A

COMPREHENSIVE PROJECT REPORT

ON
A Study on Comparative analysis of ULIPs Plans of Bajaj Allianz Life Insurance with
ULIP plans of the other selected companies.

Submitted to
S.R. LUTHRA INSTITUTE OF MANAGEMENT
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

In
Gujarat Technological University
UNDER THE GUIDANCE OF

Faculty Guide:

Company Guide:

Ms. Delnaz Variava

Mr. Niraj Desai

Assistant Professor

Branch Manager
(Bajaj Allianz Life
Insurance Co. Ltd.)
Submitted by

Mr. KANDARP K. PAREKH [Batch No. 2015-17, Enrollment No. 158050592063]

Mr. AJEN H. PATEL [Batch No. 2015-17, Enrollment No.158050592066]
MBA SEMESTER III
S.R. LUTHRA INSTITUTE OF MANAGEMNET 805
MBA PROGRAMME
Affiliate to Gujarat Technological University
Ahmadabad
November, 2016

II

III

IV

PREFACE
The insurance industry is one of the good growing industries in India. The
insurance industry helped financial growth of the any country. Bajaj Allianz
Life Insurance Company Limited gives better services to their customer and
better facilities regarding their insurance policy.
Indian Insurance sector is providing ULIP as insurance product which in the
combination of both life insurance and investment. Every life insurance
company provides ULIP police at different return and charges it will lead to
increase the competition. So there is need to study and analyze benefits of
ULPS plan provided by the insurance company through the structured
questionnaire. The comparative analysis of ULIP plan Bajaj Allianz Life
Insurance with HDFC Standard Life Insurance, Reliance Life Insurance, LIC
will be done by the secondary data.
We conducted this study from August, 2016 to November, 2016 in Bajaj
Allianz Life Insurance Company Limited. We made structured questionnaire to
achieve our objective of study. We will utilize financial data of insurance to
achieve secondary objective.

ACKNOWLEGEMENT
We take the opportunity to express the filling of gratitude towards Gujarat
Technological University for keeping industrial training as part of Master of
Business Administration Course.
It is an occasion of great pleasure and a matter of deep felt personal
satisfaction to present this complied statement of the project work undergone
at a company of great esteem Bajaj Allianz Life Insurance Company
Limited. We acknowledge with reference and offer our thanks with profound
gratitude to our esteemed management and respected academic director Dr.
J. M. Kapadia for giving sufficient encouragement and facility to do the
project work.
We are also thankful to our guide Ms. Delnaz Variava for helped us in
satisfactory completing our project, and we also thankful to all those who
directly or indirectly in the completion of our project work.
We wish to place on record the operation given us by Mr. Niraj Desai (Branch
Manager of the Bajaj Allianz Life Insurance Company Limited.) for making
capable of teaching new things, which are helpful in our practical life.
We also thankful to the staff of Bajaj Allianz Life Insurance Company Limited.
for a practical knowledge and help us for satisfactory completing my project
report. We take this opportunity to thank all those who directly or indirectly
were instrumental in the completion of our project work.

VI

EXECUTIVE SUMMARY
The report is about A Study on Comparative analysis of ULIPs Plans of Bajaj
Allianz Life Insurance with ULIP plans of the other selected companies. The
ULIP in insurance sector included the overview of current trends, major
offering, Global, National and State Level ULIP in Insurance industry. In
company profile, major topics were history of company, companys
achievement, products and services.
The objective of the project is to understand to compare ULIP plans of Bajaj
Allianz Life Insurance with HDFC Standard Life Insurance, Reliance Life
Insurance, Life Insurance Corporation on the basis of return, charges etc., to
analyze service provided to the customer of Bajaj Allianz Life Insurance and
to assess the satisfaction level of customers towards ULIP. The research will
be taken based on the descriptive research design and non-probability
convenience sampling method. The sample size will be approximately 60
respondents. The study will depend on primary and secondary data collection
and structure questionnaire.

VII

TABLE OF CONTENTS
o
o
o
o
o
o
Sr.
No.
1.
2.

3.

4.
5.

6.

Companys Certificate
Students Declaration
Institutes Certificate
Preface
Acknowledgement
Executive Summary
Particulars
Introduction
Industry Profile Name of the Industry
a. Global
b. National
c. State
d. PESTEL
e. Current trends
f. Major Players
g. Major Offerings
Company Profile Name of the Company
a. Company Profile
b. Organogram
c. Divisions/ Departments
d. SWOT
e. Market Position
Review of Literature
Research Methodology
a. Problem Statement
b. Research Objective
c. Research Design
i.
Type of Design
ii.
Sampling
iii.
Data Collection
iv.
Tools for Analysis
v.
Limitations of the Study
Bibliography

VIII

Page
No.
1
2-22
02-04
05-11
12
13-15
16-17
18-19
20-22
23-35
23-30
31
32
33
34-35
36-47
48-49
48
48
48-49

4
9
4
9

LIST OF TABLES
Table

Page

No.

No.

List of Insurance Companies

2.1

09

Company profile

3.1

23

Entry age

3.2

25

Maximum policy term

3.3

25

Premium payment term

3.4

26

Minimum premium

3.5

26

Maximum premium

3.6

26

Payment frequency

3.7

26

Minimum sum assured

3.8

26

10

Maximum sum assured

3.9

27

11

Entry age

3.10

28

12

Maximum sum assured

3.11

29

13

Loyalty addition

3.12

30

14

Summary of Literature Review

4.1

41-48

Sr. No.

Particulars

List of Figures
Figure

Page

No.

No.

History of Life Insurance in India

2.1

05

Organogram

3.1

31

Sr. No.

Particulars

1
2

IX

Chapter 1
Introduction

A financial risk management tool in which the insured transfers a risk of

potential financial loss to the insurance company that mitigates it in exchange
for monetary compensation known as the premium.
Insurance policies, a contract between the policyholder and the insurance
company, are of different types depending on the risk they mitigate. Broad
categories include life, health, motor, travel, and home, rural, commercial and
business insurance. The Insurance Regulatory and Development Authority,
an agency of the Government of India, is the regulatory body for the insurance
sector's supervision and development in India.
A ULIP is a life insurance policy which provides a combination of risk cover
and investment. ULIPs have gained high acceptance due to attractive
features they offer like flexibility, transparency, liquidity and a vast variety of
fund option. Unit linked plans are suitable for all customer profiles; however as
a general belief the risk averse investors tend to choose traditional plans and
an informed customer prefers a ULIP. ULIPs offer the kind of flexibility that
noninsurance product cant. ULIPs essentially combine the benefits of an
insurance policy and a market-linked investment. Investors can select a ULIP
with an equity-debt combination that is in line with their risk profile.
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.1111
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 is to understand to compare ULIP plans of Bajaj Allianz Life
Insurance with HDFC Standard Life Insurance, Reliance Life Insurance, Life
Insurance Corporation on the basis of return, charges etc., to analyze service
provided to the customer of Bajaj Allianz Life Insurance and to assess the
satisfaction level of customers towards ULIP.

Chapter 2
Industry Profile

2. (a) Global
Global Insurance Pools (GIP) GIP features a proprietary Markets Database
containing over 150,000 data points covering the largest 64 countries worldwide
and 99 percent of global insurance premiums. It includes key financial indicators
for every market, from 2000 to the present, and projections to 2020.The forecasts
in our paper are based on a consensus macroeconomic scenario provided by
Oxford Economics, and the informed judgment of McKinseys experts. The Oxford
forecast assumes average global nominal GDP growth of 6.3 percent for 2014
through 2020 (compared to 5.4 percent for the previous decade) and a gradual
increase in interest rates (which some would consider an optimistic view). The
scenario does not include potential macroeconomic and regulatory threats.
Technological trend in insurance industry
1. Embracing a cloud-based and on-premise infrastructure
Just two years ago, 84% of companies were operating in the cloud and more
than half of these companies reported that the cloud reduced the amount of
work from IT teams, says PC World. Still, IT teams in the insurance sector
struggled with what information is allowed by regulators to be stored via cloud
vs. on-premise. To add to this, the proliferation of legacy technology is
challenging the cloud-based-only approach. Many insurance entities are
running off of 40-year old administration technology designed to manage the
claims process, says a recent Trust Marque report. This kind of technology is
hindering innovation, but insurance agents are far from instantaneously
replacing such mainframe technology.
This year, as the insurance sector adopts a more streamlined workflow, we
can expect a significant increase in the use of technology that can be
operated via hybrid cloud and on-premise, ensuring ultimate flexibility for
customers and clients and strong adherence to the ever-changing
government regulations within the insurance environment.
2. Automating business processes where necessary
The key to moving toward a more digital environment and improving customer
service is to automate workflows where necessary. With the excessive use of
2

social media on the rise, and on multiple channels, customers expect ultimate
interaction and personalization from their insurance agents and brokers. In
fact, Forrester says online and cross-channel customer experiences will get
the most attention in 2016.
While standard face-to-face interaction may be less common between
insurance entities and their clients, relationships are still just as important, if
not more important than in the past. As such, insurance agents need more
time to interact with their customers and less time sorting papers, scrolling
through documents and staying on top of processing claims. This is why
automating workflows will be critical to moving the digital transformation
forward in 2016.
3. Choosing programs and systems with customers in mind
A Forrester-Accenture report recently dubbed this year the age of the
customer, where the customer experience is at the heart of the digital
movement. This means that technologies and new digital processes cant be
implemented with an administration-first mind set.
Take for example, something as simple as a digital application. While some
technology may truly require three different phone numbers or two different
emails from the client, how convenient is that for the customer filling out the
application? Todays customers expect a seamless, intelligent process from
insurance businesses. While this may signal some disruption to internal
processes for the agent, the end result must be to make programs easier to
use for the customer, not merely just the IT team. Keeping customers top of
mind in 2016 will be key to a successful digital transition.
Without question, the dynamic technology landscape and the growing
regulatory environment are changing the fundamental ways in which
insurance companies of all sizes do business and engage with customers.
The time is now for insurance entities to adopt more digital practices in order
to stay competitive against nimble, more innovative companies. Yet, while
many

insurance

businesses

recognize

the

importance

of

digital

transformation, very few companies are actually ready for the switch. Taking
3

into account IT infrastructure that supports the digital needs of clients and
customers, yet

upholds

government

regulations, all while

efficiently

automating daily workflows will put insurance agents on the right path towards
digital transformation

2. (b) National

Figure 2.1 History of Life Insurance in India

Insurance may be described as a social device to reduce or eliminate risk of
loss to life and property. Under the plan of insurance, a large number of
people associate themselves by sharing risks attached to individuals. The
risks, which can be insured against, include fire, the perils of sea, death and
accidents and burglary. Any risk contingent upon these may be insured
against at a premium commensurate with the risk involved. Thus collective
bearing of risk is insurance.
The industries, businesses and individuals are considerably by the services of
insurance organization.

The oldest form of insurance (12th century) is marine insurance. After

wards in 16th century fire insurance is started in Germany

The first registered life office was Hand in Hand Society established in
1696.

In India the first life insurance was started in the Bengal Presidency in
1818 knows as oriental life insurance company.

Experiencing so many ups and downs the insurance business was found
in changed shapes. Particularly after attaining independence and to the
more specific after nationalizing in 1956.

There was major change in the insurance sector after globalization in

2001. The private player in the insurance industry and ends the
dominance of LIC.

The different MNC s company of foreign country enters in the insurance

industry with the joint venture with Indian companies. Today total 11 private
life insurance companies are working in insurance industry.
During April 2015 to March 2016 period, the life insurance industry recorded a
new premium income of Rs 1.38 trillion (US$ 20.54 billion), indicating a
growth rate of 22.5 per cent. The general insurance industry recorded a 12
per cent growth in Gross Direct Premium underwritten in April 2016 at Rs
105.25 billion (US$ 1.55 billion).
Indias life insurance sector is the biggest in the world with about 360 million
policies which are expected to increase at a Compound Annual Growth Rate
(CAGR) of 12-15 per cent over the next five years. The insurance industry
plans to hike penetration levels to five per cent by 2020.
The countrys insurance market is expected to quadruple in size over the next
10 years from its current size of US$ 60 billion. During this period, the life
insurance market is slated to cross US$ 160 billion.
The general insurance business in India is currently at Rs 78,000 corer (US$
11.44 billion) premium per annum industry and is growing at a healthy rate of
17 per cent.
The Indian insurance market is a huge business opportunity waiting to be
harnessed. India currently accounts for less than 1.5 per cent of the worlds
total insurance premiums and about 2 per cent of the worlds life insurance
premiums despite being the second most populous nation. The country is the

fifteenth largest insurance market in the world in terms of premium volume,

and has the potential to grow exponentially in the coming years.
Insurance Sector Reforms
1. Structure Government
Stake in the Insurance companies to be brought down to 50%.Government
should take over the holding of General Insurance Corporation of India &
its subsidiaries so that these subsidiaries can act as independent
corporations
2. Competition
Private Company with a minimum paid up capital of Rs. 1bn should be
allowed to enter the industry. No company should deal in both Life and
General Insurance through a single entity. Foreign companies may be
allowed to enter in to the industry in collection with the domestic
companies. Postal Life Insurance should be allowed to operate in rural
market. Only one State Life Insurance Company should be allowed to
operate in each state.
3. Investment
Mandatory Investment of LIC Life Fund in government securities to be
reduced from 75% to 50%
4. Customer
LIC should pay interest on delays in payment beyond 30 days. Insurance
companies must be encouraged to set up Unit Linked Insurance Plan
(ULIP). Computerization of operation and updating of technology are to be
carried in the insurance industry. The committee emphasized that in order
to improve the customer services and increase the coverage of the
insurance; industry should be opened up to competition.
Insurance industry in India is broadly classified asLife Insurance: Policies protect individuals against the risk of life. Life 100
Insurance policies not only protects the insureds family against his death but
also provides a good means to avail tax benefit, avail loans from banks and
acts, as a good saving tool to meet future needs.

General Insurance: On the other hand protects the property and casualty by
covering losses from disasters and accidents thereby protecting from property
damage and liability, providing the means for victims to resume their lives and
businesses and contribute to the economy.
1. Auto Insurance

Two Wheelers Insurance

Car Insurance

Commercial Vehicle Insurance

2. Commercial Insurance

Agriculture Insurance

Fire Insurance

Industrial Insurance

Marine Insurance

Shop Insurance

3. Home Insurance
4. Life Insurance

Accident Insurance
a. NRI Accident Insurance
b. Personal Accident Insurance

Health Care Insurance

a. Medical Insurance
b. Critical Insurance

Travels Insurance

Entrance of Private Players in Insurance Sectors

India still has low insurance penetration of 1.95 percent, 51 st in the world.
Despite the fact that India boosts a saving rate of around 25 percent, less
than 5 percent is spent on insurance.

Insurance Companies
Life Insurers

Websites

Public Sector
Life Insurance Corporation of India
Private Sector
Allianz Bajaj Life Insurance Company Limited
Birla Sun-Life Insurance Company Limited
HDFC Standard Life Insurance Co. Limited
ICICI Prudential Life Insurance Co. Limited
ING Vysya Life Insurance Company Limited
Max New York Life Insurance Co. Limited
MetLife Insurance Company Limited
Kotak Mahindra Life Insurance Co. Ltd.
SBI Life Insurance Company Limited
TATA AIG Life Insurance Company Limited
GENERAL INSURERS
Public Sector
National Insurance Company Limited
New India Assurance Company Limited
Oriental Insurance Company Limited
United India Insurance Company Limited
Private Sector
Bajaj Allianz General Insurance Co. Limited
ICICI Lombard General Insurance Co. Ltd.
IFFCO-Tokio General Insurance Co. Ltd.
Reliance General Insurance Co. Limited
Royal Sundaram Alliance Insurance Co. Ltd.
TATA AIG General Insurance Co. Limited
Cholamandalam General Insurance Co. Ltd.
Export Credit Guarantee Corporation

www.licindia.com
www.allianzbajaj.co.in
www.birlasunlife.com
www.hdfcinsurance.com
www.iciciprulife.com
www.ingvysayalife.com
www.maxnewyorklife.com
www.metlife.com
www.kotakmahnidra.com
www.sbilife.co.in
www.tata-aig.com
WEBSITES
www.nationalinsuranceindia.
com
www.niacl.com
www.orientalinsurance.nic.in
www.uiic.co.in
www.bajajallianz.co.in
www.icicilombard.com
www.itgi.co.in
www.ril.com
www.royalsun.com
www.tata-aig.com
www.cholainsurance.com
www.ecgcindia.com

Table 2.1 List of Insurance Companies

The Government of India has taken a number of initiatives to boost the

insurance industry. Some of them are as follows:

The Union Budget of 2016-17 has made the following provisions for the
Insurance Sector:

Foreign investment will be allowed through automatic route for up to 49

per cent subject to the guidelines on Indian management and control,
to be verified by the regulators.

Service tax on single premium annuity policies has been reduced from
3.5 per cent to 1.4 per cent of the premium paid in certain cases.

Government insurance companies to be listed on the exchanges

Service tax on service of life insurance business provided by way of

annuity under the National Pension System regulated by Pension Fund
Regulatory and Development Authority (PFRDA) being exempted, with
effect from April 01, 2016.

The Insurance Regulatory and Development Authority (IRDA) of India

have formed two committees to explore and suggest ways to promote
e-commerce in the sector in order to increase insurance penetration
and bring financial inclusion.

IRDA has formulated a draft regulation, IRDAI (Obligations of Insures

to Rural and Social Sectors) Regulations, 2015, in pursuance of the
amendments brought about under section 32 B of the Insurance Laws
(Amendment) Act, 2015. These regulations impose obligations on
insurers towards providing insurance cover to the rural and
economically weaker sections of the population.

The Government of India has launched two insurance schemes as

announced in Union Budget 2015-16. The first is Pradhan Mantri
Suraksha Bima Yojana (PMSBY), which is a Personal Accident
Insurance Scheme. The second is Pradhan Mantri Jeevan Jyoti Bima
Yojana (PMJJBY), which is the governments Life Insurance Scheme.
Both the schemes offer basic insurance at minimal rates and can be
easily availed of through various government agencies and private
sector outlets.

10

The Uttar Pradesh government has launched a first of its kind banking
and insurance services helpline for farmers where individuals can
lodge their complaints on a toll free number.

The select committee of the Rajya Sabha gave its approval to increase
stake of foreign investors to 49 per cent equity investment in insurance
companies.

Government of India has launched an insurance pool to the tune of Rs

1,500 crore (US$ 220.08 million) which is mandatory under the Civil
Liability for Nuclear Damage Act (CLND) in a bid to offset financial
burden of foreign nuclear suppliers.

Foreign Investment Promotion Board (FIPB) has cleared 15 Foreign

Direct Investment (FDI) proposals including large investments in the
insurance sector by Nippon Life Insurance, AIA International, Sun Life
and Aviva Life leading to a cumulative investment of Rs 7,262 crore
(US$ 1.09 billion).

The Insurance Regulatory and Development Authority of India (IRDAI)

has given initial approval to open branches in India to Switzerlandbased Swiss Re, French-based Scor SE, and two Germany-based
reinsurers namely, Hannover Re and Munich Re.

11

2. (c) State
In Gujarat, a rise in fraud claims means you pay more for insurance:
The claim ratio claim pay by company divided by total premium collected
is at about 130 140% for Gujarat, while it is 60 70% for the rest of the
country.
When it come to insurance policy holder behaviour , it is among the bottom
ones due to bad behaviour. As a result insurance are now charging a higher
premium in the state then other part of the country, or not selling covers at all
in the state.
Average claims from Gujarat are twice than other states or national average.
The claim ratio claim paid by the company divided by total premium
collected is at about 130 140% for Gujarat, while it is 60 70% for the rest
of the country.
Insurance companies exercise prudent diligence in Gujarat to see that
fraudulent claims are not paid because it will burden the genuine policy
holders.
Insurance company have pegged Gujarat premium as highest in the country.
For an indemnity covers of Rs.2 lakh, a 30 years old will have to pay Rs.9500
in Rajkot and for the same cover it is Rs.8000 in Nagpur.
On an average, a Gujarat resident pays about 15% more for Insurance cover.
Some of the companies have developed stricter norms for payment of claims
too. There are specific locations in Gujarat like Surat and Mehsana where
percentages of claims are higher compare to the rest of the country.
There are three kinds of insurance product where frauds are prevalent in
Gujarat hospital cash, indemnity and personal accident. Hospital cash is a
low ticket size product, where agents collude with hospital and generate
various bills to dupe insurance companies. Insurers have blacklisted 50 60
hospitals in Gujarat.

12

2. (d) PESTEL

A PESTEL analysis is a describe framework of macro-environmental factors

used in the environmental scanning component of strategic management. It is
a part of the external analysis when conducting a strategic analysis or doing
market research, and gives an overview of the different macro-environmental
factors that the company has to take into consideration. It is a useful strategic
tool for understanding market growth or decline, business position, potential
and direction for operations.
PESTLE analysis is an important tool in the Insurance sector has it makes it
possible to improve the process of decision making. This is especially true if
you take into consideration world demands are changing and there is a need
to ensure insurance sector matches up to these changing needs. It also helps
focus on the bigger picture of future insurance industry.
In the insurance sector, this analysis also makes it possible to determine
environment changes that might impact the planning, management and future
financing of the industry. The following is an outline of the political, economic,
social, technology and environment factors that affect and influence the
education industry.
1. Political Factors
Within Indian political ambitions and rise of communalism, Based on this the
insurance companies might introduce political risk coverage in their policies.
In India the only area where customers consider to a take insurance cover is
on customs duty change but also on certain conditions. The term "political
risk" has a wider connotation than commonly understood or assumed. It
covers events raising not just from politics, but risks in the course of
international transactions. Based on this the insurance companies come up
with new policies with respect to the problems arising out of foreign legal
jurisdiction, political changes and also currency exchange difficulties being
faced by many developing countries.

13

2. Economic Factors
The interest rates at bank and also the provident fund variation affect the life
insurance industry as people are always attracted by a higher return. So
compared to this the lower return policy is not attractive to the customers.
Another factor which affects the life insurance industry is Unemployment, as
unemployed people would not have any earnings, savings would be
comparatively less which would mean less sales in-turn affecting the GDP of
the country and also the industry. Other factors which contribute to the
insurance industry are the natural factors like earthquakes, monsoons etc, as
these events lead to a lot of deaths, the insurance companies have to pay
claim against the policy.
3. Social Factors
Population is one of the major factors affecting the industry as the growth in
population will indirectly help the companies to capture more market with
more people. Life styles is another factor which affect the industry, the current
life styles of the people in India are increasingly becoming like nuclear
families, as both the parents would be working there would be a possibility of
an accident, which would mean more sales for the company In terms of life
insurance. Similarly people are interested in having a car and more cars in the
road would mean more sales for life insurance.
4. Technological Factor
Internet is becoming a fast house hold name in India where every house in
the urban area has a connection. The life insurance industry has taken
advantage of this with having many policies which can be flexible to the
customer. The customer can check the flexibility sitting at home and select the
best policy, pay the monthly instalments and everything would be done within
minutes. One more factor is the debit and credit card facilities where the
customer can pay the instalments easily. The life insurance industry is taking
a huge advantage of the technology advancement in the world and making it
their competitive advantage.

14

5. Legal Factor
Reforms in the Insurance sector were initiated with the passage of the IRDA
Bill in Parliament in December 1999. The IRDA since its incorporation as a
statutory body in April 2000 has fastidiously stuck to its schedule of framing
regulations and registering the private sector insurance companies. In India
the entry mode for a company to start up a new life insurance company is to
have a paid up capital of 100 corer rupees. Other rules got in by IRDA are
Mandatory Investments of LIC Life Fund in government securities to be
reduced from 75% to 50% GIC and its subsidiaries are not to hold more than
5% in any company.
6. Environmental Factor
Insurance companies in India are more affected by the environmental factors
which can affect the industry. In 2008, Tsunami was impact in the south western India.

15

2. (e) Current Trend

Increased insurance literacy
Through initiatives like The Insurance Consumer Bill of Rights and increased
resources, consumers and agents are both able to know their rights when it
comes to insurance and can better manage their insurance portfolios.
Increased cost of insurance (COI) on universal life insurance policies
Several companiesincluding Voya Financial (formerly ING), AXA and
Transamericaare raising mortality costs on in-force universal life insurance
policies. Some of the increases are substantial, but, so far, there has been an
impact on a relatively small number of policyholders. That may change if we
stay in a relatively low-interest-rate environment and more life insurance
companies follow suit. Here is what this means: As companies have been
subsidizing guaranteed interest rates (and dividend scales) that are higher
than what the companies are currently (and have been) earning over the last
few years, it is likely that this trend will continue.
Increasing number of unexpected life insurance policy lapses and
premium increases
For the most part, life insurance companies do not readily provide the impact
of the two prior factors I listed when it regards cash value life insurance
policies (whole life, universal life, indexed life, variable life, etc). In fact, this
information is often hidden. And this information will soon be harder to get; at
some point, regulators or legislators will need to step in, but it may be too late.
Monitor your policy, and download a free life insurance annual review guide
from the Insurance Literacy Institute
Pricing incentives
Life insurance and health insurance companies are offering discounts for
employees who participate in wellness programs and for individuals who
commit to tracking their activity through technology such as Fitbit. In auto
insurance, there can be an increase in discounts for safe driving, low mileage,
etc. Here is what this means: Insurance companies will continue to implement
different technologies to provide more flexible pricing; the challenge will be in
comparing policies. The best thing an insurance consumer can do is to
16

increase her insurance literacy. Visit the resources section on our site to learn
more.
Loyalty tax
Regulators are looking at banning auto and home owners insurance
companies from raising premiums for clients who maintain coverage with
them for long periods. Here is what this means: Depending on your current
auto and homeowners policies, you may see a reduction in premiums. It is
recommended that, in any circumstance, you should review your coverage to
ensure that it is competitive and meets your needs.
Insurance fraud
This will continue, which increases premiums for the rest of us. The Coalition
against Insurance Fraud released its 2015 Hall of Shame. Insurance
departments, multiple agencies and non-profits are investigating and taking
action against those who commit elder financial abuse. Here is what this
means: The more knowledgeable that consumers, professional agents
and advisers become, the more we can protect our families and ourselves.

17

2. (f) Major Player

1. Life Insurance Corporation of India
Life Insurance Corporation (LIC) is the biggest life insurer in India and totally
owned by the union government. It specializes in individual life insurance,
pension plans, and group insurance plans.
2. Tata AIG General Insurance
One of the major reasons behind the growth of Tata AIG General Insurance
has been its employees. The organization regards its employees as valuable
assets and takes pride in the fact that it has one of the finest workforces in the
general insurance industry.
3. Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance Company Limited provides life insurance and
general insurance in India. The company operates through Participating, NonParticipating, and Linked segments. It offers life insurance, health insurance,
and pensions to individual and group customers across the traditional and
unit-linked platforms. The companys product portfolio varies across
participating life, non-participating linked, non-linked life, health, and variable
insurance, annuity, and pension products.
4. New India Assurance
New India Assurance is one of the leading names in the Indian insurance
industry thanks to its pioneering efforts in several areas such as satellite
insurance. Yet another reason of its current stature is its presence it has a
substantial amount of offices in India as well as outside the country.
5. ICICI Prudential Life Insurance
ICIC Prudential Life Insurance has a big network comprising more than 1900
branches, which includes 1074 micro offices and more than 210,000 advisors.
It is one of the earliest life insurers to have received the AAA (Ind) National
Financial Strength rating from Fitch.
18

6. IFFCO TOKIO General Insurance

IFFCO TOKIO has a good network comprising 110 offices across the country
and 51 Strategic Business Units. It is also the sole insurer in India that has a
totally owned distribution channel named IFFCO-TOKIO Insurance Services
Ltd for catering its retail clients.
7. ICICI Lombard General Insurance
ICICI Lombard General Insurance operates in various domains such as
general

insurance,

insurance

claims

management,

reinsurance,

and

investment management and is also the biggest general insurer among the
privately held companies of India.
8. Oriental Insurance
Oriental Insurance is positioned fairly well when it comes to rankings and has
received top honours from some of the leading credit rating agencies of India.
AM Best, an international rating agency has given it a B++ rating, which is a
good ranking. It has 26 regional offices and at least 900 operating offices in
India.
9. Birla Sun Life Insurance
Birla Sun Life Insurance has always been a major contributor to the
development and growth of Indias life insurance sector and is presently rated
as one of the top 5 private life insurers in the country. It is also the first
financial services provider to have come up with business continuity plans,
Unit Linked Life Insurance plans and free look facilities in India.
10. HDFC Standard Life Insurance
HDFC Standard Life Insurance (now, HDFC Life) is one of the leading names
among the private enterprises functioning in India. It deals in both group and
individual insurance products. They also possess sufficient financial capability
to take care of long term investments in a resourceful and safe manner.

19

2. (g) Major Offering

The major services provide by the insurance company to their customer.
Portability of Health Insurance
Insurance Regulatory and Development Authority (IRDA) has issued
guidelines vide circular dated 9.9.2011 implementing portability of health
insurance policies amongst non-life insurance companies w.e.f. 1.10.2011.
The health insurance policy holder by virtue of the said circular can, at the
time of renewal, switch:- i) from one insurance company to another insurance
company of his choice; or ii) from one insurance plan to another insurance
plan with the same insurance company. By the process, the policy holder will
not lose the credits gained in terms of waiting periods for pre-existing
conditions, time-bound exclusions, etc. The Health Insurance Policy Holder
can at the time of Renewal of his/her policies can shift to another Insurance
Company for a similar product, if he is not satisfied with the present Insurance
Company for any reason, without losing the Credits gained, if renewed with
the existing company. This was not the case earlier; because change in
insurance company or plans amounted to loss of these credits and the
policies started as new, carrying all time limitations afresh. Thus Portability
helps to have a level playing field for all insurance companies and the
Customer can choose and compare benefits across products and Companies.
IRDA has also provided a portability portal facilitating easy data transfer
between the insurance companies.
Innovations in Health Insurance
With increasing demand, the health insurance industry has introduced
innovative products to enable the policyholder to plan comprehensive
protection against health eventualities by combining hospitalisation indemnity
products with supplementary covers or additional policies to meet specific
needs of the policyholder. There are products available that provide Daily
Hospital Cash benefit in the form of fixed daily allowance which could be used
to cover the incidental costs associated with hospitalisation (like travel and
stay costs of an attendant). These benefits are available either on standalone
20

basis or as optional component of a packaged health insurance policy.

Though most of the health policies offered are annually renewable, insurance
companies are finding innovative ways to establish long term arrangements
with the policyholder by offering long term policies or by incentivising timely
renewals, free health check-ups, loyalty vouchers for OPD covers, etc. The
innovative covers offered by the health insurance industry have to some
extent blurred the lines between life and non-life covers.
Variable Insurance products
Guidelines have been issued by the Authority on Variable Insurance products
(VIP) on 23rd November, 2010. Under the guidelines, all VIPs shall only be
offered under non-unit linked platform either as participating or nonparticipating products and shall not be permitted under unit linked platform.
The guidelines provide that benefits under these products would be payable
either on death or maturity. The guidelines further require that only regular
premium products with minimum policy and payment terms of 5 years are
allowed. Single premium, limited premium and group insurance contracts are
not allowed under these products.
Credit Insurance
Guidelines on Trade credit insurance policies were issued by the Authority
which is effective from 13th December, 2010, with a view to standardizing the
features of these products. All insurers are required to revise their products in
line with the File & Use guidelines and the trade credit insurance guidelines.
These guidelines specify that a policyholder should necessarily be a supplier
of goods and services and his coverage under the policy should be towards
loss incurred due to non receipt of trade receivables. The credit cover and can
only be issued on whole turnover basis covering all buyers.
Investments by the insurance sector
During 2009-10, the IRDA aligned the definition of infrastructure facility with
that of the Reserve Bank of India (RBI) thereby creating more room for the
insurers to invest in infrastructure sector. The Authority has also relaxed the
ceiling of investments in infrastructure to 20 per cent in a single investee
21

company as against 10 per cent earlier. The limit is applicable to the

combination of both debt and equity taken together without sub ceilings in
instruments satisfying certain criteria. An additional exposure of 5 per cent
has been permitted in debt alone with prior approval of the respective
insurers

Investment

Committee.

Further

strengthening

on

the

risk

management structure, IRDA has issued guidelines on the scope for Internal
and Concurrent Audit for investment operations of insurance companies to
monitor investment of both traditional and unit linked portfolio, at a closer level
with the aim of mitigating risk. Similar, stipulations are also applicable to nonlife insurance companies. The guidelines for audit of Investment Risk
Management Systems and Processes were also issued during the year.

22

Chapter 3
Company Profile

3. (a) Company Profile

Bajaj Allianz Life Insurance
Company Limited

Type

Private Limited

Industry
Founded
Headquarter
Area Served
MD &CEO
Product

Insurance Services
2 and, May 2001
Pune , India
World wide
Arjun Agarwal
Life Insurance

Total Asset
Parent
Website

INR 4,361,583
Bajaj Finserv , Allianz SE
www.bajajallianzlife.com

Table 3.1 Company Profile

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 General Insurance received the Insurance
Regulatory and Development Authority (IRDA) certificate of Registration
(R1113) on May 2nd, 2001 to conduct General Insurance business (including
Health Insurance business) in India. The Company has an authorized and
paid up capital of Rs 110 corers. Bajaj Auto holds 74% and the remaining
26% is held by Allianz, AG Germany.
Vision
"To

be the BEST Life Insurance Company in India. To Buy From, Work For &

Invest in

23

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.
Achievements

Bajaj Allianz Life Insurance has won the Marketing Excellence in BFSI
Sector Award at the National Awards for Marketing Excellence
2016.

Bajaj Allianz Life Insurance has received the Most Valued B2B Brand
award

in

Insurance

Sector at ASSOCHAM's

National

Brand

Summit & Excellence Awards 2016.

Bajaj Allianz Life Insurance received Global Marketing Excellence

Awards 2015 best use of social media in marketing

Bajaj Allianz Life Insurance has been conferred with Seal of Gold in
2016 for its "excellent" products in 2016.

Bajaj Allianz Life Insurance recognized as "The Economic Times

Promising Brand for 2015".

Bajaj Allianz Life Insurance has been awarded for "Best Life Insurance
Company in the Private Sector".

Product
1. Child Insurance Plan

Life Long Assure

Young Assure

2. Term Insurance Plans

E Torch Online Term Plan

I Secure

I Secure More

3. ULIP

Future Gain

Fortune Gain
24

4. Group Insurance

Group Income Protection

Group Term Life Insurance

5. Saving Solution

Income Assure

Save Assure

Guarantee Assure

6. Riders

Individual Riders

Group Riders

7. Retirement Solution

Retire Rich

Pension Guarantee

8. Micro Insurance

Bima Dhan Suraksha Yojana

Bima Sanchay Yojana

Unit Linked Insurance Plans

Bajaj Allianz Future Gain

Entry Age
1 Minimum
60 Maximum
Maturity Age
18 Minimum
70 Maximum
Minimum Policy Term
10 years
Table 3.2 Entry Age
Maximum Policy Term
Premium Paying Term

5 or 6

Other PPTs

Policy Term

10, 15 to 20 years

10, 15 to 30 years

Table 3.3 Maximum Policy Term

25

Premium Payment Term (PPT)

5 to 30 years
Table 3.4 Premium Payment Term
Minimum Premium (Modal Premium)
Frequency

Yearly

Premium (in Rs.) 25,000

Half-yearly

Quarterly

Monthly

Top - up

12,500

6,500

2,500

5,000

Table 3.5 Minimum Premium

Maximum Premium
Frequency

Yearly

Half-yearly

Quarterly

Monthly

Premium (in Rs.)

12,00,000

6,00,000

3,00,000

1,00,000

Table 3.6 maximum Premium

Premium Payment Frequency
Yearly, Half Yearly, Quarterly and Monthly
Table 3.7 Payment Frequency
Minimum Sum Assured
Age
Less than 45 years

10 times Annualized 0.5 * Policy term *

Premium
Annualized Premium

Greater
than
or 7 times Annualized 0.25 * Policy term *
equal to 45 years
Premium
Annualized Premium
Table 1.8 Minimum Sum Assured
For example, for an age less than 45 years and policy term of

15 years the minimum Sum assured available will be 10 times

Annualized Premium

22 years the minimum sum assured available will be 11 times of

Annualized premium i.e. (0.5*22* Annualized premium)

26

Maximum Sum Assured

X* Annualized Premium, where X is based on age at entry and Policy term as
mentioned below
Policy Term/ 1 - 35
Age at entry

36 - 40

41 44

45 - 50

51
above

10 & 15

15

15

10

10

Minimum
SA

16-20

15

15

10

Minimum
SA

Minimum
SA

21-25

15

12.5

Minimum
SA

Minimum
SA

NA

26-30

15

Minimum SA

Minimum
SA

NA

NA

&

Table 3.9 Maximum Sum Assured

Maturity Benefits
Under the Bajaj Allianz Future Gain, the maturity benefits will be the regular
funds value plus top up premium fund value as on the maturity date, provided
the policy is in force.
Surrender Benefits
You have the option to surrender your policy at any time.

On the surrender during the lock in period of first five years policy,
the regular premium fund value, less the discontinuance/surrender
charges plus the top up premium fund value. The discontinuance value
as at the end of the lock in period will be available to you as
surrender value

On surrender after lock in period of first five years of the policy. The
surrender value available will be regular premium fund value plus top
up premium fund value.

27

Death Benefits
In case of unfortunate death before the maturity date, provided the ULIP
policy is in-force, the death benefit payable to the nominee/ policyholder as a
lump-sum is:

The higher of the sum assured or regular premium fund value.

All the above as on date of receipt of intimation of death The death benefit is
subject to the guaranteed death benefit, which is 105% of the total premiums
paid including top-up premiums paid, if any, till the date of death.

If the death of the life assured occurs before attaining age of the 60
years, then the sum assured shell be reduced to the extent of any
partial withdrawal made from the regular premium funds during the two
year period immediately preceding the date of death of life assured.

If the death of the life assured occurs on or after attaining age of 60

years, the n the sum assured shell be reduced to the extent of the
partial withdrawal made from the regular premium funds during the two
years period before attaining age of 60 and all the partial withdrawal
made from the regular premium funds after attaining age of 60.

Bajaj Allianz Fortune Gain

Entry Age
1Minimum
63Maximum
Maturity Age
18Minimum
70Maximum
Policy Term
7Minimum
30Maximum
Single Premium
Rs. 50,000 Minimum
No Limit Maximum
Minimum Sum Assured
1.25 times single premium if Age at
1.1 times single premium if Age at Entry >= 45 yrs
Table 3.10 Entry Age

28

Entry

<

45

yrs

Maximum Sum Assured

X * single premium, where X is based on age at entry and Policy term as
mentioned below
Policy
Term

Age Entry
1 20

21 30

31 35

36 44

45 above

7 - 10

10

10

10

1.5

11 - 15

10

10

1.5

16 - 20

10

1.5

21 - 25

10

1.5

26 - 30

10

NA

Table 3.11 Maximum Sum Assured

Maturity Benefits
Under the Bajaj Allianz Fortune Gain, the maturity benefits will be the single
premium fund value plus top up premium fund value, if any, both as on the
maturity date, provided the policy in force.
Death Benefits
In case of unfortunate death before the maturity date, provided the policy is inforce, the death benefit payable to the nominee as a lump-sum (subject to the
Guaranteed Death Benefit) is:

The higher of the sum assured or single premium fund value PLUS

The higher of top-up premium sum assured or top-up premium fund

value, if any [All the above as on date of receipt of intimation of
death].

Loyalty Addition
Your policy will be entitled for loyalty addition as per the below table. The
addition expressed as a percentage of the single premium, will be added to
the single premium fund value at the maturity date of your policy.

29

Policy term

Single premium
50,000 to 99,999

1,00,000 & above

7 to 10

Nil

Nil

10 to 30

Nil

3%

Table 3.12 Loyalty addition

Surrender Benefits
You have the option to surrender your policy at any time.

On the surrender during the lock in period of first five years, the
single premium fund value, less than the discontinuance/surrender plus
top up premium fund value. The discontinuance value as at the end of
the lock in period will be available to you as surrender value

On the surrender after the lock in period of first five years, the
surrender value available will be single premium fund value plus top up
premium fund value.

30

3. (b) Organogram

Figure 3.1 Organ gram of Bajaj Allianz Life Insurance

31

3. (c) Departments / Divisions

1. Marketing / Sales Department
Major basic functions of every insurance company are launch policy and fulfil
the customer requirement. Providing For this purpose, Bajaj Allianz open
many branches to widen their network to ensure delivery of quality, best
customer service to suit the needs of its valued customers so that their reach
is wider and develop their business operations.
2. Claims Department
The Bajaj Allianz Life Insurance Company Claims Department is a skilled and
dynamic team with more than half of its members possessing over 15 years of
claims handling experience. Its mission statement is to provide superior
customer service to its insureds and affiliated companies, give value for every
expense and loss dollar, make thoughtful, well-reasoned claim decisions and
written assessments, and finally to provide timely and accurate reporting.
3. Operation Department
Important is clear understanding of insurance market conditions affecting the
products and their pricing. Major rate increases for coverage do not happen in
a vacuum. While past losses are important factors in setting rates, outside
market conditions, availability, and affordability of products are also very
important factors in the risk management decision.
4. Customer Service Department
It is important for customer representatives of insurance companies to focus
on customer experience and other aspects of the policy's life-cycle. To retain
customer it is important for to listen their query claims settlement and more
importantly, solve their problem and taking their feedback

32

3. (d) SWOT Analysis

This SWOT Analysis of Bajaj Allianz Life Insurance Co Ltd provides a
strategic SWOT analysis of the company's businesses and operations. This
free SWOT analysis shows strengths, weaknesses, opportunities and threats.
This SWOT analysis of Bajaj Allianz Life Insurance Co Ltd can provide a
competitive advantage.

Strength

Global exposure in Insurance through Allianz SE and Strong Local

Implementation by Bajaj

Has network across 200 towns

Fundamentally Strong with good paying Capabilities

Allianz AG is an insurance conglomerate globally and one of the

largest asset managers in the world, managing assets worth worldwide
with 115 years of financial experience in over 70 countries.

Weakness

Lack of penetration in rural area.

Smeller infrastructure as compare to established players.

Opportunities

Growing in rural market potential.

Urban youth with growing income.

Threats

Economic crisis and economic instability.

Entry of new NBFCs in the insurance sector.

Increasing awareness amongst people about securing future.

33

3. (e) Market Position

Top 10 Insurance companies in India 2016 are as below:
1. Life Insurance Corporation of India (LIC)
Founded in 1956 with an association of more than 245 insurance companies
and provident societies, it is the largest and sole public sector based
insurance company in India. The factor which makes it the best in the
business is the incredible statistics of claim settlement ratio, as high as 99
percent.
2. ICICI Prudential Life Insurance
ICICI Prudential Life Insurance witnessed an incredible increase of 107
percent in market share, in 2014. It is the first private life insurance company
in India to have received a National Insurer Financial Strength Ratings of AAA
from Fitch ratings. Being voted as Indias Most Trusted Private Life Insurer
for three years in a row have further consolidated peoples faith, and every
year millions of people are getting themselves insured by ICICI Prudential Life
Insurance.
3. Bajaj Allianz Life Insurance
Serving customers in more than 70 countries, the joint venture between Bajaj
Finserv and Allianz SE of Germany, insures people with the blend of global
expertise and local experience. For their excellence in Life Insurance industry,
they were awarded the SKOCH Financial Inclusion & Deepening Award
2014, in the Platinum Category.
4. HDFC Standard Life Insurance
Established in 2000, presently, this private firm has spread across 980 cities
in India. The cash settlement ratio is around 94 percent, which is
overwhelming. Recently, its become the first life insurance company in India
to offer pension plans to the new customers under the new IRDA regime by
launching HDFC Life Pension Super Plus and HDFC Life Single Premium
Pension Super.

34

5. Max Life Insurance

With a market share close to ten percent in the financial year 2014-15 and a
customer base of over three million, Max Life Insurance has landed in the
middle. They have been conferred with the prestigious Outlook Money Award
2015, in the category of Life Insurance Provider of the Year.
6. SBI Life Insurance
Leveraging from the 1500 SBI branches and over 60 full time life insurance
branches, the SBI life insurance has a current market share of an
overwhelming 20 percent. Owing to their previously established banking
industry, people have with all the necessary credentials about them.
7. Kotak Life Insurance
One of the most reputed and financial services organizations, Kotak Mahindra
is a leading player in the domain of life insurance.
8. Birla Sun Life Insurance
Birla Sun Life Insurance has a very large customer base of over two million
policyholders, 85000 empaneled advisors and distribution network in over 500
cities with 560 branches. They have a reputation of catering to their
customers with a very competitive interest rate. They have a pretty good claim
settlement ratio too.
9. Star Union Dai-Ichi Life Insurance Co. Ltd.
The consortium of Bank of India and Union Bank of India with the Japans 2nd
largest life insurance company, with its 1600 centers, especially, amongst
rural areas of India, is serving the Indian populace well. They are more
inclined towards the insurance needs of rural population, with the cash
settlement ratio over 90 percent.
10. PNB MetLife Insurance
The financial strength of MetLife and credibility PNB is often hailed as one the
fastest growing insurance company. The presence of PNB Met Life Insurance
has scattered across 600 cities with over 30 bank partners, since its inception.

35

Chapter 4
Review of Literature

KARUNA (2009) highlighted on Relevance of ULIPs as a good investment

tool to observe traditional life insurance plans offered by LIC took care of only
the insurance needs of people. However, with the ever changing demands of
customers a new product called ULIP was launched which combines the
benefits of insurance, investment and tax benefits. The author observed that
ULIPs were better suited to investors who have 15-20 years as their time
horizon to spread the expense over the longer period and reap the benefits.

Mr. Vetri Selvi (2010) Comparative analysis of ULIP plans with reference to
IDBI Fortis and HDFC Standard life insurance. To observe traditional life
insurance plans offered by LIC. To find out customer preference about the
ULIP plans. On the basis of this study, it concluded that, both the companies
are providing very good facilities to their customers. IDBI Fortis Life Insurance
is the one that is providing wavier of premium to its customer in case of
maturity and in case of death of the life assured, whereas HDFC standard life
insurance company is not providing this facility to its customers. Sample size
100 respondents sampling procedure non probabilistic convenience sampling.

AKULA, R. AND KANCHU, T., (2011), conducted a study on growth of ULIP

Policies in life insurance sector of India by comparing traditional (Life Fund +
Pension & General Annuity + Group Fund) and ULIP Policies. The objective of
the study was to observe the evolution of ULIPs in India, the growth of ULIPs
over traditional Policies, risk factors involved in ULIPs over traditional policies
and to suggest various measures to develop and stabilize the growth of
ULIPs. The period from 2007 to 2009 was covered in the study. The study
considered 5 companies to compare growth, namely, LICI, HDFC Standard
Life, ICICI Prudential Life, SBI Life and Bajaj Allianz Life. It was revealed from
the study that there was remarkable growth in ULIP compared to traditional
policies as the new private entrants targeted ULIPs for market penetration.
DR. M.G. Saravanaraj (2011) concluded that an empirical evaluation of
investor inclination on ULIP Insurance product with reference to Delhi City and

36

find out the customer awareness and preference for ULIP Life Insurance
product. To know the extent of amount the investor like to invest and what
basis they select the ULIP life insurance product. Sample size 200
respondents sampling procedure Simple random sampling method 10
respondents were selected through the pilot survey.

In majority of the

respondents home, the number of dependents size is limited1-2 to 2-4. Most

of the respondents are ready to recommend to their friends. The respondents
came to know the ULIP life insurance Plans mainly through the
Advertisements. While determining the future investment much importance
given to risk coverage. Among the competitors policy ICICI life insurance
plans stands at first. In ULIP Whole Life Insurance Plan selection Maturity
benefits criteria holds the first place.
DIVYA Y. LAKHANI (2011) had conducted a research study to identify the
relation between returns and Sensex, investors preference for ULIP and
Equity, growth and penetration of ICICI Prudential and the performance of
some of its ULIP schemes. The major finding of this study was that the NAV
for equity based fund options moves in tandem with Sensex while for debt
based fund options it is not much affected by the movement of Sensex.
N. RAJALINGAM (2012) the study was about ULIP a policy for balanced and
sustainable development in rural market. Life insurance is still indicating low
penetration levels and poor stability in rural India. Rural people option for
insurance policies and pay premium for limited period and let the policy to
laps neither benefited to them nor benefited to company. To overcome this
insurance company are introducing Unit Linked Insurance Policies which do
not compel on any specific regular premium. This study analysis the
preference and buying motivates of rural customers for ULIPs. There were
100 respondents in this study.
NAVNEET SETH (2012), the study was about factors behind rise and fall in
the sales of Unit Linked Insurance Plan in India. ULIP product have
dominated the Indian market very steadily but due to some limitation of
product like unasserted market return, misguidance by agent, no knowledge
to tot customer regarding the selection of investment funds etc have now put
37

the product at the back foot. But some steps taken by the IRDA like reduction
in the agents commission (now agents can have the maximum commission up
to 7-8% only), assuring the returns have now again made the demand of the
product and the confidence of the customers in it.

MITRA (2012), concluded that the risk factor of ULIP was directly related to
stock market. The NAVs are calculated on daily basis; NAVs of the units go
up and down depending upon the fund performance and factors affecting
capital market. ULIPs were subject to many charges like fund management
charges, mortality charges, premium allocation charges etc. It also stated that
the ULIPs were more risky than traditional policies. Studies had shown that
private companies were showing higher growth in ULIP as compared to
traditional policies. In ULIPs, risk was borne by investor not the insurer but
insurer should have a transparent method of calculating charges. Like mutual
funds, switching was also applicable according to risk appetite of policyholder.
Dr. G. NAGARJAN (2013), in the study researcher was intended to measure
the performance of ULIP offered by Indian private insurance companies. A
descriptive study was conducted on Unit-Linked Insurance Plans (ULIP) by
selecting top five Private Insurance Companies in India. The performances of
all the products were tested for their dependency on the performance of stock
market.
DR. RITESH DWIVEDI (2013), this research was about comparative analysis
of ULIPs of different companies. This study attempts to gauge the perception
of people upon ULIPs offered by different companies. The study aims to
identify the factors that affect customers decision to buy an insurance
product. As insurance was a way to manage risk whereas, ULIP are not risk
free investments, so a dilemma arises whether to avoid risk or to accept risk
because companies offer different risk options to manage funds. In this
perspective, the study has also collected the perception of people for taking
risks in ULIP. The findings of the study have identified the most trusted ULIP
option according to public perception and also the first preference of
38

customers. The study has compared and analysed creation plans of four
companies i.e. HDFC Life, Bajaj Allianz, Reliance Life, and ICICI Prudential.
PRASAD BHANAGE & JYOTI BHANAGE (2014), the study was about an
analysis of ULIPs of selected private Insurance firms. Through this analysis it
is observed that is also included the leading competitors in the insurance and
general insurance segment along with their market shares. As well as it needs
to understand the how the ULIP market share is increasing in stock and debt
market. There were 200 respondents in this study.
DR.V. THAMODARAN & P. KAMALUDEEN (2014), the research was about
investor behaviour on ULIPs market (Unit Linked Insurance Plans). With this
background a survey was conducted among 300 policy holders in Urban and
Semi Urban centres to study policy holder perception towards LIC of India.
Majority of the policyholders is influenced by self-followed by agents while
taking an insurance policy from LIC, significant number of policyholders felt
that the premium rate is high, majority of the sample policyholders prefer to
buy money back policy and policyholders expected a return of 11-15 percent
from their investments.
Dr. Prafulla Sudamane (2015) concluded that relationship between different
factors and their financial goal for opting Unit Linked Insurance Plans. The
study was to investigate the relationship of various factors such as Age,
Marital status, Type of family, Educational Qualification and Nature of
employment of investors with their financial goal for opting Unit Linked
Insurance Plans. Sample size 550 respondents sampling procedure snowball
sampling. Study results indicated that there was significant relation between
Marital Status, Age, Educational Qualification, Nature of employment and
family type with Primary financial goal for opting ULIP plans. Authors
suggested that the tendency of investors to switch between different options
should be studied in detail and the influence of the Companys brand image
on the performance of the ULIPs should be evaluated.

39

Sr.
No.
1.

Authors

Objective

Conclusion

Karuna (2009),

1. To observe

The author observed

Relevance of ULIPs

traditional life

that ULIPs were better

as a good

insurance plans

suited to investors who

investment tool

offered by LIC.

have 15-20 years as

2. To find out

their time horizon to

customer

spread the expense

preference about over the longer period

the ULIP plans.

and reap the benefits.

Sample size:
100 respondents
Sampling procedure:
Non probabilistic
convenience sampling

2.

Mr. Vetri Selvi

1. To find out

On the basis of this

(2010),

customer

study, it concluded that,

Comparative

preference and

both the companies are

analysis of ULIP

opinions about

providing very good

plans with reference

the ULIP plans.

facilities to their

to IDBI Fortis and

2. To compare

customers. IDBI Fortis

HDFC Standard life

ULIP plans of

Life Insurance is the

insurance.

IDBI Fortis On

one that is providing

the basis of

wavier of premium to its

return, charges.

customer in case of
maturity and in case of
death of the life
assured, whereas
HDFC standard life
insurance company is
not providing this
facility to its customers.
Sample size:
100 respondents

40

Sampling procedure:
Non probabilistic
convenience sampling
3.

Akula, R. and

1. To observe

It was revealed from

Kanchu, T. (2011),

the evolution of

the study that there

A study on growth

ULIPs in India,

was remarkable growth

of ULIP Policies in

the growth of

in ULIP compared to

life insurance sector

ULIPs over

traditional policies as

of India by

traditional

the new private

comparing traditional Policies.

entrants targeted ULIPs

and ULIP Policies.

2. To observe

for market penetration.

risk factors

Sample size:

involved in

5 leading life Insurance

ULIPs over

company

traditional

Sampling procedure:

policies and to

Non random

suggest various

judgmental sampling

measures to

method

develop and
stabilize the
growth of ULIPs.
4.

DR. M.G.

1. To find out the 1. In majority of the

Saravanaraj (2011),

customer

respondents home, the

An empirical

awareness and

number of dependents

evaluation of

preference for

size is limited1-2 to 2-4.

investor inclination

ULIP Life

2. Most of the

on ULIP Insurance

Insurance

respondents are ready

product with

product.

to recommend to their

reference to Delhi

2. To know the

friends. The

City

extent of amount

respondents came to

the investor like

know the ULIP life

to invest and

insurance Plans mainly

what basis they

through the

41

select the ULIP

Advertisements.

life insurance

3. While determining

product.

the future investment

3. To find out the much importance given

consumers

to risk coverage.

preference

Among the competitors

towards

policy ICICI life

competitors life

Insurance plans stands

insurance

at first. In ULIP Whole

products.

Life Insurance Plan

selection Maturity
benefits criteria holds
the first place.
Sample size:
200 respondent
Sampling procedure:
Simple random
sampling method
10 respondents were
selected through the
pilot survey.

5.

Divya Y. Lakhani

To explore the

The major finding of

(2011), Study to

consistent

this study was that the

identify the relation

performer

NAV for equity based

between returns and

among other

fund options moves in

Sensex, investors

companies.

tandem with Sensex

preference for ULIP

while for debt based

and Equity, growth

fund options it is not

and penetration of

much affected by the

ICICI Prudential and

movement of Sensex.

the performance of

Study has been

some of its ULIP

conducted on the basis

schemes.

of secondary data and

42

is descriptive in its
nature.
6.

N. Raja Lingam

To analysis the

The result reveal that

(2012), ULIP A

preference and

information provided by

Policy for balance

buying motives

the Agent and media

and sustainable

of rural customer have a specific role to

development

for ULIPS.

play over the rural

customer.
Sample size:
100 respondent
Sampling procedure:
Snowball sampling

7.

Navneet Seth

1. To know the

ULIP product have

(2012), Factors

future scenario

dominated the Indian

behind rise and fall

of ULIP in India.

market very steadily but

in sales of ULIP in

2. To know the

due to some limitation

India

factors

of product like

responsible for

unasserted market

the rise and fall

return, misguidance by

of ULIP.

agent, no knowledge to
tot customer regarding
the selection of
investment funds etc.
Sample size:
100 respondent
Sampling procedure:
Simple random
sampling method

8.

Udayan Smajpati

To check the

The result of

(2012), The

performance of

performance measure

performance

ULIP product

suggested that all the

evaluation of ULIP

offered by the

three ULIPs schemes

offered by private

company against have outperformed the

43

insurance company

the competition.

market. Among the

three schemes ING
Vysya ULIP was best
Performer.
Treynors ratio, Sharp
Ratio is Carried out to
measure the risk and
return analysis

9.

Mitra & Khan

1. To find out the The ULIP products are

(2012), A

growth in the

comparative study of

fund of ULIP and compared to the

Traditional policies

Traditional

traditional policies.

and ULIP policies

policies of the

There has been a

more risky as

with reference to Life life insurance

growth in ULIP in a

Insurance

companies in

limited period of time.

Companies in India

India.

The private life

2. To study the

insurance companies

growth of ULIP

are showing higher

through

growth in ULIP policies

Premium

as compared to

collected by life

traditional policies.

insurance

Study has been

companies in

conducted on the basis

India.

of secondary data and

is descriptive in its
nature.

10.

Dr. G. Nagarajan

1. To compare

From the study it can

(2013), A study on

the ULIPs of

be concluded that,

performance of Unit

different life

Reliance Life has good

Linked Insurance

insurers in terms

returns for the

Plan Offered by

of their focus.

Investors, and can be

Indian Private

2. To check the

further improved. At the

Insurance

performance of

same time, company

44

Companies.

ULIP product

has to understand the

offered by the

product of its

company against competitor (PNB Met

the competition.

Smart), which is
performing better.
Sample size:
5 leading life Insurance
company
Sampling procedure:
Non random
judgmental sampling
method

11.

Dr. Ritesh Dwivedi

1. To explore a

The findings of the

(2013),

consistent

study have identified

Comparative

performer

the most trusted ULIP

analysis of Unit

among all

option according to

Linked Insurance

selected

public perception and

Product of different

companies.

also the first preference

company

2. To assess the

of customers.

satisfaction level

Sample size:

of customer

160 respondents

towards ULIP.

Sampling procedure:
Non probabilistic
convenience sampling

12.

Dr. Prasad Bhanage

1. To compare

It is observed that is

Prof. Jyoti Bhanage

ULIP plan with

also included the

(2014), An analysis

different financial leading competitors in

of ULIPs of selected

product.

the insurance and

private Insurance

2. To study the

general insurance

firm.

detail of ULIP

segment along with

product of

their market shares. As

different private

well as it needs to

insurance sector

understand the how the

45

and to resulted

ULIP market share is

how the ULIP

increasing in stock and

product of

debt market.

reliance is better

Sample size:

than others.

100 respondent
Sampling procedure:
Non probabilistic
convenience sampling

13.

Dr. V. Thamodaran

To find out

Majority of the

&

problems of

policyholders is

P. Kamaludeen

ULIPs investors

influenced by self-

(2014), Investor

and suggest

followed by agents

behavior on ULIPs

suitable

while taking an

markets

measure to

insurance policy from

solve the

LIC, significant number

problem in study

of policyholders felt that

area.

the premium rate is

high, majority of the
sample policyholders
prefer to buy money
back policy and
policyholders expected
a return of 11-15
percent from their
investments.
Sample size:
450 respondent
Sampling procedure:
Simple random
sampling technique.

14.

Dr. Prafulla

To investigate

Study results indicated

Sudamane (2015),

the relationship

that there is significant

Relationship

of various

relation between

46

between different

factors such as

Marital Status, Age,

factors and their

Age, Marital

Educational

financial goal for

status, Type of

Qualification, Nature of

opting Unit Linked

family,

employment and family

Insurance Plans

Educational

type with Primary

Qualification and

financial goal for opting

Nature of

ULIP plans. Authors

employment of

suggested that the

investors with

tendency of investors to

their financial

switch between

goal for opting

different options should

Unit Linked

be studied in detail and

Insurance Plans.

the influence of the

Companys brand
image on the
performance of the
ULIPs should be
evaluated.
Sample size:
550 respondents
Sampling procedure:
Snowball sampling

Table 2.1 Summary of Literature Review

47

Chapter 5
Research Methodology

5. (a) Problem Statement

Bajaj Allianz Life Insurance is one of the major companies of Life
insurance in India and it offers variety of insurance product. There is
need to compare products of Bajaj Allianz Life Insurance with other
companies to get information about how much return, risk level and
customer satisfaction the other companies provide to its customers.
Therefore A Study on Comparative analysis of ULIPs Plans Bajaj
Allianz Life Insurance with ULIP plans of the other selected companies
is conducted.
5. (b) Objective

To compare performance of selected ULIP plans of Bajaj Allianz

Life Insurance, HDFC, Reliance, LIC.

To find out customer preference about the ULIP plans.

To analyze service provided to the customer of Bajaj Allianz Life

Insurance.

To assess the satisfaction level of customers towards ULIP.

5. (c) Research Design

I.

Type of Design
Descriptive research

II.

Sampling Method

Non probabilistic convenience sampling is use.

Sample Size
100 respondents of ULIPs polices of Bajaj Allianz Life
Insurance

III.

Data collection tool

Secondary Data Collection

Secondary information is collected for understanding the topic
in better way. Its give clarity about the study.
The information collects through internet, journals, insurance
site, and research papers, NAV of companies like Bajaj
48

Allianz Life Insurance, HDFC Standard Life Insurance,

Reliance Life Insurance and Life Insurance Corporation.

Primary Data Collection

The Primary information is collected from the various
respondents through a structure questionnaire.

IV.

V.

Tools for Analysis

SPSS

MS-Excel

Limitations of the study

All the service cannot be measure in quantitative terms

The non probabilistic convenience sampling method has its

own limitations.

There was a possibility of respondents bias in self reporting

perception of survey.

49

Chapter 6
Bibliography

Journals
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selected for study were ICICI Life Stage RP-Maxi miser (Growth) Fund, Bajaj Allianz
New Family Gain-Equity Index Fund II and ING High Life Plus-Growth Fund."
International Journal of Advanced Research (2012): 50-62.
Agarwal. "ULIP helps to manage the risk return profile." IJEMR (2010): 25-53.
Bhanage, Dr. Prasad and Jyoti Bhanage. "An Analysis of ULIPS of Selected Private
Insurance Firms." "ASMs INTERNATIONAL E-Journal on Ongoing Research in
Management and IT (2015): 218-229.
Dwivedi, Dr. Ritesh. "Comparative Analysis of Unit Linked Insurance Products of
Different Companies." Reseach Gate (2013): 36-89.
Kamaludeen, P. "Investors Behavior on Ulips Market (Unit Linked Insurance Plans)."
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(ULIP) OFFERED BY INDIAN PRIVATE INSURANCE COMPANIES ." International Journal
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Rajalingam, N. "ULIP A Policy for Balanced and sustainable development: A
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SARAVANARAJ, DR. M. G. "AN EMPIRICAL EVALUATION OF INVESTORS INCLINATION
ON ULIP INSURANCE PRODUCTS WITH." INTERNATIONAL JOURNAL OF RESEARCH IN
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Seth, Navneet. "Factors Behind Rise and Fall in the Sales of Unit Linked Insurance
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Web Sites
https://www.irdai.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?pag
e=PageNo4&mid
http://www.mckinsey.com/industries/financial-services/ourinsights/global-insurance-insights-a-detailed-analysis-of-trends-thatshape-the-industry
http://www.propertycasualty360.com/2016/03/29/3-key-technologytrends-for-the-insurance-industry?page=2&slreturn=1479491346
http://www.ibef.org/industry/insurance-sector-india.aspx
http://insurancethoughtleadership.com/13-emerging-trends-forinsurance-in-2016/
http://financialservices.gov.in/insurance/Majorinitiatives.asp
http://business.mapsofindia.com/insurance/top-ten-insurancecompanies.html
https://www.bajajallianz.com/Corp/new-index.jsp
http://www.plustenz.com/2016/01/list-of-top-10-life-insurancecompanies-in-india.html
http://scoophub.in/top-10-best-life-insurance-companies-in-india/

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