This document summarizes a student internship project analyzing insurance cancellations at Bajaj Finserv lending counters in Mumbai. Key findings from surveys of 105 customers, 50 agents, and 50 dealers included that insurance was often mis-sold by pressuring customers to purchase without consent or providing full information. Many cancellations occurred due to financial problems or customers changing their minds due to peer influence. Recommendations included improving agent training, pitching insurance both over the counter and via calling, adding maturity payouts and family coverage to policies, and increasing dealer awareness of insurance benefits.

1. THE PROJECT TITLE:
A HYGIENE PARAMETER STUDY –
INSURANCE CANCELLATION
(A Summer Internship project)
UNDER
{MUMBAI}
Faculty Guide
PROF. ARUN KUMAR
{PROF. NIILM-CMS}
Project Guide
Mr. DINESH NAIDU
{AREA SALES MANAGER}
Submitted by
NITESH KUMAR
2012095

2. INTRODUCTION
Introduction to topic:“A hygiene parameter study – insurance cancellation”
Bajaj Finserv lending is a financial services company, which
finance consumer durable product and lifestyle product at 0%
interest rate.
Consumer Finance
SME Finance
Commercial Lending
Consumer Durables Finance
Lifestyle Finance
Mortgage
Business Loans
Infrastructure Finance
Vendor Financing

3. Cont.
Bajaj Finserv also cross-sell his term life insurance product i.e.
Bajaj Allianz life insurance. But this term insurance product
cross-sell to only customer, who had taken finance from Bajaj
Finserv lending.
Bajaj Allianz Life Insurance company is a union between
Allianz SE, one of the largest Insurance Company, Germany &
Bajaj Finserv.
Term insurance is a life insurance which provides coverage for
the policy term decided between the policy holder and insurer at
the onset of the policy.

4. LITERATURE REVIEW
In 2003 spending on consumers goods/ insurance products has
touched 6.6% out of total spending of the Indian consumers’
(Singhal, 2005, Kotler and others, 2007)
Gupta & Verma (2000) have done a study under convenience
sampling of 50 household of Mumbai by questionnaire. It
indicates that husband’s influence is considerably higher that the
wives, while taking & choosing insurance plan.
The demand of consumer durable products & insurance
products has been increase much more in 2007-08. Increase in
demand is a result of increase in income of the people and
increase in discretionary income too (Arora Renu, 1995,
Bhatty I. Z., 1989, Gupta and Pal, 2001, Sontaki, 1999).

5. OBJECTIVE OF THE PROJECT
To understand the root cause behind insurance
cancellation of the Bajaj Allianz life insurance
{BALIC}, at counters of Bajaj Finserv lending,
Mumbai city.

6. KEY DELIVERABLES OF THE PROJECT
Understand Bajaj Finserv lending CD financing process and
insurance product.
Meet F.O.S at 30 counters in Mumbai and understand the process
of when and how they are selling insurance to customers?
Understand from 2 Sample Customers at each of these 30
counters whom the FOS has pitched insurance– what changes
they want in the product?
Check with sample 50 cancelled customer what has gone wrong
and why are they not interested in the insurance product?

7. RESEARCH METHODOLOGY
Research methodology of project was done through
administration of questionnaire to 105+ consumers,
50+ F.O.S and 50+ dealers in the western line and
central line in Mumbai city.
So, Research methodology is divided into parts:Field survey
Telephonic survey

8. FIELD SURVEY PLAN
SAMPLE SIZE = 205
NO. OF CONSUMERS =
105
NO. OF F.O.S = 50
NO. OF DEALERS/STORE
= 50
TELEPHONIC SURVEY PLAN
SAMPLE SIZE = 234
NO. OF RESPONDENT=
126

9. DATA ANALYSIS
AREA COVERED: Area which covered is western area and
central area of Mumbai city.
DEALERS COVERED: No. of counters covered is 50, such as
Tata croma, reliance digital, Vijay sales, Snehanjali electronic
and open market stores such as L.G electronic, Kohinoor
electronic.
CUSTOMERS COVERED: No. of customers covered is 105+ at
store level and taken feedback of 234 customers through calling.

10. KEY FINDINGS
The root cause behind insurance cancellation is miss-selling
of insurance product and customer financial problem and
customers change of mind i.e.{customers were motivated by
its peers or family members}.
From the data I have found that f.o.s were not pitching
insurance over the counter they are generating lead through
calling to customers, this is one of the cause of insurance
cancellation.
Customer wants maturity amount and family coverage in
insurance policy.
While visiting the stores, I also found that dealers were not
aware of the insurance benefits and also not bothered about
the sale of insurance product.

11. CONCLUSION
After working for eight weeks’ in “BAJAJ FINSERV
LENDING” I found that company enjoys a monopoly in this
segment i.e. retail finance. No other company had a such huge
sales work force, which Bajaj Finserv lending had built. 0%
interest finance of consumer and lifestyle product has getting a
tremendous success.
Cancellations of insurance happens because of miss- selling of
insurance product by F.O.S, in order achieved sales targets.
Also f.o.s selling insurance through calling rather than over the
counter.

12. RECOMMENDATIONS
FOS should be taught by professional, how to pitch
insurance to customers ?
My suggestion is that in weekdays there are fewer
footfalls in store those days insurance should be pitch
over the counters and in weekends there more rush in
store. On weekends insurance pitching should be done
over the counters as well as through calling.

13. CONT…
On weekdays (i.e. Saturday and Sunday), company should put
an extra FOS at each counters to pitch the insurance,
and this will also help in increasing sales and better
customer satisfaction.
Store manager and dealers should be made aware of the
insurance products and benefits. As they are not
bothered about the insurance product.

14. OTHER RECOMMENDATIONS
A promotional campaign must be run, to clarifying the
benefits and offerings of BFSL which will clear the doubts
about 0 % finance & 0 processing fees.
Processing fees should not be charged for the EMI card
holders in the case of Consumer Durables as it will create
loyalty among customers and will help build a strong
customer base even before the competitors entering the
market.
Customers wants changes in insurance products such as
maturity amount and family coverage. If theses benefits were
added, then it will helps to increase the sale of insurance
product.

15. CONTACT US:
4th Floor, 271 Business Park,
model Industrial estate, near
virwani industrial Estate, off
western express highway,
Goregaon (east), Mumbai400063, Maharashtra
Phone no: + 91 22309 22300
Email-id:
wecare@bajajfinserv.in

16. FACTS AND FIGURE
FOS FEEDBACK REPORT
30
30
28
30
25
20
15 16
15 16
15
10
YES
5
0
2
0
NO
0
PITCHING AFTER
MISTRY CALLING
PRODUCT
AWARENESS
COVER NOTE
UNDERSTANDING
EDUCATING TO
CUSTOMER
PITCHING OVER THE
COUNTER
Pitching after mystery calling and pitching over the counter is not happening,
there is more numbers of NO that means FOS are not pitching insurance
to customers over the counter. They are generating lead through calling.

17. DEALERS / STORE FEEDBACK REPORTS
43
45
40
35
30
25
20
15
10
5
0
36
39
7
11
14
REGISTRATION OF
ANY NEW COMPLAINT DEALERS AWARENESS
OF INSURANCE
PRODUCT
YES
NO
STAFF PERFORMANCE
From the above as you can see 36 dealers has said NO,
which means dealers are not aware of the insurance product?

18. CUSTOMER FEEDBACK REPORT
NO. OF CUSTOMERS DEMANDS FOR CHANGE IN POLICY
45
45
40
35
30
25
20
15
10
5
0
27
20
13
SATISFY WITH
INSURANCE POLICY
WANTING A
MATURITY
AMOUNT
WANTING A FAMILY
COVERAGE
ALREADY HAVING
AN INSURANCE
Most of the customers are satisfied with the policy, but there are customers’
who demands for FAMILY COVERAGE AND MATURITY AMOUNT.

19. CUSTOMER INSURANCE CANCELLATION REPORT
GIVEN INSURANCE
WITHOUT TAKING
CUSTOMER CONSENT
3%
FINANCIAL PROBLEM
14%
4%
46%
12%
21%
NOT CONVEYED
PROPER
INFORMATION TO
CUSTOMER
DELAY IN
DISPATCHMENT OF
DOCUMENT
UNDERSTANDING
PROBLEM
OTHERS PROBLEMS
From the above data you can see that 46% of cancellation reason is because of
miss-selling of insurance product i.e. GIVEN INSURANCE WITHOUT TAKING
CUSTOMER CONSENT and 21% customer financial problem.