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Bajaj Allianz life Insurance Co. Ltd.

Summer Project Report

On

“A STUDY ON POTENTIAL OF LIFE INSURANCE


INDUSTRY IN GULBARGA MARKET”
Submitted to

SDM COLLEGE OF BUSINESS MANAGEMENT


In the partial fulfillment of the requirement for the award of

“MASTER IN BUSINESS ADMINISTRATOR”


Submitted By:

DAYANAND R RATHOD

Reg. No. 09769

Under the Guidance of

Internal guide
External Guide

Mr. Prakash H S
Mr. Sangamesh
Bajaj Allianz life Insurance Co. Ltd.

SDM COLLEGE OF BUSINESS MANAGEMENT,


POST GRADUATE CENTRE FOR MANAGEMENT
STUDIES & RESEARCH, MANGALORE -575 003
ACKNOWLEDGEMENT

To be graceful is the greatest of all virtues in life.


All accomplishment requires efforts and assistance of
many people, thus I express my sincere gratitude to all
those who have helped me in the successful completion
of my project.

First of all I am very great full to our principal Dr.


DEVRAJ K, for his support and encouragement.

I would like to thank my internal guide Mr. PRAKASH


H S, for project guidance.

I Sincere thanks to Mr. SANGAMESH SHETTAR


Divisional manager of Bajaj Allianz life insurance who
support & guidance in the course of training.
Bajaj Allianz life Insurance Co. Ltd.

I would like to thank my family and friends for helping


and motivating me throughout the completion of the
project.

DAYA
NAND R RATHOD

TABLE OF CONTENTES
Sr. CONTENTES PAGE NO
NO
1. INTRODUCTION
➢ Objectives of study
➢ Limitation
➢ Research methodology
➢ Data collection

2. COMPANY PROFILE

3. SURVEY
➢ Data interpretation, editing and
Bajaj Allianz life Insurance Co. Ltd.

coding
➢ Graph analysis
4. FINDING AND SUGGESTION

5. CONCLUSION

6. REFERENCES

7. QUESTIONNIARE

INTRODUCTION
The service industry is one of the fastest growing sectors in India today.
The upcoming sectors which are really showing the graph towards
upwards are - Telecom, Banking, and Insurance. These sectors really
have a lot of responsibility towards the economy.

Amongst the above-mentioned areas insurance is one sector, which took


a lot of time in positioning itself. The insurance business of non-life
Bajaj Allianz life Insurance Co. Ltd.

companies was not much in problems but the major problem was with
life insurance. Life Insurance Corporation of India had monopoly for
more than 45 years, but the picture then was completely different.
Previously people felt that “Insurance is only for classes not for
masses” but now the picture is vice-versa.

The story of insurance is probably as old as the story of mankind. The


same instinct that prompts modern businessmen today to secure
themselves against loss and disaster existed in primitive men also. They
too sought to avert the evil consequences of fire and flood and loss of
life and were willing to make some sort of sacrifice in order to achieve
security. Though the concept of insurance is largely a development of
the recent past, particularly after the industrial era – past few centuries –
yet its beginnings date back almost 6000 years.
The year 1818 Oriental Life Insurance Company started by Life
Insurance in its modern form came to India from England in Europeans
in Calcutta was the first life insurance company on Indian Soil. All the
insurance companies established during that period were brought up
with the purpose of looking after the needs of European community and
these companies were not insuring Indian natives. However, later with
the efforts of eminent people like Babu Muttylal Seal, the foreign life
Bajaj Allianz life Insurance Co. Ltd.

insurance companies started insuring Indian lives. But Indian lives were
being treated as sub-standard lives and heavy extra premiums were
being charged on them. Bombay Mutual Life Assurance Society
heralded the birth of first Indian life insurance company in the year
1870, and covered Indian lives at normal rates. Starting as Indian
enterprise with highly patriotic motives, insurance companies came into
existence to carry the message of insurance and social security through
insurance to various sectors of society. Bharat Insurance Company
(1896) was also one of such companies inspired by nationalism. The
Swadeshi movement of 1905-1907 gave rise to more insurance
companies. The United India in Madras, National Indian and National
Insurance in Calcutta and the Co-operative Assurance at Lahore were
established in 1906. In 1907, Hindustan Co-operative Insurance
Company took its birth in one of the rooms of the Jorasanko, house of
the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile,
General Assurance and Swadeshi Life (later Bombay Life) were some
of the companies established during the same period. Prior to 1912 India
had no legislation to regulate insurance business. In the year 1912, the
Life Insurance Companies Act, and the Provident Fund Act were
passed. The Life Insurance Companies Act 1912 made it necessary that
the premium rate tables and periodical valuations of companies should
Bajaj Allianz life Insurance Co. Ltd.

be certified by an actuary. But the Act discriminated between foreign


and Indian companies on many accounts, putting the Indian companies
at a disadvantage.

The formation of IRDA, entrance of private life insurance companies


into India with one foreign partner, compulsory training of Insurance
agents etc. developments started to take place. And this was the time
when these companies started searching for proper channel partners who
can help the organization in expanding its network and business in
India.

Channel partners are those who are going to be into direct selling of
company’s products i.e. the insurance policies. They are the link
between the customers and the management or company. These channel
partners are people with different profiles. They are selected on some
grounds like their network of people, their problem handling ability,
convincing power and lot many things.
The main idea behind company’s Questionnaire Survey is to find out
and analyze the proper profile that can be recruited by company as a
channel partner. Company has been focusing on some of the profile that
can be very beneficial for the company. For example Chartered
Bajaj Allianz life Insurance Co. Ltd.

Accountants, Tax Consultants, Postal agents, Bank’s Daily Collection


Agents etc. the main idea behind targeting the above profile is strong
client network which is really very important for an insurance company.

The project title is “Potential of Life Insurance Industry in Gulbarga


Market”. This shows the scope for private insurance companies have
great opportunities to cover the market and can insure the customer.
With the initiation of the deregulation in the Indian insurance market,
the monopoly of big public sector companies in life insurance market
has been broken. New private players have entered the market and with
their innovative approaches and better use of distribution channels and
technology, they are eating in to the shares of established public sector
companies in Indian Insurance Market. Since the deregulation has been
put in to place, the market share of LIC has come down to 71.4% in life
insurance market while the private players have captured around 17%
market in the general insurance segment. This report includes the key
private players in the insurance market such as ICICI Prudential, Kotak
Life Insurance Bajaj Allianz, Birla Sun life, and TATA AIG. It also
includes the leading competitors in the life insurance and general
insurance segments along with their market shares.
Bajaj Allianz life Insurance Co. Ltd.

OBJECTIVES OF STUDY

The main of the present study of is accomplishing the following


objective.
➢ Proper understanding and analysis of life insurance industry.
➢ To know about brand awareness of Bajaj Allianz Life
Insurance and customer’s preference about Bajaj Allianz
Life Insurance.
➢ Conduct market survey on a sample selected from the entire
population and derived opinion on that research.
➢ According the market survey come to know about how
much potential of insurance market in our city.
➢ And base on analysis of the result thus obtained make a
report on that research.
➢ Along with it I will be gaining the thorough knowledge of
insurance sector. This will give me in more confidence in
marketing products given to me.
Bajaj Allianz life Insurance Co. Ltd.

LIMITATION
Some of the difficulties and limitations faced by me during
my training are as follows:

➢ Lack of awareness among the people

➢ Perception of the people towards Insurance sector


➢ Insurance does not give good returns
➢ Lack of awareness about the earning opportunity in the Insurance
sector
➢ Increased competition
Bajaj Allianz life Insurance Co. Ltd.

RESEARCH METHODOLOGY
Research always starts with a question or a problem. Its purpose is to
question through the application of the scientific method. It is a
systematic and intensive study directed towards a more complete
knowledge of the subject studied. Marketing research is the function
which links the consumer, customer and public to the marketer through
information- information used to identify and define marketing
opportunities and problems generate, refine, and evaluate marketing
actions, monitor marketing actions, monitor marketing performance and
improve understanding of market as a process.

Marketing research specifies the information required to address these


issues, designs, and the method for collecting information, manage and
implemented the data collection process, analyses the results and
communicate the findings and their implication.

I have prepared our project as descriptive type, as the objective of the


study demands the answers of the question related to find the
potentiality of life insurance in Gulbarga: How much potential is there
in Gulbarga?
Bajaj Allianz life Insurance Co. Ltd.

DATA COLLECTION

➢ PRIMARY SOURCES:

For my project, I decided on primary data collection


method for observing working of company and approaching
customers directly in the field, tele-calling, cold calling,
campaigning and through references to know their interest in
business with company in my project and also make questionnaire
for creating database of business class people is Gulbarga city for
company.

➢ SECONDARY SOURCES:

I decided on Secondary data collection method was used by


referring to various websites, books, magazines, journals and daily
newspapers for collecting information regarding project under study.
Bajaj Allianz life Insurance Co. Ltd.

COMPANY PROFILE

Since you will be paying premiums for years to come, you don't want
your insurance company to disappear before you or your family receives
the benefit. It is worth asking how long the company has been in
business, how many life insurance policies they manage and their credit
rating. In most cases, you will get a better deal from the smaller life
insurance companies, but you just need to be more careful to research
them and make sure they are stable. Bajaj Allianz is sure to one such life
insurance company Bajaj Allianz life insurance Company limited is a
joint venture between two companies. Bajaj Auto and Allianz AG.

Allianz Group's Indian life insurance joint venture has changed its
name to Bajaj Allianz Life insurance from Allianz Bajaj life
insurance (Bombay), Aug 4, 2004

Allianz AG

➢ World’s largest insurance company by revenue –Rs520353cr


(euro96.9billion)
Bajaj Allianz life Insurance Co. Ltd.

➢ Worldwide 2nd by gross written premiums-Rs477930cr (euro 89


billion)
➢ 3rd largest assets under management (AUM) and largest amongst
insurance companies
➢ 11th largest corporation in the world
➢ 50% of globe business from life insurance, close to 60 million lives
insured globally
➢ Established in 1890, 120 years of insurance expertise
➢ More than 70 countries,173750 employees worldwide
➢ Insurance to almost half of the fortune 500 companies

Bajaj auto

➢ One of the largest 2 and 3 wheeler manufacturers in the world


➢ 21 million + vehicles on the road across the globe
➢ Managing fund of over Rs5200cr
➢ Bajaj auto finance one of the largest companies in India
➢ Rs8934cr turnover and profits after tax of 932cr in 2007-08

Bajaj allianz life insurance


➢ The fastest growing private life insurance company in India, with a
growth rate of 380%
➢ Have sold over 650000 policies to satisfied customers
➢ Is back by a network of 400 offices spanning the country
➢ Ranked second among private life insurance companies in India
➢ Assets under management Rs936 cr
➢ Shareholder capital base of Rs267cr
Bajaj Allianz life Insurance Co. Ltd.

➢ Product tailored to suit your needs


➢ Decentralized organization structure for faster response
➢ Wide reach to serve you better-a national wide network of 400
branches
➢ Specialized departments for banc assurance, corporate agency and
group business
➢ Well networked customer care centers (CCCs) with state of art IT
systems
➢ Highest standard of customer service and simplified claims
process in the industry
➢ Website to provide all assistance and information on products and
services, online
➢ Buying and online renewals.
➢ Toll-free number to answer all your queries, accessible from
anywhere in the
➢ country and a strong tele-marketing and direct marking team
➢ Swift and easy claim settlement process
➢ Accelerated growth

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.
Bajaj Allianz life Insurance Co. Ltd.

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, decentralized decision making
 Long-term commitment to market and clients

Underwriting
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.
Our claims philosophy is to:

 Be flexible and settle fast


Bajaj Allianz life Insurance Co. Ltd.

 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.

Experience 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 analyze and assess them.

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)
Bajaj Allianz life Insurance Co. Ltd.

Unique Forms of Risk Cover


 Special PA cover for Amarnath Yatris
 Housing loan cover for people, who are suddenly
unemployed
 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 and proactively
Bajaj Allianz life Insurance Co. Ltd.

COMPANY PRODUCTS
“Insurance is a contract between two parties
whereby one party called insurer undertakes the
risk in exchange for a fixed amount of money on
the happening of a certain event.”

1.CASH GAIN

People needs for insurance protection will vary at different stages of


life. Sometimes, they may need to release a part of their savings from
insurance commitments and utilize it for other pressing needs. The Bajaj
Allianz Cash gain is ideal for those who want to reap and enjoy the
benefits of their life insurance policy at regular intervals during their
lifetime.

Bajaj Allianz Cash gain is a specially designed plan that offers a


host of additional benefits you may choose to develop a sound financial
portfolio for your family. Among the many unique benefits, the most
significant is the Family Income Benefit (FIB) that sustains the family
by compensating the loss of regular income due to death or permanent
disability.

Available as:

➢ Bajaj Allianz Cash gain Economy: The basic package


➢ Bajaj Allianz Cash gain Gold: With double protection
➢ Bajaj Allianz Cash gain Diamond: With triple
protection
Bajaj Allianz life Insurance Co. Ltd.

➢ Bajaj Allianz Cash gain Platinum: With quadruple


protection

A Uniform Life Cover

Besides giving you regular Cash Benefits, this plan takes care of
your life insurance needs also. On death during the term of policy, the
following would be paid irrespective of the Cash Benefits already paid:

➢ Bajaj Allianz Cash gain Economy: Sum Assured +


Bonuses
➢ Bajaj Allianz Cash gain Gold: Double Sum Assured +
Bonuses
➢ Bajaj Allianz Cash gain Diamond: Triple Sum Assured
+ Bonuses
➢ Bajaj Allianz Cash gain Platinum: Quadruple Sum
Assured + Bonuses

Choice of Terms
Keeping your convenience in mind, we offer you the widest range of
terms: 15, 20, 25 and 30 years.

Additional Protection for you and your family


You have the option to add the following additional benefits,
providing total protection against uncertainties.
Family Income Benefit (FIB) - The Ultimate Protection - For Your
Loved Ones
Bajaj Allianz life Insurance Co. Ltd.

You can select the unique Family Income Benefit from Bajaj
Allianz that ensures total financial protection for your loved ones. In
case of death or accidental total permanent disability, a guaranteed
monthly income of 1% of the sum assured (12% per annum) is paid till
the end of the policy term or at least for a period of 10 years, whichever
is higher. Moreover, all future premiums are waived.

Comprehensive Accident Protection

This benefit provides comprehensive cover in case of an


accident. It comprises of:

Accidental Death Benefit


Accidents are always sudden and sometimes fatal. You can't
lessen the emotional shock, but you can certainly soften the financial
one. Bajaj Allianz Accidental Death Benefit gives the loved ones
something to start with after the permanent loss of income by paying an
amount equal to the Sum Assured..

Accidental Permanent Total/Partial Disability Benefit


Accidents are unpredictable, and so are the consequences. They
may lead to a disability - partial or total. This Benefit provides a
financial cushion against such misfortunes. You will get 50% of the
Sum Assured in case of partial disability and 100% in case of total
disability. (Subject to a maximum of Rs. 25,00,000/- for partial and Rs.
50,00,000/- for total disability under all policies with Bajaj Allianz
taken together).

Waiver of Premium Benefit


Bajaj Allianz life Insurance Co. Ltd.

An accident may lead to permanent total disability, limiting one’s


ability to earn. Bajaj Allianz Waiver of Premium benefit is a helping
hand when one needs it most. It waives off all future premiums while
keeping the valuable life insurance cover alive, thus enabling you to live
up to your commitments.

Critical Illness Benefit (CI)

Some illnesses are critical. They not only alter one’s life's
pattern but also result in a financial drain. Bajaj Allianz Critical Illness
Benefit softens the impact on the family by paying out the Critical
Illness Benefit under benefits continue (excluding Hospital Cash
Benefit). We cover 11 critical illnesses. You have the flexibility of
choosing Critical Illness cover up to the basic Sum Assured selected by
you (Minimum Rs.50, 000). r the plan immediately, while other policy

Hospital Cash Benefit (HC)

The worry of settling hospital bills (room charges) adds to the trauma of
Hospitalization. Bajaj Allianz Hospital Cash Benefit reduces this
financial burden and helps recovery with peace of mind.

Flexibility in Coverage
At Bajaj Allianz, we believe in offering benefits and not just products.
We realize that you are unique and your needs for insurance vary with
time. We therefore offer you the flexibility of inclusion of coverage or
Bajaj Allianz life Insurance Co. Ltd.

exclusion of coverage at each policy anniversary, subject to conditions


relating to such inclusions and exclusion.
You have the flexibility to change your package and move to a
package that provides lower protection at each policy anniversary
(premiums would be adjusted accordingly). “Comprehensive Accident
Protection” can be included and excluded at each policy anniversary.
Family Income Benefit, Critical Illness Benefit and Hospital
Cash Benefit can be taken at inception only. FIB, CI & HC can be
reduced or excluded subsequently at any policy anniversary. Once
reduced or excluded, they cannot be increased or included subsequently.

Increase in risk coverage


Every added responsibility in your life calls for increase in your
risk cover. We provide you the option to increase coverage up to 50% of
the basic Sum Assured on each of the following happy moments in life.
➢ Marriage
➢ The birth of first child
➢ The birth of second child
This additional coverage is not subject to underwriting. The option
should be exercised within 90 days of the occurrence of the said event.

2.SAVE CARE ECONOMY


As the breadwinner of the family you shoulder several
responsibilities. Your spouse's welfare, your children's education,
buying a house or a c-a ry ou has a lot to think about, everyday. Bajaj
Allianz, believe that the security and growth of your hard earned money
should not add to these.
Bajaj Allianz life Insurance Co. Ltd.

Which is why Bajaj Allianz has created the “Bajaj Allianz Save Care
Economy - Single Premium”-the 10-year Single Premium version of our
popular product “Save Care Economy”? It is an ideal plan for a one-
time lump sum investment that provides for savings with high risk-
cover.

The "Bajaj Allianz Save Care Economy - SP", is a Single Premium


investment plan for 10 years that also participates in the profits of the
company. The highlights of this plan are:

Minimum Guaranteed Return up to 3.54% (depending on age at entry).


The Minimum Guaranteed Amount (Sum Assured) would grow further
by way of compounded annual bonuses.
A high risk-cover of up to 142% (depending on age at entry) of the sum
invested from the beginning of the policy term as a financial safety net
to provide for unpredictable adversities.
Eligible for Tax Benefits under Section 88 and Section 10 (10 D) of the
Income Tax Act.
At Maturity you will receive the Sum Assured (Minimum Guaranteed
Amount) along with the accrued bonuses.
Death Benefit: In case of death during the term of the plan, the nominee
will be paid the Sum Assured (Minimum Guaranteed Amount) plus
accrued bonuses. In case of death of a minor (below age 7), the death
benefit will be the surrender value or Single Premium whichever is
higher.

3.INVESTGAIN
Bajaj Allianz life Insurance Co. Ltd.

It takes only a moment to make promises and a lifetime to keep them.


Keeping promises made to your loved ones is not just a responsibility,
but a commitment that you have to live up to. When you promise to see
your family through thick and thin you need to make sure that you have
planned for all the eventualities that may befall on them. You need to be
prepared that even if there ever is an instance that you are not there with
them you have saved enough to see them through their entire life. We
understand this need, which is why we have developed Bajaj Allianz’s
Invest Gain, the plan that helps you in saying "My family, May you
always be happy!”
Available as:
➢ Bajaj Allianz Invest gain Economy: The basic package
➢ Bajaj Allianz Invest gain Gold: With double protection
➢ Bajaj Allianz Invest gain Diamond: With triple protection
➢ Bajaj Allianz Invest gain Platinum: With quadruple
protection All these packages participate in the profits of the
company by way of bonuses, and therefore, grow with time

Family income benefit


You can select the unique Family Income Benefit from Bajaj
Allianz that ensures total financial protection for your loved ones. In
case of death or accidental total permanent disability, a guaranteed
monthly income of 1% of the sum assured (12% per annum) is paid till
the end of the policy term or at least for a period of 10 years, whichever
is higher. Moreover, all future premiums are waived. Popular Products:
Endowment Assurance (Participating) and Money Back (Participating).
More than 80% of the life insurance business is from these products.
Bajaj Allianz life Insurance Co. Ltd.

4. UNIT INSURANCE POLICY LINKED

The thumb rule for buying insurance is that your insurance needs
are minimal in your early earning years, increase with added
responsibilities (Marriage, children, loans etc.) and taper off by the time
you retire. It is difficult to find a single insurance plan that can take care
of all your changing requirements in life – additional protection, more
money to invest, sudden requirement of cash or a steady post-retirement
income.

With Bajaj Allianz Unit Gain, you can invest in one life insurance plan
that can take care of all your changing requirements throughout your
life. This plan has been designed to provide you with maximum
flexibility, so that you do not have to worry about your changing needs.

Bajaj Allianz Unit Gain offers the unique option of combining the
protection of life insurance with the attractive prospects of investing in
securities. You can choose the investment funds you want to invest your
money, providing you with an opportunity to have a direct stake in the
performance of the financial markets. You also benefit from attractive
tax advantages and can protect your loved ones against unfortunate
events.

Unit Gain Plus: A Unit Linked Plan

Bajaj Allianz Unit Gain Plus offers the unique option of


combining th protection of life insurance with the
attractive prospects of investing in securities. Customers
have the choice of 6 investment funds with flexible
Bajaj Allianz life Insurance Co. Ltd.

investment management; they can change funds at any


time. Customers also benefit from attractive tax
advantages and unmatched flexibility -to match their
changing needs. And the advantage of low fund
management & fund administration costs.

Unit Gain Plus SP : A Single Premium Unit Linked Plan

This plan enables the customers to protect their loved


ones, while making their money grow faster with the
advantage of low fund management & fund
administration costs. It provides the customers the option
of allocating 98% of the single premium to purchase units
in any/all of the 6 funds available with company

Unit Gain : A Unit Linked Plan

This amazingly flexible unit linked life insurance plan


provides the customers the opportunity to participate in
market linked returns while enjoying the valuable
benefits of life insurance

Unit Gain SP : A Single Premium Unit Linked Plan

This plan enables the customers to protect their loved ones, while
making their money grow faster. It provides them the option of
allocating 100% of the Single Premium to purchase units in any/all of
the 6 funds available with company.
Bajaj Allianz life Insurance Co. Ltd.

Lifelong Gain Plan : Unit Linked Whole Life


Plan

This is the perfect plan to take care of ongoing and future family
expenses like debts, expenses on children, living expenses, etc. It can
also take care of unforeseen expenses like accidents, illnesses,
hospitalization, etc. and provides customers family with a safety net. It
provides whole life protection with only 10 or 15 years of contributions.
Guaranteed Survival Benefits @3% are available under this policy.
Guaranteed Survival Benefits that pays 3% of the Sum Assured every
year after the premium payments are over

SUITABILITY

This policy is a long-term market linked total protection plan. The plans
offer protections for life at the same time allows the policyholder to get
market linked returns. It is a single product combining the benefits of
both an investment product and insurance plan. This apart, the product
offers a lot of flexibility.

DIFFERENT FUNDS
EQUITY INDEX

The investment objective of this fund is to provide capital appreciation


through investment in equities. The plan is expected to match the returns
given by NIFTY Index of the National Stock Exchange. This fund will
invest at least 85% in equities and maximum 15% in debt and cash.
Bajaj Allianz life Insurance Co. Ltd.

EQUITY PLUS FUND

The investment objective of this fund is to provide capital appreciation


through investment in selected equity stocks that have the potential for
high capital appreciation. The fund will invest at least 85% in equities
and maximum 15% in debt and cash.

DEBT PLUS FUND

The objective of this fund is to provide accumulation of income through


investment in high quality fixed income securities like G-securities and
corporate debt rates AA and above. This fund is invested fully in debt
instrument and money market instrument.

BALANCE PLUS FUND

This fund is a fund of funds. The objective of this fund is to provide a


balanced investment between long-term capital appreciation and current
income through investment in the units of our equity and debt funds.
The balanced fund will invest 30% to 50% in the equity index fund and
50% to 70% debt fund.

CASH PLUS FUND

The investment objective of this plan is to have a fund that guarantees


invested capital through investments in liquid money market and short
term instruments like commercial papers, certificate of deposits, money
market mutual funds, bank F.D’s etc. The price of unit in this fund is
guaranteed not to go down. 100% of this fund will be invested in money
Bajaj Allianz life Insurance Co. Ltd.

market instruments. The price of the units in this fund is guaranteed


never to go down.

FOCUSED SALES NETWORK

Bajaj Allianz Life Insurance


Company

Banc assurance

Branches
Satellite Satellite
Bajaj Allianz life Insurance Co. Ltd.

Cosmos Bank
Satellite
Agency channel Group and Alternate Channel

Standard chartered bank Group Employee


Benefit

Syndicate Bank Corporate Agency

Centurion Bank Franchisee

Brokers

Jankalyan Sahakari
Bank

Jijamata Sahakari Coop


Bank

The overall premium target is broken down as


follows by distribution channel:
Bajaj Allianz life Insurance Co. Ltd.

FP + SP ANNUAL(crores
)
AGENCY 1,827
BANCASSURANCE 650
ALTERNATE CHANNELS 523
RENEWALS 500
TOTAL 3500

AGENCY CHANNEL:
 Currently the company has some 300 offices made
up of 98 branches and about 239 satellite offices.
 The company will continue with the same hub and
spoke structure, but will increase the number of
branches to 150 and satellites to 400.
 The number of STMs a branch or a satellite can have
will be between 2 and 8.
 Underwriting and processing of business will
continue at the branch level.
 The branches will continue to support the banc
assurance and alternate channels for underwriting
and processing of business, as well as offer the office
infrastructure for the other channels staff to operate
from.
Bajaj Allianz life Insurance Co. Ltd.

BANCASSURANCE:
The company has some 6 bank tie ups these will be
managed by the bank assurance team. Following are the
banks with which the company has tied up:
1. Syndicate bank.
2. Centurion bank.
3. Standard chartered bank.
4. indusland ind bank.

ALTERANATE CHANNELS:
The focus will be corporate agency, franchise, brokers, worksite
marketing, NRI business, HNI business, group business and rural social
business
Bajaj Allianz life Insurance Co. Ltd.

ORGANISATION STRUCTURE OF SALES AGENCYs

CEO

CFO

HOD SALES

ZONAL MANAGER

REGIONAL MANAGER

SENIOR BRANCH MANAGER

BRANCH MANAGER

ASSISTANT BRANC MANAGER


CONSULTANTS./ AGENT
Bajaj Allianz life Insurance Co. Ltd.

BANK-ASSURANCE/ALTERNATE CHANNEL

CEO

CFO

HOD SALES

AREA MANAGER

DEPUTY MANAGER

FINANCIAL SERVICE\PLANNING CONSULTANTS


Bajaj Allianz life Insurance Co. Ltd.

FINANCIAL HIGHLIGHTS YEAR 2008-2009


Particulars 2008-09 2007- 2006- 2005-06
08 07
Rs. Million (11
Rs. Rs. Months)*
Million
Million Rs. Million

Gross Written Premium 18,560.7 8,798 5,998 3,420

Net Written Premium 8,792.9 4,864 3,808 1241

Net Earned Premium 7,709.2 6,306 5,541 198

Net Incurred Claims (4,263.3) (2,542) (2,072) (227)

Net Commissions 1119.4 564 355 228


Bajaj Allianz life Insurance Co. Ltd.

Management Expenses (5,455.9) (1184) (889) (670)

Underwriting Results 609.4 32 (54) (371)

Income from Investments 988.8 485 407 143

Others 38.6 44 (8) (5)

Profit Before Tax 1269.6 1018 771 (733)

Provision for Tax (198.7) (501) (95) 77

Profit After Tax (998.7) 717 346 (216)

Claim's Ratio 71% 87% 70% 130%

Commission Ratio -13% -11% -10% -130%

Management Expenses Ratio 60% 42% 43% 376%

Combined Ratio 120% 118% 102% 376%

Return on Equity 64% 40% 24% -16%

Shareholder's Equity 5,824.1 4,380 3,095 1097

Assets Under Management 8835.5 6,486 6,709 3,688

Number of Employees 1324 780 506 241

GROWTH OF BAJAJ ALLIANZ LIFE INSURANCE CO


Fiscal year No of policies sold in FY GWP in FY

2005-2006 41376 Rs 9cr


(6months)

2006-2007 515965 Rs99cr

2007-2008 486443 Rs421cr


Bajaj Allianz life Insurance Co. Ltd.

2008-2009 388189 Rs6002cr

Policies sold in Rs

➢ Assets under management Rs1236 cr


➢ Shareholder capital base of Rs667cr
➢ Product tailored to suit your needs
➢ Decentralized organization structure for faster
response
➢ Wide reach to serve you better-a national wide
network of 400 branches
➢ Specialized departments for banc assurance,
corporate agency and group business
➢ Well networked customer care centers (CCCs) with
state of art IT systems
➢ Highest standard of customer service and simplified
claims process in the industry
➢ Website to provide all assistance and information on
products and services, online buying and online
renewals.
➢ Toll-free number to answer all your queries,
accessible from anywhere in the country and a
strong tele-marketing and direct marking team
➢ Swift and easy claim settlement process
Bajaj Allianz life Insurance Co. Ltd.

LIFE TRACK OF BAJAJ ALLIANZ LIFE INSURANCE


COMPANY LTD

Objectives of the Company for the Year 2007-08:


➢ To be one of the top 3 private life insurers in terms of gross
premium and achieve a premium target of more than Rs 750 crs.
➢ To be one of the top 2 companies in terms of profitability.
➢ To be more customer focused and reduce complexity.

The Company’s Major Achievements In The Last Financial Year Are:


➢ Number 2 amongst the private insurers in terms of new business
premium, up to February 2005.
➢ Gross premium achieved over Rs 1000crs GWP
➢ 300 + offices, 2700 + STM’s and 45000 + ICs
➢ 190 MDRTs , 9COTs
➢ 6 banc assurance tie-ups
➢ Intermediaries including franchisees and corporate agents over
400.
➢ A full basket of products approved.

The Company’s Objectives For The Year 2008-09


➢ To be one of the top 2 private life insurers in terms of premium
and profitability
Bajaj Allianz life Insurance Co. Ltd.

➢ Achieve a minimum premium target of Rs 3500 crs(with less than


30% single premium)each office to look at growing the business
from 2007-08levels by 350% to 400%
➢ Improve customer service at all levels.
➢ Conduct business in an ethical manner.

THE KEY INITIATIVES THE COMPANY PLANS TO TAKE IN THIS


QUARTER INCLUDE THE FOLLOWING:
 Increase branch numbers to 100 and satellite offices
to 300.
 Increase STM strength to3500 and IC strength to
50000
 Products for filing and approval women’s plan,
health, tactful and revised ULIP
 Metro city strategy- increase number of branches in
metro cities.
 Target 5 banks/coop banks for tie ups.
 Increase franchisee and corporate agents tie up.
 Group and broker team to be strengthened.
 Tactful team to be setup.
 NRI and HNI teams to be set up to focus on these
areas.
 Online system to incorporate renewals, switches and
withdrawals.
 Finalization of accounts for 2007-2008
 Recruitment of training head and trainers for
branches
Bajaj Allianz life Insurance Co. Ltd.

THE VARIOUS RESPONSIBILITIES AND THE WORK


CARRIED OUT IN THE GULBARGA BRANCH OFFICE
 Gulbarga is the area of office.
 There are different channels namely banc assurance,
retail banking, agent and agency managers headed
by respective managers
 Primary responsibility of all the channels is to meet
the targets set by the head office
 Policy logins are done here
 Underwriting and medical checkups are done here
 After the preliminary verification policies are sent to
head office for issuance
 Training is also held for the newly appointed
employees
 Certificate for selling insurance is given once
employees clear the IRDA exam.

HIERARCHY OF BAJAJ ALLIANZ LIFE INSURANCE


LIMITED
(Gulbarga Branch)

Branch manager
Bajaj Allianz life Insurance Co. Ltd.

Branch Operations In charge (B


Assistant BM

Sales manager Operation Executive

Assistant SM Operations

Life advisor

DATA INTERPRETATION OF THE SURVEY

GRAPH ANALYSIS
Q.1 which age group does you belongs to?

AGE No Of Members
18-25 11
Bajaj Allianz life Insurance Co. Ltd.

26-30 22
31-45 44
46 & above 23

Q 2} Gender 1) male ____) female____


Gender No of member
Male 66
Female 34

Q 3} How many members do you have in your family?


Bajaj Allianz life Insurance Co. Ltd.

Family member No of member


2-4 40
5-8 48
8 & above 12

Q 4} what is your annual income?


Income No of members
40k-70k 17
70k-1lakh 41
1lakh-3lakh 28
3lakh & above 14
Bajaj Allianz life Insurance Co. Ltd.

Insurable Member Uninsurable member


42% 58%

Only 42%people having insurance in Gulbarga so it is


potential for insurance company to capture to all that
market

Having insurance No of members


Self 40
Spouse 28
Bajaj Allianz life Insurance Co. Ltd.

Children 21
Parents 18
All 11

Among that 42% people who having insurance, they have insurance
40% for self 28%for spouse 21% for children and 18% for their parents
and 11% for all family member.

Different policy bought by customers


Bajaj Allianz life Insurance Co. Ltd.

Under insurable persons Fully insurable persons


82% 18%

Only 42 % people having life insurance but among them 82% people are
underinsurance and only 18% people are fully insured according to them
income

Insurance plan Market share


Bajaj Allianz life Insurance Co. Ltd.

Term plan 39%


Money back plan 14%
Endowment plan 15%
Child plan 8%
Unit link plan 24%

FINDING AND SUGGESTION

 According the survey only 42% people are insured in Gulbarga so


reaming other part is potential for insurance sector.
 Among that 42% people who having insurance, they have
insurance 40% for self 28%for spouse 21% for children and 18%
for their parents and 11% for all family member, also its very help
Bajaj Allianz life Insurance Co. Ltd.

full for insurance sector so they should take necessary step for
capture this potential.
 Only 42% people having insurance in Gulbarga in that 42% there
are 82 % people are under insured and other 18% people are fully
insured according to their income so that is also plus point for
insurance sector to capture the market.

CONCLUSION

 All the insurance company must advertise more in the market


because not all people know more about life Insurance policy.
Bajaj Allianz life Insurance Co. Ltd.

 Most number of people wants Guaranteed Returns so company


must focus on this for the customer investment.

REFERENCE
Bajaj Allianz life Insurance Co. Ltd.

In order to obtain more information regarding the present study


and to substantiate it with theoretical proof, the following
references were made: -

• Insurance chronicle, January 2006 Special issue “Insurance


Industry 2006”.
BOOKS
• Insurance chronicle –ICFAI publications
• Outlook money – magazine
Websites visited:
• www.bajajallianz.com
• www.google.com
• www.moneycontrol.com
• www.outlookmoney.com
Bajaj Allianz life Insurance Co. Ltd.

QUESTIONNAIRE

I am Dayanand R Rathod pursuing MBA from SDM College of


business management post graduate centre management studies &
research Mangalore. As a part of the curriculum I am doing research on
“POTENTIAL OF LIFE INSURANCE INDUSTRY” kindly help me in
the same by filling the questionnaire. Your response would be kept
strictly confidential and would be used only for academic research.

1} Name ______________________________
2} which age does you belong to?
1) 18-25 2)26 to 30 3) 31 to 45 4) 46 to above
3} Gender 1) male ____) female____
4} how many members do you have in your family?
1) 2-4 2) 5-8 3) 8 to above
5} what is your family annual income?
1) 40k-70k 2) 70-1lakh 3) 1lakh-3lakh 4) 3 to above
6} Occupation
1) Service 2) business 3) professional 4) other
7} Do you have a life insurance?
Yes_______ No_______
If yes,
Bajaj Allianz life Insurance Co. Ltd.

Which is it?
Company’s Term Endowment Whole Money Retirement Child Unit
name plan life back plan link
plan
LIC
ICICI
prudential
Birla sun life
SBI life
HDFC
standard life
Bajaj Allianz
TATA AIG
Kotak
Mahindra
ING vysya
Max new
York life
Met life
Reliance
Shri ram
Sahara
Bajaj Allianz life Insurance Co. Ltd.