Bajaj Aliance Insurance

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Submitted to Bangalore University as per the

partial fulfillment of the requirement for the award

of

“Master of Business Administration”

Submitted By

MOHAMMED LIYAKHATH PASHA

( 04ACCM6044 )

BANGALORE – 560 027



I wish to take this opportunity to express my heartful thanks to our

beloved principal Mrs. A ANURADHA, Al Ameen Institute of Management

Studies Bangalore, for her valuable guidance, suggestions and

encouragement for completing the internship training.

It is my privilege to thank Mr. NAGESH NAYAK the Sales Team

Manager of BAJAJ ALLIANZ for his valuable suggestions, guidance,

encouragement, and providing me the necessary study materials & other

information through out my study inspite of his busy schedule.

I also express my sincere thanks to faculty members Mr.FILJI

CHERIAN, Mrs. VEDHA BALAJI and Mr.VINAYAK BHAT for their

valuable suggestions, guidance and moral support through out my study.

Last but not least I would like to thank my parents and all my friends who

have helped directly and indirectly to complete this project.

Date:

Place: Bangalore MOHD LIYAKHATH PASHA



CERTIFICATE

This is to certify that Mr. MOHAMMED LIYAKHATH PASHA of 3rd

Sem MBA has successfully under gone the internship training for 6 to 8

weeks in BAJAJ ALLIANZ Life Insurance Company limited and

submitted a report entitled “An Over All Organizational Study of

BAJAJ ALLIANZ Life Insurance Company Limited” under the

valuable guidance of Mr. Filji Cherian, the faculty member.

We wish him all the best for his future endeavor.

Mr. Filji Cherian Mrs. B A Anuradha

( Internal Guide ) ( Principal )



DECLARATION

I here by state that this Internship Report entitled “An Overall

Organization Study Of Bajaj Allianz Life Insurance Company Ltd,

Bangalore, Karnataka” submitted to Bangalore university in partial

fulfillment of the requirement for the award of the “Degree Of Master Of

Business Administration” is a record of original work done by me under

the supervision and guidance of Mrs. B A Anuradha, Principal Al-Ameen

Institute Of Management Studies, Bangalore and not submitted for the award

of any other Degree/Diploma or similar prizes.

PLACE: Bangalore

DATE: MOHAMMED LIYAKHATH PASHA



CONTENTS

Chapter Nos Chapter Names Page Nos

1 Project Design And Study 01

2 Insurance Sector 05

3 Company Profile 12

4 Insurance Plans of Bajaj Allianz Life

Insurance Company LTD

19

5 Human Resource Management 37

6 Sales And Marketing 40

7 SWOT Analysis of Bajaj Allianz 47

8 Problems and Solutions 49

9 Suggestions And Recommendations 53

10 Bibliography 57



Introduction

Location of study

Need for the study

Objectives of study

Methodology of study

Limitations of the study



INTRODUCTION

Organizations have become increasingly complex in which the students of

management need to keep abreast of current best practice, legal requirements and

likely trends, This study set out to give an overview of some departments at BAJAJ

ALLIANZ that are relevant to the effective management study.

Location of the study:

The organizational study was undergone at BAJAJ ALLIANZ Life Insurance co.

ltd. Bangalore – 560047 and the duration was of 6 weeks, that is first week of July

to second week of August 2005.

Need for the study:

Being a post graduate student of business administration (MBA), it is essential to

undergo the internship training of 6 weeks in any organization. This is to fulfill the

requirements prescribed by the Bangalore University for awarding the MBA degree.

Further it was a personal interest to choose BAJAJ ALLIANZ Life Insurance for the

study and get an exposure from various departments of the organization.



Objectives of the study:

To be familiar with working of the said organization.

To understand various function of the organization namely marketing sales

human resource and operations.

To analyze the market position of the said organization.

To study how the theoretical knowledge is made use of in real life.

To identify the strength and weaknesses.

To study acceptance levels of the people towards insurance.

To study the competition and their performance in the insurance industry.

To study the organizational structure.

Methodology of the study

The study is entirely based on the primary data as well as secondary data

The primary data was collected by ‘unstructured interview’ method, which seem to be much appropriate for the study, which is much sensitive in nature. The questions

to the respondents were not fixed and preplanned but being aware of the required

data; questions were posed to the respondents in the unstructured manner keeping in

view to obtain the required data. The responses were quite exhaustive.

The secondary data was collected from the source available like broachers

literatures etc…, and also by visiting the web sites like www.irdaiandia.com,

www.bajajallianz.co.in and www.google.com

http://www.irdaiandia.com/

http://www.bajajallianz.com/

http://www.google.com/


http://www.irdaiandia.com/

http://www.bajajallianz.com/




Limitations of the study:

The study on any organization is not complete with out studying the

functional responsibilities of various departments as a whole. Our study is restricted

to a few departments, primarily and specifically the study is with respect to

MARKETING AND SALES. Other departments were not focused much because of

the time factor. We shall always strive and make an effort to bring about more

information of other departments in future, whenever and wherever there’s an

opportunity.



A brief introduction

Various policies available

Insurance companies existed in the Indian market

Players likely to enter

General LIC’S



INSURANCE: A BRIEF INTRODUCTION

What Is Life Insurance & what are the benefits of it?

Life Insurance deals with the financial losses incurred incase of Death, Disability,

Disease, and Destitution. It is the only financial product that gives three benefits i.e.

Tax benefit, Protection and Investment. Life Insurance is a contract that guarantees

payment of a stated amount of money to the policyholder on the occurrence of a

stated event. It pays a contracted amount of money on death of the policyholder or

on his survival of a stated period of time. Under some contracts the sum assured is

paid to the policy owner to take care of his old age, children’s education, and

marriage. Insurance can also be used for saving tax or repayment of a loan. Taking

care of all these needs, insurance is one of the easiest and most affordable financial

tools.

Why do I need Life Insurance?

To protect your family and dependants in case of unexpected or premature death or

disability, thus brings about social security.

How much Life Insurance do I need?

Your Life insurance amount depends on your needs, your present financial

circumstances and the objectives you are trying to achieve. Most financial advisors

recommend 5 to 10 times your gross annual income.



Who Can Buy The Life Insurance?

1) A Person Of India or Foreign Resident (Subject to Certain Restrictions)

2) A Person Who Has Got An Income Is Prospect For Life Insurance.

3) A Person Who Is Sound in Mind and Normal in Health.

4) As Per as Age is Concerned There is No Limit. A Child who is Less Than a

Year Can also be insured. But Risk is not Covered Up to 7 Years. This is a

Universal Concept For All Insurance Companies.

5) Minimum Age of Entry is 0 Year and Maximum is 69 Years.

6) For Additional Benefits Minimum Age of Entry (Rider Benefit) is 18 Years

Maximum Age Is 50 Years.

HOW PREMIUM IS CALCULATED?

Male Premium: Is Taken As Per Last Birth Day or Near Birthday.

Female Premium: Is Charged Less Compared to Male Premium. Bajaj Allianz is

the Only Company to Charge Less Premium Compared to Other Companies.



What are the various policies available?

The various policies available are TERM, WHOLE LIFE, ENDOWMENT &PENSION, MONEY BACK.

TERM:

Term Policies are comparatively short term policies where the sum assured is paid

to the beneficiaries only upon the death of the insured person within the term period.

WHOLE LIFE:

Whole of Life Insurance Policies are Life Long Policies where the premiums are

low. The assured sum is paid (to the beneficiary) when the insured person dies or on

a pre specified date (to the policy holder).

ENDOWMENT:

Endowment Policies are recommended for people who require money at a pre-

specified point in time or at regular intervals and are willing to pay higher

premiums. The Sum assured is also paid to the beneficiary in case of death of the

policyholder before the specified term.

PENSION:

Pension Plans provide for immediate or deferred pension for life to the insured

person or to the beneficiary.



INSURANCE COMPANIES EXISTING IN THE INDIAN MARKET:

LIC: Life Insurance Corporation of India Ltd.(this is completely owned by

govt of India)

BAJAJ ALLIANZ LIFE INSURANCE COMPANY: ( A joint venture

between BAJAJ auto and ALLIANZ AG German based life insurance

company)

ICICI PRUDENTIAL LIFE INSURANCE : ( A joint venture between

ICICI bank & PRUDENTIAL of UK)

OM KOTAK MAHINDRA: ( A joint venture with OLD MUTUAL OF

SOUTH AFRICA & KOTAK MAHINDRA BANK )

BIRLA SUNLIFE: (A joint venture between ADITYA BIRLA group of

companies & SUNLIFE of CANADA )

TATA AIG: (A joint venture between the TATA group and US based

company AIG )

MAX NEWYORK LIFE: (A joint venture between MAX & NEWYORK

LIFE a US based company )



METLIFE: ( A joint venture between METRO POLITAN LIFE

INSURANCE company (US based) & Jammu & Kashmir Bank )

AVIVA: (A joint venture between DABUR & CGU, commonly known asAVIVA )

ING VYSYA: ( A joint venture between International Netherland Group –

ING a Dutch based company & VYSYA Bank limited )

SBI LIFE: (A joint venture between SBI Bank & CARDIFF Life

Insurance )

Note: Rule for Joint Venture Indian Company Should Have To Invest 76% or

More and Foreign Company Must Need Have an Investment Of 24 %

PLAYERS LIKELY TO ENTER IN THE INSURANCE MARKET:



• Sahara Group

• AXA From France

• Reliance

GENERAL INSURANCE COMPANIES:

Four Major Companies Which Are Completely Owned By Govt Of India Are:

1. National Insurance Company Limited.

2. New India Assurance Company Ltd.

3. Oriental Insurance Company Ltd.

4. United India Insurance Company Ltd.

Private General Insurance Companies:

1. Bajaj Allianz GIC.

2. ICICI Lombard.

3. Tata AIG.

4. Royal Sundarum.

5. Cholamandalum.

6. Iffco Tokyo GIC.

7. Reliance GIC.



About Bajaj Auto

About Allianz AG

Brief History About Bajaj Allianz

Vision of Bajaj Allianz

Core Values



COMPANY PROFILE

BAJAJ AUTO:

One of the largest 2 & 3 wheeler manufacturer in the world

21 million + vehicles on the road across the globe

Managing funds of over 4,000 Cr.

Bajaj Auto finance, one of the largest auto finance companies in India

Rs. 4,744 Cr.Turnover & Profits of Rs. 538Cr. In 2002-03.

ALLIANZ AG:



World’s largest insurance company by revenue –Rs 5,24, 400 Cr ( US $ 114

Billion )

World wide 2nd by GWP- Rs.4,46,654 Cr (Euro 85 billion )

3rd largest Asset under management (AUM ) & largest among insurance

companies. AUM of Rs 51,96,959 Cr. ( Euro 996 billion )

11th largest corporation in the world

50% global business from life insurance , close to 60 million lives insured

globally

established in 1890,115 years of insurance expertise

More than 70 countries 1,73,750 employees worldwide

Insurance almost half of the Fortune 500 companies.

BRIEF HISTORY OF BAJAJ ALLIANZ



Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading

conglomerates- Allianz AG, one of the world's largest insurance companies, and

Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Allianz

AG is a leading insurance conglomerate globally and the largest asset manager in

the world, managing assets worth 4989 billion Euros (Rs 49,84,560 crores).At Bajaj

Allianz, we realize that you seek an insurer you can trust your hard earned money

with. Allianz AG has more than113 years of financial experience in over 70

countries and Bajaj Auto, trusted for over 55 years in the Indian market, are

committed to offering you financial solutions that provide all the security you need

for your family and yourself.

At Bajaj Allianz, customers delight is our guiding principle. Ensuring world

class solutions by offering you customized products with transparent benefits

supported by the best technology is our business philosophy.

Bajaj Allianz Life Insurance

• Is the fastest growing private life insurance company in India.

• Currently has over 3, 00,000 satisfied customers.

• There are 155 customer care centers

.

Over 6,00,000 satisfied customers



1000 Cr. GWP, 380% growth for Bajaj Allianz Life strengthens No. 2

position with Rs.248 cr. Lead

The fastest growing and one of the leading life insurers in the country

Accelerated Growth

Financial year No. of policies GWP in FY

2001-02 (6 months) 21,376 Rs. 07 cr.

2002-03 1,15,965 Rs 69 cr.2003-04 1,86,443 Rs 221 cr.

2004-05 2,88,191 Rs 1000 cr.

Pan India network

Wide range of products to suit your needs

Decentralized organizational structure for better coordination and service

All customer care centers (CCC,s ) networked with state of art IT systems

Highest standard of customer service & simplified claims process in the

industry.

One of India's leading private life insurance companies:



BAJAJ ALLIANZ LIFE:

A Household Indian Name teams up with a global conglomerate

ALLIANZ GROUP

A global giant with operations in over 70 countries

BAJAJ GROUP

Bajaj Group is a Rs. 4000 crore auto giant

VISION OF BAJAJ ALLIANZ:

“To be the best Insurance Company in India to buy from, work for &

invest in.”

CORE VALUES OF BAJAJ ALLIANZ:

• Customer delight the guiding principle

• Ensuring world class solutions & services

• Offering customized products

• Transparent Benefits

SHARED VALUES OF BAJAJ ALLIANZ:



ALLIANZ BAJAJ WILL BE:

Be a winning team

Have a passion for excellence and avoid bureaucracy

Be empowered, have the to take decisions quickly and accountable

Be driven to achieve results, to deliver

Be professional and social committed

Be open to ideas ,sharing ,transparent and trusting

Focus everything we do on our customers

Make A Z Bj a “great place to work”

Have a sense of humour.



Conventional/Traditional Insurance Plans

ULIPS (Unit Linked Insurance Plans )

CONVENTIONAL/TRADITIONAL INSURANCE PLANS:



Invest Gain – An Endowment Plan

This saving plan combines your protection (up to quadruple cover) with a

unique family income benefit.

Cash Gain – Money Back Plan

Only money back plan that offers quadruple protection going up to four

times the basic sum assured and family income benefits.

Life Long Gain

“Regular income for you and the added benefit of providing for your loved

ones too”. A plan which provides you wholly life protection with only 10 or

15 years of premium contribution and guaranteed survival benefits.

Protector – A Mortgage Reducing Term Insurance Plan

Perfect plan to protect the family from the repayment liability of outstanding

loans, in the unfortunate case of death of the loanee.

Child Gain – Children Policy

Right providing for your child’s education to securing a bright future, tailor

made to suit your child’s needs, covers it all.

Swarn Vishranti – Retirement Plan



In addition to life insurance and attractive tax benefits this plan enables you

to make adequate provisions for your post retirement years as well.

Risk Care- Pure Term PlanA comprehensive plan which enables you to provide financial security to

your loved ones at the lowest possible cost. The only term plan in the market

to give hospital cash benefit option and the facility to cover two lives.

Life Time Care – Whole Life Plan

Whole life provides survival benefits at the age of 80, thereby making sure

you are secure at a time when you need it the most.

Save Care Economy SP –Single Premium Endowment Plan

A single premium investment plan for 10 years which provides life cover

along with growth in savings.

Term Care –Term Plan With Return –Of –Premium

An economic way of providing life cover, this plan also ensures the return of

all premiums at the time of maturity.

Keyman Insurance-A Promising Business Opportunity

Keyman insurance is a life insurance cover under a suitable plan, insuring

your business against unfortunate loss of key people.

Unit Gain Easy Pension-Choice Of Regular Premium And Single

Premium



A premium investment liked deferred annuity policy. A plan which helps you

to take control of your future and ensures better retirement benefits.

Unit Gain Life Pension-Choice Of Regular Premium And SinglePremium

Designed to take care of your retirement and insurance needs by providing a

comprehensive solution for a life time.

Swarna Raksha I-Immediate Annuity

o Life Annuity: A fixed annuity for life will be payable as per the

mode selected. The annuitant has to produce an existence certificate at

least 15 days prior to the policy anniversary date every year. The

annuity is payable up to the end of the policy year on which the death

of the annuitant occurs.

o Life Annuity Guaranteed For 5,10,15,20 Years: A fixed annuity

for life will be payable, guaranteed for the chosen period

(5/10/15/20years).The annuitant has to produce an existence

certificate at least 15 days prior to the policy anniversary date every

year.

o Life Annuity with Return of Purchase Price: A fixed annuity for

life will be payable. The annuitant has to produce an existence

certificate at least 15 days prior to the policy anniversary date.



o Life Annuity With Joint Life Last Survivor: A fixed annuity for

life will be payable as per the mode selected. The annuitant has to

produce an existence certificate at least 15 days prior to the policyanniversary date

every year. The annuity is payable up to the date of death of the last

survivor annuitant.

NRI Insurance-All Our Life Plans Are Available To NRIs

GROUP LIFE PLANS:

Group credit care –employer



Group term life –employer

Group term life scheme in lieu of EDLI(employees deposit linked

insurance

Scheme 1976)

Bajaj Allianz group gratuity care

Bajaj Allianz group superannuation care

UNIT LINKED INSURANCE PLANS (ULIP):

Different types of schemes In Unit Gain Insurance Plan (ULIP) are as follows:



Unit Gain

Unit Gain Single Premium

Unit Gain Plus

Unit Gain Plus Single Premium

Unit Gain Life Pension

Unit Gain Easy Pension

Life Long Gain

In ULIP the Policy Holder himself has to desire regarding the

o Premium Payment Terms

o Benefit Terms

By nature ULIP is very flexible and therefore Market Risk is associated with theULIP

(In ULIP minimum premium payment period is three years and maximum is 20years)

FUNDS AVAILABLE IN ULIP:

1. Equity fund ( EQUITY PLUS / GAIN )



2. Equity Index

3. Mid Cap Fund ( Mid cap plus )

4. Balanced Fund ( Balanced plus )

5. Cash Fund ( Cash plus )

6. Debt Fund ( Debt plus )

NOTE: We taking NSE and NIFTY index. BSE is not considered

UNIT GAIN / UNIT GAIN PLUS:

Introduction:



The thumb rule for buying insurance is that your insurance needs are minimal in

your earning years they increase with added responsibilities (Marriage, Children,

Loans, Etc.) and taper off by the time you retire. It is difficult to find a single

insurance plan that can take care of all the changing requirements in life - additional protection, more money to invest, sudden requirement of cash. With Bajaj Allianz

Unit Gain, you can invest in one life insurance plan that can take care of all your

changing requirements throughout your life. Bajaj Allianz Unit Gain offers the

unique options of combining the protection of life insurance with the attractive

prospects of investing in securities. You can choose the investment fund you want to

invest your money, providing you with an opportunity to have direct stake in the

performance of financial markets. You also benefit from attractive tax advantages

and can protect your loved ones against unfortunate events.

What are the key features of Unit Gain Plan?

Bajaj Allianz Unit Gain comes with host of features to allow you to have the best of

all worlds - Protection and Investments with flexibility like never before.

Some of the key features of this plan are:



Guaranteed death benefit.

Choice of investing the funds.

Attractive investment alternative to fixed- interest securities.

Provision for full/partial withdrawals any time after three full years

premium are paid.

Unmatched flexibility - to match your changing needs.

How Does the Unit Gain Plan Work?

The premiums paid are invested in fund/funds of your choice (depending on

the allocation rate) & units are allocated depending on the price of units for the

fund/funds. The value of your policy is the total value of units that you hold in the

fund/funds. The insurance cover charges are deducted through monthly cancellation

of units. The fund Administration Charges and Fund Management Charges are

priced in the unit value.

- Minimum Sum Assured = 5 times the annual premium.- Maximum Sum Assured = y times the annual premium where y will be as per the

following table:

UNIT GAIN

Age group 0-30 31-35 36-40 41-45 46-55 56-60



Y 125 105 75 55 30 20

UNIT GAIN PLUS

Age group 0-30 31-35 36-40 41-45 46-55 56-60

Y 125 90 60 40 20 15

What are the benefits of it?

Death Benefit.

Cash Withdrawal Options.

Investment Options.

Increase in Regular Premium Payment and Top-Ups.

Tax Benefits.

Additional Protection for you and your family.

Premium Holiday.

Switching between funds.

INVESTMENT OPTIONS:



Bajaj Allianz offers you a choice of 4 funds. You can choose to invest fully in any

one fund or allocate your premiums into the various funds in a proportion that suits

your investments needs. All the funds will be managed by the asset managers of

Bajaj Allianz.

The five funds offered are as under:

a) Equity Fund: This fund provides the scope of high appreciation over a long

term. The fund will primarily invest in equities and is expected to match returns

given by NSE NIFTY. This fund will invest at least 90% in equities and maximum

10% in cash.

b) Equity Gain Fund: the investment objective of this fund is to provide capital

appreciation through investment in selected equity stocks that have the potential for

high capital appreciation. This fund will invest at least 85% in equities and

maximum 15% in debt and cash instruments.

c) Debt Fund: This fund provides the scope for steady returns at low risk through

investments in high quality fixed income securities. This fund will be invested fully

in debt instruments.

d) Balanced Fund: The balanced is primarily for those who prefer mix of steady

returns and growth. The balanced fund will invest 30% to 50% in the equity fund

and 50% to 70% in the debt fund.

e) Cash Fund: The cash fund will invest conservatively in money market & short

term investments to ensure that return on investments shall never be negative. 100%



of this fund will be invested in money market instruments. The price of the units in

this fund will never to go down.

What is Premium Allocation?

A certain percentage of the prevailing premium will be allocated to purchase units at

the prevailing purchase price. The allocation rates would be as follows:

UNIT GAIN UNIT GAIN PLUS

YEAR ALLOCATION (%) YEAR ALLOCATION (%)

1 30 1 76

2 98 2 97

3 99 3 97

4th yr.onwords 100 4th yr.onwords 97

The allocation of top-ups would be 100% of the premium paid in UNIT GAIN

& 98% in UNIT GAIN PLUS.

Increase in Regular Premium Payment and Top-Ups:

The policyholder will have the option to increase the regular premium amount at

any time. The additional single premium would be treated as a single premium top-

up every year. The policyholder will also have the option to increase the amount

invested through top-ups.

Switching between funds:



Policyholder can switch units from one fund to another. The amount switched

should be in multiples of 1000, and the minimum switching amount is Rs. 5000 or

the fund value which ever is lower. Three free switches would be allowed every

year. Subsequent switches would be charged @ 1% of the switch amount or Rs. 100whichever is higher.

What is age at entry for Unit Gain plan?

Minimum age at entry: 0 (Risk commences at the age 7, and ceases after 70)

Maximum age at entry: 60

The minimum age at entry for all additional benefits is 18 years.

The maximum age at entry for all additional benefits is 50 years.

All additional benefits are available till age 65.

What is Bid Offer Spread?

Bid offer spread is 5% in case of Bajaj Allianz. The difference between the offer

and the bid price takes into account an initial management charge that is 5% of the

offer price. Premiums paid by the policyholder will buy units at the current offer



price and units will be cashed at the current bid price of the units. This is applicable

in UNIT GAIN. In UNIT GAIN PLUS, there is no Bid offer spread.

What are the different funds?

Equity Fund - Investment is in NSE ( National Stock Exchange ) NIFTY

i.e. top 50 companies.

Debt Fund - Investment is in Govt. Bonds for e.g. IDBI Bonds, Mutual

Funds etc.

Balance Fund - Investment is in Govt. and Private Companies.

Cash Fund - Investment is in Call Money Market ( operates on the need for

cash on hourly basis).

Tax Benefits

Contribution other than value of units cancelled for Critical Illness and Hospital

Cash eligible for tax relief under Sec 80c of IT Act, as of now.

Value of Units cancelled for Critical Illness and Hospital Cash Benefit is eligible for

tax relief under Section 80(D).

Death Benefit and Withdrawals (partial or full) is tax free under section 10(10) D of

the Income Tax Act, if the premiums paid in any year does not exceed 20% of the

Sum Assured or Fund Value, whichever is higher.



Incase of change in any tax laws relevant to the policyholder or the fund

performance, the same will be applied as per regulations prevailing at the point of

time.

UNIT GAIN SP / UNIT GAIN PLUS SP:

Introduction: Bajaj Allianz Unit Gain SP offers the unique option of combining the protection of

life insurance with the attractive prospects of investing in securities. You can choose

the investment funds you want to invest your money, providing you with an

opportunity to have a direct stake in the performance of the financial markets. You

also benefit from attractive tax advantages and can protect your loved ones against

unfortunate events.

What are the key features of this plan?

Convenient single premium payment, with option to pay top-ups later.



100% of the single premium/top-ups are allocated in Unit Gain SP& 98% in

Unit Gain Plus SP.

Guaranteed death benefit.

Choice of investment funds with flexible investment management: you can

switch between funds at any time.

Attractive investment alternative to fixed-interest securities.

Provision for full/partial withdrawals any time after the single premium is

paid.

Unmatched flexibility to match your changing needs.

What is the minimum amount to be invested?

The minimum amount to be invested is Rs.25000/-

What is the minimum Top-Up?

The minimum Top-Up is Rs.10000/-

What is the age limit for this policy?

Minimum age at entry is: 0 (Risk commences at age 7, and ceases after age 70)

Maximum age at entry is: 67-Unit Gain SP and 69 for Unit Gain Plus SP.

What are the tax benefits under this plan?

Death benefit is tax free.

Tax benefits are available under Sec 80c and Sec 10(10) D, as per the prevailing IT

Laws,

If the single premium/top up paid in any year is less than 20% of the Sum Assured.



What is the sum assured?

Minimum Sum Assured = 1.01 times the single premium.

Maximum Sum Assured = y times the single premium where y will be as per the

following table.

UNIT GAIN SP

Age group 0-30 31-35 36-40 41-45 46-60 61-69

Y 45 35 20 10 5 1.5

UNIT GAIN PLUS SP

Age group 0-30 31-35 36-40 41-45 46-60 61-67

Y 45 40 25 15 5 1.01

Introduction



Definition

Functions

HUMAN RESOURCE MANAGEMENT

Introduction:

Human Resource Management (HRM) is a management function that helps

manager’s recruit, select, train and develops members for an organization.

Obviously, HRM is concerned wit the people’s dimensions in organization.

DEFINITION OF HRM

“ HRM is concerned with the planning, organizing, directing and controlling

of the procurement, development, compensation, integration maintenance and

separation of human resources to the end that individual, organizational, and social

objectives are accomplished .”



FUNCTIONS:

1) Determining the human resources needs of the company.

2) Recruiting, selection, placement and Replacement.

3) Developing and maintaining an effective communication system.

4) Establishing a regular system of Evaluation and performance appraisal.

5) To maintain smooth scanning of the organization.

6) The main objective of the personnel department is to maintain the

discipline of every individual whether workman / staff supervisory

managerial.

7) To look of the welfare activities of the employees, first aid facility is

maintained in every department there is first aid box where in medicines will

be kept for their utilization under the control of section supervisor.

8) As regard provident fund of the employers the connected records are

maintained with the government bodies as well as in the organization and

periodical returns are submitted.



Introduction

Channels Of Marketing

Group & Alternative Channel

Group & HNI &



Agency Channel

Hierarchies In Marketing And Sales

SALES AND MARKETING

“Marketing is the process of identifying needs and wants of the

customers and translating that wants into products and services which will

satisfy his needs and delight him as a customer but also helps to the

organization to achieve its goals”.

A complexity of management decision making has greatly increased during recent

years through out the world. This is especially true with respect to the marketing

activity. Marketing activities are an interface between the firm and changing

character of most markets (example: population, growth raising incomes and shift in

the aged composition ).

Most management groups are far removed from their customers the individual who

in the final analysis, determine the success or failures. A complicated system of

branch officers, wholesalers and retailers operates between the manager and the



widely scattered customers. Consequently, the executive who must make marketing

decisions has no direct contact with the actual or the prospective customers.

Coming to the selling of insurance it’s tough but challenging. Basically humanneeds and analysis is done. To understand and fact find one should possess good

communication skills and a zeal for success.

Normal insurance rule is 50:04:01

50 Calls

4 Appointments

1 Buy insurance

CHANNELS OF MARKETING:

Group and Alternate Channel

Group and HNI (High Net worth Individual )

Bank Assurance

Agency Channel



Group And Alternative Channel :

Vice President

Associate Vice President

Area Manager

Deputy Area Manager



Relationship Managers

Junior Relationship Manager

Senior Insurance Service Executive

Insurance Service Executive

Insurance Service Representative

Group and HNI :

Vice President

Associate Vice President

Area Manager

Deputy Area Manager

Relationship Managers



Junior Relationship Manager

Senior Insurance Service Executive

Insurance Service Executive

Insurance Service Representative

Bank Assurance :

• Standard Chartered Bank

• Syndicate Bank

• Centurion Bank

Agency Channel :

South zone

ZONAL MANAGERS



CHIEF MANAGERS

SENIOR BRANCH MANAGERS

ASSISTANT BRANCH MANAGERS

SALES TEAM MANAGER

SATELLITE BRANCHMANAGERS

INSURANCE CONSULTANTS

SALES TEAM MANAGERS


Hierarchies In Marketing And Sales :

CHAIRMAN

C E O

H R MANAGER

HEAD OF SALES AND MARKETING

ZONAL MANAGERS



CHIEF MANAGERS

SENIOR BRANCH MANAGERS

ASSISTANT BRANCH MANAGERS

SALES TEAM MANAGER

SATELLITE BRANCHMANAGERS


SALES TEAM MANAGERS




SWOT ANALYSIS OF BAJAJ ALLIANZ

Strengths:

1. Commitment to total customer satisfaction

2. Wide range of quality products

3. Excellent infrastructure

4. A strong unity among its employees.

5. Highly computerized

6. Giving importance to each and every age group

Weaknesses:

1. Lack of proper advertisement.

2. Not much of branches in Bangalore like other life insurance companies

Opportunity:

1. The company is planning to open new branches in the Bangalore city.



2 Increasing the insurance consultants and start more of mobile servicing.

Threats:

Cut throat competition from other insurance companies and also from

foreign players.



Problems Identified – Insurance Sector:-

Life Insurance deals with the financial losses incurred incase of Death,

Disability, Disease, and Destitution. It is the only financial product that gives three

benefits i.e. Tax benefit, Protection and Investment. Life Insurance is a contract that

guarantees payment of a stated amount of money to the policyholder on the

occurrence of a stated event. It pays a contracted amount of money on death of the

policyholder or on his survival of a stated period of time. Under some contracts the

sum assured is paid to the policy owner to take care of his old age, children’s

education, and marriage. Insurance can also be used for saving tax or repayment of a

loan. Taking care of all these needs, insurance is one of the easiest and most

affordable financial tools.

During my study in BAJAJ ALLIANZ Life Insurance Company limited I had

identified the following problems which the insurance sector is facing. They are as

follows:-

1) Awareness Level :

If we look in to the awareness level of the insurance companies,

we see that LIC has 100% awareness in the market. People associate insurance



to LIC. It has become a generic brand. So it has become a challenging task for

the private life insurance companies.

2) Lack Of Agent Services : During my study in bajaj allianz I found that agents spoke about

only those policies which give them maximum commission.

3) Insurance Coverage:

In India till now only 20% of the population is covered under

insurance while the remaining is yet to be insured. As insurance sector has been

opened up, the monopoly of government companies has broken and many new

private players have entered in to the insurance sector thus the sector has become

highly competitive with full of challenges.

4) Branches:

If we compare to other private life insurance companies, Bajaj

Allianz Life Insurance Company has its only one branch in the Bangalore.

Solutions of The Above Problems:

1) Spread Insurance Awareness:As we see that people associate life insurance to LIC only, so

these private sector companies have to work hard to remove this concept from

the minds of the people. There is urgent need to highlight the benefits of

insurance products to the majority of population.



2) Agents Services: The agent has to spoke not only those policies which gives

them maximum commission but also some other policies which are very

important from the point of company and to general public.

3) To Increase The Percentage Of Insurance Coverage:

As we that at present only 20% of the population is covered under

insurance. So it has become a necessary evil for the private life insurance

companies to increase this ratio as the competition is growing in the market.

4) To Open New Branches:

As almost all the companies are having more than one branch in

Bangalore it suggested to the company to consider on this point.





The benefits of computerization should be wide spread to all the departments

The information in the website should be updated in a regular basis

A special workshop needed to be organized for developing the personality of

the employees , at the initial stage, later stage and to be spread to all workers

in the organization

A system of self appraisal should be carried out instead of manager expresses

his or her view on the employees standing in the organization. This system

makes the employees to understand where he stands in the organization, the

management can easily evaluate the past performance of employees based on

self appraisal data by given by the employee.



As almost all the companies are having more than one branch in Bangalore it

suggested to the company to consider on this point.

There is news that insurance companies from foreign countries are entering

in the Indian market, therefore they should be careful in deciding their plans.

Key Innovative End Products: The new entrants would survive for a long

period by adopting two prolonged strategies. First is to introduce innovative

products offering a right mix of flexibility/ risk/return depending which will

suit the appetite (needs ) of the customer and secondly, they would target

specific niches, which are poorly served or not served at all.

Customer Service: The opening of insurance in India and the subsequent

entry of private players in the market broke down the entire approach to the

customer service. The focus is now on offering quality products supported by

rigorous service benchmarks across the life of the product. This is one area

where all the players have to concentrate. Since customers satisfaction can

only drive the demand of the individual products.



Conclusion:

Insurance is not a sophisticated industry, which may require the involvement

of multinationals in order to obtain the latest technology. If we are keen on

following the latest trends in the insurance business, we could directly employ

some of the foreign experts at a pittance of cost rather than letting Indian money

and capital be secreted abroad and there by depriving the country of vast

investible funds-on false slogans on the benefit of globalization.

The Indian insurance industry is still in its embryonic stage but has the

potential to grow in to one of largest markets in the world within the foreseeable

future. The Indian insurance sector is witnessing tremendous improvements in

market expansion, product development, and customer service and distribution

channels. The new players have taken their work seriously and steadily in

increasing their market share.



BIBLIOG

RAPHY:

Broachers of the company

Marketing Management :Philips Kotler

Human Resource Management :Ashwatappa

Website: www.irdaindia.com

http://www.irdaindia.com/

http://www.irdaindia.com/

Bajaj Aliance Insurance

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