4,438 1,113 5,161 39,332 6,430 34,802 2,791 80,104 20,955
30 days to 6 months 436 4,890 1,061 2,119 2,980 6,706 4,672 23,366 10,743 4,155 10,447 4,645 30,339 45,883
>6 months to 1 year 255 2,923 215 586 359 1,056 4,434 22,843 1,775 1,217 2,545 1,615 9,583 30,239
>1 year to 5 years 1,730 2,733 751 1,457 1,113 2,641 21,339 109,413 423 1,693 2,711 3,703 28,067 121,641
>5 years and above 356 2,478 240 947 847 1,893 16,527 24,901 108 194 2,081 2,832 20,159 33,245
As at 31 March 2018
Upto 30 days 192 1,151 420 572 3,726 3,507 1,069 4,883 12,121 4,639 5,591 1,707 23,119 16,459
30 days to 6 months 338 3,209 204 1,359 2,752 6,273 4,229 19,716 4,516 2,516 2,642 2,928 14,681 36,002
>6 months to 1 year 186 1,445 73 312 453 1,111 4,506 20,677 1,849 1,381 3,699 4,031 10,766 28,957
>1 year to 5 years 1,897 2,844 763 1,449 1,180 2,622 21,756 99,665 433 1,639 2,896 4,235 28,925 112,455
>5 years and above 300 2,123 250 1,074 781 1,645 17,597 21,163 124 254 1,917 2,558 20,969 28,818
As at 31 March 2017
Upto 30 days 228 626 1,650 597 3,440 3,700 1,185 4,808 5,077 2,761 5,565 2,275 17,145 14,768
30 days to 6 months 356 1,805 573 875 1,926 4,882 4,253 17,376 1,681 1,758 7,508 3,490 16,297 30,185
>6 months to 1 year 308 2,120 180 788 316 1,046 4,715 21,508 153 785 3,782 1,589 9,454 27,835
>1 year to 5 years 2,551 3,055 399 1,141 1,083 2,286 21,410 82,092 275 1,122 5,701 4,757 31,419 94,454
>5 years and above 228 1,901 189 900 703 1,380 17,026 18,724 119 281 1,669 2,359 19,934 25,546
As at 31 March 2016
Upto 30 days 308 879 331 526 3,669 3,528 1,227 5,216 4,184 2,406 2,501 2,173 12,220 14,729
30 days to 6 months 761 5,331 377 912 2,903 5,285 4,559 20,593 876 1,236 4,742 3,071 14,218 36,428
>6 months to 1 year 613 1,343 163 672 332 992 4,332 19,889 168 1,030 1,522 2,270 7,130 26,196
>1 year to 5 years 1,458 3,030 396 918 1,045 2,156 21,561 63,479 217 720 3,181 4,030 27,858 74,332
>5 years and above 161 1,323 133 814 596 1,020 14,863 17,047 100 124 1,356 2,061 17,209 22,389

Annexure III to the Management Report
Particulars of Payments made to entities where Directors are

interested for the year ended 31 March 2020
(H In Lacs)
Name of the
Sr. No. Entity in which Director is interested Director Interested as Payment during the year
FY2020 FY2019
1 Bajaj Finserv Limited Rahul Bajaj Member 858 659

Sanjiv Bajaj Director & Member
Niraj Bajaj Member
Nanoo Pamnani Director
Anami Roy Director
2 Bajaj Auto Limited Rahul Bajaj Director & Member 165 230
Niraj Bajaj Director & Member
Anami Roy Director
Lila Poonawalla Director
3 Bajaj Electricals Limited Rahul Bajaj Member 34 158

Niraj Bajaj Member
Sanjiv Bajaj Member
4 Bajaj Finance Limited Rahul Bajaj Director & Member 9,819 6,626
Dipak Poddar Director
Anami Roy Director
5 Bajaj Allianz Life Insurance Company Limited Rahul Bajaj Director 1,324 2,308
Sanjiv Bajaj Director
Niraj Bajaj Director
Ranjit Gupta Director
Ritu Arora Director
Sergio Balbinot Director
Suraj Mehta Director
Sanjay Asher Director
M. Damodaran Director
Anami Roy Director

(H In Lacs)
Name of the
Sr. No. Entity in which Director is interested Director Interested as Payment during the year
FY2020 FY2019
Shashi Kant
Director
Sharma
Avais Karmali Alternate Director
6 Bajaj Housing Finance Limited Sanjiv Bajaj Director 2 -

7 Bajaj Holdings and Investments Limited Rahul Bajaj Member 4 3

Anami Roy Director
8 Mukand Engineers Limited Rahul Bajaj Member 26 33

Sanjiv Bajaj Member
9 Mukand Limited Rahul Bajaj Member 87 61

Sanjiv Bajaj Member
10 Hind Musafir Agency Limited Rahul Bajaj Member 1,047 2,248

Niraj Bajaj Member
11 Corel Traders Private Limited Rahul Bajaj Relative is Director 0 1

Sanjiv Bajaj Relative is Director
12 Hercules Hoists Limited Rahul Bajaj Member 2 26

Niraj Bajaj Member
Sanjiv Bajaj Member
13 Maharashtra Scooters Limited Sanjiv Bajaj Director 0 1

Lila Poonawala Director
14 Bajaj Allianz Financial Distributors Limited Ritu Arora Director 1,522 1,568
Avais Karmali Director
15 Bajaj Allianz Staffing Solutions Limited Ritu Arora Director 10,752 10,296
Avais Karmali Director
Includes payments in the nature of expenses and claims paid. Does not include capital transactions like Dividend payment, deposit payments, etc.


Independent Auditors’ Report
Independent
Auditors’
Report

To the Members of Bajaj Allianz General Insurance Company Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Bajaj Allianz General Insurance Company Limited
(“the Company”), which comprise the Balance Sheet as at 31 March 2020, the Revenue Account, the Profit and
Loss Account and the Receipts and Payments Account for the year then ended, the schedules annexed thereto
and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
financial statements give the information required in accordance with the provisions of the Insurance Act, 1938
as amended by the Insurance Laws (Amendment) Act, 2015 (the “Insurance Act”), the Insurance Regulatory
and Development Authority Act, 1999 (the “IRDA Act”), the Insurance Regulatory and Development Authority
(Preparation of Financial Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 (the “IRDA
Financial Statements Regulations”), orders/directions issued by the Insurance Regulatory and Development
Authority of India (the “IRDAI”) in this regard and the Companies Act, 2013, as amended (the “Act”), to the
extent applicable, in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, as applicable to insurance companies:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2020;
(b) in the case of Revenue Account, of the operating profit for the year ended on that date;
(c) in the case of Profit and Loss Account, of the profit for the year ended on that date; and
(d) in the case of the Receipts and Payments Account, of the receipts and payments for the year ended on that
date.
Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of
the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the Company in accordance
with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of the Act and the
Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Other Information
The Company’s Board of Directors is responsible for the other information. The other information comprises the
Director’s Report, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.

Responsibility of Management and the Board of Directors for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with
respect to the preparation of these financial statements that give a true and fair view of the state of affairs,
operating profit/loss, profit/loss and the Receipts and Payments of the Company in accordance with the
accounting principles generally accepted in India, including the provisions of the Insurance Act, the IRDA Act,
the IRDA Financial Statements Regulations, the orders/directions/circulars issued by the IRDAI in this regard
and Accounting Standards specified under section 133 of the Act, to the extent applicable. This responsibility
also includes maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and the design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Board of Directors is also responsible for overseeing the Company’s financial reporting process.
Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing
our opinion on whether the Company has adequate internal financial controls system in place and the
operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Other Matter
The actuarial valuation of liabilities in respect of Claims Incurred But Not Reported (IBNR) and Claims Incurred
But Not Enough Reported (IBNER) is the responsibility of the Company’s Appointed Actuary. The actuarial
valuation of these liabilities as at 31 March 2020 has been duly certified by the Appointed Actuary. The
Appointed Actuary has also certified that in his opinion, the assumptions for such valuation are in accordance
with guidelines and norms, issued by the IRDAI and the Institute of Actuaries of India in concurrence with the
IRDAI. We have relied upon the Company’s Appointed Actuary’s certificate in this regard for forming our opinion
on the financials statements of the Company.
Our opinion is not modified in respect of this matter.
Report on other legal and regulatory requirements

1. As required by the IRDA Financial Statements Regulations, we have issued a separate certificate dated
15 May 2020 certifying the matters specified in paragraphs 3 and 4 of Schedule C to the IRDA Financial
Statements Regulations.
2. As required by IRDA Financial Statements Regulations, read with Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit;
(b) In our opinion and to the best of our information and according to the explanations given to us, proper
books of account as required by law have been kept by the Company so far as it appears from our
examination of those books;
(c) As the Company’s financial accounting system is centralized at Head Office, no returns for the purposes of
our audit are prepared at the branches and other offices of the Company as required under section 143(8) of
the Act;
(d) The Balance Sheet, the Revenue Account, the Profit and Loss Account and the Receipts and Payments
Account dealt with by this Report are in agreement with the books of account;
(e) In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid financial statements comply with Accounting Standards specified under section 133 of the Act
to the extent they are not inconsistent with the accounting principles prescribed in the IRDA Financial
Statements Regulations and orders/directions issued by the IRDAI in this regard;
(f) In our opinion and to the best of our information and according to the explanations given to us, investments
have been valued in accordance with the provisions of the Insurance Act, the IRDA
Financial Statements Regulations, the IRDA Act and/or orders/directions issued by the IRDAI in this regard;
(g) In our opinion and to the best of our information and according to the explanations given to us, the
accounting policies selected by the Company are appropriate and are in compliance with the applicable
Accounting Standards specified under Section 133 of the Act to the extent they are not inconsistent with
the accounting principles as prescribed in the IRDA Financial Statements Regulations and orders/directions
issued by the IRDAI in this regard;
(h) On the basis of the written representations received from the Directors as on 31 March 2020 taken on record
by the Board of Directors, none of the Directors is disqualified as on 31 March 2020 from being appointed as
a Director in terms of Section 164 (2) of the Act;

(i) With respect to the adequacy of the internal financial controls over financial reporting of the Company
with reference to these financial statements and the operating effectiveness of such controls, refer to our
separate Report in “Annexure A” to this report;
(j) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information
and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31 March 2020 on its financial position
in its financial statements – Refer schedule 16 note 26 to the financial statements;
ii. The liability for insurance contracts, is determined by the Company’s Appointed Actuary as per Schedule
16 note 2.11, and is covered by the Appointed Actuary’s certificate, referred to in Other Matter paragraph
above, on which we have placed reliance; and the Company did not have any long-term contracts
including derivative contracts for which there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Company. Refer Schedule 16 note 28 to the financial statements.
iv. The disclosures in the standalone financial statements regarding holdings as well as dealings in specified
bank notes during the period from 8 November 2016 to 30 December 2016 have not been made in
these financial statements since they do not pertain to the financial year ended 31 March 2020.
(k) With respect to the matter to be included in the Auditors’ Report under section 197(16), in our opinion and
according to the explanations given to us, the remuneration paid by the Company to its Directors during
the current year is in accordance with the provisions of Section 197 of the Act read with Section 34A of
the Insurance Act. The remuneration paid to any director is not in excess of the limit laid down under
Section 197 of the Act read with Section 34A of the Insurance Act. The Ministry of Corporate Affairs has not
prescribed other details under Section 197(16) which are required to be commented upon by us.
For S. R. BATLIBOI & CO. LLP For B S R & Co. LLP

Chartered Accountants Chartered Accountants
Firm’s Registration Number: Firm’s Registration Number:
301003E/E300005 101248W/ W-100022
per Vaibhav Gupta Sagar Lakhani

Partner Partner
Membership No. 213935 Membership No. 111855
ICAI UDIN: 20213935AAAAAR6387 ICAI UDIN: 20111855AAAADX2977
Place: Pune Place: Mumbai
Dated: 15 May 2020 Dated: 15 May 2020

Independent Auditors’ Certificate
The Board of Directors
Bajaj House, Airport Road, Yerawada,
Pune 411006
Independent Auditors’ Certificate as referred to in paragraph 1 of our Report on Other

Legal and Regulatory Requirements forming part of the Independent Auditors’ Report
dated 15 May 2020
1. This certificate is issued to comply with the provisions of paragraph 3 and 4 of Schedule C of the Insurance
Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report of
Insurance Companies) Regulations 2002, (“the IRDA Financial Statements Regulations”) read with Regulation
3 of the IRDA Financial Statements Regulations and may not be suitable for any other purpose.
Management’s Responsibility
2. The Company’s Board of Directors is responsible for complying with the provisions of The Insurance Act,
1938 as amended by the Insurance Laws (Amendment) Act, 2015 (the “Insurance Act”), the Insurance
Regulatory and Development Authority Act, 1999 (the “IRDA Act”), the IRDA Financial Statements
Regulations, orders/directions issued by the Insurance Regulatory and Development Authority of India
(the “IRDAI”) which includes the preparation and maintenance of books of accounts and the Management
Report. This includes collecting, collating and validating data and designing, implementing and monitoring
of internal controls suitable for ensuring compliance as aforesaid and applying an appropriate basis of
preparation that are reasonable in the circumstances and providing all relevant information to the IRDAI.
Independent Auditor’s Responsibility

3. Our responsibility for the purpose of this certificate, is to provide reasonable assurance on the matters
contained in paragraphs 3 and 4 of Schedule C of the IRDA Financial Statements Regulations read with
Regulation 3 of the IRDA Financial Statements Regulations.
4. We conducted our examination in accordance with the Guidance Note on Reports or Certificates for
Special Purposes (Revised 2016) issued by the Institute of Chartered Accountants of India (ICAI) in so far as
applicable for the purpose of this Certificate, which include the concepts of test checks and materiality. This
Guidance Note requires that we comply with the ethical requirements of the Code of Ethics issued by the
ICAI.
5. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1,
Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other
Assurance and Related Services Engagements.
Opinion
6. In accordance with the information, explanations and representations given to us and to the best of our
knowledge and belief and based on our joint examination of the books of account and other records
maintained by the Company for the year ended 31 March 2020, we certify that:
a. We have reviewed the Management Report attached to the financial statements for the year ended 31
March 2020, and on the basis of our review, there is no apparent mistake or material inconsistency with the
financial statements;

b. Based on information and explanations received during the normal course of our audit, management
representations and compliance certificates submitted to the Board of Directors by the officers of the
Company charged with compliance and the same being noted by the Board, we certify that the Company
has complied with the terms and conditions of registration stipulated by the IRDAI;
c. Due to COVID-19 pandemic and the subsequent lockdown announced by the Government of India, for
sample branches, we have observed over video call the cash/cheque count undertaken by the Company’s
personnel and verified the cash/cheque deposit slips submitted to the banks. Further, we have also relied
upon the management’s certificate for cash/cheque balances as at 31 March 2020. In respect of securities
relating to the Company’s loans and investments as at 31 March 2020, we have verified confirmations
received over email from the Custodian and/or Depository Participants appointed by the Company, as the
case may be;
d. We have been given to understand by the management that the Company is not a trustee of any trust; and
e. No part of the assets of the Policyholders’ Funds has been directly or indirectly applied in contravention to
the provisions of the Insurance Act, relating to the application and investments of the Policyholders’ Funds.
Restriction on Use
7. This certificate is issued at the request of the Company solely for use of the Company for inclusion in the
annual accounts in order to comply with the provisions of paragraph 3 and 4 of Schedule C of the IRDA
Financial Statements Regulations read with Regulation 3 of the IRDA Financial Statements Regulations and
is not intended to be and should not be used for any other purpose without our prior consent. Accordingly,
we do not accept or assume any liability or any duty of care for any other purpose or to any other person to
whom this Certificate is shown or into whose hands it may come without our prior consent in writing.

ICAI Firm’s Registration Number: Firm’s Registration Number:
301003E/E300005 101248W/ W-100022

Partner Partner
ICAI UDIN: 20213935AAAAAT9986 ICAI UDIN: 20111855AAAADY1488

Annexure A to the Independent Auditors’ Report of even date to the

members of Bajaj Allianz General Insurance Company Limited, on the
financial statements for the year ended 31 March 2020
(Referred to in paragraph 2 (i) under ‘Report on Other Legal and Regulatory Requirements’ of our report of even
date)
Report on the internal financial controls with reference to the aforesaid financial
statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(the “Act”)
We have audited the internal financial controls with reference to financial statements of Bajaj Allianz General
Insurance Company Limited (the “Company”) as of 31 March 2020 in conjunction with our audit of the financial
statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls

The Company’s Board of Directors is responsible for establishing and maintaining internal financial controls
based on the internal controls with reference to financial statements criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting (the “Guidance Note”) issued by the Institute of Chartered
Accountants of India (“the ICAI”). These responsibilities include the design, implementation and maintenance
of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and
the timely preparation of reliable financial information, as required under the Companies Act, 2013 including
the provisions of the Insurance Act, 1938 as amended by the Insurance Laws (Amendment) Act, 2015 (the
“Insurance Act”), the Insurance Regulatory and Development Authority Act, 1999 (the “IRDA Act”), the IRDA
Financial Statements Regulations, orders/directions issued by the Insurance Regulatory and Development
Authority of India (the “IRDAI”) in this regard.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls with reference to
financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the
Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to
an audit of internal financial controls with reference to financial statements. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls with reference to financial statements were
established and maintained and whether such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls with reference to financial statements and their operating effectiveness. Our audit of internal
financial controls with reference to financial statements included obtaining an understanding of such internal
financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected depend
on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Company’s internal financial controls with reference to financial statements.
Meaning of Internal Financial Controls with Reference to Financial Statements

A company’s internal financial controls with reference to financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles. A company’s internal
financial control with reference to financial statements includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and

dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that
could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Financial

Statements
Because of the inherent limitations of internal financial controls with reference to financial statements,
including the possibility of collusion or improper management override of controls, material misstatements due
to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial
controls with reference to financial statements to future periods are subject to the risk that the internal financial
control with reference to financial statements may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to
financial statements and such internal financial controls were operating effectively as at 31 March 2020, based
on the internal financial controls with reference to financial statements criteria established by the Company
considering the essential components of internal control stated in the Guidance Note issued by ICAI.
Other Matter
The actuarial valuation for claims Incurred But Not Reported (IBNR) and claims Incurred But Not Enough
Reported (IBNER), has been duly certified by the Company’s Appointed Actuary in accordance with the
guidelines and norms issued by the Insurance Regulatory and Development Authority of India (the “Authority”)
and the Institute of Actuaries of India in concurrence with the Authority, and has been relied upon by us, as
mentioned in “Other Matter” paragraph of our audit report on the financial statements of the Company as at
and for the year ended 31 March 2020. Accordingly, our opinion on the internal financial controls with reference
to financial statements does not include reporting on the design and operating effectiveness of internal controls
over such actuarial liabilities. Our opinion is not modified in respect of this matter.

ICAI Firm’s Registration Number: Firm’s Registration Number:
301003E/E300005 101248W/ W-100022

Partner Partner
ICAI UDIN: 20213935AAAAAR6387 ICAI UDIN: 20111855AAAADX2977



Financial Statements for the financial year ended 31 March 2020
Financial
Statements for
the financial
year ended
31 March 2020

Bajaj allianz general insurance company Limited

IRDAI Registration No 113. dated 2 May 2001
Revenue Accounts for the year ended 31 March 2020

(` in ‘000)
. . For the year ended 31 March 2020 For the year ended 31 March 2019
Particulars Schedule Fire Marine Miscellaneous Total Fire Marine Miscellaneous Total
Premiums earned - (Net) 1 2,679,557 1,173,990 78,208,275 82,061,822 1,876,444 1,038,593 67,182,732 70,097,769
Profit /(Loss) on sale/redemption

of investments (Refer note 2.3 (iv) 67,563 24,380 1,696,252 1,788,195 26,158 9,741 665,089 700,988
and (v) of Schedule 16)
Interest, dividend and rent-Gross
384,505 138,749 9,653,501 10,176,755 320,826 119,480 8,157,289 8,597,595
(Refer note 2.3 (ii) of Schedule 16)
Other income - Miscellaneous
2,797 2,186 150,941 155,924 142,159 2,341 41,809 186,309
income
Contribution from Shareholders
- 52,100 394,600 446,700 - - - -
Funds towards excess EoM
Sub total 454,865 217,415 11,895,294 12,567,574 489,143 131,562 8,864,187 9,484,892
Total (A) 3,134,422 1,391,405 90,103,569 94,629,396 2,365,587 1,170,155 76,046,919 79,582,661
Claims incurred (Net) (Refer note

2 1,822,329 788,366 55,437,194 58,047,889 1,396,888 974,951 45,732,265 48,104,104
2.10 and 2.11 of Schedule 16)
Commission (Refer note 2.3 (vi)
3 (1,442,355) 151,058 2,207,634 916,337 (183,568) 146,433 3,784,286 3,747,151
and 2.6 of Schedule 16)
Contribution to solatium fund
- - 31,311 31,311 - - 27,542 27,542
(Refer note 2.20 of Schedule 16)
Change in premium deficiency
(Refer note 2.9 and 10 of Schedule - - - - - - (44,071) (44,071)
16)
Operating expenses related to
insurance business (Refer note 2.12 4 2,417,584 316,688 20,468,682 23,202,954 695,640 228,936 17,146,514 18,071,090
and 41 of Schedule 16)
Total (B) 2,797,558 1,256,112 78,144,821 82,198,491 1,908,960 1,350,320 66,646,536 69,905,816
Operating profit/(loss) (C)=(A)-(B) 336,864 135,293 11,958,748 12,430,905 456,627 (180,165) 9,400,383 9,676,845
Appropriations
Transfer to shareholders' account 336,864 135,293 11,958,748 12,430,905 456,627 (180,165) 9,400,383 9,676,845
Transfer to catastrophe reserve - - - - - - - -
Transfer to other reserves - - - - - - - -
Total (C) 336,864 135,293 11,958,748 12,430,905 456,627 (180,165) 9,400,383 9,676,845
Significant accounting policies and

notes to the Financial Statements 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 of
For B S R & Co. LLP For S. R. Batliboi & Co. LLP Bajaj Allianz General Insurance Company Limited
Chartered Accountants Chartered Accountants CIN U66010PN2000PLC015329
Firm Registration Number Firm Registration Number
101248W/W-100022 301003E/E300005 Sanjiv Bajaj Lila Poonawalla Tapan Singhel
Sagar Lakhani Vaibhav Gupta DIN : 00014615 Audit Committee Chief Executive Officer
Partner Partner DIN : 00074392 DIN : 03428746
Mumbai Pune Ramandeep Singh Sahni Onkar Kothari
Date: 15 May 2020 Date: 15 May 2020 Chief Financial Officer Company Secretary &
Compliance Officer
Pune
Date: 15 May 2020


Profit and Loss Account for the year ended 31 March 2020
(` in ‘000)
For the year ended For the year ended
Operating profit as per Revenue Accounts of

(a) Fire insurance 336,864 456,627
(b) Marine insurance 135,293 (180,165)
(c) Miscellaneous insurance 11,958,748 9,400,383
12,430,905 9,676,845
Income from investments (Refer note 2.3 (ii), (iii), (iv), (v) and 2.13 of Schedule 16)
(a) Interest, dividends and rent - Gross 2,554,135 2,540,513
(b) Amortization of discount/(premium) (135,064) (62,880)
(c) Profit on sale/redemption of investments 1,188,341 354,353
Less:- Loss on sale/redemption of investments (201,049) (110,141)
3,406,363 2,721,845
Other income -Miscellaneous income 83,335 -
Total (A) 15,920,603 12,398,690
Provisions (other than taxation)
(a) For diminution in the value of investments (Refer note 2.15 of Schedule 16) 1,286,559 563,949
(b) For doubtful debts 9,891 13,807
(c) Others - -
Other expenses
(a) Expenses other than those related to the insurance business 177,705 94,434
(b) Bad debts written off - -
(c) Fines & penalties (Refer note 23 of Schedule 16) 900 -
(d) Corporate Social Responsibility (Refer note 29 of Schedule 16) 239,340 211,336
(e) Contribution to Policyholders Funds towards excess EoM 446,700 -
(f) Others - -
Total (B) 2,161,095 883,526

Profit before tax 13,759,508 11,515,164
Provision for taxation (Refer note 2.21 and note 18 of Schedule 16)
Current tax 2,866,644 4,728,274
Deferred tax Expense/(Income) 905,094 (1,011,693)
3,771,738 3,716,581
Profit after tax 9,987,770 7,798,583
Profit available for appropriation 9,987,770 7,798,583
Appropriations
(a) Final dividends paid 1,102,273 1,102,273
(b) Proposed final dividend (Refer note 32 of Schedule 16) - -
(c) Dividend distribution tax 226,575 226,575
(d) Transfer to reserve/other accounts - -
Balance of Profit brought forward from last year 48,089,148 41,619,413
Less: Transitional adjustment of depreciation (net of deferred tax) as per Companies Act, 2013 - -
Balance carried forward to Balance Sheet 56,748,070 48,089,148
Significant accounting policies and notes to the Financial Statements 16

Earning per share: Basic (Refer note 17 of Schedule 16) 90.61 70.75
Earning per share: Diluted (Refer note 17 of Schedule 16) 90.61 70.75
Compliance Officer
100 Bajaj allianz general insurance company Limited Pune, Date: 15 May 2020

Balance Sheet as at 31 March 2020

(` in ‘000)
Particulars Schedule As at 31 March 2020 As at 31 March 2019
SOURCES OF FUNDS
Share capital 5 1,102,273 1,102,273
Reserves and surplus 6 58,414,267 49,755,345
Fair value change account
Shareholders' funds (905,121) 259,718
Policyholders' funds (2,190,353) 522,745
Borrowings 7 - -
Total 56,421,066 51,640,081
APPLICATION OF FUNDS
Investments - Shareholders' 8 32,131,766 36,485,711
Investments - Policyholders' 8A 150,913,828 131,378,718
Loans 9 - -
Fixed assets 10 4,295,572 3,443,909
Deferred tax asset (Refer note 18 of Schedule 16) 637,957 1,543,051
Current assets
Cash and bank balances 11 5,759,677 4,557,572
Advances and other assets 12 24,918,301 19,838,610
Sub-Total (A) 30,677,978 24,396,182
Current liabilities 13 119,732,192 100,765,221
Provisions 14 42,503,843 44,842,269
Sub-Total (B) 162,236,035 145,607,490
Net current liabilities (C) = (A - B ) (131,558,057) (121,211,308)
Miscellaneous expenditure (to the extent not written off
or adjusted) 15 - -
Debit balance in Profit and loss account - -
Total 56,421,066 51,640,081
Significant accounting policies and notes to the Financial Statements 16

Compliance Officer
Pune , Date: 15 May 2020

Schedule - 1 Premium earned (Net)
Schedules to and forming part of the Financial Statements

(` in ‘000)
For the year ended 31 March 2020 For the year ended 31 March 2019
Particulars
Fire Marine Miscellaneous* Total Fire Marine Miscellaneous* Total
Cargo Others Cargo Others
Premium from direct

business written (
12,256,592 1,660,336 106,130 113,774,654 127,797,712 9,461,430 1,506,763 102,985 99,522,934 110,594,112
net of service tax
and GST)
Add: Premium on
472,918 - - 60,026 532,944 306,534 - - 69,500 376,034
reinsurance accepted
Less: Premium on
11,291,736 539,041 103,492 36,236,763 48,171,032 6,866,858 429,597 99,746 25,829,339 33,225,540
reinsurance ceded
Net Premium 1,437,774 1,121,295 2,638 77,597,917 80,159,624 2,901,106 1,077,166 3,239 73,763,095 77,744,606
Adjustment for
change in reserve for
unexpired risk
Reserve created
2,797,967 289,155 2,637 38,758,819 41,848,578 4,039,750 338,610 3,239 39,369,177 43,750,776
during the year
Less: Reserve created
during the previous 4,039,750 338,610 3,239 39,369,177 43,750,776 3,015,088 297,501 2,536 32,788,814 36,103,939
year written back
Change in the
unexpired risk reserve
(1,241,783) (49,455) (602) (610,358) (1,902,198) 1,024,662 41,109 703 6,580,363 7,646,837
(Refer note 2.8 of
Schedule 16)
Total premium
2,679,557 1,170,750 3,240 78,208,275 82,061,822 1,876,444 1,036,057 2,536 67,182,732 70,097,769
earned (Net)
Note :
Premium income
earned from
business concluded:
In India 2,679,557 1,170,750 3,240 78,208,275 82,061,822 1,876,444 1,036,057 2,536 67,182,732 70,097,769
Outside India - - - - - - - - - -
Total premium
2,679,557 1,170,750 3,240 78,208,275 82,061,822 1,876,444 1,036,057 2,536 67,182,732 70,097,769
earned (Net)
*Refer Schedule 1(A) for detailed segmental information for Miscellaneous lines of businesses
Refer note 2.3 (i) and 2.5 of schedule 16 for accounting policy related to Premium income and Reinsurance accepted

Schedule - 1(A) Premium earned (Net)

(` in ‘000)
For the year ended 31 March 2020

Workmen’s
Compensation Public/
/ Employers' Product Personal Health Credit Crop
Particulars Motor OD Motor TP Motor Total Liability Liability Engineering Aviation Accident Insurance Insurance Insurance Others Total
Premium from
direct business
20,993,836 31,311,365 52,305,201 509,576 427,826 1,526,628 260,480 2,734,018 22,014,030 119,451 24,813,790 9,063,654 113,774,654
(net of service
tax and GST)
Add: Premium
on reinsurance - - - - - 58,409 - - - - - 1,617 60,026
accepted
Less: Premium
on reinsurance 1,137,261 1,610,973 2,748,234 33,443 294,982 1,309,488 153,160 162,451 5,331,369 118,256 19,588,855 6,496,525 36,236,763
ceded
Net Premium 19,856,575 29,700,392 49,556,967 476,133 132,844 275,549 107,320 2,571,567 16,682,661 1,195 5,224,935 2,568,746 77,597,917
Adjustment
for change in
reserve for
unexpired risk
Reserve created
10,342,744 15,264,108 25,606,852 185,899 67,103 145,597 79,074 1,553,156 7,983,052 351 246,496 2,891,239 38,758,819
during the year
Less: Reserve
created during
the previous 10,723,350 14,211,738 24,935,088 186,974 69,048 162,575 70,775 1,426,267 8,636,267 400 396,912 3,484,871 39,369,177
year written
back
Change in the
unexpired risk
reserve (Refer (380,606) 1,052,370 671,764 (1,075) (1,945) (16,978) 8,299 126,889 (653,215) (49) (150,416) (593,632) (610,358)
note 2.8 of
Schedule 16)
Total premium
20,237,181 28,648,022 48,885,203 477,208 134,789 292,527 99,021 2,444,678 17,335,876 1,244 5,375,351 3,162,378 78,208,275
earned (Net)
Note :
Premium
income earned
from business
concluded:
In India 20,237,181 28,648,022 48,885,203 477,208 134,789 292,527 99,021 2,444,678 17,335,876 1,244 5,375,351 3,162,378 78,208,275
Outside India - - - - - - - - - - - - -
Total premium
20,237,181 28,648,022 48,885,203 477,208 134,789 292,527 99,021 2,444,678 17,335,876 1,244 5,375,351 3,162,378 78,208,275
earned (Net)

(` in ‘000)

Workmen’s
Motor / Employers' Product Personal Health Credit Crop
Particulars Motor OD Motor TP Total Liability Liability Engineering Aviation Accident Insurance Insurance Insurance Others Total
Premium
from direct
business 21,028,275 27,541,984 48,570,259 462,518 375,417 1,412,102 235,565 2,601,422 23,368,837 106,775 14,616,370 7,773,669 99,522,934
(net of
service tax)
Add:
Premium on
- - - - - 65,047 - - - - - 4,453 69,500
reinsurance
accepted
Less:
Premium on
1,133,878 1,393,399 2,527,277 28,279 231,518 1,211,849 140,068 201,530 4,762,859 105,699 11,877,142 4,743,118 25,829,339
reinsurance
ceded
Net
19,894,397 26,148,585 46,042,982 434,239 143,899 265,300 95,497 2,399,892 18,605,978 1,076 2,739,228 3,035,004 73,763,095
Premium
Adjustment
for change in
reserve for
unexpired
risk
Reserve
created
10,723,350 14,211,738 24,935,088 186,974 69,048 162,575 70,775 1,426,267 8,636,267 400 396,912 3,484,871 39,369,177
during the
year
Less: Reserve
created
during the 10,669,145 10,385,493 21,054,638 172,013 72,414 153,324 363 1,026,385 6,689,101 288 533,943 3,086,345 32,788,814
previous year
written back
Change
in the
unexpired
risk reserve 54,205 3,826,245 3,880,450 14,961 (3,366) 9,251 70,412 399,882 1,947,166 112 (137,031) 398,526 6,580,363
(Refer
note 2.8 of
Schedule 16)
Total
premium
19,840,192 22,322,340 42,162,532 419,278 147,265 256,049 25,085 2,000,010 16,658,812 964 2,876,259 2,636,478 67,182,732
earned
(Net)
Note :
Premium
income
earned from
business
concluded:
In India 19,840,192 22,322,340 42,162,532 419,278 147,265 256,049 25,085 2,000,010 16,658,812 964 2,876,259 2,636,478 67,182,732
Outside India - - - - - - - - - - - - -
Total
premium
19,840,192 22,322,340 42,162,532 419,278 147,265 256,049 25,085 2,000,010 16,658,812 964 2,876,259 2,636,478 67,182,732
earned
(Net)
*Refer note 2.3 (i) and 2.5 of Schedule 16 for accounting policy related to Premium income and Reinsurance accepted

Schedule - 2 Claims Incurred (Net)

(` in ‘000)
Particulars
Claims Paid
Direct 3,918,133 1,020,179 1,176 62,429,761 67,369,249 3,403,545 1,323,608 19,992 52,899,014 57,646,159
Add: Re-insurance
41,894 5,704 - 12,607 60,205 64,186 1,724 - 2,344 68,254
Accepted
Less: Re-insurance
2,406,584 254,361 1,168 21,830,000 24,492,113 2,449,481 501,226 18,320 15,945,130 18,914,157
Ceded
Net Claims paid 1,553,443 771,522 8 40,612,368 42,937,341 1,018,250 824,106 1,672 36,956,228 38,800,256
Claims Outstanding
(including IBNR and
IBNER)
Add : Claims
Outstanding at the
1,777,548 699,250 15,153 81,089,030 83,580,981 1,508,662 683,089 14,478 66,264,204 68,470,433
close of the year (net
of Re-insurance)
Less: Claims
Outstanding at the
beginning of the 1,508,662 683,089 14,478 66,264,204 68,470,433 1,130,024 533,603 14,791 57,488,167 59,166,585
year (net of Re-
insurance)
Change in Claims
268,886 16,161 675 14,824,826 15,110,548 378,638 149,486 (313) 8,776,037 9,303,848
Outstanding
Total Claims
1,822,329 787,683 683 55,437,194 58,047,889 1,396,888 973,592 1,359 45,732,265 48,104,104
Incurred (Net)
Claims incurred
In India 1,822,329 787,683 683 55,437,194 58,047,889 1,396,888 973,592 1,359 45,732,265 48,104,104
Outside India - - - - - - - - - -
Total Claims
1,822,329 787,683 683 55,437,194 58,047,889 1,396,888 973,592 1,359 45,732,265 48,104,104
Incurred (Net)
Refer note 2.10 and 2.11 of Schedule 16 for Claims incurred and Claims incurred but not reported and claims incurred but not enough reported

Schedule - 2 (A) Claims Incurred (Net)

(` in ‘000)
Workmen’s
Claims paid
Direct 13,460,133 6,935,038 20,395,171 133,617 132,768 497,637 155,704 1,098,538 19,455,016 44,128 17,922,628 2,594,554 62,429,761
Add:
Reinsurance - - - - - 10,099 - - 2,508 - - - 12,607
accepted
Less:
Reinsurance 729,334 1,358,532 2,087,866 6,977 128,831 398,038 93,454 111,805 4,074,197 43,687 13,617,246 1,267,899 21,830,000
ceded
Net claims
12,730,799 5,576,506 18,307,305 126,640 3,937 109,698 62,250 986,733 15,383,327 441 4,305,382 1,326,655 40,612,368
paid
Claims
outstanding
(including
IBNR and
IBNER)
Add : Claims
outstanding
at the close
3,216,845 67,743,810 70,960,655 244,764 88,157 252,860 120,483 1,154,558 2,567,306 1,182 4,068,249 1,630,816 81,089,030
of the year
(net of
reinsurance)
Less: Claims
outstanding
at the
beginning 2,242,582 54,843,578 57,086,160 183,487 82,533 208,077 29,543 773,377 3,105,747 784 3,430,695 1,363,801 66,264,204
of the year
(net of
reinsurance)
Change
in claims 974,263 12,900,232 13,874,495 61,277 5,624 44,783 90,940 381,181 (538,441) 398 637,554 267,015 14,824,826
outstanding
Total claims
incurred 13,705,062 18,476,738 32,181,800 187,917 9,561 154,481 153,190 1,367,914 14,844,886 839 4,942,936 1,593,670 55,437,194
(Net)
Claims
incurred
In India 13,705,062 18,476,738 32,181,800 187,917 9,561 154,481 153,190 1,367,914 14,844,886 839 4,942,936 1,593,670 55,437,194
Outside
- - - - - - - - - - - -
India -
Total claims
incurred 13,705,062 18,476,738 32,181,800 187,917 9,561 154,481 153,190 1,367,914 14,844,886 839 4,942,936 1,593,670 55,437,194
(Net)

(` in ‘000)
Workmen’s
Claims paid
Direct 12,557,396 6,312,459 18,869,855 136,183 148,672 635,441 61,764 885,709 16,846,228 40,247 13,353,099 1,921,816 52,899,014
Add:
Reinsurance - - - - - 2,344 - - - - - - 2,344
accepted
Less:
Reinsurance 712,687 1,671,449 2,384,136 7,149 146,383 538,814 53,568 111,520 2,536,602 39,845 9,333,342 793,771 15,945,130
ceded
Net claims
11,844,709 4,641,010 16,485,719 129,034 2,289 98,971 8,196 774,189 14,309,626 402 4,019,757 1,128,045 36,956,228
paid
Claims
outstanding
(including
IBNR and
IBNER)
Add : Claims
outstanding
at the close
2,242,582 54,843,578 57,086,160 183,487 82,533 208,077 29,543 773,377 3,105,747 784 3,430,695 1,363,802 66,264,205
of the year
(net of
reinsurance)
Less: Claims
outstanding
at the
beginning 2,188,083 45,090,848 47,278,931 157,995 162,173 195,589 15,059 543,665 2,504,511 914 5,297,364 1,331,967 57,488,168
of the year
(net of
reinsurance)
Change
in claims 54,499 9,752,730 9,807,229 25,492 (79,640) 12,488 14,484 229,712 601,236 (130) (1,866,669) 31,835 8,776,037
outstanding
Total claims
11,899,208 14,393,740 26,292,948 154,526 (77,351) 111,459 22,680 1,003,901 14,910,862 272 2,153,088 1,159,880 45,732,265
incurred (Net)
Claims
incurred
In India 11,899,208 14,393,740 26,292,948 154,526 (77,351) 111,459 22,680 1,003,901 14,910,862 272 2,153,088 1,159,880 45,732,265
Outside India - - - - - - - - - - - - -
Total claims
11,899,208 14,393,740 26,292,948 154,526 (77,351) 111,459 22,680 1,003,901 14,910,862 272 2,153,088 1,159,880 45,732,265
incurred (Net)
*Refer note 2.10 and 2.11 of Schedule 16 for Claims incurred and Claims incurred but not reported and claims incurred but not enough reported

Schedule - 3 Commission

(` in ‘000)
Particulars
Commission paid direct 1,074,635 205,459 2,368 6,992,744 8,275,206 848,736 182,652 1,300 7,266,989 8,299,677
Add: Reinsurance
44,308 - - 8,079 52,387 23,249 - - 8,735 31,984
accepted
Less: Commission on
2,561,298 48,361 8,408 4,793,189 7,411,256 1,055,553 34,614 2,905 3,491,438 4,584,510
reinsurance ceded
Net commission (1,442,355) 157,098 (6,040) 2,207,634 916,337 (183,568) 148,038 (1,605) 3,784,286 3,747,151
Break-up of commission
paid direct :
Agents 154,839 77,953 412 2,061,518 2,294,722 151,850 88,449 118 2,714,322 2,954,739
Brokers 401,116 122,252 1,856 2,702,089 3,227,313 208,839 91,394 968 2,638,204 2,939,405
Corporate agency 517,853 5,235 100 2,031,167 2,554,355 487,121 2,752 214 1,732,814 2,222,901
Referral - - - - - - - - - -
Others 827 19 - 197,970 198,816 926 57 - 181,649 182,632
Total 1,074,635 205,459 2,368 6,992,744 8,275,206 848,736 182,652 1,300 7,266,989 8,299,677
Commission paid
In India (1,442,355) 157,098 (6,040) 2,207,634 916,337 (183,568) 148,038 (1,605) 3,784,286 3,747,151
Outside India - - - - - - - - - -
Net commission (1,442,355) 157,098 (6,040) 2,207,634 916,337 (183,568) 148,038 (1,605) 3,784,286 3,747,151

Schedule - 3 (A) Commission
(` in ‘000)
Workmen’s
Commission
3,429,803 292,816 3,722,619 63,056 29,493 121,618 5,669 313,603 1,640,757 1,691 1,062 1,093,176 6,992,744
paid direct
Add: Re-
insurance - - - - - 7,926 - - - - - 153 8,079
accepted
Less:
Commission
on re- (6,579) 79,220 72,641 5,040 25,041 226,826 6,338 20,530 1,166,970 8,247 977,486 2,284,070 4,793,189
insurance
ceded
Net
3,436,382 213,596 3,649,978 58,016 4,452 (97,282) (669) 293,073 473,787 (6,556) (976,424) (1,190,741) 2,207,634
commission
Commission
paid
In India 3,436,382 213,596 3,649,978 58,016 4,452 (97,282) (669) 293,073 473,787 (6,556) (976,424) (1,190,741) 2,207,634
Outside India - - - - - - - - - - - - -
Net
3,436,382 213,596 3,649,978 58,016 4,452 7,927 (669) 293,073 473,787 (6,556) (976,424) (1,190,741) 2,207,634
commission
Workmen’s
Compensation
Motor / Employers' Public Personal Health Credit Crop
Commission
3,927,726 329,525 4,257,251 63,610 32,915 82,966 13,747 304,245 1,669,443 3,725 1,499 837,588 7,266,989
paid direct
Add: Re-
insurance - - - - - 7,846 - - - - - 889 8,735
accepted
Less:
Commission
on re- 320,539 67,379 387,918 4,650 23,912 218,766 9,457 28,722 917,943 8,369 842,123 1,049,578 3,491,438
insurance
ceded
Net
3,607,187 262,146 3,869,333 58,960 9,003 (127,954) 4,290 275,523 751,500 (4,644) (840,624) (211,101) 3,784,286
commission
Commission
paid
In India 3,607,187 262,146 3,869,333 58,960 9,003 (127,954) 4,290 275,523 751,500 (4,644) (840,624) (211,101) 3,784,286
Outside India - - - - - - - - - - - - -
Net
3,607,187 262,146 3,869,333 58,960 9,003 (127,954) 4,290 275,523 751,500 (4,644) (840,624) (211,101) 3,784,286
commission

Schedule - 4 Operating Expenses Related to Insurance Business
(` in ‘000)
Particulars Fire Marine Miscellaneous* Total Fire Marine Miscellaneous* Total
Employees' remuneration,
benefits and other manpower
1,121,807 110,010 5,742 8,324,373 9,561,932 318,678 99,706 592 7,885,135 8,304,111
costs (Net) (Refer note 2.16 and
19 of Schedule 16 )
Travel, conveyance and vehicle
14,160 4,558 22 380,100 398,840 20,304 6,730 39 514,366 541,439
running expenses
Training expenses 562 202 - 14,426 15,190 352 131 - 8,962 9,445
Rents, rates and taxes 13,881 4,997 12 353,184 372,074 12,422 4,612 14 315,852 332,900
Repairs and maintenance 4,835 1,741 4 129,957 136,537 4,021 1,493 4 102,239 107,757
Printing and stationery 9,503 1,426 1 237,110 248,040 11,090 1,950 1 216,290 229,331
Communication 13,185 1,979 1 323,796 338,961 15,956 3,783 8 341,875 361,622
Legal and professional charges 5,136 1,849 4 132,173 139,162 5,918 2,197 7 150,477 158,599
Auditors' fees, expenses, etc.
(Refer note 39 of Schedule 16)
(a) as auditors 302 109 - 7,589 8,000 284 105 - 7,211 7,600
(b) as advisor or in any other
- - - - - - - - - -
capacity in respect of:
(i) Taxation matters - - - - - - - - - -
(ii) Insurance matters - - - - - - - - - -
(iii) Management services - - - - - - - - - -
(iv) Tax audit 34 12 - 854 900 34 12 - 854 900
(c) In any other capacity 119 43 - 2,988 3,150 7 2 - 167 176
(d) Out of pocket expenses 76 27 - 1,904 2,007 35 13 - 897 945
Advertisement and publicity 20,632 7,428 17 633,002 661,079 28,284 10,502 32 719,136 757,954
Interest and bank charges 9,866 3,552 8 252,790 266,216 6,816 2,531 8 173,312 182,667
Business development and
206,396 26,921 1,721 1,402,344 1,637,382 34,514 12,815 39 877,535 924,903
promotion
Marketing and support services 895,870 116,850 7,469 6,086,921 7,107,110 151,347 56,194 169 3,848,116 4,055,826
Service Charges - - - - - - - - - -
Other acquisition costs 35,120 1,810 289 198,184 235,403 6,217 2,308 7 158,070 166,602
Others
Exchange (gain) /loss (net) (749) (270) (1) (18,814) (19,834) 449 167 1 11,404 12,021
Miscellaneous expenses 20,338 7,215 19 562,594 590,166 26,356 9,604 32 672,604 708,596
Loss/(Profit) on disposal of
(126) (45) - (3,185) (3,356) (140) (52) - (3,560) (3,752)
assets (net)
Information technology 27,829 4,177 2 669,579 701,587 31,782 5,389 3 613,809 650,983
Depreciation (refer note 2.14 of
18,808 6,771 16 478,359 503,954 16,244 6,031 18 413,016 435,309
Schedule 16)
GST /Service tax - - - 298,454 298,454 4,670 1,734 5 118,747 125,156
Total 2,417,584 301,362 15,326 20,468,682 23,202,954 695,640 227,957 979 17,146,514 18,071,090
(Refer note 2.12 and 41 of Schedule 16)

* Refer Schedule 4(A) for detailed segmental information for Miscellaneous lines of businesses

Schedule - 4 (A) Operating Expenses Related to Insurance Business

(` in ‘000)
Workmen’s
Employees' remuneration,
benefits and other
manpower costs (Net) 1,973,763 2,885,212 4,858,975 36,515 25,241 97,528 14,646 256,079 2,015,804 6,470 220,682 792,433 8,324,373
(Refer note 2.16 and 19 of
Schedule 16 )
Travel, conveyance and
88,983 130,675 219,658 1,889 554 1,230 439 12,707 76,801 17 49,913 16,892 380,100
vehicle running expenses
Training expenses 3,584 5,360 8,944 86 24 50 19 464 3,011 - 1,256 572 14,426
Rents, rates and taxes 88,490 132,359 220,849 2,122 592 1,228 478 11,460 74,528 5 27,798 14,124 353,184
Repairs and maintenance 30,826 46,108 76,934 739 206 428 167 3,992 26,168 2 16,400 4,921 129,957
Printing and stationery 32,055 47,808 79,863 244 22 96 37 25,775 39,252 - 41,875 49,946 237,110
Communication 44,474 66,331 110,805 338 31 133 52 35,761 50,833 1 56,545 69,297 323,796
Legal and professional
32,744 48,977 81,721 785 219 454 177 4,241 28,713 2 10,633 5,228 132,173
charges
Auditors' fees, expenses,
etc.(Refer note 39 of
Schedule 16)
(a) as auditor 1,927 2,882 4,809 46 13 27 10 250 1,619 - 507 308 7,589
(b) as advisor or in any
other capacity in respect - - - - - - - - - - - - -
of:
(i) Taxation matters - - - - - - - - - - - - -
(ii) Insurance matters - - - - - - - - - - - - -
(iii) Management services - - - - - - - - - - - - -
(iv) Tax Audit 217 324 541 5 1 3 1 28 182 - 57 36 854
(c) In any other capacity 759 1,135 1,894 18 5 11 4 98 637 - 200 121 2,988
(d) Out of pocket
483 723 1,206 12 3 7 3 63 406 - 127 77 1,904
expenses
Advertisement and
131,531 196,737 328,268 3,154 880 1,825 711 17,034 111,401 8 148,727 20,994 633,002
publicity
Interest and bank charges 62,897 94,078 156,975 1,508 421 873 340 8,146 57,586 4 16,897 10,040 252,790
Business development
340,394 507,682 848,076 8,262 6,937 25,700 4,223 44,329 315,895 1,937 - 146,985 1,402,344
and promotion
Marketing and support
1,477,491 2,203,612 3,681,103 35,863 30,109 111,551 18,332 192,413 1,371,154 8,407 - 637,989 6,086,921
services
Other acquisition costs 13,019 19,473 32,492 15 139 2,578 6,792 7,666 48,837 - 89,522 10,143 198,184
Others
Exchange (gain) /loss
(4,777) (7,146) (11,923) (115) (32) (66) (26) (619) (4,014) - (1,257) (762) (18,814)
(net)
Miscellaneous expenses 131,875 195,515 327,390 3,052 856 1,790 690 16,971 107,762 10 82,635 21,438 562,594
Loss/(Profit) on disposal
(800) (1,197) (1,997) (19) (5) (11) (4) (104) (672) - (244) (129) (3,185)
of assets (net)
Information technology 93,869 140,002 233,871 714 65 281 109 75,479 94,677 1 118,120 146,262 669,579
Depreciation (refer note
119,906 179,349 299,255 2,875 802 1,664 648 15,529 101,428 7 37,012 19,139 478,359
2.14 of Schedule 16)
GST /Service tax 62,783 93,908 156,691 - - - - 1,073 22,148 - 1,17,617 925 298,454
Total 4,726,493 6,989,907 11,716,400 98,108 67,083 247,380 47,848 728,835 4,544,156 16,871 1,035,022 1,966,979 20,468,682

(` in ‘000)
Workmen’s
/ Employers' Product Personal Health Credit Crop
Particulars Motor OD Motor TP Motor Total Liability Liability Engineering Aviation Accident Insurance Insurance Insurance Others Total
Employees'
remuneration, benefits
and other manpower
costs (Net) (Refer
2,195,539 2,573,964 4,769,503 37,840 12,922 26,637 8,373 382,871 1,818,022 429 381,511 447,027 7,885,135
note 2.16 and 19 of
Schedule 16 )
Travel, conveyance
and vehicle running 138,281 181,403 319,684 2,632 906 1,835 594 20,049 122,360 27 21,985 24,294 514,366
expenses
Training expenses 2,417 3,177 5,594 53 17 32 12 292 2,260 - 333 369 8,962
Rents, rates and taxes 85,187 111,968 197,155 1,859 616 1,136 409 10,276 79,671 5 11,729 12,996 315,852
Repairs and
maintenance
27,574 36,243 63,817 602 199 368 132 3,326 25,789 1 3,797 4,208 102,239
Printing and stationery 35,695 46,763 82,458 329 42 157 51 36,832 33,397 1 25,270 37,753 216,290
Communication 70,513 91,728 162,241 1,078 293 624 216 40,236 65,361 4 29,569 42,253 341,875
Legal and professional
charges
40,584 53,343 93,927 886 294 541 195 4,896 37,956 2 5,588 6,192 150,477
Auditors' fees,
expenses, etc.(Refer
note 39 of Schedule
16)
(a) as auditor 1,945 2,556 4,501 42 14 26 8 236 1,819 - 268 297 7,211
(b) as advisor or in any
other capacity in
respect of:
(i) Taxation matters - - - - - - - - - - - - -
(ii) Insurance matters - - - - - - - - - - - - -
(iii) Management
services
- - - - - - - - - - - - -
(iv) Tax audit 230 303 533 5 2 3 1 28 215 - 32 35 854

(c) In any other
capacity
45 60 105 1 - 1 - 5 42 - 6 7 167
(d) Out of pocket

expenses
242 318 560 5 2 3 1 29 227 - 33 37 897
Advertisement and
publicity
193,956 254,930 448,886 4,234 1,403 2,586 931 23,397 181,395 10 26,705 29,589 719,136
Interest and bank

charges
46,744 61,438 108,182 1,020 338 623 224 5,639 43,716 3 6,436 7,131 173,312
Business development
and promotion
236,677 311,081 547,758 5,166 1,712 3,156 1,136 28,551 221,349 13 32,588 36,106 877,535
Marketing and support

services
1,037,862 1,364,135 2,401,997 22,654 7,507 13,840 4,982 125,199 970,647 56 142,902 158,332 3,848,116
Other acquisition costs 42,632 56,035 98,667 931 308 569 205 5,143 39,871 2 5,870 6,504 158,070
Others
Exchange (gain) /
loss (net)
3,076 4,043 7,119 67 22 41 15 371 2,877 - 423 469 11,404
Miscellaneous
expenses
182,632 238,745 421,377 3,846 1,279 2,387 848 22,912 165,400 13 25,774 28,768 672,604
Loss/(Profit) on
disposal of assets (net)
(960) (1,262) (2,222) (21) (7) (13) (5) (116) (898) - (132) (146) (3,560)
Information technology 98,585 129,123 227,708 821 73 370 117 108,097 92,242 2 73,779 110,600 613,809
Depreciation (refer
note 2.14 of Schedule 111,393 146,412 257,805 2,431 806 1,485 535 13,438 104,179 6 15,338 16,993 413,016
16)
Service tax 32,027 42,095 74,122 699 232 427 154 3,863 29,953 2 4,410 4,885 118,747
Total 4,582,876 5,708,601 10,291,477 87,180 28,980 56,834 19,134 835,570 4,037,850 576 814,214 974,699 17,146,514
*(Refer note 2.12 and 41 of Schedule 16)

Schedule - 5 Share Capital

(` in ‘000)
As at As at
Authorised capital
125,000,000 (previous year :125,000,000) Equity shares of Rs 10 each 1,250,000 1,250,000
Issued capital
110,227,250 (previous year :110,227,250) Equity Shares of Rs 10 each fully paid up 1,102,273 1,102,273
Subscribed capital
Called-up capital (Refer schedule 5A)
Less: Calls unpaid - -
Add : Equity shares forfeited (Amount originally paidup) - -
Less : Par Value of Equity Shares bought back - -
Less: Preliminary Expenses to the extent not written off - -
Expenses including commission or brokerage on underwriting or subscription of shares
Total 1,102,273 1,102,273
Schedule - 5A Share Capital/Pattern of Shareholding
(As certified by the Management)

(` in ‘000)
As at 31 March 2020 As at 31 March 2019
Shareholder Number of Shares % of Holding Number of Shares % of Holding
Promoters
Indian
Bajaj Finserv Limited 81,568,165 74.00% 81,568,165 74.00%
Foreign
Allianz SE 28,659,085 26.00% 28,659,085 26.00%
Others - - - -
Total 110,227,250 100.00% 110,227,250 100.00%

Schedule - 6 Reserves and Surplus

(` in ‘000)
Particulars As at 31 March 2020 As at 31 March 2019
Capital reserve - -
Capital redemption reserve - -
Share premium 1,666,197 1,666,197
General reserves - -
Less: Debit balance in Profit and Loss Account - -
Less: Amount utilised for Buy-back -
Catastrophe reserve - -
Other reserves - -
Balance in Profit and Loss Account 56,748,070 48,089,148
Total 58,414,267 49,755,345
Schedule - 7 Borrowings

(` in ‘000)
Debentures/Bonds - -
Banks - -
Financial institutions - -
Others - -
Total - -

Schedule - 8 Investments - Shareholders

(` in ‘000)
Long term investments

1 Government securities and
Government guaranteed bonds including Treasury bills 16,538,010 20,231,606
2 Other approved securities - -
3 Approved Investments
(a) Shares
(aa) Equity Shares (Note no. 5) 4,831,625 3,061,545
- Fair Value Change Accretion/(Diminution) (905,121) 259,094
(bb) Preference Shares - -
(b) Mutual funds - -
- Fair Value Change Accretion/(Diminution) - -
(c) Derivative instruments - -
(d) Debenture/Bonds 225,080 1,712,734
(e) Other securities (to be specified) - -
(f) Subsidiaries - -
Less : Accumulated depreciation - -
4 Investments in Infrastructure and Housing Sector 7,787,683 6,831,432
5 Other investments
(a) Shares
(aa) Equity 127,500 127,500
(bb) Preference - -
(b) Debenture/Bonds 374,800 771,709
(c) Other securities - Loan - -
Sub-Total (A) 28,979,577 32,995,620
Short term investments
Government guaranteed bonds including Treasury bills - -
3 Approved Investments
(a) Shares
(aa) Equity Shares - -
(bb) Preference shares - -
(b) Mutual funds - 569,800
- Fair Value Change Accretion/(Diminution) - 624
(d) Debenture/Bonds 497,424 290,003
(e) Other securities (Note no 6) - -
5 Other Investments
(a) Shares - -
(b) Mutual Funds - -
(c) Debenture/Bonds 18,750 1,029,194
Sub-Total (B) 3,152,189 3,490,091
Total 32,131,766 36,485,711
Investments
In India 32,131,766 36,485,711
Outside India - -
Total 32,131,766 36,485,711
*Investments are segregated into Policyholders’ and Shareholders’ fund as per the directions from IRDAI - Refer note no. 2.15 of Schedule 16
NOTES:
1) All the above investments are performing assets.
2) Investments maturing within next 12 months are Rupees 3,152,189 thousand (Previous year Rupees 3,490,091 thousand)
3) Investment other than Equities and Derivative instruments
Aggregate value of Investments as at 31 March 2020 Rupees 28,077,762 thousand (Previous year Rupees 32,467,148 thousand)
Market value as at 31 March 2020 Rupees 28,928,778 thousand (Previous year Rs 32,631,050 thousand)
4) Value of contracts in relation to investments where deliveries are pending Rupees Nil thousand (Previous year Rupees 565,981) and in respect of Sale
of investments where payments are due Rupees 744,770 thousand (Previous year Rupees Nil thousand).
5) Equity includes investments qualifying for Infra and Housing sector Rupees 301,785 thousand (Previous year Rupees 129,486 thousand)
6) Short term other approved securities includes Fixed Deposit of Rupees Nil (Previous year Rupees Nil thousand)
7) Investments in subsidiary/holding Company Rupees Nil thousand (Previous year Rupees Nil thousand)
8) Investments in other related entities Rupees Nil thousand (Previous year Rupees Nil thousand) - refer note 15 of Schedule 16 for related party transactions
9) Investments in Catastrophe reserve Rupees Nil thousand (Previous year Rupees Nil thousand)
10) Debt securities are held to maturity and reduction in market values represent market conditions and not a permanent diminution in value of investments, if any
11) Refer note 2.3 (ii), (iii), (iv), (v), 2.13 and 2.15 of Schedule 16 for accounting policy related to Investments and income on investments
Schedule - 8A Investments - Policyholders

(` in ‘000)
Long term investments

3 Approved investments
(a) Shares
(aa) Equity Shares (Note no. 5) 14,448,705 10,164,973
- Fair Value Change Accretion/(Diminution) (2,190,354) 521,709
(bb) Preference shares - -
(d) Debenture/Bonds 16,665,696 18,447,295
(e) Other securities (to be specified) - -
Less : Accumulated depreciation - -
5 Other Investments
(a) Shares
(aa) Equity 297,500 297,500
(bb) Preference 330,252 732,500
(b) Debenture/Bonds 1,367,104 426,713
(c) Other securities - Loan - -
Sub-Total (A) 124,116,641 117,213,558
Short term investments
3 Approved investments
(a) Shares
(bb) Preference shares - 350,000
(b) Mutual funds - 1,104,700
- Fair Value Change Accretion/(Diminution) - 1,035
(c) Derivative Instruments - -
(d) Debenture/Bonds 8,460,790 4,043,146
(e) Other securities (Note no 6) 250,000 450,000
5 Other Investments
(a) Shares - -
(bb) Preference Shares 402,500 -
(c) Debenture/Bonds 43,750 185,701
(d) Other securities - Loan - 166,672
Sub-Total (B) 26,797,187 14,165,160
Total 150,913,828 131,378,718
Investments
In India 150,913,828 131,378,718
Outside India - -
Total 150,913,828 131,378,718
*Investments are segregated into Policyholders’ and Shareholders’ fund as per the directions from IRDAI - Refer note no. 2.15 of Schedule 16
NOTES:
1) All the above investments are performing assets.
2) Investments maturing within next 12 months are Rupees 26,797,186 thousand (Previous year Rupees 14,165,160 thousand)
3) Investment other than Equities and Derivative instruments
Aggregate value of Investments as at 31 March 2020 Rupees 138,357,976 thousand (Previous year Rupees 119,288,800 thousand)
Market value as at 31 March 2020 Rupees 142,242,775 thousand (Previous year Rs 119,821,139 thousand)
4) Value of contracts in relation to investments where deliveries are pending Rupees 769,327 (Previous year Rupees 636,218 thousand) and in respect of sale
of investments where payments are due Rupees Nil (Previous year Rupees Nil thousand).
5) Equity includes investments qualifying for Infra and Housing sector Rupees 704,032 thousand (Previous year Rupees 302,134)
6) Short term other approved securities includes Fixed Deposit of Rupees 250,000 thousand (Previous year Rupees 450,000)
7) Investments in subsidiary/holding Company Rupees Nil thousand (Previous year Rupees Nil thousand).
8) Investments in other related entities Rupees 8,504,018 thousand (Previous year Rupees 4,405,378 thousand) - refer note 15 of Schedule 16 for related party transactions
9) Investments in Catastrophe reserve Rupees Nil thousand (Previous year Rupees Nil thousand)
10) Debt securities are held to maturity and reduction in market values represent market conditions and not a permanent diminution in value of investments, if any.
11) Refer note 2.3 (ii), (iii), (iv), (v), 2.13 and 2.15 of Schedule 16 for accounting policy related to Investments and income on investments.

Schedule - 9 Loans

(` in ‘000)
1 SECURITY-WISE CLASSIFICATION
Secured - -
a) On Mortgage of property
(aa) In India - -
(bb) Outside India - -
b) On Shares, Bonds, Govt.Securities - -
c) Others - -
Unsecured - -
Total - -
2 BORROWER-WISE CLASSIFICATION
a) Central and State Government - -
b) Bank and Financial Institutions - -
c) Subsidiaries - -
d) Industrial Undertakings - -
e) Others - -
Total - -
3 PERFORMANCE-WISE CLASSIFICATION
a) Loans classified as standard
(aa) In India - -
b) Non-performing loans less provisions
(aa) In India - -
Total
4 MATURITY-WISE CLASSIFICATION
a) Short- Term - -
b) Long- Term - -
Total - -
Total - -
Note:
Short-term loans include those, which are repayable within 12 months from the date of Balance Sheet. Long term loans are the loans other than short-term loans.

Schedule 10 - Fixed Assets

(` in ‘000)
Particulars Gross Block Depreciation / Amortisation Net Block
Additions Deductions As at 31 As at 31 As at 31
As at 1 during the during the March As at 1 For the March As at 31 March
April 2019 year year 2020 April 2019 Year On Sales 2020 March 2020 2019
Goodwill - - - - - - - - - -
Intangibles -
638,736 349,475 1,500 986,711 437,700 124,749 1,500 560,949 425,762 201,036
Computer Softwares
Land - Freehold - 846,212 - 846,212 - - - - 846,212 -
Leasehold
196,038 19,813 10,381 205,470 128,712 40,005 9,134 159,583 45,887 67,326
Improvements
Freehold
24,177 - 75 24,102 24,177 - 75 24,102 - -
Improvements
Buildings* 2,687,834 - - 2,687,834 384,483 43,996 - 428,479 2,259,355 2,303,351
Furniture and
604,716 35,282 29,329 610,669 435,347 68,541 26,685 477,203 133,466 169,369
Fittings
Information
Technology 1,033,739 134,912 95,074 1,073,577 648,536 163,992 94,863 717,665 355,912 385,203
Equipment
Vehicles 46,644 41,453 3,508 84,589 19,788 14,386 2,555 31,619 52,970 26,856
Office Equipment 421,886 42,447 38,971 425,362 338,769 48,285 38,034 349,020 76,342 83,117
Others - - - - - - - - - -
Total 5,653,770 1,469,594 178,838 6,944,526 2,417,512 503,954 172,846 2,748,620 4,195,906 3,236,258
Capital work-in-
99,666 207,651
progress & advances
Grand Total 5,653,770 1,469,594 178,838 6,944,526 2,417,512 503,954 172,846 2,748,620 4,295,572 3,443,909
Previous year 5,101,600 662,560 110,390 5,653,770 2,089,877 435,309 107,674 2,417,512 3,443,909 3,122,686
(Refer note 2.14 of Schedule 16)

* Include share of undivided portion of Land, along with office premises, at an estimated cost of Rs.19,177 thousand ( Previous year Rs. 19,177 thousand)
None of the software are internally generated

Schedule 11 - Cash and bank balances

(` in ‘000)
1. Cash and stamps on hand 9,646 42,539
2. Cheques on hand 811,784 803,907
3. Bank balances
(a) Deposit accounts
(aa) Short term (due within 12 months) 1,820,520 640,463
(bb) Others - -
(b) Current accounts 3,117,727 3,070,663
(c) Others - -
4. Money at call and short notice
(a) With banks - -
(b) With other institutions - -
5. Others - -
Total 5,759,677 4,557,572
Balance with non-scheduled Banks included in (3) above 260,059 113,420
Cash and bank balances
In India 5,499,618 4,444,152
Outside India 260,059 113,420
Total 5,759,677 4,557,572

Schedule - 12 Advances and other assets

(` in ‘000)
Advances
1. Reserve deposits with ceding companies - -
2. Application money for investments - -
3. Prepayments 103,610 160,651
4. Advances to Directors / Officers - -
5. Advance tax paid and taxes deducted at source 709,150 1,013,118
6. Others
(a) Advance to employees 842 1,704
(b) Advances recoverable 615,580 1,133,369
Less: Provision for doubtful advances (1,556) (1,741)
614,024 1,131,628
(c) Unutilised Tax Credit carried forward
- Service Tax - -
- Goods and service Tax (GST) 1,909,873 241,340
(d) Unsettled investment contract receivable 744,770 -
Total (A) 4,082,269 2,548,441
Other assets
1. Income accrued on investments 4,828,895 4,044,318
2. Outstanding premiums 12,709,430 10,466,006
3. Agents' balances 502,360 125,683
Less: Provision for doubtful recoveries (44,516) (34,440)
457,844 91,243
4. Foreign agencies balances - -
5. Due from other entities carrying on insurance business, including reinsurers (net) 2,421,341 2,275,303
Less : Provision for doubtful amounts - -
2,421,341 2,275,303
6. Due from subsidiary / holding companies - -
7. Others
a) Other Deposits 319,068 308,848
b) Investment of Unclaimed amounts of Policyholders' (Refer note 24 of Schedule 16) 99,454 104,451
Total (B) 20,836,032 17,290,169
Total (A + B) 24,918,301 19,838,610

Schedule - 13 Current liabilities

(` in ‘000)
1. Agents' balances 1,136,182 1,552,059

2. Balances due to other insurance companies including reinsurers (net) 12,132,834 13,882,103
3. Premiums received in advance 11,390,057 6,567,583
4. Unallocated premium 4,532,671 3,790,599
5. Sundry creditors (Refer note 22 of Schedule 16) 3,547,047 3,679,474
6. Claims outstanding ( Net ) 83,580,981 68,470,433
7. Solatium fund (Refer note 2.20 of Schedule 16) 139,782 108,470
8. Due to policyholders/ insured 12,243 15,013
9. Unclaimed amount of Policyholders' (Refer note 24 of Schedule 16) 71,946 66,915
10. Others
(a) Goods and Service tax payable (GST) 849,478 988,576
(b) Statutory dues 222,421 386,836
(c) Unsettled investment contract payable 769,327 1,202,199
11. Temporary Overdraft as per the books of accounts only 1,347,223 54,961
Total 119,732,192 100,765,221
Schedule - 14 Provisions
(` in ‘000)
1. Reserve for unexpired risk (Refer note 2.8 of Schedule 16) 41,848,578 43,750,776
2. Premium deficiency (Refer note 2.9 and note 10 of Schedule 16) - -
3. Provision for income tax (Refer note 2.21 and note 18 of Schedule 16) 203,089 690,036
4. Provision for Standard Asset (Refer note 37 of Schedule 16) - 667
5. Others (Refer note 2.16 and note 19 of Schedule 16):
For employee benefits
(a) Gratuity - -
(b) Compensated absences 108,611 103,332
(c) Long term incentive plan 343,565 297,458
Total 42,503,843 44,842,269
Schedule - 15 Miscellaneous expenditure (To the extent not written off or adjusted)
(` in ‘000)
Discount allowed in issue of shares/debentures - -

Others - -
Total - -

Schedule – 16
Significant accounting policies and notes forming part of the

financial statements for the year ended 31 March 2020
1. Background
Bajaj Allianz General Insurance Company Limited (‘the Company’) was incorporated on 19 September
2000, as a company under the Companies Act, 1956. The Company is registered with Insurance
Regulatory and Development Authority of India (‘IRDAI’) and is in the business of underwriting general
insurance policies relating to Fire, Marine and Miscellaneous segments (including Motor, Health, etc.)
and holds a valid certificate of registration.
2. Significant accounting policies
The accounting policies set out below have been applied consistently to the periods presented
in these financial statements. The management evaluates all newly issued or revised accounting
pronouncements on an ongoing basis to ensure due compliance.
2.1 Basis of preparation of Financial Statements
The financial statements are prepared and presented on a going concern basis in accordance with the
Generally Accepted Accounting Principles followed in India under the historical cost convention and
accrual basis of accounting and comply with applicable accounting standards referred to in Companies
Act, 2013 under section 133, as amended from time to time) and in accordance with the statutory
requirements of the Insurance Act, 1938 (amended by the Insurance laws (Amendment) Act, 2015), the
Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s
Report of Insurance Companies) Regulations, 2002 (‘the Regulations’) and orders and directions issued
by the IRDAI in this behalf, the Companies Act, 2013 (‘the Act’) (to the extent applicable) and current
practices prevailing in the insurance industry.
The financial statements are presented in Indian rupees rounded off to the nearest thousand.
2.2 Use of Estimates
The preparation of financial statements in conformity with the generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities as of the Balance Sheet date, revenue and expenses for the year ended and disclosure of
contingent liabilities as of the Balance Sheet date. The estimates and assumptions used in accompanying
financial statements are based upon management’s evaluation of the relevant facts and circumstances
as of the date of the financial statements. Actual results may differ from the estimates and assumptions
used in preparing the accompanying financial statements. Any revision to accounting estimates is
recognized prospectively in current and future periods.
2.3 Revenue recognition
i) Premium income
Premium (net of goods and service tax), including reinstatement premium on direct business and
reinsurance accepted, is recognized as income at the commencement of risk over the contract period or
the period of risk, whichever is appropriate, on a gross basis and for instalment cases, it is recognized on
instalment due dates.
In case of long term motor insurance policies, premium is recognized on a yearly basis as mandated by
IRDAI.
Any subsequent revisions to premium, as and when occur, are recognized in the year over the
remaining period of risk or contract period, as applicable.
Adjustments to premium income arising on cancellation of policies are recognized in the period in which
they are cancelled.
Crop insurance premium under government schemes are recognized in accordance with contractual
obligations where there is reasonable certainty of its ultimate collectability.
ii) Interest / dividend income
Interest income is recognized on accrual basis and dividend income is recognized when the right to
receive the dividend is established.
iii) Premium / discount on purchase of investments
Premium or discount on acquisition, as the case may be, in respect of fixed income securities, is
amortized / accreted on constant yield to maturity basis over the period of maturity/holding.
iv) Profit / loss on sale of debt securities
Profit or loss on sale/redemption of debt securities is the difference between the net sale consideration
and the amortized cost computed on weighted average basis as on the date of sale.
v) Profit / loss on sale of Equity shares and Mutual fund
Profit or loss on sale/redemption of equity shares and mutual fund units is the difference between
the net sale consideration and the weighted average cost in the books of the Company. Profit or loss
on sale/redemption of such securities is recognized on trade/redemption date and includes effects of
accumulated fair value changes, as applicable and previously recognized.
vi) Commission income from reinsurance ceded
Commission received on reinsurance ceded is recognized as income in the period in which reinsurance
premium is ceded. Profit commission under re-insurance treaties, wherever applicable, is recognized in
the year of final determination of the profits and as intimated by Reinsurer.
2.4 Reinsurance ceded
Reinsurance premium in respect of proportional reinsurance is ceded at the commencement of the risk
over the contract period or the period of risk. Non-proportional reinsurance premium is ceded when
incurred and due. Any subsequent revisions to, refunds or cancellations of premiums are recognized in
the year in which they occur.
2.5 Reinsurance accepted
Reinsurance inward acceptances are accounted for on the basis of reinsurance slips accepted from the
reinsurers.
2.6 Acquisition costs
Acquisition costs, defined as costs that vary with, and are primarily related to, the acquisition of new
and renewal insurance contracts viz., commission, rewards and incentives, policy issue expenses etc.,
are expensed in the year in which they are incurred. In case of long term motor insurance policies,
commission is expensed at the applicable rates on the premium allocated for the year.
2.7 Premium received in advance
Premium received in advance represents premium received in respect of policies issued during the year,
where the risk commences subsequent to the Balance Sheet date.
2.8 Reserve for unexpired risk
Reserve for unexpired risk represents that part of the net premium (i.e., premium, net of reinsurance
ceded) which is attributable to, and set aside for subsequent risks to be borne by the Company under
contractual obligations on contract period basis or risk period basis, whichever is appropriate, subject to
a minimum of 100% in case of Marine Hull business and in case of other lines of business based on net
premium written on all unexpired policies at Balance Sheet date by applying 1/365th method on the
unexpired period of respective policies.

2.9 Premium deficiency
Premium deficiency is recognized if the ultimate amount of expected net claim costs, related expenses
and maintenance costs exceeds the related premium carried forward to the subsequent accounting
period as the reserve for unexpired risk. The Company considers maintenance costs as relevant
direct costs incurred for ensuring claim handling operations. As per IRDAI circular IRDA/F&A/CIR/
FA/126/07/2013, dated 3 July 2013 (Corrigendum to Master Circular IRDA/F&I/CIR/F&A/231/10/2012, dated
5 October 2012), premium deficiency, if any, has been recognized at Segmental Revenue Account Level.
The expected claim costs are calculated and duly certified by the Appointed Actuary.
2.10 Claims incurred
Claims are recognized as and when reported. Claims incurred comprises claims paid, change in the
outstanding provision of claims and estimated liability for claims incurred but not reported (‘IBNR’) and
claims incurred but not enough reported (‘IBNER’). It also includes survey fees, legal expenses and other
costs directly attributable to claims.
Claims paid (net of recoveries including salvage retained by the insured and includes interest paid towards
claims) are charged to the respective revenue account when approved for payment. Where salvage is
retained by the Company, the recoveries from sale of salvage are recognized at the time of sale.
Provision is made for estimated value of outstanding claims at the Balance Sheet date net of
reinsurance, salvage and other recoveries. Such provision is made on the basis of the ultimate amounts
that are likely to be paid against each claim, as anticipated and estimated by the management in light
of past experience and subsequently modified for changes, as appropriate.
Amounts received/receivable from the reinsurers’ and coinsurers’, under the terms of the reinsurance
and coinsurance arrangements respectively, are recognized together with the recognition of the claim.
2.11 Claims Incurred but not reported and claims incurred but not enough reported
Incurred But Not Reported (IBNR) reserve is a provision for all claims that have occurred prior to the end
of the current accounting period but have not been reported to the Company. The IBNR reserve also
includes provision for claims Incurred But Not Enough Reported (IBNER). The said liability is determined
by Appointed Actuary based on actuarial principles. The actuarial estimate is derived in accordance
with relevant IRDAI regulations and guidance note 21 issued by the Institute of Actuaries of India. The
Appointed Actuary has certified that the methodology and assumptions used to estimate the liability are
appropriate and in accordance with guidelines and norms issued by the Institute of Actuaries of India in
concurrence with the IRDAI regulations.
2.12 Operating expenses related to the insurance business
As required by IRDAI (Expenses of Management of Insurers transacting General or Health Insurance

Business) Regulations, 2016, the Company has a Board approved policy for allocation and apportionment
of expenses of management amongst various business segments. The expenses of management are
segregated between those which can be directly attributed to a particular business segment and those
which cannot be so attributed. Operating expenses which are directly attributable to a particular business
segment and identifiable as such are allocated directly to that segment. Operating expenses which
are not directly identifiable to any business segment, but which are attached to specific functions are
apportioned based on the most suitable driver of apportionment (including gross written premium, net
written premium, number of policies, etc.) for respective functions. Operating expenses which are not
attached to specific functions are apportioned based on the most suitable driver (including gross written
premium, net written premium, number of policies, etc.) of apportionment at Company level.
2.13 Income from Investments: Segregation between Policyholders’ and Shareholders’ funds
Income earned from investments and gains or loss on sale of investments is allocated to Revenue
Account and Profit and Loss Account on the basis of actual holding of the investments of the
Policyholders and Shareholders as bifurcated according to the IRDAI Circular No. IRDA/F&A/CIR/
CPM/056/03/2016 dated 4 April 2016 with effect from 1 October 2016. The income earned from
investments, gains or loss on sale of investments and other income are further allocated to the lines of
business in proportion of net premium.

2.14 Fixed asset, depreciation and amortization
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost (including incidental expenses relating to acquisition and
installation) less accumulated depreciation. Assets costing up to Rs. Twenty thousand are depreciated
fully in the year of acquisition.
Subsequent expenditure incurred on tangible assets is expensed out except where such expenditure
results in an increase in future benefits from the existing assets beyond its previously assessed standard
of performance.
In respect of liabilities incurred in acquisition of fixed assets in foreign exchange, the net gain or loss
arising on conversion/settlement is charged to the Revenue Account.
Gains or losses arising from de-recognition of fixed assets are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized in the Revenue Account
when the asset is de-recognized.
Depreciation on assets is provided based on Management’s assessment of useful life which reflect the
Useful life specified in Schedule II of the Companies Act, 2013, as follows:
Useful Life (in years) Useful Life (in years) as

as per Management’s per Schedule II of the
Nature of assets assessment Companies Act, 2013.
Information technology equipment

-End user devices, such as, desktops, laptops, etc. 3 3
-Servers and networks 6 6
Vehicles * 8 8
Office equipment 5 5
Furniture & fixtures 10 10
Buildings 60 60
Air conditioner (part of office equipment) 5 5
Electrical fittings (part of furniture & fittings)** 10 10
* Useful life of vehicle allotted to the employees is considered 4 years as per management estimation.
**Lease hold improvements and electrical fittings installed at leased premises are depreciated over the primary period of lease which is generally 3 years.
Intangible fixed assets and amortization
Intangible fixed assets representing software are recorded at its acquisition price and are amortized over
their estimated useful life on a straight-line basis, commencing from the date the assets are available
for use. Significant expenditure on improvements to software are capitalized when it is probable that
such expenditure will enable the asset to generate future economic benefits in excess of its originally
assessed standards of performance and such expenditure can be measured and attributed to the asset
reliably. Subsequent expenditures are amortized over the remaining useful life of original software. The
management has estimated the useful life for such software as three years except in case of the newly
implemented Policy Administration System where the useful life is estimated as ten years (as against
the maximum useful life of ten years prescribed under AS 26 for intangible assets).
The useful life of the asset is reviewed by the management at each Balance Sheet date.
The Company provides pro rata depreciation from/to the month in which the asset is acquired or put to
use/disposed off as appropriate.
Gains or losses arising from de-recognition of intangible assets are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognized in the Revenue
Account when the asset is de-recognized.

Capital work in progress and advances
Capital work in progress includes assets not ready for the intended use and are carried at cost,
comprising direct cost and related incidental expenses and advances paid for purchase of fixed assets.
Impairment of assets
i) The carrying amounts of all assets are reviewed by the Company at each Balance Sheet date. If there
is any indication of impairment based on internal/external factors, an impairment loss is recognized
wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount
is greater of the assets net selling price and value in use. Value in use is the present value of the
estimated future cash flows expected to arise from the continuing use of the assets and from its disposal
at the end of its useful life. In assessing value in use the estimated future cash flows are discounted to
their present value at a rate that reflects current market assessments of the time value of money and
the risks specific to the asset, as determined by the management.
ii) After impairment, depreciation is provided on the revised carrying amount of the asset over its
remaining useful life, if any.
2.15 Investments
Investments are made and accounted for in accordance with the Insurance Act, 1938, as amended from
time to time including the amendment brought by the Insurance Laws (Amendment) Act, 2015, the
Insurance Regulatory and Development Authority of India (Investments) Regulations, 2016 as amended
from time to time, Insurance Regulatory and Development Authority (Preparation of Financial Statements
and Auditor’s Report of Insurance Companies) Regulations, 2002 and various other circulars/notifications
issued by the IRDAI in this context from time to time.
Investments are recorded on trade date at cost, which includes brokerage, transfer charges, transaction
taxes as applicable, etc. and excludes pre-acquisition interest, if any.
Classification:
Investments maturing within twelve months from Balance Sheet date and investments made with
the specific intention to dispose off within twelve months from Balance Sheet date are classified as
short-term investments. Investments other than short term investments are classified as long-term
investments.
The investments funds are segregated into Policyholders’ and Shareholders’ fund on security level basis
in compliance with circular no IRDA/F&A/CIR/CPM/056/03/2016 dated – 4 April 2016. Subsequently, IRDAI
issued circular IRDA/F&A/CIR/CPM/010/01/2017 dated – 12 January 2017 to “bifurcate the Policyholders’
and Shareholders’ funds at the end of each quarter at the “fund level” on “notional basis”. The Company
continues to follow the practice of segregating investments into Policyholders’ and Shareholders funds
at security level on quarterly basis in compliance with circular no IRDA/F&A/CIR/CPM/056/03/2016. The
said practice has been communicated to IRDAI.
Debt Securities and Non-convertible Preference Shares

All debt securities (except for Additional Tier 1 (Basel III Compliant) Perpetual Bonds (“AT1 Bonds”))
including government securities and non-convertible preference shares are considered as ‘held to
maturity’ and accordingly stated at historical cost adjusted for amortization of premium or accretion of
discount on constant yield to maturity basis in the Revenue account and Profit and Loss account over the
period of maturity/holding.
AT1 Bonds considered to be a part of Equity, are valued at applicable Market Yield Rates published by
any rating agency registered with Securities Exchange Board of India (SEBI).
Money market instruments (including treasury bills, certificate of deposits, commercial papers,
collateralized borrowing & lending obligation – CBLO and Tri-Party Repo - TREPs) are valued at historical
cost and adjusted for amortization of premium or accretion of discount, as may be the case, over the
period of maturity/holding on a straight-line basis.

Equity Shares
Listed and actively traded securities are stated at the last quoted closing price on the National Stock
Exchange of India Limited (NSE). In case the equity shares are not listed on the NSE, then they are
valued on the last quoted closing price on BSE Limited. Unrealized gains or losses are credited / debited
to the fair value change account.
Unlisted equity shares are stated at historical cost.
Mutual Fund Units
Mutual fund units are stated at their Net Asset Value (‘NAV’) at the Balance Sheet date. Unrealized gains
or losses are credited / debited to the fair value change account.
Loans – Investment
Loans given are stated at historical cost.
Fair Value Change Account
Fair value change account represents unrealized gains or losses in respect of investments in equity
securities and mutual fund units and AT1 Bonds outstanding at the close of the year. The balance in the
account is considered as a component of Shareholders’ funds in the Balance Sheet but not available for
distribution as dividend.
Impairment of investment
The Company assesses at each Balance Sheet date whether there is any evidence of impairment of any
investments. In case of impairment, the carrying value of such investment is reduced to its fair value
and the impairment loss is recognized in the Profit and Loss Account after adjusting it with previously
recognized revaluation reserve/fair value change account. However, at the Balance Sheet date if there is
any indication that a previously recognized impairment loss no longer exists, then such loss is reversed
and the investment is restated to that extent.
2.16 Employee benefits
i) Short term employee benefits
Employee benefits payable wholly within twelve months of rendering the service are classified as short
term employee benefits and are recognized in the period in which the employee renders the related
service. These benefits include salaries, bonus, ex-gratia and compensated absences. All short term
employee benefits are accounted on undiscounted basis.
ii) Long Term post-employment benefits - defined benefit plan
The gratuity benefit payable to the employees of the Company is as per the provisions of the Payment
of Gratuity Act, 1972 or the Company’s gratuity plan, whichever is higher. The Company accounts for
liability for future gratuity benefits based on independent actuarial valuation under revised Accounting
Standard 15 (AS 15) on ‘Employee Benefits’. Contributions towards gratuity liability of the Company
are made to the Bajaj Allianz General Insurance Company Limited Employees Group Gratuity cum Life
Assurance Scheme Trust, which is administered by the Company. The gratuity liability of the Company is
actuarially determined at the Balance Sheet date using the `projected unit credit method’.
The Company contributes towards net liabilities to the Bajaj Allianz General Insurance Company Limited,
Employees Group Gratuity cum Life Assurance Scheme. The Company recognizes the net obligation
of the Scheme in Balance Sheet as an asset or liability, respectively in accordance with Accounting
Standard (AS 15) (revised 2005), ‘Employee benefits’. The discount rate used for estimation of liability
is based on Government securities yield. Gain or loss arising from change in actuarial assumptions/
experience adjustments is recognized in the Revenue Account for the period in which they emerge.
Expected long term rate of return on assets has been determined based on historical experience and
available market information.

iii) Long Term post-employment benefits - defined contribution plans
“Superannuation: The Company has established a defined contribution scheme for superannuation
to provide retirement benefits to its employees. This superannuation scheme (Bajaj Auto Employee
Superannuation Scheme) has been established along with the Company’s promoter group. Contributions
to this scheme are made by the Company on an annual basis and charged to the Revenue Account, as
applicable. The expenses are booked on an undiscounted basis. The Company has no further obligation
beyond the monthly contribution.”
Provident fund: Each eligible employee and the Company make contribution at a percentage of the
basic salary specified under the Employee Provident Funds and Miscellaneous Provisions Act, 1952. The
Company recognizes contributions payable to the Provident fund scheme as an expenditure when the
employees render the related service. The Company has no further obligations under the plan beyond its
periodic contributions.
National Pension Scheme contributions: For eligible employees, the Company makes contributions to
National Pension Scheme. The contributions are charged to the Revenue Account, as relevant, in the
year the contributions are made.
Other contributions: The Company makes contributions to Employee Labour Welfare Fund, Employee’s
State Insurance Corporation and Employee Deposit Linked Insurance Schemes. The contributions are
charged to the Profit and Loss and Revenue Account, as relevant, in the year the contributions are made.
iv) Compensated absences
The employee can carry forward a portion of the unutilized accrued compensated absences and utilize
it in future service periods or receive cash compensation on termination of employment. The Company
records an obligation for such compensated absences in the period in which the employee renders the
services that increase this entitlement. The obligation is measured on the basis of independent actuarial
valuation using the Projected Unit Credit Method.
v) Long term incentive plan
The Company has a Long Term Incentive Plan (‘LTIP’) for selected management personnel. The plan is a
discretionary deferred compensation plan. It is a rolling plan with annual accruals and a defined payment
schedule. Provision for LTIP liability is accrued and provided for on the basis of actuarial valuation made
at the Balance Sheet date.
vi) Employee Stock Option plan (ESOP)
The options are accounted for on an intrinsic value basis in accordance with the Guidance Note on
Accounting for Employee Share based Payments, issued by the Institute of Chartered Accountants of
India (ICAI). Intrinsic value of option, which is the difference between market price of the underlying
stock and the exercise price on the grant date is amortized over the vesting period with a charge to the
Revenue Account. Options that lapse are reversed by a credit to Revenue Account equal to the amortized
portion of the value of the lapsed options. The Company administers it’s ESOP scheme through the Bajaj
Finserv ESOP Trust, as the settler of the trust for its part.
2.17 Foreign currency transactions
“In accordance with the requirements of Accounting Standard (AS) 11, “The Effects of Changes in Foreign
Exchange Rates”, transactions, foreign currency transactions are initially recognized in Indian Rupees,
by applying the exchange rate between the Indian Rupee and the foreign currency at the date of the
transaction.“
Subsequent conversion on reporting date of foreign currency monetary items are translated using the
exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of
historical cost denominated in a foreign currency, are reported using the exchange rate at the date
of the transaction. Non-monetary items, which are measured at fair value or other similar valuation
denominated in a foreign currency, are translated using the exchange rate at the date when such value
was determined.
Exchange differences are recognized as income or as expenses in the period in which they arise.

2.18 Operating lease
Leases, where the lessor effectively retains substantially all the risks and rewards of ownership of
the leased item, are classified as operating lease. The total lease rentals (including scheduled rental
increases) in respect of an asset taken on operating lease are charged to the Revenue Account on a
straight line basis over the lease term. Initial direct costs incurred specifically for an operating lease are
charged to the Revenue Account.
2.19 Contributions to Terrorism and Third Party Insurance Pools
i) Terrorism pool
In accordance with the requirements of IRDAI, the Company, together with other insurance companies,
participated in the Terrorism Pool. This pool is managed by the General Insurance Corporation of India
(‘GIC’). Amounts collected as terrorism premium in accordance with the requirements of the Tariff
Advisory Committee (‘TAC’) are ceded at 100% of the terrorism premium collected to the Terrorism
Pool, subject to conditions and an overall limit of Rupees 20,000,000 thousand (Previous year Rupees
20,000,000 thousand) per location/compound.
In accordance with the terms of the agreement, GIC retro cedes, to the Company, terrorism premium to
the extent of the share agreed to be borne by the Company in the risk, which is recorded as reinsurance
accepted. Such reinsurance accepted is recorded based on quarterly confirmation received from GIC.
Accordingly, reinsurance accepted on account of the Terrorism Pool is recorded in accordance with the
latest statement received from GIC which is generally one quarter in lag.
The entire amount of reinsurance accepted for the current year on this account, net of claims and
expenses, up to the above date, has been carried forward to the subsequent accounting period as
‘Unexpired Risk Reserve’ for subsequent risks, if any, to be borne by the Company.
ii) Motor Third Party Obligation (MTP)
IRDAI issued a circular towards “Obligation of insurer in respect of Motor Third Party Insurance Business,
Regulations, 2015” applicable with effect from 1 April 2015. Every insurer, for the purpose of Section 32D
of the Insurance Act, 1938, during a financial year, shall underwrite such minimum percentage of the
90% of the overall motor third party insurance business premium of the industry for the immediately
preceding financial year.
2.20 Contributions to Solatium funds
The Company provides for contribution to Solatium fund at 0.10% of total Third Party Premium of direct
business as per requirements of IRDAI.
2.21 Income Tax
Tax expense comprises of current and deferred tax. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the provisions of the Income Tax Act, 1961.
Deferred income tax reflects the impact of current year timing differences between taxable income
and accounting income and reversal of timing differences for earlier years. Timing differences are the
differences between taxable income and accounting income for a period that originate in one period and
are capable of reversal in one or more subsequent periods.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted
at the Balance Sheet date. Deferred tax assets are recognized and carried forward only to the extent
that there is a reasonable certainty that sufficient future taxable income will be available against
which such deferred tax assets can be realized. If the Company has unabsorbed depreciation or carry
forward business losses, deferred tax assets are recognized only if there is virtual certainty supported
by convincing evidence that such deferred tax assets can be realized against sufficient future taxable
profits.
At each Balance Sheet date, the Company re-assesses unrecognized deferred tax assets. It recognizes
previously unrecognized deferred tax assets to the extent that it has become reasonably certain or
virtually certain, as the case may be, that sufficient future taxable income will be available against which
such deferred tax assets can be realized.

Deferred tax asset (net of the deferred tax liability) is disclosed on the face of the Balance Sheet. The
breakup of deferred tax assets and deferred tax liabilities into major components of the respective
balances has been disclosed in Schedule 16,note 18.
2.22 Goods and Services Tax (GST)
Goods and Services Tax (GST) collected is considered as a liability against which GST paid for eligible
input services, to the extent claimable, is adjusted and the net liability is remitted to the appropriate
authority as stipulated. Unutilized GST credits, if any, are carried forward under “Others – Unutilized GST
Carried Forward” and disclosed in Schedule 12 for adjustments in subsequent periods and GST liability
to be remitted to the appropriate authority is disclosed under “Others- GST Payable” in Schedule 13. GST
paid for eligible input services not recoverable by way of credits is recognized in the Revenue Account
as expenses under a separate line item in Schedule 4 and Schedule 4(A).
2.23 Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when an enterprise has a present obligation as a result of a past event and it
is probable that an outflow of resources will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to their present value and are determined
based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to reflect the current best estimates.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or
disclosure is made.
Contingent assets are neither recognized nor disclosed in the financial statements.
2.24 Earnings per Share
The basic earnings per share is computed by dividing the net profit in the Profit and Loss Account
attributable to the equity shareholders by weighted average number of equity shares outstanding during
the reporting year.
Number of equity shares used in computing diluted earnings per share comprises the weighted average
number of shares considered for deriving basic earnings per share and also weighted average number
of equity shares which would have been issued on the conversion of all dilutive potential shares. In
computing diluted earnings per share only potential equity shares that are dilutive are included.
2.25 Cash and cash equivalents
Cash and cash equivalents include cash and cheques in hand, bank balances and other investments
(fixed deposits) with original maturity of three months or less.

NOTES TO ACCOUNTS
3. Contingent liabilities
Contingent liabilities not provided for in respect of claims against the Company not acknowledged as
debts other than insurance matters –
(` in ‘000)
Sr. No. Particulars 31 March 2020 31 March 2019
1 Partly paid up investments Nil Nil

Underwriting commitments outstanding (in
2 Nil Nil
respect of shares and securities)
Claims other than those under policies not
3 Nil Nil
acknowledged as debts
Guarantees given by or on behalf of the
4 Nil Nil
Company
Statutory demands/liabilities in dispute, not
5
provided for, in respect of
a) Income Tax Nil Nil
b) Service Tax1 1,759,147 1,439,163
Reinsurance obligations to the extent not
6 Nil Nil
provided for in accounts
Notes:
1. Includes a demand from the tax authorities towards recovery of amount of Cenvat credit availed by the Company. The matter is in appeal before CESTAT.
The Company is in conformity with various legal and judicial pronouncements / opinions and believes its position is tenable under the respective
regulations. During the year an additional demand of Rs. 319,984 thousand has been made by the tax authorities on the same matter.
2. The requirement to disclose any amount transferred to Senior Citizen Welfare Fund (SCWF) has been withdrawn vide IRDAI circular no. IRDA/F&A/CIR/
MISC/105/07/2018, dated 11 July 2018.
4. Additional Disclosures on Expenses
Additional disclosures on expenses pursuant to the IRDAI Circular 067/IRDA/F&A/CIR/MAR-08 dated

March 28, 2008 have been detailed herein below:
(` in ‘000)
Particulars for the year ended 31 March 2020 31 March 2019
Outsourcing expenses 3,691,720 2,280,855

Business development 1,637,282 924,903
Marketing support 7,107,110 4,055,826
5. Capital commitments
Commitments made and outstanding for acquisition of fixed assets amount to Rupees 592,154 thousand
(Previous year Rupees 542,697 thousand).
6. Actuarial methodology
The Appointed Actuary has certified to the Company that actuarial estimates for IBNR (including IBNER)
reserves have been determined using actuarial principles. In the determination, the Actuarial Practice
Standards issued by the Institute of Actuaries of India with the concurrence of the Authority and any
directions issued by the Authority in this behalf have been followed. Where credible data is available, the
Actuary has chosen to adopt the Chain Ladder Method. The Chain Ladder Method has accordingly been
applied to Motor excluding Standalone CPA, Fire, Marine Cargo, Engineering, Package, Rural, Extended
Warranty, Personal Accident excluding PMSBY, Workmen’s Compensation, Health excluding govt Scheme,

Travel, Motor CVTP Pool and Miscellaneous lines of business. These constitute almost 91.5% of the
Company’s total Net IBNR Reserves as on 31 March 2020. Other than this, frequency-severity method,
expected ultimate loss ratio method or fixed IBNR method have also been used. These IBNR reserves
include Margin for Adverse Deviation and reserves for Unallocated Loss Adjustment Expenses (ULAE) for
the claims up to 31 March 2020.
Net IBNR reserves have been arrived at on the basis of actuarial estimates based on the claim data, after
allowance for reinsurance recoveries.
7. Claims
a. Claims settled and outstanding for more than six months – Rupees Nil (Previous year – Rupees Nil).
b. Claims made in respect of contracts exceeding four years – Rupees Nil (Previous year – Rupees Nil)
8. Premium with varying risk pattern
Extent of premium income recognized based on varying risk pattern – Rupees Nil (Previous year – Rupees Nil).
9. Computation of managerial remuneration

(` in ‘000)
Particulars For the year ended 31 March 2020 For the year ended 31 March 2019
Mr. Tapan Singhel

· Salary, allowances and bonus
116,266 95,135
(Including contributions to funds)
· Perquisites 1,570 1,717
Expenses towards gratuity, compensated absence and long term incentives are determined actuarially
on an overall Company basis annually and accordingly have not been considered in the above
information, except to the extent paid.
The managerial remuneration is in accordance with the approval 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,
1938. Managerial remuneration in excess of Rupees 15,000 thousand has been charged to Profit and
Loss Account.
10. Premium deficiency
The Company has provided Premium Deficiency Rupees Nil thousand (Previous year – Rupees 44,071
thousand) as per IRDAI regulatory guideline - refer Schedule 16 note 2.9.
11. Rural and Social obligation

Percentage of business sector – wise (Based on gross direct premium):
(` in ‘000, Count – numbers)
Business No. of % of No. of No of % of
sector GDPI Policies No of Lives GDPI GDPI Policies Lives GDPI
Rural 10,122,333 1,880,163 - 7.92 8,950,682 2,446,745 - 8.09
Social 4,050 447 4,696,948 0.00 11,882 998 4,284,720 0.01
Urban 117,671,329 24,994,588 - 92.08 101,631,548 18,272,585 - 91.90
Total 127,797,712 26,875,198 18,758,407 100 110,594,112 20,720,328 22,769,357 100

As against the rural contribution of 7% of GDPI mandated by IRDAI, the Company’s rural contribution is 7.92%. As against the requirement of 5% of
the total lives written in previous year, the Company has written 20.63% of total lives written in previous year under the social sector.

12. Extent of risk written and reinsured based on Gross written premium (excluding excess of loss
and catastrophe reinsurance).
Particulars % age of business written % age of business written
Risk Retained 64% 72%

Risk Insured 36% 28%
Total 100% 100%
13. Contribution to Environment Relief Fund
The Company has collected an amount of Rupees 5,400 thousand (Previous year - Rupees 5,299
thousand) towards Environment Relief Fund from public liability policies. The Company has paid all
the funds collected towards Environment Relief Fund up to 29 February 2020 to United India Insurance
Company, the implementing agency for the fund. The balance payable amounting to Rupees 286
thousand (Previous year Rupees 330 thousand) has been disclosed under the head current liabilities in
schedule 13.
14. Segmental reporting
The Company’s primary reportable segments are business segments, which have been identified in
accordance with the Regulations. The operating expenses, income from investments and other income
attributable to the business segments are allocated as mentioned in Schedule 16 note numbers 2.12,
2.13 and 21 respectively. Segment revenue and results have been disclosed in the financial statements.
Due to inherent complexities, segment assets and liabilities have been identified to the extent possible
in the statement annexed hereto. There are no reportable geographical segments since the Company
provides services only to customers in the Indian market or to Indian interests overseas and does not
distinguish any reportable regions within India.
15. Related party disclosures
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 (Accounting Standards)
Rules, 2006.
16. Operating lease payments

The Company’s significant leasing arrangements include agreements for official and residential premises.
These lease agreements are generally mutually renewal / cancellable by the lessor / lessee. The future
minimum lease payments relating to non-cancellable leases are disclosed below:
(` in ‘000)
Payable not later than one year 43,093 51,130
Payable later than one year but not later than

32,065 51,414
five years
Payable later than five years - -
· Amount charged to Revenue Accounts in respect of all lease arrangements aggregates Rupees
365,575 thousand (Previous year Rupees 325,402 thousand).
· There are no transactions in the nature of sub leases.
· The period of agreement is generally for three years and renewable thereafter at the option of
the lessee.

17. Earnings per Share (‘EPS’)
Particulars FY 2020 FY 2019
Profit after Tax
Basic earnings before extra-ordinary items [A] ` 9,987,770 7,798,583
Basic earnings after extra-ordinary items [B] ` 9,987,770 7,798,583
Weighted average number of equity shares (par

110,227,250 110,227,250
value of ` 10 each) [C]
Basic and diluted earnings per share [A/C] ` ` 90.61 ` 70.75
Basic and diluted earnings per share after

` 90.61 ` 70.75
extraordinary items [B/C] `
As there were no dilutive equity shares or potential equity shares issued, no reconciliation between the
denominator used for computation of basic and diluted earnings per share is necessary.
18. Taxation
The Taxation Laws (Amendment) Act, 2019 has amended the Income Tax Act, 1961, and the Finance (No. 2)
Act, 2019 by inserting section 115BAA which provides domestic companies with an option to opt for lower
tax rates, provided they do not claim certain deductions. The Company has elected to exercise the option
and has accordingly recognized Provision for Income Tax for the year ended 31 March 2020. Owing the said
change, the Company has re-measured the opening balance of Deferred Tax Assets as at 1 April 2019 at
the lower tax rate prescribed in the said section leading to a reversal of Rs. 431,687 thousand for the year
ended 31 March 2020.
The deferred tax assets and liabilities, arising due to timing differences have been recognized in the
financial statements as under:
(` in ‘000)
Deferred tax asset 31 March 2020 31 March 2019

Reserve for unexpired risks 220,293 1,416,834
Employee Benefits 27,335 36,108
Long Term Incentive Plan 86,469 103,944
Provision for doubtful debts 11,595 12,643
Solatium fund 35,180 37,904
Provision for diminution in value of Investments 465,737 197,066
Total 846,609 1,804,499
Deferred tax liability
Depreciation as per Section 32 of Income Tax Act,
-261,448
1961 -208,652
Net deferred tax asset 637,957 1,543,051
Deferred Tax (income) / expense recognized in
-1,011,693
the Profit and loss account 905,094

During the financial year ended 31 March 2020, the current tax includes reversal of income tax provision
of Rupees Nil thousand (Previous year – Rupees 33,472 thousand) for earlier years being difference
between tax liability as per return of income and tax liability provided in books of account.
The Current tax for the financial year ended 31 March 2020 includes provision of income tax of Rupees
11,578 thousand (Previous year – Rupees Nil) for earlier years.
19. Employee benefit plans
i. Defined contribution plan
The Company has recognized following amounts in the Revenue and the Profit and Loss account, as
relevant, for the year in respect of contribution towards defined contribution plans:
(` in ‘000)
Provident fund* 161,129 120,362

Superannuation scheme 5,052 4,243
Employees state insurance corporation 5,163 7,012
Labour welfare fund 390 370
Contribution to National Pension Scheme 21,305 15,653
Total 193,039 147,640
*Note: In February 2019, the Supreme Court had delivered ruling on the composition of basic wages for the purposes of deduction and contribution to
the Employees Provident and Pension funds. The Company has implemented the above ruling w.e.f. 1 April 2019. The Company, in the interest of its
employees, further awaits clarity on the complexities revolving around the retrospective application of the said order, the ambiguity reflected by the
divergent views of legal experts and the response/direction from the authorities, including on representations made by an industry association in this
regard.
ii. Defined benefit plan (gratuity)
The Gratuity plan of the Company provides for a lump–sum payment to vested employees at retirement/
termination/death or on resignation from employment. The payment is based on employee’s last
drawn salary and number of years of employment with the Company. The actuarial valuation of gratuity
liability of the Company is determined at each Balance Sheet date using projected unit cost method. The
Company makes the contribution to an approved gratuity fund which is maintained and managed by
Bajaj Allianz Life Insurance Company Limited. The following table shows the amounts recognized in the
Balance Sheet.
I. Revenue Account
Net employee benefit expense (recognized in Employee cost)

(` in ‘000)
Current service cost 56,932 47,110

Interest cost on defined benefit obligation 30,203 26,886
Expected return on plan assets (-26,715) (-23,689)
Net actuarial loss recognized in the year (-12,483) 33,391
Net benefit expense 47,937 83,698
Actual return on plan assets 37,278 22,369

II. Balance Sheet

(i) Details of provision for gratuity
(` in ‘000)
Defined benefit obligation 498,581 437,009

Fair value of plan assets -505,472 -445,557
Net liability/(asset) recognized in the
-6,891 -8,548
Balance Sheet
(ii) Changes in the present value of the defined benefit obligation are as follows:
(` in ‘000)
Opening defined benefit obligation 437,009 366,834

Interest cost 30,203 26,886
Current service cost 56,932 47,110
Benefits paid (-23,643) (-35,892)
Actuarial losses/(gains) on obligation (-1,920) 32,071
Closing defined benefit obligation 498,581 437,009
(iii) Changes in the fair value of plan assets are as follows:

(` in ‘000)
Opening fair value of plan assets 445,557 371,599

Expected return 26,715 23,689
Contributions by employer 46,280 87,480
Benefits paid (-23,644) (-35,892)
Actuarial (losses)/gains 10,564 (-1,320)
Closing fair value of plan assets 505,472 445,557
The Company expects to contribute Rupees 90,000 thousand to gratuity in FY 2021
(iv) The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
31 March 2020 31 March 2019
Particulars % %
Investments with insurer 100 100

Asset allocation:
Government securities 67 56
Debentures and bonds 19 37
Fixed deposits 2 2
Money market instruments 2 0
Others 10 5

(v) The principal assumptions used in determining the benefit obligations for the Company’s gratuity plans
are shown below:
31 March 2020 31 March 2019
Particulars % %
Discount rate 5.45 6.80

Expected rate of return on assets 5.50 6.75
Increase in compensation cost 7 10
The estimates of future salary increases, considered in actuarial valuation, take account of inflation,
seniority, promotion and other relevant factors, such as supply and demand in the employment market.
(vi) Experience Adjustments for the current and previous four years are as follows:
(` in ‘000)
31 March 31 March 31 March 31 March 31 March

Particulars 2020 2019 2018 2017 2016
Defined benefit obligation 498,581 437,009 366,834 304,976 198,707

Plan assets 505,472 445,557 371,599 304,976 198,707
Surplus / (deficit) 6,891 8,548 4,765 - -
Experience adjustments on
37,820 35,834 57,349 8,992
plan liabilities 34,067
Experience adjustments on
10,562 -1,320 -4,835 7704 861
plan assets
iii) Other long-term benefits
Compensated absence
Liability for compensated absence for employees is determined based on actuarial valuation which has
been carried out using the projected accrued benefit method which is same as the projected unit credit
method in respect of past service. The assumptions used for valuation are:
(` in ‘000)

Expenses Recognized in the Profit and
Loss Account and Revenue Account 105,159 71,543
During the year
Actuarial assumptions used
Discount rate 5.45% 6.80%
Salary escalation rate* 7.00% 10.00%
Indian Assured Lives Mortality Indian Assured Lives Mortality
Mortality Table (2012-14) Ultimate (2012-14) Ultimate
* Future salary increases considered in actuarial valuation take into account inflation, seniority, promotion and other relevant factors such as supply
and demand in the employment market.

Long–term incentive plans
Liability for the scheme is determined based on actuarial valuation which has been carried out using the
projected accrued benefit method which is same as the projected unit credit method in respect of past
service. The assumptions used for valuation are:
(` in ‘000)

Expense recognized in income statement
136,198 125,421
during the year
Actuarial assumptions used
Discount rate 5.45% 6.80%
Attrition rate 5.00% 5.00%
Employee Stock Options Plans

The Company has allotted stock options to eligible employees under Employee Stock Option Scheme
2018 (ESOP 2018) and Employee Stock Option Scheme 2019 (ESOP 2019). These grants have a graded
vesting over three years and the vested options have to be exercised by employees within five
years from the date of vesting subject to the norms prescribed by the Nomination and Remuneration
Committee. The mode of settlement of the scheme is through equity shares of the Bajaj Finserv Limited
(holding company). Details of each scheme is as follows:
Particulars ESOP 2019 No of options ESOP 2018 No of options
Date of Grant 16 May 2019 19 July 2018

No. of Options Granted 45,200 16,625
Exercise Price ` 7,454.70 ` 6,365.70
Graded Vesting Period:
1st Year 34% 34%
2nd Year 33% 33%
3rd Year 33% 33%
This scheme is administered by the Bajaj Finserv Employee Stock Option Trust with the company as the
settler for its scheme. The exercise price under the scheme is based on the fair value (Market Value) of
the shares on the grant date.
The Company follows the intrinsic value method of accounting for stock options granted to employees.
The intrinsic value of the options issued under the schemes is ‘Nil’ as the exercise price of the option is
the same as quoted market price on the grant date and accordingly, no expenses are recognized in the
books.
A summary of status of ESOP schemes in terms of options granted, forfeited, exercised, outstanding and
exercisable is as given below:
(` in ‘000)
FY 2020 FY 2019
Particulars ESOP 2019 ESOP 2018 ESOP 2019 ESOP 2018
Outstanding at the beginning of the year - 15,900 - -

Granted during the year* 45,200 1,725 - 16,625
Forfeited/lapsed during the year 825 182 - 725
Exercised during the year - 130 - -
Outstanding at the end of the year 44,375 17,313 - 15,900
Exercisable at the end of the year - 5,879 - -
* Including transfer in within group companies

Had the Company followed the fair value method for valuing its options, the charge to the Revenue
Account for the year would have been higher by Rs. 61,028 thousand (Previous year Rs.10,678 thousand)
and the profit after tax would have been lower by Rs. 44,351 thousand (Previous year Rs 7,200 thousand).
Consequently, Company’s basic and diluted earnings per share would have been Rs. 90.21 (Previous
year: Rs.70.68).
The fair value of options has been calculated using the Black-Scholes model. The fair value on the date
of grant and the key assumptions used in Black-Scholes model for calculating fair value of each option
are as follows:
(` in ‘000)
Weighted average fair value on the date of grant ` 2,240.09 ` 1,930.46

Risk-free interest rate 7.56% 8.07%
Expected life One year after Vesting One year after Vesting
Expected Volatility 30.40% 29.65%
Expected dividend yield ` 1.75 Per share ` 1.75 Per share
* Based on historical stock prices using annualized standard deviation of daily change in stock price.
20. Summary financial statements
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.
21. Expenses related to Policyholders’ and Shareholders’ investments
Expenses directly identifiable with investment activity of Shareholders’ funds amounting to Rupees
18,070 thousand (previous year Rupees 14,304 thousand) are included under “expenses other than those
relating to insurance business” in the Profit and Loss Account. Further, Operating expenses related to
insurance business in Schedule 4, includes indirect expenses of Rupees 50,645 thousand (previous year
Rupees 38,398 thousand) which could be apportionable towards investments activity of Policyholders’
funds. Out of the said, expenses amounting to Rupees 13,010 thousand (previous year Rupees 15,487
thousand) has been computed on the basis of number of documents, income or staff cost as appropriate.
22. The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
According to information available with the management, on the basis of information received from the
suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006
(MSMED) Act, the Company has amounts due to Micro, Small and Medium Enterprises under the said Act
as at 31 March 2020 as follows:
(` in ‘000)
The principal amount remaining unpaid to any supplier as at the

i) 38,588 25,449
end of the year
ii) Interest due on the above amount Nil Nil
The amount of interest paid by in terms of Section 16 of the Micro,
iii) Nil Nil
Small and Medium Enterprises Development Act, 2006
Amounts of the payment made to the supplier beyond the appoint-
iv) Nil Nil
ed day during the year.
Amount of interest due and payable for the period of delay in
making payment (which have been paid but beyond the appointed
v) Nil Nil
day during the year) but without adding the interest specified under
Micro Small and Medium Enterprise Development Act, 2006
Amount of interest accrued and remaining unpaid at the end of the
vi) Nil Nil
year
The amount of further interest remaining due and payable even in
vii) the succeeding years, until such date when the interest dues as Nil Nil
above are actually paid to the small enterprise

23. Fines and Penalties
Details of Penal actions taken by various Government Authorities as below:

(` in ‘000)
Penalty Waived
Non-Compliance / Penalty Penalty / Reduced /
Sr. No. Authority Violation awarded paid Stay Received
Penalty for non-

compliance of certain
provisions of Insurance
Insurance Regulatory & Development FY2020 900 900 -
1 Act 1938 and Regulations
Authority of India / Guidelines issued by
IRDA
FY2019 - - - -
FY2020 - - - -
2 Service Tax Authorities
FY2019 - - - -
FY2020 - - - -
3 Income Tax Authorities
FY2019 - - - -
FY2020 - - - -
4 Any Other Tax Authorities
FY2019 - - - -
Enforcement Directorate / Adjudicating FY2020 - - - -
5 Authority/ Tribunal or any authority under
FEMA FY2019 - - - -
Registrar of Companies/ NCLT/ CLB/ FY2020 - - - -
6 Department of Corporate Affairs or any
Authority under Companies Act-1956 FY2019 - - - -
Penalty awarded by any Court/ Tribunal for FY2020 - - - -
7 any matter including claim settlement but
excluding compensation FY2019 - - - -
FY2020 - - - -
8 Securities and Exchange Board of India
FY2019 - - - -
FY2020 - - - -
9 Competition Commission of India
FY2019 - - - -
Any other Central / State /Local Govt./ FY2020 - - - -
10 Statutory Authority (Tariff Advisory
Committee) FY2019 - - - -

24. Unclaimed funds
IRDAI has vide circular no. IRDA/F&I/CIR/CMP/174/11/2010 & IRDA/F&A/CIR/Mis/173/07/2017 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), excess collection of the premium / tax
which is refundable and cheques issued but not encashed by policy holders / Insured.
Statement showing the Age-wise Analysis of the Unclaimed Amount of the Policyholders as at the
end of 31st March 2020
(` in ‘000)
Total 0-6 7-12 13-18 19-24 25-30 31-36 Beyond 36

Particulars Amount * months months months months months months months
Claims settled but FY2020 - - - - - - - -

not paid to the policy
holders/ insured due
to any reasons except
FY2019 - - - - - - - -
under litigation from the
insured/ policyholders
Sum due to the insured/ FY2020 - - - - - - - -

policy holders on maturity
or otherwise FY2019 - - - - - - - -
Any excess collection FY2020 37,737 5,070 5,357 4,142 4,177 4,502 3,206 11,283
of the premium/tax or
any other charges which
is refundable to the
policyholders either as
terms of conditions of
FY2019 32,561 5,645 4,866 5,084 3,802 3,387 3,094 6,683
the policy or as per law
or as may be directed
by the Authority but not
refunded so far
Cheques issued but not FY2020 34,209 - - - - - - 34,209

encashed by the policy
holder/ insured FY2019 34,353 - - - - - - 34,353
FY2020 71,946 5,070 5,357 4,142 4,177 4,502 3,206 45,492

Total
FY2019 66,914 5,645 4,866 5,084 3,802 3,387 3,094 41,036
As per IRDAI circular no. IRDA/F&A/CIR/Mis/173/07/2017 dated 25 Jul 2017 which required disclosure of the following information on unclaimed
amount of policy holders.
Details of Unclaimed Amount & Investment Income

(` in ‘000)
Opening Balance 66,914 71,105

Add: Amount transferred to unclaimed fund 13,623 15,874
Add: Cheques issued but not encashed by the policyholder (To be
- -
included only when cheques are stale)
Add: Investment income on unclaimed fund 3,502 4,852
Less : Amount of claims paid during the year 10,368 20,271
Less : Amount transferred to SCWF (net of claims paid in respect of
1,725 4,605
amounts transferred earlier)
Closing balance of unclaimed Amount fund 71,946 66,914
25. Details of Non-renewed Policies during lockdown Period
IRDAI vide circular no. IRDAI/HLT/CIR/MISC/078/04/2020 and IRDAI/NL/CIR/MOT/079/04/2020 dated 2

April 2020 and IRDAI/NL/CIR/MOT/090/04/2020 and IRDAI/HLT/ CIR/MISC/091/04/2020 dated 16 April

2020 has stipulated that, the Policyholders whose motor vehicle third party insurance policies and health
insurance policies fell due for renewal during the period on and from 25 March 2020 up to 3 May 2020
and who are unable to make payment of their renewal premium on time in view of the prevailing
situation in the country as a result of COVID-19 are allowed to make premium payment for renewal of
policies to their insurers on or before 15 May 2020 to ensure continuity of the statutory motor vehicle
third party insurance and health insurance cover from the date on which the policy fell due for renewal,
so that any valid claim triggered during the grace period can be paid.
Further, in accordance with Circulars IRDAI/NL/CIR/MOT/081/04/2020 and IRDAI/HLT/CIR/

MISC/082/04/2020 dated 3 April 2020 and subsequent intimation, following details are disclosed below.
The said premium due but not received has not been recognized in the books in line with the Company’s
accounting policy. We confirm that the impact of such non recognition of premium due but not received,
on profits of the Company, is not material for the year ended 31 March 2020.
Motor Third Party Insurance Renewal Health Insurance Renewal
Amount of Amount of
Sr. No. Particulars No. of Policies Premium No. of Policies Premium
Policies due for renewal from

(A) 186,722 1,168,666 39,532 721,575
25 March 2020 to 31 March 2020
Of the (A) above, Policies renewed
(B) 48,725 324,853 19,395 290,534
up to 31 March 2020
Of the (A) above, Policies renewed
(C) 5,529 47,760 2,013 39,402
between 1 April 2020 to 3 May 2020
26. Pending litigations
The Company’s pending litigations comprise of claims against the Company and proceedings pending
with various Tax Authorities including Income Tax and Service Tax. The Company has reviewed all
its pending litigations and proceedings and has made adequate provisions, wherever required and
disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does
not expect the outcome of these proceedings to have a significant impact on its financial position.
(Refer note no.3 of schedule 16 for details on contingent liabilities).
During the year, the Company has received a show cause cum demand notice towards service tax under
reverse charge mechanism on reinsurance contracts on weather based crop insurance policies (WBCIS)
and Modified National Agricultural Insurance schemes (MNAIS). Based on Company’s assessment and
on the basis of independent opinion sought from external tax consultants, the Company is of the belief
that the liability is not expected to materialize. Further, the matter being an industry wide issue with
significant impact on the viability of the WBCIS and MNAIS, the same has been represented by the
General Insurance Council to the Central Board of Indirect Taxes and Customs for clarification.
27. Long term contracts
The Company periodically reviews all its long term contracts to assess for any material foreseeable
losses. Based on such review, the Company has made adequate provisions for these long term contracts
in the books of account as required under any applicable law/accounting standard.
As at 31 March 2020 the Company did not have any outstanding derivative contracts.
28. Contribution to Investor Education and Protection Fund
For the year ended 31 March 2020, there is no amount that needs to be transferred to the Investor
Education and Protection Fund.
29. Corporate Social Responsibility
During the year, as per provisions of section 135 of Companies Act, 2013, the Company was required to
spend Rupees 238,837 thousand (previous year: Rupees 213,500 Thousand) being 2% of average net

profits made during the three immediately preceding financial years, in pursuance of its Corporate Social
Responsibility Policy. The Company has spent Rupees 239,340 (previous year: Rupees 214,077) towards
Corporate Social Responsibility activities during the year.
The details of amount spent during the year are as follows:
(` in ‘000)
1) Construction / acquisition of any asset Nil Nil

2) On purposes other than (i) above 239,340 214,077
Total 239,340 214,077
30. Repo and Reverse Repo Transaction

(` in ‘000)
Minimum Maximum Daily average

outstanding outstanding outstanding Outstanding
during the during the during the as on 31
Particulars year year year March 2020
Securities Sold under repo (At cost)

FY2020 - - - -
1. Government Securities
FY2019 - - - -
FY2020 - - - -
2. Corporate Debt Securities
FY2019 - - - -
Securities purchased under reverse repo (At cost)
FY2020 50,107 3,836,382 5,324 -
1. Government Securities
FY2019 2,169,157 2,169,157 11,886 -
FY2020 - - - -
2. Corporate Debt Securities
FY2019 - - - -
31. Solvency Margin

(` in ‘000)
Solvency Margin As at 31 March 2020 As at 31 March 2019
Required solvency margin under IRDAI

20,782,410 18,617,184
Regulations (A)
Available solvency margin (B) 52,825,010 47,485,545
Solvency ratio actual (times) (B/A) 2.54 2.55
Solvency ratio prescribed by Regulation 1.5 1.5
32. Dividend
IRDAI through its circular on Prudent management of financial resources of insurers in the context of
Covid-19 pandemic
Ref. No: IRDA/F&A/CIR/MISC/099/04/2020 dated 24 April 2020, in view of the emerging market
conditions, and to conserve capital with the insurance companies in the interests of the policyholders
and of the economy at large, has directed insurers to take a conscious call to refrain from dividend
pay-outs from profits pertaining to the financial year ending 31 March 2020, till further instructions. The
circular also states that this position shall be reassessed by the Authority based on financial results of
insurers for the quarter ending 30 September 2020.
The Board of Directors has accordingly not recommended any dividend for FY2020 (Previous year: Rs.10
per equity share of face value of Rs. 10, 100% of face value. Previous year dividend value Rs. 1,102,273
thousand and dividend distribution tax on the same amounting to Rs. 226,575 thousand).

33. Encumbrance of Assets
The assets of the Company are free from all encumbrances except to the extent assets or monies are
required to be deposited as margin contributions for investment trade obligations of the Company as
detailed below:
Assets encumbered with Clearing Corporation of India Limited (CCIL)
The following cash deposit have been placed with CCIL towards margin requirement / default fund for
settlement of trades in the securities and Tri-Party Repo segment:
(` in ‘000)
Margin Money Deposits 50,100 50,100

Default Fund 15,400 15,400
Nature of pledge: These deposits can be invoked by CCIL in case of any default by the Company in
settlement of trades in securities and Tri-Party Repo segment.
34. Non-performing investments
The Company has debt exposures in two NBFCs where the financial position and credit ratings indicated
the carrying amount of such exposures to be higher than the recoverable amount and has accordingly
classified the said exposure as Non-performing Assets (NPA) as per the IRDAI investment classification
requirement. Accordingly, against the carrying cost of Rupees 2,374,566 thousand the recoverable
amount has been assessed as of Rupees 1,112,711 thousand during the year (Previous year impairment:
carrying cost Rs 988,949 thousand and recoverable amount assessed as Rupees 425,000 thousand).
There are no assets subject to restructuring (31 March 2019: Nil) initiated by the company as a result
of stress faced by the investee Companies. Assets where restructuring is being considered by the Joint
lender forums, resolution professionals or regulators is mentioned in Note 36 below.
35. Value of investment contracts where settlement or delivery is pending as at year end is as
follows:
(` in ‘000)
Purchases where deliveries are pending 769,327 1,202,199

Sales where receipts are due 744,770 -
There are no investment contracts where securities have been sold but payments are overdue at the
Balance Sheet date.
36. Participation in Joint Lenders Forum (JLF) / Inter Creditor Agreement (ICA) formed under RBI
Guidelines
The RBI vide its notification RBI/2018-19/203 DBR.No.BP.BC.45/21.04.048/2018-19 dated 7 June 2019
has prescribed the Prudential Framework for Resolution of Stressed Assets and accordingly, the Joint
Lenders’ Forum (JLF) as a mandatory institutional mechanism for resolution of stressed accounts stands
discontinued.
The notification provides for lenders of a stressed asset to initiate a resolution plan even before default
or on default. In cases where resolution plan is to be implemented, all lenders are now required to enter
into an inter-creditor agreement (ICA).

The following table provides details of ICA’s entered into by the Company:
(` in ‘000)
% of exposure Date of
Exposure as on Additional in excess of approval by Comments of Board
Name of the Date of Insurer date of insurer exposure as IRDAI(INV) the Insurers on additional
Nos. entity entry into ICA entry into ICA decided in ICA Regulations Board exposure permitted
1 DHFL 26 August 2019 123,084 Nil Nil Nil Nil
37. Provision for Standard assets for debt portfolio
In accordance with the ‘Guidelines on Prudential norms for income recognition, Asset classification,
Provisioning and other related matters in respect of Debt portfolio’ as specified by IRDAI vide the Master
Circular dated 11 December 2013, provision for standard assets at 0.40% of the value of the asset has
been recognized as follows :
(` in ‘000)
Provision towards Standard Assets Nil 667
38. Foreign exchgtange gain/loss
The foreign exchange gain (net) credited to Revenue Account for the year ended 31 March 2020 is
Rs.19,834 thousand (31 March 2019 exchange loss (net) Rs.12,021 thousand).
39. Disclosures on other work given to auditors
Pursuant to Corporate Governance guidelines issued by IRDAI dated May 18, 2016, the additional works
(other than statutory/ internal audit) given to the auditors are detailed below:
(` in ‘000)
Name of Audit firm Services rendered 31 March 2020 31 March 2019
B S R & Co. LLP Other audit fees 1,500 1,500

S. R. Batliboi & Co. LLP Other audit fees 1,100 1,100
40. Statement containing names, descriptions, occupations of and directorships held by the
persons in charge of management of the business under section 11 (3) of Insurance Act, 1938
(amended by the Insurance Laws (Amendment) Act, 2015)
(` in ‘000)
Particulars From 1 April 2019 to 31 March 2020
Name of person in-charge Tapan Singhel

Managing Director and Chief Executive
Designation of person in-charge
Officer
Occupation of person in-charge Service
Member of the Board of
Directorships held by person in-charge
The Indo German Chamber of Commerce

41. Change in expense allocation/apportionment process
Change in business mix and functions/geographical structures within the Company has warranted
the Company to refine its expense allocation and apportionment process. Accordingly, the Company
has during the current financial year, reviewed and revised its Board approved methodology on the
allocation and apportionment of expenses.
The key changes are as follows:
• Expenses of uni-segment functions/channels that have become significant for the Company are now
hence identified separately and allocated to the respective lines of businesses as against the earlier
practice of apportioning them basis Company level Net Written Premium (NWP).
•
Several heads of expenses of functions that were apportioned basis Company level Net Written
Premium (NWP) are now captured at a more granular level and hence accordingly apportioned at
functions level Gross Written Premium (GWP).
As required by IRDAI (Expenses of Management of Insurers transacting General or Health Insurance

business) Regulations,2016, the impact of such change at segment level is as under:
(` in ‘000)
Segment Fire Marine Miscellaneous
Old Method 908,045 282,691 22,012,218

New Method 2,417,584 316,688 20,468,682
Accordingly, to the extent of such change the expenses allocated to various segments of business in the
financials for previous periods are not strictly comparable.
42. Potential impact of uncertainties relating to COVID-19
In preparing the accompanying financial statements, the Company management has been required
to make judgments, estimates and assumptions that affect the application of policies and reported
amounts of assets, liabilities, equity, income and expenses. These estimates and associated
assumptions, at the date of adopting the financial statements, are based on historical experience and
various other factors including the possible effects that may result from the pandemic, that are believed
to be reasonable under the current circumstances.
Business impact
COVID-19 outbreak has been declared as a Pandemic by World Health Organization in March 2020. Since
the outbreak, COVID-19 continues to spread across the globe bringing economic activities to a grinding
halt leading to significant volatility in global and Indian financial markets.
The Government is undertaking several measures to restrict the spread of virus and provide financial
support to some stressed sectors.
The extent to which COVID-19 pandemic will impact the Company depends on future spread of the
virus and related developments, which are highly uncertain, including, among other things, period of
lockdown and its repercussions on the economy, development of a vaccine, government intervention
to provide financial support to the stressed sections, etc. The Company will continue to closely monitor
developments as they unfold.
The nation-wide lockdown required the Company to activate its Business Continuity Plan to enable
operations to run with minimal disruption. The disruption was largely mitigated through the facility to
Work from Home (WFH). WFH was enabled through use of portable devices through the Company’s
Virtual private Network (VPN) ensuring requisite data security controls. Accordingly, the operations of the
Company were performed at remote locations (WFH) through secured servers.
As the processes of the Company are mostly automated/system driven, WFH has not led to any material
change in the controls or processes. The Company has an Internal Financial Control framework that has
been independently tested covering all the material controls over financial reporting and found them to
be operating effectively at 31 March 2020.

Valuation of investments and Impairment testing
The Company has invested in a well diversified investment portfolio. Substantial portion of the
investments are readily marketable thereby extending good liquidity support. The investment portfolio,
composition of which is largely governed by regulations, comprises of 91% Debt and 9% Equity. 98%
of the debt portfolio comprises of highest credit rated securities (i.e. sovereign and AAA or equivalent
rated). 83% of the Equity portfolio comprises of Nifty 50 stocks.
The Company has used internal and external sources of information including credit reports, economic
forecasts and consensus estimates from market sources on the expected future performance of the
underlying companies in developing the estimates and assumptions to assess the fair value of the
investments as at March 31, 2020. Further, the Company has carried out detailed evaluation of the
investment portfolio considering the current market prices vis-à-vis acquisition cost and the potential
impact of COVID-19 on business models of investee companies. In accordance with the impairment
policy of the Company, diminution in the value of investments which is not temporary in nature has
been evaluated on the Balance Sheet date and provisions for the same, as considered necessary have
been made in these financial statements. Refer note 34.
The Company has performed sensitivity analysis on the investment portfolio and in specific on a few
potentially stressed exposures and believes that such sensitivities/stresses have no material impact on
the Solvency position of the Company which stood strong at 254% as against the regulatory requirement
of 150%.
The Company has evaluated the recoverability of all its investments and expects to recover the carrying
amount of these assets.
Actuarial reserving
The nation-wide lockdown has resulted in significantly low commercial activity thus positively impacting
the loss ratios during the period of lockdown. However, we believe that some of these claims will be
reported in future, therefore, a margin on actual loss ratios have been maintained to account for delayed
reporting in future.
Covid-19 could impact our Health portfolio adversely. However, as at 31 March 2020 the number of
Covid-19 claims reported to the Company are negligible. On the basis of the available information of
likely Covid-19 positive cases in the country, the likely hospitalization rate based on the demographics
of Indian population, the health insurance penetration, and the Company’s share therein and the high
severity of such claims, the Company has also projected the likely claims and does not believe the same
to be significant.
As at 31 March 2020 the carrying amount of liabilities were not lower than projected liability using
current estimates of future cash flow under its insurance contracts for any line of business.
Recoverability of other current assets
The Company has evaluated the recoverability of its current assets and expects to recover the carrying
amount of all these assets.
(For more details pertaining to risk please refer Management Report Section 7 for “Overall risk exposure
and strategy adopted to mitigate the same”)
For B S R & Co. LLP For S.R. Batliboi & Co. LLP Bajaj Allianz General Insurance Company Limited
Chairman Chairperson of Managing Director
Sagar Lakhani Vaibhav Gupta DIN : 00014615 Audit Committee & Chief Executive Officer
Membership No.111855 Membership No.213935
Date: 15 May 2020 Date: 15 May 2020 Chief Financial Company Secretary &
Officer Compliance Officer
Pune, Date: 15 May 2020

Ratios for the year ended 31 March 2020

Sr. No. Particulars For the year ended 31 March 2020 For the year ended 31 March 2019
1 Gross Direct Premium Growth Rate 15.56% 17.09%

Motor 7.69% 16.96%
Motor OD -0.16% -0.79%
Motor TP 13.69% 35.48%
Fire 29.54% 15.24%
Marine Others 3.05% 74.67%
Workmen's Compensation / Employers' Liability 10.17% 6.91%
Public/Product Liability 13.96% 2.70%
Aviation 10.58% 474.76%
Health -5.80% 56.14%
Credit Insurance 11.87% -22.93%
Crop Insurance 69.77% -20.36%
Others 16.59% 31.56%
2 Gross Direct Premium to Net Worth Ratio 2.15 2.17
3 Growth Rate of Net Worth 17.03% 14.58%
4 Net Retention Ratio 62.46% 70.06%
Motor 94.75% 94.80%
Motor OD 94.58% 94.61%
Motor TP 94.85% 94.94%
Fire 11.29% 29.70%
Marine Others 2.49% 3.15%
Aviation 41.20% 40.54%
Health 75.78% 79.62%
Credit Insurance 1.00% 1.01%
Crop Insurance 21.06% 18.74%
Others 28.34% 39.02%
5 Net Commission Ratio 1.14% 4.82%
Motor 7.37% 8.40%
Motor OD 17.31% 18.13%
Motor TP 0.72% 1.00%
Fire -100.32% -6.33%
Marine Others -228.96% -49.55%
Engineering -35.30% -48.23%
Aviation -0.62% 4.49%
Health 2.84% 4.04%
Credit Insurance -548.62% -431.60%
Crop Insurance -18.69% -30.69%
Others -46.35% -6.96%
6 Expenses of Management to Gross Direct Premium Ratio 24.63% 23.84%
7 Expenses of Management to Net Written Premium Ratio 39.27% 33.92%
8 Net Incurred Claims to Net Earned Premium 70.74% 68.62%
9 Combined Ratio 100.83% 96.69%
10 Technical Reserves to Net Premium Ratio 1.53 1.60
11 Underwriting Balance Ratio 0.00 0.00
Fire -0.04 -0.02
Marine -0.07 -0.30
Miscellaneous 0.00 0.01
12 Operating Profit Ratio 14.45% 13.54%
13 Liquid Assets to liabilities ratio 0.27 0.20
14 Net Earning Ratio 12.46% 10.03%
15 Return on Net worth 16.78% 15.33%
Available Solvency Margin (ASM) to Required Solvency Margin
16 2.54 2.55
(RSM) Ratio
17 NPA Ratio - -
Ratios are computed in accordance with and as per definition given in the Master Circular on Preparation of Financial Statements dated 5 October 2012 and
subsequent corrigendum thereon dated 3 July 2013.

Segmental Break up of the Balance Sheet item as at 31 March 2020

Segment results have been incorporated in the Financial Statements. However segment asset and liabilities, given the nature of the
business, have been allocated amongst various segments to the extent possible.
(` in ‘000)
Health Crop
Particulars Fire Marine Motor Insurance Insurance Miscellaneous Total
Cargo Others
FY 2020 26,79,557 11,70,750 3,240 4,88,85,203 1,73,35,876 53,75,351 66,11,845 8,20,61,822

Premium Earned (Net)
FY 2019 18,76,444 10,36,057 2,536 4,21,62,532 1,66,58,812 28,76,259 54,85,129 7,00,97,769
FY 2020 30,372 3,793 (13) 93,69,063 1,83,365 - 18,03,477 1,13,90,057
Premium Received in
Advance FY 2019 34,715 5,235 (13) 12,16,877 1,70,895 - 15,47,156 30,11,057
FY 2020 17,77,548 6,99,250 15,153 7,09,60,655 25,67,306 40,68,249 34,92,820 8,35,80,981
Claims Outstanding
(Net) FY 2019 15,08,662 6,83,089 14,478 5,70,86,160 31,05,747 34,30,695 26,41,602 6,84,70,433
FY 2020 27,97,967 2,89,155 2,637 2,56,06,852 79,83,052 2,46,496 49,22,420 4,18,48,578
Reserve for Unexpired
Risk FY 2019 40,39,750 3,38,610 3,239 2,49,35,088 86,36,267 3,96,912 54,00,910 4,37,50,776
FY 2020 1,826 14,140 - 60,863 67,948 1,24,61,247 1,03,406 1,27,09,430
Outstanding premiums
FY 2019 39,042 1,676 - 41,303 5,75,587 96,93,183 1,15,215 1,04,66,006
FY 2020 - - - 1,39,782 - - - 1,39,782
Solatium Fund
FY 2019 - - - 1,08,470 - - - 1,08,470
Summary of Financial Statements for the year ended 31 March 2020

(Refer Note 20 of Schedule 16) (` in ‘000)
Particulars 2020 2019 2018 2017 2016
OPERATING RESULTS
Gross Written Premium 128,330,656 110,970,146 94,865,414 76,870,636 59,006,488
Net Premium Income (net of Reinsurance) 80,159,624 77,744,606 67,325,358 53,008,839 45,723,819
Income from Investments (net of losses) 11,964,950 9,298,583 8,837,656 7,374,934 6,201,791
Miscellaneous Income 155,924 186,309 171,870 148,081 154,889
Total Income 92,280,498 87,229,498 76,334,884 60,531,854 52,080,499
Commissions (net including brokerage) 916,337 3,747,151 3,180,711 356,263 939,289
Operating Expenses 23,202,954 18,071,090 14,051,321 13,614,489 11,407,097
Net Incurred Claims 58,079,200 48,087,575 40,490,133 34,777,947 30,550,073
Change in Unexpired Risk Reserve -1,902,198 7,646,837 6,739,669 3,638,384 3,487,345
Operating Profit/Loss 12,430,905 9,676,845 11,873,050 8,144,771 5,696,695
NON OPERATING RESULTS
Total income under Shareholder's Account (1,328,603) (1,838,319) (1,656,083) (2,636,408) 2,017,986
Profit before Tax 13,759,508 11,515,164 13,529,133 10,781,178 7,714,681
Provision for Tax (3,771,738) (3,716,581) (4,316,721) (3,502,795) (2,072,433)
Profit after Tax 9,987,770 7,798,583 9,212,412 7,278,383 5,642,248
MISCELLANEOUS
Policyholder's Account
Total Funds
Total Investments
Yield on Investments
Not Applicable being General Insurance Company
Shareholder's Account
Total Funds
Total Investments
Yield on Investments
Paid up Equity Capital 1,102,273 1,102,273 1,102,273 1,102,273 1,102,273
Net Worth 56,421,066 51,640,081 44,663,631 35,346,258 27,897,088
Total Assets (Gross of current liabilities and provisions) 218,657,101 197,247,571 169,376,216 127,288,406 105,087,813
Yield on Total Investments 8.40% 7.16% 7.69% 9.86% 9.36%
Earning Per Share 90.61 70.75 83.58 66.03 51.19
Book value per Share 511.86 468.49 405.20 320.67 253.09
Total Dividend 1,102,273 1,102,273 - - -
Dividend per share 10.00 10.00 - - -

Receipts and Payments Statement for the year ended 31 March 2020
(` in ‘000)
For the year ended 31 For the year ended 31

Particulars March 2020 March 2019
A. Cash Flows from the operating activities:

1. Premium received from policyholders, including advance receipts 147,885,351 126,351,256
2. Other receipts 82,047 21,533
3. Payments to the re-insurers, net of commissions and claims (17,514,119) (9,579,103)
4. Payments to co-insurers, net of claims recovery 1,328,357 1,834,135
5. Payments of claims (68,711,958) (59,287,796)
6. Payments of commission and brokerage (9,109,761) (8,076,459)
7. Payments of other operating expenses (24,192,294) (17,025,131)
8. Preliminary and pre-operative expenses - -
9. Deposits, advances and staff loans (10,220) (23,537)
10. Income taxes paid (Net) (3,049,622) (4,072,075)
11. Service tax paid / GST Paid (17,141,044) (16,575,911)
12. Other payments - -
13. Cash flows before extraordinary items 9,566,737 13,566,912
14. Cash flow from extraordinary operations - -
15. Net cash flow from operating activities (A) 9,566,737 13,566,912
B. Cash flows from investing activities:
1. Purchase of fixed assets (1,363,555) (763,073)
2. Proceeds from sale of fixed assets 9,134 6,497
3. Purchases of investments (184,643,105) (119,523,349)
4. Loans disbursed - -
5. Sales of investments 165,816,707 89,817,491
6. Repayments received - -
7. Rent / interest / dividend received 12,082,209 10,133,980
8. Investment in money market instruments and liquid mutual funds (net) (620,124) 4,289,226
9. Expenses related to investments (76,442) (14,304)
10. Net cash flow from investing activities (B) (8,795,176) (16,053,532)
C. Cash flows from financing activities:
1. Proceeds from issuance of Share Capital / Application Money (including Share Premium
and net of Share Issue Expenses) - -
2. Proceeds from Borrowings - -
3. Repayment of Borrowings - -
4. Interest and Dividends Paid (1,102,273) (1,102,273)
5. Dividend distribution tax (226,575) (226,575)
6. Net Cash Flows from financing activities (C)' (1,328,848) (1,328,848)
D. Effect of foreign exchange rates on cash and cash equivalents, net (D) 24,576 1,387
E. Net increase in cash and cash equivalents (E) = (A)+(B)+(C)+(D) (532,711) (3,814,081)
Add: Cash and cash equivalents at the beginning of the year 4,462,676 8,276,757
Cash and cash equivalents at the end of the year 3,929,965 4,462,676
F. Components of cash and cash equivalents at the end of the year
(a) Cash (including Stamps on hand) 9,646 42,539
(b) Cheques on hand 811,784 803,907
(c) Bank balances and money at call and short notice 4,455,758 3,671,191
(d) Temporary overdraft as per books of accounts (1,347,223) (54,961)
Cash and cash equivalents at the end of the year (a)+(b)+(c)+(d) 3,929,965 4,462,676
For Cash and cash equivalents – Refer note 2.25 of schedule 16
The above Receipts and Payments Account has been prepared as prescribed by Insurance Regulatory and Development Authority (Preparation of Financial
Statements and Auditor’s Report of Insurance Companies) Regulations, 2002 under the ‘Direct method’ in accordance with Accounting Standard 3 on Cash Flow
Statements notified under the Section 133 of the Companies Act, 2013 read with paragraph 7 of the Companies (Accounts) Rules, 2016.
Compliance Officer

150 Bajaj allianz general insurance company Limited Pune, Date: 15 May 2020
Related parties and nature of relationship where transactions made

during the year
Annexure to Schedule 15 Notes to Accounts and forming Part of Financial Statements
for the year ended 31 March 2020
Nature of relationship Name of the related party
Holding Company Bajaj Finserv Limited

Co-promoter Allianz SE
Bajaj Auto Limited
Bajaj Holdings and Investments Limited
Bajaj Allianz Financial Distributors Limited
Bajaj Allianz Staffing Solutions Limited
Bajaj Electricals Limited
Bajaj Finance Limited
Bajaj Allianz Life Insurance Company Limited
Bajaj Financial Securities Limited
Bajaj Auto Holdings Limited
Bajaj Finserv Direct Limited
Bajaj Housing Finance Limited
Bajaj Finserv Health Limited
Mukand Engineers Limited
Mukand Limited
Hind Musafir Agency Limited
Allianz Cornhill Information Services Private Limited
AGCS Marine Insurance Company
Allianz Insurance Management Asia Pacific (Allianz Singapore)
Significant influence and fellow subsidiaries
Allianz Global Risks US Insurance Company
Allianz Global Corporate & Speciality SE, UK
Allianz Global Corporate & Speciality SE, Italy
Allianz Global Corporate & Speciality SE, Munich
Allianz Global Corporate & Speciality SE, India Branch
Allianz SE Reinsurance, branch Asia Pacific
Allianz Global Corporate & Speciality SE, Singapore (Previously Known Allianz Insurance Company of
Singapore - PTE )
Allianz Global Corporate & Speciality SE, France
Allianz Risk Transfer AG
Euler Hermes Singapore Branch
Allianz Fire and Marine Insurance Japan Ltd
Allianz Technology SE (Previously Allianz Managed Operations & Services SE)
Allianz Technology SE, India (Previously Allianz Managed Operations & Services SE India)
AWP Assistance (India) Private Limited (Previously AGA Assistance (India) Private Limited)
AWP Services (India) Private Limited (AGA Services (India) Private Limited)
Euler Hermes Services India Private Limited
AWP P&C SA Saint Ouen Paris
Key managerial personnel (KMP) Tapan Singhel, Managing Director and Chief Executive Officer
Relatives of Key management personnel as per AS-18 disclosure –

Tapan Singhel, Managing Director and Chief Executive Officer:
Nature of Relationship Relative's Name
Wife Sangeeta Singhel

Daughter Neelashma Singhel
Daughter Tushita Singhel
Father Ran Bahadur Singhel
Mother Shobha Singhel

Related Party Disclosures under AS 18 FY2020

Annexure to Schedule 15 Notes to Accounts and forming Part of Financial Statements
for the year ended 31 March 2020 (` in ‘000)
Sr. Name of the related For the year ended 31 For the year ended 31
No. party Description March 2020 March 2019
1 Bajaj Finserv Limited Expenditure
Rent, Rates and Taxes 21,394 20,280

Legal and Professional charges 33,304 28,860
Billable expenses reimbursed
-Advertisement and publicity 3,436 5,880

-Travel, Conveyance and vehicle running - 20
-Legal and Professional charges 27,700 10,865
Income
Insurance Premium (11,970) (3,759)

Other
Security deposit paid/(returned) - 2,674

Dividend paid 815,682 815,682
Outstanding Balance- Assets/(Liabilities)
Share Capital (815,682) (815,682)

Other Assets (Deposit paid against Leased Premises) 21,394 21,394
Unallocated Premium (580) (3,738)
2 Bajaj Auto Limited Expenditure
Claims Incurred 16,464 23,018

Income

Unallocated Premium (80,053) (46,338)

Bajaj Holdings and
3 Expenditure
Investments Limited
Billable Expenses Reimbursed
- Miscellaneous Expenses (Insurance) 365 265

Income
Billable Expenses Recovery
-Legal and Professional charges (35) -

Insurance Premium (4,587) (78)

Bajaj Allianz Financial
4 Expenditure
Distributors Limited
Commission Paid 152,169 156,753
Income

Unallocated Premium (82) (38)

Agents Balances (12,921) (17,379)

(` in ‘000)
Bajaj Allianz Staffing

5 Expenditure
Solutions Limited
Employees' remuneration, benefits & other manpower costs 1,074,624 1,029,555
Claims Incurred 540 -
Income

Advances recoverable in cash or in kind 70 -

6 Bajaj Electricals Limited Expenditure

Income


7 Bajaj Finance Limited Expenditure

Interest and Bank Charges 74,335 31,393
Employees' remuneration, benefits & other manpower costs 19,115 -
Income
Insurance Premium (2,230,228) (1,866,513)

Interest, Dividends and Rent -Gross (225,641) (74,392)
Other
Redemption of Debentures (500,000) -


Agents Balances (14,764) (70,983)
Outstanding Premium (Receivable against Bank Guarantee) 48,477 65,758
Investment Held (Book Value) 7,004,059 4,405,378
Advances recoverable in cash or in kind 2,604 3,364
Bajaj Allianz Life Insurance
8 Expenditure
Company Limited
Employees' remuneration, benefits & other manpower costs 61,666 96,597
Rent, Rates and Taxes 30,635 31,181
- Communication expenses 1,052 -

- Employees' remuneration, benefits & other manpower costs 27 -
- Information Technology expenses 34,911 98,585
- Maintenance and Repairs 150 662
- Rent, Rates and Taxes 1,407 1,394
Income

- Communication expenses (1,624) -

(` in ‘000)
-Legal and Professional Charges (150) -

-Maintenance & Repairs (1,596) (489)
-Miscellaneous Expenses (Electricity Expenses) (5,135) (5,687)
-Rent, Rate and Taxes (1,042) (684)
-CWIP Computers - (3,008)
Other
Security Deposit Paid/(Returned) 1,815 2,062

Combi Product Premium Paid 29 -

Other Assets (Deposit paid against Leased Premises) 15,751 13,935
Sundry creditors (17) (54,297)
Bajaj Financial Securities
9 Income
Limited
Insurance Premium (57) -
Unallocated Premium (1) -

Bajaj Auto Holdings
10 Income
Limited
Insurance Premium (6) (1)

11 Bajaj Finserv Direct Limited Expenditure

Income


Agents Balances (3,033) (625)
Bajaj Housing Finance
12 Expenditure
Limited
Income

Interest, Dividends and Rent -Gross (2,561) -
Unallocated Premium (222) (1,984)

Investment Held (Book Value) 1,499,959 -
Outstanding Premium (Receivable against Bank Guarantee) 1,655 3,562
Bajaj Finserv Health
13 Income
Limited
Insurance Premium (2,990) -
Unallocated Premium (703) -

(` in ‘000)
14 Mukand Engineers Limited Expenditure

Income

Unallocated Premium (2,962) (72)

15 Mukand Limited Expenditure

Income


Hind Musafir Agency
16 Expenditure
Limited
Travel, Conveyance and vehicle running 104,712 224,835
Income


Sundry creditors (22) (12,286)
Allianz Cornhill Information
17 Income
Services Private Limited
18 Allianz SE, Germany Expenditure
-Software Expenses 360 -

Other
Dividend Paid 286,591 286,591

Share Capital (286,591) (286,591)

Allianz Insurance
19 Management Asia Pacific Outstanding Balance- Assets/(Liabilities)
(Allianz Singapore)
Sundry creditors (449) (449)
AGCS Marine Insurance
20 Income
Company
Claims on Reinsurance Ceded - (261)
Balances due to Other Insurance Companies (27) 261

Allianz Global Risks US
21 Expenditure
Insurance Company
Premium on Reinsurance Ceded 1,704,455 327
Income
Commission on Reinsurance Ceded (180,184) (234)
Claims on Reinsurance Ceded (449,195) (108)
Balances due to Other Insurance Companies (379,572) (374)

(` in ‘000)
Allianz Global Corporate &

22 Expenditure
Speciality SE, UK
Premium on Reinsurance Ceded 825 (1,339)
Income
Commission on Reinsurance Ceded (117) (82)

Claims on Reinsurance Ceded (9) (114,994)
Balances due to Other Insurance Companies (13,623) 15,132

23 Expenditure
Speciality SE, Italy
Premium on Reinsurance Ceded 254 203
Income
Commission on Reinsurance Ceded (107) -

Balances due to Other Insurance Companies (763) (615)

24 Expenditure
Speciality SE, Munich
Premium on Reinsurance Ceded 165 6,694
Income
Commission on Reinsurance Ceded (41) (2,191)

Claims on Reinsurance Ceded (127,836) (364,992)
Sundry creditors - (315)

25 Expenditure
Speciality SE, India Branch
Premium on Reinsurance Ceded 970,908 86,119
Income
Insurance Premium (1,046) (662)

Commission on Reinsurance Ceded (134,428) (16,396)
Claims on Reinsurance Ceded (16,059) -

Balances due to Other Insurance Companies (56,526) (62,607)
Allianz SE Reinsurance,
26 Expenditure
branch Asia Pacific
Premium on Reinsurance Ceded (CAT XOL Premium Paid) 3,238 2,730
Income

Claims on Reinsurance Ceded 5,994 (47,382)
Claims on Reinsurance Ceded (CAT XOL Claim Recovery) (7,843) (20,401)

(` in ‘000)
Allianz Global Corporate

& Speciality SE, Singapore
27 (Previously known as Expenditure
Allianz Insurance Company
of Singapore - PTE )
Premium on Reinsurance Ceded (2,133) 46,390
Income
-Employees' remuneration, benefits & other manpower costs - (503)

Commission on Reinsurance Ceded 171 (8,979)
Advances recoverable in cash or in kind - 503

Balances due to Other Insurance Companies 7,257 4,940
28 Expenditure
Speciality SE, France
Premium on Reinsurance Ceded (1,354) 8
Income
Commission on Reinsurance Ceded 102 (199)


29 Allianz Risk Transfer AG Income
Claims on Reinsurance Ceded - (5,027)

Euler Hermes Singapore
30 Expenditure
Branch
Income

Billable expenses recovery
- Employees' remuneration, benefits & other manpower costs (25,035) (22,833)

Due from other entities carrying on insurance business,including
reinsurers (net) 4,026 18,541
Balances due to Other Insurance Companies 12,703 12,096
Allianz Fire and Marine
31 Expenditure
Insurance Japan Ltd
Premium on Reinsurance Ceded 164,988 -
Income
Commission on Reinsurance Ceded (17,981) -

Claims on Reinsurance Ceded (89) -
Balances due to Other Insurance Companies (146,918) -

(` in ‘000)
Allianz Technology SE
(Previously Allianz
32 Expenditure
Managed Operations &
Services SE)
Information Technology Expenses
- Opus License Fees 13,344 8,582

- ResQ License Fees 1,089 -
- Information Technology Expenses - SAS License Fees 4,938 -

Sundry creditors (36,634) (19,318)

Allianz Technology SE,
India
33 (Previously Allianz Income
Managed Operations &
Services SE India)
AWP Assistance (India)
Private Limited (Previously
34 Expenditure
AGA Assistance (India)
Private Limited)
Insurance Commission 12,441 16,051
Income
Insurance Premium - (40)

- Maintenance and Repairs (120) (226)

Agents Balances 991 5,757

Advances recoverable in cash or in kind 142 266
AWP Services (India)
Private Limited (AGA
35 Expenditure
Services (India) Private
Limited)
Marketing and Support Services Expenses 44,068 52,248
Sundry creditors (4,405) (26,486)

Euler Hermes Services
36 Expenditure
India Private Limited
Other Acquisition Cost 22,059 20,567
AWP P&C SA Saint Ouen
37 Expenditure
Paris
Premium on Reinsurance Ceded 2,731,874 1,683,057
Income
Commission on Reinsurance Ceded (1,731,862) (1,044,671)


(` in ‘000)
Tapan Singhel, MD & Chief

38 Expenditure
Executive Officer
Employees' remuneration, benefits & other manpower costs 117,835 96,857
Income
Notes:
1. Reinsurance balances are net of Commission and claims wherever applicable
2. Above amounts are excluding GST wherever applicable

Notes


BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LIMITED

Bajaj Allianz House, Airport Road, Yerawada,
Pune - 411 006, Maharashtra, India
www.bajajallianz.com | [email protected]
IRDAI Reg No.: No.113. dated 2 May 2001

Tel: 020 6602 6666 | Fax no.: 020 6602 6667
CIN: U66010PN2000PLC015329

20th ANNUAL REPORT 2019-20: Bajaj Allianz General Insurance Company Limited

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BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LIMITED

20th ANNUAL REPORT 2019-20

The Torchbearers ....................................................................................................05

MD & CEO’s Message .............................................................................................06

Management Discussion and Analysis ................................................................10

Independent Auditors’ Report ..............................................................................88

20th Annual Report 2019-20 1

T S Vijayan Ramandeep Singh Sahni

2 Bajaj allianz general insurance company Limited

Sanjiv Bajaj CIN: U66010PN2000PLC015329

20th Annual Report 2019-20 3

4 Bajaj allianz general insurance company Limited

K S V V S Murthy Naidu Aditya Sharma Sourabh Chatterjee Aashish Sethi

K V Dipu Vikramjeet Singh Alpana Singh Ashish Agrawal

20th Annual Report 2019-20 5

6 Bajaj allianz general insurance company Limited

20th Annual Report 2019-20 7

Wishing all of you sound physical and financial health.

8 Bajaj allianz general insurance company Limited

20th Annual Report 2019-20 9

10 Bajaj allianz general insurance company Limited

Insurance industry overview

20th Annual Report 2019-20 11

i. Premium growth and relative performance of insurers

Gross Domestic Premium Income (GDPI) growth (in %)

FY2016 FY2017 FY2018 FY2019 FY2020

Private PSU Standalone Specialized Total

Source: IRDAI and General Insurance Council statistics

Over the period of FY2016 to FY2020, on GDPI:

• The industry registered a growth of 18.4% (CAGR)

• Private insurers registered a growth of 23.1% (CAGR)

• Public players registered a growth of 11.2% (CAGR).

Market share based on GDPI (in %)

Market Share Trend FY2016 To FY2020

5.0% 6.5% 6.0% 4.8% 5.6%

49.5% 47.0% 45.0% 40.5% 38.6%

41.2% 42.0% 43.4% 48.0% 48.2%

FY2016 FY2017 FY2018 FY2019 FY2020

Private PSU Standalone Specialized

Source: IRDAI and General Insurance Council statistics

12 Bajaj allianz general insurance company Limited

ii. Shift in business mix

Line of business wise mix

Line of business wise mix trend FY2016 to FY2020

FY2016 FY2017 FY2018 FY2019 FY2020

iii. Distribution mix

GDPI distribution channel mix

26% 32% 31% 33%

26% 26% 26%

FY2016 FY2017 FY2018 FY2019 9M FY2020

Individual agents Corporate Agents-Banks Corporate Agents-Others Brokers Direct Business

20th Annual Report 2019-20 13

iv. Regulatory changes and implications thereof

Preparation of Solvency Certificate:

Premium rates for Motor TP Insurance for the FY2020:

Standalone Motor Own Damage Cover:

Issuing long term products - Private Car and Two Wheelers:

IRDAI (Regulatory Sandbox Regulation) 2019:

Guideline on Migration and Portability of Health Insurance Policies: