I am PAWAN SAINI student of MBA here by declared that the research report entitled “COMPARATIVE STUDY OF BAJAJ ALLIANZ PRODUCT WITH OTHER INSURANCE COMPANIES” is completed and submitted under the guidance of ASSISTANT PROFESSOR MRS. RUPALI GUPTA FACULTY OF MBA is my original work. The imperial finding in this report is based on the data collected by me. I have not submitted this project report to BIT, MEERUT or any other University for the purpose of compliance of any requirement of any examination or degree.
PAWAN SAINI MBA III SEM ROLL NO. 0927170053
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. RAJET SHARMA (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 heartfelt thanks to Assistant Professor MRS. RUPALI GUPTA FACULTY OF MBA, BIT MEERUT for her constant suggestion which have resulted in successful completion of the project.
PREFACE It is well evident that work experience is an indispensable part of every professional course. In
the same manner practical training in any organization is must for each and every individual, who is undergoing management course. Without the practical exposure one cannot consider himself as a qualified capable manager. Hence to fulfill this requirement eight weeks training was completed at BAJAJ ALLIANZ LIFE INSURANCE COMPANY .Entering in the organization is like stepping into altogether a new world. At first every thing seems strange and unheard but as the time passes one understands the concept and working of the organization and thereby develop professional relationship. Initially it is felt as if classroom study was irrelevant and it is unless in any concern working. But gradually it is realized that all basic fundamental concepts studied are linked in one or other ways to the organization. But how and what can be done with fundamentals depends upon the intellectual and applicability of the individual.
1. 2. 3. 4. 5. 6. 7. 8. 9.
Introduction Company Profile Product knowledge Objective of the study Research Methodology Analysis Interpretation Conclusion Experience & Difficulties
5 37 50 66 68 73 92 94 96 98 102 104
10. Suggestions and Recommendation 11. Limitations 12. Bibliography
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 6
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..
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.
Before you can insure anything, you must have a legally recognized financial interest in what you are insuring
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.
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 8
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.
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 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
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. 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 12
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". 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.
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 14
inclusive we can say that all the policies which do not fall under “Life Insurance “ category fall under the General Insurance category. 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 whomever 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.
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 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. 17
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 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 nonrecourse basis. Insurance companies not only provide risk cover to infrastructure projects, they 19
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 assetliability 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 Act1938 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.
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
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. 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;
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;
specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents; d). e). f). specifying the code of conduct for surveyors and loss assessors; promoting efficiency in the conduct of insurance business; 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;
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;
regulating maintenance of margin of solvency; l). m). n). adjudication of disputes between insurers and intermediaries or insurance intermediaries; supervising the functioning of the Tariff Advisory committee; 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
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. 24
To create a family emergency fund or a fund for a family member with special needs.
SOME IMPORTANT CONCEPTS Annuitant
This is the person who receives certain amounts at yearly / half-yearly / quarterly / monthly intervals.
This 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.
This is the amount added to the basic sum assured under a with-profit life insurance policy.
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. 25
However back dating is limited to one year
An annuity plan where the first annuity payment becomes payable after a chosen period that exceeds one year.
The date on which the deferment period ends
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
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.
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.
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 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
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.
The amount paid to secure an insurance policy.
It is a form which is to be completed for securing an insurance policy.
A person who proposes the insurance policy.
Premium Waiver Benefit (PWB)
The benefits which can be availed under children's policies, wherein the future premiums payable up to vesting date are waived in the event of death of the proposer.
the amount that an insurer agrees to pay on the occurrence of an event.
The amount payable to the policy holder on his surrendering his right under a policy and terminating the contract of insurance.
The period for which insurance coverage is given.
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.
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.
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.
LIFE COVERAGE IN DIFFERENT COUNTRIES
Individual life insurance Coverage Index, 2009 Country (No. Of policies per 100 persons) Indonesia Philippines India Thailand Malaysia Hong Kong South Korea Taiwan Singapore 3.0 6.6 27.6 18.7 39.5 74.4 77.5 84.2 112.6
LIFE INSURANCE COMPANIES
S.No NAME OF THE COMPANY
NAME OF PRINCIPAL OFFICER
NAME OF APPOINTED ACTUARY
TELEPHONE NO./FAX No./E-MAIL & WEB ADDRESS
Bajaj Allianz Life Insurance Mr. Sam Mr. Andrew Wakeling Company Limited . Ghosh GE Plaza, Airport Road , YerawadaPune 411 006 Birla Sun Life Insurance Co. Mr. Kedar Mulgund Ltd 6th Floor, Vaman Centre, Mr R DMohan Makhwana Road, off Andheri-Kurla Road Andheri(E) MUMBAI-400 059. HDFC Standard Life Insurance Mr.D.M. Mr. Nick Taket Co. Ltd Satwalekar "Trade Star", 2nd floor, 'A' Wing, Kondivita Road Junction Andheri-Kurla Road Andheri (East) Mumbai 400 059.
Tel : 020-4026666 Fax : 020-4026789 . Tel : 022 5678 3333 Fax: 022 5678 3232
Tel : 022-822 2234/5551 6551 Fax: 022-2822 8844
ICICI Prudential Life Insurance Ms. Shikha Co. Ltd Sharma ICICI Prulife Towers , 1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025. ING Vysya Life Insurance Mr. Frank Company Pvt. Ltd. Koster ING Vysya Home, 5th Floor, #22 Mahatma gandhi Road
Mr. V. Rajagopalan
Tel :022-56621996 Fax: 022-56622031
Ms. Hemamalini Ramakrishnan
Tel : 080-25328000 Fax: 080-25559764
Life Insurance Corporation of Shri A.K, IndiaYogakshema, Jeeva Bima Shukla Marg, Post B19953MUMBAI 400 021 ox
Mr. Gorakh Nath Agarwal
Tel 56598701;56598702 Fax: 22824386 E-Mail ; [email protected]
Max New York Life Insurance Mr. Gary R. Co. Ltd Benett 11th Floor, DLF Square, Jacaranda Marg, DLF City , Phase-II, GURGAON 122 002. Met Life India Insurance Company Pvt. Ltd. Brigade Seshamahal, No. 5, Vani Vilas Road, Basavanagudi, BANGALORE560 004. Kotak Mahindra Old Mutual Life Insurance Limited Mr. Venktesh Mysore
Mr. John Charles Poole Tel : 0124-2561717 Fax: 0124-2561764
Mr. K. P. Sharma
Tel : 080-26438638 Fax: 080-26521970 Toll Free No. 1-600-446969
Mr. Gaurang Shah
Mr. A. Venkatasubramanian
Tel : 022-5663 5000 Fax:022-5663 5111
6th Floor Penisula Chambers, Penisula Corporate Park, Ganpatrao Kadam Park Lower Parel, MUMBAI-400 013. 10. SBI Life Insurance Co. Ltd Mr. S. Mr. I Sambasiva Rao Turner Morrison Building, 2nd Krishna murthy Floor, 16, Bank Street, Fort Mumbai-400 023. 11. Tata AIG Life Insurance Mr.Ian J.Watts Mr. Heerak Basu Company Limited 5th 7 6th Floor, Peninsula Tower, Peninsula Corporate Park Ganpatrao Kadam Marg, Lower Parel, MUMBAI 400 013. 35
Tel : 022-56392000 Fax: 022-56621471
Tel : 022-56516000 Fax : 022-56550711
LIFE INSURANCE INDUSTRY IN THE YEAR 2000-2001 HAD 10 NEW ENTRANTS, NAMELY:
Registrati Date of Reg. Name of the Company on Number
101 104 105 107 109 110 111 114 116 117 23.10.2000 15.11.2000 24.11.2000 10.01.2001 31.01.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001 HDFC Standard Life Insurance Company Ltd. Max New York Life Insurance Co. Ltd. ICICI Prudential Life Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited . ING Vysya Life Insurance Company Private Limited Bajaj Allianz Life Insurance Company Limited Met life India Insurance Company Pvt. Ltd.
1 2 3 4 5 6 7 8 9 10
Limited Bajaj Allianz Life Insurance Company
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 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 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, 2009-10, 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 2008-09, the
premium earned was Rs.480 Crores, which is a jump of 60% and the profit zoomed by 125% to Rs. 21.6 Crores
•To •To be be the the preferred first choice for insurer staff in the for customers industry.
•To be the number one insurer for creating shareholder value
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 is one of the world's leading insurers and financial services providers. 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. 41
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 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. 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. 43
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 Invest Gain (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), Unit Gain (Unit Linked Plan), Unit Gain Single Premium, Unit Gain Plus, Unit Gain Plus SP, Lifelong Gain Plan, Unit Gain Single Pension & Unit Gain Easy Pension Plans.
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 2005-06 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 2007 -08 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, 2009 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, 2009 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 General Insurance With a total new premium of around Rs 1500 crore is reported to have made a profit of Rs 50 crore in 2008-09
The ICICI Lombard with a new premium of over Rs 1500 crore in 2008-09.The private sector life insurance industry has recorded a growth of 84 % in 2008-09.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 2008-09
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, decentralized decision making • Long-term commitment to market and clients
At Bajaj Allianz, we realize 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.
Our underwriting philosophy focuses on :
• • •
Understanding the customer's needs Underwriting what we understand Meeting the customer's requirements 46
Ensuring optimal coverage at lowest cost
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.
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 analyses and assess them.
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 48
Ongoing dialogue and proactivity
Focused group network
Bajaj Allianz Life Insurance
Agency Channel Branches Satellite Satellite
Group and Alternate Channel Group Employee Benefit Corporate Agency Franchisee Brokers
Standard Chartered Bank Syndicate Bank Centurion Bank Cosmos Bank Jankalyan Sahakari Bank Jijamata Sahakari Co-op Bank
Hana Bank Grand Commercial Ta Chong Bank Taipei Bank Allianz Group - Global Banc assurance Experience
Asia Korea Taiwan
Union Bank Alliance Bank Bank of Ayudhya Bradesco Banco Bice BanCrecer
Europe Germany France Italy
Malaysia Thailand South America Brasil Chile Mexico Czechoslovak ia Hungary
Spain Portugal Austria Greece Croatia Bulgaria Poland
Dresdner Bank Hypo Vereins bank Raiffeisen bank Lyonnais Unicredito Italiano Rolo Banca Casa di Risparmio Credit Banco di Scicilia Banco Antoniana Popular Banco Regionale Europe Banco Popular BPI-SGPS Bawag Ergo Bank Bank of Piraeus Zagre backa Bank Bulbank Pekao S.A. BPH
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 51
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---
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 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.
To be a world class provider of financial services to individuals over their lifetime
To be the first preference of their customers as a leading Integrated Insurance Provider of insurance solutions through superior value creation and technology.
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.
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.
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 [email protected]
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. 54
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 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. 55
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 PRIMIUM: Rs 10000 per year (you can pay monthly, quarterly, half yearly, annually mode)
• 6 funds are there for allocating money •
• Top up of Rs.5000 is allowed You can switch to one fund to other any time 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 56
Prudential Life Insurance Company Limited ICICI
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 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.
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
2) Maturity benefit 3) Loan against policy 4) You can do top up by minimum amount of Rs.1000
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 corporate. 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.
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
Death Benefit 59
Switching: Loan Facility Accidental Death Benefit (maximum of Rs.10 lakhs). Permanent Disability Benefit Critical Illness Benefit
MARKET SHARE Life Insurance Market Share LIC Pvt. Players 2008-09 87.7 12.3 2009-10 71.04 28.96
growth in market share of private players COMPANIES MARKET SHARE (%) Bajaj Allianz 26.5 100 87.7 ICICI Pru 25.7 90 HDFC 10.04 80 71.04 SBI life 8.09 70 Birla SunLife 6.61 60 Tata AIG 4.51 LIC 50 Max New York 4.3 Pvt. Players 40 r e (%)Aviva 4 28.96 30 Mahindra Kotak 3.88 20 12.3 others 6.37
10 0 2008-09 years 2009-10
m a r k e t shares shares aaaaaaaare RRE
Bajaj Allianz No. 1 among Private life insurance companies
30 25 Share in % 20 15 10 5 0 ICICI Pru sbi life Birla SunLife Tata AIG Max New York Kotak Mahindra Bajaj Allianz others HDFC Aviva 10.04 26.5 25.7
Bajaj Allianz ICICI Pru HDFC SBI life Birla SunLife Tata AIG Max New York Aviva Kotak Mahindra others
Min-0 Min- 18; Min- 30 days; Max- 60 Max-60 yrs Max- 65 years years To age 85 yrs 75 Yrs.
Min - 18 Max - 65 years
Min- 0 days; Max- 60 years
Maturity Age 70 years
Quarterly, Single Pay Half yearly, Annually ,Single Premium
Quarterly, Quarterly, yearly Half yearly, Half yearly, Annually Annually ,Single Premium
MINIMUM PREMIUM (RS)
No min. premium.
Rs 10000 RS.10000 RS 18000
P a r tic u la r
I n v e s t m e E tq n
P a r tic u la r B
A fte S urren dprem e
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
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 Kanpur. 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. 70
Organizing and carrying out the fieldwork. Analyzing the collected data and reporting the findings.
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 prospective: ---
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 71
Questionnaire with Dichotomous and Multiple Choice Questions. Main aim is to compare the Customer Attitude and Loyalty towards UNIT GAIN product of different companies.
Secondary Data Source: Internal sources: On-Line Information, Report of IRDA (INSURANCE REGULATORY
External data: Magazines like Business Standard, Books on insurance and journals . 3. SAMPLING PLAN Sampling Unit (Who Is Being Surveyed)
All prospective who are interesting in investment cum insurance?
Sampling Size (How Many People Should Be Surveyed)
100 customers in Kanpur
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 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 following data:
INSURANCE COMPANIES ICICI PRU TATA AIG BAJAJ ALLIANZ HDFC STD. BIRLA SUN LIFE KOTAK LIFE
MAXIMISER PENSION MAXIMISER AIG GROWTH AIG EQUITY EQUITY PLUS EQUITY MIDCAP PLUS GROWTH FUND BALANCED FUND MAGNIFIER ENHANCER AGGRESSIVE GROWTH FUND GROWTH FUND
30.70 35.79 19.70 30.91
23.48 13.55 25.26 19.70 30.77 28.25
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.
R E T U R N IN %
RETURNS CHART ICICI PRU TATA AIG BAJAJ ALLIANZ HDFC STD. BIRLA SUN LIFE KOTAK LIFE
50 40 30 20 10 0
NAME OF COMPANIES
GROWTH THE OTHER COMPARISION IS ON THE BASIC OF GROWTH OF DIFFERENT FUNDS OF A PARTICULAR COMPANY:
PRIVATE LIFE PLAYERS BAJAJ ALLIANZ ICICI PRUDENTIAL LIFE HDFC STANDARD LIFE PREMIUM MARKET INCOME GROWTH SHARE (%) (Rs crore) (%) 26.49 2,715 216 25.72 10.04 2,637 1,028 66 111
BAJAJ ALLIANZ ICICI PRUDENTIAL LIFE HDFC STANDARD LIFE OTHERS
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 2006-07 was HDFC Standard Life. 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 05-06 to 2.97per cent in 06-07. 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.
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 05-06 to 2.97per cent in 06-07. 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 1 2. 3. 4. 5. 6. 7.
NAME OF THE COMPANY
ICICI PRU HDFC BIRLA SUN LIFE KOTAK LIFE TATA AIG MAX NEW LIFE
GROWTH IN % 112 64 29 26 39 19 14
Rank the life insurance companies in the your order of preference :
FIRST PREFERENCE OF PEOPLE AMONG PVT. LIFE INSURANCE COMPANIES
ICICI Prudential Max Newyork HDFC
2. Do you see insurance policies as an investment alternative or a security option?
PURPOSE OF INSURANCE
Investment Alternative Security Option
3. Please rank the following as per your preference to investment in a financial year: 81
INVESTMENT PREFERENCES IN VARIOUS ALTERNATIVES
20 15 10 5 0
(No. of people)
Lif e insurance
MAX NEW LIFE 5% TATA AIG 6% KOTAK LIFE 13% BIRLA SUN LIFE 9% HDFC 10%
GROWTH IN PROFIT
BAJAJ ALIANZ 36%
ICICI PRU 21%
. Do you think that private life insurance companies are as safe as LIC for taking a policy?
PERCEPTION OF PEOPLE ABOUT SAFETYNESS : LIC Vs PVT. LIFE INSURANCE COMPANIES
Awareness level of Bajaj Allianz life insurance Total No. of Respondents 200
Aware with Bajaj Allianz
Awareness level of Bajaj insurance policiesTotal No. of Respondents 200
Aware with bajaj insurance
Don’t no about Bajaj insurance
Why one should take insurance cover
20% 55% 4% 0%
Risk Coverage Returns Financial Security of Beloved ones Tax Benefits Savings
The p ercentage of Insured & Uninsured Peopel
4. What is your criteria/criterion to select a particular insurance company and a scheme?
CRITERIA FOR SELECTING AN INSURANCE COMPANY
20 20 15 8 10 5 0
Security Time span Market share Return All of the above
7. BAJAJ Allianz is quite a famous company because:
FAMOUSNESS REASONS OF BAJAJ ALLIANZ
16% 40% 20%
MKTG. AND ADV. STRATEGIES
All OF THE ABOVE
PURPOSE OF INSURANCE
Investment Alternative Security Option
Are you satisfied with your existing policy/policies?
SATISFACTION LEVEL OF POLICY HOLDERS
Not satisfied 31% Satisfied 69%
Satisfied Not satisfied
Where the persons want to be investe
Mutual Funds Equity Market PPF
After analyzing the data the interpretation of the data can be done as follows. No of clients visited are 100 in the region of Kanpur. Most of the believes in LIC they don’t want to take any other policy, but some have now different view towards it -- --
BAJAJ ALLIANZ is very committed towards its commitment fulfillment.
No difficulty arises 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 Moradabad.
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 customers, 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.
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 competitors. This project gives me idea about the whole insurance sector in our country. What are the norms, rules regulations in insurance business? This project gives us an overview of all leading life insurance co. along with their Unit Gain Plans.
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 fieldwork 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.
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 competitive edge and a better promotion. 100
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.
Paper inserts Advertisements in newspaper (local and national). Interest cards distribution Mailers/personal invitations to selective section of the society Leaflets
Banners in commercial areas and prime sites. Air balloons at shopping complex. Bus stands shelters. Advertisements on Dividers and Railings.
Local channel advertisement (cable TV scrolls) Advertisements in news channels and business channels
Face to face: Personal interaction of marketing executives through 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.
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.
Beri G.C., Marketing Research, Tata McGraw Hill Publishing Co. LTD., New Delhi, Third Edition (2002)
Saxana Rajan, Marketing Management, Tata McGraw Hill Publishing Co. LTD, New Delhi, Second Edition (2001)
Saxena R.S., Marketing Management, Himalaya Publication, New Delhi, Ninth Edition (2000)
Philip Kotlar, Marketing Management, Pren Tice-hall of India PVT. LTD., New Delhi, Ninth Edition (2002)
WEBSITES:Irdaonline.com Bima online.com Insurance finder.com Economic times.com Bajaj allianz.co.in
1. NAME: 2. AGE: 3. PH.NUMBER MOB: 4. OCCUPATION: 5. ADDRESS: 6. DO YOU THINK LIFE INSURANCE COVER IS IMPORTANT FOR YOU? a) YES b) NO RESIDENCE:
7. HAVE YOU TAKEN ANY LIFE INSURANCE POLICY? a) YES b) NO
IF YES BY WHAT AMOUNT & WHICH COMPANY? 8. DO YOU THINK THAT PRIVATE LIFE INSURACE COMPANIES ARE SAFE AS LIC FOR TAKING A POLICY? a) YES b) NO
9. WHAT IS YOUR CRITERIA/CRITERION TO SELECT A PARTICULAR INSURANCE COMPANY AND A SCHEME? a) SECURITY b) TIME SPAN c) RETURN d) ALL OF THESE
10. DO YOU THINK THE POLICY YOU HAVE TAKEN IS ENOUGH TO COVER YOUR LIFE? 108
11. DO YOU HAVE VEHICAL (TWO WHEELER OR FOUR WHEELER) IS IT INSURED? a) YES b) NO
12. WHAT ARE YOUR FUTURE GOALS? a) MONEY b) GOING ABROAD e) CAR c) CHILD EDUCATION d) HOUSE
13. HAVE YOU HEARD ABOUT BAJAJ ALLIANZ LIFE INSURANCE COMPANY? a) YES b) NO
14. DO YOU THINK THAT PRIVATE LIFE INSURANCE COMPANIES ARE AS SAFE AS LIC FOR TAKING A POLICY? a)YES b) NO
15. ARE YOU SATISFIED WITH YOUR EXISTING POLICY/POLICES? a)YES b)NO