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OBJECTIVE OF STUDY
Swot analysis of Bajaj Allianz life insurance
Understanding the financial position of Bajaj Allianz life insurance
RESEARCH METHODOLOGY
Research Methodology is a way to find out the result of a given problem on a specific matter or
problem that is also referred as research problem. In Methodology, researcher uses different
criteria for solving/searching the given research problem. Different sources use different type of
methods for solving the problem. If we think about the word “Methodology”, it is the way of
searching or solving the research problem. (Industrial Research Institute, 2010).
According to Goddard & Melville (2004), answering unanswered questions or exploring which
currently not exist is a research. The Advanced Learner’s Dictionary of current English lays
down the meaning of research as a careful investigation or inquiry especially through search for
new facts in any branch of knowledge. Redmen & Mory (2009), define research as a
systematized effort to gain new knowledge.
In Research Methodology, researcher always tries to search the given question systematically in
our own way and find out all the answers till conclusion. If research does not work
systematically on problem, there would be less possibility to find out the final result. For finding
or exploring research questions, a researcher faces lot of problems that can be effectively
resolved with using correct research methodology (Industrial Research Institute, 2010).
The process used to collect information and data for the purpose of making
business decisions.The methodology mayinclude publication research, interviews,
surveys and other research techniques, and could include both present and historical information.
Research:
The word research is composed of two syllables, re and search.“Re” is a prefix meaning again,
anew or over again “Search” is a verb meaning to examine closely and carefully, to test and try,
or to probe. Together they form a noun describing a careful, systematic, patient study and
investigation in some field of knowledge, undertaken to establish facts or principles.
Research design:
A research Design is a complete scheme or programme of the research. It includes an outline of
what the investigator will do from research problem formulation to final analysis of data.
Thus, we can say research design includes the following:
a) Clear Statement of research problem.
b) Technique to be used for collecting data.
c) The target population to be studied.
d) Methods to be used in processing and analysis of data.
There are two types of research design namely exploratory research and descriptive research.
Exploratory type of research is conducted when there are few earlier studies to which references
can be made for information. This type of research is conducted when a researcher wants to
explore or find in detail about an area/subject /topic about which he/she has either little or no
knowledge. In this type of research the main focus is on gaining familiarity with a new area for
more detailed investigation later. The objective of exploratory research is to formulate
hypothesis rather than testing it.
The type of research used in this research is Descriptive research, also known as statistical
research, describes data and characteristics about the population or phenomenon being studied.
Descriptive research answers the questions who, what, where, when and how. As the name
implies, the purpose of descriptive research is to describe something. In this type of research the
researcher is only required to report what has happened or what is happening. The main objective
of descriptive research is to describe the state of affairs as it exists at present. A descriptive
research is carried out with specific objectives and hence it results in definite conclusions. In
other words, descriptive research can be said to have a low requirement for internal validity. The
description is used for frequencies, averages and other statistical calculations. Often the best
approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative
research often has the aim of description and researchers may follow-up with examinations of
why the observations exist and what the implications of the findings are. Qualitative research is
related with qualitative phenomenon i.e. related to or involving quality or kind, and in this
research qualitative phenomenon are , the product, price, place, promotion strategies
Type of data
Any data is of two type i.e. primary data and secondary data. In this project work I have used the
secondary data instead of the primary data.
Primary data are those which are collected a fresh (again but in a new or different way) and for
the first time and thus happen to be original in character and known as Primary data. Primary
Data is based on primary source of information. The investigator gets it in original or raw form
i.e. it is not been processed earlier- coded, tabulated, classified and summarized in some form for
use by someone for some purpose.
Secondary data means that are already available that is they refer to the data, which have already
been collected and analyzed by someone else for its own use and later the same data is used by a
different user or person.
It is based on secondary source of information. The source of data is called secondary because
this data have already been collected, tabulated and presented in some form by someone else for
some purpose. All the information is collected with the help of the official website of Bajaj
Allianz life insurance , newspaper articles, magazines, advertisements ,etc.
INTRODUCTION TO INSURANCE SECTOR IN INDIA
In India, insurance has a deep-rooted history. Insurance in various forms has been mentioned in
the writings of Manu (Manusmrithi), Yagnavalkya (Dharmashastra) and Kautilya (Arthashastra).
The fundamental basis of the historical reference to insurance in these ancient Indian texts is the
same i.e. pooling of resources that could be re-distributed in times of calamities such as fire,
floods, epidemics and famine. The early references to Insurance in these texts have reference to
marine trade loans and carriers' contracts.
Insurance in its current form has its history dating back until 1818, when Oriental Life Insurance
Company[3] was started by Anita Bhavsar in Kolkata to cater to the needs of European
community. The pre-independence era in India saw discrimination between the lives of
foreigners (English) and Indians with higher premiums being charged for the latter. In
1870, Bombay Mutual Life Assurance Society became the first Indian insurer.
At the dawn of the twentieth century, many insurance companies were founded. In the year 1912,
the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the
insurance business. The Life Insurance Companies Act, 1912 made it necessary that the
premium-rate tables and periodical valuations of companies should be certified by an actuary.
However, the disparity still existed as discrimination between Indian and foreign companies. The
oldest existing insurance company in India is the National Insurance Company , which was
founded in 1906, and is still in business.
The Government of India issued an Ordinance on 19 January 1956 nationalising the Life
Insurance sector and Life Insurance Corporation came into existence in the same year. The Life
Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers as also 75 provident
societies—245 Indian and foreign insurers in all. In 1972 with the General Insurance Business
(Nationalisation) Act was passed by the Indian Parliament, and consequently, General Insurance
business was nationalized with effect from 1 January 1973. 107 insurers were amalgamated and
grouped into four companies, namely National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance
Company Ltd. The General Insurance Corporation of India was incorporated as a company in
1971 and it commence business on 1 January 1973.
The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private
sector. Before that, the industry consisted of only two state insurers: Life Insurers (Life Insurance
Corporation of India, LIC) and General Insurers (General Insurance Corporation of India, GIC).
GIC had four subsidiary companies. With effect from December 2000, these subsidiaries have
been de-linked from the parent company and were set up as independent insurance
companies: Oriental Insurance Company Limited, New India Assurance Company
Limited, National Insurance Company Limited and United India Insurance Company Limited.
The primary regulator for insurance in India is the Insurance Regulatory and Development
Authority (IRDA) which was established in 1999 under the government legislation called
the Insurance Regulatory and Development Authority Act, 1999.[5][6]
The Insurance Act of 1938[4] was the first legislation governing all forms of insurance to provide
strict state control over insurance business.Life insurance in India was completely nationalized
on 19 January 1956, through the Life Insurance Corporation Act. All 245 insurance companies
operating then in the country were merged into one entity, the Life Insurance Corporation of
India.
The General Insurance Business Act of 1972 was enacted to nationalize about 100 general
insurance companies then and subsequently merging them into four companies. All the
companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance
and United India Insurance, which were headquartered in each of the four metropolitan
cities.Until 1999, there were no private insurance companies in India. The government then
introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-
regulating the insurance sector and allowing private companies. Furthermore, foreign investment
was also allowed and capped at 26% holding in the Indian insurance companies.
BAJAJ GROUP
Bajaj Group is an Indian conglomerate founded by Jamnalal Bajaj in 1926, Mumbai. Bajaj
Group is one of the oldest & largest conglomerates based in Mumbai, Maharashtra.[4] The group
comprises 36 companies & its flagship company Bajaj Auto is ranked as the world's fourth
largest two- and three-wheeler manufacturer.[5] Some of the notable companies are Bajaj Auto
Ltd, Bajaj Finserv Ltd, Hercules Hoists Ltd, Bajaj Electricals, Mukand Ltd, Bajaj Hindusthan
Ltd and Bajaj Holding & Investment Ltd.[6] The group has involvement in various industries that
include automobiles (2- and 3-wheelers), home appliances, lighting, iron and steel, insurance,
travel and finance. The group is headed by Rahul Bajaj.
COMPANIES UNDER BAJAJ GROUP
Bajaj Auto Ltd. – Manufacturers of Scooters, Motorcycles and Three-wheeler vehicles and spare parts.
Bajaj Finance Ltd. – Deals in financial services including hire purchase, financing & leasing.
Bajaj Finserv Ltd – Financial Services.
Bajaj Holdings & Investment Ltd. – Investment company focusing on new business opportunities.
Mukand Ltd. – Manufacturers of stainless, alloy and special steels including carbon and alloy steels.
Bajaj Electricals Ltd. - Manufacturers of electric fans, highmasts, lattice closed towers and poles.
Bajaj Ventures Ltd. – involved in manufacturing and trading of power tools and manufacturing of
houseware and parts.
Maharashtra Scooters Ltd. k- Manufacturers of Scooters.
Bajaj Allianz General Insurance Company Ltd. – General insurance business.
Bajaj Allianz Life Insurance Co Ltd. – Life insurance business.
Bajaj Financial Solutions Ltd. – Distribution of financial products and services.
Bajaj Allianz Financial Distributors Ltd. – Distribution of financial products.
Bajaj Auto Holdings Ltd. – Investment Company.
PT Bajaj Auto Indonesia (PTBAI) - Bajaj Auto venture in Indonesia.
Bajaj Auto International Holdings BV – Bajaj Auto venture in Netherlands.
Hind Lamps Ltd. – Manufactures GLS, fluorescent, miniature lamps and major components, such as glass
shells, miniature and alluminium caps, lead glass.
Mukand Engineers Ltd. – Construction, fabrication and erection of industrial and infrastructural projects
and infotech business.
Mukand International Ltd. – Trading in metals, steel and ferro alloys.
Bajaj Sevashram Pvt. Ltd. – Investment activities.
Jamnalal Sons Pvt. Ltd. – Investment and finance company.
Rahul Securities Pvt. Ltd.
Shekhar Holdings Pvt. Ltd.
Madhur Securities Pvt. Ltd.
Niraj Holdings Pvt. Ltd.
Rupa Equities Pvt. Ltd.
Kamalnayan Investments & Trading Pvt. Ltd.
Sanraj Nayan Investments Pvt. Ltd.
Hercules Hoists Ltd. – Manufactures ‘INDEF’ brand materials handling equipment such as triple spur
gear chain pulley blocks, chain electric hoists and wire rope.
Hind Musafir Agency Ltd. – Travel agency.
Bajaj International Pvt. Ltd. – Export electric fans, GLS lamps, fluorescent tubes, light fittings, etc.
Bachhraj Factories Pvt. Ltd. – Ginning and pressing of cotton bales.
Baroda Industries Pvt. Ltd. – Investment company.
Jeewan Ltd. – Investment company
Bachhraj & Co. Pvt. Ltd. – Investment company.
The Hindusthan Housing Co. Ltd. – Services company.
Hospet Steels Ltd. – Steel plant consisting of Iron Making Division, Steel Making Division and Rolling
Mill Division.
Type Public Company
Industry Conglomerate
Founded 1926
Founder Jamnalal Bajaj
Headquarters Pune, Maharashtra[1], India
Area served Worldwide
Key people Rahul Bajaj, Shekhar Bajaj, Madhur Bajaj, Niraj Bajaj, Rajiv
Bajaj, Sanjiv Bajaj
Products Automobile
Financial Services
Home Appliances
Electrical
Iron and Steel
Insurance
Revenue 425540 million(US$6.7 billion)
Number of
employees
45,000
Subsidiaries Bajaj Auto Ltd., Bajaj Holdings & Investment Ltd., Bajaj Finserv
Ltd, Bajaj Finance Limited, Bajaj Allianz General Insurance
Company Ltd., Bajaj Allianz Life Insurance Company Ltd., Bajaj
Electricals Ltd, Mukand Ltd, Hercules Hoists Ltd, Mukand
Engineers Ltd
Website www.bajajgroup.org//
COMPANY PROFILE
It is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited)
and Allianz SE. Both enjoy a reputation of expertise, stability and strength.
Bajaj Allianz received the Insurance Regulatory and Development Authority (IRDA) certificate
of Registration on 2nd May, 2001 to conduct various businesses (including Health Insurance
business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj
Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.
As on 31st March 2014 Bajaj Allianz maintained its premier position in the industry by
achieving growth as well as profitability. Bajaj Allianz has made a profit before tax of Rs. 587
crores and has become the only private insurer to cross the Rs.100 crore mark in profit before tax
in the last two years. The profit after tax was Rs.409 crores, 39% hithan the previous year.
Type Public listed company
Industry Insurance
Founded 2001
Headquarters Pune, India
Area served Worldwide
Key people Anuj Agarwal (MD & CEO)
Slogan Jiyo Befikar
Website www.bajajallianz.com
ABOUT BAJAJ FINSERV LIMITED
The financial services and wind energy businesses were transferred to Bajaj Finserv Limited (BFS) as
part of the recently concluded demerger from Bajaj Auto Limited, approved by the High Court of
Judicature at Bombay by its order dated December 18, 2007. The demerger was effective on March 31,
2007.[10]
BFS is engaged in life and general insurance businesses through its joint ventures with Allianz SE namely
Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited.
The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two– and three– wheeler
manufacturer and the Bajaj brand is recognized across several countries in Latin America, Africa, and the
Middle East, along with South and South East Asia.
Bajaj Holdings has been registered as a Non–Banking Financial Company (NBFC) under the Registration
No. N–13.01952 dated 29 October 2009 with Reserve Bank of India (RBI). The company is classified as
a Systemically Important Non–deposit taking NBFC as per RBI Regulations.
Bajaj Finserv, a part of Bajaj Holdings & Investments Limited, is an Indian financial services company[1]
[2] focused on lending, asset management, wealth management and insurance.[3][4][5]
The company through its joint ventures and subsidiaries employs over 20,000 employees and has
established a nationwide presence across over 1400 locations. The company is currently engaged in
consumer finance businesses, life insurance, and general insurance and has plans to expand its business
by offering a wide array of financial products and services in India.[6] Apart from financial services, Bajaj
Finserv is also active in wind–energy generation.[7][8]
Bajaj Finserv was ranked among The Economic Times 500 as #119 in 2014.[9]
Type Public Company
Industry Financial Services
Founder Jamnalal Bajaj
Headquarters Pune, Maharashtra, India
Key people Rahul Bajaj, Sanjiv Bajaj
Products Financial Services, Wealth Services, Insurance
Revenue 4774 Cr
Parent Bajaj Holdings & Investments Limited
Subsidiaries Bajaj Finance Ltd., Bajaj Allianz General Insurance Ltd.,Bajaj
Allianz Life Insurance Company Ltd., Bajaj Financial Services Ltd.
Website www.bajajfinserv.in
ABOUT ALLIANZ SE
Allianz SE is a German multinational financial services company headquartered in Munich. Its
core business and focus is insurance. As of 2013, it is the world's largest insurance company, the
11th-largest financial services group and 25th-largest company according to a composite
measure byForbes magazine,[3] as well as the largest financial services company when measured
by 2012 revenue.
Its Allianz Global Investors division ranks as a top-five global active investment manager,
having €1,770 billion of assets under management (AuM), of which €1,131 billion are third-
party assets (as of 2010-09-30), with specialized asset managers including PIMCO (bonds),
RCM (equities) and Degi (real estate).
Allianz sold Dresdner Bank to Commerzbank in November 2008.[4] As a result of this merger,
Allianz gained a 14% controlling stake in the new Commerzbank.
In India Allianz primarily operates through Bajaj Allianz Life Insurance Company & Bajaj
Allianz General Insurance Company Limited, a joint venture between Allianz and Bajaj Finserv
Limited. Bajaj Allianz has around 1,200 branches across India and offers services including unit-
linked, traditional, health, child and pension policies.
Industry Financial services
Founded 1890
Headquarters Munich, Germany
Area served Worldwide
Key people Michael Diekmann (CEO)
Helmut Perlet(Chairman of thesupervisory board)
Maximilian Zimmerer (CFO)
Products Insurance, banking, asset management
Revenue €122.3 billion (2014)[1]
Operating income €10.402 billion (2014)[1]
Profit €6.603 billion (2014)[1]
Total assets $624.95 billion (end 2013)[1]
Total equity $46.56 billion (end 2013)[1]
Number of
employees
171,340 (end 2013)[1]
Website www.allianz.com
VISION
To be the first choice insurer for customers
To be the preferred employer for staff in Insurance industry.
To be the number one insurer for creating shareholder value
To aspire to be a world class organization
To encourage organizational transparency
To value integrity
MISSION
We aim to be the top new life insurance company in the market. This does not just
mean being the largest or the most productive company in the market, rather it is a combination
of several things like
Customer service of the highest order.
Value for money for customers.
Professionalism in carrying out business.
Innovative products to cater to different needs of different customers.
Use of technology to improve service standards.
Increasing market share
VLAUES
Security
Providing long term financial security to our policy holders will be our
constantendeavor. We will be do this by offering life insurance and pension products
Trust
We appreciate the trust placed by our policy holders in us. Hence, we will aim
tomanage their investments very carefully and live up to this trust.
Innovation
Recognizing the different needs of our customers, we will be offering a range of innovative
products to meet these needs
ACHIEVEMENT
Bajaj Allianz Life Insurance has been awarded the SKOCH Financial InclusionAward 2011 for
its execution of financial inclusion initiatives through life insuranceacross India. Financial
inclusion is the delivery of financial services at affordablecosts to low income segments of
society.
The award recognizes Bajaj Allianz's micro-insurance product catering to ruralmarkets,
Sarve/Swayam Shakti Suraksha (SSS). A flexible and simple plan, SSSoffers rural customers
insurance protection against unforeseen events and anopportunity to save systematically
Bajaj Allianz has received “iAAA rating, from ICRA Limited, an associate of Moody’s Investors
Services, for Claims Paying Ability. This rating indicates highestclaims paying ability and a
fundamentally strong position.
Bajaj Allianz General Insurance has received the prestigious “Business Leader in General
Insurance”, awarded by NDTV Profit Business Leadership Awards 2008. The company was one
of the top three finalists for the year 2007 and 2008 in the General Insurance Company of the
Year award by Asia Insurance Review
PRODUCTS
Traditional Plans
Life Time Care:-Is a whole life plan, where it helps you financially at the time when
your regular income ends. That is it provides survival benefits at the age of 80. The plan also
hasadditional benefits like Waiver of Premium, Accidental Death Cover & Disability Cover
andCritical Illness Cover & Hospital Cash Cover
.
Super Saver:-Is a regular premium endowment plan, which enables the policyholder tosave an
amount regularly for the future. The plan also has an extra benefit of GuaranteedAdditions to the
sum assured, at the end of each policy year.
Save Care Economy SP:-A 10year single premium endowment plan which providessavings with
high risk cover. This plan also participates in the company’s profits. It is a highrisk but has easy
liquidity and high returns.
Money Back Plan:-A money back plan which guarantees 5 easy payouts giving up to 125% plus
(+) bonuses. Also 4 times a life cover. The additional benefits offered are
Family Income Benefit
Accidental Death Benefit and Disability Benefit.
Critical Illness Benefit and Hospital Cash Benefit
Term Plans
Term Care:-Is a term Assurance plan which provides life cover and return of premiums paid at
the time of maturity. It has the option of single premium payment. It is the only pureTerm Plan
which provides Hospital Cash Benefit.
New Risk Care:-Is a plan with regular/single premium payment options. This plan comeswith
a lowest cost for a Life Insurance cover. With regular premium plan you get additional rider
benefits. Also accidental death benefit and accidental permanent total/partial disability benefit.
Besides that you can also avail of critical illness benefit and hospital cash benefit.
Protector:-Is a mortgage reducing term assurance plan. At a low premium amount you cansecure
your family from the burden of paying the Home Loan in your absence. You get anoption of both
Regular Premium payment and single premium payment. Also there is anoption of Joint life
availability, where the co-applicant can be also covered in the plan.
Unit Linked Plans (Regular premium & Single Premium)
A) Regular Premium
New Unit Gain: Is an investment plan where you get value for your funds invested.
New Gain Super:Is a flexible unit linked plan with partial & full withdrawals after 3years. It
offers additional benefits like UL Accidental Death Benefit and UL DisabilityBenefit, UL
Critical Illness Benefit and UL Hospital Cash Benefit and 4 funds to choose from& flexibility to
pay top-up any time.
New Unit Gain Plus:This plan gives you 5 investment funds to choose from. With theoption of 3
free switches every year. Also partial or full withdrawal after 3 years. It planoffers flexibility to
meet ones changing lifestyle and insurance needs. It offers guaranteed lifecover.
Unit Gain plus Gold:A unique investment plan with the combination of protection and prospects
of earning attractive returns. It has a high allocation up to 85%. You have a choiceof 7 funds to
invest in & also a guaranteed life cover. Additional benefit riders are alsoavailable with this plan.
New Family Gain-R:It is Life Insurance Plan that can take care of all the changingrequirements
of the family. It has maximum flexibility, so that you are provided for all thechanging needs you
may have.
Young Care:This investment plan is a Gift of a lifetime to a loved one. It offers aguaranteed Sum
Assured and continued pay premium on your behalf, in case of your unfortunate death.
Young Care Plus:It offers the same benefit as the above plan but in addition offers acritical
illness benefit
B) Single Premium
New Unit Gain Premier SP:It is a unique insurance cum investment plan as it startsinvesting
105% of the single premium paid from day one, thereby ensuring that you get more.It has a
guaranteed life cover and flexible withdrawal option u/s 10 (10) D.
New Unit Gain plus SP:Is a single premium plan that gives you 98% allocation withguaranteed
life cover. Minimum premium is Rs. 10,000 only. A choice of 5 investment fundsto choose from.
And 3 free switches every year. Partial & full withdrawals after 3 years
Pension (Annuity & Retirement)
A) Annuity
Pension Guaranteed:Is a plan that assures a regular income after your retirement for life.
B) Retirement
New Unit Gain Easy Pension plus RP:A unit linked pension plan without life cover. Ithas regular
premium payment mode. An option to take a tax-free lump sum up to 33% of Sum Assured. You
can invest in any 6 funds. With 3 free switches every year. Also openmarket option: Purchase
immediate annuity from Bajaj Allianz Life Insurance or any other life insurer.
New Unit Gain Easy Pension plus SP: A unit linked pension plan without life cover. Ithas single
premium payment mode. An option to take a tax-free lump sum up to 33% of SumAssured. You
can invest in any 6 funds. With 3 free switches every year. Also open marketoption: Purchase
immediate annuity from Bajaj Allianz Life Insurance or any other lifeinsurer.
Swarna Vishranti:Is a plan with an option to take a tax-free lump sum up to 33% of SumAssured
+ Accrued Bonuses. Open Market option: Purchase immediate annuity from BajajAllianz Life
Insurance or any other Life Insurance Company. And also additional benefitscan be availed of.
Future Secure:It is a plan which secures your future.
Future Income Generator:It helps you maintain the same lifestyle you lead now ,after your
retirement. The saving today becomes your wealth and support to help secure your future. The
plan is about wealth creation, smart savings and peace of mind along with a corpus, which
secures your life, post retirement
Women Insurance Plans
Housewives:Housewives need to safeguard their financial independence. There areadditional
benefits like the Mahila Gain feature which offers benefits like.
Critical Illness Benefits.
Reconstructive Surgery Benefits for Breast(s) due to Breast Cancer.
Congenital Disability Benefits.
Complications of Pregnancy Benefits.
Working Women:-This plan helps the working women to protect them self, their familyand plan
for their future. The insurance, investment, pension and health products have beenspecially
customized to suite to every specific need of a woman.
Children Plans
Child Gain:Is a plan where it creates funds for critical stages in your Childs life likeeducation,
marriage or even to start a business. It has the benefit of low premium rates.
Health Plans
Health care:Is a plan with 6- in-1 Health Insurance that offers:• Life Cover • Hospital Cash
benefit• Surgical benefit• Post Hospitalization Benefit• Critical Illness Cover • Accidental
Permanent Total / Partial Disability (APT/PD)
Family Care First:It is a plan for the whole family. This unique hospitalization plan givesyou
health cover for your entire family. You can secure your family with one plan.
Care First:A Medical Insurance plan till the age of 65years. And you can renew the policy every 3
years. The premium rate is level and guaranteed for the length of each policyterm of 3 years with
extra benefits like day care treatment and pre and post hospitalization treatment
Micro Insurance Plans
Alp Nivesh Yojana:An endowment plan with Life cover and Maturity benefit equal tosum
assured + vested bonus.
Saral Suraksha Yojana:A Term Insurance policy with return of premium on maturity.
Jana Vikas Yojana:A single premium plan with maturity benefit of 125% of the single premium
payable on survival till the end of the policy term
AREA OF OPERATION
Bajaj Allianz today has a country wide network connected through the latest technology
for quick communication and response in over 200 towns spread across the length
and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all th
eoffices are interconnected with the Head Office at Pune. During the year, company continued to
increase its focus on service quality. The company aims to provide consistent and high quality
service across the country through, all channels of delivery - branches, call centers, internet and
the customer portal. Towards this end, periodic service audits conducted across all regional
offices and at the call centers provide useful insights into customer requirements and
expectations helping the company improve its processes. The company hasimplemented a
Quality Initiative across its offices which regularly measures the effectivenessof its processes,
reduces leakage and contributes to increasing revenues, managing costs andimproving service
quality. The company has also launched a completely revamped websitewith a big focus on
customer education and knowledge. The company has continued tostrengthen its presence in the
virtual world, both for creating awareness and facilitating self-service. Your company continues
to explore strategic outsourcing partnerships with a focuson handling volumes and reaping
economies of scale. The combination of outsourcing partnerships and technology implemented
by the company is assisting in improvement
COMPETITORS
ICICI PRUDENTIAL:
ICICI prudential insurance is a joint venture of ICICI bank and prudential plc. a
leading financial service group in the UK. Total capital stands for Rs. 37.72 billion, with
ICICI Bank holding a stake of 74% and Prudential plc. Holding 26%. ICICI begin
their operations in December 2000 after receiving approval from IRDA. Now
ICICI prudential is having over 1000 offices, over 270000 advisors and 21 bancassurance
partners.ICICI Prudential was the first life insurer in India to receive a National
Insurer FinancialStrength rating of AAA from Fitch ratings. ICICI prudential is
working on the base of five core values-
Integrity
Customer first
Boundary less
Ownership
HDFC standard life insurance:
HDFC Standard Life Insurance Company Ltd. is one of India's leading private
insurance companies. It is a joint venture of Housing Development
F i n a n c e C o r p o r a t i o n L i m i t e d , I n d i a ' s l e a d i n g h o u s i n g f i n a n c e i n s t i t u t i o n
a n d a G r o u p Company of the Standard Life in UK. HDFC as on March 31, 2007
holds 81.9 per cent of equity venture. Gross premium income of the HDFC for the year
ending March 31, 2007 wasRs. 2, 856 crores and new business premium income was Rs. 1,624
crores. The company hascovered over 8, 77,000 lives year ending March 31, 2007.
HDFC standard is having 1000 advisors in 11 towns
Reliance life insurance:
Reliance Life Insurance Company Limited is a part of Reliance C a p i t a l L t d . o f
t h e R e l i a n c e - A n i l D h i r u b h a i A m b a n i G r o u p . R e l i a n c e C a p i t a l i s o n e
o f India’s leading private sector financial services companies, and ranks among the top 3
privatesector financial services and banking companies, in terms of net worth. Reliance Capital
has interests in asset management and mutual funds, stock broking, life and general
insurance, proprietary investments, private equity and other activities in financial
services. RelianceCapital Limited (RCL) is a Non-Banking Financial Company
(NBFC) registered with theReserve Bank of India under section 45-IA of the Reserve Bank
of India Act, 1934.
Aviva life insurance:
Aviva is UK’s largest and the world’s fifth largest insurance Group. Itis one of the leading
providers of life and pensions products to Europe and has substantial businesses
elsewhere around the world. Aviva has a joint venture of Dabur, one of
India'so l d e s t , a n d l a r g e s t G r o u p o f c o m p a n i e s . A n d c o u n t r y ' s l e a d i n g
p r o d u c e r o f t r a d i t i o n a l healthcare products. In accordance with the government
regulations Aviva holds a 26 per centstake in the joint venture and the Dabur group
holds the balance 74 per cent share.
Avivahas 193 Branches in India (including rural branches) supporting its
distribution network.T h r o u g h i t s B a n c a s s u r a n c e p a r t n e r l o c a t i o n s , A v
i v a p r o d u c t s a r e a v a i l a b l e i n m o r e than 2,795 locations across India. Aviva
has a sales force of over 30000 financial planning advisors.
MetLife insurance:
MetLife India Insurance Company Limited is an affiliate of MetLife, Inc. and was
incorporated as a joint venture between MetLife International Holdings, Inc. and T h e J a m m u
a n d K a s h m i r B a n k , M . P a l l o n j i a n d C o P r i v a t e L i m i t e d a n d o t h e r p r i v a t e
investors. MetLife is one of the fastest growing life insurance companies in the
country. It offers a range of innovative products to individuals and group
customers at more than 600locations through its bank partners and company-owned
offices. MetLife has more than3 2 0 0 0 ,
F i n a n c i a l A d v i s o r s . I t h a s a p p r o x i m a t e l y 7 0 m i l l i o n c u s t o m e s a l l o v e r
w o r l d . MetLife is working on the base of six core values-
Innovation
Long term relationship
Customer centered and result focused vision
Creating high performance organization
Working with integrity, fairness and financial prudence
Partnering with internal and external customers
Bharti Axa life insurance:
Bharti Axa life insurance is a joint venture between Bharti, one of India’s leading business
groups with interests in telecom, agri business and retail, and Axaworld leader in financial
protection and wealth management. The joint venture company hasa 7 4 % s t a k e f r o m
B h a r t i a n d 2 6 % s t a k e o f A x a . T h e c o m p a n y s t a r t e d i t s o p e r a t i o n s
i n December 2006. Now company is having over 5200 employees across over 12
states in thecountry. Company is working on the base of five core values-
Professionalism
Innovation
Team Spirit
Pragmatism
Integrity
Tata AIG life insurance:
Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company of the
Tata Group and American International Group, Inc. (AIG). TheTata Group holds 74 per cent
stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG Life provides
insurance solutions to individuals and corporate. Tata AIGLife Insurance Company started to
operate its business in India on April 1, 2001. Tata AIG ishaving 3000 advisors all over India.
Birla sun life insurance:
Birla Sun Life Insurance Company Limited (BSLI) is a jointventure between the
Aditya Birla Group and the Sun Life Financial Services of Canada. It started
operations in March 2001 after receiving its registration license from IRDA in January 2001.
Company is having more than 45 branches across India.
Canara HSBC OBC Life
The shareholding pattern of the Joint Venture is as follows - Canara Bank holds 51%
equity,HSBC Insurance (Asia Pacific) Holdings Ltd 26% and Oriental Bank of Commerce 23%.
TheVenture has an initial paid up capital of INR 325 crores which will further
increase in linewith our expansion plans.
LITERATURE REVIEW
Bajaj Allianz Life Insurance sells 4 lakh shares of Mastek
MUMBAI: Private sector life insurance firm, Bajaj Allianz Life Insurance Company, today
offloaded nearly four lakh shares of infotech solutions company, Mastek Ltd for Rs 5
crore.According to information available with the stock exchanges, Bajaj Allianz Life Insurance
sold 3.99 lakh shares of Mastek through bulk deals.The shares were sold on an average price of
Rs 125 valuing the transaction at Rs 4.98 crore.Meanwhile, Morgan Stanley Asia (Singapore) Pte
bought three lakh shares of Mastek for Rs 3.75 crore.Earlier in December, Bajaj Allianz Life
Insurance had sold 4 lakh shares of Mastek for an estimated Rs 6.08 crore in open market
transactions.As of March quarter, Bajaj Allianz Life Insurance held 8.69 lakh shares or 3.53 per
cent stake in Mastek.Shares of Mastek rose 1.26 per cent to settle at Rs 123.70 apiece on the
BSE.
Bajaj Allianz Life ties with Policy Bazaar aims 20% online market
GURGAON: Private insurer Bajaj Allianz today tied up with online financial services provider
PolicyBazaar.com to capture online life insurance policy market.
"We have tied up with Policy Bazaar, as it has a proven track record in the online insurance sales
space. Also, with Policy Bazaar's expertise, we are confident of witnessing growth in this
segment," Anuj Agarwal, MD and CEO, Bajaj Allianz Life Insurance."We are targeting about
10-20 per cent share from the online space," he said, adding that online insurance market is
poised to see a substantial growth in the coming years.India's online insurance market is of about
Rs 700 crore, of which about Rs 300 crore is of life insurance business, as per industry
estimates.Bajaj Allianz will launch a total of six products from PolicyBazaar.com platfrom.Bajaj
Allianz is already in the online insurance market with its products iSecure, Future Gain, Life
Long Assurance and several other products. These products would now also be available on
PolicyBazaar.com.The overall life insurance new annualised business is likely to grow to Rs
1.25-1.50 lakh crore by 2020, and a large portion of this growth is expected to come from online
sales, said Yashish Dahiya, CEO and Co-Founder, PolicyBazaar.com.
Bajaj Allianz Life Insurance launches Special Revival Campaign
PUNE: Bajaj Allianz Life Insurance has launched a Special Revival Campaign spanning over 70
days to help policyholders renew their lapsed Life Insurance policies. This campaign which
started on the 18th Jan 2014 and will run up to 31st March 2014 offers to renew lapsed policies
that fall under their prescribed revival period. Special benefits have been extended to the Policy
Holders under this campaign like 50% waiver of interest amount on Traditional Policies. The
Company has relaxed its underwriting norms by simplifying the DGH (Declaration of Good
Health) form and waving medicals for the policyholder's whose age is up to 55 years.
Ms. Jasleen Kohli, Head - Operations, Bajaj Allianz Life Insurance said, "Life Insurance is one
of the most important risk protection tools, especially during uncertain times. We launched this
campaign to reiterate the importance of renewing one's life insurance cover and help our
policyholders revive their lapsed policies. To facilitate the same, we have relaxed our
underwriting norms and have extended special benefits."
Commenting on the importance of keeping policy in force, Ms. Kohli added, "Revival of life
insurance policy gives the policyholder crucial benefits such as continuance of life cover, tax
advantages, and other policy benefits. It is, therefore, in the best interest of the customer to keep
their policy in force."
This scheme is being communicated to the customers and sales force via SMS, Calls and Letters
etc. The details and the information on the campaign are also available on the Company's
website. This scheme is applicable to all individual Traditional and Unit Linked policies.
Bajaj Allianz Life Insurance pays claims worth Rs 651 crore in FY14
MUMBAI: Bajaj Allianz Life Insurance today said it has settled more than 1 lakh claims during
the last financial year and paid claims worth around Rs 651 crore. "We focused on digitising the
claim settlement process and started image-based documentation at various branch offices. This
helped claimants get faster response," Bajaj Allianz Life Insurance Head (Claims) P Ravi
Kutumbarao said in a release here.
The private insurer settled more than 1 lakh claims, both individual and group, paying out Rs 651
crore, during the just concluded fiscal, it said. The claim settlement ratio was 97.45 per cent in
FY14. About 77 per cent claim proceeds were settled through electronic mode directly into the
claimants' bank account.
Claims arising out of natural calamities like the last year's floods in Uttarakhand and Himachal
Pradesh were settled with minimum documents and in just two days of receiving the required
documents, the release said. The company received a total of 35 claims (including accidental
benefit cases) related to floods in Uttarakhand and Himachal Pradesh and paid more than Rs 73
lakh.The Pune-based company is a joint venture between between Bajaj Finserv and German
insurer Allianz SE.
Standard Chartered’s deal signals end to Bajaj Allianz tie-up
MUMBAI: Standard Chartered Plc's tie-up with Bajaj Allianz has virtually ended after the UK-
based bank last week signed an agreement with Prudential to sell its insurance products in more
markets, including India.
In India, a bank can sell the products of only one life, one non-life and one health insurance
company . This implies that Standard Chartered will have to terminate its pact with Bajaj Allianz
to honour its new commitment. Standard Chartered and UKbased insurer Prudential entered into
a 15-year agreement on March 14.
Under the terms of the new agreement, a wide range of Prudential's life insurance products will
be exclusively distributed through Standard Chartered branches in nine markets — Hong Kong,
Singapore, Indonesia, Thailand , Malaysia, the Philippines, Vietnam, India and Taiwan —
subject to applicable regulations in each country. In India, the lender will sell the products of
ICICI Prudential Life Insurance.
The pact, which is to come into effect from July 1, is subject to regulatory approvals. The break-
up with Bajaj, however, is unlikely to be smooth. "We have an existing agreement and any
change will have to be taken after regulatory approvals ," said a senior executive of Bajaj Allianz
Life Insurance, requesting anonymity. The issue could get sticky if the Indian government and
the insurance regulator decide to make it mandatory for all banks to sell insurance products of
multiple companies.
The insurance broking model, which has the backing of the Insurance Regulatory and
Development Authority , is being debated. In the first nine months of the current financial year,
Bajaj Allianz Life Insurance reported a 1.77% drop in new business income . About 10-12 % of
Bajaj Allianz's income was from selling policies through Standard Chartered Bank.
In India, insurers that are not sponsored by banks are struggling to grow their business ,
especially after the regulator capped the commission that can be paid to agents. In 2012-13 ,
bancassurance accounted for 40% of the total income for private sector companies, up from 35%
in the previous year.
Bajaj Allianz to launch new life insurance products
MUMBAI: Bajaj Allianz Life Insurance plans to launch individual and group insurance plans
under the new product guidelines.
The company plans to launch two individual life insurance plans, Save Assure and Invest Assure
with a guarantee element and one whole life plan Life Long Assure, Bajaj Allianz Life said in a
release issued here today.
"We are launching three new insurance plans, which will cover the needs of individuals at their
different life stages," Anuj Agarwal, Bajaj Allianz Life Insurance Managing Director & CEO,
said.
"We have plans with a guarantee element, with a feature of premium payment for limited period
and extended cover for few more years. We will be launching a suite of online and channel
specific insurance plans by end of Jan 2014," he said.
The plans also offer flexibility to choose the policy and payment term and come with an option
to take policy benefit in monthly installments.
Save Assure is a traditional endowment plan that protects finances by providing guaranteed
returns with policy terms of 15 and 17 years, premium payment terms of 10 and 12 years, no
premiums payable in the last five policy years and guaranteed return of 115 per cent of the sum
assured, the company said.
Invest Assure is a traditional endowment plan that assures protection to the consumer and his
family by providing financial benefits, it said.
The plan has two life cover variants - Invest Assure Gold and Silver - with key features like
option to choose life cover, which is 1.25 or 2 times of the sum assured. It also offers compound
reversionary bonus and terminal bonus, limited premium payment terms and option to take
policy benefit in monthly installments.
Bajaj Finserv's Q2 net jumps 28% to Rs 277 cr
MUMBAI: Financial services company, Bajaj Finserv has reported 28 per cent increase in net
profit at Rs 277 crore for the July-September quarter, led by growth in its lending and general
insurance businesses.
The company had posted a net profit of Rs 217 crore in the same quarter of last fiscal, 2012-13.
Growth in the second quarter (2013-14) was led by Bajaj Finance where we saw a 30 per cent
growth in net profit and general insurance business which witnessed 45 per cent increase in
profit after tax," said S Sreenivasan, president finance at Bajaj Finserv.
Bajaj Finserv Ltd is in life insurance business through its subsidiary Bajaj Allianz Life
Insurance, in general insurance business through Bajaj Allianz General Insurance and in the
lending business through Bajaj Finance.
Finserv's consolidated gross revenue stood at Rs 4,056 crore in the July-September quarter as
against Rs 3,721 crore in the same period last year, a growth of 9 per cent.
The company's income from operations grew 30 per cent to Rs 1,309 crore in Q2, 2013-14 as
against Rs 1,008 crore in the year-ago period, the company said in a release.
Bajaj Finance's net profit increased by 30 per cent in the July-September period to Rs 167 crore
as against Rs 129 crore in the same period last year.
Its total income in Q2 FY'14 rose 31 per cent to Rs 964 crore as compared to Rs 737 crore in the
year-ago period.
Bajaj Finance assets under management (AUM) stood at Rs 19,829 crore as on September 30
compared to Rs 17,517 crore as on March 31, 2013, the release said.
IRDA slaps fine of Rs 3.10 crore on Bajaj Allianz Life
NEW DELHI: Insurance regulator IRDA today imposed a hefty penalty of Rs 3.10 crore on
Bajaj Allianz Life Insurance for violation of various norms, including those related to early-death
claims and group insurance.
"...as directed under the respective charges, the penalty of Rs. 3.10 crore shall be remitted by the
life insurer (Bajaj Allianz Life) by debiting shareholders' account...," the Insurance Regulatory
and Development Authority (IRDA) said in an order. The fine has to be paid within 15 days, it
said.
The regulator imposed a fine of Rs 78 lakh for rejecting certain early-death claims as un-
concluded contracts. These relate to cases where insured persons died after the date of
commencement of risk but before receiving the policy document.
It noted that this was a violation of File and Use Guidelines. The life insurer repudiated 78 cases
during 2010-11 on grounds of un-concluded contracts.
"While noting the submissions that the life insurer has decided to re-open all the repudiated cases
on grounds of un-concluded contracts and also discontinued the said practice, it is considered
that the actions of the insurer are not fair and against the interests of the policyholders..." it said.
It added that the insurer is warned against wrongful claim practices and directed to ensure
settlement of claims in fairness, both as per terms and conditions of the policy contract and as per
regulations.
Bajaj Allianz also violated norms by entering into referral arrangements with entities that were
not licensed to act as corporate agents or insurance intermediaries for the sale of group insurance
products, the regulator said.
"By entering into referral agreements and making payments to group policy holders, the insurer
has grossly violated Clause B-2 of Group Guidelines," IRDA said.
Therefore, it said, under powers of the Act, a penalty of Rs 70 lakh is levied on the life insurer
MARKET SHARE OF INSURANCE COMPANIES
SWOT ANALYSIS
Strengths
Bajaj Allianz is the largest private player in the insurance industry in India.
Excellent services.
Customization of Products as per customer’s needs.
Brand Image.
Business Experience.
Strong Financial Base.
Innovative products, Technology, organization culture and climate.
The company has a large network of branches which is helpful to customer for the payment.
Weaknesses
Lot of competitors are in the market offer same product by the title difference in the premium
and offerings.
Target only higher income group whereas other companies are trying to catch middle-lower level
people.
Higher premiums as compared to the other companies
Clients face problems to get insured due to large number of formalities.
High targets for financial advisors and for the sales department.
Opportunities
Huge market is literally untapped. Out of estimated 320 million insurable markets only 20% of
the population is insured.
In a conservative society of India where people are more inclined towards risk free investments
such as Bank FD’s and savings rather than equity and high risk investments insurance offers the
best of both worlds – The security with high returns. So there exists high potential for insurance
company like BAJAJ ALLIANZ.
In the pension field where people want good life after their retirement.
Indian people are more emotional towards their children that’s why children plans are selling like
hot cakes.
Health insurance and pension Schemes, an estimated market potential of approximately $15
billion.
Threats
Weak perception of private players in the minds of Indian people due to frequent financial
scams.
Large number of insurance players.
Players like ICICI PRUDENTIAL and Birla sun life with low premium for the similar plans.
Entry of many other private companies with equally strong experience and financial strength of
foreign partners making the competition difficult and saturating the urban markets.
For the Insurance sector Government set the authority that is IRDA (Insurance Regulatory and
Development Authority) which is undertaken to track record of all the companies and change
rules day by day more rigid which is very difficult for the companies.
Financial analysis
Profit and loss account
As on 31 march 2013-14
BALANCE SHEET
AS ON 31 MARCH 2014
It wrote new business of Rs. 2,592 crores during financial year 2013- 14 compared to Rs.2,988
crores in the previous year ie 2012-13
The gross premium written, which includes renewal premiums in addition to new business
premiums, for the financial year 2013-14 was Rs. 5,843 crores, as compared to Rs. 6,892 crores
in the previous year
Company’s market share of new business premium was 8.8% for 2013-14, as compared to 9.7%
in the year 2012-13.
Unit linked premiums contributed 17.8% of your Company’s new business premiums in 2013-
14, compared to 18.9% in the previous year
Traditional individual premiums constituted 36.6% of overall new business premiums in
financial year 2013-14 as compared to 36.0% in financial year 2012-13.
Despite most of the old unit-linked policies having completed their mandatory three year lock-in,
surrenders for the year at Rs.7,250 crores were 15% lower than the previous year figure of
Rs.8,505 crores.
Your Company earned a profit in the Policyholders’ account, of Rs. 649 crores during 2013-14,
as compared to a profit of Rs. 862 crores in the previous year. After the distribution of current
year’s surplus of Rs. 639 crores (Previous Year Rs. 832 crores), transfer of Rs. Nil (Previous
Year Rs.85 crores) from the Funds for Future Appropriation and the investment income from
shareholders’ funds, the shareholders’ profit after tax was Rs. 1,025 crores (Previous Year Rs.
1,286 crores)
Your Company has accumulated profits included under Reserves and Surplus, of Rs. 4,660
crores as at 31st March 2014.
The total funds under management as on 31st March 2014 were Rs. 38,780 crore
The total investments under management of your Company showed a marginal increase of 2.1%
in the year.
The total funds infused by the shareholders in the Company remains Rs. 1,211 crores.
The net worth of your Company as at 31stMarch, 2014 was Rs. 5,871 crores as against Rs. 4,844
crores at 31stMarch 2013.
Your Company had no accumulated losses as at 31stMarch 2014.
. The solvency ratio as at 31stMarch 2014 stands at 733.5% which is well in excess of the
required solvency margin of 150%.