INDEXChapter NameNo.1. Introduction2. Research Methodology3. Working of Company4. Problems & suggestions5. Conclusions
ACKNOWLEDGEMENTIt gives me immense pleasure to present the project on “ RURALDISTRIBUTION AND RECRUITMENT OF CONSULTANT” in bajaj AllianzLIC. It was totally different & wonderful experience to be there in BAJAJALLIANZ COMPANY, BAHRAICH as summer trainee. I would like tothanks MR ASHUTOSH SINGH( ASSOCIATE AREA MANAGER- BP),FARHAN IQBAL & ASHUTOSH CHAUBEY OF BAJAJ ALLIANZ, forthere project guidance as these have been so co-operative & helpful from thefirst day of project till end. They also helped a lot in enhancing knowledgeabout the technicalities of insurance sector.I would like to confesses deep sense of gratitude towards my parents as well asmy friends and our group mentor Mis. Tanisha Tondon for their constantencouragement and timely suggestion.In all it was a great experience of working on this summer training project.
PREFACEFor a management student theoretical knowledge as well as practical orientationexpose on self to experience, one can again be mastering it is best possible time.MBA curriculum has been finding turned in such way that a student not apply thetheoretical knowledge but also gain it in a practical sense. Thus, objective can beattained thought application of theory tools concept and technique of management.Balanced, theoretical & practical knowledge are essential for every student isconceived in such a way so as to facilitates practical purpose.To procure objectives the research under to the project “A STUDY ONRECRUITMENT OF FINANCIAL ADVISORS IN THE BAJAJ ALLIANZ LIFEINSURANCE COMPANY LIMITED”. Secondary data were collected from websites,and journal of Bajaj Allianz Life Insurance Company Limited. Researcher has tried tosatisfy the topic of report by help of facts & finding.
Executive SummaryThe main focus of my project was on “HOW TO RECRUIT FINANCIALADVISOR IN BAJAJ ALLIANZ LIFE INSURANCE COMPANY” In thisproject I highlighted what are the insurance products, what are theplans? What are the benefits and how so sell them?The methodology adopted by us in selling insurance products was firstsegment to approach to natural market that is to relatives, Friends orSir etc. Then next is approach their references and finally to otherunknown and common people. After taking a prior appointment we approached them,interviewed them and selected them keeping in mind the criteria as perthe company’s requirement IRDA guidelines and also some softattributes, which were required to be financial advisor, we also havediscussed the concept of financial advisor. To sum up, there has been sustained efforts and dedication involveto make this study a comprehensive market study but at the same timethe researcher is open to any kind of suggestion that further needs to beconsidered in respect of the cause of his work.
INTRODUCTION OF INSURANCEInsurance is an integral part of everyone’s life in present scenario.Insurance or assurance is a device for indemnifying or guaranteeing anindividual against loss. ReimbursementIs made from a fund to which many individuals exposed to the same risk havecontributed certain specified amounts, called “PREMIUMS”. Payments for anindividual loss, divided among many, do not fall heavily upon the actual loser. Theessence of the contract of insurance, called a “POLICY” is mutuality.The entity that is transferring the risk, which may be an individual or association ofany type, including a government or government agency-, is called “INSURED”.The entity accepting the risk is called the “INSURER”. The agreement between thetwo by which the risk is transferred is called the “POLICY”. This is a legal contractthat sets out exactly the terms and conditions of the coverage. The fee paid by theinsured to the insurer for assuming the risk is called “PREMIUM”. This is usuallydetermined by the insurer to fund estimated future claims paid, administrative costsand profits.The major operations of an insurance company are underwriting, the determinationof which risks the insurer can take on; and rate making, the decisions regardingnecessary prices for such risks. The underwriter is responsible for guarding againstadverse selection, wherein there is excessive coverage of high risk candidates in
proportion to the coverage of low risk candidates. In preventing adverse selection,the underwriter must consider physical, psychological, and moral hazards in relationto applicants. Physical hazards include those dangers, which surround the individualor property, jeopardizing the well being of the insured. The amount of the premiumis determined by the operation of the law of averages as calculated by the actuaries.By investing premium payments in a wide range of revenue-producing projects,insurance companies have become major suppliers of capital and they rank amongthe nation’s largest institutional investors.
BAJAJ ALLIANZTHE COMPANYBAJAJ Allianz Life Insurance Company is a joint venture between twoleading conglomerates, Bajaj Auto Limited, one of largest manufactures ofmotorcycles and scooters in the world, and Allianz AG of Germany one ofthe largest insurance companies. Bajaj Allianz Life Insurance Co. Ltd. wasincorporated on 12th March 2001. The company received the InsuranceRegulatory and Development Authority (IRDA) certificate of Registration(R3) No 116 on 3rd August 2001 to conduct Life Insurance business inIndia.Bajaj Allianz Shareholder Capital Base stands at Rs. 500 crore with BajajAuto Limited and Allianz AG of Germany holding 74% and 26% stakerespectively. It is the largest private player in the Insurance Industry inIndia with a market share of around 34% amongst the private companiesand second to LIC. The total market share of Bajaj Allianz as of 31st March2006 is at 12%.During the financial year 2005-2006, Bajaj Allianz has sold over 13 lakhpolicies and collected about Rs. 4433 crore as premium income. Whoppinggrowth of 216% for the FY 2005-06, Assets under management of Rs. 3324Crore. It has paid up Rs 925 crores with IRDA as a caution deposit. BajajAllianz has insured lives for sum assure of over Rs 8500 crore.
Bajaj Auto LimitedBajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group isthe largest manufacturer of two-wheelers and three-wheelers in India andone of the largest in the world.A household name in India, Bajaj Auto has a strong brand image & brandloyalty synonymous with quality & customer focus. With over 15,000employees, the company is a Rs. 4000 crore auto giant, is the largest 2/3-wheeler manufacturer in India and the 4th largest in the world. AAA rated byCrisil, Bajaj Auto has been in operation for over 55 years. It has joinedhands with Allianz to provide the Indian consumers with a distinct option interms of life insurance products.As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has thefollowing 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.• A 10 million strong base of retail customers using Bajaj products.• Advanced Information Technology in extensive use.• Experience in the financial services industry through Bajaj Auto Finance Ltd
Allianz AGFounded in 1890 in Berlin, Allianz is now present in over 70 countries withalmost 174,000 employees. At the top of the international group is theholding company, Allianz AG, with its head office in Munich.Allianz AG is in the business of General (Property & Casualty) Insurance;Life & Health Insurance and Asset Management and has been in operationfor over 110 years. Allianz is one of the largest global composite insurerswith operations in over 70 countries. Further, the Group provides RiskManagement and Loss Prevention Services. Allianz has insured most of theworlds largest infrastructure projects (including Hongkong Airport andChannel Tunnel between UK and France), further Allianz insures themajority of the fortune 500 companies, besides being a large industrialinsurer, Allianz has a substantial portfolio in the commercial and personallines sector, using a wide variety of innovative distribution channels.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 New Unit Gain PlusIt is a unit linked plan of Bajaj Allianz that takes care of a person’s wealthby providing flexibilities in savings and investments and options forprotection needs.HOW TO GET STARTED?This gets started by opening an account with a minimum premiumof: Rs 15000/- p.a. for annual mode. Rs 7500/- p.a. for half-yearly mode. Rs 5000/- p.a. for quarterly mode.
TITLE OF THE STUDY: MARKET CREDIBILITY OF BAJAJ ALLIANZAMONG OTHER PRIVATE LIFE INSURANCE COMPANIES.OBJECTIVES: Working of the unit-linked plans. Comparative analysis of the life insurance products available in the market. Research methodology used : Primary data collected by visiting the leading life insurance companies like LIC, ICICI Prudential, Aviva, Birla Sun Life Insurance, HDFC Standard Life, Tata AIG Educare, OM KOTAK Mahindra. Data Collection: (a) Questionnaires filled by various income groups. (b)Internet (by searching about the investment plans of other companies). Action plan: (a) Firstly, collecting information from newspapers & magazines like Economic Times, Financial Express, Business India, The Times Of India, Internet. (b)Secondly, getting the questionnaires filled (about 50) to find out which company they prefer for life insurance policies, what are the specific features of their policies, whether they treat insurance as an investment option or a security option. (c) Finally, analyzing the data collected and comparing the insurance companies to show the market credibility of BAJAJ Allianz among other private life insurance companies.
RESEARCH METHODOLOGY:-MEANING OF RESEARCH: - Research is an art of scientific investigation.Research means “a careful investigation or inquiry specially through searchfor new facts in any branch of knowledge.”According to Clifford Woody: - “Research comprises defining and redefining problems,formulating, hypothesis or suggested solutions, collecting, organizing andevaluating data, making deductions and reaching conclusions and at lastcarefully testing the conclusions to determine whether they fit theformulating hypothesis”. Research means the systematic method consisting ofenunciating the problem, formulating a hypothesis, collecting the facts ordata, analyzing the facts and reaching certain conclusions either in form ofsolutions towards the concerned problem or in certain generalization forsome theoretical formulation.
The project titled, as “MARKET CREDIBILITY OF BAJAJ ALLIANZAMONG OTHER PRIVATE LIFE INSURANCE COMPANIES”required research to be done. The market credibility required the collectionof Primary Data as well as the Secondary data. The credibility literallymeans the market value and the market positioning of a particular brand or acompany among its competitors. BAJAJ Allianz is one of the private lifeinsurance companies, which came into existence in 2001. Market credibilitycan be checked by seeing the awareness of people about a particularcompany and its share in the market. Comparing the products of termpolicies as well as the endowment policies. Primary data : Questionnaire filled by people interviewed. Secondary data: (i) Data collected for companies from various sites available of the life insurance companies. (ii) Data collected from newspapers and NAVs of the various policies of BAJAJ Allianz and other private life insurance companies.
OBJECTIVES OF RESEARCH1. To gain familiarity with a phenomenon or to achieve new insights into it.2. To portray accurately the characteristics of a particular individual tuation or a group.3. To determine the frequency with which something occurs or with which it is associated with something else.4. To test a hypothesis of a casual relationship between variables.5. To discover answers to questions through the application of scientific procedures.
TYPES OF RESEARCH1. DESCRIPTIVE RESEARCH: - It includes surveys and fact-finding enquiries of different kinds. The main purpose of descriptive research is description of the state of affairs, as it exists at present.2. ANALYTICAL RESEARCH: - Analytical research has to use facts or information already available and analyze these to make a critical evaluation of the material.3. APPLIED RESEARCH: - Applied research aims at finding solution for an immediate problem facing a society or an industrial/business organization The certain aim of applied research is to discover a solution for some pressing practical problem.4. FUNDAMENTAL RESEARCH: - It is mainly concerned with generalization and with the formulation of a theory. Basic research is directed towards finding information that
has abroad base of application and adds to the already existing organized body of scientific knowledge.5. QUANTITATIVE RESEARCH: - It is based on the measurement of quantity or amount. It is application to phenomena that can be expressed in terms of quantity That can be expressed in terms of quantity.6. QUALITATIVE RESEARCH: - It is concerned with qualitative phenomenon that is phenomenon relating to or involving quality or kind.7. CONCEPTUAL RESEARCH: - Conceptual research is that related to some abstract ideas or theory. Philosophers and thinkers to develop new concept or to reinterpret existing once generally use it.8. EMPIRICAL RESEARCH: - Empirical research relies on experience or observation alone, often without due regard for system and theory. It is database research, coming up with conclusions, which are capable of being verified, by observation or experiment.
WORKING OF THE COMPANY:-The premiums paid are invested in fund/funds of your choice (depending onthe allocation rate) & units are allocated depending on the price of units forthe fund/funds. The value of your policy is the total value of units that youhold in the fund/funds. The insurance cover charges are deducted throughmonthly cancellation of units. The fund Administration Charge and FundManagement Charge are priced in the unit value. BENEFITSDEATH BENEFIT: In case of unfortunate death the beneficiaries areentitled to the Sum Assured less withdrawals or the bid price of units,whichever is higher? If the age of the life assured is less than 7 or above 70,then the bid price of the units is paid.LIQUIDITY OPTION: There is no maturity date for this plan. . Anytimeafter payment of 3 full years’ premiums, you may withdraw the money,depending on your requirements, through partial or complete surrender ofunits.
OPTIONSa. Choice of investment plan:Bajaj Allianz offers you a choice of 4 funds. You can choose to investfully in any one fund or allocate your premiums into the various funds ina proportion that suits your investments needs. All the funds will bemanaged by the asset managers of Bajaj Allianz. EQUITY FUND: This fund provides the scope of high appreciation over a long term. The fund will primarily invest in equities and is expected to match returns given by NSE NIFTY. This fund will invest at least 90% in equities and maximum 10% in cash. This Fund Investment is in NSE (National Stock Exchange) NIFTY i.e. top 50 companies. DEBT FUND: This fund provides the scope for steady returns at low risk through investments in high quality fixed income securities. This fund will be invested fully in debt instruments. This Fund Investment is in Govt. Bonds for e.g. IDBI Bonds, Mutual Funds etc. BALANCED FUND: The balanced is primarily for those who prefer mix of steady returns and growth. The balanced fund will invest 30% to 50% in the equity fund and 50% to 70% in the
debt fund. This Fund Investment is in Govt. and Private Companies. CASH FUND: The cash fund will invest conservatively in money market & short term investments to ensure that return on investments shall never be negative. 100% of this fund will be invested in money market instruments. The price of the units in this fund will never to go down. This Fund Investment is in Call Money Market (operates on the need for cash on hourly basis).b. Choice to switch between investment options:Policyholder can switch units from one fund to another. The amountswitched should be in multiples of 1000, and the minimum switchingamount is Rs. 5000 or the fund value which ever is lower. Three freeswitches would be allowed every year. Subsequent switches would becharged @ 1% of the switch amount or Rs. 100 whichever is higher.c. Choice of a Top-up:The policyholder will have the option to increase the regular premiumamount at any time. The additional single premium would be treated as asingle premium top-up every year. The policyholder will also have theoption to increase the amount invested through top-ups.
FLEXIBILITIESa. Increase the death benefit:The death benefit may be increased without any underwriting every 3rdyear upto 4 times. The increase will be allowed upto 25% of the originalsum assured or Rs. 1,00,000. Whichever is lower, each time? However,the maximum age till which this option will be allowed is the attainedage of 45yrs of the policy holder. Apart from the increase in death benefitevery 3rd year without underwriting, the policyholder may choose toincrease the death benefit subject to the maximum of ComprehensiveAccidental Protection, depending on his/her changing needs. Thisincrease will be subject to underwriting and the cost of underwriting shallbe deducted through cancellation of units. The option to increase thedeath benefit with underwriting ceases at age 60.b. Decrease the death benefit:Decrease in the death benefit will be allowed any time, subject to theminimum death benefit being maintained. The death benefit once reducedcan be increased subsequently only subject to underwriting.
c. Premium holiday option:Customers can opt to pay premiums at their convenience after paymentof full 3years premiums. Thereafter, when premium due are not paid, thepolicy will stay in force with full benefits so long as there is enough unitsavailable for charging the cost of insurance and additional benefits afterdeducting all applicable charges.d. Flexible Contribution:The person can increase/decrease the annual contribution. The maximumdecrease in the contributions can be upto 20% of the initial contributionchosen by the person at the time of inception of the policy. However, inno circumstances can the contribution be reduced to below the minimumpremium allowed under the plan at that time, or 80% of the initial chosencontribution, whichever is higher. The person has the flexibiltity toincrease his/her contribution without any limits. Any such increase ordecrease in contribution will only be allowed on policy anniversaries.
OTHER BENEFITSa. Additional Protection for You and Your Family:You have the option to add the following four additional benefits,providing total protection against uncertainties. • Accidental Death Benefit. • Accidental Permanent Total/Partial Disablement Benefit. • Critical Illness Benefit (CI). • Hospital Cash Benefit (HC).b. Surrender valueThis policy acquires a surrender value after 3 complete years of thepolicy, provided the 1st 3 years’ premiums are paid. The Surrender Valueis 100% of the value of investments.c. Tax Benefits Value of Units cancelled for Critical Illness and Hospital Cash Benefit is eligible for tax relief under Section 80(D). Death Benefit and Withdrawals (partial or full) is tax free under section 10(10) D of the Income Tax Act, if the premiums paid in any year does not exceed 20% of the Sum Assured or Fund Value, whichever is higher. Incase of change in any tax laws relevant to the policyholder or the fund
performance, the same will be applied as per regulations prevailing at the point of time. AGE LIMITSAge at entry: Minimum age of entry: 0 years (Completed years) Maximum age of entry: 60 years (Completed years) CHILD CARE
Taking care of a child is perhaps the most important job a parent can have. Itis but natural that you would like to give your child your best, and therefore,this is the time when careful financial planning can help you fulfill theaspirations that you have for your children. The Bajaj Allianz “Child Care”Solutions help you to enjoy the joys of parenthood responsibly, with thereassurance of a secure future for your child.CHILD CARE PLAN OFFERSChild Care plan is a children money back plan with profit. Bajaj AllianzChild Care offers a wide array of solutions that allows you to plan for yourchild’s future by providing you with as many as 4 distinct and uniqueoptions. 1. Child Care 21 2. Child Care 24 3. Child Care 21 Plus 4. Child Care 24 Plus
START OF LIFE BENEFITThis is a unique feature of Bajaj Allianz “Child Care” 21 Plus & 24 Plus.These packages offer you the choice of providing a unique Start of LifeBenefit for your child. For a nominal amount, an additional Sum Assuredsubject to a maximum limit of Rs.10 Lacks will become payable to enablethe child start hi/her professional life smoothly, in case of an unfortunatedeath or Accidental Permanent Total Disability of the Policy holder duringthe term of the policy. This benefit will not be available in the event ofaccidental permanent total disability after age 65 of the policy holder.IN-BUILT BENEFITS A) PREMIUM WAIVER BENEFIT: In case of death or Accidental Total Permanent Disability of the policyholder during the premium payment term, all future premium
payments are waived. This benefit will not be available in the event ofaccidental permanent total disability after age 65 of the policy holder.B) FAMILY INCOME BENEFIT:In case of death or accidental total permanent disability of the policyholder during the term of the policy, a monthly income benefit of 1% ofthe sum assured (12% per annum) becomes payable till the end of thepolicy term (subject to a maximum of Rs. 1,20,000 per annum). Thisbenefit will not be available in the event of accidental permanent totaldisability after age 65 of the policy holder.C) OPTION TO PURCHASE FURTHER INSURANCE AT MATURITY:For ensuring continuity of the valuable insurance protection that the childwas enjoying, we offer the child and option to purchase a with profitsendowment or an equivalent plan from Bajaj Allianz Life InsuranceCompany for twice the amount of face value of this policy, without anymedical examination, on the premium rates prevailing at that time. (Theapplication must be made at least 6 months prior to maturity of thispolicy).
PAYOUT STRUCTUREFor Child Care 21 and Child Care 21 Plus: The minimum guaranteedpayouts are as follows:Policy Anniversary following completion 18 19 20 21of Age 20% + AccruedPayout as % of Sum Assured 25% 25% 35% BonusesFor Child Care 24 and Child Care 24 Plus: The minimum guaranteedpayouts are as follows:Policy Anniversary following 18 20 22 24completion of Age 25% + AccruedPayout as % of Sum Assured 25% 25% 40%* Bonuses
* refers to probable increase in payout based on higher interest during the payout period.DEATH PAYOUTIn the event of unfortunate death of the child during the policy terms, thepayouts shall be as underAge Payout Premiums paid will be refunded without interest andBelow 7 years the policy will terminate.Above 7 years and Sum assured with accrued bonuses will be paid and thebelow 18 years policy will terminate.Above 18 years and Outstanding payouts will be paid as one lump sum andbelow 24 years the policy will terminate.HOW TO GET STARTED?This gets started by opening an account with a minimum premium of: Rs. 5000/- p.a. for annual mode. Rs. 2500/- p.a. for half-yearly mode. Rs. 2000/- p.a. for quarterly mode. Rs. 700/- p.a. for monthly mode.
AGE LIMITS Child Care 21 and Child Child Care 24 and ChildEligibility Conditions Care 21 Plus Care 24 PlusMinimum age of the 20 20policyholderMaximum age of 50 50policyholderMinimum age of child 0 0Maximum age of child 13 13Minimum Premium Rs.4850 Rs.4850Minimum Premium 5 5Payment TermMaximum Premium 18 18Payment TermMaximum age of child at 21 24maturityMaximum Sum Assured Rs. 50,00000 Rs. 50,00000
NEW UNIT GAIN PLUS Vs LIC BIMA PLUSFEATURES NEW UNIT GAIN PLUS LIC BIMA PLUSAge 0-60 years 12-56 yearsTerm Choice rests with a minimum 10 years period of payment of 3 years.Sum Assured Minimum sum assured is 5 Maximum limit up to times the premium paid. Rs. 2 lakhs. Maximum sum assured is as per the limits set per age bands.Survival Benefit Value of Fund at Bid Price Bid value of the fund units along with maturity bonus at 5% of the Sum Assured. Higher the Sum Assured or Death during the 1st 6 months-Death Benefit value of units. However, the 30% of SA + value of units, value of units will treat as next 6 months – 60% of SA + death benefit if the Life value of units. Death after 1st Assured is > 7 years or < 70 year-SA +value of units. Death years. during the 10th year- 105% of SA + value of units. Partial or complete Premature withdrawal allowed
Withdrawal Benefit withdrawals at bid price 1 year(after applying bid-offer after3rd year. spread).Contribution Minimum: Rs. 15,000 p.a Not specified.Flexibility to Only an increase in Not available.increase/decrease contribution is allowed.contributionInvestment Equity Fund, Debt Fund, Balanced, Secured & Risk.options Balanced Fund, Cash Fund.Increase/Decrease Available. Not available.of death benefitBonus Points Not Available. Not available.Top-up Available. Available (charges: 1.5% of the top-up).Switch 3 free switches every policy No free switches. Cost of year. Subsequent switches switches is 2% of the fund would be charged @1% of value. switch amount or Rs. 100 whichever is higher.
Surrender Value A selling/purchase price Partial surrender up to 50% spread of 5% will be of bid value of units allowed applicable from the 3rd year after 3 years from the date of onwards. commencement.Automatic Cover Available after the 3rd policy Not available.Continuance year.Initial charge Charges : Not disclosed st nd 1 Year- 24% ; 2 Year-3% 3rd Year- 3%. No charges grom 4th year onwards.Admin charges Annual admin. Charges of 1.25% of net assets.Other charges Transaction charge of 0.5% Not applicable. of the equity investment & 0.1% of the debt investments.Bid-offer spread The bid-offer spread is 5% of Not applicable. the offer price.Fund management Annual investment charge ofCharge 1% p.a. of net assets. 1% of the fund per annumRiders ABR/ ADBR / CI/Hospital In Built Accident Benefit. Cash Benefits.
CHILD CARE Vs SMART KID (ICICI Pru.FEATURES CHILD CARE SMART KIDPlan Type Anticipated Endowment. Anticipated Endowment.Min Max Term Matures when the child reaches theMatures between 22-25 years of age of 21 or 24. Premium paid till child. Term is 10-25 tears. child reaches age 18.Min Max Age 1-13 Years. 0-12 Years.of ChildMin Max Age 20-50 Years. 20-60 Years.of ParentPayment All regular premiums. All regular premiums.ModesLife Assured Child is insured. But premium Parent. waiver rider available for parent.Beneficiary Child Child.Flexibility in 2 structures : 2 structures : thbenefit 1. Money is paid on the 18 , 1. When the child reaches the th th ststructure 19 , 20 and 21 year criteria milestones ( Xth, (20%+25%+25%+35%) XIIth, Graduation, Post th 2. Money is paid on the 18 , 20 Grad.) 22nd or 24th year 2. Last 4 year before (25%+25%+25%+40%) maturity.
Benefit-Death None if premium waiver rider is not SA is paid up front. Child gets theof Parent purchased. Guaranteed payments as chosen earlier.All future premiums are waived off.Benefit- Death < 7 years – Premiums Policy continues as it is.of Child refunded without interest >7 years & <18 Years – SA + Bonus > 18 years – Outstanding payments as a lump sum.Bonus & Not guaranteed. Paid after the end of3.5% of SA compoundedAdditions the premium paying term. annually for the1st 4 years, annual bonuses declared thereafter.Riders Family Income Rider/ Premium ADBR / IBRavailable Waiver Rider.Surrender Available after 3 premium paying Available after 3 premiumValue years. paying years.
CHILD CARE Vs HDFC CHILD PLANFEATURES CHILD CARE HDFC CHILD PLANPlan Type Anticipated Endowment. Endowment.Min Max Matures when the child reaches the 10-25 Years.Term age of 21 or 24 Premium paid till child reaches age 18.Min Max 0-13 Years.Age of ChildMin Max 20-50 Years. 18-60 Years.Age ofParentPayment All regular premiums. All regular premiums.ModesLife Assured Child is insured. But premium Parent. waiver rider available for parent.Beneficiary Child. Child.Flexibility in 2 structures : The customer has to choose th thbenefit 1. Money is paid on the 18 , 19 , amongst 3 separate plans,structure 20th and 21st year with deferring premiums (20%+25%+25%+35%) based on the plans. th th 2. Money is paid on the 18 , 20 , 22
or 24th year (25%+25%+25%+40%).Benefit- None if premium waiver rider is not purchased. for either one of OptDeath of the plans:Parent 1. SA+ Bonuses paid upfront 2. SA + Bonuses paid on maturity. 3. SA paid on death & SA + Bonuses paid on maturity.Benefit- < 7 years – Premiums refunded Policy continues as it is.Death ofChild without interest >7 years & <18 Years – SA + Bonus > 18 years – Outstanding payments as a lump sumBonus & Not Guaranteed. Paid after the end of the SimpleAdditions premium Paying term. Reversionary Bonuses paid till maturity.Riders Family Income Rider/ Premium Waiver Rider.None.availableSurrender Available after 3 premium paying years. Available.Value
CHILD CARE Vs OM KOTAK CHILD ADVANTAGEFEATURES CHILD CARE OM KOTAK CHILD ADVANTAGEPlan Type Anticipated Endowment. Endowment.Min Max Matures when the child reaches the age of 21 10-30 Years.Term or 24. Premium paid till child reaches age 18.Min Max Age 1-13 Years. 0-17 Years.of ChildMin Max Age 20-50 Years. -of ParentPayment All regular premiums. All regular premiums.ModesLife Assured Child is insured. But premium waiver Parent. rider available for parent.Beneficiary Child Child. One structure only.Flexibility in 2 structures : Lump sum payment th th thbenefit 1. Money is paid on the 18 , 19 , 20 made on maturity ststructure and 21 year (20%+25%+25%+35%) which consists of SA or th th nd 2. Money is paid on the 18 , 20 , 22 or accumulated bonuses, 24th year (25%+25%+25%+40%). whichever is higher. If the child is 18(thenBenefit- None if premium waiver rider is not Sa or AccumulationDeath of purchased. paid, whichever isParent higher. Else total
premium or SV is paid whichever is higher).Benefit- < 7 years – Premiums refunded Policy continues as itDeath of is.Child without interest >7 years & <18 Years – SA + Bonus > 18 years – Outstanding payments as a lump sumBonus & Not guaranteed. Paid after the end of theAdditions premium paying term. Not guaranteed.Riders Family Income Rider/ Premium Waiver ADBR, WOP.available Rider.Surrender Available after 3 premium paying years. Available.Value
CHILD CARE Vs TATA AIG EDUCARE (18 YEARS)FEATURES SMART KID TATA AIG EDUCAREPlan Type Anticipated Endowment. Regular premium endowment plan- Positioned as a Child Plan.Min Max Matures when the child reaches the Matures when the child isTerm Age of 21 or 24. Premium paid till 18 years of age. Child reaches age 18.Min Max 0-13 Years. 30 days to 8 years of age.Age of ChildMin Max 20-50 Years. Not applicable.Age ofParentPayment All regular premiums. All.Modes Child- till the childLife Assured Child is insured. But premium reaches the age 18 , the waiver rider available for parent. parent will be the policyholder. At 18, the policy will be transferred in the child’s name.Beneficiary Child Child.Flexibility in 2 structures :benefit 1. Money is paid on the 18th, 19th, Single payment structure.
structure 20th and 21st year 20%+25%+25%+35%) 2. Money is paid on the 18th, 20th, 22 or 24th year (25%+25%+25%+40%)Benefit- None if premium waiver rider is not Policy lapses in case payerDeath of purchased. benefit rider is not optedParent for.Benefit- < 7 years – Premiums The proceeds are paid toDeath of the parent.Child refunded without interest >7 years & <18 Years – SA + Bonus > 18 years – Outstanding payments as a lump sumBonus & Not guaranteed. Paid after the Guaranteed – 10% of SAAdditions End of the premium paying term. paid at maturity or death provided the policy has been in force for 10 years. Plus a guaranteed education benefit of 20% of the SA paid at the maturity.Riders Family Income Rider/ Premium Payor Benefit Rider-available Waiver Rider. premium waiver. 30% of the premiums paid(excluding the 1st premium & extra premiumSurrender Available after 3 premium paying , if any) provided 3 annualValue years. premiums have been paid in full.
FINDINGS AND ANALYSISThere were about 10 questions in the questionnaire on thebasis of which the findings were done and the analysis wasmade. The responses to the questions in the questionnaire arepresented in the form of statistical tools such as pie charts andbar charts. There were 50 people being interviewed fromdifferent income groups and age groups. 1. Do you have a life insurance policy? If yes, then of which company/companies? PEOPLE HAVING INSURANCE POLICIES 28% Yes No 72% % OF INSURED POPULATION IN VARIOUS COMPANIES Bajaj Allianz 6%0% 6% 3% LIC 28% Max Newyork 17% ICICI Pru TATA AIG 8% Birla sun life 32% AVIVA
Out of the 50 insurable people interviewed nearly 72% people have takeninsurance policy. Out of this population being interviewed nearly 32 % hadLIC policy, 28 % had BAJAJ Allianz, followed by ICICI Pru. (17 %), MaxNew York Life (8 %) , TATA AIG(3%), Birla Sun Life (6%), Aviva andHDFC having 6% shares each in the interviewed population. 2. Do you see insurance policies as an investment alternative or a security option? PURPOSE OF INSURANCE 22% Investment Alternative Security Option 78%Out of the 50 people interviewed 78 % people term/see insurance policy as asecurity option while only 22 % see it as an investment option.
3.Please rank the following as per your preference to investment in a financial year: INVESTMENT PREFERENCES IN VARIOUS ALTERNATIVES 20 15 (No. of people) 10 5 0 Shares Mutual Funds Life insurance Government Bonds (Investment alternatives)Out of 50 being interviewed, 18 people invest in life insurance policies,16 people invest in shares, 12 people invest in mutual funds and 4 peopleinvest in government bonds.
4.What is your criteria/criterion to select a particular insurance company and a scheme? CRITERIA FOR SELECTING AN INSURANCE COMPANY 20 20 15 15 8 10 5 2 5 0 Security Time span Market Return All of the share aboveOut of 50 people being interviewed, 15 people select an insurancecompany on the criterion of security, 5 people select an insurancecompany on the criterion of time span, 2 people select an insurancecompany on the criterion of market share, 8 people select an insurancecompany on the basis of return and 20 people select an insurancecompany on the basis of all the above mentioned reasons.
5. Rank the life insurance companies in the your order of preference: FIRST PREFERENCE OF PEOPLE AM ONG PVT. LIFE INSURANCE COMPANIES 16% BAJAJ Allianz 14% 46% ICICI Prudential Max Newyork HDFC 24% Out of 50 people interviewed, 46% had BAJAJ Allianz as their first preference for a pvt. Life insurance company followed by ICICI Prudential having 24 % preference followed by HDFC Life insurance having 16% market share and lastly Max New York Life Insurnce.
6. Do you think that private life insurance companies are as safe asLIC for taking a policy? PERCEPTION OF PEOPLE ABOUT SAFETYNESS : LIC Vs PVT. LIFE INSURANCE COMPANIES Yes 38% Yes No No 62% Out of 50 people being interviewed, 62 % of people do not find private life insurance companies to be safe for buying a life insurance policy whereas 38 % people find them safe for buying a life insurance policy from a private life insurance company.
7. BAJAJ Allianz is quite a famous company because: FAMOUSNESS REASONS OF BAJAJ ALLIANZ POLICIES 16% 40% PARENT COMPANIES 20% MKTG. AND ADV. STRATEGIES 24% All OF THE ABOVE Out of 50 people interviewed, 16 % people perceive policies of BAJAJ Allianz make it a famous company while 20% think it is due to the parent companies, 24% take it as marketing and advertising strategies which appeal to the mass population while 40 % think it is all due to the above mentioned reasons that BAJAJ ALLIANZ is a famous company.
8. Are you satisfied with your existing policy/policies? SATISFACTION LEVEL OF POLICY HOLDERS Not satisfied 31% Satisfied Not satisfied Satisfied 69% Out of 50 interviewed, 69% of the people were satisfied with their life insurance policies while only 31% of people were not satisfied.
ANALYSIS Analysis of a research project is based on the primary data and secondary data which is being collected from various sources to take out some conclusions of the research study being taken. In my project my purpose was to find the market credibility of BAJAJ Allianz among various other private life insurance companies. For this a population of 50 people was being interviewed having different lifestyles, different incomes, different occupations yet the point which was kept in mind was that this interviewed population was insurable.The questionnaire filled up by people revealed that nearly 36 peoplei.e. about 72% people have life insurance policies. This is due to thefact that people now have started realizing that life is very uncertainand it is advisable to have a life insurance policy. Nearly, 24 %people had LIC policy and 20% people have BAJAJ Allianz as theirlife insurance policy. The reason that people have more LIC policyis that it is an old company for life insurance and secondly it is agovernment controlled organization. Secondly, when enquired aboutthe perception of people about insurance policies, nearly 39 peoplei.e. about 78% people see it as a security option for their familiesfinancially so that if they are not alive some day, their family doesnot go in vain. While 11 people i.e. about 22% people see it aninvestment option to save taxes and get returns. Thirdly, when askedabout their investments in various alternatives, 18 people gave life
insurance policies their first preference for investment whereas 16gave shares as their first preference followed by mutual funds (12)and lastly government bonds. This clearly shows that people are riskaverse to a large extent as largest numbers of people like to invest inlife insurance policies to make sure that there is security. Fourthly,when they were asked about the criterion of choosing a lifeinsurance company 15 people replied that they see the security pointof view to buy a life insurance company. 5 people chose time spanas the criteria to choose a life insurance company. 2 people chose themarket share of the company as the preferred criteria of choosing thelife insurance company. 8 people chose the returns of life insurancecompanies as the criteria for choosing a life insurance company.Nearly, 20 people chose all the above mentioned reasons to choose alife insurance company.When the sample population was interviewed about their 1stpreference among the pvt. Players, nearly 46 % people chose BAJAJAllianz as the 1st insurance company, 24 % people chose ICICIPrudential as the 1st preference, and 16 % chose HDFC as the 1stinsurance company and 14 % people chose Birla Sun life as the 1stpreferred company. When sample size was asked about safety nessof an insurance policy as compared to LIC policy nearly 62 %people replied that they do not find private life insurance companiesas safe as LIC, this is due to the fact that LIC had monopoly into lifeinsurance till 2000. Only after 2000, private companies have come
in the field of Life Insurance Company. Proceeding further, whensample population was asked to recognize the punch line of BAJAJAllianz nearly 60 % of the population was able to recognize thepunch line of BAJAJ Allianz which clearly indicates that BAJAJAllianz is a well known life insurance company among the people.Followed by it, when sample size was interviewed about the reasonsof famousness of BAJAJ Allianz 16 % of people chose its policiesas the reason for its famousness, 20% people chose its parentcompanies as the reason for its popularity, 24 % agreed for itsmarketing and advertising strategies to be the prime cause of itspopularity among masses. Whereas 40 % population agreed to all ofthe above mentioned reasons to be causes of the popularity ofBAJAJ Allianz. When asked about the satisfaction with the existinginsurance policies nearly 69% people said that they are satisfied withtheir policy whereas only 31% people were not satisfied with theirpolicy.They wanted the additional features of transparency about thereturns after when they have stopped paying the premiums. Alsothey wanted higher rate of returns at the end of payment ofpremiums.
FUTURE GROWTH & SUGGESTIONS BAJAJ ALLIANZ, in the present scenario is growing at an aggressive pace. The company does a lot of survey & analysis in the market to discover customer’s needs & expectations & tries to improvise on its existing market linked plans along with insurance policies. In addition to this , the company from time to time keeps on introducing various new policies & tailor made plans exclusively to cater peoples’ financial needs. This has enabled BAJAJ Allianz to become market leader in the sector of insurance & investment companies since 2001 when it came into existence.Since, now many other companies are joining the field of insurance &investments, it will be necessary for BAJAJ Allianz to vigorously pursue &update its survey & analysis policy to remain market leader. Simultaneously,it should discover & rediscover its strength by introducing new plans bettersuited to the people at large. India is a very big market & it can providesustenance to all the companies in the field of insurance & investments butto remain one of the leading companies, BAJAJ Allianz has to adopt newstrategies earlier than others. This could include widening the distributionnetworks to all parts of the country & catering to every income group.Furthermore, it can improvise on its advertisements & promotion campaignsby becoming more appealing & making them touches the hearts of millions& billions of Indians who are the hot prospects. Lastly, the students in theprofessional courses, apprentices, trainees may be good targets to approachin times ahead.
CONCLUSIONThe research project titled as “MARKET CREDIBILITY OF BAJAJALLIANZ AMONG OTHER LIFE INSURANCE COMPANIES”enabled to understand the competition among the various life insurancecompanies which have entered Indian market of life insurance after 2000when private life insurance companies were allowed to enter the Lifeinsurance sector in India. BAJAJ Allianz is one of the companies in theprivate sector which are doing exceptionally good in this sector due to theirpolicies to which people find very attracting according to their needs. Whenpeople were interviewed about the first preference among the private lifeinsurance companies nearly 46% replied for BAJAJ Allianz, this clearlyindicates that BAJAJ Allianz is quite a household name. The reasons for thisare many like it is a company with very strong brand names: BAJAJ AutoLimited which is the no. 1 Automotive Manufacturer in India also AllianzAG is 3rd largest life insurance company in the world. The market share ofBAJAJ Allianz also around 34% among private life insurance companieswhich is quite high among private life insurance companies. It is onlysecond to LIC in the life insurance sector.But if there are people accepting BAJAJ Allianz, there are people whoare still hesitant to take up private insurance company’s policy this isdue to the fact that LIC is a government organization. It can be seenfrom the study that people have started recognizing BAJAJ Allianz as alife insurance and hence it will grow at a much faster pace in the future.
DIFFICULTIES FACEDFollowing were the difficulties faced during the completion ofproject: Non filling up of certain questions of the questionnaire which led to the cancellation of that particular questionnaire. Non understanding of certain parameters in the questionnaire. Taking a sample size of 50 people does not reflect the mindset of all kinds of people from different backgrounds, different age groups and income groups. Again research study of 2 months is a time constraint and covering whole of Delhi population by taking a sample size of 50 is not feasible.
QUESTIONAAIREANNEXURES(study -2)Quessionaaire1. Name:2. Age:3. Phone no.(O) : (R):4. Occupation:5. Address:6. Do you think life insurance cover is important for all?a. )yes b.)No7. What is the preffered area for selecting the life insurance policy?a. ) Term/Duration of the policy b.) Annual premiumc. ) Brand name of the company d.)Others (plzspec.)8. Do you think that life insurance policy is enough to cover your life?a.) Yes b.) No9. Are you going to take policy in the near future ( within 6 months )?a.) yes b.) No10. Which premium term is suitable for you?a.)Qurterly b.) Half yearlyc.) Annual d.) Single premium11. How much premium amount you are ready to pay?
a.) 8000-12000 b.) 13000-15000 c.) Above 1500012. What should the appropriate maturity age of policy?a.) less than 10 yrs b.) 10-15 yrsc.) 15-20 yrs d.)more than 20 yrs13. According to you which is the most growing insurance company?a.) Bajaj Allianz b.) ICICI pruc.)Kotak Mahindra c.)others (plz specify)14. Do you think that after sales services are important?a.)yes b.) no
BIBLIOGRAPHY Philip Kotlar, Marketing Management, New Delhi, Pearson Education (P) Ltd., Indian Branch, 2004. C.R. Kothari, research Methodology, New Delhi, New Age International (P) Ltd.WEBSITES www.bajajallianzlife.co.in www.icici.com www.lic.gov.in www.hdfc.com www.kotak.com www.birlasunlife.com www.aviva.com