Bajaj Unit Linked

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INTRODUCTION

Life insurance is insurance on human beings. Though Human life cannot

be valued, a monetary sum could be determined which is based on loss of income in future years. Hence in life insurance, the Sum Assured (or the

amount guaranteed to be paid in the event of a loss) is by way of a benefit in

the case of life insurance. Life insurance products provide a definite amount of

money to the dependants of the insured in case the life insured dies during his

active income earning period or becomes disabled on account of an accident

causing reduction/complete loss in his income earnings.

With such a large population and the untapped market area of this

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

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

with banking services, it adds about 7 per cent to the countrys GDP .In spite of

all this growth the statistics of the penetration of the insurance in the country is

very poor. Nearly 80% of Indian populations are without Life insurance cover

and the Health insurance. This is an indicator that growth potential for the

insurance sector is immense in India.

Till date insurance agents still remain the main source through which

insurance products are sold. The concept is very well established in the country

like India but still the increasing use of other sources is imperative. It therefore

makes sense to look at well balanced, alternative channels of distribution. LIC

has already well established and have an extensive distribution channel and

presence. New players may find it expensive and time consuming to bring up a

Kousali Institute of Management Studies, Dharwad 1
http://www.bajajallianzlife.co.in/corporateweb/index.asp


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distribution network to such standards. Therefore they are looking to the diverse

areas of distribution channel to have an advantage.

In view of the scope for private sector entrepreneurs in insurance

business in India such as Bajaj Allianz, HDFC standard life insurance etc the present study is undertaken to review and understand the insurance business by

a prominent private player in this field namely Bajaj Allianz. Co Ltd

BAJAJ ALLIANZ LIFE INSURANCE CO LTD. BELLARY, was

established On 12 th March 2001 with joint venture with Allianz Bajaj Life

Insurance Co. Ltd. Company is a joint venture between Allianz AG and Bajaj

Auto Limited. Characterized by global presence with a local focus and driven

by customer orientation to establish high earnings potential and financial

strength, Allianz Bajaj Life Insurance Co. Ltd. was incorporated on 12th March

2001. The company received the Insurance Regulatory and Development

Authority (IRDA) Certificate of Registration (R3) No 116 on 3rd August 2001

to conduct Life Insurance business in India. Right now the company is facing a

strong competition in the market because of many private players, so my studyis to find out Market Potential for Unit-linked Insurance Product in Bellary

City.

UNIT LINKED INSURANCE PLAN:

Unit linked insurance plan is one of the life insurance plan which provides

life insurance cover, along with the prospect of high growth. In this life

insurance plan the premium payable consists two parts

Risk premium and

Investment premium



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Risk premium will provide the safety to the family members at the time of

the policyholder. And second one will provide good returns to the policyholder

for their investment.

MR KAMESH GOYAL, who was the CEO of Bajaj Allianz earlier has

taken over as Country Manager and is also the CEO of Bajaj Allianz Life

Insurance Company Limited.

Bajaj Allianz has launched a need-based products to cater to each varied

needs of the customer. Currently Allianz Bajaj has a product portfolio of 18 products and more need-based products are in the pipeline.

Objectives of the study

To study the different insurance schemes traded in by the Bajaj Allianz ltd.

Identifying the Market Potential for different insurance products in Bellary city

with special focus on Unit Linked Insurance Plan

Identifying the preference pattern and find the

uniqueness of the products

Conducting survey to understanding consumer

preference towards life insurance sector which helps to the organization.

METHODOLOGY: The study is conducted on the basis of information

collected through--

1. Primary data

2. Secondary data

1. Primary data:

Primary data is collected with the help of



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Personal interviews with the company officials and questionnaire

administered among customer respondents has been used for collecting primary

data so as

To know the Market Potential for different Insurance Product inBellary City

To find out the customers preferences in insurance schemes.

2. Secondary data:

The additional information is gathered through

Company brochure and other documents

Websites

Limitations

1. Project study is not an exact science, so one cant accept 100% result,

only justified solutions are given.

2. The findings are inferences of the study are limited to Bellary City

3. As the sample size is very small, hence the findings cannot be

generalized.

Response of the Customers, Dealers and Engineers might be biased

which might have affected the findings of the survey

CHAPTER SCHEME:

1. The first chapter being Introduction covers the significance of

insurance , statement of the problem, objectives of the study,

methodology and chapter scheme.



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2. The second chapter highlights the profile of insurance industry in

general.

3. Third chapter is meant for profile of bajaj allianz ltd and the study

of different insurance products of bajaj allianz co ltd.4. Fourth chapter deals with analysis and interpretation of various

insurance products of bajaj allianz ltd in Bellary city.

5. The last chapter being conclusion includes findings of the study and

offers suggestions.

INDUSTRY PROFILE

Meaning of Life Insurance

Life insurance is insurance on human beings. Though Human life cannot

be valued, a monetary sum could be determined which is based on loss of

income in future years. Hence in life insurance, the Sum Assured (or the

amount guaranteed to be paid in the event of a loss) is by way of a benefit in

the case of life insurance. Life insurance products provide a definite amount of

money to the dependants of the insured in case the life insured dies during his



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active income earning period or becomes disabled on account of an accident

causing reduction/complete loss in his income earnings.

With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it

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

with banking services, it adds about 7 per cent to the countrys GDP .In spite of

all this growth the statistics of the penetration of the insurance in the country is

very poor. Nearly 80% of Indian populations are without Life insurance cover

and the Health insurance. This is an indicator that growth potential for the

insurance sector is immense in India.

Till date insurance agents still remain the main source through which

insurance products are sold. The concept is very well established in the country

like India but still the increasing use of other sources is imperative. It therefore

makes sense to look at well balanced, alternative channels of distribution. LIC

has already well established and have an extensive distribution channel and

presence. New players may find it expensive and time consuming to bring up a

distribution network to such standards. Therefore they are looking to the diverse

areas of distribution channel to have an advantage.

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.



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1928: The Indian Insurance Companies Act enacted to enable the

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

insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance

Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over

by the central government and nationalized. LIC formed by an Act of

Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore

from the Government of India.

Growth of life insurance:

Many may not be aware that the life insurance industry of India is as old

as it is in any other part of the world. The first Indian life insurance company

was the Oriental Life Insurance Company, which was started in India in 1818 at

Kolkata. A number of players (over 250 in life and about 100 in non-life)

mainly with regional focus flourished all across the country. However, theGovernment of India, concerned by the unethical standards adopted by some

players against the consumers, nationalized the industry in two phases in 1956

(life) and in 1972 (non-life). The insurance business of the country was then



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brought under two public sector companies, Life Insurance Corporation of India

(LIC) and General Insurance Corporation of India (GIC).

The Government set up a Committee on Reforms (popularly called theMalhotra Committee) in April 1993 to suggest reforms in the insurance sector.

The Committee recommended throwing open the sector to private players to

usher in competition and bring more choice to the consumer. The objective was

to improve the penetration of insurance as a percentage of GDP, which remains

low in India even compared to some

Developing countries in Asia. Reforms were initiated with the passage of

Insurance Regulatory and Development Authority (IRDA) Bill in 1999. IRDA

was set up as an independent regulatory authority, which has put in place

regulations in line with global norms. So far in the private sector, 12 life

insurance companies and 9 general insurance companies have been registered

Players in the market:

IRDA has registered to 12 private life insurance companies and 9 general

insurance companies. There are 13 life insurance companies including both

public and private, and 13 companies operating in general insurance business.

The following companies are comes under life insurance business.Public sector

Life insurance Corporation of India

Private sector

Bajaj Allianz life insurance company Ltd.



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Birla Sun- Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company Ltd.

ING Vysya Life Insurance Company Ltd.

Max New York Life Insurance Company Ltd.

MetLife Insurance Company Ltd.

Om Kotak Mahindra Life Insurance Company Ltd.

SBI Life Insurance Company Ltd.

TATA AIG Life Insurance Company Ltd.

Reliance Life Insurance Company Ltd.

Public company:

Life Insurance Corporation of India:

The Life Insurance Corporation of India, fondly known as LIC by

millions of policyholders, is Indias largest life insurance company. In fact, LIC

is one of the worlds largest insurance corporations. A monopoly player until

recently, LIC does not seem overly worried by the recent act of parliament,

which opened the insurance sector in India to private players too.



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LIC confidence comes from a few but important areas. As Indias

foremost insurance company with a presence that spans decades, LIC has

become synonymous with life insurance in India. Its promptness and efficiency

in settling claims has helped earn the trust of millions. Its immense distributionstrength gives even remotely located customers access to its services. LIC has

huge cash reserves at its disposal and knows the Indian market like no other

insurance company. These strengths are tough to duplicate.

The following are the products offered by the LIC in India:

Term Insurance:

2 years Term Insurance

Convertible Term Insurance

Bima sandesh

Bima kiran

Whole Life Insurance:

Whole Life Policy

Limited Payment Policy

Convertible Whole Life Policy



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Endowment Policy:

Jeevan shree

Jeevan Mitra

Asha Deep II

Private life insurance companies:

1) Bajaj Allianz Life Insurance Company Ltd:Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two

leading conglomerates- , Bajaj Auto, one of the biggest 2 and 3 wheeler

manufacturers in the world and Allianz AG, one of the world's largest insurance

companies.

The following are the products offered by the company:



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Bajaj Allianz Group Gratuity Care

Bajaj Allianz Group Superannuation Care

Bajaj Allianz Group Credit Care Plan

Bajaj Allianz term Plan

Bajaj Allianz Risk Care Plan

Bajaj Allianz Life Time Care

Bajaj Allianz save Care

2) Birla Sun - Life Insurance Company Ltd:

Birla Sun Life Financial Services offers a rang of financial services for

resident Indians and Non resident Indians. The mutual Fund and Insurance

companies provide wealth management and protection products to customers

while the Distribution and Securities companies provide brokerage and trading

services for investment in equities, debt securities, and fixed deposits.

Products offered by the company:Endowment plan

Flexi Save plus Endowment Plan

Money Back Plan

Flexi cash flow money

3) HDFC Standard Life Insurance Company Ltd:

HDFC and Standard Life first came together for a possible joint venture,

to enter the Life Insurance market, in January 1995. It was clear from the outset

that both companies shared similar values and beliefs and strong relationship

quickly formed.



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Products offered by the company:Endowment Assurance Plan

Money Back Plan

Group Insurance Plan

4) ICICI Prudential Life insurance Company Ltd:

ICICI Prudential Life Insurance Company is a joint venture between

ICICI, a premier financial power house and prudential plc, a leading

international financial services group headquartered in the United Kingdom.

ICICI prudential was amongst the first private sector insurance companies to

begin operations in December 2000 after receiving approval from Insurance

Regulatory Development Authority.

Product offered by companyEndowment Plan

ICICI prudential Single bond

ICICI prudential saven protect

ICICI forever life

Money back policy

ICICI prudential cash back

Protection Plan

5) Max New York Life Insurance Company Ltd:

Product Offered By the CompanyEndowment policy

Whole Life policy



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Term Insurance

6) MetLife Insurance Company Ltd:

The origin of Metropolitan Life Insurance Company (MetLife) wasstarted in 1863. But the company decided to focus on life insurance business in

1868. By 1880 the company was started to 700 new industrial policies a day.

From 1909 MetLife became the nations largest life insurance in terms of

insurance.

Products offered by the company

Term Insurance productsOne Year Term Insurance

Scheduled Term Insurance

Permanent insurance products

L-98 whole life

Equity Advantage VUL

7) OM KOTAK Mahindra Life insurance Company Ltd:

Product offered by the companyEndowment assurance plan

Money back policy

Term policy

8) SBI Life Insurance Company Ltd:



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SBI Life Insurance Company Ltd registered as a life insurance company

with the Insurance Regulatory and Development Authority and has been issued

Licence number 111 on 29 th March 2001.

Products offered by the companyHorizon

Life Long Pensions

Sudarshan

Money Back Policy

Scholar II

Shield

Sanjeevan supreme

Setubandhan

Swadhan

9) TATA AIG Life Insurance Company Ltd:

TATA AIG life Insurance Company Ltd is joint venture between the tata

group Indias most trusted industrial house and American International Group,

Inc. (AIG).

Product offered by the company21 Year Money Saver Plan

20 to 30 years Security and Growth Plan

Golden Years Plan

10) Reliance Life Insurance Company Ltd:



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Products offered by the companyEndowment Plan

Sudha Shree

Yuva ShreeDhana Shree

Nithya Shree

Divya Shree

Pension Plan

Bhagha Shree

Investments

Kanak Shree

Protection

Raksha shree



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Market Share of Insurance Companies


INSURANCE COMPANY MARKET SHARE (in %)

LIC 82.3ICICI PRUDENTIAL 5.63BIRLA SUN LIFE 2.56BAJA ALLIANZ 2.03SBI LIFE 1.80HDFC STANDARD 1.36TATA AIG 1.29MAX NEW YORK 0.90AVIVA 0.79OM KOTAK MAHINDRA 0.51ING VYSYA 0.37AMP SANMAR 0.26METLIFE 0.21


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Advantages of life insurance:

Life insurance policy creates an estate: If the bread winner or the saving

holder unfortunately dies then the insurance company will become

payable lump sum amount than what ever premium amount paid by the policy holder. By this we can say that the life insurance will provide the

financial help to the insured dependents.

Life insurance is forced to continue the payment of the premium. But in

the other savings the holder can have chance to withdraw the money

when he want to fulfill his desires. But in case of life insurance there isno any chance for withdraw the money then he has to surrender his

policy then the very small percentage of amount will paid by the

insurance company. Because of this the policyholder does not go for

withdraw the money.

Any court of law or income tax authorities cannot attach life insurance.

In this insurance the married person can take policy under married

womens property acts for the benefit of his wife/children and create

separate estate for their benefit. Life insurance thus can be used as a gift

to the near and dear.

Life insurance can be utilized as a collateral security for housing loan. In

case of the death of the policy holder then the amount available under the

life insurance policy is adjusted for the payment of outstanding loan and

interest. It will help to the dependents of the policyholder.



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The proceeds of a life insurance policy including any bonuses paid are

not liable for income tax.

The settlement of the claim of the policy is very simple. In case of death

of the insured, the insured amount will be paid to the nominee of the

policy and in case of the survival of the policyholders till at the end of the

maturity period then the insured amount will be paid to the policy owner.

Why do people need life insurance?

1) It provides the financial security to the family. An untimely / sudden

death of the breadwinner the result is that the family faces a great

financial problem. So at that time Life Insurance is a best instrument for

family to solve the financial problem.

2) Every person lives in dreams-dreams like high education for Children,

grand marriage of daughters, etc. Life insurance will make such dreams

come true if the even dreamer is no more.

3) Own shelter has become an essential to every one. Many institutions

offer mortgage loan for purchase or construction of a house or flat. Life

insurance acts as a collateral security in respect of such loans. Without

such security the same shelter considered on asset as long as the house purchaser is alive. Will become liability to the family if he dies before

repayment of the entire loan.



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4) Life insurance provides financial independence in old age. The lump sum

maturity value of a policy when received can be invested to yield interest

sufficient to meet expenses after retirement from work life.

5) Organization can purchase group life insurance polices as part of their

employee welfare program. This acts as a moral booster to the worker

and result in improved productivity.

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY



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Reforms in the Insurance sector were initiated with the passage of the

IRDA Bill in Parliament in December 1999. The IRDA since its incorporation

as a statutory body in April 2000 has fastidiously stuck to its schedule of

framing regulations and registering the private sector insurance companies. Theother decisions taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies was the launch

of the IRDAs online service for issue and renewal of licenses to agents. The

approval of institutions for imparting training to agents has also ensured that the

insurance companies would have a trained workforce of insurance agents in

place to sell their products, which are expected to be introduced by early next

year. Since being set up as an independent statutory body the IRDA has put in a

framework of globally compatible regulations. In the private sector 12 life

insurance and 6 general insurance companies have been registered.

TYPES OF LIFE INSURANCE

Basically there are four types of life insurance

1) Term life insurance

2) Whole life insurance



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3) Endowment assurance

4) Unit linked insurance plan

1) TERM LIFE INSURANCE

Term insurance provides coverage for a limited term or period of time.

Most insurance companies offer the term insurance policies with terms from

one to thirty years

Term life insurance means providing the lump-sum amount to the family

at the time of death of the insured or breadwinner is called as a term insurance.

Term insurance policy may be defined as a contract that furnishes life

insurance protection for a limited number of years, the face value of the policy

being payable only if death occurs at stipulated period /term.

Term life insurance policies will be issued for a short period as one year

or fixed period of 5, 10, 15, 20 or 25 years.

In this policy the lump-sum amount will be paid only if death of insured

occurs during the specified term. If the insured survives till at the end of the

specified term, then any amount will not become payable.

There are two types of term insurance

1) Renewable term insurance

2) Convertible term insurance



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Renewable term insurance:

It is a term insurance policy that allows customer to continue or renew

the policy at the end of its term without reapplying. Because customer is notrequired to reapply, they avoid the risk of losing life insurance coverage at the

end of the current term due to declining health.

Convertible term insurance

It is a term insurance policy that allows customer to convert the policy to

a permanent policy during a specified window of time known as the conversion

period. Because customer does not have to prove their insurability at the time of

conversion, this provision allows the conversion from term insurance to

permanent insurance.

2) WHOLE LIFE INSURANCE PLAN

Whole life insurance is a permanent type of insurance. Premium rate is

low but higher than that of the Term Insurance. The plan provides adequate and



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permanent protection to the family. It provides life insurance coverage for as

long as policyholder live or until age 100. In whole life plan premium amount

will be paid whole life till death of insured occurred.

Mainly there are two types of whole life insurance

1) Permanent whole life insurance.

2) Limited payment whole life insurance.

Permanent whole life insurance :

In permanent whole life insurance the insured has to pay the premium

amount continuously till his death occurred and the insurance amount will be

given at the death of the insured.

Limited payment whole life insurance :

In limited payment whole life insurance the insured has to pay the

premium for a limited / specified period. Once the premium paid up to limited

period, further premiums need not be paid but the policy and risk continue till

the death of insured and the insured amount will be payable after the death of

the insured.

Advantages of whole life insurance

1) The fixed premium has to pay every year. Regardless of the age or health

of the policy owner, he pays the same amount for the coverage each year.



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2) Premium can be paid up to the specified time and the insurance amount

will become payable only at a death of the insured. It will become helpful

to the insured for paying the premium within his working days.

3) Death benefit is guaranteed.4) Minimum cash value is guaranteed.

Disadvantages of whole life policy

1) Policy cash values may be accessible only by loan or surrender of policy.

2) Premium rate is little higher than the term insurance plan.

3) Cash value accumulation may be at returns lower than the financial

investment product.

3) ENDOWMENT ASSURANCE

Endowment assurance is an important plan in life insurance. In this plan the

insurer has to agree



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Unit linked insurance plan is one of the life insurance plan which provides

life insurance cover, along with the prospect of high growth. In this life

insurance plan the premium payable consists two parts

Risk premium and

Investment premium

Risk premium will provide the safety to the family members at the time of

the policyholder. And second one will provide good returns to the policyholder

for their investment.

Under this scheme, a portion of the premium is invested in equity and debt

instrument in the capital market where scope for high growth exists. In this plan

the policyholder, while submitting the proposal form, should select a fund

where he wants to put the investment part of the premium.

And the life cover option is compulsory for every investor. The investor

should take at least life cover of Rs 1000 . The policy charge will be taken

from the investment money. There is no necessity for payment of premium for

the life cover separately.

If the death of the policyholder occurs during the period of policy then,

whichever is higher (i.e. investment amount or policy amount) that amount

would be payable to the nominee of the policyholder.

If the policyholder survives till at the end of the specified period then the

insured amount will not payable to the policyholder. The policyholder will get

only returns, which is earned by the investment every year. That returns will be

accumulated to policyholder account and the policyholder can withdraw the

money at any time.



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Advantage of unit linked insurance plan:

1) Safety for the investment.

2) Investor will get life cover benefit.3) Investor will get good returns for their investment

4) Investor will get tax benefit.



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Investment Planning

Investment planning is one of the important planning which will come

under the financial planning. In the past investment planning was far simpler than today. Means in the past the people will have philosophy that earn little,

invest/save little, educate the children and retire with reasonable comfort. But in

these days investment is more complex because of these factors.

1) Tax benefit

2) Future security.

3) Greater flotation in the interest rates

Most of the people/person uses a Varity of investment instrument for

achieve their financial object. The services or investment tools are as follows:

Mutual Funds

Common stocks, bonds

Saving Account

Fixed deposits

Life insurance policies

In this investment planning, insurance is also one of the investment tool

used by the people for achieving their financial objectives and also it is one of

the risk management tool.



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In these days people are giving more importance for their future career

and their financial objectives. For some persons especially those just entering

the work force, the concept of establishing, a savings and investment plan can

seem distant. Some families incomes are such that all income must be spent oncurrent living expenses, with no surplus available for saving. Other persons, for

various reasons (lack of discipline), spend their income on current consumption,

even though their total current needs could be met reasonably within their

current income level, and at the same time leave sufficient funds to establish a

savings and investment program.

PROFILE OF THE BAJAJ ALLIANZ COMPANY LTD

Bajaj Auto Ltd.



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Bajaj Auto Ltd. the Flagship Company of Bajaj Group was incorporated

in 1945 as Bachraj Trading Corporation. Initially it started by assembling two

and three wheelers in collaboration with Piaggio of Italy. After the expiry of the

agreement in 1971 the two and three wheelers acquired the brand name of Bajaj. The strength of the company lies in its strong brand image and ability to

offer value for money products leveraging on its large-scale operations.

Bajaj is one of India's largest two and three - wheeler manufacturer and

the fourth largest manufacturer of two-wheeler in the world, with an annual

turnover of Rs. 42.16 billion.

One of the largest 2 & 3 wheeler manufacturer in the world

21 million + vehicles on the roads across the globe

Managing funds of over RS 4000 cr.

Bajaj Auto finance one of the largest auto co. in India

Allianz AG

Allianz group was founded in 1890 and is one of the world's leading

insurance companies with over 110 years' experience in insurance and related



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services. It is also the largest insurer in Europe. Allianz group has multi-local

structure and presence in over 70 countries, 173,750 employees worldwide. The

key business areas of Allianz group include General Insurance (property,

engineering, marine, motor, casualty and miscellaneous), Reinsurance, Risk Management, Life & health insurance, Asset Management and Pension Funds

Management.

Cornhill Insurance in the United Kingdom, Fireman's Fund in the United

States of America, AGF in France, RAS s.p.a in Italy, MMI in Australia are

some companies under Allianz group. Rated 'AAA' by S&P it has assets over

670 billion DM (RS. 17,160 billion) under its management with employee

strength of over 1,05,700.

Worlds Largest Insurance co. by revenue RS 5,24,400 cr. (US $ 144 bn)

Worldwide 2 nd by Gross Written Premiums RS 4,46,654 cr. (Euro 85

billion

3rd largest Assets Under Management (AUM) & largest amongst insurance

cos. AUM of RS. 51,96,959 cr. (Euro 996 bn)

11 th largest corporation in the world

50% of global business from Life Insurance, close to 60 million lives

insured globally

Insurance to almost half of the Fortune 500 cos.

Bajaj Allianz Life Insurance Company Limited



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Vision

To be the first choice insurer for customers

To be the preferred employer for staff in the insurance industry.

To be the number one insurer for creating shareholder value

Mission

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.

Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two

leading conglomerates- , Bajaj Auto, one of the biggest 2 and 3 wheeler



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manufacturers in the world and Allianz AG, one of the world's largest insurance

companies.

MR KAMESH GOYAL, who was the CEO of Bajaj Allianz earlier has

taken over as Country Manager and is also the CEO of Bajaj Allianz LifeInsurance Company Limited.

Allianz Bajaj Life Insurance, the fastest growing private life insurance

co. has recently received approval for complete suite of group products which

includes Unit-Linked Group Superannuation & Group Gratuity, and Group

Term Life. The gratuity and group superannuation products have been launched

under a unit-linked platform so that policyholders can see that they are getting

the returns that the funds earn. This also gives us the flexibility to offer

customers a choice of investment in short-term debt, balanced or income funds.

Corporate can use the volatility in the markets to their advantage by buying

additional units during a downtrend.

MR KAMESH GOYAL said with the launch of unit link group products

we are in a strong position to service all group insurance requirements of

corporate clients. An employees motivation level and productivity can increase

when he has a complete reassurance of a lasting security, most importantly,

financial security for his family and himself.

The group products come with a lot of value added services. The value-

added service includes actuarial services to estimate the liability of the

company. Companies will be allowed to shift funds across schemes. Data in

respect of the net asset value of the funds would be provided periodically.



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Fund and Miscellaneous Provisions Act) but even better alternative

Group Term Life Scheme.

Child Gain - Childrens policyRight from providing for customer childs education tosecuring a

bright future, tailor made to suit customer childs needs, covers it all.

Swarn Vishranti Retirement Plan

In addition to life insurance and Attractive tax benefits, this plan

enables customer to make adequate provisions for post retirement years

as well.

Risk care Pure Term Plan

A comprehensive plan which enables customer to provide financial

to their loved ones at the lowest possible cost. The only term plan in the

market to give a hospital cash benefit option & the facility to cover two

lives.

Lifetimes care Whole Life Plan

Whole life plan provides survival benefits at the age of 80, thereby

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

Invest Gain An Endowment Plan

This saving plan combines high protection (up to quadruple cover )

with a unique family income benefit



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Cash Gain Money Back Plan

Only money back plan that offers quadruple protection going upto

4 times the basic sum assured & family income benefit

Lifelong Gain

Regular income for customer and the added benefit of providing

for their loved ones too. A plan, which provides you whole life

protection with only 10 or 15 Years of premium contribution and

guaranteed survival, benefits.

Protector A mortgage Reducing Term Insurance Plan.

Perfect Plan to protect the family from the Repaying liability of

outstanding loans.

Unit Gain Easy Pension Choice of Regular Premium & Single

Premium

A premium investment linked deferred annuity policy. A plan,

which helps customer to take control of their future & ensures better

retirement benefits.

Unit Gain Life Pension Choice of Regular premium & single

Premium.

Designed to take care of customer retirement & insurance needs by

providing a comprehensive solution for a lifetime.



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NRI insurance All our life plans are available to NRIs

Unit Gain Plus Unmatched flexibility to suit customer changingneeds

A unique option of combing the protection of life insurance with

attractive prospects investing in securities. Offers High Premium

Allocation Rate and Lower Fund Management & Administration

Charges.

Unit Gain Plus SP

Protect customer loved ones and make their money grow faster

with the advantage of low Fund Management and Fund Administration

costs. Offers High Premium Allocation Rate with a one time premium

payment

Unit Gain

Amazingly flexible unit linked life insurance plan provides

customer the opportunity to participate in market linked return while

enjoying the valuable benefits of life insurance.

Unit Gain SP -Unit Linked single Premium

Single Premium with 100% allocation to enables customer to protect customer loved ones, while making customer money grow faster

Allianz Bajaj is poised for an accelerated growth in the market and has

already become the fastest growing private life insurance company in India.



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Allianz Bajaj has a wide plan India presence of office network in 156 cities of

the country and is aided with a strong and trained Agency network of over

27,000 agents. Allianz Bajaj has also forged strong Bancassurance and

Corporate Agency relationships and continues to build on new tie-ups for fasttrack growth and deep market penetration.

Allianz Bajaj has launched a slew of need-based products to cater to each

varied needs of the customer. Currently Allianz Bajaj has a product portfolio of

18 products and more need-based products are in the pipeline.

Minimum Premium:

Mode PremiumAnnual Rs. 10000/-Half Yearly Rs. 5000/-Quarterly Rs. 2500/-Monthly Rs. 1000/-

Bajaj Allianz Life Insurance

Is the fastest growing private life insurance company in India

Currently has over 3,00,000 satisfied customers

They have customer care centers in 155 cities with 28000 Insurance



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Consultant providing the finest customer service.

One of India's leading private life insurance companies

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.

Bajaj Allianz today has a network of 42 offices spread across the

length and breadth of the country. From Surat to Siliguri and Jammu to

Thiruvananthapuram, all the offices are interconnected with the Head Office at

Pune.

The Bajaj Allianz

Difference

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

economy / industry



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Internationally experienced core team, majority with local background

Fast, decentralized decision making

Long-term commitment to market and clients

Philosophy Understanding the customer's needs

Underwriting what they understand

Meeting the customer's requirements

Ensuring optimal coverage at lowest cost

Superior Technology

In order to ensure speedy and accurate processing of customers needs,

they have established world class technology, with renowned insurance

software, which networks all their offices and intermediaries

Using the Web, policies can be issued from any office across the country

for retail products

Unique, user friendly software developed to make the process of issue of

policies and claims settlement simpler (e.g. online insurance of marine

policy certificate)

Unique Forms of Risk Cover

Special PA cover for Amarnath Yatris

Film insurance

Event management cover



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Sports & Entertainment Insurance Package

Risk Management- Their Expertise

Their service methodology is tried, tested and proven the world over

and involves:

Risk identification: Inspections

Risk analysis: Portfolio review and gap analysis

Risk retention

Risk Transfer: To an insurer as well as reinsurer (as required)

Creation of need based products Ongoing dialogue and proactivity

Introduction to Bajaj Allianz unit linked product

For the generation of insurance seekers who thrived on insurance

policies with assured returns issued by a single public sector enterprise,

unit-linked insurance policies are revelation. In unit-linked policies,

premium is the key component. This policies are remarkably similar to



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mutual funds, in terms of structure and functioning; premium payments

made are converted into units and a net asset value(NAV) is declared.

Investors have the choice of enhancing their insurance cover, modifying

premium payments are even opting for a distinct asset allocation than the

one they originally opted for. Also if an eventuality were to occur, in case

of traditional products, the sum assured is paid along with accumulated

bonuses; conversely in unit-linked policies the insured is paid either the

sum assured or investment corpus whichever is higher.

Two factors were responsible for the advent of unit-linked on thedomestic insurance horizon.

First was the arrival of private insurance companies. This unit-

linked policies were one of the most significant innovations

introduces by private insurers.

Second factor that saw investors take to unit-linked policies was the

decline of assured return endowment plans.

These were two factors most instrumental in marking the

arrival of unit-linked policies; another factor that has helped their cause

is a booming stock market.

While this now appears as one of the primary reasons for their

popularity, they believe unit-linked policies have some fundamental

positives like enhanced flexibility and merging of investment and

insurance in a single entity that have really endeared them to

individuals.



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Difference between Unit-linked and Traditional life insurance policy

Unit-Linked policies TraditionalSum assured As a multiple of premium Known upfront, premium is

based on itInvestment Allocation to equities,

bonds, money market

depending on the option.

Larger allocation to bonds,

money market, smaller

equity allocation.Expenses Lower agent commissions,

higher fund management

charges.

Higher agent commissions

Flexibility High LowTransparency High LowLiquidity High LowTax benefits Available Available

METHODS OF DATA COLLECTION .

Primary Data

Primary data are the data that are collected to help solve a problem or

taken advantage of an opportunity on which a decision is pending. The mainmethod of collecting primary data is survey method there are different types of

survey technique for example personal interview, mail survey, Internet survey

and telephone survey.



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Primary data is first hand information that has been collected by the

researcher from the respondents of Bellary City through personal interview

method with the help of questionnaire. Analysis, interpretation, summery of

findings conclusion and recommendations are completely based on primarydata.

Secondary Data

Secondary data are data that were developed for some purpose other that

helping to solve the problem at hand. After identifying and defining the

research problem and determining specific information required to solve the

problem, the researcher task is to look for the type and sources of data which

may yield the desired results.

Secondary data in this research references made by the researcher with

other published sources. The present research will not be complete without

complete references to the relevant secondary data.

The sources of secondary data include the following.

Office Boucher

Internet

Data for the present research have been collected from various sources

but primary data in case of present research plays a vital role than the report in

bibliography in detail.

Sampling Process:

Sampling Population comprises of Sample Unit

Sample Unit:

Customers are Businessmen, Professional and Employee.



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Extent: BELLARY

Duration: 4 Weeks

Statistical Tool:

MS Excel is used.

Sampling Size:In the present research study, 100 samples are taken for the study to know

the Market Potential for Unit-linked Insurance Product in Bellary City

Sampling Plan:

To interview the sample people of total 100 in all parts of Bellary city.

Tools and techniques of Data Collection, Interpretation of Data.

For the purpose of collecting primary data personal interview method

with the help of questionnaire has been gathered from 100 Respondents in

Bellary City.

For the purpose of analyzing, processing, interpreting the data, simple

percentage analysis was used which has been presented in the tables followed

by an appropriate analysis and Bar charts .

ANALYSIS AND FINDINGS

Respondents occupation:

Sl. No. Occupation Respondents1 Businessman 412 Professional 73 Employee 52



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41

7

52

0

10

20

30

40

50

60

Businessman Professional Employee

Occupation

Respondents

Analysis:

It is clear from the above table and chart that most of the respondents are

employees and businessman.

1. Awareness level of the insurance company



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Analysis:

It is clear from the above table that 84% of the respondents are aware of

LIC policy, and 65% of Respondents are aware of Bajaj Allianz life.


Sl No. Company Respondents Percentage1 Bajaj Allianze life 65 65%2 HDFC Standard Life 57 57%3 Birla Sun Life 46 46%4 LIC 84 84%5 MetLife 23 23%6 Aviva 11 11%7 SBI life Insurance 31 31%8 ICICI Prudentail 65 65%


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Awarness

6557

46

84

23 1131

65

0102030405060708090

B a j a j

A l l i a n z

e l i f e

H D F C

S t a n d

a r d L i f e

B i r l a S

u n L i f e L I C

M e t L i f

e A v i

v a

S B I l i f

e I n s u r

a n c e

I C I C I

P r u d e n

t a i l

Company

R e s p o n

d e n

t s

2. Number of Respondents having Life Insurance Policy

Analysis:

It is clear from the above table that 69 % of the respondents were having

life insurance policy.


Sl. No. Response Percentage Respondents1 Yes 69% 692 No 31% 31


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69%

31%

Yes

No

The following table and graph shows that out of 69 respondents having

insurance in particular company



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11

7

37

14

0

5

10

15

20

25

30

35

40

Bajaj Allianz HDFCStandard

Life

LIC ICICIPrudential

Company

N o .

o f R e s p

o n

d e n

t s

Respondents

It is clear from the above chart that most of the customer having life

insurance in LIC due to their high knowledge and high awareness, and in

private life insurance ICICI Prudential and Bajaj Allianz life insurance


Company RespondentsBajaj Allianz 11HDFC Standard Life 7LIC 37ICICI Prudential 14


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company is capturing more market compared to HDFC Standard Life insurance

company.

3. Respondents preference towards investment

Analysis:

It is clear from above table that 29% of the respondents want to invest

their savings in Insurance, 32% of respondents went to invest their saving in

Postal and 25% of respondents went to invest their saving in Fixed deposit.


Sl No. Type Percentage Respondents1 Fixed Deposit 25% 432 Shares 8% 143 Mutual Funds 6% 104 Insurance 29% 505 Postal 32% 55


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Investment preference

25%

8%

6%

29%

32% Fixed DepositShares

Mutual Funds

Insurance

Postal

4. Type of Insurance Products preferred by 50 (i.e. 29%) respondents to

invest.



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Analysis:

It is clear from above table that 33 (i.e.66%) respondents prefer

Traditional Insurance products and 17 (i.e.34%) respondents prefer Unit-linked

products.

33

17

0

5

10

15

20

25

30

35

Tradit ional Unit -linked

Type of Inusrance

N o .

o f R e s p o n

d e n

t s

Respondents

5. Out of 17 respondents who preferred to invest in Unit-linked life

insurance prefer the following plans.


Sl No. Type of Insurance Products Respondents Percentage1 Traditional 33 66%2 Unit-linked 17 34%


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Analysis:

A) Businessman

Businessman

0

2

1

2

1

0

0.51

1.5

22.5

P e n s i o n

P l a n

W h o l e L

i f e P l a

n

E n d o w m e

n t P l a n

M o n e y b a

c k P l a

n

C h i l d r e n

P l a n

Plans

R e s p o n

d e n

t s

Businessman

From the above Chart it is clear that out of 6 businessmen, they go for

Whole life insurance plan and Money Back Plan.

B) Professional


Sl. No. Plans Businessman Professional Employee Total1 Pension Plan 0 1 3 4

2Whole LifePlan 2 0 0 2

3EndowmentPlan 1 1 1 3

4Money backPlan 2 0 1 3

5ChildrenPlan 1 1 3 5

Total 6 3 8 17


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Professional

1

0

1

0

1

00.20.4

0.60.8

11.2

P e n s i

o n P l a

n

W h o l e

L i f e P

l a n

E n d o w

m e n t P

l a n

M o n e y

b a c k

P l a n

C h i l d r

e n P l a

n

Plans

R e s p

o n

d e n

t s

Professional

From the above Chart it is clear that out of 3 Professional, they give

importance for Pension plans, Endowment plans and Children plan.

C) EmployeeEmployee

3

0

1 1

3

00.5

11.5

22.5

33.5

P e n s i o

n P l a n

W h o l e

L i f e P

l a n

E n d o w

m e n t P

l a n

M o n e y

b a c k

P l a n

C h i l d r

e n P l a

n

Plans

R e s p o n d

e n

t s

Employee

From the above Chart it is clear that out of 8 Employee, they go more for

Pension plans and Children plan.



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Respondents

3

6

1

4

2

1

0

1

2

34

5

6

7

Singlepay

5 years 10 years 15 years 20 years morethan 20years

Respondents

7. Frequency of payment of premium preferred by respondents



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Respondents

3

4

7

3

Annually

Half yearly

Quarterly

Monthly

Premium amount:


Sl. No. Period Respondents Percentage1 Annually 3 16%2 Half yearly 4 22%3 Quarterly 7 43%4 Monthly 3 19%


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Sl. No. Type Respondents1 10000-20000 32 5000-10000 43 2500-5000 74 1000-2500 3

3

4

7

3

0

1

2

3

4

5

6

7

8

10000-20000 5000-10000 2500-5000 1000-2500

Income Range

R e s p o n

d e n

t s

Respondents

Analysis:

From the above table and graph it is clear that, respondents preferring

quarterly premium payment will also ready to pay premium amount from Rs.

2500-5000 quarterly includes Employee and professional.

Most of the Businessman and Professional prefer Annually or Half yearly

premium payment who also ready to pay premium amount from Rs. 10000-

20000 annually or 5000-10000 half yearly.



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8. Importance given by respondents for availing loan facility.

Analysis:

It is clear from above table that most of the respondents expect loan

facility and responded as very important.

42

8

0 0 0

0

5

10

15

20

25

30

35

40

45

Veryimportant

Important Average LessImportant

Not at allImportant

Respondents


Sl. No. Scale Respondents Percentage1 Very important 42 84%2 Important 8 16%3 Average 0 04 Less Important 0 05 Not at all Important 0 0


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9. Risk level preferred by respondents while investing in life insurance

products.

Analysis:

The above table shows that the risk level is high.


Sl. No. Scale Respondents Percentage1 Very High 9 18%2 High 22 44%3 Moderate 13 26%4 Low 6 12%5 Very Low 0 0


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9

22

13

6

00

5

10

15

20

25

Very High High Moderate Low Very Low

Respondents

10. Riders preferred by respondents while investing in life insurance products.



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Respondent

18

9

1

814

02468

101214161820

F a m i l y I n c o m e

B e n e f i t

C o m p r e h e n s i v e

A c c i d e n t P r t

.

B e n e f i t

T e r m

C o v e r

B e n e f i t

c o m p r e h e n s i v e

A c c i d e n t P r t

.

B e n e f i t

H o s p i t a l C a s h

B e n e f i t

R i d e r

Respondent


Sl. No Riders Respondents Percentage1 Family Income Benefit 18 35%2 Comprehensive Accident Prt. Benefit 9 18%3 Term Cover Benefit 1 2%4 Critical illness Benefit 8 16%5 Hospital Cash Benefit 14 29%


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FINDINGS AND SUGGESTIONS

Based on the response received from the Respondents and findings of the

study, the following Suggestions are made for the capturing market potential

for unit-linked products of the BAJAJ ALLIANZ LIFE INSURANCE CO.

LTD.

1. As LIC is having more awareness and also ICICI Prudentialis having equal awareness to Bajaj Allianz life insurance company ltd. in

Bellary, it should increase awareness by increasing agents and through more

advertisements.

Awareness of Bajaj Allianz life insurance company ltd. in Bellary

is good compared to its competitor like HDFC Standard life, Birla sunlife,

etc. so through increasing agents and through more advertisements it helpscompany to increase awareness and increase its market share.

2. Market Share of Bajaj Allianz life insurance is less

compared to its main competitor like LIC and ICICI Prudential. So to

capture more market share, the company should concentrate to provide easy

loan and at minimum level of risk which is the most important factor

considered by most of the respondents.

3. As it is found that 50 potential customers are ready to invest

in insurance, but most of (33) customers preferring traditional life insurance

products compared to unit-linked life insurance products i.e. (17) customers.



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This is due to customers having more knowledge about traditional life

insurance products. So to attract these 33 customers company should

provide more knowledge about the unit-linked life insurance products and

their related risk factors and other facility.

4. Individual having their own plans for their family and its

future, based on their Occupation and their risk level they carry in their life.

As it found that most of the employee go for Pension

plan and Children plan, so Bajaj Allianz life insurance co. should

concentrate to sell this kind of plans more to the Employees.

And also found that most of the Businessmen go for

Whole Life plan and Money back plan, due to high risk involved

in business and huge investment in business, so Bajaj Allianz life

insurance co. should concentrate to sell this kind of plans more to

the Businessmen.

There is no specific plan for Professional as compared to

Businessmen and Employee, so Bajaj Allianz life insurance co.

should plan to attract this customer.

5. Most of the customer prefer Family Income Benefit and

Hospital Cash Benefit as Riders compared to other riders. So The Company

Rider facility should concentrate on this type of benefits to attract customers

and increase its market share.

6. Unlike traditional insurance products, company should make unit-linked

plans more transparent, flexible and easy to understand the customers.



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Conclusion:

While there is no specific type of person buying unit-linked products, the

consumer at any level is most comfortable if he can follow what is happening

with his investments or contributions.

When customers are looking at a long-term plan, there are always factors

that will change from time to time to meet any challenges. Also, plans change

so that the company can offer some amount of customization. Among other

things, they offer to add the cover to the policy, add riders when necessary, and

change the investment structure. They also let customers choose from different

fund options on the investment without compromising on the basic product.

I believe that ULIPs are best suited for those who have a conceptual

understanding of financial markets and are genuinely looking for a flexible,

long-term savingscum-insurance solution.



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BIBLIOGRAPHY

Text Books

1. Marketing Management : Philip-Kotler

2. Marketing Research : Donald Tull & Hawkins

News Papers & Magazines

1. Business Line

2. Business Standards

3. Business India

4. Business world

Web Sites

1. www.bajajallianzlife.com

Bajaj Unit Linked

Documents

Transcript of Bajaj Unit Linked