BHAGWANTPURAM

Session: 2009-2011 A TRAINING REPORT

ON

COMPARATIVE ANALYSIS OF INSURANCE PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE CO. LTD. WITH OTHER LIFE INSURANCE COMPANIES
Submitted in Partial fulfillment for the award of the degree of MASTER of BUSINESS ADMINISTRATION UNDER THE SUPERVISION OF MR.RAJEEV SHUKLA (SR. BRANCH MANAGER) BAJAJ LIFE INSURANCE CO. LTD., BIJNOR

SUBMITTED TO: MR.NITIN SRIVASTAV

SUBMITTED BY: GAURAV CHAUHAN

HOD, MBA B.I.T, MUZAFFARNAGAR (U.P)

mba iiird sem. 0908470018

INDEX
S.No. Particulars 1. 2. 3. 4. 5. 6. 7. 8.
9. 10. 11. 12. 13.

Page No. 4 5 6-8 9-14 15-19 20-44 45-54 55-60 61-62 63-64
65-67

Acknowledgement Introduction Need for Life insurance Company Profile Product Profile Comparative analysis Research Methodology SWOT Analysis Suggestions Conclusion
Appendix

Data Analysis
Bibliography

68-80
81

Acknowledgement

The pleasure that follows the successful completion of an assignment would remain incomplete without a word of gratitude for the people without whose cooperation the achievement would have remained a distant dream. So I would like to extend my immense in debtness to all of them who have guided and motivated me throughout my research project. I sincerely thank to all of them for their valuable contribution without which this project report would have not reached its goals. I sincerely wish to acknowledge a deep sense of gratitude to Mr.Rajeev Shukla (Sr. Branch manager,Bajaj Allianz Life Insurance Co. Ltd ; Bijnor) for giving me an opportunity to undergo summer training in their company. I am grateful to Mr. Shalabh Chaudhary (Sales Manager) for his valuable guidance and encouragement during the preparation of my summer training report. I will be failing in my duty if I dont accord a mark of respect towards all the staff members of Bajaj Allianz, who were very supportive & friendly through my training tenure. I would also like to extend my thanks to Mr. Nitin Srivastav(HOD) & Mr.Gaurav Rajput my project guide and to all my faculty members in management department.

INTRODUCTION
Our Plans Arm You For Tomorrow... At Bajaj allianz Life, there is nothing we hold higher than life itself. We therefore view our plans not as tax saving devices but as a means to add protection to life. We believe in enhancing the very quality of life, in addition to safeguarding your security. Our products are designed in a way that helps you bear heavy expenses while building your home or providing for your children's education and marriage. We make sure your post retirement years are carefree and secure, ensuring your family and loved ones are protected against financial difficulties in the event of a premature death. Depending on your personal needs, priorities and individual

responsibilities, you can go for a Protection, Saving or Investment plan. If you are not sure of which plan would suit you best, you could use the Life Maker, an application we developed for that very purpose.

WHY DO I NEED LIFE INSURANCE?

Thats a common question. Why would you need Insurance? Simply put, Life brings with it many surprises, some pleasant and some not so and a Life Insurance Plan ensures that you are better prepared to face uncertainties. How? ways: In a number of

Protection
You need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. It is a thoughtful business concept designed to protect the economic value of a human life for the benefit of those financially dependent on him. Thats a good reason. Supposing you suffer an injury that keeps you from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected.

Retirement
Life insurance makes sure that you have regular income after you retire and also helps you maintain your standard of living. It can ensure that your post-retirement years are spent in peace and comfort.

Savings and Investments

Insurance is a means to Save and Invest. Your periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy can come in really handy at the time of your childs education or marriage! Besides, it can be used as supplemental retirement income!

Tax Benefits
Life insurance is one of the best tax saving options today. Your tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned!

Superior Technology

In order to ensure speedy and accurate processing of your needs, we have established world class technology, with renowned insurance software, which networks all our offices and intermediaries

Using the Web, policies can be issued from any office across the country for retail products

Unique, user friendly software developed to make the process of issue of policies and claims settlement simpler (e.g. online insurance of marine policy certificate)

Unique Forms of Risk Cover

Film insurance Event management cover Sports & Entertainment Insurance Package

Risk Management- Our Expertise

Our service methodology is tried, tested and Proven the world over and involves:

Risk identification: Inspections Risk analysis: Portfolio review and gap analysis Risk retention Risk Transfer: To an insurer as well as reinsurer (as required) Creation of need based products Ongoing dialogue

10

COMPANY PROFILE
Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz Life Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct Life Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 147 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany. In its first year of operations, the company has acquired the No. 1 status among the private nonlife insurers. As on 31st March 2006 Bajaj Allianz Life Insurance maintained its leadership position by garnering the premium income of Rs.1285 crore. Bajaj Allianz has made a profit after tax of Rs.52 crores. Bajaj Allianz today has a network presence in over 100 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune. In the first half of the current financial year, 2006-07, Bajaj Allianz garnered a premium income of Rs. 842 crores, achieving a growth of 35% and Net profits rose to Rs.27 Crores.

11

Vision
To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry. To be the number one insurer for creating shareholder value

Mission
As a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money.

A Partnership Based on Synergy

Bajaj Allianz Life Insurance Company offers technical excellence in all areas of Life and Health Insurance as well as Risk Management. This partnership successfully combines Bajaj Auto's indepth understanding of the local market and extensive distribution network with the global experience and technical expertise of the Allianz Group. As a registered Indian Insurance Company and a capital base of Rs. 147 crores, the company is

Achievements

Bajaj Allianz has received ,"iAAA rating, by ICRA Limited, an associate of Moody's Investors Services, for Claims Paying Ability.This rating indicates highest claims paying ability and a fundamentally strong position.

Indias Most Respected Companies the Business World's Most Respected Companies survey 2006, has ranked "Bajaj Allianz Life Insurance, No.2 this year, in the insurance sector.

12

Bajaj Auto Limited

Bajaj Auto Limited is the largest manufacturer of two and three-wheelers in India and also one of the largest manufacturers in the world. Bajaj Auto has been in operation for over 55 years. As a promoter of Bajaj Allianz Life Insurance Company Ltd., Bajaj Auto has the following to offer: Vast distribution network. Knowledge of Indian consumers. Financial strength and stability to support the insurance business. Visit Bajaj Auto's Website www.bajajauto.com

Allianz AG, Germany

Allianz AG is in the business of General (Property & Casualty) Insurance; Life & Health Insurance and Asset Management and has been in operation for over 110 years. Allianz is one of the largest global composite insurers with operations in over 70 countries. Further, the Group provides Risk Management and Loss Prevention Services. Allianz has insured most of the world's largest infrastructure projects (including Hongkong Airport and Channel Tunnel between UK and France), further Allianz insures the majority of the fortune 500 companies, besides being a large industrial insurer, Allianz has a substantial portfolio in the commercial and personal lines sector, using a wide variety of innovative distribution channels. Allianz AG has the following to offer Bajaj Allianz Life Insurance Company Ltd. : Set up and running of Life insurance operations New and improved international products One of the world's leading insurance companies

13

 More than 700 subsidiaries and 2 lac employees in over 70 countries worldwide Provides insurance to almost half the Fortune 500 companies Technology Visit Allianz AG website www.allianz.com

Other similar businesses

The promoters have also incorporated a Life insurance Company in India, called Bajaj Allianz General Insurance Company Limited to provide life insurance solutions. Visit Bajaj Allianz General Insurance Website www.bajajallianz.co.in

The Bajaj Allianz Difference

Business strategy aligned to clients' needs and trends in Indian and global economy / industry Internationally experienced core team, majority with local background Fast, decentralised decision making Long-term commitment to market and clients

Trust
At Bajaj Allianz, we realise that you seek an insurer whom you can trust. Bajaj Auto Limited is trusted name for over 55 years in the Indian market and Allianz AG has over 110 years of global experience in financial services. Together we are committed to provide you with time tested and trusted financial solutions that provide you all the security you need for your investments.

14

Underwriting Philosophy
Our underwriting philosophy focuses on :

Understanding the customer's needs Underwriting what we understand Meeting the customer's requirements Ensuring optimal coverage at lowest cost

Claims Philosophy

The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims processing. We pride ourselves on a friendly and open approach. We are focused towards providing you a hassle free and speedy claims processing.

Claims philosophy is to : Be flexible and settle fast Ensure no claim file to be seen by more than 3 people Check processes regularly against the global Allianz OPEX (Operational Excellence) methodology Sold over 1 million since inception.

Customer Orientation
At Bajaj Allianz, our guiding principles are customer service and client satisfaction. All our efforts are directed towards understanding the culture, social environment and individual insurance requirements - so that we can cater to all your varied needs.

15

Experienced and Expert Servicing Team

We are driven by a team of experienced people who understand Indian risks and are supported by the necessary international expertise required to analyse and assess them. Service engineers located in every major city .

16

PRODUCT PROFILE

17

PRODUCT PROFILE
What are these plans? Protection plans safeguard your income and your familys financial future in case you are not around. They shield you from heavy economic loss and reduce the impact of financial risk on you and those dependent on you. Conquering Life Saving plans act as a compulsory savings instrument for families when the premium is paid regularly. They work as long-term savings, enhanced by tax benefits, which give you the financial strength to achieve your life goals. Capital unit gain ,Child gain , . Investment plans act as wealth creation instruments helping to create big estates for the family. It is a long-term investment, free from the risk of market swings. At the end of the term, you or your family can enjoy added returns on investment. Powering Life, One Life . Retirement plans can ensure that your post-retirement years are spent in peace and comfort. They make sure that you have regular income after you retire and also helps you maintain your standard of living.

18

CAPITAL UNIT GAIN Guaranteed Maturity Benefits (Payments in Case of Death and at on Maturity). Flexible maturity benefits option Build in Wavier of Premium Benefit

ELIGIBILITY : Minimum entry age : 18 years, Maximum Entry age 55 year, Maximum maturity age: 65 years.

TERMS :
10 20 years.

19

20

*CHILD 1. 2. 3.

GAIN PLAN

Regular Cash Returns The Cash Bonus Advantage Money back plan with loan facility

ELIGIBILITY : TERMS : 16 years 20 years 24 years. Minimum entry age : 12 years, Maximum Entry age 49 year, Maximum maturity age : 65 years.

21

POWERING LIFE
1. 2. 3. Safe investment with high Tax free returns. Customizable premium payment term Enhancing life cover

ELIGIBILITY : Minimum entry age : 18 years, Maximum Entry age 60 year, Maximum maturity age : 70 years.

TERMS : 10 years 15 years 20 years.

22

COMPARATIVE ANALYSIS OF INSURANCE PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE CO. LTD. WITH OTHER LIFE INSURANCE COMPANIES

23

Features\Companies Bajaj Allianz Plan Name Min/ Max Age at entry Capital Unit Gain 0 (risk commences at age 7)- 60

ICICI Prudential Life Teme Super 0/65

Max Age at maturity Min/Max Premium Premium Type

70 10,000/No limit Regular

75 18,000/No Limit Regular

Min/ Max Sum Assured

Death Benefit

Min 0.5* term* AP, max y* AP where y for base cover or base cover with Accidental death &/or TPD rider is 0- 30 31-35 3640 41-45 46-55 56-60 100 85 70 50 30 20 Y for base cover with any other rider or with more than one rider MAX (5,0.5* policy Term) Before Age 7 Degular premium F. V & Top-Up FV. To be set off by partial

Min SA = 0.5 *term* Annualised premium, s.t. min of 100,000

Birla Sun Life New Classic Life Premier 30 days to 30 yrs for whole life plan, 40 for 30 yrs term, 50 for 20 yrs term and so on. 70 yeats. Min Annual prem of Rs. 25000 Limited (up to 5 yrs) or Regular as per term of the plan Min SA 2 lacs. Max SA No limit

Tata AIG Invest Assure ll 30 days to 45/55/60 yrs (depending on term)

15,20,30

Regular

SA is a multiple of AP. Multiple depends on entry age and term of the policy and policy holder gets a choice

SA net of permissible withdrawals or FV whicherer is higher. 24

Before age 5 only FV Btwn age 5 & 60 higher of FV or SA less withdrawals

SA less permissible withdrawals or FV whichever is higher.

withdrawals as mandated.

Before age 7 it is the FV.

Flexiblity in Death Benefits Maturity Benefit Partial Withdrawals

None

None

in last 2 yrs prior to date of death.After age 60 higher of FV or SA less all withdrawals m,ade after age 58. NA

Fund Value After 3 years. Min Rs 5000. Min FV 1.5 annual premium have to maintain. Provided age attainrd age attained is 18 yrs. Any time after 3 yrs. S.t. Surrender charges applicable only on the capital units. 1(1/1.05)^N, N=Lower of outstanding policy term or 20 yrs

Fund Value, settlement option After 3 years. Min Rs 2000.

Fund Value After 3 years or LA attaining majority, whichever is later. Min Rs 10,0 00; Min FV Rs 25,000.

Increase allowed subject to U/W. Fund Value After 3 years . Min Rs 10,000. 4 withdrawals allowed per yr. Min FV 1 annual premium. Surrender charges applicable. Anytime after 3 yrs . Charges 100% firs 3 yr reducing thereafter. No charges after 6 yrs (20,30) & 5 yrs (15).

Full Surrender

After 3 yrs. Charges after 3 & 4,yrs are at 2% & 1%resp. No charges from yr 5 onwards.

Charges applicable in the first 6 years.

25

26

Features\ Companies Plan Name aMin/Max Age at entry Max Age ar maturity Min/Max Term Min Max Premium Premium Type Min/Max Sum Assured

Bajaj Allianz Capital Unit Gain 0 (risk commences at age 7)- 60 70 10, theron customer selectable term, For minor(18-entry age) 10,000/No limit Regular

Aviva Easy Life Plus 18-50 60 10,15,20,25

HDFC Standerd Endowment plus 18-65,55 with riders 75 without riders, 65 otherwise 10-30

SBI Life Horizon ii 0-60 70 10/40(for minor lives min term is 10 or 18- entry age) 12,000/100,000 Regular; Over the term of the plan 1.2 lakh/10 lakh

6000/50000 Reguler

Rs 10,000

Death Benefit

Min 0.5*term*AP, max y*AP where y for base cover or base cover with Accidental death &/or TPD rider is 0-30 31-35 36-40 41-45 46-55 56-60 100 85 70 50 30 20 Y for base cover with any sther rider or with more than one rider Max (5, 0.5* policy Term) Before age 7Regular Premium F. V. & Top-Up F. v. if any Above7: Higher of SA or FV.

Regular; Over the term of the plan 10*AP for 10, 15 Min Term & 20 yr terms. term*0.5*AP 12.5* AP for 25 Max up to yr term 40* AP

To be set off by partial withdrawals as mandated.

In yr 1, 110% of AP or FV whichever s higher; From yr 2 onwards, higher of Fund Value & SA. In case of Accidental death, higher of SA & FV+addtnl SA

SAwithdrawals in last 2 years plus FV whichever is higher.

FV+SA, for age below 7, FV only

27

Flexibility in Death Benefits

None

None

Maturity Fund Value Benefit Partial After 3 years. Min Withdrawals Rs 5000. Min FV 1.5 annual premium have to maintain. Provided age attained is 18 yrs.

Full Surrender

Fund Value; settlement option Allowed after 3 After 3 yrs years. Min Rs 10,000. Withdrawal is allowed till FV after charges is greater than equal to annual premium under the plan. Any time after 3 yrs. 1After 3 years S.t.Surrender (1/1.05^N)*value 100% FV. charges applicable of initial units,at Before 3 urs only on the capital the unit price,on nothing is units. 1the date of payable. (1/1.05)^N,N=Lower surrender of outstanding policy term or 20 yrs 1-{1/1+x)}^N]* Value of accumulation units, at their unit price,on the date of surrender. The variable x varies with the number of completed years premiums paid at the date of surrender:

Increase or decrease in sum assured is not allowed. Fund Value

Increase/decrease in SA not

After 3 yrs. Two withdrawals in a year is free. Charges 1% on withdrawal amount.

After 3 yrs, provided at least 1 premium has been paid. 1% yr 4 onwards (on SV).

28

Features\Companies Bajaj Allianz Plan Name Min/Max Age at entry Max Age at maturity Min/max Term Capital Unit Gain 0 (risk commences at age 7)- 60 70

ICICI Prudential Life Time Plus 0/65 75

Birla Sun Life Flixi Save plus 30 days to 60 years 75 yrs 10 to 0 years

Kotak Safe Investment plan ll 0-65 75 10-30

Min Max Premium

10,thereon 10-30 yrs customer selectable term, For minor(18entry age) 10,000/No limit 20000/300000

Premium Type

Regular

RP

Single or regular

Min/Max Sum Assured

Death Benefit

Min 0.5*term* AP where y for base ckover or base cover with Accidental death &/or TPD rider is 0-30 31-35 3640 41-45 46-55 56-60 100 85 70 50 30 20 Y for base cover with any other rider or with more than one rider MAX (5,0.5*Policy Term Before Age 7Regular

Min SA= 0.5*term Annualised premium

Min SA-For SP plan 125% of the SA,2 lacs for term upto age 70 and 100,000 otherwise. Max SA-No limit

10,000/No Limit For regular prem, 50,000 for ltd. Pay Regular & Limited payment; 3,5,6,7,10,15 & over term Greater of 5*AP or 0.5*Term*AP

SA + FV,only FV before age

Higher of SA less FV,jGFV or SA withdrawals

29

Premium F.V. 7 & Top-Up F.V. if any Above 7: Higher of SA or FV. To be set off by partial withdrawals as mancatem.

less withdrawals made in last 2 years. Up to age 60. After age 60,higher of FV GFV,SA less withdrawals made after age 58. Before age 1 year, only FV

Flexibility in Death Benefits

None

Decrease in SA is allowed but not increase.

Maturity Benefit Partial Withdrawals

Fund Value After 3 Years Min Rs. 5000. Min FV 1.5 annual premium have to maintain. Provided age attained is 18 yrs. Any time after 3 years S.T. surrender charges applicable only on the capital units 1-

FV; with settlement option After 3 years Min Rs. 2000

Increase in SA from 6th policy year, once in 5 years, min SA increase Rs.50,000. Higher of FV of Guaranteed GFV maturity value After 3 Years in a year 2 withdrawls are free of charge.

made in last 2 years prior to death, or FV which ever is higher + funds in Supp A/C(top-up account) DB to be set off by partial withdrawals made 2 yrs prior to death before age 60 and by all partial withdrawals made after age 58 Increase or decrease in sum assured is not allowed.

Full Surrender

After : 3 yrs. Charges after 3,4,5 & 6 yrs are at 8%, 6%, 4% & 2% resp. No. charges from yr 7

If surrendered in first 3 years, SV paid out after 3 years. No charges.

Allowed only from top-up account anytime after 3rd yr. Thereafter charges are 3% in yr 4, 2%, yr 5,1% in yr 6 and 0% in yr 7 onwards. Allowed only from top-up account, anytime after 3rd yr. Thereafter charges are 3%

30

(1/1.05)^ N, N= onwards. Lower of outstanding policy term r 20 yrs

in yr 4, 2% in yr 5, 1% in yr 6 and 0% in yr 7 onwards.

31

FEATURE COMPARISON OF UNIT LINKED PLANS : ELIGIBILITY & BENEFITS Features / Companies Plan Name Min/Max Age of entry Bajaj Allianz Capital Unit Gain 0 (risk commences at age 7 ) 60 Max Age at maturity 70 Min / Max Term 10, thereon customer selectable term, for minor (18 entry age) Term, For minor(18-entry age) Min Max Premium 10,000/No limit Primium Type Regular Min/Max Sum Assured Min 0.5*term*aP, max y*AP where y for base cover or base cover with Accidental death &/or TPD rider is 0- 30 31 35 36 -40 41 -45 46- 55 56- 60 100 85 70 50 30 20 y for base cover with any other rider or with more than one ride Max (5,0.5* policy Term) Death Benefit Before Age 7- Regular premium F.V. & Top-Up F.V. if any Above 7: Higher of SA or FV. To be set off by partial withdrawals as mandated. Flexibility in Death None Benefits Maturity Benefit Fund Value Partial Withdrawals After 3 years. Min Rs 5000. Min FV 1.5 annual premium have to maintain. Provided age attained is 18 yrs. Bajaj Allianz New Secure First 0 (risk commences at age 7 ) 60 70 Max life cover till age 70

Regular Regular Minimum SA = 2.5 times Annualised premium, OR 0.25* Term* Annualised premium, whichever is higher. Maximum SA= y times the annualized premium where y will be as per the following table: 0-35:20; 36-40: 15;41-55: 10;56-60: 5;60-65:2.5 DB is Twice the SA plus the Fund Value. Before age 7 it is the FV

No Fund Value; with settlement option After 3 years. Min Rs 1000.Min FV 1 annual premium. Top-Ups to have a lock-in of 3 yrs.

32

Full Surrender

Any time after 3 yrs. S.t. Surrender charges applicable only on the capital units. 1-(1/1.05)^N,N= cover of outstanding policy term or 20 yrs

Before 3 yrs 100% surrender penalty. After three years: Surrender th charges 4 Year: 10%;5th th year: 2%; 6 year onwards: No Charge.

33

Features\Companies Bajaj Allianz Plan Name Investment Funds CapitslUnit Gain 5 Funds 1)Equity Indes Fund ll 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Caap Fund Min Limit : 85%for equity index fund II and 80% equity growth and accelerator Mid cap

ICICI Prudential Life Time Super 4 Funds : 1) Maximiser 2)Balancer 3)Protector 4) Protector

Birla Sun Life New Classic Life Premier 6F 1) Assure 2) Protector 3) Builder 4) Enhancer 5) Creator 6) Magnifier Max Limit : 90% for Magnifier; 50% for creator; 35% for enhancer; 20% for builder; 10% for protector; Max limit : 25% for magnifier; 30% for creator; 30% for enhancer; 30% for builder; 30% for protector ; 50% for assure Max Limit; 20% for all;

Tata AIG Invest Assure ll 5 Funds 1. Equity 2. Income 3. Liquid 4. Aggressive Growth 5. Stable Growth 0-100% for equity; 50-80% for aggressive growth; 30-50% for stable growth; 0-100% for income; 20-50 % for aggressive growth ; 50-70 % for stable growth; 0-20% for liquid. 0-120% for short term fixed income

Equity

Min Limit : 75% for maximiser; max 40% for balancer,

Debt

Min Limit : 80% Max Limit ; for bond fund 25% for maximiser; Min 60% for balancer, 100% for protector; max 50% for preserver; Max limit : 20% for Bond fund, equity growth fund, accelerator madcap fund; 15% for equity index fund II, 100% for liquid fund.

Money market

Infrastructure

Switch Premium

3 free switches Allowed

Max Limit: 25% for maximiser; min 60% for balancer, 100% for protector; min 50% for preserver; None Max Limit : 25% for protector; builder; enhancer 4 free switch 2 free switch; amt is 2000 Not allowed Allowed; 2 free

None

4 free switches p.a. 2 free premium

34

redirection

Increase or decrease Allowed , s.t. Not allowed in regular premium limites Premium Holiday Cover continuance Available available Bonus Units None At 4% annual premium paid every 4th. Starting from 4th yr.

allocation in a redirections. year Subsequent redirections to be charged at 1000 per redirection. Not allowed Na Available; Available.

Guarantee component

None

Bonus Units

Loyality Not available. th addition on 10 PA and on every the policy anniversary thereafter. The LA will be 2% of your average policy fund in the last 60 months Loyality None additions as given above

35

Feature Comparison of Unit Linked Plans : Investment Funds & Flexibility Features\Companies Bajaj Allianz Aviva HDFC Standard Plan Name Capital Unit Gain Easy Life Plus Endowment Plus Investment Funds 5 Funds 1)Equity 2 Funds : 6 Funds Indes Fund II 2) 1) With Profit 1) Liquid Bond Fund 3) Funds; Fund. Liquid Fund 4) 2)Unit linked 2) Secure Equity Growth Fund Managed Fund 5) a ) Protector Fund Fund. Accelerator Mid b) Growth Fund; 3) Defensive Caap Fund c) Balanced Fund; Managed Option to put Fund; 100% in either 4) Balanced fund Managed Fund; 5) Equity Managed Fund 6) Growth Fund; Equity Min Limit : 85%for Min Limit : 20% Max Limit : equity index fund II for with profit 30% for and 80% equity funds and Defensive; growth and protector; 45% 60% for accelerator Mid cap for balanced; 30- balanced; 85% for growth 100% for growth and equity managed Debt Min Limit : 80% 70-100% for with 85% for for bond fund profit and 60- defensive; 100% for 70% for protector; 50-90% balanced; for balanced; 0- 40% for 50% for growth; equity Money market Max limit : 20% for 0-10% for with 100% for Bond fund, equity profit and liquid funds growth fund, balanced; 0-20% accelerator madcap for protector and fund; 15% for growth . equity index fund II, 100% for liquid fund. Infrastructure None None

SBI Life Horizon II 2 Funds (Composite) 1. Dynamic 2. Growth (Automatic Asset Allocation

Max limit 100%

Max Limit 100%

Max Limit 100%

None

36

Switch

3 free switches

2 free switch Not allowed

Allowed Allowed

Premium Allowed redirection Increase or decrease Allowed in regular premium limites

Automatic Asset allocation Not allowed

s.t. Not allowed

Premium Holiday Bonus Units

Cover continuance Available available None None

Increase / Not allowed decrease is allowed. Decrease is allowed after 3 yrs of premium payment and FV atleast Rs. 15,000. Available Available. Loyalty units None every year 0.10% every year as long as policy is in force. None None

Guarantee component

None

None

37

Features\Companies Bajaj Allianz Plan Name Investment Funds

Equity

Debt

Money market

Infrastructure Top-Ups

ICICI Prudential Capital Unit Gain Life Time Super 5 Funds 4 Funds : 1)Equity Indes 1) Maximiser ii Fund ll 2)Balancer ii 2) Bond Fund 3)Protector ii 3) Liquid Fund 4) Preserver 4) Equity Growth Fund 5) Accelerator Mid Caap Fund Min Limit : Min Limit : 85%for equity 75% for index fund II and maximiser ii; 80% equity max 40% for growth and balancer ii. accelerator Mid cap Min Limit : 80% Max Limit ; for bond fund 25% for maximiser ii; Min 60% for balancer ii, 100% for protector ii; max 50% for preserver; Max limit : 20% Max Limit: for Bond fund, 25% for equity growth maximiser ii; fund, accelerator min 60% for madcap fund; balancer ii, 15% for equity 100% for index fund II, protector; min 100% for liquid 50% for fund. preserver; None Min Rs. 5000; None Max unlimited, choice of multiplier for top

Birla Sun Life Flexi save plus 3 Funds 1) Protector 2) Builder 3) Enhancer

Kotak Save Investment Plan II 6 Funds 1. Money Market 2. Gilt 3. Bond 4. Balanced 5. Growth 6. Floating Rate Fund. Max Limit; 60% for balanced and 80% for growth;

Max Limit : 10% for protector; 20% for builder, 35% for enhancer;

Max limit : 30% 100% for Gilt; for all 3 funds. Bond; Floating rate, 70% in balanced; 60% for growth.

Max Limit; 20% 100% for money for all; mkt; 20% for gilit, bond, floating rate, balanced and growth.

Max Limit : 25% 70% for balanced for all. and 60% for growth. Min 5000, max Min Rs. 10,000. 50,000 or annual prem. Additional SA on top-ups

38

ups Switch 3 free switches

Premium redirection

Allowed

Increase or decrease Allowed , s.t. in regular premium limites

Premium Holiday Bonus Units Guarantee component

Cover Continuance Available None None

beyond 25% of RP. 4 free switch 2 free switch; Rs. Allowed No. amt is 2000 100 thereafter. charges. (bid/offer spread). Not allowed Not allowed Allowed No charges. (bid/offer spred) Can increase or Increase/decrease Increase/decrease decrease annual not allowed not allowed premium only on policy anniversary. Dose not after SA Available Available Available At 5% annual None None premium paid every 4th yr. Bonus units are 3%return on net SA guaranteed at guaranteed investible maturity premium

39

Features / Companies Plan Name Investment Funds

Equity

Debt Money market

Bajaj Allianz Capital Unit Gain 5 Funds 1)Equity Index Fund ll 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Cap Fund Min Limit : 85%for equity index fund II and 80% equity growth and accelerator Mid cap Min Limit : 80% for bond fund Max limit : 20% for Bond fund, equity growth fund, accelerator madcap fund; 15% for equity index fund II, 100% for liquid fund.

Bajaj Allianz New Secure First 4 Funds : 1) Nifty Index Fund 2)Balancer Fund 3)Income Fund 4) Equity Growth Fund Min Limit: 85% for Nifty Index & 80% Equity Growth Min Limit: 80% for Income fund Max Limit: 20% for Income Fund, Equity Growth Fund, 15% for Nifty Index Fund

Infrastructure Top-Ups

Switch Premium Redirection Increase or decrease regular premium Premium Holiday Bonus Units Guarantee component

Min Rs 5000; Max Min Rs 5000;Max unlimited, choice of cumulative top-up to be multiplier for top-ups within 25% of max cumulative RP 3 free swithches 3 free switches Allowed Allowed in Allowed , s.t. limits Not allowed. Cover Continuance Available None None Available. Not available None

40

Features\Companies Bajaj Allianz Plan Name Policy Charges

Charges on TopUps Admin Charges

ICICI Prudential Capital Unit Life Time Gain Super Ra.10,000For AP less 199,999 than 50000, 20 5.00% % in yr 1, Rs.200,0007.5% in yr 9,99,999 2,4% from yr 3 4.00% onwards. For >= 10,00,000 AP 50000 and 3.00% above, 18% in yr 1,7.5% in yr 2,4% from yr 3 onwards 2% n.a. Rs. 600 per annum inflating at 5% per annum

Birla Sun Life Classic Life Premier Yr 1: 13; 4% yr 2 & 3 onwards; 2% thereafter

Tata AIG Invest Assure ll Depends on Term of plan and Entry age of policyholder. Charge is at uniform 1% from the 3rd yr. 1.5%

2% of top-ups

Add switching charge

Rs 100 or 5% Rs 100 per switch amount switch whichever is lower. None None

Premium redirection charge Other Charges

Rs 60 per Rs 38 per month + 2/000 month SA in yr 1 inflating at 5% p.a. There would be an additional premium holiday charge of 3% during reneval period of 5 yrs. And 1.5% after that (if policyholder requests for premimum holiday) Rs 100 or Rs. 250 0.25% of switch amount whichever is higher. Rs 100; Rs 1000 None 3% of the Regular premium for

5% per annum None of the Capital Units during

41

the policy term subject to maximum of 20 years (Initial Mgmt Charge)

the first 5 years(Premium Holiday Charge)

42

Fund Management Charge

Equity Growth Fund 1.75% Equit Indes Fund ll 1.25% Bond Fund 0.95% Liquid Fund 0.95% Accelerator Mid Cap Fund 1.75%

Miximiser: 2.25% Balancer: 2.25% Protector: 1.5% Preserver: 0.75%

1% for Protector; Buider; Enhancer; 1.25% for Creator; Magnifier;

Equity: 1.75%; Aggressive Growth: 1.6% Stable Growth: 1.4%; Income: 1.25%; Short term Fixed Income: 0.90%

43

Features\Companies Bajaj Allianz Plan Name Capital Unit Gain Policy Charges Ra.10,000199,999 5.00% Rs.200,0009,99,999 4.00% >= 10,00,000 3.00%

Charges on TopUps Admin Charges

2% Rs. 600 annum inflating 5% annum Rs 100 or switch amount whichever lower. None

Aviva Easy Life Plus AP less than 7500 for annual & half yrly modes 7%, for other modes,8% AP 75009999 for annual & half yrly modes, 7% AP more than 10000 for annual & half yrly modes 5%, for other modes, 6% n.a.

HDFC Standard Endowment Plus Year1-60% for prem amount upto 2 lacs, 40% upto 5 lacs prem, 30% upto 10 lacs, 20 lacs and above. Top-up 2.5% Year 2 onwards 1%.

SBI Life Horizon ii 15% in yr 1; 10% in yrs 2 & 3; 5% thereafter.

1% Rs 20 per month

1% Rs 70 per month

per Rs 41 per month at inflating at per 5% p.a. 5% 0.5 of the switch amount or Rs is 500 whichever is lower None 5% per annum of the Initial Units during the policy term (Initial Mgmt Charge)

Add switching charge

24 switches free in a policy year and after that 100 per switch None After 6 partial withdrawals in a policy year will be charged@Rs.250 . Revival Charge@Rs 250

None

Primium allocation charge Other Charges

None First 2 withdrawals free. Fee of 1% is levied on subsequent withdrawals

5% per annum of the Capital Units during the policy term subject to maximum of 20 years (Initial Mgmt Charge)

44

Fund Management Charge

Equity Growth Fund 1.75% Equit Index Fund ll 1.25% Bond Fund 0.95% Liquid Fund 0.95% Accelerator Mild Cap Fund 1.75%

Regular FM charges 1% on with profits and protector fund; 1.5% on growth fund

0.8% for all funds

1.5% for Equity; 1.0% for Bond; 0.25% for Money market

45

Features\Companies Bajaj Allianz Plan Name Policy Charges Capital Gain

ICICI Prudential Unit Life Time Plus 25% in yr 1&2.3% in yr 3 & 4.1% from yr 5 onwards

Birla Sun Life Flexi save plus 65% in Yr 1 for regular pay; 7.5% in yr 2 & 3; 5% from yr 4 onwards. For regular prem plans. For SP 3% 2% Rs 22 per month. Annual charge of Rs 2.88/000 FA in first 10 yrs ( 2nd yr 15. 24) and it will increase thereafter. Rs 100

Kotak Safe Investment Plan II 14% in yr 1; 3.5% from yr 2 onwards

Charges on TopUps Admin Charges

Ra.10,000199,999 5.00% Rs.200,0009,99,999 4.00% >= 10,00,000 3.00% 2%

n.a.

2.5% 7% of AP for premium up to Rs 20.000 in Yr 1 and 4% thereafter. For premium above 20,000 it is 3% in yr 1 and 2% thereafter. & Floating Rate 0.22%; Balanced

Rs. 600 per Rs 60 per annum month inflating at 5% per annum

Add switching charge Primium allocation charge Other Charges

Rs 100 or 5% Rs 100 switch amount whichever is lower. None None 5% per annum of the Capital Units during the policy term subject to maximum of 20 years (Initial Mgmt Charge) One partial withdraws in a policy year would be free. All subsequent partial withdrawals in that policy year would be charged at Rs. 100 per withdraws.

None

0.50%; Growth 0.58% 2 Partial First 2 Withdrawals withdrawals are free of are free. charge, For Subsequent every additional withdrawals Partial are charged Withdrawal, a Rs. 500. charge equal to Rs. 100 subject to a maximum charge of Rs. 500 will be

46

Fund Management Charge

Equity Growth Fund 1.75% Equit Index Fund ll 1.25% Bond Fund 0.95% Liquid Fund 0.95% Accelerator Mild Cap Fund 1.75%

Maximiser ii: 1.5%; Balancer ii: 1% Protector ii: 0.75% Preserver: 0.75%

levied 1% for all 3 funds

None (Bid/offer Spread)

Features Companies Plan Name Policy Charges

/ Bajaj Allianz

Bajaj Allianz

Charges on Top-Ups Admin Charges

Capital Unit New Secure First Gain Ra.10,000Year Silver 199,999 1 30% 5.00% 2 Onwards 94% Rs.200,0009,99,999 4.00% >= 10,00,000 3.00% 2% 2% of top-ups

Gold 50% 95%

Platinum 76% 97%

Add switching charge Premium redirection charge Other Charges

Rs. 600 per Rs 30 per month, inflating at 5% annually annum inflating at 5% per annum Rs 100 or 5% Rs 100 or 5% of switch amount whichever is swore. switch amount whichever is lower. None None. 5% per annum None of the Capital Units during the policy term subject to maximum of 20 years (Initial Mgmt Charge) Equity Growth Equity Growth: 1.75%

Fund

47

Management Charge

Fund 1.75% Income: 0.95% Equit Index Nifty Index 1.25% Fund ll 1.25% Balancer: as per mix Bond Fund 0.95% Liquid Fund 0.95% Accelerator Mild Cap Fund 1.75%

48

RESEARCH METHODOLOGY

49

RESEARCH METHODOLOGY

a) b) c) d) e) f) g) h) i)

Research Objective Research Design Research Study Sampling Collection of Data Data Source Data Collection Method Field work Limitations of Survey

50

RESEARCH OBJECTIVE

The aim of this research is to study the awareness about Insurance in Bijnor. To find how many people prefer Insurance. The study also involves through field research of various people preference of Insurance over other system. The study also focuses on recalling the name of some l Insurance companies. The study reveals whether advertisements are used to market directly some Insurance. The studies rank the reasons in term of their importance for less popularity of Insurance. To find the number of ways to rise awareness about insurance in the society.

51

RESEARCH DESIGN

52

RESEARCH DESIGN
Research design is a conceptual structure with in which research is conducted. It constitutes the blue print for the collection, measurement and the analysis of the data. Research design consists of:a) b) c) d) A clear statement of research problem. Procedure and techniques to be used for getting information. Number of Respondents to be studied. Method to be used in processing and analyzing data.

Research Design is needed because it facilitates the smooth sailing of the various research operations, there by making research as efficient as possible yielding maximum information with expenditure of effort, time and money. Research design gives proper and structured way by which research becomes very smother and gives accurate information.

53

RESEARCH STUDY

Data collection source Data collection method Data collection

: : :

Primary Data Survey method Questionnaire

SAMPLING

Sampling Unit Sample Size Sampling Procedure

: : :

Customers 100 Random Sample

54

COLLECTION OF DATA

The study conducted mainly on the basis of primary data. Primary data are those which are collected fresh i.e. for the first time, and thus happen to be original in character. The main aim of collecting data is to search new ideas and give an incentive to environment. Primary data can be collected from primary sources. Primary sources may consist of customers. We have contacted all of the above for the collection of data, and had covered the whole Bijnor region.

DATA SOURCE
The data used in the project is mainly primary in nature. This information had been collected from personal interviews. Further data is secondary in nature. It is collected through companys literature and internet. More information and data is collected through discussion with Mr. Shalabh Chaudhary (Sales Manager) and other members of the company.

55

DATA COLLECTION METHOD

The method of collecting the data is basically the field survey. Thus this survey is descriptive in nature. I have divided my data collection in two segments which are as follows: 1) 2) 3) 4) Government Institution. Individuals. Shopkeepers Students

FIELD WORK
The questionnaire administering covered a period of 30 days. During the survey I had covered all prospective educated users and an appropriate data was collected through filling questionnaire by the appropriate person.

56

LIMITATIONS

57

LIMITATIONS OF SURVEY
The following are the limitations: 1. The findings are based on the response of 100 educated persons mostly younger and may it happen that their views may vary with educated persons or aged persons. 2. Some times due to lack of respondents support it has become difficult to get required information. 3. 4. 5. 6. 7. In our survey some people were not easily ready to fill the questionnaire. Some respondents might have provided biased or incorrect answers. Due to lack of training we are not able to convey the customer properly. Since the time period is very less to find out the market position of the company. Sometimes customers are not ready to cooperate to us.

58

SWOT ANALYSIS

59

SWOT ANALYSIS
SWOT is best appreciated in the context of marketing analysis and strategy formulation. Together a consideration of the environment, the sources, values, expectations and objectives provides the basis for marketing analysis, so as to arrive at a view of the organizations strategic situation. It helps to form a basis for deciding on the extent to which a change in the strategy is necessary. SWOT STANDS FOR: S W O T Stands for Strength Stands for Weakness Stands for Opportunity Stands for Threats

60

SWOT ANALYSIS OF INSURANCE INDUSTRY

STRENGTHS
Bajaj Allianz is one of the biggest insurance company in the world in Insurance sector. It gives more benefits then others. You can pay your premium from any where in the country. It provides fully medical checkup of the customer. It provides waver of premium in some policy. It provides rider benefits in all the policies. If you have any claim or you will get sum assured with in seven days.

61

WEAKNESS
It has branches in very few cities in India. There is no proper advertisement on electronic media in India Maximum customers are still loyal to other brands. Bajaj Allianz spends less on advertisement as compare to others.

62

OPPORTUNITIES
The insurance sector is growing rapidly. Bajaj Allianz to make those policies which will satisfy the need of customer. Bijnor city is growing at a very fast rate and the people are educated so company . Should focus in Bijnor region.

63

THREATS
LIC, ICICI are continuously doing their research and development toward there policies. Others private companies focusing advertisement in print media, electronic Media so company must go for the same.

64

SUGGESTIONS

65

SUGGESTIONS

1. 2. 3. 4.

Brand image play important role. Companies should develop their brand image. Company should distribute literature and information for better customer education. Making people aware about benefits of insurance. Increasing the number of qualified advisor to help the people and suggest them to buy insurance.

5. 6. 7.

Company provides easy mediclam to customers. Company must increase investment on T.V. it has become more effective and catchy. Special training should be organize to educate the customer about their flexible policies.

8.

As benefit is the major factor company should highlight INVESTMENT SCHEME in there advertisement. .

66

CONCLUSION

67

CONCLUSION
After analyzing the Bijnor Market. I came to know that this market is having lots potential customer. So company should make such product which will be able to satisfy different customer group.

As the people of Bijnor are educated and read news paper, watch T.V. commercial so company should make aware their different insurance scheme.

68

APPENDIX

69

QUESTIONNAIRE
Name: _______________________ Address:______________________ Employee/ Businessman__________ Q.1 Do you have insurance? (a) Q.2 Yes (b) No Age _____________ Ph. No.____________ Designation: ___________

In which company you have insurance? (a) (c) (e) LIC BAJAJ ALLIANZ ING VYSYA LIFE (b) (d) (f) ICICI Pru. UNIT TRUST OF INDIA. OTHERS.

Q.3

Which type of insurance you have? (a) (c) Life Insurance Others (b) Investment.

Q.4

Why do you purchase insurance? (a) (c) Tax saving Any other Reason (b) Future Protection.

Q.5

Why do you prefer Bajaj Allianz Life insurance? (a) (c) Provide more benefits (b) Other Benefits. High Interest Rate

Q.6

Do you think Bajaj Allianz give more benefits in comparison to others? (a) (c) (e) Highly Satisfied Average Not satisfied (b) (d) Satisfied Poor

Q.7

Do you think Bajaj Allianz Life insurance policies are flexible? (a) Yes (b) No (c) Cant Say.

70

Q.8

Do you think Bajaj Allianz Life provide easy Mediclaim? (a) (c) Yes Cant Say. (b) No

Q.9

Have you planned to buy insurance? (a) (c) Yes Cant Say. (b) No

Q.10

What factor do you consider while purchasing insurance? (a) (c) Brand image Premium. (b) Security

Q.11

From where do you know about Bajaj Allianz? (a) (c) Advertisement Friends (b) Holdings (d) Others

DATE: PLACE: SIGNATURE

THANKS

71

DATA ANALYSIS

72

Q.1

Do you have insurance?

No 15% Yes No Yes 85%

73

Q.2

In which company you have life insurance?

50 45 40 35 30 25 20 15 10 5 0

45

17 13 10

15

LIC

ICICI Pru

UTI

Bajaj IVL Allianz

Others

74

Q.3

Which type of insurance you have?

Life Insurance, 70

General insurance, 30

S1

Life Insurance

General insurance

75

Q.4

Why do you purchase insurance?

70 60 50 40 30 20 10 0 Tax Saving Future Protection Any other Reason 10 30 60

76

Q.5

Why do you prefer Bajaj Allianz Life insurance?

70 60 50 40 30 20 10 0 Provide More Benefit Easy Return Other Benefits 10 30 60

77

Q.6

Do you think Bajaj Allianz give more benefits in comparison to others?

45 40 35 30 25 20 15 10 5 0

40 30 20

Highly Satisfied

Satisfied

Average

Poor

Not Satisfied

78

Q.7 Do you think Bajaj Allianz Life insurance policies are flexible?

80 70 60 50 40 30 20 10 0

70

20 10

Yes

No

Can't Say

79

Q.8 Do you think Bajaj Allianz Life provide easy Mediclaim?

45 40 35 30 25 20 15 10 5 0

40 35

25

Brand Image

Security

Premium

80

Q.9

Have you planned to buy insurance?

Ca n 't S a y 14% No 6%

Y es 80%

81

Q.10

What factor do you consider while purchasing insurance?

45 40 35 30 25 20 15 10 5 0

40 35

25

Brand Image

Security

Premium

82

Q.11 from where do you know about Bajaj Allianz?

35 30 30 25 20 20 15 10 5 0 Advertisement Holdings Friends Others 20 30

83

FINDINGS

1. 2. 3.

Bajaj Allianz is still expanding its market share in Bijnor LIC & ICICI Prud. Is a major competitor of Bajaj Allianz Customers are more satisfied with the policy of Bajaj Allianz in comparison to the other competitors.

4. 5. 6. 7.

Future prospects of Bajaj Allianz is excellent in Bijnor market. Customer awareness about Bajaj Allianz in the market is moderate. Most people purchase insurance on the brand image. Mostly people purchase insurance for future protection. But they also purchase it to save their taxes.

8.

Mostly people are insured in Bijnor region.

84

BIBLIOGRAPHY

BOOKS : RESEARCH METHODOLOGY MARKETING MANAGEMENT MARKETING RESEARCH - C.R. KOTHARI - PHILIP KOTLER -DR. D.D. SHARMA

JOURNALS COMPANY JOURNALS

WEBSITES : www.google.com

85