EXECUTIVE SUMMARY

The project report on “A study on customer awareness to enhance market share of

Bajaj Allianz Unit Link Insurance Plan” in Hubli city. I through under took the project by

the help of BAJAJ ALLIANZ Life Insurance Ltd. Sales team manager Chandru.

A.Kallanagoudar

Objectives:

1. To study the awareness level of Bajaj Allianz ULIPs with view to

recommend measure to improve market share.

2. To find vital communication media.

3. To know the factors that influence investors while taking investment

decisions.

4. To find potential market for ULIPs.

Scope of the study:

The research was undertaken to gather information from the

respondent to know exactly how many people aware of ULIPs in

Hubli city and the study is restricted within the city.

One of the fast growing city in Karnataka and represents huge

market for scope with more than 90 lakhs people.

Hubli is one of the commercial areas .

It is a place where the small and large industries are located .with

the more increase population and there style more people are

conscious about the their lives.

BABASAB PATIL 1

LIMITATIONS OF THE STUDY

Not single work is exception to the limitations every work has got its own

limitations, so due to time constraint my study confines only to Hubli city and it is not

possible to make extensive study. It is assumed that the sample selected represents entire

population.

RESEARCH METHODOLOGY

Data source :Primary (Filed Survey)

Secondary data (internal)

Area of Research : Hubli city

Research instrument : Questionnaires

Sample plan : Personal interview

Sample unit :Businessman’s, jobholders,

professionals etc.

Sampling method : Random sampling

Sample size : 100 customers

BABASAB PATIL 2

INDEX

PARTICULAR Page no

Chapter-I

1) Introduction 09

2) Literature Review 18

3) Statement of the problem 19

4) Purpose of the study 19

5) Scope of the study 26

6) Objectives of study 27

Chapter-II

1) Organization Profile 29

2) Organization Chart 62

3) Sampling 64

4) Research Design 64

5) Data Collection Methods 64

6) Measuring tools. 65

Chapter-III

1) Result & discussion with graphs & charts. 68

2) Summary, conclusion, & a proposed action plan with resource requirements

and projected benefits to the organization. 84

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Chapter-IV

1) Appendix

Questionnaire 88

Weekly Reports

2) Bibliography 92

BABASAB PATIL 4

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Industry overview

A brief history of the Insurance sector

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

1818 With the establishment of the Oriental Life Insurance Company in

Calcutta. Some of the important milestones in the life insurance

business in India are:

1912 The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928 The Indian Insurance Companies Act enacted to enable the government

to collect statistical information about both life and non-life insurance

businesses

1938 Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public

1956 By the mid-1950s, there were around 170 insurance companies in the

country's life insurance scene. However, in the absence of regulatory

systems, scams and irregularities were almost a way of life at most of

these companies

As a result, the government decided nationalizes the life assurance business in India. The

Life Insurance Corporation of India was set up in 1956 to take over around 250 life

companies. 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act.

BABASAB PATIL 6

For years thereafter, insurance remained a monopoly of the public sector. It was only

after seven years of deliberation and debate - after the RN Malhotra Committee report of

1994 became the first serious document calling for the re-opening up of the insurance

sector to private players -- that the sector was finally opened up to private players in

2001.

The Insurance Regulatory & Development Authority, an autonomous insurance regulator

set up in 2000, has extensive powers to oversee the insurance business and regulate in a

manner that will safeguard the interests of the insured.

INSURANCE SECTOR REFORMS

Due to immense growth in the insurance sectors the regulations were introduced. In

1993,Malhotra Committee headed by former Finance Secretary and RBI Governor was

formed to evaluate the Indian insurance industry and give its recommendations. After this

committee the regulatory body for insurance sector was formed with the name of IRDA.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

(IRDA)

IRDA has been formed as an authority to protect the interests of insurance policies, to

regulate, promote and ensure orderly growth of insurance Industry and for matters

connected therewith of incidental thereto.

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Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act of 1999, The Authority is a ten-member team

consisting of..

1) A Chairman

2) 5 Whole team Members

3) 4 part time members

Duties, Powers and Functions of IRDA

Section 14 IRDA Act, 1999 lays down the duties, powers and functions of IRDA

1. The Authority has the duty to regulate, promote and ensure orderly growth of the

Insurance business and re- insurance business.

2. This Include -

a) Issue to the applicant a certificate of registration, renew, modify,

Withdraw, suspend or cancel such registration.

b) Protection of interests of the policy holders in matter concerning assigning

of policy, nomination by policyholders, insurable interest, settlement of

insurance claim, surrender value of policy and condition of contracts of

insurance.

c) Specifying the code of conduct and practical training for intermediary or

insurance intermediaries and agents

3. Specifying the code of conduct for surveyors and loss assessors.

4. Promoting efficiency in the conduct of insurance business.

5. Promoting and regulating professional organization connected with insurance and

reinsurance business.

6. Levying fees and other charges for carrying out the purposes of this act.

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7. Calling from information from, undertaking inspection of, conducting enquiries

and investigation including audit of the insurers, intermediaries and other

organization connected with the insurance business

8. Control and regulation of the rates, advantages, terms and condition

9. Specifying the form and manner in which books of accounts shall be maintained

and statement of account shall be rendered by insurers and other intermediaries.

10. Regulating investment of funds by insurance companies.

11. Regulating maintenance of margin of solvency.

12. Adjudication of disputes between Insurers and intermediaries or insurance

intermediaries.

13. Supervising the functioning of the Tariff Advisory Committee.

14. Specifying the % of Premium, Income of the insurer to finance schemes for

promoting and regulating professional organizations

15. Specifying the % of Life Insurance Business and general Insurance Business to be

undertaken by the Insurer in the rural or social sector.

The IRDA since its incorporation as a statutory body has been framing

Regulations and registering the private sector insurance companies. IRDA being an

Independent statutory body has put a framework of globally compatible regulations.

Indian Insurance Sector

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

Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972,

Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related

acts.

INSURANCE COMPANIES:

In the private sector 12 life insurance and 6 general insurance companies

have been registered.

LIFE INSURERS

Public Sector

Life Insurance Corporation of India

LIFE INSURANCE CORPORATION OF INDIA (LIC)

An Act of Parliament, viz., Life Insurance Corporation Act, formed Life Insurance

Corporation of India (LIC) in September 1956, with capital contribution from the

Government of India.

The objective was: to conduct the business with the utmost economy, in a spirit of

trusteeship; to charge premium no higher than warranted by strict actuarial

considerations; to invest the funds for obtaining maximum yield for the policy holders

BABASAB PATIL 10

consistent with safety of the capital; to render prompt and efficient service to policy

holders, thereby making insurance widely popular.

Since nationalization, LIC has built up a vast network of 2,048 branches, 100 divisions

and 7 zonal offices spread over the country. The Life Insurance Corporation of India also

transacts business abroad and has offices in Fiji, Mauritius and United Kingdom.

CURRENT SCENARIO OF THE INSURANCE INDUSTRY

Innovative products and aggressive distribution have become the say of the day. Indians,

have always seen life insurance as a tax saving device, are now suddenly turning to the

private sector that are providing them new products and variety for their choice.

PRIVATISATION:

There were various reasons given by the government to nationalize the insurance

sector was to take insurance to the mass, facilitate the flow of long term funds (which

insurance companies, by virtue of the business they are in, have ready access to) into

development of infrastructure in the country, and safe guard the interest of the policy

holders. Towards this end, state insurers did develop the insurance sector, though most

experts believe that these monopolies could have done much, much more.

In the early nineties is, the government went on a reforms binge and started loosing

controls on Indian industry. In 1993 the government appointed the Malhotra committee

headed former RBI governor R.N.Malhotra, to draw up a blue print for insurance sector

reforms. The panel submitted its report a year later, recommending privatization, backed

BABASAB PATIL 11

by stiff entry guidelines and stringent regulations, so as to avoid repeat per

nationalization free for all.

The insurance regulatory and development authority (IRDA) was founded to

regulate the sector and over see the process of privatization. In 2000, the IRDA started

giving out licenses, and a year later, the first of the private players started operation. The

wheel had come full circle.

Under state control, the insurance sector, both life and non-life ,grew steadily.

Still, Indians are not adequately insured and lag behind most countries. Total insurance

penetration (insurance premium as a percentage of gross domestic product) is dismal

when compared to its economic standing. Just 2% of the population has some of life

insurance.

LIFE INSURANCE COMPANIES IN INDIA & THEIR MARKET SHARE (as per march-06):

INDIAN FOREIGN COUNTRY INSURER WEBSITE MARKET

BABASAB PATIL 12

PROMOTER PROMOTER SHARE

Bajaj Auto Allianz AG Germany Bajaj Allianz

Life Insurance

bajajallianz.co.in 7.56

ICICI Prudential USA ICICI

Prudential Life

Insurance

iciciprulife.com 7.35

HDFC Standard Life UK HDFC Standard

Life Insurance

hdfcinsurance.co

m

2.9

SBI Cardif (arm of

BNP paribas)

Canada SBI Life

Insurance

sbilife.co.in 2.3

Aditya Birla

Group

Sun Life Canada Birla Sun Life

Insurance

birlasunlife.com 1.9

TATA American

International

Group

USA Tata-AIG Life

Insurance

tata_aig.com 1.3

Max India New York life USA Max New York

life insurance

Maxnewyorklife.

com

1.2

Dabur India Aviva Plc USA Aviva Life

Insurance

avivaindia.com 1.1

Kotak

Mahindra

finance

Old Mutual

Plc

Australia Kotak Mahindra

Old Mutual

Funds

Omkotakmahind

ra.com

1.1

Vysya Bank ING Group Netherlands INGVysya Life ingvysyalife.com 0.8

BABASAB PATIL 13

Insurance

Reliance Amp Sanmar Australia Reliance life

insurance

Relianceindia.co

m

0.5

Jammu &

Kashmir bank

Met life

insurance

USA Met life Metlifeindia.com 0.4

Sahara India None India Sahara India Sahara India 0.1

Shriram Sanlam S.A Sriram life

insurance

Sriramlife.com 0.0

Government

of India

None India Life insurance corporation

(LIC)

Licindia.com 71.4

Literature Review:

The project report on “A study on customer awareness to enhance market share of

Bajaj Allianz Unit Link Insurance Plan” in Hubli. I through under took the project by the

BABASAB PATIL 14

help of BAJAJ ALLIANZ Life Insurance Ltd. Sales team manager Chandru.

A.Kallanagoudar

Body of the Report:

Primary data was collected by administration questionnaire of 100 customers. The

questionnaire was specially framed to meet the requirement of the survey and the

following details.

Direct contact was made with the respondents through random sample to collect

the needful information with reference to our objective as per to meet the survey

requirement.

Interview technique:

Direct personal interview was conducted throughout project using direct structured

and self-administrative questionnaire.

Conclusion & Recommendation:

Analysis was based on the result of the research conducted and the

recommendations are based on the analysis.

Limitation :

The major limitation of the project was time frame.

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STATEMENT OF THE PROBLEM

“A study on customer awareness to enhance market share of Bajaj Allianz

Unit Linked Insurance Products”.

Management Problem:

In the project the management problem is the ULIP’s is new in the market & the lot of

people are don’t know about the ULIP’s the management wants the improve market share

of ULIP’s.

Advantages of investing in ULIP:

ULIPs have been selling like proverbial `hot cakes' in the recent past and they are likely

to continue to outsell their plain vanilla counterparts going ahead. So what is it that

makes ULIPs so attractive to the individual is, as follows

1.Insurace cover plus savings: ULIP serve the purpose of providing life insurance

combined with savings at market-linked returns. To that extent, ULIPs can be termed as a

two-in-one plan in terms of giving an individual the twin benefits of life insurance plus

BABASAB PATIL 16

savings. This is unlike comparable instruments like a mutual fund for instance, which

does not offer a life cover.

2.Multiple investment options: ULIP offer a lot more variety than traditional life

insurance plans. So there are multiple options at the individual's disposal. . ULIPs

generally come in three broad variants:

Aggressive ULIPs (which can typically invest 80%-100% in equities, balance in

debt)

Balanced ULIPs (can typically invest around 40%-60% in equities)

Conservative ULIPs (can typically invest up to 20% in equities)

Although this is how the ULIP options are generally designed, the exact debt/equity

allocations may vary across insurance companies. Individuals can opt for a variant based

on their risk profile. For example, a 30-Yr old individual looking at buying a life

insurance plan that also helps him build a corpus for retirement can consider investing in

the Balanced or even the Aggressive ULIP. Likewise, a risk-averse individual who is not

comfortable with a high equity allocation can opt for the Conservative ULIP.

3.Flexibility

Mutual Funds also offer hybrid/balanced schemes that allow an individual to select a plan

according to his risk profile. The difference lies in the flexibility that ULIPs afford the

individual. Individuals can switch between the ULIP variants outlined above to capitalize

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on investment opportunities across the equity and debt markets. Some insurance

companies allow a certain number of `free' switches. This is an important feature that

allows the informed individual/investor to benefit from the vagaries of stock/debt

markets. For instance, when stock markets were on the brink of 7,000 points (Sensex),

the informed investor could have shifted his assets from an Aggressive ULIP to a low-

risk Conservative ULIP.

Switching also helps individuals on another front. They can shift from an Aggressive to a

Balanced or a Conservative ULIP as they approach retirement. This is a reflection of the

change in their risk appetite, as they grow older.

4. Works like an SIP: Rupee cost-averaging is another important benefit associated with

ULIPs. With an SIP, individuals invest their monies regularly over time intervals of a

month/quarter and don't have to worry about `timing' the stock markets. As a matter of

fact, even the annual premium in a ULIP works on the rupee cost-averaging principle. An

added benefit with ULIPs is that individuals can also invest a one-time amount in the

ULIP either to benefit from opportunities in the stock markets or if they have an

investible surplus in a particular year that they wish to put aside for the future.

The chart below shows how ULIP can meet multiple needs at different life stages.

Integrated Financial Planning

Starting a job,

Single individual

Recently married,

no kids

Married, with

kids

Your Low protection, Reasonable Higher protection,

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Need high asset creation

and accumulation

protection, still

high on asset

creation

still high on asset

creation but

steadier options,

increase savings

for child

Flexibility Choose low death

benefit, choose

growth/balanced

option for asset

creation

Increase death

benefit, choose

growth/balanced

option for asset

creation

Increase death

benefit, choose

balanced option for

asset creation.

Choose riders for

enhanced

protection. Use

top-ups to increase

your accumulation

Kids going to

school, college

Higher studies for child,

marriage

Children independent, nearing

the golden years

Higher Protection, Lump sum money for Safe accumulation for the golden

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high on asset

creation but

steadier options,

liquidity for

education expenses

education, marriage. Facility to

stop premium for 2-3 yrs for

these extra expenses

yrs.Considerably lower life

insurance as the dependencies

have decreased

Withdrawal from

the account for the

education expenses

of the child

Withdrawal from the account

for higher education/marriage

expenses of the child. Premium

holiday-to stop premium for a

period without lapsing the

policy

Decrease the death benefit-

reduce it to the minimum

possible. Choose the income

investment option. Top-ups form

the accumulation (with reduced

expenses) for the golden yrs cash

accumulation

Because of their flexibility to adjust to different life stage needs, ULIPs fit in very well

with financial planning efforts.

Limitation:

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1. It is prudent to make equity-oriented investments based on an established track record

of at least three years over different market cycles. ULIPs may not fulfill this criterion in

near future.

2. Insurance and savings are two different goals and it is better to address them separately

rather than bundle them into a single product. A combination of a term plan and a mutual

fund could give better results over the long term.

3.The free hand given to ULIPs might prove risky if the timing of exit happens to

coincide with a bearish market phase, because of the inherently high equity component of

these schemes.

4. An initial allocation charge is deducted from investor premiums for selling, marketing

and broker commissions. These charges could be as high as 65 per cent of the first year

premiums. Premium allocation charges are usually very high (5-65 per cent) in the first

couple of years, but taper off later. The high initial charges mainly go towards funding

agent commissions, which could be as high as 40 per cent of the initial premium as per

IRDA regulations.

The charges are higher for a linked plan than a non-linked plan, as the former require lot

more servicing than the latter, such as regular disclosure of investments, switches, re-

direction of premiums, withdrawals, and so on. Insurance companies have the discretion

to structure their expenses structure whereas a mutual fund does not have that luxury. The

BABASAB PATIL 21

expense ratios in their case cannot exceed 2.5 per cent for an equity plan and 2.25 per

cent for a debt plan respectively. The lack of regulation on the expense front works to the

detriment of investors in ULIPs.

5. The front-loading of charges does have an impact on overall returns as investors lose

out on the compounding benefit. Insurance companies explain that charges get evened

out over a long term. Thus investors are forced to stay with the plan for a longer tenure to

even out the effect of initial charges as the shorter the tenure, the lower will be the

investor real returns.

6. In effect, when investor lock in their money in a ULIP, despite the promise of

flexibility and liquidity, investor will stuck with one fund management style. This is all

the more reason to look for an established track record before committing investor hard-

earned money.

7. Investor life cover charges would depend on the accumulation in investor investment

account. As accumulation increases, the amount at risk for the insurance company

decreases. However, with increasing age, the cost per Rs 1,000 sum assured increases,

effectively increasing policy holder overall insurance costs.

8. It would deal with the fact that expenses on ULIPs were on the higher side in the initial

years and therefore; the exit option would hardly prove to be beneficial for the investors.

BABASAB PATIL 22

9. ULIP face tough competition from mutual funds, which are short-term instruments.

Hence, a liquidity option makes ULIPs as attractive but because of the high front-end

charges on policy, investor may not be left with much to withdraw at the end of 3 years.

Scope of the study:

The research was undertaken to gather information from the respondent to know

exactly how many people aware of ULIPs in Hubli city and the study is restricted within

the city.

The reason for confining the scope of the research in Hubli were.

2) One of the fast growing city in Karnataka and represents huge market for scope

with more than 90 lakhs people.

3) Hubli is one of the commercial areas .

4) It is a place where the small and large industries are located .with the more

increase population and there style more people are conscious about the their

lives.

Objectives:

BABASAB PATIL 23

1. To study the awareness level of Bajaj Allianz ULIPs with view to

recommend measure to improve market share.

2. To find vital communication media.

3. To know the factors that influence investors while taking investment

decisions.

4. To find potential market for ULIPs.

BABASAB PATIL 24

1. ORGANISATION PROFILE:

Bajaj Group

A STRONG INDIAN BRAND- HAMARA BAJAJ One of the Largest 2 & 3 wheeler manufacturer in the world .

21 million + vehicles on the roads across the globe

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managing funds of over Rs5200crore

Bajaj Auto finance one of the largest auto finance companies in India Rs5934cr

turnover and profits after tax of 732cr in 2004-05

Bajaj group ,a Rs. 8,000 crore group ,a household name in India with a strong

brand image and brand loyalty.

Bajaj Group is synonymous with quality and customer focus.

Bajaj Auto is a Rs.4,000 crore auto giant.

4th largest in the world.

Has over 15,000 employees.

Allianz Group

Allianz Group is one of the world's leading insurers and financial services

providers

Founded in 1890 in Berlin,

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Allianz is one of the leading global insurance companies headquartered in

Munich, Germany .

Established in 1890 ,more than 110 years of experience in insurance.

Allianz has over 700 subsidiaries and approximately 1,81,000 employees

worldwide.

Allianz global network extends to over 70 countries in:

o Europe .

o South and Northern Americas.

o Africa.

o Middle East.

o Asia Pacific.

World largest insurance company by revenue 520353cr

worldwide 2nd gross written premium 477930cr

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

AUM of Rs9594200cr.

11th largest corporation in the world

50% global business from life insurance close to 60 million lives insured globally.

Allianz’ shares are treated at the 5 leading international stock exchanges:

Frankfurt.

London .

Paris.

BABASAB PATIL 27

Zurich.

New York.

Insurance to almost half of the Fortune 500 companies.

Bajaj Allianz life Insurance

BABASAB PATIL 28

Bajaj Allianz life Insurance Company Limited is a joint venture between Bajaj

Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise,

BABASAB PATIL 29

stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to

conduct General Insurance business (including Health Insurance business) in India.

The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto

holds 74% and the remaining 26% is held by Allianz, AG, Germany.

Key Achievements in FY 2005-06 :

• No.1 Pvt Life Insurer FY 2006-06. Leading by Rs. 78 Cr.

• No.1 Pvt Life Insurer in Retail Business. Leading by Rs. 339 Cr.

• Whopping growth of 216% for the FY 2005-06

• Have sold over 13,00,000 policies to satisfied customers

• Is backed by a network of 550 offices spanning the country

• Accelerated Growth

Fiscal Year No of policies sold in FY GWP in FY

2001-2002 (6mths) 21,376 Rs 7 cr.

2002-2003 1,15,965 Rs 69 cr.

2003-2004 1,86,443 Rs 221 cr.

2004-2005 2,88,189 Rs 1002 cr.

2005-2006 7,81,685 Rs 3134 cr.

Assets under management Rs 3,324 cr.

Shareholder capital base of Rs 500 cr.

BABASAB PATIL 30

Company punch line

Mission:

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As a responsible customer focused market leader, we will strive to understand

the insurance needs of the consumers and translate it into affordable products that deliver

value for money.

Why Bajaj Allianz Life Insurance:

The Bajaj Allianz Difference

Business strategy aligned to clients’ needs and trends in Indian and global

economy / industry.

Internationally experienced core team, majority with local background.

Fast, decentralized decision-making.

Long-term commitment to market and clients.

Shareholder in Bajaj Allianz life insurance company:

Bajaj Auto Limited

Bajaj Auto Limited is the largest manufacturer of two and three –wheelers in India and

also one of the largest manufacturers in the world. Bajaj Auto has been in operation for

over 55 years. As a promoter of Bajaj Allianz General Insurance Company Ltd., Bajaj

Auto has the following to offer.

Vast distribution network.

Knowledge of Indian consumers.

Financial strength and stability to support the insurance business.

CHANNEL PARTNERS

BABASAB PATIL 32

Bancassurance Vantage

UNIT LINKED INSURANCE PLAN OR MARKET LINKED

INSURANCE PLAN (ULIP).

INTRODUCTION TO ULIP

ULIP came into play in the 1960s and became very popular in Western Europe and

Americas. The reason that is attributed to the wide spread popularity of ULIP is because

BABASAB PATIL 33

of the transparency and the flexibility which it offers. As times progressed the plans were

also successfully mapped along with life insurance need to retirement planning. In

today’s times, ULIP provides solutions for insurance planning, financial needs, financial

planning for children’s future and retirement planning. Features of ULIP distinguish

itself through the multiple benefits that it provides to the consumer. The plan is a one-

stop solution providing: Life protection· Investment and Savings· Flexibility- Adjustable

Life Cover- Investment Options· Transparency· Options to take additional cover against-

Death due to accident- Disability- Critical Illness- Surgeries· Liquidity.

ULIP distinguishes itself through the multiple benefits it provides to the policyholders.

These plans are designed with a view to help the customers to utilize the market

opportunities by investing in the share market, capital market and at the same time have

the facility of Death Benefit and Maturity Benefit.

Meaning

It is a plan, which provides Life Insurance, and here policy value at any time varies

according to the value of the underlying asset at that time.

It is a plan that provides the client with the benefit of protection and flexibility.

An ULIP plan works as a one-stop advantage for the policyholder. It gives the

policyholder a wholesome advantage of integrated financial planning.

BABASAB PATIL 34

STRUCTURE OF ULIP: -

ULIP

NAV CONCEPT

It exhibits the value (or the price) that one has for his investment or one will have to pay

for his investment.

As, the investment made by different people are different, the value (or the price) is the

expressed in per unit terms. It helps in knowing the value of Insurance at any point of

time.

BABASAB PATIL 35

CONTRIBUTIONCONTRIBUTION

LESS- CHARGESLESS- CHARGES

LIFE COVERLIFE COVERINVESTMENT

REPRESENTED AS NAV

INVESTMENTREPRESENTED AS

NAV

Technical Calculation of NAV: -

UNIT Value = (Total market Value of all assets invested less expenses related

to Investment management / Total no. of outstanding units)

Factors affecting NAV:

Market Value of investment portfolio, Number of Units, Expenses and Investment

Income.

Ex: If 2,00,000 /- has been accumulated in the equity fund and the no. of units issued is

10,000 /- then the NAV of the equity fund is: -

2,00,000 / 10,000 = Rs 20 / -

As the equity market develop the fund grows from 2,00,000 / - to 220,000/-

Now the NAV = 2,20,000 / 10,000 = Rs 22 / -

If among these 10,000 units the policyholder has 5000 units then the value of investment

as of now is Rs 1,10,000.

Thus a unit linked plan actually tells, what is the value of the fund

.BASIC FEATURES OF ULIP

1. Life protection

2. Investment and savings

3. Flexibility

4. Transparency

5. Added Benefits

BABASAB PATIL 36

a) Death due to accident

b) Any kind of disability

c) Critical illness

d) Surgeries

6. Liquidity

7. Tax Planning

8. Adjustable Life Cover

9. - Investment Options

-

1) LIFE PROTECTION

BABASAB PATIL 37

The graph shows the various needs of the customer at different point of time,

individuals needs differ and his need for life protection fluctuates. ULIP satisfies

the varying needs of the customer providing him with more and more

protection as and when he requires, by allowing the policyholder to increase or

decrease the death benefit.

It is usually multiple of the contribution being paid, which ensure that the

contribution is adequate enough to provide life protection. And is also able to

maintain a sem balance between protection and savings.

BABASAB PATIL 38

2) INVESTMENTS AND SAVINGS

ULIP provides the client with option of investing as per his risk appetite and gets

returns accordingly. These various options available for an individual to make

investment in comparatively high risks instruments and get high returns. Below

shown is a graph illustrating the various investment options for a client.

BABASAB PATIL 39

Risk

Example 1: Here are four types of funds in which a client can invest. In each case

the risk goes on increasing with the type of fund. The client has an option to shift

as the risk and return orientation changes (Switch).

3) FLEXIBILITY

The client has an option to choose the amount of sum assured and the premium

amount he is capable of paying. In case of certain plans of ULIP the client is

allowed to choose the premium.

Eg: Lifetime and Lifetime I the client has a flexibility to decide the life cover

according to his financial needs, independent of premium selected.

Following points enumerate the flexibility feature of ULIP

a) Increase in death benefit.

As life cycle changes of a client he passes through various risks and

responsibilities. He can increase or decrease the death benefit accordingly.

b) Decrease in death benefit.

If the client is unable to pay the same amount of premium he can decrease

the death benefit with certain conditions applying according to the

particular plans.

c) Premium holiday

BABASAB PATIL 40

After paying the premium regularly for 3 years from the starting date of

the policy the client can take a premium holiday if he is unable to pay a

particular premium due. On returning from the premium holiday the client

can pay the previous premiums if he desires or continue from that date.

d) Choice of fund.

There are four kinds of funds available for a client of ULIP. He has an

option to switch between these four funds. He can either choose only one

or invest in all four depending on his risk tolerance.

Plan Plan objective Risk Investment pattern

Maximiser

(Growth)

High growth and

capital appreciation

over a long terms

High Equity and equity

related securities: Max

90%, Debt, money

market and cash: Min

10%

Balancer

(balanced)

Balance of capital

appreciation and

study returns over a

long terms

Average Equity and equity

related securities: Max

40%, Debt, money

market and cash: Min

60%

Preserver Equal balance of

capital appreciation

and study returns

over a long term

Low Debt instrument: Max

50%

Money market and

cash: Min 50%

Protector

(Income)

Study returns over a

long term.

Moderate Debt instrument: Max

100%

Money market and

cash: Max 25%

BABASAB PATIL 41

e) Switch between the funds

The policyholder has a choice two reallocate the premium paid by him on

every premium policy anniversary. He can switch between the above four

funds to avail the advantages of market fluctuations.

f) Top ups

Some times the client may have surplus amount after his expenses. ULIP

allows him to save that amount by investing in the insurance he can avail

the benefit of top up by paying extra premium, which will be invested in

the share market by the insurer company. The client gets expert fund

management. The policyholder is allowed to do as many top ups in the

tenure of plan.

g) Premium redirection

The policyholder is allowed to reallocate the premium paid each time to

different fund structure. Thus whenever the premium is due (As per the

premium payment mode), he can redirect the current premium into

different asset allocations than the previous time. This helps the

policyholder to optimize the funds in accordance to market with out using

the switch option.

e) Assignment option

The policyholder can assign the policy to any of the nominees or any bank in

case he has taken a loan on the title of the policy. Unfortunately if something

happens to the policyholder then the insurer will repay the loan taken by the

client to the extent of premium paid.

BABASAB PATIL 42

4) Transparency

ULIP products are transparent in terms of, the policyholder is aware of where his

contribution is being allocated. The policyholder is aware of the various charges

charged to him.

The Various charges of the ULIP are: -

a) Contribution related Charges- Running expenses of the policy

b) Administrative Charges- Issuance cost, distribution costs etc

c) Fund Management Fee- cost of being and selling the various financial

instruments for various funds.

d) Mortality Charges: cost of providing life protection.

e) Rider charges: cost of other protection charges.

f) Surrender charges: cost to cover initial expenses.

g) Bid offer charges: difference between the offer price of units and the selling

price i.e. bid price of units. It covers the cost of selling the policy.

h) Transaction specific charges: cost of changing funds, toping up the investment

component or withdrawals

Daily NAV: A feature that lets us know on a daily bases, how the money in

insurance plan is growing.

5) ADDED BENEFITS

To get extra protection ULIP provides the policyholder the advantage of rider

attachments.

a. Death due to accident (ADBR)

b. Disability (ABR)

c. Critical Illness (CIBR)

d. Surgeries (MSAR) (Now discontinued)

6) LIQUIDITY

BABASAB PATIL 43

The feature makes ULIP a marketable plan. The policyholder has an option of

withdrawals in case if need arises. ULIP provides easy access to the money as and

when the policyholder may requires. There are two types of withdrawal options.

a) Partial b) complete

The value of withdrawal reduces the death benefit by same amount. This facility

can be avail only after three full premium payment years are completed. The

minimum worth of this units and a maximum where in at least Rs. 10000/- worth

units remain in all the funds put together.

7) TAX PLANNING

This is another feature of ULIP that motives the policyholder to invest in the

insurance plans. They usually invest to avail the tax benefit. Regulation in India

allows tax benefits in the contribution paid under section 88, contribution paid for

health riders critical illness and major surgical is allowed tax benefits under

section 80D, as per the prevailing tax laws.

Maturity benefits are tax free under section 10(10) D, provided life come is at

least 5 times of the annual contribution paid.

Death benefit is tax free under section 10(10) d.

With so many tax benefits available in one instrument ULIP tends to be an

intelligent tax-planning tool.

Working of a ULIP Plan

BABASAB PATIL 44

Life rime regular PremiumLife rime regular Premium

Allocated Premium

Allocated Premium

Part of the Premium towards the policy Expenses

Part of the Premium towards the policy Expenses

Allotment of Units Allotment of Units Insurance Charges

Insurance Charges

This goes to the Protection a/c to provide against the 3D Effect

This goes to the Protection a/c to provide against the 3D Effect

Various Investment Options. Facility of withdrawals and investing back in the Investment

Various Investment Options. Facility of withdrawals and investing back in the Investment

Units that build up the investment value

Units that build up the investment value

For Example

A client put in regular contribution of Rs.20, 000 /-. From this amount a % is deducted as

contribution.

Therefore if the contribution related expense is 40% - Rs.8000/- will be deducted as

contribution charges.

The amount that is now available is Rs.20000-8000=12000/-

Now, if the client who is available is aged 30 years were to take a life cover of 500,000/-

then mortality (1.50/- per thousand at the age of 30) charge of 750 /- will be deducted.

This amount will provide life cover to the policy. The remaining amount of –11250/- will

be invested in any one of them or all of them.

The Investment is shown in terms of units. Thus if client invests in debt fund and the

NAV of the debt fund is Rs. 15/-(market price) then the no. of units that the client will get

is 11,250/15=750. For this investment-fund management fee will be charged and the

charges for maintaining the policy an administrative charge are levied.

Are ULIPs similar to mutual funds?.

In structure, yes; in objective, no. Because of the high first-year charges,

mutual funds are a better option if you have a five-year horizon.

BABASAB PATIL 45

But if you have a horizon of 10 years or more , then ULIPs have an edge.

To explain this further a ULIP has high first –year charges towards acquisition

(including agents commissions).

As a result, they find it difficult to outperform mutual funds in the five years.

But in the long term, ULIP managers have advantages over mutual funds managers.

Since policyholder premium come at regular intervals, investments can be planned

out more evenly.

Mutual fund managers cannot take a similar long term view because they have

bulk investors who can move money in and out of schemes at short notice.

Which is better, unit-linked or ‘Traditional plan’?

The two strong arguments in favor of unit-linked plans are that –the investor

knows exactly what is happening to his money and two ,it allows the investor to

choose the assets into which he wants his funds invested.

A traditional ‘with profits,’ on the other hands, is a black box and a policyholder

has little knowledge of what is happening. An investor in a ULIP knows how much

he is paying towards mortality, management and administration charges.

He also knows where the insurance company has invested the money. The investor

gets exactly the same returns that the fund earns, but he also bears the investment

risk. The transparency makes the product more competitive .So if you are willing to

bare the investment risk in order to generate a higher return on your retirement funds,

ULIPs are for you.

Traditional ‘with profits’ policies too invest in the market and generate the same

BABASAB PATIL 46

Returns prevailing in the marker. But here the insurance company evens out returns

to ensure that policyholders do not lose money in a bad year. In that sense they are

safer. ULIPs also offer flexibility. For instance, a policyholder can ask the insurance

Company to liquidate units in his account to meet the mortality charges if he is unable

to pay any premium installment.

This eats into his savings, but ensures that the policy will continue to cover his

life.

Why do insurers prefer ULIPs?

Insurers love ULIPs for several reasons. Most important of all, insurers can

sell these policies with less capital of their own than what would be required if they

sold traditional policies.

In traditional ‘with profits’ policies, the insurance company bears the

investment risk to the extent of the assured amount .In ULIPs, the policyholder bears

most of the investment risk.

Since ULIPs are devised to mobilize savings, they give insurance companies an

opportunity to get a large chunk of the asset management business, which has been

traditionally dominated by mutual funds.

Are unit-linked insurance plans good?

Most insurers in the year 2004 have started offering at least a few unit-linked

plans . Unit-linked life insurance products are those where the benefits are expressed

BABASAB PATIL 47

in terms of number of units and unit price. They can be viewed as a combination of

insurance and mutual funds.

The number of units that a customer would get would depend on the unit price

when he pays his premium. The daily unit price is based on the market value of the

underlying assets (equities, bonds, government securities, etc) and computed from the

net asset value.

The advantage of unit –linked plans is that they arte simple, clear, and easy to

understand. Being transparent the policyholder gets the entire upside on the

performance of his fund .Besides all the advantages they offer to the customers, unit-

linked plans also lead to an efficient utilization of capital.

Unit –linked products are exempted from tax and they provide life insurance.

Investor welcome these products as they provide capital appreciation even as the

yields on government securities have fallen below 6 percent , which has made the

insurers slash payouts.

According to the IRDA, a company offering unit-linked plans must give the

investor an option to choose among debt, balanced and equity funds. If you opt for a

unit-linked endowment policy, you can choose to invest your premiums in debt,

balanced or equity plans.

If you choose a debt plan, the majority of your premiums will get invested in

debt securities like gilts and bonds. If you choose equity, then a major portion of your

premiums will be invested in the equity market. The plan you choose would depend

on your risk profile and your investment needs.

BABASAB PATIL 48

The ideal time to buy a unit-linked plan is when one can expect long term

growth ahead . This is especially so if one also believes that current market values

(stock valuations ) are relatively low.

So if you are opting for a plan that invests primarily in equity , the buzzing market

could lead to windfall returns. However , should the buzz die down , investors could be

left stung.

If one invests in a unit-linked pension plan early on , say when one is 25, one

can afford to take the risk associated with equities , at least in the plan’s initial stages.

However ,as one approaches retirement the quantum of returns should be subordinated to

capital preservation. At this stage , investing in plan that has an equity tilt may not be a

good idea.

Considering that unit-linked plans are relatively new launches, their short history

does not permit an assessment of how they will perform in different phases of the stock

market. Even if one views insurance as a long term commitment, investments based on

performance over such a short time span may not be appropriate.

Allianz Bajaj launches its first unit linked policy.

Allianz Bajaj Life Insurance Company has launched Unit Gain , the company’s

first unit linked policy. Unit Gain allows customers to combine the benefits of life

insurance with higher investment returns from equity and debt markets.

Unit Gain was launched with a choice of four funds to the customer- equity,

debt, balanced and cash funds. The cash funds comes with the guarantee that the value of

units in the fund will not go down.

BABASAB PATIL 49

Unit Gain is one of the most flexible unit linked plans in the market, and allows the

customer to change the sum assured during the term of the policy to match their changing

life insurance requirements. Also the plan offers a premium holiday feature, where the

policy is kept in-force even when premiums are not paid as long as there are enough units

to cover charges.

The policy provides customers flexibility in paying additional premium through

single premium top-ups, as well as in increasing the level of regular premium in later

years (along with increase in income). In addition, the facility of cash withdrawals allows

the Bajaj Allianz ULIP’S products.

Bajaj Allianz ULIP’S products:

1) Unit Gain Regular Premium:

The Bajaj Allianz unit comes with a host of features to allow you to have the best

of all words –protection and investment with flexibility like never before.

Some of the features of this plan are:

Guaranteed death benefits.

Choice of 6 investment funds with flexible investment management you can change

funds at any time.

Attractive investment alternative to fixed investment securities.

Provision for full/partial withdrawal any time after 3 full years premiums are paid.

Unmatched flexibility –to match tour charging needs.

How does the plan work:

BABASAB PATIL 50

The premiums paid are invested in fund/funds of your choice (depending on the

allocation rate) &unit are allocated depending on the price of units for the fund/funds.

The value of your policy is the value of units that you hold in the fund/funds. The

insurance cover charges are deducted through monthly cancellation of units . The funds

administration charge and fund management charge are priced in the unit value.

Minimum sum assured= 5 times the annual premium.

Maximum sum assured =y times the annual premium where y will be as per the

following table.

Age

Group

0-30 31-35 36-40 41-45 46-55 56-60

Y 125 105 75 55 30 20

Important details of “Bajaj allianz unit gain RP” plan

Minimum age at entry: 0(risk commences at age 7, and ceases after age 70)

Maximum age at entry :60

The minimum age at entry for all additional benefits is 18 years.

The maximum age at entry for all additional benefits is 50 years.

All additional benefits are available till age 65.

2) Unit Gain Single Premium:

BABASAB PATIL 51

The bajaj allianz unit gain SP comes with a host of features to allow you to

have the best of all worlds- protection and investment with flexibility like never

before.

Some of the feature of this plan are

Convenient single premium payment, with option to pay top-ups later.

100% of the single premium/top ups are allocated.

Guaranteed death benefits.

Choice of 6 investment funds with flexible investment management you can with

between funds at any time .

Attractive investment alternative to fixed interest securities.

Provision for full/partial withdrawal any time after the single premium is paid.

Unmatched flexibility – to match your changing needs.

How does the plan works?

100% of the single premium is invested in a fund/funds. The value of your choice

and unit are allocated depending on the price of units for the fund/funds the value of your

policy is the total value of units that you hold in the fund/funds . The insurance cover

changes are deducted through monthly cancellation of units. The funds administration

charge and fund management charge are pried in the unit value.

Minimum sum assured =1.01 times the single premium.

Maximum sum assures =y times the single premium where y will be as per the

following table.

Age

Group

0-30 31-35 36-40 41-45 46-60 61-67

BABASAB PATIL 52

Y 45 40 25 15 5 1.01

Important details of the “Bajaj allianz unit gain SP” plan:-

Minimum age at entry :0(risk commences at age 7, and ceases after age 70)

Maximum age at entry :67

Minimum single premium :Rs .25000.

Minimum top-up :Rs 10000.

3) Unit Gain Plus Regular Plan:

The Bajaj allianz unit gain plus RP comes with a host of features to allow you

to have the best of all words – protection and investment with flexibility like never

before.

Some of the key feature of this plan are

Guaranteed death benefit.

Choice of six investment funds with flexible investment management you can

change funds at any time .

Attractive investment alternative to fixed –interest securities.

Provision for full/partial withdrawals any time after 3 full years premium are paid

Unmatched flexibility –to match changing needs.

BABASAB PATIL 53

How does the plan work?

The premium paid are invested in a fund or funds of your choice (depending

on the allocation rate) and units are allocated depending on the price of the units for

the fund or funds.

The insurance cover and administration charges are deducted through cancellation of

units. The fund management charge is prices in the unit value.

Minimum sum assured = 5 times the annual premium.

Maximum sum assured = y times the annual premium where y will be as per

the following table.

Age

Group

0-30 31-35 36-40 41-45 46-55 56-60

Y 125 90 60 40 20 15

Important details of the “Bajaj Allianz Unit Gain Plus RP” plan

Minimum age at entry :0(Risk commences at age 7 and ceases after age 70)

Maximum age at entry :60

Minimum age at entry for all additional benefits is 18 years.

The maximum age at entry for additional benefits is 50 years.

All additional benefits are available till age 65.

4) Unit Gain Plus Single Premium Plan:

BABASAB PATIL 54

The bajaj allianz unit gain plus Sp comes with a host of feature to allow you to

have the best of all words – protection and investment with flexibility like never before.

Some of the key feature of this plan are

Convenient single premium payment, with option to pay top-ups later.

98% of the single or top-ups are allocated.

Guaranteed death benefit.

Choice of five investment funds with flexible investment management you can

change funds at any time.

Attractive investment alternative to fixed –interest securities.

Unmatched flexibility – to match your changing needs.

Provision for full or partial withdrawal any time after the single premium is paid.

How does the plan works ?

98% of the single premium is invested in a funds or funds of your choice and

units allocated depending on the price of units for the fund or funds . The value of

your policy is the total value of units that you hold in the fund or funds. The insurance

cover and fund administration charges are deducted through cancellation of units. The

funds management charge is priced in the unit value.

Minimum assured =1.01 times the single premium.

Maximum sum assured = y times the single premium where y will be as the

following table.

Age

Group

0-30 31-35 36-40 41-45 46-60 61-69

BABASAB PATIL 55

Y 45 35 20 10 5 1.5

Important details of the “Bajaj Allianz Unit Gain Plus SP” Plan

Minimum age at entry :0(Risk commence at age 7,and ceases after age 70)

Maximum age at entry :69

Minimum single premium :Rs. 25000.

Minimum top-up :Rs .5000.

5)Unit Gain Life Pension plan:

With Bajaj Allianz ,you can take control of your future and ensure a retirement

you can look forward to. This plan has been be signed to take of your retirement and

insurance needs, there by providing you with a comprehensive solution for life time.

There are two packages choose from:

1. Unit gain life pension regular premium.

2. Unit gain life pension single premium.

Defending on the amount of premium you want to pay, you choose sum assure as per the

condition given below:

1. Minimum sum assured =5 times annual/1.01 times single premium.

BABASAB PATIL 56

2. maximum sum assured =y times the annual/single premium where y will be as per

the following table:

Age group 18-30 31-35 36-40 41-45 46-55 55-60 61-65

Y for

regular

premium

125 90 60 40 20 15 10

Y for

regular

premium

45 35 20 10 5 5 1.5

How does the Bajaj Allianz Unit Gain Life Pension Plan Work?

The premium paid are invested in funds of your choice (depending on the

allocation rate) and unit are allocated depending on the price of unit for the fund or funds.

The value of your policy is the total value of units that hold in the fund or funds. The

insurance cover and administration charges are deducted through cancellation of units.

The fund management charge is priced in the unit value.

Important details of the “Bajaj Allianz Unit Gain Life Pension” Plan:

Minimum Maximum

Age of entry 18 65

Deferment period 5 40

Age at vesting 45 70

BABASAB PATIL 57

6) Unit Gain Easy Pension Plan:

With bajaj allianz , you can take control of your future and ensure a retirement you

can look for word to. There are two packages to choose form:

1. Unit gain easy pension regular premium.

2. Unit gain easy pension single premium.

How does the Bajaj Allianz Unit Gain Easy Pension Plan works?

The premium paid are invested in a fund/funds of your choice (depending on the

allocation rate) and units are allocated depending on the price of units for fund/funds. The

value of your policy is the total value of units that you hold in the fund/funds. The

administration are deducted through cancellation of units. The fund management is priced

in the unit’s value.

Important details of “Bajaj Allianz Unit Gain Life Pension” Plan:

Minimum Maximum

Age of entry 18 65

Deferment period 5 40

Age at vesting 45 70

BABASAB PATIL 58

ORGANISATION CHART

2.ORGANISATION CHARTBajaj Allianz Life Insurance Company

BABASAB PATIL 59

Bajaj Allianz Life InsuranceBajaj Allianz Life Insurance

Agency ChannelAgency Channel

BancassuranceBancassurance Group and Alternate

Channel

Group and Alternate Channel

BranchesBranches

SatelliteSatellite

SatelliteSatellite

SatelliteSatellite

Standard Chartered BankStandard Chartered Bank

Syndicate BankSyndicate Bank

Centurion BankCenturion Bank

Cosmos BankCosmos Bank

Jankalyan Sahakari BankJankalyan Sahakari Bank

Jijamata Sahakari Co-op Bank

Jijamata Sahakari Co-op Bank

Group Employee BenefitGroup Employee Benefit

Corporate AgencyCorporate Agency

FranchiseeFranchisee

BrokersBrokers

ORGANISATION CHART OF THE BRANCH

BABASAB PATIL 60

BAJAJ ALLIANZ LIFE INSURANCEBAJAJ ALLIANZ LIFE INSURANCE

CHANNELCHANNEL

INSURANCE CONSULTATIVEINSURANCE CONSULTATIVE

ZONAL SENIOR MANAGERZONAL SENIOR MANAGER

BRANCHBRANCH

SALES TAAM MANAGERSALES TAAM MANAGER

SATELLITE BRANCHSATELLITE BRANCH

BANC ASSURANCEBANC ASSURANCE CORPORATECORPORATE

3. SAMPLING:

Sampling: we are taken random sample

Sample size: 100 consumers

Sample unit: collection of data was made from customer that is respondents

4. RESEARCH DESIGN:

The research design chosen was exploratory in nature as it involved effectives

study to determine the awareness of ULIPs and its products since the population in Hubli

city is very vast. It is difficult to carry out 100% with in a limited time period. Hence

BABASAB PATIL 61

sample survey technique was adopted for the study. Fieldwork was carried out to collect

the necessary data (through schedule questions /personal interview ).

5. DATA COLLECTION METHODS:

a) Primary data :

A structural interview schedule/ questionnaire was used as a tool for

primary data collection from respondent.

b) Secondary data:

Books Journals, magazines and websites.

6.MEASURING TOOLS:

Data code sheet

S/no Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q131 D H A A A A D E A B A -2 C E D A A B B D D C B B D3 D G D A A C C D B A D B D4 C H D A A D C C C B B A5 D E D A A A A C B D A -6 A A D A A A A B B A A -7 C E A A B A B B A8 D C A A B F B A9 D B E B A B A A10 C B B B B A A11 D D D B B A B A12 C B A A A A A C A A13 B B B A B B B C E A

BABASAB PATIL 62

14 D B B B B A A15 D G D A A A C C A B C16 D E B A B A A B A A A17 D E A A B A E B A A B D18 C C E A A A B B A B C19 C C E A A C C A A F B A20 C B B B B A B A A B A21 C B C A A A D B A A A22 B H E A A B C B A A A23 D H E A A B C A B A B C24 D E E A A D C A B A A25 D E B A A A C B D C B D26 D H E A A B C D D B D A27 C E E A A B D A B A A28 A H A A A B C D A A B A29 D E D A A B C A C F B D30 D E E A B D C C D B E31 A G E A A C D B B A A32 D E A B B F B A33 C A B A A C B A A A34 D E E A A A B B A A A35 D C D A A B E C A F A36 D B B B B B A37 D F B B B A B B38 D E D A B A B A B A39 D B B A B D E B A B B B40 D B A B B A B A41 D B B B A D E E B C A42 D F A A B A C A A B C43 D F E B B C F A44 D E B A A A E D C A A B A45 D H C A B C E B C F B C46 A H E A B A A A C B D47 B B D B B D B A48 C G E A A D A B A D A49 B D B A B A A A A B A50 B E B A B C A B A A B A51 C E D A B A A A A D B A52 A E B A B A B B A B B A53 C G D A A B B B A A A54 B D A A B A A B B F A

BABASAB PATIL 63

55 D G B B B A A56 D B A A A A B C B A A57 C C D B B B B C58 D E E A B A A A A C A59 C A A A A A A C C A A60 B D D A B A C C A D A61 D B A B B A A62 D B B B A D A A63 C E B A B A A A D B B64 D A B A A C A C A A A65 B D A B A A B A66 C H E A A A B B C B B A67 A D E A A A C B D A68 C F E A B A A A A B A69 D D B B B A B A70 C A B A B A A A B B A71 D B A A B A C A A A72 C A B A A A B C A A B A73 D B B B B A B B74 D A D B B A B A75 C D B A A B B A A A A76 D E A A A B A B B B77 B B C A A B D C B D A78 C D B A A A D C C D B C79 A H E A A A C E B B A80 C B C A A A B B B A A81 A D E B B A A82 C A B A A B B D A C B B D83 C H C A A A D B C F A84 D A D A A B B A B A B C85 B E E B A A B A86 C C C A B A A C C A87 D D B B A A B B A88 C D B A A A B A B A A89 D F A A A B B D A D C B D90 C H E A A B A B B A A91 B B C B B B A D92 A D B A B A E B D A93 B G A A A D B B A B A94 D A C A B A B A A B A95 D C E B A A A B D

BABASAB PATIL 64

96 C H E A A C B D A D B A97 D E A A B A A A A B D98 D E D A B D B A C B A99 C G D A A A E B A B B D100 B C A A A D C B A D A

BABASAB PATIL 65

1.What is your ratio of saving of the total income? a) More then 60% b) 60% - 50% c) 50% - 25% d) Less then 25%

> 60% 9%60%-50% 13%50%-25% 31%<25% 47%Total 100

BABASAB PATIL 66

Interpretation: From the above graph it is clear that 9% of people saving more than

60%, 13% of people saving less than 60%, 31% of people saving less than 50%, 47% of

people saving less than 25%.

2.Your saving consist of.

a) Post office b) Bank F . D c) Shares d) Land / Building

e) Life insurance f) Gold

g) Mutual fund h) All the above

Post Office 10%Bank FD 20%Shares 8%Land & Building 13%Life Insurance 23%Gold 5%

BABASAB PATIL 67

Mutual Fund 8%All the above 13%Total 100

Interpretation:

From the above graph it is clear that, 10% of people saving in post office, 20% of

people savings in Bank FD, 8% of people savings in shares, 13% of people saving

consist land and building, 23% of people savings in Life Insurance, 5% of people saving

consist in gold,8% of people saving in Mutual Fund, 13% of people saving consist all the

above option.

3. What factor consist while making the policy.

a) Returns b) Safety

BABASAB PATIL 68

c) Liquidity d) Risk cover

e) All the above Returns 20%safety 29%Liquidity 8%Risk cover 19%All the above 24%Total 100

Interpretation:

From the above graph it is clear that 20% of people wants returns, 29% of people

wants safety,8% of people wants liquidity, 19% of people wants risk cover, 24% of

people wants all the above option.

4. Have you invested money in life insurance?

a) Yes b) No

BABASAB PATIL 69

Yes 75%No 25%Total 100

Interpretation:

From the above graph it is clear that 75% respondents invested their money in life

insurance, 25% respondents are not invested.

5. Are you aware of ULIP

a) Yes b) No (If no, skip to q no 11)

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Yes 55%No 45%Total 100

Interpretation:

Above graph 55% of respondents are aware of ULIP,45% of respondents are not aware of

ULIP.

6. In which company you have invested your money?

a) LIC b) Bajaj Allianz

c) ICICI d) Others .

LIC 42%BAJAJ ALLIANZ 17%ICICI 8%OTHERS 9%BLANK 24%

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TOTAL 100%

Interpretation:

Above graph shows 42% respondents invested their money in LIC, 17% in Bajaj

Allianz,8% in ICICI prudential, 9% in others and 24% of respondents are not responded

well.

7. How do you come to know ULIP?

a) Friends b) Agents c) Newspapers/Magazines d) Banks

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e) Others .

Friends 17%Agents 18%Newspaper/magazines 15%Banks 8%Others 7%Blank 35%Total 100%

Interpretation:

The above graph shows that 17% of respondents know the ULIPS through friends,18%

of respondents through Agents,15% of respondents through News paper and Magazines,

8% of respondents know through banks, 7% of respondents know through others and

35% of respondents are not respondents well.

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8. Which plan you have taken?

a) Endowment b) Money Back

c) Term Plan d) ULIP

e) All the above Endowment 17%Money Back 29%Term Plan 16%ULIP 8%All the above 4%BLANK 27%Total 100%

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Interpretation:

The above graph shows that 17% of respondents have taken Endowment

policy,29% of respondents have taken money back policy,16% of respondents have taken

term plan,8% of respondents have taken ULIP,4% of respondents have taken others, 27%

of respondents not taken.

9. Why you have chosen ULIP?

a) Higher Returns b) Liquidity c) Life cover d) All the above

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Higher returns 4%Life cover 1%Liquidity 2%All the above 2%Blank 91%Total 100%

Interpretation:

The above graph shows that 4% respondents wants Higher returns,1%

liquidity, 2% life cover, 2% all the above and 91% of respondents are not responded well.

10. What is the premium you are paying per annum?

a) 10000 b) 10000-25000

c) 25000-50000 d) 50000-100000

A 38%B 17%

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C 11%D 3%BLANK 31%

Interpretation:

The above graph shows that the 38% of respondents paying premium per annum less than

10,000, 17% respondents paying per annum between 10,000- 25,000, 11% respondents

paying per annum between 25,000-50,000, 3% respondents paying per annum between

50,000-100,000, blank is 31%.

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1. What will influence your Financial Planning?

a) Discussion with Family Member

b) Tax Consultant/ C. A

c) Insurance consultant /Agents

d) Finance Magazines.

e) Web site of insurance or Finance company.

f) Any other Specify .

Discussion with FM 47%Tax consultant/CA 22%IC /Agents 7%Finance Magazine 14%Websites 1%Others 9%Total 100%

Interpretation:

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The above graph factors influencing financial planning 47% influencing discussion

with family members, 22% tax consultant/CA, 7% Insurance Consultant/ Agents,14%

through finance magazines, 1% through web sites of insurance/ Finance

Company,9%through others.

12.In future are you interested investing money on ULIP?

a) Yes b) No

A 52%B 48%

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Interpretation:

The above graph 52% respondents are interested investing money on ULIPs in future,

48% respondents are not interested to invest money in ULIPs.

13. If no why?

a) No Interest.

b) Lack of Advertisement.

c) Busy schedule. d)Others .

A 23%B 6%C 8%D 12%BLANK 51%

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Interpretation: The above graph 23% of respondents are no interested, 6% lack of advertisement, 8%

busy schedule, 12% of respondent says others and 51% of respondents are not responded

well.

Findings

Through all this survey and analyzing what we found is that

In the survey it was found that 47% of the respondents are saving less

than 25% income this indicates that nearly half of respondent in hubli

city are coming under middle class.

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As our research we found that 55% of people are aware of ULIP’s and

45% of respondent are not aware of ULIP’s so company has to give

more advertisement about the ULIP’s .

Through Friends 17% of people are come to know about the

ULIP’s ,through Agents 18%, 15% through Newspaper / Magazine , 8%

through Banks, Others 7% of respondent are come to know 35% of

people are not aware of ULIP’s so compare to all agents are playing

important role & company has to increase more number of agents.

52% of respondent are interested to invest money in ULIP’s and 48% of

respondent are not interested to invest money in ULIP’s so 52% is a

potential customer so company can utilize that opportunity.

42% of respondent are invested their money in LIC, 17% in Bajaj

Allianz, 8% in ICICI Prudential , 9% in others and 24% of people not at

invested.

23% of respondent are not interested to invest their money in ULIPs ,

6% lack of advertisement, 8% busy schedule,12% of respondents said

others and blank 51%.

LIMITATIONS

The limitation of the project was that the study and the survey were conducted

in Hubli city only, the analysis and recommendations may not be fully

applicable to other cities.

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The time was not enough to study the vast and growing Life insurance sector in

Hubli city

Conclusion :

From the over all project and market survey it is clear that Bajaj Allianz Life Insurance

Co .Ltd is doing well but most of the people are not aware of ULIP’s .

But in the present threading competition they should do more then the present efforts in

the following fields.

1. Advertising campaign.

2. Trade promotion activity.

Recommendations

Most of the respondents are not aware of Unit Linked Insurance Plan so

company has to give more advertisement about the ULIP’s.

45% of respondents are not aware, which should be increased

by different medias like TV, Magazines, & News Paper.

The company has to provide proper training or marketing skills to

improve the marketability of products.

Complete information should be provided regularly to the advisor as well as to the

investor.

Bajaj Allianz Co should come out with more and more innovative schemes to

meet the requirement of every investor

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Company has to conduct meeting of their agents periodically to access the results

and progress of the agents efforts.

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QUESTIONNAIRE

Dear Sir / Madam,

1.What is your ratio of saving of the total income? a) More then 60% b) 60% - 50% c) 50% - 25% d) Less then 25%

2.Your saving consist of.

a) Post office b) Bank F . D c) Shares d) Land / Building

e) Life insurance f) Gold

g) Mutual fund h)All the above

3. What factor consist while making the policy.

a) Returns b) Safety

c) Liquidity d) Risk cover

e) All the above

4. Have you invested money in life insurance?

a) Yes b) No

5. Are you aware of ULIP

a) Yes b) No If no, skip goto Q no 11)

6. In which company you have invested your money?

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a) LIC b) Bajaj Allianz [

c) ICICI d) Others .

7. How do you come to know ULIP?

a) Friends b) Agents c) Newspapers/Magazines d) Banks

e) Others .

8. Which plan you have taken?

a) Endowment b) Money Back

c) Term Plan d) ULIP

e) Any others, Specify .

9. Why you have chosen ULIP?

a) Higher Returns b) Liquidity c) Life cover d)All the above

10. What is the premium you are paying per annum?

a) 10000 b) 10000-25000

c) 25000-50000 d) 50000-100000

11. What will influence your Financial Planning?

a) Discussion with Family Member

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b) Tax Consultant/ C. A

c) Insurance consultant /Agents

d) Finance Magazines.

e) Web site of insurance or Finance company.

f) Any other Specify .

12.In future are you interested investing money on ULIP?

a) Yes b) No

13. If no why?

a) No Interest.

b) Lack of Advertisement.

c) Busy schedule.

d) Others .

Please provide the below mentioned information:

Name : .

Address : .

.

Contact No : .

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Age : .

Gender : .

Income : .

Occupation : .

THANK YOU

BIBLIOGRAPHY

Marketing Research : Hawkins & Tull.

Websites : www.google.com

www.bajajallianz.co.in

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Materials : Journals & Magazines

Newspaper : Economic Times. Business Line.

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