SUMMER TRAINING REPORT

ON
“A Comparative Study Of Insurance Company
Of
Bajaj Allianz Insurance Company ”

Undertaken At

Submitted in the partial fulfillment for the award of Master’s Degree in Business
Administration
(Session 2008 - 10)
SUBMITTED TO SUBMITTED BY
KURUKSHETRA UNIVERSITY JITIN KAUSHAL
KURUKSHETRA Roll No.: 81022

UNDER THE SUPERVISION OF

Mr. Raj Sharma
Training manager
Sonepat.

S. D. COLLEGE OF MANAGEMENT, ISRANA, PANIPAT

KURUKSHETRA UNIVERSITY, KURUKSHETRA

 PREFACE

“The most successful markets are not the least regulated ones; they are the one which have sound
regulation, where people can be confident of dealing.”

This project report is the result of our six weeks summer training at BAJAJ ALLIANZE INSURANCE
COMPANY Summer training is an integral part of MBA course and its aim at providing a first hand
practical experience of the corporate sector to the students. This help the students to view real business
world closely, which in turn will influence there perception.

In my project report, the subject matter on a comparison of Bajaj Allianz with other company is designed to
stimulate inquisitiveness in the readers mind for putting the concepts learnt through practical application.

However, I must say that this report is not the work of excellence by scholar. It is the result of assignment to
improve ourselves and gain confidence so there is a chance of some mistakes. Also a critical appraisal by
anyone will be heartily welcomed. I am happy that I got an opportunity to pursue my summer training in a
reputed, well established fast growing professional managed organization like “BAJAJ ALLIANZ
COMPANY”.

JITIN KAUSHAL
MBA 2ND YEAR
S.D.C.M.
 ACKNOWLEDGEMENT

“No man is indispensable but there are certain mortal without whom the quality work suffers their guidance
becomes important in acquiring quality results”.

I am grateful to Mrs. Anju katyal who has given more guidance about Insurance.

I am grateful to my faculty guide MRS PREETI SEHGAL who has given me this opportunity to prepare this
project and provided her valuable guidance. I am also grateful to my company relationship manager Mr.
PRINCE and company guide Mr. Raj Sharma who has provided all the necessary information required to
prepare this report.

I am also grateful to my parents and friends who inspired me to put my best efforts.
 STUDENT DECLARATION

I, JITIN KAUSHAL roll no –:81022 Student of MBA (S.D College of management, Israna) hereby declare
that the project titled on “COMPARISON OF BAJAJ ALLIANZ INSURANCE WITH OTER COMPANY
‘’ is the original work conducted by me and the data in this study is authentic to the best of my knowledge
and belief.

This report is not submitted to any other institute or university for the award of any other degree.

JITIN KAUSHAL
MBA 2ND YEAR
S.D.C.M.
 CERTIFICATE

This is to certify that JITIN KAUSHAL has completed the research project entitled
“COMPARISON OF BAJAJ ALLIANZ INSURANCE COMPANY WITH OTER
COMPANY” under my supervision. To the best of my knowledge, the report consists of

results of empirical study conducted by my student. In my opinion, the work is of the

requisite standard expected of a MBA student. Therefore I, recommend the same to be set for
evaluation.

ANJU KATYAL
(Project guide)
 TABLE OF CONTENTS

Sr.No. CONTENTS PAGE

1. Executive Summary 1.

2. INTRODUCTION 8

3. SECTOR PROFILE
14
4. COMPANY PROFILE
28
5. OBJECTIVES OF STUDY 35

6. RESEARCH METHODOLOGY 36

7. DATA ANALYSIS & INTERPRETATION 42

8. OBSERVATIONS & FINDING 53

9. SUGGESTION 55

10. BIBLIOGRAPHY 57

11. QUESTIONNAIRE 58
 EXECUTIVE SUMMARY

This title of this project carried out in summer training is ‘Study of A Comparative Study Of Insurance
Company.”The training was completed at Bajaj Allianz in Sonepat a comprehensive study is made to know
about the working in the finance department of Bajaj Allianz. And to know about the bill processing and
also to know how the payments are released against reimbursement or vendor’s payments and to get
information about various modes of payments from head office. The limitations and suggestions for the bills
processing in finance department are given in the end of the project this feedback has helped to give
suggestions to the company to make improvements in their process.

Following a correct research methodology is imperative for every research. In order to get the right facts and
findings, Descriptive Research Design and empirical studies has been used. This research design facilitates
the study as it is based on the description of state of affairs as it exists in present. An empirical research
relies on experience or observation alone often without due regard for system and theory. It is the data
research coming up with the conclusion which is capable being verified by observation and experiment. As
in case of Ind Bajaj Allianz, the observation was done to find the procedure & documentation problem .In
this, help of various departments was taken to observe the working and to deduct conclusion to suggest
course of action to Bajaj Allianz In this the fact were taken into hand from India Bajaj Allianz Sonepat at
their source and is then utilized to infer desired information.
 INTRODUCTION

A marketing strategy is a process that can allow an organization to concentrate its (always limited) resources
on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.

Marketing strategy as a key part of the general corporate strategy marketing strategy is most effective when
it is an integral component of corporate strategy, defining how the organization will engage customers,
prospects and competitors in the market arena for success. It is partially derived from broader corporate
strategies, corporate missions, and corporate goals. They should flow from the firm's mission statement.
They are also influenced by a range of micro environmental factors.

Marketing strategy and sectarian tactics and actions

A marketing strategy also serves as the foundation of a marketing plan. A marketing plan contains a set of
specific actions required to successfully implement a marketing strategy. For example: "Use a low cost
product to attract consumers. Once our organization, via our low cost product, has established a relationship
with consumers, our organization will sell additional, higher-margin products and services that enhance the
consumer's interaction with the low-cost product or service."

A strategy consists of well thought out series of tactics. While it is possible to write a tactical marketing plan
without a sound, well-considered strategy, it is not recommended. Without a sound marketing strategy, a
marketing plan has no foundation. Marketing strategies serve as the fundamental underpinning of marketing
plans designed to fill market needs and reach marketing objectives[3]. It is important that these objectives
have measurable results.

A good marketing strategy should integrate an organization's marketing goals, policies, and action
sequences (tactics) into a cohesive whole. Many companies cascade a strategy throughout an organization,
by creating strategy tactics that then become strategy goals for the next level or group. Each group is
expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is
important to make each strategy goal measurable.

Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See
strategy dynamics.

Types of marketing strategies

Every marketing strategy is unique, but if we abstract from the individualizing details, each can be reduced
into a generic marketing strategy. There are a number of ways of categorizing these generic strategies. A
brief description of the most common categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are classified based on their market share or
dominance of an industry. Typically there are three types of market dominance strategies:
 Leader
 Challenger
 Follower
Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic
scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive
advantage.
  Cost leadership
 Product differentiation
 Market segmentation
Innovation strategies - This deals with the firm's rate of the new product development and business model
innovation. It asks whether the company is on the cutting edge of technology and business innovation. There
are three types:
 Pioneers
 Close followers
 Late followers
Growth strategies - In this scheme we ask the question, “How should the firm grow?”. There are a number
of different ways of answering that question, but the most common gives four answers:

 Horizontal integration
 Vertical integration
 Diversification
 Intensification
A more detailed scheme uses the categories:
 Prospector
 Analyzer
 Defender
 Reactor
  INSURANCE NEED

Why is insurance necessary? The question contains the answer within itself. After all, life is fraught with
tensions and apprehensions regarding the future and what it holds for the individual. Despite all the planning
and preparation one might make, no one can accurately guarantee or predict how or when death might result
and the circumstances that might ensue in its aftermath.
We are not saying that life and existence are constantly fraught with danger and uncertainty. But then it is
essential that you plan for the future. The chances for a fatality or an injury to occur to the average
individual may not be particularly high but then no one can really afford to completely disregard his or her
future and what it holds.
People generally regard insurance as a scheme when and where you have to lose a lot to gain a little.
Nevertheless, insurance is still the most reliable tool an individual can use to plan for his future.
And just why is it necessary to plan for the future with Insurance?
An Overview
Insurance business is divided into four classes:
1) Life Insurance business
2) Fire
3) Marine
4) Miscellaneous Insurance.
Life Insurers transact life insurance business; the rest is transacted by General Insurers. No composites are
permitted as per law.
The business of Insurance essentially means defraying risks attached to any activity over time (including
life) and sharing the risks between various entities, both persons and organisations. Insurance companies
(ICs) are important players in financial markets as they collect and invest large amounts of premium.
Insurance products are multi purpose and offer the following benefits:

1. Protection to the investors

2. Accumulate savings
 INSURANCE IN INDIA

Insurance in India started without any regulations in the nineteenth century. It was a typical story of a
colonial era: a few British insurance companies dominating the market serving mostly large urban centers.
After the independence, the Life Insurance Company was nationalized in 1956, and then the general
insurance business was nationalized in 1972. Only in 1999 private insurance companies were allowed back
into the business of insurance with a maximum of 26 per cent of foreign holding (World Bank Economic
Review 2000). The entry of the State Bank of India with its proposal of bank assurance brings a new
dynamics in the game. On July 14, 2000 Insurance Regulatory and Development Authority bill was passed
to protect the interest of the policyholders from private and foreign players. The following companies are
entitled to do insurance business in India.

The private insurance joint ventures have collected the premium of Rs.1019.09 crore with the investment of
just Rs.3, 000 crore in three years of liberalization. The private insurance players have significantly
improving their market share when compared to 50 years Old Corporation (i.e.LIC). As per the figures
compiled by IRDA, the Life Insurance Industry recorded a total premium underwritten of Rs. 10,707.96
crore for the period under review. Of this, private players contributed to Rs.1, 019.09 crore, accounting for
10 percent. Life Insurance Corporation of India (LIC), the public sector giant, continued to lead with a
premium collection of Rs.9,688.87 crore, translating into a market share of 90 per cent. In terms of number
of policies and schemes sold, private sector accounted for only 3.77per cent as compared to 96.23 per cent
share of LIC (The Economic Times, 21 March, 2004).
The ICICI Prudential topped among the private players in terms of premium collection. It recorded
a premium of Rs. 364.9 crore and a market share of 25 per cent, followed by Birla Sun Life with a
premium under- written Rs.170 crore and a market share of 15 percent, HDFC Standard with 132.7
crore and Max New York Life with Rs.76.8 crore with a market share of approximately 15 per cent each.
Unlike their counterpart in the life insurance business, private non-life insurance companies have not yet
started addressing the retail market. All is set to change in the coming years. Like in the banking sector, non-
life insurance companies will soon have no choice but to focus on individual buyers.
In case of private non-life insurance players, that their market share rose to 14.13 per cent, recording a
growth of 70.75 per cent on an annual basis, while the market share of public sector stood at 85.87 per cent,
registering a marginal growth of 6.34 per cent. The overall market has recorded a growth of 12.32 per cent
by the end of January 2004. Among the private non-life insurance players, ICICI Lombard topped the list
with a premium collection of Rs.403.62 crore in one year period with a market share of 3.05 per cent and
with an annual 131.6 per cent, followed by Bajaj Allianz with a premium of Rs.385.02 crore and 2.91 per
cent market share and Tata AIG with 300.49 crore premium and 2.27 per cent market share with an annual
growth rate of 62.60 per cent.

Among the public sector players, New India garnered a market share of 24.38 per cent, Rs.3,229.49 crore
premium and an annual growth rate of 0.38 per cent, followed by National with a market share of 21.43 per
cent, Rs.2,839.11 crore premium and an annual growth rate of 19.88 per cent, United India with a market
share of 19.47 per cent (Rs.2,578.83 crore premium) and Oriental with a market share of 18.25 per cent,
Rs.2,417.17 crore premium and an annual growth rate of 1.86 per cent. It is significant to note that HDFC
Chubb and Cholamandalam have registered annual growth rates of 4030.26 per cent and 1101.20 per cent
respectively, whereas New India has registered it as 0.38 per cent. If this trend continues, private insurer
would dominate the public sector like New India Insurance Corporation. It is obviously reflect the insurance
sector has facing the challenges with foreign counter parties as well as private counter parties and lot more
opportunities are prevailing to penetrate the insurance business among the uncovered people and area of
India.
 BRIEF HISTORY OF INSURANCE
SECTOR IN INDIA

The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period
of almost 190 years.

The business of life insurance in India in its existing form started in India in the year 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta.

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

1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance
business.

1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical
information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting
the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over by the central government and
nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5
crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance
Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:
1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general
insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct
for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the
Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance
business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the
New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance
Company Ltd. GIC incorporated as a company.
 INSURANCE MARKET IN INDIA

NON-LIFE INSURANCE MARKET

In December 2000, the GIC subsidiaries were restructured as independent insurance companies. At the same
time, GIC was converted into a national re-insurer. In July 2002, Parliamant passed a bill, delinking the four
subsidiaries from GIC.

Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers.
Although the public sector companies still dominate the general insurance business, the private players are
slowly gaining a foothold. According to estimates, private insurance companies have a 10 percent share of
the market, up from 4 percent in 2001. In the first half of 2002, the private companies booked premiums
worth Rs 6.34 billion. Most of the new entrants reported losses in the first year of their operation in 2001.

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 implementaion, including geological risks, maintenance, commercial and political risks. Without
covering these risks the financial institutions are not willing to commit funds to the sector, especially
because the financing of most private projects is on a limited or non- recourse basis.

Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term
funds. In fact, insurance companies are an ideal source of long term debt and equity for infrastructure
projects. With long term liability, they get a good asset- liability match by investing their funds in such
projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in
infrastructure and social sectors. International Insurance companies also invest their funds in such projects.

Insurance costs constitute roughly around 1.2- 2 percent of the total project costs. Under the existing norms,
insurance premium payments are treated as part of the fixed costs. Consequently they are treated as pass-
through costs for tariff calculations.

Premium rates of most general insurance policies come under the purview of the government appointed
Tariff Advisory Commitee. For Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets the
premium rates, for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the
committee's guidelines; and projects above Rs 15 billion are subjected to re-insurance pricing. It is the last
segment that has a number of additional products and competitive pricing.

Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead,
shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the premium. The
other companies share the remaining risk and premium. The policies are renewed usually on an annual basis
through the invitation of bids.

Of late, with IPP projects fizzling out, the insurance companies are turning once again to old hands such as
NTPC, NHPC and BSES for business.

RE-INSURANCE BUSINESS
Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which can be
safely borne from their own funds. The balance risk is re-insured with other insurers. In effect, therefore, re-
insurance is insurer's insurance. It forms the backbone of the insurance business. It helps to provide a better
spread of risk in the international market, allows primary insurers to accept risks beyond their capacity,
settle accumulated losses arising from catastrophic events and still maintain their financial stability.

While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer. Currently, all
insurance companies have to give 20 per cent of their reinsurance business to GIC. The aim is to ensure that
GIC's role as the national reinsurer remains unhindered. However, GIC reinsures the amount further with
international companies such as Swissre (Switzerland), Munichre (Germany), and Royale (UK).
Reinsurance premiums have seen an exorbitant increase in recent years, following the rise in threat
perceptions globally.

LIFE INSURANCE MARKET

The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned
LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total
400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a
product giving protection. Most customers were under- insured with no flexibility or transparency in the
products. With the entry of the private insurers the rules of the game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in
terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000 crore
in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen.

Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination
that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever
expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to
the private sector and snapping up the new innovative products on offer.

The growing popularity of the private insurers shows in other ways. They are coining money in new niches
that they have introduced. The state owned companies

still dominate segments like endowments and money back policies. But in the annuity or pension products
business, the private insurers have already wrested over 33 percent of the market. And in the popular unit-
linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers.

The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger
policies. For instance, the average size of a life insurance policy before privatisation was around Rs 50,000.
That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of
their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average.

Buoyed by their quicker than expected success, nearly all private insurers are fast- forwarding the second
phase of their expansion plans. No doubt the aggressive stance of private insurers is already paying rich
dividends. But a rejuvenated LIC is also trying to fight back to woo new customers.
COMPARISON OF TERM INSURANCE PREMIUMS (Rs./ Year)
PREMIUM STRUCTURE OF ENDOWMENT PLANS
(RS. /YEAR)
MINIMUM REQUIRED COMPOUND BONUS RATE (IN %)

WHOLE LIFE INSURANCE PREMIUMS (RS./ YEAR)

 EQUITY SHARE CAPITAL OF LIFE INSURANCE COMPANIES

Foreign Indian
Name of the insurer 2003-04 2004-05 Promoter Promoter

Life Insurers
HDFC Standard Life Insurance Co. Ltd. 255.50 320.00 47.52 272.48
ICICI-Prudential Life Insurance Co. Ltd. 675.00 925.00 240.50 684.50
Max New York Life Insurance Co. Ltd. 346.08 466.08 121.18 344.90
Kotak Mahindra Old Mutual Life Insurance Co. Ltd. 151.26 211.76 55.06 26.00
Birla Sun Life Insurance Co. Ltd. 290.00 350.00 91.00 26.00
TATA-AIG Life Insurance Co. Ltd. 231.00 321.00 83.46 237.54
SBI Life Insurance Co. Ltd. 175.00 350.00 91.00 259.00
ING Vysya Life Insurance Co. Ltd. 245.00 325.00 84.50 26.00
Metlife India Insurance Co. Ltd. 160.00 235.00 61.10 173.90
Bajaj Allianz Life Insurance Co. Ltd. 150.07 150.07 39.02 111.05
AMP Sanmar 160.00 217.10 56.45 160.65
AVIVA 242.80 319.80 83.15 236.65
Sahara India 157.00 157.00 0.00 157.00
Sub Total 3238.71 4347.81 1053.93 3293.88
Life Insurance Corporation of India 5.00 5.00 5.00
Total (Life) 3243.71 4352.81 1053.93 3298.88
 INVESTMENTS OF LIFE INSURERS IN LIFE FUND
(Rs. In Crore)

2005 2004
PUBLIC SECTOR
LIC (A) 361428.87 304436.88
PRIVATE SECTOR
HDFC STD LIFE 480.77 305.43
MNYL 436.37 241.85
ICICIPRU 970.63 658.45
BSLI 170.06 140.38
TATA AIG 392.76 220.65
KOTAK LIFE 200.67 133.43
SBI LIFE 960.89 367.84
BAJAJ ALLIANZ 382.28 221.91
METLIFE 157.18 120.18
AMP SANMAR 110.71 98.69
ING VYSYA 241.22 75.28
AVIVA 144.95 144.65
SAHARA LIFE 142.48 143.29
TOTAL (B) 4790.98 2872.03
TOTAL (A+B) 366219.85 307308.91
 INVESTMENTS OF LIFE INSURERS IN PENSIONS FUNDS
(Rs. In Crore)

2005 2004
PUBLIC SECTOR
LIC (A) 11462.03 9244.06
PRIVATE SECTOR
HDFC STD LIFE 151.91 101.68
MNYL 14.03 2.11
ICICIPRU 166.64 127.59
BSLI 0.06 0.00
TATA AIG 76.78 39.79
KOTAK LIFE 13.36 7.54
SBI LIFE 78.97 15.41
BAJAJ ALLIANZ 9.28 3.81
METLIFE 0.21 0.00
AMP SANMAR 50.45 9.83
ING VYSYA 0.00 0.00
AVIVA 0.00 0.00
SAHARA LIFE 0.06 0.00
TOTAL (B) 561.75 307.77
TOTAL (A+B) 12033.78 9551.83
 INVESTMENTS OF LIFE INSURERS IN GROUP INSURANCE
(Rs. In Crore)

2005 2004
PUBLIC SECTOR
LIC (A) 42639.42 34068.32
PRIVATE SECTOR
HDFC STD LIFE 0.00 0.00
MNYL 7.25 1.35
ICICIPRU 0.00 0.00
BSLI 0.00 0.00
TATA AIG 14.70 0.00
KOTAK LIFE 2.05 0.90
SBI LIFE 10.77 2.92
BAJAJ ALLIANZ 1.27 0.95
METLIFE 2.52 0.44
AMP SANMAR 0.00 0.00
ING VYSYA 0.00 0.00
AVIVA 2.85 0.57
SAHARA LIFE 0.02 0.00
TOTAL (B) 41.43 7.15
TOTAL (A+B) 42680.85 34075.47
 INVESTMENTS OF LIFE INSURERS IN UNIT LINKED PLANS
(Rs. In Crore)

2005 2004
PUBLIC SECTOR
LIC (A) 2758.67 209.87
PRIVATE SECTOR
HDFC STD LIFE 290.67 60.91
MNYL 20.44 0.00
ICICIPRU 2337.16 780.07
BSLI 1125.72 474.62
TATA AIG 80.81 12.75
KOTAK LIFE 308.33 53.54
SBI LIFE 3.54 0.00
BAJAJ ALLIANZ 369.24 28.61
METLIFE 1.74 0.00
AMP SANMAR 21.40 0.00
ING VYSYA 78.61 20.81
AVIVA 131.13 47.13
SAHARA LIFE 0.00 0.00
TOTAL (B) 4768.77 1478.43
TOTAL (A+B) 7527.45 1688.31
COMPANY PROFILE
 BAJAJ ALLIANZ LIFE INSURANCE

Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates- , Bajaj Auto,
one of the biggest 2 and 3 wheeler manufacturers in the world and Allianz AG, one of the world's largest
insurance companies.

Bajaj Allianz Life Insurance

 Is the fastest growing private life insurance company in India.
 Currently has over 3,00,000 satisfied customers
 We have customer care centers in 155 cities with 28000 Insurance Consultant providing the finest
customer service.
 One of India's leading private life insurance companies
Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and
Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA)
certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business (including Health
Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj
Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany.

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.
 ALLIANZ GROUP

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.
 ALLIANZ AG- A GLOBAL FINANeCIAL POWERHOUSE
 Worldwide 2nd by Gross Written Premiums - Rs.4,46,654 cr.
 3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. - AUM of
Rs.51,96,959 cr.
 12th largest corporation in the world
 49.8 % of global business from Life Insurance
 Established in 1890, 110 yrs of Insurance expertise
 70 countries, 173,750 employees worldwide
 BAJAJ GROUP

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-
wheelers and three-wheelers in India and one of the largest in the world.

A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous with quality
& customer focus.

A STRONG INDIAN BRAND- HAMARA BAJAJ

 One of the largest 2 & 3 wheeler manufacturer in the world
 21 million+ vehicles on the roads across the globe
 Managing funds of over Rs 4000 cr.
 Bajaj Auto finance one of the largest auto finance cos. in India
 Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03
 It has joined hands with Allianz to provide the Indian consumers with a distinct option in terms of
life insurance products.
 As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to offer -
 Financial strength and stability to support the Insurance Business.
 A strong brand-equity.
 A good market reputation as a world class organization.
 An extensive distribution network.
 Adequate experience of running a large organization.
 PRODUCTS

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.
 INDIVIDUAL PRODUCTS

UNITGAIN RISK CARE

A Unit Linked Plan Pure Term Plan
TERM CARE INVESTGAIN
Term Plan with Return-of-Premium An Endowment Plan
LIFETIME CARE CHILDGAIN
Whole Life Plan Children's Policy
LOAN PROTECTOR
CASHGAIN
A Mortgage Reducing Term Insurance
Money Back Plan
Plan
KEYMAN INSURANCE SWARNA VISHRANTI
A Promising Business Opportunity Retirement Plan
UNITGAIN PLUS LIFELONG GAIN PLAN
Unit Link plan with higher allocation A lifetime of security for your family
MAHILAGAIN RIDER
RIDERS UNITGAIN PLUS
The unique plan that takes care of you and
While the basic life insurance
your loved ones.
UNITGAIN EASY PENSION SWARNA RAKSHA-ROC
A Plan that enables you retire with A plan that provids you with regular
laughter lines.... not worry lines income... for life.
HEALTHCARE UG PREMIER
This is a three-year health insurance plan, Upfront Allocation of 105% of single
with life insurance benefit. premium on day 1
 GROUP PLANS

 GROUP CREDIT SHIELD

 GROUP TERM LIFE
 GROUP TERM LIFE SCHEME
 GROUP SUPERANNUATION SCHEME
 GROUP GRATUITY CARE SCHEME
Insurance For NRI
All Indians have an underlying need to feel secure, to care for the loved ones and to provide for old age.
The need is felt more when you are away from your Homeland. But being away from India doesn't mean
you have to compromise on the safety and security of your loved ones.

In fact, you can now easily steer your savings from overseas to conveniently meet your family's needs - now
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them know that you care. That's why Bajaj Allianz introduced the NRI Insurance services. Now, you can
invest your hard earned money in India and in the bargain ensure your family's future.
 InvestGain - 'With Profits Endowment Plan'.
 CashGain - 'With Profits Money Back Plan'.
 ChildGain - 'With Profits Money Back Plan' for children.
 Lifetime Care - 'With Profits Whole of Life Plan'.
 Swarna Vishranti - 'With Profits Differed Annuity Plan'.
 UnitGain - 'Unit Linked Whole of Life Plan'.
 OBJECTIVES OF THE STUDY

 To study the sales Strategy of field force of Bajaj Allianz Life Insurance.

 To study the process of selling of Insurance Policies by Adivsors.

RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. Research

methodology constitutes of research methods, selection criterion of research methods, used in
context of research study and explanation of using of a particular method or technique so that
research results are capable of being evaluated either by researcher himself or by others. Why a
research study has been undertaken, how the research problem has been formulated, why data have
been collected and what particular technique of analyzing data has been used and a best of similar
other question are usually answered when we talk of Research methodology concerning a research
problem or study. The main aim of research is to find out the truth which is hidden and which has
not been discovered as yet.
 AREA OF STUDY

The area of the study related with getting correct information of life insurance policies of different
peoples in the region of Bhopal.

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population. It refers to the
techniques or the procedure the researcher would adopt in selecting items for the sample. Sample
design may as well be drawn from the population to be included in the sample i.e. the size of the
sample. Sample design is determined before data are collected.
During my study I have taken 50 insurance care consultants as the size of sample.
 TOOLS USED

To know the response, I have used the questionnaire method. If one wish to find what insurance
care consultants think or know, the logical procedure is to ask them. This has led marketing
researchers to use the questionnaire technique for collecting data more than any other method.

In this method questionnaire were distributed to the respondents and they were asked to answer the
questions in the questionnaire. The questionnaire were structured non disguised questionnaire
because the question which the questionnaire contained, were arranged in a specific order besides
every question asked were logical for the study, no question can be termed as irrelevant.

The questionnaire was non-disguised because the questionnaire was constructed so that the
objective is clear to the respondent. The respondents were aware of the objective. They knew why
they were asked to fill the questionnaire.

With the help of following techniques, which are using by Bajaj Allianz I analyse that the how
techniques of sales promotion are useful.
 DATA COLLECTION

PRIMARY DATA SOURCES

 Through interaction with insurance care consultant
 Through questionnaires filled from the insurance care consultant.

SECONDARY DATA SOURCES:

 Through internet, various official sites of the companies.
 Through pamphlets and brochures of the companies.
 Journals & Magazine
 LIMITATIONS OF THE STUDY

Following limitations were faced during the study:

1. While designing the questionnaire it was kept in mind to gather more and more information
from each target person. For the neither present nor descriptive questions could have served
the purpose. Therefore the questionnaire contained in the open-ended questions.
2. The study was conducted in Bajaj Allianz in Bhopal city, which has 127 to 170 insurance
care consultants only. The sample size was of 50 insurance care consultants only so that
accuracy of data so collected could be absurd covered by circulation of questionnaire.
3. The accuracy of indications given by the respondents may not be consider adequate as
whether the language used in the questionnaire is understood by the respondent cannot be
taken for granted.
4. The study is based on the information gathered from the insurance care consultants.
Therefore in such case it is possible that the information supplied might be biased because
the insurance care consultant might have shown partiality towards their insurance policies.
5. Since the survey was limited to 50 insurance care consultants it is rather difficult to give a
precise conclusion but I have tried to the best of my capability to give the conclusion on a
comprehensive manner.
DATA ANALYSIS
&
INTERPRETATION
 DATA ANALYSIS AND INTERPRETATION
(Based on survey conducted for 50 insurance care consultants)

Q.1 Which technique of sales promotion you prefer?

Options Response in %
Display 40%
Door to Door Demo 14%
Exhibition 16%
Catalogue 20%
Price Off 10%

Interpretation:
According to the study 40% insurance care consultants prefer display technique,20% insurance care
consultants prefer catalogues, 16% to the exhibition, 14% to the door to door demo and 10%
insurance care consultants prefer price off technique.
 Q.2 which technique is giving good response from customers?
Options Response in %
Display 18%
Door to Door Demo 36%
Exhibition 18%
Catalogue 16%
Price Off 12%

Interpretation:
According to the study 36% insurance care consultants say door to door demo techniques giving
good response, 18% insurance care consultants say to the display & exhibition, 16% to the
catalogues & 12% say to the price off technique.
 Q.3 Which technique is economically beneficial?
Options Response in %
Display 10%
Door to Door Demo 22%
Exhibition 10%
Catalogue 46%
Price Off 12%

Interpretation:
According to the 46% insurance care consultants, catalogue technique is economically beneficial.
22% to the door-to-door demo and 12% insurance care consultants prefer price off technique.10%
to the exhibition & display technique.
 Q.4 Which technique requires less time in sales promotion?
Options Response in %
Display 22%
Door to Door Demo 38%
Exhibition 10%
Catalogue 16%
Price Off 14%

Interpretation:
According to the study 38% insurance care consultants say display technique requires less time in
sales promotion. 22% to the display technique, 16% insurance care consultants vote to the
catalogues, 14% insurance care consultants vote to the 10% to the exhibition.
Q5 Which technique is easily manageable?

Options Response in %
Display 18%
Door to Door Demo 30%
Exhibition 10%
Catalogue 34%
Price Off 8%

Interpretation:
According to the study 34% insurance care consultants say that the catalogues is easily manageable,
30% to the door to door demo,18% insurance care consultants prefer display technique 10% to the
exhibition, and 8% insurance care consultants say to the price off technique.
 Q.6Which technique requires less knowledge to execute?
Options Response in %
Display 14%
Door to Door Demo 12%
Exhibition 12%
Catalogue 22%
Price Off 40%

Interpretation:
According to the study 40% insurance care consultants vote to the price off technique is require less
knowledge to execute.22% insurance care consultants prefer catalogues, 14% to the display and
12% to the exhibition & door to door.
 Q.7 Which technique requires more knowledge to execute?
Options Response in %
Display 20%
Door to Door Demo 42%
Exhibition 24%
Catalogue 10%
Price Off 4%

Interpretation:
According to the study 42% insurance care consultants vote to the door-to-door technique that it
requires more knowledge to execute than others. 24% to the exhibition, 20% to the display
technique, 10% insurance care consultants give vote to the catalogues and 4% insurance care
consultants prefer price off technique.
 Q.8 Price off are necessary for sales promotion?
Options Responses in %
Yes 46%
No 40%
Can’t say 14%

Interpretation:
According to the study 46% insurance care consultants say yes that the price off are necessary for
sales promotion. 40% say no and 14% say can’t say.
 Q.9 Do you think that sales promotion program that is presently undertaken by
Bajaj Allianz. are satisfactory?

Options Responses in %
Yes 34%
No 46%
Can’t say 20%

Interpretation :
According to the study 46% insurance care consultants say No that the sales promotion program
that is presently undertaken by Bajaj Allianz are satisfactorily 36% say Yes and 20% say can’t say.
 Q.10 Should Bajaj Allianz take up new sales promotion program?
Options Responses in %
Yes 72%
No 22%
Can’t say 6%

Interpretation :
According to the study 72% insurance care consultants say yes installment offers are 22% say no
and 6% say can’t say.
COMPARATIVE ANALYSE
OBSERVATIONS
&
FINDINGS
 OBSERVATIONS & FINDINGS

 This sales promotion process was very much satisfying for me not only practically and
academically but it also helped me in developing my communication skill and enriched my
knowledge also.
 I have come to know about the importance of marketing especially with regard to Sales
Promotion on the most renowned organization like Bajaj Allianz. Especially because of
emergence of many competitor with excellence in services & competitive product. The base
of this chapter conclusion is on the data analysis or what we say findings.
 I have finding from the insurance care consultants of the Bajaj Allianz. and their insurance
policies on my topic.
 When the insurance care consultant is asked why they are dealing in this particular insurance
policies (product) they mostly stressed on company’s image. They also said that all income
and age group of customers are attracted towards their product but buyers are mainly from
higher and middle-income group.
 Insurance care consultants said that their sale is very much increased in the last years
because of an excellent performance of the product. Insurance care consultants said that the
customer are very much satisfied after getting insurance policies because of its features
related with risks of life and also because of quality of service provide by their company is
very good.
 LIMITATIONS

As every aspect of life has its own limitation the same goes with research. The few
limitations attached to this research are:

 As time and tide waits for none so is the case with this research. A much more detailed analysis
could be done had three been more time spent for data collection. Due to lack of time data from the
all places could not be collected.

 Management of all the activities from one place limited the research with in it self as appropriate
data, which was required, was not available.

 The views of respondents are likely to change as human nature is very dynamic.

 The result figure may be biased since the subjects/investors may provide wrong information.

 The survey may not give the whole scenario of Indian market.

 Some subjects/investors were not co–operative on their approach.

SUGGESTIONS
 SUGGESTIONS

Here are some suggestions, which may help to strengthen the firm further

 Many of the insurance care consultants of the Bajaj Allianz. Has the lack of good
communication skills and training. So training should be easy.
 Bajaj Allianz. Should use new techniques of sales promotion.
 Customer services should be more comfortable than others.
 People must be made aware of the benefits of the policies of Bajaj Allianz.
 The company should give personal attention to each customer.
 Proper assistance should be provided to the customer at the time of claim settlement.
 All the details about the company should be given to the customers.
 Regular advertisement of the company should be given TV and Newspaper.
 The company must try to find new markets especially in the rural areas.
 The company should do frequent analysis of the competitors.
 BIBLIOGRAPHY

Books
 Kothari C.R., (1999) Research Methodology, Wishwa Prakashan
 Kotler P. and Armstrong G., (2005) Principles of Marketing New Delhi, Prentice Hall of
India
 Kotler P., (1999)Marketing Management Analysis, Planning, Implementation and Control,
New Delhi, Prentice Hall of India
 Saxena Rajan, (1999) Marketing Management, Tata McGraw Hill

Websites:

 www.bajajallianz.com
 www.quickmba.com
 www.indiainfoline.com
 QUESTIONNAIRE
Name : _____________________________________
Address : _____________________________________

Q.1 To which technique of sales promotion you prefer?

A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off

Q.2 which technique is giving good response from customers?

A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off

Q.3 Which technique is economically beneficial?

A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off

Q.4 Which technique requires less time in sales promotion?

A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off

Q.5 Which technique is easily manageable?

A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off
Q.6 Which technique requires less knowledge to execute?
A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off

Q.7 Which technique requires more knowledge to execute?

A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off

Q.8 Price off and installment offers are necessary for sales promotion?
A) Yes B) No
C) Can’t say

Q.9 Do you think that sales promotion program that is presently undertaken by Bajaj Allianz. are
satisfactory?
A) Yes B) No
C) Can’t say

Q.10 Should Bajaj Allianz. take up new sales promotion program?

A) Yes B) No
C) Can’t say