MINOR PROJECT

2011 - 2012

RECRUITMENT PROCESS SYSTEM & CUSTOMER SATISFACTION LEADS TO FINANCIAL PERFORMANCE With reference to BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED, Visakhapatnam

A Project Report submitted in partial fulfillment of the requirement for the award of MASTERS DEGREE IN BUSINESS ADMINISTRATION

By ARUNANGSHU ROY (Roll No: 1225111405)

GITAM INSTITUTE OF MANAGEMENT GITAM UNIVERSITY (Established U/S 3 of UGC Act, 1956) VISAKHAPATNAM (2011-12)

CONTENTS Sl. No. 1 2 3 4 5 6 Company Certificate Declaration By Student Certificate By Guide Acknowledgement Executive Summary Introduction To Subject i. Recruitment Factor effecting recruitment Difference between recruitment and selection Sources of recruitment Recruitment process Selection process ii. iii. Customer Satisfaction Financial Performance Areas of Financial Performance 7 8 9 10 11 12 13 14 Review of Literature Introduction of Bajaj Allianz Introduction of Insurance, Products and Benefits Introduction of National Networks and Distribution Channels Introduction to Departmentalization Organizational Chart Manpower particulars of Bajaj Allianz Introduction to present Study / Methodology 10 11 12 13 14 14 15 16 17 19 20 21 22 25 28 30 34 36 37 Topics Page No.

15 16 17 18 19 20

Objective of the Report Scope of the Study Introduction to Research Design Data Collection Method Limitation of the Study Analysis and Interpretation of Data i. Effectiveness of Recruitment Observations and Findings Suggestions ii. Customer Satisfaction and Benefits Observations and Findings Suggestions iii. Financial Performance and Analysis Observations and Findings Suggestions

38 39 40 41 43 44 44 56 57 58 71 72 73 81 82

21

List of Tables 1) Distribution Channel 2) Grading Structure 3) Manpower Details 4) Recruitment Satisfaction 5) Recruitment Process 6) Documentation of Recruitment Process 7) Transparency of Recruitment System 8) Uniformity of Recruitment Process 9) Constituents of Department Heads 10) Response of HR Department 11) Satisfaction of Written Test 12) Duration of Written Test 29 29 36 44 44 45 46 47 47 48 49 49

13) Test Evaluation 14) Criteria of Selection (knowledge based) 15) Criteria of Selection (knowledge + experience based) 16) Criteria of Selection (experience based) 17) Middle Level Awareness 18) Major Man Power Sources 19) Method of Interviewing 20) Selection on the basis of Merit 21) Long Term Savings 22) Life Insurance Policy 23) Source of Information 24) Reasons for non investment in Life Insurance Products 25) Customer holding Life Insurance Policy 26) Buying of Life Insurance Policy 27) Recalling of Advertisement 28) Messages derives from Insurance Ads 29) Believe in Ads 30) Influence of Ads 31) Purchase Decision 32) Selection of Types & Brands 33) Choice of Brands 34) Loyalty towards Brands 35) Influence towards Promotional Campaigns 36) Income from Premium 37) Income from Investments 38) Operating Expenses 39) Profit & Loss Account 40) Share Capital 41) Fixed Asset Analysis

50 51 51 52 53 54 54 55 58 58 59 60 61 62 63 63 64 65 66 67 68 69 70 74 74 75 76 77 77

42) Current Assets Analysis 43) Current Liabilities Analysis 44) Number of Policies sold 22 23 24 Conclusion Bibliography Annexure

78 79 80 83 84 86

DECLARATION

I, Arunangshu Roy (Enrollment No 1225111405) student of Masters of Business Administration (M.B.A.), GITAM Institute of Management (GIM), GITAM University, hereby declare that the project work initiated on Recruitment process system and Customer satisfaction leads to Financial Performance at Bajaj Allianz Life Insurance Company Limited is a genuine work done by me in partial fulfillment for the requirement of the degree of Masters of Business Administration. I confirm this has not been published or submitted elsewhere for the award of any degree in part or in full.

Name of the student: Arunangshu Roy Date:

CERTIFICATE

This is to certify that the project Report titled Recruitment Process System and Customer Satisfaction leads to Financial Performance is an original work carried out by Arunangshu Roy (Enrollment No 1225111405), under my guidance and supervision, in partial fulfillment for the award of the degree of Masters of Business Administration by GITAM Institute of Management, GITAM University, Visakhapatnam, during the Academic year 2011-12. This report has not been submitted to any other University or Institution for the award of any Degree/Diploma/Certificate.

Signature of Guide Name and Address of the Guide: Name of Faculty: Designation: GITAM Institute of Management Visakhapatnam

ACKNOWLEDGEMENT

It is my pleasure to acknowledge and express my gratitude to all those who helped me throughout in the successful completion of this project. I am very thankful to Sri. M. SREEDHAR PATNAIK, Senior Branch Manager, of Bajaj Allianz Life Insurance Company Limited Visakhapatnam, for extending support throughout the project. I am thankful to Sri. MURALI KRISHNA GUNDAPPU, Sales Manager of Bajaj Allianz Life Insurance Company Limited Visakhapatnam for providing information regarding the project. I wish to express my gratitude to Prof K Siva Rama Krishna, Dean & Principal, GITAM Institute of Management, GITAM University, Visakhapatnam, for giving me this valuable opportunity to experience the work culture in an organization. I am grateful to _____________________ (Name & Designation of the Faculty Guide), GITAM Institute of Management, GITAM University, Visakhapatnam for his/her continuous guidance to accomplish this project work, successfully.

ARUNANGSHU ROY Enrollment No. 1225111405

EXECUTIVE SUMMARY

Bajaj Allianz Life Insurance Co. Ltd and Bajaj Allianz General Insurance is very well known Insurance Company in Pune and in India also with its largest insurer in the world had joined hands with famous Bajaj Auto one of the trusted name in automobiles and house industry in India. This project is titled as Recruitment Process System & Customer Satisfaction leads to Financial Performance in Bajaj Allianz Life Insurance and tries to find out the different aspects leading to the success of the company. Different officials working in various departments have provided very important data in this respect. Formal and Informal interviews as well as the research (through questionnaire) are the basic methods of data collection used in this project. Also secondary data provided by the company officials is of immense importance. Every effort has been made to understand the long term plans of company for implementing proper Recruitment Process and plans to provide more customer satisfaction through various Insurance products for customer benefits in order to achieve long term success through efficient financial performance. As every company needs finance to survive in long run, such finance can only be obtain when the company recruit efficient employees who can give their best to satisfy the customers. It is well known that the Insurance Company is a service industry, the employees serving in the company are the most important elements and that is why recruitment process becomes very important in the long run. If the employees are well aware of the service they need to pertain to the customers then as a result company can bring profit. Thus to analyze the financial performance of Bajaj Allianz, the study of employees recruitment process and customer satisfaction is very important. From this project work, company officials get new insights about Recruitment process and better way to satisfy their customer to achieve efficient financial performance. I have also acquired the knowledge of how the Recruitment process is carried out and how different Advisors approach to the customers and even from such knowledge I myself with the help of my guide Mr. Murali Krishna G, Sales Manager and Mr. Sreedhar Patnaik, Senior Branch Manager perform various field work base on marketing and approach many customers and brought different policies for the company.

10

INTRODUCTION TO SUBJECT

11

INTRODUCTION TO SUBJECT

Any organization whether business or otherwise requires number of resource for its effective and efficient resources, this resources are again classified into various departments such as Human Resource, Marketing, Finance, this constitutes to be the most important aspects in any business and non-business organization. This is because all these departments are related to the success of the company. An efficient HR department engaged in recruiting the best employees, a Marketing department engaged in promoting the right product for the customer in order to gain customer loyalty and to achieve brand image. These results in efficiency in financial performance manage by the finance department in order to achieve success and to survive in the long run and to compete in the global market. In these report I mainly focus on the following aspects of the organization: 1) Recruitment Process in Bajaj Allianz 2) Customer Satisfaction towards Life Insurance 3) Financial Performance of Bajaj Allianz

12

1. RECRUITMENT RECRUITMENT: The term recruitment is an inseparable process in the world of globalization. Today it has been a linking activity bringing together those with job and those seeking job. The recruitment process attracts potential employees to the organization. The smooth recruitment process can be carried out by personnel department or HR head in the organization. The recruitment process starts first with manpower planning.

MANPOWER PLAN AND REQUISITION: Every position to be recruited shall be on the basis of an approved Manpower budget, which shall be sanctioned by the CEO of the company. Recruited against budgeted position will be required to be raised by the Department manager using the Manpower Requisition Form, the manpower requisition form has to be approved by the functional head and CEO of the Company in consultation with Head HR. The approved manpower requisition form shall form the basis for the commencement of the recruitment process. DEFINITION: Recruitment defined by Flippo as a process of searching for prospective employees and stimulating them to apply for job in the organization. As per Yoder a process to discover the sources of manpower to meet the requirement of staffing schedule and to employ effective measure for attracting that manpower in adequate number to facilitate effective selection of an efficient working force , thus the purpose of recruitment is to locate sources of manpower to meet job requirement and job specifications. OBJECTIVE: The objective of recruitment process helps the organization to identify whether the selected employee working capabilities are satisfying the companies targets. FACTOR AFFECTING RECRUITMENT: 1. The size of organization 2. The employment conditions in the community where the organization is located. 3. The effect of past recruiting efforts which shows the organization ability to locate and keep good performing people. 4. The working condition, salary and benefits package offered by the organization. 5. The rate of growth of organization. 6. The level of seasonality of operation and future expansion and production programmes and the culture, economic and legal factors, etc.
13

DIFFERENCE BETWEEN RECRUITMENT AND SELECTION Recruitment is the process of searching for prospective employees and stimulating them to apply for job in the organization. It s often term positive in that its objective is to increase the selection ratio, that is, the number of applicant per job opening. Maintain the hiring through selection. Selection is a process to eliminate applicants, leaving only the best to be placed in the organization. SOURCES OF RECRUITMENT: When organization is needed to fill a vacant organizational position, the individual may come from inside or outside the organization. There are two source of recruitment as follows: 1. Internal sources 2. External sources. The Internal source of recruitment means promotion of worker or employee from lower level to higher level. The recruitment process is carried within the organization. Mostly this process is used to fill vacancies of middle and top level personnel. The External source of recruitment is used to fill vacancies at lowest level or at the time of expansion of the organization of the firm or where job specification cannot meet by present employees. The commonly used outside sources are as follows: 1) Contact through present employees. 2) Former employees. 3) Intermediaries. 4) Recruitment at gate. 5) Unsolicited Application. 6) Advertisement. 7) School, College, University and Technical Institution. 8) Employment Exchange. 9) Private Agencies. 10) Professional Bodies. 11) Personnel Consultant. 12) Part time employee.

14

RECRUITMENT PROCESS CHART-1

Manpower Plan Position Description Manpower Requisition Bank Application Preliminary Interview Application Form Personal Test: a) Intelligence Test b) Aptitude Test c) Personality Test

Employment Interview Selection Medical Examination Appointment Letter

15

SELECTION PROCESS: The selection process is essentially a series of method of securing pertinent information about the applicant. At each stage, facts may come to light and more is learned about the applicant. The information obtained can be compared with the job specification, the standard of personnel. If the applicant qualifies, he advances to the next step; otherwise he is rejected. Thus, the job specification and the job applicant are present at each step in the selection procedure. Each step constitutes the means by which the applicants Qualification can be compared with the minim requirement established in the job specification. The procedure may be compared to a series of successive hurdles or barriers which an applicant must cross. These are intended as screens, and they are designed to eliminate an unqualified applicant at any point in the process. DEFINITION: Having identified the potential applicant, the next step is to evaluate their experience and qualification and make a selection. It refers to the process of offering job to one or more applicant from the application. Great attention has to be paid to selection because it means establishing the best fit between Job requirements on the one hand, and the candidate Qualification on the other.

16

2. CUSTOMER SATISFACTION The objective was to do Market Research to analyze the Customer Satisfaction for Bajaj Allianz Life Insurance Co. Ltd for that we have to understand the customer needs, Income, constraints, response and emotions so that they can contribute their time for becoming Life advisors for the company. The objective of this study was to analyze consumer satisfaction with respect to the performance, sales effort and sales service. The site visits and comparing made me possible to measure the satisfaction of consumer by identifying the attributes, which gave consumer-varying degrees of satisfaction. Questionnaire based on company format some attributes like requirement of customer and sales services offered by company were identified as critical (motivational) factors for providing satisfaction to consumers, while other factors like excisable deposit center, premium allocation was time to time and also intimation regaining before the allocation of premium. But absence of such hygienic factors definitely results in a dissatisfaction of the consumer. These hygienic factors could result in selling but their absence can certainly unseal the product offering. For this a questionnaire was prepared which gave a vague idea about the people who were really interested and wanted to know about various new opportunities in the insurance sector. Go through questionnaire in different area and people in the Visakhapatnam city. The study was undertaken for Visakhapatnam region during these 45 days. The questionnaire contains various aspects like there address, their present age, profession, number of dependents, Goals and also planning for old age (Retirement) etc.

INTRODUCTION: Wherever there is uncertainty there is risk. The risk cannot be averted. The risk is uncertainty of the financial loss. We don t have any command on uncertainties. This makes it essential that we think in favor of a device that becomes instrumental in spreading the loss. It is in this context that we think about insurance. Protect against the possible chance of generating uncertain losses. It eliminates worries and miseries of losses or destruction of property and death. Life insurance is a contract between you and a life insurance company, which provided you a death during the contract term. Buying insurance is extremely useful if you are the principal earning member in the family unfortunate premature demise, your family can remain financially secure because of the life that you have purchased. The primary purpose of life insurance is therefore protection of the family in the even insurance is also seen as a tool to plan effectively for your future years. Your retirement, childrens future needs. Today, the market offers insurance plans that not just cover your same time grow your wealth too. If you have dependants and financial responsibilities toward them, then you certainly need. Having a family means dependant, which in turn means financial commitments. Finance comes in the form of loans, childrens education, medical expenses etc.

17

INTRODUCTION OF THE TOPIC: The purpose of this training was to have practical experience of working within the organization, in the field of marketing and to have exposure to the important management practices in field of marketing. While writing this report the language has been keep simple and the entire discussion has been logical and has coherent outlines. The main motto of the project work was Market Research and Customer Satisfaction of Bajaj Allianz Life Insurance Co. Ltd, Visakhapatnam. It includes through market Research in various plans of Bajaj Allianz Life Insurance. In detail the consumer (Satisfaction) responses analysis, by surveying number of consumers. The project report consists of survey report various consumers about their responses about satisfaction towards Bajaj Allianz Life Insurance Co. Ltd.

18

3. FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE The word Performance is derived from the word parfourmen, which means to do, to carry out or to render. It refers the act of performing; execution, accomplishment, fulfillment, etc. In border sense, performance refers to the accomplishment of a given task measured against preset standards of accuracy, completeness, cost, and speed. In other words, it refers to the degree to which an achievement is being or has been accomplished. In the words of Frich Kohlar The performance is a general term applied to a part or to all the conducts of activities of an organization over a period of time often with reference to past or projected cost efficiency, management responsibility or accountability or the like. Thus, not just the presentation, but the quality of results achieved refers to the performance. Performance is used to indicate firms success, conditions, and compliance. Financial performance refers to the act of performing financial activity. In broader sense, financial performance refers to the degree to which financial objectives being or has been accomplished. It is the process of measuring the results of a firm's policies and operations in monetary terms. It is used to measure firm's overall financial health over a given period of time and can also be used to compare similar firms across the same industry or to compare industries or sectors in aggregation. FINANCIAL PERFORMANCE ANALYSIS In short, the firm itself as well as various interested groups such as managers, shareholders, creditors, tax authorities, and others seeks answers to the following important questions: 1. What is the financial position of the firm at a given point of time? 2. How is the Financial Performance of the firm over a given period of time? These questions can be answered with the help of financial analysis of a firm. Financial analysis involves the use of financial statements. A financial statement is an organized collection of data according to logical and consistent accounting procedures. Its purpose is to convey an understanding of some financial aspects of a business firm. It may show a position at a moment of time as in the case of a Balance Sheet, or may reveal a series of activities over a given period of time, as in the case of an Income Statement. Thus, the term financial statements generally refers to two basic statements: the Balance Sheet and the Income Statement. The Balance Sheet shows the financial position (condition) of the firm at a given point of time. It provides a snapshot and may be regarded as a static picture. Balance sheet is a summary of a firms financial position on a given date that shows Total assets = Total liabilities + Owners equity. The income statement (referred to in India as the profit and loss statement) reflects the performance of the firm over a period of time. Income statement is a summary of a firms revenues and expenses over a specified period, ending with net income or loss for the period.
19

However, financial statements do not reveal all the information related to the financial operations of a firm, but they furnish some extremely useful information, which highlights two important factors profitability and financial soundness. Thus analysis of financial statements is an important aid to financial performance analysis. Financial performance analysis includes analysis and interpretation of financial statements in such a way that it undertakes full diagnosis of the profitability and financial soundness of the business. The analysis of financial statements is a process of evaluating the relationship between component parts of financial statements to obtain a better understanding of the firms position and performance. The financial performance analysis identifies the financial strengths and weaknesses of the firm by properly establishing relationships between the items of the balance sheet and profit and loss account. The first task is to select the information relevant to the decision under consideration from the total information contained in the financial statements. The second is to arrange the information in a way to highlight significant relationships. The final is interpretation and drawing of inferences and conclusions. In short, financial performance analysis is the process of selection, relation, and evaluation. AREAS OF FINANCIAL PERFORMANCE ANALYSIS Financial analysts often assess firm's production and productivity performance, profitability performance, liquidity performance, working capital performance, fixed assets performance, fund flow performance and social performance. However in the present study financial health is measured from the following perspectives: 1. Working capital Analysis 2. Financial structure Analysis 3. Activity Analysis 4. Profitability Analysis SIGNIFICANCE OF FINANCIAL PERFORMANCE ANALYSIS Interest of various related groups is affected by the financial performance of a firm. Therefore, these groups analyze the financial performance of the firm. The type of analysis varies according to the specific interest of the party involved. Trade creditors: interested in the liquidity of the firm (appraisal of firms liquidity) Bond holders: interested in the cash-flow ability of the firm (appraisal of firms capital structure, the major sources and uses of funds, profitability over time, and projection of future profitability) Investors: interested in present and expected future earnings as well as stability of these earnings (appraisal of firms profitability and financial condition) Management: interested in internal control, better financial condition and better performance (appraisal of firms present financial condition, evaluation of opportunities in relation to this current position, return on investment provided by various assets of the company, etc)

20

LITERATURE REVIEW Mr. G.S. Sureshchandar of Indian Institute of Technology conducted research on the relationship between service quality and customer satisfaction during the year 2002 and analyze that the relationship between service quality and customer satisfaction has received considerable academic attention in the past few years. But the nature of the exact relationship between service quality and customer satisfaction is still shrouded with uncertainty. Mr. Mathew Joseph, Assistant Professor of the Schools of Business, Georgio College and State University, USA conducted research on Insurance customers assessment of service quality and Financial Performance during the year 2003 and analyze that increased competition from their traditionally non-insurance partners in the financial services industry has forced insurance only companies to enter areas once considered exclusively part of the financial services market. Ms. Pallavi Narendra Patankar conducted a research on Effectiveness of Recruitment Process and Analysis of Employees Settlement at Bajaj Allianz in the year 2004 and the study used an employee questionnaire to assess the recruitment process system and to analyze whether the company has clarity of the recruitment process and the satisfaction of the employees working in the company. Mr. Sachin Bhutkar Vishwakarma conducted a market research and customer satisfaction at Kotak Mahindra Life Insurance Co. Ltd in the year 2004 and the study used an questionnaire of how the customer is benefit with the use of insurance product and find that the customers are mainly influence which those products which provides more risk coverage and gives gurantee returns. Ms. Kathleen Mortimer conducted research on the components of effective service advertisements during the year 2008 and the research is based on a small sample of UK TV advertisements in which she finds that the majority of the advertisements utilize emotional appeals for not only experimental but utilitarian services. Mr. Xioling Hu conducted research for Analyzing efficiency in the Chinese Life Insurance Industry during the year 2009 to examine the efficiencies of Foreign and Domestic life insurance providers and to explore the relationship between ownership structure and the efficiencies of insurers and the result of this study indicate that the average efficiency scores for all the insurers are cyclical, it reached the peaks in certain year and gradually reduced for the rest of the period. Mr. S.A. Aduloju conducted research on the effects of advertising media on sales of insurance products during the year 2009 to examine the impact of advertising on sales of insurance products and from this research it was found that advertising had effects on sales volume and improved public image. Mr. P.K. Gupta conducted research on Risk Management and Insurance Service Management in Indian Companies during the year 2011 to study the risk management in Indian Companies and finds that Indian Companies is currently facing the problem of integration and incentisation.

21

INTRODUCTION OF BAJAJ ALLIANZ

22

Bajaj Allianz Life Insurance Co.Ltd Bajaj Allianz Life insurance Company Limited is a joint venture between Allianz AG of Germany and Bajaj Auto Limited. Characterized by global presence with a local focus and driven by customer Orientation to established high earning potential a financial strength, Bajaj Allianz Life Insurance Company was incorporated on 12th March 2001. The company received the Insurance Regulatory and Development Authority (IRDA) Certificate of Registration (R3) NO116 on 3rd August 2001 to conduct Life Insurance business in India. Allianz AG one of the largest insurer in the world had joined hands with Bajaj Auto one of the highly trusted name in the automobiles and household industry in India for a joint venture for their insurance operation and is one of the few Companies which is engaged in both Life and Non life Insurance Company banner Allianz Bajaj Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited. The Investment ratio between Bajaj and Allianz is 26:74. CORE VALUE OF BAJAJ ALLIANZ LIFE INSURANCE AND WHAT IT STANDS FOR Core value of Bajaj Allianz Understanding the customer s needs. Meeting the customer s requirement. Ensuring optimal performance at lowest cost. Commitment to excellence.

What Bajaj Allianz Stands For Dynamic and successful organization. A socially valued enterprise. Business integrity. Bajaj Allianz Life Insurance Co. Ltd, Visakhapatnam Bajaj Allianz Life Insurance Co. Ltd was established in Visakhapatnam in the year 2004 in Dwarka Plaza near Dwarakanagar to provide insurance benefit to the people of the city. Bajaj Allianz stands in the number 1 position for its valuable service and benefits provides to the customers. Its caption Jaisi Zaroorat Waisa Insurance has attracted the people of the city and in a short time Bajaj Allianz has became No. 1 Private Life Insurance Company since 2005.

23

VISION AND MISSION Bajaj Allianz Life Insurance Co. Ltd Shared Vision: To be the best Life Insurance Company in India to buy from, work for invest in. To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry To be the number one insurer for creating shareholder value

Shared Mission: 1. To be in the top 3 new Life Insurance company in India by new business and in force business by 2006. 2. To have PAN India presence. 3. To provide highest: quality service by ensuring: Highest customer retention in industry (90% first year) Every customer will be contacted by us at least once per year. We respond to customer/ agent within 48 hours Embrace technology to optimize efficiencies.

Achievements Bajaj Allianz has received iAAA rating, from ICRA Limited, an associate of Moody's Investors Service, for Claims Paying ability. This rating indicates highest claims paying ability and a fundamentally strong position. Bajaj Allianz General Insurance has received the prestigious "Business Leader in General Insurance", award by NDTV Profit Business Leadership Awards 2008. The company was one of the top three finalists for the year 2007 and 2008 in the General Insurance Company of the Year award by Asia Insurance Review.

24

INTRODUCTION OF INSURANCE, PRODUCTS AND BENEFITS

25

INSURANCE INTRODUCTION TO INSURANCE: Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. Insurance is an instrument, which protect the financial loss arising out of an uncertain event contingent to human beings and is mechanism to share the financial loss of an individual or group of people due to an unforeseen event between the individual or group of people who are exposed to the same kind of risk. An insurer is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

PRODUCT: Bajaj Life Insurance Company Limited offers the product as follows: 1. Invest Gain 2. Cash gain 3. Lifetime Gain 4. Child Care 5. Risk Care 6. Term Care 7. Save Care Economy Single Premium 8. Swarana Vishranti 9. Unit Gain

26

BENEFITS: 1) Insurance protection to dependent, Thrift saving, tax Benefits. 2) A husband, for instance, may buy an insurance policy to ensure his wife and children are taken care of should anything happen to him. 3) Parents buy insurance for the future saving of their children education and social obligation. 4) Motor Insurance ensures the money back to CURE UR CAR. 5) Protects the financial loss of household articles by theft or natural calamities. 6) Protects the financial loss of buildings and other valuables by fire. 7) Protects against medical bill for hospitalization due to unexpected diseases or accident 8) Accidental Insurance with hospital benefits eases with bill of medical expenses.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA) In 1999, the Insurance Regulatory and Development Authority (IRDA) were constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competitive so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. Role of IRDA: Protecting the interests of policyholders Establishing guidelines for the operations of insurers and brokers Specifying the code of conduct, qualifications and training for insurance intermediaries and agents Promoting efficiency in the conduct of insurance business Regulating the investment of funds by insurance companies Specifying the percentage of business to be written by insurers in rural sectors Handling disputes between insurers and insurance intermediaries

27

INTRODUCTION OF NATIONAL NETWORK AND DISTRIBUTION CHANNEL

28

NATIONAL NETWORK Bajaj Allianz Life Insurance Co.Ltd is a large and diversified organization. Bajaj Allianz Life Insurance Co has a national network. Bajaj Allianz has 55 branches all over India. The Head Office is located in PUNE. DISTRIBUTION CHANNELS The Distribution Channels of Bajaj Allianz is done all over India. The Channels is the vital process of the company. The Channels Description is as follows: TABLE-1: Distribution channel Channel Description Individual Channel Individual Agencies Corporate Agency Channel Through corporate, large Partnerships/private limited Companies Banc assurance Through Banks INTRODUCTION TO ORGANISATION GRADING STRUCTURE Bajaj Allianz Life Insurance Co. Ltd The internal grading structure in the organization is done by Management & HR head. This grading system is followed by all 55 branches of Baja Allianz and Head office also. The grading system consists of following: TABLE-2: Grading Structure Description Department heads leadership role Level L5

Department heads / regional heads / sales head L4 Managers / functional heads Assistant Manager Supervisory role L3 A B L2 A B Support Staff L1 A B

29

INTRODUCTION TO DEPARTMENTALIZATION

30

HUMAN RESOURCE DEPARTMENT IN BAJAJ ALLIANZ Policies: In Multinational Company like Allianz Bajaj HR planning and policies plays a major role in the growth of the organization, HR planning foreseen the manpower requirement. The need like food, sanitation is the basic function of the HR planning. Motivation is the inseparable part of Allianz Bajaj`s HR policies, Cricket match between Allianz Bajaj recently proved the truth. The HR department should update the manual of the company. As these manual contains Government made rules and regulation. The management can also make changes in the manual. The manual contains the rules & policies of the company. The manual is the internal document of the company. The other policies for HR department are that the company shall have Manpower planning for one-year period, based on the business plan for the year. There shall be no recruitment outside the manpower plan without prior approval of head HR and CEO. There is Joining Formalities, Internal grading structure, salary processing formalities, service condition, Additional HR policies, policies for Resignation/Termination. Apart from the work the individual view is taken into consideration. Any problem in the organization to an of their team member personal consul ling is done & tries to satisfy their need i.e. (Sociological & Psychological needs). In this organization all decision are taken by Head office HR for all 55 branches. Even they take decision regarding Day to Day activity. The ultimate objective of the company is in the growth of organization. If policies are not made and implemented and proper care is not taken of human assets i.e. employees than there is no progress to the employees and organization. So policies are important as well their employees who are key person who follows policies. Objectives: The Human Resource objective consists of the following: 1) Manpower planning. 2) Recruitment and selection. 3) Employee Development. 4) Performance Appraisal. 5) Develop belongingness for work. 6) Excellence performance award every month. 7) To build organization with integration, honesty & Quality of work. 8) Planning future goals for career development. 9) Teamwork & cooperation with people in the organization. 10) To provide security for work. 11) Promotion.

31

STRUCTURE OF HUMAN RESOURCE DEPARTMENT

Head HR L 4B

National Mgr Corporate

Asst. MgrHR L2B

Dy. Mgr-HR L 2B

Jr Exce-HR L1B

Jr Exce-HR L 1B

Sr. Exce-HR L 1A

Sr. Exce-HR L 1A

Mgt Trainee

MARKETING DEPARTMENT IN BAJAJ ALLIANZ Policies: Company policy concerning Customer Services Bajaj Allianz has products according to customers requirements. It has the largest distribution networks among the private players in India, wide range of flexible products for customers. Tied ups with NGOs and MFIs for the purpose of distributions of rural policies in India. It has trained more than 65000 insurance advisors to interface and advise customers. Bajaj Allianz motivates their employees by: a) Promotion b) Appreciation c) Incentives Bajaj Allianz often uses different types of modes for advertising their services. These are as follows: a) b) c) d) Banners Television By telephonic calls Catalogues and Print media

32

Strategies: Marketing strategy as a key part of the general corporate strategy marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will engage customers, prospects and competitors in the market arena for success. It is partially derived from broader corporate strategies, corporate missions and corporate goals. One needs to sketch a perfect road map or adopt a strategy to the destination and also need to follow the path strictly. The strategies applied to achieve the above mentioned targets are: Direct Marketing, cold calling, friends, references given by the Company and advertisements. There are also some other strategies which I found valuable are like Time management, Punctuality, Preplanning, never leave even single prospect, always be in touch with the previous customers. The most important thing is always create the URGENCY because in the market there are near about 14 Insurance sectors with L.I.C. and all trying to capture the market. MARKET SHARE OF PRIVATE PLAYERS Kotak Mahindra Tata AIG Aviva Life OM 3% 2% Max New York 4% Metlife Others Life ING Vyasa 3% 4% 6% 2% HDFC Standard 8% Birla Sunlife 8% Reliance Life 10% ICICI Prudential 22%

Bajaj Allianz 13%

SBI Life 15%

Market Share of Private Players

33

ORGANIZATION DESIGN AND STRUCTURE

CHAIRMAN OF THE BOARD RAHUL BAJAJ

MANUEL BAUER

SANJAY ASHER

NIRAJ BAJAJ

SANJIV BAJAJ DIRECTORS

HEINZ DOLLBERG

KAMESH GOYAL

RANJIT GUPTA

S.H. KHAN MANAGING DIRECTOR & CEO V. PHILIP

SURAJ MEHTA

34

FINANCE DEPARTMENT IN BAJAJ ALLIANZ

Bajaj Allianz Life Insurance Company Limited Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance Company and Bajaj Finserv. Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has over 119 years of financial experience and is present in over 70 countries around the world. At Bajaj Allianz Life Insurance, customer delight is our guiding principle. Our business philosophy is to ensure excellent insurance and investment solutions by offering customized products, supported by the best technology.

35

REIMBURSEMENT PROCESS IN BAJAJ ALLIANZ MAJOR ROLE PLAYS BY FINANCE DEPARTMENT TO SETTLE ALL THE CLAIMS

TABLE- 3: MANPOWER PARTICULARS OF BAJAJ ALLIANZ Executives Officers Workmen Sub-ordinate staff Part time sweepers Total 912 18427 21341 4693 2587 47960

36

INTRODUCTION TO PRESENT STUDY / METHODOLOGY

37

NEED / SIGNIFICANCE OF STUDY Every service sector like insurance company mainly aims to provide necessary service to the customers in order to earn profit and to survive in the market by meeting customers demand and make them satisfy. The employees must be at their foot to identify the problems, requirement and risk of the customers. Thus the employees need to be active at every point of time; thus HR has to play a major role to identify the suitable employees for such type of job. Along with employees the marketing department must promote the insurance products in an efficient manner in order to attract the customers and make them aware of the benefit derives from the use of such insurance products in order to compete in the market as the private players are increasing rapidly along with LIC. Effective recruitment process and marketing strategy leads to overall financial performance of the company, such financial structure must be made to settle the customers claims and provide proper maturity benefit. This particular research paper is developed to find whether the employees working in Bajaj Allianz are satisfy with the organization and provide effective job environment and whether the customers are satisfied with the service of the Bajaj Allianz and the financial data provides true and fair view to identify the capital and profitability structure and whether the claims and reimbursements are properly made as per the norms and rules of IRDA. OBJECTIVE OF THE REPORT Every project report is carried out with some specific OBJECTIVE in the mind. Objective is basically the purpose behind conducting a project and unless the objective is certain or specifically defined it is not understood what data has to be collected. Objectives of the project are nothing but what is to be learned out of this project report. Specific objectives of this Project Report To understand: 1) Various Human Resources tools used in handling the Recruitment process. 2) To have exposure of the recruitment process. 3) How effective the computer system or new technology used in the recruitment process system. 4) How the marketing department is working and taking steps for providing better service to the customers. 5) The methods are applying by the marketing department to promote their products.

38

6) To analyze the market share of the company and determine the problems if any and put own suggestions. 7) To analyze various past financial records such as Income and Financial statements to determine the financial position, working capital requirement, analytical analysis and profitability analysis. 8) The overall performance of the company and to understand the claim / reimbursement process of the company.

So in this project report I have made every effort to understand the above specified objectives keeping in mind the present scenario of the Recruitment process, marketing and financial performance of the company and collect necessary data on the basis of such study and analysis.

SCOPE OF THE STUDY In this project my scope of study relates with: Recruitment process system, which mainly studies the Human Resource aspect of the company. Customer satisfaction and benefits derives from the insurance products, studies the marketing aspect of the company. Financial performance of the company, mainly focus on the past financial records like Income statement and financial statement.

To cover the above scope of study I have visited various parts of Visakhapatnam city which includes Steel Plant area, Akkayapalem, MVP colony, Sagarnagar, Lawson Bay Colony.

39

INTRODUCTION TO RESEARCH DESIGN

40

RESEARCH METHODOLOGY Research Methodology is a systematic method of discovering new facts or verifying old facts, their sequence, inter-relationship, casual explanation and the natural laws which governs them. Research Methodology explained by Redman and Mory are as follows systematized effort to gain new knowledge Research Methodology is original contribution to the existing stock of knowledge making for its advancement. It is the purist of truth with the help of study observation, comparison and experiment. In short also covers the systematic method of finding solution to a problem is research. It also covers the systematic approach concerning generalization and the formulation of the theory. Different stages involved in research consists of enacting the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusion either in the form of solution towards the concerned problem or in generalization for some theoretical formulation. In Research Methodology, mainly Data plays an important role. The Data is divided in two parts: a) Primary Data. b) Secondary Data. Primary Data is the data, which is collected directly by direct personal interview, interview, indirect oral investigation, Information received through local agents, drafting a schedule, drafting a questionnaire. Secondary Data is the data, which is collected from the various books, magazine and material, reports, etc. The data which is stored in the organization and provide by the HR people are also secondary data, various information were taken out regarding that subject as well other subject from various sources and stored. DATA COLLECTION METHOD This research paper will be conducted by using the survey method research where participants answer questions administered through interviews or questionnaires. After participants answer the questions, researchers describe the responses given. In order for the survey to be both reliable and valid it is important that the questions are constructed properly. Questions should be written so they are clear and easy to comprehend.

41

The study will be conducted with the sample size of hundred participants for analyzing the customer satisfaction and sample size of 10 employees will be taken to analyze the employees recruitment process of Bajaj Allianz, where they will be answering the questionnaire such that researcher can analyze the answers and can conclude the working condition of the employees and their satisfaction statement and customer satisfaction statement. Questionnaire will be given are closed ended as the topic is related to individual satisfaction and open ended questionnaire will lead to great complexity for analysis. This research paper will also be conducted using secondary data where past financial data or records will be analyze with the help statistical techniques guided by Senior Branch Manager and Sales Manager to analyze the profitability ratio and the financial performance of the company.

COLLECTION OF DATA

PRIMARY DATA USING QUESTIONNAIRE

SECONDARY DATA

CUSTOMER SATISFACTION (SAMPLE SIZE 100) RECRUITMENT PROCESS (SAMPLE SIZE 10)

LAST FIVE YEARS INCOME STATEMENT AND BALANCE SHEET

42

LIMITATIONS OF THE STUDY Following limitations were faced during the study. 1) While designing the questionnaire it was kept in mind to gather more and more information from each target person. For this neither present nor descriptive questions could have served the purpose. Therefore the questionnaire contained in the close-ended questions. 2) The study was conducted in Bajaj Allianz in Visakhapatnam city, which has 100 to 200 insurance prospects only. The sample size was of 100 insurance care consultants only so that accuracy of data so collected could be absurd covered by circulation of questionnaire. 3) The accuracy of indicators given by the respondents may not be consider adequate as whether the language used in the questionnaire is understood by the respondent cannot be taken for granted. 4) The study is based on the information gathered from the insurance care consultants and various insurance customers, therefore in such case it is possible that the information gathered might be biased because they information given may not be exact. 5) Since the survey was limited to 100 customers it is rather difficult to give a precise conclusion but I have tried the best of my capability to give the conclusion on a comprehensive manner. 6) As time and tide waits for none so it is the case with this research. A much more detailed analysis could be done had there been more time spent for data collection. Due to lack of time data from all the places could not be collected. 7) The views of the respondent are likely to change as human nature is very dynamic. 8) The survey may not give the whole scenario of Indian market. 9) Some subjects/investors/respondents were not co-operative on their approach.

43

ANALYSIS AND INTERPRETATION OF DATA Effectiveness of Recruitment TABLE-4: Recruitment Satisfaction Options Response Percentage Satisfied 3 30 Good 3 30 Excellent 4 40 Total 10 100

Recruitment System
45 40 35 30 25 20 15 10 5 0 Not at all Satisfied totally satisfied Good Excellent

Response Percentage

Interpretation: From the above response it is seen that most of the employees are overall satisfied by the recruitment system in the company. They have clarity of the process. TABLE-5: Recruitment Process Options Response Percentage Yes 6 60 No 4 40 Total 10 100

44

70 60 50 40 30 20 10 0 Yes No Response Percentage

Interpretation: From the above response it is seen that majority of the employees feel that Recruitment process is documented in the company. However they can access whenever they want. 40 % of the people dont have knowledge about it.

TABLE-6: Documentation of Recruitment Process Options Response Percentage Clear 4 67 Vague 2 33 Total 6 100

80 70 60 50 40 30 20 10 0 Clear Vague Response Percentage

45

Interpretation: From the above response it seen that 67 % employees are having clear and understandable knowledge of the documented process of the recruitment. The other employees are finding it vague.

TABLE-7: Transparency of Recruitment system at all level Options Response Percentage Not at all 2 20 To some extent To great extent 6 60 2 20 Total 10 100

70 60 50 40 30 20 10 0 Not at all To some extent To great extent Response Percentage

Interpretation: From the above response it is seen that employees of the company has some doubts about the transparency of the Recruitment system. The company should investigate further.

46

TABLE-8: Uniformity of Recruitment Process Options Response Percentage Yes 3 30 Varies as per department 7 70 Total 10 100

80 70 60 50 40 30 20 10 0 Yes No Varies as per department Response Percentage

Interpretation: From the above response it is seen that recruitment process varies many of the times from the department to department so it helps the department heads to select the right person for the job as per his requirement and needs. TABLE-9: Constituents of department head in interview process Options Response Percentage Totally linked Partially linked Not at all Total 3 30 4 40 3 30 10 100

47

45 40 35 30 25 20 15 10 5 0 Totally linked Partially linked Not at all Response Percentage

Interpretation: From the above response it is seen that only few department heads are considered during the interview process and majority of the time they are partially linked, ie. They only have to set paper and decided the package. TABLE-10: Response of HR department on vacancy Options Response Percentage Slow 3 30 Quick 5 50 Excellent 2 20 Total 10 100

60 50 40 30 20 10 0 Not slow Slow Quick Very responsive Excellent Response Percentage

48

Interpretation: From the above response it is seen that more than 50 % the employees fells that the response is quick. But in few cases it is slow. TABLE-11: Satisfaction of written test Options Response Percentage Not at all 8 80 Total Satisfaction 2 20 Total 10 100

90 80 70 60 50 40 30 20 10 0 Not at all Satisfaction Total Totally good Excellent Satisfaction

Response Percentage

Interpretation: From the above response it is seen that majority of the employees find the written test not at all beneficial or advantage as it is time consuming. Only few agree to the test design. TABLE-12: Duration of written test Options Response Percentage Too short 1 10 Long 4 40 Too long 5 50 Total 10 100

49

60 50 40 30 20 10 0 Too short Not long Long Too long Response Percentge

Interpretation: From the above response it is seen that many times the duration of the test is long and the employees find it time consuming. The instant like insurance test for junior and new entry finds it long and time consuming.

TABLE-13: Test Evaluation Options Response Percentage Fair 2 20 Justified 8 80 Total 10 100

90 80 70 60 50 40 30 20 10 0 Fair Justified

Response Percantage

50

Interpretation: From the above response it is seen that the test evaluation is not done properly. There is bias in opinion while evaluating the paper. TABLE-14: Criteria of selection (Knowledge based) Options Response Percentage 31-50% 2 20 51-70% 5 50 71-80% 3 30 Total 10 100

60 50 40 30 20 10 0 20-30 % 31-50 % 51-70 % 71-80 % 81-100 % Response Percentage

Interpretation: From the above response it is seen that 51-70 % weight is given on knowledge. TABLE-15: Criteria of selection (Knowledge + Experience based) Options Response Percentage 71-80 % 7 70 81-100 % 3 30 Total 10 100

51

80 70 60 50 40 30 20 10 0 20-30% 31-50% 51-70% 71-80% 81-100% Response Percentage

Interpretation: From the above response it is seen that if Knowledge + Experience considered, then the majority of the employee gives weight on 71-80 %

TABLE-16: Criteria for selection (Experience based) Options Response Percentage 31-50% 3 30 51-70% 6 60 71-80% 1 10 Total 10 100

70 60 50 40 30 20 10 0 20-30 % 31-50 % 51-70 % 71-80 % 81-100 % Response Percentage

52

Interpretation: From the above response it is seen that if Experience considered, then the majority of the people have rated in between 51-70 % as experience criteria and other case experience is not given importance.

TABLE-17: Middle level awareness Options Response Percentage Not at all 4 40 To some extent Thoroughly known 3 30 3 30 Total 10 100

45 40 35 30 25 20 15 10 5 0 Not at all To some extent Thoroughly known Response Percentage

Interpretation: From the above response it is seen that information of standard Recruitment process is not communicated to middle level executive, sometimes it may be informed but not always.

53

TABLE-18: Major man power sources Options Response Newspaper Internal Recruitment Campus interview Firm or Agencies Total 1 3 30 2 20 4 40 10 100

Percentage 10

45 40 35 30 25 20 15 10 5 0 Newspaper Internal Recruitment Campus Interview Firm or Agencies Response Percentage

Interpretation: From the above response it is seen that majority of the employees are employed from the agencies and later from the internal process. The least preference is given to the campus interview and newspaper.

TABLE-19: Powerful method of the interviewing the candidate Options Response Telephonic Interview Personal Interview Video Conference Interview Total 3 4 40 3 30 10 100

Percentage 30

54

45 40 35 30 25 20 15 10 5 0 Telephonic Interview Personal Interview Video Conference Interview

Response Percentage

Interpretation: From the above response it is seen that the most powerful method of selection is Personal Interview and then Telephonic Interview and Video Conference Interview beneficial in case of long distance. TABLE-20: Selection on the basis of merit Options Response Percentage Yes 6 60 No 1 10 Cant say 3 30 Total 10 100

70 60 50 40 30 20 10 0 Yes No Can't say Response Percentage

Interpretation: From the above response it is clear that majority of the selection are based on merit.
55

OBSERVATION AND FINDINGS Bajaj Allianz Life Insurance Co. Ltd and Bajaj Allianz General Insurance is a leading Company in the market today. The HR department is having very strong base and while doing project in the company the observation and findings found by me are as follows: 1) The company has clarity of the recruitment process and they are doing well and recruiting correct candidates. 2) The recruitment process is centralized in the company. 3) The test duration for the senior level officer and fresher is too long, though is beneficial but time consuming. 4) The tests provided are online test and the evaluation of the test is also done by the Head office HR. 5) The evaluation takes time as they take print out of teat paper and gives marks. 6) The department head are not considered most of the time during the interview. The role of the head was to inform about the vacancy to HR. 7) Most of the time the criteria of selection are on the basis of the Knowledge + Experience. This is good for the company. 8) The company provides a good basis for the FRESHER, which is a positive side for both the concern. 9) The middle level employees of the Head office and the other branches are not aware of the recruitment process. 10) The personal interview is more beneficial than other method of the interview. 11) The company concentrates more on recruitment firm for the need of manpower. 12) The video camera is used for the interview as the time is less for interviewing the person. 13) The other branches have to give 15 days notice for the place vacancy. 14) The candidates selected for the job from all over India are not given training at the work place but at Head office and bare their expenses. 15) The selection of the candidate in Bajaj Allianz is done up to the mark, there is no biass view for other. 16) The data provided by other branches in the form of papers are slow in speed.

56

SUGGESTIONS 1) The recruitment process in Bajaj Allianz should be decentralized. The branch manager and HR person should have rights to carry out the recruitment process and must inform the head office and should get it approval. 2) The middle level employees should have knowledge of the recruitment process and the non HR employees should be given a HR manual. 3) The other department head should be involved in the interview process as he knows right person for the job of his department. 4) The selected candidates should be given training at their workplace by the trainer of the department. 5) The test duration should be kept short for the senior level employees so that they can concentrate more on their work. 6) The company should develop or provide software which should provide a test score as the test is over. So that time is saved in evaluation. 7) The company should concentrate on the personal interview as video conference interview cost more money and the candidates are more nervous.

57

ANALYSIS AND INTERPRETATION OF DATA Customer Satisfaction and Benefits TABLE-21: Long term savings Options Response / Percentage Life Insurance Fixed Deposit Mutual Funds Securities PO Savings Total 32 36 12 06 14 100

Securities 6% Mutual Funds 12%

Post Office Savings 14% Life Insurance 32%

Fixed Deposit 36%

Interpretation: From the above response it is understand that most of the public invest in Fixed Deposit for their long term savings and only those who want to secure their family from uncertain risk invest in Life Insurance to overcome the risk and take care for the family and very few select other forms of investments. TABLE-22: Life Insurance Policy Options Response Percentage Yes 30 94 No 02 6 Total 32 100

58

100 90 80 70 60 50 40 30 20 10 0 Yes No

Response Percentage

Interpretation: From the above response it is understand that from total of 32 respondents who are aware of Life Insurance as a form of long term savings majority of them has taken a Life Insurance to cover the risk and to protect them from such unwanted risk. TABLE-23: Source of Information about Life Insurance Options Response Percentage Newspaper Television Agents Bank Direct Sales Executive Friend Total 1 3 9 30 13 40 2 7 2 7 4 13 30 100

45 40 35 30 25 20 15 10 5 0 Newapaper Television Agents

Response Percentage

Bank

Direct Sales Executive

Friends

59

Interpretation: From the above response it is understand that the major source of information about Life Insurance are Agents/Field Sales Representatives and from Television. Many sales agents visit various customers and provides information about the benefit of Insurance and also various advertisements in television also provides important source of information, other sources are gather from friends/relatives, Bank and Sales Executives who contact selected customers and provides necessary information. TABLE-24: Reasons for not investing in Life insurance Products Options Responses Lack of awareness 17 Returns not lucrative 26 Promotional measures not attractive Not approached by the intermediaries Not affordable 41 Very Low (1-2) Average (3) Very High (4-5) Total Total %

42
28

100 100

100 100

46
29

38 40 56

33

100

100

39 28

21 16

100 100

100 100

60 50 40 30 20 10 0 Lack of awareness

Very Low

Average

Very High

Returns not lucrative

Promotional Measures

Not approached by intermediaries

Not affordable

60

Interpretation: From the above response it is understand that many customers are not aware fully about the usage and benefit of Life Insurance due to average returns and also other forms of investment available in the market and also people get confused were to invest as there are many private players in the market, also the future return is also uncertain. TABLE-25: Customer holding Life Insurance Policy Life Insurance Companies in India Life Insurance Corporation Of India SBI Life Insurance Company ICICI Prudential Life Insurance Company Bajaj Allianz Life Insurance Company Birla Sun Life Insurance Company Reliance Life Insurance Company HDFC Standard Life Insurance Company Max New York Life Insurance Company Kotak Mahindra Old Mutual Life Insurance Company Tata AIG Insurance Company Total Respondents (In Percentage) 31 11 18 11 4 8 6 4 3 4 100

Tata AIG Insurance Company Kotak Mahindra Old Mutual Life Max New York Life Insurance Company HDFC Standard Life Insurance Company Reliance Life Insurance Company Birla Sun Life Insurance Company Bajaj Allianz Life Insurance Company ICICI Prudential Life Insurance Company SBI Life Insurance Company Life Insurance Corporation Of India

Respondents (In Percentage)

10

20

30

40

61

Interpretation: From above it is understand that Life Insurance customers mainly trust Life Insurance Corporation of India and ICICI being a major banking sector, among private players Bajaj Allianz provide best satisfaction to its customer. TABLE-26: Buying of Life Insurance Policy Options Responses Brand image of the Company Excellent past record of performance Friend / relatives have bought from this company Marketing people insisted to buy Impress by companys Ads and Promotion Desire to try out a new company Very Low (1-2) 03(10%) Average (3) 09(30%) 02(7%) Very High (4-5) Total Total %

18(60%) 28(93%)
08(27%) 06(20%)

30 30 30 30 30 30

100 100 100 100 100 100

13(43%) 14(47%)
05(16%)

09(30%) 10(33%) 11(37%) 05(17%)

14(47%)
04(13%)

21(70%)

100 90 80 70 60 50 40 30 20 10 0

Very Low

Average

Very High

Brand Image Excellent Friend / Marketing of the past record relatives People Company have bought insisted to buy

Impress by Desire to try Ads & out a new Promotion company

Interpretation: From the above response it is understand that customer opting for life insurance mainly look for the brand image of the company and excellent past record of the company.
62

TABLE-27: Recalling of Ad by customer Options Response / Percentage Yes 83 No 17 Total 100

17% Yes No

83%

Interpretation: From the response it is understand that most of the people are able to recall any Ad about Life Insurance Products.

TABLE-28: Message derives from Insurance Ad Options Response Percentage Risk Coverage Protection for Long Term Tax Provision for Any Total The Family Savings Savings Old age Other 32 23 04 18 06 83 39 27 5 22 7 100

63

45 40 35 30 25 20 15 10 5 0 Risk Coverage

Response Percentage

Protection for the family

Long term savings

Tax Savings Provision for Any other old age

Interpretation: From the above response it is understand that from Life Insurance Ads customer get more information about risk coverage, family protection and how to get tax benefit. TABLE-29: Believe in advertisements Options Very Low Responses (1-2) Life Insurance must for family protection 7 Should go for compulsory long term savings 26 Should express love for family though life insurance 29 Can save tax through life insurance 12 Peace and mental satisfaction 30 Should have adequate risk coverage 6 Should have economic independence and dignity in old age 26 Average (3) Very High (4-5) Total Total %

41

52
28

100

100

46
33

100

100

38 49 36 68
34

100

100

39 34

100 100

100 100

100

100

22

44
64

100

100

80 70 60 50 40 30 20 10 0 Family Protection Long term savings

Very Low Average Very High

Love for Family

Tax savings

Peace & Mental satisfaction

Risk Dignity in old Coverage age

Interpretation: From above response it is clear that every customer through life insurance wants to get maximum risk coverage to protect their family. TABLE-30: Influence of Ad Sl. Options No. 1. Ad is only a good source of information 2. 3. 4. 5. 6. 7. 8. 9. Too many Ads by different companies create confusion The actual product buy is usually the same as advertised It is hard to make a buying decision from all the products Ads sometimes make high promises than actually experienced Get prompted to make further enquiries about the idea/product particularly its features and price The main reason a company comes out with Ads is to make more sales Advertising tempts people to think seriously about themselves and their family Like to buy products that have well known brand name Agree Disagree Total 72 75 18 48 62 69 42 35 63 28 25 82 52 38 31 58 65 37 100 100 100 100 100 100 100 100 100

65

10. 11. 12. 13.

Advertising and promotional costs unnecessarily raise the price which the consumers has to pay for a product Even with so much advertising it is difficult to know which brand is best The wide variety of competing products makes intelligent buying decisions more difficult Advertising usually present correct and true picture of the product

32 65 66 20

68 35 34 80

100 100 100 100

90 80 70 60 50 40 30 20 10 0 1 2 3 4 5

Agree

Disagree

10

11

12

13

Interpretation: From the above response it is understand that people accept those Ads which provides good information and benefit for them and disagreed when they find that the Ads provides great confusion in their buying decision and the products they purchase are not equal as per the Ads. TABLE-31: Purchase decision Options a) Consult other people to help choose the best alternative b) Try to buy the same brand that your friends/colleagues have bought c) Consult an Agent/Advisor before making final decision to buy Yes 42 33 71 No 58 67 29 15 Total 100 100 100 100

d) Base the decision on the brand value of the company and the product 85

66

90 80 70 60 50 40 30 20 10 0 a b

Yes

No

Interpretation: From the above response it is understand that customers mainly tries to get information from the Companys Agents/Advisor and mainly trust on the brand value of the company and its products.

TABLE-32: Selection of types and brands Options Not care in which one to buy Care great deal in which one to buy Total 91 100

Response 09

67

100 80 60 40 20 0 Not care which one to buy

Response

Care great deal in which one to buy

Interpretation: From the above response it is understand that every customer before purchasing any product care a great deal in which one to buy as they aims to gain from from such products, if they did not put any care then one can suffer certain loss, thus to avoid such loss and to earn good return every customers care a great deal in which insurance product has to be purchase and for this they consult various experts for to get proper advise. TABLE-33: Choice of brand Options Not at all important Very much concerned Total 69 100

Response 31

80 70 60 50 40 30 20 10 0 Not at all important

Response

Very much concerned

68

Interpretation: From the above response it is understand that majority of the customers concerned for brand image of the products and other who are in middle income and less income brackets did not think brand as important they only concerned about the usage and returns.

TABLE-34: Loyalty towards brand Sl. No 1. 2. 3. 4. 5. 6. 7. Options Stick with a brand usually buy than try something new If I like a brand, I switch from it just to try something different I got bored with buying the same brands, even if they are good When I see a new brand somewhat different, I make enquiries I rarely read Ads that just seen to contain a lot of information I feel the urge to buy something really different from the brands I usually buy I take chances in buying unfamiliar brands just to get some variety in my purchase Yes No Total 70 31 19 75 45 31 31 30 69 81 25 55 69 69 100 100 100 100 100 100 100

90 80 70 60 50 40 30 20 10 0 1 2 3 4 5

Yes

No

69

Interpretation: From the above response it is understand that majority of the customers stick to the particular brand and only tend to change the brand when after proper enquiry they realize that changing of brand will give more benefit. TABLE-35: Influence of Promotional Campaigns over brands selection Sl. No 1. 2. 3. 4. Options Remind you of the brand. I feel as though I were right there in the commercial expensing the same thing. I compare the brand with other competing brands on matter that are important This commercial leaves me with a good feeling about using the brand that I have bought. Yes No Total 60 62 77 75 40 38 23 25 100 100 100 100

80 70 60 50 40 30 20 10 0 1 2 3 4 Yes No

Interpretation: From the above response it is understand that through proper commercial customers can get information about the usage of various products and it helps them to select the best product among all the available products in the market.

70

OBSERVATION AND FINDINGS Bajaj Allianz Life Insurance Co. Ltd and Bajaj Allianz General Insurance is a leading Company in the market today. The Marketing department is having very strong base, the employees are linked with the customers and concentrate on the changing behavior of the customers. The company changes the life insurance products as per the requirement. While doing project in the company the observation and findings found by me are as follows: 1) Majority of the customers invest in Fixed Deposit rather in Life Insurance for the long term savings. Nearly 36 % invest in Fixed Deposit and 32 % invest in Life Insurance. 2) Customers investing money in Life Insurance mainly look for the following benefits: Risk coverage Family protection Tax benefits To gain maximum returns in the future 3) Majority of the customers mainly get information about Life Insurance through Agents and Advisor of the company 4) Majority of the customers purchase Insurance products such as Investment Gain and Money Back Plan rather ULIP and other plan as mention plans cover the family risk and guaranteed return on maturity. 5) Majority of customers trust those Insurance Companies which has excellent past records and has brand image such as Life Insurance Corporation of India, ICICI Prudential, and Bajaj Allianz. 6) The caption of Bajaj Allianz we learn from you and design Insurance solutions that help you lead a worry free life, make every person to belief on the products of Bajaj Allianz and hence Bajaj Allianz ranked no. 1 among all the private players in the market. 7) The marketing department of Bajaj Allianz focuses on strong Advertisement to influence the customers and provides them with proper information. 8) Bajaj Allianz recruits many Agents/Advisors and this Agent regularly visits many customers and tries to understand their needs and requirement and accordingly the company sales their Insurance Products which will definitely help the customers to cover all the risk and provides desired protection. 9) The market share of Bajaj Allianz is around 13 % among all the Private Players next to ICICI Prudential and SBI Life Insurance. 10) Bajaj Allianz also part of various NGO and do various charity such as Blood Donation Camp, distribution of clothes and books, this develop a trust among the customers for the company, and start invest to purchase insurance products.

71

SUGGESTIONS 1) As major respondents in the present world think to have life insurance policy is very essential there is lot of scope for insurance company. 2) Bajaj Allianz should try more to build trust among the public by making people aware of their investment is safe, high return on investment, tax benefits. 3) As more respondents are investing in Bajaj Allianz Life Insurance for getting high return on investments, the company should try to provide attractive returns on investments in future. 4) Bajaj Allianz Life Insurance should introduce attractive policies and also attractive bonus on policies to attract more potential customers. 5) I feel that only through advertisement and promotion will not able to get all the potential customer, the company should conduct various campaign for awareness program regarding risk coverage, family protection in order make the people realize the important of taking a Life Insurance. 6) The Agents/Advisors before selling a product must analyze the need and requirement of every customer as it varies from one person to another, it is not only to sale the product to the customers but to secure every customers from risk which is uncertain. 7) Majority of private insurance company tries to fixed high rate of premium which become difficult for young generation just secure job or other middle income customers to invest in such policy, hence Bajaj Allianz being a service sector should introduce certain policy which can afford by each and every one. 8) The Ads must be more specific in order to provide the exact information about what the customers want than a mere show. 9) Bajaj Allianz should develop Agents on the basis of location and appoint them to work in such region rather to go all over the places, as this will make them familiar with the people of that region and can able to provide better service to them. 10) Bajaj Allianz should offer certain extra gifts for the long term customers and also can provide some incentives if any customers bring their friends to purchase certain insurance products from the company.

72

ANALYSIS AND INTERPRETATION OF DATA Financial Performance and Analysis In every organization Finance is one of the essential parts to survive in the market, it is the blood of the organization. In every organization finance department must be strong to achieve efficient financial performance to compete with other competitors and survive in the market for long period. In Bajaj Allianz the finance department is very strong in handling all the major decision like fixing of policy amount, premium amount, disbursement procedures, investments process and many more financial aspects in order to bring profit. It is known that Bajaj Allianz has just completed 10 years of their service and within this short period they nearly cover 13 to 14 % of the market share and also Ranked No. 1 among the private players in the market, this achievement only become possible with the help of strong finance department which work effectively in order to bring more reputation for the company. It is fact that when Bajaj Allianz has started its service it was a big fall for the company as it continues to suffer loss for few years as LIC has captures the entire market and also the Satyam falls and Bombay blasts has made drastic downfall in the market structure, but still Bajaj Allianz continues their service and presently from last 3 4 years the company gained the loyalty of many customers and brings efficient profit for the company, this only becomes possible with the strong backup and hard work of the finance department of the company. In this report, I have concentrated the financial summary for the last five years and the comparisons of premium received, total operating expenses, profits/loss of the company, investments and Assets & Liabilities has been made which is elaborated below:

73

FINANCIAL SUMMARY ANALYSIS POLICY HOLDERS ACCOUNT TABLE-36: INCOME FROM PREMIUM: Years Premium Collected 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

53,452,422 97,253,110 106,245,213 114,197,137 96,099,487 74,837,954

Premium Collected
120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Premium Collected

Interpretation: From the above it is understand that the collection of premium increased at a rapid speed every year, there is slight downfall in the premium collected in the year 2010-11 due to growth of various other private players in the market and also many MNCs and other organizations recruiting employees also provides direct insurance as a form of incentives. TABLE-37: INCOME FROM INVESTMENTS: Years 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Investments Income 3.096,821 7,001,918 (31,148,700) 99,302,163 39,123,659 (394,473)

74

Investment Income
120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 -20,000,000 -40,000,000 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Investment Income

Interpretation: From the above it is understand that the companys investment income increase for years but during 2008-09 it experienced negative income as the market shares falls drastically due to sudden collapse of many reputed company and major attacks from outside countries. TABLE-38: OPERATING EXPENSES RELATED TO INSURANCE BUSINESS Years Operating Expenses 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

10,730,189 20,043,360 18,757,915 17,716,252 16,065,847 14,062,756

25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 2006-07

Operating Expenses
Operating Expenses

2007-08

2008-09

2009-10

2010-11

2011-12

75

Interpretation: From the above it is understand that in the initial stages the operating expenses are more for the company but in the later stages it declines rapidly due to the efficiency in the performance.

TABLE-39: PROFIT & LOSS ACCOUNT: Years 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Profit After Tax (7,17,033) (2,138,825) (7,06,812) 5,422,868 10,570,390 13,112,019

14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 -2,000,000 -4,000,000 2006-07

Profit After Tax

Profit After Tax

2007-08

2008-09

2009-10

2010-11

2011-12

Interpretation: From the above it can be explained that in the initial stages the company being a service sector suffers many loss due to introduction of new life insurance products which was not accepted by many population and the growth of most trusted company LIC makes it difficult for Bajaj Allianz to earn profits, but the strong team effort and the finance department support help the company to earn profits from the year 2009-10 to a greater extent.

76

BALANCE SHEET ANALYSIS TABLE-40: SHARE CAPITAL: Years 2006-07 2007-08 2008-09 2009-10 2010-11

Share Capital 1,503,680 1,507,090 1,507,090 1,507,090 1,507,090

1,508,000 1,507,000 1,506,000 1,505,000 1,504,000 1,503,000 1,502,000 1,501,000 2006-07

Share Capital

Share Capital

2007-08

2008-09

2009-10

2010-11

Interpretation: From the above it is clear that the share capital has been increases in the initial stages but remains constant in the later stages as the capital is sufficient to meet the overall activities. TABLE-41: FIXED ASSETS ANALYSIS: Years 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Fixed Assets 533,145 909,622 1,219,585 1,512,548 1,559,693 2,211,554

77

Fixed Assets
2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Fixed Assets

Interpretation: From the above it is understand that as the year progress the company purchase more assets in order to provide more facilities to its customers and also to make the employees to feel comfortable to work in the company. TABLE-42: CURRENT ASSET ANALYSIS Years 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Current Assets 5,052,519 5,095,331 5,381,386 5,298,538 8,217,555 9,746,988

Current Assets
10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2006-07 Current Assets

2007-08

2008-09

2009-10

2010-11

2011-12

78

Interpretation: From the above it is understand that the current asset of the company also increases every year, the highest being in the year 2010-11.

TABLE-43: CURRENT LIABILITIES ANALYSIS: Years 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Current Liabilities 8,190,780 10,516,714 8,485,865 11,178,937 10,569,104 12,023,681

Current Liabilities
14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2006-07 2007-08 2008-09 2009-10

Current Liabilities

2010-11

2011-12

Interpretation: From the above it can be explained as that the liability of the company fluctuates every year on the basis of claim settlement and employees settlement and others.

79

TABLE-44: NUMBER OF POLOCIES:

Life Insureres - No. of Policies in February, 2012

Reliance life Bajaj Allianz ICICI Prudential SBI Life HDFC Standard Max New York Birla Sunlife Tata AIG ING Vysya Met Life Future Generali Kotak mahindra Aviva Bharati Axa Life India First Aegon Raligare Shriram Life Canara HSBC IDBI Federal Canara HSBC Sahara Life DLF Pramerica 56,806 47,840 38,724 26,633 20,519 19,357 16,862 13,941 13,428 10,185 9,581 8,804 8,715 7,409 6,892 5,476 3,107 71,755 97,958 95,701 153,705 151,464

Interpretation: From the above graphical representation it is understand that Reliance Life Insurance Company giving a tough competition to Bajaj Allianz in this year 2012.

80

OBSERVATION AND FINDINGS

Bajaj Allianz being a reputed company it is observed that the Finance department plays a very important role in bringing Bajaj Allianz to the top. During this project various records such as last five years Profit & Loss Account, Balance Sheet and Financial Summary of the company has been analyzed to the greatest possible extent and the figures are compared in order to draw proper Financial Analysis, Activity Analysis and Profitability Analysis of the company. The following is the important observation and findings which I analyze during my project work. 1) It is known that the major sources of income of every Insurance Company is mainly comes from the premium received from the customers. It is observed that the premium received has increase systematically leading to effective financial performance. 2) The premium collection is increased from 11 % during 2006-07 to 25 % during 2009-10 3) It is find that the investment income of the company has increases rapidly throughout the last five years, it is only 2 % investment income receive during the year 2006-07 and increases to 67 % during 2009-10 4) It is observed that the working of financial department in cooperation with other department helps the company to achieve success over the period. 5) Through analyzing the Profit & Loss Account it is observed that the company suffers continuous loss from the last five years starting from 2003-04, the loss continuous still 2008-09, but finally with the efficient working of finance department the company start earning profit since 2009-10. 6) The company was able to maintain cost effectively as it is observed that the operating expense of the company is also start declining due to proper cost structure. 7) The company as starts earning more profit the value of fixed assets also start increasing as the company felt that as Insurance Business related to service organization well facility should be maintain and once the company earns profit it start investing to secure more financial assets to provide quality services to its customers by implementing quality facilities. 8) Due to rapid increase in current assets, investment income and profit of the company the liabilities of the company also start declining which shows a positive feature as the reimbursement process become effective and timely claim was made to customers. 9) Due to all these financial structure the company gain trust among the customers and thus during this year the company sales maximum policy in the month of February giving tough competition to Reliance Life Insurance and other Private players in the market.

81

SUGGESTIONS 1) From the above analysis I like to suggest the company that though the company starts earning more premiums but in the current years it starts declining. The reason behind is that many customers are not fully aware of the exact benefit of the insurance plans. 2) The company must look for better way to invest money in the market as it is noticed that during the past five financial year the company has experienced negative investment income, hence the finance department must calculate capital budgeting effectively and look for which type of investment were to invest will result in more earnings. 3) The company must explore more by making reimbursement process more effective in order to attract more customers and to reduce liabilities. 4) The operating cost should be control and other overheads like fixed and variable overheads must minimized in order to earn more profits. 5) The company should invest money in those market were quick returns is possible at higher rate, this can be achieved by performing more research. 6) Bajaj Allianzs finance department must in consultation with other risk managers and underwriters should develop more insurance products and the premium amount should be such that it covers all the overheads and keep margin for minimum profits 7) The company should identify various pricing method effectively, such pricing strategy of Live Insurance Products involves: a. Rate Making Policies b. Price Dispersion of Life Insurance Products NSP ___________________________________________ PVLAD of Rs. 1 for the premium paying Where, NSP Net Single Premium PVLAD Present Value of a Life Annuity

82

CONCLUSION From the project work I want to conclude that the overall Recruitment process in Bajaj Allianz is satisfactory. There are certain organization objectives both in short term and long term should be taken into consideration as a basic parameter for recruitment decision and need of the personnel area which will be beneficial to everyone in organization. There are minor modifications in the areas like documentation of recruitment process, other department head participation in interview, written test, evaluation of return test and use of latest equipment for interview etc to be made for which suggestions are given in the following paragraphs. As a matter of good HR practices leaving of employees should be prevented. But the company should carry out exit interview and take correct action to retain the employees in the organization. Once the employees leaves the organization process of Full and Final Settlement of employees should be completed quickly. The company should make the process of employee settlement fast as the documents reach the sales department and finance department. It is also notices that though Bajaj Allianz is performing well in the market but still it fails to provide full satisfaction to the customers. As at the time of selling insurance products in the market I had observed that many customers are not completely aware of the benefit of the Insurance and so it becomes difficult for an individual to sale an insurance product. But there are lots of opportunities available in the market as it is analyzed that nearly 80 % of our population are still without insurance policy, hence the market strategy must be implemented in order to explore more uncovered areas and tries to get more products to reach the target customers. The company should follow the market strategy on the basis of: R <<<< STP <<<< MM <<<< I <<<< C R Research STP Segmenting, Targeting and Positioning MM Market Mix I Implementation / Interaction C Control The Finance Department must raise more funds and invest money in such sectors that can bring positive income as it is observed that in last five years the company derives negative income from the income from investment. The company should plan properly to reduce operating cost and by reducing other overheads at least to earn some minimum profits, as though every Insurance company belongs to service sector but still they involves in performing certain business activities, so every business organization tends to earn minimum profit but not loss.

83

BIBLIOGRAPHY Kathleen Mortimer, (2001) "Services advertising: the agency viewpoint", Journal of Services Marketing, Vol. 15 Iss: 2, pp.131 146 G.S. Sureshchandar, Chandrasekharan Rajendran, R.N. Anantharaman, (2002) "The relationship between service quality and customer satisfaction a factor specific approach", Journal of Services Marketing, Vol. 16 Iss: 4, pp.363 379 Mathew Joseph, George Stone, Krista Anderson, (2003) "Insurance customers assessment of service quality: a critical evaluation", Journal of Small Business and Enterprise Development, Vol. 10 Iss: 1, pp.81 92 Kathleen Mortimer, (2008) "Identifying the components of effective service advertisements", Journal of Services Marketing, Vol. 22 Iss: 2, pp.104 113 Xiaoling Hu, Cuizhen Zhang, Jin-Li Hu, Nong Zhu, (2009) "Analyzing efficiency in the Chinese life insurance industry", Management Research News, Vol. 32 Iss: 10, pp.905 920 S.A. Aduloju, A.O. Odugbesan, S.A. Oke, (2009) "The effects of advertising media on sales of insurance products: a developing-country case", Journal of Risk Finance, The, Vol. 10 Iss: 3, pp.210 227 P.K. Gupta, (2011) "Risk management in Indian companies: EWRM concerns and issues", Journal of Risk Finance, the, Vol. 12 Iss: 2, pp.121 139 Strategic Direction, Vol. 25 Iss: 3, pp. 20-22

Books Human Resource Management - Anjali Ghanekar

Manual HRD Manual of Bajaj Allianz.

84

Websites www.bajajallianz.com www.irda.gov.in

85

ANNEXURE

86