BAJAJ.doc

PREFACE

PROJECT REPORT ON

PART-A

1. INDUSTRY PROFILEIntroduction to Insurance sector:

Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practicethats perhaps, was how insurance made its beginning. Life insurance had its origins in ancient Rome, where citizens formed burial clubs that would meet the funeral expenses of its members as well as help survivors by making some payments.

As European civilization progressed, its social institutions and welfare practices also got more and more refined. With the discovery of new lands, sea routes and the consequent growth in trade, medieval guilds took it upon themselves to protect their member traders from loss on account of fire, shipwrecks and the like.

Since most of the trade took place by sea, there was also the fear of pirates. So these guilds even offered ransom for members held captive by pirates. Burial expenses and support in times of sickness and poverty were other services offered. Essentially, all these revolved around the concept of insurance or risk coverage. That's how old these concepts are, really. In 1347, in Genoa, European maritime nations entered into the earliest known insurance contract and decided to accept marine insurance as a practice.

The first step...Insurance as we know it today owes its existence to 17th century England. In fact, it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners and underwriters met to discuss and transact business. By the end of the 18th century, Lloyd's had brewed enough business to become one of the first modern insurance companies.

Enter companies...The first stock companies to get into the business of insurance were chartered in England in 1720. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC.

In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America for the benefit of ministers and their dependents.

However, it was after 1840 that life insurance really took off in a big way. The trigger: reducing opposition from religious groups

The growing years...The 19th century saw huge developments in the field of insurance, with newer products being devised to meet the growing needs of urbanization and industrialization.

In 1835, the infamous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations.

There were more offshoots of the process of industrialization. In 1897, the British government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents. With the advent of the automobile, public liability insurance, which first made its appearance in the 1880s, gained importance and acceptance?

In the 19th century, many societies were founded to insure the life and health of their members, while fraternal orders provided low-cost, members-only insurance. Even today, such fraternal orders continue to provide insurance coverage to members as do most labor organizations. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies.

In India...Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans.

Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in 1870. Other companies like Oriental, Bharat and Empire of India were also set up in the 1870-90s. It was during the swadeshi movement in the early 20th century that insurance witnessed a big boom in India with several more companies being set up. As these companies grew, the government began to exercise control on them. The Insurance Act was passed in 1912, followed by a detailed and amended Insurance Act of 1938 that looked into investments, expenditure and management of these companies' funds.

By the mid-1950s, there were around 170 insurance companies and 80 provident fund societies in the country's life insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companies. As a result, the government decided to nationalize the life insurance business in India. The life insurance corporation of India was set up in 1956 to take over around 250 life companies.

For years thereafter, insurance remained a monopoly of the public sector. It was only after seven years of deliberation and debate - after the RN Malhotra Committee report of 1994 became the first serious document calling for the re-opening up of the insurance sector to private players -- that the sector was finally opened up to private players in 2001.The INSURANCE REGULATORY & DEVELOPMENT AUTHORITY, an autonomous insurance regulator set up in 2000, has extensive powers to oversee the insurance business and regulate in a manner that will safeguard the interests of the insured.INSURANCE IN INDIAThe insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

A brief history of the Insurance sector

The business of life insurance in India in its existing form started in India in the year

1818: With the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. The National Insurance Company Ltd.

The New India Assurance Company Ltd.

The Insurance Company Ltd. And The United India Insurance Company Ltd. GIC incorporated as a company.

Insurance sector reforms

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.

N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector.

The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms

In 1994, the committee submitted the report and some of the key recommendations included;1.) Structure

Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate.2.) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state.3.) Regulatory Body

The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.4.) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time).5.) Customer Service

LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry.The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum Capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

The Insurance Regulatory and Development Authority

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. Total number of life insurers under the Authority has gone up to 21, while total number of general insurers registered with IRDA has reached 20.

Insurance Sector

4.47 Reforms in the insurance sector commenced with the enactment of the Insurance Regulatory and Development Authority Act 1999, which facilitated the entry of private insurance companies into the Indian insurance market. The Insurance Regulatory and Development Authority (IRDA) was set up on April 19, 2000 to protect the interest of the holders of insurance policies, and to regulate, promote and ensure orderly growth of the insurance industry. 2. COMPANY PROFILEa) BACKGROUND AND INCEPTION OF THE COMPANYBajaj 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 Limited, one of the biggest 2 and 3 wheeler manufacturers in the world. Bajaj Allianz Life Corporation limited 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 Allianz Shareholder Capital base stands at Rs.500 crore with Bajaj Auto Limited and Allianz AG of Germany holding 74% and 26% stake respectively. It is the 2nd largest private player in Insurance industry in India with a market share of 13.2% amongst the private companies as on 25th Feb, 2009.

Bajaj Auto LimitedBajaj 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 and customer focus. With over 15,000 employees, the company is a Rs. 4000 crore auto giant. 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.As a promoter of Bajaj Allianz Life Corporation 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. A 10 million strong base of customers using Bajaj products. Advanced Information Technology in extensive use. Experience in the financial services industry through Bajaj Auto Finance Ltd.Allianz AG

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 AG is the business of General (Property and Casualty) Insurance; Life and Health Insurance and Asset Management and has been in operation for over 110 years. Allianz is one of the largest global composite insurers with operation in over 70 countries. Further, the group provides Risk Management and Loss Prevention Services. Allianz has insured most of the worlds largest infrastructure projects (including Hong Kong Airport and channel tunnel between UK and France), further Allianz insures the majority of Fortune 500 companies, besides being a large industry insurer, and Allianz has a substantial portfolio in the commercial and personal lines sector, using a wide variety of innovative distribution channels.

Allianz Ag A Global Financial Powerhouse Worldwide second by Gross Written Premiums (GWR) Rs. 4, 46,654 cr.

3rd largest Asset under Management (AUM) & and largest amongst insurance cos. AUM of Rs. 51, 96,959 cr.

12th largest corporation in the world.

49.8% of global business from life insurance.

Established in 1890, 110 years of insurance expertise.b) NATURE OF THE BUSINESS CARRIEDBajaj Allianz Life Insurance as the name suggests is into the Insurance sector. Bajaj Allianz Life Insurance Company Limited engages in life insurance business in India. The company offers unit linked regular and single premium plans; pension plans; traditional products, including endowment and money back products; and term plans. It also provides non employer employee and employer employee group insurance products; women insurance; micro insurance; and wealth insurance products. c) VISION, MISSION AND VALUESVISION:

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.

MISSION:We aim to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like-

1) Customer service of the highest order.2) Value for money for customers.3) Professionalism in carrying out business.

4) Innovative products to cater to different needs of different customers.

5) Use of technology to improve service standards.6) Increasing market share.

VALUESSecurity: Providing long term financial security to our policy holders will be our constant endeavor. We will be do this by offering life insurance and pension products.

Trust: We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this trust.

Innovation: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs.

d) PRODUCTS/SERVICE PROFILE

Product of the company

Traditional Plans:

1. Life Time Care: Is a whole life plan, where it helps you financially at the time when your regular income ends. That is it provides survival benefits at the age of 80. The plan also has additional benefits like Waiver of Premium, Accidental Death Cover & Disability Cover and Critical Illness Cover & Hospital Cash Cover.

2. Super Saver: Is a regular premium endowment plan, which enables the policyholder to save an amount regularly for the future. The plan also has an extra benefit of Guaranteed Additions to the sum assured, at the end of each policy year.

3. Save Care Economy SP: A 10year single premium endowment plan which provides savings with high risk cover. This plan also participates in the companys profits. It is a high risk but has easy liquidity and high returns.

Money Back Plan: A money back plan which guarantees 5 easy payouts giving up to 125% plus (+) bonuses. Also 4 times a life cover. The additional benefits offered are Family Income Benefit

Accidental Death Benefit and Disability Benefit.

Critical Illness Benefit and Hospital Cash Benefit.

Term Plans

1. Term Care: Is a term Assurance plan which provides life cover and return of premiums paid at the time of maturity. It has the option of single premium payment. It is the only pure Term Plan which provides Hospital Cash Benefit.

2. New Risk Care: Is a plan with regular/single premium payment options. This plan comes with a lowest cost for a Life Insurance cover. With regular premium plan you get additional rider benefits. Also accidental death benefit and accidental permanent total/partial disability benefit. Besides that you can also avail of critical illness benefit and hospital cash benefit.

3. Protector: Is a mortgage reducing term assurance plan. At a low premium amount you can secure your family from the burden of paying the Home Loan in your absence. You get an option of both Regular Premium payment and single premium payment. Also there is an option of Joint life availability, where the co-applicant can be also covered in the plan.

Unit Linked Plans (Regular premium & Single Premium)

A) Regular Premium1. New Unit Gain: Is an investment plan where you get value for your funds invested.

2. New Gain Super: Is a flexible unit linked plan with partial & full withdrawals after 3 years. It offers additional benefits like UL Accidental Death Benefit and UL Disability Benefit, UL Critical Illness Benefit and UL Hospital Cash Benefit and 4 funds to choose from & flexibility to pay top-up any time.

3. New Unit Gain Plus: This plan gives you 5 investment funds to choose from. With the option of 3 free switches every year. Also partial or full withdrawal after 3 years. It plan offers flexibility to meet ones changing lifestyle and insurance needs. It offers guaranteed life cover.

4. Unit Gain plus Gold: A unique investment plan with the combination of protection and prospects of earning attractive returns. It has a high allocation up to 85%. You have a choice of 7 funds to invest in & also a guaranteed life cover. Additional benefit riders are also available with this plan.

5. New Family Gain-R: It is Life Insurance Plan that can take care of all the changing requirements of the family. It has maximum flexibility, so that you are provided for all the changing needs you may have.

6. Young Care: This investment plan is a Gift of a lifetime to a loved one. It offers a guaranteed Sum Assured and continued pay premium on your behalf, in case of your unfortunate death.

7. Young Care Plus: It offers the same benefit as the above plan but in addition offers a critical illness benefit.

B) Single Premium

1. New Unit Gain Premier SP: It is a unique insurance cum investment plan as it starts investing 105% of the single premium paid from day one, thereby ensuring that you get more. It has a guaranteed life cover and flexible withdrawal option u/s 10 (10) D.

2. New Unit Gain plus SP: Is a single premium plan that gives you 98% allocation with guaranteed life cover. Minimum premium is Rs. 10,000 only. A choice of 5 investment funds to choose from. And 3 free switches every year. Partial & full withdrawals after 3 years.

Pension (Annuity & Retirement)A) Annuity

Pension Guaranteed: Is a plan that assures a regular income after your retirement for life.

B) Retirement1. New Unit Gain Easy Pension plus RP: A unit linked pension plan without life cover. It has regular premium payment mode. An option to take a tax-free lump sum up to 33% of Sum Assured. You can invest in any 6 funds. With 3 free switches every year. Also open market option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other life insurer.

2. New Unit Gain Easy Pension plus SP: A unit linked pension plan without life cover. It has single premium payment mode. An option to take a tax-free lump sum up to 33% of Sum Assured. You can invest in any 6 funds. With 3 free switches every year. Also open market option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other life insurer.

3. Swarna Vishranti: Is a plan with an option to take a tax-free lump sum up to 33% of Sum Assured + Accrued Bonuses. Open Market option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other Life Insurance Company. And also additional benefits can be availed of.

4. Future Secure: It is a plan which secures your future.

5. Future Income Generator: It helps you maintain the same lifestyle you lead now ,after your retirement. The saving today becomes your wealth and support to help secure your future. The plan is about wealth creation, smart savings and peace of mind along with a corpus, which secures your life, post retirement.

Women Insurance Plans1. Housewives: Housewives need to safeguard their financial independence. There are additional benefits like the Mahila Gain feature which offers benefits like.

Critical Illness Benefits.

Reconstructive Surgery Benefits for Breast(s) due to Breast Cancer.

Congenital Disability Benefits.

Complications of Pregnancy Benefits.

2. Working Women: This plan helps the working women to protect them self, their family and plan for their future. The insurance, investment, pension and health products have been specially customized to suite to every specific need of a woman.Children Plans

Child Gain: Is a plan where it creates funds for critical stages in your Childs life like education, marriage or even to start a business. It has the benefit of low premium rates.

Health Plans

1. Health care: Is a plan with 6- in-1 Health Insurance that offers:

Life Cover

Hospital Cash benefit

Surgical benefit

Post Hospitalization Benefit

Critical Illness Cover

Accidental Permanent Total / Partial Disability (APT/PD)

2. Family Care First: It is a plan for the whole family. This unique hospitalization plan gives you health cover for your entire family. You can secure your family with one plan.

3. Care First: A Medical Insurance plan till the age of 65years. And you can renew the policy every 3 years. The premium rate is level and guaranteed for the length of each policy term of 3 years with extra benefits like day care treatment and pre and post hospitalization treatmentMicro Insurance Plans

1. Alp Nivesh Yojana: An endowment plan with Life cover and Maturity benefit equal to sum assured + vested bonus.

2. Saral Suraksha Yojana: A Term Insurance policy with return of premium on maturity.

3. Jana Vikas Yojana: A single premium plan with maturity benefit of 125% of the single premium payable on survival till the end of the policy term.

e) AREA OF OPERATIONBajaj Allianz today has a country wide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune. During the year, company continued to increase its focus on service quality. The company aims to provide consistent and high quality service across the country through, all channels of delivery - branches, call centers, internet and the customer portal. Towards this end, periodic service audits conducted across all regional offices and at the call centers provide useful insights into customer requirements and expectations helping the company improve its processes. The company has implemented a Quality Initiative across its offices which regularly measures the effectiveness of its processes, reduces leakage and contributes to increasing revenues, managing costs and improving service quality. The company has also launched a completely revamped website with a big focus on customer education and knowledge. The company has continued to strengthen its presence in the virtual world, both for creating awareness and facilitating self-service. Your company continues to explore strategic outsourcing partnerships with a focus on handling volumes and reaping economies of scale. The combination of outsourcing partnerships and technology implemented by the company is assisting in improvement of service turnaround times.f) OWNERSHIP PATTERNBAJAJ Allianz Life Insurance Company is a joint venture between two leading conglomerates, Bajaj Auto Limited, one of largest manufactures of motorcycles and scooters in the world, and Allianz AG of Germany one of the largest insurance companies. 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 Allianz Shareholder Capital Base stands at Rs. 500 crore with Bajaj Auto Limited and Allianz AG of Germany holding 74% and 26% stake respectively. It is the largest private player in the Insurance Industry in India with a market share of around 34% amongst the private companies and second to LIC. The total market share of Bajaj Allianz as of 31st March 2006 is at 12%.

g) COMPETITORS INFORMATION

ICICI PRUDENTIAL: ICICI prudential insurance is a joint venture of ICICI bank and prudential plc. a leading financial service group in the UK. Total capital stands for Rs.37.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc. Holding 26%. ICICI begin their operations in December 2000 after receiving approval from IRDA. Now ICICI prudential is having over 1000 offices, over 270000 advisors and 21bancassurance partners. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA from Fitch ratings. ICICI prudential is working on the base of five core values-

Integrity

Customer first

Boundary less

Ownership

PassionKey features:

Understanding the needs of customers and offering them superior products and service.

Leveraging technology to service customers quickly, efficiently and conveniently.

Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to policyholders.

Providing an enabling environment to foster growth and learning for employees.

HDFC standard life insurance: HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies. It is a joint venture of Housing Development Finance Corporation Limited, India's leading housing finance institution and a Group Company of the Standard Life in UK. HDFC as on March 31, 2007 holds 81.9 per cent of equity venture. Gross premium income of the HDFC for the year ending March 31, 2007 was Rs. 2, 856 crores and new business premium income was Rs. 1,624 crores. The company has covered over 8, 77,000 lives year ending March 31, 2007. HDFC standard is having 1000 advisors in 11 towns.

Key features:

Creating corporate agents through HDFC bank in India.

Creating agents to provide total financial consultancy.

Introducing low cost group schemes for companies and NGOs.

Reliance life insurance: Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934.

Aviva life insurance: Aviva is UKs largest and the worldsfifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. Aviva has a joint venture of Dabur, one of India's oldest, and largest Group of companies. And country's leading producer of traditional healthcare products. In accordance with the government regulations Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. Aviva has193 Branchesin India (including rural branches) supporting its distribution network. Through its Banc assurance partner locations, Aviva products are available inmore than2,795locations across India.Aviva has a sales force of over 30000 financial planning advisors.

Key features:

Through the Financial Health Check (FHC) Avivas sales force has been able to establish its credibility in the market. The FHC is a free service administered by the FPAs for a need-based analysis of the customers long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the FHC assesses and recommends the right insurance product for them.

Introduced the concept of Banc assurance in India.

Products to provide customers flexibility, transparency and value for money.

Differentiation in fund management operations.

MetLife insurance: MetLife India Insurance Company Limited is an affiliate of MetLife, Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc. and The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It offers a range of innovative products to individuals and group customers at more than 600 locations through its bank partners and company-owned offices. MetLife has more than 32,000 Financial Advisors. It has approximately 70 million customers all over world. MetLife is working on the base of six core values-

Innovation

Long term relationship

Customer centered and result focused vision

Creating high performance organization

Working with integrity, fairness and financial prudence

Partnering with internal and external customers

Max New York life insurance: Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a Fortune 100 company and Max India Limited, one of India's leading multi-business corporations The Company's paid up capital is Rs. 907.4 crore. Max New York life is working on the base of six core values-

Excellence,

Honesty,

Knowledge,

Caring,

Integrity

The Company practices a lot of importance on its selection process of insurance advisors which comprises four stages - screening, psychometric test, career seminar and final interview. 337agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2007 and Max New York Life has moved up to 21st rank in MDRT global list.

Key features:

Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds.

Investing significantly in its training programme and each agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to sell in the marketplace.

Using a five-pronged strategy to pursue alternative channels of distribution which include the franchisee model, rural business, direct sales force involving group insurance and telemarketing opportunities, banc assurance and corporate alliances.

Bharti Axa life insurance: Bharti Axa life insurance is a joint venture between Bharti, one of Indias leading business groups with interests in telecom, agri business and retail, and Axa world leader in financial protection and wealth management. The joint venture company has a 74% stake from Bharti and 26% stake of Axa. The company started its operations in December 2006. Now company is having over 5200 employees across over 12 states in the country. Company is working on the base of five core values-

Professionalism

Innovation

Team Spirit

Pragmatism

Integrity

Key features:

Using multi-distribution, multi product platform techniques.

Adapting AXA's best practices as a sound platform for profitable growth.

Leveraging Bharti's local knowledge, infrastructure and customer base.

Delivering high levels of shareholder return.

Building long term value with business partners by enhancing the proposition to their customers.

Retaining the best talent in India.

Tata AIG life insurance: Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company of the Tata Group and American International Group, Inc. (AIG). The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG Life provides insurance solutions to individuals and corporate. Tata AIG Life Insurance Company started to operate its business in India on April 1, 2001. Tata AIG is having 3000 advisors all over India.

Key features:

Establishing direct mailers; call-centers in 60 centers.

Creating awareness workshops in housing societies.

15-day trial period with refund, premium payment through credit card.ING Vysya life insurance: ING Vysya Life Insurance Company Limiteda part of the ING group the worlds largest financial services provider entered in the private life insurance industry in India in September 2001.ING Vysya Life is currently present in 246 cities and has a network of over 300 branches, staffed by 7,000 employees and over 51,000 advisors, serving over 5.5 lakh customers. ING Vysya Life has a diversified distribution channels,. While Tied Agency remains the strongest channel, the Alternate Channels business within ING Vysya Life is one of the fastest growing distribution channels. ING Vysya Life has strengthened its position as the unparalleled leader in the life insurance industry in cooperative banks tie ups. The company currently has tie ups with 130 cooperative banks across the country. The Alternate Channels division has Banc assurance, ING Vysya Bank, Corporate Agents and SMINCE. ING Vysya is working on the base of five core values-

Professionalism

Entrepreneurial

Trustworthy

Approachable

Birla sun life insurance: Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group and the Sun Life Financial Services of Canada. It started operations in March 2001 after receiving its registration license from IRDA in January 2001. Company is having more than 45 branches across India.

Key features:

Focus on unit linked insurance products supported with protection products to maintain leadership in product innovation.

Use of multi distribution channels- Direct Sales Force, Alternate Channels and offering convenient channels of purchase to customers.

Web-enabled IT systems for superior customer services and issuing policies on the internet.

High degree of transparency in all business practices and procedures.

Working on operational Business Continuity Plan.AEGON Religare LifeAEGON, an international life insurance, pension and investment company, Religare, one of Indias leading integrated financial services groups and Bennett, Coleman & company, Indias largest media house, have come together to launch AEGON Religare Life Insurance Company Limited. This venture is dedicated to build a firm future, both for customers and employees and will continue to balance a local approach with the power of an expanding global operation.

We launched our pan-India multi-channel operations in July, 2008 with over 30 branches spread across India. Our business philosophy is to help people plan their life better. We provide high quality advice to our customers and offer superior customer service.Canara HSBC OBC Life

The shareholding pattern of the Joint Venture is as follows - Canara Bank holds 51% equity, HSBC Insurance (Asia Pacific) Holdings Ltd 26% and Oriental Bank of Commerce 23%. The Venture has an initial paid up capital of INR 325 crores which will further increase in line with our expansion plans.

The Company commenced business 16th of June, 2008 after receiving requisite approvals from the Insurance Regulatory Development Authority (IRDA). Canara HSBC Life has access to 4100 bank branches all over India.

h) INFRASTRUCTURAL FACILITIESBAJAJ ALLIANZ is providing good infrastructural facilities which are required for employees to perform their work in a better way. During the year, the Company has invested in additional infrastructure capacity and human capital, in terms of offices, technology, staff, financial consultants, in order to be well positioned to increase the growth momentum in the year ahead. The company stepped up the recruitment program in the latter part of the year in preparation for the next year.

BAJAJ ALLIANZ providing medical card (BALIC medical card) to the employee, in which employee can take medical facility up to 5 lakhs. Employee can use this facility for their family also. BAJAJ ALLIANZ providing online attendance system for their employee.

It also provide online official id to their employee.i) ACHIEVEMENT/AWARDS: Bajaj Allianz Life Insurance has been awarded the SKOCH Financial Inclusion Award 2011 for its execution of financial inclusion initiatives through life insurance across India. Financial inclusion is the delivery of financial services at affordable costs to low income segments of society.

The award recognizes Bajaj Allianz's micro-insurance product catering to rural markets, Sarve/Swayam Shakti Suraksha (SSS). A flexible and simple plan, SSS offers rural customers insurance protection against unforeseen events and an opportunity to save systematically Bajaj Allianz has received iAAA rating, from ICRA Limited, an associate of Moodys InvestorsServices, for Claims Paying Ability. This rating indicates highest claims paying ability and a fundamentally strong position.

Bajaj Allianz General Insurance has received the prestigious Business Leader in General Insurance, awarded by NDTV Profit Business Leadership Awards 2008. The company was one of the top three finalists for the year 2007 and 2008 in theGeneral Insurance Company of the Year award by Asia Insurance Review.

j) WORK FLOW MODEL (END TO END)

The work flow model of the organization is represented by a flow chart.

Dealers/ salesmen / surveyor obtain contact information about prospective customer

Rejection

Rejection Rejection

Rejection Rejection

k) Future GROWTH AND PROSPECTUSBajaj Allianz, in the present scenario is growing at an aggressive pace. The company does a lot of survey & analysis in the market to discover customers need and expectation and tries to improvise on its existing market linked plans along with insurance policies. Bajaj Allianz Life Insurance, one of the leading private insurance companies in India, is eyeing to double its market share to 10 per cent in the health insurance segment over the next three years. Presently, the company's market share in health insurance, among all the life insurers, is around 5%, which it plans to increase it to 10% in a three-year period. The company launched the latest insurance policy, in order to strengthen the Indian insurance industry's focus on women. Bajaj Allianz Life Insurance has already launched one product this quarter (Q1 FY 11) in the traditional category -Invest plus Premier- and has lined-up a few more for in Q2. According to Bajaj Allianz Life Insurance CEO, Kamesh Goyal, In Q2, we plan to launch a few products--our plans will be finalized by June 30"

Many of the products of Bajaj Allianz in the pipeline, company have filed for a few with IRDA and were awaiting its approval.

Currently the company has maintained the no. 2nd position in the general insurance industry and the next plan of company is to maintain the same position in the life insurance sector also. Currently company has the market share of 4% in life insurance and the main focus of the company is to strengthen their position in the next upcoming year by launching some more value added product.

3) MCKINSEY 7-S MODEL The 7-s model with reference to BAJAJ ALLIANZ life insurance:The 7s model are a frame work for analyzing organizations and their effectiveness. It looks at seven key elements that make the organization successful, or not; a structure; a system, skills, staff, shared values.Consultants at McKinseys and company developed by 7s models in the late 1970s to help managers address the difficulties of the organization change. The model shows that organizational immune system and the many inter connected variables involved make change complex, and that an effective change effort must address many of these issues simultaneously.

The 7s model is a tool for managerial analysis and action that provides structure with which to consider a company as whole, so that the organizational problems may be diagnosed and a strategy may be developed and implemented.

The seven diagrams illustrates the multiplicity interconnectedness of elements that organizations ability to change. The theory helped to managers thinking about how company could be improved. It says that it is not just a matter of devising a new strategy and following it through. Nor is it a matter of setting a new system and letting them generate improvements? To be effective, your organization must have degree of fit or internal alignment among all the 7s. Each S must be consistent with the reinforcement of the other S. All S are interrelated so a change in one has a ripple effect on all others. It is impossible to make progress on one without making progress on all. Thus, to improve the organization you have to master system thinking and pay attention to all of the seven elements at the same time. There is no starting point or implied hierarchy different factors may drive the business in any one organization. STRUCTUREThe structure defines former relationship and the use of people in the organization. In todays complex and ever changing environment, successful organization may take temporary structural change to cope with specific strategic tasks without abandoning basic structural division throughout the organization.

Organizational structure with results from the organizing process is the basic frame work within which the decision making behavior of an executive takes place. It is an establishment pattern of relationship among the components of the organization.

In the BAJAJ ALLIANZ each and every department is empowered with the officer, clerk and sub staff. The authority is delegated to officer/manager to extract work from the staff. The each department consists of members based on its requirements. Thus it is having an effective work on the various activities efficiently and effectively.

The board of directors, chair, and managing director (CMD)

Top management is responsible for all the organizational activities and also they are responsible for decision making and performance taken by each department.

Middle level management is concerned about their respective departmental activities. The departmental managers communicate with their respective department activity to the top level management regularly or weekly. Marketing department, HR department, finance department constitute this level of management. Each of these departments is headed by respective director and they are responsible for their departmental activities.

The lower level management consists of assistant manager of each department. They will communicate and report their performance and activity to the middle level manager.

ORGANIZATION STRUCTURE:CEO/M.D

TRAINING HUMAN RESOURCE INVESTMENT MARKETINGFINANCE & CLIENT SERVICING IT

REGIONAL MANAGER (EAST)REGIONAL MANAGER (WEST)REGIONAL MANAGER (NORTH)REGIONAL MANAGER (SOUTH)AVP CORPORATE AGENTS

AREA SALES MANAGER

DISTRICT MANAGER

TERITORY MANAGER

ADVISOR ADVISOR ADVISOR

ORGANISATIONAL UNIT OF BAJAJ ALLIANZ LIFE INSURANCE AT BANGALORE CITYBRANCH

BRANCH CO-ORDINATORCOMMERCIAL EXECUTIVEASSISTANT SALES MANAGERTERRITORY MANAGER

SECURITY NON- STAFF

HR DEPARTMENT CHART HR Manager

Admin. Staff

HR Executive

Trainers

Department Profile

3.3.1 HUMAN RESOURCE DEPARTMENTHuman Resource Department

The success of an organization depends upon the quality of its work force. HR department is responsible for the recruitment and selection of employees based on ability, skills and qualification. The HR department is also responsible of certain activities concerned with the employees.

Objectives of Human Resource Department:

To maintain a healthy relationship and act as a mediator between the employer and employees. To recruit and select prospective candidate, arrange for an interview and fill vacancies in the concerned department. To take care of the activities done by the other departments. Personnel department is responsible for all the good and bad works done by the workers. HR department has to maintain the good relationship with all the other departments.

Recruitment: It handles the recruitment and the appointment of the required staff for various department of an organization.Appointment:

The person so appointed or selected will be placed in the vacant post defining the respective jobs to be done.

Induction:

Later the induction programme of the employees will be arranged for to introduce all the department of company by the labor officer as well as the concerned department head. Therefore, the employees can come in terms with the objectives of the company and his participation in fulfillment of the company objectives considering himself as an essential ingredient of the company.

Training: This is also one of the important functions of the department, keeping in view to update his/her knowledge and to increase his/her efficiency, so after sometime such programme are arranged by this department and employees of the company are kept in touch with the least ways of the morale booster and fondness towards the company is injected in the blood of employees.

On the Job Training:

Employees are couched and instructed by training instructions, they learn the job by personal observation and practice. It is learning by doing. HR Policies & Procedures

The policies and procedures laid down here promote the philosophy of the company with regard to standards of excellence, Terms of employment. Employee development and employee services. The objective of this section is to inform you of the polices related to Travel, compensation, Medi claim, and Transfers etc. We recommend that you make yourself aware of the entitlements Compensation Components

The compensation that is given in your appointment letter comprises of base Salary, FCP (Flexible Compensation Plan), and Employers contribution to provident Fund Fund and Employers contribution to Gratuity. Base salary is as per company policy is not flexible amount since a lot of statutory and non-statutory benefits are linked to the base salary. Statutory Benefits

The Provident Fund and Gratuity are governed by Acts of Law and are mandatory.

Provident Fund

The Provident Fund is a one of the mandatory schemes established by the government of India to provide social security to the service class. It is a scheme, which is bearing on the employer and the staff member and provides security to the staff member and / or his dependants on retirement, disability or death. Gratuity

The Gratuity Fund is regulated by the gratuity fund Act, 1972. At present, the following benefit is available. All Permanent staff members of the company,who have completed five years continuous service, are eligible for payment of gratuity at the time of retirement. FINANCE DEPARTMENT CHART Financial head

Fund Manager

Portfolio Manager

Staff

Financing and Accounting Department

Accounting Department: In this section accounts are maintained. Accounts are maintained in traditional methods only. This is ledger. The main functions are recording all the accounts including employees and workers salary and their PF etc.

It records all the payments of the company. It records all the transactions of the company.Accounting process: Recording the transactions: Classifying the transactions Summarizing the transactions Analyzing and interpreting the results.

3.3.2 Finance Department Planning & MIS monitoring of organization performance - sales, quality, Trends- on a continuous basis. With insights into MIS, socio economic factors & competitor behavioral patterns, we contribute to sales targets, strategic initiatives projected branches, and projected work force the road ahead. Internal Audit Risk Management, Business Continuity Plan, Best Practices, policy manuals are not mere words on paper adhere to them. We ensure Practice what you preach.

Corporate planning and MIS provide feedback on business strategies. The Accounts function includes preparation and maintenance of financial records, Funds management, and expense processing and treasury operations. Compliance ensures that every action is within the regulatory framework. This includes reviewing compliance requirements and supporting the ethical framework of RIL. Internal audit provides assurance to the management over the organizations control framework and includes process risk management, information security assessment and business continuity assessment. 3.3.3 MARKETING DEPARTMENT

Marketing at Bajaj Allianz Life Insurance covers an array of activities- advertising, branding, channel support, direct and alliance marketing and corporate communication. The people in each of these sub-functions perform a unique job.

The advertising and branding section has schedules of advertising campaigns and a detailed on what BALIC corporate identity stands for, why its important to be consistent and guidelines that must be adhered to. This section also details the branding across training, advisor and advertising collaterals with references.

Market development has lucid presentations about our products and how they compare to those of competition. You will also find an update on the recent happenings in the life and pensions sector. Channel marketing aims to streamline the design and development of collaterals across distribution channels. You will find examples of posters, flyers, banners, danglers sales toolset developed for tied agent, Bank assurance and corporate agents, as well as for product lunches and campaigns.

Corporate communications handles media relations and is responsible for some of the news regarding BALIC that you see in the press. You can check out the most recent clips in the BALIC in the new section.

Customer Service & OperationThe operation department the work process between the customer and the company to ensure consistent and quality service to the customer. To streamline the Operations, the operation department interfaces between the claims and the agents, the branches and underwriters, and manages work processes.3.3.4 Information Technology Department The IT function at BALIC is committed to enable business through the use of technology. It is segmented into 4 groups to enable highest levels of delivery to the customers: Life Asia Solutions Group - Web that provides real time information to customers and is responsible for customer relationship management, IT Architecture & corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprises as a whole. This team works as an in house R&D Solutions Group, exploring new technological initiatives and also caters to information needs of corporate functions in the organization.

2. SKILLSIt is a more reputed insurance company, as it is providing financial solution of where to invest, how to invest and number of products with having more benefits to investors. It has reputed customers who are loyal to the organization. The service given to the customers are accomplished as per their requirements. Financial services generally do mass supporting services are rendered to all types (classes) of customers. More over the people feel their task is in safe hands of the industry. The organization is having various capabilities over the competitors. These skills are unique from the competitors of BAJAJ ALLIANZ.

The skills are broadly categorized as follows:-

Market knowledge, analytical skills, Services, Research, Personal/administration, Soft skills, Supporting, Medical, Finance, Information relations, others. Most of the employees at BAJAJ ALLIANZ are recruited from management and technical streams. 3.STYLEBAJAJ ALLIANZ follows participative management, where in each major decision regarding the company is taken in tip down fashion and other decision like targets and growth aspects BAJAJ ALLIANZ follows bottom up style.

We think it is important to distinguish between the basic personality of a top management team and the way the team comes across to the organization. Organization may listen to what managers say but they believe what managers do. Not words, but pattern of action is decisive. The power of style then is essentially manageable.

One aspect of style is symbolic behavior. Typically have more people on board who understand exploration are have headed exploration department. Typically they fund exploration more consistently.

4.STRATEGY

By strategy we mean those actions that a company plans in response to or anticipation of changes in its customers, its competitors. Strategy is the way A Company aims to improve its position vis--vis competition perhaps through low cost production or delivery, perhaps by providing better value to the customer, perhaps by achieving sales and service dominance. it is, or ought to be, an organization way of saying: here is how we will create unique value.

The BAJAJ ALLIANZ has set of objectives, strategies to achieve the objective, the course of action to be taken to achieve the objective and guidelines for the course of action.

BAJAJ ALLIANZ adopts low pricing strategy to generate huge returns and good market share in the industry, since it has well expanded its business all over INDIA.

BAJAJ ALLIANZ charges minimal to its clients for the services. It provides more benefits to customers compared to its competitor. Hence it is known for the good pricing strategy in the industry.

5.SYSTEM

The BAJAJ ALLIANZ has various techniques to control this procedure as system like to improve the back office targets by giving addition support.

Information system: the implementation of computers has made information flow fast and reliable. The information is versatile. Since BAJAJ ALLIANZ has good backup system.

Recruitment, training and development system

Recruitment process starts with the identification of the vacancies by the department head of the respective department. A form requesting for the human resource is sent from the department to HRD.6. STAFF Staff (in the sense of people, not line/staff) is often treated in one of two ways. At the hard end of the spectrum, we talk of appraisal systems, pay scales, formal training program and the like. At the soft end, we talk about morale, attitudes, motivation and behavior.The BAJAJ ALLIANZ is in the course of cutting down the cost of service. If it starts recruiting, the selection is done based on the education qualification first class degree. The various training program to the employees are taken like refresher course, job rotation and job training. The promotion in the organization is taken place based upon the service, seniority and educational qualification. The performance appraisal is also taken as a basis for promotion so officers staff makes it. Staffing is a process of acquiring human resources for the organization and assuring that they have the potential to achievement of the organizational goal. Staffing necessity for allotting the duties and responsibility among the employees.Duties and responsibilities of Manger:

Determine the objectives or goals of the organization.

Framing policies and making plans to achieve the objectives.

Setting up organizational frame work.

Assembling the resources of money, man, materials, machines and methods. Exercising effective control. Providing overall leadership. Duties and responsibilities of staff towards the organization. To maintain the discipline in the organization.

To obey the order of the supervisor.

To work effectively and efficiently in the organization. To maintain good relations with all the workers in the organization.7. SHARED VALUESUnlike the other six Ss, super ordinate goals dont seem to be present in all, or even most, organizations. They are, however, evident in most of the superior performers.

The value shared by the members of an enterprise is known as the shared values. The organization of BAJAJ ALLIANZ is having a strategy of sharing values. The significant meaning or guiding concepts that an organization induces in its members. The shared value of BAJAJ ALLIANZ is: Transparency and trust. Human touch. Empowered teams. Responsive to customer needs.4. SWOT ANALYSIS:

A SWOT analysis is a strategic planning tool used to evaluate the strengths, weakness, opportunities and threats involved in a project or in a business or in any other situation requiring a decision.it involves monitoring the marketing environment internal and external to the company. The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from the fortune 500 companies. Strengths: attribute of the organization that are helpful to achieving the objectives.

Weakness: attributes of the organization those are harmful to achieving the objectives.

Opportunities: external conditions those are helpful to achieving the objectives.

Threats: external conditions those are harmful in achieving the objectives.

The aim of any SWOT analysis is to isolate the key environmental factors that are important to the plans of the organization. SWOT groups key pieces of information into two main categories:

Internal factors: The strengths and weakness internal to the organization, i.e. its strategies and its relation to its competition.

External factors: the opportunities and threats presented by the external environment and completion.

STRENGHTS1. Strong Brand Image

2. Dedicated sales team

3. Value added services.

4. Bajaj Allianz Life Insurance is the first large pvt.sector life insurance co. with a pan India network and strong retail focus to declare substantial profits for the financial year.

5. Bajaj Allianz Life is most profitable pvt.life insurer for 06-07.

6. Largest distribution network to reach the customers across the country with 2, 13,000 agents, 900 offices in 840 towns, 200 corporate agents & Banc assurance partners.

7. The Company announced a healthy profit of Rs 427 crore in FY 10 as compared to Rs 41 crore in the previous year. The insurance company sold 22 lakh new policies in FY 10 in the life segment and is eyeing a 30 per cent growth in traditional policies from the 18-20 per cent of the previous fiscal.8. Life insurance industry is a rapid growing and a nobler service industry.

WEAKNESSES1. They have to compete with the Government Companies like LIC and UTI who has been very established in this field. So they will have to attain the same trust of the public as it is in case of LIC and UTI.

2. Weak Customer Relations Management

3. Low number of offices and network and number of life insurance agents.

4. Lack of knowledge and expertise.

OPPORTUNITIES

1. Life insurance has captured its mere15 20% growth therefore a wide open untapped market is open to the company to develop, grow and measure its success.

2. Still the numbers of companies are few and company has every capability to grow and forward its performance areas to the widest.

3. Distinguishable product (like Parivar Account).

THREATS

1. People are hesitant to invest and put their hard earned money to the private life insurance company with the fear of getting lost.

2. Belief towards LIC as it is a government corporation phobia is continue to surmount the people of India despite lots of flaws and development and liberalization of life insurance.

3. Alternative financial services such as mutual fund, banking services, share and securities also pose problems and threats to the working of the life insurance sector.

4. Illiteracy and unemployment also pose threat.

5. Rising real estate industry also pose threat as people are investing a bulk of their money over to that industry.6. Presence of very strong competitors.5. Analysis of financial statementFinancial statement analysis is a comprehensive analysis of all three financial statements: balance sheet, income statement, and cash flow statement. Financial statements provide useful information. However, one has to meticulously look for the right information from the right data. One can undertake the financial statement analysis from different stakeholders perspective: creditors, bankers, credit rating agencies, existing shareholders, potential shareholders, internal management, and employees too.

Financial statement helps in understanding the performance of the organization. The performance of an organization can be explained on the basis of the four important aspects of the business:a) Liquidity: Liquidity shows the ability of the business to service the short term obligation.

b) Solvency: Solvency shows the ability of the business to meet the long term obligation.

c) Efficiency: Efficiency shows the ability of the business to use the resources of the business.

d) Profitability: Profitability shows the ability to the business to generate and distribute profit.Financial Highlights

Particulars

2009-10

Rs. million2008-09Rs. million2007-08Rs. million

Gross Written Premium

272492866225780

Net Written Premium

197172006617526

Net Earned Premium

188421891314154

Net Incurred Claims

-13866-13599-9457

Net Commissions

-318-238188

Management Expenses

-5485-5988-5195

Underwriting Results

-502-727-210

Income from Investments

220720611896

Others

93164-7

Profit Before Tax

179814981679

Provision for Tax

-590-546-623

Profit After Tax

12089521056

Claim's Ratio

73.6%72.0%67%

Commission Ratio

2%1%-1%

Management Expenses Ratio

29%32%36%

Combined Ratio

104%105%102%

Return on Equity

16%15%23%

Shareholder's Equity

792867255748

Assets Under Management253152193818632

Number of Employees

350639733603

Balance Sheet as at 31st March, 2010 00

Particulars31st March, 201031st March, 2009

Sources of fund

Shareholders fund

Share Capital11022731102273

Reserve and surplus6,830,7245,622,446

Fair value change Account(5094)-

Borrowings--

Total79279036724719

Application of Funds

Investments 2531459521937504

Loans --

Fixed Assets

Gross block24961771556866

Less:- accumulated depreciation12275831038900

Net block1268594517966

Capital work in progress including capital advances264964767460

15335581285426

Deferred tax assets378480152080

Current assets

Cash and bank balance296488028490009

Advances and other assets71323125446286

Subtotal (A)100971928295295

Current liabilities1806465714495261

Provisions 11333126510450325

Subtotal (B)2939592224945586

Net current assets(C)= (A - B)(19298730)(16650291)

Miscellaneous Expenditure(to the extent not written off or adjusted)--

Debit Balances in profit and loss account--

Total 79279036724719

6. LEARNING EXPERIENCE

In the class just we can assume how the corporate world is but it is completely different when I started to go to the company. In the class just we will read, learn and same thing we will write in the exam and we will get pass but when we go for searching job really we will feel the heat of outside world, regarding pressure for target achievement, competition for jobs etc During my stay in the organization I was exposed to the actual working of the organization. I learnt how the different departments of an organization functions and coordination for overall smooth function.

That was a wonderful experience to me in that company. I learnt so many things there, what is the real corporate culture, How much we have to be smart, How much talented we should, How we should achieve our target, what is our responsibity. I could also analyze how McKinseys model contributes to effective working of the organization. During this short period, by interacting with my guide and other key persons, it enables me to know about the functions of various departments. Their workflow, discuss and responsibilities of respective heads.

I learn how the company motivates the employee to retain and make them work effectively with full satisfaction towards achieving their individual goals which indirectly can achieve the organizational goals.Some of the findings during my 10 weeks stay in the organization are as follows:

Company has excellent infrastructure.

Corporate culture amongst the employees is excellent irrespective of their cadre and their designation.

Excellent environment to work with committed employees.

Welfare facilities as well as infrastructural facilities given to the employees helps in boosting up their morale.

The company has a lot of prospects to come up as a profit making organization.

Finally, excellent experience, which let me to compare theoretical learning to my practical experience.PART BCHAPTER -1

A. GENERAL INFORMATION

1.1 STATEMENT OF THE PROBLEM

To study the various marketing techniques, which are adapted to attract the customers towards the Bajaj Allianz Life Insurance Corporation? In addition to know the various competitive advantages enjoyed by the company.to know the market is potential of Bajaj Allianz Life Insurance Corporation in Bangalore city as compared to other insurance players.

The comprehensive statement of the problem can be stated as A Study on Brand Awareness of Life Insurance and Changing Investment Pattern with Special Reference to Bajaj Allianz Life Insurance Corporation1.2 OBJECTIVES OF THE STUDYResearch objective is the basis theme on which the survey is conducted and on which the whole report depends.Primary objective To study about the Brand Awareness of Life Insurance and changing investment pattern"Secondary objectives To study the investment pattern of people in Life Insurance. To observe the extent of the market. To recognize the target groups. To find out which type of insurance is preferred by the investors. To study the factors responsible for the low investment in Life Insurance. To study the different facilities of Life Insurance given by different companies. To study the risk factor involved in Insurance. To study which company is providing better services of Insurance with higher returns. To study the behavior values and beliefs of customers.1.3 Scope of the study

The study is conducted at Bajaj Allianz Life Insurance Corporation at Bangalore. The study covers the various marketing techniques to know about the brand awareness and changing investment patterns towards the life insurance industry. The data collected and interpreted will be useful for the company Scope of study refers to the area selected for the survey purpose. It includes businessman, employees, household and retired persons who are interested in investment their money. Various findings, observations and valuable suggestions, recommendations help the company to materialize its future plans.1.4 Research MethodologyResearch methodology is used to search answers of the research questions. An attempt has been made to describe the nature of the people of Bangalore city by the study of the samples.

Methodology in common parlance refers to a search for knowledge. The advanced learner's dictionary of current English lays down the meaning of research as "a careful investigation or enquiry especially through search for new facts in any branch of knowledge"

Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. Learning more about the consumer and about marketing is the heart of the research methodology. The research methodology has many dimensions research methods to constitute a part of the research methodology. A. Sampling planAfter collecting entire data and deciding on the research approach and instruments, now I had to decide on the sampling plan which was one of the important task, because from the bunch of people I had to select only those people ,whom I can target from now onward. There are three way of sorting the data.B. Sampling unitWho is to be surveyed? And now my task was to define the target population, which will be sampled from the number of people. Population refers to the total items about which the information is desired. Here in this project I have considered finite population that is we are taking one single individual as single unit which is fixed to 50 respondents, each separately by the single individual. C. Sample sizeLarge sample give more reliable result than small sample, so for this reason I had taken around 50 people with whom the survey was conducted to get an understanding of the respondents satisfaction level towards the different insurance brands.D. Analyze the collected information Once the date is collected the next task is to analyze it. The raw data should be classified into some purposeful usable categories. For example: tabulation, coding, etc. Analysis work, after tabulation, is generally based on the computation of various percentages, coefficients, etc. by applying various well defined statistical formulae like frequency distribution, calculation of average and dispersions. Here in this report it is found that the investment pattern of people in private insurance companies is not satisfactory.E. Report research findings:Final report is prepared according to the work done. This phase will mark the elimination of the marketing research effort. The report with the research finding is a formal written document. Research findings and personal experience will be used to propose recommendation to the Bajaj Allianz Life Insurance Corporation, which will help the company to develop an effective strategy to compete against other competitors. F. Data collection methodThere are several ways of collecting the data which different considerably in context of money, cost, time and other resources. In this project the data which was required gave details about the behavior of people who make investments in insurance, mutual funds, IPO, share market, etc.

1. PRIMARY DATA

The primary data are the first hand information gathered for research to solve the need by surveying the sampling units and collections of feedback from them involves the primary data with structured queries will be prepared for the customers. There will be survey within the customers giving 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. Sources of primary data Personal interview.

Questionnaires.Personal InterviewThis method was the most appropriate way of survey, because by personal interview I came to know about how the respondents feel about the life insurance companies. The personal interview is conducting mainly for collecting information for fulfill of the questionnaire.Questionnaire This method proved to be even better because it was not possible to interview every one and it was less time consuming to fill up the questionnaire rather than answering the interviewers questions. The questionnaire is to prepare to know the awareness level. The questionnaire is fully focused for collecting the brand awareness information and finding the market potential of Bajaj Allianz Life Insurance Corporation.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.

2. SECONDARY DATAThe secondary data is collected from the company website and other websites, through listing by personal observation. The secondary data are collected by some other people for their work and it is already exist. The researcher started investigation by first examining the secondary data to see whether the problem can be partly or fully solved by without collecting primary data. Since the secondary data were not sufficient to solve the entire problem, so primary data were collected to fill the gap. SOURCES OF SECONDARY DATA: Through internet, various official sites of the companies and other search engines. Through pamphlets and brochures of the companies.

Journals & MagazineG. Data collection instrumentsQuestionnaire was designed as a main instrument to conduct survey. A questionnaire constraint of 15 set of questions presented to respondents for their answers. 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. The questionnaire is used for the purpose of knowing the brand awareness among Life Insurance Company and changing investment pattern of people of Bangalore city.Market surveyThe result of surveys is used to describe and analyses the demand of the Bajaj Allianz life insurance products. The survey is conducted in the Bangalore city only.

Field work

Field work is done in this project individually with no biasness. The field work comprises of filling of questionnaire by different sector individuals. The framed questionnaire was presented for approval to college internal guide and company external guide. The study involved a fieldwork where the consumer contacted individually and were persuaded to discharge the information through the questionnaire. The respondents were directly contacted at their house or work place without prior appointment as per the convenience of the researcher.

RESEARCH PROCESS ADOPTED: Research Area : Bangalore

Sample Size : 50 1.5 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 Bangalore city, which has 127 to 170 insurance care consultants 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 care consultants 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.6. Human behavior is too complex to determine. So the information disclosed by them may not be very accurate.

7. It might be possible that the answers given by the respondents are full of biasness.

8. Some of the respondents were not willing to reply the questions.

9. A questionnaire is in English language, some respondents found it difficult to understand it, even many refused.

CHAPTER-2

DATA ANALYSIS & INTERPRETATION TABLE-1Table showing the awareness about Life Insurance among respondentsAwareness No. of respondentsPercentage

YES4998%

NO12%

Total 50100%

Analysis: The above table showing out of 50 respondents, 49 respondents are aware about life insurance only 1 is not aware about it.

Interpretation: - The above pie chart states that 98% of the total sample knows about life insurance. Only 1% of the total sample does not know about Life Insurance.

From the above interpretations it is very clear that almost every body knows about Life Insurance.

Table showing specific brand awareness about Bajaj Allianz Securities Ltd. among respondentsBrand awarenessNo. of respondentsPercentage

YES4386%

NO714%

Total 50100%

Analysis: The above tables showing out of 50 respondents, 43 respondents know about Bajaj Allianz securities ltd., Only 7 respondents are not aware of it. CHART- 2

Interpretation: - The above pie chart states that 86% of the total sample knows about Bajaj Allianz Life Insurance Corporation. Only14% of the total population does not knows about Bajaj Allianz Life Insurance Corporation. From the above interpretation it is clear that although Bajaj Allianz is a strong brand amongst the financial investors, people of Bangalore-city do not know much about the company.Table -3

Table showing how much amount respondents can invest per annum?

amountNo. of respondentspercentage

30,000816%

Total 50100%

Analysis: The above table showing out of 50 respondents, 19 respondents are investing less than10000 per annum, 13 respondents are investing 10000-20000,10 respondents between 20000-30000 and 8 respondents are investing more than 30000 per annum. Chart -3

Interpretation: - The above pie chart represents that 38% population is willing to invest less than Rs. 10,000, 20% of the people want to invest 20,000-30,000, only 16% population is willing to invest more than Rs. 30,000 per annum. while the people investing between Rs. 10,000 to Rs. 20,000 are 20% of total population surveyed.Table - 4Table showing for what duration respondents would like to hold the policyYears No. of respondentsPercentage

20 Years58%

Total 50100%

Analysis: the above table showing out of 50 respondents 11 respondents would like the policy for till 5 years, 26 respondents would like to hold the policy for 5 to 10 years and rest of 13 respondents would like to invest for more than 10 years.

Interpretation: - The above pie chart clearly shows that the people are more willing in the investment policies having maturity period between 5-10 years.

Investment policies having long maturity periods are less preferred by the peoples. Table - 5Table showing which Insurance plan respondents would like to opt or opted?Insurance planNo. of respondentsPercentage

Unit linked plans3162%

Traditional plans1938%

Total 50100%

Analysis: The above table showing that out of 50 respondents, 31 respondents would like to go for unit linked plan and rest of the respondents would like to go for traditional plan.

Interpretation: - The above chart states that 38 % of the people of the total sample size like to invest or they have already invested their money in traditional plan of the Life Insurance while 62% of the people like to invest or they have already invested their money in Unit linked plan, which is the modern plan of the Life insurance.

So, it is clear from the above interpretation that traditional plans are still popular among the masses although the modern unit linked plans are available in the market.

Table -6Table showing which company specific insurance plan respondents would like to invest the money?

Company name No. of respondentsPercentage

LIC3162%

Bajaj Allianz

612%

HDFC36%

ICICI Prudential 510%

Others510%

Total 50100%

Analysis : The above table showing that out of 50 respondents 31 respondents have a faith on LIC, 6 respondents would like to invest in Bajaj Allianz and rest want to invest their money in other insurance company.

Interpretation: - The above pie chart states that 62% of the population wants to invest their money in L1C when there is any option of investing in life insurance. 12 % of the total sample wants to invest their money in Bajaj Allianz, 10% in ICICI Prudential, 6% in HDFC and the remaining 10% in other than these brands.

From the above interpretations it is clear that L1C is the strongest brand in comparison to the other private insurance companys brand. It is also because L1C is the oldest company when we talk about Life Insurance.

Table - 7Table showing from whom respondents would like to buy or bought insurance plan?

Channels No. of respondents Percentage

Direct from the company36%

Any consultant24%

Any agent4590%

Total 50100%

Analysis: the above table showing that out of 50 respondents, 45 respondents would like to buy or already bought from agents.

Interpretation: - The above pie chart states that 90% of the total sample sizes take the insurance polices from the insurance agents. 6% of the total people take the insurance policies direct from the company and only 4% of the total sample takes the insurance policies from the financial consultants.

So, here we can say that the mass prefer to take life insurance policies from agents in other words the business of the life insurance is completely dependent on the agents.

Table-8Table showing type of information respondents would like to know while taking any insurance plan.Information type No. of respondents Percentage

About the company714%

About plan36%

About returns714%

About initial investment 48%

All the above

2958%

Total 50100%

Analysis: The above table showing that out of 50 respondents, 29 respondents would like to know all information like about the company, about plan, about returns, about initial investment before taking any insurance plan.

Interpretation: - The above pie chart states that 6% of the total sample size wants to know about the plan while taking any insurance plan 14 % of the total sample is concerned about the returns while investing in life insurance. 14% of the total sample wants to know about the company, 6% of the total sample wants to know about plan, 58% of the total sample wants to know about all information while investing the money in life insurance while taking any insurance plan. From the above interpretation it is clear that most of the people are concerned about all the information while taking any life insurance policy. The major information they want to know while taking any life insurance policy is the information about the company & then about the returns.

Table -9 Table showing where the respondents would like to invest the money?

Investment optionNo. of respondents Percentage

Share Market 36%

Mutual Fund 714%

Insurance1530%

Fixed Deposits2346%

Others36%

Total 100%

Analysis : The above table showing that out of 50 respondents 23 respondents would like to invest the money in Fixed deposits, 3 respondents in share market, 7 in mutual fund, 15 respondents in insurance and 3 respondents in other market.

Interpretation: - The above pie chart states that 46% of p