Hemant New Project

7/30/2019 Hemant New Project

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TO STUDY THE LEVEL OF CUSTOMER SATISFACTION TOWARDS BAJAJ

ALLIANZ.

A PROJECT REPORT

Submitted to the

S.R.M SCHOOL OF MANAGEMENT

In partial fulfillment of the requirements

for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

By

S. VIJAYABALAN

(Reg No:35104375)

Under the guidance of

Mr.YAASEEN MASVOOD

S.R.M. INSTITUTE OF SCIENCE AND TECHNOLOGY

(Deemed university)

S.R.M. ENGINEERING COLLEGE

MAY 2006


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BONAFIDE CERTIFICATE

This is to certify that the project titled TO STUDY THE LEVEL OF

CUSTOMER SATISFACTION TOWARDS BAJAJ ALLIANZ An approved

cord of work done by S. VIJAYABALAN. Register Number 35104375 in the partial

lfillment for the award of degree of master of business Administration during the year

2004-2006.

Guide: Head of the Department

ate:

ubmitted for the University examination held on

ternal Examiner External Examiner


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ACKNOWLEDGEMENT

I am thankful and grateful to our beloved principal Mr.R.Venkataramani, for

ing me an opportunity to enhance learning through immense practices provided within

the institution.

I must however specially acknowledge my indebtedness to Dr. Jayshree suresh,

an, SRM School of Management who has provided me a platform to prove my best

towards the successful completion of project.

I extend my gratitude to Mr.Yaaseen Masvood, Lecture for assisting me with

valuable suggestions.

I shall remain grateful to Mr. Ganesh.V.Aranala, Senior Branch manager-Bajaj

Allianz, Chennai for giving me the opportunity to conduct the study.


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TABLE OF CONTENTS

DescriptionChapter Page. No

1. Abstract 01

2. Objectives 02

3. Company profile 04

4. Industry profile 07

5. Product profile 19

6. Research Methodology 23

7. Research Tools 24

8. Tabulation and Chart 26

9. Chi-square 41

10. Findings 43

11. Suggestions 44

12. Conclusion 45

13. Questionnaire 46

14. Bibliography 48

Abstract

The aim of the study is to understand the level of customer satisfaction

ards the Bajaj Allianz .The study apart from knowing the customers satisfaction alsouses on the scope and growth of insurance sector in Chennai where the study is being

ducted. The project focusing on Bajaj Allianz insurance companys branch in Chennai


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ured to successfully take up the research on knowing the customer and their views

ut the life insurance sector.

This study will help us to get a better picture as to what customers perceive

ut insurance plans and their awareness about the same. This study will help us in

erstanding what the customers prefer really through these insurance plans. Also if the

tomers prefer these insurance plans, the study brings to light the customer

ectations about the same.

The sample was decided based on simple random sampling method. The

ponses were recorded by conducting a survey with the help of a questionnaire. The

stionnaire has been designed in such a way so as to bring out the most accurate data,

ch will enable the study to get the closest vicinity of its objectives.

The data collected from the survey has been appropriately analyzed and has

n interpreted in a meaningful way to offer some suggestions and recommendations.

data has also been put through a series of statistical tools that will close down the

ance on the objective of the study.

Several measures have been taken to keep the study on course without any

iations. There are certain limitations to the study that involved two primary factors

t and time. Yet the study has been done reaching close to the greatest possible extentts primary objective.

Objectives

Primary objective

The primary objective of the study is to find out the study on the

tomer satisfaction level of Bajaj Allianz life insurance

Secondary objective

To study the socio economic variables that influences the insuring public to take

up the policies.

To study the awareness of insurance plans in Bajaj Allianz


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o study the effectiveness of advertisement of Bajaj Allianz

o study the customer perception of life insurance

o study the efficiency of Bajaj Allianz being a private organization.

Limitations of the study

The study suffers from a few limitations, which will have to be kept in mind for

findings to be fairly interpreted

he recommendations are subjected to time and cost constraint

ampling has its own limitations, which would have resulted in minor errors

here can be errors due to bias of respondents

he size of the sampling was not big enough to arrive at strong conclusion.

The results should be interpreted with the above limitations in perspective.

Need of insurance

Growing individualistic ideas are fast penetrating the Indian minds and the

t family and caste system are fast cracking. Insurance has many benefits in store for

m. It saves their families from misery, chaos, and destitution. Insurance lays the

ndation on which the economic structure of life can be gradually and safely built up

sustained to the end. Uncertainties to the individual are made certainties for the

up.

Scope of Insurance

The opening up of the insurance sector to private companies has made

ilable more product and world class service to Indian customer. To quote Mr. n.

gachari former chairman of IRDA all these years the nationalized insurance have

n bleeding us the future for liberalized insurance sector looks bright with a

nitoring agency committed to promoting the interest of the customers. According toiness world, the sheer size and potential of Indian insurance market has attracted

ny new players. Even going by govt estimates there are about 312 million middle class

customers with financial resources to purchase insurance products, only 2.5 % of this is

covered by any form of insurance

Sales agents will remain the prime distribution channel, and according to

some estimated insurance could finally end up creating over 20,000 jobs for sales

representatives alone. The IRDA has already accredited 14 insurance training schools

spread over a few major cities of our country, which would churn out about some 1500

students annually.

So the scope of the insurance sector is wide and open where there a lot of

opportunities for the sector to grow in the next couple of years. More and more private

companies with international experiences are entering into the market with knowing the

scope that is available. Moreover each and every individual have started realizing the

importance of life insurance in their life as the life is considered to be really unexpected

in the world we live today.

Company Profile

Allianz Group

Allianz group is one of the worlds leading insurers and financial service

viders. Founded in 1890 in Berlin, Allianz is now present in over 70 countries withost 174000 employees. At the top of the international group is the holding company,

anz AG, with its head office in Munich, Germany.

Allianz group provides more than 60 million customers worldwide with a

mprehensive range of services in the areas of

Property and Casualty Insurance

Life and Health Insurance

Asset Management and Banking

Allianz AG- A Global Financial Powerhouse


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Worldwide 2nd by the gross written premiums- Rs 4, 46,654 cr.

3rd largest Assets Under Management (AUM) and largest among insurance

companies AUM of Rs 51, 96,959 cr.

12th largest corporation in the world

49.8% of global business from life insurance

Established in 1890, 110 years of insurance expertise

70 countries, 173,750 employees world wide

Bajaj Group

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is

largest manufacturer of two wheelers and three wheelers in India and one of the

est in the world. A household name in India, Bajaj auto has a strong brand image and

nd loyalty synonymous with quality and customer focus.

A Strong Indian Brand - Hamara Bajaj

One of the largest 2 and 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 is one of the largest auto finance cos in India

Rs 4,744 cr. Turnover and profits of 538 cr. In 2002 2003

It has joined hands with Allianz to provide the Indian consumers with a distinct

option in the terms of life insurance products


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a promoter of Bajaj Allianz Life Insurance Co.Ltd, Bajaj Auto has the following to

er

Financial strength and stability to support the insurance business

A strong brand equity

A good market reputation as a world class organization

An extensive distribution network

Adequate experience of running a large organization.

Bajaj Allianz Life Insurance Co.Ltd

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

glomerates- Allianz, one of the worlds largest insurance company, and Bajaj Auto,

of the biggest 2 and 3 wheeler manufacturers in the world.

Bajaj Allianz Life Insurance

It is the fastest growing private life insurance company in India

Currently has over 4,40,000 satisfied customers

We have a presence in more than 500 locations with 60000 insurance consultants

providing with the finest customer service

The leading private life insurance company as per Feb. 06 rankings


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INDUSTRY PROFILE

Introduction

In 1993, Malhotra Committee, headed by former Finance Secretary and

I Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and

ommended its figure direction. The Malhotra committee was set up with the objectiveomplementing the reforms initiated in the financial sector.

The reforms were aimed at creating a more efficient and competitive

ncial system suitable for the requirements of the economy keeping in mind the

ctural changes currently underway and recognizing that insurance in an important part

he overall financial system where it was necessary to address the need for similar

orms.

The low penetration can be explained in terms of non-emphasis on

tomer awareness, training issues of agents and a low tax base.

The heavy capital investments in terms of the distribution networks, hiring

gents and the long gestation periods of 7-10 years provide entry barriers for the

ustry.

The key industry drivers are related to lifestyle issues in terms ofceiving insurance as a savings instrument rather than for risk cover, need based

ing, quality of service and customer awareness. The future growth areas could be in

m assurance, pension and health insurance. In terms of the distribution channels, there

emendous opportunity with banks and finance companies and by making the channel

driven. With increased commoditization of insurance products, brand building is going

lay a vital role. The provisions of the IRDA bill acknowledge a many issues related to


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urance permia that will present it from seeping out of the country. The IRDA bill

vides for three levels of players Insurance Company, Insurance brokers and

urance agent.

In the life Insurance segment the Life Insurance Corporation of India

C) is the major player. The LIC has 2050 branches. It is constituted in to seven

nes. Currently, there are 5,60,00 LIC agents in India.General Insurance in another segment, which has been growing at a faster

e. But as peer the current comparative statistics, the general insurance premium has

n lower than life insurance. General Insurance premium as a percentage GDP was a

e 0.5 per cent in 1996.

In the General Insurance Business, General Insurance Corporation (GIC)

its four subsidiaries viz, New India Insurance, Oriental Insurance, National Insurance

United India Insurance, are doing major growing at a rte of 19 per cent per year

urance is a colossal sector in India that is growing at a speedy rate of 15-20%. The

urance sector is approximately 450 billion yet 80 percent of the population in India is

insured. This gives you a peek into the huge growth opportunity that exists for this

ment. The insurance business in India mainly consists of two main players, the Life

urance Corporation (LIC) and General Insurance Corporation (GIC). Almost 100sional offices and 2000 branch offices are functional for LIC. As LIC caters to life

urance, health insurance, property and accident insurance it needs an increasing

mber of employees.

The other player GIC undertakes motor, marine, personal

ident and fire insurance. Moreover it has four subsidiaries a) Oriental Insurance, b)

ted India Insurance, c) New India Assurance, and d) National Insurance. Insurance

mpanies in India have a deep-rooted history. It all began in 1818 when Oriental Life

urance Company in Calcutta was established. From then on insurance was scattered

oss the country. It was an unorganized sector. Then in 1950, the entire insurance

ment was nationalized. After achieving freedom, the insurance sector gained

mentum. In 1956 the government of India consolidated 240 private life insurers and

vident societies and this was how LIC came to life. The justification to the

onalization of the life insurers was that the government would reap the necessary


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funds that were required for industrialization. The general insurance industry still

remained in the hands of the private sector till 1972 and was then nationalized.

LIC adds about 7 percent to the countrys GDP. With IRDAs regulation

not less than 15 percent of funds from the insurance companies are said to fill the coffers

of infrastructure and social sectors. Thus proving vital funds to the countrys growth.

Infrastructure of the country bears risks that are of a long-term character. They include

political instability, geological hindrances, gestation period and illiteracy. The long tem

funds provided by Life Insurance of India not only cover these risks but also helpsecuring a brighter future for the country. Besides infrastructure the insurance companies

in India are vital for ones saving purpose. In the beginning insurance was looked at as a

tax-benefit investment. Slowly, however the mindset of the common man is changing.

Life insurance is now looked on as investment vehicle. With the introduction of private

players in the sector there has been more transparency and flexibility in the sector.

Private players have procured almost 9 percent of the insurance segment even though the

coveted policies like endowment and money back still lay with the government.

Better services, individual attention and pure transparency have given the

private sector an upper hand. But with a huge unorganized market in India yet to tap the

insurance companies in India have a voluminous market to explore.

MAJOR POLICY CHANGES

Reforms In Insurance Sector

Insurance sector has been opened up for competition from Indian privateurance companies with the enactment of Insurance Regulatory and Development

thority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance

gulatory and Development Authority (IRDA) was established on 19th April 2000 to


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LIFE INSURERS Websites

protect the interests of holder of insurance policy and to regulate, promote and ensure

orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of

private players into the insurance market which was hitherto the exclusive privilege of

public sector insurance companies/ corporations. Under the new dispensation Indian

insurance companies in private sector were permitted to operate in India with the

following conditions:

Company is formed and registered under the Companies Act, 1956;

The aggregate holdings of equity shares by a foreign company, either by itself or

ough its subsidiary companies or its nominees, do not exceed 26%, paid up

ity capital of such Indian insurance company;

The company's sole purpose is to carry on life insurance business or general

insurance business or reinsurance business.

The minimum paid up equity capital for life or general insurance business is

Rs.100 crores.

The minimum paid up equity capital for carrying on reinsurance business has

been prescribed as Rs.200 crores.

The Authority has notified 27 Regulations on various issues which include

Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance,

Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure,

Protection of policy holders' interest etc. Applications were invited by the Authority with

effect from 15th August, 2000 for issue of the Certificate of Registration to both life and

non-life insurers. The Authority has its Head Quarter at Hyderabad.

Insurance companies

RDA has so far granted registration to 12 private life insurance companies and 9

eral insurance companies. If the existing public sector insurance companies areuded, there are currently 13 insurance companies in the life side and 13 companies

rating in general insurance business. General Insurance Corporation has been

roved as the "Indian reinsurer" for underwriting only reinsurance business. Particulars

he life insurance companies and general insurance companies including their web

ress is given below:

Public Sector

Life Insurance Corporation of India www.licindia.com

Private Sector

anz Bajaj Life Insurance Company Limited www.allianzbajaj.co.ina Sun-Life Insurance Company Limited www.birlasunlife.com

FC Standard Life Insurance Co. Limited www.hdfcinsurance.com

CI Prudential Life Insurance Co. Limited www.iciciprulife.com

G Vysya Life Insurance Company Limited www.ingvysayalife.com

x New York Life Insurance Co. Limited www.maxnewyorklife.com

tLife Insurance Company Limited

www.metlife.com

Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com

Life Insurance Company Limited www.sbilife.co.in

TA AIG Life Insurance Company Limited www.tata-aig.com

MP Sanmar Assurance Company Limited www.ampsanmar.com

GENERAL INSURERS

Public Sector

ional Insurance Company Limited www.nationalinsuranceindia.com

w India Assurance Company Limited www.niacl.com

ental Insurance Company Limited

www.orientalinsurance.nic.in

United India Insurance Company Limited www.uiic.co.in


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Private Sector

Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in

ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com

IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in

Reliance General Insurance Co. Limited www.ril.com

Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com

TATA AIG General Insurance Co. Limited www.tata-aig.com

Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com

Export Credit Guarantee Corporation www.ecgcindia.com

HDFC Chubb General Insurance Co. Ltd.

General Insurance Corporation of India www.gicindia.com

REINSURER


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Protection of the interest of policy holders

IRDA has the responsibility of protecting the interest of insurance

cyholders. Towards achieving this objective, the Authority has taken the following

ps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to

vide for: policy proposal documents in easily understandable language; claims

cedure in both life and non-life; setting up of grievance redressal machinery;

edy settlement of claims; and policyholders' servicing. The Regulation also

vides for payment of interest by insurers for the delay in settlement of claim.

The insurers are required to maintain solvency margins so that they are in a

ition to meet their obligations towards policyholders with regard to payment of

ms.

It is obligatory on the part of the insurance companies to disclose clearly the

efits, terms and conditions under the policy. The advertisements issued by the

urers should not mislead the insuring public.


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All insurers are required to set up proper grievance redress machinery in their

head office and at their other offices.

The Authority takes up with the insurers any complaint received from the

cyholders in connection with services provided by them under the insurance

tract.

INSURANCE SECTOR IN INDIA

The insurance sector in India has come a full circle from being an open

mpetitive market to nationalisation and back to a liberalised market again. Tracing the

elopments in the Indian insurance sector reveals the 360-degree turn witnessed over a

od of almost two centuries.

A brief history of the Insurance sector

The business of life insurance in India in its existing form started in India

he year 1818 with the establishment of the Oriental Life Insurance Company in

cutta.

Some of the important milestones in the life insurance business in India are:

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

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with

the objective of protecting the interests of the insuring public.

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

central government and nationalised. LIC for med by an Act of Parliament, viz.


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Insurance sector reforms:

LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of

India.

The General insurance business in India, on the other hand, can trace itsts to the Triton Insurance Company Ltd., the first general insurance company

blished in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact

all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised

the general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental

Insurance Company Ltd. and the United India Insurance Company Ltd. GIC

incorporated as a company.


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In 1993, Malhotra Committee headed by former Finance Secretary and

I Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and

ommend its future direction.

The Malhotra committee was set up with the objective of complementing

reforms initiated in the financial sector. The reforms were aimed at "creating a more

cient and competitive financial system suitable for the requirements of the economy

ping in mind the structural changes currently underway and recognizing that

urance is an important part of the overall financial system where it was necessary toress the need for similar reforms"

In 1994, the committee submitted the report and some of the key

ommendations included:

1) Structure

Government stake in the insurance Companies to be brought down to 50%

vernment should take over the holdings of GIC and its subsidiaries so that these

sidiaries can act as independent corporations

All the insurance companies should be given greater freedom to operate

2) Competition

vate Companies with a minimum paid up capital of Rs.1bn should be allowed to enter

industry

No Company should deal in both Life and General Insurance through a single entity


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eign companies may be allowed to enter the industry in collaboration with the

mestic companies

Postal Life Insurance should be allowed to operate in the rural market

Only One State Level Life Insurance Company should be allowed to operate in each state

3) Regulatory Body

The Insurance Act should be changed

An Insurance Regulatory body should be set up

ntroller of Insurance (Currently a part from the Finance Ministry) should be madeependent

4) Investments

ndatory Investments of LIC Life Fund in government securities to be reduced from

% to 50%

C and its subsidiaries are not to hold more than 5% in any company (There current

dings to be brought down to this level over a period of time)

5) Customer Service

LIC should pay interest on delays in payments beyond 30 days

Insurance companies must be encouraged to set up unit linked pension plans

mputerisation of operations and updating of technology to be carried out in the

urance industry The committee emphasized that in order to improve the customer

vices and increase the coverage of the insurance industry should be opened up tompetition.


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mily Income Benefit (FIB)

e Ultimate Protection - For Your Loved Ones

You can select the unique Family Income Benefit from Bajaj Allianz that

ures total financial protection for your loved ones. In case of death or accidental total

manent disability, a guaranteed monthly income of 1% of the sum assured (12% per

num) is paid till the end of the policy term or at least for a period of 10 years,

chever is higher. Moreover, all future premiums are waived.

But at the same time, the committee felt the need to exercise caution as any

ure on the part of new players could ruin the public confidence in the industry. Hence,

as decided to allow competition in a limited way by stipulating the minimum capital

uirement of Rs.100 crores. The committee felt the need to provide greater autonomy

nsurance companies in order to improve their performance and enable them to act as

ependent companies with economic motives. For this purpose, it had proposed settingan independent regulatory body.

PRODUCT PROFILE

Cash Gain

Your needs for insurance protection will vary at different stages of life.metimes, you may need to release a part of your savings from insurance commitments

utilize it for other pressing needs. The Bajaj Allianz Cash gain is ideal for those who

nt to reap and enjoy the benefits of their life insurance policy at regular intervals

ng their lifetime.

Bajaj Allianz Cash gain is a specially designed plan that offers a host of

itional benefits you may choose to develop a sound financial portfolio for your

ily. Among the many unique benefits, the most significant is the Family Income

nefit (FIB) that sustains the family by compensating the loss of regular income due to

th or permanent disability.

ailable as:

ajaj Allianz Cash gain Economy: The basic package

ajaj Allianz Cash gain Gold: With double protection

ajaj Allianz Cash gain Diamond: With triple protection

ajaj Allianz Cash gain Platinum: With quadruple protection

A Uniform Life Cover

Besides giving you regular Cash Benefits, this plan takes care of your life

urance needs also. On death during the term of policy, the following would be paid

spective of the Cash Benefits already paid:

ajaj Allianz Cash gain Economy: Sum Assured + Bonuses

ajaj Allianz Cash gain Gold: Double Sum Assured + Bonuses

ajaj Allianz Cash gain Diamond: Triple Sum Assured + Bonuses

ajaj Allianz Cash gain Platinum: Quadruple Sum Assured + Bonuses

Choice of Terms

Keeping your convenience in mind, we offer you the widest range of terms:

20, 25 and 30 years.

Additional Protection for you and your family

You have the option to add the following additional benefits, providing total

tection against uncertainties.


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Comprehensive Accident Protection

This benefit provides comprehensive cover in case of an accident. It

mprises of:


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idental Death Benefit

Accidents are always sudden and sometimes fatal. You can't lessen the

otional shock, but you can certainly soften the financial one. Bajaj Allianz Accidental

ath Benefit gives the loved ones something to start with after the permanent loss of

ome by paying an amount equal to the Sum Assured. (Subject to a maximum of Rs.

00,000/- under all policies with Bajaj Allianz taken together).

Accidental Permanent Total/Partial Disability Benefit

Accidents are unpredictable, and so are the consequences. They may lead

disability - partial or total. This Benefit provides a financial cushion against such

fortunes. You will get 50% of the Sum Assured in case of partial disability and 100%

ase of total disability. (Subject to a maximum of Rs. 25, 00,000/- for partial and Rs.00,000/- for total disability under all policies with Bajaj Allianz taken together).

Waiver of Premium Benefit

An accident may lead to permanent total disability, limiting ones ability

arn. Bajaj Allianz Waiver of Premium benefit is a helping hand when one needs it

st. It waives off all future premiums while keeping the valuable life insurance cover

e, thus enabling you to live up to your commitments.

tical Illness Benefit (CI)

Some illnesses are critical. They not only alter ones life's pattern but

o result in a financial drain. Bajaj Allianz Critical Illness Benefit softens the impact on

family by paying out the Critical Illness Benefit under the plan immediately, while

er policy benefits continue (excluding Hospital Cash Benefit). We cover 11 critical

esses. You have the flexibility of choosing Critical Illness cover up to the basic Sumured selected by you (Minimum Rs.50, 000).


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Hospital Cash Benefit (HC)

The worry of settling hospital bills (room charges) adds to the trauma of

pitalization. Bajaj Allianz Hospital Cash Benefit reduces this financial burden and

ps recovery with peace of mind.

Flexibility in Coverage

At Bajaj Allianz, we believe in offering benefits and not just products. We

ize that you are unique and your needs for insurance vary with time. We therefore

r you the flexibility of inclusion of coverage or exclusion of coverage at each policy

iversary, subject to conditions relating to such inclusions and exclusion.

You have the flexibility to change your package and move to a package

provides lower protection at each policy anniversary (premiums would be adjusted

ordingly). Comprehensive Accident Protection can be included and excluded at

h policy anniversary. Family Income Benefit, Critical Illness Benefit and Hospital

h Benefit can be taken at inception only. FIB, CI & HC can be reduced or excluded

sequently at any policy anniversary. Once reduced or excluded, they cannot be

eased or included subsequently.

Increase in risk coverage

Every added responsibility in your life calls for increase in your risk

er. We provide you the option to increase coverage up to 50% of the basic Sum

ured on each of the following happy moments in your life

our marriage

he birth of your first childhe birth of your second child


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This additional coverage is not subject to underwriting. The option should

xercised within 90 days of the occurrence of the said event.

Research Methodology

Sampling factors

Data collection

Primary data

The primary data for this study is collected with the objective in mind a study on

customer perception of Bajaj Allianz life insurance

Secondary data

The secondary data for the study is collected with the information that is being

lished in journals and magazines and from the internet.

Sample collection

The data required for the study is collected with the help of questionnaire. These

stionnaires are handed over to the customers and asked to get it filled up. The data is

rpreted from the information that is incurred from the questionnaire

Sample area


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The area where the data is collected is in and around Chennai city. The respondents

the people who reside in Chennai

Sample size

Due to the limitation of time and scope of the study the number of respondents from

ch the data is collected is 150.

Research Tools

Tools of analysis

Analytical techniques are used to obtain findings and arrange information

logical sequence from the data collected. After tabulation of the data, researcher used

following quantitative techniques

1. Percentage Analysis

The data that is obtained is from the questionnaire is analyzed

through percentage analysis. The results are shown on the percentage basis

2. Graphs

Graphical representations are used to show the results in simple form.

graphs are prepared on the basis of data that is received from the percentage analysis

3. Chi Square Test

The research methodology tool chi square test is being taken as a

in order to bring out the final result by analyzing the factors. The end result for the

dy is being derived from the using this research tool.


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Chi square test is an important non parametric test and as such no test is

essary in respect of the population. We require only the degree of freedom (implicitly

he course the size of the sample) for using this test. As anon parametric test chi square

be used (i) as a test of goodness to fit and (ii) as a test of independence. Since the

archer used test of independence only the details about the independence is given

ow

Test of independence

The 2 test is used to test whether there is a significant difference between the

observed number of responses in each category and the expected number of responses for

such category under the assumption of null hypothesis. It enables us to explain whetheror not two attributes are associated with each other. In order that we may apply the chi

square test either as a test to judge the significance of association between attributes, it is

necessary that the observed as well as theoretical distribution must be adjusted to give the

same total frequency as we find in case of observed distribution. Karl Pearson developed

a test for testing the significance of discrepancy between experimental values and the

theoretical values obtained under some theory of hypothesis. This is known as test of

goodness of fit. Karl Pearson proved that the statistics is used to test whether difference

between observed and expected frequencies are frequent.


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Table no 4.1 Occupation of the respondents

Occupation Respondents Percentage

Employed 50 50

Self employed 50 50

Total 100 100

Employed

Self employed50%50%

Figure 4.1 Occupation of the respondents

Inference

50% of the respondents are employed.

50% of the respondents are self employed


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Table no 4.2 Income level of the respondents

Income level Respondents Percentage

5000-10000 38 38

00-15000 23 23

00-20000 26 26

ove 20000 13 13

Total 100 100

10

20

30

40

0

5000-10000 10000- 15000- Above

2000015000 20000

INCOME LEVEL

Figure 4.2 Income level of the respondents

Inference

8% of the respondents have income between 5000 10000

3% of the respondents have income between 10000 - 15000

6% of the respondents have income between 15000 20000

3% of the respondents have income above 20000


30/49

Table no 4.3 Importance of insurance

Essential Respondents Percentage

Yes 87 87

No 13 13

Total 100 100

100

20

40

60

80

0

Yes No

INSURED

Figure 4.3 Importance of insurance

Inference

7% of the respondents feel that insurance is essential.

3% of the respondents feel that insurance is not essential.


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Table no 4.4 Reason for importance of insurance

Reason Respondents Percentage

Premium 29 29

Tax 25 25

Security 34 34

Others 12 12

Total 100 100

40

30

20

10

0

Premium Tax Security Others

REASON

Figure 4.4 Reason for importance of insurance

Inference

9% of the respondents feel insurance is important because of premium.

5% of the respondents feel insurance is important because of tax benefit.

4% of the respondents feel insurance is important because of security.2% of the respondents feel insurance is important because of other reasons.


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Table no 4.5 Insurance companies that the respondents prefer

Insurance

companies

Respondents Percentage

C 33 33

aj Allianz 29 29

CI Prudential 31 31

FC 12 12

Total 100 100

40

30

20

10

0LIC Bajaj ICICI HDFCAllianz

Prudential

INSURANCE COM PANIES

Figure 4.5 Insurance companies that the respondents prefer

Inference

3% of the respondents would like to further invest in LIC.

9% of the respondents would like to further invest in Bajaj Allianz.

1% of the respondents would like to further invest in ICICI.

2% of the respondents would like to further invest in HDFC.


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Table no 4.6 Media through which awareness of Bajaj Allianz

Media Respondents Percentage

wspaper 22 22

evision 55 55

dio 14 14

ardings 09 09

Total 100 100

10

203040

50

60

0

Newspaper Televi sion Radio Hoardings

MEDIA

Figure 4.6 Media through which awareness of Bajaj Allianz

Inference

2% of the respondents are aware through newspaper.

5% of the respondents are aware through television.

4% of the respondents are aware through radio.

9% of the respondents are aware through hoardings.


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Table no 4.7 Awareness of various life insurance plan of Bajaj

Allianz

Awareness Respondents Percentage

Yes 78 78

No 22 22

Total 100 100

Yes

No

Figure 4.7 Awareness of various life insurance plan of Bajaj Allianz

Inference

8% of the respondents are aware of Bajaj Allianz Life Insurance.

2% of the respondents are not aware of Bajaj Allianz Life Insurance.


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Table no 4.8 Response of respondents about Bajaj Allianz life insurance

plans

Response Respondents Percentage

cellent 15 15

od 52 52

isfactory 29 29or 04 04

Total 100 100

102030

4050

60

0

Excellent Good Satisfac tory Poor

RESPONSE

Figure 4.8 Response of respondents about Bajaj Allianz life insurance plans

Inference

5% of the respondents feel that the insurance plans are excellent.

2% of the respondents feel that the insurance plans are good.

9% of the respondents feel that the insurance plans are satisfactory.

4% of the respondents feel that the insurance plans are poor.


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Table no 4.9 Awareness of Bajaj Allianz life insurance

plans

Insurance Plans Respondents Percentage

h Gain 35 35

est Gain 32 32

ld Gain 29 29

ers 04 04

Total 100 100

10

2030

40

0

Cash Gain Invest Gain Child Gain Others

PLANS

Figure 4.9 Awareness of Bajaj Allianz life insurance plans

Inference

5% of the respondents are aware of the cash gain plans of Bajaj Allianz.

2% of the respondents are aware of the invest gain plans of Bajaj Allianz.

9% of the respondents are aware of the child gain plans of Bajaj Allianz.

4% of the respondents are aware of the other plans of Bajaj Allianz.


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Table no 4.10 Forms through which respondents came to know Bajaj Allianz lifeinsurance plans

Source Respondents Percentage

urance Consultants 34 34

ends & Relatives 16 16

vertisements 26 26

wspapers 19 19

ers 05 05

Total 100 100

10

20

30

40

0

FORMS

Figure 4.10 Forms through which respondents came to know Bajaj Allianz life

insurance plans

Inference

34% of the respondents came to know about these plans through insurance

consultants.

16% of the respondents came to know about these plans through friends and

relatives.

6% of the respondents came to know about these plans through advertisements.

9% of the respondents came to know about these plans through newspapers.

5% of the respondents came to know about these plans through others.


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Table no 4.11 Respondents associated with which plans of Bajaj Allianz

Insurance Plans Respondents Percentage

h Gain 35 35

est Gain 32 32

ld Gain 29 29

ers 04 04

Total 100 100

4%Cas h Gain

Invest Gain

Chi ld Gain

Others

35%29%

32%

Figure 4.11 Respondents associated with which plans of Bajaj Allianz

Inference

5% of the respondents are associated with cash gain plan.

2% of the respondents are associated with invest gain plan.

9% of the respondents are associated with child gain plan.

4% of the respondents are associated with other plans.


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Table no 4.12 Response of respondents about Bajaj Allianz life insurance plansregarding financial aspects


cellent 15 15

od 42 42

isfactory 39 39

or 04 04

Total 100 100

4% 15%Excellent

Good

Satisfactory

Poor

39%

42%

Figure 4.12 Response of respondents about Bajaj Allianz life insurance plansregarding financial aspects

Inference

5% of the respondents feel that the insurance plans are excellent.

2% of the respondents feel that the insurance plans are good.

9% of the respondents feel that the insurance plans are satisfactory.

4% of the respondents feel that the insurance plans are poor.


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Table no 4.13 Response of satisfaction level of service provided by Bajaj Allianz ofemployed

Service Respondents Percentage

Yes 37 74

No 13 26

Total 50 100

Response of service provided by

Bajaj Allian z o f emplo yed

26%

Yes

No

74%

Figure 4.13

Inference

74% of the respondents feel that the service provided by Bajaj Allianz is to their

satisfaction.

26% of the respondents feel that the service provided by Bajaj Allianz is not to

their satisfaction.


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Table no 4.14 Response of satisfaction level of service provided by Bajaj Allianz ofself-employed

Service Respondents Percentage

Yes 34 68

No 16 32

Total 50 100

Response of service provided by

Bajaj Allian z o f self-emplo yed

32%

YesNo

68%

Figure 4.14

Inference

68% of the respondents feel that the service provided by Bajaj Allianz is to their

satisfaction.

32% of the respondents feel that the service provided by Bajaj Allianz is not totheir satisfaction.


42/49

Table no 4.15 Response of respondents about being associated with Bajaj Allianz


ears 08 08

ears 38 38

years 14 14

ove 10 years 40 40

Total 100 100

8% 3 years

5 years

10 years

Above 10 y ears

40%

38%

14%

Figure 4.15 Response of respondents about being associated with Bajaj Allianz

Inference

8% of the respondents feel to be associated with Bajaj Allianz for 3 years.



0% of the respondents feel to be associated with Bajaj Allianz for above 10

years.


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CHI - SQUARE TEST

HE FOLLOWING TABLE SHOWS THE CROSS TABULATION BETWEEN

STOMER CATEGORY & SATISFACTION LEVEL

LICY HOLDER

STOMER CATEGORY

YES NO TOTAL

EMPLOYED 37 13 50

SELF-EMPLOYED 34 16 50

TOTAL 71 29 100

: Nature of satisfaction level for customers is dependent to service provided by Bajaj

ance

: Nature of satisfaction level for customers is independent to service provided by

aj Alliance

EXPECTED FREQUENCIES:

(71*50) / 100 = 35.5

(71*50) / 100 = 35.5

(29*50) / 100 = 14.5(29*50) / 100 = 14.5


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CALCULATION TABLE

OBSERVED

FREQUENCY

(O)

EXPECTED

FREQUENCY

(E)

(O-E) (O-E) (O-E) /E

37 36 1 1 0.027

13 15 -2 4 0.266

34 36 -2 4 0.111

16 15 1 1 0.066

0.47TOTAL

- Square ( ) = (O - E) / E

( ) = 0.47

gree Of Freedom = (C - 1) (R - 1) = (2 - 1) (2 - 1) = 1

5% Level of significance

m the table Chi - Square ( ) = 3.841

ce tabulated value is greater than the calculated value, i.e., (3.841 > 0.418)

CEPTED THE NULL HYPOTHESIS (Ho)

INFERENCE :

The analysis shows that satisfaction level for customers is dependent to service

vided by Bajaj Alliance


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Findings

Still 33% of the employed are associated with LIC which still makes it the

number one spot right behind Bajaj Allianz at 29%

Almost 87% of the respondents feel that insurance is essential for ones life.

Both employed and self employed feel the main reason for insurance as far as

they are concerned is due to security purpose.

52% of the respondents feel that the insurance scheme provided by Bajaj Allianz

is good

Television is considered to be the main source of awareness of Bajaj Allianz

among the various media

Insurance plans are known to the respondents mainly through insurance

consultants after advertisement

Most of the respondents of both employed & self-employed (71%) feel that the

service of Bajaj Allianz is good.


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Suggestions

More branches should be open by the company for the customers to have better

and easy access.

The services that provided are only good to the customers. The services should be

improved so that the customers feel excellent about the service

More and more details about the insurance plan should be made to be known to

the customers through various media as only 78% of the respondents are aware of

the various insurance plans.

Television is the main media through which the company can reach out to the

people. So advertisement should be telecasted frequently.

As far as brand is concerned LIC tops the sector, Bajaj Allianz must take

intensive publicity efforts to position themselves as a leading life insurance

company. So they will have to create feeling of trust among customers.


47/49

Conclusion

Insurance happens to be a mega opportunity in India. Yet, nearly 80% of Indian

ulation is without life insurance cover, continue to be below international standards

ch offer greater opportunities in this sector. With other investments avenues

aining unmoved, insurance and mutual funds offer comparatively better returns to

tomers. With tax and investment planning as its main targeting tools, insurance is

nd to grow at a rapid pace.

The project helped me to find out the customer satisfaction and expectations

m the various plans offered by insurance companies with specific reference to market

ed insurance plans. Appropriate suggestions have been given based on the research

dings. It was a great learning experience and I will carry this experience with me in all

future endeavors.


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QUESTIONNAIRE

1. Name :

Age

a) 18 to 25 b) 26 to 32

c) 33 to 40 d) Above 40

Occupation

a) Employed b) Self Employed

4. Sexa) Male b) Female

Monthly income

a) 5000 10000 b) 10000- 15000

c) 15000 20000 d) Above 20000

6. Do you feel insurance is essential for ones life?

a) Yes b) No

No, Skip to Question no 17

Tick out the reasons for why you feel insurance is essential?

a) Premium is reasonable b) Tax advantage

c) Security purpose d) Others

When you think of life insurance, which company comes to your mind?a) LIC b) ICICI

c) Bajaj Allianz d) HDFC

Are you aware of Bajaj Allianz Insurance Company?


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a) Yes b) No


Through which media did you come to know about Bajaj Allianz?

a) Newspaper b) Television

c) Radio d) Hoardings

Are you aware of the various insurance plans offered by Bajaj Allianz?

a) Yes b) No


Which of the insurance plans are you aware of Bajaj Allianz?a) Cash Gain b) Invest Gain

c) Child Gain d) Others

How do you feel about these particular insurance schemes?

a) Excellent b) Good c) Satisfactory d) Poor

How did you came to know about these plans

a) Insurance consultants b) Friends and Relatives

c) Advertisements d) Newspapers

e) Others

Are you satisfied with the service provided by Bajaj Allianz?

a) Yes b) No

How long do you wish to be associated with Bajaj Allianz?

a) 3 years b) 5 years c) 10 years d) above 10 years

Suggestions

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BIBILOGRAPHY

THOR TITLE YEAR PUBLISHER PLACE

ip Kotler & Principle of 1999 Prentice Hall of New Delhi

y Armstrong Marketing India

nald S. Tull & Marketing 2000 Prentice Hall of New Delhi

I.Howkins Research India

Dr. S. Gupta Statistical 2000 Sulthan chand New Delhi

thods Publication

Research

Methodology, 1996 Wishwa Prakesh New DelhiKothari C.R.

Methods &

Tecniques Publication

Varhney R.L., & Marketing 1999 Sultan chand New Delhi

Gupta S.I. Management Publication

Hemant New Project

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