Jamkhedkar in Calcutta on Monday. A Telegraph picture

Calcutta, Jan. 5: Aegon Religare Life Insurance Company Ltd is planning to pump in Rs 120 crore before July for business expansion.

The life insurer began operations in August 2008 and had targeted a premium income of Rs 100 crore within the first 12 months.

Religare has a 44 per cent stake in the company.

“At present, we have a paid-up capital of Rs 250 crore and we plan to increase it to Rs 320 crore by July this year,” said Rajiv Jamkhedkar, chief executive officer, Aegon Religare.

The insurer today launched a unit-linked pension plan that would deduct only 25 per cent as premium allocation charge from a policyholder’s first year premium.

Life insurers deduct a percentage of premia received from policyholders towards premium allocation charges and the rest is used to purchase units for the policy. The premium allocation charges are quite high — as much as 40-50 per cent — in the initial two to three years.

“Our plan has the least premium allocation charge among all the pension plans available in the market. Besides, there is no premium allocation charge from the second year onwards,” said K.S. Gopalakrishnan, chief actuary and chief financial officer, Aegon Religare.