Bajaj Allianz

SMIBS Bangalore Bajaj Allianz

EXECUTIVE SUMMARY

At the present time of cut throat competition in every industry every company want

to top the chart and want to show as big as possible figure of profits in its balance

sheet. It is quite clear today that at present time the growth of any organization is

possible only with the help of hard working and well focused staffs that are the

backbone of any organizations. It was my great pleasure that I did my internship at

Bajaj Allianz Life Insurance Company.

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

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

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

that manage assets worth over a Trillion. With over 115 years of financial

experience, Allianz SE is present in over 70 countries around the world. Bajaj

Allianz is into both life insurance and general insurance. Today, Bajaj Allianz is

one of India's leading and fastest growing insurance companies. Bajaj Allianz

Life Insurance ensures excellent insurance and investment solutions by offering

customized products, supported by the best technology. Here I done my project

title on “A STUDY ABOUT BAJAJ ALLIANZ AND CONSUMER

BEHAVIOURTOWARDS INSURANCE INDUSTRY” and learned about insurance

industry, how it is running, products of Bajaj Allianz, how to pitch the product to

customers, etc.

1


INTRODUCTION TO INSURANCE

Definition:

A contract (policy) in which an individual or entity receives financial protection or

reimbursement against losses from an insurance company. The company pools

clients' risks to make payments more affordable for the insured.

Insurance is a form of risk management primarily used to hedge against the risk of

a contingent, uncertain loss. Insurance is defined as the equitable transfer of the

risk of a loss, from one entity to another, in exchange for payment. An insurer is a

company selling the insurance; the insured, or policyholder, is the person or entity

buying the insurance policy.

The amount to be charged for a certain amount of insurance coverage is called the

premium. Risk management, the practice of appraising and controlling risk, has

evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively

small loss in the form of payment to the insurer in exchange for the insurer's

promise to compensate the insured in the case of a financial (personal) loss.

The insured receives a contract, called the insurance policy, which details the

conditions and circumstances under which the insured will be financially

compensated.

2


Principles

Insurance involves pooling funds from many insured entities (known as exposures)

to pay for the losses that some may incur. The insured entities are therefore

protected from risk for a fee, with the fee being dependent upon the frequency and

severity of the event occurring. In order to be insurable, the risk insured against

must meet certain characteristics in order to be an insurable risk. Insurance is a

commercial enterprise and a major part of the financial services industry, but

individual entities can also self-insure through saving money for possible future

losses.

Types of insurance

Any risk that can be quantified can potentially be insured. Specific kinds of risk

that may give rise to claims are known as perils.

Insurance

General Insurance Life Insurance

General Insurance

Auto insurance

Auto insurance protects the policyholder against financial loss in the event of an

incident involving a vehicle they own, such as in a traffic collision.

3


Coverage typically includes:

1. Property coverage, for damage to or theft of the car;

2. Liability coverage, for the legal responsibility to others for bodily injury or

property damage;

3. Medical coverage, for the cost of treating injuries, rehabilitation and

sometimes lost wages and funeral expenses.

Most countries, such as the United Kingdom, require drivers to buy some, but not

all, of this coverage. When a car is used as collateral for a loan the lender usually

requires specific coverage.

Gap insurance

Gap insurance covers the excess amount on your auto loan in an instance where

your insurance company does not cover the entire loan. Depending on the

companies specific policies it might or might not cover the deductible as well. This

coverage is marketed for those who put low down payments, have high interest

rates on their loans, and those with 60 month or longer terms. Gap insurance is

typically offered by your finance company when you first purchase your vehicle.

Most auto insurance companies offer this coverage to consumers as well. If you are

unsure if GAP coverage had been purchased, you should check your vehicle lease

or purchase documentation.

Home insurance

Home insurance provides coverage for damage or destruction of the policyholder's

home. In some geographical areas, the policy may exclude certain types of risks,

such as flood or earthquake, which require additional coverage.

4


Maintenance-related issues are typically the homeowner's responsibility. The

policy may include inventory, or this can be bought as a separate policy, especially

for people who rent housing. In some countries, insurers offer a package which

may include liability and legal responsibility for injuries and property damage

caused by members of the household, including pets.

Health insurance

Health insurance policies cover the cost of medical treatments. Dental insurance,

like medical insurance protects policyholders for dental costs. In the US and

Canada, dental insurance is often part of an employer's benefits package, along

with health insurance.

Accident, sickness and unemployment insurance

Workers' compensation, or employers' liability insurance, is compulsory in some

countries

Disability insurance policies provide financial support in the event of the

policyholder becoming unable to work because of disabling illness or injury.

It provides monthly support to help pay such obligations as mortgage loans

and credit cards. Short-term and long-term disability policies re available to

individuals, but considering the expense, long-term policies are generally

obtained only by those with at least six-figure incomes, such as doctors,

lawyers, etc. Short-term disability insurance covers a person for a period

typically up to six months, paying a stipend each month to cover medical

bills and other necessities.

Long-term disability insurance covers an individual's expenses for the long

term, up until such time as they are considered permanently disabled.

5


Insurance companies will often try to encourage the person back into

employment in preference to and before declaring them unable to work at all

and therefore totally disabled.

Disability overhead insurance allows business owners to cover the overhead

expenses of their business while they are unable to work.

Total permanent disability insurance provides benefits when a person is

permanently disabled and can no longer work in their profession, often taken

as an adjunct to life insurance.

Workers' compensation insurance replaces all or part of a worker's wages

lost and accompanying medical expenses incurred because of a job-related

injury.

Casualty

Casualty insurance insures against accidents, not necessarily tied to any specific

property. It is a broad spectrum of insurance that a number of other types of

insurance could be classified, such as auto, workers compensation, and some

liability insurances.

Crime insurance is a form of casualty insurance that covers the policyholder

against losses arising from the criminal acts of third parties. For example, a

company can obtain crime insurance to cover losses arising from theft or

embezzlement.

Political risk insurance is a form of casualty insurance that can be taken out

by businesses with operations in countries in which there is a risk that

revolution or other political conditions could result in a loss.

6

http://en.wikipedia.org/wiki/Theft


Burial insurance

Burial insurance is a very old type of life insurance which is paid out upon death to

cover final expenses, such as the cost of a funeral. The Greeks and Romans

introduced burial insurance circa 600 AD when they organized guilds called

"benevolent societies" which cared for the surviving families and paid funeral

expenses of members upon death. Guilds in the Middle Ages served a similar

purpose, as did friendly societies during Victorian times.

Property

Property insurance provides protection against risks to property, such as fire, theft

or weather damage. This may include specialized forms of insurance such as fire

insurance, flood insurance, earthquake insurance, home insurance, inland marine

insurance or boiler insurance. The term property insurance may, like casualty

insurance, be used as a broad category of various subtypes of insurance.

Marine insurance

Marine insurance and marine cargo insurance cover the loss or damage of vessels

at sea or on inland waterways, and of cargo in transit, regardless of the method of

transit. When the owner of the cargo and the carrier are separate corporations,

marine cargo insurance typically compensates the owner of cargo for losses

sustained from fire, shipwreck, etc., but excludes losses that can be recovered from

the carrier or the carrier's insurance.

7


LIFE INSURANCE

Definition:

According to U.S. Life Office Management Association (LOMA) “Life Insurance

provides a sum of money if the person who is insured dies whilst the policy is in

effect.

Life Insurance is concerned with contracts of insurance on human life wherein the

life insurance policy provides compensation/sum assured to the insured or

dependents in the event of maturity of policy or on occurrence of a peril covered

like death, permanent disability of an insured.

As per Insurance Act 1938 Life Insurance Business means the business of

effecting contracts of insurance upon human life, including any contract whereby

the payment of money is assured on death (except death by accident only) or the

happening of any contingency dependent on human life, and any contract which is

subject to payment of premiums for a term dependent on human life and shall be

deemed to include-

(a)The granting of disability and double or triple indemnity accident benefits, if so

provided in the contract of insurance;

(b)The granting of annuities upon human life;

8


(c)The granting of superannuation allowances and annuities payable out of any

fund applicable solely to the relief and maintenance of persons engaged or who

have been engaged in any particular profession, trade or employment or of the

dependents of such persons.

At present as on 20-11-2010 in India life insurance business is transacted by 23

life insurance companies which have been provided licences to do life insurance by

IRDA ( Insurance Regulatory & Development Authority).LIC (Life Insurance

Corporation of India) is a public sector life insurance company, largest life insurer

of India. No other organization can transact life insurance business unless it holds a

valid license given by IRDA.

Needs for Insurance:

Temporary needs (providing for replacement of income on death)

Regular savings

Investment

Retirement

Replacement of any assets like automobiles

Sharing of pain with many person so that the pain of loss will get decrease

9


Important aspects of Life Insurance:

Policies available with bonus or without bonus

Death due to accidents can be covered for additional S.A.

Policies available exclusively for women & children

Additional cover for major diseases available

Guaranteed bonus policies available

Policies available for limited period premium payment & risk for longer

policy period

Premium can be paid in monthly, quarterly, half yearly, yearly installments

Loans are available on policies

Lapsed policies can be revived

Policy can be surrendered after three years ( ULIP’s after 5 years)

Nomination & assignment can be done

Exclusive Health insurance policies available

Share Market linked policies ULIP’s available

Benefits of Insurance:

It is superior to a traditional saving vehicles

It encourages saving and forces thrift

It provides easy settlement

It can be enchased and facilitates borrowing

Family protection-Maintenance of standard of living

Liquidity

Tax relief

Money when you need

Loans

10


Easy & prompt settlements of all types of claims

Marketability-Assignment

Nomination facility

Bonus

Helps live solvent life

Safeguards against unpredictable risks of future

Role of Insurance in developing Economy:

People having worries about children and their marriage, pre mature death

and retirement etc… If an Individual free from above worry he can perform

better in his job which helps in economy development.

It direct people savings , insures invest these funds in various business like

enterprise, government bonds, loan to the public, private and public project,

infracture, etc,… insurance premium amount helps for the development of

nations economy.

This savings acts as anti inflationary form in nation financial structure.

(Most of the money goes premium so less amount is there to spend money to

buy).

So that inflation gets controlled.

11


OVERVIEW OF INSURANCE INDUSTRY

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and General Insurance Business (Nationalization) Act,

1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and

other related Acts. With such a large population and the untapped market area of

this population Insurance happens to be a very big opportunity in India. Today it

stands as a business growing at the rate of 15-20 per cent annually. Together with

banking services, it adds about 7 per cent to the country’s GDP .In spite of all this

growth the statistics of the penetration of the insurance in the country is very poor.

Nearly 80% of Indian populations are without Life insurance cover and the Health

insurance. This is an indicator that growth potential for the insurance sector is

immense in India. It was due to this immense growth that the regulations were

introduced in the insurance sector and in continuation “Malhotra Committee”

was constituted by the government in 1993 to examine the various aspects of the

industry. The key element of the reform process was Participation of overseas

insurance companies with 26% capital. Creating a more efficient and competitive

financial system suitable for the requirements of the economy was the main idea

behind this reform.

Since then the insurance industry has gone through many sea changes .The

competition LIC started facing from these companies were threatening to the

existence of LIC .since the liberalization of the industry the insurance industry has

never looked back and today stand as the one of the most competitive and

exploring industry in India. The entry of the private players and the increased use

of the new distribution are in the limelight today. The use of new distribution

techniques and the IT tools has increased the scope of the industry in the longer run

12


History of Insurance Sector

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

year 1818 with the establishment of the Oriental Life Insurance Company in

Calcutta. Some of the important milestones in the life insurance business in India

are given in the table 1.

Milestone’s in the Life Insurance business in India

Year Milestones in the life insurance business in India

1912 The Indian Life Assurance Companies Act enacted as the first

statute to regulate the life insurance business

1928 The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life

and non-life insurance businesses

1938 Earlier legislation consolidated and amended to by the

Insurance Act with the objective of protecting the interests of

the insuring public.

1956 245 Indian and foreign insurers and provident societies taken

over by the central government and nationalized. LIC formed

by an Act of Parliament, viz. LIC Act, 1956, with a capital

contribution of Rs. 5 crore from the Government of India.

13


Insurance Market – History

Insurance has a long history in India. Life Insurance in its current form was

introduced in 1818 when Oriental Life Insurance Company began its operations in

India. General Insurance was however a comparatively late entrant in 1850 when

Triton Insurance company set up its base in Kolkata. History of Insurance in India

can be broadly bifurcated into three eras: a) Pre Nationalization b) Nationalization

and c) Post Nationalization. Life Insurance was the first to be nationalized in 1956.

Life Insurance Corporation of India was formed by consolidating the operations of

various insurance companies. General Insurance followed suit and was

nationalized in 1973. General Insurance Corporation of India was set up as the

controlling body with New India, United India, National and Oriental as its

subsidiaries. The process of opening up the insurance sector was initiated against

the background of Economic Reform process which commenced from 1991. For

this purpose Malhotra Committee was formed during this year who submitted their

report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in

1999. Resultantly Indian Insurance was opened for private companies and Private

Insurance Company effectively started operations from 2001.

Insurance Market- Present:

The insurance sector was opened up for private participation four years ago. For

years now, the private players are active in the liberalized environment. The

insurance market have witnessed dynamic changes which includes presence of a

fairly large number of insurers both life and non-life segment. Most of the private

insurance companies have formed joint venture partnering well recognized foreign

players across the globe.

14


There are now 29 insurance companies operating in the Indian market – 14 private

life insurers, nine private non-life insurers and six public sector companies. With

many more joint ventures in the offing, the insurance industry in India today stands

at a crossroads as competition intensifies and companies prepare survival strategies

in a present scenario.

There is pressure from both within the country and outside on the Government to

increase the foreign direct investment (FDI) limit from the current 26% to 49%,

which would help JV partners to bring in funds for expansion.

There are opportunities in the pensions sector where regulations are being framed.

Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has

issued the first license for a standalone health company in the country as many

more players wait to enter. The health insurance sector has tremendous growth

potential, and as it matures and new players enter, product innovation and

enhancement will increase. The deepening of the health database over time will

also allow players to develop and price products for larger segments of society.

State Insurers Continue To Dominate There may be room for many more

players in a large underinsured market like India with a population of over one

billion. But the reality is that the intense competition in the last five years has made

it difficult for new entrants to keep pace with the leaders and thereby failing to

make any impact in the market.

Also as the private sector controls over 26.18% of the life insurance market and

over 26.53% of the non-life market, the public sector companies still call the shots.

15


The country’s largest life insurer, Life Insurance Corporation of India (LIC), had a

share of 74.82% in new business premium income in November 2005.

Similarly, the four public-sector non-life insurers – New India Assurance, National

Insurance, Oriental Insurance and United India Insurance – had a combined market

share of 73.47% as of October 2005. ICICI Prudential Life Insurance Company

continues to lead the private sector with a 7.26% market share in terms of fresh

premium, whereas ICICI Lombard General Insurance Company is the leader

among the private non-life players with an 8.11% market share. ICICI Lombard

has focused on growing the market for general insurance products and increasing

penetration within existing customers through product innovation and distribution.

Reaching Out To Customers No doubt, the customer profile in the insurance

industry is changing with the introduction of large number of divergent

intermediaries such as brokers, corporate agents, and banc assurance.

The industry now deals with customers who know what they want and when, and

are more demanding in terms of better service and speedier responses. With the

industry all set to move to a detariffed regime by 2007, there will be considerable

improvement in customer service levels, product innovation and newer standards

of underwriting.

Intense Competition In a de-tariffed environment, competition will manifest itself

in prices, products, underwriting criteria, innovative sales methods and

creditworthiness. Insurance companies will vie with each other to capture market

share through better pricing and client segmentation.

The battle has so far been fought in the big urban cities, but in the next few years,

increased competition will drive insurers to rural and semi-urban markets.

16


Global Standards While the world is eyeing India for growth and expansion,

Indian companies are becoming increasingly world class. Take the case of LIC,

which has set its sight on becoming a major global player following a Rs280-crore

investment from the Indian government. The company now operates in Mauritius,

Fiji, the UK, Sri Lanka, and Nepal and will soon start operations in Saudi Arabia.

It also plans to venture into the African and Asia-Pacific regions in 2006.

The year 2005 was a testing phase for the general insurance industry with a series

of catastrophes hitting the Indian sub-continent.

However, with robust reinsurance programmes in place, insurers have successfully

managed to tide over the crisis without any adverse impact on their balance sheets.

With life insurance premiums being just 2.5% of GDP and general insurance

premiums being 0.65% of GDP, the opportunities in the Indian market place is

immense. The next five years will be challenging but those that can build scale and

market share will survive and prosper.

Present Scenario of Insurance Industry

India with about 200 million middle class household shows a huge untapped

potential for players in the insurance industry. Saturation of markets in many

developed economies has made the Indian market even more attractive for global

insurance majors. The insurance sector in India has come to a position of very high

potential and competitiveness in the market. Indians, have always seen life

insurance as a tax saving device, are now suddenly turning to the private sector that

are providing them new products and variety for their choice.

17


Consumers remain the most important centre of the insurance sector. After the

entry of the foreign players the industry is seeing a lot of competition and thus

improvement of the customer service in the industry. Computerization of

operations and updating of technology has become imperative in the current

scenario. Foreign players are bringing in international best practices in service

through use of latest technologies

The insurance agents still remain the main source through which insurance

products are sold. The concept is very well established in the country like India but

still the increasing use of other sources is imperative. At present the distribution

channels that are available in the market are listed below.

Direct selling

Corporate agents

Group selling

Brokers and cooperative societies

Banc assurance

Customers have tremendous choice from a large variety of products from pure

term (risk) insurance to unit-linked investment products. Customers are offered

unbundled products with a variety of benefits as riders from which they can

choose. More customers are buying products and services based on their true needs

and not just traditional moneyback policies, which is not considered very

appropriate for long-term protection and savings. There is lots of saving and

investment plans in the market. However, there are still some key new products yet

to be introduced - e.g. health products.

18


The rural consumer is now exhibiting an increasing propensity for insurance

products. A research conducted exhibited that the rural consumers are willing to

dole out anything between Rs 3,500 and Rs 2,900 as premium each year. In the

insurance the awareness level for life insurance is the highest in rural India, but the

consumers are also aware about motor, accidents and cattle insurance. In a study

conducted by MART the results showed that nearly one third said that they had

purchased some kind of insurance with the maximum penetration skewed in favor

of life insurance. The perceived benefits of buying a life policy range from security

of income bulk return in future, daughter's marriage, children's education and good

return on savings, in that order, the study adds.

Trend and Growth of Insurance Industry

19


Current Income of Insurance Companies

Market shares among Private players in India as on Mar 2012

20


Global view of Insurance:

Asian Insurance Industry

As insurance companies seek growth opportunities in the Asia-Pacific region, they

confront significant opportunities. Domestic insurance markets in much of the

region have improved, as a growing number of consumers seek to purchase

insurance. Additionally, the regulatory systems across much of the region have

become more sophisticated. Some challenges, of course, remain.

Since Asia-Pacific is a highly diverse super-region with respect to different

countries’ economic development and insurance penetration, the rate and drivers of

growth vary on a market by- market basis. Mature markets, for example, are more

saturated insofar as insurance penetration. Developing and emerging markets, on

the other hand, offer greater growth opportunities for companies prepared to invest

for the long haul. Ernst & Young anticipates further regional evolution, but not

revolution, in Asia- Pacific markets in 2011. Each insurer’s strategic prioritization

and response to the opportunities presented may reap significant rewards. Early

movers may especially benefit by their immediate actions, while the insurers who

wait to discern the short-term mistakes of others may similarly attain valuable

traction. Indefinitely postponing a response to the current market opportunities

seems ill advised, given the chief attraction of the rate.

The worlds fastest this alone helps explain why many multinational insurers are

either preparing plans for further investment in the region, or are in the thick of

implementing them. By 2015, approximately 39% of the world’s economy is

predicted to be in Asia-Pacific.

21


Ernst & Young has identified three key issues that will influence insurers looking

to share in this growth in 2011:

• Adjusting and expanding distribution strategies amid shifting demographics and

consumer buying patterns

• Developing strategies to shape and comply with the heightened pace of local and

global regulatory and accounting developments

• Developing dependable capital sources required to support accelerating business

growth

Europe Insurance Industry

The European insurance industry enters 2011 financially stronger than it was at the

beginning of 2010. Strengthening of the credit and equity markets, combined with

reductions in claims frequency in 2009 and 2010, has improved the industry’s

capitalization, solvency and profitability. Efforts to maintain and increase capital

will continue in 2011, as insurers prepare for the impending implementation of

Solvency II and Basel III. Macroeconomic conditions indicate that 2011 will likely

be another year in Europe of low GDP growth, low interest rates and moderate

equity market performance. Ernst & Young’s baseline Euro zone Economic

Forecast for 2011, published in December 2010, projects a moderate slowdown

over the year, with GDP falling to 1.4% in 2011 from 1.7% in 2010, and inflation

forecast to remain steady at 1.5% to 1.6%.

22


At these levels, inflation poses no immediate threat to growth. Even if the

economic recovery continues, insurers may find that the assets underpinning their

balance sheets have decreased in value. Questions concerning the impact of the

European sovereign debt crisis also remain, albeit the effect may vary for

individual countries.

The sluggish economy and low interest rate environment challenge all segments of

the European insurance industry to achieve superior growth. Non-life premiums

across the region were poor in 2010, while profitability in both the non-life and

reinsurance sectors will continue to be challenged by the soft market, the need for

continuing expense reductions and the end of loss reserve releases supporting

profitability. Business demand for traditional non-life products will remain

especially listless in 2011 due to the slow business growth. At the same time, risks

relating to continued advancements in technology and catastrophic weather events,

as well as fraud and litigation exposure, are increasing. A key question is how

catastrophic losses in 2010 might affect pricing this year.

On the life side, premiums improved modestly in 2010. As Europe’s population

ages and the countries grapple with demographic challenges to their social welfare

systems, especially those parts related to retirement benefits, it creates

opportunities for insurers to provide products and services in the retirement space.

The downside is the low interest rate environment, which reduces profitability of

guaranteed products. Continued high unemployment also makes it difficult

financially for many individuals to purchase new products. A key question facing

life insurers is whether the emerging capital requirements will hinder their ability

to meet consumer needs.

23


Ernst & Young identified five risks and opportunities for European insurers in

2011 as they encounter uncertain economic and regulatory conditions in their

pursuit of growth:

• Manage critical capital and risk challenges

• Develop distribution flexibility and support systems

• Improve process efficiency and develop new markets

• Focus on non-life loss control

• Optimize corporate structure and domicile

US Insurance Industry

The US life and annuity insurance industry enters 2011 with a stronger balance

sheet, reasonable earnings momentum and slightly rising direct premiums, albeit at

the expense of a declining base. Going forward, the industry confronts a climate of

broad regulatory and economic uncertainty in the coming year and beyond. In this

environment, insurers will need to create new products and services and leverage

distribution channels to increase top-line growth, while paring costs and un

profitable risks to drive bottom line earnings.

The latter requires simplifying the business and product portfolio, improving

operational efficiency and squeezing earnings out of a stagnant revenue base, as

the slowly growing economy makes it difficult to attract new customers and retain

existing ones. Low interest rate conditions compound these problems, challenging

life and annuity insurers to generate competitive product returns. Companies that

clearly understand these issues and react quickly and prudently in their strategic

core businesses will gain a competitive advantage.

24


Looming regulatory changes such as those posed by the Dodd-Frank Wall Street

Reform and Consumer Protection Act (Dodd-Frank) are still in the process of

being interpreted and implemented—not to mention possibly revised.

These changes pose strategic and competitive challenges to life and annuity

insurers. As insurers address these concerns, they must be careful to preserve their

financial strength. Nevertheless, there are opportunities in deploying rebuilt capital

to reposition and grow their businesses and improve future earnings.

Ernst & Young has identified four issues that will influence the US life and annuity

insurance industry in 2011:

• Responding to the changing regulatory environment

• Establishing capital and risk management solutions post-crisis

• Improving operational efficiencies to control cost

• Reinventing products and distribution to energize growth

25


COMPANY PROFILE

Bajaj allianz is the joint venture of Bajaj Auto Ltd and the Allianz Insurance Company. It was established in the year of 12th March 2001.

ALLIANZ COMPANY:

Allianz Company was a German based company which was established I the year 1890. The Head quarter is located in Munich at Germany. Allianz network extend the group over 7 countries. It serves to 60 million clients’ worldwide. Core business is General insurance, Life insurance, and Health insurance and Asset management.

Features of the company are

World’s largest insurance company by revenue –Rs520353cr (euro96.9billion)

Worldwide 2nd by gross written premiums-Rs477930cr (euro 89 billion)

3rd largest assets under management (AUM) and largest amongst insurance

companies

11th largest corporation in the world

50% of globe business from life insurance, close to 60 million lives insured

globally

Established in 1890, 120 years of insurance expertise

More than 70 countries,173750 employees worldwide

Insurance to almost half of the fortune 500 companies

26


BAJAJ AUTO LTD:

Bajaj auto was incorporated in 1945 by the Bajaj family. Today it is ranked as 4 th

largest in world and 1st in India in automobiles. It sells 1-2 million vehicles per annum.

In fiscal 2000-2001 a total of 30589 two & three wheelers have been exported amounting to a turnover of Rs.1341 million.

Allianz Bajaj LIC is the culmination of two giant corporate whose mottos is providing quality product in the arena of Life and Health insurance in India.

Features of the company are

One of the largest 2 and 3 wheeler manufacturers in the world

21 million + vehicles on the road across the globe

Managing fund of over Rs5200cr

Bajaj auto finance one of the largest companies in India

Rs8934cr turnover and profits after tax of 932cr in 2007-08

BAJAJ ALLIANZ LIFE INSURANCE COMPANT LIMITED:

Baja auto ltd and Allianz insurance company had joined their hands to do the insurance business in India. Bajaj allianz insurance started its journey on August 3, 2001 when it received the certificate of registration from Insurance Regulatory and Development Authority (IRDA). . The company is authorized paid up capital of Rs.110 crore. Bajaj auto holds 74% and the remaining is held by the Allianz Company, Germany.

27


Fact sheet of Bajaj Allianz:

Date of Incorporation 12th March 2001

Started operations on 3rd August 2001

Head office Pune, India

World Wide Web Address www.bajajallianz.com

Toll free number 1800-209-5858

Brand statement Jiyo Befikar

Chairman Mr. Rahul Bajaj

MD & Chief Executive Officer Mr.V.Philip

Total asset under management Rs. 35,545 crore

Solvency ratio* 503%

Claim settlement ratio NOP 92.7%

Total no. of offices 1,044

Latest award won Skoch Financial Award for contribution towards financial inclusion through Life Insurance

*The values are as on 31st December 2011All the other figures are as on 31st March 2012

As at the end of March 2009, the income of Bajaj Allianz insurance went up to Rs.2, 866 crore with the growth of 11% over the previous year. It also registered a

28

http://www.bajajallianz.com/


net profit of Rs. 95 crore, highest by any private insurance company, in the last financial year

No.1 private life insurance in Retail business, leading by Rs.339 cr The fastest growing private life insurance company in India, with a growth

rate of 380% Have sold over 34,72,875(3.4 million) polices till date Is back by network of 700 offices spanning the country Assets under management Rs.35,545 cr Share holder capital base of Rs.700 cr Largest distribution network to reach the customers across the country with

2, 13,000 agents, 1100 offices in 840 towns, 200 corporate agents and banc assurance partners.

Product tailored to suit your needs Decentralized organization structure for faster response Wide reach to serve you better a national wide network of 400 branches Specialised departments for banc assurance, corporate agency and group

business Highest standard of customer service and simplified claims process in the

industry Bajaj Allianz is the first life insurance company of India which is in profit &

the profit is 82 crs for 2008-2009 Gross written premium 97 billion in current year where as 53 billion

previous year Market share 10.3 in current year where as 7.4 in previous year Policies 3.7 million in current year where as 2.1 million in previous year 12 new products are introduced Currently 32 individual products and 9 group products are offering by Bajaj

Allianz Bajaj Allianz last year profit after tax Rs.440 million Strong tele marketing and direct marketing team Accelerated growth

Vision of the company:

To be the best insurance company in India

29


To be the first choice insurer for Customers To be the preferred employer for staff in the insurance industry To be the number one insurer for creating shareholder value.

Mission of the company:

As a responsible , customer focused market leader, Bajaj Allianz is determined to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money.

Values of Bajaj Allianz:

Customer delight the guiding principle Ensuring world class solutions and services Offering customized products Transparent benefits

Company products:

1. Individual plans2. Group insurance3. Micro insurance

Individual Plans

30


Unit Linked Insurance Plans

Traditional Plans

Pension Plans

Life Health Insurance for Hospitalization

Term Insurance Plans

Women insurance plan:

Unit Linked Insurance Plans

Market linked insurance plans invest the premium in to the equity, debt and cash

markets by the way of allocating units, which like any other mutual fund have a

NAV and the customer is free to switch between one fund class to another

depending on the risk factor he wishes to be in. ULIPs offer a better return than the

traditional endowment plans and offer a great deal of flexibility along with great

returns making them the finest product offering. We at Bajaj Allianz Life

Insurance have developed a number of Unit Linked Insurance ULIP products

which range from single premium to a regular premium option along with

investment funds ranging from index funds to mid-cap funds and debt market

linked funds.

It is divided into

Regular Premium

Single Premium

Regular Premium:

31


1. iGain III

2. Money Secure Insurance Plan

3. Assured Protection Insurance Plan

4. Smart Insurance Plan III

5. Max Advantage Insurance Plan

1. Invest gain III investment plan:

Features:

Exclusive ULIP that you can buy online.

High allocation of 98% from the start of the policy.

100% allocation from 6th policy year onwards.

Inbuilt accidental death cover.

Option to select policy term of 10/15 or 20 years and premium paying term

of 5 years to policy term.

Automatic annual increase in sum assured from 6th policy anniversary to

suit your needs.

Choice of 7 investment funds to invest in as per your risk appetite.

Two investment portfolio strategies to manage your investments better;

including the Wheel of Life portfolio strategy, which will help you to

balance and safeguard your investment.

32


Benefits:

Surrender Benefit

You have the option to surrender your policy anytime from the 6th (sixth) policy

year. The surrender value payable will be equal to the Fund Value as on date of

surrender of the policy. The policy shall thereafter terminate upon payment of full

surrender value.

However, on discontinuance of payment of regular premium during the first five

policy years, the discontinuance value as on date of discontinuance will be equal to

the regular premium fund value minus the discontinuance charge, if any, plus top

up premium fund value, if any.

Death Benefit

In case of death of the life assured before attaining the age of 60 years: The death

benefit payable would be the higher of sum assured minus the value of partial

withdrawals made in the last 24 months prior to the date of death, or the fund value

as on date of receipt of intimation of death at the Company's office. The death

benefit payable will be calculated separately for regular premium and top up

premiums.

In case of death of the life assured on or after attaining the age of 60 years: The

benefit payable would be the higher of sum assured minus the value of partial

withdrawals made within 24 months before attaining the age of 60 years and all

partial withdrawals made after attaining the age of 60 years, or the fund value as on

the date of receipt of intimation of death at the Company's office.

33


The death benefit payable will be calculated separately for regular premiums and

top up premiums. In case of death of the life assured due to an accident after

attaining the age of 7 years: An additional sum assured in respect of regular

premium and top-up premium of the policy is payable.

The sum assured will increase by an annual premium at each policy anniversary

starting from the 6th (sixth) policy anniversary. The death benefit and the mortality

charge shall be calculated referring to such enhanced sum assured. The policy will

terminate on the death of the life assured.

2. Money Secure Insurance Plan

Requirements change with time. Keeping in line with changing trends and new

horizons, Bajaj Allianz Life Insurance Co. Ltd presents 'Bajaj Allianz Money

Secure Insurance Plan'.

Presenting an investment plan that provides you the dual advantage of planning for

your financial security and getting the best returns possible for every rupee you

invest. The investment plan is structured to provide you a secure life cover and

guaranteed maturity benefits aligned with our commitment to give you the best of

both worlds.

The plan offers you key benefits:-

Secure your investments with guarantee of minimum maturity value.

Option to select your policy term and premium paying term.


suit your need.

34


3. Assured Protection Insurance Plan

With Bajaj Allianz Assured Protection Insurance Plan we have formulated a

unique combination of protection and prospects of attractive returns with

investments in various mix of assets to make a perfect plan to last you a lifetime of

prosperity and happiness.

Highlights of the Assured Protection Plan:

Get 100% allocation from the 10th policy year.

Extra protection with wider accidental cover.

Choice of 7 investment funds to invest in.

Option to select policy term of 10, 15 or 20 years and premium paying term

from 7 years to policy term.

Automatic annual increase in sum assured from 6th policy anniversary.

Choose between Investor Selectable portfolio strategy and wheel of life

portfolio strategy.

Get maximum flexibility to pay top-up premium and partial withdrawal any

time after 5th policy year.

4. Smart Insurance Plan III - Systematic Savings ULIP

Security in the long run - as a Non-Resident Indian, we understand your need for

complete financial security for you and your family. The Bajaj Allianz Smart

Insurance Plan III is a unit linked insurance plan that gives you a unique

combination of maximum protection and maximum savings. Invest with us, and

stay assured with the knowledge that you'll always have something to fall back on.

35


Features of Smart Insurance Plan:

Inbuilt Accidental Death cover.

Refund of 100% of the total allocation charge as loyalty addition.


suit your needs.

Option to select policy term of 10, 15 or 20 years and premium payment

term from 6 years to policy term.

Choice of 7 investment funds to invest in as per your risk appetite.

5. Max Advantage Insurance Plan

With the stock markets in a flux, you need an investment plan that keeps your

money safe – even as it gets you the highest possible returns. The Bajaj Allianz

Max Advantage Insurance Plan gives you the guarantee to encash your units at

maturity, at the highest unit price achieved by the fund over the 10-year term of

your policy.* Invest in the best – without risk! Invest in the Bajaj Allianz Max

Advantage Insurance Plan and make sure that once your returns go up, they stay

up.

Benefits:

Refund of 60% of total regular premium allocation charge as Guaranteed

Addition at maturity.

Option to select / change premium payment term from 5 to 7 years.

Flexibility to pay unlimited top-up premium** and make partial

withdrawals. **

Option to choose from 5 investment funds to invest.

Unlimited free switches.

36


Single premium:

1. Shield Insurance Plan

2. Flexi Advantage Insurance Plan

3. Wealth Insurance Plan

1. Bajaj Allianz Shield Insurance Plan

Your savings mean everything for you – secure it now! We, at Bajaj Allianz

understand the value of your money and present a single premium fixed-term unit-

linked insurance plan. So planning for a target amount is made easy now.

Shield Insurance Plan Benefits:

Single premium plan with fixed term of 10 years.

Option to decrease sum assured.

Partial withdrawals anytime after five years.

Unlimited free switches.

Optional riders to enhance your protection.

2. Bajaj Allianz Flexi Advantage Insurance Plan

When we consider investing a lump-sum amount, we look at various factors such

as returns, benefits, degree of customization to suit our need and most importantly

flexibilities.

Presenting... Bajaj Allianz Flexi Advantage Insurance Plan, a single premium plan

that gives you the added advantage of one time investment with a life-long

flexibility

37


3. Bajaj Allianz Wealth Insurance Plan

Bajaj Allianz Wealth Insurance Plan is a hassle-free way of investing your money

and at the same time taking care of your insurance needs. The wealth insurance

plan gives you the benefits of paying a single premium, so you don't have to worry

about due dates, repetitive paperwork and renewals or constantly make phone calls

to your financial advisor.

Highlights Wealth Insurance Plan:

Loyalty addition up to 7% of single premium at the end of the fifth year. **

Option to receive the maturity benefits as settlement option.

Maximum flexibility to pay unlimited top-up premium and make partial

withdrawals. ***Conditions Apply.

Option to decrease your sum assured.

Systematic switching option to manage your investments better.

Optional additional rider benefits to enhance your protection.

Traditional Plans

Saving Plans that offer bonus are completely safe and are ideal for long term

investments. Our products offer additional benefits including 4 times life cover at

little extra costs, limited premium payment terms and compounded reversionary

bonuses. These features make our traditional plans excellent long term saving

instruments.

It is divided into

Endowment

Money Back Plan

38


Endowment Plan:

Endowment plans serve two major purposes - Life Cover and Savings. Under an

endowment plan, the insured receives a lump sum after a specified maturity period

or on earlier death. Typically maturity periods range from 10, 15 and 20 years till a

certain age limit.

Our Endowment Insurance plans offer additional benefits including 4 times life

cover at little extra costs, limited premium payment terms and compounded

reversionary bonuses.

1. Invest Gain

2. Save Care Economy SP

3. Life Time Care

4. Super Saver

1. Invest Gain Life Insurance Plan with Family Income Benefit

Invest Gain is a specially designed plan that offers a unique combination of

benefits that help you develop a sound financial portfolio for your family.

Benefits of this Plan are:-

Comprehensive Accident Protection.

Critical Illness Benefit.

Hospital Cash Benefit.

4 Times Life Cover at a little extra cost. Limited premium payment option

available.

39


Conditions Economy Gold/Diamond/Platinum

Minimum age Entry 0(Risk from 7) 18

Maximum age Entry 65 50

Maximum age Maturity 70 70

Minimum Term 5 5

Maximum Term 40 40

Minimum Sum Assured 50000 50000

Max. Sum Assured --- ---

Minimum Premium 5000-Pa/2500-Half

yr/1250-Quar/500-Mon

5000-Pa/2500-Half yr/1250-

Quar/500-Mon

Plans Maturity Benefit Death Benefit

40


2. Save Care Economy SP - Endowment Plan

Single Premium Endowment Plan provides for savings with high risk cover for 10

years and also participates in the profits of the company.

It offers you high risk cover with easy liquidity and high returns.

A single premium endowment plan that participates in the profits.

10 year Investment plan.

Benefits payable on maturity.

Loans available.

3. Life Time Care - Whole Life Plan

41

ECONOMY Sum Assured + Bonus Sum Assured + Bonus

GOLD Sum Assured + Bonus 2 * Sum Assured + Bonus

DIAMOND Sum Assured + Bonus 3 * Sum Assured + Bonus

PLATINUM Sum Assured + Bonus 4 * Sum Assured + Bonus


A whole life plan, which provides survival benefits at the age of 80, thereby

making sure you are financially secure at the time when you need it the most.

Benefits:

Accidental Death Cover and Disability Cover.

Critical Illness Cover and Hospital Cash Cover.

Waiver of Premium Benefit.

4. Super Saver Endowment Insurance Plan:

Extra Protection with in-built Accidental Death Benefit.

Guaranteed Additions of amount equal to 4% of Sum Assured at the end

of each policy year*

Tax benefits on premiums paid and benefits received under Section 80C

and

Death Benefit, Maturity Benefit and Surrender Value are eligible for tax

benefits under Section 10(10)D.

Regular saving is the best tool to protect ones family. We at Bajaj Allianz

Life Insurance realize the value of your saving and present a non-linked,

participating regular premium endowment plan, which will help you to save

regular amounts for a safer tomorrow. Also get extra benefits with

Guaranteed Additions of 4% of sum assured at the end of each policy year.

Parameter Minimum Maximum

Annual Premium Rs. 1,055/- No Limit

Sum Assured Rs.20,000/- No limit

42


Age at entry 18 Years 60 Years

Policy term 10 Years 30 Years

Features:

Extra Protection with in-built Accidental Death Benefit.

Guaranteed Additions of amount equal to 4% of Sum Assured at the end of

each policy year, provided all premiums till date have been paid.

Policy shall remain in-force for full sum assured for 2 successive years even

if you forget to pay your premiums on due date.

Tax benefits on premiums paid and benefits received under Section 80C and

Death Benefit, Maturity Benefit and Surrender Value are eligible for tax

benefits under Section 10(10)D.

Money Back Plan:

Money back plans are Traditional Insurance plans that provide the investor with

returns at regular stages of life.

1. Cash Rich Insurance Plan

2. Super Cash Gain Insurance Plan

3. Cash Gain

4. Child Gain

1. Cash Rich insurance plan:

43


At retirement what we look at is financial security. A flow of guaranteed

income provides that financial security.

Bajaj Allianz Cash Rich plan offers guaranteed cash back of 5% of sum

assured per year along with a cash bonus, which would be your regular

income.

Features:

Accumulated compound reversionary bonus on completion of premium

payment term.

Cash Back benefit of 5% of the sum assured plus cash bonus, if any declared

every year, during the cash back period end.

Sum Assured plus terminal bonus, if any on maturity of the policy.

Select your policy term from 10 years to 65 years depending on your

financial need.

Select your limited premium paying term (PPT) from 5 years to 30 years, in

multiple of 5 only.

2. Super cash gain insurance plan :

Bajaj Allianz Super Cash Gain Insurance Plan is a participating endowment plan

which gives you guaranteed cash-backs at fixed policy intervals during the policy

term. Your premium under the plan will, apart from your age, depend on the policy

term, the base sum assured, the plan variant (Silver, Gold, Diamond or Platinum)

and the riders chosen by you.

If all the due premiums are paid, 20% of your base sum assured shall be paid to

you thrice as cash-back at specific policy intervals as shown in the benefit section

below.

44


On maturity date, 40% of your base sum assured along with vested bonuses shall

be paid to you as maturity benefit. On death of the life assured at any time during

the policy term, irrespective of any cash-backs paid to you, the full sum assured

along with the vested bonuses will be paid to the nominee as death benefit.

Plan Variants

You need to choose your sum assured (life cover) as a multiple of the base sum

assured, from the following four (4) plan variants:

Silver - with sum assured equal to the base sum assured

Gold - with sum assured equal to twice the base sum assured

Diamond - with sum assured equal to thrice the base sum assured

Platinum - with sum assured equal to quadruple the base sum assured

The surrender value, survival benefit and the maturity benefit will be determined

on the basis of only the base sum assured under your policy.

Benefits:

Option to select upto four times your base sum assured as life cover.

Option to select policy term of 12, 16, 20 or 24 years.

Benefit from shorter premium payment term as no premiums are payable for

the last five policy years.

Get 20% of the base sum assured as cash-back at regular intervals, which

you may take as cash or ask us to adjust against your due or future premium.

Flexibility to pay your future premiums in advance and avail discounts.

Option to

45


o Keep your policy in force for full sum assured in case you miss

paying your premiums on due dates, provided you have paid at least 3

years' premiums in full.

o Convert your policy to a "single premium term cover with return of

premium (ROP)" policy, if you miss paying your premiums on due

dates provided you have paid at least 5 years' premiums in full.

Get more value for your money with high sum assured rebate on premium.

Optional riders to enhance your protection.

Survival Benefit

If you have paid all due premiums till the due date of the cash-back payment, you

will receive 20% of the base sum assured as cash-back at the end of each of the

following policy years.

Policy Term Policy Year end for

1st Cash-Back 2nd Cash-Back 3rd Cash-Back

12 3 6 9

16 4 8 12

20 5 10 15

24 6 12 18

46


If the policy is paid-up or lapsed, the cash-backs shall not be payable. If policy is

in auto-cover, the cash-back will be 20% of the base sum assured less all the

premiums due-but-unpaid (to the extent the survival benefit amount can support

the premiums due in full) along with applicable interest.

Maturity Benefit

You will receive 40% of your base sum assured plus applicable bonus as

maturity benefit on maturity date, provided all due premiums have been

paid.

However, if your policy is paid up, then the maturity benefit shall be the

reduced base sum assured plus the vested bonus.

In case your policy is converted to a single premium term cover with

return of premium (ROP), the maturity benefit shall be the single

premium, as determined as on the date of such conversion.

Death Benefit

In case of unfortunate demise of the life assured during the policy term,

the Company shall pay the sum assured plus applicable bonus to the

nominee, provided all due premiums have been paid.

The sum assured shall depend upon the plan variant chosen by you, which

will be multiple of the base sum assured.

If the policy is in auto cover, the above death benefit shall be reduced by all

the due-but-unpaid premiums along with applicable interest.

In case of unfortunate demise of the life assured while the policy is paid

up, the Company will pay the reduced sum assured plus the vested bonus to

the nominee.

47


In case of unfortunate demise of the life assured after the policy has

been converted to a single premium term cover with return of premium

(ROP), the Company will pay the revised sum assured. No death benefit

shall be payable in case your policy is lapsed.

Additional Rider Benefits

You can enjoy extra coverage by choosing the optional additional rider benefits at

a nominal extra cost. The riders available with Bajaj Allianz Super CashGain

Insurance Plan are:

Bajaj Allianz Supplementary Death Benefit

Bajaj Allianz Comprehensive Accidental Protection Benefit

Bajaj Allianz Family Income Benefit

Bajaj Allianz Critical Illness Benefit

Bajaj Allianz Hospital Cash Benefit

3. Cash Gain - Money Back Plan

Money back plan which guarantees 125% payout + bonuses. Quadruple life cover.

5 easy payouts which give upto 125% + bonuses.

Additional Benefits:

Accidental Death Benefit and Disability Benefit.

Critical Illness Benefit and Hospital Cash Benefit.

Family Income Benefit: In case of death or accidental total permanent

disability of insured, all future premiums are waived and 1% of the sum

assured is paid monthly.

48


4. Child Gain - Life Insurance Plans for Children

"Because your child has miles to go and you have promises to keep!"

Taking care of a child is perhaps the most important job a parent can have. It is but

natural that you would like to give your child your best, and therefore, this is the

time when careful financial planning can help you fulfill the aspirations that you

have for your children.

The Bajaj Allianz Child Gain Solutions help you to enjoy the joys of parenthood

responsibly, with the reassurance of a secure future for your child.

Pension Plans

We at Bajaj Allianz Life Insurance offer Pension Plans which will make sure that

we are there to support you in every stage of your life and your savings in pension

plan insurance today become your wealth and support for your future years to

come.

Pension Guarantee Plan

Pension Guarantee Plan ensures regular Income after Retirement. for Life. With

Bajaj Allianz Pension Guarantee Plan, you can ensure a regular income after

retirement. The plan offers you a range of immediate annuities to choose from. All

49


you have to do is pay a lump sum amount to Bajaj Allianz Life Insurance

Company, and the annuity payments will start after expiry of

monthly/quarterly/half-yearly/yearly interval corresponding to the payment mode

selected by you. Under all options, annuity is payable for life, so you don't have to

worry about your income stopping at any age.

Important details of the "Bajaj Allianz Pension Guarantee"

Plan

Minimum Age at Entry 40

Maximum Age at Entry 80

Minimum Purchase Price Rs.25,000

Minimum Annuity Instalment Rs.1,000

The Pension Guarantee plan offers a 15 day free look period and tax benefits under

section 80C.

Life Health Insurance for Hospitalization

At Bajaj Allianz Life Insurance we offer unique hospitalization-cum-insurance

plan that takes care of your hospitalization bills and also provides crucial financial

support to your dependents in case of your unfortunate death.

Our health insurance plans offer a sound protection to safe guard your family from

any medical emergencies and will make sure that financial problems are least of

your worries in trying to get yourself treated.

We offer cash less Mediclaim facility across 2000 hospitals in over 300 towns and

provide best treatment in the finest hospitals with our health insurance products.

50


1. Health Care

2. Family CareFirst

1. Health Care - A health insurance plan to help you fight medical costs

Health is Wealth... particularly when health care costs are getting higher every

year. The emotional and financial burden of a serious accident, major illness or

surgery often lasts beyond the immediate period of the trauma. Bajaj Allianz

HealthCare protects you and your family from the high expenses associated with

medical care and provides you with a comprehensive financial cushion against

various health hazards. The benefits under this plan are payable in addition to the

benefits under all other plans that you may have, including a Medi-claim policy.

Benefits in the Health Care Plan:-

Life Cover is payable on death of the life assured.

Hospital Cash Benefit

Post Hospitalization Benefit

Surgical Benefit

Critical Illness Benefit

Accident Permanent Total/Partial Disability (APT/PD)

Multiple Claims:- Hospital Cash, Post Hospitalization Benefit & Surgical

Benefit can be claimed on multiple occasions as per the coverage selected

(subject to the overall limits) provided the policy is in force at the time of

claim.

51


2. Family CareFirst - A health insurance plan for the entire family

The health of your family is very important to you. When faced with

hospitalization or one or more family members, the medical bills can severely dent

your savings. The cost associated with hospitalization might be very high and you

need to be better prepared for such an emergency.

This unique hospitalization plan gives you a 3-year health cover for your entire

family and allows you to renew the policy after every 3 years to keep your family

covered till the age of 74 years. So no separate accounts, repetitive paperwork or

payment adjustments for each member. Secure your entire family in one shot.

Key Benefits

Coverage from 3 months to age 74 with guaranteed renewals

3 year premium guarantee for each policy term

Hospitalization Cover in leading hospitals across the country

15% discount on prevailing premium on every renewal

No claim bonus in the form of increase in sum assured @5% every year

Day Care Treatment for 140 day care procedures

Pre-Hospitalization and Post-Hospitalization Benefit

Reimbursement of Ambulance expenses

Choice to select Health Critical Illness rider

Choice to include Your spouse, children and parents

52


Cash Less Service Facility in leading hospitals across the country

Term Insurance Plans

The sole objective of Term insurance policy is to serve the protection needs of the

customers and by doing so, safeguard one's family from the financial implications

of unfortunate circumstances that one cannot foresee.

These term insurance plans are pure risk cover plans with or without maturity

benefit. These pure risk plans cover your life at a nominal cost and you may want

to take this term insurance plan to cover your outstanding debts like a mortgage, a

home loan etc.

Term Plans are

1. Protector

2. Term Care

3. New Risk Care II

4. iSecure Insurance Plan

5. iSecure Loan Insurance Plan

6. iSecure More Insurance Plan

1. Term Insurance Protection Plan

53


Protector Plan by Bajaj Allianz is a mortgage term insurance plan that covers the

outstanding principal amount of a loan. It is an economical way to protect the

family from the burden of repayment of the loan in case of death of the loanee.

The term insurance protector plan is designed to pay a sum insured that will be

equal to the outstanding principal amount of the loan due. The Bajaj Allianz

mortgage term insurance protector plan offers you the convenience of choosing

between two premium payment options Regular Premium Payment and Single

Premium Payment.

It is an economical way to protect the family from the burden of repayment

of the loan in case of death of the loanee.

The term insurance plan offers you the convenience of choosing between

two premium payment options - Regular Premium Payment & Single

Premium Payment.

Joint Life availability - the option to cover the co-applicant of the loan under

this plan.

2. Term Insurance - Term Care

Benefits:

Regular and Single Premium payment options.

The only pure term insurance plan in the market to provide Hospital Cash

Benefit.

Enhanced Protection options available through Additional Rider Benefits.

Tax benefits on premiums paid and benefits received under this Policy as

per the existing Income Tax Laws.

54


The 'Bajaj Allianz Term Care' Plan is a term insurance plan. It is an

economical way of providing for one's life cover and at the same time

ensuring that the premiums paid are returned at maturity.

The 'Bajaj Allianz Term Care' Plan offers you the convenience of choosing

between two premium payment options.

Regular Premium Payment - Premium payment throughout the selected

term.

Single Premium Payment - One time premium payment for the selected

term at commencement.

Parameter Details

Minimum Entry Age 18 years

Maximum Entry Age 50 years

Maximum Age at Maturity 65 years

Minimum Policy Term 5 years

Maximum Policy Term 40 years

Minimum Sum Assured Rs. 1,00,000

55


Maximum Sum Assured Rs. 10,00,000

Minimum Premium (Rs.) Rs. 1500/- for Yearly, Rs. 1500/- for Half Yearly

The minimum premium for Single Premium option shall be Rs. 6,000.

Premium Payment Mode Premium can be paid in Half Yearly, Yearly or

Single Premium.

Benefits:

Death Benefits

Accidents are always sudden and sometimes fatal. You can't lessen the emotional

shock, but you can certainly soften the financial one. Bajaj Allianz Accidental

Death Benefit gives your loved ones something to start with after the permanent

loss of your income by paying double the basic Sum Assured. The total Accidental

Death Benefit shall however be subject to a maximum of Rs. 10,00,000/- under all

policies taken with Bajaj Allianz together.

Accidental Permanent Total/Partial Disability Benefit

Accidents are unpredictable and so are the consequences. This may lead to a

disability - partial or total. The Bajaj Allianz Accidental Permanent Total/Partial

Disability Benefit provides a financial cushion against such misfortunes.

Type of Disability Benefits

Accidental Permanent Partial Disability 50% of Sum Assured *

56


Accidental Permanent Total Disability 100% of Sum Assured **

* Subject to a maximum of Rs. 5,00,000/- under all policies with Bajaj Allianz

taken together.

** Subject to a maximum of Rs. 10,00,000/- under all policies with Bajaj Allianz

taken together.

Critical Illness Benefit (CI):

Some illnesses are critical. They not only alter your life's pattern but also result in a

financial drain. Bajaj Allianz Critical Illness Benefit softens the impact on your

family by paying out the Critical Illness Benefit under the plan immediately, while

other policy benefits continue. We cover 11 Critical Illnesses.

Waiver of Premium Benefit:

An accident may lead to permanent total disability limiting your ability to earn.

The Bajaj Allianz Waiver of Premium Benefit is a helping hand when you need it

most. It keeps your insurance cover alive by waiving off future premiums and

enables you to live up to your commitments.

Hospital Cash Benefit (HCB):

The worry of settling hospital bills (room charges) adds to the trauma of

hospitalization. Bajaj Allianz Hospital Cash Benefit reduces this financial burden

and helps you to recover with peace of mind.

Tax Benefits

57


Premiums paid are eligible for Tax Exemption under Section 80(C) of the Income

Tax Act and maturity and death proceeds are Tax Free under Section 10(10D) of

the Income Tax Act. The premiums for the Critical Illness benefit and the Hospital

Cash benefit will be eligible to Tax Exemption under section 80(D) of the Income

Tax Act.

Maturity Benefits: Since this plan is a pure term plan, there are no maturity

benefits

3. Term Insurance - New Risk Care II

Benefits:

Single Premium payment

Enhanced Protection options available through Additional Rider Benefits.

Rebates on premium in case of high sum assured.

In case of financial emergency, you have the option to surrender the Policy,

provided you have opted for single premium payment option.

Tax benefits on premiums paid and benefits received under this Policy as

per the existing Income Tax Laws.

Accidental Riders Benefits

We offer you an option to choose from 3 riders to customize your plan and

enhance your protection to suit your changing needs.

Comprehensive Accident Protection(CAP): Covers against Accident and

Disability

Critical Illness Benefit (CI): Covers you against 11 defined critical

58


diseases

Hospital Cash Benefit (HCB): Reduces your burden against

hospitalization expenses

Death Benefits

In case of unfortunate death during the term of the Policy the nominee will

receive the full Sum Assured.

Tax Benefits

Premium paid will be eligible for tax benefit under Section 80C. The death

benefit will be eligible for tax benefit under Section 10(10) D as per the

prevailing tax laws.

Maturity Benefits

Since this plan is a pure term plan, there are no maturity benefits

4. ISecure plan:

You have always tried your best to fulfill all your responsibilities and take care of

your family. However, life comes with risks and unforeseen incidents can put your

family's financial security in jeopardy. Presenting the Bajaj Allianz iSecure

Insurance Plan; a level cover term assurance plan that secures your family's

59


financial needs by giving you a level term cover for high sum assured, but at a low

cost.

Features:

Get the advantage of a level term cover at low cost, especially for larger sum

assured.

Get rewarded for maintaining a healthy life-style, if applicable, with special

premium rates for non-smokers and medically fit non-smokers.

Benefit of attractive high sum assured rebate.

Flexibility to select your policy term of 10, 15, 20, 25 or 30 years depending

on your requirement.

Alter your premium payment frequency.

Include your spouse at a later date in your existing policy, if you are single

at present.

Choose additional rider benefit(s) for enhanced protection.

Plan to meet recurring expenses of your loved ones by opting for payment of

benefit in annual installments.

5. ISecure Loan Insurance Plan

ISecure loan insurance plan protects you from any loan liabilities This term

insurance plan is the best way to secure your family from any kind of loan

liabilities such as:

Home Loan

60


Personal Loan

Motor Loan

Credit card dues

Other Loans

6. ISecure More Insurance Plan

Bajaj Allianz iSecure More Insurance Plan; an increasing cover term assurance

plan that enhances your protection to meet your family's increasing financial

requirements; a term insurance plan that helps secure your family more & more as

the years go by.

5% increase in sum assured at each policy anniversary, upto a maximum of

twice the sum assured at policy inception

Higher Life Insurance cover at exceptionally affordable premium

Attractive high Sum Assured rebate

Self and Joint Life availability

Women insurance plan:

Women Insurance Today's lady is an inspiration to her family. She takes important

decisions in every household and at work. To cater to women's special needs we

offer innovative women specific plans which provide investment benefits, savings,

retirement solutions and medical insurance. Our special plans help mothers plan

61


for their children’s education saves for the future and take care of all medical

emergencies in the family.

Our Regular investment and savings plan, offer:

Investments along with critical illness benefits which provide good returns,

long term saving and protection in case of a medical emergency

Investment plans with accidental coverage

Children's education planning

Specialized retirement income plans for homemakers to provide a secure and

financial future.

Group Life Insurance

"One of the best ways for to increase group cohesiveness is to make your group

members feel cared for. Our group insurance scheme for your group members,

employees and their families show them that their organization cares not only for

them but also their families. At Bajaj Allianz Life Insurance we offer customised

62


group insurance policy, which safeguard your employees' interests and show your

commitment towards them.

Bajaj Allianz Life Insurance Group Plans offer:-

1. Financial stability to employees or group members

2. Ease of operations and fund management.

Group Credit Protection Plus Group Credit Protection Plus gives your

members and their families the heartening reassurance of your care; and peace of

mind at a very low cost in the event of premature demise of your member. Also it

is an economical way to protect the members' family from the burden of repayment

of any loan in case of death or accidental permanent total disability or critical

illness of the member. We bring you the Bajaj Allianz Group Credit Protection

Plus, a non-participating Group Insurance Plan.

Credit Shield Credit Shield is a Group Term Insurance Scheme that provides

basic insurance protection to people who have availed of a credit card from an

Institution/Bank

Group Suraksha Giving your members and their families the heartening

reassurance of your care. Give your members' family the complete reassurance of a

lasting financial security and peace of mind at a very low cost in the event of

his/her premature demise.

63


Sarve Shakti Suraksha Bajaj Allianz Sarve Shakti Suraksha Plan comes with a

host of features that allow your members to have the best of all worlds - Protection

and Investment with flexibility like never before.

Group Loan Protector Bajaj Allianz Group Loan Protector Plan is a single

premium group term insurance plan covering the outstanding amount of loan as per

the pre-fixed loan schedule. It is an economical way to protect the family from the

burden of repayment of the loan in case of death of the loanee.

Group Income Protection Group Income Protection is a combination of

temporary life annuity payable to the member as long as he is alive and lumpsum

death benefit payable to the nominee in case of the member's death.

Group Wealth Insurance Bajaj Allianz Group Wealth Insurance Plan is a unit

linked single premium non-participating group insurance plan suitable for

systematic savings for both the Employer-Employee and Non- Employer-

Employee groups such as Associations/Co-operatives, Affinity groups etc.

Group Term Life Giving your members and their families the heartening

reassurance of your care. Giving your members the complete reassurance of a

lasting financial security and peace of mind.

Group Save Plus This plan offers the unique opportunity for providing

adequate relief at a very low cost to the family of a member in the event of his/her

premature demise together with systematic savings to earn a market rate of

investment return from the well managed fund of the company.

64


Group Term Life in lieu of EDLI Group Term Insurance with added benefits

in lieu of EDLI

Group Leave Encashment Scheme Bajaj Allianz Group Leave Encashment

Scheme provides you with a host of features such as:-

1. Life Insurance Cover for your employees, with an option to include additional

rider benefit cover, at nominal cost.

2. Opportunity to invest in a fund having most appropriate balance of equity and

fixed interest securities at the judgement of our expert fund managers.

Group Annuity Bajaj Allianz Group Annuity plan provides assured regular

income to your member after his/her retirement. It does not stop here rather

provides option to the members to secure income for their spouse and/or receive

the purchase price back after his/her death.

Group Superannuation Gold A group superannuation scheme which can be

offered by an employer to their employees. The scheme helps in building a

substantial retirement fund thus offering a secured regular income flow after

retirement. Two options are available under this scheme, Defined Benefit and

Defined Contribution. The scheme provides for the contribution either from

Employer (non Contributory) or from both the Employer and Employees

(Contributory).

Group Gratuity Gold Bajaj Allianz Group Gratuity Gold provides you with life

Insurance cover for your employees, with an option to include additional rider

benefit cover, at nominal cost and an opportunity to invest in a fund having the

most appropriate balance of equity and fixed interest securities at the judgment of

our expert fund managers.

65


Group Employee Benefit

Our Group Employee Benefit Plan allows you to offer benefits to your employees

as part of your statutory or employee welfare requirements. Your financial

obligations towards such requirements increase with increase in number of

employees, their pay scales and tenure of employment. Our Plan helps you to make

provisions to meet your obligations by helping you to set and manage your funds.

Bajaj Allianz Group Employee Benefit Plan, a nonparticipating, unit linked, multi

featured plan which gives you "A Complete Employee Benefit Solution".

Micro Insurance

Micro insurance from Bajaj Allianz provide life cover, as well as additional

features like accident insurance, partial disability benefit and death benefit

66


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

equal to sum assured + vested bonus.

Life cover and Maturity benefit equal to sum assured + vested bonus

Guaranteed Surrender Value.

Avail additional benefits including Accidental Death Benefit & Accidental

Permanent Total / Partial Disability Benefit.

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.

Life Cover.

Maturity Benefit of 125%of the single premium payable on survival till the

end of the policy term.

Guaranteed Surrender Value.

Saral Suraksha Yojana The most economical term insurance policy with return

of premium on maturity.

Return of premium on maturity

Guaranteed Surrender Value

Avail additional benefits including Accidental Death Benefit & Accidental

Permanent Total / Partial Disability Benefit

Highlights of the Company:

67


Bajaj Allianz is second largest insurance company with market share of

20.1%. The company has managed to maintain its position on the back of

multi-channel distribution

Innovative product range which fulfill need of different age group & different

income class.

Highest no. of offices in private sector, at present company has opened 876

offices.

Huge agent network, Personal relationship with client is the key thing in the

insurance which is being well handled by the company on the back of huge

agent network of 2, 13,000 no of agent.

Popularity of ULIP as a potent combination protection with return has been

a major driver.

Bajaj Allianz has issued over 45 lakh individual policies since its inception

in Oct, 2001 & received a premium income of over Rs.10, 000 cr in total.

68


Company Achievements:

Bajaj Allianz has received “iAAA rating, from ICRA limited, an associate of Moody’s Investors Service, for Claims Paying ability. This rating indicates highest claims paying ability and a fundamentally strong position.

Bajaj Allianz General Insurance has received the prestigious a 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.

Distribution Channel:

Alternate channel:

Alternate channel refers to Business to Business (B to B) model. As I was duputed at KM Dastur Insurance Brokers

KMD (Company Profile)

69

Distribution channel

AgencyAlternatechannel

BankAssurance

CorporateDivision

Direct Marketing

BusinessProcureme

nts


K. M. Dastur & Company was founded in 1973 by the late Mr K.M. Dastur,

erstwhile Country Head of Norwich Union Insurance Company.

Headquartered in Mumbai with local branches in 12 other Indian cities, it is a

leading independent direct and reinsurance broker in Asian, African & Middle

Eastern markets. Represented overseas through offices in London, Dubai,

Casablanca, Kuala Lumpur, Moscow and Johannesburg.

K M Dastur is a private independent Company with a carefully selected

network of offices established to service our Clients. We value our

independence very highly as this ensures that our people have the liberty to

make the right decisions for our each of our Clients.

Vision of the company: KMD will be recognized as the best professional services

firm in the insurance industry worldwide.

Mission of the company: To render professional services of the highest order and

be recognized as a professional firm that consistently exceeds the expectations of

our clients and our people through commitment to learning, integrity and hard

work.

Quality Policy of the company: K.M. Dastur Reinsurance Brokers Pvt.Ltd. is

committed to satisfy & delight customers by meeting requirements though timely

error free and courteous service and to continually improve the effectiveness of its

services.

ABOUT THE TOPIC SPECIFY

70


I have done my project on the title of “Study about Bajaj Allianz and Consumer

Behavior towards Insurance Industry” in Bajaj Allianz. Baja Allianz is one of the

leading insurance companies in India and it plays the 2nd rank in holding the market

share among the private players in insurance sector. Company has won the Skoch

Financial Award for contribution towards financial inclusion through Life

Insurance. Company’s USP is speedy claim settlement and its process. In this

company I learned about the insurance industry, full details about the Bajaj Allianz

and its products. We come to know the products of Bajaj Allianz and we select a

particular product called Invest Gain Plan to pitch the customer. So that I learned

how to pitch the insurance product to the customer, how to handle the customer

queries. It is one of the best company where we can learn a lot.

71


RESEARCH DESIGN:

A research design provides the framework to be used as a guide in Collecting and

analyzing data. Market survey is one of the best examples of descriptive research.

This is a one shot research study at a given point of time, and consists of a sample

of the population of interest. Its advantages are that it gives a good overall picture

of the position at a given time. It can cover many variables of interest, and is not

affected by the movements of elements in the sample, because other elements can

be substituted for them. Our research is to discover the possible measures, by

detailed analysis, for the company which would be helpful upto to some extent to

retain a good position in the competitive market.

OBJECTIVES OF THE STUDY

To know about the insurance and its needs

Proper understanding and analysis of life insurance industry

To know the brand awareness of Bajaj Allianz Life

To know the operational plan of Bajaj Allianz

To know about the products of Bajaj Allianz Life Insurance

To know how to pitch the insurance products to the customers

To know the customer response about Bajaj Allianz Life Insurance policy

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

Conduct the market survey about the Bajaj Allianz

To provide suggestions to the company based on the findings of the study

72


TOOLS USED FOR DATA COLLECTION

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

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

marketing researchers to use the questionnaire technique for collecting data more

than any other method.

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

asked to answer the questions in the questionnaire. The respondents were aware of

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

Data’s are collected in two ways

Primary data

Secondary data

Primary Data:

Primary data is a data which is collected by me on field by using tools of

1. Questionnaire

2. Observations

3. Cold callings and

4. Through customer direct interaction

Secondary Data:

Secondary is collected by using

1. Various official websites

2. Through Pamphlets and Broucher of the company

3. Newspapers and Magazines

73


RESEARCH METHODOLOGY

Research refers to answering to a question or a solution to a problem in a

systematic and scientific manner. Research always starts with a question or a

problem. Its purpose is to question through the application of the scientific method.

It is a systematic and intensive study directed towards a more complete knowledge

of the subject studied.

Marketing research specifies the information required to address these issues,

designs, and the method for collecting information, manage and implemented the

data collection process, analyses the results and communicate the findings and

their implication.

I have prepared my project as descriptive type, as the objective of the study

demands the answers of the question related to find the opinion of people about

Bajaj Allianz

74


SAMPLING:

Sampling is concerned with the selection of a subset of individuals from within a

population to estimate characteristics of the whole population. Researchers rarely

survey the entire population because the cost of a census is too high. The three

main advantages of sampling are that the cost is lower, data collection is faster, and

since the data set is smaller it is possible to ensure homogeneity and to improve the

accuracy and quality of the data.

The methodology used to sample from a larger population will depend on the type

of analysis being performed, but will include simple random sampling, systematic

sampling and observational sampling. The sample should be a representation of the

general population.

Sample size refers to the number of items to be selected from the universe to

constitute a sample. The size of sample should neither be excessively large,

nor too small, it should be optimum. We have selected the sample size as 60.

Sampling unit refers to who are the people we are target to collect the

primary data. Our sampling unit is Middle class people, Service persons,

Shop peoples, etc,

Area covered are Chitpet, Majestic, MG road, Brigade Road, HSR Layout,

Bommanahalli, Avenue Road, SP Road, IT companies in ITPL, etc,…

I undergone the Random sampling technique to collect the data.

Questionnaire, Observation, Interview, Cold callings are the techniques

which we used in this Research.

75


LIMITATION OF THE STUDY

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

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

descriptive questions could have served the purpose. Therefore the

questionnaire contained both open ended and closed ended questions.

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

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

the respondent cannot be taken for granted.

Language barrier, language barrier is the basic thing which we find difficult

to overcome it while we going for study

New to the Insurance field, being new to insurance field we don’t know how

to pitch the insurance product to the customer it also be a limitations of the

study

There is the Possibility of Error in data collection.

Possibility of Error in analysis of data due to small sample size.

Time is also one of the major limitation of this research

Some of the peoples were not ready to co-operate and were not ready to

share any information with us.

The views of respondents are likely to change as human nature is very

dynamic.

The result figure may be biased since the Respondents/investors may

provide wrong information.

The survey may not give the whole scenario of Indian marke

ANALYSIS AND INTERPRETATIONS

76


Age Profile:

Table 1

Below 20 20-30 30-40 40-50 50-60 Above 600

10

20

30

40

50

60

70

Age Profile

Respondents Age

Per

cen

tage

of

Res

pon

den

ts

Interpretation:

In this survey Table 1 shows that maximum numbers of respondents are in the age of 20-30 and followed by 30-40

77

Age Profile

S.No. Age Respondents Percentage

1 Below 20 4 6.666666667

2 20-30 37 61.66666667

3 30-40 12 20

4 40-50 4 6.666666667

5 50-60 2 3.333333333

6 Above 60 1 1.666666667

Total 60 100


Gender wise:

Gender wise

S. No. Gender Respondents Percentage

1 Male 54 90

2 Female 6 10

Total 60 100Table 2

90%

10%

Gender wise

MaleFemale

Interpretation:

In this survey Table 2 shows that 90% of respondents are Male and balance 10% of respondents are Female.

78


Monthly Income:

Monthly Income

S. No. Income Respondents Percentage

1 Below 20 36 60

2 20-30 10 16.66666667

3 30-40 4 6.666666667

4 40-50 0 0

5 50 & Above 2 3.333333333

6 Not Willing 8 13.33333333

Total 60 100Table 3

Below 20

20-3

030

-40

40-5

0

50 &

Bbo

ve

Not W

illing

60

16.6666666666667 6.666666666

666670

3.33333333333333

13.3333333333333

Monthly Income Wise

Interpretation:

In this survey Table 3 shows that 60% of respondents are earning below 20,000 as monthly income and 16% of respondents are earning 20,000 to 30,000. 13% of respondents are not willing to reveal their income details.

79


Awareness of Bajaj Allianz:

Awareness of Bajaj Allianz

S. No. Response Respondents Percentage

1 Yes 35 58.33333333

2 No 25 41.66666667

Total 60 100Table 4

58%

42%

Awareness of Bajaj Allianz

YesNo

Interpretation:

In this survey Table 4 shows that 58% of respondents are aware of the Bajaj Allianz Life Insurance. Balance 42% of respondents is not aware of the Bajaj

Allianz Life Insurance.

80


Existing policy holders:

Existing Policies Holders

S. No. Response Respondents Percentage

1 Yes 26 43.33333333

2 No 34 56.66666667

Total 60 100Table 5

43%

57%

Existing Policy Holders

YesNo

Interpretation:

In this survey Table 5 shows that only 43% of respondents are insures their life in LIC, ICICI, TATA AIG, BAJAJ, etc. 57% of respondents are not even insured their life.

OBSERVATIONS AND INFERENCES

81


In this era of changing world quick changes are occurring in insurance sector new

companies are entering in this field every day which causes the tough competition

in market. Bajaj Allianz Life Insurance Company is the second largest insurance

company in India. It has to increase customer care service to stay ahead from its

competitors.

With the help of the analytical figures we derived from the questionnaire following

can be found:

It can be analyzed that 57% of respondents still don’t have life insurance

which shows the untapped market.

After completing this survey it shown that still 42% of people don’t aware of

Bajaj Allianz Life Insurance.

Many people are come to know about the Baja Allianz through friends and

relatives when compare through news papers.

In order to improve its growth and expansion in market share company

should concentrate in the area of effective advertisement, promotional

activities, technology up gradation, efficiency in workforce etc,

Due to good brand image of LIC in market, it is very difficult to find place

in the market.

Most of the people came to know about the company through friends or

relatives, so the company has to work on making its advertisement channel

very strong.

Today there are many other avenues opened for people to invest their money

in, like mutual funds, fixed deposits, shares etc. so the company faces a

tough competition in financial sector.

FINDINGS OF THE STUDY

82


After conducting the research I had learned about the market and market

conditions. Life Insurance sector is a booming sector in India and Rs 2 billion has

been spent on advertising and is growing at steadily rate. If we see life insurance

sector ten years back it was a very slow growing sector as there was no private

companies in this sector. But after the liberalization when private companies were

also allowed in this sector, it started growing at very fast pace. With the entry of

the private players, the size of the industry has actually expanded. LIC has been

here for years now and private companies will continue to learn lessons from LIC.

People relate to LIC, which is good. However, with private players coming in,

people have more options in terms of product features. As people faith is growing

in private life insurance companies they are investing more in the policies.

The overall scenario is that still people trust LIC more than any other

insurance company

Many private players are giving their advertisement on various media to

increase the awareness among people about their company and policies so

that competitions is very high in the insurance market

Re-Insurance and Broking companies are earning more in the Insurance

market.

Insurance companies are gaining more due to the alternate channel

Advertisements on television and newspaper have more impact on people

and it plays the major role in creating the brand image of the company.

Still there are few peoples who don’t have any idea about Bajaj Allianz

Majority of the respondents are insured their life in LIC

Few respondents are thinking that Bajaj Allianz insurance is only for Non-

Life Insurance

Ethics and transparency is very important in the business of insurance

83


Respondents hesitate to give their personal details to any insurance

company.

Majority of Private Employees, Government Employees, Business Man are

already engaged in LIC when compare to any private players.

Still certain percent of people are there who don’t insure their life in any

insurance companies. It is really a matter of consideration.

SUGGESTIONS

84


Throughout the project work I have tried to my extent to learn more and more so

that I enable myself to deliver the best services from my part. I always focused my

services to full satisfaction whether it would for employer or for customer.

So during this practical learning process whatever I have realized to improve the

division of the company is as follows:

The company should always have proper planning for gifts/incentives for

employees on various occasions or on competitions.

Premium and economical class of services should be launched by the

company to serve the varied nature of customers.

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

areas.

Distribution channel needs more strength.

Improvement in services through feedbacks from customers is

recommended.

Continous follow up is very necessary to get customers

Need more advertisements and promotional activities for Life Insurance and

company can use Brand Ambassador to increase the brand image of the

company.

Company should monitor all the agents and brokers to avoid any misleading

of customers.

Be genuine and open to customers in explaining the products

Introduce new plan which can give income to the customers on yearly basis

BIBLIOGRAPHY

85


www.google.com

www.wikipedia.org

www.bajajallianz.com

www.irda.gov.in

www.indianmba.com

www.investopedia.com

www.freepress.com

These are the website where we collected the information to our project work

QUESTIONNAIRE

1) Age :

86

http://www.freepress.com/

http://www.investopedia.com/

http://www.indianmba.com/

http://www.irda.gov.in/

http://www.bajajallianz.com/

http://www.wikipedia.org/

http://www.google.com/


a) Below 20 b) 20-30 c) 30-40 d) 40-50 e) 50-60 f) Above 60

2) Gender :

a) Male b) Female

3) Marital status :

a) Single b) Married c) Divorced d) Widower e) Widow

4) Spouse Age :

a) Below 20 b) 20-30 c) 30-40 d) 40-50 e) 50-60 f) Above 60

5) No. of Children :

6) Children’s Age :

a) Below 5 b) 5-15 c) 15-25 d) Above 25

7) Qualification :

8) Profession :

a) Students b) Business c) Service d) Retired person

e) Others (specify)

9) Designation :

10) Monthly Income (in Thousands) :

a) Below 20 b) 20-30 c) 30-40 d) 40-50

e) 50 & Above

11) Monthly Savings :

a) Below 20 b) 20-30 c) 30-40 d) 40-50

e) 50 & Above

12) Lending money to others :

a) Yes b) No

13) House :

a) Owned b) Rent

14) Two – wheeler :

87


a) Yes b) No

15) Four – Wheeler :

a) Yes b) No

16) Looking for Financial planning :

a) Yes b) No

17) Aware of Insurance product :

a) Yes b) No

18) Have you invested in any Insurance :

a) Yes b) No

If Yes where:

19) Do u have idea about Bajaj Allianz :

a) Yes b) No

20) How you know about Bajaj Allianz :

a) News papers/Articles b) Magazine c) Friends d) Relatives

e) Others (please specify)

21) Idea to invest in Bajaj Allianz

a) Yes b) No

22) How much money you will invest :

23) Willing to know about Bajaj Allianz :

a) Yes b) No

24) Do you know ay Bajaj Allianz Customer :

a) Yes b) No

25) Any of your Friends/ Relatives looking for Insurance policy :

a) Yes b) No

If Yes Contact Name:

88


Contact No. :

26) Name of the Person :

27) Address :

28) Contact No. :

29) Mail id :

30) Feedback / Suggestion for Bajaj Allianz :

89

Documents

Bajaj Allianz