Bharti Axa Life Insurance

Project Report on

“Study of Marketing Strategy of BHARTI AXA INSURANCE LTD.”

ACKNOWLEDGEMENT

This project grew out of our preparation for more than twenty days. An enormous debt is owed to our tutor, Professor-------, for his wisdom, enthusiasm, support and encouragement. It is his profound knowledge an insight, and constant strictness and kind understanding that help us in overcoming difficulties, mastering basic writing skills, an deforming our own ideas, which consequently have enabled me to finish this project. Without his revising for several times, the project would not be what it is now.

We are eager to take the opportunity to thank - -------------- and other teachers who have given us guidance, assistance and concern. They have imparted to us so much valuable knowledge, which will befit us a whole lifetime.

In addition, we would like to thank family who always support us in whatever conditions. Their encouragement and love give me warmth, strength and confidence, which help us in surmounting so many obstacles and in realizing our dreams.

Finally, we give our heartfelt thanks to dear friends and fellow students, who have accompanied us throughout the project.

index

S. no. content Page no.

1. Executive Summary 04

2. About Insurance 04

3. About General Insurance 05

4. Life Insurance and India 06

5. Indian Contract Act 1872 08

6. Working of Life Insurance 12

7. About Bhari AXA Insurance 13

8. Features Bhari AXA Insurance 14

9. Bharti Group 15

10. Market share 17

11. Structure of Bhari AXA Insurance 18

12. Marketing Team Structure 19

13. Descriptions of few products 19

14. Carriers in Bharti AXA Insurance 21

15. Marketing 23

16. TELE-Marketing 24

17. Result from Calling 24

18. Channel Marketing 25

19. Procedure of getting Insurance 26

20. Recommendations 27

21. Bibliography 28

22. Annexure ( Questionnaire For Comparision ) 29

EXECUTIVE SUMMARY

Monopoly of LIC has been broken to make Indian Insurance to change its face and pace to tap the market and to make the new challenges in it.

Insurance in India is not about India only; it is an open sector for the private players.

The name which we would see in Indian insurance market is something like: - Bharti (Indian company) + AXA(foreign player), BAJAJ (Indian company) + Allianz (foreign player), TATA (Indian company) + AIG (foreign player) and so many like them.

Companies now are tapping a lot of ways to capture the market and hence adopting different ways to hold the large portion of the market.

Our project is to understand the different marketing strategies adopted by the companies to increase their market share and along with it meeting their own targets to achieve the position of no.1 in respective field or segment of the market.

About Insurance:-

Insurance may be defines as social device to protect the economic value of the Life and other assets. Under the plan of Insurance a group of people are brought together and their share of money is pooled to manage the loss suffered by any of them.

Insurance is a contract whereby in return of the payment of the premium by the insured the insurers pay the financial loss suffered by the insured as a result of the loss by the unforeseen events. The term “risk” is used to define the probability of loss.

Insurance is a pool where large number of people exposed to similar kind of risks makes contribution to the common fund out of which the losses suffered by the unfortunate few due to accidental events are made good.

The sharing of risk among large group of people is the basis of insurance.

Characteristics of Insurance:-

1. Sharing of Risk

2. Cooperative device

3. Evaluation of Risk

4. Payment on event of happening of any special event

5. The amount of payment depends on the size and type of loss.

6. The success of Insurance business depends on the law of large number of people insured against similar risk.

7. Insurance is a business which spreads the loss and the risk of few people in the large number of people.

8. The insurance is a plan in which insured transfer his risk to insurer.

Insurance is divided in two basic zones:-

1. General Insurance

2. Life Insurance

About General Insurance:-

Insurance of the non life assets are called general insurance, this includes loss of asset against water, fire, earthquake etc. With the desertification in the Indian Market in General Insurance the monopoly of the general Insurance public sector’s companies has been broken. With the entrance of the new private player market innovative technique has been introduced to capture the market. In general Insurance around 17% of the market has been captured by the private players.

General Insurance is a sector which alone has many type of insurance coverage in it like Fire Insurance, Marine Insurance, motor Insurance, Liability Insurance, Engineering Insurance etc.

The Non Life Insurers

National Insurance Co. Ltd

New Indian Assurance Co. Ltd

Oriental Insurance Co. Ltd

United India Insurance Co. Ltd

Tata AIG General Insurance Co. Ltd

Bajaj Allianz General Insurance Co. Ltd

IFFCO Tokio General Insurance Co. Ltd

ICICI Lombard General Insurance Co. Ltd

Reliance General Insurance Co. Ltd

Royal Sundaram Alliance Insurance Co. Ltd

Bharti Axa General Insurance Ltd.

HDFC Chub

Life Insurance and India:-

Life Insurance in India existed from long time. The modern concept of Insurance was brought by Bruisers in India, and Oriental Insurance Company was the first Insurance Company who did Insurance for the Indian in 1818 and was established in Calcutta nowadays Kolkata. Then due to no interference of government in it, private market players ruled the market as they want to, that is why government intervened in between to protect the interest of the mass and to safeguard the money involved in it. All private companies were took over by Government and Insurance market was turned to Public sector and Life Insurance Corporation of India was formed in 1956 to make the Insurance reachable at remote areas and that even by low premiums or better said as affordable premium so as to secure their life.

From the beginning of Insurance in India till now a lot of changes have been made but the most significant change was in 1999, when IRDA was formed. IRDA means Insurance Regulatory and Development Authority. This was formed to rethink upon opening the insurance sector for the Private players again but along with that to have a check upon those private players an IRDA has to act as a governing body to safeguard the interest of the public whose money is involved in it.

From that time i.e. from the year 2001 insurance sector was opened for the private players too. Since then Insurance sector is on the boom and business is flourishing and a lot of private players are coming into business. Here the private players doesn’t indicate to Indian Private Companies but also foreign players are also involved in it, but to manage the money flow in and outside the country IRDA takes care of the contribution of the money by foreign partners of private insurance companies. To control that IRDA has set a limit of FDI i.e. 26%.

The evolution of Insurance in India can be summarized as:-

Year Changes

1818 Oriental Insurance Company. The first Insurance company in India

1870 Bombay Mutual Life Assurance Company. First Indian Insurance company.

1912 The Indian Life Assurance Company enacted the first law to regulate the life insurance business in India

1926 The Indian Assurance company act enacted to enable the government to collect the statistical information about the insurance.

1938The earlier legislation consolidated and amended the life insurance act with the objective of protecting the interest of insurance in the public.

1956 245 Indian and foreign players and prudent societies are taken once by Central govt. And nationalized

The number of companies in Insurance particularly in Life Insurance has changed drastically now the number is in 17. List of them are mentioned as below:-

1. Bajaj Allianz Life Insurance

2. ICICI Prudential Life Insurance

3. TATA AIG Life Insurance

4. Max New York Life Insurance

5. AVIVA Life Insurance

6. Bharti AXA Life Insurance

7. Kotak Mahindra Life Insurance

8. Reliance Life Insurance

9. SBI Life Insurance

10. HDFC Standard Life Insurance

11. Birla Sun Life Insurance

12. Sahara Life Insurance

13. ING Vysa Life Insurance

And so on....

Indian Contract Act 1872

Life Insurance contracts are the one which has to fulfil the requirements of the Law of Contract as per the Indian Contract Act 1872.

Indian Contract Act 1872 implies: A contract must have certain essential features in order to make it legally valid and enforceable.

Essential Features:-

1. Offer and Acceptance: - There should be the offer by the customer in form of proposal form and Acceptance by the Insurance Company.

2. Consideration- There should be the valid consideration against the insured property in terms of the premium to b paid by the consumer.

3. Agreement between the parties: - There should be consensus on the both side of the parties.

4. Capacity to contract: - The Insured should have the capacity to perform the contract as that he a?) He should be of sound mind b) he should not be abided by law to go for any contract c) he should be major that he should have the age minimum to 18.

5. Legality: - there should be the legality of contract as it should be legal in nature and must be brought for the lawful consideration.

Above details have some technical words like Insured, Insurer, and Premium etc. Let’s make a brief note on that for a better understanding:-

Policyholder: - The one who pays the premium against policy

Insured: - The one who is insured against risk by insurance company.

Insurer: - The one gives the insurance i.e. Insurance Company.

Premium: - The amount against continuance of the insurance

P.S.:- Policyholder and Insured can be same person and can be two individuals even.

Apart from the Legal Structure of the Insurance Contract there are some principles in Insurance Industry on which every company works on. These principles are:-

Utmost Good Faith: - It is also termed as Uberrima Fides. It is applicable on the proposer that all the contents which are filled and signed by him on the proposal form are true as per his knowledge.

Insurable Interest: - It means that the property or life which is to be insured the proposer has the legal rights upon that. Without insurable interest no insurance can be provided. In life insurance term legal rights on life means to prove the blood relation. A husband can take policy for his wife.

Indemnity:- The prinviple of indemnity is an insurance principle stating that an insured may not be compensated be the insurance company in an amount exceeding the insured's economic loss.

Contribution:- Where there are two or more insurance on one risk, the principle of contribution comes into play. The aim of contribution is to distribute the actual amount of loss among the different insurers who are liable for the same risk under different policies in respect of the same subject matter. Any one insurer may pay to the insured the full amount of the loss covered by the policy and then become entitled to contribution from his co-insurers in proportion to the amount which each has undertaken to pay in case of loss of the same subject-matter.

Subrogation:- The doctrine of subrogation is a corollary to the principle of indemnity and applies only to fire and marine insurance. According to it, when an insured has received full indemnity in respect of his loss, all rights and remedies which he has against third person will pass on to the insurer and will be exercised for his benefit until he (the insurer) recoups the amount he has paid under the policy.

Causa Proxima:- The rule of causa proxima means that the cause of the loss must be proximate or immediate and not remote. If the proximate cause of the loss is a peril insured against, the insured can recover.

Mitigation of Loss - In the event of some mishap to the insured property, the insured must take all necessary steps to mitigate or minimize the loss, just as any prudent person would do in those circumstances.

If asked we should know the benefits of the insurance and that can be known by knowing the function of the insurance.

PRIMARY FUNCTION:-

1. Provide protection: - As risks controlling is not in the hands of anyone completely that is why Insurance Company provides the risk protection.

2. Collective bearing of loss: - Insurance Company would have to accept the loss and give respective claims as for the sake of contract that has been done between the company and the insured.

3. Assessment of Risk: - There should be the proper assessment of the risk so as to charge the correct and legible premium to insure the subject matter of insurance.

4. Provide the certainty: - As the losses appear from the uncertainty so Insurance Company would have to provide the certainty of absorbing the loss so as to protect the insured under the risk in which he has been insured.

SECONDARY FUNCTION:-

1. Prevent Loss: - Insurance cautious businessman and individuals to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions.

2. Small capital to large risk: - Small capital is demanded to cover the risk of the large capital.

OTHER FUNCTION:-

It is a means of savings and investment apart from it its share in the GDP counts very important. In India it is in a growing stage in compare of the other countries lets’ have a look on it:-

United Kingdom 8.9%

Japan 8.3%

Korea 7.3%

United States 4.1%

Malaysia 3.6%

India 3.0%

China 1.8%

Brazil 1.3%

If we talk in terms of India only then the result will be something like this:-

Working of Life Insurance:

Risk has to be assessed in order to decide tithe premium or to decide that subject is insurable or not.

Pure Risk vs. Speculative Risk:-

Event representing there will be possibility of loss or no loss is called pure risk. These risks are insurable in nature.

Speculative risk is the one which truly resembles gamble. There is the possibility of loss or gain and wherever there is a chance of making profit there insurance cannot exist. Therefore these risks are not insurable in nature.

Approaches to Risk Management:-

Risk Management is the process of minimising the risk due to unforeseen events. Steps involved in selecting the Risk Management are:-

To identify all the things that can be possibly wrong. To consider possibility that an event can occur.

Techniques toward the Risk Management;-

1. Avoiding the Risk: - Risk can be managed by avoiding it as when the perils will come then it will be managed.

2. Eliminate the Risk: - Risk can be managed by eliminating the cause of the loss.

3. Reducing the Risk: - Risk can be reduced by handling them in a systematic manner.

4. Transfer of Risk: - Risk can be minimized by transferring the risk of loss to any other person which is a true form of the INSURANCE.

About Bharti AXA Insurance Ltd.:-

Bharti AXA Life Insurance is a joint venture between Bharti, one of

India’s 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 Asia Pacific Holdings Ltd (APH).

The company that launched its national operations in December 2006 has

over 3000 employees across over 12 states in the country and their

business philosophy is built around the promise of making people "Life

Confident".

The following quote from their website and other press media did make a

connection to what we got as an answer to one of the questions about

their expansion strategies and customer acceptance."As we expand our presence across the country to cater to your insurance and wealth management needs with our product and service offerings, we

continue to bring 'life confidence' to customers spread across India. Whatever your plans in life, you can be confident that Bharti AXA Life will offer the right financial solutions to help you achieve them"

The Bharti group is very popular across the length and breadth of the

country as leading cell phone service provider - Airtel and if marketed as

Airtel Insurance, people easily recognize the brand name. Also marketing

message and bundling could very well be done with the backing of Airtel.

The market as of 2006, is dominated by LIC with 63 % share while ICICI

Prudential and Bajaj Allianz are leading private players with market

shares of 10.6 % and 7.4 % respectively. Bharti AXA has the challenges

of second wave entrant while it has the advantage to learn from the

existing players and enjoy the already created insurance awareness.

Features :Following are some of the milestones

1870 - Establishment of first Indian Life Insurance office -

Bombay Mutual Assurance Society

1912 ; 1938 - Life Insurance Sector regulated - Indian Life

Insurance Companies Act enacted; Insurance Act 1938 passed

1956 - Life Insurance Nationalized through Life Insurance

Corporation of India Act - LIC becomes a State monopoly

2000 - Opening of the Insurance sector for private players.

Presently Foreign Direct Investment (FDI) is permitted upto 26 %

2005 - 14 companies offering life insurance - one dominant

nationalized player and 13 pvt companies

2006 - 15 private sector companies - 2 wholly Indian owned.

Some of the interesting facts about Life Insurance Sector in India

1. Contributes 4.1 % of India's GDP

2. Second largest financial service after banking

3. Total number of lives insured and on books as of March 31, 2006

- 198,466,127

4. As of same date above, Rs. 5,496 billion is the total Assets under

Management of Life Insurance Corporations

5. A statutory requirement exists to reach rural areas

There are certain restrictions on how the assets are allocated and how the

profits are to be shared and this underpins the time to return to

profitablity for the private players. 50 % of the assets to be invested in

Government Bonds and 15 % in Infrastructure bonds leaving only 35 %

for the fund managers to creatively manage. It is typically known to be a

6 year period and with the opening up of this sector only in year 2000,

none of the private players are profitable yet. This makes it ever more

challenging for Bharti AXA which is the newest player in the market.

The insurance products by Bharti AXA Life Insurance Company Ltd include:

o Wealth Confidento Future Confident

o Future Confident II

o Secure Confident

o Save Confident

o Invest Confident

Each life insurance or general insurance product of Bharti AXA Life is named confident as they believe in making each customer 'Life

Confident' giving them the assurance that the future of their loved ones is financially secure even in their absence.

Bharti AXA Group:-

Bharti Airtel / Airtel Ltd. Bharti AXAInsurance Bharti-Tele Tech Ltd Bharti AXA Investment Managers Bharti Tele Soft Bharti Resources Bharti Foundation

1. Bharti Airtel Ltd. :- Bharti Airtel Ltd is one of Asia's leading telecommunications service provider. The Company is India’s largest integrated telecom company in terms of customer base and offers Mobile Services, Fixed Line services, Broadband & IPTV, DTH service named Airtel Digital TV , Long Distance and Enterprise services. Airtel also offers mobile services in Sri Lanka on a state-of-the art 3.5 G network.

2. Bharti AXAInsurance :- Bharti AXA Insurance Company, India, is a leader in life insurance products, financial protection, wealth management and financial services.

3. Bharti-Tele Tech Ltd : Bharti-Tele tech currently commands a leading share in retail as well as the telecom service provider segments. Buoyed by its experience & success in distribution & marketing as well as the changing sphere of Indian economy, the Company plans to offer a high range of products to the consumers, going forward.

4. Bharti AXA Investment Managers :- Bharti AXA Investment Managers Pvt. Ltd. is a joint venture between Bharti Ventures Limited - one of the foremost business groups in India, AXA Investment Managers (AXA IM)

and AXA Asia Pacific Holdings (AXA APH) (through NMIPL). We focus on excellence and performance, with our professional fund management taking care of your imperative financial needs, keeping tomorrow in check while tracking a dynamic today.

5. Bharti Tele Soft :- Bharti Tele soft is the leading provider of integrated VAS solutions for mobile operators in emerging markets. Among the top 3 global providers of integrated VAS solutions in rapidly growing markets, Bharti Telesoft has deployed solutions for over 100 mobile operator customers in over 70 countries worldwide.

6. Bharti Resources :- Bharti Learning Systems is a wholly owned subsidiary of Bharti Enterprises, which provides end-to-end learning and skill- building solutions for the Bharti Group companies and several large corporates. It provides solutions that impact business performance through enhanced employee productivity, customer profitability and effective talent transformation. Besides, Bharti Learning partners a host of leading organisations such as American Express, Genpact, Maruti Suzuki, PepsiCo, HCL, Cummins, LG, JCB, Deutsche Bank,

Motilal Oswal, Blue Dart, Kaya, CEAT, Everest Industries and AXIS Sales etc.

7. Bharti Foundation :- Bharti Foundation, the philanthropic arm of Bharti Enterprises was established in 2000 with a vision "To help underprivileged children and young people of our country realize their potential". Bharti Foundation is an organization established under the Laws of India with charitable status pursuant to a "Deed of Trust" dated August 7, 2000; registered at New Delhi on August 25, 2000.

Market Share

If we look at the status of Bharti AXA Life Insurance’s market share in comparison of other private company in comparison of premium earned:-

No Insurer Market Share (%)

1. Bajaj Allianz 7.56

2. ICICI Prudential 7.35

3. Bharti AXA 4.10

4. HDFC Standard Life 2.87

5. SBI Life 2.31

6. Birla Sun Life 1.89

7. Tata AIG 1.29

8. Max New York 1.23

9. Aviva 1.14

10. Kotak Mahindra OLD Mutual 1.11

11. ING Vysya 0.79

12. Reliance Life 0.54

13. MetLife 0.40

14. Sahara Life 0.06

15. Shriram Life 0.03

Structure of Bharti AXA Insurance Ltd . :-

Managing Director & Chairman : - MR. Sunil Bharti Mitta

CFO :- Mr Milind Chalisgaonkar,

Chief Operating Officer :- Tim Thomas

Director – Human Resources :- Priya Ranjan

Chief Distribution and Marketing Officer :- Shyamal Saxena

Its hierarchy in Bharti AXA Life Insurance is like this:-

Marketing Team Structure:

Few Products :-

1. Individual Plans :

a. Bharti AXA Life Bright Stars :- A Unit Linked Child product. Bharti AXA Life Bright Stars provides a launch pad for your child’s bright future. What else, we also have Jumpstart benefit which is paid out at maturity along with Policy Fund Value, which enables your child to explore more career options.

b. Bharti AXA Life Spot Suraksha :- Spot Suraksha helps us to create a pool of wealth to meet your long-term needs, with an added advantage of simplified buying process.

c. Bharti AXA Dream Life Pension :- A Unit Linked Pension Product, Dream Life Pension, Bharti AXA Life Insurance’s unique pension product ensures that our retirement life is your Dream Life.

d. Bharti AXA Life AspireLife :- Unit Linked Endowment Product, Aspire Life helps us to create a pool of wealth to meet our long-term needs, while also providing

us adequate protection in case the need arises.

e. Bharti AXA Life InvestConfident :- Unit Linked Single Premium Product, we have always strived hard to achieve the best for us and your loved ones, so when it comes to making an investment decision, we would expect the best from it too.

f. Bharti AXA Life WealthConfident:- A unit-linked investment cum protection policy, our wealth, your status ensures that we get preferential status wherever we go. 

g. Bharti AXA Life FutureConfident :- A unit-linked policy which offers comprehensive protection along with wealth creation in the long term.

h. Bharti AXA Life SaveConfident :- Traditional money back insurance product for long term savings,our changing lifestages decide our financial milestone planning. When we foresee intermittent financial requirements in the years to come, like regular expenses related to our child’s education, liquidity becomes a key aspect of your planning along with long term savings, and protection for your family.

i. Bharti AXA Life SecureConfident :- A Long Term Life Insurance, all of us desire to maximise the happiness for our family at all times, irrespective of the circumstances. The thought of unfortunate events befalling us may cause us anxiety about providing a secured happiness to our loved ones.

2. Group Plans :

a. Bharti AXA Life – Swasthya Sanjeevani :- Swasthya Sanjeevani is a single premium group critical illness product, providing comprehensive protection against 6 critical illnesses.

b. Bharti AXA Life – Sanjeevani :- Sanjeevani is a single premium group term life insurance product, offering protection to your family.

c. Bharti AXA Life Mortgage Credit Shield :- Mortgage Credit Shield is a Group Product that provides coverage to people who have availed of a Mortgage\ Home loan\ Home equity loan from an Institution/Bank.

d. Bharti AXA Life Credit Shield :- Credit Shield is a Group Product that provides coverage to people who have availed of a loan for 1 to 5 years from Group Policyholder.

e. Bharti AXA Life Life Shield :- Life Shield is a single premium group term life insurance product.

Carriers in Bharti AXA Insurance :-

Talent Engagement objectives:

To create an emotional commitment and strong two-way relationship between the employees and the Company.

To have clear performance expectations and a clear return from the Company (working environment, development, reward, career opportunities etc), which helps employees to make a connection between their contribution and the progress made by the Company.

To inspire and empower people to achieve their best and reward them competitively for their contribution and provide attractive career opportunities.

To build a learning culture which fosters personal development and professional mobility and upholds values of professionalism, innovation, pragmatism, team spirit, integrity.

To respect and value individuals, their diversity and support them in their need to balance professional and personal lives.

"Core Job Functions" in following categories

Sales & Distribution Marketing & Communications

Product Development, Underwriting & Acturial

Operations Management

Claims Management

Risk Management

Program Management

Finance & Accounts / Legal

Administration & Facilities Management

Information Technology

Human Resources, Training & Development

Marketing:-

According to Kotler,” Marketing is a social and managerial process by which individuals and groups obtain what they need; want through creating, offering and exchanging of products of value through other.

This definition of marketing rests on the core concepts like: needs, wants, and demands, products (good, services and ideas); value, cost and

satisfaction; exchanger and transactions; relationships and networks; markets; marketers and prospects.

NATURE OF GOOD MARKETING

THAT IS WHAT BHARTI AXA INSURANCE BELIEVES IN, a good marketing

Kotak adopts different methods for the marketing:-

Bharti AXA has positioned itself in terms of BRAND POSITIONING as:-

FINANCIAL FREEDOM: “life’s full of fabulous choices ”.

Bharti AXA always expressed itself as always close to Customers with the help of:-

Ads Merchandising Corporate Stationery

TELE MARKETING:

It is a kind of Direct selling, which makes the LEAD GENERATION for the BUSINESS, or it turned into the SALES that are again building BUSINESS for the company.

Tele Marketing is marketing the product through telephone. The most important aspect of Tele Marketing is COLD CALLING, HOT CALLING, and OBJECTION HANDLING.

Cold Calling means Calling to the unknown telephone number for the first time and that even without knowing the respondent.

Hot Calling means Calling to already approached person for the further response

Objection Handling means to handle the type of objection that may arise while calling.

By different type of calling we used to generate the LEAD for the further business.

Result from Calling:-

Appointment: - Calling used to turn into the appointment to generate the lead for the business depending upon the motto to call, which was sometimes for the appointment of the Life Advisors and sometimes for selling the policies. Mail Brochure: - Sometimes responses were that the respondent is not able to talk due to some reasons and they ask to mail the details via e mail.

Call Later: - Responses used to come as to call later because of their busy schedules, incorrect time to call as the persons busy in meeting or having lunch, or driving or is in roaming area.

Already a customer of Bharti AXA: - little response came as the person is already a customer of the Bharti AXA Insurance.

Not Interested: - Most of the responses turned to not interest the basic reason for that is, in India Insurance are much about telling then asking.

Database Problem: - If we got the database then problem like wrong number was frequent to observe.

CHANNEL MARKETING

Distribution Network of Individual Life Insurance Business in India

Direct selling part includes Tele marketing through advertisements etc.

Brokers are the one who can sell the insurance product of a lot of company and is appointed by the company but works for the individual and earn brokerage through company.

Life Advisors is the name given to the traditional “Agent” which we often hear. Life Advisor is the one who can sell the insurance product of only one company and commission is what he earns in reference to the business provided by him.

Other channel here means the Corporate Agents, banks, selling through Franchisee etc. are the parts of the channels which create business for the company.

Channel development’s most important aspect is Life advisor so we should know the process of recruiting the life advisor.

Procedure of Getting Insurance :-

First of all PHF form has to be filled along with it necessary document has to be attached:-

PHF means Personal History Form in which NAME, ADDRESS, MOBILE NO., Type of Training Required etc has to be mentioned.

Simply all those information has to be there which are necessary to be known to the company so as to decide the potential of the Proposer to bring the business to the company.

Then basic requirements as per the rule of the Insurance Act, 1938 has to be fulfilled.

1. Person has to be major

2. Should be of sound mind

3. Should work for only one company

4. Should be 10th if going for rural area, and should be 12th passed if going for the urban area. Urban area means the area having the population above 5000 persons.

5. Should have residential proof

6. Should have identity proof.

7. Copy of PAN Card has to be attached.

And then the most important aspect that person will have to go for the 50 hours training and will have to secure 50% marks to pass the examination conducted by III (Insurance Institute of India) in behalf of IRDA to get the licence to do the policy and earn the commission out of the work done.

Bharti AXA life is the theme that is opted by the Bharti for its employee

CPI = FOS*% active * Average case size * Average case rate

CPI: Cash Premium Income

FYP i.e. First Year Premium excluding the renewal premium is CPI of the company.

FOS: Feet on Street. Sales are source of it and source of sales is Life Advisors.

Percentage active: It is that how many policies the life Advisors have sold or in a better manner we can say that active is the one who sells at least one policy in a year.

Average Case Size = TOTAL PREMIUM / no. of policies

Average Case Rate = Total policies/ No. of Active Life Advisor

In it different training modules is designed at different levels of life advisors.

Rewards and recognition has 5 levels in it:-

RECOMMENDATIONS:-

Some more motivation to the employees over there is needed.

Infrastructure has to be built properly because an office is the face of the company.

Tele marketing need to be focussed much.

Networking is needed to be made broad as the number of branches with KotakLife is only 75 and the 7 states has been touched by the company so there is a huge untapped market available for the Kotak.

Marketing in terms of the media via advertisements on Televisions to small commercials on FM has to be made because there were respondents in our survey who even haven’t heard the name of KOTAK Life Insurance. FM is suggested here because the people who can drive the private life insurance is the youth, and FM is something on which youngsters look upon too.

Awareness Camp to the sub urban area should be focussed by kotak.

Apart from the Brand Positioning in urban area, a strategy should be adopted by Kotak to make its brand also near to middle level, or high aspirant people because they are the main source of the business in India.

1. TIMES OF INDIA

2. THE HINDU

3. Business world

4. Outlook Business

5. Business Today

Webliography:-

1. www.bharti.com

2. www.indiatimes.com

3. www.insuranceworld.com

4. www.findarticles.com

5.www.wikipedia.org

6.www.managementparadise.com

7.www.google.com

Other sources:-

1. The Economic Times

2. Blogs by admin

ANNEXURE

Questionnaire For Comparision

Basic Information

Name : Mr./Mrs./Ms. ---------------------------------------- Phone No.: ------------------

Age : -------------- Occupation : -----------------------Designation:----------------

Education :

Graduate

Post Graduate

Non-Graduate

Professional :

Doctor

Engineer

C.A.

M.B.A.

L.L.B.

Other ---------------------------

Annual Income of Household :

Up to Rs. 2 Lakh

Rs. 2 Lakh to Rs. 5 Lakh

Rs. 5 Lakh to Rs. 8 Lakh

Above Rs. 8 Lakh

Address :---------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------

1. Are you an active investor ?

Yes No

2. What are your investment objectives ?

For tax saving For old age High return

Child’s future Others :----------------------------------

3. Do you have any Insurance Policy ?

Yes No

4. What kind of Insurance Policy you have ?

Life Health Children

5. Which company’s Insurance Policy you have ?

Bharti AXA ICICI Prudential Life

Bajaj Allianz HDFC Standard Life

SBI Life Avira Life

Max NY Life LIC India

Birla Sunlife Reliance Life

Others :---------------------------------------------

6. Does your Insurance Provider fulfils all your expectations regarding Insurance Policies?

Yes No

If no, state the reasons :--------------------------------------------------------------------

7. Are you willing to invest in same Insurance Provider in future ?

Definitely Yes Yes Can’t Say

Definitely No No

8. Will you choose Bharti AXA Insurance Ltd. as your Insurance Provider ?

Definitely Yes Yes Can’t Say

Definitely No No