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POJECT REPORT

TITLE.
ASSESSMENT OF THE POTENTIAL OF THE CHANGING INVESTMENT PATTERN AND INSURANCE CONSULTANCY AS A PROFESSIONAL CAREER

Submitted to :Miss Shadab Anjum

Submitted by : AMIT KUMAR SIKKIM MANIPAL UNIVERSITY, DE.


MBA IVth Semester Roll No.520619264

AIMS AND THE OBJECTIVES OF THE PROJECT


To determine Life insurance awareness and market potential analysis. To work out of professional customer who are engaged in insurance plan and their level of satisfaction. To find out of the problem and constraints with the customer face for insurance plan. To make recommendations for devising proper marketing strategy to the organization.

SCOPEOF THE STUDY


The scope of this research report entitled Assessment Of Consultancy As a Professional Career Undertaken at BAJAJ ALLIANZ, Lucknow (U.P.) can be enumerated in points given below: 1) Recommendations and Suggestions by the researcher can be served as a useful device for developing marketing strategies for increasing awareness. 2) Recommendations will help in removing the dissatisfaction among dealers. 3) Data and facts recorded in the report can be utilized as secondary data for further work in concerned areas. 4) This research work can be utilized to serve academic purposes. The Potential Of The Changing Investment Pattern And Insurance

INTRODUCTION
Why Life Insurance Life insurance has come a long way from the earlier days when it was originally conceived as a risk medium for short periods of time, covering temporary risk situations, such as sea voyages. As life insurance became more established, it was realized what a useful tool it was for a number of situations, including a) Temporary needs/threats: The original purpose of the life insurance remains an important element, namely providing for replacement of income on death etc.

b)

Regular Savings: Providing for ones family and oneself, as a medium to long term exercise (through a series of regular payment of premiums). This has became more relevant in recent times a people seek financial independence for their family.

c)

Investment: Put simply, the building up of saving while safeguarding it from the ravages of inflation. Unlike regular saving products, investments, where the individual makes a one off payment.

d)

Retirement: Provision for later years becomes increasingly necessary, especially in a changing cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in ones old age.

Let us take an example to understand the need for insurance :


Mr. Atul is 45 and self-employed. His wife Nandini, who is a housewife, looks after their two children aged 3 and 7 years. They stay in a rented accommodation, where the rent is 15,000 rupees per month. Mr. Atul has taken up a loan ofRs. 2 Lakh. His monthly earning on average are 40,000 rupees. Mr. Atul passes away in an urfortunate road accident. What are some of the financial implications of his death on his family. There may be several financial implications on his family. Some of these are : a) b) c) The monthly income, previously provided by Mr. Atul would stop . His wife and children may have to seek financial assistance from other relatives. His wife may not have enough money to pay back the loan of Rs. 2 lakhs .

d) e) f)

The family may have to move into a cheaper accommodation. His widow may have to take up work to earn money. The education of his children may suffer.

This simple example shows that the impact premature death can have on a family, where the main earner has no life cover. Had Mr. Atul taken life cover, his family would not have faced such hardships in the event of his unfortunate death. A simple life insurance policy could have provided Mr. Atul's family with a lump sum that could have been invested to provide an income equal to all or part of his income. In simple words, insurance protects against untimely losses. Insurance has been found useful in the lives of persons both in the short term and long term. Short term needs like sudden medical costs and long term needs like marriage expenses etc can be met with using life insurance.

INDUSTRY PROFILE
The Life Insurance Business is governed by the Insurance Act 1938(as amended up to date), and the Life Insurance Corporation Act, 1956. The latter Act was passed to provide for the nationalization of life insurance business in India by transferring all such business to Life Insurance Corporation of India (LICI). And also to provide for the rules and regulations related to the working of LICI, administration, finance, accounts, audits, investment of funds etc.

NATIONALISATION OF INSURANCE BUSINESS


All type of insurance business in India has been nationalized. The Life Insurance Business is carried on exclusively by LICI. Formed

and regulated by the Life Insurance Corporation Act 1956. The General Insurance business has been nationalized through the General Insurance Business Act 1972. From 1 st January 1974, General insurance Business is transacted only by the General Insurance Corporation of India (GICI). It was formed in accordance with afore mentioned act, and its four subsidiary companies are viz.: National Insurance Corporation Ltd. Calcutta. New India Insurance Co. Ltd. Bombay. The Oriental Insurance Co. Ltd. New Delhi. The United India Insurance Co. Ltd.

THE ENTRY OF PRIVATE PALYERS


The Industrial Policy of 1991, brought forward by the then Finance Minister, Mr. P.Chidambram under the able governance of Prime Minister Mr. P.V.Narsimha Rao, opened the gateway for foreign Investment In India. It heralded the onset of a new era of collaborations and associations. The first move for the Liberalization came with the Malhotra

Committee Report in 1993 which recommended the privatization of insurance, setting of an Insurance Regulatory Authority and restructuring the government monopoly LIC and GIC and its IRDA ACT passed in 1999 set the ball rolling for the entry of new private players in the domestic market. subsidiaries.

The Indian insurance sector has finally opened up and it is with much anticipation that new players are awaiting their share of markets. License have been issued to both Indian and Foreign players such as Bajaj Auto Ltd and Allianz AG, HDFC- Standard Life, Max IndiaNew York, ICICI Prudential, IFFCO-Tokyo Marine, Birla SunLife, Tata AIG, Aviva Life Insurance, SBI Life, Kotak are some of the entrants into newly liberalized insurance markets.

Currently in Life Insurance segments there are 12 private and Public Company. Many private players that have entered the market have formed joint venture with foreign insurers. Any company with a minimum capital of Rs. 100 crore (with a foreign capital not exceeding 26% of the equity) can apply for license to enter market.

ADVANTAGES OF LIBERALIZATION.
Liberalization commitment of the country to help in disciplining future economic policies will include the insurance reforms. When world over insurance market has been opened up, Indian market

cannot remain in isolation. History has shown that it is very difficult in isolation. Globalization is the new economic reality which is here to stay, heralding a new era of insurance in India. With the opening of the insurance industry, India stands to gain with the following major advantages Globalization will provide opportunities to the customer

for the Better production with more reasonable and affordable pricing.

The customer

will get quicker

services. It will enhance the saving rate Long term funds for infrastructure development will be available to the country.

It will secure for India larger inflow of foreign capital need to sustain our GDP growth.

The opening up will enable the country to save more and invest more for the development in infrastructure.

With

new

insurance

intermediaries

and

more

distribution channel the market is bound to develop by leaps and bounds.

In the next few years it is establish that the Indian insurance sector will develop the better understanding of consumer requirement leading to more satisfaction of consumers.

The world class technology will be available in the market bringing about tremendous improvement in servicing. Choice of price will be available to the customers. Lead to increase in employment. Social and rural obligations will also be served as IRDA has come out clear regulations in this regards, which makes the development in this area mandatory. 1. Global competitors will help in building expertise with their global practice.

THE LIFE INSURANCE SCENARIO IN INDIA


Since 1956, with the nationalization of insurance industry, the state run Life Insurance Corporation of India (LIC) has held the monopoly in country's life insurance sectors. General Insurance Corporation of India (GIC), with its four subsidiaries was its counterpart in the casualty sector. Over the time, taking advantages of its monopoly and virtual prerogative in establishing premiums, LIC has evolved into a monolith. It has agents and branches in every nook and corner of the vast country, it has created and enviable brand name, particularly among the rural population of the country. It has around $ 40 billion as its financial sector. However, on a qualitative

side, it has very little to take pride in and their lies the potential for players to challenge this colossal.

The Indian insurance industry has had a sharp increase in growth rates since the opening up of the insurance sector. The untapped potential of the market has been clearly highlights with the entry of private life insurance players as only 80 million of India's 300 insurable populations are insured. million

As is typical with monopolies, the premium rates charged by LIC are among the highest in the world, and its track record in customer service can at best be called shabby. With a huge unionized, rigid work force mostly in the clerical category, LIC runs the risk of high fixed costs, which will be the deciding factor for productivity in the competitive scenario. While boasting full scale automation of its operation the truth is that its technology is out dated. The new players, with the state of the art technology under the belt will be in advantageous position. 80% of LICs business is produced by 20% of its ill- trained agent force. The foreign players, with domestic partners string band value can test the unconventional distribution channels like brokers, the internet, the banking distribution system, etc, although foreign players may be tempted to keep their operation in big cities for the 'cream layer' of the society, the real market lies in rural India, which accounts for the of LIC's present business. lion's share

Although the market was opened to primary entry some four years ago, the real competition has started only in the last two years as it took a while for private entrants to establish themselves. Even though the Public Insurance Companies still dominate the market, the fruits of competition are already visible in terms of wide range of products innovative bundling of insurance with other financial services, aggressive marketing and better consumer care.

I.R.D.A.
The Government of India (GOI) opened the insurance sector to private Players on October 24, 2000, thus unraveling a new chapter in this field. This new policy of the GOI is an outcome of India's policy of liberalization and also the result of its obligation to WTO to confirm to its principles and guidelines relating to the reduction of barriers to trade in services. The insurance returns committee under chairmanship of R.N.Malhotra in its April, 1993 report suggested reforms in the insurance sector including improvements in the functioning of LIC, GIC, liberalizing and

developing a strengthening the regulatory system. The committee submitted its report on 07-01-1994 to Union Finance Minister. The bill was passed regarding this in 1998.
Finally Insurance Regulatory and Development Authority (IRDA) gained statuary status in April 2000.

This epoch making decision of the GOI has ushered in a new era that has transgressed four decades of complete control of the public sector over the private sector. IRDA allowed the private insurers to transact insurance business in India. IRDA started accepting applications from new private insurers from 19th April 2000. the first batch of licenses was given in October 2000. Till date licenses have been issued to 13 insurers including LIC. IRDA drafted the rules of the game, selected the players who would enter the market. Having achieved this, it now performs referee's role of ensuring that the players play by the rule. Besides, the IRDA is also entrusted with the task of developing the market that calls for generating insurance awareness in the country. IRDA's basic function is to protect consumer interest. This means ensuring proper disclosure, keeping prices affordable but also insisting on some mandatory products, and most importantly making sure that the customer gets paid by the insurers. Further ensuring the solvency of the insurer is a very important function of the regulatory authority. IRDA has evolved a set of operational guidelines to deal with the maintaining the solvency of insurers. It has evolved guide lines for the entry and proper functioning of the Agents, Insurance Consultants (IC's) intermediaries. Thus, the critical aspects of IRDA in governing insurer sector are:

The number and role of Private Sector operates including intermediaries. Regulate covering investment, solvency norms etc. ' S Product range. Accounting practices. Consumer protection norms. Ensuring the rural and health insurance are developed. Fixing of license. While Insurance regulatory and Development Authority (IRDA) has had significant role to play towards development and growth of private insurers in India, the regulator needs to be a little more proactive in taking initiatives. Due to certain regulations like the commission structure, the cost of operating in India is nearly 25% higher than other countries. The product clearance takes a long time causing slowdown in the industry growth. However, IRDA has encouraged development of modern, innovative products, flexible premium payments, new distribution channels, improved customer services and introduced proper regulation to protect policyholder's interests.

THE CHANGING SCENARIO OF SAVINGS AND INVESTMENTS


THE savings and investment scenario in our country has undergone total change in the past decade, since the country embarked upon a course of liberalization and globalization of its economy. With the increasing sophistication of our economy, the variety and type of investment options available have multiplied. Also, with the economy getting more and more integrated with the world economy, rapid changes in the options, instruments, rate of return etc. have become the order of the day. An attempt is made here to introduce to the investor a bird's eye view of the

changed scenario of the savings and investment options available in the country. The Changing Scenario... The two fundamental changes witnessed in the recent times are the appetite for the new generation to live it up and save less and also the steady fall in interest rates in the monetary system and easy availability of credit for personal purposes. In earlier times, consumerism as seen today here, a legacy of the western society, was shunned by our people due to many reasons like low income levels, non availability of quality goods, import restrictions, lack of information about products etc. Today the scenario has witnessed a sea of change. Thanks to the increasing prosperity levels of the people, easy availability of local as well as imported high quality consumer goods, non-stop advertisements in the print as well as electronic media etc. the affordability as well as awareness levels of people have gone up tremendously. Added to this, the banks as well as non banking finance have developed a sudden fancy for consumer and personal loans. The consistent fall interest rates in the past 3 to 4 yrs. have also substantially contributed to the changing habits of the consuming public.

INVESTMENT OPTIONS
Some important investment options available in the country and their suitability for different groups of people are: A. Shares Stock market offers interesting and exciting investment opportunities. An amount of Rs. 25000 invested in Wipro in 1992 would be worth Rs. 75000 today. This is in addition to generous dividends received by the holder every year. The returns could be mind-boggling, but the instances where people have lost lots of money in the stock market are plenty. The percentage of savings that should be invested in shares would depend on

the person' age, risk profile etc. but generally one should invest more in shares in younger days and less as the person gets older. Share markets enjoy certain income tax benefits. Dividends received on shares are fully exempt from income tax. Stock markets in India have gone through extremely trying times. Due to the high level of volatility and uncertainties witnessed in the past, a large number of investors are scared of investing in shares. Certainly, there is no magic formula for success in stock market but one should consult an expert before speculating and also keep one's common sense on high adrenaline. B. Mutual Funds Mutual Funds are institutions which collect money from investors in small amounts and invest the same in lump some in shares, bonds government securities, money market etc. depending on the purpose for which they were collected. Individuals who have pooled money get ownership certificate called units of fond. More the amount invested, more the units that investor receives and greater is his share of profits and return.The fist mutual fund in India was The Unit Trust of India, which is best known for its Unit 64 scheme.

Unit Trust of India (UTI)


Unit Trust of India is a statutory corporation constituted under the Unit Trust of India Act, 1963. It was formed with a view to encourage saving and investment and participation in the income, profits and gains accruing to the Trust from the acquisition, holding, management and disposal of securities. UTI started functioning with effect from 1st July, 1964 and has been managing a variety of schemes catering to the needs of every class of citizens.

Schemes of UTI;1) UTI variable Investment Scheme. 2) Unit Scheme, 2002 3) UTI Regular Income Scheme 4) UTI G-Sec. Fund 5) UTI Growth Sector Brand Value Fund 6) UTI Growth Sector Petro Fund 7) UTI Growth Sector Pharma Health Care Fund 8) Nifty Index Fund 9) UTI Master Growth 10)UTIMNCFund 11) UTI Master Plus 12) Unit Scheme-64 13) UTI Equity Tax Saving Plan (ETSP) 14) Children's Career Plan 15) Index Select Fund 16) UTI Bond Fund 17) MIP (Monthly Income Plans) 18)UTIULIP 19) Unit Scheme-95 . .

20) UTI Retirement Benefit Plan 21) UTI Mahila Unit Scheme - Gift Plan 22) UTI Master Gain 23) UTI Software 24) UTI Money Market Plan

Various Mutual Funds Floating In the Market1. Alliance Basic Industries 2. Magnum Contra 3. Reliance Growth 4. Reliance Vision 5. Tata Growth 6. HDFC Long Term Advantage 7. HDFC Tax Saver 8. HDFC Prudence 9. JM Balanced 10.Templeton India Pension 11. BoB Income 12. Escorts Income 13. Libra Brand 14. Prudential ICICI Income LT 15. DSPML Savings Plus Moderate 16. Chola Gilt Investment 17. Templeton IGSF Long-term 18. Franklin India prima 19. UTI Gilt Advantage Long-term

C Fixed Income, Tax Saving Scheme There are various schemes available in the market today, which yield regular income (often higher than bank interest) and also offer tax benefits. A brief description of the schemes is as follow: Post Offices Saving Scheme of Post OfficesPost Office offers a lot more than merely delivering the letters for you. It acts as a bank and at the same time also offers a wide choice of investment options to choose from. You can open a saving account, a monthly income deposit, a term deposit, PPF, recurring deposit in the next door post office.

Though there has been a steady decline in the interest rates over last few years and small saving instruments are loosing shine, yet these instruments offered by post offices remain popular among salary earners as they offer comparatively higher interest income than one could find elsewhere coupled with 100% safety.

Deposit Schemes of Post Offices Saving Account Schemes 5 Year RD Account Post Office Monthly Income Scheme Post Office Time Deposit Scheme 6 YearNSC (8th issue) Kisan Vikas Patra Public Provident Fund Schemes Deposit Schemes for Retiring Employees

Senior Citizen Saving Scheme Employees Provident Fund Postal Life Insurance Schemes BONDS: Bonds are debt papers issued by Corporate, Government Institutions etc., to finance large projects. These instiuments offer interest income to the investor. These are issued in various forms and sizes to cater to large investors like banks, mutual funds, financial institutions and also to small investors who can buy a bond just for Rs.5000. Bonds carry maturity period and are payable on maturity. Most popular bonds available in the market: IDBI Growing Interest Bonds IDBI Tax Structure (Tax Saving ) Bond IDBI Retirement Bond IDBI Regular Income Bond ICICI Tax Saving Bonds Regular Income Bond of ICICI Children Growth Bond RBI Savings Bonds. 6.5% tax free RBI Relief Bonds with 5 year maturity 8% taxable RBI Relief Bonds with 6 year maturity. D. Bank Deposits Banks have been acting as custodian for millions of account holders. They offer variety of options to account holders to invest their money depending upon the time horizon and return expectations wherein they can earn interest income.

Deposit with Banks Saving Account Schemes

Term Deposits Account Special Term Deposit Recurring Deposit

Long Term Floating Rate Deposit Multi Option Deposit Scheme Saving Plus Account Senior Citizen Deposit Scheme Commercial Paper

Saving Account SchemesThese accounts are used more as a money transfer device rather than an investment option. Convenience of operating the account, Cheque writing facility, availability of bank branches at every nook and corner of India, transparency in working and error free accounting systems adopted by the banks are some of the reasons for growth of saving accounts.

Term Deposit Account: Savings account though earns a moderate interest of 3.5% but it would be inappropriate to call it as an investment option. Term deposits on the other hand are the accounts with the bank with a longer time horizon primarily to earn interest besides keeping surplus money in safe hands. Interest rates keep changing and interest is paid either periodically or is reinvested automatically together with the principal. Special Term Deposit:

Interest is compounded with the principal of quarterly intervals. Accumulated deposit together with accrued interest is payable at the end of the agreed term. Recurring Deposit: Recurring deposit give the element of compulsion to save and provide full liquidity to access your savings at any time. Suitable for those looking for regular investment of fixed amount over selected period of time. The unique feature of this deposit is that no tax shall be deducted from interest irrespective of the amount of deposit or interest earned on it. There is flexibility in the period of deposit with maturity ranging from 6 months to 10 years. Long Term Floating Rate Deposit: This is a scheme to provide a deposit product with a floating interest rate linked to a base rate. This scheme provides an option to invest in long term maturity but at a floating rate of interest so that you can have a long term portfolio with an opportunity to gain in any upward movement in interest rates. Multi Option Deposit Scheme: A unique facility started by State Bank of India and other nationalized banks at selected branches in competition with foreign banks, to provide liquidity to term deposits and a host of other convenient facilities. The account is a term deposit in conjunction with saving account or current account. Saving plus Account:

This account brings the best of both saving account and term deposit account. It gives you the ease of access and liquidity of a saving bank account and a high rate of return of term deposit. Senior Citizen Deposit Scheme: A term deposit scheme with differential rate of interest to senior citizens (60 years and above) normally fetches 0.50% higher interest. The tenure of the deposit has to be at least one year with minimum deposit of Rs. 10000. Commercial Paper: Commercial paper is an unsecured money market instrument issued in the form of a promissory note used to borrow funds. It offers attractive returns. It is issued for maturities between a minimum of 15 days and a maximum up to 1 year. E. Life Insurance The amount of Life insurance that should be taken by an individual would differ depending on varying requirements and priorities of the person these days thanks to the arrival of more than a dozen international players in addition to our own LIC, wide variety of life insurance policies are available to satisfy the varying needs and requirements of an individual, spouse and children. The earlier in life the person buys the insurance, the better it is for him as the period of coverage would be high as well as the premium to pay would be low. The Life Insurance Policies can be broadly divided into four categories: I. Cash value life insurance. II. Term insurance. III. Whole life insurance. IV. Annuity plans. I. Cash-value life insurance:

Cash-value life insurance and its variants, such as whole life or variable life combine insurance coverage with investing .A portion of the premium goes towards the coverage, and another portion goes towards the accumulation of the cash value or into an investment account. Cash value insurance is an excellent investment tool besides providing the cover for the contingencies. They are offered by LIC and other private insurers coupled with the risk coverage and tax exemptions make investment in insurance a wise decision. II. Term insurance: Term insurance is just plain insurance with no investment components. This makes the policies cheaper, less complicated and easier to compare. Term could be for the defined period or undefined for the whole life. Also called temporary insurance, term life insurance covers the person against death for a limited time or the 'term'. For example, the term might be one year, ten year or even more or it may be linked to an event for exampleuntil children are grown, or until they finish college, or until they get married or until you retire, etc. If no claims are made against the policy during the period, you don't receive any benefit after the policy expires.

Ill Whole life insurance: Also called Permanent Insurance, the whole life insurance, is permanent in nature and does not expires till the time insured is alive and continues to pay the premium as per the policy. It provides coverage similar to the term insurance in addition to the maturity amount. A part of your premium goes towards the insurance portion of your policy, a small part of your premium goes towards the administrative expenses, and the

balance of your premium goes towards the investment or cash portion of your policy. IV. Annuity plans: Life insurance also lets you plan for the future by protecting your financial resources against the uncertainties of life. Annuity or commonly called pension can help manage money to last a lifetime. Annuities are the only financial planning tool that can help you save and then provide you the payout plan on retirement. It is a secure and steady stream of income. Life Insurance Corporation of India (LIQThe various schemes of LIC running in the market are:1. New Beema Kiran- low cost high risk 2. Jeevan Aadhar- plan for handicapped dependents 3. Asha Deep- covers against diseases 4. Jeevan Asha- surgical benefit plan 5. Pension Plans-New Jeevan Akshay -New Jeevan Suraksha 6. Endowment Plans - Endowment assurance double advantage plan - Jeevan Mitra-Double insurance coverage - Jeevan Anand-A whole life scheme 7. Money Back Plans for Liquidity 8. Children's Insurance Plans - Jeevan Kishore - Jeevan Chhaya - Bal Vidya - Komal Jeevan

Private Insurance Companies-

Some of the private companies and the plans launched by them are:-

ICICI Prudential Life Insurance Company


ICICI PRU Smart Kid ICICI PRU Lifeguard - Level term assurance ICICI PRU Forever Life - Deferred pension plan

HDFC Standard Life Insurance Company


HDFC Endowment Assurance Plan HDFC Money Back Plan Single Premium Whole Life Insurance Plan HDFC Personal Pension Plan HDFC Term Assurance Plan HDFC Children's Plan

KOTAK Life Insurance


KOTAK Capital Multiplier KOTAK Retirement Income Plan KOTAK Premium Return Plan KOTAK Flexi Plan KOTAK Easy Growth Plan KOTAK Child Advantage Plan KOTAK Money Back Plan KOTAK Term Plan KOTAK Endowment Plan

V. Gold and Silver


Precious metals have been a very traditional and popular form of investment for Indians over generations. No wonder, despite being one of the poorest countries in the world, in terms of gold and silver held by its

citizens India would rank highest in the world. Although these have protected investors against runaway inflation in earlier times, the future price movements of gold and silver are certainly unpredictable.

VI. Real Estate


Real estate is often considered to be one investment that would ever fail, as the saying goes "they no longer make it". The supply of land is fixed and the demand keeps on increasing with the rise in prosperity. Recent development is the cheap and easy availability of housing finance companies.

COMPANY BACKGROUND
Bajaj Allianz Life Insurance Company Limited is a joint venture between Allianz AG, a leading insurance company of the world having headquarters in Munich, Germany and Bajaj auto one of the India's most respected names a group of Rs. 8000 crore.

The alliance of two performance driven giants Allianz AG and Bajaj Auto has given birth to "Bajaj Allianz Life Insurance Company Limited", one of the fastest growing Life Insurance Company Limited. This partnership is committed to India, Indians and the growth of Life Insurance marketed in India. Bajaj Allianz realizes that one seeks an insurer who one can trust the hard earned money with Allianz AG with over 112 years of financial experience in over 72 countries and Bajaj Auto, trusted for over 55 years in the Indian market, together are committed to offering financial solutions that provides all the securities one needs for the family and itself. Bajaj Allianz Life Insurance Company limited is the fastest growing Life Insurer in India having over 3 lac-satisfied customers and a network of 78 customers care centers across 50 cities. IRDA has issued the certificate of registration on 3
rd

August 2001

to the Bajaj Allianz Life insurance Company Limited to transact the insurance business in India. Bajaj Allianz Life insurance Company started marketing of approved products on 1
st

September 2001.

Bajaj Allianz Company limited is having a shared vision of: "To be the best life insurance company in India to buy from, work for and invest in".

SHARE HOLDERS AND PROMOTERS: BAJAJ AUTO LIMITED


Bajaj auto limited is the largest manufacturer of two and three wheelers in India and also one of the largest manufacturers in the world. Bajaj Auto Ltd has been in operation for over 55 years. As a

promoter of Bajaj Allianz Life Insurance Company Limited it has the following to offer: 1. Vast distribution network 2. Knowledge of Indian consumers 3. Financial strengths and stability to support the Insurance Business Bajaj auto Limited is a 4000 crore giant a part of 8000 crore group a household name in India with a strong brand image and loyalty. Bajaj group is synonymous with quality and customer focus. One of the largest two and three wheeler manufacturers in the world. More than 21 million vehicles on the roads across the globe. India's largest exporter of two and three wheelers.

ALLIANZ AG.
Allianz AG is in the business of general (property and casualty) insurance, life insurance and health insurance and asset management and has been in operation for over 112 years. Allianz is one of the largest global composite insurers with operations in

over 70 countries. Further,

the group provides Risk Management Allianz has insured most of the and France). Allianz has channels.

and Loss Prevention services.

world's largest infrastructure and projects (including Hong Kong airport and channel tunnel between U.K substantial portfolio in the commercial and personal line sector using a wide variety of innovative distribution

Allianz AG is a financial powerhouse having following features: World wide no. 1 by gross written premium. One of the largest asset managers in the world. Having "A+" rating by A.M. best. Managing assets worth more than 989 billion euros (Rs. 53, 26,754 crore). One of Europe's most highly valued stock corporations. Gross written premium at 82.6 billion Euros (Rs. 4,44,883 crores).

PRODUCT RANGE
UNIT GAIN PLUS
One plan that provides protection and investment with flexibility like never before.

This plan offers the unique option of combining the protection of life insurance with the attractive prospects of investing in securities. You can choose the investment... Guaranteed death benefit. Choice of 5 investment funds viz. Equity Index, Equity Plus, Balanced Plus, Debt plus & Cash plus Fund with Flexible Investment Management: you can switch between funds at any time. 3 free switches are allowed every year. Higher allocation of 76% in the 1 year onwards.
st

year and 97% in the 2

nd

Given the basic level of premium, you have the flexibility to choose between the minimum and maximum sum assured. Attractive investment alternative to fixed interest securities. Provision for full/partial withdrawals any time after the 3 year full premiums are paid. The NAV is calculated on a daily basis. You have the option to add the following benefits: Accidental permanent Total/Partial Disability Benefit, Critical Illness Benefit and Hospital Cash Benefit. Low operational costs.

UNIT GAIN PLUS SP A single premium plan that takes care of your insurance and investment requirements-for life. Convenient single premiums payment, with option to play top ups later.

Low operational cost, i.e. lower Fund Administration & Fund Management Charges. Choice of 5 funds viz. Equity Index, Equity Plus, Balanced Plus, Debt Plus &Cash Plus funds with flexible investment management. 3 free switches are allowed every year. Choice between min. and max. Sum assured. Provision for full/partial withdrawals any time after the single premium is paid. The NAV is calculated on a daily basis. Guaranteed death benefit.

UNIT GAIN The plan that takes care of your insurance Tinvestment requirements - for Life. Guaranteed death benefit. The NAV is calculated on a daily basis. Choice of 5 funds viz. Equity Index, Equity Plus, Balanced Plus, Debt Plus &Cash Plus funds with flexible investment management. 3 free switches are allowed every year. Provision for full/partial withdrawals any time after the single premium is paid. You have the option to add the following benefits: Accidental Death Benefit, Accidental Total/Partial Disability Benefit.

CHILD GAIN
Are you adequately prepared for your child's future?? It is a participating (with profits) children's money back. Plan for education fund till graduation (21) or post graduation (24).

Premium payable till age 18 of the child. Payouts begin at age 18, when the child enters college. The guaranteed payments can be as high as 115% of the Sum Assured. Option to choose a unique Start of Life Benefit, an additional Sum assured Is payable incase of an unfortunate death or accidental permanent total disability of the policy holder during the term of the policy. In case of the death of the parent or accidental permanent disability, all future premiums are waived and 1% of the sum assured is paid monthly till the end of the policy term. ( Family Income Benefit) PROTECTOR Protect your family from the burden of financial liabilities. It is an economical way to protect your family from the burden of repayment of loan in case of death of loanee. The plan offers you the choice between two premium optionsregular premium and single premium payment. Joint life availability- the option to cover the applicant of the loan under this plan.

LIFE LONG GAIN


Regular income for you and the added benefit of providing for your loved ones too. Life long gain conies with a host of features to allow you to have the best of all worlds- regular income for you and the added benefit of providing for your loved ones too...

Guaranteed death benefit. Whole life protection with premium payment term(only 10-15 years) It is like a tax free pension for life. Provision for full partial withdrawals. It can also take care of unforeseen expenses like accidents, illness, hospitalization etc. and provides your family with a safety net.

UNIT GAIN EASY PENSION PLAN


With Bajaj Allianz, a person can control of their future and ensure a beneficial retirement. There are two packages to choose from(1) Unit gain easy pension regular premium

(2) Unit gain easy pension single premium FEATURES Available as Regular and Single Premium option

The policyholder's benefits are directly linked to the performance of the underlying funds.

Choice of five investment funds (a) Equity index pension (b)Equity plus pension (c)Balanced plus pension (d)Debt plus pension (e) Cash plus pension

Option to take a lump sum at vesting annuity from Bajaj

Allianz or any other company Contribute eligible for tax relief under sec 80ccc (i) or sec-88 of the IIT act. Four riders are available (a) Accidental Death benefit. (b) Accidental permanent total/partial disability benefit. (c) Critical illness benefit.

KEYMAN INSURANCE
Key man insurance is a life insurance cover under a suitable plan of Assurance affected by the company to compensate the financial loss suffered following the death of key member or the staff of the organization..

FEATURES-

Compensate financial loss due of den ice of key member or staff of the organization.

Tax planning/salary tool for the company insurance policy is also allowed as business expenses. Premium paid by the company is not treated as perquisites in the hands of the employees. Premium paid are eligible for deduction under section 3A(i) of the IT A ct.Products available for Key man insurance are as follows(a) Invest gain (b) Cash gain (c) Risk gain (d) Term care (e) Unit gain plus (f) Unit gain plus SP

SWARNA VISHRANTI
The Bajaj Allianz "Swarna vishranti plan" enable the individual to live his life after retirement with out any tension. FEATURES: A participating deferred annuity with the life cover plan

Enjoy tax benefits under sec80ccc (i) Provides valuable life cover too. Option to take 33% of the lump sum tax free at vesting age. Freedom to purchase annuity at the best available market rates on vesting. Five additional benefits. (a) Family income benefit. (b) Term cover benefit. (c) Comprehensive accident protection. (d) Critical illness benefit. (e) Hospital cash benefits.

INVEST GAIN
The Bajaj Allianz invest gain is specially designed plan that offers a unique combination of benefits to help a individual to develop a sound portfolio for his entire family. It offers most significant factor called as (Family income benefit) i.e. FIB that sustains a family by compensating the loss of income due to permanent disability or death.

FEATURES: Participating (with profit) Endowment plan. Unique savings cum protection plan. Offers unique Family income benefit. Higher protection going up to 4 times of the sum assured. Offer 5 additional benefits (a) Family income benefit. (b) Term cover benefit. (c) Comprehensive accident protection. (d) Critical illness benefit. (e) Hospital cash benefits.

CASH GAIN
The Bajaj Allianz "Cash gain " is specially designed plan that offers a host of additional benefits portfolio for your family. The most significant benefit is called as FIB that sustains the family by compensating the loss of regular income due to death or permanent disability.

FEATURES: Provides wide range of options in regard to terms- 15,20,25 and 30 yrs.

A cash payout is made every 1/5 of the term ensuring the more frequent recovery of plan.

125% of the sun assured guaranteed as payout. Only money back plan that offers quadruple protection going up to 4 times the sum assured. "

Offer 5 additional benefits

(a) Family income benefit. (b) Term cover benefit. (c) Comprehensive accident protection. (d) Critical illness benefit. (e) Hospital cash benefits.

RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the problem. Ts was study the various steps that are generally a researcher in studying his research problem along research adopted by with the logic

behind them. It is necessary for a researcher to know not only the research method but also the methodology. Researcher not only need

to know how to develop certain indices mean , the mode the median or the

or tests, how to calculate to

standard deviation, how to apply

particular techniques, are relevant and which are not. All this mean that it is necessary for the researcher to design his methodology for his problem as the same may differ from problem to problem.

From what has been stated above, we can say that research methodology has many dimensions and research methods do constitute a part of the research methodology. The scope of research methodology is wider that of research method. Thus when we talk of research methodology we not only of talk of research methods but also consider the logic behind the method we use in the context of our research study and explain why we are using a particular method or technique and why are not using other. Why research study has been undertaken, how the problem has been defined, in what way and why the hypothesis has been formulated , what data has been collected and what particular method has been adopted and a host of similar other question are usually answered when we talk of research methodology concerning a research problem or study.

RESEARCH PROCESS
Research process steps. Following consists of series action or steps necessary to order concerning various steps provides

effectively carry out research and the desired sequencing of those a useful procedural guideline regarding the research process. 1. Formulating the research problem

2. 3. 4. 5. 6. 7. 8. 9. 10. 11 .

Extensive literature survey Developing the hypothesis Preparing the research design Determine the sample design Collecting the data Execution of the project Analysis the data Hypothesis testing Generalization and interpretation Preparation of the report or presentation of result

RESEARCH DESIGN
A research design is simply the framework or plan for a study used as a guide in collecting and analyzing the data blueprint that is followed in completing a study. A resreach project conducted scientifically has a specific framework of research from the problems identification to the research report. that is

. It is the

This framework of conducting research is know as the research design.

SAMPLE DESIGN

As complete enumeration of all the members of the population which is known census inquiry is not possible, so I have undertaken sampling technique.

SAMPLING UNIT
Respondent with in Luknow city

SAMPLE SIZE
100 Respondents

SAMPLE AREA DISTT - Lucknow


Hazratganj Gomtinagar Indiranagar Nishatganj

Niralanagar

COLLECTION OF DATA
Primary

COLLECTION TECHNIQUE
Questionnaire Face of face interview

Q.1 Three

How many numbers of financial dependents? 229 160 611

Less than three More Than three

Interpretation of graph: Respondents who have more than three financial dependent are 61%, less than three are 16% and who have exactly three dependents are 23%.

Q.2 Yes No

How many numbers of financial dependents? 846 154

Interpretation of graph: 85% of respondents are will aware of life insurance on the other hand 15% are those who dont know about life insurance. The reason may be the big parts of my studies area are rural which has lower rate of literacy.

Q.3 Yes No

Have you ever invested in life insurance policy? 710 136

Interpretation of graph:

84% of respondents who are will aware of life insurance policies invested in it but 16% did not invest after knowing about it. The reason may be they are not properly pursued so they can be target customers.

Q.4

Your income per annum 44 102 306 204 54

Below 1,00.000 1,00,001 to 1,50,000 1,50,001 to 2,00,000 2,00,001 to 2,50,000 Above 2,50,000

Interpretation of graph: 86% of respondents falls in the brackets of annual income of 1,00,001 to 2,50,000 and 8% are in brackets of above 2,50,000. So either they are customer of insurance policies or they can be target customer.

Q.5

In which kind of companies policy you have invested? 208 302 200

Public (LIC) Private In both

Interpretation of graph: 43% of respondents are investing in private life insurance company (Bajaj Allianz), 28% are investing in both private and public and 29% are those

who has life insurance coverage of public sector (LIC). So this 29% can be target customer.

Q.6 Yes No

Have you ever purchase polices of Bajaj Allianz? 300 202

Interpretation of graph: 60% of respondent has already purchase the Bajaj Allianz policies. The 40% who have not purchased its policy can be potential.

Q.7

Your motive of purchasing Bajaj Allianz Policies? 124 26 150

Security Investment Both

Interpretation of graph: The motive behind purchasing insurance policies by 50% respondent are both (security & investment), 41% respondents motive is security where as only 9%s motive is investment. So the people who are not investing in insurance policies can be motivated to invest in it in the form of investment.

Q.8

You purchase Bajaj Allianz policies? 141 92 67

For Self For wife For children

Interpretation of graph: 47% of respondents are purchasing policies for self, 31% for three wife and 22% for three children.

Q.9

Are you interested in insurance consultancy as a professional Career in Public or Private Insurance Companies?

Yes No

224 76

Interpretation of graph: 45% are those respondents who have pension plan and 55% have not purchased it. So these 55% should be targeted to purchase pension plan.

Q.10 Do you want to join Bajaj Allianz as an insurance consultant? Yes No 233 67

Interpretation of graph: Only 22% have purchased children plan of Bajaj Allianz, so the rest78% respondents should be targeted to purchase children plan.

BIBILOGRAPHY
MARKETING MANAGEMENT PHILIP KOTLER RESEARCH METHODOLOGY C K KOTHARI ECONOMIC ENVIRONMENT OF BUSINESS (MACRO ECONOMICS) - K ASHWATTHAPPA Various documents, forms of Bajaj Allianz

WEBSITES VISITED :AB-

www.bajajallianz.com www.indiainfoline.com

C- Search engines for research papers and articles.


D-

www.researchonoline.com

ANNEXURE
SECTION-A NAME : ADDRESS : OCCUPATION: EDUCATION: AGE: SEX: MARITAL STATUS : SECTION B Q.1 How many number of financial dependent? a) Three Q.2 b) Less than three c) More than three MALE/FEMALE MARRIED/UNMARRIED

Have you ever heard about life insurance? a) Yes b) No

Q.3

Have you ever invested in life insurance policy? a) Yes b) No

Q.4

Your income per annum

Below 1,00.000 1,00,001 to 1,50,000 1,50,001 to 2,00,000 2,00,001 to 2,50,000

Above 2,50,000

Q.5

In which kind of companies policy you have invested?

Public (LIC) Private In Both

Q.6

Have you ever purchase policies of Bajaj Allianz? a) Yes b) No

Q.7

Your motive of purchasing Bajaj Allianz policies?

Security Investment Both

Q.8

You purchase Bajaj Allianz policies?

For Self For Wife For children

Q.9

Are you interested in insurance consultancy as a professional Career in Public or Private Insurance Companies? a) Yes b) No

Q.10 Do you want to join Bajaj Allianz as an insurance consultant? a) Yes b) No

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