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INTRODUCTION TO INSURANCE
1.1 INSURANCE:
Insurance is not necessarily an investment from which one expects to get ones
money back nor is it gambling. A gambler takes risk, while insurance offers protection
against risk that already exists. Insurance is a way to share risk with others.
Insurance is a cover used for protecting oneself from the risk of a financial loss. It is
important to understand that risk is a part of any persons life and that it increases as a person
increases in age, responsibility and wealth. Insurance is risk coverage against financial lossesand should not be taken as an investment instrument.
Insurance is a contract between two parties - the insurer and the insured. The
insurer is the insurance company who will provide the cover to the insured against any
financial losses. The insured may be an individual person or a group of people like an
employer, members of a society, etc.
A policy is the contract between the insurer and the insured, which states the risks
covered, the exclusions, if any, and the benefits reimbursed on the happening of an event like
death, illness etc. The policy is paid through what is called a premium, which is a set amount
that must be paid by the insured on a monthly, semi-annual or annual basis. On the happening
of an event like death, disability, fire, etc, for which the insured is covered, the benefit
amount stated in the policy contract can be claimed by the insured.
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Insurance is mainly of two types: Life insurance and General insurance.
INSURANCE
LIFE INSURANCE GENERAL INSURANCE
TERM MOTOR
WHOLE LIFE MARRINE
ENDOWMENT FIRE
PENSION HEALTH
LIFE INSURANCE: Under this type of insurance, the corporation guarantees to pay a
certain sum of money to the policyholder on reaching a certain age or on his death, whichever
is earlier. Life insurance has an element of both of protection and investment.
GENERAL INSURANCE: It includes all other types of insurance except life insurance as
fire insurance, marine insurance, accident insurance, burglary, fidelity, third party, workmen
compensation, consequential loss etc. Under this type of insurance, the insurer undertakes to
indemnify the loss suffered by insured on happening of a certain event inconsideration for a
fixed premium.
LIFE INSURANCE: GENERAL INSURANCE:
Risk cover for financial loss in death, Risk cover for loss due to variety of
disease, disability and destitution. Contract o f indemnity.
Product aims mainly at person/family. Product aims at both institutions
individuals.
Long- term contract. Short-term contract.
Other benefits as Riders. Combination of various policies possible.
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1.2 HISTORY OF LIFE INSURANCE
Life Insurance started in 1583 in England. It started in 1870 in India. Government exercised control over the Insurance sector by passing Insurance Act in
1912.
It was amended in 1938 therefore, the Act is known as Insurance Act, 1938. In 1956, Life Insurance business nationalized. In 1999, the Insurance sector was opened for private players. IRDA was formed in place of controller of Insurance by passing an Act i.e. IRDA
Act.
Insurance is contribution by many to share lose too few. Insurance is an important tool in reducing social security cost.
Insurance also plays an important role in the economic development.
Principles of Insurance
1. Utmost good faith.2. Insurable interest.3. Principle of indemnity.
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1.3 LIFE INSURANCE COMPANIES IN INDIA
Following is the list of life insurance companies operating in India:
1. Life Insurance Corporation of India2. Bharti AXA Life Insurance Company Ltd3. Aviva Life Insurance Company India Limited4. Bajaj Allianz Life Insurance Company Limited5. Birla Sun-Life Insurance Company Limited6. HDFC Standard Life Insurance Co. Limited7. ICICI Prudential Life Insurance Co. Limited8. ING Vysya Life Insurance Company Limited9. IDBI Fortis Life Insurance Company Ltd.
10. Max New York Life Insurance Co. Limited11. MetLife Insurance Company Limited12. Kotak Mahindra old mutual Life Insurance13. Reliance Life Insurance Company Limited.14. SBI Life Insurance Company Limited15. Sahara India Life Insurance Co, Ltd.16. Shriram Life Insurance Co, Ltd.17. TATA AIG Life Insurance Company Limited18. AMP Sanmar Assurance Company Limited19. Dabur CGU Life Insurance Co. Pvt. Limited20. Future General India Life Insurance Company Limite
http://www.avivaindia.com/http://www.bajajallianzlife.co.in/http://www.reliancelife.com/http://www.reliancelife.com/http://www.reliancelife.com/http://www.saharalife.com/http://www.shriramlife.com/http://www.shriramlife.com/http://www.saharalife.com/http://www.reliancelife.com/http://www.bajajallianzlife.co.in/http://www.avivaindia.com/ -
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1.4 OVERALL INSURANCE BUSINESS PROCESS
Product
Development
Sales &
Marketing
Product
Positioning
Advertising
Field and Other
Channel SalesCustomers Underwritin
IRDA Approval Competition
Policy Issuance
Policy Servicing/ClaimsClaims Experience
Actuarial Evaluation Market Research
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2.1 BAJAJ ALLIANZ LIFE INSURANCE CO. LTD.
Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Bajaj Auto Ltd. &
Allianz AG of Germany. Both enjoy a reputation of expertise, stability & strength.
Incorporated on 19 Sept. 2000 Bajaj Allianz Life Insurance Co. Ltd. received the Insurance
Regulatory & Development Authority (IRDA) certificate of registration (R3) on 2 May 2001
to conduct life insurance business (including health insurance business) in India. The
company has an authorized & paid-up capital of Rs. 110 Cores.
Bajaj Allianz is poised for an accelerated growth in the market and has already
become the fastest growing private life insurance company in India. Bajaj Allianz has also
forged strong Banc assurance & continues to build on new tie-ups for fast track growth &
deep market penetration. Bajaj Allianz Life Insurance Co. boasts of a nationwide presence
with 876 offices and over 4 million satisfied customers. India offers convenient premium
payment and receipt options the payments can be direct ,through cheques, demand drafts or
directly from your accounts or through credit cards the premium can also be paid on online
the insurance policy holders who also have on account with standard chartered bank can and
the direct debit mandate facility.
Its core business and focus is insurance. With 102.6 billion of revenue during 2007,
Allianz is the largest international insurance and financial services organization in the world.
Allianz is also the principal sponsor of the Swiss Open tennis tournament and owner of
Gornik Zabrze great football team.
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2.2 HISTORY OF ALLIANZ
Allianz AG was founded in Berlin in 1890 and shifted its headquarters to Munich in
1949. The first step to become an international company started with the opening of a branch
office in London in the late 19th century. After World War II, global business activities were
gradually resumed. Allianz opened an office in Paris in the late 1950s, and a management
office for Italy in the 1960s. These expansions were followed in the 1970s by the
establishment of business in Great Britain, the Netherlands, Spain, Brazil and the United
States. In 1986, Allianz acquired Cornhill Insurance PLC, London, and the purchase of a
stake in Riunione Adriatica di Sicurit (RAS), Milan, strengthened its presence in Western
and Southern Europe in the 1980s. Recently, in February 8, 2006, RAS Shareholders
approved the mergers with Allianz. In 1990, Allianz started an expansion into eight Eastern
European countries with establishing a presence in Hungary. In the same decade, Allianz also
acquired Firemans Fund, an insurer in the United States, which was followed by the
purchase ofAssurances Generales de France (AGF), Paris. These acquisitions were followed
by the expansion into Asia with several joint ventures and acquisitions in China and South
Korea. Around this time Allianz expanded its asset management business as well by
purchasing for example asset management companies in California.
In 2001, Allianz acquired Dresdner Bank, a large German bank. Allianz Group and
Dresdner Bank combined their asset management activities by forming Allianz Dresdner
Asset Management. In 2002 Michael Diekmann succeeded Henning Schulte-Noelle as CEO
of Allianz AG. The Allianz Group was reincorporated under a European Company Statute
and, as a result of the cross-border merger with RAS, Allianz converted into a European
Company (SE - Societas Europaea) in October 13, 2006.
Allianz is now present in more than 70 countries with over 177,000 employees. At the
top of the international group is the holding company, Allianz SE, with its head office in
Munich. Allianz Group provides its more than 60 million customers worldwide with a
comprehensive range of services.
http://en.wikipedia.org/wiki/Berlinhttp://en.wikipedia.org/wiki/1890http://en.wikipedia.org/wiki/Munichhttp://en.wikipedia.org/wiki/1949http://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Parishttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Great_Britainhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/1986http://en.wikipedia.org/w/index.php?title=Cornhill_Insurance&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Riunione_Adriatica_di_Sicurit%C3%A0&action=edit&redlink=1http://en.wikipedia.org/wiki/Milanhttp://en.wikipedia.org/wiki/February_8http://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/Hungaryhttp://en.wikipedia.org/wiki/Fireman%E2%80%99s_Fundhttp://en.wikipedia.org/wiki/Fireman%E2%80%99s_Fundhttp://en.wikipedia.org/wiki/Assurances_Generales_de_Francehttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Joint_ventureshttp://en.wikipedia.org/wiki/Acquisitionshttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Asset_managementhttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Dresdner_Bankhttp://en.wikipedia.org/w/index.php?title=Allianz_Dresdner_Asset_Management&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Allianz_Dresdner_Asset_Management&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Michael_Diekmann&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Henning_Schulte-Noelle&action=edit&redlink=1http://en.wikipedia.org/wiki/European_Companyhttp://en.wikipedia.org/wiki/European_Companyhttp://en.wikipedia.org/wiki/October_13http://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/October_13http://en.wikipedia.org/wiki/European_Companyhttp://en.wikipedia.org/wiki/European_Companyhttp://en.wikipedia.org/w/index.php?title=Henning_Schulte-Noelle&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Michael_Diekmann&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Allianz_Dresdner_Asset_Management&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Allianz_Dresdner_Asset_Management&action=edit&redlink=1http://en.wikipedia.org/wiki/Dresdner_Bankhttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Asset_managementhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Acquisitionshttp://en.wikipedia.org/wiki/Joint_ventureshttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Assurances_Generales_de_Francehttp://en.wikipedia.org/wiki/Fireman%E2%80%99s_Fundhttp://en.wikipedia.org/wiki/Hungaryhttp://en.wikipedia.org/wiki/2006http://en.wikipedia.org/wiki/February_8http://en.wikipedia.org/wiki/Milanhttp://en.wikipedia.org/w/index.php?title=Riunione_Adriatica_di_Sicurit%C3%A0&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Cornhill_Insurance&action=edit&redlink=1http://en.wikipedia.org/wiki/1986http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Great_Britainhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Parishttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/1949http://en.wikipedia.org/wiki/Munichhttp://en.wikipedia.org/wiki/1890http://en.wikipedia.org/wiki/Berlin -
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KEY FACTS OF ALLIANZ SE:
Worlds Largest Insurance Co. by revenue Rs. 520353 Cr (Euro 96.9 billion). Worldwide by Gross Written PremiumsRs. 4 77930 Cr (euro 89 billion). Third largest Assets under Management (AUM) & largest amongst Insurance cos.
AUM of Rs 9594200 Cr (Euro 1078 billion).
11th largest corporation in the world. 50% of global business from Life Insurance closes to 0 million lives insured globally. Established in 1890,110 years of Insurance expertise. More than 70 counties, 177,000 employees worldwide. Insurance to almost half of the Fortune 500 cos.
GROWTH
Over 2 million (20,79,217) policies in this year-highest amongst all private sectorplayers and taking the number 1 position.
Have sold over 3.4 million policies (34, 72,875) issued till date. Largest distribution network to reach the customers across the country with 213000
agents, 900 offices in 840 towns, 200 corporate agents & Bancassurance partners.
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2.3 VISION
To be the best insurance company
In India to buy from,
Work for & invest in
Business focus
To position themselves as a leading corporate and rater insurance company catering to the
needs of their customers their guiding principles are customers service and clientsatisfaction. All their efforts are directed towards understanding the culture social
environment and individual insurance requirements or their customers so that they can cater
to their valid needs.
2.4 VALUES
Customer delights the guiding principle. Ensuring world class solutions and services. Offering customized products. Transparent benefits.
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2.5 Organization chart
Kmesh Goyal(CEO)
Sanjay kumar
( Zonal manager)
Ashwanisharma(additional
manager)
Anshupuri(divisionalmanager)
SalesDepartment
Mr.Divakarsingla
(SBM)
Mr,parveenkumarsharma
(BM)
Mr. kunaalmalik
(BDM)
Mr.Amandeepsingh(SM)
Agents
OpreationalDepartment
Mr.Sandeepkumar(opreational
manager)
Mr.RajvirSingh(CSE) Miss.Amandeep kaur(RE)
Mr.Bhagwantsingh(runner)
Mr.Vimalkumar
(accountant)
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Accelerated Growth:Fiscal Year No .Of policies sold in FY New business in FY
2001-2002 21,376 Rs. 7 cr .
2002-2003 1, 15,965 Rs. 69 cr .
2003-2004 1, 86,443 Rs. 180 cr.
2004-2005 2, 88,189 Rs. 857 cr.
2006-2007 7, 81,685 Rs. 2717 cr.
2006-2007 20, 79,217 Rs. 4270 cr.
Assets under management Rs. 5500 cr.
Shareholder capital base of Rs. 700 cr.
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2.6 Channels of Bajaj Allianz
CHANNELS OF BAJAJ ALLIANZ
A enc Channel Banc assurance Grou & Alternate Channel
Satellites (643)
Standard Chartered
Bank
Em lo ee Benefit
S ndicate BankCorporate Agents
GE MoneyFranchisees
Over 2,00,000 Strong tied
Agency Force & Growing
rapidly every day
Direct Marketin
Brokers
Urban Co-Op Banks
Dist. Co-Op Bank
Branches
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2.7 Bajaj Allianz has tied up with these banks:-
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2.8 GROWING REACH THROUGH TIE-UPS
Bancassurance Pioneered the phenomenon in India-170 Bancassurance partners. One of our core focus areas-tie ups with large national & private sector banks:
Standard Chartered Bank. Syndicate Bank. GE money. Tie-up with urban co-op banks, dist. Co-op bank and regional rural banks.
Expanding reach also through tie-ups with large regional banks. Exclusive life insurance products-MRTA & credit shield. Products customized to suit specific needs of banks.
Alternate channels:
The strategic alliances group at Bajaj Allianz focus on Group Insurance and
Corporate Agency network:
Corporate Agents, Brokers and Franchisees:
A constantly growing nationwide network of Corporate Agents, Brokers andFranchisees.
A decentralized, dedicated team of professionals to recruit, develop and supportCorporate Agents, Brokers and Franchisees.
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Group Business:
A growing product range to meet generic and specific needs of various groups. Someof them are Group Term Life, Group Gratuity and Group Super annuation, Group
MRTA, GTL in lieu of EDLI, among many others.
A dedicated team to ensure nothing but the best in service delivery.
Online Selling and Renewals:
Unit Gain plus SP and unit Gain Easy Pension.Financial services Consultants:
A set of expert financial advisors to address comprehensive financial planning needsof high net worth clients.
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2.9 Bajaj group of companies:
Bajaj group of companies
Bajaj Auto Ltd. Mukand International Ltd. Mukand Ltd.
Mukand Engineers Ltd.
Bajaj Hindustan Ltd.
Bajaj Consumer Care Ltd.
Hercules Hoists Ltd.
Hind Lamps Ltd.
Bajaj Ventures Ltd.
Baroda Industries Pvt Ltd.
Bajaj Allianz General
Insurance Company Ltd.
Bajaj Holdings & Investment Ltd.
P T Bajaj Auto Indonesia (PTBAI)
Bajaj Electricals Ltd.
Bachhraj Factories Pvt. Ltd.
Bajaj Auto Finance Ltd.
Jamnalal Sons Pvt. Ltd.
Jeevan Ltd.
The Hindustan Housing Co Ltd.
Hind Musafir Agency Pvt Ltd.
Bombay Forgings Ltd.
Bajaj Finserv Ltd.
Bajaj Allianz Financial Distributors Ltd.
Bajaj Auto International Holdings BV.
Mukand Global Finance Ltd.
Maharashtra Scooters Ltd.
Bajaj Auto Holdings Ltd.
Bajaj Sevashram Pvt Ltd.
Bachhraj & Company Pvt. Ltd.
Bajaj International.
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2.10 Bajaj Team:
Bajaj Team
Rahul Bajaj
Madhur Bajaj
Rajiv Bajaj
Sanjiv Bajaj
Eric Vas
Abraham Joseph
Pradeep Shrivastava
S Sridhar
R C Maheshwari
Rakesh Sharma
C P Tripathi
N H Hingorani
Kevin P D'sa
V S Raghavan
S RavikumarK Srinivas
Ranjit Gupta
J. Sridhar
Chairman
Vice Chairman
Managing Director
Executive Director
President (New Projects)
President (Research & Development)
President (Engineering)
CEO (2WH)
CEO (Commercial Vehicles)
CEO (International Business)
Vice President (Corporate)
Vice President (Commercial)
Vice President (Finance)
CEO (Operations, BHIL)
Vice President (Business Development)Vice President (Human Resources)
President (Insurance, BFSL)
Company Secretary
2.11 Competitors of Bajaj Allianz:
HDFC STANDARD LIFE INSURANCE CO. LTD. ICICI PRUDENTIAL LIFE INSURANCE CO. LTD. BIRLA SUN LIFE INSURANCE CO. LTD. ING VYSYA LIFE INSURANCE CO. PVT. LTD. MET LIFE INDIA INSURANCE CO. PVT. LTD. KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LTD.
http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp##http://www.bajajauto.com/about-bajaj-team.asp## -
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2.11 SWOT ANALYSIS OF BAJAJ ALLIANZ
SSTRENGTH
Brand name Product portfolio Customer services
WWEAKNESS
Lack of management Communication gap
OOPPORTUNITY
Globally expanding business Promoting rural career agents & business. Making environment more conducive
TTHREAT
.Increased competition Increasing/ decreasing premium rates by competitors. Investment in FDI's.
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2.13 Financial analysis:
Financial analysis refers to an assessment of the viability, stability and profitability of a
business, sub-business or project. It the process of identifying the financial strength &
weakness of the firm by establishing relationship between the items of Balance Sheet &
Profit & Loss Account. The purpose of Financial Analysis is to diagnose the information
contained in financial statements so as to judge the profitability & financial soundness of
the firm.
Ratio analysis:
This is the study and interpretation of the relationships between various financial variables,
by investors or lenders. Ratio Analysis is a technique of analysis & interpretation of
financial statements. A ratio in simple sense is defined as the indicated quotient of two
mathematical expressions and as the relationship between two or more things. Ratio
Analysis is the process of establishing and interpreting various ratios [quantitative
relationship between figures and group of figures]. In financial analysis is used as a bench
mark for evaluating the financial position of firm.
YEAR
RATIOS:-
2008 2007 2006
Liquidity ratios
Current Ratio 19.10 20.40 25.87
Debt/Equity 11.11 10.58 10.24
Interest Cover 1.35 1.30 1.30
Profitability ratios
OPM 92.65 92.03 88.23
GPM 92.48 91.78 87.87
NPM 17.82 17.82 16.52
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Analysis and interpretation of ratios
Liquidity ratios:-
o Current ratio:-The current ratio is the ratio of current assets to current liabilities.
Current Assets
Current Ratio = --------------------------
Current Liabilities
Interpretation:-As compare of 2006 or 2007 current ratio is declining in
2008.Due to current liabilities is increasing.
o Debt to equity ratio:-The debt to equity ratio is total debt divided by total equity.Total debt
= --------------------------
Total equity
Debt ratios depend on the classification of long term leases and on the classification
of some times as long term debt or equity.
Interpretation:-As compare of 2007, 2006 companys debt equity ratios is increasing
because of company has taken debt from outside.
o Interest coverage ratio:-It indicates the how well the firms earnings can cover theinterest payments on its debt.
Total debt
= --------------------------
Total equity
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Interpretation:-As you can see the debt ratio has been increasing, so automatically
interest coverage ratio also increasing because we have to pay interest to debenture
holder which we lead to increasing in interest in interest coverage ratio.
Profitability ratio:-
o Operating profit margin:-It show how much cost company is bearing against netsale of goods.
Operating profit
OPM =-----------------------------------------------------------* 100
Net Sales
Interpretation:-As compare to 2007, 2006 it is increasing. Due to this operating
profit has been increased.
o Gross profit margin:- The GPM is measure of the gross profit on sales.Salecost of goods soldGPM =---------------------------------------* 100
Net Sales
Interpretation: GPM is increasing as compare to 2007, 2006. Due to the sale
increased.
o Net profit margin:Net profit
NPM = ----------------------------* 100
Net Sales
Interpretation: There is slight increase in the Net profit in the financial year 2007 as
compared to FY 2006. The Net profit remains the same for the
financial year 2007-08.
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Introduction to the topic:
Products and services
Life insurance products are usually referred to plans of insurance. These plans have two
basic elements. One is Death cover providing for the benefit being paid on the death of the
insured person within a specified period. The other is the Survival benefit providing for the
benefit being paid on survival of a specified period. Plans of insurance that provide only
death cover are called Term Assurance plans. Those that provide only survival benefits are
called Pure Endowment plans.
Individual plans Group life plans
INDIVIDUAL PLANS
In our constant endeavor to secure a bright and happy future for u and your family, we offer a
range of insurance products that is just perfect for your investment needs.
Unit Linked Insurance Plans Traditional Insurance Plans Pension Plans Terms Plans
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TRADITIONAL INSURANCE PLANS
1.
INVEST GAIN: An Endowment Plan that helps you save tax and earn more interest.
PRODUCT FEATURE: Limited premium payment.
PRODUCT TYPE: This is a participating endowment plan (with limited premiumpayment term option with) minimum guaranteed benefits at maturity or death,
whichever is earlier.
ELIGIBILITY & LIMITS:
CONDITIONS INVEST GAIN ECONOMY INVEST GAIN GOLD,
DIAMOND & PLATINUM
Min. age at entry 0 18
Max. age at entry 65 50
Max. age at maturity 70 70
Min. Sum Assured 50,000
Max. Sum Assured No Limit
Min. Premium Rs. 5,000 p.a., Rs. 3,000 half yearly, Rs. 3,00quarterly, Rs.700
monthly
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MATURITY BENEFIT: The policyholder will receive the Sum Assured plusdeclared compounded reversionary bonus plus a possible terminal bonus as a
lump sum.
DEATH BENEFIT:
Benefits payable
in case of death
Invest Gain
Economy
Invest Gain
Gold
Invest Gain
Diamond
Invest Gain
Platinum
Sum Assured +
Accrued bonus
Double S.A. +
Accrued bonus
Triple S.A. +
Accrued bonus
Quadruple S.A.
+ Bonus
ADDITIONAL BENEFITS (Riders):o Family Income Benefit (FIB)o
Comprehensive Accident Protection (CAP)
o Critical Illness Benefit (CI)o Hospital Cash Benefit (HC)
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2. CHILD GAIN: Because your child has miles to go and you have promises to
keep.
PRODUCT FEATURE: Both lives coverChild and the proposer (Mother/ Father).
PRODUCT TYPE: Right from providing for your childs education to securing abright future, this plan is tailor made to suit your childs needs.
Funds for critical stages in your childs life like
Graduation Post Graduation Marriage. Start a business
Child Gain
Child Gain 21 Child Gain 24 Child Gain 21+
ChildGain24+
STANDARD AGE PROOF:o D.O.B. + MLQ (In case of 0-5 years)o D.O.B. + MLQ + School going certificate (latest) + Signature of child. (In
case of 5-18 years)
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ELIGIBILITY & LIMITS:Eligibility Conditions 21, 21 + Plans 24, 24 + Plans
Min. age of policyholder 20 20
Max. age of policyholder 50 50
Min. age of child 0 0
Max. age of child 13 13
Max age of child at maturity 21 24
Min. Sum Assured Rs.100000 Rs.100000
Max. Sum Assured Rs.50,00,000 Rs.50,00,000
Min. premium Rs.5,000 yearly, Rs.2,500 half yearly, Rs.2,000 quarterly,
Rs.700 monthly.
DEATH BENEFIT:Age Payout
Below 7 years Refund of premium without interest.
7 to 18 years Sum Assured + Bonus.
Above 18 & below 24 years Payout in lump sum + Bonus.
In case of proposers death
21+, 24+ plans 21, 24 plans
Sum Assured + Riders (at the time of mishappening) Riders + Monthly 1% of S. A.
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ADDITIONAL BENEFITS (Riders):o Family Income Benefit (FIB)o Option to purchase insurance at maturityo Waiver of premium
3. CASH GAIN: A plan that adjusts to your lifes needs.
PRODUCT FEATURE: Money Back Plan
PRODUCT TYPE: This is a regular premium payment participating money backplan with minimum guaranteed benefits at survival on certain year during the policy
term (including maturity) or on death whichever is earlier.
ELIGIBILITY & LIMITS:
Term
Cash Gain Economy Cash Gain
Gold15 years 20 years 25 years 30 years
Min. age at entry 15 14 13 12 18
Max. age at entry 55 50 45 40 50
Max. age at maturity 70 70 70 70 70
Min. Sum Assured 50,000 50,000 50,000 50,000 50,000
Max. Sum Assured No Limit No Limit No Limit No Limit No Limit
Min. Premium Rs.5000 yearly, Rs.5000 h.y., Rs.5000 quarterly, Rs.700 monthly
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MATURITY BENEFIT:
1st
Cash benefit 2nd
Cash
benefit
3rd
Cash benefit 4th
Cash benefit On Maturity
10% of Sum
Assured
15% of Sum
Assured
25% of Sum
Assured
25% of Sum
Assured
50% of S.A.+
Bonus
DEATH BENEFIT:
Benefits payable
in case of death
Cash Gain
Economy
Cash Gain Gold Cash Gain
Diamond
Cash Gain
Platinum
Sum Assured +
Accrued bonus
Double S.A. +
Accrued bonus
Triple S.A. +
Accrued bonus
Quadruple S.A.
+ Bonus
ADDITIONAL BENEFITS (Riders):o Family Income Benefit (FIB)o Comprehensive Accident Protection (CAP)o Critical Illness Benefit (CI)o Hospital Cash Benefit (HC)
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4. PROTECTOR: A Mortgage Reducing Term Insurance Plan.
PRODUCT TYPE:This is the perfect plan to protect the family from the repayment liability of outstanding
loans, in the unfortunate case of death of the loanee. There is also an option to cover the co-
applicant of the loan at a very nominal cost under this plan. The asset purchased with the loan
continues to be with the family, without any liability for repayment of the loan. Make sure
your family home remains with your family for life. The loan protector plan from Bajaj
Allianz Life Insurance is a mortgage reducing term assurance plan, which at low premiums
helps you to secure your family against home loan.
PRODUCT FEATURES: It is an economical way to protect the family from the burden of repayment of the
loan in case of death of the loanee .
The Plan offers you the convenience of choosing between two premium paymentoptions - Regular Premium Payment & Single Premium Payment.
Joint Life availability - the option to cover the co-applicant of the loan under thisplan.
5. RISK CARE: A plan with Regular/Single Premium payment options to secureyour life.
PRODUCT FEATURE: Financial security at lowest cost.
PRODUCT TYPE: This is a non-profit level premium Term insurance plan withadditional rider benefits likeCIB, HCB, ADB, APT/PDB and in which death benefit
is equal to the chosen sum assured (Death Benefit = Sum Assured).
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ELIGIBILITY & LIMITS:Eligibility Minimum Maximum
Age at Entry 18 years 60 years
Age at Maturity _ 65 years
Policy Term 5 years 40 years
Sum Assured Rs.4,00,000 Rs.50,00,00,000
Premium Single - Rs.5,000
Regular - Rs.1500 yearly, Rs.1000 half
yearly, Rs.500quarterly, Rs.200 monthly
No Limit
MATURITY BENEFIT: There are no survival / maturity benefits payable under thisplan.
DEATH BENEFIT: Sum Assured is payable, in case of death of the policyholderduring the policy term.
ADDITIONAL BENEFITS (Riders):o Accidental Death Benefito Accidental Permanent Total/Partial Disability Benefito Critical Illness Benefit (CI)
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Why do insurers prefer ULIPs?Insurers prefer 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 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.
Thus, ULIPs offer better returns than the traditional endowment plans and offer a great
deal of flexibility along with great returns making them the finest product offering.
Plans of ULIPs:
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1. NEW FAMILY GAIN: Flexibility in investment for your changing needs.
PRODUCT TYPE:With Bajaj Allianz New family gain, you can invest in one life insurance plan that can take
care of your entire changing requirement. This plan has been designed to provide you with
maximum flexibility, so that you do not have to worry about your changing needs.
PRODUCT FEATURES: It is a unit linked endowment type plan with a minimum term of 10 years and maximum
maturity age 70.
Guaranteed Life Cover: Sum Assured + Value of Units. Choice of three investment funds today with flexible investment management
ELIGIBILITY:Conditions Minimum Maximum
Age at Entry 0 60
Age at Entry with Riders 18 50
Maturity Age - 70
Top-Up 5,000 25% of regular premium paid
till date
Policy Term 10 years As per need
Sum Assured 5 times or Term/2*A.P.
whichever is higher
-
Premium Rs. 5000p.a, 2500 half
yearly, 1250 quarterly
-
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MATURITY BENEFIT: On maturity, the NAV of units in the fund will be paid outand the policy will terminate.
DEATH BENEFIT:Sum Assured + Fund Value
ADDITIONAL BENEFITS (Riders): UL Accidental Death Benefit and UL Accidental Permanent Total/Partial
Disability Benefit.
UL Critical Illness Benefit and UL Hospital Cash Benefit.
2. NEW UNIT GAIN SUPER: Super financial planning for your familys
security.
PRODUCT TYPE:Insure fully and get MAX allocation along with a host of additional benefits to choose
from. A flexible unit linked plan that allows partial & full withdrawal after 3 years.
PRODUCT FEATURES: Manage your investments: four funds to choose from, with 3 free switches
every year.
Partial and full withdrawals after 3yrs. Pay top-ups. Reduce regular premium after 2 yrs. Insure fully and get MAX allocation up to 93%
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ELIGIBILITY & LIMITS:Conditions Minimum Maximum
Age at Entry 0 60
Age at Entry with Riders 18 50
Maturity Age - 70
Top-Up 5,000 25% of regular premium paid
till date
Policy Term 10 years As per need
Sum Assured 5 times or Term/2*A.P.
whichever is higher
-
Premium 25000p.a, 12500 half yearly,
7500 quarterly,
-
MATURITY BENEFIT: On maturity, the value of units in the fund will be paid outand the policy will terminate.
DEATH BENEFIT:
ADDITIONAL BENEFITS (Riders): UL Accidental Death Benefit and UL Disability Benefit. UL Critical Illness Benefit and UL Hospital Cash Benefit. Four funds to choose from & flexibility to pay top-up any time.
Sum Assured or Fund Value whichever is higher
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3. UNIT GAIN PLUS GOLD: The plan that takes care of your insurance and
investment requirements for life.
PRODUCT TYPE: Bajaj Allianz Unit Gain Plus Gold aims to meet needs ofindividuals by clubbing life insurance with market-linked investment. A Unique plan
with the combination of protection and prospects of earning attractive returns with
investments in various mix of securities that makes a perfect plan to last you a
lifetime of prosperity and happiness.
PRODUCT FEATURES: High Allocation upto 85%. Guaranteed Life Cover with a choice of seven Investments Funds.
ELIGIBILITY & LIMITS:Conditions Minimum Maximum
Age at Entry 0 60
Age at Entry with riders 18 50
Maturity Age - 70
Top-Up 5,000 Unlimited with top-up sum
assured
Policy Term 10 years As per need
Sum Assured Term/2 * Annual premium -
Premium 12000p.a, 6000 half yearly,
1000 monthly
-
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MATURITY BENEFIT: On maturity, the fund value in respect of regular premiumand top-up premium (if any) will be paid.
DEATH BENEFIT:Sum Assured or Fund Value whichever is higher
ADDITIONAL BENEFITS (Riders): UL Accidental Death Benefit. UL Critical Illness benefit. UL Hospital Cash Benefit. UL Family Income Benefit. UL Waiver of Premium benefit.
4. CENTURY PLUS II: Score a century with your investment plan.
PRODUCT TYPE:Bajaj Allianz Century Plus II offers you a limited premium payment term option and a
unique combination of protection and prospect of attractive returns.
PRODUCT FEATURES: Guaranteed life cover of sum assured plus fund value. 98% allocation in year 1 and year 2 and 100% allocation 3rd year onwards.
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ELIGIBILITY & LIMITS:Conditions Minimum Maximum
Age at Entry 8 60
Age at Entry with Riders 18 50
Maturity Age 18 70
Top-Up 5,000 Unlimited with top-up sum
assured
Policy Term 10 years 10 years
Sum Assured 5 times annualized
premium-
Premium Rs15000p.a, 7500 half
yearly,
-
* You can change the premium payment mode on any policy anniversary.
MATURITY BENEFIT: On maturity, the fund value in respect of regular premiumand top-up premium (if any) will be paid.
DEATH BENEFIT:
Sum Assured + Fund Value
ADDITIONAL BENEFITS (Riders):o Accidental Death Benefito Accidental Permanent Total/Partial Disability Benefit
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5. NEW UNIT GAIN: An investment plan that creates value for every rupee you
invest.
PRODUCT TYPE: A plan that provides the best returns possible for every rupee youinvest.
PRODUCT FEATURES: Partial and full withdrawals after 3yrs (Minimum-Rs. 5,000) Assured Protectioneven if you miss payment of your premium after 3 yrs
ELIGIBILITY & LIMITS:Conditions Minimum Maximum
Age at Entry 0 60
Age at Entry with Riders 18 50
Maturity Age - 75
Top-Up 5,000 Unlimited with top-up sum
assured
Policy Term 15 20, 25
Sum Assured Term/2*Annual Premium -
Premium Males-Rs.10000p.a, 5000
half yearly, 1000p.m,
Females-7500p.a, 3750 half
yearly, 750 per month
-
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MATURITY BENEFIT: On maturity, the fund value in respect of regular premiumand top-up premium, if any, will be paid and the policy will terminate.
DEATH BENEFIT:
ADDITIONAL BENEFITS (Riders):o Accidental Death and Disability Benefito Critical Illness Benefito Hospital Cash Benefito Family Income Benefit
Single premium:- Bajaj Allianz unit gain plus (sp): The Only Single premium plan that
gives you Maximum Allocation.
o 98% Allocation.o Guaranteed Life Cover.o Choice of 5 Investment funds.o
3 free switches allowed everyear.
o Partial and Full withdrawls after 3 years.o Now minimum premium as low as Rs10, 000 only.
Sum Assured or Fund Value whichever is higher
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Difference between Traditional plans and ULIPs
ULIPs TRADITIONAL PLANS
The premiums, in excess of risk cover, is
invested as desired by the policyholder.
All the premiums go into a common fund and
are invested at the insurers discretion.
The investment return may vary depending
on the market movements and the investment
risk is borne entirely by the policyholder.
There are two categories of benefits-
guaranteed and non-guaranteed. For
guaranteed benefits, the insurer bears the
investment risk. However, non-guaranteed
benefits, such as bonuses, depend on the
performance of the insurer.
Withdrawals are allowed. Surrenders are allowed but at a loss. Loans
may be provided.
There are no bonuses, except loyalty bonusin some cases.
For participating policies, bonuses arepayable.
The amount of the premium used for
insurance coverage, other charges and the
purchase of units are unbundled and
transparent.
The premium amount used for insurance
coverage, other charges and investment are
bundled up and not known.
Benefits are variable. Benefits are pre-determined.
Loss is likely. Loss is unlikely.
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PENSION PLANS
When you have retired, your golden years can be secure. Live a worry free life.
New Unit Gain Easy Pension Plus: Unit Linked Retirement Plan without lifecover
Swarna Vishranti: Retirement Plan
TERM PLANS
Term Care: Term Plan with Return-of-Premium Risk Care: Pure Term Plan Life time Care: Whole Life Plan
GROUP LIFE PLANS
Bajaj Allianz provides an exciting range of group products which enable organizations to
provide protection and care to their members/employees.
Group Credit Shield Group Term Life Group Term Life Scheme in lieu of EDLI Group Gratuity Care Group Superannuation Care Small Group Term Life
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REVIEW
REO (2000) With the Indian government on a determined move to push up infrastructure
project, the future for project insurance is bright. Insurance risk management inpertise must
be tapped by the principal and not merely their after of insurance capacity, at acceptable
rates. The perception of both the buyer of insurance and the sellers of insurance on trading of
insurance must be change. They must reappraise their respective professional rates but banks
to have a powerful role to influence the range of an insurance program.
OHIO (2009) explore in his book Insurance is the subject matter of solicitation Has little
relevance to non life insurance products, primarily because, customers have no ambiguity
about the product being insurance, and hence scope for misleading information by solicitors.
These disclosure regulations may not be construed as detrimental to marketability of
insurance products or to be taking the tone of disclaimers. It is in the best interest of insurers
and intermediaries to follow these norms voluntarily rather than under compulsion of
regulations.
GOYAL (2OOO) gives overview on Bajaj Allianz once again revolutionizes the life
insurance industry by launching Invest Plus a traditional plan that offers transparency and
flexibility of ULIPs with minimum guaranteed investment returns, which is guaranteed at the
beginning of the year itself. This is the first of its kind traditional plan that offers upfront
minimum guaranteed investment returns at the beginning of each year and an guaranteed
maturity value so that customers can feel protected at all times and plan their investments
without any worries.
SONI (2009) Explore that all investment instruments have their unique set of advantages to
offer. It is vital for investors to be aware of the nuances in a particular offering and make
informed decisions. When investing in a Unit Linked Insurance Plan, popularly called ULIP,
it is to be borne in mind that ULIPs being a market linked instrument will fetch good returns
on a long term basis. The basic advantage of a ULIP over other investment instruments is that
it offers the twin benefits of life insurance as well as an investment.
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VARADARAJAN (2007) stated that as a parent, securing your childs financial and her life
perhaps is top priority. Help is around with life insurers offering products that meet both the
goals. These target-oriented plans are suitably tailored for your childs education and her
marriage. But like all other insurance products, finding the balance between costs and returns
is not easy.
CHIDAMBARAM(2007) examined that for handicapped children, LIC offers among others
Jeevan Aadhar. Here the guaranteed addition is Rs 100 for every Rs 1,000 sum assured for
each completed policy year, which can continue till the parent turns 65. In case the worst
happens, the child gets 20 per cent of the accumulation upfront and the rest is used to
purchase an annuity. This ensures a handicapped child gets adequate and regular future
income.
SHANBHAG (2006) Gives an overview on Demand for life insurance policies has increased
in the last couple of years. However, people think of insurance policies as a way of
investment and PPF (Public Provident Fund), RBI (Reserve Bank of India bonds, equity
mutual funds are thought of as investment for adults. But it is not like that. There is no
product labeled as `for adults only'. Similarly, children's investment products are not the only
products that are meant for children.
PRASAD (2006) Explore that Standard Life Insurance, the difference between ULIPs (Unit
Linked Investment Plans) and traditional products is the way your money is invested. The
companies invest the investible portion of the premium as per IRDA (Insurance regulatory
funfests in different asset classes and gives you three to four varieties of funds in one policy.
ULIP should be preferred if the investor is inclined towards the market and feels that he
should actively participate in fund management.
HASSAN AND LAWRENCE (2007) conducted a survey on, An analysis of financial
preparation for retirement. This study based on the data from the survey of consumer
finances. It applied profit analysis to compare and examine the variables affecting retirement
preparation between men and women of the age group 30-39 years. These results revealed
that retirement plan eligibility has a significant and negative association with retirement plan.
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BAUER AND FREHEN (2008) analyzed in this study evaluated the pension fund
performance. The research revealed that the pension funds have closely performed in relation
to its benchmark and multiple components. It was observed that the pension funds are less
exposed to hidden agency cost in comparison to mutual funds.
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OBJECTIVES OF THE STUDY
Whenever a study is conducted, it is done based on certain objectives in mind. This study is
based on following objectives:
1. To study awareness among the people about Life Insurance.
2. To study the preferences of investors between Unit Linked Insurance Plans andTraditional Plans.
3. To know which ULIPs and Traditional plans are better?
4. To know the frequency of payment made by customer.
SCOPE OF THE STUDY
The report title is Comparative Study of ULIP and Traditional Plans. The report gives an
overview of the Insurance Sector and company profile. It also includes history of Bajaj Allianz.
The study was conducted to know the preferences of investors between ULIPs and Traditional
Plans. The methodology adopted for the study was through a structured questionnaire. For this
purpose sample size of 30 was taken. The data collected, is analyzed thoroughly and presented
in the form of charts and tables.
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LIMITATIONS OF THE STUDY
The study based on survey through pre-designed questionnaires suffers from the basic
limitations of the possibility of difference between what is recorded and what is the truth,
no matter how carefully the questionnaire has been designed and field investigation has
been conducted. This is because the persons may not deliberately report their true
responses and even if they want to do so, they are bound to be differences owing to
problems in the communication process. In addition, there are some limitations, which are
as below:
Data collection error may be there due to wrong response from respondents as sometime they are not the right person who takes actual decisions.
Some of the respondents can hide the real information. Some time people did not have time to fulfill questionnaire, so they give only few
information.
A sample size cannot always represent the whole population.
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RESEARCH METHODOLOGY
Necessity is the mother of invention
Research methodology is a plan of action to be carried out in connection with a research
report. The population for the study consists of all the investors who are investing a part of
their income in various schemes on financial instruments. The data for the study was
collected with the help of structured questionnaires.
RESEARCH DESIGN
Research design is the basic framework which provides guidelines for the rest of research
process. The survey done for this project conveys Regional information. Scope of survey is
limited to Ludhiana City. The research design specifies:-
TYPE OF RESEARCH
This is descriptive type of research in which clients has been surveyed to check their
preferences regarding the ULIP and Traditional Plans.
METHOD OF DATA COLLECTION
There are two methods of data collection. For study both primary and secondary data was
collected.
o Primary Data: For collecting primary data I used a questionnaire. Under thisquestionnaire, the questions, which were related to check the customers preference
between ULIP and Traditional plans, are included. The data was collected in the field
through questionnaires to get the meaningful information not available for secondary
data.
o Secondary Data: This data was taken from published media and internet.
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SAMPLING UNIT
The data was collected from various locations of Ludhiana. Data was collected from
businessmen and service class.
SAMPLE SIZE
It was decided to restrict the sample to 30 respondents.
CONTACT METHOD
I personally interacted with people to fill up the questionnaire so that I may able to complete
my survey.
SAMPLE DESIGN
For drawing the sample convenient sampling has been used to save time and to meet my
Objectives.
STATISTICAL TOOLS
Bar, graph diagrams and Pie charts have used to understand the result analysis.
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GENDER (Table1.1)
Male
Female
Figure 1.1
Interpretation:There are 26 male respondents and 4 female respondents.
Particulars Respondents
Male 26
Female 4
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Percent of income put in saving.
Table (1.3)
0
2
4
6
8
10
12
Below
10%
10% to
20%
20% to
30%
30% to
40%
Below 10%
10% to 20%
20% to 30%
30% to 40%
Figure (1.3)
Interpretation:
9 respondents save below 10% of salary, 10 respondents save 10% to 20%, 11 respondents
save 20% to 30%, No respondents save 30% to 40% of their salary.
Particulars Respondents
Below 10% 9
10% to 20% 10
20% to 30% 11
30% to 40% 0
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Awareness of life insurance
Table (1.4)
0
5
10
15
20
25
30
Yes No
Yes
No
Figure (1.4)
Interpretation:
All the respondents are aware of life insurance sector, there is hardly any person who doesnt
know about the life insurance.
Particulars Respondents
Yes 30
No 0
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Persons having life insurance policy
Table (1.5)
Particulars Respondents
Yes 24
No 6
0
5
10
15
20
25
Yes No
Yes
No
Figure (1.5)
Interpretation:Out of 30, 24 respondents have the insurance policy because during my
survey I found that now a days insurance is not only taken as a life cover tool but people also
take it as an investment and tax saving tool.
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Insurance is the only way to safeguard against the unpredictable risks of
the future.
Table (1.6)
0
2
4
6
8
10
12
Figure (1.6)
Interpretation:Out of 30,10 respondents are highly satisfied that insurance is only
safeguard way against the unpredictable risk of future.And 11 are satisfied and 5 are dis
satisfied and 4 are netural.
Particulars Respondents
Highly Dissatisfied 0
Dis-satisfied 5
Neutral 4
Satisfied 11
Highly satisfied 10
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Insurance is a better tool for investment purpose or for life cover and tax
saving
Table (1.7)
0 2 4 6 8 10 12
Highly Dis -agrred
Dis-agreed
Neutral
Agreed
Strongly agreed
Figure (1.7)
Interpretation: Out of 30, there are 11 person who are strongly agreed insurance is better
tool for investment or for life cover and tax saving.And 10 are agreed.
Particulars Respondents
Highly Disagrred 0
Dis-agreed 5
Neutral 4
Agreed 10
Strongly agreed 11
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Awareness about Bajaj Allianz
Table (1.8)
Particulars Respondents
Yes 22
No 8
Yes
No
Figure (1.8)
Interpretation:
22 respondents know about Bajaj Allianz and remaining 8 respondents were unknown about
Bajaj Allianz.
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Persons having Bajaj Allianz product
Table (1.9)
13
13.5
14
14.5
15
15.5
16
Yes No
Figure (1.9)
Interpretation:
Out of 30, 14 respondents have bought the products of Bajaj Allianz, and rest 16 does not
have any product of this company. Some of the persons who have not bought its products are
unknown about Bajaj Allianz.
Particulars Respondents
Yes 14
No 16
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Awareness about unit linked insurance plans.
Table (1.10)
0
5
10
15
20
25
yes no
yes
no
Figure (1.10)
Interpretation:-There are 22 respondents who know about unit link plans. And 8 are not.
Particulars Respondents
yes 22
No 8
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Customer preference of ULIPs
Table (1.11)
Figure (1.11)
Interpretation:-out of 30,12 respondents are having century plus according to them it is
better than other.
0
2
4
6
8
1012
Particulars Respondents
New unit gain 1
Young care 1
Young care plus 2
New family gain 2
Future secure 1
Century plus 12
Fortune plus 2
Health care 1
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Awareness of traditional plans.
Table (1.12)
Figure (1.12)
0
5
10
15
20
25
yes no
Particulars Respondents
Yes 23
No 7
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Customer preference of traditional plans
Table (1.13)
Figure(1.13)
Interpretation:
23 respondents are aware of Traditional Plans and only 7 are not aware of Traditional
Plans.Acoording to respondents child gain is better than others.
0
2
4
6
8
10
12
Invest gain Llife time care super saver child gain cash gain
Particulars
respondents
Invest gain 2
Life time care 3
super saver 1
child gain 10
cash gain 6
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Tenure of investment customer prefer
Table (1.14)
0 5 10 15 20
3 years
3 to 5 years
More than 5 years
3 years
3 to 5 years
More than 5 years
Figure (1.14)
Interpretation:
According to 18 persons, the tenure of investment should be 3 years, 12 says that it should
be 3 to 5 years.
Particulars Respondents
3 years 18
3 to 5 years 12
More than 5 years 00
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8/2/2019 Bajaj Project Final
64/68
64
Frequency of payment
Table (1.15)
Very Bad Bad Good Very Good
Yearly 1 1 7 21
Half-yearly 1 5 22 2
Monthly 10 19 0 1
Quarterly 10 12 1 7
Table (1.15a) Table (1.15b)
Table (1.15c) Table (1.15d)
YEARLY
very Bad
Bad
Good
very Good
HALF-YEARLY
Very Bad
Bad
Good
Very Good
MONTHLY
Very Bad
Bad
Very Good
QUARTERLY
Very Bad
Bad
Good
Very Good
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8/2/2019 Bajaj Project Final
65/68
65
Interpretation: There are 21 respondents who said yearly payment is very good. 22 respondents said half yearly payment is good Monthly payment is bad most of think that. There are some pepole who favour in quqrterly payment some are not.
Source to know about these plans
Through advertisement Through relatives/friends
Table (1.16)
Particulars Respondents
Through advertisement 15
Through relatives/friends 15
0
2
4
6
8
10
12
14
16
Through advertisement Through r elatives/friends
Figure (1.16)
Interpretation:
15 respondents know about ULIP and Traditional Plans through advertisements and 15
respondents know through relatives/friends.
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8/2/2019 Bajaj Project Final
66/68
66
ULIPs is better than traditional plans of Bajaj Allianz
Table (1.17)
0
2
4
6
8
10
12
14
Strongly
Dis-agreed
Dis-agreed Neutral Agreed strongly
agreed
Figure (1.17)
Interpretation: There are 13 respondents who thinks ULIPs better then traditional
plans.And 8 are strongly agreed..
Particulars Respondents
Strongly Dis-
agreed
0
Dis-agreed 5
Neutral 4
Agreed 13
strongly agreed 8
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8/2/2019 Bajaj Project Final
67/68
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8/2/2019 Bajaj Project Final
68/68
CONCLUSION
According to my survey, most of the investors prefer ULIP as compared toTraditional Plans because investors want flexibility, higher returns and liquidity that
is why ULIP is better than Traditional Plans. It is pertinent to mention that
Traditional Plans have comparatively low returns and have less liquidity.
ULIP is the insurance cover with investment. Both ULIP and Traditional Plans areunder IRDA( Insurance Regulatory And Development Authority).When I conduct
the survey, respondents told me that if they go with ULIP, although they should be
more aware of the market but they need not to worry because fund managers
manages the money and money can be shifted (switched) to safer funds.
Another advantage of ULIPs over Traditional Plans is its flexibility. The differencelies in the flexibility that ULIPs afford the individual. Some insurance companies
allow a certain number of 'free' switches. Bajaj Allianz offers three free switches in
one policy year.
ULIP is more transparent than Traditional Plans. There is no doubt about the returnsin ULIP due to proper transparency, but Traditional Plans have no transparency.
Customers came to know about their transactions only at the end.
ULIP covers insurance with investment. In ULIP, a person on the one hand isinvesting money in market and on the other hand, he is securing his life. Therefore,
ULIP is solving both the problems of investing and insurance. If a person is willing
to invest in the market, then ULIP is the best option for him.
In Indian market before the era of Traditional Plans and ULIP, three things were verypopular FDs, RDs and saving bonds. Now days investors have more choice. At the
time of investment investor think about the return, that is why investor prefers both
the insurance and good return