EXECUTIVE SUMMARY     The project report on “A study on customer awareness to enhance market share ofBajaj Allianz Unit Li...
LIMITATIONS OF THE STUDY       Not single work is exception to the limitations every work has got its ownlimitations, so d...
Chapter-I  1) Introduction                                               09  2) Literature Review                         ...
Weekly Reports  2) Bibliography     92BSPATIL                    4
Industry overviewA brief history of the Insurance sectorThe business of life insurance in India in its existing form start...
181            With the establishment of the Oriental Life Insurance Company in8               Calcutta. Some of the impo...
The Insurance Regulatory & Development Authority, an autonomous insurance regulatorset up in 2000, has extensive powers to...
Section 14 IRDA Act, 1999 lays down the duties, powers and functions of IRDA   1. The Authority has the duty to regulate, ...
10. Regulating investment of funds by insurance companies.    11. Regulating maintenance of margin of solvency.    12. Adj...
have been registered.        LIFE INSURERS            Public Sector            Life Insurance Corporation of IndiaLIFE IN...
CURRENT SCENARIO OF THE INSURANCE INDUSTRYInnovative products and aggressive distribution have become the say of the day. ...
Under state control, the insurance sector, both life and non-life ,grew steadily.     Still, Indians are not adequately in...
SBI        Cardif (arm of     Canada          SBI Life        sbilife.co.in     2.3               BNP paribas)            ...
Literature Review:     The project report on “A study on customer awareness to enhance market share ofBajaj Allianz Unit L...
Conclusion & Recommendation:      Analysis was based on the result of the research conducted and therecommendations are ba...
1.Insurace cover plus savings: ULIP serve the purpose of providing life insurancecombined with savings at market-linked re...
insurance plan that also helps him build a corpus for retirement can consider investing inthe Balanced or even the Aggress...
ULIP either to benefit from opportunities in the stock markets or if they have aninvestible surplus in a particular year t...
Kids going to        Higher studies for child,        Children independent, nearing  school, college              marriage...
Limitation:1. It is prudent to make equity-oriented investments based on an established track recordof at least three year...
direction of premiums, withdrawals, and so on. Insurance companies have the discretionto structure their expenses structur...
8. It would deal with the fact that expenses on ULIPs were on the higher side in the initialyears and therefore; the exit ...
Objectives:          1. To study the awareness level of Bajaj Allianz ULIPs with view to             recommend measure to ...
1. ORGANISATION PROFILE:  Bajaj GroupBSPATIL                               24
   A STRONG INDIAN BRAND- HAMARA BAJAJ     One of the Largest 2 & 3 wheeler manufacturer in the world .     21 million ...
   Founded in 1890 in Berlin,     Allianz is one of the leading global insurance companies headquartered in      Munich,...
   London .                   Paris.                   Zurich.                   New York.     Insurance to almost ha...
Bajaj Allianz life Insurance Company Limited is a joint venture between BajajAuto Limited and Allianz AG of Germany. Both ...
stability and strength.          Bajaj Allianz General Insurance received the Insurance Regulatory andDevelopment Authorit...
Company punch lineMission:BSPATIL              30
As a responsible customer focused market leader, we will strive to understandthe insurance needs of the consumers and tran...
Bancassurance VantageUNIT LINKED INSURANCE PLAN OR MARKET LINKED                               INSURANCE PLAN (ULIP).INTRO...
also successfully mapped along with life insurance need to retirement planning. Intoday’s times, ULIP provides solutions f...
STRUCTURE OF ULIP: -                                        ULIP                                CONTRIBUTION              ...
Technical Calculation of NAV: -UNIT Value = (Total market Value of all assets invested less expenses related              ...
b) Any kind of disability          c) Critical illness          d) Surgeries    6. Liquidity    7. Tax Planning    8. Adju...
Children                                  Start a                                                     Establishi          ...
2) INVESTMENTS AND SAVINGS    ULIP provides the client with option of investing as per his risk appetite and gets    retur...
Risk    Example 1: Here are four types of funds in which a client can invest. In each case    the risk goes on increasing ...
After paying the premium regularly for 3 years from the starting date of             the policy the client can take a prem...
The policyholder has a choice two reallocate the premium paid by him on             every premium policy anniversary. He c...
ULIP products are transparent in terms of, the policyholder is aware of where his    contribution is being allocated. The ...
The feature makes ULIP a marketable plan. The policyholder has an option of      withdrawals in case if need arises. ULIP ...
For ExampleA client put in regular contribution of Rs.20, 000 /-. From this amount a % is deducted ascontribution.Therefor...
But if you have a horizon of 10 years or more , then ULIPs have an edge.  To explain this further a ULIP has high first –y...
Returns prevailing in the marker. But here the insurance company evens out returns  to ensure that policyholders do not lo...
in terms of number of units and unit price. They can be viewed as a combination of  insurance and mutual funds.        The...
The ideal time to buy a unit-linked plan is when one can expect long termgrowth ahead . This is especially so if one also ...
Unit Gain is one of the most flexible unit linked plans in the market, and allows thecustomer to change the sum assured du...
The premiums paid are invested in fund/funds of your choice (depending on theallocation rate) &unit are allocated dependin...
Some of the feature of this plan areConvenient single premium payment, with option to pay top-ups later.100% of the single...
•    Maximum age at entry :67          •    Minimum single premium :Rs .25000.          •    Minimum top-up :Rs 10000.3) U...
The premium paid are invested in a fund or funds of your choice (depending   on the allocation rate) and units are allocat...
 Convenient single premium payment, with option to pay top-ups later.   98% of the single or top-ups are allocated.   G...
 Maximum age at entry :69    Minimum single premium :Rs. 25000.    Minimum top-up :Rs .5000.5)Unit Gain Life Pension pl...
Age group      18-30    31-35      36-40      41-45      46-55       55-60      61-65   Y for          125      90        ...
2. Unit gain easy pension single premium.How does the Bajaj Allianz Unit Gain Easy Pension Plan works?          The premiu...
ORGANISATION CHART                                       2.ORGANISATION CHART                                   Bajaj Alli...
ORGANISATION CHART OF THE BRANCH                   BAJAJ ALLIANZ LIFE INSURANCECHANNEL                  BANC ASSURANCE    ...
3. SAMPLING:Sampling: we are taken random sampleSample size: 100 consumersSample unit: collection of data was made from cu...
Books Journals, magazines and websites.6.MEASURING TOOLS:Data code sheetS/no   Q1   Q2    Q3    Q4      Q5     Q6     Q7  ...
28   A    H   A   A   A   B   C   D   A   A   B    A29   D    E   D   A   A   B   C   A       C   F    B   D30   D    E   ...
69   D   D   B   B   B                       A    B   A 70   C   A   B   A   B   A       A       A   B    B   A 71   D   B...
BSPATIL   64
1.What is your ratio of saving of the total income?  a) More then 60%                       b) 60% - 50%  c) 50% - 25%    ...
2.Your saving consist of.  a) Post office                        b) Bank F . D  c) Shares                             d) L...
From the above graph it is clear that, 10% of people saving in post office, 20% ofpeople savings in Bank FD, 8% of people ...
Interpretation:        From the above graph it is clear that 20% of people wants returns, 29% of peoplewants safety,8% of ...
Interpretation:        From the above graph it is clear that 75% respondents invested their money in lifeinsurance, 25% re...
Above graph 55% of respondents are aware of ULIP,45% of respondents are not aware ofULIP.6. In which company you have inve...
Above graph shows 42% respondents invested their money in LIC, 17% in BajajAllianz,8% in ICICI prudential, 9% in others an...
HOW PEOPLE KNOW THE ULIPS                                 17%                                                   Friends 35...
8. Which plan you have taken?  a) Endowment                    b) Money Back  c) Term Plan                    d) ULIP  e) ...
Interpretation:        The above graph shows that 17% of respondents have taken Endowmentpolicy,29% of respondents have ta...
Interpretation:           The above graph shows that 4% respondents wants Higher returns,1%liquidity, 2% life cover, 2% al...
Interpretation:The above graph shows that the 38% of respondents paying premium per annum less than10,000, 17% respondents...
FACTOR INFLUANCING FINANCIAL PLANNNING                          9%                  1%        14%                         ...
12.In future are you interested investing money on ULIP? a) Yes                            b) NoA                       52...
a) No Interest.   b) Lack of Advertisement.   c) Busy schedule.   d)Others                                   .A           ...
Findings          Through all this survey and analyzing what we found is that           In the survey it was found that 4...
Costmer awareness project report  @bajaj allianz
Costmer awareness project report  @bajaj allianz
Costmer awareness project report  @bajaj allianz
Costmer awareness project report  @bajaj allianz
Costmer awareness project report  @bajaj allianz
Costmer awareness project report  @bajaj allianz
Costmer awareness project report  @bajaj allianz
Costmer awareness project report  @bajaj allianz
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Costmer awareness project report @bajaj allianz

  1. 1. EXECUTIVE SUMMARY The project report on “A study on customer awareness to enhance market share ofBajaj Allianz Unit Link Insurance Plan” in Hubli city. I through under took the project bythe help of BAJAJ ALLIANZ Life Insurance Ltd. Sales team manager. Objectives: 1. To study the awareness level of Bajaj Allianz ULIPs with view to recommend measure to improve market share. 2. To find vital communication media. 3. To know the factors that influence investors while taking investment decisions. 4. To find potential market for ULIPs.Scope of the study:  The research was undertaken to gather information from the respondent to know exactly how many people aware of ULIPs in Hubli city and the study is restricted within the city.  One of the fast growing city in Karnataka and represents huge market for scope with more than 90 lakhs people.  Hubli is one of the commercial areas .  It is a place where the small and large industries are located .with the more increase population and there style more people are conscious about the their lives.BSPATIL 1
  2. 2. LIMITATIONS OF THE STUDY Not single work is exception to the limitations every work has got its ownlimitations, so due to time constraint my study confines only to Hubli city and it is notpossible to make extensive study. It is assumed that the sample selected represents entirepopulation. RESEARCH METHODOLOGY Primary (Filed Survey) Data source : Secondary data (internal) Area of Research : Hubli city Research instrument : Questionnaires Sample plan : Personal interview Businessman’s, jobholders, Sample unit : professionals etc. Sampling method : Random sampling Sample size : 100 customers INDEXPARTICULAR Page noBSPATIL 2
  3. 3. Chapter-I 1) Introduction 09 2) Literature Review 18 3) Statement of the problem 19 4) Purpose of the study 19 5) Scope of the study 26 6) Objectives of study 27 Chapter-II 1) Organization Profile 29 2) Organization Chart 62 3) Sampling 64 4) Research Design 64 5) Data Collection Methods 64 6) Measuring tools. 65 Chapter-III 1) Result & discussion with graphs & charts. 68 2) Summary, conclusion, & a proposed action plan with resource requirements and projected benefits to the organization. 84 Chapter-IV 1) Appendix Questionnaire 88BSPATIL 3
  4. 4. Weekly Reports 2) Bibliography 92BSPATIL 4
  5. 5. Industry overviewA brief history of the Insurance sectorThe business of life insurance in India in its existing form started in India in the year: -BSPATIL 5
  6. 6. 181  With the establishment of the Oriental Life Insurance Company in8 Calcutta. Some of the important milestones in the life insurance business in India are:191  The Indian Life Assurance Companies Act enacted as the first statute to2 regulate the life insurance business.192  The Indian Insurance Companies Act enacted to enable the government8 to collect statistical information about both life and non-life insurance businesses193  Earlier legislation consolidated and amended to by the Insurance Act8 with the objective of protecting the interests of the insuring public195  By the mid-1950s, there were around 170 insurance companies in the6 countrys life insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companiesAs a result, the government decided nationalizes the life assurance business in India. TheLife Insurance Corporation of India was set up in 1956 to take over around 250 lifecompanies. 245 Indian and foreign insurers and provident societies taken over by thecentral government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act.For years thereafter, insurance remained a monopoly of the public sector. It was onlyafter seven years of deliberation and debate - after the RN Malhotra Committee report of1994 became the first serious document calling for the re-opening up of the insurancesector to private players -- that the sector was finally opened up to private players in2001.BSPATIL 6
  7. 7. The Insurance Regulatory & Development Authority, an autonomous insurance regulatorset up in 2000, has extensive powers to oversee the insurance business and regulate in amanner that will safeguard the interests of the insured.INSURANCE SECTOR REFORMSDue to immense growth in the insurance sectors the regulations were introduced. In1993,Malhotra Committee headed by former Finance Secretary and RBI Governor wasformed to evaluate the Indian insurance industry and give its recommendations. After thiscommittee the regulatory body for insurance sector was formed with the name of IRDA.INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY(IRDA)IRDA has been formed as an authority to protect the interests of insurance policies, toregulate, promote and ensure orderly growth of insurance Industry and for mattersconnected therewith of incidental thereto.Composition of Authority under IRDA Act, 1999As per the section 4 of IRDA Act of 1999, The Authority is a ten-member teamconsisting of.. 1) A Chairman 2) 5 Whole team Members 3) 4 part time membersDuties, Powers and Functions of IRDABSPATIL 7
  8. 8. Section 14 IRDA Act, 1999 lays down the duties, powers and functions of IRDA 1. The Authority has the duty to regulate, promote and ensure orderly growth of the Insurance business and re- insurance business. 2. This Include - a) Issue to the applicant a certificate of registration, renew, modify , Withdraw, suspend or cancel such registration. b) Protection of interests of the policy holders in matter concerning assigning of policy, nomination by policyholders, insurable interest, settlement of insurance claim, surrender value of policy and condition of contracts of insurance. c) Specifying the code of conduct and practical training for intermediary or insurance intermediaries and agents 3. Specifying the code of conduct for surveyors and loss assessors. 4. Promoting efficiency in the conduct of insurance business. 5. Promoting and regulating professional organization connected with insurance and reinsurance business. 6. Levying fees and other charges for carrying out the purposes of this act. 7. Calling from information from, undertaking inspection of, conducting enquiries and investigation including audit of the insurers, intermediaries and other organization connected with the insurance business 8. Control and regulation of the rates, advantages, terms and condition 9. Specifying the form and manner in which books of accounts shall be maintained and statement of account shall be rendered by insurers and other intermediaries.BSPATIL 8
  9. 9. 10. Regulating investment of funds by insurance companies. 11. Regulating maintenance of margin of solvency. 12. Adjudication of disputes between Insurers and intermediaries or insurance intermediaries. 13. Supervising the functioning of the Tariff Advisory Committee. 14. Specifying the % of Premium, Income of the insurer to finance schemes for promoting and regulating professional organizations 15. Specifying the % of Life Insurance Business and general Insurance Business to be undertaken by the Insurer in the rural or social sector.The IRDA since its incorporation as a statutory body has been framingRegulations and registering the private sector insurance companies. IRDA being anIndependent statutory body has put a framework of globally compatible regulations. Indian Insurance SectorThe Insurance sector in India governed by Insurance Act, 1938, the Life InsuranceCorporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972,Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other relatedacts.INSURANCE COMPANIES:In the private sector 12 life insurance and 6 general insurance companiesBSPATIL 9
  10. 10. have been registered. LIFE INSURERS  Public Sector Life Insurance Corporation of IndiaLIFE INSURANCE CORPORATION OF INDIA (LIC)An Act of Parliament, viz., Life Insurance Corporation Act, formed Life InsuranceCorporation of India (LIC) in September 1956, with capital contribution from theGovernment of India.The objective was: to conduct the business with the utmost economy, in a spirit oftrusteeship; to charge premium no higher than warranted by strict actuarialconsiderations; to invest the funds for obtaining maximum yield for the policy holdersconsistent with safety of the capital; to render prompt and efficient service to policyholders, thereby making insurance widely popular.Since nationalization, LIC has built up a vast network of 2,048 branches, 100 divisionsand 7 zonal offices spread over the country. The Life Insurance Corporation of India alsotransacts business abroad and has offices in Fiji, Mauritius and United Kingdom.BSPATIL 10
  11. 11. CURRENT SCENARIO OF THE INSURANCE INDUSTRYInnovative products and aggressive distribution have become the say of the day. Indians,have always seen life insurance as a tax saving device, are now suddenly turning to theprivate sector that are providing them new products and variety for their choice.PRIVATISATION: There were various reasons given by the government to nationalize the insurancesector was to take insurance to the mass, facilitate the flow of long term funds (whichinsurance companies, by virtue of the business they are in, have ready access to) intodevelopment of infrastructure in the country, and safe guard the interest of the policyholders. Towards this end, state insurers did develop the insurance sector, though mostexperts believe that these monopolies could have done much, much more. In the early nineties is, the government went on a reforms binge and started loosingcontrols on Indian industry. In 1993 the government appointed the Malhotra committeeheaded former RBI governor R.N.Malhotra, to draw up a blue print for insurance sectorreforms. The panel submitted its report a year later, recommending privatization, backedby stiff entry guidelines and stringent regulations, so as to avoid repeat pernationalization free for all. The insurance regulatory and development authority (IRDA) was founded toregulate the sector and over see the process of privatization. In 2000, the IRDA startedgiving out licenses, and a year later, the first of the private players started operation. Thewheel had come full circle.BSPATIL 11
  12. 12. Under state control, the insurance sector, both life and non-life ,grew steadily. Still, Indians are not adequately insured and lag behind most countries. Total insurance penetration (insurance premium as a percentage of gross domestic product) is dismal when compared to its economic standing. Just 2% of the population has some of life insurance. LIFE INSURANCE COMPANIES IN INDIA & THEIR MARKET SHARE (as per march-06): INDIAN FOREIGN COUNTRY INSURER WEBSITE MARKETPROMOTER PROMOTER SHARE Bajaj Auto Allianz AG Germany Bajaj Allianz bajajallianz.co.in 7.56 Life Insurance ICICI Prudential USA ICICI iciciprulife.com 7.35 Prudential Life Insurance HDFC Standard Life UK HDFC Standard hdfcinsurance.co 2.9 Life Insurance m BSPATIL 12
  13. 13. SBI Cardif (arm of Canada SBI Life sbilife.co.in 2.3 BNP paribas) InsuranceAditya Birla Sun Life Canada Birla Sun Life birlasunlife.com 1.9 Group Insurance TATA American USA Tata-AIG Life tata_aig.com 1.3 International Insurance Group Max India New York life USA Max New York Maxnewyorklife. 1.2 life insurance comDabur India Aviva Plc USA Aviva Life avivaindia.com 1.1 Insurance Kotak Old Mutual Australia Kotak Mahindra Omkotakmahind 1.1 Mahindra Plc Old Mutual ra.com finance Funds Vysya Bank ING Group Netherlands INGVysya Life ingvysyalife.com 0.8 Insurance Reliance Amp Sanmar Australia Reliance life Relianceindia.co 0.5 insurance m Jammu & Met life USA Met life Metlifeindia.com 0.4Kashmir bank insuranceSahara India None India Sahara India Sahara India 0.1 Shriram Sanlam S.A Sriram life Sriramlife.com 0.0 insuranceGovernment None India Life insurance Licindia.com 71.4 corporation of India (LIC) BSPATIL 13
  14. 14. Literature Review: The project report on “A study on customer awareness to enhance market share ofBajaj Allianz Unit Link Insurance Plan” in Hubli. I through under took the project by thehelp of BAJAJ ALLIANZ Life Insurance Ltd. Sales team manager Chandru.A.KallanagoudarBody of the Report: Primary data was collected by administration questionnaire of 100 customers. Thequestionnaire was specially framed to meet the requirement of the survey and thefollowing details. Direct contact was made with the respondents through random sample to collectthe needful information with reference to our objective as per to meet the surveyrequirement.Interview technique: Direct personal interview was conducted throughout project using direct structuredand self-administrative questionnaire.BSPATIL 14
  15. 15. Conclusion & Recommendation: Analysis was based on the result of the research conducted and therecommendations are based on the analysis.Limitation : The major limitation of the project was time frame.STATEMENT OF THE PROBLEM “A study on customer awareness to enhance market share of Bajaj Allianz Unit Linked Insurance Products”. Management Problem:In the project the management problem is the ULIP’s is new in the market & the lot ofpeople are don’t know about the ULIP’s the management wants the improve market shareof ULIP’s.Advantages of investing in ULIP:ULIPs have been selling like proverbial `hot cakes in the recent past and they are likelyto continue to outsell their plain vanilla counterparts going ahead. So what is it thatmakes ULIPs so attractive to the individual is, as followsBSPATIL 15
  16. 16. 1.Insurace cover plus savings: ULIP serve the purpose of providing life insurancecombined with savings at market-linked returns. To that extent, ULIPs can be termed as atwo-in-one plan in terms of giving an individual the twin benefits of life insurance plussavings. This is unlike comparable instruments like a mutual fund for instance, whichdoes not offer a life cover.2.Multiple investment options: ULIP offer a lot more variety than traditional lifeinsurance plans. So there are multiple options at the individuals disposal. . ULIPsgenerally come in three broad variants:  Aggressive ULIPs (which can typically invest 80%-100% in equities, balance in debt)  Balanced ULIPs (can typically invest around 40%-60% in equities)  Conservative ULIPs (can typically invest up to 20% in equities)Although this is how the ULIP options are generally designed, the exact debt/equityallocations may vary across insurance companies. Individuals can opt for a variant basedon their risk profile. For example, a 30-Yr old individual looking at buying a lifeBSPATIL 16
  17. 17. insurance plan that also helps him build a corpus for retirement can consider investing inthe Balanced or even the Aggressive ULIP. Likewise, a risk-averse individual who is notcomfortable with a high equity allocation can opt for the Conservative ULIP.3.FlexibilityMutual Funds also offer hybrid/balanced schemes that allow an individual to select a planaccording to his risk profile. The difference lies in the flexibility that ULIPs afford theindividual. Individuals can switch between the ULIP variants outlined above to capitalizeon investment opportunities across the equity and debt markets. Some insurancecompanies allow a certain number of `free switches. This is an important feature thatallows the informed individual/investor to benefit from the vagaries of stock/debtmarkets. For instance, when stock markets were on the brink of 7,000 points (Sensex),the informed investor could have shifted his assets from an Aggressive ULIP to a low-risk Conservative ULIP.Switching also helps individuals on another front. They can shift from an Aggressive to aBalanced or a Conservative ULIP as they approach retirement. This is a reflection of thechange in their risk appetite, as they grow older.4. Works like an SIP: Rupee cost-averaging is another important benefit associated withULIPs. With an SIP, individuals invest their monies regularly over time intervals of amonth/quarter and dont have to worry about `timing the stock markets. As a matter offact, even the annual premium in a ULIP works on the rupee cost-averaging principle. Anadded benefit with ULIPs is that individuals can also invest a one-time amount in theBSPATIL 17
  18. 18. ULIP either to benefit from opportunities in the stock markets or if they have aninvestible surplus in a particular year that they wish to put aside for the future.The chart below shows how ULIP can meet multiple needs at different life stages. Integrated Financial Planning Starting a job, Recently married, Married, with kids Single individual no kids Your Low protection, Reasonable Higher protection, Need high asset creation protection, still still high on asset and accumulation high on asset creation but steadier creation options, increase savings for child Flexibility Choose low death Increase death Increase death benefit, choose benefit, choose benefit, choose growth/balanced growth/balanced balanced option for option for asset option for asset asset creation. creation creation Choose riders for enhanced protection. Use top- ups to increase your accumulationBSPATIL 18
  19. 19. Kids going to Higher studies for child, Children independent, nearing school, college marriage the golden yearsHigher Protection, Lump sum money for Safe accumulation for the golden high on asset education, marriage. Facility to yrs.Considerably lower life creation but stop premium for 2-3 yrs for insurance as the dependencies steadier options, these extra expenses have decreased liquidity foreducation expensesWithdrawal from Withdrawal from the account Decrease the death benefit-reducethe account for the for higher education/marriage it to the minimum possible.education expenses expenses of the child. Premium Choose the income investment of the child holiday-to stop premium for a option. Top-ups form the period without lapsing the accumulation (with reduced policy expenses) for the golden yrs cash accumulationBecause of their flexibility to adjust to different life stage needs, ULIPs fit in very wellwith financial planning efforts.BSPATIL 19
  20. 20. Limitation:1. It is prudent to make equity-oriented investments based on an established track recordof at least three years over different market cycles. ULIPs may not fulfill this criterion innear future.2. Insurance and savings are two different goals and it is better to address them separatelyrather than bundle them into a single product. A combination of a term plan and a mutualfund could give better results over the long term.3.The free hand given to ULIPs might prove risky if the timing of exit happens tocoincide with a bearish market phase, because of the inherently high equity component ofthese schemes.4. An initial allocation charge is deducted from investor premiums for selling, marketingand broker commissions. These charges could be as high as 65 per cent of the first yearpremiums. Premium allocation charges are usually very high (5-65 per cent) in the firstcouple of years, but taper off later. The high initial charges mainly go towards fundingagent commissions, which could be as high as 40 per cent of the initial premium as perIRDA regulations.The charges are higher for a linked plan than a non-linked plan, as the former require lotmore servicing than the latter, such as regular disclosure of investments, switches, re-BSPATIL 20
  21. 21. direction of premiums, withdrawals, and so on. Insurance companies have the discretionto structure their expenses structure whereas a mutual fund does not have that luxury. Theexpense ratios in their case cannot exceed 2.5 per cent for an equity plan and 2.25 percent for a debt plan respectively. The lack of regulation on the expense front works to thedetriment of investors in ULIPs.5. The front-loading of charges does have an impact on overall returns as investors loseout on the compounding benefit. Insurance companies explain that charges get evenedout over a long term. Thus investors are forced to stay with the plan for a longer tenure toeven out the effect of initial charges as the shorter the tenure, the lower will be theinvestor real returns.6. In effect, when investor lock in their money in a ULIP, despite the promise offlexibility and liquidity, investor will stuck with one fund management style. This is allthe more reason to look for an established track record before committing investor hard-earned money.7. Investor life cover charges would depend on the accumulation in investor investmentaccount. As accumulation increases, the amount at risk for the insurance companydecreases. However, with increasing age, the cost per Rs 1,000 sum assured increases,effectively increasing policy holder overall insurance costs.BSPATIL 21
  22. 22. 8. It would deal with the fact that expenses on ULIPs were on the higher side in the initialyears and therefore; the exit option would hardly prove to be beneficial for the investors.9. ULIP face tough competition from mutual funds, which are short-term instruments.Hence, a liquidity option makes ULIPs as attractive but because of the high front-endcharges on policy, investor may not be left with much to withdraw at the end of 3 years.Scope of the study: The research was undertaken to gather information from the respondent to knowexactly how many people aware of ULIPs in Hubli city and the study is restricted withinthe city. The reason for confining the scope of the research in Hubli were. 2) One of the fast growing city in Karnataka and represents huge market for scope with more than 90 lakhs people. 3) Hubli is one of the commercial areas . 4) It is a place where the small and large industries are located .with the more increase population and there style more people are conscious about the their lives.BSPATIL 22
  23. 23. Objectives: 1. To study the awareness level of Bajaj Allianz ULIPs with view to recommend measure to improve market share. 2. To find vital communication media. 3. To know the factors that influence investors while taking investment decisions. 4. To find potential market for ULIPs.BSPATIL 23
  24. 24. 1. ORGANISATION PROFILE: Bajaj GroupBSPATIL 24
  25. 25.  A STRONG INDIAN BRAND- HAMARA BAJAJ  One of the Largest 2 & 3 wheeler manufacturer in the world .  21 million + vehicles on the roads across the globe  managing funds of over Rs5200crore  Bajaj Auto finance one of the largest auto finance companies in India Rs5934cr turnover and profits after tax of 732cr in 2004-05  Bajaj group ,a Rs. 8,000 crore group ,a household name in India with a strong brand image and brand loyalty.  Bajaj Group is synonymous with quality and customer focus.  Bajaj Auto is a Rs.4,000 crore auto giant.  4th largest in the world.  Has over 15,000 employees.Allianz Group  Allianz Group is one of the worlds leading insurers and financial services providersBSPATIL 25
  26. 26.  Founded in 1890 in Berlin,  Allianz is one of the leading global insurance companies headquartered in Munich, Germany .  Established in 1890 ,more than 110 years of experience in insurance.  Allianz has over 700 subsidiaries and approximately 1,81,000 employees worldwide.  Allianz global network extends to over 70 countries in: o Europe . o South and Northern Americas. o Africa. o Middle East. o Asia Pacific.  World largest insurance company by revenue 520353cr  worldwide 2nd gross written premium 477930cr  3rd largest assets under management(AUM) and largest insurance companies AUM of Rs9594200cr.  11th largest corporation in the world  50% global business from life insurance close to 60 million lives insured globally.  Allianz’ shares are treated at the 5 leading international stock exchanges:  Frankfurt.BSPATIL 26
  27. 27.  London .  Paris.  Zurich.  New York.  Insurance to almost half of the Fortune 500 companies. Bajaj Allianz life InsuranceBSPATIL 27
  28. 28. Bajaj Allianz life Insurance Company Limited is a joint venture between BajajAuto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise,BSPATIL 28
  29. 29. stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory andDevelopment Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 toconduct General Insurance business (including Health Insurance business) in India.The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Autoholds 74% and the remaining 26% is held by Allianz, AG, Germany.Key Achievements in FY 2005-06 :• No.1 Pvt Life Insurer FY 2006-06. Leading by Rs. 78 Cr.• No.1 Pvt Life Insurer in Retail Business. Leading by Rs. 339 Cr.• Whopping growth of 216% for the FY 2005-06• Have sold over 13,00,000 policies to satisfied customers• Is backed by a network of 550 offices spanning the country• Accelerated Growth Fiscal Year No of policies sold in FY GWP in FY 2001-2002 (6mths) 21,376 Rs 7 cr. 2002-2003 1,15,965 Rs 69 cr. 2003-2004 1,86,443 Rs 221 cr. 2004-2005 2,88,189 Rs 1002 cr. 2005-2006 7,81,685 Rs 3134 cr.  Assets under management Rs 3,324 cr.  Shareholder capital base of Rs 500 cr.BSPATIL 29
  30. 30. Company punch lineMission:BSPATIL 30
  31. 31. As a responsible customer focused market leader, we will strive to understandthe insurance needs of the consumers and translate it into affordable products that delivervalue for money.Why Bajaj Allianz Life Insurance:The Bajaj Allianz Difference • Business strategy aligned to clients’ needs and trends in Indian and global economy / industry. • Internationally experienced core team, majority with local background. • Fast, decentralized decision-making. • Long-term commitment to market and clients. Shareholder in Bajaj Allianz life insurance company: Bajaj Auto LimitedBajaj Auto Limited is the largest manufacturer of two and three –wheelers in India andalso one of the largest manufacturers in the world. Bajaj Auto has been in operation forover 55 years. As a promoter of Bajaj Allianz General Insurance Company Ltd., BajajAuto has the following to offer. • Vast distribution network. • Knowledge of Indian consumers. • Financial strength and stability to support the insurance business. CHANNEL PARTNERSBSPATIL 31
  32. 32. Bancassurance VantageUNIT LINKED INSURANCE PLAN OR MARKET LINKED INSURANCE PLAN (ULIP).INTRODUCTION TO ULIPULIP came into play in the 1960s and became very popular in Western Europe andAmericas. The reason that is attributed to the wide spread popularity of ULIP is becauseof the transparency and the flexibility which it offers. As times progressed the plans wereBSPATIL 32
  33. 33. also successfully mapped along with life insurance need to retirement planning. Intoday’s times, ULIP provides solutions for insurance planning, financial needs, financialplanning for children’s future and retirement planning. Features of ULIP distinguishitself through the multiple benefits that it provides to the consumer. The plan is a one-stop solution providing: Life protection· Investment and Savings· Flexibility- AdjustableLife Cover- Investment Options· Transparency· Options to take additional cover against-Death due to accident- Disability- Critical Illness- Surgeries· Liquidity.ULIP distinguishes itself through the multiple benefits it provides to the policyholders.These plans are designed with a view to help the customers to utilize the marketopportunities by investing in the share market, capital market and at the same time havethe facility of Death Benefit and Maturity Benefit.Meaning It is a plan, which provides Life Insurance, and here policy value at any time varies according to the value of the underlying asset at that time.It is a plan that provides the client with the benefit of protection and flexibility.An ULIP plan works as a one-stop advantage for the policyholder. It gives thepolicyholder a wholesome advantage of integrated financial planning.BSPATIL 33
  34. 34. STRUCTURE OF ULIP: - ULIP CONTRIBUTION LESS- CHARGES INVESTMENT LIFE COVER REPRESENTED AS NAVNAV CONCEPTIt exhibits the value (or the price) that one has for his investment or one will have to payfor his investment.As, the investment made by different people are different, the value (or the price) is theexpressed in per unit terms. It helps in knowing the value of Insurance at any point oftime.BSPATIL 34
  35. 35. Technical Calculation of NAV: -UNIT Value = (Total market Value of all assets invested less expenses related to Investment management / Total no. of outstanding units)Factors affecting NAV:Market Value of investment portfolio, Number of Units, Expenses and InvestmentIncome.Ex: If 2,00,000 /- has been accumulated in the equity fund and the no. of units issued is10,000 /- then the NAV of the equity fund is: - 2,00,000 / 10,000 = Rs 20 / -As the equity market develop the fund grows from 2,00,000 / - to 220,000/-Now the NAV = 2,20,000 / 10,000 = Rs 22 / -If among these 10,000 units the policyholder has 5000 units then the value of investmentas of now is Rs 1,10,000.Thus a unit linked plan actually tells, what is the value of the fund.BASIC FEATURES OF ULIP 1. Life protection 2. Investment and savings 3. Flexibility 4. Transparency 5. Added Benefits a) Death due to accidentBSPATIL 35
  36. 36. b) Any kind of disability c) Critical illness d) Surgeries 6. Liquidity 7. Tax Planning 8. Adjustable Life Cover 9. - Investment Options- 1) LIFE PROTECTIONBSPATIL 36
  37. 37. Children Start a Establishi Family ng Career Retiremen t Time Start Working The graph shows the various needs of the customer at different point of time, individuals needs differ and his need for life protection fluctuates. ULIP satisfies the varying needs of the customer providing him with more and more protection as and when he requires, by allowing the policyholder to increase or decrease the death benefit. It is usually multiple of the contribution being paid, which ensure that the contribution is adequate enough to provide life protection. And is also able to maintain a sem balance between protection and savings.BSPATIL 37
  38. 38. 2) INVESTMENTS AND SAVINGS ULIP provides the client with option of investing as per his risk appetite and gets returns accordingly. These various options available for an individual to make investment in comparatively high risks instruments and get high returns. Below shown is a graph illustrating the various investment options for a client. Equity funds Balance d funds Debt Short funds term debt fundsBSPATIL 38
  39. 39. Risk Example 1: Here are four types of funds in which a client can invest. In each case the risk goes on increasing with the type of fund. The client has an option to shift as the risk and return orientation changes (Switch). 3) FLEXIBILITY The client has an option to choose the amount of sum assured and the premium amount he is capable of paying. In case of certain plans of ULIP the client is allowed to choose the premium. Eg: Lifetime and Lifetime I the client has a flexibility to decide the life cover according to his financial needs, independent of premium selected. Following points enumerate the flexibility feature of ULIP a) Increase in death benefit. As life cycle changes of a client he passes through various risks and responsibilities. He can increase or decrease the death benefit accordingly. b) Decrease in death benefit. If the client is unable to pay the same amount of premium he can decrease the death benefit with certain conditions applying according to the particular plans. c) Premium holidayBSPATIL 39
  40. 40. After paying the premium regularly for 3 years from the starting date of the policy the client can take a premium holiday if he is unable to pay a particular premium due. On returning from the premium holiday the client can pay the previous premiums if he desires or continue from that date. d) Choice of fund. There are four kinds of funds available for a client of ULIP. He has an option to switch between these four funds. He can either choose only one or invest in all four depending on his risk tolerance. Plan Plan objective Risk Investment pattern Maximiser High growth and High Equity and equity (Growth) capital appreciation related securities: Max over a long terms 90%, Debt, money market and cash: Min 10% Balancer Balance of capital Average Equity and equity (balanced) appreciation and related securities: Max study returns over a 40%, Debt, money long terms market and cash: Min 60% Preserver Equal balance of Low Debt instrument: Max capital appreciation 50% and study returns Money market and over a long term cash: Min 50% Protector Study returns over a Moderate Debt instrument: Max (Income) long term. 100% Money market and cash: Max 25% e) Switch between the fundsBSPATIL 40
  41. 41. The policyholder has a choice two reallocate the premium paid by him on every premium policy anniversary. He can switch between the above four funds to avail the advantages of market fluctuations. f) Top ups Some times the client may have surplus amount after his expenses. ULIP allows him to save that amount by investing in the insurance he can avail the benefit of top up by paying extra premium, which will be invested in the share market by the insurer company. The client gets expert fund management. The policyholder is allowed to do as many top ups in the tenure of plan. g) Premium redirection The policyholder is allowed to reallocate the premium paid each time to different fund structure. Thus whenever the premium is due (As per the premium payment mode), he can redirect the current premium into different asset allocations than the previous time. This helps the policyholder to optimize the funds in accordance to market with out using the switch option. e) Assignment option The policyholder can assign the policy to any of the nominees or any bank in case he has taken a loan on the title of the policy. Unfortunately if something happens to the policyholder then the insurer will repay the loan taken by the client to the extent of premium paid. 4) TransparencyBSPATIL 41
  42. 42. ULIP products are transparent in terms of, the policyholder is aware of where his contribution is being allocated. The policyholder is aware of the various charges charged to him. The Various charges of the ULIP are: - a) Contribution related Charges- Running expenses of the policy b) Administrative Charges- Issuance cost, distribution costs etc c) Fund Management Fee- cost of being and selling the various financial instruments for various funds. d) Mortality Charges: cost of providing life protection. e) Rider charges: cost of other protection charges. f) Surrender charges: cost to cover initial expenses. g) Bid offer charges: difference between the offer price of units and the selling price i.e. bid price of units. It covers the cost of selling the policy. h) Transaction specific charges: cost of changing funds, toping up the investment component or withdrawals Daily NAV: A feature that lets us know on a daily bases, how the money in insurance plan is growing. 5) ADDED BENEFITS To get extra protection ULIP provides the policyholder the advantage of rider attachments. a. Death due to accident (ADBR) b. Disability (ABR) c. Critical Illness (CIBR) d. Surgeries (MSAR) (Now discontinued) 6) LIQUIDITYBSPATIL 42
  43. 43. The feature makes ULIP a marketable plan. The policyholder has an option of withdrawals in case if need arises. ULIP provides easy access to the money as and when the policyholder may requires. There are two types of withdrawal options. a) Partial b) complete The value of withdrawal reduces the death benefit by same amount. This facility can be avail only after three full premium payment years are completed. The minimum worth of this units and a maximum where in at least Rs. 10000/- worth units remain in all the funds put together. 7) TAX PLANNING This is another feature of ULIP that motives the policyholder to invest in the insurance plans. They usually invest to avail the tax benefit. Regulation in India allows tax benefits in the contribution paid under section 88, contribution paid for health riders critical illness and major surgical is allowed tax benefits under section 80D, as per the prevailing tax laws. Maturity benefits are tax free under section 10(10) D, provided life come is at Life rime regular Premium least 5 times of the annual contribution paid. Death benefit is tax free under section 10(10) d. Part of the Premium Allocated Premium towards the policy With so many tax benefits available in one instrument ULIP tends to be an intelligent tax-planning tool. Working of a ULIP Plan This goes Insurance to the Allotment of Units Charges Protection a/c to provide against the 3D Effect Various Investment Options. Facility Units that build up the of withdrawals investment valueBSPATIL and investing 43
  44. 44. For ExampleA client put in regular contribution of Rs.20, 000 /-. From this amount a % is deducted ascontribution.Therefore if the contribution related expense is 40% - Rs.8000/- will be deducted ascontribution charges.The amount that is now available is Rs.20000-8000=12000/-Now, if the client who is available is aged 30 years were to take a life cover of 500,000/-then mortality (1.50/- per thousand at the age of 30) charge of 750 /- will be deducted.This amount will provide life cover to the policy. The remaining amount of –11250/- willbe invested in any one of them or all of them.The Investment is shown in terms of units. Thus if client invests in debt fund and theNAV of the debt fund is Rs. 15/-(market price) then the no. of units that the client will getis 11,250/15=750. For this investment-fund management fee will be charged and thecharges for maintaining the policy an administrative charge are levied. Are ULIPs similar to mutual funds?. In structure, yes; in objective, no. Because of the high first-year charges, mutual funds are a better option if you have a five-year horizon.BSPATIL 44
  45. 45. But if you have a horizon of 10 years or more , then ULIPs have an edge. To explain this further a ULIP has high first –year charges towards acquisition (including agents commissions). As a result, they find it difficult to outperform mutual funds in the five years. But in the long term, ULIP managers have advantages over mutual funds managers. Since policyholder premium come at regular intervals, investments can be planned out more evenly. Mutual fund managers cannot take a similar long term view because they have bulk investors who can move money in and out of schemes at short notice. Which is better, unit-linked or ‘Traditional plan’? The two strong arguments in favor of unit-linked plans are that –the investor knows exactly what is happening to his money and two ,it allows the investor to choose the assets into which he wants his funds invested. A traditional ‘with profits,’ on the other hands, is a black box and a policyholder has little knowledge of what is happening. An investor in a ULIP knows how much he is paying towards mortality, management and administration charges. He also knows where the insurance company has invested the money. The investor gets exactly the same returns that the fund earns, but he also bears the investment risk. The transparency makes the product more competitive .So if you are willing to bare the investment risk in order to generate a higher return on your retirement funds, ULIPs are for you. Traditional ‘with profits’ policies too invest in the market and generate the sameBSPATIL 45
  46. 46. Returns prevailing in the marker. But here the insurance company evens out returns to ensure that policyholders do not lose money in a bad year. In that sense they are safer. ULIPs also offer flexibility. For instance, a policyholder can ask the insurance Company to liquidate units in his account to meet the mortality charges if he is unable to pay any premium installment. This eats into his savings, but ensures that the policy will continue to cover his life. Why do insurers prefer ULIPs? Insurers love ULIPs for several reasons. Most important of all, insurers can sell these policies with less capital of their own than what would be required if they sold traditional policies. In traditional ‘with profits’ policies, the insurance company bears the investment risk to the extent of the assured amount .In ULIPs, the policyholder bears most of the investment risk. Since ULIPs are devised to mobilize savings, they give insurance companies an opportunity to get a large chunk of the asset management business, which has been traditionally dominated by mutual funds. Are unit-linked insurance plans good? Most insurers in the year 2004 have started offering at least a few unit-linked plans . Unit-linked life insurance products are those where the benefits are expressedBSPATIL 46
  47. 47. in terms of number of units and unit price. They can be viewed as a combination of insurance and mutual funds. The number of units that a customer would get would depend on the unit price when he pays his premium. The daily unit price is based on the market value of the underlying assets (equities, bonds, government securities, etc) and computed from the net asset value. The advantage of unit –linked plans is that they arte simple, clear, and easy to understand. Being transparent the policyholder gets the entire upside on the performance of his fund .Besides all the advantages they offer to the customers, unit- linked plans also lead to an efficient utilization of capital. Unit –linked products are exempted from tax and they provide life insurance. Investor welcome these products as they provide capital appreciation even as the yields on government securities have fallen below 6 percent , which has made the insurers slash payouts. According to the IRDA, a company offering unit-linked plans must give the investor an option to choose among debt, balanced and equity funds. If you opt for a unit-linked endowment policy, you can choose to invest your premiums in debt, balanced or equity plans. If you choose a debt plan, the majority of your premiums will get invested in debt securities like gilts and bonds. If you choose equity, then a major portion of your premiums will be invested in the equity market. The plan you choose would depend on your risk profile and your investment needs.BSPATIL 47
  48. 48. The ideal time to buy a unit-linked plan is when one can expect long termgrowth ahead . This is especially so if one also believes that current market values(stock valuations ) are relatively low. So if you are opting for a plan that invests primarily in equity , the buzzing marketcould lead to windfall returns. However , should the buzz die down , investors could beleft stung. If one invests in a unit-linked pension plan early on , say when one is 25, onecan afford to take the risk associated with equities , at least in the plan’s initial stages.However ,as one approaches retirement the quantum of returns should be subordinated tocapital preservation. At this stage , investing in plan that has an equity tilt may not be agood idea. Considering that unit-linked plans are relatively new launches, their short historydoes not permit an assessment of how they will perform in different phases of the stockmarket. Even if one views insurance as a long term commitment, investments based onperformance over such a short time span may not be appropriate. Allianz Bajaj launches its first unit linked policy. Allianz Bajaj Life Insurance Company has launched Unit Gain , the company’sfirst unit linked policy. Unit Gain allows customers to combine the benefits of lifeinsurance with higher investment returns from equity and debt markets. Unit Gain was launched with a choice of four funds to the customer- equity,debt, balanced and cash funds. The cash funds comes with the guarantee that the value ofunits in the fund will not go down.BSPATIL 48
  49. 49. Unit Gain is one of the most flexible unit linked plans in the market, and allows thecustomer to change the sum assured during the term of the policy to match their changinglife insurance requirements. Also the plan offers a premium holiday feature, where thepolicy is kept in-force even when premiums are not paid as long as there are enough unitsto cover charges. The policy provides customers flexibility in paying additional premium throughsingle premium top-ups, as well as in increasing the level of regular premium in lateryears (along with increase in income). In addition, the facility of cash withdrawals allowsthe Bajaj Allianz ULIP’S products.Bajaj Allianz ULIP’S products:1) Unit Gain Regular Premium: The Bajaj Allianz unit comes with a host of features to allow you to have the bestof all words –protection and investment with flexibility like never before. Some of the features of this plan are: Guaranteed death benefits. Choice of 6 investment funds with flexible investment management you can change funds at any time. Attractive investment alternative to fixed investment securities. Provision for full/partial withdrawal any time after 3 full years premiums are paid. Unmatched flexibility –to match tour charging needs.How does the plan work:BSPATIL 49
  50. 50. The premiums paid are invested in fund/funds of your choice (depending on theallocation rate) &unit are allocated depending on the price of units for the fund/funds.The value of your policy is the value of units that you hold in the fund/funds. Theinsurance cover charges are deducted through monthly cancellation of units . The fundsadministration charge and fund management charge are priced in the unit value. Minimum sum assured= 5 times the annual premium. Maximum sum assured =y times the annual premium where y will be as per the following table.Age 0-30 31-35 36-40 41-45 46-55 56-60GroupY 125 105 75 55 30 20Important details of “Bajaj allianz unit gain RP” plan Minimum age at entry: 0(risk commences at age 7, and ceases after age 70) Maximum age at entry :60 The minimum age at entry for all additional benefits is 18 years. The maximum age at entry for all additional benefits is 50 years. All additional benefits are available till age 65. 2) Unit Gain Single Premium: The bajaj allianz unit gain SP comes with a host of features to allow you to have the best of all worlds- protection and investment with flexibility like never before.BSPATIL 50
  51. 51. Some of the feature of this plan areConvenient single premium payment, with option to pay top-ups later.100% of the single premium/top ups are allocated.Guaranteed death benefits.Choice of 6 investment funds with flexible investment management you can withbetween funds at any time .Attractive investment alternative to fixed interest securities.Provision for full/partial withdrawal any time after the single premium is paid.Unmatched flexibility – to match your changing needs.How does the plan works? 100% of the single premium is invested in a fund/funds. The value of your choiceand unit are allocated depending on the price of units for the fund/funds the value of yourpolicy is the total value of units that you hold in the fund/funds . The insurance coverchanges are deducted through monthly cancellation of units. The funds administrationcharge and fund management charge are pried in the unit value. • Minimum sum assured =1.01 times the single premium. • Maximum sum assures =y times the single premium where y will be as per the following table. Age 0-30 31-35 36-40 41-45 46-60 61-67 Group Y 45 40 25 15 5 1.01 Important details of the “Bajaj allianz unit gain SP” plan:- • Minimum age at entry :0(risk commences at age 7, and ceases after age 70)BSPATIL 51
  52. 52. • Maximum age at entry :67 • Minimum single premium :Rs .25000. • Minimum top-up :Rs 10000.3) Unit Gain Plus Regular Plan: The Bajaj allianz unit gain plus RP comes with a host of features to allow youto have the best of all words – protection and investment with flexibility like neverbefore.Some of the key feature of this plan are  Guaranteed death benefit.  Choice of six investment funds with flexible investment management you can change funds at any time .  Attractive investment alternative to fixed –interest securities.  Provision for full/partial withdrawals any time after 3 full years premium are paid  Unmatched flexibility –to match changing needs. How does the plan work?BSPATIL 52
  53. 53. The premium paid are invested in a fund or funds of your choice (depending on the allocation rate) and units are allocated depending on the price of the units for the fund or funds. The insurance cover and administration charges are deducted through cancellation of units. The fund management charge is prices in the unit value.  Minimum sum assured = 5 times the annual premium.  Maximum sum assured = y times the annual premium where y will be as per the following table. Age 0-30 31-35 36-40 41-45 46-55 56-60 Group Y 125 90 60 40 20 15 Important details of the “Bajaj Allianz Unit Gain Plus RP” plan Minimum age at entry :0(Risk commences at age 7 and ceases after age 70) Maximum age at entry :60 Minimum age at entry for all additional benefits is 18 years. The maximum age at entry for additional benefits is 50 years. All additional benefits are available till age 65.4) Unit Gain Plus Single Premium Plan: The bajaj allianz unit gain plus Sp comes with a host of feature to allow you tohave the best of all words – protection and investment with flexibility like never before. Some of the key feature of this plan areBSPATIL 53
  54. 54.  Convenient single premium payment, with option to pay top-ups later.  98% of the single or top-ups are allocated.  Guaranteed death benefit.  Choice of five investment funds with flexible investment management you can change funds at any time.  Attractive investment alternative to fixed –interest securities.  Unmatched flexibility – to match your changing needs.  Provision for full or partial withdrawal any time after the single premium is paid. How does the plan works ? 98% of the single premium is invested in a funds or funds of your choice and units allocated depending on the price of units for the fund or funds . The value of your policy is the total value of units that you hold in the fund or funds. The insurance cover and fund administration charges are deducted through cancellation of units. The funds management charge is priced in the unit value.  Minimum assured =1.01 times the single premium.  Maximum sum assured = y times the single premium where y will be as the following table. Age 0-30 31-35 36-40 41-45 46-60 61-69 Group Y 45 35 20 10 5 1.5 Important details of the “Bajaj Allianz Unit Gain Plus SP” Plan  Minimum age at entry :0(Risk commence at age 7,and ceases after age 70)BSPATIL 54
  55. 55.  Maximum age at entry :69  Minimum single premium :Rs. 25000.  Minimum top-up :Rs .5000.5)Unit Gain Life Pension plan: With Bajaj Allianz ,you can take control of your future and ensure a retirementyou can look forward to. This plan has been be signed to take of your retirement andinsurance needs, there by providing you with a comprehensive solution for life time.There are two packages choose from: 1. Unit gain life pension regular premium. 2. Unit gain life pension single premium.Defending on the amount of premium you want to pay, you choose sum assure as per thecondition given below: 1. Minimum sum assured =5 times annual/1.01 times single premium. 2. maximum sum assured =y times the annual/single premium where y will be as per the following table:BSPATIL 55
  56. 56. Age group 18-30 31-35 36-40 41-45 46-55 55-60 61-65 Y for 125 90 60 40 20 15 10 regular premium Y for 45 35 20 10 5 5 1.5 regular premiumHow does the Bajaj Allianz Unit Gain Life Pension Plan Work? The premium paid are invested in funds of your choice (depending on theallocation rate) and unit are allocated depending on the price of unit for the fund or funds.The value of your policy is the total value of units that hold in the fund or funds. Theinsurance cover and administration charges are deducted through cancellation of units.The fund management charge is priced in the unit value.Important details of the “Bajaj Allianz Unit Gain Life Pension” Plan: Minimum Maximum Age of entry 18 65 Deferment period 5 40 Age at vesting 45 706) Unit Gain Easy Pension Plan: With bajaj allianz , you can take control of your future and ensure a retirement youcan look for word to. There are two packages to choose form: 1. Unit gain easy pension regular premium.BSPATIL 56
  57. 57. 2. Unit gain easy pension single premium.How does the Bajaj Allianz Unit Gain Easy Pension Plan works? The premium paid are invested in a fund/funds of your choice (depending on theallocation rate) and units are allocated depending on the price of units for fund/funds. Thevalue of your policy is the total value of units that you hold in the fund/funds. Theadministration are deducted through cancellation of units. The fund management is pricedin the unit’s value.Important details of “Bajaj Allianz Unit Gain Life Pension” Plan: Minimum Maximum Age of entry 18 65 Deferment period 5 40 Age at vesting 45 70BSPATIL 57
  58. 58. ORGANISATION CHART 2.ORGANISATION CHART Bajaj Allianz Life Insurance Company Bajaj Allianz Life Insurance Group and Alternate Agency Channel Bancassurance Channel Branches Standard Chartered Bank Group Employee BenefitSatellite Satellite Satellite Syndicate Bank Corporate Agency Centurion Bank Franchisee Cosmos Bank Brokers Jankalyan Sahakari Bank BSPATIL 58 Jijamata Sahakari Co-op Bank
  59. 59. ORGANISATION CHART OF THE BRANCH BAJAJ ALLIANZ LIFE INSURANCECHANNEL BANC ASSURANCE CORPORATEZONAL SENIOR MANAGERBRANCHSATELLITE BRANCHSALES TAAM MANAGERINSURANCE CONSULTATIVE BSPATIL 59
  60. 60. 3. SAMPLING:Sampling: we are taken random sampleSample size: 100 consumersSample unit: collection of data was made from customer that is respondents4. RESEARCH DESIGN: The research design chosen was exploratory in nature as it involved effectivesstudy to determine the awareness of ULIPs and its products since the population in Hublicity is very vast. It is difficult to carry out 100% with in a limited time period. Hencesample survey technique was adopted for the study. Fieldwork was carried out to collectthe necessary data (through schedule questions /personal interview ).5. DATA COLLECTION METHODS: a) Primary data : A structural interview schedule/ questionnaire was used as a tool for primary data collection from respondent. b) Secondary data:BSPATIL 60
  61. 61. Books Journals, magazines and websites.6.MEASURING TOOLS:Data code sheetS/no Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 1 D H A A A A D E A B A - 2 C E D A A B B D D C B B D 3 D G D A A C C D B A D B D 4 C H D A A D C C C B B A 5 D E D A A A A C B D A - 6 A A D A A A A B B A A - 7 C E A A B A B B A 8 D C A A B F B A 9 D B E B A B A A 10 C B B B B A A 11 D D D B B A B A 12 C B A A A A A C A A 13 B B B A B B B C E A 14 D B B B B A A 15 D G D A A A C C A B C 16 D E B A B A A B A A A 17 D E A A B A E B A A B D 18 C C E A A A B B A B C 19 C C E A A C C A A F B A 20 C B B B B A B A A B A 21 C B C A A A D B A A A 22 B H E A A B C B A A A 23 D H E A A B C A B A B C 24 D E E A A D C A B A A 25 D E B A A A C B D C B D 26 D H E A A B C D D B D A 27 C E E A A B D A B A ABSPATIL 61
  62. 62. 28 A H A A A B C D A A B A29 D E D A A B C A C F B D30 D E E A B D C C D B E31 A G E A A C D B B A A32 D E A B B F B A33 C A B A A C B A A A34 D E E A A A B B A A A35 D C D A A B E C A F A36 D B B B B B A37 D F B B B A B B38 D E D A B A B A B A39 D B B A B D E B A B B B40 D B A B B A B A41 D B B B A D E E B C A42 D F A A B A C A A B C43 D F E B B C F A44 D E B A A A E D C A A B A45 D H C A B C E B C F B C46 A H E A B A A A C B D47 B B D B B D B A48 C G E A A D A B A D A49 B D B A B A A A A B A50 B E B A B C A B A A B A51 C E D A B A A A A D B A52 A E B A B A B B A B B A53 C G D A A B B B A A A54 B D A A B A A B B F A55 D G B B B A A56 D B A A A A B C B A A57 C C D B B B B C58 D E E A B A A A A C A59 C A A A A A A C C A A60 B D D A B A C C A D A61 D B A B B A A62 D B B B A D A A63 C E B A B A A A D B B64 D A B A A C A C A A A65 B D A B A A B A66 C H E A A A B B C B B A67 A D E A A A C B D A68 C F E A B A A A A B ABSPATIL 62
  63. 63. 69 D D B B B A B A 70 C A B A B A A A B B A 71 D B A A B A C A A A 72 C A B A A A B C A A B A 73 D B B B B A B B 74 D A D B B A B A 75 C D B A A B B A A A A 76 D E A A A B A B B B 77 B B C A A B D C B D A 78 C D B A A A D C C D B C 79 A H E A A A C E B B A 80 C B C A A A B B B A A 81 A D E B B A A 82 C A B A A B B D A C B B D 83 C H C A A A D B C F A 84 D A D A A B B A B A B C 85 B E E B A A B A 86 C C C A B A A C C A 87 D D B B A A B B A 88 C D B A A A B A B A A 89 D F A A A B B D A D C B D 90 C H E A A B A B B A A 91 B B C B B B A D 92 A D B A B A E B D A 93 B G A A A D B B A B A 94 D A C A B A B A A B A 95 D C E B A A A B D 96 C H E A A C B D A D B A 97 D E A A B A A A A B D 98 D E D A B D B A C B A 99 C G D A A A E B A B B D100 B C A A A D C B A D ABSPATIL 63
  64. 64. BSPATIL 64
  65. 65. 1.What is your ratio of saving of the total income? a) More then 60% b) 60% - 50% c) 50% - 25% d) Less then 25%> 60% 9%60%-50% 13%50%-25% 31%<25% 47%Total 100 SAVINGS 50% 47% 45% 40% 35% 31% CUSTOMER 30% 25% Series1 RESPONSE 20% 15% 13% 9% 10% 5% 0% > 60% 60%-50% 50%-25% <25%Interpretation: From the above graph it is clear that 9% of people saving more than60%, 13% of people saving less than 60%, 31% of people saving less than 50%, 47% ofpeople saving less than 25%.BSPATIL 65
  66. 66. 2.Your saving consist of. a) Post office b) Bank F . D c) Shares d) Land / Building e) Life insurance f) Gold g) Mutual fund h) All the abovePost Office 10%Bank FD 20%Shares 8%Land & Building 13%Life Insurance 23%Gold 5%Mutual Fund 8%All the above 13%Total 100 SAVING CONSIST 25% 23% 20% 20% 15% 13% 13% CUSTOM ER RESPONSE 10% 10% 8% 8% Series1 5% 5% 0% Post Shares Life Mutual Office Insurance FundInterpretation:BSPATIL 66
  67. 67. From the above graph it is clear that, 10% of people saving in post office, 20% ofpeople savings in Bank FD, 8% of people savings in shares, 13% of people savingconsist land and building, 23% of people savings in Life Insurance, 5% of people savingconsist in gold,8% of people saving in Mutual Fund, 13% of people saving consist all theabove option.3. What factor consist while making the policy. a) Returns b) Safety c) Liquidity d) Risk cover e) All the aboveReturns 20%safety 29%Liquidity 8%Risk cover 19%All the above 24%Total 100 FACTOR CONSIST WHILE MAKING POLICY Series1 29% 30% 24% 25% 20% 19% 20% CUSTOMER 15% RESPONSE 8% 10% 5% 0% Returns safety Liquidity Risk All the cover aboveBSPATIL 67
  68. 68. Interpretation: From the above graph it is clear that 20% of people wants returns, 29% of peoplewants safety,8% of people wants liquidity, 19% of people wants risk cover, 24% ofpeople wants all the above option.4. Have you invested money in life insurance? a) Yes b) NoYes 75%No 25%Total 100 MONEY INVESTED IN LIFE INSURANCE 75% 80% 70% 60% 50% CUSTOMER 40% Series1 RESPONSE 25% 30% 20% 10% 0% Yes NoBSPATIL 68
  69. 69. Interpretation: From the above graph it is clear that 75% respondents invested their money in lifeinsurance, 25% respondents are not invested.5. Are you aware of ULIP a) Yes b) No (If no, skip to q no 11)Yes 55%No 45%Total 100 AWARENESS OF ULIP 45% Yes No 55%Interpretation:BSPATIL 69
  70. 70. Above graph 55% of respondents are aware of ULIP,45% of respondents are not aware ofULIP.6. In which company you have invested your money? a) LIC b) Bajaj Allianz c) ICICI d) Others .LIC 42%BAJAJ ALLIANZ 17%ICICI 8%OTHERS 9%BLANK 24%TOTAL 100% PEOPLE INVESTED THEIR MONEY IN DIFFERENT COMPANIES 24% 42% 9% LIC BAJAJ ALLIANZ ICICI 8% OTHERS BLANK 17%Interpretation:BSPATIL 70
  71. 71. Above graph shows 42% respondents invested their money in LIC, 17% in BajajAllianz,8% in ICICI prudential, 9% in others and 24% of respondents are not respondedwell.7. How do you come to know ULIP? a) Friends b) Agents c) Newspapers/Magazines d) Bankse) Others .Friends 17%Agents 18%Newspaper/magazines 15%Banks 8%Others 7%Blank 35%Total 100%BSPATIL 71
  72. 72. HOW PEOPLE KNOW THE ULIPS 17% Friends 35% Agents Newspaper/magzines Banks 18% Others Blank 7% 15% 8%Interpretation: The above graph shows that 17% of respondents know the ULIPS through friends,18%of respondents through Agents,15% of respondents through News paper and Magazines,8% of respondents know through banks, 7% of respondents know through others and35% of respondents are not respondents well.BSPATIL 72
  73. 73. 8. Which plan you have taken? a) Endowment b) Money Back c) Term Plan d) ULIP e) All the aboveEndowment 17%Money Back 29%Term Plan 16%ULIP 8%All the above 4%BLANK 27%Total 100% RESPONDENT TAKEN DIFFERENT PLANS 29% 30% 27% 25% 20% 17% 16% CUSTOMER 15% RESPONSE Series1 8% 10% 4% 5% 0% Endowment Term Plan All the aboveBSPATIL 73
  74. 74. Interpretation: The above graph shows that 17% of respondents have taken Endowmentpolicy,29% of respondents have taken money back policy,16% of respondents have takenterm plan,8% of respondents have taken ULIP,4% of respondents have taken others, 27%of respondents not taken.9. Why you have chosen ULIP? a) Higher Returns b) Liquidity c) Life cover d) All the aboveHigher returns 4%Life cover 1%Liquidity 2%All the above 2%Blank 91%Total 100% FACTOR CONSIST WHILE CHOOSING ULIP PLAN 100% 80% 60% CUSTOMER 91% RESPONSE Series1 40% 20% 4% 1% 2% 2% 0% Higher Life Liquidity All the Blank returns cover aboveBSPATIL 74
  75. 75. Interpretation: The above graph shows that 4% respondents wants Higher returns,1%liquidity, 2% life cover, 2% all the above and 91% of respondents are not responded well.10. What is the premium you are paying per annum? a) 10000 b) 10000-25000 c) 25000-50000 d) 50000-100000A 38%B 17%C 11%D 3%BLANK 31% PREMIUM PAYING PER ANNUM 40% 38% 35% 31% 30% 25% CUSTOMER 20% 17% Series1 RESPONSE 15% 11% 10% 5% 3% 0% A B C D BLANKBSPATIL 75
  76. 76. Interpretation:The above graph shows that the 38% of respondents paying premium per annum less than10,000, 17% respondents paying per annum between 10,000- 25,000, 11% respondentspaying per annum between 25,000-50,000, 3% respondents paying per annum between50,000-100,000, blank is 31%. 1. What will influence your Financial Planning? a) Discussion with Family Member b) Tax Consultant/ C. A c) Insurance consultant /Agents d) Finance Magazines. e) Web site of insurance or Finance company. f) Any other Specify .Discussion with FM 47%Tax consultant/CA 22%IC /Agents 7%Finance Magazine 14%Websites 1%Others 9%Total 100%BSPATIL 76
  77. 77. FACTOR INFLUANCING FINANCIAL PLANNNING 9% 1% 14% 47% 7% Discussion with FM 22% Tax consultant/CA IC /Agents Finance Magizine Websits OthersInterpretation: The above graph factors influencing financial planning 47% influencing discussionwith family members, 22% tax consultant/CA, 7% Insurance Consultant/ Agents,14%through finance magazines, 1% through web sites of insurance/ FinanceCompany,9%through others.BSPATIL 77
  78. 78. 12.In future are you interested investing money on ULIP? a) Yes b) NoA 52%B 48% IN FUTURE PEOPLE WANT TO INVEST THEIR MONEY ON ULIPs 52% 52% 50% CUSTOMER 48% RESPONCE Series1 48% 46% A BInterpretation:The above graph 52% respondents are interested investing money on ULIPs in future,48% respondents are not interested to invest money in ULIPs.13. If no why?BSPATIL 78
  79. 79. a) No Interest. b) Lack of Advertisement. c) Busy schedule. d)Others .A 23%B 6%C 8%D 12%BLANK 51% IN FUTURE PEOPLE DONT WANT TO INVEST THEIR MONEY 23% A B 51% 6% C D 8% BLANK 12%Interpretation: The above graph 23% of respondents are no interested, 6% lack of advertisement, 8%busy schedule, 12% of respondent says others and 51% of respondents are not respondedwell.BSPATIL 79
  80. 80. Findings Through all this survey and analyzing what we found is that  In the survey it was found that 47% of the respondents are saving less than 25% income this indicates that nearly half of respondent in hubli city are coming under middle class.  As our research we found that 55% of people are aware of ULIP’s and 45% of respondent are not aware of ULIP’s so company has to give more advertisement about the ULIP’s .  Through Friends 17% of people are come to know about the ULIP’s ,through Agents 18%, 15% through Newspaper / Magazine , 8% through Banks, Others 7% of respondent are come to know 35% of people are not aware of ULIP’s so compare to all agents are playing important role & company has to increase more number of agents.  52% of respondent are interested to invest money in ULIP’s and 48% of respondent are not interested to invest money in ULIP’s so 52% is a potential customer so company can utilize that opportunity.  42% of respondent are invested their money in LIC, 17% in Bajaj Allianz, 8% in ICICI Prudential , 9% in others and 24% of people not at invested.  23% of respondent are not interested to invest their money in ULIPs , 6% lack of advertisement, 8% busy schedule,12% of respondents said others and blank 51%.BSPATIL 80

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