bajaj Alliance insurance.docx

ACKNOWLEDGEMENT

First of all I would like to thank the management at Bajaj Life Insurance Company for giving me the opportunity to do my summer training in their esteemed organization. I am highly obliged to Mr. vikram gupta for granting me an opportunity to undertake training in bajaj allianz.

I express my thanks to all sales managers under whose able guidance and direction, I was able to give shape to my training. Their constant review and excellent suggestions throughout the project are highly commendable.My sincere thanks to all executives who helped me gain knowledge about the actual working and processes involved in various departments.

(Manpreet singh)

RIMT-INSTITUTE OF MANAGEMENT AND COMPUTER TECHNOLOGY 1

CONTENTS Pg. No.1. Introduction to the Industry 4-161.1 Meaning of Insurance1.2 History of Insurance1.3 Meaning of Life Insurance1.4 Role of Life Insurance in the Growth of the Economy2. Introduction to the Organization 17-272.1 Allianz Group2.2 Bajaj Group2.3 Mission of the Company2.4 Vision of the Company2.5 History of the Company3. SWOT 28-31 4. Research objective 32-384.1 Research methodology4.2 Sample Size and method of selecting sample4.3 Scope of Study4.4 Limitation of Study5. Facts and Findings 39-466. Conclusion 477. Recommendation and Suggestions 488. Bibliography 499. Appendix 50-54


EXECUTIVE SUMMARY

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz SE, one of the

world's largest insurance companies, and Bajaj Finserv. Allianz SE is a leading insurance

corporation globally and one of the largest asset managers in the world, that manage

assets worth over a Trillion. With over 115 years of financial experience, Allianz SE is

present in over 70 countries around the world. Bajaj Allianz is into both life insurance

and general insurance. Today, Bajaj Allianz is one of India's leading and fastest growing

insurance companies. Currently, it has presence in more than 550 locations with over

60,000InsuranceConsultants.

In June 2008, Bajaj Allianz entered into partnership with Thomas Cook India to provide

travel finance. Bajaj Allianz Life Insurance ensures excellent insurance and investment

solutions by offering customized products, supported by the best technology.


INTRODUCTION TO THE INDUSTRY

1.1 MEANING OF INSURANCE Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is a collective bearing of risk. Insurance is a financial device to spread the risks and losses of few people among a large number of people, as people prefer small fixed liability instead of big, uncertain and changing liability

.Insurance can be defined as a “legal contract between two parties whereby one party called insurer undertakes to pay a fixed amount of money on the happening of a particular event, which may be certain or uncertain.” The other party called insured pays in exchange a fixed sum known as premium.

Insurance is desired to safeguard oneself and one’s family against possible losses on account tof risks and perils. It provides financial compensation for the losses suffered due to the happening of any unforeseen events

IMPORTANCE OF INSURANCE

Insurance constitutes one of the major segments of the financial market.Insurance services play predominant role in the process of financial intermediary. Today insurance industry is one of the most growing sectors in India. There is lot of potential in the Indian Insurance Industry.There are many issues, which require study. The scope of the study of Insurance industry of India would be very great as there are ongoing developments in the industry after the opening of the sector.The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. In near future Government may allow 49% FDI in Insurance. This would lead to more capital inflow by foreign partners.

Another major issue is the effects on LIC after the entry of private players in the market. Though market share of LIC has been affected, it has improved in terms of efficiency.There are number of other hot topics like penetration of Health Insurance, Rural marketing of insurance, new distribution channels, new product ranges, insurance brokers’ regulation, incentive scheme of development officers of LIC etc. So it offers lot of scope for studying the insurance industry.Right now the insurance industry has great opportunities in countries like India or China which have huge population. Also the penetration of insurance in India is very low in both life and non-life segment so there is lot potential to be tapped.


Before starting the discussion on insurance industry and related issues, we have to start with the basics of insurance. So first we understand what is Insurance? How the word ‘insurance’ is different from the word‘Assurance’? etc.

DIFFERENCE BETWEEN INSURANCE AND ASSURANCE

Assurance is older in history and it was used to describe all types of Insurance. From 1826, the term assurance came to be used only for the risks covered by life insurance and the term insurance was exclusively used to denote the risks covered by marine, fire, etc.The word assurance indicated certainty. In life insurance, there is an assurance from the insurance company to make payment under the policy either on the maturity or at earlier death. On the other hand the word insurance was used to denote indemnity type of insurance where the insurance company was liable to pay only in case of the loss damage the property.

The insured event was bound to happen sooner or later under assurance but the event insured against may or may not happen under insurance.The principle of “indemnity” applies to “insurance contracts” (non-life) only. The scope of the word, insurance is wider.

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance.(1) Principle of utmost good faith

It means “maximum truth”. Both the parties should disclose all material information regarding the subject matter of Insurance.

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made, he shall be fully indemnified only to the extent of loss. In other words, the insured is not entitled to make a profit on his loss.


(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims in so far as the insured’s right of recovery from an alternative source is involved. The insurer before the settlement of the claim may exercise the right. In other words, the insurer is entitled to recover from a negligent third party any loss payments made to the insured. The purposes of subrogation are to hold the negligent person responsible for the loss and prevent the insured from collecting twice for the same loss. The concept of ‘Third Party Claims’ is based on the same principle.

(4) Principle of insurable interest

The assured must have insurance interest in the life or property insured. Insurable interest is that interest which considerably alters the position of the assured in the event of loss taking place and if the event does not take placed, he remains in the same old position.


1.2 HISTORY OF INSURANCE

The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders used to bear risk of the carvan by giving loans, which were later repaid with interest when the goods arrived safely.The concept of insurance as we know today took shape in 1688 at a place called Lloyd’s Coffee House in London where risk bearers used to meet to transact business. This coffee house became so popular that Lloyd’s became the one of the first modern insurance companies by the end of the eighteenth century.

Marine insurance companies came into existence by the end of theeighteenth century. These companies were empowered to write fire and life insurance as well as marine. The Great Fire of London in 1966 caused huge loss of property and life. With a view to providing fire insurance facilities, Dr. Nicholas Barbon set up in 1967 the first fire insurance company knownas the Fire Office.

The early history of insurance in India can be traced back to the Vedas. The Sanskrit term ‘Yogakshema’ (meaning well being), the name of Life Insurance Corporation of India’s corporate headquarters, is found in the Rig Veda. The Aryans practiced some form of ‘community insurance’ around 1000 BC.

Life insurance in its modern form came to India from England in 1818. The Oriental Life Insurance Company was the first insurance company to be set up in India to help the widows of European community. The insurance companies, which came into existence between 1818 and 1869, treated Indian lives as subnormal and charged an extra premium of 15 to 20 percent. The first Indian insurance company, the Bombay Mutual Life Assurance Society, came into existence in 1870 to cover Indian lives at normal rates.The Insurance Act, 1938, the first comprehensive legislation governing both life and non-life branches of insurance were enacted to provide strict state control over insurance business. This amended insurance Act looked into investments, expenditure and management of these companies.

By the mid- 1950s there were 154 Indian insurers, 16 foreign insurers, and 75 provident societies carrying on life insurance business in India. Insurance business flourished and so did scams, irregularities and dubious investment practices by scores of companies. As a result the government decided to nationalize the life assurance business in India. The Life Insurance Corporation of India (LIC) was set up in 1956. The nationalization of life Insurance was followed by general insurance in 1972.


1.3 MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction: the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person.Another important person involved in a life insurance policy is thebeneficiary. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured.Life insurance may be divided into two basic classes – term and permanent.

• Term life insurance provides for life insurance coverage for aspecified term of years for a specified premium. The policy does notaccumulate cash value.

• Permanent life insurance is life insurance that remains in force until the policy matures, unless the owner fails to pay the premium when it is due.

• Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, mortality and expense charges will not reduce the cash valueshown in the policy.

• Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account.If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy.

If you want to buy a whole life, universal life, or other cash value policy, plan to hold it for at least 15 years.Canceling these policies after only a few years can more than double your Life insurance costs.


NEED FOR LIFE INSURANCE

You need Life Insurance because typically the need for income continues for those who are financially dependent on you, but there is no guarantee of your ability to earn consistently and for the rest of your life. Life insurance can help you safeguard the financial needs of your family. This need has become even more important due to steady disintegration of the prevalent joint family system, and emergence of nuclear families. The need to protect your family's ever growing needs is why you need Life Insurance.

Why Do I Need Life Insurance?

That’s a common question. Why would you need Insurance? Simply put, Life brings with it many surprises, some pleasant and some not so and a Life Insurance Plan ensures that you are better prepared to face uncertainties. How? In a number of ways:

Protection

You need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. It is a thoughtful business concept designed to protect the economic value of a human life for the benefit of those financially dependent on him. That’s a good reason. Supposing you suffer an injury that keeps you from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected.

Retirement

Life insurance makes sure that you have regular income after you retire and also helps you maintain your standard of living. It can ensure that your post-retirement years are spent in peace and comfort.

Savings and Investments

Insurance is a means to Save and Invest. Your periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy can come in really handy at the time of your child’s education or marriage! Besides, it can be used as supplemental retirement income!


Tax Benefits

Life insurance is one of the best tax saving options today. Your tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned!

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutionsthroughout history. Protecting against risk is what insurance is all about. Over 5000 years ago, in China, insurance was seen as a preventative measure against piracy on the sea. Piracy, in fact, was so prevalent, that as a way of spreading the risk, a number of ships would carry a portion of another ship's cargo so that if one ship was captured, the entire shipment would not be lost.

In another part of the world, nearly 4,500 years ago, in the ancient land ofBabylonia, traders used to bear risk of the caravan trade by giving loans thathad to be later repaid with interest when the goods arrived safely. In 2100BC, the Code of Hammurabi granted legal status to the practice. Itformalized concepts of “bottomry” referring to vessel bottoms and“respondentia” referring to cargo. These provided the underpinning formarine insurance contracts. Such contracts contained three elements: a loanon the vessel, cargo, or freight; an interest rate; and a surcharge to cover thepossibility of loss. In effect, ship owners were the insured and lenders werethe underwriters.

Life insurance came about a little later in ancient Rome, where burial clubswere formed to cover the funeral expenses of its members, as well as helpsurvivors monetarily. With Rome's fall, around 450 A.D., most of theconcepts of insurance were abandoned, but aspects of it did continue throughthe Middle Ages, particularly with merchant and artisan guilds. Theseprovided forms of member insurance covering risks like fire, flood, theft,disability, death, and even imprisonment.

During the feudal period, early forms of insurance ebbed with the declineof travel and long-distance trade. But during the 14th to 16th centuries,transportation, commerce, and insurance would again reemerge.Insurance in India can be traced back to the Vedas. For instance,Yogakshema, the name of Life Insurance Corporation of India's corporateheadquarters is derived from the Rig Veda. The term suggests that a form of


"community insurance" was prevalent around 1000 BC and practiced by theAryans.

And similar to ancient Rome, burial societies were formed in the Buddhistperiod to help families build houses, and to protect widows and children.

KEY FEATURES OF LIFE INSURANCE

1) Nomination: -When one makes a nomination, as the policyholder, one continues to be theowner of the policy and the nominee does not have any right under thepolicy as long as he/she is alive. The nominee has only the right to receive the policy money in case of your death within the term of the policy.

2) Assignment: -If your intention is that your policy monies should go only to a particularperson, you need to assign the policy in favor of that person.

3) Death Benefit: -The primary feature of a life insurance policy is the death benefit it provides.Permanent policies provide a death benefit that is guaranteed for the life ofthe insured, provided the premiums have been paid and the policy has notbeen surrendered.

4) Cash Value: -The cash value of a permanent life insurance policy is accumulatedthroughout the term of the policy. It equals the amount a policy owner wouldreceive, after any applicable surrender charges, if the policy weresurrendered before the insured's death.

5) Dividends: -Many life insurance companies issue life insurance policies that entitle thepolicy owner to share in the company's divisible surplus.


6) Paid-Up Additions: -Dividends paid to a policy owner of a participating policy can be used innumerous ways, one of which is toward the purchase of additional coverage,called paid-up additions.

7) Policy Loans: -Some life insurance policies allow a policy owner to apply for a loan againstthe value of their policy. Either a fixed or variable rate of interest is charged.This feature allows the policy owner an easily accessible loan in times ofneed or opportunity.

8) Conversion from Term to Permanent: -When in need of temporary protection, individuals often purchase term lifeinsurance. If one owns a term policy, sometimes a provision is available thatwill allow her to convert her policy to a permanent one without providingadditional proof of insurability.9) Disability Waiver of Premium: -Waiver of Premium is an option or benefit that can be attached to a lifeinsurance policy at an additional cost. It guarantees that coverage will stay inforce and continue to grow


BENEFITS OF LIFE INSURANCE1) Risk cover: -Life Insurance contracts allow an individual to have a risk cover against anyunfortunate event of the future.

2) Tax Deduction: -Under section 80C of the Income Tax Act of 1961 one can get tax deductionon premiums up to one lakh rupees. Life Insurance policies thus decrease the total taxable income of an individual.

3) Loans: -An individual can easily access loans from different financial institutions bypledging his insurance policies.

4) Retirement Planning: -What had provided protection against the financial consequences ofpremature death may now be used to help them enjoy their retirement years.Moreover the cash value can be used as an additional income in the old age.

5) Educational Needs: -Similar to retirement planning the cash values that flow from ones lifeInsurance schemes can be utilized for educational needs of the insurer or hischildren.


1.4 ROLE OF LIFE INSURANCE IN THE

GROWTH OF THE ECONOMY The Life Insurance Industry has an enviable track record among publicsector units. It has a Consistent profit and dividend paying recordaccompanied by a steady growth in its financial resources. Throughinvestments in the Government sector and socially- oriented sectors theIndustry has contributed immensely to the nation's development. Theindustry is recognized as one of the largest financial Institutions in thecountry. The ventures initiated by the industry in the areas of MutualFund, Housing Finance have done exceedingly well in recent years. To protect thecountry's foreign exchange reserves, the reinsurance arrangement are soorganized that maximum retention is made possible within the country whileat the same time protecting interests of the policy holders.

SECTION 45 OF THE INSURANCE ACT, 1938

“No policy of life insurance effected after the coming into force of this Act shall, after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such a statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at that time of making it that the statement was false or that it suppressed facts which it was material to disclose.”

PROHIBITION OF REBATE:SECTION 41 OF THE INSURANCE ACT, 1938 “No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.Any person making default in complying with the provisions of this section shall be punishable with a fine which may extend to five hundred rupees.”


A comprehensive list of policies and products offered by Bajaj Allianz Life Insurance Co. Ltd. is as follows:

UNIT LINKED Regular Premium

New UnitGain Super

UnitGain Plus Gold

New UnitGain Plus

New UnitGain YoungCare YoungCare Plus

New FamilyGain-R

Single Premium

New UnitGain Premier SP

New UnitGain Plus SP

PENSION Annuity

Pension Guarantee

Retirement

Future Income Generator

Swarna Vishranti

New UnitGain Easy Pension Plus RP

New UnitGain Easy Pension Plus SP

Future Secure

TRADITIONAL Endowment InvestGain

SaveCare Economy SP

Life Time Care Super Saver

Money Back CashGain

TERM PLANS Protector Term Care

New Risk Care

WOMEN INSURANCE

Miss Confident Plans

HEALTH Care First Health Care

Family CareFirst

CHILDREN PLAN ChildGain

JUST LAUNCHED Family Assure Fortune Plus CenturyPlus II

UnitGain Protection Plus

Invest Plus

Group Seva Plan

In my training Period, I have focused mainly on two products of Bajaj Allianz Life

Insurance company: “New Family Gain and New Unit Gain”.


NEW FAMILY GAIN

In this product, the minimum premium which is to be paid by the customer is Rs.5000.

The maximum premium for this product is Rs.10000.The policy term is 10 years.

The Sum Assured is Rs. 50000 or the Fund Value which ever is higher.

It is a unit linked plan and the Lock-in period is 3 years. After 3 years the customer can withdraw 75% or whole amount but surrender charges will be taken. After 5 years no surrender charges will be charged.

In this product customer has the facility of getting a premium holiday for 2 years after 3 years have been completed and if he withdraws after 5 years he will get Rs. 30000.

The customer will get benefit of Section 80C and Section 10(10D) of Income tax. Under Section 80 C the customer will get Tax rebate and under Section 10(10D) he will get tax free maturity gains.

NEW UNIT GAIN

In this product, the minimum premium which is to be paid by the customer is Rs.10000.

The maximum premium for this product has no limit. The policy term is 10 years.

The Sum Assured is 5 times the premium amount or the Fund Value which ever is higher.

It is a unit linked plan and the Lock-in period is 3 years. After 3 years the customer can withdraw 75% or whole amount but surrender charges will be taken. After 5 years there are no surrender charges

In this product customer has the facility of getting a premium holiday for 2 years after 3 years have been completed and if he withdraws after 5 years he will get Rs. 60000.

The customer will get benefit of Section 80C and Section 10(10D) of Income tax. Under Section 80 C the customer will get Tax rebate and under Section 10(10D) he will get tax free maturity gains.


2.INTRODUCTION ABOUT THE COMPANY

Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance Company and Bajaj Finserv. (recently demerged from Bajaj Auto.)

Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has over 115 years of financial experience and is present in over 70 countries around the world.

At Bajaj Allianz Life Insurance, customer delight is our guiding principle. Our business philosophy is to ensure excellent insurance and investment solutions by offering customized products, supported by the best technology.It started in 2001.

Financial services arm's profit rises to Rs 42 crore

BS Reporter / Mumbai July 16, 2009, 0:40 IST

Bajaj Finserv, the financial services arm of the Bajaj Group, posted a net profit of Rs 42 crore for the quarter ended June 30, 2009. It had posted a loss of Rs 36 crore in the corresponding period last year.

The group’s life insurance arm, Bajaj Allianz Life Insurance Company, was the biggest contributor to the firm’s income. Bajaj Allianz has posted a profit of Rs 68 crore in the June quarter. In the year-ago quarter, it had posted a loss of Rs 3 crore.

Gross written premium for the quarter rose 40 per cent to Rs 2,001 crore as against Rs 1,847 crore in the corresponding period last year. Renewal premium, too, increased to Rs 1,423 crore as against Rs 1,018 crore in the quarter ended June 30, 2008. However, new business premium fell 42.28 per cent to Rs 577 crore.


2.1 ALLIANZ GROUP

Allianz Group is one of the world's leading insurers and financial services providers.

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost

174,000 employees. At the top of the international group is the holding company, Allianz

AG, with its head office in Munich.

Allianz Group provides its more than 60 million customers worldwide with a

comprehensive range of services in the areas of

Property and Casualty Insurance,

Life and Health Insurance,

Asset Management and Banking.

ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE

Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 crore.

3rd largest Assets under Management (AUM) & largest amongst Insurance cos. -

AUM of Rs.51, 96,959 crore.

12th largest corporation in the world

49.8 % of global business from Life Insurance

Established in 1890, 110 yrs of Insurance expertise

70 countries, 173,750 employees worldwide


2.2 BAJAJ GROUP Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest

manufacturer of two-wheelers and three-wheelers in India and one of the largest in the

world.

A household name in India, Bajaj Auto has a strong brand image & brand loyalty

synonymous with quality & customer focus.

A STRONG INDIAN BRAND- HAMARA BAJAJ

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

21 million+ vehicles on the roads across the globe

Managing funds of over Rs 4000 cr.

Bajaj Auto finance one of the largest auto finance cos. in India

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

It has joined hands with Allianz to provide the Indian consumers with a distinct

option in terms of life insurance products.

As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the

following to offer -

Financial strength and stability to support the Insurance Business.

A strong brand-equity.

A good market reputation as a world class organization.

An extensive distribution network.

Adequate experience of running a large organization.


Accelerated GrowthFiscal Year No. of policies sold New Business in FY2001-2002(6 months) 21,37 Rs. 7 cr.2002-2003 1,15,965 Rs. 63.3 cr.2003-2004 1,86,443 Rs. 180 cr.2004-2005 2,88,189 Rs. 857 cr.2005-2006 7,81,685 Rs. 2,717 cr.2006-2007 20,79,217 Rs. 4,302 cr.2007-2008 37,44,742 Rs. 6,674 cr.


2.3 Mission of the company

India has 102 crore population but only 16 crore people are insured till now. Still 86 crore People are yet to be insured. Also in broader perspective, company wants to make every person get benefited through investing in Bajaj Allianz Life Insurance. The Company is focusing on improving employee productivity, policy persistency, operational processes and service levels.

2.4 Vision of the Company

1) To be the first choice insurer for customers.

2) To be the preferred employer for staff in Insurance industry.

3) To be the number one insurer for creating shareholder value

4) To aspire to be a world class organization.

5) To encourage organizational transparency.

6) To value integrity.


2.5 HISTORY OF THE COMPANY

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. Characterized by

global presence with a local focus and driven by customer orientation to establish high

earnings potential and financial strength, Bajaj Allianz Life Insurance Co. Ltd. was

incorporated on 12th March 2001. The company received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) No 116 on 3rd August

2001 to conduct Life Insurance business in India. Bajaj Auto Ltd, the flagship company

of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-

wheelers in India and one of the largest in the world. A household name in India, Bajaj

Auto has a strong brand image & brand loyalty synonymous with quality & customer

focus. With over 15,000 employees, the company is a Rs. 4000 crore auto giant, is the

largest 2/3-wheeler manufacturer in India and the 4th largest in the world. AAA rated by

Crisil, Bajaj Auto has been in operation for over 55 years. It has joined hands with

Allianz to provide the Indian consumers with a distinct option in terms of life insurance

products.


Details of the Company

Managing Director and CEO – Mr. Kamesh Goyal

Sashi Krishnan, CIO, Bajaj Allianz Life Insurance

C.F.O. – Mr. Rajesh Viswanathan


Head, Marketing- Mr. Sanjay Jain

BOARD OF DIRECTORS:Mr. Rahul Bajaj (Chairman)Dr. Werner ZedeliusMr. Sanjay AsherMr. Niraj BajajMr. Sanjiv BajajMr. Heinz DollbergMr. Ranjit GuptaMr. S. H. KhanMr. Suraj MehtaMr. Dietmar RaichMr. Manu TandonMr. Kamesh Goyal (Alternate Director to Dr. Werner Zedelius)

Address Branch Address: Bajaj Allianz Life Insurance Co. Ltd. # 127,staff road ,opp G.P.O, Ambala cantt 134001

Head Office Address: Bajaj Allianz Life Insurance Company Limited GE Plaza, Airport Road, Yerawada, Pune-411006 Maharashtra Telephone: (+91 20) 66026777


CHANNEL PARTNERS OF BAJAJ ALLIANZ

Standard Chartered Bank

Contact Number : 022 2492 8888

E-mail Address: [email protected]

Syndicate Bank

Contact Number : 020 4026 742

E-mail Address: [email protected] www.syndicatebank.com

Placement Sales and Services Ltd.

Contact Number : 0487-2388666,2385922 Tele Fax - 2388666


mailto:[email protected]


E-mail Address: [email protected]

Address: Regency Centre, Kalavary Road, West Fort, Thrissur –4 Kerala, India

www.teamlifecare.in

Team Life Care Co. (India) Ltd.

Contact Number : 0427 - 2410707; 2420707; Tele Fax - 2421245

Address: 5/118, Yercaud Main Road, Chinnakollapatti, SALEM - 636008.

Ernestine Consultants Pvt Ltd.

Contact Number : 080- 4034 1999 Fax- 080 - 4034 1920

Address: 1011, Ist Floor 3rd Cross, 13th Main HAL 2nd Stage, Indira Nagar Bangalore-560038

www.cosmosbank.com

COSMOS Co-op BANK Ltd.

Contact Number : 020 2488051

E-mail Address : [email protected]



http://www.cosmosbank.com/

http://www.teamlifecare.in/


Organizational chart

Branch Manager

Business Development Manager (B.D.M.)

Assistant Business Development Manager (A.B.D.M.)

Insurance Sales Officer (I.S.O.)


3.SWOT

STRENGTHS:

I. Financial Acumen - Holds a stable and diversified portfolio and has received

some of the highest ratings in financial strength from industry’s independent

rating agencies.

II. Disciplined fund management - Years of experience in asset management, and a

strong track record in managing funds

III. Innovativeness - Known for being an innovator in providing world-class

pragmatic financial solutions, with a constant focus on customization and

flexibility

IV. Unrelenting Customer Focus - A highly committed sales force, with customer

satisfaction as the key driving force - a major differentiator

V. Transparency in Services - Daily declaration of fund performances, regular

performance benchmarking, well regulated asset management, and monthly

newsletter on market updates


WEAKNESSES:

Industry in nascent stage.

Rural areas still not covered.

Not very known among Indian population.

Lack of credibility among the people because bajaj being a private player.

Premiums are high as compared to its competitors.

Very few branches in the country.

Products:.

» Plan does not offer any guarantee or assured return.

» Product profile is not very comprehensive.

» Mortality, management and administrative charges are sky scrapping as

compared to its competitors.


OPPORTUNITIES:

Liberalization of Indian economy.

As the industry is growing the whole market is virgin.

The whole private sector is opened to be trapped even though the competition is

fierce from government owned insurance companies.

It’s a volume business that is even if the company has few good corporate the

turnover cease to increase by manifold.

Products:

» Preserver funds look good due to comfortable liquidity in the economy

and there is little chance hike in short-term rate by RBI.

» Finance minister unveiled a budget favoring consumer spending, boosting

demand and therefore higher economic growth.


THREATS

The government players will become aggressive thus growth is going to be tough.

Entry of other players is not ruled out.

Apprehension towards bajaj being a private life insurance company..

Products:

» Past performance of these plans is not indicative of the future performance

of the plan.

» The sum invested in the funds is subject to market risks and there can be

no assurance that the objective of plan will be achieved.

» All benefits payable under the policy are subject to tax laws and other

financial enactment, as they exist from time to time.


4.RESEARCH OBJECTIVES

1) To know the consumer responses about Bajaj Allianz life insurance policy.

2) To know about the products of Bajaj Allianz Life Insurance.

3) To know about the objections of people for not taking the Insurance policy.

4) To know the need for Life Insurance.

5) To know the benefits of Life Insurance.

6) To know the market share of Bajaj Allianz Life Insurance in the Market.


4.1RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. Research

methodology constitutes of research methods, selection criterion of research methods,

used in context of research study and explanation of using of a particular method or

technique so that research results are capable of being evaluated either by researcher

himself or by others. Why a research study has been undertaken, how the research

problem has been formulated, why data have been collected and what particular

technique of analyzing data has been used and a best of similar other question are usually

answered when we talk of Research methodology concerning a research problem or

study. The main aim of research is to find out the truth which is hidden and which has not

been discovered as yet.

The area of the study related with informing different people about life insurance policies

in the region of Lucknow.


4.2 SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population. It

refers to the techniques or the procedure the researcher would adopt in selecting items for

the sample. Sample design may as well be drawn from the population to be included in

the sample i.e. the size of the sample. Sample design is determined before data are

collected.

During my study I have taken 60 prospects as the size of sample.

TOOLS USED

To know the response, I have used the questionnaire method. If one wishes to find what

prospects think or know, the logical procedure is to ask them. This has led marketing

researchers to use the questionnaire technique for collecting data more than any other

method.

In this method questionnaire were distributed to the respondents and they were asked to

answer the questions in the questionnaire. The questionnaire were structured non

disguised questionnaire because the question which the questionnaire contained, were


arranged in a specific order besides every question asked were logical for the study, no

question can be termed as irrelevant.

The questionnaire was non-disguised because the questionnaire was constructed so that

the objective is clear to the respondent. The respondents were aware of the objective.

They knew why they were asked to fill the questionnaire.

With the help of following techniques, which are used by Bajaj Allianz I have analyzed

that the how techniques of sales promotion are useful

Questionnaire used was as follows:

Name:

Address:

Contact number:

Age:

1) Whether you are Married or Unmarried? (.M for married, U for

Unmarried) :

2) What is your Educational Qualification?

3) What is your Profession?

4) How many People depend on you?

5) What is your Annual Income?

6) Which vehicle you own?

7) What are the recent developments in your family?

New House

New Baby

New Car


8) Where do you invest money?

Savings Bank Account

Insurance Policies

Shares

Mutual Fund

Real Estate

DATA COLLECTION

PRIMARY DATA SOURCES Through interaction with insurance care consultant

Through questionnaires filled from the insurance care consultant.

SECONDARY DATA SOURCES:

Through internet, various official sites of the companies. Through pamphlets and brochures of the companies.

Journals & Magazine

4.3 Scope of Study

To know the response, I have used the questionnaire method. If one wishes to find

what prospects think or know, the logical procedure is to ask them. This has led

marketing researchers to use the questionnaire technique for collecting data more

than any other method.

In this method questionnaire were distributed to the respondents and they were

asked to answer the questions in the questionnaire. The questionnaire were

structured non disguised questionnaire because the question which the


questionnaire contained, were arranged in a specific order besides every question

asked were logical for the study, no question can be termed as irrelevant.

The questionnaire was non-disguised because the questionnaire was constructed

so that the objective is clear to the respondent. The respondents were aware of the

objective. They knew why they were asked to fill the questionnaire.

4.4 LIMITATIONS OF THE STUDY

Following limitations were faced during the study:

1. While designing the questionnaire it was kept in mind to gather more and more

information from each target person. For the neither present nor descriptive

questions could have served the purpose. Therefore the questionnaire contained in

the open-ended questions.

2. The study was conducted in Bajaj Allianz in ambala city, which has 60 to 100

insurance prospects only. The sample size was of 50 insurance care consultants

only so that accuracy of data so collected could be absurd covered by circulation

of questionnaire.

3. The accuracy of indications given by the respondents may not be consider

adequate as whether the language used in the questionnaire is understood by the

respondent cannot be taken for granted.

4. The study is based on the information gathered from the insurance care

consultants. Therefore in such case it is possible that the information supplied

might be biased because the insurance care consultant might have shown

partiality towards their insurance policies.

5. Since the survey was limited to 50 insurance prospects it is rather difficult to give

a precise conclusion but I have tried to the best of my capability to give the

conclusion on a comprehensive manner.


RESULT

Most of investors not fully aware about Life insurance policies and their advantage.

It was found most of the investor prefer, less risk taking saving scheme or fixed deposits.

Some of the people, who were related to rural area, did not know about facility for investment of money in Life Insurance Policy schemes.

The proportion of investor and non-investor 20% & 80%.

The investors were interested more in Policies of LIC because it is a Government body.


1 2

3 4

Some of the investors were pleased to know about New FamilyGain and said that it is a very good plan and is very much affordable by middle class people.

5. Facts and Analysis

Q1. What is your Annual income? (In lakhs)

(1) <2

(2) 2-4

(3) 4-5

(4) > 5

INTERPRETATION

(1) <2 - 20%

(2) 2-4 - 30%

(3) 4-5 - 20%

(4) > 5 - 30%


1 2

3 4

Q2. Where do you want to invest your surplus money?

(1) Fixed deposit

(2) Mutual funds

(3) Stocks

(4 Real Estate

INTERPRETATION

(1) Fixed deposit 40%

(2) Mutual funds 30%

(3) Stocks 10%

(4 Real Estate 20%


1 2

3 4

Q3. What benefits do you want from your Investments?

(1) Savings

(2) High returns

(3) Tax rebates

(4) Risk cover

INTERPRETATION

(1) Savings 40%

(2) High returns 35%

(3) Tax rebates 15%


1234

(4) Risk cover 10%

Q4. What do you expect from the life insurance companies?

(1) High return

(2) Liquidity

(3) Security

(4) Low premium

INTERPRETATION

(1) High return 20%

(2) Liquidity 15%

(3) Security 50%


12

(4) Low premium 15%

Q5. Do you know about the product of these Companies?

(1) LIC

(2) ICICI

(3) TATA AIG

(4) BIRLA

(5) OMKM

(6) HDFC

(7) Bajaj Allianz

INTERPRETATION


1234

(1)YES 75 (2) NO 25

Q6. At what age have have you taken Life Insurance Policy?

(1) 20 – 30

(2) 31 – 40

(3) 41 – 50

(4) Above 50

INTERPRETATION

(1) 20 – 30 10%

(2) 31 – 40 15%

(3) 41 – 50 35%

(4) Above 50 40%


1234

Q7. What is your occupation group?

(1) Government Employee

(2) Private Employee

(3) Business Professional

(4) Others

INTERPRETATION

(1) Government Employee 40%

(2) Private Employee 35%

(3) Business Professional 15%

(4) Others 10%


1234

Q8. Which company’s ULIP have you taken?

(1) ICICI Prudential

(2) HDFC Standard Life

(3) KLI

(4) BAJAJ

INTERPRETATION

(1) ICICI Prudential 30%

(2) HDFC Standard Life 30%

(3) KLI 20%

(4) BAJAJ 20%


CONCLUSIONS

Most of investors not fully aware about Life insurance policies and their

advantage.

It was found most of the investor prefer, less risk taking saving scheme or fixed

deposits.

Some of the people, who were related to rural area, did not know about facility for

investment of money in Life Insurance Policy schemes.

The proportion of investor and non-investor 20% & 80%.

The investors were interested more in Policies of LIC because it is a Government

body.

Some of the investors were pleased to know about New Family Gain and said that

it is a very good plan and is very much affordable by middle class people.


SUGGESTIONS & RECOMMENDATIONS

Through out the project work I have tried to my extent to learn more and more so that I enable myself to deliver the best services from my part. I always focused my services to full satisfaction whether it would for employer or for customer. So during this practical learning process whatever I have realized to improve the division of the company is as follows:

Tapping the up coming market - Semi Urban Market as there is a lot of opportunity. Most of the Life Insurance companies are operating in the metros and big cities as per their present branch office locations. If they have to increase their market size they have to open more distribution centers at the various urban and semi-urban markets.

The company always should have proper communication with its front office as well as back office workers to increase the morale and productivity.

The company should always have proper planning for gifts/incentives for employees on various occasions or on competitions.

Premium and economical class of services should be launched by the company to serve the varied nature of customers.

Service cum awareness camps should be run by the company in remote areas.

. Distribution channel needs more strength.

. Improvement in services through feedbacks from customers is recommended.


BIBLIOGRAPHY

www.bajajallianzlife.co.in

www.en.wikipedia.org

www.google.com

Insurance Principles and Practice- By Noorul Hasan

Ambar Prakashan Kendra, Lucknow

2009 Edition

Page Numbers- 15, 16, 77


http://www.google.com/

http://www.en.wikipedia.org/

http://www.bajajallianzlife.co.in/

ANNEXURE

QUESTIONNAIRE:-Q1. What is your Annual income? (In lakhs)

(1) <2

(2) 2-4

(3) 4-5

(4) > 5

Q2. Where do you want to invest your surplus money?

(1) Fixed deposit

(2) Mutual funds

(3) Stocks

(4 Real Estate

Q3. What benefits do you want from your Investments?

(1) Savings

(2) High returns

(3) Tax rebates

(4) Risk cover

Q4. What do you expect from the life insurance companies?

(1) High return

(2) Liquidity


(3) Security

(4) Low premium

Q5. Do you know about the product of these Companies?

(1) LIC

(2) ICICI

(3) TATA AIG

(4) BIRLA

(5) OMKM

(6) HDFC

(7) Bajaj Allianz

Q6. At what age have have you taken Life Insurance Policy?

(1) 20 – 30

(2) 31 – 40

(3) 41 – 50

(4) Above 50

Q7. What is your occupation group?

(1) Government Employee

(2) Private Employee

(3) Business ProfessionaL

(4) Others

Q8. Are you aware about ULIP?RIMT-INSTITUTE OF MANAGEMENT AND COMPUTER TECHNOLOGY

51

(1) Yes

(2) No

Q9. Which company’s ULIP have you taken?

(1) ICICI PrudentiaL

(2) HDFC Standard Life

(3) KLI

(4) BAJAJ

Q10. Are you interested in investing in BAJAJ?

(1) Interested

(2) Semi-interested

(3) Not-interested

Q11. Through which medium you opted for BAJAJ?

(1) Insurance Consultants

(2) Relatives

(3) Advertisements

(4) Other Sources


APPENDICESAppendix-I PERSONAL DETAILName: _____________________________________ Age: ______________________________________ Address: __________________________________ __________________________________

Mobile/Phone No: __________________________

Gender: Male Female

Marital Status: Married Unmarried

Children: ____________ Employment Status: Employed Self-employed Unemployed

DETAILSaving: Yes No

Monthly Range: ____________________

Direct your savings:1) Bank Deposits 2) Stock Market 3) Other InvestmentIf Bank Deposit Why:________________________________________________________________

__________________________________________________________ ______

Why not:_______________________________________________________________

________________________________________________________ ________

If Stock / Mutual Why:________________________________________________________________ _______________________________________________________ _________


Other Investment:________________________________________________________________ ___________________________________________________________ _____

How much money do you need to secure your future?

Rs._________________

Any Dream: ________________________________________________________________

Do you like the bajaj Life advisor to serve you a beneficial plan?Yes No


bajaj Alliance insurance.docx

Documents