COMPARATIVE STUDY OF

BAJAJ-ALLIANZ
WITH LIC & ICICI PRUDENTIAL

PROJECT REPORT
2011

SUBMITTED BY
PUNEET GUPTA

In the partial fulfillment of the requirement of

Master of Business Administration (2010-2012)

T.JOHN BUSINESS SCHOOL

BANGALORE
 ACKNOWLEDGEMENT

At the outset, I would like to express my deep sense of gratitude and sincere
thanks to Prof. S.K Nayak, Principal, T.JOHN Business School Bangalore,
for providing an opportunity to discover the corporate world, froma close
perspective.

Once again Prof. S.K Nayak, My Principal and internal guide for this project to
whom I am deeply grateful for his constant support and guidance without which
it would not have been possible for me to complete this project in time.

I take this opportunity to extend my sincere gratitude to Mr. Vishwamitra

Verma (Sales Manager), for giving me an opportunity to undertake internship
training and the project on the topic Organization Study.

I extend my sincere gratitude to Mr. Shyam Lal Pandey for his directions,
suggestions and information provided which were of utmost importance for the
successful completion of the project.

I convey my gratitude to all the staff members of Bajaj Allianz Life Insurance
Co. Ltd, for their kind co-operation and guidance through out my project.

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 INDEX
1 INTRODUCTION 5
 History of Insurance 7
 Types of Insurance 12
 Overview of Life Insurance Sector in India 18
 Indian Insurance Industry 21
2 IRDA 29
3 COMPANY PROFILES
 Bajaj Allianz 35
 Life Insurance Corporation of India 44
 ICICI Prudential 50
4 COMPARATIVE STUDY 59
 Market Share Analysis 60
 Comparison on the Basis of Attributes 61
5 RESEARCH METHODOLOGY 71
6 ANALYSIS 75
7 FINDINGS 82
8 CONCLUSION 84
9 RECOMMENDATIONS 85
10 BIBLIOGRAPHY 87

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 INTRODUCTION

Insurance is a social device where uncertain risks of individuals may be

combined in a group and thus made more certain - small periodic

contributions by the individuals provide a found out of which those who

suffer losses may be reimbursed. In addition to being a means to protect

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oneself, the insurance Industry is an efficient conduit for the saving of

people to be channeled towards economic growth. In India, the Insurance

Industry7 is more than 150 years old. Today, it is monopolized by two

PSU's in their respective fields of life and General Insurance. However,

with the successful passage IRDA Bill through both houses of parliament

in December 1999 the sector has been opened up to private players. This

will provided much. Needed impetus to the Industry and will improve the

quality of service and products and will also increase employment

opportunities. There are still some issues their need to be sorted out,

particularly with regard to the status of intermediaries as envisaged by

the Insurance Regulatory Authority.

Insurance is not necessarily an investment from which one expects to get

one's money back. Nor is it gambling. A gambler takes risks, while

insurance offers protection against risks that already exist. Insurance is a

way to share risk with others. Since ancient times, communities have

pooled some of their resources to help individuals who suffer loss.

"Insurance is a contract between two parties whereby one party called

insurer undertakes in exchange for a fixed sum called premiums, to pay

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the other party called insured a fixed amount of money on the happening

of a certain event."

“Insurance is a protection against financial loss arising on the happening

of an unexpected event. Insurance companies collect premiums to

provide for this protection. A loss is paid out of the premiums collected

from the insuring public and the Insurance Companies act as trustees to

the amount collected.”

 For example, in a Life Policy, by paying a premium to the Insurer, the

family of the insured person receives a fixed compensation on the death

of the insured. It is a system by which the losses suffered by a few are

spread over many, exposed to similar risks. Insurance is desired to

safeguard oneself and one's family against possible losses on account of

risks and perils. It provides financial compensation for the losses suffered

due to the happening of any unforeseen events. By taking life insurance a

person can have peace of mind and need not worry about the financial

consequences in case of any untimely death..

HISTORY OF INSURANCE

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Insurance has been around since ancient times. The Babylonians and

Phoenicians had ocean marine insurance to protect a merchant against

losses incurred when a ship did not reach its intended destination with its

load of goods or did not return with payment. This form of insurance,

called respondent, evolved because the goods on board often were used

as collateral for a loan. The lender charged the borrower interest on the

loan and levied an additional sum, the premium, to cover the cost of the

respondent contract. If the ship reached its destination and returned, the

merchant received payment for the goods and in turn paid the

moneylender. If the ship failed to return, the debt was cancelled. This

system was profitable to lenders because many respondent contracts were

sold, and debts were paid more often than cancelled.

In ancient Rome, associations had a form of insurance for their members.

Each member made regular payments to the association in return for

coverage of funeral expenses or for assistance to family members who

were injured or ill.

Insurance also existed in 17th-century England, which was then one of

the world's principal maritime powers. Those seeking marine insurance

would post a list of their cargo and voyages in a London coffee house

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owned by Edward Lloyd. Private investors would examine the list and

sign their name by the entries they were willing to guarantee for a fee.

These private investors were the first insurance underwriters, and the

coffee house became the world center of marine insurance. Today the

organization is known as Lloyds of London, and it brings together

individuals, most often working in syndicates, who write all types of

insurance.

Insurance in the modern form originated in the Mediterranean during 14th

century. The earliest references to insurance have been found in Babylonia,

the Greeks and the Romans. The use of insurance appeared in the account

of North Italian merchant banks who then dominated the international

trade in Europe at that time. Marine insurance is the oldest form of

insurance followed by life insurance and fire insurance. The patterns that

have been used in England followed in other countries also in these kinds

of insurance

The oldest and the earliest records of marine policy relates to a

Mediterranean voyage in 1347. In the year 1400, a book written by a

merchant of Florence, indicates premium rates charged for the shipments

by sea from London to Pisa.

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 The early developments of life insurance were closely linked with that of

marine insurance. The first insurers of life were the marine insurance

underwriters who started issuing life insurance policies on the life of

master and crew of the ship, and the merchants. The early insurance

contracts took the nature of policies for a short period only. The

underwriters issued annuities and pension for a fixed period or for life to

provide relief to widows on the death of their husbands. The first life

insurance policy was issued on June 18, 1583, on the life of William

Gibbons for a period of 12 months.

The history of life insurance in India dates back to 1818 when it was

conceived as a means to provide for English Widows. Interestingly in

those days a higher premium was charged for Indian lives than the non-

Indian lives as Indian lives were considered more risky for coverage. The

Bombay Mutual Life Insurance Society started its business in 1870. It

was the first company to charge same premium for both Indian and non-

Indian lives. The Oriental Assurance Company was established in 1880.

The first general insurance company- Tital Insurance Company Limited

was established in 1850. Till the end of nineteenth century insurance

business was almost entirely in the hands of overseas companies.

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Insurance regulation formally began in India with the passing of the Life

Insurance Companies Act of 1912 and the Provident Fund Act of 1912.

Several frauds during 20's and 30's sullied insurance business in India.

By 1938 there were 176 insurance companies. The first comprehensive

legislation was introduced with the Insurance Act of 1938 that provided

strict State Control over insurance business. The insurance business grew

at a faster pace after independence. Indian companies strengthened their

hold on this business but despite the growth that was witnessed,

insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life

insurers and provident societies under one nationalized monopoly

corporation and LIC was born. Nationalization was justified on the

grounds that it would create much needed funds for rapid

industrialization. This was in conformity with the Government's chosen

path of State- led planning and development.

The (non-life) insurance business, however, continued to thrive with the

private sector till 1972. Their operations were restricted to organized

trade and industry in large cities. The general insurance industry was

nationalized in 1972. With this, nearly 107 insurers were amalgamated

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and grouped into four companies- National Insurance Company Ltd., The

New India Assurance Company Ltd., The Oriental Insurance Company

Ltd. and United India Insurance Company Ltd. These were subsidiaries

of the General Insurance Corporation of India (GIC).

TYPES OF INSURANCE

GENERAL INSURANCE:

The basis for general insurance is "transfer of risk".

This means that the insurer agrees to compensate you if you suffer a loss.

Without the insurance you would have to pay for that loss yourself.

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Obviously this contract is made on the basis that the insurance company

calculates the risk that you, or the total number of people buying

insurance, will cost more in payouts than what is received in premiums.

This is determined by the use of statistics and the information you

disclose on your application for insurance.

This includes:

HOME CONTENTS: It can either be "defined event" i.e. the policy

covers loss or damage from a list of "defined" events, e.g. storm or fire;

or "accidental loss or damage" i.e. all accidental loss with some

exclusions.

MOTOR VEHICLE: It can either be "comprehensive" i.e. it covers any

damage to your car as well as damage to the other car or another person's

property; "third party property" i.e. it covers damage caused by your car

to another person's property. This type of insurance will not cover you for

the cost of repairs to your own car; "third party fire and theft i.e. it covers

damage partly for damage caused by your car to another person's

property, and restricted cover for damage to your car cause by theft or

fire.

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INCOME PROTECTION: With this type of insurance the insurer

agrees to pay you a specified amount of money, usually in monthly

payments, in the event that you become disabled and unable to work.

Along the same lines you can purchase "trauma insurance" to cover a

medical trauma such as a heart attack.         

Also in the modern day world a number of utility specific insurance

policies are being launched by the various players in the insurance

market in an effort to stay one step ahead of their competitors. Hence to

make the Definition of General Insurance inclusive we can say that all

the policies which do not fall under Life Insurance category fall under the

General Insurance category.

LIFE INSURANCE:
Life insurance is insurance that will protect your family and/or specified

dependents in the event of the policy holder’s death. In general, it is an

essential component in planning for the future.

There are many options with coverage, depending on your situation. And

there are three main categories of life insurance: term life, universal life,

and whole life insurance.

Term life is the simplest and least expensive type of policy. It's pure

13
insurance with no cash value account. A term life policy has only one

function: to pay a specific lump sum to whomever you've designated,

upon a specific event, your death.

Whole life insurance provides permanent protection for your dependents

while building a cash value account. With this type of insurance, the

insurance company manages the policies various accounts.

 Universal life insurance provides permanent protection for your

dependents and is more flexible than whole or variable life.

KINDS OF LIFE INSURANCE PRODUCTS

TERM LIFE INSURANCE:

Term life insurance is the easiest form of life insurance. It simply

provides insurance protection for a period of time and only pays a benefit

14
during that period. Since term life insurance has no cash value, the

amount of protection in this policy is equal to its death benefit. There are

three basic forms of term life insurance: level term, decreasing term, and

increasing term.

LEVEL TERM LIFE INSURANCE:

Level term life insurance provides an equal amount of protection for a

period of time. For example, an Rs 150,000 ten-year level term life

insurance policy pays out Rs 150,000 of coverage until the ten years are

over. At the end of the ten years this level term life insurance policy

would expire, and would pay out no benefits.

DECREASING TERM LIFE INSURANCE:

Decreasing term life insurance is a policy where the benefit amount

decreases gradually over the term of the protection. A 30 year Rs 200,000

decreasing term policy, for example, wound pays an Rs 200,000 benefit

at the beginning of the policy. This amount would gradually decline over

the 30-year term and would pay out Rs 0 at the end of the term.

INCREASING TERM LIFE INSURANCE:

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Increasing term life insurance policies provide a payout benefit that

gradually increases at periodic intervals. These increase amounts are

usually a percentage of the original amount.. When changing the policy,

your premium term life insurance rates are based on either your current

age, or the age when you originally took out the policy. Depending on

how your policy is set up, you could be paying much lower interest rates

that you would have normally qualified for.

WHOLE LIFE INSURANCE:

Whole life insurance is a popular life insurance plan because it provides

permanent protection, provided premiums are paid. The advantages of

whole life insurance plans are cash values, maturity at age 100, and living

benefits. Also the policy's premiums and benefits remain constant

throughout the policy's life. Unlike term life insurance, which provides

only death protection, whole life insurance combines insurance

protection with savings benefit.  The cash value of this type of insurance

builds over the life of the policy. This is because whole life insurance

plans are given a certain guaranteed interest rate. Another benefit of

whole life insurance policies is that they are designed to mature at the age

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of 100. The premium rate for a whole life insurance is based on the

assumption that the insured would be paying premiums until the age of

100. This means that at age 100, the cash value of the policy has come to

the point when it equals the face amount of the policy. At this point the

policy has completely matured, no more premiums are owned, and the

policy is completely paid out to the policy owner.

UNIVERSAL LIFE INSURANCE:

Universal life insurance is a variation of whole and term life insurance,

with added flexibility and transparency. This added flexibility allows the

policy owner to determine the amount and frequency of premium

payments and to adjust the benefit payout amount up or down to reflect

changes in needs... Universal life insurance policies remain in force as

long as there enough cash value to pay the monthly mortality expenses,

regardless of whether or not the policy owner pays the premium.

OVERVIEW OF THE LIFE INSURANCE SECTOR IN

INDIA

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With largest number of life insurance policies in force in the world,

Insurance happens to be a mega opportunity in India. It’s a business

growing at the rate of 15-20 per cent annually and presently is of the

order of Rs 450 billion. Together with banking services, it adds about 7

per cent to the country’s GDP.  Gross premium collection is nearly 2 per

cent of GDP and funds available with LIC for investments are 8 per cent

of GDP.Yet, nearly 80 per cent of Indian population is without life

insurance cover, health insurance and non-life insurance continue to be

below international standards. And this part of the population is also

subject to weak social security and pension systems with hardly any old

age income security. This is an indicator that growth potential for the

insurance sector is immense. A well-developed and evolved insurance

sector is needed for economic development as it provides long term funds

for infrastructure development and at the same time strengthens the risk

taking ability. It is estimated that over the next ten years India would

require investments of the order of one trillion US dollars. The Insurance

sector, to some extent, can enable investments in infrastructure

development to sustain economic growth of the country. With a large

capital outlay and long gestation periods, infrastructure projects are

fraught with a multitude of risks throughout the development,

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construction and operation stages. These include risks associated with

project implementation, including geological risks, maintenance,

commercial and political risks. Without covering these risks the financial

institutions are not willing to commit funds to the sector, especially

because the financing of most private projects is on a limited or non-

recourse basis. Insurance companies not only provide risk cover to

infrastructure projects, they also contribute long-term funds. In fact,

insurance companies are an ideal source of long term debt and equity for

infrastructure projects. With long term liability, they get a good asset-

liability match by investing their funds in such projects. IRDA

regulations require insurance companies to invest not less than 15 percent

of their funds in infrastructure and social sectors. International Insurance

companies also invest their funds in such projects. Insurance is a federal

subject in India. There are two legislations that govern the sector- The

Insurance Act- 1938 and the IRDA Act- 1999. The Government of India

liberalized the insurance sector in March 2000with the passage of the

Insurance Regulatory and Development Authority (IRDA) Bill, lifting all

entry restrictions for private players and allowing foreign players to enter

the market with some limits on direct foreign ownership. Under the

current guidelines, there is a 26 percent equity cap for foreign partners in

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an insurance company. There is a proposal to increase this limit to 49

percent. Premium rates of most general Committee. The opening up of

the sector is likely to lead to greater spread and deepening of insurance in

India and this may also include restructuring and revitalizing of the

public sector companies. A host of private insurance companies operating

in both life and non-life segments have started selling their insurance

policies since 2001.

INDIAN INSURANCE INDUSTRY

Insurance industry, as on 1.4.2000, comprised mainly two players:

  Life Insurers:

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  Life Insurance Corporation of India (LIC)

 General Insurers:

 General Insurance Corporation of India (GIC)  (with effect from

Dec'2000, a National Reinsurer)

GIC had four subsidiary companies, namely (with effect from Dec'2000,

these subsidiaries have been de-linked from the parent company and

made as independent insurance companies.

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited,

3. National Insurance Company Limited

4. United India Insurance Company Limited.

Yr: 2000-2001: (From 2nd April '2000 to 31st December'2001)

Insurance Industry in the year 2000-2001 had 16 new entrants, namely:

Life Insurers:

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S.No. Reg. Date of Name of the Company

Number Reg.

1 101 23.10.2000 HDFC Standard Life Insurance

Company Ltd.
2 104 15.11.2000 Max New York Life Insurance Co.

Ltd.
3 105 24.11.2000 ICICI Prudential Life Insurance

Company Ltd.
4 107 10.01.2001 Kotak Mahindra Old Mutual Life

Insurance Limited
5 109 31.01.2001 Birla Sun Life Insurance Company

Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company

Ltd.
7 111 30.03.2001 SBI Life Insurance Company

Limited.
8 114 02.08.2001 ING Vysya Life Insurance

Company Private Limited

9 116 03.08.2001 Bajaj Allianz Life Insurance

Company Limited
10 117 06.08.2001 Metlife India Insurance Company

Pvt. Ltd.

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General Insurers   :

S.No. Registratio Date of Name of the

n Number Registratio Company

n
1 102 23.10.2000 Royal Sundaram

Alliance Insurance

Company Limited
2 103 23.10.2000 Reliance General

Insurance Company

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 Limited.

3 106 04.12.2000 IFFCO Tokio

General Insurance

Co. Ltd
4 108 22.01.2001 TATA AIG General

Insurance Company

Ltd.
5 113 02.05.2001 Bajaj Allianz

General Insurance

Company Limited
6 115 03.08.2001 ICICI Lombard

General Insurance

Company Limited.

Yr: 2001-2002: (From 1st Jan 2001 to Dec. 2002)

Insurance Industry in this year, so far  has 5new entrants; namely

Life Insurers:

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 S.N Reg. Date of Name of the Company

o. Number Reg.
1 121 03.01.200 AMP Sanmar Life Insurance

2 Company Limited.

2 122 14.05.200 Aviva Life Insurance Co. India

2 Pvt. Ltd.

General Insurers   :

S.No. Registratio Date of Name of the

n Number Registratio Company

n
1 123 15.07.2002 Cholamandalam

General Insurance

Company Ltd.
2. 124 27.08.2002 Export Credit

Guarantee

Corporation Ltd.
3. 125 27.08.2002 HDFC-Chubb

General Insurance

Co. Ltd.

25
Yr: 2003-2004: (From 1st Jan 2003 till Date)

Insurance Industry in this year, so far  has 1new entrants; namely

Life Insurers:

S.No. Registration Name of the Company

Number
1 127 Sahara India Insurance

Company Ltd.

Yr: 2004-2005:

Insurance Industry in this year, so far has 1new entrants; namely

Life Insurers:

S.No. Registration Date of Reg. Name of the Company

Number
1 128 17.11.2005 Shriram Life Insurance

Company Ltd.

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INSURANCE BUSINEES:

Insurance business is divided into four classes:

1) Life Insurance

2) Fire Insurance

3) Marine Insurance and

4) Miscellaneous Insurance.

Life Insurers transact life insurance business; General Insurers transact

the rest.

No composites are permitted as per law.

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 THE INSURANCE REGULATORY AND

DEVELOPMENT AUTHORITY (IRDA)

A faster development and wider impact of the insurance industry were to

be achieved through a process of insurance reforms resulting in the

liberalization of the market and in the passage of the Insurance

Regulatory and Development Authority (IRDA) Act, 1999. The reforms

procedures recognized simultaneously the need for development of the

sector in addition to the traditional concept of regulation and thus

conferred on the Authority the obligation to develop the sector as well.

OBJECTIVES

 To protect the interest of and secure fair treatment to

policyholders:

 To bring about speedy and orderly growth of the insurance

industry, for the benefit of the common man, and to provide long

terms funds for accelerating growth of the economy;

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  To set, promote, monitor and enforce high standards of integrity,

financial soundness, fair dealing and competence of those it

regulates:

 To ensure that insurance customers receive precise, clear and

correct information about products and services and make them

aware of their responsibilities and duties in this regard;

 To ensure speedy settlement of genuine claims, to prevent

insurance frauds and other malpractices and put in place effective

grievances redressed machinery;

 To promote fairness, transparency and orderly conduct in financial

markets dealing with insurance and build a reliable management

information system to enforce high standards of financial

soundness amongst market players.

IRDA POWERES AND FUNCTIONS

Subject to the provisions of IRDA Act (1990), IRDA will: regulate,

promote and ensure orderly growth of the insurance business and re-

insurance business, which will include the following main functions

(excerpts):

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 Issue to the applicant a certificate of registration, renew, modify,

withdraw, suspend or cancel such registration;

 Protection of the interest of the policy holders in matters

concerning assigning off policy, nomination by policy holders,

insurable interest, settlement of insurance claim, surrender value of

policy and others terms and conditions of contracts of insurance;

 Specifying requisite qualifications, code of conduct and practical

training for intermediary or insurance intermediaries and agents.

 Promoting and regulation professional organizations connected

with the insurance and re-insurance business;

 Levying fees and other charges for carrying out the purposes of the

Act;

 Calling for information from, undertaking inspection of,

conducting enquiries and investigations including audit of the

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 insurers, intermediaries, insurance intermediaries and other

organizations connected with the insurance business;

 Specifying the percentage of life insurance and general insurance

business to be undertaken by the insurer in the rural or social

sector.

IRDA has so far granted registration to 12 private life insurance

companies and 9 general insurance companies. If the existing public

sector insurance companies are included, there are currently 13 insurance

companies in the life side and 13 companies operating in general

insurance business. General Insurance Corporation has been approved as

the "Indian rein surer" for underwriting only reinsurance business.

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 PROTECTION OF THE INTEREST OF POLICY HOLDERS

IRDA has the responsibility of protecting the interest of insurance

policyholders. Towards achieving this objective, the Authority has taken

the following steps:

 IRDA has notified Protection of Policyholders Interest Regulations

2001 to provide for: policy proposal documents in easily

understandable language; claims procedure in both life and non-

life; setting up of grievance redress machinery; speedy settlement

of claims; and policyholders' servicing. The Regulation also

provides for payment of interest by insurers for the delay in

settlement of claim.

 The insurers are required to maintain solvency margins so that they

are in a position to meet their obligations towards policyholders

with regard to payment of claims.

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 It is obligatory on the part of the insurance companies to disclose

clearly the benefits, terms and conditions under the policy. The

advertisements issued by the insurers should not mislead the

insuring public.

 All insurers are required to set up proper grievance redress

machinery in their head office and at their other offices.

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34
 BAJAJ-ALLIANZ: COMPANY PROFILE

Bajaj Allianz Life Insurance Co. Ltd. is a union between Allianz AG,

the world’s leading insurer and Bajaj Auto, one of India’s most

respected names. Allianz AG is a leading insurance conglomerate

globally and largest asset manager in the world, managing assets worth

over 989 billion Euros (Rs. 49, 84,560 crores). Allianz AG has more than

110 years of financial experience in over 70 countries and Bajaj Auto,

trusted over 55 years in Indian market, are committed to offer financial

solutions that provide all the security the customers need by offering

various products.

Bajaj Allianz General Insurance Co. Ltd. is a joint venture between

Bajaj Auto 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

35
2, 2001 to conduct General Insurance business (including Health

Insurance business) in India. The Company is authorized and has paid up

capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% is

held by Allianz AG, Germany.

In its first year of operations, the company has acquired No. 1 status

among the private non-life insurers. As on March 31, 2003.Bajaj Allianz

General Insurance maintained its leadership position by garnering a

premium income of Rs.300 Crores. Bajaj Allianz also became one of the

few companies to make a profit in its first full year of operations. Bajaj

Allianz made a profit after tax of Rs.9.6 crores.

Bajaj Allianz today has a network in more than 485 cities spread across

the length and breadth of the country. From Surat to Siliguri and Jammu

to Thiruvananthapuram, all the offices are interconnected with the Head

Office at Pune.

In the first half of the financial year, 2004-05, Bajaj Allianz garnered a

premium income of Rs. 405 crores, achieving a growth of 84% and

registered a 52% growth in net profits of Rs.20 Crores over the last year

for the same period. In the financial year 2003-04, the premium earned

was Rs.480 Crores, and the profit zoomed by 125% to Rs. 21.6 Crores

36
VISION

 • To be the first choice insurer for customers.

 • To be the preferred employer for staff in the insurance industry.

 • To be the number one insurer for creating shareholder value.

MISSION

As a responsible, customer focused market leader, Bajaj Allianz is

determined to understand the insurance needs of the consumers and

translate it into affordable products that deliver value for money.

ALLIANZ GROUP

Allianz Group is one of the world's leading insurers and financial

services providers. 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,

37
  Life and Health Insurance,

 Asset Management and Banking.

Easy access and reach across the country

Bajaj Allianz Life has offices now in over 485 towns across the country

enabling customer to buy our products and get quality efficient service

almost anywhere across the country.

ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE

 Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 cr. 

 3rd largest Assets Under Management (AUM) & largest amongst.

Insurance cos. - AUM of Rs.51, 96,959 cr.

 12th largest corporation in the world.

 49.8 % of global business from Life Insurance.

 Established in 1890, 110 yrs of Insurance expertise.

 70 countries; 173,750 employees worldwide.

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 BAJAJ AUTO

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. 

AN STRONG INDIAN BRAND- HAMARA BAJAJ

 One of the largest 2 & 3 wheeler manufacturers 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 companies in

India.

 Rs. 4,744 cr. turnover & profits of 538 cr. in 2002-03.

 It has joined hands with Allianz to provide Indian consumers with

a distinct option in terms of life insurance products.

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  As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto

has the following to offer – 

 Financial strength and stability to support the Insurance

Business. 

 A strong brand-equity.

 A good market reputation as a world class organization.

 An extensive distribution network.

 Adequate experience of running a large organization.

Bajaj Allianz Life Insurance Company has developed insurance

solutions that cater to every segment and age-income profiles. For

companies it provides comprehensive 'Employee Benefit Solutions'

(Group Term Life, EDLI, Gratuity, Superannuation, Key man Insurance

and more); for the individual Invest Gain (a unique life insurance plan

where sustenance of income is combined in the same plan that also pays

a lump sum), Cash Gain (Money Back), Child Gain (Children's plan),

Risk Care (Pure Term), Lifetime Care (whole life), Term Care (term with

return of premium), Swarna Vishranti (Retirement Plan), Protector

(Mortgage term insurance plan), Unit Gain (Unit Linked Plan), Unit Gain

40
Single Premium, Unit Gain Plus, Unit Gain Plus SP, Lifelong Gain Plan,

Unit Gain Single Pension & Unit Gain Easy Pension Plans.

SUPERIOR TECHNOLOGY

In order to ensure speedy and accurate processing of your needs, it has

established world class technology, with renowned insurance software,

which networks all its offices and intermediaries-

 Using the Web, policies can be issued from any office across the

country for retail products.

 Unique, user friendly software is developed to make the process of

issue of policies and claims settlement simpler (e.g. online

insurance of marine policy certificate).

UNIQUE FORMS OF RISK COVER

 Special PA cover for Amaranth pilgrims.

 Film insurance.

 Event management cover.

 Sports & Entertainment Insurance Package.

41
RISK AND MANAGEMENT

Its methodology is tried, tested and proven the world over and involves:

 Risk identification: Inspections.

 Risk analysis: Portfolio review and gap analysis.

 Risk retention.

 Risk Transfer: To an insurer as well as re insurer (as required).

 Creation of need based products.

 Ongoing dialogue and proclivity.

42
43
 COMPANY PROFILE

LIFE INSURANCE CORPORATION OF INDIA

(LIC)

Life Insurance Corporation of India (LIC) was formed in September,

1956 by an Act of Parliament, viz., Life Insurance Corporation Act,

1956, with capital contribution from the Government of India. The then

Finance Minister, Shri C.D. Deshmukh, while piloting the bill, outlined

the objectives of LIC thus: to conduct the business with the utmost

economy, an spirit of trusteeship; to charge premium no higher than

warranted by strict actuarial considerations; to invest the funds for

obtaining maximum yield for the' policy holders consistent with safety of

the capital; to render prompt and efficient service to policy holders,

thereby making insurance widely popular. Since nationalization, LIC has

built up a vast network of 2,048 branches, 100 divisions and 7 zonal

offices spread over the country. The Life Insurance Corporation of India

44
also' transacts business abroad and has offices in Fiji, Mauritius and

United Kingdom. LIC is associated with joint ventures abroad in the field

of insurance, namely, Ken-India ,Assurance Company Limited, Nairobi;

United Oriental Assurance Company Limited, Kuala Lumpur and Life

Insurance Corporation (International) E.C. Bahrain. The Corporation has

registered a joint venture company in 26 th December, 2000 in

Kathmandu, Nepal by the name of Life Insurance Corporation (Nepal)

Limited in collaboration with Vishal Group Limited, a local industrial

Group. An off-shore company L.I.C. (Mauritius) Off-shore Limited has

also been set up in 2001 to tap the African insurance market.

GENERAL INSURANCE

General insurance business in the country was nationalized with effect

from 1st January, 1973 by the General Insurance Business

(Nationalization) Act, 1972. More than 100 non-life insurance companies

including branches of foreign companies operating within viz., the

National Insurance Company Ltd., the New India Assurance Company

Ltd., the Oriental Insurance Company Ltd., and the United India

Insurance Company Ltd. with head offices at Calcutta, Bombay, New

45
Delhi and Madras, respectively. General Insurance Corporation (GIC)

which was the holding company of the four public sector general

insurance companies has since been de linked from the later and has been

approved as the "Indian Re-insurer" since 3rd November 2000. The share

capital of GIC and that of the four companies are held by the

Government of India. All the five entities are Government companies

registered under the Companies Act. The general insurance business has

grown in spread and volume after nationalization. The four companies

have 2699 branch offices, 1360 divisional offices and 92 regional offices

spread all over the country. GIC and its subsidiaries have representation

either directly through branches or agencies in 16 countries and through

associate or locally incorporated subsidiary companies in 14 other

countries. A wholly- owned subsidiary company of GIC, i.e. Indian

International Pvt. Ltd. is operating in Singapore and there is a joint

venture company, viz. Kenindia Assurance Ltd. in Kenya. A new wholly

owned subsidiary called New India International Ltd., UK has also been

registered.

46
 OBJECTIVES OF LIC

Spread Life Insurance widely and in particular to the rural areas and to

the socially and economically backward classes with a view to reaching

all insurable persons in the country and providing them adequate

financial cover against death at a reasonable cost.

 Maximize mobilization of people's savings by making insurance-

linked savings adequately attractive.

 Bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust, without losing sight of

the interest of the community as a whole; the funds to be deployed to

the best advantage of the investors as well as the community as a

whole, keeping in view national priorities and obligations of

attractive return.

 Conduct business with utmost economy and with the full realization

that the moneys belong to the policyholders.

 Act as trustees of the insured public in their individual and collective

capacities.

47
 Meet the various life insurance needs of the community that would

arise in the changing social and economic environment.

 Involve all people working in the corporation to the' best of their

capability in furthering the interests of the insured public by

providing efficient service with courtesy.

 Promote amongst all agents and employees of the Corporation a

sense of participation, pride and job satisfaction through discharge of

their duties with dedication towards achievement of Corporate

Objective.

48
49
 COMPANY PROFILE

ICICI PRUDENTIAL LIFE INSURANCE

ICICI Prudential Life Insurance Company is a joint venture between

ICICI Bank and Prudential plc. The stake of the companies in the joint

venture is 76% and 24% respectively, which was incorporated on July

20, 2000. It was one of the first players to commence operations when

the insurance industry was opened to the private sector in 2000. Since

inception the company has written over 2 million policies. The company

has over network of 70,000 advisors, 9 banc assurance as well as over

190 corporate agent and broker tie- ups. It is also the only life insurer in

India to get IFS AAA (ind) rating, by Fitch Ratings. ICICI offers a wide

range of flexible products that meet the needs of Indian customers at

every step in life.

The authorized capital of the company is Rs.2300 Million and the paid up

capital is Rs. 1500 Million. The Company was granted Certificate of

50
Registration for carrying out Life Insurance business, by the Insurance

Regulatory and Development Authority on November 24, 2000. It

commenced commercial operations on December 19, 2000, becoming

one of the first few private sector players to enter the liberalized area. 

For the financial year 2005-2006 which ended on March 31,

2006, the company registered Rs. 24.12 billion of weighted new

business premium and wrote 837,963 policies. The sum assured in

force stands at Rs 458.88 billion.

ICICI and Prudential to formed Prudential ICICI Asset

Management Company in 1933, which has today emerged as one of

the leading mutual funds in India. After the success of this joint

venture, the two companies joined hands once again in 2000 to

form ICICI Prudential Life Insurance Company, with a commitment

to provide leading edge life insurance solutions.

51
 ICICI BANK

ICICI Bank is India's second-largest bank with total assets of

about Rs. 2,513.89 billion (US$ 56.3 billion) on March 31, 2006

and profit after tax of Rs. 25.40 billion (US$ 569 million) for the

year ended March 31, 2006. ICICI Bank has a network of about 614

branches and extension counters and over 2,200 ATMs. ICICI Bank

offers a wide range of banking products and financial services to

corporate and retail customers through a variety of delivery

channels and through its specialized subsidiaries and affiliates in

the areas of investment banking, life and non-life insurance,

venture capital and asset management. ICICI Bank set up its

international banking group in fiscal year 2002 to cater to the cross

border needs of clients and leverage on its domestic banking

strengths to offer products internationally. ICICI Bank currently

has subsidiaries in the United Kingdom, Russia and Canada,

branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai

International Finance Centre and representative offices in the

United States, United Arab Emirates, China, South Africa and

52
Bangladesh. Its UK subsidiary has established a branch in Belgium.

bank in India in terms of market.

ICICI Bank's equity shares are listed in India on the Bombay Stock

Exchange and the National Stock Exchange of India Limited and its

American Depositary Receipts (ADRs) are listed on the New York

Stock Exchange (NYSE).

ICICI Bank has formulated a Code of Business Conduct and Ethics

for its directors and employees.

On June 5, 2006, ICICI Bank, with free float market capitalization

of about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst

all the companies listed on the Indian stock exchanges.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an

Indian Financial Institution, and was its wholly-owned subsidiary.

ICICI's shareholding in ICICI Bank was reduced to 46% through a

public offering of shares in India in fiscal 1998, an equity offering

in the form of ADRs listed on the NYSE in fiscal 2000, ICICI

Bank's acquisition of Bank of Madura Limited in an all-stock

amalgamation in fiscal 2001, and secondary market sales by ICICI

53
to institutional investors in fiscal 2001 and fiscal 2002. ICICI was

formed in 1955 at the initiative of the World Bank, the Government

of India and representatives of Indian industry. The principal

objective was to create a development financial institution for

providing medium-term and long-term project financing to Indian

businesses. In the 1990s, ICICI transformed its business from a

development financial institution offering only project finance to a

diversified financial services group offering a wide variety of

products and services, both directly and through a number of

subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become

the first Indian company and the first bank or financial institution

from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in

the context of the emerging competitive scenario in the Indian

banking industry, and the move towards universal banking, the

managements of ICICI and ICICI Bank formed the view that the

merger of ICICI with ICICI Bank would be the optimal strategic

alternative for both entities, and would create the optimal legal

structure for the ICICI group's universal banking strategy. The

merger would enhance value for ICICI shareholders through the

54
merged entity's access to low-cost deposits, greater opportunities

for earning fee-based income and the ability to participate in the

payments system and provide transaction-banking services. The

merger would enhance value for ICICI Bank shareholders through a

large capital base and scale of operations, seamless access to

ICICI's strong corporate relationships built up over five decades,

entry into new business segments, higher market share in various

business segments, particularly fee-based services, and access to

the vast talent pool of ICICI and its subsidiaries. In October 2001,

the Boards of Directors of ICICI and ICICI Bank approved the

merger of ICICI and two of its wholly-owned retail finance

subsidiaries, ICICI Personal Financial Services Limited and ICICI

Capital Services Limited, with ICICI Bank. The merger was

approved by shareholders of ICICI and ICICI Bank in January

2002, by the High Court of Gujarat at Ahmedabad in March 2002,

and by the High Court of Judicature at Mumbai and the Reserve

Bank of India in April 2002. Consequent to the merger, the ICICI

group's financing and banking operations, both wholesale and

retail, have been integrated in a single entity.

55
 PRUDENTIAL PLC

Established as the Prudential Mutual Assurance and Loan Association in

1848, today it is an international financial services company with a

product range which extends from personal banking insurance, pensions

and retail investments, to institutional fund management and property

investments.

Its portfolio of well-known and respected brands, including Prudential,

M&G Investments, Jackson National Life, Prudential Corporation Asia

and Egg, has attracted more than 19 million customers (and policy

holders and unit holders) worldwide.  Across the Group it has £234

billion of funds under management (at 31 December 2005).

Prudential has significant operations in the UK, the US and Asia,

contributing to a diversity of earnings. Worldwide it employs more than

20,000 people and our shareholders number 60,942 (at 31 December

2005). It is listed on the London and New York stock exchanges.

56
In Asia, Prudential Corporation Asia has 23 operations in 12 countries.

These include strategic partnerships with some of the region’s leading

players, including CITIC Group (for life business in China), ICICI Bank

(for life and mutual fund business in India) and Bank of China

International (for Mandatory Provident Fund business in Hong Kong).

Prudential Corporation Asia offers a wide range of savings, protection

and investment products tailored to the needs of our customers in each of

the 12 markets in which it operates. In addition to its life insurance

operations Prudential has asset management businesses in India, Hong

Kong, Japan, Taiwan, Malaysia, Singapore, Korea, Vietnam and China

managing over £26 billion (as of 30 June 2005).

57
58
 MARKET SHARE ANALYSIS

PARTICULARS 2004-05 2005-06 2006-07

LIC 87.7 71.04 71.44

PRIVATE PLAYERS 12.3 28.96 28.56

59
 growth in market share of private
players

100
87.7
90
80 71.04
m a r k e t s h a r e (%)

70
60
LIC
50
Pvt. Players
40
28.96
30
20 12.3
10
0
2004-05 2005-06
years

60
 INNOVATIVENESS

COMPAN ICICI
LIC BAJAJ ALLIANZ
Y PRUDENTIAL

SCORE 128 106.9 122.1

61
 RANK 1 3 2

122.1
ICICI PRUDENTIAL

2
106.9
BAJAJ ALLIANZ

3
128

LIC

1
0 20 40 60 80 100 120 140

SCORE RANK

QUALITY & DEPTH OF MANAGEMENT

62
COMPAN ICICI
LIC BAJAJ ALLIANZ
Y PRUDENTIAL

SCORE 163.9 96 95.1

RANK 1 2 3

63
 95.1
ICICI PRUDENTIAL

3
BAJAJ ALLIANZ

96

2
163.9
LIC

1
0 20 40 60 80 100 120 140 160 180

SCORE RANK

FINANCIAL PERFORMANCE

COMPAN ICICI
LIC BAJAJ ALLIANZ
Y PRUDENTIAL

SCORE 158 115.8 78.6

RANK 1 2 3

64
 78.6
ICICI PRUDENTIAL

3
115.8
BAJAJ ALLIANZ

2
158
LIC

1
0 20 40 60 80 100 120 140 160 180

SCORE RANK

ETHICS & TRANSPARENCY

COMPAN BAJAJ ICICI

LIC
Y ALLIANZ PRUDENTIAL
SCORE 158 115.8 78.6

RANK 1 2 3

65
 78.6
ICICI PRUDENTIAL

3
115.8
BAJAJ ALLIANZ

2
158
LIC

1
0 20 40 60 80 100 120 140 160 180

SCORE RANK

QUALITY OF PRODUCTS & SERVICES

COMPAN ICICI
LIC BAJAJ ALLIANZ
Y PRUDENTIAL

SCORE 163.1 111 114.1

RANK 1 3 2

66
 114.1
ICICI PRUDENTIAL

2
111
BAJAJ ALLIANZ

3
163.1
LIC

1
0 20 40 60 80 100 120 140 160 180

SCORE RANK

PEOPLE PRACTICES/
TALENT MANAGEMENT

COMPAN BAJAJ ICICI

LIC
Y ALLIANZ PRUDENTIAL

SCORE 139 102 114.1

RANK 1 3 2

67
 114.1
ICICI PRUDENTIAL

2
102
BAJAJ ALLIANZ

3
139
LIC

1
0 20 40 60 80 100 120 140 160

SCORE RANK

GLOBAL COMPETITIVENESS

COMPAN ICICI
LIC BAJAJ ALLIANZ
Y PRUDENTIAL

SCORE 124 94.1 71

RANK 1 2 3

68
ICICI PRUDENTIAL

71

3
94.1
BAJAJ ALLIANZ

2
124
LIC

1
0 20 40 60 80 100 120 140

SCORE RANK

TOP 5 INSURANCE COMPANIES

POINTS SURVEY-2006
1 Birla Sun Life

2 ICICI Lom General

3 ICICI Pru Life

4 Bajaj Allianz General

5 LIC

69
 LIC
Bajaj Allianz
POINTS

ICICI Pru Life

ICICI Lom General

Birla Sun Life

0 1 2 3 4 5 6

Series1 Series2 Series3 Series4 Series5 Series6

TOP 5 INSURANCE COMPANIES- 2006

70
POINTS SURVEY-2005
1 SBI Life

2 Birla Sun Life

3 ICICI Pru Life

4 HDFC Standard Life

5 LIC

LIC
HDFCStandardLife
POINTS
ICICI PruLife

Birla Sun Life

SBI Life

0 1 2 3 4 5 6

Series1 Series2 Series3 Series4 Series5 Series6

TOP 5 INSURANCE COMPANIES- 2005

RESEARCH OBJECTIVE
The report identifies the position of Bajaj Allianz in the current insurance

market as a fast emerging insurance company. It gives the detailed

background of the company and its whereabouts before the two insurance

tycoons namely- LIC and ICICI Prudential. It also highlights the potential of

the company to penetrate and sustain in the insurance sector leaving many big

players far behind.

RESEARCH DESIGN

The research design for the comparative study is of exploratory type and the

focus is given to discover the possible measures, by detailed analysis, for the

company which would be helpful up to some extent to retain a good position

in the competitive market. The research design is not formal and rigid one as

the focus depends upon the availability of new ideas and relationship among

variables.

DATA COLLECTION METHOD

For the purpose of study both primary as well as secondary data have been

used. The secondary data have been collected from various magazines,

newspapers, company annual reports, and websites. For the collection of

primary data structured and undisguised questionnaire has been used.

For the purpose of knowing whereabouts of the company in the present

insurance market secondary data has disclosed many important information

as- market share of the company and its potential before the insurance market

leaders on the basis of various attributes

Primary data have been helpful to explore the opinion of general public and

their future insurance plans with the company. On the basis of information

extracted from the primary data various measures are found which would be

helpful to it in making new strategies in near future.

SAMPLING
As per the sampling procedure is concerned, the finite universe is taken into

consideration. The sampling units include- businessmen, government

employees, and private employees bounded to Uttar Pradesh(Lucknow) only.

The sampling is based upon probability sampling methods. The reason is- it is

the only sampling method that provides essentially unbiased estimates having

measurable precision. The sample size was 60.

ANALYSIS
 Which company has played a major role in the field of insurance?

PRIVATE GOVERNMENT
COMPANY BUSINESSMEN
EMPLOYEES EMPLOYEES
LIC 10 13 10
BAJAJ
5 3 5
ALLIANZ
ICICI
PRUDENTIA 3 3 4
L
OTHERS 2 1 1

PRIVATE EMPLOYEES GOVERNMENT EMPLOYEES BUSINESSMEN

14
12
10
NO. OFRESPONDENTS

8
6
4
2
0
LIC BAJAJ ALLIANZ ICICI OTHERS
PRUDENTIAL
 Which insurance company has been successful in making strong public

base by advertisement?

PRIVATE GOVERNMENT
COMPANY BUSINESSMEN
EMPLOYEES EMPLOYEES
LIC 12 14 12
BAJAJ
2 2 3
ALLIANZ
ICICI
PRUDENTIA 5 3 4
L
OTHERS 1 1 1

PRIVATE EMPLOYEES GOVERNMENT EMPLOYEES BUSINESSMEN

16
14
12
NO. OF RESPONDENTS

10
8
6
4
2
0
LIC BAJAJ ALLIANZ ICICI OTHERS
PRUDENTIAL
 Do you think the insurance policy is totally in the direction of public

welfare?

OPTIO PRIVATE GOVERNMENT

BUSINESSMEN
N EMPLOYEES EMPLOYEES
YES 10 13 12

NO 7 4 6
Can't
3 3 2
Say

YES NO Can't Say

14

12
NO. OF RESPONDENTS

10

0
PRIVATE GOVERNMENT BUSINESSMEN
EMPLOYEES EMPLOYEES
 The life insurance policy opted by you is from which company?

PRIVATE GOVERNMENT
COMPANY BUSINESSMEN
EMPLOYEES EMPLOYEES
LIC 10 16 12
BAJAJ
2 2 3
ALLIANZ
ICICI
PRUDENTIA 3 1 2
L
OTHERS 5 1 3

18
16
NO. OF RESPONDENTS

14 PRIVATE EMPLOYEES
12
10 GOVERNMENT
8 EMPLOYEES
6 BUSINESSMEN
4
2
0
 Do you think LIC would continue to loose its grip over the insurance

market in coming days?

OPTIO PRIVATE GOVERNMENT

BUSINESSMEN
N EMPLOYEES EMPLOYEES
YES 3 1 15

NO 14 18 3

Can't
3 1 2
say

20
18
16
14 PRIVATE EMPLOYEES
NO. OF RESPONDENTS

12
GOVERNMENT
10
EMPLOYEES
8 BUSINESSMEN
6
4
2
0
YES NO Can't say
 If any life insurance need arises in your family, then which company

would you prefer to get insured with after analyzing all insurance

players?

PRIVATE GOVERNMENT
COMPANY BUSINESSMEN
EMPLOYEES EMPLOYEES
LIC 7 15 5
BAJAJ
5 1 2
ALLIANZ
ICICI
PRUDENTIA 5 3 2
L

OTHERS 3 1 11

16
14
NO. OF RESPONDENTS

12 PRIVATE EMPLOYEES
10
GOVERNMENT
8
EMPLOYEES
6 BUSINESSMEN
4
2
0
Z

AL
C

S
AN

ER
LI

TI
LI

EN

TH
AL

O
J

U
JA

R
IP
BA

IC
IC
 Which private company do you think would be able to make its grip

stronger over insurance market in coming days?

PRIVATE GOVERNMENT
COMPANY BUSINESSMEN
EMPLOYEES EMPLOYEES
BAJAJ
8 7 6
ALLIANZ
ICICI
PRUDENTIA 7 7 7
L

OTHERS 5 6 7

9
8
NO. OF RESPONDENTS

7
PRIVATE EMPLOYEES
6
5 GOVERNMENT
4 EMPLOYEES
3 BUSINESSMEN
2
1
0

FINDINGS
From the analysis of the above study it can be revealed that-

 LIC has played a major role in the field of insurance, while Bajaj

Allianz and ICICI Prudential stay behind it.

 In making strong public base by advertisement LIC is not behind

anyone in the race despite private players are generally supposed to

deliver comparatively more advertisements.

 A majority of private employees, government employees, and

businessmen are insured with LIC which is a tough challenge for

private players especially Bajaj Allianz and ICICI Prudential.

 Majority of people still trust a lot in LIC despite its gradually loosening

grip over the insurance market. They hope it will recapture the market

share lost by it.

 Majority of people would like to get insured with LIC despite of the

fact that private players like Bajaj Allianz and ICICI Prudential are
 equipped with a lot of beneficial products, not less than LIC. Its really a

matter of consideration.

 Talking about private players, majority of people hope and are

confident for the comparatively brighter future of Bajaj Allianz than

any other private player, which is a good indication and response for the

company.
 CONCLUSION

The story of insurance sector, however, is the meteoric rise of Bajaj Allianz

General, the second largest private general insurer after ICICI Lombard

General. Bajaj Allianz has been winning image points by mixing transparency

with innovativeness. The company, last year, boosted its public profile by

insuring production of the movie Bunty Aur Bubly and the TV show Nach

Baliye. Bajaj Allianz is also driving deeper into the hinterland for growth.

The entry of private insurance companies has expanded the product segment

to meet different levels of customer requirements. The most powerful

competitor is LIC which has vast market and very firm grip on its traditional

customers. In life insurance segment ICICI Prudential is the main challenge

for Bajaj Allianz. However, there seems no immediate cause for alarm for

LIC, which continues to top customer rankings for the sector. Though the

private pack nibbled off about 7% more of its market share in 2005-2006

reducing it to 71%, the company managed to grow its premium income by

49% for individual policies and 32% for business policies in2005-2006.
 RECOMMENDATIONS

Today the Indian consumers are increasingly becoming more aware and are

actively managing their financial affairs. Today, while boundaries between

various financial products are blurring, people are increasingly looking not

just at products, but at integrated financial solutions that can offer stability of

returns along with total protection. To satisfy these myriad needs of

customers, insurance products will need to be customized. Insurance today has

emerged as an attractive and stable investment alternatively that offers total

protection - Life, Health and Wealth. In terms of returns, insurance products

today offer competitive returns ranging from 7% to 9%. Besides returns, what

really increases the appeal of insurance is the benefit of life protection from

insurance products along with health cover benefits.

Therefore, to beat the competition, more and more transparency should be

ascertained between the company and policy holders. Particularly, in the

emerging boom in insurance sector, Bajaj Allianz should be more customers

centered, and well versed in the handling problem and grievances of the

policy holders. Also it should more concentrate on good advertising media to

make the customers well aware of its products.

Data show that more rural people are uninsured till the time which is a good

indication for company’s prospects in rural areas. Accordingly, company

should prepare its products for rural people and make them aware of these

products. But, meanwhile, the company should not forget that marketing of

financial instruments in a rural area is not an easy job and for that company

would have to convince the rural customers in a rural way.

 BIBLIOGRAPHY

BOOKS

 Statistics For Management- Richard I. Levin, David S. Rubin

 Fundamentals of Statistics- D.N. Elhance

 Research Methodology- C.R. Kothari

MAGAZINES & NEWSPAPERS

 The Economic Times

 The Times of India

 Business World

 Business Today
WEBSITES

 www.bajajallianz.co.in

 www.licofindia.com

 www.indiainfoline.com

 www.iciciprulife.com

 www.financialexpress.com

 www.theeconomictimes.com

 www.licindia.co
 ACHIEVEMENTS
       
  Bajaj Allianz Life Insurance Company Limited is a Union between Allianz  
SE, one of the world’s largest Life Insurance companies and Bajaj Auto,
one of the biggest 2- &- 3 wheeler manufacturers in the world.

Allianz SE is a leading insurance conglomerate globally and one of the

largest asset managers in the world, managing assets worth over a Trillion
Euros (Over R. 55,00,000 crores). Allianz SE has over 115 years of
financial experience in over 70 countries.

Bajaj Auto is one of the most trusted name is Indian auto for over 55
years.
At Bajaj Allianz Life Insurance customer delight is our guiding principle.
Ensuring world-class solutions by offering customized products with
transparent benefits, supported by best technology is our business
philosophy.

Key Achievements in FY 2006-07 :

• Have sold over 40,00,000 policies to satisfied customers

• Is backed by a network of 876 offices spanning the country

• Accelerated Growth

• Shareholder capital base of Rs 700 cr.

 DECLARATION
I Puneet Gupta declare that the Summer Training Project Report entitled
TOPIC” being submitted to the T.John Business School for the partial
fulfillment of the requirement for the degree of Master of Business
Administration is my own endeavors and it has not been submitted earlier to
any Institution\University for any degree.

Place: PUNEET GUPTA

Date: (MMB103702)