A PROJECT REPORT

ON

“COMPARATIVE STUDY OF BAJAJ ALLIANZ PRODUCT WITH OTHER PRIVATE INSURANCE

COMPANIES”

Submitted in the partial fulfillment for the requirements for the award of the degree of

MASTERS IN INTERNATIONAL BUSINESS (Affiliated To CCS University, Meerut)

Session : 2006-2008

Under the Internal Guidance of:

Mr. Sunil Kumar Faculty of MIB

SUBMITTED BY:Saurabh Vishnoi

ROLL NO.: 9356055MIB (2006-2008)

Institute of Management StudiesC-238, Bulandshahar G.T. Road, Lal Quan, P.B. No. 57,

Ghaziabad-201009

ACKNOWLEDGEMENT

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

directly or indirectly made this project possible.

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

many people.

I would like to thank Mr. Deepak Kumar (Senior Sales Manager) whose endeavor for

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

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

above all his modest effort.

I also take this opportunity to convey my heart felt thanks to Prof. Sunil Kumar

(Internal Guide) for his constant suggestion which have resulted in successful

completion of the project.

Saurabh VishnoiMIB-II Year

2

CONTENTS

1. Synopsis………………………………………………….. 4

2. Introduction………………………………………………. 6

3. Company Profile………………………………………….. 29

4. Objective of the study…………………………………….. 40

5. Research Methodology……………………………………. 42

6. Product knowledge………………………………………... 47

7. Comparison ………………………………………………. 59

8. Data Analysis ………………………………………...…… 63

9. Interpretation………………………………………………. 69

10. Conclusion ……………………………………………….. 71

11. Experience & Difficulties ……………………………….. 73

12. Suggestions and Recommendation ………………………. 75

13. Limitations ……………………………………………… . 79

14. Bibliography………………………………………………. 81

15. Appendixes ……………………………………………….. 83

3

SYNOPSIS

4

SYNOPSIS

TITLE OF THE PROJECT: Comparative study of BAJAJ ALLIANZ

Product with other insurance companies

NAME OF THE COMPANY: BAJAJ ALLIANZ LIFE INSURANCE CO.

OBJECTIVE BEHIND THE STUDY :-

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

RESEARCH METHODOLOGY:

The project is Descriptive in nature and requires use of both primary and secondary data.

Primary data : Database obtained by market survey ,QuestionnairesSecondary data : Database of existing customers with the company

Sample size : 100 Area Covered : Delhi and NCR

The data is obtained by using Questionnaire and Interviewing the Respondents.

External guide: Mr. Deepak Kumar (Senior Sales Manager)

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INTRODUCTIONINTRODUCTION

6

INTRODUCTION

What is Insurance :-

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

insurance company, against the payment of a premium.

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

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

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

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

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

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

amount of money on the happening of a certain event."

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

unexpected event. Insurance companies collect premiums to provide for this protection.

A loss is paid out of the premiums collected from the insuring public and the Insurance

Companies act as trustees to the amount collected.”

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

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

by which the losses suffered by a few are spread over many, exposed to similar risks.

Insurance is desired to safeguard oneself and one's family against possible losses on

account of risks and perils. It provides financial compensation for the losses suffered due

to the happening of any unforeseen events. By taking life insurance a person can have

peace of mind and need not worry about the financial consequences in case of any

untimely death..

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Principles of Life Insurance :-

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

from you to an insurance company. But only in terms of the financial consequences of

risk. Without insurance, if you car was damaged, it would cost you a lot of money to fix

it or to buy another one. It could cost you even more to pay for compensation to someone

else involved in an accident. Insurance protects your financial interests. 

Insurable Interest :-

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

what you are insuring

Indemnity :-

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

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

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

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

Contribution :-

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

from them both that would exceed the value of your loss. So each policy would

contribute a portion of the loss. You would receive the full value of the loss but no more

and the two policies would only bear part of it each.

Subrogation :-

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

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

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for it, subrogation gives them the legal right to 'stand in your shoes' and reclaim their

outlay from the responsible driver.

Utmost Good Faith :-

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

proposed, whether asked for or not.

History of Insurance :-

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

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

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

form of insurance, called respondent, evolved because the goods on board often were

used as collateral for a loan. The lender charged the borrower interest on the loan and

levied an additional sum, the premium, to cover the cost of the respondent contract. If the

ship reached its destination and returned, the merchant received payment for the goods

and in turn paid the moneylender. If the ship failed to return, the debt was cancelled. This

system was profitable to lenders because many respondent contracts were sold, and debts

were paid more often than cancelled.

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

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

assistance to family members who were injured or ill.

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

principal maritime powers. Those seeking marine insurance would post a list of their

cargo and voyages in a London coffee house owned by Edward Lloyd. Private investors

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

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

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

9

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

who write all types of insurance.

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

earliest references to insurance have been found in Babylonia, the Greeks and the

Romans. The use of insurance appeared in the account of North Italian merchant banks

who then dominated the international trade in Europe at that time. Marine insurance is the

oldest form of insurance followed by life insurance and fire insurance. The patterns that

have been used in England followed in other countries also in these kinds of insurance.

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

1347. In the year 1400, a book written by a merchant of Florence, indicates premium

rates charged for the shipments by sea from London to Pisa.

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

insurance. The first insurers of life were the marine insurance underwriters who started

issuing life insurance policies on the life of master and crew of the ship, and the

merchants. The early insurance contracts took the nature of policies for a short period

only. The underwriters issued annuities and pension for a fixed period or for life to

provide relief to widows on the death of their husbands. The first life insurance policy

was issued on 18th June 1583, on the life of William Gibbons for a period of 12 months.

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

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

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

riskier for coverage. The Bombay Mutual Life Insurance Society started its business in

1870. It was the first company to charge same premium for both Indian and non-Indian

lives. The Oriental Assurance Company was established in 1880. The first general

insurance company- Tital Insurance Company Limited was established in 1850. Till the

end of nineteenth century insurance business was almost entirely in the hands of overseas

companies.

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

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

and 30's sullied insurance business in India. By 1938 there were 176 insurance

companies. The first comprehensive legislation was introduced with the Insurance Act of

1938 that provided strict State Control over insurance business. The insurance business

grew at a faster pace after independence. Indian companies strengthened their hold on

this business but despite the growth that was witnessed, insurance remained an urban

phenomenon.

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

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

Nationalization was justified on the grounds that it would create much needed funds for

rapid industrialization. This was in conformity with the Government's chosen path of

State- led planning and development.

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

1972. Their operations were restricted to organized trade and industry in large cities. The

general insurance industry was nationalized in 1972. With this, nearly 107 insurers were

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

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

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

Corporation of India (GIC)

TYPES   OF     INSURANCE :-

General insurance:-

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

11

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

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

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

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

This is determined by the use of statistics and the information you disclose on your

application for insurance.

This includes :-

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

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

accidental loss with some exclusions.

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

well as damage to the other car or another person's property; "third party property" i.e. it

covers damage caused by your car to another person's property. This type of insurance

will not cover you for the cost of repairs to your own car; "third party fire and theft i.e. it

covers damage partly for damage caused by your car to another person's property, and

restricted cover for damage to your car cause by theft or fire.

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

amount of money, usually in monthly payments, in the event that you become disabled

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

medical trauma such as a heart attack.         

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

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

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

based and inclusive we can say that all the policies which do not fall  under  “Life

Insurance “ category fall under the General Insurance category.

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Life Insurance :-

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

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

for the future.

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

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

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

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

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

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

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

policies various accounts.

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

flexible than whole or variable life.

KINDS OF LIFE INSURANCE PRODUCTS :-

Term Life Insurance :-

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

protection for a period of time and only pays a benefit during that period. Since term life

insurance has no cash value, the amount of protection in this policy is equal to its death

benefit. There are three basic forms of term life insurance: level term, decreasing term,

and increasing term.

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Level Term Life Insurance :-

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

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

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

insurance policy would expire, and would pay out no benefits.

Decreasing Term Life Insurance :-

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

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

example, wound pay a Rs 200,000 benefit at the beginning of the policy. This amount

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

term.

Increasing Term Life Insurance :-

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

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

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

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

how your policy is set up, you could be paying much lower interest rates that you would

have normally qualified for.

Whole Life Insurance :-

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

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

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

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benefits remain constant throughout the policy's life. Unlike term life insurance, which

provides only death protection, whole life insurance combines insurance protection with

savings benefit.  The cash value of this type of insurance builds over the life of the

policy. This is because whole life insurance plans are given a certain guaranteed interest

rate. Another benefit of whole life insurance policies is that they are designed to mature

at the age of 100. The premium rate for a whole life insurance is based on the assumption

that the insured would be paying premiums until the age of 100. This means that at age

100, the cash value of the policy has come to the point when it equals the face amount of

the policy. At this point the policy has completely matured, no more premiums are

owned, and the policy is completely paid out to the policy owner.

Universal Life Insurance :-

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

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

the amount and frequency of premium payments and to adjust the benefit payout amount

up or down to reflect changes in needs.. Universal life insurance policies remain in force

as long as there enough cash value to pay the monthly mortality expenses, regardless of

whether or not the policy owner pays the premium.

OVERVIEW OF THE LIFE INSURANCE SECTOR IN INDIA :-

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

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

annually and presently is of the order of Rs 450 billion. Together with banking services,

it adds about 7 per cent to the country’s GDP.  Gross premium collection is nearly 2 per

cent of GDP and funds available with LIC for investments are 8 per cent of GDP.Yet,

nearly 80 per cent of Indian population is without life insurance cover, health insurance

and non-life insurance continue to be below international standards. And this part of the

population is also subject to weak social security and pension systems with hardly any

old age income security. This itself  is an indicator that growth potential for the insurance

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sector is immense. A well-developed and evolved insurance sector is needed for

economic development as it provides long term funds for infrastructure development and

at the same time strengthens the risk taking ability. It is estimated that over the next ten

years India would require investments of the order of one trillion US dollars. The

Insurance sector, to some extent, can enable investments in infrastructure development to

sustain economic growth of the country. With a large capital outlay and long gestation

periods, infrastructure projects are fraught with a multitude of risks throughout the

development, construction and operation stages. These include risks associated with

project implementation, including geological risks, maintenance, commercial and

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

commit funds to the sector, especially because the financing of most private projects is on

a limited or non- recourse basis.Insurance companies not only provide risk cover to

infrastructure projects, they also contribute long-term funds. In fact, insurance companies

are an ideal source of long term debt and equity for infrastructure projects. With long

term liability, they get a good asset- liability match by investing their funds in such

projects. IRDA regulations require insurance companies to invest not less than 15 percent

of their funds in infrastructure and social sectors. International Insurance companies also

invest their funds in such projects. Insurance is a federal subject in India. There are two

legislations that govern the sector- The Insurance Act- 1938 and the IRDA Act- 1999.

The Government of India liberalized the insurance sector in March 2000with the passage

of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry

restrictions for private players and allowing foreign players to enter the market with some

limits on direct foreign ownership. Under the current guidelines, there is a 26 percent

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

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

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

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

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

selling their insurance policies since 2001.

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INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

(IRDA) :–

 

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

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

has also been constituted.

Mission :-

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

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

DUTIES, POWERS AND FUNCTIONS OF AUTHORITY

AS per the INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT,

1999

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

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

growth of the insurance business and re-insurance business.

2. 14(2) without prejudice to the generality of the provisions contained in sub-

section (1), the powers and functions of the Authority shall include,--

a) Issue to the applicant a certificate of registration, renew, modify,

withdraw, suspend or cancel such registration;

b) Protection of the interests of the policy-holders in matters concerning

assigning of policy, nomination by policy-holders, insurable interest,

settlement of insurance claim, surrender value of policy and other terms

and conditions of contracts of insurance;

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

for intermediary or insurance intermediaries and agents;

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

e) promoting efficiency in the conduct of insurance business;

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f) promoting and regulating professional organization connected with the

insurance and re-insurance business;

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

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

enquiries and investigations including audit of the insurers, intermediaries,

insurance intermediaries and other organizations connected with the

insurance business;

i) control and regulation of the rates, advantages, terms and conditions that

may be offered by insurers in respect of general insurance business not so

controlled and of 1938 regulated by the Tariff Advisory committee under

section 64U of the Insurance Act, 1938;

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

maintained and statement of accounts shall be rendered by insurers and

other insurance intermediaries;

k) regulating investment of funds by insurance companies;

(l) regulating maintenance of margin of solvency;

l) adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

m) supervising the functioning of the Tariff Advisory committee;

n) supervising the percentage of premium income of the insurer to finance

schemes for promoting and regulating professional organization referred

to in clause (f);

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

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

p) exercising such other powers as may be prescribed.

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

the Indian Insurance industry really opened up

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FACTS AND STATISTICS :-

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

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

variable payment over a given period of time. Nevertheless, the sale of such life

insurance products as whole life and term life policies in particular remains an important

part of the business.

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

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

exchange for timely payment of premiums.

Why do you need Life Insurance –

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

life insurance helps replace lost income in the event of your premature death.

Here are some reasons people buy life insurance.    

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

the death of a wage earner.    

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

rent fund.    

To create a fund for children's education.

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

needs.    

SOME IMPORTANT CONCEPTS :-

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

monthly intervals.

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

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

valid assignment.

Bonus is the amount added to the basic sum assured under a with-profit life insurance

policy.

Claim Amount is  the amount payable by the insurer under a policy on a claim arising

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

age wherein the policy is commenced from a date earlier than the date of signing of

proposal form. However back dating is limited to one year

Deferred Annuity is an annuity plan where the first annuity payment becomes payable

after a chosen period that exceeds one year.

Deferment date is the date on which the deferment period ends

Deferment period is the period from the date of commencement of the policy to the date

of commencement of risk on the child's life under a Children's Deferred Endowment

EPDB

Extended Permanent Disability Benefit

Female lives

Category I: Women with income earned by

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

Non Medical Special Schemes.

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

agents of LIC.

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

holding sizeable personal properties/investments yielding income attracting assessment

for income tax.

First Class Life :-

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

normal rates of premium.

First Unpaid Premium (FUP) First unpaid premium refers to the first default in paying

premium by the policy holder. On payment of the due premium a receipt is issued and

this receipt indicates the date of next due. If this due premium is not paid that date

becomes the date of FUP.

Guaranteed Insurance Sum (GIS)

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

Jeevan Akshay Bonus.

Gross Insurance Value Element (GIVE)

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

Jeevan Dhara Policy.

 

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

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

is allowed only for each year for which premiums are paid.

Life Assured refers to the person whose life is being insured.

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Last Birth Day (L.B.D)

Age at last Birthday

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

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

his means.

Near Birth Day (N.B.D)

Age on nearest birthday

Nominee

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

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

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

discontinuation of the payment of premiums after paying the full premiums for the first

three years. 

Premium is the amount paid to secure an insurance policy.

Proposal Form

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

Proposer is a person who proposes the insurance policy.

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Premium Waiver Benefit (PWB) are the benefits which can be availed under children's

policies, wherein the future premiums payable upto vesting date are waived in the event

of death of the proposer.

Sum assured is the amount that an insurer agrees to pay on the occurance of an event.

Surrender value is the amount payable to the policy holder on his surrendering his right

under a policy and terminating the contract of insurance.

Term is the period for which insurance coverage is given.

Vesting Bonus

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

that is added to the sum assured under a policy.

Waiting Period

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

commencement of risk under a Jeevan Kishore Policy.

LIFE INSURANCE CORPORATION OF INDIA

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

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

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

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

Government Securities and the  balance is invested by LIC in the private sector

The central office of LIC is located at Mumbai. 

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

product, price, place (distribution channel) and promotion. The customer-driven market

will result in lot of flexibilities and innovations in product, pricing, distribution channels

and communication mechanisms. The IRDA, with its developmental and regulatory

guidelines, is likely to promote competition, fairness, and reliability, and, at the same

time, protect insurance against excessive,

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

managing their financial affairs. Today, while boundaries between various financial

products are blurring, people are increasingly looking not just at products, but at

integrated financial solutions that can offer stability of returns along with total protection.

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

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

offers total protection - Life, Health and Wealth. In terms of returns, insurance products

today offer competitive returns ranging from 7% to 9%. Besides returns, what really

increases the appeal of insurance is the benefit of life protection from insurance products

along with health cover benefits.

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

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

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

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

35 millions or 3.5% of the total population are insured).

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

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

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

of the possibilities and speculation.

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LIFE COVERAGE IN DIFFERENT COUNTRIES

Individual life insurance Coverage Index, 2005

Country (No. Of policies per 100 persons)

Indonesia 3.0

Philippines 6.6

India 25.4

Thailand 18.7

Malaysia 39.5

Hong Kong 74.4

South Korea 77.5

Taiwan 84.2

Singapore 112.6

LIFE INSURANCE COMPANIES :

S.NoNAME OF THE COMPANY NAME

OF

PRINCIPAL

OFFICER

NAME

OF APPOINTED

ACTUARY

 

TELEPHONE NO./FAX

No./E-MAIL & WEB

ADDRESS

1. Bajaj Allianz Life Insurance

Company Limited .

GE Plaza, Airport Road ,

YerawadaPune 411 006

  Mr. Sam

Ghosh

Mr. Andrew Wakeling Tel : 020-4026666

Fax : 020-4026789

. 

2. Birla Sun Life Insurance Co.

Ltd

6th Floor, Vaman Centre,

Nani B Javeri

Mr R DMohan

Mr. Kedar Mulgund Tel : 022 5678 3333

Fax: 022 5678 3232

 

25

Makhwana Road,

off Andheri-Kurla Road

Andheri(E) MUMBAI-400 059.

3. HDFC Standard Life Insurance

Co. Ltd

"Trade Star", 2nd floor, 'A'

Wing, Kondivita Road Junction

Andheri-Kurla Road Andheri

(East) Mumbai 400 059.

Mr.D.M .

Satwalekar

Mr. Nick Taket Tel : 022-822 2234/5551

6551

Fax: 022-2822 8844

 

4. ICICI Prudential Life Insurance

Co. Ltd

ICICI Prulife Towers , 1089,

Appasaheb Marathe Marg,

Prabhadevi,  Mumbai 400 025.

Ms. Shikha

Sharma

 

Mr. V. Rajagopalan Tel :022-56621996

Fax: 022-56622031

5. ING Vysya Life Insurance

Company Pvt. Ltd.

ING Vysya Home, 5th Floor,

#22 Mahatma gandhi Road

Mr. Frank

Koster

Ms. Hemamalini

Ramakrishnan

Tel : 080-25328000

Fax: 080-25559764

6. Life Insurance Corporation of

IndiaYogakshema, Jeeva Bima

Marg, Post B19953MUMBAI

400 021 ox

Shri A.K,

Shukla

Mr. Gorakh Nath

Agarwal

Tel 56598701;56598702

Fax: 22824386

E-Mail ;

chairman@licindia.com

7. Max New York Life Insurance

Co. Ltd

11th Floor, DLF Square,

Mr. Gary R.

Benett

Mr. John Charles

Poole

Tel : 0124-2561717

Fax: 0124-2561764

 

26

Jacaranda Marg, DLF City ,

Phase-II, GURGAON 122 002.

8. Met Life India Insurance

Company Pvt. Ltd.

Brigade Seshamahal, No. 5,

Vani Vilas Road,

Basavanagudi, BANGALORE-

560 004.

Mr. Venktesh

Mysore

Mr. K. P. Sharma Tel : 080-26438638

Fax: 080-26521970

Toll Free No. 1-600-44-

6969

9. Kotak Mahindra Old Mutual

Life Insurance Limited

6th Floor Penisula Chambers,

Penisula Corporate Park,

Ganpatrao Kadam Park

Lower Parel,

MUMBAI-400 013.

Mr. Gaurang

Shah

Mr. A.

Venkatasubramanian

Tel : 022-5663 5000

Fax:022-5663 5111

 

10. SBI Life Insurance Co. Ltd

Turner Morrison Building, 2nd

Floor, 16, Bank Street, Fort

Mumbai-400 023.

Mr. S.

Krishna murthy

Mr. I Sambasiva Rao Tel : 022-56392000

Fax: 022-56621471

 

11. Tata AIG Life Insurance

Company Limited

5th 7 6th Floor, Peninsula

Tower,  

Peninsula Corporate Park

Ganpatrao Kadam Marg, Lower

Parel,

MUMBAI 400 013.

Mr.Ian J.Watts Mr. Heerak Basu Tel : 022-56516000

Fax : 022-56550711

 

 

27

LIFE INSURANCE INDUSTRY IN THE YEAR 2000-2001 HAD 10

NEW ENTRANTS, NAMELY :-

S.No Registration

Number

Date of Reg. Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance

Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited .

8 114 02.08.2001 ING Vysya Life Insurance Company Private

Limited

9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

10 117 06.08.2001 Met life India Insurance Company Pvt. Ltd.

28

COMPANY

PROFILE

29

COMPANY PROFILE

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED

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

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

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

BAJAJ ALLIANZ LIFE INSURANCE :-

Is the fastest growing private life insurance company in India

Currently has over 4,40,000 satisfied customers

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

providing the finest customer service.

One of India's leading private life insurance companies

BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LIMITED :-

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto

Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and

strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development

Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General

Insurance business (including Health Insurance business) in India. The Company has an

authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining

26% is held by Allianz, AG, Germany.

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

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

30

maintained its leadership position by garnering a premium income of Rs.300 Crores.

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

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

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

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

interconnected with the Head Office at Pune.

In the first half of the current financial year, 2004-05, Bajaj Allianz garnered a premium

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

profits of Rs.20 Crores over the last year for the same period. In the financial year 2003-

04, the premium earned was Rs.480 Crores, which is a jump of 60% and the profit

zoomed by 125% to Rs. 21.6 Crores

VISION

To be the first choice insurer for customers

To be the preferred employer for staff in the insurance industry.

To be the number one insurer for creating shareholder value

MISSION

As a responsible, customer focused market leader, we will strive to understand the

insurance needs of the consumers and translate it into affordable products that deliver

value for money.

ALLIANZ GROUP

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

31

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost

174,000 employees. At the top of the international group is the holding company, Allianz

AG, with its head office in Munich.

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

comprehensive range of services in the areas of:

Property and Casualty Insurance,

Life and Health Insurance,

Asset Management and Banking.

EASY ACCESS AND REACH ACROSS THE COUNTRY –

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

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

country

ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE

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

3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. -

AUM of Rs.51,96,959 cr.

12th largest corporation in the world

49.8 % of global business from Life Insurance

Established in 1890, 110 yrs of Insurance expertise

70 countries, 173,750 employees worldwide

BAJAJ GROUP

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

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

world.

32

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

synonymous with quality & customer focus. 

A STRONG INDIAN BRAND- HAMARA BAJAJ

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

21 million+ vehicles on the roads across the globe 

Managing funds of over Rs 4000 cr.

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

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

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

option in terms of life insurance products.

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

following to offer - 

Financial strength and stability to support the Insurance Business. 

A strong brand-equity.

A good market reputation as a world class organization.

An extensive distribution network.

Adequate experience of running a large organization.

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

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

'Employee Benefit Solutions' (Group Term Life, EDLI, Gratuity, Superannuation,

Keyman Insurance and more); for the individual InvestGain (a unique life insurance plan

where sustenance of income is combined in the same plan that also pays a lump sum),

Cash Gain (Money Back), Child Gain (Children's plan), Risk Care (Pure Term), Lifetime

Care (whole life), Term Care (term with return of premium), Swarna Vishranti

(Retirement Plan), Protector (Mortgage term insurance plan), UnitGain (Unit Linked

Plan), UnitGain Single Premium, Unit Gain Plus, Unit Gain Plus SP, Lifelong Gain Plan,

Unit Gain Single Pension & Unit Gain Easy Pension Plans.

33

 LIC loses grip on market, share down to 71%

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

having a record breaking performance in 2005-05 has lost over seven per cent of its

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

2004-05.

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

insurance segment has emerged as the No 1 private sector life insurance company in 2005

-06 as per IRDA results, leading by Rs 78 crore in the new business. The total new

premium of the Bajaj Allianz Life Insurance is estimated at Rs 2715 crore.

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

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

216 % for the FY 05- 06.

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

share of 25.7% in the private sector life insurance sector. The total new premium of the

company is at Rs 2637 crore.

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

SL) for the year ended March 31, 2006 was Rs. 1,570 crores as compared to Rs. 687

crores in the previous year – a growth of 129%. New business premium income

amounted to Rs. 1,026 crores as compared to Rs. 486 crores last year. The cumulative

sum assured stood at Rs. 47,730 crores.

For the year ended March 31, 2006 reported a profit after tax of Rs. 4.41 crores as against

a loss of Rs. 7.98 crores in the previous year.

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

crores in the previous year. The total new premium of Reliance Life Insurance which

bought over the business of AMP Sanmar is estimated at Rs 193 crore. The Bajaj Allianz

34

General Insurance with a total new premium of around Rs 1500 crore is reported to have

made a profit of Rs 50 crore in 2005-06.

The ICICI Lombard with a new premium of over Rs 1500 crore in 2005-06.The private

sector life insurance industry has recorded a growth of 84 % in 2005-06.The Tata Aig has

posted a total new premium of Rs 463 crore while SBI Life has grown by Rs 828 crore

during the year. Aviva Life has increased its premium by Rs 407 crore while Birla

Sunlife has grown its premium by Rs 678 crore in 2005-06

WHY BAJAJ ALLIANZ ?

The Bajaj Allianz Difference

Business strategy aligned to clients' needs and trends in Indian and global

economy / industry

Internationally experienced core team, majority with local background

Fast, decentralised decision making

Long-term commitment to market and clients

TRUST

At Bajaj Allianz, we realise that you seek an insurer whom you can trust. Bajaj Auto

Limited is trusted name for over 55 years in the Indian market and Allianz AG has over

110 years of global experience in financial services.

UNDERWRITING PHILOSOPHY

Our underwriting philosophy focuses on :

Understanding the customer's needs

Underwriting what we understand

35

Meeting the customer's requirements

Ensuring optimal coverage at lowest cost

CLAIMS PHILOSOPHY

The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims

processing. We pride ourselves on a friendly and open approach. We are focused towards

providing you a hassle free and speedy claims processing.

OUR CLAIMS PHILOSOPHY IS TO :

Be flexible and settle fast

Ensure no claim file to be seen by more than 3 people

Check processes regularly against the global Allianz OPEX (Operational

Excellence) methodology

Sold over 1 million since inception.

CUSTOMER ORIENTATION :

At Bajaj Allianz, our guiding principles are customer service and client satisfaction. All

our efforts are directed towards understanding the culture, social environment and

individual insurance requirements - so that we can cater to all your varied needs.

EXPERIENCED AND EXPERT SERVICING TEAM :-

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

supported by the necessary international expertise required to analyse and assess them.

Superior Technology

36

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

established world class technology, with renowned insurance software, which

networks all our offices and intermediaries

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

products

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

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

UNIQUE FORMS OF RISK COVER

Special PA cover for Amaranth Yatris

Film insurance

Event management cover

Sports & Entertainment Insurance Package

RISK MANAGEMENT- OUR EXPERTISE :-

Our service methodology is tried, tested and Proven the world over and involves:

Risk identification: Inspections

Risk analysis: Portfolio review and gap analysis

Risk retention

Risk Transfer: To an insurer as well as reinsurer (as required)

Creation of need based products

Ongoing dialogue and proactivity

37

FOCUSED GROUP NETWORK

38

Bajaj Allianz Life Insurance

Agency Channel Bancassurance Group and Alternate Channel

Branches

Satellite Satellite Satellite

Standard Chartered Bank

Syndicate Bank

Centurion Bank

Cosmos Bank

Jankalyan Sahakari Bank

Jijamata Sahakari Co-op Bank

Group Employee Benefit

Corporate Agency

Franchisee

Brokers

ALLIANZ GROUP - GLOBAL BANC ASSURANCE EXPERIENCE :-

39

AsiaKoreaTaiwan

MalaysiaThailand

SouthAmericaBrasilChileMexico

CzechoslovakiaHungary

Hana BankGrand Commercial

Ta Chong BankTaipei Bank

Union BankAlliance BankBank of Ayudhya

BradescoBanco BiceBanCrecer

EuropeGermany

FranceItaly

SpainPortugalAustriaGreece

CroatiaBulgariaPoland

Dresdner BankHypo Vereins bankRaiffeisen bankCredit LyonnaisUnicredito ItalianoRolo BancaCasa di RisparmioBanco di SciciliaBanco Antoniana PopolareBanco Regionale EuropeaBanco PopularBPI-SGPSBawagErgo BankBank of PiraeusZagre backa BankBulbankPekao S.A.BPH

OBJECTIVE

40

OBJECTIVE OF THE STUDY

TO MAKE COMPARATIVE ANALYSIS OF COMPARATIVE STUDY OF

BAJAJ ALLIANZ PRODUCT WITH OTHER INSURANCE COMPANIES

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

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

Entry Age & Maturity date

Premium value & Term

Death Benefit

Surrender Benefit

Withdrawal

Switches

Allocation of Equities

41

RESEARCH

METHODOLOGY

42

RESEARCH METHODOLOGY

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

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

methods and procedures adopted in terminology work to carry out terminology research.

It is a way to systematically solve the research problem.

DESCRIPTIVE RESEARCH STUDY :-

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

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

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

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

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

and every market in Delhi and Ghaziabad. In planning and designing a specific research

project it is necessary to anticipate all the steps that must be under taken if the project is

to be successful in collecting valid & reliable information. If it were broken down into

very small parts or activities, the marketing research process would consist of a great no

of steps

Specifying research objectives.

Preparing a list of the needed information.

Designing the data collection project.

Selecting a sample type.

Determining a sample size.

Organizing and carrying out the fieldwork.

Analyzing the collected data and reporting the findings.

43

1. FORMULATION OF OBJECTIVE:

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

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

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

analyse the data of different companies in various prospectives :-

Purpose of study:

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

society.

2. DATA SOURCES

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

Sources and Secondary Data Sources. Primary Data Sources are collected

specifically for the purpose of research study, which is to be done, and secondary

data source are already collected data, with some other objective.

Primary Data Source:

Questionnaire:

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

people who are having the related information. Here the Questionnaire is

Structured. Close end Questionnaire with Dichotomous and Multiple Choice

Questions. Main aim is to compare the Customer Attitude and Loyalty towards

UNIT GAIN product of different companies.

44

Secondary Data Source :

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

REGULATORY &DEVELOPMENT AUTHORITY ),

External data :

Magazines like Business Standard, Books on insurence and journals .

3. SAMPLING PLAN

Sampling Unit (Who Is Being Surveyed)

All prospectives who are intresting in investment cum insurance.

Sampling Size (How Many People Should Be Surveyed)

100 customers in DELHI & NCR

Contact Method (How The Subject Should Be Contacted)

Cold calling, Personal Contract, Through Internet

4. PROCESSING AND ANALYZING THE DATA

Score aggregation method is used for analyzing the data and pictorial

representation of analysis is done through graphs

45

QUESIONAAIRE

1. NAME:

2. AGE :

3. PH.NUMBER MOB : RESIDENCE :

4. OCCUPATION :

5. ADDRESS:

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

a) Yes b) No

7. HAVE YOU TAKEN ANY LIFE INSURANCE POLICY ?

a) Yes b) No

IF YES BY WHAT AMOUNT?......................................

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

YOUR LIFE?

a) Yes b) No

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

INSURED?

a) Yes b) No

10. WHAT ARE YOUR FUTURE GOALS?

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

e) CAR

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

a) YES b) NO

46

PRODUCT

KNOWLEDGE

47

PRODUCT KNOWLEDGE

UNIT GAIN PLAN :-

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

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

investment funds with flexible investment management; you can change funds at any

time. You also benefit from attractive tax advantages and unmatched flexibility -to match

your changing needs. And the advantage of low fund management & fund administration

costs. This plan gives you the unmatched flexibility to match your needs.

Minimum sum assured: 5 times the annual premium

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

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

Y 125 105 75 55 30 20

Key Features:-

Guaranteed death benefit

Choise of 6 investment funds

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

Unmatched flexibility to match your changing needs

Birla Sun Life Insurance Company Limited :-

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

Life Financial, a leading international financial services organization. The Aditya Birla

48

Group is the second largest business house in India, with a turnover exceeding Rs 260

billion and an asset base in excess of Rs 180 billion.

Vision   :-

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

Mission   :-

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

insurance solutions through superior value creation and technology. 

Core Values   :-

operating with integrity to the very highest standards of business conduct. 

Always working with the customer's needs in mind. 

Relentlessly pursuing excellence through the people they employ and the work

they do. 

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

and build value for the shareholders.

 

UNIT-LINKED LIFE INSURANCE SOLUTIONS :-

The Best Of Both Worlds

Birla Sun Life Insurance was the first in India to introduce Unit-Linked Life Insurance

plans. A Unit-Linked plan is a coming together of security from Life Insurance and

earnings from investments. Which means, apart from securing your future, they offer

efficient returns. What's more, they're transparent, flexible and simple to understand.

49

WHAT IS THE PLAN ABOUT?

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

lifetime of security. While its compounding factor keeps adding on to your Investment

Fund, the flexibility allows you to withdraw money from the fund whenever you require

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

pension plan.

UNIQUE FEATURES : -

Lifelong Insurance cover till the age of 100 years.

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

switch between funds any time durinmg the policy tenure.*

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

portion of your policy.

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

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

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

Loan against your policy or surrender of the policy without penalty after 4 policy

years.@

Vary the Face Amount during the premium paying period depending on your Life

Insurance requirements .

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

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED :-

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

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

shared similar values and beliefs and a strong relationship quickly formed. Around this

50

time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship.

The next three years were filled with uncertainty, due to changes in government and

ongoing delays in getting the IRDA (Insurance Regulatory and Development authority)

Act passed in parliament. Despite this both companies remained firmly committed to the

venture.

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

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

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

HDFC Treasury department to advise them upon their investments in India.

THE HDFC UNIT LINKED ENDOWMENT PLAN GIVES YOU:

An outstanding investment opportunity by providing a choice of thoroughly

researched and selected investments

Valuable protection to your family in case you are not around

Flexible benefit combinations and payment options

Flexible additional benefit options such as critical illness cover

Access to your accumulated fund before maturity

Minimum premium :-

Rs 10000 per year (you can pay monthly, quarterly, halfyearly, annually mode)

KEY FEATURES :-

6 funds are there for allocating money

Top up of Rs.5000 is allowed

You can switch to one fund to other any time

51

Withdrawal can be made after three years

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

Benefits they are providing :

Death benefit

Critical illness benefit

Accidental benefit

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED :-

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

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

1500 Million. The Company is a joint venture of ICICI (74%) and Prudential plc UK

(26%).

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

business, by the Insurance Regulatory and Development Authority on November 24,

2000. It commenced commercial operations on December 19, 2000, becoming one of the

first few private sector players to enter the liberalized arena. 

Prudential plc:  

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

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

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

countries, and caters to the financial needs of over 10 million customers. It manages

assets of over US$ 259 billion (Rupees 11,39,600 crores approx.) as of December 31,

1999. Prudential plc. has had its presence in Asia for the past 75 years catering to over 1

million customers across 11 Asian countries. 

52

UNIT LINK PLAN :-

This plan gives you protection as well as investment option

Allocation under this plan:

Minimum 70% in Debt

Maximum 30% in Equity

Annual Premium:

Rs 8000 paid annually

Rs 4000 half yearly

Rs 667 monthly

KEY FEATURES:

Withdrawal after three years

BENEFITS:

1) Death benefit

2) Maturity benefit

3) Loan against policy

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

53

OM KOTAK MAHINDRA :-

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

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

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

innovative life insurance products, to make them financially independent. Jeene Ki

Azaadi...

Kotak Mahindra Finance Ltd   :-

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

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

to Mutual Funds, to Life Insurance, to Investment Banking, the company caters to the

financial needs of individuals and corporates.

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

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

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

services a customer base of over 5,00,000.

Old Mutual     :-

Old Mutual, a company with over 157 years of experience in life insurance business, has

the largest financial services business in South Africa, through its life assurance, asset

management, banking and general insurance operations. Being listed on the London

Stock Exchange and included in FTSE 100 list of companies, Old Mutual’s assets under

management are worth $208 billion (as on Dec 31st, 2001).

In the USA, Old Mutual is one of the top ten fixed annuity businesses, following its

purchase during 2001 of Fidelity & Guaranty Life Insurance Company, and its multi-

54

style asset management business offers an array of specialist asset management skills. In

the UK, Old Mutual focuses on wealth management. Gerrard, its largest UK operation, is

one of the leading private client stockbroking businesses in the country.

Old Mutual has made significant progress through, continued development of core

business and focused acquisitions. It has established a strong foundation, to build the

future business for customer and shareholder value.

The company has the ability to cater to a variety of consumer market segments, and

offers a comprehensive and innovative product range catering for all income groups.

INVESTMENT PLAN

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

market linked, tax-free returns

MINIMUM PREMIUM.:

Rs 10000 paid annually ,halfyearly, quarterly

KEY FEATURES:

Five funds for allocation

BENEFITS :

Maturity Benefit

Death Benefit

Switching:

Loan Facility

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

Permanent Disability Benefit

Critical Illness Benefit

55

MARKET SHARE

Life Insurance Market Share 2004-05 2005-06

LIC 87.7 71.04

Pvt. Players 12.3 28.96

growth in market share of private players

87.7

71.04

12.3

28.96

01020

3040506070

8090

100

2004-05 2005-06

years

m a

r k

e t

s h

a r

e (%

)

LIC

Pvt. Players

56

COMPANIES MARKET SHARE (%)

Bajaj Allianz 26.5

ICICI Pru 25.7

HDFC 10.04

SBI life 8.09

Birla SunLife 6.61

Tata AIG 4.51

Max New York 4.3

Aviva 4

Kotak Mahindra 3.88

others 6.37

Bajaj Allianz No. 1 among Private life insurance companies

8.096.61

4.51 4.3 4 3.886.37

10.04

25.726.5

0

5

10

15

20

25

30

Baja

jA

llia

nz

ICIC

I P

ru

HD

FC

sb

i li

fe

Bir

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un

Lif

e

Tata

AIG

Max N

ew

Yo

rk

Aviv

a

Ko

tak

Mah

ind

ra

oth

ers

Sh

are

in

%

57

MARKET SHARE Bajaj Allianz

ICICI Pru

HDFC

SBI life

Birla SunLife

Tata AIG

Max New York

Aviva

Kotak Mahindra

others

58

COMPARISION

59

COMPARISION

Particular BAJAJ

ALLIANZ

BIRLA

SUNLIFEHDFC LIFE KOTAK LIFE ICICI PRU

Entry Age Min-0

Max-60 yrs Min- 30 days;

Max- 65 years

Min- 18;

Max- 60

years

Min - 18

Max - 65 years

Min- 0 days;

Max- 60 years

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

Premium Term

MINIMUM

PREMIUM

(RS)

yearly

Quarterly,

Half yearly,

Annually ,Sin

gle Premium

Rs 10000

Single Pay

No min.

premium.

Quarterly,

Half yearly,

Annually

RS.10000

Quarterly, Half

yearly,

Annually ,Sing

le Premium

Rs 10000

yearly

RS 18000

60

Equity-max 30%,

Debt-min 70%

Equity-65% to 100%,

Debt-0 to 35%

Equity-60%,

Debt-40%

1)Conversion plan-25% equity,75% debt

2)Moderateplan-51%eq,49 dbt

3)Aggressiveplan-75%eq,25dbt

1)Equity Fund-90%equity,10% cash

2)Equity Gain-85% equity,15% cash

3)Debt Fund-full in debt

Allocation in Equities

either the death benefit chosen or the value of the units.

maximum of Rs.10 lakhs).

Pay greater of your sum assured less withdrawals you made total fund value

Policy Fund less all withdrawals where age at death is below 72 years.

premature death- sum assured less withdrawals or bid price of units,

Death Benefit

Maxi miser ,Protector , Balancer , Preserver

Guaranteed Money market Fund, Guaranteed Gilt Fund, Guaranteed Bond Fund,

Liquid fund, secure managed fund ,Defensive fund, Equity managed fund.

Assure, Protector, Builder, Enhancer, Creator, and Magnifier.

Equity Fund, Equity Gain Fund, Equity Midcap Fund .Debt Fund, Balanced Fund, Cash Fund

Investment Fund Options

ICICI PRUKOTAK LIFEHDFC LIFEBIRLA

SUNLIFEBAJAJ

ALLIANZ Particular

61

4 free switches allowed in a year

Depending on your appetite for risk or your expectations of returns.

Two in a year.In a year two

switches are free.

3 free switches allowed in a year

Switch between Investment Funds

After 3 yrs premium u can withdraw money through partially or fully

In the 4th to the 10th year, you can withdraw amounts by complete or partial surrender of units, by paying a surrender charge of 2.5% of the amount withdrawn.

After 3 years minimum withdrawlRs.10000.

Partial withdrawals anytime after the third policy year.minimum

withdrawal Rs.10,000 maximum withdrawal Rs.25,000

After 3 yrs premium u can withdraw money

Withdrawal Benefits

After 3 yrs surrender value is 100% of total value of investment.

Section 80C, 10(10D) of Income Tax Act would apply

Under sec.80(c) tax relief benefits are there,under10(10D)tax free bennfits..

Guaranteed additions at the end of policy years 10, 15, 20 and so on.

tax relief benefitssec 80(C),Hospital

Cash Benefit(sec80 D),Deathbenefit or withdrawals are tax free(sec 10(10) D) of income tax

Guaranteed Benefits

No Maturity datepure risk cover plan, no maturity benefits.

Value of accumulative fund

Policy FundPolicy fund

On Maturity

After 3 yrs premium u can withdraw money

Anytime after the first year, you can withdraw your money

After 3 yrs premium u can withdraw money

Policy fund less surrender charges

After 3 yrs premium u can withdraw money

Surrender Benefits

ICICI PRUKOTAK LIFEHDFC LIFEBIRLA

SUNLIFEBAJAJ

ALLIANZ Particular

62

DATA

ANALYSIS

63

DATA ANALYSIS

From the data collected by me on different insurance companies we can analyse the

position of different companies as fellows:

RETURN WISE RANKING :-

If we see from the point of view of returns on different fund option of different

companies then we can find the fellowing data:

INSURANCE

COMPANIES

FUND OPTION RETURNS (%)

ICICI PRU MAXIMISER 30.70

PENSION MAXIMISER 35.79

TATA AIG AIG GROWTH 19.70

AIG EQUITY 30.91

BAJAJ ALLIANZ EQUITY PLUS 48.16

EQUITY MIDCAP PLUS 38.25

HDFC STD. GROWTH FUND 23.48

BALANCED FUND 13.55

BIRLA SUN LIFE MAGNIFIER 25.26

ENHANCER 19.70

KOTAK LIFE AGGRESSIVE GROWTH

FUND

30.77

GROWTH FUND 28.25

64

If we see from the point of view of returns the we can say that BAJAJ ALLIANZ is at the

top with 48.16 % of return in its Equity Plus Fund .

RETURNS CHART

0

10

20

30

40

50

60

NAME OF COMPANIES

RE

TU

RN

IN

%

ICICI PRU

TATA AIG

BAJAJALLIANZHDFC STD.

BIRLA SUNLIFEKOTAK LIFE

65

66

GROWTH

THE OTHER COMPARISION IS ON THE BASIC OF GROWTH OF DIFFERENT

FUNDS OF A PARTICULAR COMPANY:

PRIVATE LIFE

PLAYERS

MARKET SHARE

(%)

PREMIUM

INCOME

(Rs crore)

GROWTH

(%)

BAJAJ ALLIANZ 26.49 2,715 216

ICICI PRUDENTIAL

LIFE 25.72 2,637 66

HDFC STANDARD

LIFE 10.04 1,028 111

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

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

cent. ICICI Prudential on the other hand garnered premium of Rs 2,637 crore and holds a

market share of 7.35 per cent. The other private player that registered significant growth

in the fiscal 2005-06 was HDFC Standard Life. The company's new business has grown

67

by 112 per cent to Rs 1,029 crore. The market share of HDFC Standard Life has jumped

from 1.92 per cent in 04-05 to 2.97per cent in 05-06. Of the total pie, individual regular

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

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

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

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

crore.

NET PROFIT

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

share of HDFC Standard Life has jumped from 1.92 per cent in 04-05 to 2.97per cent in

05-06. Of the total pie, individual regular premium policies contributed 55 per cent at Rs

19,889 crore. Individual single premium policies were 31 per cent of the total portfolio at

Rs 10,999 crore. Individual policies have registered an overall growth of 39 per cent

against the previous year. Despite the FBT on group superannuation, business registered

a growth of 14 per cent to Rs 5,009 crore.

GROWTH IN PROFIT OF DIFFERENT INSURANCE COMPANIES

S.NO NAME OF THE COMPANY GROWTH IN %

1 BAJAJ ALIANZ 112

2. ICICI PRU 64

3. HDFC 29

4. BIRLA SUN LIFE 26

5. KOTAK LIFE 39

6. TATA AIG 19

7. MAX NEW LIFE 14

68

GROWTH IN PROFIT

BAJAJ ALIANZ36%

ICICI PRU21%HDFC

10%

BIRLA SUN LIFE9%

KOTAK LIFE13%

TATA AIG6%

MAX NEW LIFE

5%

69

INTERPRETATION

70

INTERPRETATION

DATA INTERPRETATION :-

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

No of clients visited are 100 in the region of Delhi and Ghaziabad.

Most of the believes in LIC they donot want to take any other policy,but some have now

different view towards it –

Maximum no of peoples are of, North Delhi region i.e. in Sanjay Gandhi

Transport Nagar market.

BAJAJ ALLIANZ is very committed towards its commitment fulfillment.

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

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

the existing customers and area like South EX, ROHINI

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

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

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

promotion campaign and regular visits to all the customer of Delhi, Ghaziabad. In

the market where there is cutthroat competition without a good promotional

campaign no company can survive. So in our survey we found it’s the biggest

weakness of BAJAJ ALLIANZ

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

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

various funds.

71

CONCLUSION

72

CONCLUSION

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

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

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

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

I analyze the Unit Gain plan of every company , by analyzing it we can find that BAJAJ

ALLIANZ I no.1 among all the existing pvt. Insurance companies but ICICI Pru is also

giving us a tough competition.

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

its customer care service to stay ahead from its competitiors. This project gives me idea

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

insurance business. This project give us an overview of all leading life insurance co.

along with their Unit Gain Plans.

73

EXPERIENCE

&

DIFFICULTIES

74

EXPERIENCE & DIFFICULTIES

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

know that there is no specific timing. If you can achieve the target you can do any

thing with the rest time.

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

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

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

humorous face and ready to what ever be the target can do well. It’s easy for the

people who are +ve in their attitude.

Doing the field work at 43-45 degree centigrade was bit difficult for me.

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

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

75

SUGGESTIONS

AND

RECOMMENDATIONS

76

SUGGESTIONS & RECOMMENDATION

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

media world. It should go to tie ups with some nationalized banks so that

peoples can make trust on it.

It should concentrate corporate tie-ups to capture mass.

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

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

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

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

coupons or scheme, etc.

Company should go for relation building exercise with their agents and

customers. .

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

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

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

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

Always take the where about of existing customers

If the company will start ROAD SHOWS that can give the company a compettive

edge and a better promotion.

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

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

defect arises.

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

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

77

PROMOTIONAL STRATEGIES

Press publicity:

Paper inserts

Advertisements in newspaper (local and national).

Interest cards distribution

Mailers/personal invitations to selective section of the society

Leaflets

Outdoor publicity:

Banners in commercial areas and prime sites.

Air balloons at shopping complex.

Bus stands shelters.

Advertisements on Dividers and Railings.

Media:

Local channel advertisement (cable TV scrolls)

Advertisements in news channels and business channels

Face to face:

Personal interaction of marketing executives through

78

Meetings

Detailing about schemes and updating them from time to time

Event sponsoring in local clubs and social gathering

Road shows

Contacting senior citizens in parks in morning and evening.

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

of interest cards.

79

LIMITATIONS

80

LIMITATIONS

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

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

project analysis.

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

ready to share any information with us.

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

view.

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

not able to compare all the companies that are why we have taken few companies

only.

81

BIBLIOGRAPHY

82

BIBLIOGRAPHY

WEBSITES : -

Irdaonline.com

Bima online.com

Insurance finder.com

Economic times.com

Bajaj allianz.co.in

www.google.co.in

83

APPENDIXES

84

APPENDIXES

NEWS ARTICLES

 

                                     

Bajaj Allianz Life No.1 with Rs 100 cr Lead!! with 467% growth.

Bajaj Allianz life Insurance registers Rs 351.23 crore of business for month of

December, highest amongst all private life insurance cos., with growth of over

467% over last year.

Lead of Rs 100 cr over nearest competitor in the pvt. sector Life Insurance cos.

for the month of December.

Market share of over 32%.

Bajaj Allianz Life Insurance takes rank 1 for last 6 months( Jul-Dec 05) new

business.

January- 2006, Mumbai: Bajaj Allianz Life Insurance has done it once again. It has

firmly established its number one position among the private life insurers with 32%

market share & 467% growth as per the latest IRDA results for the month of December

2005.

Bajaj Allianz Life Insurance the fastest growing life insurance company with 301%

growth for the FY (Apr-Dec 05) has raced towards the No. 1 rank in the industry for the

85

month of December as well last 6 months (Jul-Dec05) as per the December IRDA results

in terms of new business premium income among private life insurers.

Sam Ghosh, Country Manager, Allianz & Chief Executive Officer, Bajaj Allianz Life

Insurance Company stated, “For the last six months new business we have the number

one position as per the IRDA results. This is a clear reinforcement of our belief in

decentralized management practices and also to our constant endeavor of introducing

wide array of customized insurance solutions that cater to all possible segments of

customers. We are clearly poised for an accelerated growth in the market and are already

the fastest growing life insurance company in India”

Salient features of the IRDA results for December 2005 are:

Dec 2005 Result as per IRDA

Rs 351.2 cr new business for Dec 2005, a growth of over 467.3 %. New Business

in Dec 2004 was Rs 61.9 cr.

Market Share Amongst pvt sector cos. in Dec 2005 is 32 % where as in Dec 2004

it was 12.2 %

Business for last 6 months (Jul-Dec) as per IRDA results :

Bajaj Allianz Life takes rank 1 amongst pvt sector life insurance cos. for the last 6

months with total new business of Rs 1181 cr. The 2 nd ranked pvt. sector Life Insurance

co. did Rs 1095 cr new business sin the same period.

Bajaj Allianz Life takes number one position.

IRDA results September 2005 positions Bajaj Allianz at No 1

Bajaj Allianz life Insurance market share amongst pvt sector life cos. jumps to

28.6 % with 360% growth in month of Sept 05 - highest amongst all life insurance

cos.

86

Bajaj Allianz Life Insurance Company has moved up to the number one position among

the private life insurers as per the latest IRDA results for the month of September. This

accreditation from the IRDA is reinforcement to our decentralized management practices

and to the wide array of services/ plans that we have on offer. Bajaj Allianz is poised for

an accelerated growth in the market and has already become the fastest growing private

life insurance company in India for more then a year.

87