Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
DEVELOPMENT
FOR THE
BAJAJ ALLIANZ LIFE INSURANCE ”
Submitted towards
the partial fulfillment for
award of degree of
Master of Business
administration (M.B.A)
Submitted by : -
Dilip Kumar Tandi
Roll No. : 0711670037
MBA (Batch 2007 -2009)
Jaipuria Institute of Management, 14-C, Vasundhra, Ghaziabad
Approved by AICTE (All India Council of Technical Education)
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JAIPURIA INSTITUTE OF MANAGEMENT
14-C, vasundhra, Ghaziabad (U.P.)
CERTIFICATE
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DECLARATION
Date
Place Signature
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PREFACE
The importance of an academic course would gain advantage and
acceptance of the true form, only through practical experience. Hence it
is quite necessary to put the theories into talk. It is rigidly accepted that
the theory widens one’s thinking horizons viz. Concepts of marketing
philosophies, but practice indicates the modern marketing and used in
variety of settings of products.
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ACKNOWLEDGEMENT
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TABLE OF CONTENTS
1. Executive Summary
3. Industry Overview
4. Company Profile
6. Distribution Channel
7. Research Methodology
8. SWOT Analysis
9. Findings
10. Recommendations
11. Bibliography
12. Questionnaire
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EXECUTIVE SUMMARY
My job was to create the database for the organization so that the
number if Insurance Consultant’s could be increased. My job was to
approach the individuals who are interested in joining the organization
as Insurance Consultant, within the limitations like related to age,
related to qualification, and then his/her details with the help of
questionnaire. I visited various areas of Delhi, Ghaziabad in order to
meet different types of people.
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WHAT IS LIFE INSURANCE
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LIFE INSURANCE INDUSTRY IN INDIA
Many may not be aware that the life insurance industry of India is
a s old as it is in any other part of the world. The first Indian Life
Insurance Company was the Oriental life Insurance Company, which was
started in India in 1818 at Kolkata. A number of players (over 250 in life
and about 100 in non-life) mainly with regional focus flourished all
across the country. However, the Government of India, concerned by the
unethical standards adopted by some players against the consumers,
nationalized the industry in two phases in 1956 (life) and 1972 (non-
life). The insurance business of the country was then brought under two
public sector companies, Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC).
With such a large population and the untapped market area of this
population Insurance happens to be a very big opportunity in India.
Today it stands as a business growing at the rate of 15-20 percent
annually. Together with banking services, it adds about 7 percent to the
country’s GDP. In spite of all this growth the statistics of the penetration
of the insurance in the country is very poor. Nearly 80% of Indian
populations are without Life Insurance cover and the Health Insurance.
This is an indicator that growth potential for the insurance sector is
immense in India. It was due to this immense growth that the regulations
were introduced in the insurance sector and in continuations “Malhotra
Committee” was constituted by the government in 1993 to examine the
various aspects of the industry. The Committee recommended throwing
open the sector to private players to usher in competition and bring more
choice to the consumer. The objective was to improve the penetration of
insurance as a percentage GDP, which remains low in India even
compared to some developing countries in Asia. The key element of the
reform process was Participation of overseas insurance companies with
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26% capital. Creating a more efficient and competitive financial system
suitable for the requirements of the economy as the main idea behind
the reform.
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A BRIEF HISTORY
The origin of insurance is very old. The time when we were not
even born; was has sought some sort of protection from the unpredictable
calamities of the nature. The basic urge in man to secure himself against
any form of risk and uncertainty led to the origin of insurance.
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INSURANCE SECTOR REFORMS
In 1993, Malhotra Committee headed by former Finance Secretary
and RBI Governor was formed to evaluate the Indian industry and give
its recommendations. The committee came up with the following major
provisions:-
Private Companies with a minimum paid up capital of Rs. 1 bn
should be allowed to enter the industry.
Foreign companies may be allowed to enter the industry in
collaboration with the domestic companies.
Only one state level Life Insurance Company should allow to
operate in each state.
IRDA : The IRDA since its incorporation as a statutory body has been
framing regulations and registering the private sector insurance
companies. IRDA being an independent statutory body has put a
framework of globally compatible regulations .
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INSURANCE MARKET IN INDIA
WINDS OF CHANGE
Reforms have marked the entry of many of the global insurance
majors into the Indian market in the form of joint ventures with Indian
companies. Some of the keys names are AIG, New York Life, Allianz,
Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry of
new players has rejuvenated the erstwhile monopoly player LIC. Which
has responded to the competition in an admirable fashion by launching
new products and improving service standards.
Market Expansion :
There has been an overall expansion in the market. This has
been possible due to improved awareness levels thanks to the large
number of advertising campaigns launched by all the players. The scope
for expansion is still unlimited as virtually all the players are
concentrating on large cities and towns – except by LIC to an extent
there was no significant attempt to tap the rural markets.
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New Product Offerings :
There has been a plethora of new players, mainly from the stable
of their international partners. Customers have tremendous choice from a
large variety of products from pure term insurance to unit-linked
investment products. Customers are offered unbundled products with a
variety of benefits as riders from which they can choose. More customers
are buying products and services based on their true needs and not just
traditional money-back policies, which is not considered very
appropriate for long-term protection and savings. However, there are still
some key new products yet to be introduced – e.g. health products.
Customer Service :
Not unexpectedly, this was one area that witnessed the most
significant change with the entry of new players. There is an attempt to
bring in international best practices in service and operational efficiency
though use of latest technologies. Advice and need based selling is
emerging through much better trained sales force and advisors. There is
improvement in response and turnaround times in specific areas such as
delivery of first policy receipt, policy document, premium notice, final
maturity payment, settlement of claims etc. However, there is a long way
to go and various customer surveys indicate that the standards are still
below customer expectation levels .
Channels of Distribution :
Till two years back, the only mode of distribution of life insurance
products was through Agents. While agents continue to be the
predominant distribution channel, today a number of innovative
alternative channels are being offered to customers. Some of them are
bancassurance, brokers, the internet and direct marketing. Though it is
too early to predict, the wide spread of bank branch network in India
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could lead to bancassurance emerging as a significant distribution
mechanism.
The following companies has the market share of the life insurance
industry.
Insurance Company Market Share (Fig. in %)
LIC 71.44
ICICI Prudential 11.35
Bajaj Allianz 7.06
HDFC Standard Life 2.37
SBI Life 1.81
Birla Sun Life 1.49
Max New York Life` 0.98
TATA AIG 0.79
Aviva 0.89
OM Kotak Mahindra 0.86
ING Vyasa 0.57
Reliance 0.37
MetLife 0.24
Ma rk e t S ha r e of Li fe I ns ura nce Com pa nie s as of May 2 00 6
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CURRENT SCENARIO OF THE
INSURANCE INDUSTRY IN INDIA
India with about 200 million middle class household shows a huge
untapped potential for players in the insurance industry. Saturation of
markets in many developed economies has made the Indian market even
more attractive for global insurance majors. The insurance sector in
India has come to a position of very high potential and competitiveness
in the market.
CUSTOMER SERVICE
Consumers remain the most important centre of the insurance
sector. After the entry of the foreign players the industry is seeing a lot
of competition and thus improvement of the customer service in the
industry. Computerization of operations and updating of technology has
become imperative in the current scenario. Foreign players an bringing
in international best practices in service through use of latest
technologies. The one time monopoly of the LIC and its agents are now
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going through a through revision and training programs to catch up with
the other private players.
DISTRIBUTION CHANNELS
Till date insurance agents still remain the main source through
which insurance products are sold. The concept is very well established
in the country like India but still the increasing use of other sources is
imperative. It therefore makes sense to look at well – balanced,
alternatives channels of distribution.
Direct Selling
Corporate Agents
Group Selling
Brokers and Cooperative Societies
Bancassurance
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BANCASSURANCE
India has an extensive bank network established over the years.
What Insurance companies have to do is to just take advantage of the
customer’s long-standing trust and relationships with banks. This is a
mutually beneficial situation as banks can also expand their range of
products on offer to customers, while the insurance company will also
earn profits from the exposure. Another advantage is that banks, with
their network in rural areas, help to fulfill rural and social obligations
stipulated by the
PRODUCT INNOVATION
Customers have tremendous choice from a large variety of
products from pure term insurance to unit-linked investment products.
Customers are offered unbundled products with a variety of benefits as
riders from which they can choose. More customers are buying products
and services based on their true needs and not just traditional money-
back policies, which is not considered very appropriate for long-term
protection and savings.
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RURAL MARKETING
Rural India seems to have an appetite for mobile phones,
computers, and cars and to add to it we have insurance. In India with the
private players having entered into the insurance industry, the expected
explosion in job opportunities may not actually happen but for them the
catchments area is the opportunities in the rural India. In India the
insurance business can be said to be “a marathon, not a sprint”. This is
because of the nature of the business being long term. However it seems
that they if not anything, are only increasing their spending, though only
out of the capital. As insurance companies go more and more rural in
search of business, there will be opportunities in the rural sector.
Already United India The Rural consumer is now exhibiting an
increasing propensity for Insurance products. A research conducted
exhibited that the rural consumers are willing to dole out anything
between Rs. 3,500 and Rs. 2,900 as premium each year. In the Insurance
the awareness level for Life Insurance is the highest in rural India, but
the customers are also aware about motor, accidents and cattle insurance.
According to a study nearly one third said that they had purchased some
kind of insurance with the maximum penetration skewed in favor of life
insurance. The study also pointed out the private companies have huge
task to play in creating awareness and creditability among the rural
populace.
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MERGERS AND ACQUISTIONS
This is an era of mergers and acquisitions. Private companies
including MNC’s are amalgamating the world over to get more
competitive edge. Currently, the general insurance industry has been
opened up. The insurers are doing enough to raise the level of risk
awareness or are they merely content to compete in the markets
organized and established. The private players in the future would have
to turn their attention to working in the unorganized and under served
markets.
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Now with real competition coming in with most of the global
insurance players setting footprints here, it is felt that the time for
merger has come and to enjoy the benefits if the size. It is to be stated
that size does matter in insurance business. All over the world’s mergers
and acquisitions in the risk-underwriting sector is common. The benefits
if the four insurance companies merge will be enormous. The merged
entity will enjoy higher underwriting and risk retention capacity;
increase in reinsurance premium, reduction in reinsurance outflow,
healthy solvency margins, setting right the asset-liability mismatch and
reduction in cost. The loss of profitable business in view of undeserved
competition among the public sector companies is hampering the
subsidization of social insurance including the motor third party liability
(TPL).
STRATEGIC ALTERNATIVES
If one analyses the history of growth of the insurance industry
since reforms, it is marked by all- round growth of all players. More or
less all players have aggressively recruited and trained advisors,
appointed agents, launched new products, improved customer service
standards and revamped/expanded their distribution networks. Every
player would like the customers to believe that its service standards are
the best or that its agents are the most informed and ethical. In other
words, each company is trying to be ‘everything to everybody’. Some
players justify the above strategy on the basis that the Indian market is
huge and it can accommodate everybody. Still, in a market where it is
difficult to distinguish oneself sufficiently on service or any other
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parameter to be able to charge a premium, it will lead to unmitigated
price competition to the detriment of all players. In the insurance
industry where large amounts of capital are required, this is risky.
While there is room for a few scale players with a finger in every
pie, it is profitable for the players to focus on different segments to
survive and thrive in a multi-firm open environment. While each
company has to choose its own unique positioning based on its unique
strengths.
• Variety-based Positioning
This type of positioning is based on varieties in products and
services rather than customer segments. It is a sensible strategy for those
companies who have distinctive advantages or strengths in offering
certain products and services.
In the insurance industry too, it is possible to achieve a unique
position by focusing on certain category of products. Through its
superior fund management capabilities, the insurance company can
deliver better returns on it investment-linked products and thereby for
itself a leadership position in this segment.
Then there is the entire category of pension products, which is
widely touted to have immense growth potential in India due to imminent
pension reforms. It is possible to achieve profitable positioning by
focusing and excelling in only pension products.
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have a wide variety of products of different customer needs and there is
no company focusing only on a particular customer needs.
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So we can conclude that, the size of the market has grown and the
size of the insurable population in India is indeed vast and the existing
players have managed to cover about one-fourth of it.
The falling interest rates, the collapse of many small –time
financial institutions, the scope for entering related areas like banking
and pensions in a bid for synergy and the promise of the e-commerce are
some of the other opportunities knocking at the doors of the insurance
majors.
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COMPANY
PROFILE
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ABOUT BAJAJ ALLIANZ LIFE INSURANCE
Vision:
To be the first choice insurer for customers.
To be the preferred employee for staff in the insurance industry.
To be the number one insurer for creating shareholder value.
SAM GHOSH, who was the CEO of Bajaj Allianz earlier has taken over
as country Manager and is also the CEO of Bajaj Allianz Life
Insurance Company .
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Bajaj Allianz General Insurance Company Limited
In its first year of operations the company has acquired the NO. 1
status among the private non-life insurers. As on 31 s t March 2003, Bajaj
Allianze General Insurance maintained its leadership position by
garnering a premium income of Rs.300 Crores. Bajaj Allianze also
became one of the few companies to make a profit in its first full year of
operations. Bajaj Allianz made a profit after tax of Rs.9.6 crores.
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Shareholders & Promoters
Global Presence
Business Fields
Property & Casualty Insurance
When it comes to property and casualty insurance, Allianz is
number one in Germany. Allianz also ranks as one of the world's leading
global industrial risk insurers.
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Allianz AG is in the business of General (Property & Casualty)
Insurance; Life & Health Insurance and Asset Management and has been
in operation for over 110 years. Allianz is one of the largest global
composite insurance with operations in over 70 countries. Further, the
Group provides Risk Management and Loss Prevention Services. Allianz
has insured most of the world’s largest infrastructure projects (including
Honkong Airport and Channel Tunnel between UK and France), further
Allianz insures the majority of the fortune 500 companies, besides being
a large industrial insure, Allianz has a substantial portfolio in the
commercial and personal lines sector, using a wide variety of innovative
distribution channels.
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Fully licensed to underwrite all lines of general insurance business
including health with management control by Allianz AG
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Bajaj Allianz general Insurance: 125 percent profit Increase
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findings from existing customers, business associates, prospective
customers and other stakeholders indicates higher comfort level and
ease of recalling Bajaj name first and then Allianz, and hence the name
Bajaj Allianz.
Bajaj Allianz General Insurance Company Limited and Bajaj
Allianz Life Insurance Company Limited will now have a common logo
and branding which will help in increasing our visibility and familiarity,
which will create a much larger awareness and a greater mind share. The
new logo incorporates the new Bajaj Auto logo.
Commenting on this occasion Mr. Sam Ghose Manager, Allianz
and CEO, Bajaj Allianz Life Insurance said, “ we are not only acquiring
a new name, but have put in motion a new level of energy and
commitment to delivering the best products. The name change coupled
with aggressive strategic market initiatives to reach service customers
better will give us an unbeatable position in the insurance market in this
country and both Life and General companies together can unleash the ‘
Power of One’ and be the leader in the insurance industry.”
Bajaj Allianz Life Insurance has also brought in the key executives, to
infuse greater thrust, new ideas, efficiency and professionalism to impart
state of the art servicing to the customers across the length and breadth of
the country.
Trust
Underwriting Philosophy
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Claims Philosophy
The Bajaj Allianz team follows a service that aims at taking the
anxiety out of claims processing. They pride themselves on a friendly
and open approach. They are focused towards providing the customer a
hassle free and speedy claims processing. Their claims philosophy is to:
Be flexible and settle fast
Ensure no claim file to be seen by more than 3 people
Check processes regularly against the global Allianz OPEX
(Operational Excellence) methodology
Customer Orientation
At Bajaj Allianz, the guiding principals are customer service and
client satisfaction. All the efforts are directed towards understanding the
culture, social environment and individual insurance requirements- so
that they can cater to all the customer’s varied needs.
Superior Technology
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Using the Web, policies can be issued form any office across the
country for retail products
Unique, user friendly software developed to make the process of
issue of policies and claims settlement simpler (e.g. online
insurance of marine policy certificate)
Their service methodology is tried, tested and Proven the world over
and involves:
Risk identification: Inspection
Risk analysis: Portfolio review and gap analysis.
Risk retention
Risk Transfer: To an insurer as well as reinsurer (as required)
Creation of need based products
Ongoing dialogue and proactively
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PRODUCTS
OF
BAJAJ ALLIANZ
LIFE INSURANCE
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LIFE INSURANCE POLICIES
The Bajaj Allianz Life gain Plan comes with a host of features to
allow customer to have the best of all words – regular income for
customer and the added benefits of providing for loved ones too. This is
the perfect plan to take care of ongoing and future family expenses like
debts, expenses on children, living expenses, etc. It can also take care of
unforeseen expenses like accidents, illness. Hospitalization etc. and
provides a family with a safety net.
The premiums paid are invested in the Lifelong Gain Fund (based on the
allocation rate) and units are allocated depending on the offer price of
units for the fund. The value of the policy is the bid value of units that a
customer holds in the fund. The life insurance cover charges are
deducted through monthly cancellation of units and the fund
administration charge and fund management charge are priced in the unit
value.
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Death Benefit: In the case of unfortunate premature death the
beneficiaries are entitled to the greater of :
• Sum Assured less partial withdrawals
• The bid value of units
If the age of the insured person is less than 7 or above 70, then the
bid value of unit is paid.
Maturity Benefits:
On the life assured attaining age 100, the bid value of unit in the
fund will be paid out and the policy will terminate.
Full Withdrawal:
Life long Gain offers the customer the flexibility of the withdrawals
by surrendering all his units, anytime after 3 full years’ premiums
paid. The full withdrawals are paid out at the bid value of units. On
full withdrawal the policy will terminate.
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Partial Withdrawal:
Key Features
Benefits
Death benefits
Guaranteed Survival Benefits
Maturity Benefits
Full Withdrawals
Partial Withdrawals
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With Bajaj Allianz Unit Gain Plus, A customer can invest in one
life insurance plan that can take care of all his/her changing
requirements throughout their life. This plan has been designed to
provide them with maximum flexibility, so that they do not have to
worry about their changing need s.
Bajaj Allianz Unit Gain Plus Offers the unique option of combining the
protection of life insurance with the attractive prospects of investing in
securities. A person can choose the
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plan is expected to match the returns given by Nifty Index of the
National Stock Exchange. This fund will invest at least 85% in
equities and maximum 15% in debt and cash.
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will be invested in money market instruments. The price of the units in
this fund is guaranteed never to go down.
Bajaj Allianz Unit Gain Plus offers unmatched flexibility to suit the
policy according to the customer’s requirements.
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customer with the unique features of continued protection even if
they forget to pay their premiums. After payment of three full
years premiums, when premiums due are not paid, the policy will
stay in force with full benefits so long as there are enough units
available for charging the Cost of Insurance and Additional
Benefits after deducting all applicable charges .
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surrender penalty on partial or full withdrawals after full 3 years
premiums are paid.
Key Features
Benefits
Death Benefits
Cash withdrawal option
Term Care
This plan not only offers the customer life insurance cover at a
low cost, but also provides for return of premiums on maturity. The
premiums returns at maturity will be equal to the single premium or the
sum total of equivalent annual premiums of the Economy Pack
(excluding extra premiums charged if any). In case of premature death
the policy term, the full sum Assured will be paid to the nominee.
The “Bajaj Allianz Term care” Plan offers the customer the
convenience of choosing between two premium payment options.
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Regular Premium Payment : Premium payment throughout
the selected term.
Single Premium Payment : One time premium payment for
the selected term at commencement.
Apart from covering the risk of natural death, this plan also provides
the customer the option to choose up to 5 additional benefits. The
customer can select a specific combination of additional benefits best
suited to his/her needs, available in 4 attractive packages to choose from.
I. Economy : This is the basic plan, which is available for both the
regular and single premium payment options.
II. Protect : This pack comes with the following 3 in-built additional
benefits :
The Protect Pack is available with the regular premium payment option
only.
additional benefits :
a) Critical Illness Benefit.
b) Hospital cash Benefit. The health Pack is available with the
regular premium payment option only .
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IV. Total : This pack comes with the following 5 in-built additional
benefits :
a) Accidental Death Benefit.
b) Accidental Permanent Total/ Partial Disability Benefit.
c) Waiver of Premium Benefit (in case of accidental permanent
total disability)
d) Critical Illness benefit
e) Hospital Cash Benefit
The Total Pack is available with the regular premium payment option
only.
Benefits :
Accidental Death Benefit
Accidental Permanent Total /Partial Disability Benefit
Waiver of premium Benefit
Critical Illness Benefit
Tax Benefits
Surrender
Loans
LOAN PROTECTOR
The Bajaj Allianz “Loan Protector” plan is a mortgage term
insurance plan that covers the outstanding principal amount of a loan. It
is an economical way to protect the family from the burden of repayment
of the loan in case of death of the loaner. The plan is designed to pay a
sum insured that will be equal to the outstanding principal amount of the
loan due.
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The “Bajaj Allianz Protector” Plan offers the convenience of
choosing between two premium payment options.
Days of Grace
In case of non-payment of premiums, a grace period of 30 days
will be allowed for the yearly, half yearly and quarterly modes (15 days
for monthly mode). After that the policy will lapse.
General Exclusion
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Within 15 days from the date of receipt of the policy, the
customer have the option to review the terms and conditions and return
the policy, if the customer disagree to any of the term and conditions,
stating the reasons for his/her objections. The customer will be entitled
to a refund of the premium paid, subject only to a deduction of a
proportionate risk premium for the period on cover and expenses
incurred on medical examination and stamp duty charges.
Benefits :
Death Benefit
Premium Payment mode
Tax benefits
Surrender values/ paid up values
CHILD GAIN
Taking care of a child is perhaps the most important job a parent
can have. It is but natural that a person would like to give his/her best,
and therefore, this is the time when careful financial planning can help
them to fulfill the aspirations that the customers have for his/her
children .
III. The customers are also eligible for Tax benefits under Section 88
and Section 10 (10 D) of the Income Tax Act.
Premiums
For the customer’s convenience they have provided three Premium
Payment Modes can be Yearly, Half yearly or Quarterly.
They also offer a Monthly Premium Payment Mode under salary
deduction schemes.
Surrender
They offer the customer the choice of surrendering the policy
provided three full years premium have been paid (Two years for
premium terms of 5 and 6 years). The guaranteed minimum surrender
value is 30% of all premiums paid excluding the first year premium and
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excluding the premiums for premium waiver benefit and Family Income
benefit and additional benefit opted for. The guaranteed minimum
surrender value after the premium payment term will be the discounted
value of the outstanding installment payments discounted at 10 % p.a.
rate of interest.
Loans
Exclusions
The Death Cover is subject to the following Exclusion :
Suicide within one year from commencement of risk, whether sane or not
this product brochure gives the salient feature only. The relevant policy
document is the conclusive evidence of the contract, and provides in
detail all the conditions. Exclusion related to each of plans under the
Bajaj Allianz “Child Gain” Solutions.
INVEST GAIN
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It takes only a moment to make promises and a lifetime to keep
them. Keeping promises made to your loved ones is not just a
responsibility, but a commitment that you have to live up to.
When you promise to see your family through thick and thin you
need to make sure that you have planned for all the eventualities that
may befall on them. You need to be prepared that even if there ever is an
instance that you are not there with them you have saved enough to see
them through their entire life.
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while keeping the valuable life insurance cover alive, thus enabling you
to live up to your commitments.
Flexibility in Coverage :
All Bajaj Allianz, they believe I offering benefits and not just
products. They realize that customers are unique and their needs for
insurance vary with time. They therefore offer the customer the
flexibility of inclusion of coverage or exclusion of coverage at each
policy anniversary, subject to conditions relating to such inclusions and
exclusion. “Comprehensive Accident Protection” can be included and
excluded at each policy anniversary. Family Income Benefit, Critical
Illness benefit and Hospital Cash Benefit can be taken at inception only.
CI and HC can be reduced or excluded subsequently at any policy
anniversary. Once reduced or excluded, they cannot be increased or
included subsequently.
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Increase In risk Coverage
Every added responsibility in a person’s life call for increase in
his/her risk cover. Bajaj Allianz provide the customer the option to
increase coverage up to 505 of the basic Sum Assured on each of the
following happy moments in their life :
Your Marriage.
The Birth of your First Child.
The Birth of the Second Child.
Choice Of Terms
Keeping the customer’s convenience in mind, Bajaj Allianz offers
the customer the widest range of terms : 15, 20, 25,and 30 years.
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a) Family Income Benefit (FIB) : The Ultimate Protection For
your loved Ones. The customer can select the unique Family Income
Benefit From Bajaj Allianz that ensures total financial protection for
their loved ones. In case of death or accidental total permanent
disability, a guaranteed monthly income 1% of the Sum Assured (12%
per annum) is paid till the end of the policy term or at least for a period
of 10 years, whichever is higher. Moreover, all future premiums are
waived.
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An accident may lead to permanent total disability, limiting one’s to
earn. “Bajaj Allianz Waiver of Premium Benefit” is a helping hand
when one needs it most. It waives off all future premiums while keeping
the valuable life insurance cover alive, thus enabling you up to your
commitments.
Flexibility in Coverage
In Bajaj Allianz, they believe in the offering and not just products.
They realize that the customers are unique and their needs for insurance
vary with time. They therefore offer the customer the flexibility of
inclusion of coverage or exclusion of coverage at each policy
anniversary, subject to conditions relating to such inclusions and
exclusion. “Comprehensive Accident Protection” can be included and
excluded at each policy anniversary. Family Income Benefit, Critical
Illness Benefit and Hospital cash Benefit can be taken at inception only.
CI & HC can be reduced or excluded subsequently at any policy
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anniversary. Once reduced or excluded, they be increased or included
subsequently.
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The “Bajaj Allianz Save Care Economy – SP, is a Single Premium
investment plan for 10 years that also participates in the profits of the
company. The highlights of this plan are:
Minimum Guaranteed Return up to 3.54%(depending on age at
entry).
The Minimum Guaranteed Amount (Sum Assured) would grow
further by way of compounded annual bonuses.
A high risk-cover of up to 142% (depending on age at entry) of the
sum invested from the beginning of the policy term as a financial
safety net to provide for unpredictable adversities.
Eligible for Tax Benefits under Section 88 and Section 10 (10 D)
of the Income Tax Act.
At maturity you will receive the Sum Assured (Minimum
Guaranteed Amount) along with the accrued bonuses.
Death Benefit :
In case of death during the term of the plan, the nominee will be
paid the Sum Assured (Minimum Guaranteed Amount) plus accrued
bonuses. I case of death of a minor (below age 7), the death benefit will
be the surrender value or Single Premium whichever is higher.
RISK CARE
This plan offers the customer life insurance cover at the lowest
possible cost for a selected term. It is an ideal option to cover their near
and dear ones against financial risks arising out of life’s adversities –
like death and permanent disability. In the case of pre-mature death
during the term, the Sum Assured is paid to the nominee. There are no
survival benefits under this plan.
Economy:
This is the basic plan, which is available for both the regular and
single premium payment options.
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2. Hospital Cash Benefit. The heath pack is available with the regular
premium payment option only .
The total Pack is available with the regular premium payment option
only.
Benefits
Premium Waiver Benefit
Family Income Benefit
Option to Purchase future Insurance
Exclusions
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This plan provides you with the comfort that your near and dear
ones will continue to live their life without financial worries, even
when you are not around.
PENSION PLANS
SWARNA VISHRANTI
You have been working hard. You’re going to retire one day, How
do you see your retirement? Traveling Golfing? Turning a hobby into a
second career or volunteering for a noble cause or simply spending more
time with your family.
In retirement, how you choose to spend your time is now up to
you. It’s also up to you to ensure your retirement income lasts as long
you do. The decisions you make about your money today should be
flexible enough to accommodate your changing needs. Taking charge of
your olden years are golden years.
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a) Family Income Benefit : The customer can select the
unique Family Income Benefit from Bajaj Allianz that ensures
total financial protection for loved ones. In case of death or
accidental total permanent disability, a guaranteed monthly
income of 1% of the Sum assured (12% per annum) is paid till
the vesting date or at least for period of 10years, whichever is
higher. Moreover, all future premiums are waived. This unique
regular income benefit can act as important supplement to the
pension available to the spouse in the case of death.
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100% in case of total disability. (Subject to a maximum
of Rs. 25,00,000/- for partial and Rs. 50,00,000/- for
total disability under all policies with Bajaj Allianz taken
together).
c) Term Cover :
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e) Hospital Cash Benefit (HC) : The worry of setting hospital
bills (room charge) adds to the trauma of hospitalization. “Bajaj
Allianz Hospital Cash Benefit” reduces this financial burden
and helps recovery with peace of mind.
The plan works in two parts - The deferment period and The
annuity period. During the deferment period, the plan provided valuable
life cover and builds up the funds required to purchase the immediate
annuity. The deferment period ends at the vesting date. The customers
are free to choose their age of retirement (vesting date) between 45 and
70 years.
1. The Sum Assured along with all accrued bonuses will be used to
purchase an immediate annuity. The immediate will be purchased
at rates prevailing at that point of time.
2. Option to take lump sum: The customers have the option to take
upto 33% of Sum Assured plus accrued bonuses on the vesting date
as a lump sum. This amount would be tax in their hand, as per
current tax laws. The balance amount will be used to purchase an
immediate annuity.
3. Open Market Option: You have the option to purchase an
immediate annuity from Bajaj Allianz or from any other company.
If the immediate annuity is purchased from Bajaj Allianz, the
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amount available for purchased of annuity will be up to 2% At
present, they offer their immediate annuity plan for life, Swarna
Raksha, tied to this plan.
4. The minimum installment of annuity from Bajaj Allianz
Flexibility in Coverage
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increased or included in the policy subsequently. The Family Income
benefit, once selected, cannot be removed. The term cover can be
excluded at any subsequent policy anniversary. Once removed, it cannot
be included in the policy subsequently.
You have been working hard. You’re going to retire one day. How
do you see your retirement? Traveling? Golfing? Turning a hobby into a
second career or volunteering for a noble cause or simply spending more
time with your family. In retirement, how you choose to spend your time
is now upto you. Its also upto you to ensure your retirement income lasts
as long as you do. The decisions you make about your money today
should be flexible enough to accommodate your changing needs. Taking
charge ensures that your olden years are your golden years.
The plan works in two parts – the deferment period and the
annuity period. During the deferment period, the plan builds up the
funds required to purchase the immediate annuity. The deferment period
ends at the vesting date. You are free to choose your age of retirement
(vesting date) between 45 and 70 years.
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The benefits on Vesting Date (the date you choose to retire)
1. The Account Value as on the vesting date will be used to purchase
an immediate annuity. The immediate annuity will be purchased at
rates prevailing at that point of time.
2. Option to take lump sum: You have the option to take up to 1/3 r d
of the account value on the vesting date as a lump sum. This
amount would be tax free in your hand, as per current tax laws.
The balance amount will be used to purchase an immediate
annuity.
3. Open Market Option: You have the option to purchase an
immediate annuity from Bajaj Allianz or from any other company.
If the immediate annuity is purchased from Bajaj Allianz, the
amount available for purchase of the annuity will be market up by
2%.
4. The minimum installment of annuity from Bajaj Allianz is
Rs.1000/-. The annuity frequency may be changed to make each
installment more than the minimum requirement. If it still below
the minimum, the Account Value may be utilized to purchase an
immediate annuity from any other company in the a open market as
per your choice, or paid in lump sum, if permissible, subject to the
prevailing tax laws.
Annuity options:
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You will be able to choose from all immediate annuity products
offered by Bajaj Allianz Life insurance at the vesting date. The
annuity products currently available are:
Annuity for Life
Annuity for Life with 5, 10 or 15 years certain payout
Annuity for Life with Return of Capital You also has the open market
option to purchase immediate annuity.
The “Bajaj Allianz Unit Gain Life Pension” Plan with Bajaj
Allianz, you can take control of your future and ensure a retirement
you can look forward to. This plan has been designed to take care of
your retirement and insurance needs, thereby providing you with a
comprehensive solution for a lifetime.
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The plan works in two parts – the deferment period and the annuity
period. During the deferment period, the plan provides valuable life
cover and builds up the funds required to purchase the immediate
annuity. The deferment period ends at the vesting date. You are free
to choose your age of retirement (vesting date) between 45 and 70
years.
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per your choice, or paid in lumpsum, if permissible, subject to
prevailing tax laws.
Annuity Options
You will be able to choose from all annuity products offered by
Bajaj Allianz Life insurance at the vesting date. The annuity products
currently available are:
1. Annuity for Life
2. Annuity for Life with 5,10 or 15 years certain payout
3. Annuity for Life with Return of Capital You also has the open
market option to purchase immediate annuity .
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Swarna Raksha, a plan that ensures that your olden years olden
years are you golden years.
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Annuity Frequency Mode for your convenience they have provided
4 Annuity Frequency Modes that can be Yearly, Half yearly, quarterly
or monthly. The annuity will be payable one month/quarter/half
year/year after the date of purchase depending on the mode selected.
Female Lives The annuity rates for female lives shall be the
corresponding annuity rate for a 4 year younger male.
DISTRIBUTION CHANNEL
Bajaj Allianz General Insurance Company Limited is a joint
venture company between Bajaj Auto Limited, India’s leading insurance
and financial services group. Bajaj Allianz General
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risk cover, like Special PA cover for Amarnath Yatris, Housing loan
cover for people who may become unemployed, Film Insurance, Credit
Insurance cover for domestic as well as credit risk.
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The bank has a network of 25 branches in Mumbai ad its suburbs Thane,
Vashi and Panvel. Its area of operation covers entire Maharashtra.
Centurion Bank has inked a pact with Bajaj Allianz Life Insurance
Company to distribute the latter’s Bancassurance products through
branches in the country as part of plans to grow free-base income. In the
first phase the private sector bank would rollout Bancassurance products
at 46 branches and 16 extension counters from October one, its managing
director Shaliendra told reporters on Wednesday. The distribution set-up
would be expanded to 15 more branches and 6 extension counters in
second phase.
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financial year, up to December 2004), and 2.03 % amongst overall
players.
The company’s agents, bancassurance partners, corporate agents
and sales team, apart from its decentralized operations and flexible
products, have played a major role in its fast paced growth.
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79
With the authority to think as business managers and build their
branches as profit centers. They are encouraged to open satellite
branches. This gives branch managers the depth of decision-making and
speed required to react to market dynamics and consumer needs. The
management has also appointed full-time training personnel for each
branch.
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RESEARCH METHODOLOGY
81
METHODS
PRIMARY DATA
Date collection for this research was done primarily through filling
up of questionnaire. The sample for the research including different
individuals of various age groups and having different professions and
qualifications. Data was collected through the interview of individuals.
The questionnaire was containing questions regarding the personal
details of individuals and then some light questions regarding their
primary knowledge related to private insurance companies. Then there
were questions related to their interest in being the Insurance
Consultants of company.
SECONDARY DATA
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DATA ANALYSIS
SAMPLE SIZE:-
SAMPLE COMPOSITION
Youth
Executives
Serviceman
Business persons
RESEARCH DESIGN :
A research design provides the framework to be used as a guide in
collecting and analyzing data.
84
DATA ANALYSIS:-
Number 50
of 40
individua
30
ls
0-5
20
10
0
1k=1000
0k-5k 5k-10k 10k-15k 15k-20k 20 and
above
85
ANALYSIS FOR THE OVERALL INCOME GROUP
Servicemen–32% Businessmen-68%
32
Servicemen
Businessmen
68
Graduate
Non Graduate
95
86
Company Premium Income Market Share (%)
(cr)
HDFC Standard 352.14 3.11
Bajaj Allianz 643.59 5.68
ICICI Pru Life 819.75 7.24
Birla Sunlife 207.93 1.84
Tata AIG 189.24 1.67
9%
16%
9%
HDFC Standard
Bajaj Allianz
ICICI Pru Life
Birla Sunlife
29%
Tata AIG
37%
87
Q1 . Do you know about the Bajaj Allianz Life Insurance
companies?
Ans. The response of individuals are as :-
40
Yes
No
60
10
Yes
No
90
88
Q3. What is desired or expected monthly income?
Ans. The response of individuals are as follows :-
13 02 10
0-5000
5000-10000
10000-15000
15000-20000
20000 and above
75
89
Q4. How much time you can provide easily besides your job
hours?
Ans. The response of individuals are as follows:-
2
11
0-2 hrs.
42 2-4 hrs.
4-6 hrs.
Full time
45
3.5
Yes
No
96.5
90
Q6. Do you have your own mobile?
Ans. The response of people is as follows :
Yes
No
98
35
Yes
No
65
91
Q8. Would you like to come our company office and spend your
some time with our people in a seminar?
Ans. The response of people are as follows :-
45%
55%
Q9. Do you want that a sales manager should approach you for
agency?
Ans. The responses of people are as follows :
80
64.3
60
40
35.7
20
0
S1
Yes
No
92
Q10. How many people do you know in Delhi?
Ans. The responses of people are as follows: -
S1
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IMPORTANCE OF ADVISORS IN AN INSURANE
COMPANY :
SALES
MANAGER
They providing the company with the business and help their
respective Unit Manager to achieve their targets. So a unit Manager has
to be really careful while recruiting their Advisors. During the year of
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appointment, new Advisor usually account for a relatively small
proportion of the organization’s total production.
Any manager who attains satisfying results in these five areas will
enjoy
Satisfying sales results
95
Outstanding persistency of business
Superior policy owner service capabilities
An enviable reputation as a Bajaj Allianz agency builder
A momentum which comes from the synergistic benefit of
success
SEARCH
Where to look for
ATTRACT
How to attract to life Insurance
EVALUATE
How to evaluate
PRODUCTIVITY
RETENTION
96
COMPETITIVE ADVANTAGE
SWOT ANALYSIS:
Environmental Scan
Strength Threats
Weaknesses Opportunities
97
SWOT ANALYSIS
Strengths
Customer loyalty
Product Quality
Weaknesses
Insufficient product promotion
Opportunity
Allianz Bajaj adds complete suite of group insurance
products to its product Portfolio
Threat
Emergence of substitute products
Resistance to change
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FINDINGS
The overall scenario is that still people trust on LIC more than any
other insurance company. Sometimes when I asked someone to
become an agent of Bajaj Allianz they misunderstood with LIC.
For them still life insurance means LIC.
Generally people are having leisure time of around 2-3 hrs and
still want to utilize this time to earn extra money, if they can.
99
RECOMMENDATIONS
Try to make Brand Image, with the help of Bajaj Auto, more &
more as it has a strong brand image in Indian market.
Make use of internet banking for increasing sales, and also for
promotion.
100
BIBLIOGRAPHY
LIFE INSURERS
Websites
Life Insurance Corporation of
www.licindia.com
India
ICICI Prudential Life Insurance
www.iciciprulife.com
Co. Limited
Birla Sun-Life Insurance
www.birlasunlife.com
Company Limited
HDFC Standard Life Insurance
www.hdfcinsurance.com
Co. Limited
ING Vysya Life Insurance
www.ingvysayalife.com
Company Limited
MetLife Insurance Company
www.metlife.com
Limited
Om Kotak Mahindra Life
www.omkotakmahnidra.com
Insurance Co. Ltd.
TATA AIG Life Insurance
www.tata-aig.com
Company Limited
Bajaj Allianz General Insurance
www.bajajallianz.co.in
Co. Limited
Cholamandalam General
www.cholainsurance.com
Insurance Co. Ltd.
Insurance Regulatory
www.irdaindia.org
Development Authority
Life Insurance Corporation of
www.licindia.com
India
Royal Sundaram Alliance
www.royalsun.com
Insurance Co. Ltd.
Insurance Regulatory
www.irdaindia.org
Development Authority
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BOOKS WERE CONSIDERED
102
PERFORMA OF QUESTIONNAIRE
Yes No
Yes No
Q4 . How much time you can provide easily besides your job
hours?
0-2
4-6
6-8
Full Time
Yes No
Yes No
103
Q7 . Would you like to work in market/field and want to
interact with people?
Yes No
Q8. Would you like to come our company office and spend
your some time with our people in a seminar?
Yes No
Q9. Do you want that a sales manager should approach you for
agency?
Yes No
Yes No
104
105