INTRODUCTION TO INSURANCE SECTOR IN INDIA.docx

OBJECTIVE OF STUDY

Swot analysis of Bajaj Allianz life insurance

Understanding the financial position of Bajaj Allianz life insurance

RESEARCH METHODOLOGY

Research Methodology is a way to find out the result of a given problem on a specific matter or

problem that is also referred as research problem. In Methodology, researcher uses different

criteria for solving/searching the given research problem. Different sources use different type of

methods for solving the problem. If we think about the word “Methodology”, it is the way of

searching or solving the research problem. (Industrial Research Institute, 2010).

According to Goddard & Melville (2004), answering unanswered questions or exploring which

currently not exist is a research. The Advanced Learner’s Dictionary of current English lays

down the meaning of research as a careful investigation or inquiry especially through search for

new facts in any branch of knowledge. Redmen & Mory (2009), define research as a

systematized effort to gain new knowledge.

In Research Methodology, researcher always tries to search the given question systematically in

our own way and find out all the answers till conclusion. If research does not work

systematically on problem, there would be less possibility to find out the final result. For finding

or exploring research questions, a researcher faces lot of problems that can be effectively

resolved with using correct research methodology (Industrial Research Institute, 2010).

The process used to collect information and data for the purpose of making

business decisions.The methodology mayinclude publication research, interviews,

surveys and other research techniques, and could include both present and historical information.

Research:

The word research is composed of two syllables, re and search.“Re” is a prefix meaning again,

anew or over again “Search” is a verb meaning to examine closely and carefully, to test and try,

or to probe. Together they form a noun describing a careful, systematic, patient study and

investigation in some field of knowledge, undertaken to establish facts or principles.

Research design:

A research Design is a complete scheme or programme of the research. It includes an outline of

what the investigator will do from research problem formulation to final analysis of data.

Thus, we can say research design includes the following:

a) Clear Statement of research problem.

b) Technique to be used for collecting data.

c) The target population to be studied.

d) Methods to be used in processing and analysis of data.

There are two types of research design namely exploratory research and descriptive research.

Exploratory type of research is conducted when there are few earlier studies to which references

can be made for information. This type of research is conducted when a researcher wants to

explore or find in detail about an area/subject /topic about which he/she has either little or no

knowledge. In this type of research the main focus is on gaining familiarity with a new area for

more detailed investigation later. The objective of exploratory research is to formulate

hypothesis rather than testing it.

The type of research used in this research is Descriptive research, also known as statistical

research, describes data and characteristics about the population or phenomenon being studied.

Descriptive research answers the questions who, what, where, when and how. As the name

implies, the purpose of descriptive research is to describe something. In this type of research the

researcher is only required to report what has happened or what is happening. The main objective

of descriptive research is to describe the state of affairs as it exists at present. A descriptive

research is carried out with specific objectives and hence it results in definite conclusions. In

other words, descriptive research can be said to have a low requirement for internal validity. The

description is used for frequencies, averages and other statistical calculations. Often the best

approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative

research often has the aim of description and researchers may follow-up with examinations of

why the observations exist and what the implications of the findings are. Qualitative research is

related with qualitative phenomenon i.e. related to or involving quality or kind, and in this

research qualitative phenomenon are , the product, price, place, promotion strategies

Type of data

Any data is of two type i.e. primary data and secondary data. In this project work I have used the

secondary data instead of the primary data.

Primary data are those which are collected a fresh (again but in a new or different way) and for

the first time and thus happen to be original in character and known as Primary data. Primary

Data is based on primary source of information. The investigator gets it in original or raw form

i.e. it is not been processed earlier- coded, tabulated, classified and summarized in some form for

use by someone for some purpose.

Secondary data means that are already available that is they refer to the data, which have already

been collected and analyzed by someone else for its own use and later the same data is used by a

different user or person.

It is based on secondary source of information. The source of data is called secondary because

this data have already been collected, tabulated and presented in some form by someone else for

some purpose. All the information is collected with the help of the official website of Bajaj

Allianz life insurance , newspaper articles, magazines, advertisements ,etc.

INTRODUCTION TO INSURANCE SECTOR IN INDIA

In India, insurance has a deep-rooted history. Insurance in various forms has been mentioned in

the writings of Manu (Manusmrithi), Yagnavalkya (Dharmashastra) and Kautilya (Arthashastra).

The fundamental basis of the historical reference to insurance in these ancient Indian texts is the

same i.e. pooling of resources that could be re-distributed in times of calamities such as fire,

floods, epidemics and famine. The early references to Insurance in these texts have reference to

marine trade loans and carriers' contracts.

Insurance in its current form has its history dating back until 1818, when Oriental Life Insurance

Company[3] was started by Anita Bhavsar in Kolkata to cater to the needs of European

community. The pre-independence era in India saw discrimination between the lives of

foreigners (English) and Indians with higher premiums being charged for the latter. In

1870, Bombay Mutual Life Assurance Society became the first Indian insurer.

At the dawn of the twentieth century, many insurance companies were founded. In the year 1912,

the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the

insurance business. The Life Insurance Companies Act, 1912 made it necessary that the

premium-rate tables and periodical valuations of companies should be certified by an actuary.

However, the disparity still existed as discrimination between Indian and foreign companies. The

oldest existing insurance company in India is the National Insurance Company , which was

founded in 1906, and is still in business.

The Government of India issued an Ordinance on 19 January 1956 nationalising the Life

Insurance sector and Life Insurance Corporation came into existence in the same year. The Life

Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers as also 75 provident

societies—245 Indian and foreign insurers in all. In 1972 with the General Insurance Business

(Nationalisation) Act was passed by the Indian Parliament, and consequently, General Insurance

business was nationalized with effect from 1 January 1973. 107 insurers were amalgamated and

grouped into four companies, namely National Insurance Company Ltd., the New India

Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance

Company Ltd. The General Insurance Corporation of India was incorporated as a company in

1971 and it commence business on 1 January 1973.

The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private

sector. Before that, the industry consisted of only two state insurers: Life Insurers (Life Insurance

Corporation of India, LIC) and General Insurers (General Insurance Corporation of India, GIC).

GIC had four subsidiary companies. With effect from December 2000, these subsidiaries have

been de-linked from the parent company and were set up as independent insurance

companies: Oriental Insurance Company Limited, New India Assurance Company

Limited, National Insurance Company Limited and United India Insurance Company Limited.

The primary regulator for insurance in India is the Insurance Regulatory and Development

Authority (IRDA) which was established in 1999 under the government legislation called

the Insurance Regulatory and Development Authority Act, 1999.[5][6]

The Insurance Act of 1938[4] was the first legislation governing all forms of insurance to provide

strict state control over insurance business.Life insurance in India was completely nationalized

on 19 January 1956, through the Life Insurance Corporation Act. All 245 insurance companies

operating then in the country were merged into one entity, the Life Insurance Corporation of

India.

The General Insurance Business Act of 1972 was enacted to nationalize about 100 general

insurance companies then and subsequently merging them into four companies. All the

companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance

and United India Insurance, which were headquartered in each of the four metropolitan

cities.Until 1999, there were no private insurance companies in India. The government then

introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-

regulating the insurance sector and allowing private companies. Furthermore, foreign investment

was also allowed and capped at 26% holding in the Indian insurance companies.

BAJAJ GROUP

Bajaj Group is an Indian conglomerate founded by Jamnalal Bajaj in 1926, Mumbai. Bajaj

Group is one of the oldest & largest conglomerates based in Mumbai, Maharashtra.[4] The group

comprises 36 companies & its flagship company Bajaj Auto is ranked as the world's fourth

largest two- and three-wheeler manufacturer.[5] Some of the notable companies are Bajaj Auto

Ltd, Bajaj Finserv Ltd, Hercules Hoists Ltd, Bajaj Electricals, Mukand Ltd, Bajaj Hindusthan

Ltd and Bajaj Holding & Investment Ltd.[6] The group has involvement in various industries that

include automobiles (2- and 3-wheelers), home appliances, lighting, iron and steel, insurance,

travel and finance. The group is headed by Rahul Bajaj.

COMPANIES UNDER BAJAJ GROUP

Bajaj Auto Ltd. – Manufacturers of Scooters, Motorcycles and Three-wheeler vehicles and spare parts.

Bajaj Finance Ltd. – Deals in financial services including hire purchase, financing & leasing.

Bajaj Finserv Ltd – Financial Services.

Bajaj Holdings & Investment Ltd. – Investment company focusing on new business opportunities.

Mukand Ltd. – Manufacturers of stainless, alloy and special steels including carbon and alloy steels.

Bajaj Electricals Ltd. - Manufacturers of electric fans, highmasts, lattice closed towers and poles.

Bajaj Ventures Ltd. – involved in manufacturing and trading of power tools and manufacturing of

houseware and parts.

Maharashtra Scooters Ltd. k- Manufacturers of Scooters.

Bajaj Allianz General Insurance Company Ltd. – General insurance business.

Bajaj Allianz Life Insurance Co Ltd. – Life insurance business.

Bajaj Financial Solutions Ltd. – Distribution of financial products and services.

Bajaj Allianz Financial Distributors Ltd. – Distribution of financial products.

Bajaj Auto Holdings Ltd. – Investment Company.

PT Bajaj Auto Indonesia (PTBAI) - Bajaj Auto venture in Indonesia.

Bajaj Auto International Holdings BV – Bajaj Auto venture in Netherlands.

Hind Lamps Ltd. – Manufactures GLS, fluorescent, miniature lamps and major components, such as glass

shells, miniature and alluminium caps, lead glass.

Mukand Engineers Ltd. – Construction, fabrication and erection of industrial and infrastructural projects

and infotech business.

Mukand International Ltd. – Trading in metals, steel and ferro alloys.

Bajaj Sevashram Pvt. Ltd. – Investment activities.

Jamnalal Sons Pvt. Ltd. – Investment and finance company.

Rahul Securities Pvt. Ltd.

Shekhar Holdings Pvt. Ltd.

Madhur Securities Pvt. Ltd.

Niraj Holdings Pvt. Ltd.

Rupa Equities Pvt. Ltd.

Kamalnayan Investments & Trading Pvt. Ltd.

Sanraj Nayan Investments Pvt. Ltd.

Hercules Hoists Ltd. – Manufactures ‘INDEF’ brand materials handling equipment such as triple spur

gear chain pulley blocks, chain electric hoists and wire rope.

Hind Musafir Agency Ltd. – Travel agency.

Bajaj International Pvt. Ltd. – Export electric fans, GLS lamps, fluorescent tubes, light fittings, etc.

Bachhraj Factories Pvt. Ltd. – Ginning and pressing of cotton bales.

Baroda Industries Pvt. Ltd. – Investment company.

Jeewan Ltd. – Investment company

Bachhraj & Co. Pvt. Ltd. – Investment company.

The Hindusthan Housing Co. Ltd. – Services company.

Hospet Steels Ltd. – Steel plant consisting of Iron Making Division, Steel Making Division and Rolling

Mill Division.

Type Public Company

Industry Conglomerate

Founded 1926

Founder Jamnalal Bajaj

Headquarters Pune, Maharashtra[1], India

Area served Worldwide

Key people Rahul Bajaj, Shekhar Bajaj, Madhur Bajaj, Niraj Bajaj, Rajiv

Bajaj, Sanjiv Bajaj

Products Automobile

Financial Services

Home Appliances

Electrical

Iron and Steel

Insurance

Revenue 425540 million(US$6.7 billion)

Number of

employees

45,000

Subsidiaries Bajaj Auto Ltd., Bajaj Holdings & Investment Ltd., Bajaj Finserv

Ltd, Bajaj Finance Limited, Bajaj Allianz General Insurance

Company Ltd., Bajaj Allianz Life Insurance Company Ltd., Bajaj

Electricals Ltd, Mukand Ltd, Hercules Hoists Ltd, Mukand

Engineers Ltd

Website www.bajajgroup.org//

COMPANY PROFILE

It is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited)

and Allianz SE. Both enjoy a reputation of expertise, stability and strength.

Bajaj Allianz received the Insurance Regulatory and Development Authority (IRDA) certificate

of Registration on 2nd May, 2001 to conduct various businesses (including Health Insurance

business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj

Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.

As on 31st March 2014 Bajaj Allianz maintained its premier position in the industry by

achieving growth as well as profitability. Bajaj Allianz has made a profit before tax of Rs. 587

crores and has become the only private insurer to cross the Rs.100 crore mark in profit before tax

in the last two years. The profit after tax was Rs.409 crores, 39% hithan the previous year.

Type Public listed company

Industry Insurance

Founded 2001

Headquarters Pune, India

Area served Worldwide

Key people Anuj Agarwal (MD & CEO)

Slogan Jiyo Befikar

Website www.bajajallianz.com

ABOUT BAJAJ FINSERV LIMITED

The financial services and wind energy businesses were transferred to Bajaj Finserv Limited (BFS) as

part of the recently concluded demerger from Bajaj Auto Limited, approved by the High Court of

Judicature at Bombay by its order dated December 18, 2007. The demerger was effective on March 31,

2007.[10]

BFS is engaged in life and general insurance businesses through its joint ventures with Allianz SE namely

Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited.

The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two– and three– wheeler

manufacturer and the Bajaj brand is recognized across several countries in Latin America, Africa, and the

Middle East, along with South and South East Asia.

Bajaj Holdings has been registered as a Non–Banking Financial Company (NBFC) under the Registration

No. N–13.01952 dated 29 October 2009 with Reserve Bank of India (RBI). The company is classified as

a Systemically Important Non–deposit taking NBFC as per RBI Regulations.

Bajaj Finserv, a part of Bajaj Holdings & Investments Limited, is an Indian financial services company[1]

[2] focused on lending, asset management, wealth management and insurance.[3][4][5]

The company through its joint ventures and subsidiaries employs over 20,000 employees and has

established a nationwide presence across over 1400 locations. The company is currently engaged in

consumer finance businesses, life insurance, and general insurance and has plans to expand its business

by offering a wide array of financial products and services in India.[6] Apart from financial services, Bajaj

Finserv is also active in wind–energy generation.[7][8]

Bajaj Finserv was ranked among The Economic Times 500 as #119 in 2014.[9]

Type Public Company

Industry Financial Services

Founder Jamnalal Bajaj

Headquarters Pune, Maharashtra, India

Key people Rahul Bajaj, Sanjiv Bajaj

Products Financial Services, Wealth Services, Insurance

Revenue 4774 Cr

Parent Bajaj Holdings & Investments Limited

Subsidiaries Bajaj Finance Ltd., Bajaj Allianz General Insurance Ltd.,Bajaj

Allianz Life Insurance Company Ltd., Bajaj Financial Services Ltd.

Website www.bajajfinserv.in

ABOUT ALLIANZ SE

Allianz SE is a German multinational financial services company headquartered in Munich. Its

core business and focus is insurance. As of 2013, it is the world's largest insurance company, the

11th-largest financial services group and 25th-largest company according to a composite

measure byForbes magazine,[3] as well as the largest financial services company when measured

by 2012 revenue.

Its Allianz Global Investors division ranks as a top-five global active investment manager,

having €1,770 billion of assets under management (AuM), of which €1,131 billion are third-

party assets (as of 2010-09-30), with specialized asset managers including PIMCO (bonds),

RCM (equities) and Degi (real estate).

Allianz sold Dresdner Bank to Commerzbank in November 2008.[4] As a result of this merger,

Allianz gained a 14% controlling stake in the new Commerzbank.

In India Allianz primarily operates through Bajaj Allianz Life Insurance Company & Bajaj

Allianz General Insurance Company Limited, a joint venture between Allianz and Bajaj Finserv

Limited. Bajaj Allianz has around 1,200 branches across India and offers services including unit-

linked, traditional, health, child and pension policies.

Industry Financial services

Founded 1890

Headquarters Munich, Germany

Area served Worldwide

Key people Michael Diekmann (CEO)

Helmut Perlet(Chairman of thesupervisory board)

Maximilian Zimmerer (CFO)

Products Insurance, banking, asset management

Revenue €122.3 billion (2014)[1]

Operating income €10.402 billion (2014)[1]

Profit €6.603 billion (2014)[1]

Total assets $624.95 billion (end 2013)[1]

Total equity $46.56 billion (end 2013)[1]

Number of

employees

171,340 (end 2013)[1]

Website www.allianz.com

VISION

To be the first choice insurer for customers

To be the preferred employer for staff in Insurance industry.

To be the number one insurer for creating shareholder value

To aspire to be a world class organization

To encourage organizational transparency

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

Customer service of the highest order.

Value for money for customers.

Professionalism in carrying out business.

Innovative products to cater to different needs of different customers.

Use of technology to improve service standards.

Increasing market share

VLAUES

Security

Providing long term financial security to our policy holders will be our

constantendeavor. 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

tomanage 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

ACHIEVEMENT

Bajaj Allianz Life Insurance has been awarded the SKOCH Financial InclusionAward 2011 for

its execution of financial inclusion initiatives through life insuranceacross India. Financial

inclusion is the delivery of financial services at affordablecosts to low income segments of

society.

The award recognizes Bajaj Allianz's micro-insurance product catering to ruralmarkets,

Sarve/Swayam Shakti Suraksha (SSS). A flexible and simple plan, SSSoffers rural customers

insurance protection against unforeseen events and anopportunity to save systematically

Bajaj Allianz has received “iAAA rating, from ICRA Limited, an associate of Moody’s Investors

Services, for Claims Paying Ability. This rating indicates highestclaims 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 the General Insurance Company of the

Year award by Asia Insurance Review

PRODUCTS

Traditional Plans

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

hasadditional benefits like Waiver of Premium, Accidental Death Cover & Disability Cover

andCritical Illness Cover & Hospital Cash Cover

.

Super Saver:-Is a regular premium endowment plan, which enables the policyholder tosave an

amount regularly for the future. The plan also has an extra benefit of GuaranteedAdditions to the

sum assured, at the end of each policy year.

Save Care Economy SP:-A 10year single premium endowment plan which providessavings with

high risk cover. This plan also participates in the company’s profits. It is a highrisk 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

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 pureTerm Plan

which provides Hospital Cash Benefit.

New Risk Care:-Is a plan with regular/single premium payment options. This plan comeswith

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.

Protector:-Is a mortgage reducing term assurance plan. At a low premium amount you cansecure

your family from the burden of paying the Home Loan in your absence. You get anoption of both

Regular Premium payment and single premium payment. Also there is anoption of Joint life

availability, where the co-applicant can be also covered in the plan.

Unit Linked Plans (Regular premium & Single Premium)

A) Regular Premium

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

New Gain Super:Is a flexible unit linked plan with partial & full withdrawals after 3years. It

offers additional benefits like UL Accidental Death Benefit and UL DisabilityBenefit, UL

Critical Illness Benefit and UL Hospital Cash Benefit and 4 funds to choose from& flexibility to

pay top-up any time.

New Unit Gain Plus:This plan gives you 5 investment funds to choose from. With theoption of 3

free switches every year. Also partial or full withdrawal after 3 years. It planoffers flexibility to

meet ones changing lifestyle and insurance needs. It offers guaranteed lifecover.

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 choiceof 7 funds to

invest in & also a guaranteed life cover. Additional benefit riders are alsoavailable with this plan.

New Family Gain-R:It is Life Insurance Plan that can take care of all the changingrequirements

of the family. It has maximum flexibility, so that you are provided for all thechanging needs you

may have.

Young Care:This investment plan is a Gift of a lifetime to a loved one. It offers aguaranteed Sum

Assured and continued pay premium on your behalf, in case of your unfortunate death.

Young Care Plus:It offers the same benefit as the above plan but in addition offers acritical

illness benefit

B) Single Premium

New Unit Gain Premier SP:It is a unique insurance cum investment plan as it startsinvesting

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.

New Unit Gain plus SP:Is a single premium plan that gives you 98% allocation withguaranteed

life cover. Minimum premium is Rs. 10,000 only. A choice of 5 investment fundsto 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) Retirement

New Unit Gain Easy Pension plus RP:A unit linked pension plan without life cover. Ithas 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 openmarket option: Purchase

immediate annuity from Bajaj Allianz Life Insurance or any other life insurer.

New Unit Gain Easy Pension plus SP: A unit linked pension plan without life cover. Ithas single

premium payment mode. An option to take a tax-free lump sum up to 33% of SumAssured. You

can invest in any 6 funds. With 3 free switches every year. Also open marketoption: Purchase

immediate annuity from Bajaj Allianz Life Insurance or any other lifeinsurer.

Swarna Vishranti:Is a plan with an option to take a tax-free lump sum up to 33% of SumAssured

+ Accrued Bonuses. Open Market option: Purchase immediate annuity from BajajAllianz Life

Insurance or any other Life Insurance Company. And also additional benefitscan be availed of.

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

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 Plans

Housewives:Housewives need to safeguard their financial independence. There areadditional

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.

Working Women:-This plan helps the working women to protect them self, their familyand plan

for their future. The insurance, investment, pension and health products have beenspecially

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 likeeducation,

marriage or even to start a business. It has the benefit of low premium rates.

Health Plans

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)

Family Care First:It is a plan for the whole family. This unique hospitalization plan givesyou

health cover for your entire family. You can secure your family with one plan.

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 policyterm of 3 years with

extra benefits like day care treatment and pre and post hospitalization treatment

Micro Insurance Plans

Alp Nivesh Yojana:An endowment plan with Life cover and Maturity benefit equal tosum

assured + vested bonus.

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

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

AREA OF OPERATION

Bajaj 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 th

eoffices 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 hasimplemented a

Quality Initiative across its offices which regularly measures the effectivenessof its processes,

reduces leakage and contributes to increasing revenues, managing costs andimproving service

quality. The company has also launched a completely revamped websitewith a big focus on

customer education and knowledge. The company has continued tostrengthen its presence in the

virtual world, both for creating awareness and facilitating self-service. Your company continues

to explore strategic outsourcing partnerships with a focuson handling volumes and reaping

economies of scale. The combination of outsourcing partnerships and technology implemented

by the company is assisting in improvement

COMPETITORS

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 21 bancassurance

partners.ICICI Prudential was the first life insurer in India to receive a National

Insurer FinancialStrength rating of AAA from Fitch ratings. ICICI prudential is

working on the base of five core values-

Integrity

Customer first

Boundary less

Ownership

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

F i n a n c e   C o r p o r a t i o n   L i m i t e d ,   I n d i a ' s   l e a d i n g   h o u s i n g   f i n a n c e   i n s t i t u t i o n  

a n d   a   G r o u p 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 wasRs. 2, 856 crores and new business premium income was Rs. 1,624

crores. The company hascovered over 8, 77,000 lives year ending March 31, 2007.

HDFC standard is having 1000 advisors in 11 towns

Reliance life insurance:

Reliance Life Insurance Company Limited is a part of Reliance C a p i t a l L t d . o f

t h e R e l i a n c e - A n i l D h i r u b h a i A m b a n i G r o u p . R e l i a n c e C a p i t a l i s o n e

o f   India’s leading private sector financial services companies, and ranks among the top 3

privatesector 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. RelianceCapital Limited (RCL) is a Non-Banking Financial Company

(NBFC) registered with theReserve Bank of India under section 45-IA of the Reserve Bank

of India Act, 1934.

Aviva life insurance:

Aviva is UK’s largest and the world’s fifth largest insurance Group. Itis 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'so l d e s t ,   a n d   l a r g e s t   G r o u p   o f   c o m p a n i e s .   A n d   c o u n t r y ' s   l e a d i n g  

p r o d u c e r   o f   t r a d i t i o n a l healthcare products. In accordance with the government

regulations Aviva holds a 26 per centstake in the joint venture and the Dabur group

holds the balance 74 per cent share.

Avivahas 193 Branches in India (including rural branches) supporting its 

distribution network.T h r o u g h   i t s   B a n c   a s s u r a n c e   p a r t n e r   l o c a t i o n s ,   A v

i v a   p r o d u c t s   a r e   a v a i l a b l e   i n   m o r e than 2,795 locations across India. Aviva

has a sales force of over 30000 financial planning advisors.

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 T h e J a m m u

a n d   K a s h m i r   B a n k ,   M . P a l l o n j i   a n d C o P r i v a t e   L i m i t e d a n d   o t h e r   p r i v a t e

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 600locations through its bank partners and company-owned

offices. MetLife has more than3 2 0 0 0 ,

F i n a n c i a l   A d v i s o r s .   I t   h a s   a p p r o x i m a t e l y   7 0   m i l l i o n   c u s t o m e s   a l l   o v e r  

w o r l d . 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

Bharti Axa life insurance:

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 Axaworld leader in financial

protection and wealth management. The joint venture company hasa 7 4 % s t a k e f r o m

B h a r t i a n d 2 6 % s t a k e o f A x a . T h e c o m p a n y s t a r t e d i t s o p e r a t i o n s

i n December 2006. Now company is having over 5200 employees across over 12

states in thecountry. Company is working on the base of five core values-

Professionalism

Innovation

Team Spirit

Pragmatism

Integrity

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). TheTata 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 AIGLife Insurance Company started to

operate its business in India on April 1, 2001. Tata AIG ishaving 3000 advisors all over India.

Birla sun life insurance:

Birla Sun Life Insurance Company Limited (BSLI) is a jointventure 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.

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%.

TheVenture has an initial paid up capital of INR 325 crores which will further

increase in linewith our expansion plans. 

LITERATURE REVIEW

Bajaj Allianz Life Insurance sells 4 lakh shares of Mastek

MUMBAI: Private sector life insurance firm, Bajaj Allianz Life Insurance Company, today

offloaded nearly four lakh shares of infotech solutions company, Mastek Ltd for Rs 5

crore.According to information available with the stock exchanges, Bajaj Allianz Life Insurance

sold 3.99 lakh shares of Mastek through bulk deals.The shares were sold on an average price of

Rs 125 valuing the transaction at Rs 4.98 crore.Meanwhile, Morgan Stanley Asia (Singapore) Pte

bought three lakh shares of Mastek for Rs 3.75 crore.Earlier in December, Bajaj Allianz Life

Insurance had sold 4 lakh shares of Mastek for an estimated Rs 6.08 crore in open market

transactions.As of March quarter, Bajaj Allianz Life Insurance held 8.69 lakh shares or 3.53 per

cent stake in Mastek.Shares of Mastek rose 1.26 per cent to settle at Rs 123.70 apiece on the

BSE.

Bajaj Allianz Life ties with Policy Bazaar aims 20% online market

GURGAON: Private insurer Bajaj Allianz today tied up with online financial services provider

PolicyBazaar.com to capture online life insurance policy market.

"We have tied up with Policy Bazaar, as it has a proven track record in the online insurance sales

space. Also, with Policy Bazaar's expertise, we are confident of witnessing growth in this

segment," Anuj Agarwal, MD and CEO, Bajaj Allianz Life Insurance."We are targeting about

10-20 per cent share from the online space," he said, adding that online insurance market is

poised to see a substantial growth in the coming years.India's online insurance market is of about

Rs 700 crore, of which about Rs 300 crore is of life insurance business, as per industry

estimates.Bajaj Allianz will launch a total of six products from PolicyBazaar.com platfrom.Bajaj

Allianz is already in the online insurance market with its products iSecure, Future Gain, Life

Long Assurance and several other products. These products would now also be available on

PolicyBazaar.com.The overall life insurance new annualised business is likely to grow to Rs

1.25-1.50 lakh crore by 2020, and a large portion of this growth is expected to come from online

sales, said Yashish Dahiya, CEO and Co-Founder, PolicyBazaar.com.

Bajaj Allianz Life Insurance launches Special Revival Campaign

PUNE: Bajaj Allianz Life Insurance has launched a Special Revival Campaign spanning over 70

days to help policyholders renew their lapsed Life Insurance policies. This campaign which

started on the 18th Jan 2014 and will run up to 31st March 2014 offers to renew lapsed policies

that fall under their prescribed revival period. Special benefits have been extended to the Policy

Holders under this campaign like 50% waiver of interest amount on Traditional Policies. The

Company has relaxed its underwriting norms by simplifying the DGH (Declaration of Good

Health) form and waving medicals for the policyholder's whose age is up to 55 years.

Ms. Jasleen Kohli, Head - Operations, Bajaj Allianz Life Insurance said, "Life Insurance is one

of the most important risk protection tools, especially during uncertain times. We launched this

campaign to reiterate the importance of renewing one's life insurance cover and help our

policyholders revive their lapsed policies. To facilitate the same, we have relaxed our

underwriting norms and have extended special benefits."

Commenting on the importance of keeping policy in force, Ms. Kohli added, "Revival of life

insurance policy gives the policyholder crucial benefits such as continuance of life cover, tax

advantages, and other policy benefits. It is, therefore, in the best interest of the customer to keep

their policy in force."

This scheme is being communicated to the customers and sales force via SMS, Calls and Letters

etc. The details and the information on the campaign are also available on the Company's

website. This scheme is applicable to all individual Traditional and Unit Linked policies.

Bajaj Allianz Life Insurance pays claims worth Rs 651 crore in FY14

MUMBAI: Bajaj Allianz Life Insurance today said it has settled more than 1 lakh claims during

the last financial year and paid claims worth around Rs 651 crore. "We focused on digitising the

claim settlement process and started image-based documentation at various branch offices. This

helped claimants get faster response," Bajaj Allianz Life Insurance Head (Claims) P Ravi

Kutumbarao said in a release here.

The private insurer settled more than 1 lakh claims, both individual and group, paying out Rs 651

crore, during the just concluded fiscal, it said. The claim settlement ratio was 97.45 per cent in

FY14. About 77 per cent claim proceeds were settled through electronic mode directly into the

claimants' bank account.

Claims arising out of natural calamities like the last year's floods in Uttarakhand and Himachal

Pradesh were settled with minimum documents and in just two days of receiving the required

documents, the release said. The company received a total of 35 claims (including accidental

benefit cases) related to floods in Uttarakhand and Himachal Pradesh and paid more than Rs 73

lakh.The Pune-based company is a joint venture between between Bajaj Finserv and German

insurer Allianz SE.

Standard Chartered’s deal signals end to Bajaj Allianz tie-up

MUMBAI: Standard Chartered Plc's tie-up with Bajaj Allianz has virtually ended after the UK-

based bank last week signed an agreement with Prudential to sell its insurance products in more

markets, including India.

In India, a bank can sell the products of only one life, one non-life and one health insurance

company . This implies that Standard Chartered will have to terminate its pact with Bajaj Allianz

to honour its new commitment. Standard Chartered and UKbased insurer Prudential entered into

a 15-year agreement on March 14.

Under the terms of the new agreement, a wide range of Prudential's life insurance products will

be exclusively distributed through Standard Chartered branches in nine markets — Hong Kong,

Singapore, Indonesia, Thailand , Malaysia, the Philippines, Vietnam, India and Taiwan —

subject to applicable regulations in each country. In India, the lender will sell the products of

ICICI Prudential Life Insurance.

The pact, which is to come into effect from July 1, is subject to regulatory approvals. The break-

up with Bajaj, however, is unlikely to be smooth. "We have an existing agreement and any

change will have to be taken after regulatory approvals ," said a senior executive of Bajaj Allianz

Life Insurance, requesting anonymity. The issue could get sticky if the Indian government and

the insurance regulator decide to make it mandatory for all banks to sell insurance products of

multiple companies.

The insurance broking model, which has the backing of the Insurance Regulatory and

Development Authority , is being debated. In the first nine months of the current financial year,

Bajaj Allianz Life Insurance reported a 1.77% drop in new business income . About 10-12 % of

Bajaj Allianz's income was from selling policies through Standard Chartered Bank.

In India, insurers that are not sponsored by banks are struggling to grow their business ,

especially after the regulator capped the commission that can be paid to agents. In 2012-13 ,

bancassurance accounted for 40% of the total income for private sector companies, up from 35%

in the previous year.

Bajaj Allianz to launch new life insurance products

MUMBAI: Bajaj Allianz Life Insurance plans to launch individual and group insurance plans

under the new product guidelines.

The company plans to launch two individual life insurance plans, Save Assure and Invest Assure

with a guarantee element and one whole life plan Life Long Assure, Bajaj Allianz Life said in a

release issued here today.

"We are launching three new insurance plans, which will cover the needs of individuals at their

different life stages," Anuj Agarwal, Bajaj Allianz Life Insurance Managing Director & CEO,

said.

"We have plans with a guarantee element, with a feature of premium payment for limited period

and extended cover for few more years. We will be launching a suite of online and channel

specific insurance plans by end of Jan 2014," he said.

The plans also offer flexibility to choose the policy and payment term and come with an option

to take policy benefit in monthly installments.

Save Assure is a traditional endowment plan that protects finances by providing guaranteed

returns with policy terms of 15 and 17 years, premium payment terms of 10 and 12 years, no

premiums payable in the last five policy years and guaranteed return of 115 per cent of the sum

assured, the company said.

Invest Assure is a traditional endowment plan that assures protection to the consumer and his

family by providing financial benefits, it said.

The plan has two life cover variants - Invest Assure Gold and Silver - with key features like

option to choose life cover, which is 1.25 or 2 times of the sum assured. It also offers compound

reversionary bonus and terminal bonus, limited premium payment terms and option to take

policy benefit in monthly installments.

Bajaj Finserv's Q2 net jumps 28% to Rs 277 cr

MUMBAI: Financial services company, Bajaj Finserv has reported 28 per cent increase in net

profit at Rs 277 crore for the July-September quarter, led by growth in its lending and general

insurance businesses.

The company had posted a net profit of Rs 217 crore in the same quarter of last fiscal, 2012-13.

Growth in the second quarter (2013-14) was led by Bajaj Finance where we saw a 30 per cent

growth in net profit and general insurance business which witnessed 45 per cent increase in

profit after tax," said S Sreenivasan, president finance at Bajaj Finserv.

Bajaj Finserv Ltd is in life insurance business through its subsidiary Bajaj Allianz Life

Insurance, in general insurance business through Bajaj Allianz General Insurance and in the

lending business through Bajaj Finance.

Finserv's consolidated gross revenue stood at Rs 4,056 crore in the July-September quarter as

against Rs 3,721 crore in the same period last year, a growth of 9 per cent.

The company's income from operations grew 30 per cent to Rs 1,309 crore in Q2, 2013-14 as

against Rs 1,008 crore in the year-ago period, the company said in a release.

Bajaj Finance's net profit increased by 30 per cent in the July-September period to Rs 167 crore

as against Rs 129 crore in the same period last year.

Its total income in Q2 FY'14 rose 31 per cent to Rs 964 crore as compared to Rs 737 crore in the

year-ago period.

Bajaj Finance assets under management (AUM) stood at Rs 19,829 crore as on September 30

compared to Rs 17,517 crore as on March 31, 2013, the release said.

IRDA slaps fine of Rs 3.10 crore on Bajaj Allianz Life

NEW DELHI: Insurance regulator IRDA today imposed a hefty penalty of Rs 3.10 crore on

Bajaj Allianz Life Insurance for violation of various norms, including those related to early-death

claims and group insurance.

"...as directed under the respective charges, the penalty of Rs. 3.10 crore shall be remitted by the

life insurer (Bajaj Allianz Life) by debiting shareholders' account...," the Insurance Regulatory

and Development Authority (IRDA) said in an order. The fine has to be paid within 15 days, it

said.

The regulator imposed a fine of Rs 78 lakh for rejecting certain early-death claims as un-

concluded contracts. These relate to cases where insured persons died after the date of

commencement of risk but before receiving the policy document.

It noted that this was a violation of File and Use Guidelines. The life insurer repudiated 78 cases

during 2010-11 on grounds of un-concluded contracts.

"While noting the submissions that the life insurer has decided to re-open all the repudiated cases

on grounds of un-concluded contracts and also discontinued the said practice, it is considered

that the actions of the insurer are not fair and against the interests of the policyholders..." it said.

It added that the insurer is warned against wrongful claim practices and directed to ensure

settlement of claims in fairness, both as per terms and conditions of the policy contract and as per

regulations.

Bajaj Allianz also violated norms by entering into referral arrangements with entities that were

not licensed to act as corporate agents or insurance intermediaries for the sale of group insurance

products, the regulator said.

"By entering into referral agreements and making payments to group policy holders, the insurer

has grossly violated Clause B-2 of Group Guidelines," IRDA said.

Therefore, it said, under powers of the Act, a penalty of Rs 70 lakh is levied on the life insurer

MARKET SHARE OF INSURANCE COMPANIES

SWOT ANALYSIS

Strengths

Bajaj Allianz is the largest private player in the insurance industry in India.

Excellent services.

Customization of Products as per customer’s needs.

Brand Image.

Business Experience.

Strong Financial Base.

Innovative products, Technology, organization culture and climate.

The company has a large network of branches which is helpful to customer for the payment.

Weaknesses

Lot of competitors are in the market offer same product by the title difference in the premium

and offerings.

Target only higher income group whereas other companies are trying to catch middle-lower level

people.

Higher premiums as compared to the other companies

Clients face problems to get insured due to large number of formalities.

High targets for financial advisors and for the sales department.

Opportunities

Huge market is literally untapped. Out of estimated 320 million insurable markets only 20% of

the population is insured.

In a conservative society of India where people are more inclined towards risk free investments

such as Bank FD’s and savings rather than equity and high risk investments insurance offers the

best of both worlds – The security with high returns. So there exists high potential for insurance

company like BAJAJ ALLIANZ.

In the pension field where people want good life after their retirement.

Indian people are more emotional towards their children that’s why children plans are selling like

hot cakes.

Health insurance and pension Schemes, an estimated market potential of approximately $15

billion.

Threats

Weak perception of private players in the minds of Indian people due to frequent financial

scams.

Large number of insurance players.

Players like ICICI PRUDENTIAL and Birla sun life with low premium for the similar plans.

Entry of many other private companies with equally strong experience and financial strength of

foreign partners making the competition difficult and saturating the urban markets.

For the Insurance sector Government set the authority that is IRDA (Insurance Regulatory and

Development Authority) which is undertaken to track record of all the companies and change

rules day by day more rigid which is very difficult for the companies.

Financial analysis

Profit and loss account

As on 31 march 2013-14

BALANCE SHEET

AS ON 31 MARCH 2014

It wrote new business of Rs. 2,592 crores during financial year 2013- 14 compared to Rs.2,988

crores in the previous year ie 2012-13

The gross premium written, which includes renewal premiums in addition to new business

premiums, for the financial year 2013-14 was Rs. 5,843 crores, as compared to Rs. 6,892 crores

in the previous year

Company’s market share of new business premium was 8.8% for 2013-14, as compared to 9.7%

in the year 2012-13.

Unit linked premiums contributed 17.8% of your Company’s new business premiums in 2013-

14, compared to 18.9% in the previous year

Traditional individual premiums constituted 36.6% of overall new business premiums in

financial year 2013-14 as compared to 36.0% in financial year 2012-13.

Despite most of the old unit-linked policies having completed their mandatory three year lock-in,

surrenders for the year at Rs.7,250 crores were 15% lower than the previous year figure of

Rs.8,505 crores.

Your Company earned a profit in the Policyholders’ account, of Rs. 649 crores during 2013-14,

as compared to a profit of Rs. 862 crores in the previous year. After the distribution of current

year’s surplus of Rs. 639 crores (Previous Year Rs. 832 crores), transfer of Rs. Nil (Previous

Year Rs.85 crores) from the Funds for Future Appropriation and the investment income from

shareholders’ funds, the shareholders’ profit after tax was Rs. 1,025 crores (Previous Year Rs.

1,286 crores)

Your Company has accumulated profits included under Reserves and Surplus, of Rs. 4,660

crores as at 31st March 2014.

The total funds under management as on 31st March 2014 were Rs. 38,780 crore

The total investments under management of your Company showed a marginal increase of 2.1%

in the year.

The total funds infused by the shareholders in the Company remains Rs. 1,211 crores.

The net worth of your Company as at 31stMarch, 2014 was Rs. 5,871 crores as against Rs. 4,844

crores at 31stMarch 2013.

Your Company had no accumulated losses as at 31stMarch 2014.

. The solvency ratio as at 31stMarch 2014 stands at 733.5% which is well in excess of the

required solvency margin of 150%.