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ASUMMER TRAINING REPORT
ON
BAJAJ ALLIANZ
Jagadhri
Submitted to:KURUKSHETRA UNIVERSITY,
KURUKSHETRA
IN THE PARTIAL FULFILLMENT FOR THE REQUIREMENT
OF MASTER OF BUSINESS ADMINISTRATION
DEGREE(SESSION 2004-2005)
Under Guidance Of : Submitted By: Mr. Ashish Sharma (STM) Tapas Dhiman(Bajaj Allianz) M.B.A. (F)
Univ. R. No.______
Maharaja Agrasen Institute of Management & Technology (MAIMT) (Approved by AICTE &Affiliated to Kurukshetra University, Kurukshetra)
Jagadhri
CONTENTS
S. No. Title
1. INTRODUCTION TO LIFE INSURANCE WHY NEEDED
2. COMPANY PROFILE BAJAJ GROUP ALLIANZ GROUP BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD.
3. GENERAL PRODUCT PROFILE
4. OBJECTIVE OF THE STUDY
5. RESEARCH METHODOLOGY
A. RESEARCH DESIGN SCOPE OF STUDY OBJECTIVE OF STUDY
B. DATA COLLECTION DATA COLLECTION METHOD DATA COLLECTION TECHNIQUES DATA COLLECTION INSTRUMENTS
C. SAMPLING DESIGN SAMPLING UNIT SAMPLING SIZE SAMPLING TECHNIQUES
6. ANALYSIS AND INTERPRETATIONS
7. FINDINGS
8. SWOT Analysis
9. LIMITATIONS
10. SUGGESTIONS
11. CONCLUSION
ANNEXURE
QUESTIONNAIRE
BIBLIOGRAPHY
ACKNOWLEDGEMENT
Our experience at BAJAJ ALLIANZ was like a ride to another world.
We were overwhelmed with the support and information provided
to us by BAJAJ ALLIANZ.
To start with, we would like to thank Mr. Sunny Goel, Sales
Manager, BAJAJ ALLIANZ for his able and inspiring guidance
throughout the course of this report has helped us to bring this
work to its present form.
I owe a great deal of gratitude and sincere thanks to Mr.
M. L. Bansal (Director) for helping us in every possible way and
providing us crystal and critical approach to take right decisions
at each phase of execution of project.
Further, we would like to thank all the staff members of BAJAJ
ALLIANZ, who provided us cooperation in collecting the data and
requested the concerned authorities to extend their help for the
completion of the project. The project was also enriched by their
valuable suggestions.
Jabir HasanMBA
PREFACE
“PRACTICAL TRAINING IS FAR BETTER THAN ROOM
TEACHING”
Practical training gives a feel of the actual difficulties faced
during the work. As part of our summer training, we got an
opportunity to work with BAJAJ ALLIANZ.
Life Insurance is a mile stone in growth to the social life of the
countrymen. For millions of India’s working families, may owning
a home have a dream to buy a Insurance Policy to secure their
and their children future. Our nation’s greatest opportunity now is
the chance to build a better life for our people. Recognizing this,
the insurance sector has now been regarded as a potent engine
of economic growth.
The government had outlined a substantive and detailed plan,
seen first in the policy of insurance plans, to reach this goal.
Many incentives announced in the Union Budget every year have
helped to improve the affordability enormously over the past
couple of years.
All this has led to an enormous increase in the demand for Life
Insurance and thus, in the banks/ institutions providing this
finance. The present scenario has led to the steady evolution of
especially Life Insurance with different return plans for different
age group of people.
OBJECTIVE OF THE STUDY
To view the whole system of Bajaj Allianz Insurance in
terms of origin, growth and rationale.
To explore various schemes offered by Bajaj Allianz.
To evaluate the operational efficiency of Bajaj Allianz in
their products.
To study qualities of Financial Consultant.
Is the Consultant do the best to satisfy respondent.
To study the most popular schemes of the Bajaj Allianz
adopted by the respondents.
Whether the respondent is aware of Bajaj Allianz and it
Plans.
Which is the most commonly accepted plan.
What are the criteria of Respondent in respect to Start with
a Plan.
Is the respondent is satisfied with Company Plans.
BAJAJ GROUP
The Bajaj group is amongst the top 10 business houses in India.
its footprint stretches over a wide range of industries, spanning
automobiles (two-wheelers and three-wheelers), home
appliances, lighting, iron and steel, insurance, travel and finance.
The group’s flagship company, Bajaj Auto, is ranked as the
world’s fourth largest two and three-wheeler manufacturer and
the Bajaj brand is well-known in over a dozen countries in Europe,
Latin America, the US and Asia.
The present Chairman and Managing Director of the group,
Rahul Bajaj, took charge of the business in 1965. Under his
leadership, the turnover of the Bajaj Auto the flagship company
has gone up from Rs. 72 million to Rs. 46.16 billion (USD 936
million), its product portfolio has expanded from one to and the
brand has found a global market.
MILESTONES
2004January Bajaj unveils new brand identity, dons new symbol,
logo and brandline
2003October Pulsar DTS-I is launched.
October 107, 115 Motorcycles sold in a month.
2001November Bajan Auto launches its latest offering in the
premium bike segment ‘Pulsar’.
January The Eliminator is launched.
1999Caliber motorcycle notches up 100,000 sales in record time
of 12 months. Production commences at Chakan plan.
1997The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw
are introduced.
1995the Bajaj Super Excel is introduced while Bajaj celebrates its
ten millionth vehicle.
One million vehicles were produced and sold in this financial
year.
1994The Bajaj Classic is introduced.
1991The Kawasaki Bajaj 4S Champion is introduced.
1990The Bajaj Sunny is introduced.
GROUP COMPANIES
Bajaj Auto is the flagship of the Bajaj group of companies. The
group comprises of 27 companies and was founded in the year
1926. The companies in the group are:
Bajaj Auto Ltd. Mukand International Ltd.
Mukand Ltd. Mukand Engineers Ltd.
Bajaj Electricals Ltd. Mukand Global Finance Ltd.
Bajaj Hindustan Ltd. Bachhraj Factories Pvt. Ltd.
Maharashtra Scooters Ltd. Bajaj Consumer Care Ltd.
Bajaj Auto Finance Ltd. Bajaj Auto Holdings Ltd.
Hercules Hoists Ltd. Jamnalal Sons Pvt., Ltd.
Bajaj Sevashram Pvt. Ltd. Bachhraj & Company Pvt. Ltd.
Hind Lamps Ltd. Jeevan Ltd.
Bajaj Ventures Ltd. The Hindustan Housing Co. Ltd.
Bajaj International Pvt.Ltd. Baroda Industries Pvt. Ltd.
Hind Musafir Agency Pvt. Ltd. Stainless India Ltd.
Bajaj Allianz General Insurance Company Ltd.
Bombay Forgings Ltd.
Allianz Bajaj Life Insurance Company Ltd.
MANAGEMENT PROFILE
Rahul Bajaj Chairman and Managing Director
Madhur Bajaj Vice Chairman
R.A. Jain Executive Director
D.S. Mehta Wholetime Director
Rajiv Bajaj Joint Managing Director
Sanjiv Bajaj Executive Director
Ranjit Gupta Vice President (Insurance)
N.H. Hingorani Vice President (Materials)
P.B. Menon Vice President (Projects)
R.L. Ravichandran Vice President
(Business Development & Marketing)
C.P. Tripathi Vice President (Operations)
J. Sridhar Company Secretary
AWARDS
PRODUCT AWARD YEAR BY
Bajaj Auto – Bike Maker of the Year 2004 2004 ICICI Bank
OVERDRIVE Awards 2004
Bajaj Pulsar DTS-I Bike of the Year 2004 2004 ICICI Bank
OVERDRIVE Awards 2004
Bajaj Pulsar 180 DTS-I BBC World Wheels Viewers Choice Two
Wheeler of Year 2003 2003 BBC World Wheels Award 2003
Bajaj Pulsar – Bike of the Year 2003 ICICI Bank OVERDRIVE
Awards 2003
Bajaj Eliminator – Bike of the Year 2002 OVERDRIVE Awards
Certificate of Merit 1995-96 Government of India, Ministry of
Commerce
SAFETY AWARD YEAR BY
Meritorious Performance in Industrial safety for three consecutive
years 2001 National Safety Council
Certificate of Excellence 2001 National Safety Council
ALLIANZ GROUP
HISTORY OF ALLIANZ
Documenting and researching its corporate history is part and
parcel of the corporate culture of Allianz AG.
The Allianz Center for Corporate History devotes itself to
these tasks. As a frequently used information center, it has
evolved into the company’s “living memory”.
ALLIANZ DURING THE NAZI ERA
Allianz assumes responsibility for its own history. That’s why
it has commissioned the research of its historical development
during the Nazi period and how it handled victims’ life insurance
policies.
TIMELINE
More than 100 years of eventful history: Allianz’s most
important development steps from the end of the 19th through to
the 21st century.
ALLIANZ GROUP’S WORLD WIDE PRESENCE
1. Allianz is one of the leading global insurance companies.
2. Headquartered in Munich (Germany) established in 1890.
3. With over 700 subsidiaries and aprox. 119,000 employees
worldwide.
4. Allianz global network extends to over 70 countries.
Europe
South and North Americas
Africa
Middle East
Asia Pacific
5. Allianz shares are offered at the 5 leading international stock
exchanges.
Frankfurt
London
Paris
Zurich
New York
ALLIANZ GROUP’S CUSTOMER SNAPSHOT
1. Serves approx. 60 Million Clients around the world.
2. Allianz provides some form of insurance coverage to almost
half of the Fortune 500 Companies.
3. Testament of our worldwide presence, almost 70% of sales are
generated outside Germany.
4. Core Business
General Insurance
Life Insurance
Health Insurance
Asset Management
BAJAJ ALLIANZ LIFE INSURANCE COMPANY
Bajaj Allianz Life Insurance Co. Ltd. company is a joint venture
between Allianz AG and Bajaj Auto Limited. Characterized by
global presence with a local focus and driven by customer
orientation to establish high earnings potential and financial
strength, Bajaj Allianz Life Insurance Co. Ltd. was incorporated on
12th March 2001. The company received the Insurance Regulatory
and Development (IRDA) Certificate of Registration (R3) No. 116
on 3rd August 2001 to conduct Life Insurance business in India.
ABOUT US
Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two
leading conglomerates – Allianz AG, one of the world’s largest
insurance companies, and Bajaj Auto, one of the biggest 2 and 3
wheeler manufacturers in the world.
BAJAJ ALLIANZ LIFE INSURANCE
Is the fastest growing private life insurance company in India
Currently has over 3,00,000 satisfied customers
Is backed by a network of 68 Customer Care Centers spanning
55 locations across the country.
One of India’s leading private life insurance companies.
IRDA CERTIFICATE
Bajaj Allianz Life Insurance Co. Ltd. was granted renewal of IRDA
Certification on February 10, 2003…
SHARED VISION
A household name in India teams up with a global
canglomerate… Bajaj Auto Ltd., the flagship company of the Rs.
8000 crore Bajaj group is the largest manufacturer of two-
wheelers and three-wheelers in India and one of the largest in the
world.
A household name in India, Bajaj Auto has a strong brand
image & brand loyalty synonymous with quality & customer
focus. With over 15,000 employee, the company is a Rs. 4000
crore auto giant, is the largest 2/3-wheeler manufacturer in India
and the 4th largest in the world. As a promoter of Allianz Bajaj Life
Insurance Co. Ltd., Bajaj Auto has the following to offer :-
Financial strength and stability to support the Insurance
Business.
A strong brand-equity
A good market reputation as a world class organization.
An extensive distribution network.
Adequate experience of running a large organization.
A 10 million strong base of retail customers using Bajaj
products.
Advanced Information Technology in extensive use.
ALLIANZ GROUP
Allianz Group is one of the world’s leading insures and financial
services providers. Founded in 1890 in Berlin, Allianz is now
present in over 70 countries with almost 174,000 employees. At
the top of the international group is the holding company, Allianz
AG, with its head office in Munich.
Allianz Group provides its more than 60 million customers
worldwide with a comprehensive range of services in the areas of
Property and Casualty Insurance,
Life and Health Insurance,
Asset Management and Banking.
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 years of Insurance experti
BAJAJ GROUP
Bajaj Auto Ltd., the flagship company of the Rs. 8000 crore
Bajaj group is the largest manufacturer of two-wheelers and
three-wheelers in India and one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand
image & brand loyalty synonymous with quality & customer
focus.
A STRONG INDIAN BRAND – HAMARA BAJAJ
One of the largest 2 & 3 wheeler manufacturer in the world
21 million+vehicles on the roads across the globe
Managing funds of over Rs. 4000 cr.
Bajaj Auto finance one of the largest auto finance cos. In
India
Rs. 4,744 Cr, Turnover & Profits of 538 Cr. In 2002-03
It has joined hands with Allianz to provide the Indian
consumers with a distinct option in terms of life insurance
products.
As a promotor of Allianz Bajaj 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.
CEOCEO
Zonal ManagerZonal Manager
Regional ManagerRegional Manager
Branch ManagerBranch Manager
Assistant Brach ManagerAssistant Brach Manager
Sales Team ManagerSales Team Manager
Insurance Care Consultant Insurance Care Consultant
WHY LIFE INSURANCE
Life Insurance has come a long way from the earlier days when it was
originally conceived as a risk covering 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 life insurance remains an important element,
namely providing for replacement of income on death etc.
b) Regular Savings:
Providing for one's family and oneself, as a medium to long term
exercise (through a series of regular payment of premiums). This has
become more relevant in recent times as people seek financial
independence for their family.
c) Investment:
Put simply, the building up of savings while safeguarding it from the
ravages of inflation. Unlike regular saving products, investment
products are traditionally lump sum 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 one's old
age.
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
Why BAJAJ ALLIANZ?
There are many reasons why you should choose BAJAJ ALLIANZ LIFE
INSURANCE COMPANY LTD. as your partner in meeting your insurance
needs :
a) Innovative products to meet your needs.
b) Efficient customer service team.
c) Good financial track record of – BAJAJ ALLIANZ.
d) Certified Financial Consultants to advise you.
e) Professional approach in managing your investments.
f) Income Tax benefits for our insurance products.
In case want to know how our products meet insurance needs,
call on 9622 777 777 in Agra, Ahmedabad, Ajmer, Allahabad, Ambala
Amravati, Amritsar, Asansol, Bangalore, Bhopal, Bhubaneswar,
Chandigarh, Chennai, Coimbatore, Delhi, Durgapur, Faridabad,
Hyderabad, Indore, Jaipur, Jalandhar, Kanpur, Kochi, Kolkata, Lucknow,
Ludhiana, Mangalore, Meerut, Mumbai, Madurai , Nagpur, Nashik,
Panjim, Patiala, Pune, Rajkot, Salem, Surat,Thane, Vadodara,
Vijayawada and Vishakapatnam to meet one of our Certified Financial
consultant.
RESPECTIVE MAJOR PRODUCTS COMMON WITH OTHER COMPANIES
Each of us leads a unique life and so has unique needs. BAJAJ ALLIANZ
offers a range of products and invites you to choose the
one that suits you best.
Plan Benefits
Savings Plans
Endowment Assurance Plan Life Insurance with Savings
Unit Linked Endowment Plan Life Insurance & Savings with
choice of investment funds
Children’s/Child Gain Plan Financial Security for your child
Money Back/Cash Gain Plan Life Insurance with Savings
Investment Plans
Investment Gain
Protection Plans
Term Assurance/Care Plan Life Insurance at an affordable
price
Loan cover term assurance plan
Retirement plans
Personal Pension Plan Savings for retirement
Unit Linked Pension Plan Retirement Savings with a choice
of investment funds
SAVING PLANEndowment Assurance Plan :
What is an Endowment Assurance Plan ?
It is a participating (with profits) insurance plan that offers the
following features:
Provides financial support to the family by way of a lumpsum payment
in case of the unfortunate death of the life assured within the term of
the policy.
Provides a lumpsum payment to the life assured on survival up to
maturity.
The lumpsum mentioned is the basic sum assured plus any bonus
additions.
Benefits
This plan is a with profits saving plan and is well suited for saving
money for your long term financial goals. This plan also helps provide
for the needs of your family in your absence by paying out a lumpsum
in the event of your unfortunate death during the term of the policy.
What optional benefits are available with this plan?
You can add the following optional benefits to customise your policy to
suit your needs:
Critical Illness (CI) Benefit provides an amount, equal to the sum
assured chosen under this optional benefit, on diagnosis of any one of
the 6 common critical illnesses(1). The sum assured is payable if you
survive for 30-40 days after the date of the claim. Once such a claim
has been met, no further Critical Illness Benefit is payable. However,
your basic policy continues even after we pay a claim on this benefit
Additional Term Benefit (ATB) provides an additional amount equal to
the sum assured chosen under this optional benefit, in case of your
unfortunate death.
Accidental Death Benefit (ADB) provides an additional amount, equal
to the sum assured chosen under this optional benefit, in case of your
unfortunate death:
- due to an accident, and
- within 60-90 days of the accident.. Ø Waiver Of Premium (WOP) Benefit waives the premium for you in case you become totally disabled. The waiver is applicable during the period of total disability.
- All optional benefits must be selected at the outset of your plan..(1)
Cancer, coronary artery bypass grafts surgery, heart attack,
kidney / renal failure, major organ transplant (as recipient) and
stroke.
Does Endowment Assurance Plan offer you Tax Benefits?
Tax benefits described in Section 80, Section 80D** and Section 10
(10D) of the Income Tax Act are applicable.
** Applicable to premiums paid for C.I. and WOP.
Eligibility
This plan can be taken on a single life basis or a joint life (first claim)
basis. The eligibility ages are as follows:
Basic Policy
Min. age at entry 10-14Max. age at entry 58-60Max. age at expiry 70-75
Min. term : 10 years Max. term : 30 years
Children's/Child Gain Plan
Children’s Plan is designed to provide a lumpsum to the child at
maturity. It also provides financial security to the child in the future,
even in case of the insured parents unfortunate death during the policy
term. Children’s Plan receives simple reversionary bonuses, which are
usually added annually. This is a flexible plan with three options for
you to choose from, depending on your requirements. The details of
these options are explained in the next section.
The options that are available with this plan.
>OptionOn the death of the insured
parent during the policy term On maturity
Maturity Benefit PlanFuture premiums waived and the policy continues till maturity.
Sum assured + bonuses paid.
Accelerated Benefit Plan
Sum assured + bonuses paid and the policy stops.
On the survival of the insured parent to the maturity date, sum assured + bonuses paid.
Double Benefit PlanSum assured paid, future premiums waived, and the policy continues till maturity.
Sum assured + bonuses paid.
The Children's Plan offer you Tax Benefits.
The premiums you pay will be eligible for tax relief under Section 80 of
the Income Tax Act, 1961. The benefits received under the policy are
eligible for tax relief under Section 10(10D) of the Income Tax Act,
1961.
Eligibility
The eligibility ages for the life assured under the plan are as follows:
Minimum Age At Entry 0-7 years for child
Maximum Age At Entry 60 years for guardian/parent
Maximum Age At Maturity 20-25 years of kid.
Minimum Term: 7 years Maximum Term: 25 years
The payment options
You have the choice of paying the premium either in yearly, half-yearly
or quarterly modes, depending on your convenience
Indicative Premiums*
Child's current age: 1 year
Age of parent (Years)
Maturity Benefit Plan (Rs.)
Accelerated Benefit Plan (Rs.)
Double Benefit Plan (Rs.)
30 4,658 4,835 4,937
35 4,684 4,929 5,078
40 4,731 5,098 5,321
*The above quoted premiums are for a male life assured paying annual
premiums for a Rs. 1 lakh sum assured policy, with the policy maturing
when the child is 21 years old. The premium quoted above may vary
as a result of underwriting.
Child's current age: 7 years
Age of parent (Years)
Maturity Benefit Plan (Rs.)
Accelerated Benefit Plan (Rs.)
Double Benefit Plan (Rs.)
30 7,039 7,142 7,28235 7,063 7,196 7,39040 7,107 7,300 7,593
*The above quoted premiums are for a male life assured paying annual
premiums for a Rs. 1 lakh sum assured policy, with the policy maturing
when the child is 21 years old. The premium quoted above may vary
as a result of underwriting.
Money Back/Cash Gain Plan
It is a participating (with profits) insurance plan that offers the
following features:
Payment of cash lumpsums, each of which is a proportion of the
basic sum assured, at 5-year intervals during the term of the policy.
(Please refer to the table given below.)
On survival up to maturity, a payment equal to the basic sum
assured plus any bonus additions less the cash lumpsums paid earlier
is provided.
In case of the unfortunate death of the life assured within the term
of the policy, the basic sum assured plus any bonus additions is
provided. This is over and above the earlier payouts.
Schedule of cash lumpsum
(as a % of basic sum assured)Total Policy
TermNumber of Years from policy date
5 10 15 20 2510 40%15 30% 30%20 25% 25% 25%25 20% 20% 20% 20%30 15% 15% 15% 15% 15%
Benefits to Buy :
This plan helps you plan for future anticipated expenses by paying
periodic cash lumpsums to you at regular intervals. This plan also
helps provide for the needs of your family in your absence by paying
them the basic sum assured plus any bonus additions in the event of
your unfortunate death during the term of the policy.
Optional benefits are available with this plan
You can add the following optional benefits to customise your policy to
suit your needs:
Critical Illness (CI) Benefit provides an amount, equal to the sum
assured chosen under this optional benefit, on diagnosis of any one of
the 6 common critical illnesses(1). The sum assured is payable if you
survive for 30-40 days after the date of the claim. Once such a claim
has been met, no further Critical Illness Benefit is payable. However,
your basic policy continues even after we pay a claim on this benefit.
Additional Term Benefit (ATB) provides an additional amount, equal to
the sum assured chosen under this optional benefit, in case of your
unfortunate death.
Accidental Death Benefit (ADB) provides an additional amount
amount equal to the basic sum assured in case you die:
- due to an accident, and
- within 90 days of the accident.
Waiver Of Premium (WOP) Benefit waives the premium for you in
case you become totally disabled. The waiver is applicable during the
period of total disability.
All optional benefits must be selected at the outset of your plan. (1)
Cancer, coronary artery bypass graft surgery, heart attack, kidney /
renal failure, major organ transplant (as recipient) and stroke.
Money Back Plan & Tax Benefits
Tax benefits described in Section 80, and Section 10 of the Income
Tax Act are applicable.
** Applicable to premiums paid for CI and WOP.
EligibilityThis plan can be taken on a single life basis or a joint life (first claim)
basis. The eligibility ages are as follows:
Basic Policy Basic Policy for optional benefitsCI ATB ADB WOP
Min. age at etry 12 18 18 18 18Max. age at etry 60 55 60 55 50Max. age at expiry 75 70 75 65 60Min. term : 10 years Max. term : 30 years
The payment options
You have the choice of paying your premium either in yearly, half-
yearly or quarterly modes, depending on your convenience.
Indicative Premium*
Age (yrs.)
Basic PolicyPremium (Rs.)
Additional Premiumfor optional benefits (Rs.)CI ATB ADB WOP
20 7491 304 322 136 35230 7585 442 388 144 44340 7925 925 641 156 672
50 8815 1890 1357Not
AvailableNot
Available The above quoted premium is7 for a male life assured for a
period of 20 years and a sum assured of Rs. 1 lakh. The premium
quoted above may vary as a result of underwriting. The premium
reliable to all the optional benefits put together should not
exceed 30% of the premium of the basic policy.
INVESTMENT/INVEST GAIN PLANSingle Premium Whole of Life Insurance Plan
Single Premium Whole Of Life Insurance Plan is well suited to meet
your long term investment needs. This participating (with profits) plan
offers you the following benefits:
A sound investment: Your money will be invested in our With Profits
fund. The fund aims to provide secure and stable long term growth.
Normally, we will declare a compound reversionary bonus for your
policy every year and add it to your policy on its anniversary. In
addition, on death, surrender or on the guaranteed dates, a terminal
bonus might be payable. You pay a single premium and the policy
will pay you a lumpsum.
Flexibility of term: Even after choosing your policy, you can decide
on the policy term. For 4 weeks after any one of the 10th, 15th, 20th
and subsequent five-year anniversaries, you can choose to receive the
sum assured plus any attaching bonuses, in full. Once the money has
been received, your policy will cease.
Surrender value: You can terminate the policy any time, after it has
been in force for at least 6 months, and receive a surrender value.
In case of unfortunate death: Your nominee gets the sum assured
secured by your premium, plus any attaching bonuses.
No medical requirements: We do not require you to undergo any
medical test for this plan.
Eligibility:The eligibility ages are as follows:
Minimum age at entry : 18 yearsMaximum age at entry : 70 yearsYou can buy the product on a single life basis.
Payment options:
Cash, cheque or demand draft can pay a single premium.
Indicative Premium
Minimum sum assured : Rs. 50,000Maximum sum assured : Rs. 5,00,000 – as per IRDA rulesPremium: Rs. 750 -1050 per thousand of sum assured.
THE RISK FACTORSAny surrender value payable is at our discretion. It will reflect our
performance over the term of your policy. It may go up or down. Future
bonuses are dependent on our future experience. If any of the
information provided by you is incorrect, we reserve the right to vary
any benefits which may be payable. Further, if there has been non-
disclosure of a material fact, then we may treat your policy as void.
PROTECTION PLAN
Term Assurance Plan
Under this plan, a sum assured is payable in case of death of the life
assured during the term of the contract. One can choose the lumpsum
that would replace the income lost to one's family in the unfortunate
event of one's death. Since this non-participating (without profits) plan
is a pure risk cover plan, no benefits are payable on survival to the end
of the term of the policy.
Benefits
If you have a family that you care for, you should consider what would
happen in case of your unfortunate death. The emotional void cannot
be filled, but financial insecurity can be avoided. By taking this
affordable life insurance plan, you can
provide for the well-being of your family in case of your unfortunate
death. This plan comes to you at a minimal cost and is well-suited for
the value-conscious customer.
The optional benefits are available with this plan?
You can add the following optional benefit to customise your policy to
suit your needs:
Critical Illness (CI) Benefit provides an amount, equal to the sum
assured chosen under this optional benefit, on diagnosis of any one of
the 6 common critical illnesses(1). The sum assured is payable if you
survive for 30-40 days after the date of the claim.
Once such a claim has been met, no further Critical Illness Benefit is
payable. However, your basic policy continues even after we pay a
claim on this benefit.
Accidental Death Benefit (ADB) provides an additional amount,
equal to the sum assured chosen under this optional benefit, in case of
your unfortunate death:
- due to an accident, and within 90 days of the accident.
Accelerated Sum Assured (ASA) Benefit provides, on diagnosis of
any one of the 6 common critical illnesses(1), an amount equal to the
basic sum assured on the Term Assurance Plan.
As soon as we accept your claim:
- We pay out the sum assured.
- Your basic policy immediately terminates without value.
The benefit accelerates or advances the date on which the benefit
would be payable. It becomes payable on death or critical illness,
whichever occurs earlier. Once a claim has been met, either on death
or critical illness, no further benefit is payable on your policy.
CI and ASA are not simultaneously available on a single policy. All
optional benefits must be selected at the outset of your plan.
Since some of the benefits are subject to maximum limits, please
contact your Financial Consultant for more details.
Tax Benefits
Tax benefits described in Section 80, and Section 10 of the Income
Tax Act are applicable.
** Applicable to premiums paid for CI and ASA.
Eligibility
This plan can be taken on a single life basis or a joint life (first claim)
basis. The eligibility ages are as follows:
Basic PolicyPolicy with any optional benefit
Minimum age at entry 18 18Maximum age at entry 60 50Maximum age at expiry 70 70
Payment options:
You have the choice of paying your premium either in yearly, half-
yearly or quarterly modes, or of paying a single one-time premium,
depending on your convenience.
Indicative PremiumAge of Life Assured
Premium* (Rs.) Single Premium (Rs.) Half-yearly Yearly
20 yrs. 862 1566 1197025 yrs. 914 1662 1311030 yrs. 979 1782 1572635 yrs. 1074 1956 1821640 yrs. 1473 2688 26400
The premium quoted is for a healthy male, paying premiums for
a 15 year term for a sum assured of Rs. 6,00,000. The exact
premium may vary as a result of underwriting.
LOAN COVER TERM ASSURANCE PLAN
This plan provides a lumpsum on the unfortunate death of the life
assured during the term of the plan. The lumpsum will be a decreasing
percentage of the initial sum assured. As the outstanding loan
decreases as per the loan schedule, the cover under the policy
decreases as per the policy schedule. Since this is a non-participating
(without profits) pure risk cover plan, no benefits are payable on
survival to the end of the term of the policy.
Benefits
If you are taking a loan to buy a house for your family, this plan can
help you ensure that life's uncertainties do not affect their shelter. It is
an affordable plan that has been designed to help your family repay
the outstanding loan in case of your unfortunate death.
Eligibility This plan can be taken on a single life basis or a joint life (first claim)
basis. The eligibility ages are as follows:
Basic Policy Policy with optional benefit
Minimum age at entry 18 18Maximum age at entry 55* 55Maximum age at expiry
65 65
* 60 yrs. for a single premium policy.
Term Assurance Plan Tax Benefits
Tax benefits described in Section 80, Section 80D ** and Section 10
(10D) of the Income Tax Act are applicable.
** Applicable to premiums paid for ASA.
Indicative Premium* for the basic policy
Annual Premium** (Rs. P.a.)
Single Premium(Rs.)
Term of loan (in yrs.) Term of loan (in yrs.)Age of Life
Assured10 15 10 15
30 yrs. 1592 1634 5781 799335 yrs. 1757 1799 6324 915240 yrs. 2114 2163 8515 1299145 yrs. 2782 2915 10636 1666350 yrs. 3955 4175 15921 25038
The premium quoted above may vary as a result of underwriting.
The above rates are for a male life assured for an initial sum
assured of Rs. 3.5 lakh.
** In case of annual premium payment, the premium is to be
paid for only the first 2/3 rd of the term while the cover continues
for the full term.
The payment options:
You have the choice of paying your premium either in yearly, half-
yearly or quarterly modes, or of paying a single one-time premium,
depending on your convenience.
RETIREMENT PLAN
Personal Pension Plan
Before you enter into any financial contract, it is important that you
understand what the product is, how it works, the risks involved and
what a decision to buy could mean for you. We recommend that you
read this document before you purchase a policy from BAJAJ ALLIANZ
LIFE INSURANCE COMPANY LTD. Company.
Purpose: The policy is basically a savings contract, which is designed
to provide an income for life from retirement, with an option to take
the lump sum elsewhere to buy the annuity, provided it is permitted by
the prevailing regulations.
Your commitment: You agree to pay a single premium or level
premiums with installments due every quarter, half-year or year
throughout the deferment period of the policy, after which you will
start receiving your pension.
Risk factors: If you cease to pay premiums we may pay a surrender
value. This will be determined at our discretion. If any of the
information which you provide is incorrect, we reserve the right to vary
the benefits which may be payable and, further, if there has been non-
disclosure of a material fact then we may treat your Policy as void. We
will not pay out if a claim arises from an excluded cause of death.
Future bonuses are not guaranteed. They are dependent on our future
experience. The principal elements of experience are our investment
performance and expenses.
UNIT LINK PENSION PLAN
Our unit linked pension policy can greatly help you to meet your
financial needs after retirement. It allows you build up a retirement
fund for the future and during that time, give you the knowledge that
your family will receive a cash lump sum to provide for them in the
event of your unfortunate demise.
It is important that you understand what the BAJAJ ALLIANZ Unit Linked
Pension Plan is, how it works, the risks involved and what a decision to
buy could mean for you. We recommend that you read this document
before you purchase a policy from BAJAJ ALLIANZ LIFE INSURANCE
COMPANY LTD. Company.
The unit linked pension plan is basically an insurance contract, which is
designed to provide a retirement income for life.
Your premiums are invested in units of the investment fund of your
choice, based on the prevailing unit price. On vesting the value of your
units will be used to buy your retirement benefits.
On earlier death, the beneficiary receives the value of your units plus a
cash lump sum of Rs. 1,000.
Premiums:
You agree to pay level premiums regularly, either quarterly, half-yearly
or annually, throughout the term of the policy or a single premium at
the start of the policy. The minimum premium amount for regular
premium mode is Rs.5,000-10,000 each year and for single premium, it
is Rs. 25,000.
To facilitate increased investment, we allow additional single premium
top-ups at any time. The minimum single premium top-up is Rs. 5,000.
Premiums can be paid by cash, cheque or demand draft.
Investment funds Invested
The policy is fully unitised with a range of funds to match your needs
and approach to risk. (By risk we mean the likely volatility in the value
of units in the fund.) Each investment fund is composed of units. All the
units in a fund are identical. You can choose from the following funds:
Liquid fund
The Liquid fund invests 100% in bank deposits and high quality short-
term money market instruments. The fund is designed to be cash
secure and has a very low level of risk; however unit prices may
occasionally go down due to the use of short-term money market
instruments.
Secure Managed
The Secure Managed fund invests 100% in Government Securities and
Bonds issued by companies or other bodies with a high credit standing,
however a small amount of working capital may be invested in cash to
facilitate the day-to-day running of the fund. This fund has a low level
of risk but unit prices may still go up or down.
Defensive Managed
15% to 30% of the Defensive Managed fund will be invested in high
quality Indian equities. The remainder will be invested in Government
Securities and Bonds issued by companies or other bodies with a high
credit standing. In addition, a small amount of working capital may be
invested in cash to facilitate the day-to-day running of the fund. The
fund has a moderate level of risk with the opportunity to earn higher
returns in the long term from some equity investment. Unit prices may
go up or down.
Eligibility
Minimum Term
Maximum
Term
Minimum Age
at Entry
Maximum Age
at Entry
Minimum Age
at Vesting
Maximum Age
at Vesting
Regular Premium Version
10 40 18 60 50 70
Single Premium Version
5 40 18 65 50 70
Alteration in the level of premiums
Regular premiums can be increased at any time. If needed, the
policyholder can reduce the regular premium levels (even to zero ie
the policy is converted to paid up status) provided:
3 years of regular premiums have been paid
The monetary value of the unit holding across all funds is at least
Rs 15,000.
In addition, you can pay single premium top-up(s) at any point of time.
On surrender the policy
The policyholder can surrender the policy at any point of time during
the contract term for regular premium paying policies. For single
premium contracts, the contract needs to remain in-force for a
minimum period of six months before you can surrender.
The amount payable will be the unitised fund value after applying
additional surrender charges mentioned below.
On stop paying premiums
In regular premium paying contract? This product has a grace period of
15 days for the payment of each premium after the initial premium.
If you stop paying premiums, before you have paid 3 years of annual
premiums, we will cancel your policy and return to you the value of
your unitised fund, less cancellation charges.
If, after three years, you are unable to pay the premiums, you have the
option to make the policy paid-up, provided the policy has
accumulated sufficient policy value. Currently, this amount will be Rs.
15,000.
If you make you policy paid up you will continue to be protected
according to the benefits you selected. To provide this cover, we will
continue to collect our usual charges on each monthly charge date. It
is important to note that if no further premiums are paid, this may
reduce the value of your fund over time, or even exhaust it completely.
A paid-up policy can be reinstated to premium paying status at any
point of time in the future.
If the fund value of a paid-up policy falls below Rs. 15,000 we will
cancel the policy and return to you the fund value, less cancellation
charges.
Does this Plan offer me Tax Benefits? Premiums paid under this plan
are eligible for tax benefits under Section 80CCC of the Income Tax
Act, 1961.
Charges we will deduct charges from the policy to cover our costs.
A percentage of each premiums is invested to buy units, this
percentage is called the Investment Content Rate. The rates are as
follows:
Premium paid (Rs)Investment Content
Rate (ICR)Single Premium
Initial Payment 94%Single Premium Top-Up(s) 99%
Regular PremiumsYear 1 78%Year 2 78%
Year 3 + 99%Regular Premium Increases 99%Single Premium Top-Up(s) 99%
The unit price each day will include a fund management charge. This
charge is 0.80% of the fund value per annum taken on a daily basis.
A flat fee of Rs 15 per month will be deducted by cancellation of units
on each monthly charge date. This will be proportioned across funds
according to the fund holdings at the time of cancellation of units.
We do not charge for the flat death cover of Rs. 1,000, but we may do
so in the future.
We do not charge for premium redirections or switches but we may do
so in the future.
We do not charge for altering the regular premium amount (including
making a policy paid-up and reinstating a paid-up policy), but we may
do so in the future.
On cancellation or surrender of the policy before 3 years of regular
premiums have been paid, we will charge 20% of the outstanding
regular premiums due during this 3-year period.
Alteration to Charges No changes can be made to our current charges
without prior approval from the Insurance Regulatory and
Development Authority.
In any case, the fund management charge will not exceed 2% per
annum.
RESEARCH METHODOLOGY
INTRODUCTION
This chapter focuses on the methodology & the techniques used for
the collection, classification & tabulation of data. It sheds light on the
research problem the objective of study & its limitations. The later part
of chapter explain the manner in which the data is collected classified,
tabulated & so as to reach conclusive results. Research many
dimentions it not include not only the research methods but also
considers the logic behind the methods use in the context of study &
explains why only a particular method & techniques has been used so
that research lend themselves to proper evaluation thus in a way. It is
written game plan for concluding research. There for into design a
research problem it is necessary to design a research methodology as
the same may differ from problem to problem.
A) RESEARCH DESIGNTo carry out this study sample survey method has been employed. This
method is given primary significance in modern research because of its
intensive use to study the relationship of different factors, attitudes
and practices of society and to explore the problems that can not be
treated by experimental method.
I) OBJECTIVE OF RESEARCH
The purpose of research is to discover answer to question through the
Application of scientific procedure. The main aim of research is to find
out the truth, which is hidden, and which has not been discovered as
yet.
Though each research study has its own specific purposes, we may
think of research objectives as falling in to a number of following broad
groupings:
1. To gain familiarity with a phenomenon or to achieve new
insight into it (studies with this object in view are termed as
exploratory or formulative research studies);
2. To portray accurately the characteristics of a particular view
individual, situation or a group (studies with this object in
are known as descriptive research studies);
3. To determine the frequency with which something occurs View with which it is associated with something else (studies with this object in view are known as diagnostic research studies);
ii) SCOPE OF STUDY
The scope has been limited to sample size of 100 respondents due to
time & cost constraints. However, the area of study with respect to
geographical city of Yamuna Nagar.
B) COLLECTION OF DATA :
After the research problem has been defined and the research design
has been chalked out, the task of data collection begins. Data can be
collected from either primary or secondary source. in this study
although the data was collected mainly through primary sources, it
was supplemented by secondary data.
For the collection of primary data, the respondents were
contacted personally and the tool for gathering the data was the
questionnaire and tally calling.
C) Selection of Sample :
Sample can ideally be selected as percentage of total population
of respondents to increase the accuracy and reliability of the sample.
Hence a sample size of 100 industries was appropriate to keep sample
accurate as well as manageable.
Sampling Plan:
The following factors have to be decided with in the scope of the
sampling plan.
Sampling Size :
This refers to the procedure by which the we describe the total
number of respondent which are selected Randomly. Here I have select
100 respondents.
Sampling Unit :
The unit refers to the definitions of the particular person who is
to be survey. In this study the unit is the respondent which is operating
in Yamuna Nagar.
Sampling Procedure :
This refers to the procedure by which the respondents should be
chosen. In order to obtain a representative sample, a probability
sample of the population was drawn. Probability sampling can be of the
following types.
- Simple random sample
- Stratified random sample.
- Cluster (area) sample.
In this case, simple random sampling was done.
Formation of Questionnaire
Quite often the questionnaire is considered as the heart of a survey
operation. hence it should be carefully constructed. in the words of
good and Hatt, "In general, the word questionnaire refers to a device
for securing answers to questions by using a form which the
respondent fills in himself." All the questions in a questionnaire are
framed with a specific objective in mind and are placed in logical,
sequential order. The questionnaire framed for the purpose of the
study consists of a limited number of questions placed in a logical
order. The questions were framed keeping in mind the educational and
social background of the companies dealers. The questions were both
open and closed ended as well as multiple choice.
Classification of Data :
If refers to the process of arranging data into homogenous classes.
Subsequent to the collection of data, the results were sorted out and
arranged in different categories.
Graphical Analysis :
For presently the data in an organized form graphical method has been
used i.e. the data is mainly represented in the form of pie – graphs etc.
QUESTIONNAIRE
Name :
Age & Sex :
Occupation :
Contact No. :
Q.1. Who is your Insurer?
LIC ICICI BAJAJ ALLIANZ
Q.2. While taking insurance plan how are your rate that following.
Saving Risk Coverage Tax Benefices
Q.3. Give choice you would prefer to invest in
FD Insurance
Post Office NSS/NCC Shares
Q.4. Who is your financial consultant?
Professional Friend/Relative Family Agent
Q.5. Should life insurance be made compulsory?
Yes No
Q.6. Are you aware with these plans?
Children plant Money Back Plan
Personal Pension Endowment Plan
Loan Cover assurance Plan
Q.7. What is your occupation?
Govt. Job. Private Job. Self Employee
Q.8. Are you satisfied with the service of your Insurance Company?
Yes No
Q.9. Which plan you have taken?
Endowment Children Plan
Pension Plan Money Back Plan
Q.10. Your per annum’s income is ?
50000– 100000 =
100001-200000 =
200001-500000 =
500001-Above =
Q.11. How much of your Income would you like to invest in ?
1000 – 5000 =
5001-10000 =
10001-20000 =
20001-Above =
Q.12. According to you which company is better?
LIC ICICI BAJAJ ALLIANZ
1. Who is your Insurer ?
Interpretation :
As per the study we find that 65% people prefer LIC, 14%
prefer ICICI and 21% people prefer BAJAJ ALLIANZ for
Insurance.
2. While taking insurance plan how are your rate the Tax
Benefits, Saving & Risk Coverage.
Interpretation :
By the study we come to know that maximum people are
looking for risk coverage then looking for savings and at last
for the tax benefits.
Where as we know that risk coverage the main criteria then
the company should look to cover maximum type of people
risk coverage and other benefits.
4. Your financial consultant.
Interpretation :
Friends(62%) are the best resource for the financial
constancy then high status family are taking about
professional qualified person(29%) then respective family
agents (9%) the resources.
5. Should life insurance be made compulsory .
Interpretation :
People are not as much aware about life insurance factors.
So only 52% people are agree with the necessity of life
insurance and 48% simply refuses the requirement of life
insurance.
6. Awareness with the plans.
Interpretation :
People are only crusty about money back plans (50%)
rest plans are same important have to tell them and its same
worthy.
7. Satisfaction with the service of your Insurance Company.
Interpretation :
People are the same worthy being a customer so it good that
83% people are satisfied but still rest 17% are same
important which should be satisfied later on by providing
them to the best services.
8. Which plan you have taken ?
Interpretation :
We found that maximum people are preferring Endoment
Plan, Than Children Plan is preferred thirdly money back plan
and the lastly Pension Plan is preferred by the peoples at all.
This shows the psychology of people that for what purpose
they are looking from a policy.
10. Your Income that you would like to invest in.
Interpretation :
Higher Middle class people mainly looking form
Insurance(41%) then middle family (36%) and second last
higher income people prefer(18%), few of low income people
(5%) prefer insurance.
FINDINGS
Bajaj Allianz is the best insurance company.
Bajaj Allianz is the No.-1 profitable company , it gains
Rs.63,00,00,000 in the F.Y. 2006-07.
Bajaj Allianz is the fastest claim providing company in the
f.y. 2006-07, among all the private life insurance company.
Bajaj Allianz is No.-1 in the premium collection for the FY
2005-06 & second in the F.Y. 2006-07.
Bajaj Allianz is No.1 polity seller for the F.Y.-2006-07.
No doughty its provides the best services to it customers.
Bajaj Allianz is one of leading private company in Indian
Insurance Sector.
SWOT ANALYSIS
Strength
Additional benefits like family income benefits, critical
illness benefits, accidental benefits and waiver of
premium benefits.
Low Premium.
Bajaj Allianz is the first company launch mahila plan.
Tax Benefits.
Allianz had paid million of dollors to the WORLD TRADE
CENTRE in the USA after terrorist attack.
Ranked No.-1 company among the private life
insurance.
It’s introduces new plans as per market hunt.
By gaining 63Cr. Profit in F.Y. 2006-07 it bcomes
Ranked 1 company among private insurance
companies.
Weakness :
Credibility.
Low bonus rates.
In Corporate insurance not a leading company.
Opportunities :
Large Global Market
Quicker response to customers needs.
Potential to become a sourcing centre.
Threats :
Touch competitions.
Lack of awareness.
Expensive.
CONCLUSION
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD. Ltd. is one of the
best private insurance companies.
Facilities provided by BAJAJ ALLIANZ all are advanced.
BAJAJ ALLIANZ & BAJAJ GROUP has good market image and thus
attract more customers.
Popular product : Endowment Plan
Popular Scheme : Money Back
Causes of dissatisfaction for not using any of DBC
: Unawareness & lack of knowledge.
Promotional Efforts:
: Canopies
: Tele-Calling
: Marketing Executives
BIBLIOGRAPHY
Books:
Research Methodology By Kothari, C.R.
Business Research And Methods By cooper, Donal R. & Schindler
Marketing Management By Kotler, Philip
Websites
www.irda.com
www.bajajallianz.com
www.google.com
SUGGESTION
Lots of potential in rural area. They have no knowledge regarding
private companies. Company’s motto should be to make them
aware about their product.
Awareness of customer is very low in India. Even educated
person are ignorant about various products of Insurance.
Company should have make endeavor in this context like
advertisement.
Give assurance to people that they will not go any ware taking
their money, because this is regulated by IRDA and backup by
RBI.
Company should provide more benefits with their products like
major surgical benefits and income benifits.
Company’s should open customer services points in rural areas
also.
*********** ADDITIONAL INSURANCE METTER***
ATRAINING REPORT
ONGRASP ANALYSIS ABOUT
LIFE INSURANCE
BAJAJ ALLIANZ
YAMUNA NAGAR OFFICE
Submitted to:KURUKSHETRA UNIVERSITY,
KURUKSHETRA
IN THE PARTIAL FULFILLMENT FOR THE REQUIREMENT
OF MASTER OF BUSINESS ADMINISTRATION
DEGREE(SESSION 2004-2005)
SUBMITTED By: -
Neha Bansal M.B.A
Roll No.-1103/03Univ. Roll No.___________
SWAMI DEVI DAYAL INSTITUTE OF ENGG. AND TECHNOLOGY
(SDDIET)(Approved by AICTE& Affiliated to Kurukshetra University, Kurukshetra.)
Barwala
CONCLUSION
THE DISADVANTAGES OF INSURANCE Continually rising premiums averaging 15% Complex and complicated plans, rates and banding Premiums (contributions) gain no investment for the client who has
little cost control ability Premiums rise due to age increases, claims record and medical
inflation, averaging 10% above RPI inflation. No control of monies Increasing premiums are directly related to claims history and are
reassessed annually irrespective of previous years' performance Profits are retained by the insurance company with no ongoing
advantages for the client Inflexible pre-packaged plans creating increased administration
resulting in higher costs for your company Premiums are age banded Excess schemes artificially reduce premiums Insurance Premium Tax currently @ 5% Insurance levies currently @ 2% Insurance companies cannot claim back any V.A.T. inflating
premiums.
Advantages of a Trust Fund Scheme
Lower Healthcare costs - up to 50% saving on traditional PMI, resulting in less taxation (benefit in kind) to employer and employee.
Simplicity - one standard rate of contribution Company Trust Fund - 80% of contributions retained in interest-
bearing account solely to pay for medical treatment. Costs Controls, lower overheads & investment will stabilise and may
even reduce contributions Puts company in control of its own investments Contributions are related to the LONG TERM PERFORMANCE OF
THE TRUST and are not claims related on an annual basis. Trust Fund retains profit and accumulated contributions. Flexible benefits tailored to individual requirements with minimal
administration for the company. Covers ages 16-65. Contributions not age related No Excesses No Insurance Premium Tax. No Insurance Levies
Objectives Of Insurance
1. Standard of Living—Maslow's basic needs satisfied such as food, water, clothing, shelter, and nice-to-have discretionary items, suchas automobiles, vacations, entertainment.
2. Savings—emergency funds for sudden and unexpected events, such as extra living expenses because of a fire at one's home.
3. Protection—DISABILITY INCOME INSURANCE; HEALTH INSURANCE; LIFE INSURANCE; PROPERTY AND LIABILITY INSURANCE (all forms designed to offer coverage against the uncertainty of a financial loss due to the PURE RISK).
4. Investment—Accumulation of wealth through the return on assets deployed leading to financial independence.
5. Estate Planning—distribution of the invested assets held for the purpose of the accumulation of wealth in a tax efficient and effective manner.
Term Vs Whole lifeConsider 4 Points:
Are your insurance needs only for a certain number of years? What are you insuring? Can you afford higher premiums up front? When will you die?
Are your insurance needs only for a certain number of years?
Term life can cover you from one to 30 years, and there may not be a large need for insurance after you debts are paid, etc.
Whole life provides life insurance coverage your entire life, regardless of when you "check out." Your senior years are when you'll most likely use your life insurance, and you want to have coverage during these years.
What are you insuring?
Term life protects against something that has a time constraint, like say, your mortgage or paycheck. After you've paid off the mortgage and/or retired, you may not need more coverage. Term life is used to protect primarily against pre-mature death.
Whole life is used primarily to a benefit upon your death regardless of age (i.e. to pay estate taxes). Consider whole if you have few assets and want to create an estate or at least pay for your burial. It's also a good idea for either the affluent with a large estate (estate taxes), or to compensate for a pension that will not fully pay your spouse if you die. There is some peace of mind by buying whole life because you'll always have coverage as long as you pay your premiums. Go to Insurance needs for more on this topic.
Can you afford higher premiums up front?
Term life can save you many shekels or allow you to purchase a larger death benefit because you're only paying the cost of insurance and building no cash value. But remember, the chances of you dying prematurely are lower, and premiums for term life reflect that.
Whole life has higher premiums initially than term but if you end up living a long while, the difference in premiums between term and whole may
equalize, especially if you try to get insurance after your term life contract is up. Go to Insurance Savings for more on this topic.
When will you die?
Term life may be perfect if you die prematurely. Of course, none of us know when our number will be called, but it may be cheaper to get term if your family tends to have a shorter longevity. Term life insurance companies usually won't provide coverage past age 75-80 unless you convert your policy before hand, which can be ultra expensive. Term life is bought to protect your family if you die prematurely. People that have a family history of premature death may be well served by term coverage.
Whole life covers you for your entire life (with enough cash value). There is peace of mind knowing that you'll always be covered as long as you pay your premiums. If your familiy tends to be hangers on, then you may want to look at whole life. But no one knows when their ticket will be up!
Term vs. Whole Life Insurance Summary
People get life insurance to protect against loss, so we have to analyze this objective before going on to cash value, riders, interest rate, etc. You should buy all the coverage you need now while you're younger, and if you can't afford whole life insurance, at least get Term. Temporary term coverage is better than no coverage at all. If you can afford the higher premiums of whole life insurance, examine if your insurance needs are only for a certain number of years, what you're insuring and when will you are likely to die.
Advantages Of Whole Life Insurance It offers you a low risk cash value account You don’t have to worry about premium increases Your cash may accumulate tax-deferred Should provide a fixed premium You have a level death benefit for your whole life You can make tax free loans of your cash value You can convert your cash value to an annuity for income You policy can't be canceled if you have enough cash value
Disadvantages Of Whole Life Insurance You cannot choose between interest bearing accounts Few live to 100, so the maturity age is impractical You can’t vary the monthly premium payment Your premium paying period may last a long time You can’t increase the amount of coverage Loans are deducted from cash value or death benefit The cash value may be less than your face value Premiums are much higher than term life You policy may be surrendered from over withdrawals
Term Life Insurance FAQs from Life Insurance Wiz Quotes: The Experts in Term Life Insurance Quotes Information.
Why it's called "Term". Different terms for different needs. What happens when the term is over? Accidental Death Insurance. Summary: Advantages and Disadvantages of Term Life
Insurance.
Why It's Called "Term"
Term life insurance is called "term" because it provides coverage for a specific period or term (most often 1, 5, 10, 15 or 20 years). For this reason, it is also called "temporary" insurance. If death occurs during the term, the policy pays cash benefits to the beneficiary. However, once the term is over, and if the policy is not renewed, the coverage ceases. If death occurs after the coverage ceases, no cash benefits are paid out.
Term insurance is the most straightforward type of life insurance and the easiest to understand. Sometimes it is called "pure" insurance, since the policy has no financial investment value and most of your premium goes to pay for coverage, with only a small amount used to pay the insurance company's costs. If you are looking for the maximum amount of coverage for your dollar, term life insurance will give you the most "bang for your buck".
Different Terms For Different Needs
All term life insurance policies cover you for a specific amount of time - the term. The term that's right for you depends on how old your children are, how many years before you retire, and other factors. Many people like to know they're insured until they're ready to retire, usually at age 65. Many just want to have insurance until their youngest child graduates from college, and so they make sure their life insurance coverage includes money to pay for all of the college tuition.
Most experts agree that you should carry insurance at least until your youngest child is 18. So if your child is 3 now, you would want to carry your insurance for at least 15 years. But that doesn't mean you have to lock into a 15-year term - you could instead buy an annual renewable policy and renew it for 14 years in a row. You should compare the total 15-year cost of the annual renewable policy and the 15-year term policy, making adjustments for the time and value of money, to determine what the best value is for you.
Here's an overview of the different types of term policies available and, most importantly, a look at what happens when the term is over.
Annual renewable term insuranceRenewable term insuranceLevel premium term insuranceDecreasing term insuranceConvertible term insurance
Annual renewable term insurance. With this type of term insurance, your policy is automatically renewable each year up to a specific age limit, often 65, but sometimes older. Since the chances of your dying increase statistically the older you get,
your premiums go up each year as you renew. However, if you buy your policy when you are young and unlikely to die, you can obtain substantial coverage for an inexpensive premium.
Renewable term insurance. With renewable term insurance, the insurance company automatically allows you to renew your coverage after the term of the policy is over (generally 5 to 20 years), even if your health has deteriorated. This is the same way annual renewable works, but for a longer period of time. Since a lot can happen to your health in 5 or 20 years, renew ability can be a valuable feature. But since it involves a greater financial risk for the insurance company, renewable term coverage generally costs a bit more than annual renewable policies.
The conditions associated with renewable term may differ from company to company. For example, though you are guaranteed the right to renew at the end of your term, you may or may not be able to renew for the same amount of coverage or for the same term. Moreover, your premiums will almost definitely go up upon renewal.
Level premium term insurance. Level premium term guarantees your premium will stay the same each year for the term of your policy, generally 5 to 20 years. Insurance companies keep your premiums the same by charging you an average of the premiums they would ordinarily charge you with an annual renewable policy. As a result, you will probably pay more in the early years and less in the later years than you would if you had an annual renewable policy. You will probably also encounter a big increase in premiums at the end of your term when you apply for a new insurance policy.
The big advantage of level term is that your premiums stay the same throughout your policy, even as you get older. However, if for some reason you change policies in the early years - when your level term policy is most expensive - you will end up paying more than you need to for coverage.
Decreasing term insurance. With decreasing term, your cash benefits decrease each year while your premiums remain level for the duration of the term. Decreasing term is typically used to cover an item whose costs decrease over time, such as your
home's mortgage. It isn't a wise choice for your general life insurance needs which, due to the effects of inflation, tend to increase over time.
Convertible term insurance. Convertible term enables you to convert your term insurance into any of the other types of insurance policies offered by the issuing insurance company. Convertibility can be an advantage if your insurance needs change over time, as they are likely to do. And, since it involves greater risk for the insurance company, it generally costs more than annual renewable term.
What Happens When The Term Is Over?
It all depends on the type of term insurance you have. With renewable term, you are guaranteed the right to take out another term policy without the formality of a new application or medical examination. With standard term, your insurance coverage ceases, and you have to apply again, including taking a medical examination. With convertible term, you reserve the right to convert your term policy to another type of policy like Whole Life or Universal Life - or in some cases, another term policy - at any time during the term of your policy. You should, however, expect an increase in your premiums with your new policy.
Accidental Death Insurance
A special limited type of term insurance
Accidental death term pays out a cash benefit if you die in an accident. Since the sudden loss of a loved one can impose extreme hardship on a family, this coverage can be thought of as "catastrophic protection." It can also be thought of as "inexpensive term" since it only pays benefits for death resulting from accidents and, therefore, often costs less than other types of term insurance.
The best way to protect your family is with a life insurance policy that pays benefits if you die from any cause. But if you don't feel you can afford regular term insurance, you should at least give your family the protection of a good, inexpensive Accidental Death policy.
Summary: Advantages Of Term Life: WHAT IT DOES
It pays a death benefit to the beneficiary you name that will: 1). cover your final expenses and 2). provide a lump sum that can be invested to meet the ongoing needs of your dependents.
It covers you for the full amount of life insurance you choose for a specified period of time.
It can be convertible and renewable depending on the policy.
It gradually increases annual premium as you get older. It traditionally works well to meet temporary insurance
needs.
Disadvantages of Term Life: WHAT IT DOESN'T DO:
It doesn't provide a cash value account for some later point such as retirement.
It doesn't provide you permanent life insurance protection.
LIMITATIONSThough every care has been taken to make this report
authentic in every sense, yet there were few uncomfortable
factors which might have had influence on the final report linking
factors can be stated as:
As the number of universe wits very large enough due
to time limitations all the respondents could not be
covered.
Some of the respondents were not candid enough to
reveal all the required information. They might have
given inflated or wrong information.
Because of the diversity of the nature of the
respondents the findings of the survey could not be
generalized.
Also some personal bias might have crept into the
information provided by respondents.
Analysis &
Findings
A
SUMMER TRAINING REPORT
ON
FISH NET TWINE MARKET IN
DELHI
SRF POLYMERS LTD.
New Delhi
Submitted to:KURUKSHETRA UNIVERSITY,
KURUKSHETRA
IN THE PARTIAL FULFILLMENT FOR THE REQUIREMENT
OF MASTER OF BUSINESS ADMINISTRATION
DEGREE
(SESSION 2004-2006)
Under Guidance Of : Submitted By: Mr. Sumit Gupta Vikram Choudhary(Zonal In-charge, Nr) M.B.A. (F)SRF Polymers Ltd., Delhi Univ. R. No.______
Maharaja Agrasen Institute of Management & Technology (MAIMT) (Approved by AICTE &Affiliated to Kurukshetra University, Kurukshetra)
Jagadhri
Contents
S. No. Title
12. Certificate
13. Acknowledgement
14. Preface
15. Company Profile
Introduction
Business Philosophy
Community Relations
Products & Business
A. Plants
B. Fishnet Twines
Corporate Structure
SRF Milestones
Investors Relations
16. Literature Review
17. Research Methodology
18. Analysis And Interpretations
19. Limitations
10. ANNEXURE
11. BIBLIOGRAPHY
BIBLIOGRAPHY
Books:
Research Methodology By Kothari, C.R.
Business Research And Methods By cooper, Donal R. & Schindler
Marketing Management By Kotler, Philip
Websites
www.dixoninfo.com