STUDENT DECLARATION

I am PAWAN SAINI student of MBA here by declared that the research report entitled

“COMPARATIVE STUDY OF BAJAJ ALLIANZ PRODUCT WITH OTHER

INSURANCE COMPANIES” is completed and submitted under the guidance of

ASSISTANT PROFESSOR MRS. RUPALI GUPTA FACULTY OF MBA is my original

work. The imperial finding in this report is based on the data collected by me. I have not

submitted this project report to BIT, MEERUT or any other University for the purpose of

compliance of any requirement of any examination or degree.

PAWAN SAINI

MBA III SEM

ROLL NO. 0927170053

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 ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep gratitude to all those who, directly or

indirectly made this project possible.

I have got considerable help and support in making this project report a reality from many

people.

I would like to thank MR. RAJET SHARMA (Senior Sales Manager) whose endeavor for

perfection, under fatigable zeal, innovation and dynamism contributed in a big way in

completing this project. This work is the reflection of his thought, ideas, concept and above all

his modest effort.

I also take this opportunity to convey my heartfelt thanks to Assistant Professor MRS.

RUPALI GUPTA FACULTY OF MBA, BIT MEERUT for her constant suggestion which

have resulted in successful completion of the project.

PAWAN SAINI

2
 PREFACE

It is well evident that work experience is an indispensable part of every professional course. In

the same manner practical training in any organization is must for each and every individual,

who is undergoing management course. Without the practical exposure one cannot consider

himself as a qualified capable manager. Hence to fulfill this requirement eight weeks training

was completed at BAJAJ ALLIANZ LIFE INSURANCE COMPANY .Entering in the

organization is like stepping into altogether a new world. At first every thing seems strange and

unheard but as the time passes one understands the concept and working of the organization

and thereby develop professional relationship.

Initially it is felt as if classroom study was irrelevant and it is unless in any concern working.

But gradually it is realized that all basic fundamental concepts studied are linked in one or

other ways to the organization. But how and what can be done with fundamentals depends

upon the intellectual and applicability of the individual.

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 CONTENTS

1. Introduction 5

2. Company Profile 37

3. Product knowledge 50

4. Objective of the study 66

5. Research Methodology 68

6. Analysis 73

7. Interpretation 92

8. Conclusion 94

9. Experience & Difficulties 96

10. Suggestions and Recommendation 98

11. Limitations 102

12. Bibliography 104

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5
 INTRODUCTION

What is Insurance?

Insurance is a means by which a person or company, can transfer insurable risks to an

insurance company, against the payment of a premium.

Insurance is not necessarily an investment from which one expects to get one's money back.

Nor is it gambling. A gambler takes risks, while insurance offers protection against risks that

already exist. Insurance is a way to share risk with others. Since ancient times, communities

have pooled some of their resources to help individuals who suffer loss.

"Insurance is a contract between two parties whereby one party called insurer undertakes in

exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount

of money on the happening of a certain event."

“Insurance is a protection against financial loss arising on the happening of an unexpected

event. Insurance companies collect premiums to provide for this protection. A loss is paid out

of the premiums collected from the insuring public and the Insurance Companies act as trustees

to the amount collected.”

For example, in a Life Policy, by paying a premium to the Insurer, the family of the insured

person receives a fixed compensation on the death of the insured.. It is a system by which the

losses suffered by a few are spread over many, exposed to similar risks. Insurance is desired to
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safeguard oneself and one's family against possible losses on account of risks and perils. It

provides financial compensation for the losses suffered due to the happening of any unforeseen

events. By taking life insurance a person can have peace of mind and need not worry about the

financial consequences in case of any untimely death..

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 Principles of Life Insurance

Insurance is a 'risk transfer mechanism' - it transfers the financial risks of everyday life from

you to an insurance company. But only in terms of the financial consequences of risk. Without

insurance, if you car was damaged, it would cost you a lot of money to fix it or to buy another

one. It could cost you even more to pay for compensation to someone else involved in an

accident. Insurance protects your financial interests.

Insurable Interest

Before you can insure anything, you must have a legally recognized financial interest in what

you are insuring

Indemnity

This word is used to describe the type of payment you would receive. It means, subject to the

terms of the contract, you are entitled to be put back in the same financial position after a loss

as you were in before the loss. In terms of a 'new for old' policy the measure of indemnity is

agreed at the point of sale rather than the time of claim.

Contribution

If there is more than one policy in force that you could claim on, you can't get payment from

them both that would exceed the value of your loss. So each policy would contribute a portion

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of the loss. You would receive the full value of the loss but no more and the two policies would

only bear part of it each.

Subrogation

This is the right that your insurer has to recover from someone else where you are entitled to

do so. For example, if another driver causes damage to your car, and your insurers pay for it,

subrogation gives them the legal right to 'stand in your shoes' and reclaim their outlay from the

responsible driver.

Utmost Good Faith

“A positive duty to disclose, accurately and fully, all the facts material to the risk being

proposed, whether asked for or not.”

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 HISTORY OF INSURANCE

Insurance has been around since ancient times. The Babylonians and Phoenicians had ocean

marine insurance to protect a merchant against losses incurred when a ship did not reach its

intended destination with its load of goods or did not return with payment. This form of

insurance, called respondent, evolved because the goods on board often were used as collateral

for a loan. The lender charged the borrower interest on the loan and levied an additional sum,

the premium, to cover the cost of the respondent contract. If the ship reached its destination and

returned, the merchant received payment for the goods and in turn paid the moneylender. If the

ship failed to return, the debt was cancelled. This system was profitable to lenders because

many respondent contracts were sold, and debts were paid more often than cancelled.

In ancient Rome, associations had a form of insurance for their members. Each member made

regular payments to the association in return for coverage of funeral expenses or for assistance

to family members who were injured or ill.

Insurance also existed in 17th-century England, which was then one of the world's principal

maritime powers. Those seeking marine insurance would post a

list of their cargo and voyages in a London coffee house owned by Edward Lloyd. Private

investors would examine the list and sign their name by the entries they were willing to

guarantee for a fee. These private investors were the first insurance underwriters, and the

coffee house became the world center of marine insurance. Today the organization is known as

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Lloyds of London, and it brings together individuals, most often working in syndicates, who

write all types of insurance.

Insurance in the modern form originated in the Mediterranean during 14th century. The earliest

references to insurance have been found in Babylonia, the Greeks and the Romans. The use of

insurance appeared in the account of North Italian merchant banks who then dominated the

international trade in Europe at that time. Marine insurance is the oldest form of insurance

followed by life insurance and fire insurance. The patterns that have been used in England

followed in other countries also in these kinds of insurance.

The oldest and the earliest records of marine policy relates to a Mediterranean voyage in 1347. In

the year 1400, a book written by a merchant of Florence, indicates premium rates charged for the

shipments by sea from London to Pisa.

The early developments of life insurance were closely linked with that of marine insurance. The

first insurers of life were the marine insurance underwriters who started issuing life insurance

policies on the life of master and crew of the ship, and the merchants. The early insurance

contracts took the nature of policies for a short period only. The underwriters issued annuities

and pension for a fixed period or for life to provide relief to widows on the death of their

husbands. The first life insurance policy was issued on 18th June 1583, on the life of William

Gibbons for a period of 12 months.

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The history of life insurance in India dates back to 1818 when it was conceived as a means to

provide for English Widows. Interestingly in those days a higher premium was charged for

Indian lives than the non-Indian lives as Indian lives were considered more riskier for

coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the

first company to charge same premium for both Indian and non-Indian lives. The Oriental

Assurance Company was established in 1880. The first general insurance company- Tital

Insurance Company Limited was established in 1850. Till the end of nineteenth century

insurance business was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance Companies

Act of 1912 and the Provident Fund Act of 1912. Several frauds during 20's and 30's sullied

insurance business in India. By 1938 there were 176 insurance companies. The first

comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict

State Control over insurance business. The insurance business grew at a faster pace after

independence. Indian companies strengthened their hold on this business but despite the

growth that was witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and provident

societies under one nationalized monopoly corporation and LIC was born. Nationalization was

justified on the grounds that it would create much needed funds for rapid industrialization. This

was in conformity with the Government's chosen path of State- led planning and development.

The (non-life) insurance business, however, continued to thrive with the private sector till

1972. Their operations were restricted to organized trade and industry in large cities. The
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general insurance industry was nationalized in 1972. With this, nearly 107 insurers were

amalgamated and grouped into four companies- National Insurance Company Ltd., The New

India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India

Insurance Company Ltd. These were subsidiaries of the General Insurance Corporation of

India (GIC)

TYPES OF INSURANCE

General insurance

The basis for general insurance is "transfer of risk".

This means that the insurer agrees to compensate you if you suffer a loss. Without the

insurance you would have to pay for that loss yourself. Obviously this contract is made on the

basis that the insurance company calculates the risk that you, or the total number of people

buying insurance, will cost more in payouts than what is received in premiums. This is

determined by the use of statistics and the information you disclose on your application for

insurance.

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This includes:

Home contents. It can either be "defined event" i.e. the policy covers loss or damage from a list

of "defined" events, e.g. storm or fire; or "accidental loss or damage" i.e. all accidental loss

with some exclusions.

Motor vehicle

It can either be "comprehensive" i.e. it covers any damage to your car as well as damage to the

other car or another person's property; "third party property" i.e. it covers damage caused by

your car to another person's property. This type of insurance will not cover you for the cost of

repairs to your own car; "third party fire and theft i.e. it covers damage partly for damage

caused by your car to another person's property, and restricted cover for damage to your car

cause by theft or fire.

Income protection. With this type of insurance the insurer agrees to pay you a specified amount

of money, usually in monthly payments, in the event that you become disabled and unable to

work. Along the same lines you an purchase "trauma insurance" to cover a medical trauma

such as a heart attack.

Also in the modern day world a number of utility specific insurance policies are being

launched by the various players in the insurance market in an effort to stay one step ahead of

their competitors. Hence to make the Definition of General Insurance more broad based and

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inclusive we can say that all the policies which do not fall under “Life Insurance “ category

fall under the General Insurance category.

Life Insurance

Life insurance is insurance that will protect your family and/or specified dependents in the

event of the policy holder’s death. In general, it is an essential component in planning for the

future.

There are many options with coverage, depending on your situation. And there are three main

categories of life insurance: term life, universal life, and whole life insurance.

Term life is the simplest and least expensive type of policy. It's pure insurance with no cash

value account. A term life policy has only one function: to pay a specific lump sum to

whomever you've designated, upon a specific event, your death.

Whole life insurance provides permanent protection for your dependents while building a cash

value account. With this type of insurance, the insurance company manages the policies

various accounts.

Universal life insurance provides permanent protection for your dependents and is more

flexible than whole or variable life.

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 KINDS OF LIFE INSURANCE PRODUCTS

Term Life Insurance

Term life insurance is the easiest form of life insurance. It simply provides insurance protection

for a period of time and only pays a benefit during that period. Since term life insurance has no

cash value, the amount of protection in this policy is equal to its death benefit. There are three

basic forms of term life insurance: level term, decreasing term, and increasing term.

Level Term Life Insurance

Level term life insurance provides an equal amount of protection for a period of time. For

example a Rs 150,000 ten-year level term life insurance policy pays out Rs 150,000 of

coverage until the ten years are over. At the end of the ten years this level term life insurance

policy would expire, and would pay out no benefits.

Decreasing Term Life Insurance

Decreasing term life insurance is a policy where the benefit amount decreases gradually over

the term of the protection. A 30 year Rs 200,000 decreasing term policy, for example, wound

pay a Rs 200,000 benefit at the beginning of the policy. This amount would gradually decline

over the 30-year term and would pay out Rs 0 at the end of the term.

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Increasing Term Life Insurance

Increasing term life insurance policies provide a payout benefit that gradually increases at

periodic intervals. These increase amounts are usually a percentage of the original amount..

When changing the policy, your premium term life insurance rates are based on either your

current age, or the age when you originally took out the policy. Depending on how your policy

is set up, you could be paying much lower interest rates that you would have normally

qualified for.

Whole Life Insurance

Whole life insurance is a popular life insurance plan because it provides permanent protection,

provided premiums are paid. The advantages of whole life insurance plans are cash values,

maturity at age 100, and living benefits. Also the policy's premiums and benefits remain

constant throughout the policy's life. Unlike term life insurance, which provides only death

protection, whole life insurance combines insurance protection with savings benefit. The cash

value of this type of insurance builds over the life of the policy. This is because whole life

insurance plans are given a certain guaranteed interest rate. Another benefit of whole life

insurance policies is that they are designed to mature at the age of 100. The premium rate for a

whole life insurance is based on the assumption that the insured would be paying premiums

until the age of 100. This means that at age 100, the cash value of the policy has come to the

point when it equals the face amount of the policy. At this point the policy has completely

matured, no more premiums are owned, and the policy is completely paid out to the policy

owner.

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Universal Life Insurance

Universal life insurance is a variation of whole and term life insurance, with added flexibility

and transparency. This added flexibility allows the policy owner to determine the amount and

frequency of premium payments and to adjust the benefit payout amount up or down to reflect

changes in needs.. Universal life insurance policies remain in force as long as there enough

cash value to pay the monthly mortality expenses, regardless of whether or not the policy

owner pays the premium.

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 OVERVIEW OF THE LIFE INSURANCE SECTOR IN INDIA

With largest number of life insurance policies in force in the world, Insurance happens to be a

mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and

presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per

cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds

available with LIC for investments are 8 per cent of GDP.Yet, nearly 80 per cent of Indian

population is without life insurance cover, health insurance and non-life insurance continue to

be below international standards. And this part of the population is also subject to weak social

security and pension systems with hardly any old age income security. This itself is an

indicator that growth potential for the insurance sector is immense. A well-developed and

evolved insurance sector is needed for economic development as it provides long term funds

for infrastructure development and at the same time strengthens the risk taking ability. It is

estimated that over the next ten years India would require investments of the order of one

trillion US dollars. The Insurance sector, to some extent, can enable investments in

infrastructure development to sustain economic growth of the country. With a large capital

outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks

throughout the development, construction and operation stages. These include risks associated

with project implementation, including geological risks, maintenance, commercial and political

risks. Without covering these risks the financial institutions are not willing to commit funds to

the sector, especially because the financing of most private projects is on a limited or non-

recourse basis. Insurance companies not only provide risk cover to infrastructure projects, they

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also contribute long-term funds. In fact, insurance companies are an ideal source of long term

debt and equity for infrastructure projects. With long term liability, they get a good asset-

liability match by investing their funds in such projects. IRDA regulations require insurance

companies to invest not less than 15 percent of their funds in infrastructure and social sectors.

International Insurance companies also invest their funds in such projects. Insurance is a

federal subject in India. There are two legislations that govern the sector- The Insurance Act-

1938 and the IRDA Act- 1999. The Government of India liberalized the insurance sector in

March 2000with the passage of the Insurance Regulatory and Development Authority (IRDA)

Bill, lifting all entry restrictions for private players and allowing foreign players to enter the

market with some limits on direct foreign ownership. Under the current guidelines, there is a

26 percent equity cap for foreign partners in an insurance company. There is a proposal to

increase this limit to 49 percent. Premium rates of most general Committee. The opening up of

the sector is likely to lead to greater spread and deepening of insurance in India and this may

also include restructuring and revitalizing of the public sector companies. A host of private

insurance companies operating in both life and non-life segments have started selling their

insurance policies since 2001.

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 Insurance Regulatory and Development Authority (IRDA)

On 19th April 2000, the Authority has been notified in the Gazette of India in terms of

Insurance Regulatory and Development Authority Act, 1999 (IRDA Bill). The Authority has

also been constituted.

Mission: To protect the interests of the policyholders, to regulate, promote and ensure orderly

growth of the insurance industry and for matters connected therewith or incidental there

DUTIES, POWERS AND FUNCTIONS OF AUTHORITY

AS per the INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

ACT, 1999

 14(1) Subject to the provisions of this Act and any other law for the time being in

force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the

insurance business and re-insurance business.

 14(2) without prejudice to the generality of the provisions contained in sub-section (1),

the powers and functions of the Authority shall include,--

a). issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or

cancel such registration;

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b). protection of the interests of the policy-holders in matters concerning assigning of

policy, nomination by policy-holders, insurable interest, settlement of insurance claim,

surrender value of policy and other terms and conditions of contracts of insurance;

c). specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

d). specifying the code of conduct for surveyors and loss assessors;

e). promoting efficiency in the conduct of insurance business;

f). promoting and regulating professional organization connected with the insurance and

re-insurance business;

g) Levying fees and other charges for carrying out the purposes of this Act;

h) calling for information from, undertaking inspection of, conducting enquiries and

investigations including audit of the insurers, intermediaries, insurance intermediaries and

other organizations connected with the insurance business;

i). control and regulation of the rates, advantages, terms and conditions that may be offered

by insurers in respect of general insurance business not so controlled and of 1938 regulated by

the Tariff Advisory committee under section 64U of the Insurance Act, 1938;

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j). specifying the form and manner in which books of account shall be maintained and

statement of accounts shall be rendered by insurers and other insurance intermediaries;

k). regulating investment of funds by insurance companies;

regulating maintenance of margin of solvency;

l). adjudication of disputes between insurers and intermediaries or insurance intermediaries;

m). supervising the functioning of the Tariff Advisory committee;

n). supervising the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organization referred to in clause (f);

o). specifying the percentage of life insurance business and general insurance business to

be undertaken by the insurer in the rural or social sector; and

p). exercising such other powers as may be prescribed.

The founder chairman of IRDA was Mr. N.Rangachary. It was under his stewardship that the

Indian Insurance industry really opened up

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 FACTS AND STATISTICS:

The primary business of life insurance companies is no longer traditional life

insurance, but the underwriting of annuities — contracts that guarantee a fixed or variable

payment over a given period of time. Nevertheless, the sale of such life insurance products as

whole life and term life policies in particular remains an important part of the business.

Life insurance is protection against financial loss resulting from death. It is an insurance

company's promise to pay your beneficiary a specific amount of money when you die in

exchange for timely payment of premiums.

Why do you need Life Insurance –?

Although you may not think about it, your ability to earn income is a

Significant asset and life insurance helps replace lost income in the event of your premature

death.

Here are some reasons people buy life insurance.

• To replace income the family would need to maintain their standard of living after

the death of a wage earner.

• To pay off a mortgage loan and other personal and business debts or to create a rent

fund.

• To create a fund for children's education.

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 • To create a family emergency fund or a fund for a family member with special

needs.

SOME IMPORTANT CONCEPTS

Annuitant

This is the person who receives certain amounts at yearly / half-yearly / quarterly / monthly

intervals.

Assignee

This is the person to whom the benefits under a life policy are assigned.

Assignor

Assignor is the person who holds the right/title under the policy and who can make a valid

assignment.

Bonus

This is the amount added to the basic sum assured under a with-profit life insurance policy.

Claim Amount

The amount payable by the insurer under a policy on a claim arising.

Dating Back

Dating back or Back Dating is an option to the life assured to get the advantage of lower age

wherein the policy is commenced from a date earlier than the date of signing of proposal form.

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However back dating is limited to one year

Deferred Annuity

An annuity plan where the first annuity payment becomes payable after a chosen period that

exceeds one year.

Deferment date

The date on which the deferment period ends

Deferment period

The period from the date of commencement of the policy to the date of commencement of risk

on the child's life under a Children's Deferred Endowment

EPDB

Extended Permanent Disability Benefit

Female lives

Category I: Women with income earned by

• Virtue of their employment in any reputed organization or institution eligible for Non

Medical Special Schemes.

• Professions such as Medicine, Law, Charted Accountancy etc. and lady career agents of

LIC.

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Category II: Women with unearned income attracting payment on income tax or women

holding sizeable personal properties/investments yielding income attracting assessment for

income tax.

First Class Life

An Individual is categorized as First Class Life if is eligible to have insurance coverage at

normal rates of premium.

First Unpaid Premium (FUP)

First unpaid premium refers to the first default in paying premium by the policy holder. On

payment of the due premium a receipt is issued and this receipt indicates the date of next due.

If this due premium is not paid that date becomes the date of FUP.

Guaranteed Insurance Sum (GIS)

Guaranteed Insurance Sum is equal to purchase price paid for a pension along with final Jeevan

Akshay Bonus.

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Gross Insurance Value Element (GIVE)

Gross Insurance value element is the amount payable on death of a policy holder under a

Jeevan Dhara Policy.

Guaranteed Additions

Guaranteed Additions are calculated at a rate per every thousand of sum assured. They are

added to the basic sum assured and are payable on admittance of claim. This benefit is allowed

only for each year for which premiums are paid.

Life Assured

Refers to the person whose life is being insured.

Last Birth Day (L.B.D)

Age at last Birthday

Moral Hazard

Moral Hazard is said to exist in the case where we notice the absence of a genuine need for a

life insurance or when a proposal for insurance is submitted by an individual beyond his

means.

Near Birth Day (N.B.D)

Age on nearest birthday

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Nominee

Nominee is the person who is nominated to receive the amount under a policy and to give a

valid discharge to the insurer on settlement of claim under a life insurance policy.

Paid up value
The reduced amount of sum assured paid by the insurer in case of discontinuation of the

payment of premiums after paying the full premiums for the first three years.

Premium

The amount paid to secure an insurance policy.

Proposal Form

It is a form which is to be completed for securing an insurance policy.

Proposer

A person who proposes the insurance policy.

Premium Waiver Benefit (PWB)

The benefits which can be availed under children's policies, wherein the future premiums

payable up to vesting date are waived in the event of death of the proposer.

Sum assured

the amount that an insurer agrees to pay on the occurrence of an event.

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Surrender values

The amount payable to the policy holder on his surrendering his right under a policy and

terminating the contract of insurance.

Term

The period for which insurance coverage is given.

Vesting Bonus

It is the Bonus, which the insurer declares after evaluating its assets and liabilities, and that is

added to the sum assured under a policy.

Waiting Period

It is the period starting from date of commencement of a policy to the date of commencement

of risk under a Jeevan Kishore Policy.

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 LIFE INSURANCE CORPORATION OF INDIA

LIC was formed on 1-9-1956 by Government of India by nationalizing the then existing

private insurance companies. At that time the objective of nationalization of the life insurance

business was to canalize the funds of LIC for the benefit of the people of India. LIC invests

not less than 75% of its funds in Central Government Securities, State Government Securities

and the balance is invested by LIC in the private sector

The central office of LIC is located at Mumbai.

The insurance market is likely to witness a sea change in the marketing mix that is product,

price, place (distribution channel) and promotion. The customer-driven market will result in lot

of flexibilities and innovations in product, pricing, distribution channels and communication

mechanisms. The IRDA, with its developmental and regulatory guidelines, is likely to promote

competition, fairness, and reliability, and, at the same time, protect insurance against excessive,

Today the Indian consumers are increasingly becoming more aware and are actively managing

their financial affairs. Today, while boundaries between various financial products are blurring,

people are increasingly looking not just at products, but at integrated financial solutions that

can offer stability of returns along with total protection.

To satisfy these myriad needs of products, insurance products will need to be customized.

Insurance today has emerged as an attractive and stable investment alternatively that offers

31
total protection - Life, Health and Wealth. In terms of returns, insurance products today offer

competitive returns ranging from 7% to

9%. Besides returns, what really increases the appeal of insurance is the benefit of life

protection from insurance products along with health cover benefits.

“When winds of change blow some seek shelter, while some develop windmills”

the quote can be nailed to all the Insurance companies no matter nationalized or private. Every

company is gearing up and pulling up their socks to tap the maximum chunk of population,

which is uninsured. (Statistically, it is 96.5% of population is uninsured only 35 millions or

3.5% of the total population are insured).

Whether the insurer is old or new, private or public, expanding the market will present

multitude of challenges and opportunities. But the key issues, possible trends, opportunities

and challenges that insurance sector will have still remains under the realms of the possibilities

and speculation.

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LIFE COVERAGE IN DIFFERENT COUNTRIES

Individual life insurance Coverage Index, 2009

Country (No. Of policies per 100 persons)

Indonesia 3.0
Philippines 6.6
India 27.6
Thailand 18.7
Malaysia 39.5
Hong Kong 74.4
South Korea 77.5
Taiwan 84.2
Singapore 112.6

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 LIFE INSURANCE COMPANIES

S.No NAME OF THE COMPANY NAME NAME TELEPHONE NO./FAX

OF OF APPOINTED No./E-MAIL & WEB
PRINCIPAL ACTUARY ADDRESS
OFFICER

1. Bajaj Allianz Life Insurance Mr. Sam Mr. Andrew Wakeling Tel : 020-4026666
Company Limited . Ghosh Fax : 020-4026789
GE Plaza, Airport Road , .
YerawadaPune 411 006
2. Birla Sun Life Insurance Co. Mr. Kedar Mulgund Tel : 022 5678 3333
Ltd Fax: 022 5678 3232
6th Floor, Vaman Centre, Mr R DMohan
Makhwana Road,
off Andheri-Kurla Road
Andheri(E) MUMBAI-400 059.
3. HDFC Standard Life Insurance Mr.D.M. Mr. Nick Taket Tel : 022-822 2234/5551
Co. Ltd Satwalekar 6551
"Trade Star", 2nd floor, 'A' Fax: 022-2822 8844
Wing, Kondivita Road Junction
Andheri-Kurla Road Andheri
(East) Mumbai 400 059.

4. ICICI Prudential Life Insurance Ms. Shikha Mr. V. Rajagopalan Tel :022-56621996
Co. Ltd Sharma Fax: 022-56622031
ICICI Prulife Towers , 1089,
Appasaheb Marathe Marg,
Prabhadevi, Mumbai 400 025.
5. ING Vysya Life Insurance Mr. Frank Ms. Hemamalini Tel : 080-25328000
Company Pvt. Ltd. Koster Ramakrishnan Fax: 080-25559764
ING Vysya Home, 5th Floor,
#22 Mahatma gandhi Road

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6. Life Insurance Corporation of Shri A.K, Mr. Gorakh Nath Tel 56598701;56598702
IndiaYogakshema, Jeeva Bima Shukla Agarwal Fax: 22824386
Marg, Post B19953MUMBAI E-Mail ;
400 021 ox chairman@licindia.com

7. Max New York Life Insurance Mr. Gary R. Mr. John Charles Poole Tel : 0124-2561717
Co. Ltd Benett Fax: 0124-2561764
11th Floor, DLF Square,
Jacaranda Marg, DLF City ,
Phase-II, GURGAON 122 002.

8. Met Life India Insurance
Company Pvt. Ltd.
Brigade Seshamahal, No. 5,
Vani Vilas Road,
Basavanagudi, BANGALORE-
560 004.
9. Kotak Mahindra Old Mutual
Life Insurance Limited
Mr. Venktesh Mr. K. P. Sharma Tel : 080-26438638
Mysore Fax: 080-26521970
Toll Free No. 1-600-44-
6969
Mr. Gaurang Mr. A. Tel : 022-5663 5000
Shah Venkatasubramanian Fax:022-5663 5111

6th Floor Penisula Chambers,

Penisula Corporate Park,
Ganpatrao Kadam Park
Lower Parel,
MUMBAI-400 013.
10. SBI Life Insurance Co. Ltd Mr. S. Mr. I Sambasiva Rao Tel : 022-56392000
Turner Morrison Building, 2nd Krishna murthy Fax: 022-56621471
Floor, 16, Bank Street, Fort
Mumbai-400 023.
11. Tata AIG Life Insurance Mr.Ian J.Watts Mr. Heerak Basu Tel : 022-56516000
Company Limited Fax : 022-56550711
5th 7 6th Floor, Peninsula
Tower,
Peninsula Corporate Park
Ganpatrao Kadam Marg, Lower
Parel,
MUMBAI 400 013.

35
36
LIFE INSURANCE INDUSTRY IN THE YEAR 2000-2001 HAD 10 NEW
ENTRANTS, NAMELY:

S.No Registrati Date of Reg. Name of the Company

on
Number
1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.
2 104 15.11.2000 Max New York Life Insurance Co. Ltd.
3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.
4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited
5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance Company Limited .
8 114 02.08.2001 ING Vysya Life Insurance Company Private
Limited
9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited
10 117 06.08.2001 Met life India Insurance Company Pvt. Ltd.

37
38
 COMPANY PROFILE

Limited Bajaj Allianz Life Insurance Company

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading

conglomerates- , Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world

and Allianz AG, one of the world's largest insurance companies.

Bajaj Allianz Life Insurance

• Is the fastest growing private life insurance company in India

• Currently has over 4,40,000 satisfied customers

• We have a presence in more than 550 locations with 60,000 Insurance

Consultant providing the finest customer service.

• One of India's leading private life insurance companies

39
 Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General 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 (R3) 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 crores. Bajaj Auto holds 74% and the remaining 26%

is held by Allianz AG, Germany.

In its first year of operations, the company has acquired the No. 1 status among the private

non-life insurers. As on 31st March 2003, Bajaj Allianz General Insurance maintained its

leadership position by garnering a premium income of Rs.300 Crores. Bajaj Allianz also

became one of the few companies to make a profit in its first full year of operations. Bajaj

Allianz made a profit after tax of Rs.9.6 crores.

Bajaj Allianz today has a network of 42 offices spread across the length and breadth of the

country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are

interconnected with the Head Office at Pune.

In the first half of the current financial year, 2009-10, Bajaj Allianz garnered a premium

income of Rs. 405 crores, achieving a growth of 84% and registered a 52% growth in Net

profits of Rs.20 Crores over the last year for the same period. In the financial year 2008-09, the

40
premium earned was Rs.480 Crores, which is a jump of 60% and the profit zoomed by 125% to

Rs. 21.6 Crores

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.

Allianz Group

Allianz Group is one of the world's leading insurers and financial services providers. Founded

in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees.

At the top of the international group is the holding company, Allianz AG, with its head office

in Munich.

Allianz Group provides its more than 60 million customers worldwide with a comprehensive

range of services in the areas of:

• Property and Casualty Insurance,

• Life and Health Insurance,

• Asset Management and Banking.

41
Easy access and reach across the country –

Bajaj Allianz Life has offices now in over 510 towns across the country enabling customer to

buy our products and get quality efficient service almost anywhere across the country

ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE

• Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 cr.

• 3rd largest Assets Under Management (AUM) & largest amongst Insurance

cos. - AUM of Rs.51,96,959 cr.

• 12th largest corporation in the world

• 49.8 % of global business from Life Insurance

• Established in 1890, 110 yrs of Insurance expertise

• 70 countries, 173,750 employees worldwide

42
 BAJAJ GROUP

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest

manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.

A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous

with quality & customer focus.

A STRONG INDIAN BRAND- HAMARA BAJAJ

• One of the largest 2 & 3 wheeler manufacturer in the world

• 21 million+ vehicles on the roads across the globe

• Managing funds of over Rs 4000 cr.

• Bajaj Auto finance one of the largest auto finance cos. in India

• Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03

• It has joined hands with Allianz to provide the Indian consumers with a distinct option

in terms of life insurance products.

• As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to

offer -

• Financial strength and stability to support the Insurance Business.

• A strong brand-equity.

• A good market reputation as a world class organization.

43
 • An extensive distribution network.

• Adequate experience of running a large organization.

Bajaj Allianz Life Insurance Company has developed insurance solutions that cater to

every segment and age-income profiles. For companies it provides comprehensive 'Employee

Benefit Solutions' (Group Term Life, EDLI, Gratuity, Superannuation, Keyman Insurance and

more); for the individual Invest Gain (a unique life insurance plan where sustenance of income

is combined in the same plan that also pays a lump sum), Cash Gain (Money Back), Child Gain

(Children's plan), Risk Care (Pure Term), Lifetime Care (whole life), Term Care (term with

return of premium), Swarna Vishranti (Retirement Plan), Protector (Mortgage term insurance

plan), Unit Gain (Unit Linked Plan), Unit Gain Single Premium, Unit Gain Plus, Unit Gain

Plus SP, Lifelong Gain Plan, Unit Gain Single Pension & Unit Gain Easy Pension Plans.

LIC loses grip on market, share down to 71%

The state-owned life insurance behemoth Life Insurance Corporation (LIC) despite having a

record breaking performance in 2005-06 has lost over seven per cent of its market share in

2005-06. The LIC’s market share has fallen to 71.04 % from 78.07% in 2004-05.

The Bajaj Allianz Life Insurance with a market share of 26.5 % in the private sector life

insurance segment has emerged as the No 1 private sector life insurance company in 2007 -08

as per IRDA results, leading by Rs 78 crore in the new business. The total new premium of the

Bajaj Allianz Life Insurance is estimated at Rs 2715 crore.

44
It is also the no 1 private sector life insurance co. for individual life business (retail) as per

IRDA results leading by Rs 339 cr. in the new business. The company has grown by 216 % for

the FY 05- 06.

The former no 1 private sector life insurance company ICICI Prudential has a market share of

25.7% in the private sector life insurance sector. The total new premium of the company is at

Rs 2637 crore.

The gross premium income of HDFC Standard Life Insurance Company Limited (HDFC-SL)

for the year ended March 31, 2009 was Rs. 1,570 crores as compared to Rs. 687 crores in the

previous year – a growth of 129%. New business premium income amounted to Rs. 1,026

crores as compared to Rs. 486 crores last year. The cumulative sum assured stood at Rs. 47,730

crores.

For the year ended March 31, 2009 reported a profit after tax of Rs. 4.41 crores as against a

loss of Rs. 7.98 crores in the previous year.

The gross written premium for the year stood at Rs 206 crores as compared to Rs 184 crores in

the previous year. The total new premium of Reliance Life Insurance which bought over the

business of AMP Sanmar is estimated at Rs 193 crore. The Bajaj Allianz General Insurance

With a total new premium of around Rs 1500 crore is reported to have made a profit of Rs 50

crore in 2008-09

45
 The ICICI Lombard with a new premium of over Rs 1500 crore in 2008-09.The private sector

life insurance industry has recorded a growth of 84 % in 2008-09.The Tata Aig has posted a

total new premium of Rs 463 crore while SBI Life has grown by Rs 828 crore during the year.

Aviva Life has increased its premium by Rs 407 crore while Birla Sunlife has grown its

premium by Rs 678 crore in 2008-09

Why Bajaj Allianz?

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

Trust

At Bajaj Allianz, we realize that you seek an insurer whom you can trust. Bajaj Auto Limited is

trusted name for over 55 years in the Indian market and Allianz AG has over 110 years of global

experience in financial services.

Underwriting Philosophy

Our underwriting philosophy focuses on :

• Understanding the customer's needs

• Underwriting what we understand

• Meeting the customer's requirements

46
 • 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

• 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.

Experienced and Expert Servicing Team

We are driven by a team of experienced people who understand Indian risks and are supported by

the necessary international expertise required to analyses and assess them.

Superior Technology

47
 • In order to ensure speedy and accurate processing of your needs, we have established

world class technology, with renowned insurance software, which networks all our offices

and intermediaries

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

products

• Unique, user friendly software developed to make the process of issue of policies and

claims settlement simpler (e.g. online insurance of marine policy certificate)

Unique Forms of Risk Cover

• Special PA cover for Amaranth Yatris

• 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

48
 • Ongoing dialogue and proactivity

Focused group network

Bajaj Allianz Life Insurance

Group and Alternate

Agency Channel Bancassurance Channel

Branches Group Employee

Standard Chartered Benefit
Satellite Satellite Bank
Satellite Corporate Agency
Syndicate Bank
Franchisee
Centurion Bank
Brokers
Cosmos Bank

Jankalyan Sahakari
Bank

Jijamata Sahakari
Co-op Bank

49
 Hana Bank
Grand
Commercial

Ta Chong Bank
Taipei Bank
Allianz Group - Global Banc assurance Experience

Union Bank Europe

Asia Alliance Bank Germany Dresdner Bank
Korea Bank of Ayudhya Hypo Vereins bank
Taiwan
Raiffeisen bank
Bradesco France Lyonnais
Banco Bice Italy Unicredito Italiano
BanCrecer Rolo Banca
Malaysia Casa di Risparmio
Thailand Credit Banco di Scicilia
Banco Antoniana Popular
South Banco Regionale Europe
America Spain Banco Popular
Brasil Portugal BPI-SGPS
Chile Austria Bawag
Mexico Greece Ergo Bank
Bank of Piraeus
Czechoslovak Croatia Zagre backa Bank
ia Bulgaria Bulbank
Hungary Poland Pekao S.A.
BPH

50
 UNIT GAIN PLAN

Bajaj Allianz Unit Gain offers the unique option of combining the protection of life insurance

with the attractive prospects of investing in securities. You have the choice of 6 investment

51
funds with flexible investment management; you can change funds at any time. You also

benefit from attractive tax advantages and unmatched flexibility -to match your changing

needs. And the advantage of low fund management & fund administration costs. This plan

gives you the unmatched flexibility to match your needs.

Minimum sum assured: 5 times the annual premium

Maximum sum assured: Y times the annual premium where Y is---

Age 0-30 31-35 36-40 41-45 46-55 56-60

Y 125 105 75 55 30 20

Key Features:-

• Guaranteed death benefit

• Choise of 6 investment funds

• Provision of full &partial withdrawal after full 3 years premium is paid.

• Unmatched flexibility to match your changing needs

Birla Sun Life Insurance Company Limited

The company is the result of a joint venture between The Aditya Birla Group and Sun Life

Financial, a leading international financial services organization. The Aditya Birla Group is the

52
second largest business house in India, with a turnover exceeding Rs 260 billion and an asset

base in excess of Rs 180 billion.

Vision

To be a world class provider of financial services to individuals over their lifetime

Mission

To be the first preference of their customers as a leading Integrated Insurance Provider of

insurance solutions through superior value creation and technology.

Core Values

 Operating with integrity to the very highest standards of business conduct.

 Always working with the customer's needs in mind.

 Relentlessly pursuing excellence through the people they employ and the work they

do.

 Providing products and services that add value for customers, channel partners and

build value for the shareholders.

UNIT-LINKED LIFE INSURANCE SOLUTIONS: THE BEST OF BOTH

WORLDS

53
Birla Sun Life Insurance was the first in India to introduce Unit-Linked Life Insurance plans. A

Unit-Linked plan is a coming together of security from Life Insurance and earnings from

investments. Which means, apart from securing your future, they offer efficient returns. What's

more, they're transparent, flexible and simple to understand.

What is the Plan about?

With insurance cover till the age of 100 years, this plan is designed to provide you a lifetime

of security. While its compounding factor keeps adding on to your Investment Fund, the

flexibility allows you to withdraw money from the fund whenever you require it in your

lifetime. Tax-free ** by nature, it is suitable to be used as a tax efficient pension plan.

Unique Features:

Lifelong Insurance cover till the age of 100 years.

Three Investment Fund Options: Protector, Builder and Enhancer, with the freedom to switch

between funds any time durinmg the policy tenure.*

Flexibility to make additional lump sum investments (top ups) to increase the savings portion

of your policy.
Minimum guaranteed returns of 3% p.a. on your premium net of policy fee and charges.The

entire upside on the performance of the Fund is passed on to you.#

Options to make tax free withdrawal**from your fund anytime after three years.

Loan against your policy or surrender of the policy without penalty after 4 policy years.@
Vary the Face Amount during the premium paying period depending on your Life Insurance

requirements.
Convenient premium payment options: Single Pay, Short Pay or Regular Pay.

54
 HDFC Standard Life Insurance Company Limited

HDFC Standard Life first came together for a possible joint venture, to enter the Life Insurance

market, in January 1995. It was clear from the outset that both companies shared similar

values and beliefs and a strong relationship quickly formed. Around this time Standard Life

purchased a 5% stake in HDFC, further strengthening the relationship. The next three years

were filled with uncertainty, due to changes in government and ongoing delays in getting the

IRDA (Insurance Regulatory and Development authority) Act passed in parliament. Despite

this both companies remained firmly committed to the venture.

55
In October 1998, the joint venture agreement was renewed and additional resource made

available. Around this time Standard Life purchased 2% of Infrastructure Development

Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC

Treasury department to advise them upon their investments in India.

The HDFC Unit Linked Endowment Plan gives you:

An outstanding investment opportunity by providing a choice of thoroughly

researched and selected investments

Valuable protection to your family in case you are not around
Flexible benefit combinations and payment options
Flexible additional benefit options such as critical illness cover
Access to your accumulated fund before maturity
MINIMUM PRIMIUM: Rs 10000 per year (you can pay monthly, quarterly, half

yearly, annually mode)

KEY FEATURES:

• 6 funds are there for allocating money

• Top up of Rs.5000 is allowed

• You can switch to one fund to other any time

• Withdrawal can be made after three years

• Tax benefit under section 80(c) and 10(10d)

• Benefits they are providing:

 Death benefit

 Critical illness benefit

56
  Accidental benefit

Prudential Life Insurance Company Limited ICICI

ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The

authorized capital of the company is Rs.2300 Million and the paid up capital is Rs. 1500

Million. The Company is a joint venture of ICICI (74%) and prudential plc UK (26%).

The Company was granted Certificate of Registration for carrying out Life Insurance business,

by the Insurance Regulatory and Development Authority on November 24, 2000. It

commenced commercial operations on December 19, 2000, becoming one of the first few

private sector players to enter the liberalized arena.

Prudential plc:

Prudential plc was founded in 1848. Since then it has grown to become one of the largest

providers of a wide range of savings products for the individual including life insurance,

pensions, annuities, unit trusts and personal banking. It has a presence in over 15 countries, and

caters to the financial needs of over 10 million customers. It manages assets of over US$ 259

billion (Rupees 11, 39,600 crores approx.) as of December 31, 1999. Prudential plc. has had its

presence in Asia for the past 75 years catering to over 1 million customers across 11 Asian

countries.

UNIT LINK PLAN:

57
This plan gives you protection as well as investment option

Allocation under this plan: Minimum 70% in Debt

Maximum 30% in Equity

Annual Premium: Rs 8000 paid annually

Rs 4000 half yearly

Rs 667 monthly

KEY FEATURES:

 Withdrawal after three years

 BENEFITS: 1) Death benefit

2) Maturity benefit

3) Loan against policy

4) You can do top up by minimum amount of Rs.1000

OM Kotak Mahindra

OM Kotak Mahindra Life Insurance Company Limited (OMKM) is a joint venture between

Kotak Mahindra Finance Ltd., and Old Mutual plc aims to help customers take important

financial decisions at every stage in life by offering them a wide range of innovative life

insurance products, to make them financially independent. Jeene Ki Azaadi...

Kotak Mahindra Finance Ltd

58
Kotak Mahindra is one of India's leading financial institutions, offering complete financial

solutions that encompass every sphere of life. From Banking, to Stock Broking, to Mutual

Funds, to Life Insurance, to Investment Banking, the company caters to the financial needs of

individuals and corporate.

Kotak has a group net worth of around Rs.1,400 crore and currently employs over 2,000

dedicated employees in its various businesses. With a presence in about 50 locations in India

and offices in New York, London, Dubai and Mauritius, the group currently services a

customer base of over 5, 00,000.

INVESTMENT PLAN

Kotak Safe Investment Plan II is an opportunity to invest in the capital markets and gain

market linked, tax-free returns

MINIMUM PREMIUM: Rs 10000 paid annually, halfyearly, quarterly

KEY FEATURES:

 Five funds for allocation

 BENEFITS :

 Maturity Benefit

 Death Benefit

59
  Switching:

 Loan Facility

 Accidental Death Benefit (maximum of Rs.10 lakhs).

 Permanent Disability Benefit

 Critical Illness Benefit

MARKET SHARE

Life Insurance Market

Share 2008-09 2009-10

LIC 87.7 71.04
Pvt. Players 12.3 28.96

60
 growth in market share of private
players
COMPANIES MARKET SHARE (%)
Bajaj
100
Allianz 26.5
ICICI Pru
87.7 25.7
90
HDFC 10.04
aaaaaaaare RRE
shares
m a r k e t shares

80 71.04
SBI life 8.09
70
Birla SunLife 6.61
60
Tata AIG 4.51
LIC
50
Max New York 4.3Players
Pvt.
40
r e (%)Aviva 28.96 4
30
Kotak Mahindra 3.88
20others 12.3 6.37
10
0
2008-09 2009-10
years

61
 Bajaj Allianz No. 1 among Private life
insurance companies
30 26.5 25.7
25
Share in %

20

15
10.04
10 8.09
6.61 6.37
4.51 4.3 4 3.88
5

0
ICICI Pru

sbi life

others
HDFC

SunLife

Aviva
Tata AIG
Max New

Mahindra
Allianz
Bajaj

Birla

York

Kotak

62
 Bajaj Allianz
MARKET SHARE
ICICI Pru

HDFC

SBI life
Birla SunLife

Tata AIG
Max New York

Aviva
Kotak Mahindra

others

63
 COMPARISION

BIRLA
Particular BAJAJ HDFC KOTAK ICICI PRU
SUNLIFE
ALLIANZ LIFE LIFE

Entry Age Min-0 Min- 18; Min - 18 Min- 0 days;

Max-60 yrs Min- 30 days; Max- 60 Max - 65 Max- 60 years
Max- 65 years years
years

Maturity Age 70 years To age 85 yrs 75 Yrs. 70 years 70 years

Premium Quarterly, Quarterly, Quarterly, yearly

Single Pay
Term Half yearly, Half yearly, Half yearly,
Annually Annually Annually
,Single ,Single
Premium Premium

MINIMUM
PREMIUM Rs 10000 Rs 10000
No min.
(RS)
premium.
RS.10000

RS 18000

64
 P a r tic u la r

I n v e s t m e En tq
65
P a r t i c u l a rB
AL
A fte
S u r r e n d pe r e m
66
67
 OBJECTIVE OF THE STUDY

TO MAKE COMPARATIVE ANALYSIS OF COMPARATIVE STUDY OF BAJAJ

ALLIANZ PRODUCT WITH OTHER INSURANCE COMPANIES

With the aim to make comparative analysis among the various insurance companies with

respect to their UNIT GAIN product is done considering following factor:

• Entry Age & Maturity date

• Premium value & Term

• Death Benefit

• Surrender Benefit

• Withdrawal

• Switches

• Allocation of Equities

68
69
 RESEARCH METHODOLOGY

Research design depends on type of research studies that we are going to make. My research

study is descriptive type. Research methodology is all of the techniques, methods and

procedures adopted in terminology work to carry out terminology research. It is a way to

systematically solve the research problem.

DESCRIPTIVE RESEARCH STUDY:.

In this type of research study the researcher must able to define clearly, what he wants

to measure and must find adequate methods measuring it along with the clear cut definition of

population he wants to study. Since the aim of study is to obtain complete and accurate

information, the procedure must be carefully planned .The design in such studies must be rigid

and rigid. For the study I have taken a sample of about 100 customers, etc from each and every

market in Kanpur. In planning and designing a specific research project it is necessary to

anticipate all the steps that must be under taken if the project is to be successful in collecting

valid & reliable information. If it were broken down into very small parts or activities, the

marketing research process would consist of a great no of steps ----

 Specifying research objectives.

 Preparing a list of the needed information.

 Designing the data collection project.

 Selecting a sample type.

 Determining a sample size.

70
  Organizing and carrying out the fieldwork.

 Analyzing the collected data and reporting the findings.

1. FORMULATION OF OBJECTIVE:

Research Objective must be clearly defined (what the study is about and why it is being done)

then only, it can be achieved in a best way.

With the aim to make comparative analysis between the Insurance companies we analyse

the data of different companies in various prospective: ---

Purpose of study:

To study and evaluate various strategies of BAJAJ ALIANZ for various section of society.

2. DATA SOURCES

The second stage is the collection of data is the data sources Primary Data Sources and

Secondary Data Sources. Primary Data Sources are collected specifically for the purpose of

research study, which is to be done, and secondary data source are already collected data,

with some other objective.

Primary Data Source:

Questionnaire: A formal list of Questions is formulated and asking the questions from the

people who are having the related information. Here the Questionnaire is structured. Close end
71
Questionnaire with Dichotomous and Multiple Choice Questions. Main aim is to compare the

Customer Attitude and Loyalty towards UNIT GAIN product of different companies.

Secondary Data Source:

Internal sources: On-Line Information, Report of IRDA (INSURANCE REGULATORY

&DEVELOPMENT AUTHORITY)

External data: Magazines like Business Standard, Books on insurance and journals .

3. SAMPLING PLAN

Sampling Unit (Who Is Being Surveyed)

All prospective who are interesting in investment cum insurance?

Sampling Size (How Many People Should Be Surveyed)

100 customers in Kanpur

Contact Method (How the Subject Should Be Contacted)

Cold calling, Personal Contract, Through Internet

72
4. PROCESSING AND ANALYZING THE DATA

Score aggregation method is used for analyzing the data and pictorial representation of analysis

is done through graphs

From the data collected by me on different insurance companies we can analyse the position of
different companies as fellows:

73
74
 RETURN WISE RANKING

If we see from the point of view of returns on different fund option of different companies
then we can find the following data:

INSURANCE FUND OPTION RETURNS (%)

COMPANIES
ICICI PRU MAXIMISER 30.70
PENSION MAXIMISER 35.79
TATA AIG AIG GROWTH 19.70
AIG EQUITY 30.91
BAJAJ ALLIANZ EQUITY PLUS 48.16
EQUITY MIDCAP PLUS 38.25
HDFC STD. GROWTH FUND 23.48
BALANCED FUND 13.55
BIRLA SUN LIFE MAGNIFIER 25.26
ENHANCER 19.70
KOTAK LIFE AGGRESSIVE GROWTH 30.77
FUND
GROWTH FUND 28.25

75
If we see from the point of view of returns the we can say that BAJAJ ALLIANZ is at the top
with 48.16 % of return in its Equity plus Fund.

RETURNS CHART
60

50 ICICI PRU
R
E TATA AIG
T 40
U BAJAJ
R 30 ALLIANZ
N HDFC STD.
IN
20
% BIRLA SUN
LIFE
10 KOTAK LIFE

0
NAME OF COMPANIES

76
 GROWTH

THE OTHER COMPARISION IS ON THE BASIC OF GROWTH OF

DIFFERENT FUNDS OF A PARTICULAR COMPANY:

PRIVATE PREMIUM
LIFE MARKET INCOME GROWTH
PLAYERS SHARE (%) (Rs crore) (%)
BAJAJ ALLIANZ 26.49 2,715 216
ICICI PRUDENTIAL
LIFE 25.72 2,637 66
HDFC STANDARD
LIFE 10.04 1,028 111

MARKET SHARE(%) BAJAJ ALLIANZ

ICICI PRUDENTIAL
LIFE

HDFC STANDARD
LIFE

OTHERS

Bajaj Allianz Life clearly the market leader grew by 216 per cent and clocked in new business

premium of Rs 2,715.6 crore. The company cornered a market share of 7.56 per cent. ICICI

Prudential on the other hand garnered premium of Rs 2,637 crore and holds a market share of

7.35 per cent. The other private player that registered significant growth in the fiscal 2006-07

was HDFC Standard Life. The company's new

77
business has grown by 112 per cent to Rs 1,029 crore. The market share of HDFC Standard

Life has jumped from 1.92 per cent in 05-06 to 2.97per cent in 06-07. Of the total pie,

individual regular premium policies contributed 55 per cent at Rs 19,889 crore. Individual

single premium policies were 31 per cent of the total portfolio at Rs 10,999 crore. Individual

policies have registered an overall growth of 39 per cent against the previous year. Despite the

FBT on group superannuation, business registered a growth of 14 per cent to Rs 5,009 crore.

NET PROFIT

The company's new business has grown by 112 per cent to Rs 1,029 crore. The market share

of HDFC Standard Life has jumped from 1.92 per cent in 05-06 to 2.97per cent in 06-07. Of

the total pie, individual regular premium policies contributed 55 per cent at Rs 19,889 crore.

Individual single premium policies were 31 per cent of the total portfolio at Rs 10,999 crore.

Individual policies have registered an overall growth of 39 per cent against the previous year.

Despite the FBT on group superannuation, business registered a growth of 14 per cent to Rs

5,009 crore.

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GROWTH IN PROFIT OF DIFFERENT INSURANCE COMPANIES

S.NO NAME OF THE COMPANY GROWTH IN %

1 BAJAJ ALIANZ 112
2. ICICI PRU 64
3. HDFC 29
4. BIRLA SUN LIFE 26
5. KOTAK LIFE 39
6. TATA AIG 19
7. MAX NEW LIFE 14

Rank the life insurance companies in the your order of preference :

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 FIRST PREFERENCE OF PEOPLE AMONG PVT. LIFE INSURANCE
COMPANIES

16%
BAJAJ Allianz
14% 46% ICICI Prudential
Max Newyork
HDFC

24%

2. Do you see insurance policies as an investment alternative or a security option?

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 PURPOSE OF INSURANCE

22%
Investment Alternative
78%
Security Option

3. Please rank the following as per your preference to investment in a financial year:

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 INVESTMENT PREFERENCES IN VARIOUS ALTERNATIVES

20

15
(No. of people)

10

0
Shares Mutual Funds Lif e insurance Government
Bonds

(Investment alternatives)

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 MAX NEW GROWTH IN PROFIT
LIFE
5%
TATA AIG
6%
KOTAK BAJAJ
LIFE ALIANZ
13% 36%
BIRLA SUN
LIFE
9% ICICI PRU
HDFC 21%
10%

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. Do you think that private life insurance companies are as safe as LIC for taking a policy?

PERCEPTION OF PEOPLE ABOUT SAFETYNESS : LIC Vs PVT.

LIFE INSURANCE COMPANIES

Yes
38%
Yes
No
No
62%

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Awareness level of Bajaj Allianz life insurance

Total No. of Respondents 200

100%

Aware with Bajaj Allianz 200 (100%)

85
Awareness level of Bajaj insurance policies-

Total No. of Respondents 200

17%

83%

Aware with bajaj insurance Don’t no about Bajaj insurance

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 Why one should take insurance cover

20%

55% 21%
4% 0%

Risk Coverage Tax Benefits

Returns Savings
Financial Security of Beloved ones

The p ercentage of Insured & Uninsured Peopel

22%

78%

Insured People Uninsured People

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 4. What is your criteria/criterion to select a particular insurance company and a
scheme?

CRITERIA FOR SELECTING AN INSURANCE

COMPANY

20

20 15

15
8
10 5
2
5

0
Security Time span Market Return All of the
share above

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7. BAJAJ Allianz is quite a famous company because:

FAMOUSNESS REASONS OF BAJAJ

ALLIANZ

POLICIES

16%
PARENT COMPANIES
40%
20%
MKTG. AND ADV. STRATEGIES
24%

All OF THE ABOVE

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PURPOSE OF INSURANCE

22%
Investment Alternative
78%
Security Option

90
Are you satisfied with your existing policy/policies?

SATISFACTION LEVEL OF POLICY

HOLDERS

Not satisfied
31%
Satisfied

Not satisfied
Satisfied
69%

91
 Where the persons want to be investe

20% 4%

43%

27%
6%

RBI Bonds Fixed Deposits Mutual Funds Equity Market PPF

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DATA INTERPRETATION
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After analyzing the data the interpretation of the data can be done as follows.

No of clients visited are 100 in the region of Kanpur.

Most of the believes in LIC they don’t want to take any other policy, but some have

now different view towards it -- --

 BAJAJ ALLIANZ is very committed towards its commitment fulfillment.

 No difficulty arises in front of existing customers. Difficulties are quickly removed in

most of the areas but there should be a regular visit of the company agents to the

existing customers and area like Moradabad.

 The next best thing of BAJAJ ALLIANZ is its QUALITY PRODUCTS. products

should be more flexible it pays its consumers (85%) of satisfaction level.

 The weakness of BAJAJ ALLIANZ as told by most of the people is it’s NIL promotion

campaign and regular visits to all the customers, In the market where there is cutthroat

competition without a good promotional campaign no company can survive. So in our

survey we found it’s the biggest weakness of BAJAJ ALLIANZ

 If the company starts a good promotional campaign. The company can do well.

 It can capture the market in long run if it makes concentration on returns from various

funds.

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95
 CONCLUSION

In this era of changing world where things are changing per minute, quick changes are

occurring in insurance sector New companies are entering in this field every day which causes

the tough competition in market. So to attract new customers, companies are now offering

“Investment Plans” for the peoples along with the insurance. Here in this study , I analyze the

Unit Gain plan of every company , by analyzing it we can find that BAJAJ ALLIANZ I no.1

among all the existing pvt. Insurance companies but ICICI Pru is also giving us a tough

competition.

BAJAJ ALLIANZ is growing as market leader in life insurance sector. It has to increase its

customer care service to stay ahead from its competitors. This project gives me idea about the

whole insurance sector in our country. What are the norms, rules regulations in insurance

business? This project gives us an overview of all leading life insurance co. along with their

Unit Gain Plans.

96
97
 Experience & Difficulties

• The best experience is the corporate culture. In the field of Marketing I got to know that

there is no specific timing. If you can achieve the target you can do any thing with the

rest time.

• How to approach the people, getting the feedback was a new experience for me. Here I

got to know that book knowledge and field work are very different.

• In the field of marketing I found a person with good interpersonal skills, humorous face

and ready to what ever be the target can do well. It’s easy for the people who are +ve in

their attitude.

• Doing the fieldwork at 43-45 degree centigrade was bit difficult for me.

• Keeping you cool and charming before approaching any customer (operator) after

walking for 3 to 4 km was a difficult but was a great experience.

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99
 SUGGESTIONS

 Bajaj Allianz should concentrate on advertising as it is the main weapon in this media

world. It should go to tie ups with some nationalized banks so that peoples can make trust on

it.

 It should concentrate corporate tie-ups to capture mass.

 It should declare a list of investing funds along with details to their clients who is

investing in Unit gain plans. It should release a report weekly or in a month to show the

current market condition to their customers as well as to the public

 Motivation should be provided to the mechanics and agents through gifts, coupons or

scheme, etc.

 Company should go for relation building exercise with their agents and customers. .

 Their should be a team of fully equipped technical person, which should always be

there to provide field support to the peoples or clints for any difficulty and any other

type of assistant that is been required by agent or client.

 There should be easy ways to give the premium by the insurer.

 Always take the where about of existing customers

 If the company will start ROAD SHOWS that can give the company a competitive edge

and a better promotion.

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  Regular visits should be conducted to each and every customers so that customers can

be assured that someone is there to help them out from the company if any defect

arises.

 Rewards (like coupon, scheme, Gifts etc), incentives should be given to the agents and

also to the officers that performs well and attract more customers.

 PROMOTIONAL STRATEGIES

 Press publicity:

 Paper inserts

 Advertisements in newspaper (local and national).

 Interest cards distribution

 Mailers/personal invitations to selective section of the society

 Leaflets

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 Outdoor publicity:

 Banners in commercial areas and prime sites.

 Air balloons at shopping complex.

 Bus stands shelters.

 Advertisements on Dividers and Railings.

 Media:

 Local channel advertisement (cable TV scrolls)

 Advertisements in news channels and business channels

 Face to face:

 Personal interaction of marketing executives through

 Meetings

 Detailing about schemes and updating them from time to time

 Event sponsoring in local clubs and social gathering

 Road shows

 Contacting senior citizens in parks in morning and evening.

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 Contacting office goers in the morning and evening at stop lights by distribution

of interest cards.

103
 LIMITATIONS

♦ Due to companies’ strict rules & regulations we can’t able to get all the

detailed data collected during the survey and it was difficult for us to do the project

analysis.

♦ Some of the peoples were not ready to co-operate and were not ready to

share any information with us.

♦ The collected data may be biased as it depends on the respondent view.

♦ In some of the cases as we were not able to get the data we were not able

to compare all the companies that are why we have taken few companies only.

104
105
 BIBLIOGRAPHY

• Beri G.C., Marketing Research, Tata McGraw Hill Publishing Co. LTD., New Delhi,

Third Edition (2002)

• Saxana Rajan, Marketing Management, Tata McGraw Hill Publishing Co. LTD, New

Delhi, Second Edition (2001)

• Saxena R.S., Marketing Management, Himalaya Publication, New Delhi, Ninth Edition

(2000)

• Philip Kotlar, Marketing Management, Pren Tice-hall of India PVT. LTD., New Delhi,

Ninth Edition (2002)

WEBSITES:-

Irdaonline.com

Bima online.com

Insurance finder.com

Economic times.com

Bajaj allianz.co.in

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www.google.co.in

107
QUESIONAAIRE

1. NAME:

2. AGE:

3. PH.NUMBER MOB: RESIDENCE:

4. OCCUPATION:

5. ADDRESS:

6. DO YOU THINK LIFE INSURANCE COVER IS IMPORTANT FOR YOU?

a) YES b) NO

7. HAVE YOU TAKEN ANY LIFE INSURANCE POLICY?

a) YES b) NO

IF YES BY WHAT AMOUNT & WHICH COMPANY?

8. DO YOU THINK THAT PRIVATE LIFE INSURACE COMPANIES ARE SAFE AS LIC
FOR TAKING A POLICY?
a) YES b) NO

9. WHAT IS YOUR CRITERIA/CRITERION TO SELECT A PARTICULAR INSURANCE

COMPANY AND A SCHEME?

a) SECURITY b) TIME SPAN c) RETURN d) ALL OF THESE

10. DO YOU THINK THE POLICY YOU HAVE TAKEN IS ENOUGH TO COVER

YOUR LIFE?

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 a) YES b) NO

11. DO YOU HAVE VEHICAL (TWO WHEELER OR FOUR WHEELER) IS IT

INSURED?

a) YES b) NO

12. WHAT ARE YOUR FUTURE GOALS?

a) MONEY b) GOING ABROAD c) CHILD EDUCATION d) HOUSE

e) CAR

13. HAVE YOU HEARD ABOUT BAJAJ ALLIANZ LIFE INSURANCE COMPANY?

a) YES b) NO

14. DO YOU THINK THAT PRIVATE LIFE INSURANCE COMPANIES ARE AS SAFE
AS LIC FOR TAKING A POLICY?
a)YES b) NO

15. ARE YOU SATISFIED WITH YOUR EXISTING POLICY/POLICES?

a)YES b)NO

109