PROJECT REPORT ON

BHARTI AXA LIFE INSURANCE

Submitted in partial fulfillment of SAVE CONFIDENT

AT MASTERS OF BUSINESS ADMINISTRATION

2009-2011

SUBMITTED BY:

DEEPAK GHILDIYAL

Internal Guide External GuideMrs Baby Moses Mr. Shailesh SaxenaFaculty MBA Officer (Marketing)

INSITUTE OF MANAGEMENT STUDIESROORKEE.

UTTARAKHAND TECHNICAL UNIVERSITY,DEHRADUN

Certificate by the Guide

Certificate that this dissertation is based on an original project study by DEEPAK GHILDIYAL under my guidance. This has not formed basics for the award of any Degree/Diploma by any university.

Place : ROORKEE(U.K.) Guide signature: Faculty IMS-R

EXECUTIVE SUMMARY

This project includes the Recruitment marketing,products profiles,analysis of NAV of

BHARTI-AXA title of the project is “SAVE CONFIDENT” over the area BENARAS.

The first part of the project includes the detail of BHARTI-AXA.This part includes the

history and product profile.

The second part of the project contains about the Product portfolio,Introduction to the

polices.

The forth part of the project includes Research Methodology, SWOT analysis,future growth

of the company and Conclusion. This explains about the real work of the project. This states

about the total analysis and process of Recruitment Marketing.

For my project report I have taken approved informations from the ICICI-PRU.For this

purpose I have taken the following steps-

1.Collected secondary data about the company.

2.Collected data of different plans and polices.

3.Analyse the payments and benifit structure of the advisors.

4. Collected data about the different respondents and analyse them.

5. Collected list of unit values of different latest schemes and comparison with another

insurance company.

6. Finally I get the findings and framed conclusion from that.

ACKNOWLEDGEMENT

I am thankful to management of BHARTI-AXA Life Insurance Company Ltd

for granting the opportunity, corporation and valuable information for

completion of this project.

No words are enough to thank SAILESH SAXSENA(MARKETING

MANAGER,Bharti-AXA), who not only inspired me to work on this project but

also accepted to guide me a lot. In spite of heavy responsibilities and busy

schedules, they always managed time to provide proper guidance.

I am also thankful to our college professors for their constant suggestion which

resulted in successful completion of the project. Last but not the least; we would

like to thank my parents and friends for giving us their constant support and

encouragement in completion of our project.

DEEPAK GHILDIYAL

PREFACE

The competition in the insurance sector is highly volatile in nature. Over the

decade only government undertaking company was operating in India but with

the opening up of the economy several new players like private sector &

multinational insurance entered in Indian horizon.

In the given project we made a comparative analysis of mutual fund & life

insurance among MNC. Comparing their features & services one hand & also

done a research on the interest of investor regarding mutual fund & life

insurance in BHARTI-AXA company limited.

Research design method used was descriptive research. The

sampling method used was simple random sampling. We have taken a size of 60

respondents. I first formed a structure questionnaire to collect data & the

questionnaire is filled by the person, who have one charted insurance company

& or more with any other MNC insurance company.On the basis of filled

questionnaire, coding sheet is formulated & the conclusions drawn

TABLE OF CONTENTS

Introduction

Company profile

Vision,values and strategy

Promoters

Group sites

Bharti-AXA Elite source

Bharti_AXA life secure

Wealth creation confidentialnwith protection

Save Confident

Research and methodology

SWOT Analysis

Findings and Sugguestions

Conclusion

Learnings

Bibliography

INTRODUCTION Why do you need Life Insurance?

To protect your family financially

You love your family and feel responsible towards them in every way. A life insurance plan covers your life at nominal costs so that you can fulfill your responsibility with ease and your family never has to face financial constraints.

Why do I need to secure my family when I'm there for them?

A life insurance plan will take care of your family in case you are not around for them.

You need to protect your family against unforeseen events. A life insurance plan helps you do so very easily.

Isn't securing my family for the future expensive for me now?

Life insurance plans are of different types. Protection plans help you secure your family's tomorrow at very nominal costs and for a long time period.

To maximise your savings

Life insurance plans not only ensure your family's security but are also a healthy investment option. These investments ensure your money works hard for you by giving you good returns along with peace of mind, as your family is protected. So whether it is your own home, the best education for your child or even a comfortable lifestyle, life insurance plans are the best solutions.

How does a Life Insurance plan maximise my savings?

There are variants of Life Insurance plans available today that can maximise your savings.

The traditional plans give you definite amount as assured money back. ULIPs or market-linked plans invest your money in the markets to help you reap high returns along with life insurance benefits.

Fund managers are the experts that take care of your investment plans to ensure you maximise your savings.

Do I need to worry about the safety of my investments?

There are different plans that you can invest in, depending on how much risk you are ready to take. The plans can be summed up into - Traditional Plans, ULIPs and Guarantee Plans

Traditional Plans

Traditional Plans give you guaranteed returns on the invested money. The returns you earn through these plans are pre-decided and communicated to you at the time of issuance of policy.

ULIPs

Unlike Traditional Plans, Unit Linked Insurance Plans (ULIPs) invest a part of your premium amount into the financial markets. The returns under these policies depend on market performance. Market upswings can ensure you earn high returns. There are various fund options available under these plans. Basis your risk appetite, you can opt for the appropriate fund option.

Guarantee Plans

Guarantee Plans are Unit Linked Plans, with an in-built 'guarantee' feature. These plans safeguard the money invested against any market downturns. When the market is up, you can enjoy high returns and in case of market downswings, there is a minimum guaranteed amount paid to you that ensures you do not lose your hard earned money.

Do these plans also provide protection to my family?

Yes. While these plans focus on maximising your returns, they also include the feature of life protection, which takes care of your family's future

How can a child plan help me?

To fulfill your child's dreams

As a responsible parent, you wouldn’t like to make compromises when it comes to your child. Child plans help you secure your child's future in a planned and systematic manner. These plans can help you fulfill your responsibilities towards your child conveniently.

You can systematically plan for the finances required for your child's future with these plans. You can select the term of the plan depending on your child's requirements at their key life stages- his/her education, higher studies or even marriage. And through periodic withdrawals from the policy, you can provide financial assistance for the key milestones of your child. By investing in this plan, you can make your money grow over a period of time, thereby securing your child's dreams.

Will my child get the benefit from this plan, in case I'm not around?

The unique Waiver of Premium feature takes care of this concern. During the term of the policy, should anything unfortunate happen to you, the protection cover is paid out and all future premiums are waived off. This ensures that the policy continues till maturity and you need not fear of policy lapse because you are not around to pay the future premiums. Child plans in that sense will take care of your child and his future, even in your absence.

Why do I need a Retirement Plan when I am young?

Enjoy a golden retirement

Retirement plans are the best way to systematically plan for your golden years. By investing in these long-term plans, you can earn a regular income even after you've stopped working. Without worrying about rising costs, you can be self-reliant and lead a comfortable retired life.

These are long-term plans since they aim to provide a regular income to you post your retirement. The earlier you start, the better it is, so that when the term of the plan ends, you can enjoy a good corpus as pension.

By investing in retirement plans today, you can ensure you lead a comfortable life, even after you've stopped working.

Why should I opt for a Health Plan?

Stay worry-free about your medical expenses

Health problems often hit us suddenly and they bring with them huge medical bills. To avoid being financially strained, due to health contingencies, you can opt for a health insurance plan and stay worry-free.

Health problems can arise anytime. With the help of a health plan, you can invest systematically today, so that in case of any health crisis, your hefty medical bills are taken care of.

What’s more, health insurance plans also take care of certain critical illnesses and disabilities to ensure health problems do not impact your family's financial security.

INDIVIDUAL PLANS

At Bharti AXA Life, we want to take care of your responsibilities in the same way as you do for your loved ones, with a range of life insurance services. Through our life insurance products, you can trust us to take care of your family at all times. You can select the most suitable plan from our host of plans and make buying life insurance simple and convenient. Each of the plans, right from traditional life insurance to unit linked life insurance, fall in specified segments and fulfill your specific objectives. You can learn more about the segment and specific plans within the segment by clicking on the type of plan

Protect your loved ones against financial contingencies at a nominal costs

You love your family and feel responsible towards them in every way. But life can be uncertain and unforeseen contingencies can meet you anytime. At such times, life insurance comes to your rescue. As someone who wants only the best for their family, we understand your need to safeguard your family against any crises. Our protection plans offer you high life cover at nominal costs so that you can fulfill your responsibility with ease and your family never has to face financial constraints.

Bharti AXA Life is a life insurance player that was started in 2006. It brings together strong financial expertise of the Paris-headquartered AXA Group, and Bharti Enterprises - one of India's leading business groups with interests in telecom, agricultural business, financial services, and retail. The joint venture has a 74% stake from Bharti and 26% stake from AXA Asia Pacific Holdings Ltd.(APH).The company launched national operations in December 2006. Today, Bharti AXA Life has a national footprint of distributors trained to provide quality financial advice and insurance solutions to the large Indian customer base.Bharti AXA Life offers a range of innovative products and services that cater to specific insurance and wealth management needs of customers. We undertook an in-depth analysis wherein we identified the notion of preference was totally related to the trust granted to various names in insurance and financial services. The level of trust is very inadequate today, regardless of the brand considered. This is because the perception of consumers is that we are all evolving only in "a world of promises." And this is what we have to redefine.Beyond promises... proofWe don't want to make promises any more. Instead, we want to demonstrate our ability to respond to client needs with real and

tangible proof and, in so doing, to establish an authentic relationship of trust with our clients.

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

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

To achieve a market position among the top 5 in India through a multi-distribution, multi-product platform

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

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

To deliver high levels of shareholder return To build long term value with our business partners by enhancing

the proposition to their customers To be the employer of choice to attract and retain the best talent in

India To be recognised as being close and qualified by our customers.

Strong partner Bharti - provides access to customer base of more than 130 million

Multi channel execution capability Current Asia product range which is a strong match to products

sold to the mass and mass affluent Global scale providing cost effective and speedy re-use of systems,

products and business capability Strong AXA and Bharti brands which can be leveraged to attract

and retain a high quality management team

Glenn Williams is the Chief Executive Officer and Managing Director for Bharti AXA Life Insurance Co. Ltd. Prior to this, he was the Regional General Manager, Corporate Development and Strategy for AXA Asia Life.

Mark Meehan is currently the Chief Marketing and Operations Officer for Bharti AXA Life Insurance Company Ltd.

Mark’s previous role in AXA was that of CEO of Tynan Mackenzie P/L, a professional investment services company. His role in Bharti AXA Life as CMOO includes Marketing,Product Development, Customer Service, Underwriting, Claims, Channel & Distribution Operations, Information Technology and Systems, Six Sigma, Business Continuity and Client Persistency Management.

Mark’s career path spans a range of markets and geographies. He is a graduate from Royal Military College, Duntroon and has served as a commissioned Officer in the Australian Army. Mark has also enjoyed a

successful international military career covering high technology and systems engineering.

In 1994, he transferred his skills to the private telecommunication market, basing himself in the UK. On his return to Australia in 1997, Mark was a consultant to public and private sector clients in systems engineering and outsourcing, after which he moved to Equant in Singapore as their Asia Pacific Outsourcing Director. In 2000, Mark was appointed Equant’s General Manager for Australasia. Mark joined AXA Australia in 2002 and handled major roles in strategy execution, business turnaround, operations and general management. Mark held directorships of several AXA subsidiaries. In September 2006, Mark was appointed CEO and Director of Tynan Mackenzie P/L after leading the acquisition team to a successful transaction conclusion.

Bharti Enterprises is one of India’s leading business groups with interests in telecom, agricultural business, financial services, and retail. Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one of India’s leading private sector providers of telecommunications services with an aggregate of over 110 million customers, spanning Mobile services, Telemedia services and Enterprise services.

Bharti Airtel has been ranked amongst the best performing companies in the world in the BusinessWeek IT 100 list 2007. Bharti Teletech is the country’s largest manufacturer and exporter of telephone terminals. Bharti has a joint venture – Bharti Del Monte India (P) Ltd – with Del Monte Foods India Pvt. Ltd., to offer fresh and processed fruits and vegetables in the domestic as well as international markets including Europe, USA and Middle East. Bharti has recently forayed into retail business under Bharti Retail Pvt. Ltd. It also has a joint venture - Bharti Wal-Mart Private Ltd. - with Wal-Mart for wholesale cash-and-carry and back-end supply chain management operations in India.

AXA Group is a worldwide leader in Financial Protection. AXA’s operations are diverse geographically, with major operations in Europe, North America and the Asia/Pacific area. In 2009, total revenues amounted to Euro 90.1 billion and total revenues underlying earnings to Euro 3.9 billion. AXA had Euro 1,014 billion in assets under its management as of December 31, 2009.

AXA Asia Life is committed to become a preferred company in financial protection and wealth management by 2012. AXA Asia Life, which is part of the AXA Group and AXA Asia Pacific Holdings Limited, started operating in Asia in 1986. Since then, it has grown rapidly and is today present in China, Hong Kong, Indonesia, India, Malaysia, the Philippines, Singapore and Thailand. AXA Asia Life serves over 2.5 million customers, employs over 4,000 people, and has about 60,000 agents and advisers across Asia. The Regional office is based in Hong Kong and is responsible for supporting the Group’s operations in the 8 markets.

Airtel Bharti AXA General Insurance Bharti-Tele Tech Ltd Bharti AXA Investment Managers Bharti Tele Soft Bharti Resources Bharti Foundation

Bharti AXA Life Elite Secure

Pure Life Insurance cover at very competitive premiums

Option to cover your life till 75 years with a unique to age 75 years term

You want comprehensive protection for your loved ones You want a single product that can take care of all your Insurance

needs

What is the minimum and maximum Insurance cover that I can opt for in this plan?

The minimum Sum Assured in this plan is Rs 25,00,000/. There is no limit on the maximum insurance cover that you can opt for

Can I see some sample premium rates for this plan?Here are some premiums with sample Sum Assured and age.

Sum Assured (In Rs)

Age at entry/ Policy Benefit Period

5 years

10 years

15 years

20 years

25 years

To age 75

25 Lakh 30 3925 3925 4150 4400 5100 982540 5750 6400 7350 8775 10475 1520050 11400 13800 16700 20150 24725 24725

50 Lakh 30 7100 7100 7500 7950 9200 1785040 10400 11800 13700 16350 19550 2820050 21100 26050 31550 38150 46550 46550

1 Crore 30 12200 12200 13100 14200 17200 3380040 18700 21200 25800 31000 37300 5420050 40200 49300 60300 73200 90100 90100

What are the tax benefits?

You receive tax benefits under section 80C and 10(10D)

Can I add any further protection along with this plan? (Riders)

Bharti AXA Life Insurance gives you enhanced protection in this plan with the option to add any of the 4 protection enhancers by paying a nominal amount towards this additional protection:

o Critical Illness Benefit Rider: In case, you are diagnosed of any one of the six Critical Illnesses at any time during the term for which the rider is in force, you will receive a lump sum amount equal to the Critical Illness Benefit Sum Assured as opted by you

o Accidental Death and Disability Benefit Rider: In the event of an unfortunate death of Life Insured due to an accident or

an accidental disability, the Sum Assured under the Rider will be paid to the Policyholder / nominee.

Bharti AXA Life Secure Confident

A simple Life Insurance product

Option to enhance protection with the addition of Riders

You want comprehensive protection for your loved ones You want a single product that can take care of all your Life

Insurance needs

What is the minimum and maximum Insurance cover that I can opt for in this plan?

The minimum Sum Assured in this plan is Rs 5,00,000/. The maximum Sum Assured that you can opt for in this plan is 24,99,999

Can I see some sample premium rates for this plan?Here are some premiums with sample Sum Assured and age.

Age last birthday/ Policy Benefit Period

5 years

10 years

15 years

20 years

25 years

25 2440 2450 2600 2620 2660 30 2490 2580 2790 2850 2940

35 2820 3040 3350 3490 3640 40 3680 3960 4450 4980 - 45 4860 5580 6320 - - 50 7220 8300 - - -

What are the tax benefits?

You receive tax benefits under section 80C and 10(10D)

Can I add any further protection along with this plan? (Riders)

Bharti AXA Life Insurance gives you enhanced protection in this plan with the option to add any of the 4 protection enhancers by paying a nominal amount towards this additional protection:

o Critical Illness Benefit Rider: In case you are diagnosed of any one of the six Critical Illnesses at any time during the term for which the Rider is in force, you will receive a lump sum amount equal to the Critical Illness Benefit Sum Assured as opted by you

o Accidental Death and Disability Benefit Rider: In the event of an unfortunate death of Life Insured due to an accident or an accidental disability, the Sum Assured under the Rider will be paid to the Policyholder / nomine

Wealth creation with protection

Ensure your family's security as you maximise your savings

You can make your money work harder with our Wealth Creation with Protection plans. These plans come with the double advantage of:

Complete peace of mind as your family is financially protected and Good investment option that ensures long-term financial goals are

met

 

Whether it is a bigger home, a dream vacation or even a comfortable future, these life insurance plans are the best solutions along with the surety of financial protection. Our life insurance coverage plans include 'traditional' plans that give guaranteed money on maturity. While, we also offer market-linked plans that give you the benefit of good market performance to maximise your savings.

Child plan

Comprehensive financial protection to your loved ones - Sum Assured + Waiver of future Premiums

Jumpstart Benefit – Up to 7% of average fund value during the policy term

If you want a plan that would completely secure an important financial goal of your family (e.g. child's education, marriage etc)

If you are looking for a flexible investment plan that can adapt to your investment habits

What are the key features?

o Choice of policy terms to suit your financial goals – 7, 10, 15, 20 or 25 year term

o 360 degree protection to your loved ones through comprehensive protection in case of death

o Jumpstart Benefit (Special additions) up to 7% during the policy term to provide enhanced value to your investments

o Flexible options like partial withdrawal, premium holiday, decrease in premium, etc

o Option to enhance protection with choice of riders o 12 free switches every policy year and 6 investment fund

options What will I get back?

On Death

You get the Sum Assured at the time of death. Additionally, Bharti AXA Life would pay all the remaining future premiums till maturity

On Maturity

You receive the policy fund valueAlternatively, you can take the Policy Fund Value at maturity in installments over the next 5 years (extended maturity period)

Where can I invest my money?

You have the options of investing across 6 funds depending on your risk appetite and return expectation and make use of the switch facility to change your asset allocation

What are the tax benefits?

You receive tax benefits for premiums paid and benefits received as per prevailing tax laws under Section 80C and Section 10(10D) of the Income Tax Act, 1961

Retirement

Systematically increases investments through Accumulator Option

Regular and single pay options

A plan that lets you change your retirement age anytime as required.

A plan that gives you the flexibility to modify your premium as per your changing needs.

What are the key features?

o Pay regular premiums or one time lump sum premium o At inception, choose to systematically increase your

premiums by 5 % or 8% each year with the Accumulator Option

o Increase / decrease premiums any time after the 2nd year o Enhance your retirement wealth by paying unlimited top-up

premiums after first year o Flexibility to change your retirement age any time

o Get liquidity through partial withdrawals after the completion of 5 years

o 12 free switches every policy year and 6 investment fund options

o Special additions added to the fund at the end of 10th year and every 5 years thereafter

What will I get back?

On maturity

o You can take up to 1/3rd of your Policy Fund Value as a tax-free lump sum amount (as per prevailing tax laws), while the balance amount must be used to purchase an annuity, which will provide regular income to you at your desired mode of frequency; or

o You have the option to purchase an annuity product with the entire policy fund value

Where can my money be invested?

You have the option to invest across any of our 6 investment fund options, ranging from high end equity to short term debt to match all your requirements

What are the tax benefits?

You receive tax benefits under Section 80 CCC Also one third of the maturity \ vesting benefit can be commuted tax-free under Section 10 (10A

Flexible pension plan with benefits till age 90, while you pay for 10 years only

Special additions are added to your fund, in order to boost your fund

You want a single investment option, which not only takes care of your sudden requirement but gives you an opportunity to save systematically for your retirement

You are looking for pension-cum-investment solution, which gives you flexibility and control

What are the key features?

o Unmatched flexibility for wealth creation on retirement

Pay premium for 10 years only and enjoy the benefits till your retirement

Flexibility to invest through any of the two investment options designed for you - Age-based Asset Allocation and Self Investment option

Invest in equity through our Systematic Transfer Plan which helps you average out the risks associated with equity Markets

Flexibility to meet unforeseen or planned economic requirement through partial withdrawals

o Future Secure Pension enhances your retirement kitty by providing special additions at the end of the 10th and 15th policy year

o Tax benefits on the premium paid and the benefits received will be as per the prevailing tax laws

What will I get back?o Special additions of 3.5% on Average Policy Fund Value at

the end of 10th and 15th policy year o Policy Fund Value on maturity of your policy

Where can I invest my money?

You have the option to invest across any of our 6 investment fund options, ranging from high end equity to short term debt to match all your requirements. Not only this, but under this plan you have the flexibility to invest through our specially designed Age-based Asset Allocation facility

What are the tax benefits?

You can avail of the tax benefits on the premiums paid under Section 80C of the Income Tax Act 1961 (up to Rs. 100,000)

Premium payment for just 3 years

No surrender charges throughout the policy term

If you are looking for a pension plan that requires a short tem investment

If you are looking for a pension plan that gives allows you to withdraw money without any extra charge

What are the key features?

o Pay premium for 3 years only and enjoy the benefits till your retirement

o Get liquidity through partial withdrawals after the completion of 3 policy years

o Enhance your retirement wealth by paying top-up premiums at any point of time

o 12 free switches every policy year and 6 investment fund options

o No surrender charge applicable throughout the term of the policy

o Flexibility to change your retirement age any time during the Policy term

o Special additions added to the fund every 5 years What will I get back?

On Maturity

o You can take up to 1/3rd of your policy fund value as a tax-free lump sum amount (as per prevailing tax laws), while the balance amount must be used to purchase an annuity, which will provide regular income to you at your desired mode of frequency; or

o You have the option to purchase an annuity product with the entire policy fund value

Where can I invest my money?

You have the option to invest across any of our 6 investment fund options, ranging from high end equity to short term debt to match all your requirements

What are the tax benefits?

You receive tax benefits under Section 80 CC(C).Also one third of the maturity \ vesting benefit can be commuted tax-free under Section 10 (10A)

Health insurance

Given the fast pace of our lives, we always run the risk of acquiring lifestyle diseases - be it high blood pressure or various heart diseases. Add to this the rising medical costs because of which, we end up spending increasingly large amounts of money. Bharti AXA Life offers you Health Plans that ensure freedom from stress when it comes to your health expenses and let you enjoy your life without any worries.

Extremely affordable premiums starting as low as Rs 3 per day

A range of Daily Hospital Cash Benefit options, with additional benefits in case of accidental hospitalisation in an ICU or otherwise

You want a product that will cover your incidental hospital expenses

You want a product that is easy to buy, simple to understand and pay premium only once in three years

What are the key features?o Extremely affordable protection with premiums starting as

low as Rs 3 per day o Easy health covers you with a single premium at one go for 3

years o Daily Hospital Cash Benefit options of Rs 500, Rs 750, Rs

1000 and Rs. 1500 per day o Cover your spouse, children and parents and avail of an

attractive discount of 10% on premium for each family member added

o Get additional protection in case of hospitalisation due to an accident and for hospitalisation in an ICU

o Avail of Get Well Soon benefit for continuous hospitalisation of 7 days or more

o Simple and easy to enroll. No need to fill up lengthy proposal forms or take any medical tests or medical reports

Is there a waiting period?

There is a waiting period of 90 days except for accidental hospitalisation.

What are the tax benefits?

You receive tax benefits under section 80D and 10(10D)

07/12/2010 Presentation title1

Bharti AXA Life Insurance presents “SaveConfident”

a traditional money back insurance product“A financial solution that helps you secure your financial objectives-

like Children’s education, Marriage or Other intermediate needsProtection against an unfortunate event

Introduction

06/12/2010 Presentation title4

Bharti AXA Life Save Confident

– Pay premium for only 12 years & get benefits for 15 years

– Gives secured growth on your investments

– Loans available under the policy

– Provides regular income to meet your financial needs

– Provides your family a comprehensive protection

– Extra protection in case of accidental death

Bharti AXA Life Save Confident

– Pay premium for only 12 years & get benefits for 15 years

– Gives secured growth on your investments

– Loans available under the policy

– Provides regular income to meet your financial needs

– Provides your family a comprehensive protection

– Extra protection in case of accidental death

06/12/2010 Presentation title5

In case of Normal Death

Sum Assured PLUS

Annual Reversionary Bonuses (non-guaranteed)PLUS

Terminal Bonus (non-guaranteed)

In case of death due to an accident

Death Benefit (as defined above)PLUS

Lower of (Sum Assured OR Rs. 10 Lacs)

Death Benefit

Double SA paid on accidental death

06/12/2010 Presentation title6

Annual Reversionary Bonus (ARB), - Annual bonus is declared by the company for your policy every year, starting from the very first Policy Year. - Once declared, the accrued bonus is guaranteed to be payable on maturity or on death, whichever is earlier.

Terminal Bonus (TB), Payable on maturity or on an earlier death, if any.

Additional non-guaranteed Benefits

Annual Reversionary Bonus declared in Save Confident

• Since inception of the product bonus declared per annum on SaveConfidentis 2.75% p.a

Company name Compound Bonus rate(i.e. bonus rate as a percentage of sum assured plus vested bonus) if

FY 2008-09 (Data from industry sources)HDFC Life Insurance 2.25% Bajaj Allianz Life Insurance 0.85% and 2.1%ICICI Prudential Life Insurance 2.25% and 2.5%

Bonus declared in SaveConfident is higher than bonus declared by similar products offered by competition.

06/12/2010 Presentation title8

Survival Benefits

End of policy year 6th to 11th

year12th to 14th

yearGuaranteed Money Back as a % of the basic Sum Assured

5% yearly 10% yearly

E.g. For a sum Assured of 5 lacs the customer will get…

Rs 25,000 yearly

Rs 50,000 yearly

Regular money back feature with guaranteed regular payments

Maturity Benefits

50% of Sum AssuredPLUS

Accumulated ARB PLUS

Terminal bonus (if any)

Guaranteed Benefits on Survival/Maturity

06/12/2010 Presentation title9

How the Plan Works

06/12/2010 Presentation title10

Once 3 years’ premiums are paid, GSV = 35% of premiums (excl FY premium) minus Survival benefits already paid

Guaranteed Surrender Value (GSV)

Parameter EligibilityMinimum Age at entry

12 years

Maximum Age at entry

55 years.

Maximum Age at Maturity

70 years

Policy Term Premium Payment Term: 12 yearsPolicy Benefit Period: 15 years

Maturity Value 50% of SA + All accrued reversionary bonus till maturity (if any) + terminal bonus (if any)

Loan on the policy Option for a loan would be available, once the policy acquires a surrender value.

Product at a Glance

Premiums (inclusive of service tax) for a healthy life.

Sample Premium Rates

17520175201707517075Rs150,000

8760876085378537Rs75,000

45 years40 years35 years30 yearsSum assured/Age

Remember: Key USPs of SaveConfident

• Extremely SIMPLE and EASY to explain• SAFETY & GUARANTEE: Does not get affected by market

volatility• MONEY BACK at regular intervals so that you can plan your

future financial needs• AFFORDABLE PREMIUMS - available at premiums as lows as

Rs 6000 per annum• Participations in profits: Bonuses may be declared on annual

basis, once declared they are guaranteed and get compounded every year. Incase of death, they are paid over and above the sum assured.

• LOAN AGAINST POLICY is available in this product• ENHANCED PROTECTION with inbuilt accidental death benefit.

Commissions to advisors

2%Year 11 & 123%Year 6 – 104%Year 2 – 5

22%Year 1

• In light of new guidelines from IRDA, all charges in ULIP will get capped further and hence the commission will fall significantly.

• SaveConfident offers commission as high as any existing ULIP and will continue to offer the same commission even after September 1, when the new ULIP guidelines comes in effect.

•Enjoy commission as high as 22% of premium in first year and a renewal commission stream for next 11 years.

•Total commissions over 12 years is 57% of annual premium.

•While customer get guaranteed benefit, you too get regular income during the policy term.

RESEARCH DESIGN/METHODOLOGYResarch design is defined as a systematic and objective process of gathering, recording and

analyzing data that provides information to guide business decisions. The process of business strategy can be divided into three phases – planning, execution and report

preparation. The planning phase begins from problem/opportunity identification and leads to selection of the sampling procedure. Data collection and evaluation can be described as

the execution phase of the business research process, while report generation can be considered as the last phase.

Steps in the research design process

Identifying and Defining Problem/Opportunity

Planning the strategy

Selecting the method of strategy

Selecting a Sampling Procedure

Data Collection

Evaluating the Data

Preparing and Presenting the Report

PLANNING

EXECUTION

REPORTPREPRATION

Marketing research is defined as the formal process of collecting information, analyzing the result, communicate the findings and implementation in terms of marketing actions. Analysis of information is used in evolving some marketing and financial decisions.

RESEARC H DES I GN : Research design is important primarily because of the increased

complexity in the market as well as marketing approaches available to

the researchers. In fact, it is the key to the evolution of successful

marketing strategies and programmers. It is an important tool to study

buyer’s behavior, consumption pattern, brand loyalty, and focus market

changes. A research design specifies the methods and procedures for

conducting a particular study. According to Kerlinger, “Research Design

is a plan, conceptual structure, and strategy of investigation conceived as

to obtain answers to research questions and to control variance.

The General study was converged as a specific study for Videocon.

The study was initiated to find out the consumer profile, brand

perception and cross preference among Videocon and Competitor brands.

Our approach to the research design tasks went through the following

tasks.

Information needed

?

Measurement and scaling Procedures

?

Appropriate Data collection

?

Sampling Process and sample size

?

Data Analysis plan

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Research Type

Data Type

Research Tools

Descriptive Research

Primary and Secondary data

Questionnaire

Observation Type Enquiry

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Sampling Units

Sample Size

Sampling Method

Sample drawn from

customer/Dealers/ Retailers

Customer (100)/Dealers/ Retailers (50)

Random Sampling Method

Baranasi

The data collection was done through

1. Primary Data Analysis

2. Survey

3. Primary data is obtained by contacting the retailer and dealers.

Scaling Techniques

We asked the customers to rank the various attributes on a scale of very

important, Important and not very important. To find-out the brand

perception of various brands, paired comparison between them is used.

Sampling Techniques

In the survey conducted, the sample was random in nature comprising of

people from different age groups and income strata.

Data Collection

Data collection is the important step after the sample is selected on which

the survey is being conducted. With data that is available in the hard

form we converted that to electronic form, to analyze the data using the

field work. In the data collection customers were approached during the

working hours at dealers point.

The first part of the survey was a disguised survey was there was no mention of Parag as Organization. It was conducted as a part of institute project. Purpose of the survey was explained and was asked

whether they are interested to take part in the survey Later Questionnaire was handed over to them, and necessary instructions were given to complete the questionnaire .The questionnaires were returned back after filing up on their convince, While receiving the filled in questionnaire care was taken to check whether there are any unfilled items in the questionnaire.

L i m i tat i on s o f S urve y

Response Errors - These may arise when the

respondents give inaccurate or incomplete answers. For

e.g. in our survey a respondent may not mention that he

had test driven a car before purchasing it A major

problem faced in the survey involved the comparative

ratings of various attributes for all the product and

polices. Many of the respondents were not very willing

to rank so many factors as they perceived it to be time

consuming.

Open Ended Questions – All the questions in the

questionnaire were open-ended to avoid any kind of

bias from the respondents end. But a drawback of this

approach is that there was an incomplete capture of his

responses, as the respondent could not always one out

with the purchase steps and the time taken in them. The

reasons for such inaccuracy could be because of

unfamiliarity, fatigue, boredom, faulty recall and the

Question format.

Random Sampling Errors – This can occur, as the

particular sample selected is an imperfect representation

of the population of interest. The area covered in the

survey was Benaras region and the customer

preferences and tastes in different regions could not be

covered.

SWOT ANALYSIS

Strengths: Vast untapped market

In a country of 1 billion people there is a huge potential market for life insurance products. In India the penetration of the insurance sector in the rural and semi-urban areas is low. There is a market of 900 million for life insurance and 200 million for householder’s insurance policy. In addition to this the affluent section can be tapped for Overseas Mediclaim and Travel Insurance policies.

Huge pool of skilled professionals

Whether it is banks or insurance companies there is no dearth of skilled professionals in India to carry out a successful bancassurance venture.

Weakness:

Lack of networking among branches

In spite of growing emphasis on total branch mechanization (TBM) and full computerization of bank branches, the rural and semi-urban banks have still to see information technology as an enabler. Complete integration of branch network involves huge investments for creating IT and communication infrastructure. 

Low savings rate

Though we have a huge market for insurance policies, the middle class who constitutes the bulk of this market is today burdened under inflationary pressures. The secret lies in inculcating savings habit but considering the amount of surplus

funds available with the middle class for investing in future security, the ability to save is very nominal

Opportunities: 

Data mining

Banks have a huge customer database which has to be properly leveraged. Target segments should be identified and tapped.

Wide distribution networks of banks provides a great opportunity to sell insurance products through banks 

Another potential area of growth of bancassurance is exploiting the corporate customers and tying up for insurance of the employees of corporate clients

Threats:

Human Resource Challenges

Success in banc assurance venture requires a change in mindset. Though we have a large talent pool, the inability to sell complex insurance products on the part of bank professionals and their reluctance to learn can be severe setback. There has to be a change in the thinking, approach and work culture. 

Non-response from the target groups can also pose a challenge as it happened in the USA in 1980s

RECOMMENDATIONS AND

SUGGESTIONS

During the exposure of 2 months I had in the insurance industry

via Bharti-AXA, it helped me to develop the basic

understanding of how this industry works and the work

experience & knowledge gained has also helped me to give the

recommendations as stated below:

An insurance policy is a product, which needs a lot of

convincing before it can be sold because what I analyzed in

this internship that there are very few people who have a

basic knowledge about life insurance especially the lower

middle class society. So, it is essential for the advisor to

know what the customer actually needs and then letting the

customer know what benefits he will get out of it.

The limitation here is how to win the trust of people when so

many companies are offering the same product range. Here,

Bharti-AXA needs to encash its brand name because after the

survey I conducted what I concluded is that after LIC if

people know any other insurance company is then it is

Bharti-AXA life insurance.

During the calls where I went along with the Unit manager, I

observed that people in general have the perception that

insurance is all about getting discount in tax. People should

be made realize that it is a great way of saving for the future

too.

Besides doing market research, my other job was also to

increase the advisor base of the company. And company

preferred the profiles of the already established insurance

advisors of the other company especially the LIC ones. What

I suggest is that before approaching these prominent agents

we need to do a SWOT analysis of the co. they are into. Like

LIC Agents usually complain of LOW returns and hence

Bharti-AXA can tap them on this loophole of LIC.

Instead of approaching these good profile agents personally,

the company can hold Seminars Or Club Meetings because

every one comes for free lunches. Once they come, they can

be given Business Opportunity presentations about the

incentives, commission structure etc Bharti-AXA is offering

to its advisors.

Since the commission structure has been fixed by the IRDA

only so no insurance company can give more commission on

products but every company has a different mode of

distributing commission, since Bharti-AXA has all kind of

products and policies with it (including the products which

LIC have and even those which LIC do not have) thus every

agent can earn as much (NO UPPER LIMIT ON

EARNINGS) as he wants because he has more choice to

offer to the customer. This can be one of the sales pitch for

the Bharti-AXA.

conclusion

the basis conclusion of this project is to better understand that what actullay the customer want and

how easily we provide them. Assumptions are basically not allowed in this sector until and unless we work on

that field.

Learning

To understand the market To understand the custome

Have transparency with customers

How to work in industry market

BIBLIOGRAPHY

google search engine askme.com

bharti-AXA.co.in

past datas of company

magazines