INDEX

Chapter Name
No.

1. Introduction

2. Research Methodology

3. Working of Company

4. Problems & suggestions

5. Conclusions
 PREFACE

For a management student theoretical knowledge as well as practical

orientation expose on self to experience, one can again be mastering it is
best possible time.
BBA curriculum has been finding turned in such way that a student
not apply the theoretical knowledge but also gain it in a practical sense. Thus
objective can be attained thought application of theory tools concept &
techniques of management.
Balanced, theoretical & practical knowledge are essential for every
student is conceived in such a way so as to facilitates practical purpose.
To procure objective the research under to the project “A STUDY ON
RECRUITMENT OF FINANCIAL ADVISORS IN THE BAJAJ ALLIANZ
LIFE INSURANCE COMPANY LIMITED”.
Secondary data were collected from websites, and journal of Bajaj
Allianz Life Insurance Company Limited.
Researcher has tried to satisfy the topic of report by help of facts &
finding.
 ACKNOWLEDGEMENT

It gives me immense pleasure to present the project on “Study on how to

recruit the financial advisor” in Bajaj Allianz Life Insurance Company. It
was a totally different & wonderful experience to be there in BAJAJ
ALLIANZ COMPANY, UDAIPUR as a summer trainee.
The researchers express his sincere gratitude to Mr. Hemant Joshi,
Deep Bhatnager & Amit Mathur (Sales manager) his project guide who
has been so co-operative & helpful from the first day of training till end.
He also helped him a lot in enhancing knowledge about the technicalities of
insurance sector.
The researcher confesses deep sense of gratitude towards my parents
as well as my friends or Sir for their constant encouragement and timely
suggestion.
In all it was a great experience of working on this project.
 Executive Summary

The main focus of my project was on “HOW TO RECRUIT FINANCIAL

ADVISOR IN BAJAJ ALLIANZ LIFE INSURANCE COMPANY” In this
project I highlighted what are the insurance products, what are the
plans? What are the benefits and how so sell them?
The methodology adopted by us in selling insurance products was first
segment to approach to natural market that is to relatives, Friends or
Sir etc. Then next is approach their references and finally to other
unknown and common people.
After taking a prior appointment we approached them,
interviewed them and selected them keeping in mind the criteria as per
the company’s requirement IRDA guidelines and also some soft
attributes, which were required to be financial advisor, we also have
discussed the concept of financial advisor.
To sum up, there has been sustained efforts and dedication involve
to make this study a comprehensive market study but at the same time
the researcher is open to any kind of suggestion that further needs to be
considered in respect of the cause of his work.
 INTRODUCTION OF INSURANCE

Insurance is an integral part of everyone’s life in present scenario.

Insurance or assurance is a device for indemnifying or guaranteeing an
individual against loss. Reimbursement
Is made from a fund to which many individuals exposed to the same risk have
contributed certain specified amounts, called “PREMIUMS”. Payments for an
individual loss, divided among many, do not fall heavily upon the actual loser. The
essence of the contract of insurance, called a “POLICY” is mutuality.

The entity that is transferring the risk, which may be an individual or association of
any type, including a government or government agency-, is called “INSURED”.
The entity accepting the risk is called the “INSURER”. The agreement between the
two by which the risk is transferred is called the “POLICY”. This is a legal contract
that sets out exactly the terms and conditions of the coverage. The fee paid by the
insured to the insurer for assuming the risk is called “PREMIUM”. This is usually
determined by the insurer to fund estimated future claims paid, administrative costs
and profits.

The major operations of an insurance company are underwriting, the determination

of which risks the insurer can take on; and rate making, the decisions regarding
necessary prices for such risks. The underwriter is responsible for guarding against
adverse selection, wherein there is excessive coverage of high risk candidates in
proportion to the coverage of low risk candidates. In preventing adverse selection,
the underwriter must consider physical, psychological, and moral hazards in relation
to applicants. Physical hazards include those dangers, which surround the individual
or property, jeopardizing the well being of the insured. The amount of the premium
is determined by the operation of the law of averages as calculated by the actuaries.
By investing premium payments in a wide range of revenue-producing projects,
insurance companies have become major suppliers of capital and they rank among
the nation’s largest institutional investors.
 BAJAJ ALLIANZ

THE COMPANY

BAJAJ Allianz Life Insurance Company is a joint venture between two

leading conglomerates, Bajaj Auto Limited, one of largest manufactures of
motorcycles and scooters in the world, and Allianz AG of Germany one of
the largest insurance companies. Bajaj Allianz Life Insurance Co. Ltd. was
incorporated on 12th March 2001. The company received the Insurance
Regulatory and Development Authority (IRDA) certificate of Registration
(R3) No 116 on 3rd August 2001 to conduct Life Insurance business in
India.

Bajaj Allianz Shareholder Capital Base stands at Rs. 500 crore with Bajaj
Auto Limited and Allianz AG of Germany holding 74% and 26% stake
respectively. It is the largest private player in the Insurance Industry in
India with a market share of around 34% amongst the private companies
and second to LIC. The total market share of Bajaj Allianz as of 31st March
2006 is at 12%.

During the financial year 2005-2006, Bajaj Allianz has sold over 13 lakh
policies and collected about Rs. 4433 crore as premium income. Whopping
growth of 216% for the FY 2005-06, Assets under management of Rs. 3324
Crore. It has paid up Rs 925 crores with IRDA as a caution deposit. Bajaj
Allianz has insured lives for sum assure of over Rs 8500 crore.
 Bajaj Auto Limited

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. With over 15,000
employees, the company is a Rs. 4000 crore auto giant, is the largest 2/3-
wheeler manufacturer in India and the 4th largest in the world. AAA rated by
Crisil, Bajaj Auto has been in operation for over 55 years. 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.

• An extensive distribution network.

• Adequate experience of running a large organization.

• A 10 million strong base of retail customers using Bajaj products.

• Advanced Information Technology in extensive use.

• Experience in the financial services industry through Bajaj Auto

Finance Ltd
 Allianz AG

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 AG is in the business of General (Property & Casualty) Insurance;

Life & Health Insurance and Asset Management and has been in operation
for over 110 years. Allianz is one of the largest global composite insurers
with operations in over 70 countries. Further, the Group provides Risk
Management and Loss Prevention Services. Allianz has insured most of the
world's largest infrastructure projects (including Hongkong Airport and
Channel Tunnel between UK and France), further Allianz insures the
majority of the fortune 500 companies, besides being a large industrial
insurer, Allianz has a substantial portfolio in the commercial and personal
lines sector, using a wide variety of innovative distribution channels.

ALLIANZ AG- 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

New Unit Gain Plus

It is a unit linked plan of Bajaj Allianz that takes care of a person’s wealth
by providing flexibilities in savings and investments and options for
protection needs.

HOW TO GET STARTED?

This gets started by opening an account with a minimum premium

of:

 Rs 15000/- p.a. for annual mode.

 Rs 7500/- p.a. for half-yearly mode.
 Rs 5000/- p.a. for quarterly mode.
TITLE OF THE STUDY: MARKET CREDIBILITY OF BAJAJ ALLIANZ
AMONG OTHER PRIVATE LIFE INSURANCE COMPANIES.

OBJECTIVES:

 Working of the unit-linked plans.

 Comparative analysis of the life insurance products available in

the market.

 Research methodology used : Primary data collected by visiting

the leading life insurance companies like LIC, ICICI Prudential,
Aviva, Birla Sun Life Insurance, HDFC Standard Life, Tata AIG
Educare, OM KOTAK Mahindra.

 Data Collection:

(a) Questionnaires filled by various income groups.

(b)Internet (by searching about the investment plans of other
companies).

 Action plan:

(a) Firstly, collecting information from newspapers & magazines

like Economic Times, Financial Express, Business India, The
Times Of India, Internet.

(b)Secondly, getting the questionnaires filled (about 50) to find out

which company they prefer for life insurance policies, what are
the specific features of their policies, whether they treat
insurance as an investment option or a security option.

(c) Finally, analyzing the data collected and comparing the

insurance companies to show the market credibility of BAJAJ
Allianz among other private life insurance companies.
 RESEARCH METHODOLOGY:-

MEANING OF RESEARCH: -

Research is an art of scientific investigation.

Research means “a careful investigation or inquiry specially through search
for new facts in any branch of knowledge.”

According to Clifford Woody: -

“Research comprises defining and redefining problems,

formulating, hypothesis or suggested solutions, collecting, organizing and
evaluating data, making deductions and reaching conclusions and at last
carefully testing the conclusions to determine whether they fit the
formulating hypothesis”.

Research means the systematic method consisting of

enunciating the problem, formulating a hypothesis, collecting the facts or
data, analyzing the facts and reaching certain conclusions either in form of
solutions towards the concerned problem or in certain generalization for
some theoretical formulation.
The project titled, as “MARKET CREDIBILITY OF BAJAJ ALLIANZ
AMONG OTHER PRIVATE LIFE INSURANCE COMPANIES”
required research to be done. The market credibility required the collection
of Primary Data as well as the Secondary data. The credibility literally
means the market value and the market positioning of a particular brand or a
company among its competitors. BAJAJ Allianz is one of the private life
insurance companies, which came into existence in 2001. Market credibility
can be checked by seeing the awareness of people about a particular
company and its share in the market. Comparing the products of term
policies as well as the endowment policies.

Primary data : Questionnaire filled by people interviewed.

Secondary data: (i) Data collected for companies from various

sites available of the life insurance companies.

(ii) Data collected from newspapers and NAVs

of the various policies of BAJAJ Allianz and other
private life insurance companies.
 OBJECTIVES OF RESEARCH

1. To gain familiarity with a phenomenon or to achieve new insights

into it.

2. To portray accurately the characteristics of a particular individual

tuation or a group.

3. To determine the frequency with which something occurs or with

which it is associated with something else.

4. To test a hypothesis of a casual relationship between variables.

5. To discover answers to questions through the application of

scientific procedures.
 TYPES OF RESEARCH

1. DESCRIPTIVE RESEARCH: -

It includes surveys and fact-finding enquiries of different kinds. The

main purpose of descriptive research is description of the state of affairs,
as it exists at present.

2. ANALYTICAL RESEARCH: -

Analytical research has to use facts or information already available and

analyze these to make a critical evaluation of the material.

3. APPLIED RESEARCH: -

Applied research aims at finding solution for an immediate problem

facing a society or an industrial/business organization
The certain aim of applied research is to discover a solution for some
pressing practical problem.

4. FUNDAMENTAL RESEARCH: -

It is mainly concerned with generalization and with the formulation

of a theory. Basic research is directed towards finding information that
 has abroad base of application and adds to the already existing
organized body of scientific knowledge.

5. QUANTITATIVE RESEARCH: -
It is based on the measurement of quantity or amount. It is
application to phenomena that can be expressed in terms of quantity
That can be expressed in terms of quantity.

6. QUALITATIVE RESEARCH: -

It is concerned with qualitative phenomenon that is phenomenon

relating to or involving quality or kind.

7. CONCEPTUAL RESEARCH: -

Conceptual research is that related to some abstract ideas or theory.

Philosophers and thinkers to develop new concept or to reinterpret
existing once generally use it.

8. EMPIRICAL RESEARCH: -

Empirical research relies on experience or observation alone, often

without due regard for system and theory. It is database research, coming
up with conclusions, which are capable of being verified, by observation
or experiment.
 WORKING OF THE COMPANY:-

The premiums paid are invested in fund/funds of your choice (depending on

the allocation rate) & units are allocated depending on the price of units for
the fund/funds. The value of your policy is the total value of units that you
hold in the fund/funds. The insurance cover charges are deducted through
monthly cancellation of units. The fund Administration Charge and Fund
Management Charge are priced in the unit value.

BENEFITS

DEATH BENEFIT: In case of unfortunate death the beneficiaries are

entitled to the Sum Assured less withdrawals or the bid price of units,
whichever is higher? If the age of the life assured is less than 7 or above 70,
then the bid price of the units is paid.

LIQUIDITY OPTION: There is no maturity date for this plan. . Anytime

after payment of 3 full years’ premiums, you may withdraw the money,
depending on your requirements, through partial or complete surrender of
units.
 OPTIONS

a. Choice of investment plan:

Bajaj Allianz offers you a choice of 4 funds. You can choose to invest
fully in any one fund or allocate your premiums into the various funds in
a proportion that suits your investments needs. All the funds will be
managed by the asset managers of Bajaj Allianz.

 EQUITY FUND: This fund provides the scope of high

appreciation over a long term. The fund will primarily invest in
equities and is expected to match returns given by NSE NIFTY.
This fund will invest at least 90% in equities and maximum
10% in cash. This Fund Investment is in NSE (National Stock
Exchange) NIFTY i.e. top 50 companies.

 DEBT FUND: This fund provides the scope for steady returns
at low risk through investments in high quality fixed income
securities. This fund will be invested fully in debt instruments.
This Fund Investment is in Govt. Bonds for e.g. IDBI Bonds,
Mutual Funds etc.

 BALANCED FUND: The balanced is primarily for those who

prefer mix of steady returns and growth. The balanced fund will
invest 30% to 50% in the equity fund and 50% to 70% in the
 debt fund. This Fund Investment is in Govt. and Private
Companies.

 CASH FUND: The cash fund will invest conservatively in

money market & short term investments to ensure that return on
investments shall never be negative. 100% of this fund will be
invested in money market instruments. The price of the units in
this fund will never to go down. This Fund Investment is in Call
Money Market (operates on the need for cash on hourly basis).

b. Choice to switch between investment options:

Policyholder can switch units from one fund to another. The amount
switched should be in multiples of 1000, and the minimum switching
amount is Rs. 5000 or the fund value which ever is lower. Three free
switches would be allowed every year. Subsequent switches would be
charged @ 1% of the switch amount or Rs. 100 whichever is higher.

c. Choice of a Top-up:

The policyholder will have the option to increase the regular premium
amount at any time. The additional single premium would be treated as a
single premium top-up every year. The policyholder will also have the
option to increase the amount invested through top-ups.
 FLEXIBILITIES

a. Increase the death benefit:

The death benefit may be increased without any underwriting every 3rd
year upto 4 times. The increase will be allowed upto 25% of the original
sum assured or Rs. 1,00,000. Whichever is lower, each time? However,
the maximum age till which this option will be allowed is the attained
age of 45yrs of the policy holder. Apart from the increase in death benefit
every 3rd year without underwriting, the policyholder may choose to
increase the death benefit subject to the maximum of Comprehensive
Accidental Protection, depending on his/her changing needs. This
increase will be subject to underwriting and the cost of underwriting shall
be deducted through cancellation of units. The option to increase the
death benefit with underwriting ceases at age 60.

b. Decrease the death benefit:

Decrease in the death benefit will be allowed any time, subject to the
minimum death benefit being maintained. The death benefit once reduced
can be increased subsequently only subject to underwriting.
c. Premium holiday option:

Customers can opt to pay premiums at their convenience after payment

of full 3years premiums. Thereafter, when premium due are not paid, the
policy will stay in force with full benefits so long as there is enough units
available for charging the cost of insurance and additional benefits after
deducting all applicable charges.

d. Flexible Contribution:

The person can increase/decrease the annual contribution. The maximum

decrease in the contributions can be upto 20% of the initial contribution
chosen by the person at the time of inception of the policy. However, in
no circumstances can the contribution be reduced to below the minimum
premium allowed under the plan at that time, or 80% of the initial chosen
contribution, whichever is higher. The person has the flexibiltity to
increase his/her contribution without any limits. Any such increase or
decrease in contribution will only be allowed on policy anniversaries.
 OTHER BENEFITS

a. Additional Protection for You and Your Family:

You have the option to add the following four additional benefits,
providing total protection against uncertainties.
• Accidental Death Benefit.
• Accidental Permanent Total/Partial Disablement Benefit.
• Critical Illness Benefit (CI).
• Hospital Cash Benefit (HC).

b. Surrender value

This policy acquires a surrender value after 3 complete years of the

policy, provided the 1st 3 years’ premiums are paid. The Surrender Value
is 100% of the value of investments.

c. Tax Benefits

Value of Units cancelled for Critical Illness and Hospital Cash Benefit
is eligible for tax relief under Section 80(D). Death Benefit and
Withdrawals (partial or full) is tax free under section 10(10) D of the
Income Tax Act, if the premiums paid in any year does not exceed
20% of the Sum Assured or Fund Value, whichever is higher. Incase
of change in any tax laws relevant to the policyholder or the fund
 performance, the same will be applied as per regulations prevailing at
the point of time.

AGE LIMITS

Age at entry:

Minimum age of entry: 0 years (Completed years)

Maximum age of entry: 60 years (Completed years)

CHILD CARE
Taking care of a child is perhaps the most important job a parent can have. It
is but natural that you would like to give your child your best, and therefore,
this is the time when careful financial planning can help you fulfill the
aspirations that you have for your children. The Bajaj Allianz “Child Care”
Solutions help you to enjoy the joys of parenthood responsibly, with the
reassurance of a secure future for your child.

CHILD CARE PLAN OFFERS

Child Care plan is a children money back plan with profit. Bajaj Allianz
Child Care offers a wide array of solutions that allows you to plan for your
child’s future by providing you with as many as 4 distinct and unique
options.

1. Child Care 21
2. Child Care 24
3. Child Care 21 Plus
4. Child Care 24 Plus
START OF LIFE BENEFIT

This is a unique feature of Bajaj Allianz “Child Care” 21 Plus & 24 Plus.
These packages offer you the choice of providing a unique Start of Life
Benefit for your child. For a nominal amount, an additional Sum Assured
subject to a maximum limit of Rs.10 Lacks will become payable to enable
the child start hi/her professional life smoothly, in case of an unfortunate
death or Accidental Permanent Total Disability of the Policy holder during
the term of the policy. This benefit will not be available in the event of
accidental permanent total disability after age 65 of the policy holder.

IN-BUILT BENEFITS

A) PREMIUM WAIVER BENEFIT:

In case of death or Accidental Total Permanent Disability of the

policyholder during the premium payment term, all future premium
payments are waived. This benefit will not be available in the event of
accidental permanent total disability after age 65 of the policy holder.

B) FAMILY INCOME BENEFIT:

In case of death or accidental total permanent disability of the policy

holder during the term of the policy, a monthly income benefit of 1% of
the sum assured (12% per annum) becomes payable till the end of the
policy term (subject to a maximum of Rs. 1,20,000 per annum). This
benefit will not be available in the event of accidental permanent total
disability after age 65 of the policy holder.

C) OPTION TO PURCHASE FURTHER INSURANCE AT

MATURITY:

For ensuring continuity of the valuable insurance protection that the child
was enjoying, we offer the child and option to purchase a with profits
endowment or an equivalent plan from Bajaj Allianz Life Insurance
Company for twice the amount of face value of this policy, without any
medical examination, on the premium rates prevailing at that time. (The
application must be made at least 6 months prior to maturity of this
policy).
PAYOUT STRUCTURE

For Child Care 21 and Child Care 21 Plus: The minimum guaranteed
payouts are as follows:

Policy Anniversary following completion

18 19 20 21
of Age
20% + Accrued
Payout as % of Sum Assured 25% 25% 35%
Bonuses

For Child Care 24 and Child Care 24 Plus: The minimum guaranteed
payouts are as follows:

Policy Anniversary following

18 20 22 24
completion of Age
25% + Accrued
Payout as % of Sum Assured 25% 25% 40%*
Bonuses
* refers to probable increase in payout based on higher interest during the
payout period.

DEATH PAYOUT

In the event of unfortunate death of the child during the policy terms, the
payouts shall be as under

Age Payout
Premiums paid will be refunded without interest and
Below 7 years
the policy will terminate.
Above 7 years and Sum assured with accrued bonuses will be paid and the
below 18 years policy will terminate.
Above 18 years and Outstanding payouts will be paid as one lump sum and
below 24 years the policy will terminate.

HOW TO GET STARTED?

This gets started by opening an account with a minimum premium of:

 Rs. 5000/- p.a. for annual mode.

 Rs. 2500/- p.a. for half-yearly mode.

 Rs. 2000/- p.a. for quarterly mode.

 Rs. 700/- p.a. for monthly mode.

AGE LIMITS

Child Care 21 and Child Child Care 24 and Child

Eligibility Conditions
Care 21 Plus Care 24 Plus

Minimum age of the

20 20
policyholder

Maximum age of
50 50
policyholder

Minimum age of child 0 0

Maximum age of child 13 13

Minimum Premium Rs.4850 Rs.4850

Minimum Premium
5 5
Payment Term

Maximum Premium
18 18
Payment Term

Maximum age of child at

21 24
maturity

Maximum Sum Assured Rs. 50,00000 Rs. 50,00000

NEW UNIT GAIN PLUS Vs LIC BIMA PLUS

FEATURES NEW UNIT GAIN PLUS LIC BIMA PLUS

Age 0-60 years 12-56 years

Term Choice rests with a minimum 10 years

period of payment of 3 years.

Sum Assured Minimum sum assured is 5 Maximum limit up to

times the premium paid. Rs. 2 lakhs.
Maximum sum assured is as
per the limits set per age bands.

Survival Benefit Value of Fund at Bid Price Bid value of the fund units
along with maturity bonus at
5% of the Sum Assured.

Higher the Sum Assured or Death during the 1st 6 months-

Death Benefit value of units. However, the
value of units will treat as
death benefit if the Life
Assured is > 7 years or < 70
years.
30% of SA + value of units,
next 6 months – 60% of SA +
value of units. Death after 1st
year-SA +value of units. Death
during the 10th year- 105% of
SA + value of units.

Partial or complete Premature withdrawal allowed

Withdrawal Benefit withdrawals at bid price 1 year(after applying bid-offer
after3rd year. spread).

Contribution Minimum: Rs. 15,000 p.a Not specified.

Flexibility to Only an increase in Not available.

increase/decrease contribution is allowed.
contribution

Investment Equity Fund, Debt Fund, Balanced, Secured & Risk.

options Balanced Fund, Cash Fund.

Increase/Decrease Available. Not available.

of death benefit

Bonus Points Not Available. Not available.

Top-up Available. Available (charges: 1.5% of

the top-up).

Switch 3 free switches every policy No free switches. Cost of

year. Subsequent switches switches is 2% of the fund
would be charged @1% of value.
switch amount or Rs. 100
whichever is higher.
Surrender Value A selling/purchase price Partial surrender up to 50%
spread of 5% will be of bid value of units allowed
applicable from the 3rd year after 3 years from the date of
onwards. commencement.

Automatic Cover Available after the 3rd policy Not available.

Continuance year.

Initial charge Charges : Not disclosed

st nd
1 Year- 24% ; 2 Year-3%
3rd Year- 3%. No charges
grom 4th year onwards.

Admin charges Annual admin. Charges of

1.25% of net assets.

Other charges Transaction charge of 0.5% Not applicable.

of the equity investment &
0.1% of the debt investments.

Bid-offer spread The bid-offer spread is 5% of Not applicable.

the offer price.

Fund management Annual investment charge of

Charge 1% p.a. of net assets. 1% of the fund per annum

Riders ABR/ ADBR / CI/Hospital In Built Accident Benefit.

Cash Benefits.
CHILD CARE Vs SMART KID (ICICI Pru.

FEATURES CHILD CARE SMART KID

Plan Type Anticipated Endowment. Anticipated Endowment.

Min Max Term Matures when the child reaches theMatures between 22-25 years of
age of 21 or 24. Premium paid till child. Term is 10-25 tears.
child reaches age 18.

Min Max Age 1-13 Years. 0-12 Years.

of Child

Min Max Age 20-50 Years. 20-60 Years.

of Parent

Payment All regular premiums. All regular premiums.

Modes

Life Assured Child is insured. But premium Parent.

waiver rider available for parent.

Beneficiary Child Child.

Flexibility in 2 structures : 2 structures :

th
benefit 1. Money is paid on the 18 , 1. When the child reaches the
th th st
structure 19 , 20 and 21 year criteria milestones ( Xth,
(20%+25%+25%+35%) XIIth, Graduation, Post
th
2. Money is paid on the 18 , 20 Grad.)
22nd or 24th year 2. Last 4 year before
(25%+25%+25%+40%) maturity.
Benefit-Death None if premium waiver rider is not SA is paid up front. Child gets the
of Parent purchased. Guaranteed payments as
chosen earlier.All future
premiums are waived off.

Benefit- Death < 7 years – Premiums Policy continues as it is.

of Child
refunded without interest
>7 years & <18
Years – SA + Bonus > 18 years –
Outstanding payments as a lump sum.

Bonus & Not guaranteed. Paid after the end of3.5% of SA compounded
Additions the premium paying term. annually for the1st 4 years,
annual bonuses declared
thereafter.

Riders Family Income Rider/ Premium ADBR / IBR

available Waiver Rider.

Surrender Available after 3 premium paying Available after 3 premium

Value years. paying years.
 CHILD CARE Vs HDFC CHILD PLAN

FEATURES CHILD CARE HDFC CHILD PLAN

Plan Type Anticipated Endowment. Endowment.

Min Max Matures when the child reaches the

10-25 Years.
Term age of 21 or 24 Premium paid till
child reaches age 18.

Min Max 0-13 Years.

Age of Child

Min Max 20-50 Years. 18-60 Years.

Age of
Parent

Payment All regular premiums. All regular premiums.

Modes

Life Assured Child is insured. But premium Parent.

waiver rider available for parent.

Beneficiary Child. Child.

Flexibility in 2 structures : The customer has to choose

th th
benefit 1. Money is paid on the 18 , 19 , amongst 3 separate plans,
structure 20th and 21st year with deferring premiums
(20%+25%+25%+35%) based on the plans.
th th
2. Money is paid on the 18 , 20 , 22
 or 24th year (25%+25%+25%+40%).

Benefit- None if premium waiver rider is not purchased.Opt for either one of
Death of the plans:
Parent 1. SA+ Bonuses
paid upfront
2. SA + Bonuses
paid on
maturity.
3. SA paid on
death & SA +
Bonuses paid
on maturity.

Benefit- < 7 years – Premiums refunded Policy continues as it is.

Death of
Child
without interest >7 years & <18
Years – SA + Bonus > 18 years – Outstanding
payments as a lump sum

Bonus & Not Guaranteed. Paid after the end of the Simple
Additions premium Paying term. Reversionary
Bonuses paid till
maturity.

Riders Family Income Rider/ Premium Waiver Rider.None.

available

Surrender Available after 3 premium paying years. Available.

Value
CHILD CARE Vs OM KOTAK CHILD ADVANTAGE

FEATURES CHILD CARE OM KOTAK CHILD

ADVANTAGE

Plan Type Anticipated Endowment. Endowment.

Min Max Matures when the child reaches the age of 21

10-30 Years.
Term or 24. Premium paid till child reaches age
18.

Min Max Age 1-13 Years. 0-17 Years.

of Child

Min Max Age 20-50 Years. -

of Parent

Payment All regular premiums. All regular premiums.

Modes

Life Assured Child is insured. But premium waiver Parent.

rider available for parent.

Beneficiary Child Child.

One structure only.

Flexibility in 2 structures : Lump sum payment
th th th
benefit 1. Money is paid on the 18 , 19 , 20 made on maturity
st
structure and 21 year (20%+25%+25%+35%) which consists of SA or
th th nd
2. Money is paid on the 18 , 20 , 22 or accumulated bonuses,
24th year (25%+25%+25%+40%). whichever is higher.
If the child is 18(then
Benefit- None if premium waiver rider is not Sa or Accumulation
Death of purchased. paid, whichever is
Parent higher. Else total
 premium or SV is paid
whichever is higher).

Benefit- < 7 years – Premiums refunded Policy continues as it

Death of is.
Child
without interest >7 years & <18
Years – SA + Bonus > 18 years –
Outstanding payments as a lump sum

Bonus & Not guaranteed. Paid after the end of the

Additions premium paying term. Not guaranteed.

Riders Family Income Rider/ Premium Waiver ADBR, WOP.

available Rider.

Surrender Available after 3 premium paying years. Available.

Value
 CHILD CARE Vs TATA AIG EDUCARE (18 YEARS)

FEATURES SMART KID TATA AIG EDUCARE

Plan Type Anticipated Endowment. Regular premium

endowment plan-
Positioned as a Child
Plan.

Min Max Matures when the child reaches the Matures when the child is
Term Age of 21 or 24. Premium paid till 18 years of age.
Child reaches age 18.

Min Max 0-13 Years. 30 days to 8 years of age.

Age of Child

Min Max 20-50 Years. Not applicable.

Age of
Parent

Payment All regular premiums. All.

Modes

Child- till the child

Life Assured Child is insured. But premium reaches the age 18 , the
waiver rider available for parent. parent will be the
policyholder. At 18, the
policy will be transferred
in the child’s name.

Beneficiary Child Child.

Flexibility in 2 structures :
benefit 1. Money is paid on the 18th, 19th, Single payment structure.
structure 20th and 21st year
20%+25%+25%+35%)
2. Money is paid on the 18th, 20th, 22
or
24th year (25%+25%+25%+40%)

Benefit- None if premium waiver rider is not

Policy lapses in case payer
Death of purchased. benefit rider is not opted
Parent for.

Benefit- < 7 years – Premiums The proceeds are paid to

Death of the parent.
Child
refunded without interest
>7 years & <18
Years – SA + Bonus > 18 years –
Outstanding payments as a lump sum

Bonus & Not guaranteed. Paid after the Guaranteed – 10% of SA

Additions End of the premium paying term. paid at maturity or death
provided the policy has
been in force for 10 years.
Plus a guaranteed
education benefit of 20%
of the SA paid at the
maturity.

Riders Family Income Rider/ Premium

Payor Benefit Rider-
available Waiver Rider. premium waiver.

30% of the premiums

paid(excluding the 1st
premium & extra premium
Surrender Available after 3 premium paying , if any) provided 3 annual
Value years. premiums have been paid
in full.
 FINDINGS AND ANALYSIS

There were about 10 questions in the questionnaire on the

basis of which the findings were done and the analysis was
made. The responses to the questions in the questionnaire are
presented in the form of statistical tools such as pie charts and
bar charts. There were 50 people being interviewed from
different income groups and age groups.
1. Do you have a life insurance policy? If yes, then of which
company/companies?
PEOPLE HAVING INSURANCE POLICIES

28%

Yes
No

72%

% OF INSURED POPULATION IN VARIOUS

COMPANIES

Bajaj Allianz
6%0%
6%
3% LIC
28%
Max Newyork
17% ICICI Pru
TATA AIG
8% Birla sun life
32% AVIVA
Out of the 50 insurable people interviewed nearly 72% people have taken
insurance policy. Out of this population being interviewed nearly 32 % had
LIC policy, 28 % had BAJAJ Allianz, followed by ICICI Pru. (17 %), Max
New York Life (8 %) , TATA AIG(3%), Birla Sun Life (6%), Aviva and
HDFC having 6% shares each in the interviewed population.

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

security option?

PURPOSE OF INSURANCE

22%

Investment Alternative

Security Option

78%

Out of the 50 people interviewed 78 % people term/see insurance policy as a

security option while only 22 % see it as an investment option.
 3.Please rank the following as per your preference to investment in a
financial year:

INVESTMENT PREFERENCES IN VARIOUS ALTERNATIVES

20

15
(No. of people)

10

0
Shares Mutual Funds Life insurance Government
Bonds

(Investment alternatives)

Out of 50 being interviewed, 18 people invest in life insurance policies,

16 people invest in shares, 12 people invest in mutual funds and 4 people
invest in government bonds.
 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

Out of 50 people being interviewed, 15 people select an insurance

company on the criterion of security, 5 people select an insurance
company on the criterion of time span, 2 people select an insurance
company on the criterion of market share, 8 people select an insurance
company on the basis of return and 20 people select an insurance
company on the basis of all the above mentioned reasons.
5. Rank the life insurance companies in the your order of preference
:

FIRST PREFERENCE OF PEOPLE AM ONG PVT. LIFE INSURANCE

COMPANIES

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

24%

Out of 50 people interviewed, 46% had BAJAJ Allianz as their first

preference for a pvt. Life insurance company followed by ICICI
Prudential having 24 % preference followed by HDFC Life
insurance having 16% market share and lastly Max New York Life
Insurnce.
6. 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%

Out of 50 people being interviewed, 62 % of people do not find

private life insurance companies to be safe for buying a life
insurance policy whereas 38 % people find them safe for buying a
life insurance policy from a private life insurance company.
7. BAJAJ Allianz is quite a famous company because:

FAMOUSNESS REASONS OF BAJAJ ALLIANZ

POLICIES
16%
40% PARENT COMPANIES

20% MKTG. AND ADV.

STRATEGIES
24% All OF THE ABOVE

Out of 50 people interviewed, 16 % people perceive policies of

BAJAJ Allianz make it a famous company while 20% think it is
due to the parent companies, 24% take it as marketing and
advertising strategies which appeal to the mass population while 40
% think it is all due to the above mentioned reasons that BAJAJ
ALLIANZ is a famous company.
8. Are you satisfied with your existing policy/policies?

SATISFACTION LEVEL OF POLICY HOLDERS

Not satisfied
31%
Satisfied
Not satisfied
Satisfied
69%

Out of 50 interviewed, 69% of the people were satisfied with their

life insurance policies while only 31% of people were not satisfied.
 ANALYSIS

Analysis of a research project is based on the primary data and

secondary data which is being collected from various sources to take
out some conclusions of the research study being taken. In my project
my purpose was to find the market credibility of BAJAJ Allianz
among various other private life insurance companies. For this a
population of 50 people was being interviewed having different
lifestyles, different incomes, different occupations yet the point which
was kept in mind was that this interviewed population was insurable.

The questionnaire filled up by people revealed that nearly 36 people

i.e. about 72% people have life insurance policies. This is due to the
fact that people now have started realizing that life is very uncertain
and it is advisable to have a life insurance policy. Nearly, 24 %
people had LIC policy and 20% people have BAJAJ Allianz as their
life insurance policy. The reason that people have more LIC policy
is that it is an old company for life insurance and secondly it is a
government controlled organization. Secondly, when enquired about
the perception of people about insurance policies, nearly 39 people
i.e. about 78% people see it as a security option for their families
financially so that if they are not alive some day, their family does
not go in vain. While 11 people i.e. about 22% people see it an
investment option to save taxes and get returns. Thirdly, when asked
about their investments in various alternatives, 18 people gave life
insurance policies their first preference for investment whereas 16
gave shares as their first preference followed by mutual funds (12)
and lastly government bonds. This clearly shows that people are risk
averse to a large extent as largest numbers of people like to invest in
life insurance policies to make sure that there is security. Fourthly,
when they were asked about the criterion of choosing a life
insurance company 15 people replied that they see the security point
of view to buy a life insurance company. 5 people chose time span
as the criteria to choose a life insurance company. 2 people chose the
market share of the company as the preferred criteria of choosing the
life insurance company. 8 people chose the returns of life insurance
companies as the criteria for choosing a life insurance company.
Nearly, 20 people chose all the above mentioned reasons to choose a
life insurance company.

When the sample population was interviewed about their 1st

preference among the pvt. Players, nearly 46 % people chose BAJAJ
Allianz as the 1st insurance company, 24 % people chose ICICI
Prudential as the 1st preference, and 16 % chose HDFC as the 1st
insurance company and 14 % people chose Birla Sun life as the 1st
preferred company. When sample size was asked about safety ness
of an insurance policy as compared to LIC policy nearly 62 %
people replied that they do not find private life insurance companies
as safe as LIC, this is due to the fact that LIC had monopoly into life
insurance till 2000. Only after 2000, private companies have come
in the field of Life Insurance Company. Proceeding further, when
sample population was asked to recognize the punch line of BAJAJ
Allianz nearly 60 % of the population was able to recognize the
punch line of BAJAJ Allianz which clearly indicates that BAJAJ
Allianz is a well known life insurance company among the people.
Followed by it, when sample size was interviewed about the reasons
of famousness of BAJAJ Allianz 16 % of people chose its policies
as the reason for its famousness, 20% people chose its parent
companies as the reason for its popularity, 24 % agreed for its
marketing and advertising strategies to be the prime cause of its
popularity among masses. Whereas 40 % population agreed to all of
the above mentioned reasons to be causes of the popularity of
BAJAJ Allianz. When asked about the satisfaction with the existing
insurance policies nearly 69% people said that they are satisfied with
their policy whereas only 31% people were not satisfied with their
policy.
They wanted the additional features of transparency about the
returns after when they have stopped paying the premiums. Also
they wanted higher rate of returns at the end of payment of
premiums.
 DIFFICULTIES FACED

Following were the difficulties faced during the completion of

project:

 Non filling up of certain questions of the questionnaire which led to

the cancellation of that particular questionnaire.

 Non understanding of certain parameters in the questionnaire.

 Taking a sample size of 50 people does not reflect the mindset of all
kinds of people from different backgrounds, different age groups and
income groups.

 Again research study of 2 months is a time constraint and covering

whole of Delhi population by taking a sample size of 50 is not
feasible.
FUTURE GROWTH & SUGGESTIONS

BAJAJ ALLIANZ, in the present scenario is growing at an aggressive

pace. The company does a lot of survey & analysis in the market to
discover customer’s needs & expectations & tries to improvise on its
existing market linked plans along with insurance policies. In addition
to this , the company from time to time keeps on introducing various
new policies & tailor made plans exclusively to cater peoples’ financial
needs. This has enabled BAJAJ Allianz to become market leader in the
sector of insurance & investment companies since 2001 when it came
into existence.

Since, now many other companies are joining the field of insurance &
investments, it will be necessary for BAJAJ Allianz to vigorously pursue &
update its survey & analysis policy to remain market leader. Simultaneously,
it should discover & rediscover its strength by introducing new plans better
suited to the people at large. India is a very big market & it can provide
sustenance to all the companies in the field of insurance & investments but
to remain one of the leading companies, BAJAJ Allianz has to adopt new
strategies earlier than others. This could include widening the distribution
networks to all parts of the country & catering to every income group.
Furthermore, it can improvise on its advertisements & promotion campaigns
by becoming more appealing & making them touches the hearts of millions
& billions of Indians who are the hot prospects. Lastly, the students in the
professional courses, apprentices, trainees may be good targets to approach
in times ahead.
 CONCLUSION

The research project titled as “MARKET CREDIBILITY OF BAJAJ

ALLIANZ AMONG OTHER LIFE INSURANCE COMPANIES”
enabled to understand the competition among the various life insurance
companies which have entered Indian market of life insurance after 2000
when private life insurance companies were allowed to enter the Life
insurance sector in India. BAJAJ Allianz is one of the companies in the
private sector which are doing exceptionally good in this sector due to their
policies to which people find very attracting according to their needs. When
people were interviewed about the first preference among the private life
insurance companies nearly 46% replied for BAJAJ Allianz, this clearly
indicates that BAJAJ Allianz is quite a household name. The reasons for this
are many like it is a company with very strong brand names: BAJAJ Auto
Limited which is the no. 1 Automotive Manufacturer in India also Allianz
AG is 3rd largest life insurance company in the world. The market share of
BAJAJ Allianz also around 34% among private life insurance companies
which is quite high among private life insurance companies. It is only
second to LIC in the life insurance sector.

But if there are people accepting BAJAJ Allianz, there are people who
are still hesitant to take up private insurance company’s policy this is
due to the fact that LIC is a government organization. It can be seen
from the study that people have started recognizing BAJAJ Allianz as a
life insurance and hence it will grow at a much faster pace in the future.
 BIBLIOGRAPHY

 Philip Kotlar, Marketing Management, New Delhi, Pearson

Education (P) Ltd., Indian Branch, 2004.

 C.R. Kothari, research Methodology, New Delhi, New Age

International (P) Ltd.

WEBSITES

 www.bajajallianzlife.co.in
 www.icici.com

 www.lic.gov.in

 www.hdfc.com

 www.kotak.com

 www.birlasunlife.com

 www.aviva.com
 SYNOPSIS

OF

PROJECT REPORT

Submitted By

Hemant Sanadhya
ROLL No. 306

BBA III YEAR