Bajaj Allianz Project

Bajaj
Allianz General Insurance Co. Ltd.
CHAPTER - I
INDUSTRY PROFILE
The Indian General Insurance Industry has reported strong growth in the past
decade, mainly benefitting from the low degree of insurance penetration in the
country. Over the past five years, the Gross Premium Written by Indian general
insurance industry reported a compounded annual growth rate (CAGR) of 18.1%
to Rs. 650 Billion in FY13. With high co-relation between the growth rates in
General Insurance Premiums and the National GDP growth rates, we expect the
industry growth rates to moderate in line with the slowdown in Indian GDP
growth. Accordingly ICRA estimates the General Insurance Industry to grow at
around 15% in FY14. The Private Sector players have maintained a higher growth
rate compared to their PSU peers and have seen a gradual increase in their market
share to 47% in H1FY14 (40% in FY08). We expect the trend to continue going
forward with our forecast of relatively higher growth for Private Sector players.
Motor insurance constitutes the largest segment of general insurance business in
India with a share of around 46% in FY13, followed by Health and Personal
Accident segment with 26% share and Fire & Engineering segment with 14%
share. Notwithstanding the upward revision in the premium rates for third party
insurance for Commercial Vehicles in the last few years, the growth in motor
insurance volumes has moderated in line with slowdown in economic growth;
accordingly outlook for this segment continues to remain weak over the medium
term.
The Health & Personal Accident segment is expected to witness robust growth
rates given the increasing focus of the players to cater to this segment and the
improving penetration arising from increasing public awareness and government
sponsored schemes such as the Rashtriya Swasth Bima Yojana (RSBY). While the
growth rates in the Fire & Engineering segments have improved in the last few
years with improved pricing strategies, we expect the growth rates to moderate as
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this segment will get directly impacted by lower GDP growth with the
postponement of capital expenditure and new infrastructure projects. The Indian
General Insurance industry would require capital of around Rs. 500-700 billion
equity capital if the current penetration levels of around 0.7% were to approach
the global average of around 2.8% over a period of five years. However, the
actual capital requirements will be dependent on the business mix, growth rates
and claims experience, ICRA estimates that to maintain a solvency at 1.75 times
(as compared to the regulatory requirement of 1.45 times from March 2014) while
growing at a CAGR of 15-20% and maintaining similar claims records, the
General Insurance industry would require around Rs 75-175 billion of capital over
the next five years with the requirement for private sector at around Rs 45-80
billion. The sizeable unrealised capital gains from the past investments for the
public sector insurers provide sufficient buffer to support future growth while the
private sector insurers with relatively shorter operating history track record and
lower market share will need external capital to fund growth in business. In this
context we expect that the proposed hike in FDI ceiling in the insurance sector
(subject to Parliamentary approvals) will be beneficial as it could partly address
the capital requirements for the industry and also aid in faster penetration. Based
on H1FY14 numbers reported by 12 entities excluding Tata AIG, the performance
for the industry continues to improve, with underwriting loss at 11.3%, being
lower than FY13 level of 14.4%. This has resulted in improved operating profit
before considering realised gains of 6% compared to 2.1% in FY13. However the
underwriting performance of the private sector players continued to be better than
the PSUs. The Profit after tax by net premium earned improved to 10.1%
compared to 7.8% in FY13 for these 12 entities.
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HISTORY
Ancient world
In some sense, we can say that insurance dates back to early human society. We
know of two types of economies in human societies: natural or non-monetary
economies (using barter and trade with no centralized nor standardized set of
financial instruments) and monetary economies (with markets, currency, financial
instruments and so on).Insurance in the former case entails agreements of mutual
aid. Granaries embodied another early form of insurance to indemnify against
famines. These types of insurance have survived to the present day in countries or
areas where a modern money economy with its financial instruments is not
widespread.
The first methods of transferring or distributing risk in a monetary economy, were
practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd
millennia BC, respectively. Chinese merchants travelling treacherous river rapids
would redistribute their wares across many vessels to limit the loss due to any
single vessel's capsizing. The Babylonians developed a system which was
recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early
Mediterranean sailing merchants.
At some point in the 1st millennium BC, the inhabitants of Rhodes created the
'general average'. This allowed groups of merchants to pay to insure their goods
being shipped together. The Greeks and Romans introduced the origins of health
and life insurance c. 600 BC when they created guilds called "benevolent
societies" which cared for the families of deceased members, as well as paying
funeral expenses of members. Before insurance was established in the late 17th
century, "friendly societies" existed in England, in which people donated amounts
of money to a general sum that could be used for emergencies.
Medieval world
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Separate insurance contracts (i.e., insurance policies not bundled with loans or
other kinds of contracts) were invented in Genoa in the 14th century, as were
insurance pools backed by pledges of landed estates. The first known insurance
contract dates from Genoa in 1347, and in the next century maritime insurance
developed widely and premiums were intuitively varied with risks. The first
printed book on insurance was the legal treatise On Insurance and Merchants'
Bets by Pedro de Santarm (Santerna), written in 1488 and published in 1552.
Modern Insurance
Insurance became far more sophisticated in Enlightenment era Europe, and
specialized varieties developed. Some forms of insurance developed in London in
the early decades of the 17th century.
Property insurance
Property insurance as we know it today can be traced to the Great Fire of London,
which in 1666 devoured more than 13,000 houses. The devastating effects of the
fire converted the development of insurance "from a matter of convenience into
one of urgency, a change of opinion reflected in Sir Christopher Wren's inclusion
of a site for 'the Insurance Office' in his new plan for London in 1667".A number
of attempted fire insurance schemes came to nothing, but in 1681, economist
Nicholas Barbon and eleven associates established the first fire insurance
company, the "Insurance Office for Houses", at the back of the Royal Exchange to
insure brick and frame homes. Initially, 5,000 homes were insured by his
Insurance Office.
Business insurance
Lloyd's Coffee House was the first marine insurance company.
At the same time, the first insurance schemes for the underwriting of business
ventures became available. By the end of the seventeenth century, London's
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growing importance as a centre for trade was increasing demand for marine
insurance. In the late 1680s, Edward Lloyd opened a coffee house on Tower Street
in London.
Life insurance
The first life insurance policies were taken out in the early 18th century. The first
company to offer life insurance was the Amicable Society for a Perpetual
Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas
Allen.
Accident insurance
The Railway Passengers Assurance Company was founded in 1848 as the first
company to provide accident insurance.
In the late 19th century, "accident insurance" began to become available. This
operated much like modern disability insurance. The first company to offer
accident insurance was the Railway Passengers Assurance Company, formed in
1848 in England to insure against the rising number of fatalities on the nascent
railway system. It was registered as the Universal Casualty Compensation
Company.
National insurance
By the late 19th century, governments began to initiate national insurance
programs against sickness and old age. Germany built on a tradition of welfare
programs in Prussia and Saxony that began as early as in the 1840s. In the 1880s
Chancellor Otto von Bismarck introduced old age pensions, accident insurance
and medical care that formed the basis for Germany's welfare state. In Britain
more extensive legislation was introduced by the Liberal government, led by
Herbert Asquith and David Lloyd George. The 1911 National Insurance Act gave
the British working classes the first contributory system of insurance against
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illness and unemployment. By 1913, 2.3 million were insured under the scheme
for unemployment benefit and almost 15 million insured for sickness benefit.
Insurance in India
Insurance in India refers to the market for insurance in India which covers both
the public and private sector organisations. It is listed in the Constitution of India
on the in the Seventh Schedule meaning it can only be legislated by the central
government.
The insurance sector has gone through a number of phases by allowing private
companies to solicit insurance and also allowing foreign direct investment. India
allowed private companies in insurance sector in 2000, setting a limit on FDI to
26%, which was increased to 49% in 2014.
History: In India, insurance has a deep-rooted history. Insurance in various forms
has been mentioned in the writings of Manu (Manusmrithi), Yagnavalkya
(Dharmashastra) and Kautilya (Arthashastra). Insurance in its current form has its
history dating back until 1818, when Oriental Life Insurance Company was
started by Anita Bhavsar in Kolkata to cater to the needs of European community.
1818 saw the advent of life insurance business in India with the establishment of
the Oriental Life Insurance Company in Calcutta. This Company however failed
in 1834. In 1829, the Madras Equitable had begun transacting life insurance
business in the Madras Presidency. The pre-independence era in India saw
discrimination between the lives of foreigners (English) and Indians with higher
premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance
Society became the first Indian insurer. 1870 saw the enactment of the British
Insurance Act and in the last three decades of the nineteenth century, the Bombay
Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the
Bombay Residency. This era, however, was dominated by foreign insurance
offices which did good business in India, namely Albert Life Assurance, Royal
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Insurance, Liverpool and London Globe Insurance and the Indian offices were up
for hard competition from the foreign companies. At the dawn of the twentieth
century, many insurance companies were founded. In the year 1912, the Life
Insurance Companies Act and the Provident Fund Act were passed to regulate the
insurance business. The Life Insurance Companies Act, 1912 made it necessary
that the premium-rate tables and periodical valuations of companies should be
certified by an actuary. However, the disparity still existed as discrimination
between Indian and foreign companies. The oldest existing insurance company in
India is the National Insurance Company, which was founded in 1906, and is still
in business. In 1907, the Indian Mercantile Insurance Ltd. was established and
was the first company to transact all classes of general insurance business. In
1914, the Government of India started publishing returns of Insurance Companies
in India. The Indian Life Assurance Companies Act, 1912 was the first statutory
measure to regulate life business. In 1928, the Indian Insurance Companies Act
was enacted to enable the Government to collect statistical information about both
life and non-life business transacted in India by Indian and foreign insurers
including provident insurance societies. In 1938, with a view to protecting the
interest of the Insurance public, the earlier legislation was consolidated and
amended by the Insurance Act, 1938 with comprehensive provisions for effective
control over the activities of insurers.
The Insurance Amendment Act of 1950 abolished Principal Agencies.
The Government of India issued an Ordinance on 19 January 1956 nationalising
the Life Insurance sector and Life Insurance Corporation came into existence in
the same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16
non-Indian insurers as also 75 provident societies245 Indian and foreign
insurers in all. In 1957, General Insurance Council (GIC), a wing of the Insurance
Association of India was established The General Insurance Council framed a
code of conduct for ensuring fair conduct and sound business practices across
Non-Life or General insurance sector.
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In 1968, the Insurance Act was amended to regulate investments and set
minimum solvency margins. The Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalisation)
Act, general insurance business was nationalized with effect from 1st January,
1973. 107 insurers were amalgamated and grouped into four companies, namely
National Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd and the United India Insurance Company Ltd.
The General Insurance Corporation of India was incorporated as a company in
1971 and it commence business on January 1st 1973.
Industry structure
By 2012 Indian Insurance is a US$72 billion industry. However, only two million
people (0.2% of the total population of 1 billion) are covered under Mediclaim,
whereas in developed nations like USA about 75% of the total population are
covered under some insurance scheme. With more and more private companies in
the sector, this situation is expected to change. ECGC, ESIC and AIC provide
insurance services for niche markets. So, their scope is limited by legislation but
enjoy some special powers.
Insurance Repository
On 16th September 2013, IRDA launched 'Insurance Repository' services in India.
It is a unique concept and first to be introduced in India. This system enables
policy holders to buy and keep insurance policies in dematerialized or electronic
form. Policy holders can hold all his insurance policies in an electronic format in
a single account called electronic insurance account (eIA). Insurance Regulatory
and Development Authority has issued licenses to five entities to act as Insurance
Repository:
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NSDL Database Management Limited, Central Insurance Repository Limited

(CIRL), SHCIL Projects Limited, Karvy Insurance repository Limited, CAMS
Repository Services Limited
Legal structure
The insurance sector went through a full circle of phases from being unregulated
to completely regulated and then currently being partly deregulated. It is governed
by a number of acts.
The Insurance Act of 1938 was the first legislation governing all forms of
insurance to provide strict state control over insurance business. Life insurance in
India was completely nationalized on 19 January 1956, through the Life Insurance
Corporation Act. All 245 insurance companies operating then in the country were
merged into one entity, the Life Insurance Corporation of India.
The General Insurance Business Act of 1972 was enacted to nationalise the about
100 general insurance companies then and subsequently merging them into four
companies. All the companies were amalgamated into National Insurance, New
India Assurance, Oriental Insurance and United India Insurance, which were
headquartered in each of the four metropolitan cities. Until 1999, there were no
private insurance companies in India. The government then introduced the
Insurance Regulatory and Development Authority Act in 1999, thereby deregulating the insurance sector and allowing private companies. Furthermore,
foreign investment was also allowed and capped at 26% holding in the Indian
insurance companies.
In 2006, the Actuaries Act was passed by parliament to give the profession
statutory status on par with Chartered Accountants, Notaries, Cost & Works
Accountants, Advocates, Architects and Company Secretaries. A minimum capital
of US$80 million (Rs.400 Crore) is required by legislation to set up an insurance
business.
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Authorities
The primary regulator for insurance in India is the Insurance Regulatory and
Development Authority (IRDA) which was established in 1999 under the
government legislation called the Insurance Regulatory and Development
Authority Act, 1999.
The industry recognises examinations conducted by IAI (for actuaries), III (for
agents, brokers and third-party administrators) and IIISLA (for surveyors and loss
assessors). TAC is the sole data repository for the non-life industry. IBAI gives
voice for brokers while GI Council and LI Council are platforms for insurers.
AIGIEA, AIIEA, AIIEF, AILICEF, AILIEA, FLICOA, GIEAIA, GIEU and
NFIFWI cater to the employees of the insurers. In addition, there are a dozen
Ombudsman offices to address client grievances.
Insurance is basically of two types namely life insurance and general insurance.
Life insurance covers the risk of death of individuals. General insurance
comprises health insurance, motor insurance, fire insurance, marine and hull
insurance, cargo insurance and householder's insurance etc. There are total 27
general insurance companies in India. Out of 27 general insurance companies in
India, 4 companies offer only health insurance products. Rest of the companies
provides all varieties of general insurance products.
General Insurance Companies in India:

1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
14)
Agriculture Insurance Co. of India Ltd.

Bajaj Allianz General Insurance Co. Ltd.
Bharti AXA General Insurance Company Limited.
Cholamandalam MS General Insurance Co. Ltd.
Export Credit Guarantee Corporation of India Ltd.
Future Generali India Insurance Company Limited.
HDFC ERGO General Insurance Co. Ltd.
ICICI Lombard General Insurance Co. Ltd.
IFFCO Tokio General Insurance Co. Ltd.
L&T General Insurance Company Limited.
Liberty Videocon General Insurance.
Magma HDI General Insurance Company Limited.
National Insurance Co Ltd.
Raheja QBE General Insurance Company Limited.
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15)
16)
17)
18)
19)
20)
21)
22)
23)
24)
25)
26)
27)
Reliance General Insurance Co. Ltd.

Royal Sundaram Alliance Insurance Co. Ltd.
SBI General Insurance Company Limited.
Shriram General Insurance Company Limited.
Tata AIG General Insurance Co. Ltd.
The New India Assurance Co. Ltd.
The Oriental Insurance Co. Ltd.
United India Insurance Co. Ltd.
Universal Sompo General Insurance Co. Ltd.
Apollo Munich Health Insurance Company Limited.
Max Bupa Health Insurance Company Ltd.
Religare Health Insurance Company Limited.
Star Health and Allied Insurance Company Limited.
Insurance Market shared by private players
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Chart 1.1
Indian Scenario:
In India, the growth story is intact, economists are positive, the demographics is
shifting to a much younger population and we will be one of the countries with
the most educated people. The industry grew at a CAGR of 17.9% in the last five
years (from FY 2007-08 to FY 2012-13).
The penetration of general insurance industry in India at present is 0.78% of GDP
as on 2013, which is very low as compared to global standards. The penetration of
basic personal lines of insurance like health or home its dismally low. Health
Insurance is less than 10% of the people who can afford it. Home insurance is still
less at hardly 1%.
Global Scenario:
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Global integration of financial markets resulted from de-regulating measures,

technological information explosion and financial innovations. Liberalisation and
Globalisation have allowed the entry of foreign players in the Insurance sector.
With the entry of private and foreign players in the Insurance business, people
have got a lot of options to choose from. Radical changes are taking place in
customer profile due to the changing life style and social perception, resulting in
erosion of brand loyalty. To survive, the focus of the modern insurers shifted to a
customer-centric relationship. The paper focuses the current position of insurance
industry.
In the past decade, insurance companies have experienced some dramatic shifts.
Many of the trends that we have discussed in previous outlooks have changed the
shape and direction of the industry. Issues include increasing customer
sophistication, growing use of technology across all aspects of the insurance value
chain, greater collaboration and alignment with insurance regulators, and
significant innovation in the products being offered. In 2014, insurers in the AsiaPacific region will continue to face slower economic growth, a lingering lowinterest-rate environment and regulation that is wider in scope and severity at the
national and regional level. However, the liberalization of trade barriers (as
evidenced by the Shanghai Free-Trade Zone in the fall of 2013 and the 2015
target date for ASEAN integration) and the continuing increase in middle-class
and high-net-worth consumers is highly favorable for the insurance industry.
As insurers in Asia-Pacific assess these challenges, they are responding with cost
control and internal process improvements. Many are consolidating cumbersome
legacy systems and implementing data analytics to build more efficient operations
and improve underwriting and claims practices.
Successful insurers in Asia-Pacific in 2014 will:
Deploy products to meet changing consumer needs.

Exploit pockets of higher growth.
Develop digital distribution strategies.
Get ahead of regulatory developments.
Implement data analytics for competitive advantage.
Identify areas for expense reduction.
Global systemically important insurers
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In 2013, Ping An was the only Asia-Pacific insurer out of nine globally to be
designated as a global systemically important insurer (G-SII) by the G-20
Financial Stability Board. Designation as a G-SII subjects an insurer to
heightened group-wide supervision, additional capital requirements, recovery and
resolution plans, and increased reporting requirements, all of which add cost. The
potential for additional designees in the region is a concern, as is the possibility
that the G-SII regulation will be applied at the national level. This trend is evident
in the banking sector and has the potential to transcend into insurance. IAIS has
adopted a three-tier structure of insurance supervision, with G-SII requirements at
the highest level and insurance core principles (ICPs) at the lowest level. At the
intermediate level, IAIS intends to issue further standards for internationally
active groups, including capital adequacy standards. These second-tier standards
will include many more Asia Pacific insurers and may also become a benchmark
for local capital standards.
Global accounting standards

As insurers expand their geographic footprint in the region and seek capital from
new sources, the ability to provide financial reports and statements to meet global
standards will become a necessity. Identifying and understanding these changes
will be difficult for insurers and a diversion from their focus on local or regional
growth. The eventual introduction of International Financial Reporting Standards
(IFRS 4 Phase II) will require insurers in Asia-Pacific to report how they plan to
implement these new accounting and disclosure changes and comment on how
they will impact their
Bajaj Allianz General Insurance Company Private Limited

Market Share Product Wise
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Chart 1.2
CHAPTER - II
COMPANY PROFILE
COMPANY AT GLANCE
Name of the Company: Bajaj Allianz General Insurance Co. Pvt Ltd
Year of Establishment: 2001
Type: Public Company
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Headquarters: Pune, India.

Key person: Tapan Singel (M.D & C.E.O)
Competitors: United India Insurance, Oriental Insurance, American
International Group, INC/ TATA AIG, ICICI Bank Ltd, Bharti AXA, Reliance
Main Products: car insurance, two wheeler insurance, travel insurance, health
insurance, home insurance and commercial insurance.
Paid up Capital: 110 Crores

The Company Share is divided as follows:
Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.
Board of Directors:
Sanjiv Bajaj, Chairman
Also MD, Bajaj Finserv Ltd.
Bajaj Holdings & Investment Ltd.
Rahul Bajaj, Director
Also Chairman, Bajaj Auto Ltd.
Bajaj Finserv Ltd. Mukund Ltd.
Bajaj Holdings & Investments Ltd.
Niraj Bajaj, Director
Also Chairman & MD,
Mukund Ltd.
Ranjit Gupta, Director
Also President (Insurance),
Bajaj Finserv Ltd.
Manuel Bauer, Director
Also Member of the Board of Management, Growth Markets,
Allianz SE
Kamesh Goyal, Director
Head Global Planning &Controlling
Allianz SE
Dipak Poddar, Independent Director
Also Executive Chairman,
Poddar Developers Ltd.
Sanjay Asher, Independent Director
Also Partner, Also Former CEO,
Crawford Bayley & Co.
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Suraj Mehta,Independent Director

Also Former CEO,
Nabil Bank Ltd.
S. H. Khan, Independent Director
Also Former Chairman, IDBI Ltd.
Manu Tandon, Independent Director
Also Former MD,
Elantas Beck India Ltd.
Tapan Singhel
Managing Director & CEO.
Bajaj Allianz General Insurance Company Limited

It's a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj
Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and
strength.
Bajaj Allianz received the Insurance Regulatory and Development Authority
(IRDA) certificate of Registration on 2nd May, 2001 to conduct various
businesses (including Health Insurance business) in India. The Company has an
authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74%
and the remaining 26% is held by Allianz, SE.
As on 31st March 2013 Bajaj Allianz maintained its premier position in the
industry by achieving growth as well as profitability. Bajaj Allianz has made a
profit before tax of Rs.421 Crores and has become the only private insurer to
cross the Rs.100 crore mark in profit before tax in the last two years. The profit
after tax was Rs.295 Crores, 138.5% higher than the previous year.
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Bajaj Allianz today has a countrywide network connected through the latest
technology for quick communication and response in over 200 towns 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.
A Partnership Based on Synergy

Bajaj Allianz offers technical excellence in all areas of General and Health
Insurance as well as Risk Management. This partnership successfully combines
Bajaj Finserv's in-depth understanding of the local market and extensive
distribution network with the global experience and technical expertise of the
Allianz Group. As a registered Indian Insurance Company and a capital base of
Rs. 110 crores, the company is fully licensed to underwrite all lines of insurance
business including health insurance.
A.
INCEPTION AND BACKGROUND OF THE

COMPANY
Bajaj Allianz General Insurance Co Pvt Ltd is a joint venture of Bajaj Finserv Ltd
and Allianz SE, it was started in 2001 and it has two company one is Bajaj Allianz
Life Insurance Co Pvt Ltd & Bajaj Allianz General Insurance Co Pvt Ltd
established in Pune, Maharashtra. It offers wide variety of non-life insurance
products like car insurance, two wheeler insurance, travel insurance, health
insurance, home insurance and commercial insurance. It has a reputed world class
service and claims with its excellent past history. It has come up with various
innovative insurance products & has won many awards in its innovations. Bajaj
Allianz today has a network of 42 offices spread across the
length and breadth of the country.
ALLIANZ GROUP
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Allianz Group is one of the world's leading insurers and financial services
providers. It is largest general insurance company in the world by revenue (2010)
(106.5 billion Euros).
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with
almost 174,000 employees. The group serves approximately 75 million customers
worldwide. Provides insurance to almost half of the fortune 500 companies. At the
top of the international group is the holding company, Allianz AG, with its head
office in Munich.
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. Bajaj Group consists of Bajaj Auto Ltd, Bajaj Finserv Ltd,
Bajaj Life Insurance Co Ltd, Bajaj General Insurance Co Ltd & Bajaj Auto
Finance Ltd.
A household name in India, Bajaj Auto has a strong brand image & brand loyalty
synonymous with quality & customer focus. Bajaj is among the top 10 business
houses in India & is one of the most renowned corporate of the country.
The initial venture was in auto industry as Bajaj Auto Ltd. From there they
diversified into Bajaj Finserv Ltd. Few range of Services provided by them are:
General Insurance Ltd.

Life and Health Insurance.
Asset Management and Banking.
B.
NATURE OF BUSINESS
Bajaj Allianz General Insurance Co Pvt Ltd is a non-life insurance company

which offers a wide range insurance products and services for its products with a
wide network established by its tie up program with several organisations
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C.
VISION AND MISSION AND QUALITY POLICY
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.
VALUES:
Fig. 2.1
1)
(a)
(b)
(c)
(d)
2)
(a)
(b)
(c)
(d)
Customer First, Always:

Treating all customers with warmth and respect.
Understanding and managing customer expectation.
Listen and are emphatic to the customer.
Engage with the customer in the long term.
Spirit of Adventure:
Leading change.
Looking for opportunities to innovate at every level.
Empowering others to take responsible decisions.
Showing tolerance for failure.
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3)
(a)
(b)
(c)
(d)
(e)
(f)
Trust:
Accessible to all.
Fair and Transparent.
Open to Feedback.
Keeping Commitments.
Trusting each other to do a good job and giving due respect.
Own up to mistakes.
4)
(a)
(b)
(c)
(d)
5)
(a)
(b)
(c)
Shared Ownership:
Taking collective ownership for success and failure.
Respecting divergent views and own the decisions taken.
Put organizational interest above team & individual interests.
Consciously including and respecting people from different background.
High Standards:
Setting new Benchmarks.
Open to new ideas for raising the bar.
Taking pride in own work and excel in what is done.
QUALITY POLICY:
The main concern is towards the customers, so they strive hard for good service
and customer needs. The products & services they offer is par above the other
insurers in the industry. They provide innovative products & services to customers
for which they have been acknowledged with awards for category of innovation.
They are the best claims service company in the year 2013, where they have
settled more claims. They have in house Third Party Administration.
It has been certified as ISO 27001:2005 and ISO 9001:2008.
D.
AREA OF OPERATION
It deals with non-life insurance in India (Health, Motor [OD & TP], Travel,
Liability, Marine, Engineering, Personal Accident and Miscellaneous).

It has a network of 190 branches spread across more than 230 towns and cities
of India, while its Head Office is in Pune.
Regional Offices:
(a) Bangalore.
(b) Chennai.
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Bajaj
(c)
(d)
(e)
(f)
(g)
(h)
Mumbai.
Hyderabad.
Pune.
Ahmedabad.
Baroda.
Kolkata.
Regional Offices report into Head Offices.
FACTS & FIGURES (FY2011-2012):

6700 employees.
753694 claims settled.
6742179 policies issued.
GWP exclusive pool 4580.20 Cr.
Profit after Tax 408.99 Cr.
Combined Ratio (Exclusive Third Party Pool Losses) 95.8%.
Combined Ratio (Inclusive Third Party Pool Losses) 101.5%.
Market Share 6.40%.
KEY HIGHLIGHTS OF FY 2013-14:
Best Insurance company in private sector General ABP News BFSI Award
Overall LOB wise growth was registered at 12.7%.
Bajaj Allianz General Insurance Company Limited profit after tax at Rs. 409
E.
crores was 38.64% higher than the previous year.

Overall claims ratio was 67%.
AWARDS & ACHIEVEMENTS
Bajaj Allianz has received iAAA rating, from ICRA Limited, an associate of
Moody's Investors Service, for Claims Paying ability. This rating indicates highest
claims paying ability and a fundamentally strong position.
1. Bajaj Allianz was conferred with the Golden Peacock Award 2014 in the
category of Innovative Products/Service.
2. It was awarded as "Claims Service Company of the Year" by the Indian
Insurance Awards 2013, for its superior claims paying ability.
3. In the same year Bajaj Allianz won an award for "Claims Innovation of the
Year" in the Asia Pacific Region at the Claims Awards Asia 2013.
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Bajaj
4. The TISS-Leap Vault CLO Awards [TISS-Leap Vault CLO Awards summit]
Gold Medal in the category of Best Game based learning program for its
hunt for Shalimar Leadership Game at the TISS-Leap Vault CLO Awards
Summit (2013).
5. Skoch Order of Merit and Medal (2013): This is an annual award instituted by
Skoch Consultancy Services a boutique strategy and management consulting
firm. Bajaj Allianz General Insurance has been conferred with the Skoch order
(a)
(b)
(c)
6.
of merit and medal for the 3 projects under the following categories:EEZEE TAB in the category of Innovation.
Hunt for Shalimar in the category of Human Resource Development.
Employee Social in the category of Human Resource Development.
Winner of 2 Awards at Mobile and Digital Marketing Summit.
Bajaj Allianz General Insurance won 2 awards at the mobile and Digital
Marketing Summit (2013):(a) Best Mobile applications in the business for EEZEE TAB.
(b) Best Mobile application of customer engagement for the App-Mobi Fuel.
F.
INFRASTRUCTURAL FACILITIES
Bajaj Allianz General Insurance Company Private Limited.

Situated at Golden Heights, 4th Floor, No 1/2, 59th C Cross, 4th M Block,
Rajajinagar, Bangalore-560010.
Policy Issuance Room.

Elevator [Lift].
Medical Room.
Dry Pantry & a Common Pantry.
Canteen.
Meeting Room or Conference Room.
Rest Rooms.
Invertor or Generator.
Server Room.
24*7 Internet Facilities via LAN.
Fire Security Measures.
Fire Extinguishers.
Sprinkler System connection all over the facility.
Drinking Water Facilities.
Printing (Copier & Scanning Machines) & Stationery Facilities.
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Bajaj
G.
Telephone, Mobile Phone Facilities & Laptop for Senior Executives.

CCTV Surveillance.
Centralized A/C Facilities.
COMPETITORS PROFILE
The competitors it has are in the field of Non-Life Insurance i.e., insurance
products & services dealing with health, motor, non motor, travel, Fire, Marine,
Liability and Miscellaneous. The competitors are mostly are of private companies
and they are constantly striving hard give tough challenges.
The competitors are:
H.
HDFC ERGO.
Bharti AXA.
Reliance General.
Tata AIG.
United India Insurance.
Oriental Insurance.
FUTURE GROWTH AND PROSPECTUS
The company always keeps up the pace with the growing market & develops
innovative products & services.

It predicts the future risk accordingly & does the market analysis.
It develops unique pricing as per the different products.
It launches Rural Insurance schemes (Natural Calamities, Cattle & Live Stock,
Accidents caused to farmers up to age of 70 yrs.) and Pet Insurance.

It launches Whatsapp chat service to connect with customers.
It launches All Women Branch (for the women employees).
It plans to provide customers better products & services, so it aims to the
overall development.
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Bajaj
CHAPTER - III
SERVICE PROFILE
Products of Bajaj Allianz General Insurance Company Private Limited are
Non-Life Insurance Products & Services. It has diverse products in non-life
segment. The products are differentiated into various classes. The products may
be classified into various sub categories. The various classification are Motor,
Asset, Health, Travel, Corporate and Miscellaneous. There are a lots of
continuous changes done to insurance products as per customer needs,
preferences.
PRODUCT DEVELOPMENT PROCESS
Chart 3.1
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Bajaj
Services:
Allianz AG with over 110 years of experience in over 70 countries and Bajaj
Auto, trusted for over 55 years in the Indian market, together are committed to
offering you financial solutions that provide all the security you need for your
family and yourself.
Bajaj Allianz brings to you several innovative products, the details of which you
can browse in this section.
1) Motor Insurance:
(a) Car Insurance.
(b) Two Wheeler Insurance.
(c) Liability Only Motor Insurance.
(d) Motor Third Party Insurance.
(e) Commercial Vehicle Insurance.
2) Asset Insurance.
3) Health Insurance:
(b) Health Guard Individual Policy.
(c) Surgical Protection Plan.
(d) Health Care Supreme.
(e) Health Guard Family Floater Option.
(f) Extra Care.
(g) Hospital Cash.
(h) Critical Illness.
(i) Personal Guard.
(j) Silver Health.
(k) E-Opinion.
(l) Star Package.
(m)Health Ensure.
4) Travel Insurance:
(a) Travel Companion.
(b) Individual Travel Insurance.
(c) Family Travel Insurance.
(d) Company Travel Insurance.
(e) Student Travel Insurance.
(f) Senior Citizen Travel Insurance.
(g) Corporate Travel Insurance.
(h) Pravasi Bharti Bhima Yojana.
(i) Travel Asia.
(j) Travel Elite.
(k) Travel Assist.
(l) Swades Yatra.
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Bajaj
5)
(a)
(b)
6)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
7)
(a)
(b)
(c)
(d)
Home Insurance:
My Home Insurance.
Home Insurance: House Holders Policy.
Commercial Insurance:
Property Insurance.
Marine Insurance.
Liability Insurance.
Financial Lines Insurance.
Engineering Insurance.
Energy Insurance.
Employee Benefits Insurance.
International Insurance Solutions.
Corporate Insurance:
Specialty Lines:
Aviation.
Project Insurance.
Marine Hull Insurance.
Sports & Entertainment Insurance.
Your Employees:
Group Personal Accident.
Group Critical Illness.
Group Travel.
Group Health Guard.
Workmens Compensation.
Office:
Office Package.
Plate Glass.
Fire.
Directors & Officers Liability.
Burglary.
Public Liability.
Money.
Fidelity Guarantee.
Manufacturing Unit:
Fire.
Industrial All Risk.
Machinery Break down.
Contractor Plant & Machinery.
Engineering.
Business Interpretation.
Workmens Compensation.
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Bajaj
8)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
9)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Public Liability.
Product Liability.
Fidelity Guarantee.
Composite Public & Product Liability.
Marine Insurance.
Bajaj Health Plus:
Individual Health Plus.
Family Floater Health Guard.
Extra Care.
Critical Illness for Women.
Person Guard.
Hospital Cash.
Silver Health.
Star Package.
Health Ensure.
Tax Gain.
Insta Insure.
Miscellaneous:
Burglary.
Project.
Plate Glass.
Money Insurance.
Fidelity Guarantee.
Package.
Rural Insurance.
Pet Insurance.
CHAPTER - IV
ORGANIZATION CHART
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Chart 4.1
GRADE STRUCTURE
The company follows the following system of Levels and Grades:
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Chart 4.2
CHAPTER - V
KEY FUNCTIONAL AREAS
1. Motor Dealer Department.
2. Underwriting Department.
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3. Agency Department.
4. Bancassurance Department.
5. Claims [Motor & Non Motor] Department.
6. Corporate Marketing Department.
7. Travel Department.
8. Renewals Department.
9. Web & Direct Marketing Department.
10. Retail Marketing Department.
11. HAT [Health Administration Team] Department.
12. Third Party Claims Department.
13. Operations Department.
14. Admin Department.
15. Finance Department.
16. HR [Human Resource] Department.
Different Department Processes

MOTOR DEALER DEPARTMENT
Motor Dealer Department deals with all kinds of motor vehicle insurance like two
wheeler, four wheeler & commercial vehicle insurance. It gets requests from
vehicle dealer in case of new vehicle, then the company prepares a cover note
within 24 hrs. of request & send it to the dealer. Then only the vehicle can be
taken by the vehicle owner. Whereas the cover note will be valid for 60 days from
the date of issue of cover note. From the issue of cover note, 3 days will be taken
to raise a new policy.
Process:
1)
2)
3)
4)
5)
6)
7)
Inward of Insurance application forms.

Scrutiny.
Checking of Documents.
Premium ReceiptA/Cs Bank.
Insurance Policy Issuance [Approval].
Refer to the Policy & verify the details of Policy.
Policy Printing.
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8) Quality Checking [Quality Verification].

9) Dispatch of Insurance Policy.
Work Flow:
Request
Inspection of Vehicle [24 hrs. of Validity]
Sending Quote [After Inspection]
Proposal
Check & Verification of RC Copy, Previous Policy
Policy Done & Issued
What is the Need of Motor Insurance?
Motor insurance protects from a financial loss arising out of any unfortunate
event or accidental damage to your vehicle.

It is mandatory under the motor vehicle act and has to be renewed every year.
It protects from liability of third party injury, death and property damage on
account of any accident involving owner of the vehicle.

It provides Personal Accident Cover for vehicle owner, vehicle owners family
or any other occupants.
Why Motor Insurance is needed?

Insured Vehicles
Own Damage
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Bajaj
Accessories
Coverage
Third Party (Person)
Third Party (Property)
Paid Driver
Liability
Passenger
Owner Driver
Employees
UNDERWRITING DEPARTMENT
Underwriters play an important role in ensuring that pricing is the most
appropriate for the risks that are accepted.
The underwriters makes the pricing of policy, they deal with how much price has
to be fixed for the policy at the measuring up of the all consequences dealing with
policy.
When a customer decides to purchase an insurance product for the various risks
that they perceive, they generally provide information about the risk profile in the
form of a proposal form. It is the underwriter at the insurance company who
assesses the risk and sets the terms and conditions of the acceptance of the risk.
The underwriters have only the proposal form at their disposal to assess the risk
and ascertain a price for it.
Underwriters make decisions based on the level of risk that they perceive,
depending on the details or information about the risk provided by the proposer,
or gathered by the risk inspection. It is also based on the markets dynamics at that
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point in time. What matters then are details such as premiums charged, discounts
offered, etc., which are all based on the risk, as classified.
A thorough underwriting process also helps the customer to understand the
magnitude of the risk held by him. In addition to that, the underwriters can also
help customers by giving suggestions for precautionary methods that can help
curb the degree of the risk that they are exposed to.
Underwriters Decide Good & Bad Risk. They are responsible for profit of the
company.
Types of Underwriting: Corporate, Retail & Motor.
Underwriter department will have Sub-Category Risk Management
Risk Management:
Risk Management is the sub branch of the underwriter, where they see &
collect the information of risk regarding certain parameters & perils.

Risk Management will support corporate & Retail giving them information
about the risk.

NOTE: The risk inspection for all occupancy is mandatory & risk will be done
only when there is requirement.
RISK MANAGEMENT PROCESS
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Bajaj
Chart 5.1
CHANNELS:
Bancassurance: Get the Business from bank.

Multiline: Get the Business from agents.
Corporate Marketing: Broking Channel- Proposal from Broker.
Direct Channel- Direct Business.
Overseas Travel: Agents of Overseas.

Motor Channel: From Motor Dealers insurance policy requests are taken &
insurance policy is issued.
Operations Department will issue the policies, while the underwriters take
code from above channels and forward it to operations branch, where the
inspection, collection of documents & verification is done. Then once again
cross checking is done. Later the insurance policy is ready to be issued, after
that again they check whether the policy is as per the quote approved by the
underwriters.
Work Flow of Underwriting Department:
Channel Relationship Manager
Underwriter
Code Slip Checking
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Bajaj
Details collection of insurance applicant

Processing
Releasing the Quote
Policy is being generated
Cross verification of policy done by Underwriter
Insurance policy is dispatched
Issuance of Insurance Policy
AGENCY DEPARTMENT
Agency is one of the most critical channels for distributing Bajaj Allianz products
33% of all sales.
The agency function trains, recruits, develops and handles all matters pertaining
to the companys agents.
It is a major business sector in Bajaj Allianz General Insurance Company Pvt Ltd.
30% of the business is from agency department. The agents are being licensed by
IRDA. Under the agency there are 400-500 IMD [Intermediary Developers].
There are 15-20 employees under this department. The Business Developers &
Relationship Mangers comes to the company for Business. The Relationship
Management takes care of IMD. IMD asks for quotes for which Relationship
Management will provide them the quotes by asking it to underwriters if in case
quote is not in list of IRDA enlistment.
BANCASSURANCE DEPARTMENT
Bancassurance is a distribution channel that involves banks which is a financial
institution dealing with a large customer base. Each bank has their independent
Bancassurance commenced in India in the year 2000 which allowed the Indian
Banks to do insurance distribution, in the form of Corporate Agents. What began
as a trickle where banks were keen to increase their referral income has led to a
whole new business proposition in itself. Bajaj Allianz has focused on developing
this channel since its inception and has developed a robust business model. Bajaj
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Allianz was that it is one of the few insurers which is not promoted by a bank.
Hence it is a naturally for its non-conflicting interests.
Bancassurance is one of the most important vertical for the company that
contributes over 20%-30% of the GWP in both life and non-life domains.
Bancassurance enables the bank to fulfill their role as a one-stop shop for all their
financial solutions. It also synergizes the resources of the Banks and Insurance
companies to develop new products and processes, which improves the customer
satisfaction levels resulting in higher customer retention levels. To put it
succinctly, Bancassurance is a win-win situation for all stakeholders involved as
well as the customer.
The evolution of Bancassurance has thrown a number of opportunities and
challenges. The biggest challenge in any bancassurance partnership is to activate
the sales operations at the bank branches without causing an extra burden on the
banks itself.
Bajaj Allianz has tie-ups with various banks in the bancassurance model and is
often flooded with requests from various banks for such exclusive products for
their customers. Such products are known as co-branded products and it is a
tailor-made insurance solution designed to cater to the insurance requirements of
the banks customers. These products are designed depending on primarily:
Customer Life Cycle Early Stage vs Matured Stage
Customer Segment Retail Customers vs Corporate Customers
Banks Internal Distribution Models eg. Branch Banking, Direct Sales, Tele
Sales etc.
There are two work process in Bancassurance:
External Working:
Fresh Insurance Policy.
Renewal.
Penetration on cash.
Cross Selling.
Internal Working:
Login Process.
OPS Activity.
Scrutiny.
Payment Receipt.
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Policy Issuance.
Dispatch.
Claims Settlement.
CLAIMS [MOTOR & NON MOTOR] DEPARTMENT

Customers buy insurance so that their claims are settled in the event of the
occurrence of an insured peril.
Claims are divided into two broad areas;
Motor claims and Non Motor claims.
Motor insurance constitutes one of the highest contributors to the premium
income of a non-life insurer. In addition to that it is also one of the most visible
forms of non-life insurance. Hence it is critical that policy issuance as well as
claim settlement has to be closer to the customers expectation i.e. speed.
Claims Analysis:
Bajaj Allianz receives around 1000 claims a day from all over the country.
Considering this huge volume, the TAT (Turn Around Time) has been reduced
from 21 days in 2005-06 to 19 days in 2010-11.
Fast track claim settlement i.e. settlement through Bajaj Allianz Drive in
center and Mobile settlement.

Cash less settlement for commercial vehicles.
Spot settlement of small claims.
There are some claim cases where there will be frauds done by the customers or
so called policy holders. They will be having fake insurance policy or expired
insurance policy, which they forge and manipulate the insurance policy & alter it
and claim for the insurance. The insurance frauds cases done are sometimes are
not able to be identified as a fraud.
Frauds in various areas
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Bajaj
Chart 5.2
Types of Fraud:
Insurance frauds involves a wide range of illegal practices that includes
intentional misrepresentation and concealment of facts to gain monetary benefit.
It also entails policyholders exaggerating legitimate claims or deliberately
inventing a loss to make a claim under the policy. Frauds in the insurance Industry
can be broadly categorized into Policyholders/Claims Frauds, Intermediary
Frauds and Internal Frauds.
Different Types of Frauds affecting Insurance Company
Chart 5.3
Some Premium related fraud scenarios in the general insurance business.
Commission Rebating.
AML issue i.e., paying premium in cash.
Insure the vehicle which has suffered accident.
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Bajaj
Some frauds scenarios of fake documentation in the general insurance

business.
Managing medical tests.
Proposal form not filled in by the policyholder.
Cover note related fraud.
Submitting false medical test reports.
EEZEE TAB can minimize frauds.

Benefits of EEZEE TAB:(a) Policy Issuance phase.
(b) Pre inspection phase.
(c) Claim settlement phase.
CORPORATE MARKETING DEPARTMENT

The Corporate Marketing Department is a part of Bajaj Allianz General Insurance
which gets the business from corporate sectors. There will be Brokers who will
get the business to the company. There are two types of Brokers; MNC Broker &
Non MNC Broker. The Department deals with all products in non-life insurance
without any preference as such. The Business will be got from companies for their
employees in case of Health, Motor, Travel and Miscellaneous Insurance.
There will be a huge difference between Retail and Corporate Marketing in
issuance of Insurance where in the corporate marketing follows a separate type of
pricing, underwriting & issuance of insurance policies.
The Brokers who get the business to the company will be provided 1% of the
amount out of the business got by them as a commission towards their work done.
Work Flow:
Brokers
Cheque against the insurance policy [collected]
Runner Boy [Follow Up]
Operations
Policy Issuance
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Refer Insurance Policy Issuance

Underwriter sign
Corporate Department
Insurance policy being sent to client
TRAVEL DEPARTMENT
Travel Insurance is as important as any other travel accessory while planning a
trip overseas. Travel related risks can be many and the cost for securing against
these risks is relatively small. For instance, if in the unfortunate event of
hospitalization in a foreign country, the expenses can be huge. But if a travel
insurance plan is purchased, the policy will take care of the financial burden of
the illness.
In addition to medical expenses, evacuation and repatriation, it also makes a claim
on Travel insurance in case of loss of checked-in baggage, delay in baggage,
personal accident, loss of passport, trip delay or hijack. In fact, Bajaj Allianz also
offers a cover for golf tournaments in foreign countries.
Bajaj Allianz is the only private general insurer in India to have an in-house team
for handling Travel Claims. The most important aspect of claim settlement in
travel insurance is coordinating with the hospitals and local service providers in
the foreign country. This is where a large network of international assistance
companies or partners come in useful. Bajaj Allianz has a network of assistance
companies in over 30 countries that enable medical assistance, claims process,
repatriation and evacuation service and other services.
Bajaj Allianz Advantage
Bajaj Allianz is the only private general insurer in India to have an in-house team
for handling Travel Claims. This provides the following benefits to the customer:
International toll-free phone and fax number.
24x7 availability.
Direct relationship with the customer and direct communication with hospitals
in case of requirement of documents.

Quick settlement of claims.
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Faster resolution of dispute and faster decision making on admissibility of

claims.
The Department consists of IMD [Intermediary Developers]. IMDs bring

business to the travel department. They operate in their respective places &
consult the company for the insurance related concerns.
If new IMD is there then new code is created by taking request from them. MOU
is done, later the Head Office will verify & create the code. From the code the
agent float is done. In the agent float they will provide some amount which is
known slab amount. Through that they can make the insurance policies initially.
Later out of the total policies made agents will get commission, once a month.
Work Flow:
Retail
Relationship Management
Operations
Policy Issual
Client
Corporate
Request from Corporate Client
Request is accepted
Underwriters approval
Operations
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Policy Issual
Client
RENEWALS DEPARTMENT
It is the Department which renews the expired insurance policy of all types. The
department takes care of the all data regarding the insurance policy holders in a
central database. By the help of database, a separate team will generate renewal
notice. Then they will distribute the notice to the customers, later remind
customers about the notice. In the regular interval they will update about the
policy renewal. If the customer agrees to renew the policy & reapproach the
company. The executive then collects the cheque from customer and finally
prepares the policy. Finally dispatches the policy after all verification from
concerned department.
For Motor Insurance due date of 90 days will be there, in that period the policy
holder has to renew the policy. For Health insurance due date of 15-30 days will
be there, within that period the policy holder has to renew the policy.
TYPES OF PAYMENT:
1)
2)
3)
4)
5)
IVRS payment.
Online portal.
SMS System [Through float amount is paid].
EEZEE Tab.
NEFT Transfer.
STRATEGIES:
1)
2)
3)
4)
On-timely / Renewal has to be reach to client.

Direct Intervention.
Customer Response.
Meeting Target.
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SOFTWARE USED:
1) Geo Snena.
2) RTM-Renewal Track Module.
WEB & DIRECT MARKETING DEPARTMENT

Web The web sales channel is the latest channel to be introduced by Bajaj
Allianz.
The web department is been taken care by Head Office.
Direct Marketing Direct Marketing is selling of insurance directly without
using the middlemen/ intermediary.
The Direct Marketing consists of Relationship Managers who approach the
customer and get business to the company. The department has separate policy
issuance counter, where the customers can purchase the required insurance policy
by providing all documents & application form. After the verification & approval
the customer will be issued the insurance policy.
The team will have a target of 8-10 Lakhs every month. Everyday minimum 20
customers must be met & customer interactions has to be followed. Regular
updating the customers about the insurance policy & incase of renewals
reminding them.
Strategies:
1)
2)
3)
4)
5)
Service is an important criteria.

After sales service.
Cross selling.
Continuous follow up with customer.
In case of Motor & Health Insurance policies, regular contact with
customers are made.
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Bajaj
Work Flow:
Direct (Door to Door) Product Sales
Call up the customers & collecting details from customers
Sending Quotation to customers
Fixing up an appointment with customers
Collecting if any previous insurance copy is there
Preparing new policy & affixing company seal & sign
Collecting payment from customer (D.D, cheque or cash)
Enter in Office Register
Operations team Create Scrutiny (scrutiny number)
Pre search team (Head office) confirmation of details & call the customer
After confirmation Issuance of policy
Creation & Updating of Customer Id
Operations is consulted if approval required
Dispatch of Insurance policy
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RETAIL MARKETING DEPARTMENT

The Retail Marketing is the process of individual insurance policy issuance. The
department gets the different types of insurance policy for purpose of issuance,
the department collects all the request and later gets the insurance policy done
accordingly by the help of other departments. The Retail marketing plays an
important role in bringing business and performs its task in order to achieve the
target and fulfill the department requirements.
It performs as similar to that of corporate marketing department but in individual
sense of approach.
HAT [HEALTH ADMINISTRATION TEAM] DEPARTMENT

The Health Administration Team popularly referred by its initials HAT is a
complete
self-contained
unit
comprising
doctors,
paramedics,
nurses,
underwriters, claim assessors and other health experts.

The department comprises of different insurance policy Travel and Personal
Accident (P.A). The HAT product includes group products, Individual, General,
Group Personal, Travel, Education and Generic policies. The company has inhouse TPA (Third Party Administration). It also has different types of network in
order to make claims to insurance holders such as
1) Network Hospital. 2) Non-Network Hospital.
It has different types of policies like 1) Endmnity Policy. 2) Benefit Policy.
There are two types of claims such as 1) Cashless Claim. 2) Reimbursement.
Services offered by HAT are:
1)
2)
3)
4)
5)
Home visits for medical checkup.

Discounts at Hospitals.
Speedy claim services.
Availability of information at the time of admission.
Restricting Charges Overcharging: If hospitals are overcharging then
insurance company can block list the hospital.
Work Process:
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DMS [Document Management System]

Quality Check
Processor Assessment
Doctor Cross Verification
Policy Issuance
Chart 5.4
THIRD PARTY CLAIMS DEPARTMENT

The Third Party Claims department makes the claims regarding third party
insurance and takes care of legal proceedings if any. The process of this
department are: 1) Intimation of the claim will be noticed when the court notice is
served to the third party claims department.
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Bajaj
2) Immediately company will send the vakalath to the advocate to appear before
the court.
3) At the same time petition copy of the case will be sent to investigator to collect
the police paper & investigate the genuinity of the case.
4) A letter will be sent to owner of the vehicle for production of vehicle
documents & driver details.
5) After receipt of the investigation report the third party claims department will
scrutinize the files & will set their defenses.
6) In case if third party claims department didnt find any defenses company will
initiate for compromise.
7) If company find any defenses then company will intimate the same to advocate
with instructions to contest the case to get exoneration order against the company.
8) In this process the company will file written objections in the cases wherein the
company has served with notice.
9) The company will lead the evidence through its legal officers with all the
available defenses. The company witness will be entering into witness box for the
process of evidence.
10) If the court gives an order of exoneration to the company, then the company
will pay the advocate fees and will close the claim.
11) Closure of the claim will be done by the Back office.
OPERATIONS DEPARTMENT
The operations function takes care of policy issuance, proposal from scrutiny,
dispatching of policy documents. The operations department takes care of the
insurance policy preparing, verifying & proceeding it further to policy issuance.
The operations department consists of two system in it:
1) Centralized System 2) Localized System
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Bajaj
It has a customer focus unit which takes care of claims & settlement.
The operations takes care of following processes:1) Scrutiny.
2) PID [Partner ID Creation].
3) Premium Receipting.
4) Policy Issuance.
5) Printout.
6) Quality Check [Q.C]
7) Dispatch.
ADMIN DEPARTMENT
The admin function takes care of building and facility maintenance for Bajaj
Allianz General Insurance Company Limited and Bajaj Allianz Life Insurance
Company Limited. It works round the clock to meet all the needs of daily work
process. Office stationeries, printing, electricity, telephone, newspapers, water,
cleaning, maintenance of the facility & etc.
FINANCE DEPARTMENT
The finance team takes care of the following
1) Branch and Head Office accounting: It takes care of Branch office A/cs
and Head Office A/cs, the transactions between branch and Head Office
and maintenance of A/cs for further reference.
2) Cost Analysis: It carefully analyses the cost involved in the various
functions in the departments of the office.
3) Payroll: It maintains the employees salary payment and maintenance of
the details for further reference.
4) Commission payouts: It takes care of commission to be paid to agents and
takes the details of all commission details of the financial year & records
it.
5) Cash Management: It manages the cash whatever paid by the clients
towards insurance & maintains the details of it.
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Bajaj
6) Bank Reconciliation: It reconciles the bank transactions & maintains the

good track record for future.
7) Risk Management: It takes care of the risk involved in the payments &
receipts. It manages it with a careful way so that there is no problems
occurred in those case.
8) Taxation: It manages the taxes to be paid to the government for the
particular financial year with all dues regarding the company. It also
maintains the detailed record for further reference.
HUMAN RESOURCE DEPARTMENT

The Human Resource Department function takes care of the following:
Employee Relations which include employee fitment, letter insurance, employee
transfers, contracts with consultants.
HR policies:
Human Resources Team
The zonal HR team partners with the business to ensure that each
function/office is business ready in terms of its human resources.
The zonal HR is your single point of contact for all your HR related needs.
Some of these are broadly categorized as below:
Joining Formalities & Induction.
Performance Management.
Employee Engagement and Parivartan.
Learning & Development (I-Quest, E-Learning, Assessment Centers)
Manpower Sourcing.
HRIS (Human Resource Information System)

HRIS is an online module which allows employees to get their complete
employment related details.
Features of HRIS:
Attendance marking & regularization.

Application for leave.
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Bajaj
Salary details.
Personal details.
Investment declaration.
Target setting.
HRIS has an integrated online module called my Ascent payroll, which allows
employees to get their complete payroll related information.
MyHRMS (Human Resource Management System)
MyHRMS is an online module which allows Bajaj Allianz Staffing Solutions
[BASS] employees to get their complete employment related details.
Features:
(a)
(b)
(c)
(d)
(e)
(f)
Attendance marking.
Application for leave.
Pay slips.
Personal details.
Investment declaration.
Medicare.
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Bajaj
CHAPTER - VI
SWOC ANALYSIS
1) STRENGTH
Well established organization with a reputed company Allianz SE to
support.
It is the largest private player in the general insurance industry in India.
Excellent services.
Strong Customer Base.
Good Brand Image.
Innovative Products, Technology, Organization culture and work
atmosphere.
Large network of branches all over the country.
2) WEAKNESS
It does not have a bigger approach in rural areas.
It needs to overcome its error in identifying the young diversifying
customers.
Need to concentrate on lower income group people.
Must look into diverging market group.
Has to enhance the progressive workforce.
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Bajaj
Lacks in recognizing the competition in some parts.

3) OPPORTUNITIES
Huge area of market still need to have focus where Bajaj Allianz can
develop various products and launch.
In the modern India there are new technological inventions where
customers take more quickly, so it is one area where it can stress to have
its products marketed.
Developing market provides much different needs as insurance can be one
purpose to meet the secure way of life for people, where it can work on.
Has to define the new arenas & produce a positive approach.
4) CHALLENGES
The new insurance companies or private sector insurance companies have
posed a greater challenge.
Has to cope up with competition where other competitors price low
premium over the similar products of Bajaj Allianz General Insurance
Company Limited.
Have to penetrate in newer markets where some of the other General
Insurance Companies are Predominant.
Have to generate more insurance policies and decrease less number of
claims.
CHAPTER - VII
FINDINGS
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Bajaj
Bajaj Allianz General Insurance Company Limited has an excellent work

environment.
It has trained executives who are very well in their respective departments.
The training is provided in an excellent manner.
The communication of the executives are good.
The office is arranged so well with all equipments so that the customers
are being attracted.
They follow up each & every policy renewal process in a better manner.
The service is on a par with world class system.
They provide very unique featured customer services.
They are top recruiters in the general insurance industry, so that they
provide more job openings.
The overall structure of the company is very unique.
It has in house team of Third Party Administration & Development
Department.
CHAPTER - VIII
SUGGESTIONS
As per the study in Bajaj Allianz General Insurance Company Limited.,
they have to take care of the customer requirements and provide
customized products.
Company should utilise its human resource & have a better production.
There should be optimum utilisation of resources.
They should have a much better operations & development team in order
to overcome competitors.
They have to make better decisions, implement it in right direction & right
time so that they can enhance their productivity.
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Bajaj
Have to develop an awarness campaign in order to spread the knowledge

of insurance to people.
The company has to consider more rural people & develop much more
insurance products to them.
CHAPTER - IX
CONCLUSION
Bajaj Allianz General Insurance Company Limited is the number one company in
the last financial year in general insurance sector. It has a wide variety of non-life
insurance products for all age groups from children to senior citizens. It has
offices all over India with better network, so that it processes good number of
insurance policies.
The Bajaj as a household name since decades has contributed umoungously to
general insurance sector in India with the partnership of Allianz. The company
holds a good name in the market & is a reputed general insurance company.
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Bajaj
Bajaj Allianz General Insurance Company Limited is dominated the market with
its various products & services. It stands on a unique place when compared to
other companies in the industry for its products, services and achievements. So it
plays an important role as an General Insurance sector & enjoys goodwill as well
as favoritism by the Indian market.
CHAPTER X
LEARNING EXPERIENCE
In the four weeks of study in organisation at Bajaj Allianz General Insurance
Company Limited, I have learnt a lot with the interaction between the executives
in various departments of the company. I studied the company workings and
operations as to how they execute, enact & perform. It has helped me know about
the organisation & gain knowledge about the overall functions in the organization.
I learnt how to approach a company and communicate with them.
I understood how to interact with the employees & to extract the
information from different types employees in the organization.
I got to know how various department works with their unique
proceedings and how they follow the work & execute their tasks within
prescribed time. This enhances the work & develops a quality and
customer service.
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Bajaj
I came to know how the various departments interact with one another &
execute their work with more efficiency.
I came across various mindsets of employees while collecting information,
while all reacted and co-operated with good way from the superiors to
subordinates. They helped me with a positive note to construct the
information in order to prepare the project report.
EWCM/AN /NKJ/2014
PAGE NO 57

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Bajaj

Allianz General Insurance Co. Ltd.

NSDL Database Management Limited, Central Insurance Repository Limited

General Insurance Companies in India:

Agriculture Insurance Co. of India Ltd.

Reliance General Insurance Co. Ltd.

Insurance Market shared by private players

Global integration of financial markets resulted from de-regulating measures,

Deploy products to meet changing consumer needs.

Global systemically important insurers

Global accounting standards

Bajaj Allianz General Insurance Company Private Limited

Headquarters: Pune, India.

Paid up Capital: 110 Crores

Suraj Mehta,Independent Director

Bajaj Allianz General Insurance Company Limited

A Partnership Based on Synergy

INCEPTION AND BACKGROUND OF THE

General Insurance Ltd.

Bajaj Allianz General Insurance Co Pvt Ltd is a non-life insurance company

VISION AND MISSION AND QUALITY POLICY

Customer First, Always:

Liability, Marine, Engineering, Personal Accident and Miscellaneous).

FACTS & FIGURES (FY2011-2012):

crores was 38.64% higher than the previous year.

AWARDS & ACHIEVEMENTS

Bajaj Allianz General Insurance Company Private Limited.

Policy Issuance Room.

Telephone, Mobile Phone Facilities & Laptop for Senior Executives.

The competitors are:

FUTURE GROWTH AND PROSPECTUS

innovative products & services.

Accidents caused to farmers up to age of 70 yrs.) and Pet Insurance.

PRODUCT DEVELOPMENT PROCESS

Different Department Processes

Inward of Insurance application forms.

8) Quality Checking [Quality Verification].

event or accidental damage to your vehicle.

account of any accident involving owner of the vehicle.

Why Motor Insurance is needed?

collect the information of risk regarding certain parameters & perils.

about the risk.

Bancassurance: Get the Business from bank.

Overseas Travel: Agents of Overseas.

Details collection of insurance applicant

CLAIMS [MOTOR & NON MOTOR] DEPARTMENT

center and Mobile settlement.

Some frauds scenarios of fake documentation in the general insurance

EEZEE TAB can minimize frauds.

CORPORATE MARKETING DEPARTMENT

Refer Insurance Policy Issuance

in case of requirement of documents.

Faster resolution of dispute and faster decision making on admissibility of

The Department consists of IMD [Intermediary Developers]. IMDs bring

On-timely / Renewal has to be reach to client.

WEB & DIRECT MARKETING DEPARTMENT

Service is an important criteria.

RETAIL MARKETING DEPARTMENT

HAT [HEALTH ADMINISTRATION TEAM] DEPARTMENT

underwriters, claim assessors and other health experts.

Home visits for medical checkup.

DMS [Document Management System]

THIRD PARTY CLAIMS DEPARTMENT

6) Bank Reconciliation: It reconciles the bank transactions & maintains the