A Project Report on Bharti-Axa by Sushobhan Birtia

8/3/2019 A Project Report on Bharti-Axa by Sushobhan Birtia

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A PROJECT REPORT ON

ANALYSIS OF BHARTI AXA RANGE OF SERVICES

SUBMITTED BY:

SUSHOBHAN BIRTIA

Roll No-56329UT09004

BBA 5th SEM

UNDER THE GUIDANCE OF

MR.MALAYA MOHAPATRA MR.SHARADA

PRASAD SAHOO

AGENCY DEVELOPMENT MANAGER FACULTY

(MARKETING)

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INTERSCIENCE DEGREE COLLEGE, BHUBANESWAR

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ACKNOWLEDGEMENT

If words are considered to be signs of gratitude then let these words convey the very same, my sincere

gratitude to Bharti AXA Life Insurance for providing me an opportunity to work with Bharti AXA and

giving necessary directions on doing this project to the best of my abilities.

I am highly indebted to Mr. Malaya Mohapatra (ADM) and company project guide

Mr. Satyanath Satpathy (MOA) who has provided me the necessary information and also

for the support extended in the completion of this report and there valuable suggestion and comments

on bringing out this report in the best way possible.

I also thank Mr. Sharada Prasad Sahoo, who has supported me with the valuable

insights into the completion of this project.

I would like to extend my sincere thanks to all executives of Bharti-AXA for their kind help and

cooperation during the entire course of the project.

Sushobhan Birtia

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DECLARATION

I hereby declare that this work entitled ANALYSIS OF BHARTI-AXA RANGE OF

SERVICES--A project on Bharti-AXA submitted by me to Interscience Degree College under

UTKAL University, Bhubaneswar for the degree of bachelor in business administration is my work

carried out under the guidance of mentorMr.Sharada Prasad Sahoo, and company guide

Mr. Malaya Mohapatra (ADM)and Mr. Satyanath Satpathy (MOA). This

report neither full nor in part has ever been submitted for award of any other degree of either this

Institution or any other University.

Sushobhan Birtia

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CERTIFICATE:

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OFFER LETTER:

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3.2.Data

Collection

..39

3.3.Limitations of the

Study..41

4. DATA ANALYSIS: -

..42-

60

5. FINDINGS: -

..61

6. CONCLUSION: -

62

a) Bibliography

63

b) ANNEXURE-

Questionnaire.6

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EXECUTIVE SUMMARY :

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This project was carried out in the MARKETING/HR department of BHARTI AXA Life

insurance co. Bhubaneswar. Bharti AXA Life insurance is only concern with life insurance and

General insurance.

The objective of this project is to study the entire ANALYSIS OF BHARTI-AXA RANGE OFSERVICES processes at Bharti AXA Life insurance. The Marketing cum HR Department of

Bharti AXA Life insurance carries out both these functions quite effectively. Hence, the range of

services is studied thoroughly and some inferences accordingly. The data and information

collected is with respect to working procedure specifically regarding research analysis, the data

referred for this study is for the year 2007 - 11. I have applied the concept and gained knowledge

learned during the course in at CMRD In practical business situation and understood these

concepts in better way. The research work really has poured of immense learning for me. I

would like to thank whole heartedly to Bharti AXA and CMRD, for giving me this exposure.

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1: INTRODUCTION:

Why Insurance sector?

The service industry is one of the fastest growing sectors in India today. The upcoming sectors

which are really showing the graph towards upwards are - Telecom, Banking, and Insurance.

These sectors really have a lot of responsibility towards the economy.

Amongst the above-mentioned areas insurance is one sector, which took a lot of time in

positioning itself. The insurance business of non-life companies was not much in problems but

the major problem was with life insurance. Life Insurance Corporation of India had monopoly

for more than 45 years, but the picture then was completely different. Previously people felt that

Insurance is only for classes not for masses but now the picture is vice-versa.

The formation of IRDA, entrance of private life insurance companies into India with one foreign

partner, compulsory training of Insurance agents etc. developments started to take place. Andthis was the time when these companies started searching for proper channel partners who can

help the organization in expanding its network and business in India.

After the Insurance Regulatory and Development Authority Act have been passed there has been

establishment of many private insurance companies in India. Previously there was a monopoly

business for Life Insurance Corporation of India (L.I.C.) who was the only life-insurance

company for the people till 2000. L.I.C. still holds 71.4% of the market share in 2006.

But after the introduction of private life insurance companies there is a great competition in

Indian market now. Everyone is trying to capture the fresh market here and penetrate it with

aggressive marketing strategies.

In India only 25% of the population has life insurance. So Indian life-insurance market is the

target market of all the companies who either want to extend or diversify their business.

Insurance is such industry where labour turn over is the maximum than that of any other

industry hence there is lot of scope for HR to work in recruitment and selection process.

On the whole Bharti AXA life insurance is a good place to work at. Every new recruit is provided

with extensive training on unit linked funds, financial instruments and the products of Bharti

AXA.This training enables an advisor/sales manager to market the policies better. The company

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should try to create awareness about itself in India. In the global market it is already very popular.

With an improvement in the sales techniques used, a fair bit of advertising and modifications to the

existing product portfolio, Bharti AXA would be all set to capture the insurance market in India as

it has around the globe.

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1.1: COMPANY PROFILE:

Bharti AXA Life is a life insurance player that was started in 2006. It brings together strongfinancial expertise of the Paris-headquartered AXA Group, and Bharti Enterprises - one ofIndia's leading business groups with interests in telecom, agricultural business, financialservices, and retail. The joint venture has a 74% stake from Bharti and 26% stake from AXAAsia Pacific Holdings Ltd. (APH) .The Company launched national operations in December2006.

Bharti Enterprises is one of Indias leading business groups with interests in telecom, agribusiness, insurance and retail. Bharti has been a pioneering force in the telecom sector withmany firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one ofIndias leading private sector providers of telecommunications services with an aggregate of 60million customers, spanning mobile, fixed line, broadband and enterprise services. Bharti Airtelwas ranked amongst the best performing companies in the world in the Business Week IT 100list 2007. Bharti Teletech is the countrys largest manufacturer and exporter of telephoneterminals. Bharti has a joint venture with ELRo Holdings India Ltd. Field Fresh Foods Pvt.Ltd - for global distribution of fresh fruits and vegetables. Bharti also has a joint venture -Bharti AXA Life Insurance Company Ltd. - with AXA, world leader in financial protection

and wealth management. Bharti has recently forayed into the retail business under a companycalled Bharti Retail Pvt. Ltd. It also has a joint venture Bharti Wal-Mart Private Limited with Wal-Mart, for wholesale cash-and-carry and back-end supply chain managementoperations.

AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse

geographically, with major operations in Western Europe, North America and the Asia/Pacific

area. AXA had Euro 1,315 billion in assets under management as of December 31, 2006. For

full year 2006, IFRS revenues amounted to Euro 79 billion, IFRS underlying earnings amounted

to Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million. The AXA ordinary

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share is listed and trades under the symbol AXA on the Paris Stock Exchange. The AXA

American Depository Share is also listed on the NYSE under the ticker symbol AXA.

We undertook an in-depth analysis wherein we identified the notion of preference was totallyrelated to the trust granted to various names in insurance and financial services. The level oftrust is very inadequate today, regardless of the brand considered. This is because the perceptionof consumers is that we are all evolving only in "a world of promises." And this is what we haveto redefine.

Beyond promises... proof

We don't want to make promises any more. Instead, we want to demonstrate our ability torespond to client needs with real and tangible proof and, in so doing, to establish an authentic

relationship of trust with our clients.

These are the three attitudes that clients most expect from an insurance and financial servicescompany in exchange for their vote of confidence. These three attitudes stood out from theothers in the consumer research we conducted across markets, regardless of their level ofmaturity.

They are at the heart of our actions and our commitments to clients.

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1.2: CORPORATE PROFILE:

Bharti AXA Life Insurance is joint ventures between Bharti, one of Indias leading businessgroups with interests in telecom, agree business and retail, and AXA, world leader in financialprotection and wealth management. The joint venture company has a 74% stake from Bharti and26% stake of AXA.

The company launched national operations in December 2006. Today, company has over 5200employees across over 12 states in the country. Our business philosophy is built around thepromise of making people "Life Confident".

As company expand our presence across the country to cater to your insurance and wealthmanagement needs with our product and service offerings, company continue to bring 'lifeconfidence' to customers spread across India. Whatever your plans in life, you can be confidentthat Bharti AXA Life will offer the right financial solutions to help you achieve them. Companyis working on the base of five core values-

Professionalism

Innovation

Team Spirit

Pragmatism

Integrity

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50 Million (500 Lakhs Customers)

130,000 Employees

72 Billion Euros (Rs. 4, 16,300. Cores) Revenue

869 Billion Euros (Rs.50 24, 500.Crores) Asset under Management

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.

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BHARTI ENTERPRISESBHARTITELETECH

BHARTITELECOMBHARTIFOOD

BHARTISEYCHELLESBHARTI

TELESOFTTELETECHSERVICES

BHARTITELEVENTURE


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Retaining the best talent in India.

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Our Philosophy: Available , Reliable and Attentive to our customers needs

Vision:

To be a leader and the preferred company for financial protection and wealth management in

India.

Bharti AXA Life Insurance Growing Presence:

Number of cities - 111

Number of offices - 163

Number of Agents - 30,000 PLUS

.

Promoter's Strength:

Bharti Enterprises is one of Indias leading business groups with interests in telecom; agree

business, insurance and retail. Its flagship telecom brand 'Airtel', has over 60 million customers

across the length and breadth of India.

AXA Group is worldwide leader in Financial Protection. AXA is among Fortune Global 15

companies having 120,000 employees and is represented in over 60 countries worldwide.

Largest Insurer:

AXA Group has 120,000 employees and is represented in over 60 countries worldwide

Service Excellence:

Company stand by three main commitments to our customers and agents, effective local service,

professional expertise, and professional code of ethics. Company aim to build close and lasting

relationships by offering expert advice, providing a supportive environment and a full range of

adapted solutions.

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Information Technology Driven:

Our commitment and continuous investment in Information Technology enables the Company to

provide unparalleled customer service.

Bharti AXA Club Member:

Become a Bharti AXA Club Member and enjoy additional benefits.

Bharti AXA's Support for Our Agents:

Company is looking for bright, self-motivated people who want to build a successful career in

insurance sales and consultancy. We offer good financial rewards and recognition,comprehensive training, excellent back-up and the full support of a world-class organization.

Bharti-AXA fund returns are above the median returns of the Industry*:

3Mth RANK 1Yr. RANK 2Yr. RANK

Bharti-

AXA Grow

Money 8.92% 3 57.48% 6 3.31% 4

Bharti-

AXA

Pension

Grow

Money8.96% 2 57.62% 5 3.46% 3

The equity fund performance for all periods for the above funds is within the top six in the

industry.

*Published data- Inconversation Newsletter

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Bharti-AXA offers a range of innovative products to cater to the insurance and wealth

management needs of our customers.

INDIVIDUAL PLANS:

PROTECTION: Bharti-AXA Life ELITE Secure

Bharti-AXA Life Secure Confident

Bharti-AXA Life Family Income Secure

Bharti-AXA Life Protect Plus

Bharti-AXA Life Premium Waiver Rider

WEALTH CREATION WITH PROTECTION:

CHILD PLANS:1. Bharti-AXA Life Bright Stars Edge

2. Bharti-AXA Life Future Champs

3. Bharti-AXA Life Power Kid Insurance Plan

GURANTEED PLANS:1. Bharti-AXA Life Save Confident

2. Bharti-AXA Life True Wealth

3. Bharti-AXA Life Aajeevan anand

4. Bharti-AXA Life Monthly Income Plan OTHER MARKET LINK PLANS:1. Bharti-AXA Life Wealth One

WEALTH: Bharti-AXA Life Triple Health Insurance Plan

Bharti-AXA Life Easy Health

RETIREMENT: Bharti-AXA Life Wonder Years Retirement Plan

GROUP PLANS: LIFE INSURANCE: Bharti-AXA Life Shield

Bharti-AXA Life Sanjeevani

CREDIT PROTECTION:

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Bharti-AXA Life Credit Secure

Bharti-AXA Life Mortgage Credit Shield

Bharti-AXA Life Credit shield

Bharti-AXA Life Premier Protect Home Shield

HEALTH: Bharti-AXA Life Swasthya Sanjeevani

Investment Philosophy:

Our investment philosophy is carved out from stringent and robust investment policies.Riskmanagement is an integral part of our investment processess.The compan7y has welldefined riskpolicies and process covering both portfolio and procss risks .Our equity investments arecurrently made primarily in large cap stocks (>85%), as large cap stocks are less volatile thanmid capor small cap stocks.

The debt portfolio of the company is currently inovested only in highest credit qualit5y assetsi.e. Government of India securities and securities issued by AAA rated companies.A reasonable

level of liquidity is maintained with the respective funds so as to enable smooth redemptionprocesses on account of switches, claims etc.

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Organization Structure:

Works through many channels marketing, human resource, finance, information technology,

Marketing wing is divided into -

1) DIRECT SALES FORCE Have two tired salaried adviser force to target the large and

diverse Bharti Airtel customer base.

2) AGENCY-focus on building a highly productive agency force. This wing needs high quality

of training, and high quality recruitment.

3) BANK ASSURANCE- planes for developing strategic partnership with quality banks.

4) CORPORATE AGENCY AND BROKING CHANNEL- planes for developing strategicpartnership.

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SMSM-GSM-DFOFO-GFO-DFEFE-GFE-D

Direct Sales Force:

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HOMZSMRSMARSMAAMSR.SMFASMAM


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HOM Head of Marketing ZSM Zonal Sales Manager RSM Regional Sales Manager ARSM Associate Regional Sales Manager AAM Associate Area Manager SM Sales Manager FO Financial Officer FE Financial Executive

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Agency Structure:

22

Agency HeadRM

mMM

ARSMBSMMOAAdvisor


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MOA Agency Manager BSM Branch Sales Manger

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Strategy: To achieve a top 5 market position in India through a multi-distribution, multi-product

platform

To adapt AXA's best practice blueprints as a sound platform for profitable growth

To leverage Bharti's local knowledge, infrastructure and customer base

To deliver high levels of shareholder return

To build long term value with our business partners by enhancing the proposition to their

customers

To be the employer of choice to attract and retain the best talent in India

To be recognized as being close and qualified by our customers

Strategic differentiators:

Strong partner Bharti - provides access to customer base of more than 20 million

Multi channel execution capability

Current Asia product range which is a strong match to products sold to the mass and

mass affluent

Global scale providing cost effective and speedy re-use of systems, products and

business capability

Strong AXA and Bharti brands which can be leveraged to attract and retain a highquality management team.

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SWOT ANALYSIS :

Strength:

Bharti AXA Life Insurance Company Indias Most Respected Company

in the insurance industry of India.

Excellent services.

Customized of product as per customer needs.

Brand image.

Business experience.

Strong financial base.

Innovative product technology, organization culture and environment.

Weakness:

Lot of the competitions is in the market offers some product difference

in the premium and offerings.

Target only bigger income group where other companies are trying to

catch middle lower level people.

Higher premium as compared to the other companies.

Client face problem to get insured due to large number of formalities.

High target of financial advisor and for the sales development.

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Opportunity:

Huge market is literally untapped out of estimated 320 million is

usable markets only 20% of the population is insured.

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

Indian people are more emotional towards their children that are why

children plan are selling like hot cakes.

Health insurance and pension schemes and estimated market

potential of approximately $ 10 billion.

Threats:

Weak perception of private players in the minds of Indian people due

to frequent financial schemes.

Large number of insurance players.

Current government policies do not encourage gross domestic

savings.

Of the tax liabilities of the service rises the customers will have little

money to invest.

And change rules day by day more rigid which is very difficult for thecompany.

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PROMOTERS:Bharti Enterprises:

Bharti Enterprises is one of Indias leading business groups with interests in telecom, agro

business, insurance and retail. Bharti has been a pioneering force in the telecom sector with

many firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one of

Indias leading private sector providers of telecommunications services with an aggregate of 60

million customers, spanning mobile, fixed line, broadband and enterprise services. Bharti Airtel

was ranked amongst the best performing companies in the world in the Business Week IT 100

list 2007. Bharti Teletech is the countrys largest manufacturer and exporter of telephone

terminals. Bharti has a joint venture with Field Fresh Foods Pvt. Ltd - for global distribution of

fresh fruits and vegetables. Bharti also has a joint venture - Bharti AXA Life Insurance

Company Ltd. - with AXA, world leader in financial protection and wealth management. Bharti

has recently forayed into the retail business under a company called Bharti Retail Pvt. Ltd. It

also has a joint venture Bharti Wal-Mart Private Limited with Wal-Mart, for wholesale

cash-and-carry and back-end supply chain management operations.

AXA Group:

AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse

geographically, with major operations in Western Europe, North America and the

Asia/Pacific area. AXA had Euro 1,315 billion in assets under management as of December

31, 2006. For full year 2006, IFRS revenues amounted to Euro 79 billion, IFRS underlying

earnings amounted to Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million.

The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock

Exchange. The AXA American Depository Share is also listed on the NYSE under the

ticker symbol AXA.

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Bharti AXA General 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. Bharti Group holds 74% of equity and AXA

holds 26% of the equity.

The company was incorporate 13th July 2007 and plans to commence national operations in

August 2008. Headquartered in Bangalore, the company currently has offices in 7 cities-

Bangalore, Mumbai, Delhi, Ahmadabad, and Hyderabad, Ludhiana and Chennai- and plans to

grow to a total strength of 29 branches by the end of the first year of operations. With a vision to

become the leader and preferred company for financial protection in India, Bharti AXA GeneralInsurance offers its customers - individuals and businesses- a wide range of products and

services that meet their insurance needs.

The company will leverage the Bharti Groups large customer pool and develop a strong multi

channel distribution network in both urban and rural markets.

With a customer commitment to provide Fast, Fair & Friendly service in all aspects of

business, the company offers transparency, structured customer support and trained manpower,

backed by a robust IT platform. The companys claims philosophy is to offer prompt and hassle

free claims service that deals with the claims process with empathy.

The Management team at Bharti AXA consists of experienced leaders who are passionate about

their companys vision and goals and are committed to the development of Bharti AXA General

Insurance as the preferred company for Financial Protection in India.

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1.3 : OBJECTIVE OF THE STUDY:

1. To know about the saving habits of consumers.

2. To know the awareness about Insurance Plans and their benefits.

3. To know the attitude of individuals towards risk bearing.

4. To know the objective of individuals while purchasing insurance.

5. To know the attitude of individuals towards insurance plans and preference to Bharti AXA Life.

6. To check out the consumers financial position.

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2 : LITERATURE REVIEW:

2.1 : Indian Insurance Industry History:

Life insurance came to India from England in 1818 when oriental life insurance company started

in Calcutta by Europeans. After this many insurance companies had been started in India. But

these companies were looking after only the needs of European community established in India.

Indian people were not being insured by these companies. First Indian life insurance company

came as Bombay mutual life insurance assurance. Second company was Bharat insurance

company came in 1896. After this the united India in madras, national Indian and national

insurance in Calcutta and the co-operative assurance in Lahore were established in 1906.

To regulate Indian insurance business first insurance act came in 1912 as life insurance company

act and provident fund act. These acts consist of premium rates tables and periodical valuations

of companies. In the first two decade of 20 th century many life insurance companies were

started. So the insurance act came in 1938 to governing life and non life insurance companies

and to provide strict state control. In 1956 the life insurance business in India was nationalized.

In 1956 life insurance corporation of India (LIC) was created to spreading life insurance much

more widely particularly in rural areas. In that year LIC had 5 zonal offices, 33 divisional offices

and 212 branch offices. In 1957 the business of LIC of sum assured of 200crores, 1000crores in

1970, and 7000 cores in 1986.

The history of the Indian insurance sector dates back to 1818, when the Oriental Life Insurance

Company was formed in Kolkata. A new era began in the India insurance sector, with the

passing of the Life Insurance Act of 1912.

The Indian Insurance Companies Act was passed in 1928. This act empowered the government

of India to gather necessary information about the life insurance and non-life insurance

organizations operating in the Indian financial markets.

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The Triton Insurance Company Ltd formed in 1850 and was the first of its kind in the general

insurance sector in India. Established in 1907, Indian Mercantile Insurance Limited was the first

company to handle all forms of India insurance.

2.2 : Indian Insurance: Sector Reform :

The formation of the Malhotra Committee in 1993 initiated reforms in the Indian insurance

sector. The aim of the Malhotra Committee was to assess the functionality of the Indian

insurance sector. This committee was also in charge of recommending the future path of

insurance in India.

The Malhotra Committee attempted to improve various aspects of the insurance sector, making

them more appropriate and effective for the Indian market.

The recommendations of the committee put stress on offering operational autonomy to theinsurance service providers and also suggested forming an independent regulatory body.

The Insurance Regulatory and Development Authority Act of 1999 brought about several crucial

policy changes in the insurance sector of India. It led to the formation of the Insurance

Regulatory and Development Authority (IRDA) in 2000.

The goals of the IRDA are to safeguard the interests of insurance policyholders, as well as to

initiate different policy measures to help sustain growth in the Indian insurance sector.

The Authority has notified 27 Regulations on various issues which include Registration of

Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers

to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders'

interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for

issue of the Certificate of Registration to both life and non-life insurers. The Authority has its

Head Quarter at Hyderabad. Detailed information on IRDA is available at their web-

sitewww.irdaindia.org

A. Protection of the interest of policy holders:

IRDA has the responsibility of protecting the interest of insurance policyholders. Towards

achieving this objective, the Authority has taken the following steps:

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IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for:

policy proposal documents in easily understandable language; claims procedure in both life

and non-life; setting up of grievance redressed machinery; speedy settlement of claims; and

policyholders' servicing. The Regulation also provides for payment of interest by insurers for

the delay in settlement of claim.

The insurers are required to maintain solvency margins so that they are in a position to meet

their obligations towards policyholders with regard to payment of claims.

It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms and

conditions under the policy. The advertisements issued by the insurers should not mislead the insuring

public.

All insurers are required to set up proper grievance redress machinery in their head office and at their

other offices.

The Authority takes up with the insurers any complaint received from the policyholders in connection

with services provided by them under the insurance contract.

B. The first Indian Insurance Company was the Bombay Assurance Society Ltd. In 1870 othercompanies like:

1. Hindustan Co-operative in Kolkata.

2. National Insurance in Kolkata.

3. Bombay Life in Mumbai.

4. New India in Mumbai

5. Jupiter in Mumbai

6. Lakshmi Insurance in New-Delhi

2.3 : KEY MILESTONES:

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.

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1938: Earlier legislation consolidated and amended by the Insurance Act with the objective of

protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers along with provident societies were taken over by the

central government and nationalized. LIC was formed by an Act of Parliament- LIC Act 1956-

with a capital contribution of Rs. 5 Crores from the Government of India.

Insurance Industry in the year 2000-2001 had 13 new entrants, namely:

Table: 2.1

S.No. Reg. No. Date of Reg. Name of the Company

1. 101 23.10.2000 HDFC Standard Life Insurance Company

2. 103 23.10.2000 Reliance General Insurance Company Ltd.

3. 104 15.11.2000 Max New York Life Insurance Co. Ltd.

4. 105 24.11.2000 ICICI Prudential Life Insurance Company

5. 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance

6. 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

7. 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

8. 111 30.03.2001 SBI Life Insurance Company Limited

9. 114 02.08.2001 ING Vysya Life Insurance Co. Pvt. Ltd.

10. 116 03.08.2001 Bajaj Allianz Life Insurance Co. Ltd.

11. 117 06.08.2001 MetLife India Insurance Co. Pvt. Ltd.

12. 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.

13. 127 06.02.2004 Sahara India Insurance Company Ltd.__________

**Source: - Insurance Industry (ICFAI publication book)

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2.4 : Insurance Regulatory and Development Authority ( IRDA):

In 1999, the Insurance Regulatory and Development Authority (IRDA) were constituted as an

autonomous body to regulate and develop the insurance industry. The IRDA was incorporated asa statutory body in April, 2000. The key objectives of the IRDA include promotion of

competition so as to enhance customer satisfaction through increased consumer choice and

lower premiums, while ensuring the financial security of the insurance market. The IRDA

opened up the market in August 2000 with the invitation for application for registrations.

Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame

regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed

various regulations ranging from registration of companies for carrying on insurance business to

protection of policyholders interests.

Role of IRDA:

Protecting the interests of policyholders.

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Establishing guidelines for the operations of insurers, and brokers.

Specifying the code of conduct, qualifications, and training for insurance intermediariesand agents.

Promoting efficiency in the conduct of insurance business.

Regulating the investment of funds by insurance companies.

Specifying the percentage of business to be written by insurers in rural sectors.

Handling disputes between insurers and insurance intermediaries.

A: Changing perception of Indian customers:

Indian Insurance consumers are like Indian Voters, they are soft but when time is right and ripe,

they demand and seek necessary changes. De-tariff of many Insurance Products are the

reflection of changing aspirations and growing demand of Indian consumers.

For historical years, Indian consumers were at receiving end. Insurance Product was

underwritten and was practically forced onto consumers on a Take-it-As-it-basis. All that got

changed with passage of IRDA act in 1999. New insurance companies have come into existence

leading to open competition and hence better products for customers.

Indian customers have become very sensitive to Coverage/Premium as well as the Products

(read Risk Solution), that is given to them. There are not ready to accept any product, no matter

even if that is coming from the market leader, should that product is not serving the purpose. A

case in point is ULIP Product/Group Life and Credit Life in Life Insurance segment and

Travel/Family Floater Health and Liability Insurance in the Non-life segment are new age

Avatar. The new products are constantly being demanded by Indian consumers, which is putting

huge pressures on Insurance companies (Read Risk Under-writers) and Brokers to respond.

Customers are looking at Insurance for covering Pure Risk now which I have covered in my

next section. Another good reason why we are seeing quick changes in the buying behavior ofInsurance from mere Investment to risk mitigation is the cost of Replacement of Goods (ROG)

or Cost of Services (COS).

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Now Indian customers are aware of insurance industry and insurance products provided by

companies. They have become more sensitive. They would not accept any type of insurance

product unless it fulfills their requirements and needs. In historic days customers looking at

insurance products as a life cover which can provide security against any unacceptable events,

but now customers look at insurance products as an investment as well as life cover. So todays

customers wants good return from the insurance companies. The Indian customers forms the

pivot of each companys strategy.

B: Investment of Indian Household Savings

(As a % in different sector)

Table:2.2

BANK DEPOSITS 39%

CORP. BANKS 2%

SHARES AND DEBENTURES 1%

MUTUAL FUNDS 2%

NBFCS 3%

GOVT. BONDS 13%

INSURANCE 13%

PF/ RETIREMENT FUNDS 21%

CURRENCY 6%

*Source: - Insurance Industry (ICFAI publication book)

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C:Changing Face of Indian Insurance Industry:

After the Insurance Regulatory and Development Authority Act have been passed there has been

establishment of many private insurance companies in India. Previously there was a monopoly

business for Life Insurance Corporation of India (L.I.C.) who was the only life-insurance

company for the people till 2000. L.I.C. still holds 71.4% of the market share in 2006. But after

the introduction of private life insurance companies there is a great competition in Indian market

now. Everyone is trying to capture the fresh market here and penetrate it with aggressive

marketing strategies. Today life-insurance is not only limited up to just life risk cover and

maturity period bonuses but changed to greater return from the investments. With the

introduction of the unit linked insurance policies these companies are investing the money in

different investment instruments like shares, bonds, debentures, government and other securities.

People are demanding for higher returns with the life risk cover and private companies are

giving 30-40% average growth per annum. These life-insurance companies have every kind of

policies suiting every need right from financial needs of, marriage, giving birth and rearing up a

child, his education, meeting daily financial needs of life, pension solutions after retirement.

These companies have every aspects and needs of our life covered along with the death-benefit.

In India only 25% of the population has life insurance. So Indian life-insurance market is the

target market of all the companies who either want to extend or diversify their business. To tapthe Indian market there has been tie-ups between the major Indian companies with other

International insurance companies to start up their business. The government of India has set up

rules that no foreign insurance company can set up their business individually here and they

have to tie up with an Indian company and this foreign insurance company can have an

investment of only 24% of the total start-up investment.

Indian insurance industry can be featured by:

Low market penetration.

Ever growing middle class component in population.

Growth of customers interest with an increasing demand for better insurance products.

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Application of information technology for business.

Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private players, each of which are making

strides in raising awareness levels, introducing innovative products and increasing the

penetration of life insurance in the vastly underinsured country. Several of private insurers have

introduced attractive products to meet the needs of their target customers and in line with their

business objectives. The success of their effort is that they have captured over 28% of premium

income in five years.

The biggest beneficiary of the competition among life insurers has been the customer. A wide

range of products, customer focused service and professional advice has become the mainstay of

the industry, and the Indian customers forms the pivot of each companys strategy. Penetration

of life insurance is beginning to cut across socio-economic classes and attract people who have

never purchased insurance before.

Life insurance is also now being regarded as a versatile financial planning tool. Apart from the

traditional term and saving insurance policies, industry has seen the entry and growth of unit

linked products. This provides market linked returns and is among the most flexible policies

available today for investment. Now products are priced, flexible, and realistic and sustain so

people in better position to understand the risk and benefits of the product and they are accepting

these innovative products.

So it is clear that the face of life insurance in India is changing, but with the changes come a host

of challenges and it is only the credible players with a long term vision and a robust business

strategy that will survive. Whatever the developments, the future and the opportunities in this

industry will surely be exciting.

There are 12 private players in Indian life insurance market.

6 bank owned insurers - HDFC standard life, ICICI prudential, ING Vysya, MetLife, OM

Kotak, SBI life

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6 independent insurers - Aviva, ANP sanmar, Birla sun life, Bajaj Allianz, Max New York life,

Tata-AIG, Bharti-AXA

Major international insurers are- Prudential and Standard life from UK, Sun life of Canada, AIG,

MetLife and New York life of the US.

D: Increasing growth since liberalization:

Table: 2.3

YEAR LIC (in bn Rs.) PRIVATE PLAYER

FY03 110 10

FY04 120 20

FY05 130 40

FY06 140 60

FY07 240 160

Source: - Insurance Industry (ICFAI publication book)

3. RESEARCH METHODOLOGY:

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3.1 The Marketing Research Process:

A Research Design is the framework or plan for a study which is used as a guide in collecting

and analyzing the data collected. It is the blue print that is followed in completing the study. The

basic objective of research cannot be attained without a proper research design. It specifies the

methods and procedures for acquiring the information needed to conduct the research

effectively. It is the overall operational pattern of the project that stipulates what information

needs to be collected, from which sources and by what methods.

As MARKETING research is a systemic and formalized process, it follows a certain sequence of

research action. The marketing process has the following steps:

Formulating the problems

Exploration of the situation

Developing objectives of the research

Designing an effective research plan

Data collection techniques

Analysis f the collected data

Evaluating the data and preparing a research report

Primary Research:-

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Primary data are the data that are collected to solve a problem or take advantage of anyopportunities on which a decision is depending. These data are basically observed and recordedby the researcher for the first time.

Research Design:-

For this study a survey research was adopted with the help of primary data. For getting primarydata the research tool was a structured questionnaire.

Sample Size: -

The sample for the purpose of study was the 50 customers.

Sample Design: -

A sample design not only seeks to determine the size of sample and also the sampling unit. The

sample for the purpose of study was the customer.

Sample Techniques: -

The techniques adopted of selection of sampling of sample for study was simple randomsampling method.

Questionnaire Design: -

The author had a set of ideas and expected result based on those ideas from the questionnaire.For this reason questions were:

Related to the field of study. Related to the research hypothesis. Questions must bear significance to concerned area of research. Questions must seek information unattainable from other sources. The must be short as possible but comprehensive enough to allow the author to derive his

requirement of his research. Questions were well laid out.

3.2: Data Collection :

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After the research methodology, research problem in MARKETING has been identified and

selected; the next step is to gather the requisite data. There are two types of data collection

method primary data and secondary data.

Primary data collection method for observing working of company and approaching

various persons of the MARKETING Department and asking them questions and notes

written down while observing and assisting MARKETING persons in their work.

Secondary data collection method was used by referring to company records, files, and

journals, broachers various websites, books, magazines, journals and daily newspapers

for collecting information regarding project under study.

A: Bharti-AXA Business build-up in 3 years ( INR Crs .)*:

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0

50

100

150

200

250

300

350

Year 1 Year 2 Year 3

Bharti-AXA

SBI Life

HDFC Standard

ICICI Prudential

Max New York

Met Life

Bajaj Allianz

*Source: As per comparison done on the basis of figures published in IRDA journals

B: Bharti-AXA branch build-up in 3 years*:

*Source: As per comparison done on the basis of figures published in IRDA journals.

3.3: Limitation of the Study:

However I tried my best to have desired information from he information from the respondentsand to make the report fruitful but some limitations are bound to incur which may affect the

results or findings.

1. No Secondary Data:

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As the subject of my project viz. consumers aptitude towards unit-linked product was new so I

was unable to have secondary data for the purpose of my study.

2. Small sample size:

As sample size taken by me for purpose of survey was 50 respondents. So the result may have

some deviations from the facts because of small sample size.

3. Limited area and time:

The study although carried out with the fullest possible effort and devotion, the limitation of

time, resources available may lead to an element chance of some error.

4: DATA ANALYSIS:

No. of respondents which are aware of life Insurance

Do you know about Life Insurance Policy?

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Valid Frequency Percent Valid Percent Cumulative

Percent

Yes 48 96.0 96.0 96

No 2 4.0 4.0 100

Total 50 100.0 100.0

Inference:

Above bar chart shows that 96% of Peoples know about life insurance.

No. of respondents having the life insurance policy

Do you have any Life Insurance Policy?


Percent

Yes 43 86.0 86.0 86

No 7 14.0 14.0 100

Total 50 100.0 100.0

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Inference:

Above bar chart shows that 86% of respondents having Life Insurance.

Respondents preference in Investment

Where would you prefer to invest?


Percent

Govt. Securities 10 20.0 20.0 20

Mutual Funds 18 36.0 36.0 56

Equity Shares 14 28.0 28.0 84

Insurances 8 16.0 16.0 100

Total 50 100.0 100.0

Inference :

Above pie chart show that 20% respondent of preferred in Govt. Security, 16% Insurance, 36% Mutual Funds and

28% in Equity Share.

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Criteria of Invest of respondent

On which criteria do you invest?


Percent

Expert

Advice

10 20.0 20.0 20

Friendly

Advice

17 34.0 34.0 54

Own Analysis 23 46.0 46.0 100

Total 50 100.0 100.0

Inference :

The majority of respondents invest their money by their own analysis i.e.46%, by friendly advice 34% respondents

invest and 20% respondents invert their money by taken experts advice.

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Source of Income of respondents

What is your source of income?


Percent

Self

Employed/Professional

13 26.0 26.0 26.0

Business 18 36.0 36.0 62.0

Salaried 19 38.0 38.0 100.0

Total 50 100.0 100.0

Inference :

The majority of respondents are fall in the category of Salaried, approximately 38%, where as 36% are having

Business and 26% are self employed.

Annual Income of respondents

To which income group you belong?


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Percent

> 1,00,000 10 20.0 20.0 20

1,00,000 to

2,00,000

20 40.0 40.0 60

200,000 to

500,000

15 30.0 30.0 90

500,000 &

above

5 10.0 10.0 100

Total 50 100.0 100.0

Inference :

It shows that Annual income of majority of respondents falls in the category of 1-2lac, approximately 40%.

Whereas 20% in


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Money Back 8 16.0 16.0 88

Term

Insurance

6 12.0 12.0 100

Total 50 100.0 100.0

Inference :

Above Bar Chart shows that majority of respondents prefer Endowment 46%, 26% Money Back, 16% Pure Risk

and around 12% prefer Term Insurance Plan.

Investment range of Respondents

How much can you invest per annum?


Percent

< 10,000 20 40.0 40.0 40

10,000 -

15,000

13 26.0 26.0 66

15,000 -

20,000

10 20.0 20.0 86

> 20,000 7 14.0 14.0 100

Total 50 100.0 100.0

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Inference :

It show that 26% of respondents invest around 1000-15000, where as 40 %< 10,000, 20% 15000-20000, 14% invest

20000 or above.

Respondents preferred Duration of Policy

For what duration would you like to hold the policy?


Percent

< 5 Years 9 18 18 18

5-10 Years 18 36 36 54

10 -20 Years 16 32 32 86

> 20 Years 7 14 14 100

Total 50 100.0 100.0

Inference :

It shows that the 36% of respondents prefer 5-10 years policy duration, where as 18% in


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Respondents Expectation from the Insurance Company

What is your main expectation from the insurance company?


Percent

Security 24 48 48 48

Good Return 13 26 26 74

Service 7 14 14 88

Flexibility 6 12 12 100

Total 50 100.0 100.0

Inference :

It shows that majority of respondents prefer security 48%, 26% good return, 14%service and around 12% prefer

flexibility from insurance company.

Additional Benefits respondent prefer from policy

What additional benefit do you want from the policy?

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Percent

Accidental 13 26.0 26.0 26

Critical Illness 16 32.0 32.0 58

Start of Life 8 16.0 16.0 74

Family Income

Benefit

13 26.0 26.0 100

Total 50 100.0 100.0

Inference :

It shows that majority of respondents prefer critical illness 32%, 26% accidental, 16%start of life and around

26%prefer family income benefit.

Respondents Logic behind taking an insurance plan

What is your logic behind taking an insurance plan?


Percent

Tax Planning 12 24.0 24.0 24

Risk Cover 15 30.0 30.0 54

Retirement 8 16.0 16.0 70

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Planning

Investment

Planning

6 12.0 12.0 82

5.00 9 18.0 18.0 100

Total 50 100.0 100.0

Inference :

It shows that 30% of respondent prefer risk cover, 24% prefer tax planning,12%prefe Investment,16%prefer

retirement planning and18% prefer all of these.

Company preference of respondents

Which company would you prefer to invest in?

Valid Frequency Percent Valid Percent CumulativePercent

L.I.C. 15 30.0 30.0 30

HDFC 7 14.0 14.0 44

Bajaj Allianz 10 20.0 20.0 64

ICICI Prudential 8 16.0 16.0 80

Bharti-AXA 6 12.0 12.0 92

Others 4 8.0 8.0 100

Total 50 100.0 100.0

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Inference :

It shows that majority of respondents prefers LIC about 30%, 12% Bharti AXA, 20%Bajaj Allianz , 14% HDFC

Standard life,16% ICICI Prudential and 8%prefer others.

Satisfaction level of respondent with their L.I. Company

Are you satisfied with the services that are offered by your insurance company?


Percent

Yes 33 66.0 66.0 66

No 17 34.0 34.0 100

Total 50 100.0 100.0

Inference :

It shows the mostly number of people are satisfied with their life Insurance Company around 66%.

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The Factors that motivated respondents to prefer Bharti AXA

What are the factors that have motivated you to prefer Bharti AXA over the other companies?


Percent

Brand Name 15 30.0 30.0 30

Goodwill of

Bharti-AXA

19 38.0 38.0 68

Service 9 18.0 18.0 86

Advertisement 7 14.0 14.0 100

Total 50 100.0 100.0

Inference :

It shows that 38% of respondents prefer Bharti AXA for its good will & 30% for Brand Name, 18% for service &

14% people prefer due to advertisement.

Respondents which again prefer to buy Bharti AXA products

If Given a Chance do you again prefer to buy the Bharti AXA Life Insurance policy in future?


Percent

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Yes 35 70.0 70.0 70

No 15 30.0 30.0 100

Total 50 100.0 100.0

Inference :

It shows the mostly number of people are again going to buy Bharti AXA Life Insurance Company products around

70%.

Factor which most dissatisfy a respondent from Bharti AXA

What is the most dissatisfying factor do you feel about Bharti AXA?


Percent

After Sales

Service

12 24.0 24.0 24

Product

Diversification

19 38.0 38.0 62

Fund Performance 10 20.0 20.0 82


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Total 50 100.0 100.0

Inference :

It shows that 24% of respondents dissatisfied with after sales service of Bharti AXA & 38% for product

diversification, 20% for fund performance & 18% people dissatisfied due to advertisements.

Reason behind not purchasing of a Bharti AXA Policy

What are die reason behind not purchasing/taking a Bharti AXA life insurance policy?


Percent

Trust 11 22.0 22.0 22

Service 19 38.0 38.0 60


Market

Reputation

8 16.0 16.0 100

Total 50 100.0 100.0

Inference :

It shows that 22% of respondents are not purchasing Bharti AXA Policy due to trust & 38% due to service, 24%

due to Advertisement & 16% people due to advertisements.

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Ranking of service offered by Bharti AXA Life Insurance

Rank the service of Bharti AXA Life Insurance?


Percent

Excellent 8 16.0 16.0 16

Good 20 40.0 40.0 56

Average 13 26.0 26.0 82

Below Average 9 18.0 18.0 100

Total 50 100.0 100.0

Inference :

It shows that 16% of respondents feels services offered by Bharti AXA are Excellent & 40% thinks good, 26% feels

Average & 18% people feels below average.

5. FINDINGS:

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There are a lot of possibilities in the market for Bharti AXA Life Insurance Products due to their

unique features. To get the benefit of this opportunity the company should consider the

following points.

1. The study shows that there is less awareness for the companys Plans in Market. So it is

necessary for company to make aware to the people for company. The company should go foradvertisements at local level.

2. Awareness of customers is very low in India even educated persons are unaware about

various products of insurance company. Company should advertise their plans on a large scale

e.g. on T.V. channel, leading newspapers etc.

3. Company should recruit new agents or consultants. It is necessary for company to trend them

in a well manner therefore they will gave good results.

4. Company should make plans for promotion of company business it should organize road

shows seminars, exhibition or contests because these things make a clear picture of companysplans.

5. Bharti AXA should open the branches and enhance its infrastructure so that the people of that

region can also be awarded about these plans.

6. Company should open customer service point in rural areas also.

7. Company should issue less premium plan.

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6. CONCLUSION:

The objective of the project of studying the ANALYSIS OF BHARTI-AXA RANGE OF

SERVICES has been achieved during the course of time. Today insurance industry is a rapidlygrowing sector. After coming of the private players this industry is becoming complex day to

day and their competition very fast.

After analyzing the responses of the people about main feature which influence the insurance

buying, the result shows that awareness level is increasing day by day about the private

insurance company. Till 1999 LIC have the monopoly in insurance sector. But today is the era

of private insurance companies, and the awareness level and buying behavior is increasing day

by day.

Major finding of the study show that protection is the prime preference along with saving or

tax benefits. At the same time people are more focused on their Childrens future planning In

particular Bharti AXA Life Insurance has huge brand awareness in the urban market due to

Bharti Airtel presence in the market. But at the same time company is struggling for its market

share in rural market. In brief it can be said that the people are getting confident to be the

investor of Bharti AXA Life Insurance products while they have heard about all the benefits of

these plans.

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BIBLIOGRAPHY :

Reference to a book: Marketing Research An applied orientation By Malhotre Dash

Marketing Research By S.L. Gupta Reference to Websites:

www.bharti-axalife.com www.avivaindia.com www.google.co.in www.irda.org.in

Other

Bharti-AXA manuals.

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http://www.bharti-axalife.com/http://www.avivaindia.com/http://www.google.co.in/http://www.irda.org.in/http://www.bharti-axalife.com/http://www.avivaindia.com/http://www.google.co.in/http://www.irda.org.in/


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ANNEXURE:

Questionnaire:

General Information:

1. Name:

2. Age:

3. Sex: Male [ ] Female [ ]

4. Marital Status: Single [ ] Married [ ]

5. Educational Background: High School [ ] Plus 2 [ ] Graduation [ ] Post Graduation [ ]

6. Address: ___________________________________________

Questions: ___________________________________________________________________________

1. You are? Self Employed / Professional [ ] Business owner [ ] Salaried [ ]

2. Which income group do you belong to? > 1, 00,000 [ ] 1, 00,000 to 2, 00,000 [ ] 200,000 to

500,000 [ ] 500,000 & above [ ]

3. Are you aware about the different options of investment? Yes [ ] No [ ]

4. On whose advice would you invest? Experts Advice [ ] Friends Advice [ ] Self Analysis [ ]

5. Where would you prefer to invest? Govt. Securities [ ] Mutual Funds [ ] Equity Shares [ ] Insurance [

]

6. Are you aware that Life Insurance is a good option for investment, tax saving, savings as well as

financial protection? Yes [ ] No [ ]

7. Do you have any Life Insurance Policy? Yes [ ] No [ ]

8. What type of plan do you have or would you prefer? Investment [ ] tax saving [ ] savings [ ] as well as

financial protection [ ]

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9. How much do you pay or can you invest per annum? < 10,000 [ ] 10,000 - 15,000 [ ] 15,000 - 20,000

[ ] > 20,000 [ ]

10. For what duration would you like to hold the policy? < 5 Years [ ] 5- 10 Years [ ] 10 - 20 Years [ ]

> 20 Years [ ]

11. What is your main expectation from the insurance company? Security [ ] Good Return' [ ] Service[ ] Flexibility [ ]

12. What additional benefit do you want from the policy? Accidental [ ] Critical Illness [ ] Start of Life [

] Family Income Benefit [ ]

13. What is your purpose behind taking an insurance plan? Tax Planning [ ] Risk Cover [ ] Retirement

Planning [ ] Investment Planning [ ] All of these [ ]

14. Which company would you prefer to invest in? L.I.C. [ ] HDFC [ ] Bajaj Allianz [ ] ICICI

Prudential [ ] Bharti-AXA [ ] others [ ]

15. Are you satisfied with the services that are offered by your insurance company? Yes [ ], No [ ]

16. What are the factors that have motivated you to prefer Bharti AXA over the other companies? Brand

Name [ ] Goodwill of Bharti AXA [ ] Service [ ] Advertisement [ ]

17. If Given a Chance do you again prefer to buy the Bharti AXA Life Insurance policy in future? Yes

[ ] No [ ]

18. What is the most dissatisfying factor do you feel about Bharti AXA? After Sale Service [ ] Product

Diversification [ ] Fund Performance [ ] Advertisement [ ]

19. Rank the service of Bharti AXA Life Insurance? Excellent [ ] Good [ ] Average [ ] Below

Average [ ]

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Documents

A Project Report on Bharti-Axa by Sushobhan Birtia