A PROJECT REPORT
ON
“COMPARATIVE STUDY OF BAJAJ ALLIANZ PRODUCT WITH OTHER PRIVATE INSURANCE
COMPANIES”
Submitted in the partial fulfillment for the requirements for the award of the degree of
MASTERS IN INTERNATIONAL BUSINESS (Affiliated To CCS University, Meerut)
Session : 2006-2008
Under the Internal Guidance of:
Mr. Sunil Kumar Faculty of MIB
SUBMITTED BY:Saurabh Vishnoi
ROLL NO.: 9356055MIB (2006-2008)
Institute of Management StudiesC-238, Bulandshahar G.T. Road, Lal Quan, P.B. No. 57,
Ghaziabad-201009
ACKNOWLEDGEMENT
I would like to take this opportunity to express my deep gratitude to all those who,
directly or indirectly made this project possible.
I have got considerable help and support in making this project report a reality from
many people.
I would like to thank Mr. Deepak Kumar (Senior Sales Manager) whose endeavor for
perfection, under fatigable zeal, innovation and dynamism contributed in a big way in
completing this project. This work is the reflection of his thought, ideas, concept and
above all his modest effort.
I also take this opportunity to convey my heart felt thanks to Prof. Sunil Kumar
(Internal Guide) for his constant suggestion which have resulted in successful
completion of the project.
Saurabh VishnoiMIB-II Year
2
CONTENTS
1. Synopsis………………………………………………….. 4
2. Introduction………………………………………………. 6
3. Company Profile………………………………………….. 29
4. Objective of the study…………………………………….. 40
5. Research Methodology……………………………………. 42
6. Product knowledge………………………………………... 47
7. Comparison ………………………………………………. 59
8. Data Analysis ………………………………………...…… 63
9. Interpretation………………………………………………. 69
10. Conclusion ……………………………………………….. 71
11. Experience & Difficulties ……………………………….. 73
12. Suggestions and Recommendation ………………………. 75
13. Limitations ……………………………………………… . 79
14. Bibliography………………………………………………. 81
15. Appendixes ……………………………………………….. 83
3
SYNOPSIS
4
SYNOPSIS
TITLE OF THE PROJECT: Comparative study of BAJAJ ALLIANZ
Product with other insurance companies
NAME OF THE COMPANY: BAJAJ ALLIANZ LIFE INSURANCE CO.
OBJECTIVE BEHIND THE STUDY :-
To study and evaluate various strategies of BAJAJ ALIANZ for various section of society.
RESEARCH METHODOLOGY:
The project is Descriptive in nature and requires use of both primary and secondary data.
Primary data : Database obtained by market survey ,QuestionnairesSecondary data : Database of existing customers with the company
Sample size : 100 Area Covered : Delhi and NCR
The data is obtained by using Questionnaire and Interviewing the Respondents.
External guide: Mr. Deepak Kumar (Senior Sales Manager)
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INTRODUCTIONINTRODUCTION
6
INTRODUCTION
What is Insurance :-
Insurance is a means by which a person or company, can transfer insurable risks to an
insurance company, against the payment of a premium.
Insurance is not necessarily an investment from which one expects to get one's money
back. Nor is it gambling. A gambler takes risks, while insurance offers protection against
risks that already exist. Insurance is a way to share risk with others. Since ancient times,
communities have pooled some of their resources to help individuals who suffer loss.
"Insurance is a contract between two parties whereby one party called insurer undertakes
in exchange for a fixed sum called premiums, to pay the other party called insured a fixed
amount of money on the happening of a certain event."
“Insurance is a protection against financial loss arising on the happening of an
unexpected event. Insurance companies collect premiums to provide for this protection.
A loss is paid out of the premiums collected from the insuring public and the Insurance
Companies act as trustees to the amount collected.”
For example, in a Life Policy, by paying a premium to the Insurer, the family of the
insured person receives a fixed compensation on the death of the insured.. It is a system
by which the losses suffered by a few are spread over many, exposed to similar risks.
Insurance is desired to safeguard oneself and one's family against possible losses on
account of risks and perils. It provides financial compensation for the losses suffered due
to the happening of any unforeseen events. By taking life insurance a person can have
peace of mind and need not worry about the financial consequences in case of any
untimely death..
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Principles of Life Insurance :-
Insurance is a 'risk transfer mechanism' - it transfers the financial risks of everyday life
from you to an insurance company. But only in terms of the financial consequences of
risk. Without insurance, if you car was damaged, it would cost you a lot of money to fix
it or to buy another one. It could cost you even more to pay for compensation to someone
else involved in an accident. Insurance protects your financial interests.
Insurable Interest :-
Before you can insure anything, you must have a legally recognised financial interest in
what you are insuring
Indemnity :-
This word is used to describe the type of payment you would receive. It means, subject
to the terms of the contract, you are entitled to be put back in the same financial position
after a loss as you were in before the loss. In terms of a 'new for old' policy the measure
of indemnity is agreed at the point of sale rather than the time of claim.
Contribution :-
If there is more than one policy in force that you could claim on, you can't get payment
from them both that would exceed the value of your loss. So each policy would
contribute a portion of the loss. You would receive the full value of the loss but no more
and the two policies would only bear part of it each.
Subrogation :-
This is the right that your insurer has to recover from someone else where you are entitled
to do so. For example, if another driver causes damage to your car, and your insurers pay
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for it, subrogation gives them the legal right to 'stand in your shoes' and reclaim their
outlay from the responsible driver.
Utmost Good Faith :-
“A positive duty to disclose ,accurately and fully ,all the facts material to the risk being
proposed, whether asked for or not.
History of Insurance :-
Insurance has been around since ancient times. The Babylonians and Phoenicians had
ocean marine insurance to protect a merchant against losses incurred when a ship did not
reach its intended destination with its load of goods or did not return with payment. This
form of insurance, called respondent, evolved because the goods on board often were
used as collateral for a loan. The lender charged the borrower interest on the loan and
levied an additional sum, the premium, to cover the cost of the respondent contract. If the
ship reached its destination and returned, the merchant received payment for the goods
and in turn paid the moneylender. If the ship failed to return, the debt was cancelled. This
system was profitable to lenders because many respondent contracts were sold, and debts
were paid more often than cancelled.
In ancient Rome, associations had a form of insurance for their members. Each member
made regular payments to the association in return for coverage of funeral expenses or for
assistance to family members who were injured or ill.
Insurance also existed in 17th-century England, which was then one of the world's
principal maritime powers. Those seeking marine insurance would post a list of their
cargo and voyages in a London coffee house owned by Edward Lloyd. Private investors
would examine the list and sign their name by the entries they were willing to guarantee
for a fee. These private investors were the first insurance underwriters, and the coffee
house became the world center of marine insurance. Today the organization is known as
9
Lloyds of London, and it brings together individuals, most often working in syndicates,
who write all types of insurance.
Insurance in the modern form originated in the Mediterranean during 14th century. The
earliest references to insurance have been found in Babylonia, the Greeks and the
Romans. The use of insurance appeared in the account of North Italian merchant banks
who then dominated the international trade in Europe at that time. Marine insurance is the
oldest form of insurance followed by life insurance and fire insurance. The patterns that
have been used in England followed in other countries also in these kinds of insurance.
The oldest and the earliest records of marine policy relates to a Mediterranean voyage in
1347. In the year 1400, a book written by a merchant of Florence, indicates premium
rates charged for the shipments by sea from London to Pisa.
The early developments of life insurance were closely linked with that of marine
insurance. The first insurers of life were the marine insurance underwriters who started
issuing life insurance policies on the life of master and crew of the ship, and the
merchants. The early insurance contracts took the nature of policies for a short period
only. The underwriters issued annuities and pension for a fixed period or for life to
provide relief to widows on the death of their husbands. The first life insurance policy
was issued on 18th June 1583, on the life of William Gibbons for a period of 12 months.
The history of life insurance in India dates back to 1818 when it was conceived as a
means to provide for English Widows. Interestingly in those days a higher premium was
charged for Indian lives than the non-Indian lives as Indian lives were considered more
riskier for coverage. The Bombay Mutual Life Insurance Society started its business in
1870. It was the first company to charge same premium for both Indian and non-Indian
lives. The Oriental Assurance Company was established in 1880. The first general
insurance company- Tital Insurance Company Limited was established in 1850. Till the
end of nineteenth century insurance business was almost entirely in the hands of overseas
companies.
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Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during 20's
and 30's sullied insurance business in India. By 1938 there were 176 insurance
companies. The first comprehensive legislation was introduced with the Insurance Act of
1938 that provided strict State Control over insurance business. The insurance business
grew at a faster pace after independence. Indian companies strengthened their hold on
this business but despite the growth that was witnessed, insurance remained an urban
phenomenon.
The Government of India in 1956, brought together over 240 private life insurers and
provident societies under one nationalized monopoly corporation and LIC was born.
Nationalization was justified on the grounds that it would create much needed funds for
rapid industrialization. This was in conformity with the Government's chosen path of
State- led planning and development.
The (non-life) insurance business, however, continued to thrive with the private sector till
1972. Their operations were restricted to organized trade and industry in large cities. The
general insurance industry was nationalized in 1972. With this, nearly 107 insurers were
amalgamated and grouped into four companies- National Insurance Company Ltd., The
New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United
India Insurance Company Ltd. These were subsidiaries of the General Insurance
Corporation of India (GIC)
TYPES OF INSURANCE :-
General insurance:-
The basis for general insurance is "transfer of risk".
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This means that the insurer agrees to compensate you if you suffer a loss. Without the
insurance you would have to pay for that loss yourself. Obviously this contract is made
on the basis that the insurance company calculates the risk that you, or the total number
of people buying insurance, will cost more in payouts than what is received in premiums.
This is determined by the use of statistics and the information you disclose on your
application for insurance.
This includes :-
Home contents. It can either be "defined event" i.e. the policy covers loss or damage from
a list of "defined" events, e.g. storm or fire; or "accidental loss or damage" i.e. all
accidental loss with some exclusions.
Motor vehicle. It can either be "comprehensive" i.e. it covers any damage to your car as
well as damage to the other car or another person's property; "third party property" i.e. it
covers damage caused by your car to another person's property. This type of insurance
will not cover you for the cost of repairs to your own car; "third party fire and theft i.e. it
covers damage partly for damage caused by your car to another person's property, and
restricted cover for damage to your car cause by theft or fire.
Income protection. With this type of insurance the insurer agrees to pay you a specified
amount of money, usually in monthly payments, in the event that you become disabled
and unable to work. Along the same lines you an purchase "trauma insurance" to cover a
medical trauma such as a heart attack.
Also in the modern day world a number of utility specific insurance policies are being
launched by the various players in the insurance market in an effort to stay one step ahead
of their competitors. Hence to make the Definition of General Insurance more broad
based and inclusive we can say that all the policies which do not fall under “Life
Insurance “ category fall under the General Insurance category.
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Life Insurance :-
Life insurance is insurance that will protect your family and/or specified dependents in
the event of the policy holder’s death. In general, it is an essential component in planning
for the future.
There are many options with coverage, depending on your situation. And there are three
main categories of life insurance: term life, universal life, and whole life insurance.
Term life is the simplest and least expensive type of policy. It's pure insurance with no
cash value account. A term life policy has only one function: to pay a specific lump sum
to whoever you've designated, upon a specific event, your death.
Whole life insurance provides permanent protection for your dependents while building a
cash value account. With this type of insurance, the insurance company manages the
policies various accounts.
Universal life insurance provides permanent protection for your dependents and is more
flexible than whole or variable life.
KINDS OF LIFE INSURANCE PRODUCTS :-
Term Life Insurance :-
Term life insurance is the easiest form of life insurance. It simply provides insurance
protection for a period of time and only pays a benefit during that period. Since term life
insurance has no cash value, the amount of protection in this policy is equal to its death
benefit. There are three basic forms of term life insurance: level term, decreasing term,
and increasing term.
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Level Term Life Insurance :-
Level term life insurance provides an equal amount of protection for a period of time. For
example a Rs 150,000 ten-year level term life insurance policy pays out Rs 150,000 of
coverage until the ten years are over. At the end of the ten years this level term life
insurance policy would expire, and would pay out no benefits.
Decreasing Term Life Insurance :-
Decreasing term life insurance is a policy where the benefit amount decreases gradually
over the term of the protection. A 30 year Rs 200,000 decreasing term policy, for
example, wound pay a Rs 200,000 benefit at the beginning of the policy. This amount
would gradually decline over the 30-year term and would pay out Rs 0 at the end of the
term.
Increasing Term Life Insurance :-
Increasing term life insurance policies provide a payout benefit that gradually increases at
periodic intervals. These increase amounts are usually a percentage of the original
amount.. When changing the policy, your premium term life insurance rates are based on
either your current age, or the age when you originally took out the policy. Depending on
how your policy is set up, you could be paying much lower interest rates that you would
have normally qualified for.
Whole Life Insurance :-
Whole life insurance is a popular life insurance plan because it provides permanent
protection, provided premiums are paid. The advantages of whole life insurance plans are
cash values, maturity at age 100, and living benefits. Also the policy's premiums and
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benefits remain constant throughout the policy's life. Unlike term life insurance, which
provides only death protection, whole life insurance combines insurance protection with
savings benefit. The cash value of this type of insurance builds over the life of the
policy. This is because whole life insurance plans are given a certain guaranteed interest
rate. Another benefit of whole life insurance policies is that they are designed to mature
at the age of 100. The premium rate for a whole life insurance is based on the assumption
that the insured would be paying premiums until the age of 100. This means that at age
100, the cash value of the policy has come to the point when it equals the face amount of
the policy. At this point the policy has completely matured, no more premiums are
owned, and the policy is completely paid out to the policy owner.
Universal Life Insurance :-
Universal life insurance is a variation of whole and term life insurance, with added
flexibility and transparency. This added flexibility allows the policy owner to determine
the amount and frequency of premium payments and to adjust the benefit payout amount
up or down to reflect changes in needs.. Universal life insurance policies remain in force
as long as there enough cash value to pay the monthly mortality expenses, regardless of
whether or not the policy owner pays the premium.
OVERVIEW OF THE LIFE INSURANCE SECTOR IN INDIA :-
With largest number of life insurance policies in force in the world, Insurance happens to
be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent
annually and presently is of the order of Rs 450 billion. Together with banking services,
it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per
cent of GDP and funds available with LIC for investments are 8 per cent of GDP.Yet,
nearly 80 per cent of Indian population is without life insurance cover, health insurance
and non-life insurance continue to be below international standards. And this part of the
population is also subject to weak social security and pension systems with hardly any
old age income security. This itself is an indicator that growth potential for the insurance
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sector is immense. A well-developed and evolved insurance sector is needed for
economic development as it provides long term funds for infrastructure development and
at the same time strengthens the risk taking ability. It is estimated that over the next ten
years India would require investments of the order of one trillion US dollars. The
Insurance sector, to some extent, can enable investments in infrastructure development to
sustain economic growth of the country. With a large capital outlay and long gestation
periods, infrastructure projects are fraught with a multitude of risks throughout the
development, construction and operation stages. These include risks associated with
project implementation, including geological risks, maintenance, commercial and
political risks. Without covering these risks the financial institutions are not willing to
commit funds to the sector, especially because the financing of most private projects is on
a limited or non- recourse basis.Insurance companies not only provide risk cover to
infrastructure projects, they also contribute long-term funds. In fact, insurance companies
are an ideal source of long term debt and equity for infrastructure projects. With long
term liability, they get a good asset- liability match by investing their funds in such
projects. IRDA regulations require insurance companies to invest not less than 15 percent
of their funds in infrastructure and social sectors. International Insurance companies also
invest their funds in such projects. Insurance is a federal subject in India. There are two
legislations that govern the sector- The Insurance Act- 1938 and the IRDA Act- 1999.
The Government of India liberalized the insurance sector in March 2000with the passage
of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry
restrictions for private players and allowing foreign players to enter the market with some
limits on direct foreign ownership. Under the current guidelines, there is a 26 percent
equity cap for foreign partners in an insurance company. There is a proposal to increase
this limit to 49 percent. Premium rates of most general Committee. The opening up of the
sector is likely to lead to greater spread and deepening of insurance in India and this may
also include restructuring and revitalizing of the public sector companies. A host of
private insurance companies operating in both life and non-life segments have started
selling their insurance policies since 2001.
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INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(IRDA) :–
On 19th April 2000, the Authority has been notified in the Gazette of India in terms of
Insurance Regulatory and Development Authority Act, 1999 (IRDA Bill). The Authority
has also been constituted.
Mission :-
To protect the interests of the policyholders, to regulate, promote and ensure orderly
growth of the insurance industry and for matters connected therewith or incidental there
DUTIES, POWERS AND FUNCTIONS OF AUTHORITY
AS per the INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT,
1999
1. 14(1) Subject to the provisions of this Act and any other law for the time being in
force, the Authority shall have the duty to regulate, promote and ensure orderly
growth of the insurance business and re-insurance business.
2. 14(2) without prejudice to the generality of the provisions contained in sub-
section (1), the powers and functions of the Authority shall include,--
a) Issue to the applicant a certificate of registration, renew, modify,
withdraw, suspend or cancel such registration;
b) Protection of the interests of the policy-holders in matters concerning
assigning of policy, nomination by policy-holders, insurable interest,
settlement of insurance claim, surrender value of policy and other terms
and conditions of contracts of insurance;
c) specifying requisite qualifications, code of conduct and practical training
for intermediary or insurance intermediaries and agents;
d) specifying the code of conduct for surveyors and loss assessors;
e) promoting efficiency in the conduct of insurance business;
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f) promoting and regulating professional organization connected with the
insurance and re-insurance business;
g) levying fees and other charges for carrying out the purposes of this Act;
h) calling for information from, undertaking inspection of, conducting
enquiries and investigations including audit of the insurers, intermediaries,
insurance intermediaries and other organizations connected with the
insurance business;
i) control and regulation of the rates, advantages, terms and conditions that
may be offered by insurers in respect of general insurance business not so
controlled and of 1938 regulated by the Tariff Advisory committee under
section 64U of the Insurance Act, 1938;
j) specifying the form and manner in which books of account shall be
maintained and statement of accounts shall be rendered by insurers and
other insurance intermediaries;
k) regulating investment of funds by insurance companies;
(l) regulating maintenance of margin of solvency;
l) adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
m) supervising the functioning of the Tariff Advisory committee;
n) supervising the percentage of premium income of the insurer to finance
schemes for promoting and regulating professional organization referred
to in clause (f);
o) specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector; and
p) exercising such other powers as may be prescribed.
The founder chairman of IRDA was Mr. N.Rangachary. It was under his stewardship that
the Indian Insurance industry really opened up
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FACTS AND STATISTICS :-
The primary business of life insurance companies is no longer traditional life
insurance, but the underwriting of annuities — contracts that guarantee a fixed or
variable payment over a given period of time. Nevertheless, the sale of such life
insurance products as whole life and term life policies in particular remains an important
part of the business.
Life insurance is protection against financial loss resulting from death. It is an insurance
company's promise to pay your beneficiary a specific amount of money when you die in
exchange for timely payment of premiums.
Why do you need Life Insurance –
Although you may not think about it, your ability to earn income is a significant asset and
life insurance helps replace lost income in the event of your premature death.
Here are some reasons people buy life insurance.
To replace income the family would need to maintain their standard of living after
the death of a wage earner.
To pay off a mortgage loan and other personal and business debts or to create a
rent fund.
To create a fund for children's education.
To create a family emergency fund or a fund for a family member with special
needs.
SOME IMPORTANT CONCEPTS :-
Annuitant is the person who receives certain amounts at yearly / half-yearly / quarterly /
monthly intervals.
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Assignee is the person to whom the benefits under a life policy are assigned.
Assignor is the person who holds the right/title under the policy and who can make a
valid assignment.
Bonus is the amount added to the basic sum assured under a with-profit life insurance
policy.
Claim Amount is the amount payable by the insurer under a policy on a claim arising
Dating Back or Back Dating is an option to the life assured to get the advantage of lower
age wherein the policy is commenced from a date earlier than the date of signing of
proposal form. However back dating is limited to one year
Deferred Annuity is an annuity plan where the first annuity payment becomes payable
after a chosen period that exceeds one year.
Deferment date is the date on which the deferment period ends
Deferment period is the period from the date of commencement of the policy to the date
of commencement of risk on the child's life under a Children's Deferred Endowment
EPDB
Extended Permanent Disability Benefit
Female lives
Category I: Women with income earned by
Virtue of their employment in any reputed organization or institution eligible for
Non Medical Special Schemes.
Professions such as Medicine, Law, Charted Accountancy etc. and lady career
agents of LIC.
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Category II: Women with unearned income attracting payment on income tax or women
holding sizeable personal properties/investments yielding income attracting assessment
for income tax.
First Class Life :-
An Individual is categorized as First Class Life if is eligible to have insurance coverage at
normal rates of premium.
First Unpaid Premium (FUP) First unpaid premium refers to the first default in paying
premium by the policy holder. On payment of the due premium a receipt is issued and
this receipt indicates the date of next due. If this due premium is not paid that date
becomes the date of FUP.
Guaranteed Insurance Sum (GIS)
Guaranteed Insurance Sum is equal to purchase price paid for a pension along with final
Jeevan Akshay Bonus.
Gross Insurance Value Element (GIVE)
Gross Insurance value element is the amount payable on death of a policy holder under a
Jeevan Dhara Policy.
Guaranteed Additions are calculated at a rate per every thousand of sum assured. They
are added to the basic sum assured and are payable on admittance of claim. This benefit
is allowed only for each year for which premiums are paid.
Life Assured refers to the person whose life is being insured.
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Last Birth Day (L.B.D)
Age at last Birthday
Moral Hazard is said to exist in the case where we notice the absence of a genuine need
for a life insurance or when a proposal for insurance is submitted by an individual beyond
his means.
Near Birth Day (N.B.D)
Age on nearest birthday
Nominee
Nominee is the person who is nominated to receive the amount under a policy and to give
a valid discharge to the insurer on settlement of claim under a life insurance policy.
Paid up value is the reduced amount of sum assured paid by the insurer in case of
discontinuation of the payment of premiums after paying the full premiums for the first
three years.
Premium is the amount paid to secure an insurance policy.
Proposal Form
It is a form which is to be completed for securing an insurance policy.
Proposer is a person who proposes the insurance policy.
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Premium Waiver Benefit (PWB) are the benefits which can be availed under children's
policies, wherein the future premiums payable upto vesting date are waived in the event
of death of the proposer.
Sum assured is the amount that an insurer agrees to pay on the occurance of an event.
Surrender value is the amount payable to the policy holder on his surrendering his right
under a policy and terminating the contract of insurance.
Term is the period for which insurance coverage is given.
Vesting Bonus
It is the Bonus, which the insurer declares after evaluating its assets and liabilities, and
that is added to the sum assured under a policy.
Waiting Period
It is the period starting from date of commencement of a policy to the date of
commencement of risk under a Jeevan Kishore Policy.
LIFE INSURANCE CORPORATION OF INDIA
LIC was formed on 1-9-1956 by Government of India by nationalizing the then existing
private insurance companies. At that time the objective of nationalization of the life
insurance business was to canalize the funds of LIC for the benefit of the people of India.
LIC invests not less than 75% of its funds in Central Government Securities, State
Government Securities and the balance is invested by LIC in the private sector
The central office of LIC is located at Mumbai.
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The insurance market is likely to witness a sea change in the marketing mix, that is
product, price, place (distribution channel) and promotion. The customer-driven market
will result in lot of flexibilities and innovations in product, pricing, distribution channels
and communication mechanisms. The IRDA, with its developmental and regulatory
guidelines, is likely to promote competition, fairness, and reliability, and, at the same
time, protect insurance against excessive,
Today the Indian consumers are increasingly becoming more aware and are actively
managing their financial affairs. Today, while boundaries between various financial
products are blurring, people are increasingly looking not just at products, but at
integrated financial solutions that can offer stability of returns along with total protection.
To satisfy these myriad needs of products, insurance products will need to be customized.
Insurance today has emerged as an attractive and stable investment alternatively that
offers total protection - Life, Health and Wealth. In terms of returns, insurance products
today offer competitive returns ranging from 7% to 9%. Besides returns, what really
increases the appeal of insurance is the benefit of life protection from insurance products
along with health cover benefits.
“When winds of change blow some seek shelter, while some develop windmills” the
quote can be nailed to all the Insurance companies no matter nationalized or private.
Every company is gearing up and pulling up their socks to tap the maximum chunk of
population, which is uninsured. (Statistically, it is 96.5% of population is uninsured only
35 millions or 3.5% of the total population are insured).
Whether the insurer is old or new, private or public, expanding the market will present
multitude of challenges and opportunities. But the key issues, possible trends,
opportunities and challenges that insurance sector will have still remains under the realms
of the possibilities and speculation.
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LIFE COVERAGE IN DIFFERENT COUNTRIES
Individual life insurance Coverage Index, 2005
Country (No. Of policies per 100 persons)
Indonesia 3.0
Philippines 6.6
India 25.4
Thailand 18.7
Malaysia 39.5
Hong Kong 74.4
South Korea 77.5
Taiwan 84.2
Singapore 112.6
LIFE INSURANCE COMPANIES :
S.NoNAME OF THE COMPANY NAME
OF
PRINCIPAL
OFFICER
NAME
OF APPOINTED
ACTUARY
TELEPHONE NO./FAX
No./E-MAIL & WEB
ADDRESS
1. Bajaj Allianz Life Insurance
Company Limited .
GE Plaza, Airport Road ,
YerawadaPune 411 006
Mr. Sam
Ghosh
Mr. Andrew Wakeling Tel : 020-4026666
Fax : 020-4026789
.
2. Birla Sun Life Insurance Co.
Ltd
6th Floor, Vaman Centre,
Nani B Javeri
Mr R DMohan
Mr. Kedar Mulgund Tel : 022 5678 3333
Fax: 022 5678 3232
25
Makhwana Road,
off Andheri-Kurla Road
Andheri(E) MUMBAI-400 059.
3. HDFC Standard Life Insurance
Co. Ltd
"Trade Star", 2nd floor, 'A'
Wing, Kondivita Road Junction
Andheri-Kurla Road Andheri
(East) Mumbai 400 059.
Mr.D.M .
Satwalekar
Mr. Nick Taket Tel : 022-822 2234/5551
6551
Fax: 022-2822 8844
4. ICICI Prudential Life Insurance
Co. Ltd
ICICI Prulife Towers , 1089,
Appasaheb Marathe Marg,
Prabhadevi, Mumbai 400 025.
Ms. Shikha
Sharma
Mr. V. Rajagopalan Tel :022-56621996
Fax: 022-56622031
5. ING Vysya Life Insurance
Company Pvt. Ltd.
ING Vysya Home, 5th Floor,
#22 Mahatma gandhi Road
Mr. Frank
Koster
Ms. Hemamalini
Ramakrishnan
Tel : 080-25328000
Fax: 080-25559764
6. Life Insurance Corporation of
IndiaYogakshema, Jeeva Bima
Marg, Post B19953MUMBAI
400 021 ox
Shri A.K,
Shukla
Mr. Gorakh Nath
Agarwal
Tel 56598701;56598702
Fax: 22824386
E-Mail ;
7. Max New York Life Insurance
Co. Ltd
11th Floor, DLF Square,
Mr. Gary R.
Benett
Mr. John Charles
Poole
Tel : 0124-2561717
Fax: 0124-2561764
26
Jacaranda Marg, DLF City ,
Phase-II, GURGAON 122 002.
8. Met Life India Insurance
Company Pvt. Ltd.
Brigade Seshamahal, No. 5,
Vani Vilas Road,
Basavanagudi, BANGALORE-
560 004.
Mr. Venktesh
Mysore
Mr. K. P. Sharma Tel : 080-26438638
Fax: 080-26521970
Toll Free No. 1-600-44-
6969
9. Kotak Mahindra Old Mutual
Life Insurance Limited
6th Floor Penisula Chambers,
Penisula Corporate Park,
Ganpatrao Kadam Park
Lower Parel,
MUMBAI-400 013.
Mr. Gaurang
Shah
Mr. A.
Venkatasubramanian
Tel : 022-5663 5000
Fax:022-5663 5111
10. SBI Life Insurance Co. Ltd
Turner Morrison Building, 2nd
Floor, 16, Bank Street, Fort
Mumbai-400 023.
Mr. S.
Krishna murthy
Mr. I Sambasiva Rao Tel : 022-56392000
Fax: 022-56621471
11. Tata AIG Life Insurance
Company Limited
5th 7 6th Floor, Peninsula
Tower,
Peninsula Corporate Park
Ganpatrao Kadam Marg, Lower
Parel,
MUMBAI 400 013.
Mr.Ian J.Watts Mr. Heerak Basu Tel : 022-56516000
Fax : 022-56550711
27
LIFE INSURANCE INDUSTRY IN THE YEAR 2000-2001 HAD 10
NEW ENTRANTS, NAMELY :-
S.No Registration
Number
Date of Reg. Name of the Company
1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.
2 104 15.11.2000 Max New York Life Insurance Co. Ltd.
3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.
4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance
Limited
5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance Company Limited .
8 114 02.08.2001 ING Vysya Life Insurance Company Private
Limited
9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited
10 117 06.08.2001 Met life India Insurance Company Pvt. Ltd.
28
COMPANY
PROFILE
29
COMPANY PROFILE
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 manufacturers in the
world and Allianz AG, one of the world's largest insurance companies.
BAJAJ ALLIANZ LIFE INSURANCE :-
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 550 locations with 60,000 Insurance Consultant
providing the finest customer service.
One of India's leading private life insurance companies
BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LIMITED :-
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto
Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and
strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and Development
Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General
Insurance business (including Health Insurance business) in India. The Company has an
authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining
26% is held by Allianz, AG, Germany.
In its first year of operations, the company has acquired the No. 1 status among the
private non-life insurers. As on 31st March 2003, Bajaj Allianz General Insurance
30
maintained its leadership position by garnering a premium income of Rs.300 Crores.
Bajaj Allianz also became one of the few companies to make a profit in its first full year
of operations. Bajaj Allianz made a profit after tax of Rs.9.6 crores.
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.
In the first half of the current financial year, 2004-05, Bajaj Allianz garnered a premium
income of Rs. 405 crores, achieving a growth of 84% and registered a 52% growth in Net
profits of Rs.20 Crores over the last year for the same period. In the financial year 2003-
04, the premium earned was Rs.480 Crores, which is a jump of 60% and the profit
zoomed by 125% to Rs. 21.6 Crores
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.
ALLIANZ GROUP
Allianz Group is one of the world's leading insurers and financial services providers.
31
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost
174,000 employees. At the top of the international group is the holding company, Allianz
AG, with its head office in Munich.
Allianz Group provides its more than 60 million customers worldwide with a
comprehensive range of services in the areas of:
Property and Casualty Insurance,
Life and Health Insurance,
Asset Management and Banking.
EASY ACCESS AND REACH ACROSS THE COUNTRY –
Bajaj Allianz Life has offices now in over 510 towns across the country enabling
customer to buy our products and get quality efficient service almost anywhere across the
country
ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE
Worldwide 2nd by Gross Written Premiums - Rs.4,46,654 cr.
3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. -
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 yrs of Insurance expertise
70 countries, 173,750 employees worldwide
BAJAJ GROUP
Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest
manufacturer of two-wheelers and three-wheelers in India and one of the largest in the
world.
32
A household name in India, Bajaj Auto has a strong brand image & brand loyalty
synonymous with quality & customer focus.
A STRONG INDIAN BRAND- HAMARA BAJAJ
One of the largest 2 & 3 wheeler manufacturer in the world
21 million+ vehicles on the roads across the globe
Managing funds of over Rs 4000 cr.
Bajaj Auto finance one of the largest auto finance cos. in India
Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03
It has joined hands with Allianz to provide the Indian consumers with a distinct
option in terms of life insurance products.
As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the
following to offer -
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 Company has developed insurance solutions that cater to
every segment and age-income profiles. For companies it provides comprehensive
'Employee Benefit Solutions' (Group Term Life, EDLI, Gratuity, Superannuation,
Keyman Insurance and more); for the individual InvestGain (a unique life insurance plan
where sustenance of income is combined in the same plan that also pays a lump sum),
Cash Gain (Money Back), Child Gain (Children's plan), Risk Care (Pure Term), Lifetime
Care (whole life), Term Care (term with return of premium), Swarna Vishranti
(Retirement Plan), Protector (Mortgage term insurance plan), UnitGain (Unit Linked
Plan), UnitGain Single Premium, Unit Gain Plus, Unit Gain Plus SP, Lifelong Gain Plan,
Unit Gain Single Pension & Unit Gain Easy Pension Plans.
33
LIC loses grip on market, share down to 71%
The state-owned life insurance behemoth Life Insurance Corporation (LIC) despite
having a record breaking performance in 2005-05 has lost over seven per cent of its
market share in 2005-06. The LIC’s market share has fallen to 71.04 % from 78.07% in
2004-05.
The Bajaj Allianz Life Insurance with a market share of 26.5 % in the private sector life
insurance segment has emerged as the No 1 private sector life insurance company in 2005
-06 as per IRDA results, leading by Rs 78 crore in the new business. The total new
premium of the Bajaj Allianz Life Insurance is estimated at Rs 2715 crore.
It is also the no 1 private sector life insurance co. for individual life business (retail) as
per IRDA results leading by Rs 339 cr. in the new business. The company has grown by
216 % for the FY 05- 06.
The former no 1 private sector life insurance company ICICI Prudential has a market
share of 25.7% in the private sector life insurance sector. The total new premium of the
company is at Rs 2637 crore.
The gross premium income of HDFC Standard Life Insurance Company Limited (HDFC-
SL) for the year ended March 31, 2006 was Rs. 1,570 crores as compared to Rs. 687
crores in the previous year – a growth of 129%. New business premium income
amounted to Rs. 1,026 crores as compared to Rs. 486 crores last year. The cumulative
sum assured stood at Rs. 47,730 crores.
For the year ended March 31, 2006 reported a profit after tax of Rs. 4.41 crores as against
a loss of Rs. 7.98 crores in the previous year.
The gross written premium for the year stood at Rs 206 crores as compared to Rs 184
crores in the previous year. The total new premium of Reliance Life Insurance which
bought over the business of AMP Sanmar is estimated at Rs 193 crore. The Bajaj Allianz
34
General Insurance with a total new premium of around Rs 1500 crore is reported to have
made a profit of Rs 50 crore in 2005-06.
The ICICI Lombard with a new premium of over Rs 1500 crore in 2005-06.The private
sector life insurance industry has recorded a growth of 84 % in 2005-06.The Tata Aig has
posted a total new premium of Rs 463 crore while SBI Life has grown by Rs 828 crore
during the year. Aviva Life has increased its premium by Rs 407 crore while Birla
Sunlife has grown its premium by Rs 678 crore in 2005-06
WHY BAJAJ ALLIANZ ?
The Bajaj Allianz Difference
Business strategy aligned to clients' needs and trends in Indian and global
economy / industry
Internationally experienced core team, majority with local background
Fast, decentralised decision making
Long-term commitment to market and clients
TRUST
At Bajaj Allianz, we realise that you seek an insurer whom you can trust. Bajaj Auto
Limited is trusted name for over 55 years in the Indian market and Allianz AG has over
110 years of global experience in financial services.
UNDERWRITING PHILOSOPHY
Our underwriting philosophy focuses on :
Understanding the customer's needs
Underwriting what we understand
35
Meeting the customer's requirements
Ensuring optimal coverage at lowest cost
CLAIMS PHILOSOPHY
The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims
processing. We pride ourselves on a friendly and open approach. We are focused towards
providing you a hassle free and speedy claims processing.
OUR CLAIMS PHILOSOPHY IS TO :
Be flexible and settle fast
Ensure no claim file to be seen by more than 3 people
Check processes regularly against the global Allianz OPEX (Operational
Excellence) methodology
Sold over 1 million since inception.
CUSTOMER ORIENTATION :
At Bajaj Allianz, our guiding principles are customer service and client satisfaction. All
our efforts are directed towards understanding the culture, social environment and
individual insurance requirements - so that we can cater to all your varied needs.
EXPERIENCED AND EXPERT SERVICING TEAM :-
We are driven by a team of experienced people who understand Indian risks and are
supported by the necessary international expertise required to analyse and assess them.
Superior Technology
36
In order to ensure speedy and accurate processing of your needs, we have
established world class technology, with renowned insurance software, which
networks all our 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 Amaranth Yatris
Film insurance
Event management cover
Sports & Entertainment Insurance Package
RISK MANAGEMENT- OUR EXPERTISE :-
Our 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
37
FOCUSED GROUP NETWORK
38
Bajaj Allianz Life Insurance
Agency Channel Bancassurance Group and Alternate Channel
Branches
Satellite Satellite Satellite
Standard Chartered Bank
Syndicate Bank
Centurion Bank
Cosmos Bank
Jankalyan Sahakari Bank
Jijamata Sahakari Co-op Bank
Group Employee Benefit
Corporate Agency
Franchisee
Brokers
ALLIANZ GROUP - GLOBAL BANC ASSURANCE EXPERIENCE :-
39
AsiaKoreaTaiwan
MalaysiaThailand
SouthAmericaBrasilChileMexico
CzechoslovakiaHungary
Hana BankGrand Commercial
Ta Chong BankTaipei Bank
Union BankAlliance BankBank of Ayudhya
BradescoBanco BiceBanCrecer
EuropeGermany
FranceItaly
SpainPortugalAustriaGreece
CroatiaBulgariaPoland
Dresdner BankHypo Vereins bankRaiffeisen bankCredit LyonnaisUnicredito ItalianoRolo BancaCasa di RisparmioBanco di SciciliaBanco Antoniana PopolareBanco Regionale EuropeaBanco PopularBPI-SGPSBawagErgo BankBank of PiraeusZagre backa BankBulbankPekao S.A.BPH
OBJECTIVE
40
OBJECTIVE OF THE STUDY
TO MAKE COMPARATIVE ANALYSIS OF COMPARATIVE STUDY OF
BAJAJ ALLIANZ PRODUCT WITH OTHER INSURANCE COMPANIES
With the aim to make comparative analysis among the various insurance companies with
respect to their UNIT GAIN product is done considering following factor:
Entry Age & Maturity date
Premium value & Term
Death Benefit
Surrender Benefit
Withdrawal
Switches
Allocation of Equities
41
RESEARCH
METHODOLOGY
42
RESEARCH METHODOLOGY
Research design depends on type of research studies that we are going to make. My
research study is descriptive type. Research methodology is all of the techniques,
methods and procedures adopted in terminology work to carry out terminology research.
It is a way to systematically solve the research problem.
DESCRIPTIVE RESEARCH STUDY :-
In this type of research study the researcher must able to define clearly, what he wants to
measure and must find adequate methods measuring it along with the clear cut definition
of population he wants to study. Since the aim of study is to obtain complete and accurate
information, the procedure must be carefully planned .The design in such studies must be
rigid and rigid. For the study I have taken a sample of about 100 customers, etc from each
and every market in Delhi and Ghaziabad. In planning and designing a specific research
project it is necessary to anticipate all the steps that must be under taken if the project is
to be successful in collecting valid & reliable information. If it were broken down into
very small parts or activities, the marketing research process would consist of a great no
of steps
Specifying research objectives.
Preparing a list of the needed information.
Designing the data collection project.
Selecting a sample type.
Determining a sample size.
Organizing and carrying out the fieldwork.
Analyzing the collected data and reporting the findings.
43
1. FORMULATION OF OBJECTIVE:
Research Objective must be clearly defined (what the study is about and why it is
being done) then only, it can be achieved in a best way.
With the aim to make comparative analysis between the Insurance companies we
analyse the data of different companies in various prospectives :-
Purpose of study:
To study and evaluate various strategies of BAJAJ ALIANZ for various section of
society.
2. DATA SOURCES
The second stage is the collection of data is the data sources Primary Data
Sources and Secondary Data Sources. Primary Data Sources are collected
specifically for the purpose of research study, which is to be done, and secondary
data source are already collected data, with some other objective.
Primary Data Source:
Questionnaire:
A formal list of Questions is formulated and asking the questions from the
people who are having the related information. Here the Questionnaire is
Structured. Close end Questionnaire with Dichotomous and Multiple Choice
Questions. Main aim is to compare the Customer Attitude and Loyalty towards
UNIT GAIN product of different companies.
44
Secondary Data Source :
Internal sources: On-Line Information, Report of IRDA ( INSURANCE
REGULATORY &DEVELOPMENT AUTHORITY ),
External data :
Magazines like Business Standard, Books on insurence and journals .
3. SAMPLING PLAN
Sampling Unit (Who Is Being Surveyed)
All prospectives who are intresting in investment cum insurance.
Sampling Size (How Many People Should Be Surveyed)
100 customers in DELHI & NCR
Contact Method (How The Subject Should Be Contacted)
Cold calling, Personal Contract, Through Internet
4. PROCESSING AND ANALYZING THE DATA
Score aggregation method is used for analyzing the data and pictorial
representation of analysis is done through graphs
45
QUESIONAAIRE
1. NAME:
2. AGE :
3. PH.NUMBER MOB : RESIDENCE :
4. OCCUPATION :
5. ADDRESS:
6. DO YOU THINK LIFE INSURANCE COVER IS IMPORTANT FOR YOU ?
a) Yes b) No
7. HAVE YOU TAKEN ANY LIFE INSURANCE POLICY ?
a) Yes b) No
IF YES BY WHAT AMOUNT?......................................
8. DO YOU THINK THE POLICY YOU HAVE TAKEN IS ENOUGH TO COVER
YOUR LIFE?
a) Yes b) No
9. DO YOU HAVE VEHICAL (TWO WHEELER OR FOUR WHEELER) IS IT
INSURED?
a) Yes b) No
10. WHAT ARE YOUR FUTURE GOALS?
a) MONEY b) GOING ABROAD c) CHILD EDUCATION d) HOUSE
e) CAR
11. HAVE YOU HEARD ABOUT BAJAJ ALLIANZ LIFE INSURANCE COMPANY?
a) YES b) NO
46
PRODUCT
KNOWLEDGE
47
PRODUCT KNOWLEDGE
UNIT GAIN PLAN :-
Bajaj Allianz Unit Gain offers the unique option of combining the protection of life
insurance with the attractive prospects of investing in securities. You have the choice of 6
investment funds with flexible investment management; you can change funds at any
time. You also benefit from attractive tax advantages and unmatched flexibility -to match
your changing needs. And the advantage of low fund management & fund administration
costs. This plan gives you the unmatched flexibility to match your needs.
Minimum sum assured: 5 times the annual premium
Maximum sum assured: Y times the annual premium where Y is-
Age 0-30 31-35 36-40 41-45 46-55 56-60
Y 125 105 75 55 30 20
Key Features:-
Guaranteed death benefit
Choise of 6 investment funds
Provision of full &partial withdrawal after full 3 years premium is paid.
Unmatched flexibility to match your changing needs
Birla Sun Life Insurance Company Limited :-
The company is the result of a joint venture between The Aditya Birla Group and Sun
Life Financial, a leading international financial services organization. The Aditya Birla
48
Group is the second largest business house in India, with a turnover exceeding Rs 260
billion and an asset base in excess of Rs 180 billion.
Vision :-
To be a world class provider of financial services to individuals over their lifetime
Mission :-
To be the first preference of their customers as a leading Integrated Insurance Provider of
insurance solutions through superior value creation and technology.
Core Values :-
operating with integrity to the very highest standards of business conduct.
Always working with the customer's needs in mind.
Relentlessly pursuing excellence through the people they employ and the work
they do.
Providing products and services that add value for customers, channel partners
and build value for the shareholders.
UNIT-LINKED LIFE INSURANCE SOLUTIONS :-
The Best Of Both Worlds
Birla Sun Life Insurance was the first in India to introduce Unit-Linked Life Insurance
plans. A Unit-Linked plan is a coming together of security from Life Insurance and
earnings from investments. Which means, apart from securing your future, they offer
efficient returns. What's more, they're transparent, flexible and simple to understand.
49
WHAT IS THE PLAN ABOUT?
With insurance cover till the age of 100 years, this plan is designed to provide you a
lifetime of security. While its compounding factor keeps adding on to your Investment
Fund, the flexibility allows you to withdraw money from the fund whenever you require
it in your lifetime. Tax-free ** by nature, it is suitable to be used as a tax efficient
pension plan.
UNIQUE FEATURES : -
Lifelong Insurance cover till the age of 100 years.
Three Investment Fund Options: Protector, Builder and Enhancer, with the freedom to
switch between funds any time durinmg the policy tenure.*
Flexibility to make additional lump sum investments (top ups) to increase the savings
portion of your policy.
Minimum guaranteed returns of 3% p.a. on your premium net of policy fee and
charges.The entire upside on the performance of the Fund is passed on to you.#
Options to make tax free withdrawal**from your fund anytime after three years.
Loan against your policy or surrender of the policy without penalty after 4 policy
years.@
Vary the Face Amount during the premium paying period depending on your Life
Insurance requirements .
Convenient premium payment options: Single Pay, Short Pay or Regular Pay.
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED :-
HDFC 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 a strong relationship quickly formed. Around this
50
time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship.
The next three years were filled with uncertainty, due to changes in government and
ongoing delays in getting the IRDA (Insurance Regulatory and Development authority)
Act passed in parliament. Despite this both companies remained firmly committed to the
venture.
In October 1998, the joint venture agreement was renewed and additional resource made
available. Around this time Standard Life purchased 2% of Infrastructure Development
Finance Company Ltd. (IDFC). Standard Life also started to use the services of the
HDFC Treasury department to advise them upon their investments in India.
THE HDFC UNIT LINKED ENDOWMENT PLAN GIVES YOU:
An outstanding investment opportunity by providing a choice of thoroughly
researched and selected investments
Valuable protection to your family in case you are not around
Flexible benefit combinations and payment options
Flexible additional benefit options such as critical illness cover
Access to your accumulated fund before maturity
Minimum premium :-
Rs 10000 per year (you can pay monthly, quarterly, halfyearly, annually mode)
KEY FEATURES :-
6 funds are there for allocating money
Top up of Rs.5000 is allowed
You can switch to one fund to other any time
51
Withdrawal can be made after three years
Tax benefit under section 80(c) and 10(10d)
Benefits they are providing :
Death benefit
Critical illness benefit
Accidental benefit
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED :-
ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000.
The authorized capital of the company is Rs.2300 Million and the paid up capital is Rs.
1500 Million. The Company is a joint venture of ICICI (74%) and Prudential plc UK
(26%).
The Company was granted Certificate of Registration for carrying out Life Insurance
business, by the Insurance Regulatory and Development Authority on November 24,
2000. It commenced commercial operations on December 19, 2000, becoming one of the
first few private sector players to enter the liberalized arena.
Prudential plc:
Prudential plc was founded in 1848. Since then it has grown to become one of the largest
providers of a wide range of savings products for the individual including life insurance,
pensions, annuities, unit trusts and personal banking. It has a presence in over 15
countries, and caters to the financial needs of over 10 million customers. It manages
assets of over US$ 259 billion (Rupees 11,39,600 crores approx.) as of December 31,
1999. Prudential plc. has had its presence in Asia for the past 75 years catering to over 1
million customers across 11 Asian countries.
52
UNIT LINK PLAN :-
This plan gives you protection as well as investment option
Allocation under this plan:
Minimum 70% in Debt
Maximum 30% in Equity
Annual Premium:
Rs 8000 paid annually
Rs 4000 half yearly
Rs 667 monthly
KEY FEATURES:
Withdrawal after three years
BENEFITS:
1) Death benefit
2) Maturity benefit
3) Loan against policy
4) You can do top up by minimum amount of Rs.1000
53
OM KOTAK MAHINDRA :-
OM Kotak Mahindra Life Insurance Company Limited (OMKM) is a joint venture
between Kotak Mahindra Finance Ltd., and Old Mutual plc aims to help customers take
important financial decisions at every stage in life by offering them a wide range of
innovative life insurance products, to make them financially independent. Jeene Ki
Azaadi...
Kotak Mahindra Finance Ltd :-
Kotak Mahindra is one of India's leading financial institutions, offering complete
financial solutions that encompass every sphere of life. From Banking, to Stock Broking,
to Mutual Funds, to Life Insurance, to Investment Banking, the company caters to the
financial needs of individuals and corporates.
Kotak has a group net worth of around Rs.1,400 crore and currently employs over 2,000
dedicated employees in its various businesses. With a presence in about 50 locations in
India and offices in New York, London, Dubai and Mauritius, the group currently
services a customer base of over 5,00,000.
Old Mutual :-
Old Mutual, a company with over 157 years of experience in life insurance business, has
the largest financial services business in South Africa, through its life assurance, asset
management, banking and general insurance operations. Being listed on the London
Stock Exchange and included in FTSE 100 list of companies, Old Mutual’s assets under
management are worth $208 billion (as on Dec 31st, 2001).
In the USA, Old Mutual is one of the top ten fixed annuity businesses, following its
purchase during 2001 of Fidelity & Guaranty Life Insurance Company, and its multi-
54
style asset management business offers an array of specialist asset management skills. In
the UK, Old Mutual focuses on wealth management. Gerrard, its largest UK operation, is
one of the leading private client stockbroking businesses in the country.
Old Mutual has made significant progress through, continued development of core
business and focused acquisitions. It has established a strong foundation, to build the
future business for customer and shareholder value.
The company has the ability to cater to a variety of consumer market segments, and
offers a comprehensive and innovative product range catering for all income groups.
INVESTMENT PLAN
Kotak Safe Investment Plan II is an opportunity to invest in the capital markets and gain
market linked, tax-free returns
MINIMUM PREMIUM.:
Rs 10000 paid annually ,halfyearly, quarterly
KEY FEATURES:
Five funds for allocation
BENEFITS :
Maturity Benefit
Death Benefit
Switching:
Loan Facility
Accidental Death Benefit (maximum of Rs.10 lakhs).
Permanent Disability Benefit
Critical Illness Benefit
55
MARKET SHARE
Life Insurance Market Share 2004-05 2005-06
LIC 87.7 71.04
Pvt. Players 12.3 28.96
growth in market share of private players
87.7
71.04
12.3
28.96
01020
3040506070
8090
100
2004-05 2005-06
years
m a
r k
e t
s h
a r
e (%
)
LIC
Pvt. Players
56
COMPANIES MARKET SHARE (%)
Bajaj Allianz 26.5
ICICI Pru 25.7
HDFC 10.04
SBI life 8.09
Birla SunLife 6.61
Tata AIG 4.51
Max New York 4.3
Aviva 4
Kotak Mahindra 3.88
others 6.37
Bajaj Allianz No. 1 among Private life insurance companies
8.096.61
4.51 4.3 4 3.886.37
10.04
25.726.5
0
5
10
15
20
25
30
Baja
jA
llia
nz
ICIC
I P
ru
HD
FC
sb
i li
fe
Bir
laS
un
Lif
e
Tata
AIG
Max N
ew
Yo
rk
Aviv
a
Ko
tak
Mah
ind
ra
oth
ers
Sh
are
in
%
57
MARKET SHARE Bajaj Allianz
ICICI Pru
HDFC
SBI life
Birla SunLife
Tata AIG
Max New York
Aviva
Kotak Mahindra
others
58
COMPARISION
59
COMPARISION
Particular BAJAJ
ALLIANZ
BIRLA
SUNLIFEHDFC LIFE KOTAK LIFE ICICI PRU
Entry Age Min-0
Max-60 yrs Min- 30 days;
Max- 65 years
Min- 18;
Max- 60
years
Min - 18
Max - 65 years
Min- 0 days;
Max- 60 years
Maturity Age 70 years To age 85 yrs 75 Yrs. 70 years 70 years
Premium Term
MINIMUM
PREMIUM
(RS)
yearly
Quarterly,
Half yearly,
Annually ,Sin
gle Premium
Rs 10000
Single Pay
No min.
premium.
Quarterly,
Half yearly,
Annually
RS.10000
Quarterly, Half
yearly,
Annually ,Sing
le Premium
Rs 10000
yearly
RS 18000
60
Equity-max 30%,
Debt-min 70%
Equity-65% to 100%,
Debt-0 to 35%
Equity-60%,
Debt-40%
1)Conversion plan-25% equity,75% debt
2)Moderateplan-51%eq,49 dbt
3)Aggressiveplan-75%eq,25dbt
1)Equity Fund-90%equity,10% cash
2)Equity Gain-85% equity,15% cash
3)Debt Fund-full in debt
Allocation in Equities
either the death benefit chosen or the value of the units.
maximum of Rs.10 lakhs).
Pay greater of your sum assured less withdrawals you made total fund value
Policy Fund less all withdrawals where age at death is below 72 years.
premature death- sum assured less withdrawals or bid price of units,
Death Benefit
Maxi miser ,Protector , Balancer , Preserver
Guaranteed Money market Fund, Guaranteed Gilt Fund, Guaranteed Bond Fund,
Liquid fund, secure managed fund ,Defensive fund, Equity managed fund.
Assure, Protector, Builder, Enhancer, Creator, and Magnifier.
Equity Fund, Equity Gain Fund, Equity Midcap Fund .Debt Fund, Balanced Fund, Cash Fund
Investment Fund Options
ICICI PRUKOTAK LIFEHDFC LIFEBIRLA
SUNLIFEBAJAJ
ALLIANZ Particular
61
4 free switches allowed in a year
Depending on your appetite for risk or your expectations of returns.
Two in a year.In a year two
switches are free.
3 free switches allowed in a year
Switch between Investment Funds
After 3 yrs premium u can withdraw money through partially or fully
In the 4th to the 10th year, you can withdraw amounts by complete or partial surrender of units, by paying a surrender charge of 2.5% of the amount withdrawn.
After 3 years minimum withdrawlRs.10000.
Partial withdrawals anytime after the third policy year.minimum
withdrawal Rs.10,000 maximum withdrawal Rs.25,000
After 3 yrs premium u can withdraw money
Withdrawal Benefits
After 3 yrs surrender value is 100% of total value of investment.
Section 80C, 10(10D) of Income Tax Act would apply
Under sec.80(c) tax relief benefits are there,under10(10D)tax free bennfits..
Guaranteed additions at the end of policy years 10, 15, 20 and so on.
tax relief benefitssec 80(C),Hospital
Cash Benefit(sec80 D),Deathbenefit or withdrawals are tax free(sec 10(10) D) of income tax
Guaranteed Benefits
No Maturity datepure risk cover plan, no maturity benefits.
Value of accumulative fund
Policy FundPolicy fund
On Maturity
After 3 yrs premium u can withdraw money
Anytime after the first year, you can withdraw your money
After 3 yrs premium u can withdraw money
Policy fund less surrender charges
After 3 yrs premium u can withdraw money
Surrender Benefits
ICICI PRUKOTAK LIFEHDFC LIFEBIRLA
SUNLIFEBAJAJ
ALLIANZ Particular
62
DATA
ANALYSIS
63
DATA ANALYSIS
From the data collected by me on different insurance companies we can analyse the
position of different companies as fellows:
RETURN WISE RANKING :-
If we see from the point of view of returns on different fund option of different
companies then we can find the fellowing data:
INSURANCE
COMPANIES
FUND OPTION RETURNS (%)
ICICI PRU MAXIMISER 30.70
PENSION MAXIMISER 35.79
TATA AIG AIG GROWTH 19.70
AIG EQUITY 30.91
BAJAJ ALLIANZ EQUITY PLUS 48.16
EQUITY MIDCAP PLUS 38.25
HDFC STD. GROWTH FUND 23.48
BALANCED FUND 13.55
BIRLA SUN LIFE MAGNIFIER 25.26
ENHANCER 19.70
KOTAK LIFE AGGRESSIVE GROWTH
FUND
30.77
GROWTH FUND 28.25
64
If we see from the point of view of returns the we can say that BAJAJ ALLIANZ is at the
top with 48.16 % of return in its Equity Plus Fund .
RETURNS CHART
0
10
20
30
40
50
60
NAME OF COMPANIES
RE
TU
RN
IN
%
ICICI PRU
TATA AIG
BAJAJALLIANZHDFC STD.
BIRLA SUNLIFEKOTAK LIFE
65
66
GROWTH
THE OTHER COMPARISION IS ON THE BASIC OF GROWTH OF DIFFERENT
FUNDS OF A PARTICULAR COMPANY:
PRIVATE LIFE
PLAYERS
MARKET SHARE
(%)
PREMIUM
INCOME
(Rs crore)
GROWTH
(%)
BAJAJ ALLIANZ 26.49 2,715 216
ICICI PRUDENTIAL
LIFE 25.72 2,637 66
HDFC STANDARD
LIFE 10.04 1,028 111
Bajaj Allianz Life clearly the market leader grew by 216 per cent and clocked in new
business premium of Rs 2,715.6 crore. The company cornered a market share of 7.56 per
cent. ICICI Prudential on the other hand garnered premium of Rs 2,637 crore and holds a
market share of 7.35 per cent. The other private player that registered significant growth
in the fiscal 2005-06 was HDFC Standard Life. The company's new business has grown
67
by 112 per cent to Rs 1,029 crore. The market share of HDFC Standard Life has jumped
from 1.92 per cent in 04-05 to 2.97per cent in 05-06. Of the total pie, individual regular
premium policies contributed 55 per cent at Rs 19,889 crore. Individual single premium
policies were 31 per cent of the total portfolio at Rs 10,999 crore. Individual policies
have registered an overall growth of 39 per cent against the previous year. Despite the
FBT on group superannuation, business registered a growth of 14 per cent to Rs 5,009
crore.
NET PROFIT
The company's new business has grown by 112 per cent to Rs 1,029 crore. The market
share of HDFC Standard Life has jumped from 1.92 per cent in 04-05 to 2.97per cent in
05-06. Of the total pie, individual regular premium policies contributed 55 per cent at Rs
19,889 crore. Individual single premium policies were 31 per cent of the total portfolio at
Rs 10,999 crore. Individual policies have registered an overall growth of 39 per cent
against the previous year. Despite the FBT on group superannuation, business registered
a growth of 14 per cent to Rs 5,009 crore.
GROWTH IN PROFIT OF DIFFERENT INSURANCE COMPANIES
S.NO NAME OF THE COMPANY GROWTH IN %
1 BAJAJ ALIANZ 112
2. ICICI PRU 64
3. HDFC 29
4. BIRLA SUN LIFE 26
5. KOTAK LIFE 39
6. TATA AIG 19
7. MAX NEW LIFE 14
68
GROWTH IN PROFIT
BAJAJ ALIANZ36%
ICICI PRU21%HDFC
10%
BIRLA SUN LIFE9%
KOTAK LIFE13%
TATA AIG6%
MAX NEW LIFE
5%
69
INTERPRETATION
70
INTERPRETATION
DATA INTERPRETATION :-
After analyzing the data the interpretation of the data can be done as follows.
No of clients visited are 100 in the region of Delhi and Ghaziabad.
Most of the believes in LIC they donot want to take any other policy,but some have now
different view towards it –
Maximum no of peoples are of, North Delhi region i.e. in Sanjay Gandhi
Transport Nagar market.
BAJAJ ALLIANZ is very committed towards its commitment fulfillment.
No difficulty arise in front of existing customers. Difficulties are quickly removed
in most of the areas but there should be a regular visit of the company agents to
the existing customers and area like South EX, ROHINI
The next best thing of BAJAJ ALLIANZ is its QUALITY PRODUCTS. products
should be more flexible it pays its consumers (85%) of satisfaction level.
The weakness of BAJAJ ALLIANZ as told by most of the people is it’s NIL
promotion campaign and regular visits to all the customer of Delhi, Ghaziabad. In
the market where there is cutthroat competition without a good promotional
campaign no company can survive. So in our survey we found it’s the biggest
weakness of BAJAJ ALLIANZ
If the company starts a good promotional campaign. The company can do well.
It can capture the market in long run if it makes concentration on returns from
various funds.
71
CONCLUSION
72
CONCLUSION
In this era of changing world where things are changing per minute ,quick changes are
occurring in insurance sector New companies are entering in this field every day which
causes the tough competition in market. So to attract new customers, companies are now
offering “Investment Plans” for the peoples along with the insurance. Here in this study ,
I analyze the Unit Gain plan of every company , by analyzing it we can find that BAJAJ
ALLIANZ I no.1 among all the existing pvt. Insurance companies but ICICI Pru is also
giving us a tough competition.
BAJAJ ALLIANZ is growing as market leader in life insurance sector. It has to increase
its customer care service to stay ahead from its competitiors. This project gives me idea
about the whole insurance sector in our country. What are the norms, rules regulations in
insurance business. This project give us an overview of all leading life insurance co.
along with their Unit Gain Plans.
73
EXPERIENCE
&
DIFFICULTIES
74
EXPERIENCE & DIFFICULTIES
The best experience is the corporate culture. In the field of Marketing I got to
know that there is no specific timing. If you can achieve the target you can do any
thing with the rest time.
How to approach the people, getting the feedback was a new experience for me.
Here I got to know that book knowledge and field work are very different.
In the field of marketing I found a person with good interpersonal skills,
humorous face and ready to what ever be the target can do well. It’s easy for the
people who are +ve in their attitude.
Doing the field work at 43-45 degree centigrade was bit difficult for me.
Keeping you cool and charming before approaching any customer (operator) after
walking for 3 to 4 km was a difficult but was a great experience.
75
SUGGESTIONS
AND
RECOMMENDATIONS
76
SUGGESTIONS & RECOMMENDATION
Bajaj Allianz should concentrate on advertising as it is the main weapon in this
media world. It should go to tie ups with some nationalized banks so that
peoples can make trust on it.
It should concentrate corporate tie-ups to capture mass.
It should declare a list of investing funds along with details to their clients who is
investing in Unit gain plans.It should release a report weekly or in a month to
show the current market condition to their customers as well as to the public
Motivation should be provided to the mechanics and agents through gifts,
coupons or scheme, etc.
Company should go for relation building exercise with their agents and
customers. .
Their should be a team of fully equipped technical person, which should always
be there to provide field support to the peoples or clints for any difficulty and any
other type of assistant that is been required by agent or client.
There should be easy ways to give the premium by the insurer.
Always take the where about of existing customers
If the company will start ROAD SHOWS that can give the company a compettive
edge and a better promotion.
Regular visits should be conducted to each and every customers so that customers
can be assured that someone is there to help them out from the company if any
defect arises.
Rewards (like coupon, scheme, Gifts etc), incentives should be given to the agents
and also to the officers that performs well and attract more customers.
77
PROMOTIONAL STRATEGIES
Press publicity:
Paper inserts
Advertisements in newspaper (local and national).
Interest cards distribution
Mailers/personal invitations to selective section of the society
Leaflets
Outdoor publicity:
Banners in commercial areas and prime sites.
Air balloons at shopping complex.
Bus stands shelters.
Advertisements on Dividers and Railings.
Media:
Local channel advertisement (cable TV scrolls)
Advertisements in news channels and business channels
Face to face:
Personal interaction of marketing executives through
78
Meetings
Detailing about schemes and updating them from time to time
Event sponsoring in local clubs and social gathering
Road shows
Contacting senior citizens in parks in morning and evening.
Contacting office goers in the morning and evening at stop lights by distribution
of interest cards.
79
LIMITATIONS
80
LIMITATIONS
Due to companies’ strict rules & regulations we can’t able to get
all the detailed data collected during the survey and it was difficult for us to do the
project analysis.
Some of the peoples were not ready to co-operate and were not
ready to share any information with us.
The collected data may be biased as it depends on the respondent
view.
In some of the cases as we were not able to get the data we were
not able to compare all the companies that are why we have taken few companies
only.
81
BIBLIOGRAPHY
82
BIBLIOGRAPHY
WEBSITES : -
Irdaonline.com
Bima online.com
Insurance finder.com
Economic times.com
Bajaj allianz.co.in
www.google.co.in
83
APPENDIXES
84
APPENDIXES
NEWS ARTICLES
Bajaj Allianz Life No.1 with Rs 100 cr Lead!! with 467% growth.
Bajaj Allianz life Insurance registers Rs 351.23 crore of business for month of
December, highest amongst all private life insurance cos., with growth of over
467% over last year.
Lead of Rs 100 cr over nearest competitor in the pvt. sector Life Insurance cos.
for the month of December.
Market share of over 32%.
Bajaj Allianz Life Insurance takes rank 1 for last 6 months( Jul-Dec 05) new
business.
January- 2006, Mumbai: Bajaj Allianz Life Insurance has done it once again. It has
firmly established its number one position among the private life insurers with 32%
market share & 467% growth as per the latest IRDA results for the month of December
2005.
Bajaj Allianz Life Insurance the fastest growing life insurance company with 301%
growth for the FY (Apr-Dec 05) has raced towards the No. 1 rank in the industry for the
85
month of December as well last 6 months (Jul-Dec05) as per the December IRDA results
in terms of new business premium income among private life insurers.
Sam Ghosh, Country Manager, Allianz & Chief Executive Officer, Bajaj Allianz Life
Insurance Company stated, “For the last six months new business we have the number
one position as per the IRDA results. This is a clear reinforcement of our belief in
decentralized management practices and also to our constant endeavor of introducing
wide array of customized insurance solutions that cater to all possible segments of
customers. We are clearly poised for an accelerated growth in the market and are already
the fastest growing life insurance company in India”
Salient features of the IRDA results for December 2005 are:
Dec 2005 Result as per IRDA
Rs 351.2 cr new business for Dec 2005, a growth of over 467.3 %. New Business
in Dec 2004 was Rs 61.9 cr.
Market Share Amongst pvt sector cos. in Dec 2005 is 32 % where as in Dec 2004
it was 12.2 %
Business for last 6 months (Jul-Dec) as per IRDA results :
Bajaj Allianz Life takes rank 1 amongst pvt sector life insurance cos. for the last 6
months with total new business of Rs 1181 cr. The 2 nd ranked pvt. sector Life Insurance
co. did Rs 1095 cr new business sin the same period.
Bajaj Allianz Life takes number one position.
IRDA results September 2005 positions Bajaj Allianz at No 1
Bajaj Allianz life Insurance market share amongst pvt sector life cos. jumps to
28.6 % with 360% growth in month of Sept 05 - highest amongst all life insurance
cos.
86
Bajaj Allianz Life Insurance Company has moved up to the number one position among
the private life insurers as per the latest IRDA results for the month of September. This
accreditation from the IRDA is reinforcement to our decentralized management practices
and to the wide array of services/ plans that we have on offer. Bajaj Allianz is poised for
an accelerated growth in the market and has already become the fastest growing private
life insurance company in India for more then a year.
87
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