SRM UNIVERS U SITY

(Und der Section n 3 of UGC C Act 1956)

MAIN PR ROJECT REP PORT ON

CONS SUMER PREFER RENCE TOWAR T RDS HEA ALTH IN NSURAN NCE For BAJAJ CA APITAL L INSURA ANCE BROKING B G Ltd. [B BCIBL]
IN TH HE PARTIA AL FULFILL LMENT OF THE REQU UIREMENT TS FOR THE T AWAR RD OF THE DEGREE OF O MASTER M O BUSINES OF SS ADMINI ISTRATION N (MBA)

Under the t guidanc ce of Dr. R. VE ELU (Prof fessor)

D.P.Tech., M.A A., M. Phil., MBA, M Ph.D. .

Sub bmitted by: :

ANOOP KUMAR K SI INGH Reg No. N 3508005 50 (20 008 2010)

SRM SC CHOOL OF MANAGEM MENT FAC CULTY OF ENGINEER E RING AND TECHNOLO T OGY K KATTANKU ULATHUR 603203

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DECLARATION BY STUDENT

I hereby declare that the project report entitled A Study on Consumer preference towards Health Insurance. It is the original work done by me as per the requirement of the curriculum of the degree of MBA course of SRM UNIVERSITY and submitted to SRM SCHOOL OF MANAGEMENT.

It has not been previously submitted for the award of any other degrees or courses or fellowship. This is done in partial fulfilment for the requirement for the award of the degree of MBA of SRM UNIVERSITY for the academic year 2009-2010.

PLACE : CHENNAI

NAME : ANOOP KUMAR SINGH

DATE

Regd. No : 35080050

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CERTIFICATE BY COLLEGE

This is to certify that MR. ANOOP KUMAR SINGH bearing Regd. No: 35080050 a bonafied student of SRM SCHOOL OF MANAGEMENT has prepared and completed his dissertation Research work under the guidance of Prof. Dr. R. VELU. A Study on Consumer preference towards Health Insurance, a study conducted at BAJAJ CAPITAL INSURANCE BROKING LTD,(a unit of BAJAJ CAPITAL LTD.) of Rajajinagar branch at BANGALAORE.

This is done in partial fulfilment for the requirement for the award of the degree of MBA of SRM UNIVERSITY for the academic year 2009-2010.

PLACE : CHENNAI

NAME:

DATE

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BONAFIED CERTIFICATE

This is to certify that MR. ANOOP KUMAR SINGH bearing Regd. No: 35080050 is a bonafied student of SRM SCHOOL OF MANAGEMENT has prepared and completed his dissertation project work entitled A Study on Consumer preference towards Health Insurance, a study conducted at BAJAJ CAPITAL INSURANCE BROKING LTD, Rajajinagar Branch at BANGLAORE .

This is done in partial fulfilment for the requirement of the award of the degree of MBA of SRM UNIVERSITY for the academic year 2009-2010.

PROJECT GUIDE

SIGNATURE OF H.O.D

Dr. R. VELU (Professor)

D.P.Tech., M.A., M. Phil., MBA, Ph.D.

PLACE : CHENNAI

NAME:

DATE

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ACKNOWLEDGEMENT
This project report is a sincere attempt to carefully and systematically gather facts about and evaluate the consumer preference and market research of M/s BAJAJ CAPITAL INSURANCE BROKING LTD. (a unit of BCL) at Rajajinagar Branch, Bangalore, as a part of the course curriculum of Master of Business Administration (MBA) degree, of SRM UNIVERSITY which is based on Eight weeks duration. For the completion of my project report many person directly or indirectly have assisted me. At first, I would like to express my sincere thanks and deep gratitude to my esteemed guide Prof Dr.R.Velu, SRM, School of Management for his kind initiative, guidance and valuable suggestion without which this project would not meet its objective. I also express my per found sense of gratitude to Dr Jayshree Suresh, SRM, University who guided me at every step of my project. His proper direction and constant inspiration provide to be an asset for this project. I am also grateful to Mr. PRATEEK S SETH Zonal Manager, Bajaj Capital Ltd, Bangalore. Who have given me an opportunity to conduct my research and complete my project in esteemed organization of BCBIL (A unit of Bajaj Capital). Words are too little to express my gratitude to him. I would also like to thank Mr. Sadanandah H, Mr. Ashwin Kumar S., and all the other members and staffs of BCIBL (a unit of BCL) for their guidance and kind Co-operation to compile my project. Last but not the least I would like to thank to all my friends who actively supported and contributed me in preparation of this project. Their contributions are highly appreciated. Since the reader would like to know the general details of GENERAL INSURANCE HEALTH INSURANCE, therefore, chapter includes a discussion of theoretical aspects and its application is included. Further to help the reader to understand the finding with graphical representation, conclusions and suggestions are also included, which very much helps to know that where BCIBL., stands in the HEALTH INSURANCE. I hope this report will be special interest to the marketing students, who are on look for such real life situations beyond their classroom studies.

ANOOP KUMAR SINGH

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ABSTRACT
The Insurance is a contract. Paying of the sum assured on the happening of the risk. Risk = un predicted stages in life. It not only insures the future financial operations but also to beat the inflation and make sure that one can appreciate its money value in future. The most challenging phase in the life stages are: To meet current and recurring expenses, to take care of children needs. Build Capital Assets like House or car and over all remain healthy and fine. A family continues to have these financial needs, whether we survive or not. The insurance industry has eased the planning and makes an individual to achieve the goals of life. A Life Insurance with high premium compensate for the life. The Health Insurance minimizes the risk which are not covered by Life insurance like accident (where the victim is injured but not dead), or any hospital expenses pertaining to insured health. In India Insurance companies are growing rapidly and entry of private players in the market has added lot more competition in the industry, but Banks are not authorized to enter in insurance business, for that they tie up with any insurance firm that is called Banc assurance. Banc assurance is the selling of insurance and banking products through the same channel, most commonly through bank branches. The aims of this project are to analyses the preference of consumer (investors) towards Health Insurance and then analyze the performance of Health Insurance in the market. This project is intended to have an understanding of consumer preference towards various investment options and a comprehensive study about the performance of Health Insurance Plan. The project deliverable aims at providing a document which gives an overview of its performance, its importance to the company and how its influence the decision of investors. We define marketing research as the systematic design, collection, analysis, and reporting of data Page|6

and findings relevant to a specific marketing situation facing the company.

The findings of this project were that there is a gap of selling of product in the city as the Bangalore city police chart shows the number accidents are much above the dead. There should active involvement of marketing team making people aware of the Health Insurance benefits and the premium paid which are taxes deductable up to Rs.15000 (Rs. 20000 for senior citizen) under sec 80(D). Company should give special training to their insurance consultants time by time. There should be some arrangement of telecasting their products in regional television in order to reach the effectively and efficiently to the people.

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TABLE OF CONTENT
CHAPTER TITLE PAGE COMPANY CERTIFICATE BONAFIDE CERTIFICATE ACKNOWLEDGEMENT DECLARATION 1 1.1 INTRODUCTION 1.2 STATEMENT OF PROBLEM 1.3 OBJECTIVE OF STUDY 1.4 SCOPE OF STUDY 1.5 LIMITATIONS OF STUDY 2.2 COMPANY PROFILE 2 3 2.3 PRODUCT PROFILE 3.1 RESEARCH METHODOLOGY 3.2 DATA COLLECTION 3.3 POPULATION SIZE 3.4 SAMPLE SIZE 3.5 STATISTICAL TOOL 4 5 DATA ANALYSIS & INTEREPRETATION 5.1 FINDING 5.2 SUGGESTION & RECOMMENDATION 5.3 CONCLUSION APPENDIX I APPENDIX II TITLE PAGE NO. 1 2 3 4 5 10 22 23 23 24 25 36 38 39 40 40 41 42 59 61 64 67 69

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 CHAPTER1 INTRODUCTION

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CHAPTER 1

Consumer Preference towards Health Insurance

1.1 INRTODUCTION
The General Insurance business in India, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are. 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1stJanuary. 1973: 107 insurers amalgamated and grouped into four companies viz. 1) The National Insurance Company Ltd. 2) The New India Assurance Company Ltd. 3) The Oriental Insurance Company Ltd. and 4) The United India Insurance Company. General Insurance Companies was incorporated as a company.

Non-Life Insurance Market:

In December 2000, the General Insurance Companies subsidiaries were restructured as Page|10

independent insurance companies. At the same time, General Insurance Companies was converted into a national re-insurer. In July 2002, Parliament passed a bill, declining the four subsidiaries from General Insurance Companies. Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers. Although the public sector companies still dominate the general insurance business, the private players are slowly gaining a foothold. According to estimates, private insurance companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half of 2002, the private companies booked premiums worth Rs 6.34 billion. Most of the new entrants reported losses in the first year of their operation in 2001.

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Non - Life Insurance Companies Performance at Glance Gross Premium in INSURER 2007-2008 ORIENTAL INSURANCE UNITED INDIA INSURANCE NATIONAL INSURANCE COMPANY NEW INDIA ASSURANCE COMPANY ROYAL SUNDARAM GENERAL INSURANCE ICICI-LOMBARD INSURANCE RELIANCE GENERAL INSURANCE BAJAJ ALLIANZ GENERAL INSURANCE IFFCO-TOKIO GENERAL INSURANCE TATA AIG GENERAL INSURANCE CHOLAMANDALAM GENERAL INSURANCE HDFC ERGO GENERAL INSURANCE FUTURE GENERALI* STAR HEALTH & ALLIED INSURANCE COMPANY LTD. UNIVERSAL SOMPO* APOLLO DKV HEALTH & PERSONAL ACCIDENTS PRIVATE TOTAL (12) PUBLIC TOTAL (4 ) 3,855.61 3,738 4,030.80 5,274.14 695.16 3,344.69 1,946.42 2404.34 1,235.83 313.39 563.67 2.16.58 10.64 173.30 0.48 2.98 11,407.30 16809.49 Crore 2006-2007 3,928.66 3,498.77 3814.42 5019.19 600.58 3000.49 912.31 1803.34 1150.32 741.56 314.59 190.16 0.00 22.51 0.00 0.00 8738.32 16259.04 Percentage Market Share growth in a year -1.86 6.36 5.69 5.08 15.75 11.47 113.35 33.33 7.43 9.69 79.18 13.89 0.00 668.68 0.00 0.00 30.53 3.94 during 20072008 13.62 13.21 14.24 18.63 2.46 11.82 6.88 8.49 4.37 2.87 1.99 0.77 0.04 0.61 0.00 0.01 40.30 59.70

*Future Generali, Universal Sompo and Apollo DKV Insurance Commenced business during 2007-08. Star Health, Apollo DKV are Standalone Health Insurance Companies. Source IRDA website (RNI, June 2008)

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Reinsurancebusiness:
Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which can be safely borne from their own funds. The balance risk is re-insured with other insurers. In effect, therefore, re-insurance is insurer's insurance. It forms the backbone of the insurance business. It helps to provide a better spread of risk in the international market, allows primary insurers to accept risks beyond their capacity settle accumulated losses arising from catastrophic events and still maintain their financial stability. While General Insurance Companies subsidiaries look after general insurance, General Insurance Company Ltd (India) itself has been the major reinsurer. Currently, all insurance companies have to give 20 per cent of their reinsurance business to General Insurance Companies. The aim is to ensure that General Insurance Companies role as the national reinsure remains unhindered. However, General Insurance Companies reinsures the amount further with international companies such as Swiss (Switzerland), Munichre (Germany), and Royale (UK). Reinsurance premiums have seen an exorbitant increase in recent years, following the rise in threat perceptions globally. The Insurance Regulatory and Development Authority: The IRDA takes care and provides supporting system to the Indian insurance industry. As per the section 4 of IRDA Act 1999, Insurance Regulatory and Development Authority (IRDA was constituted by an act of parliament) specify the composition of authority. The authority is a ten member team consisting of A Chairman, Five whole-time members and four part- time members (All appointed by the Government of India). The primary works of IRDA are: IRDA issues a certificate of registration to applicants, renew, modify, withdraw, suspend or cancel such registration. It protects the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, and settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance. The IRDA specifies requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents. It promotes efficiency in the conduct of insurance Page|13

business. It promotes and regulates professional organizations connected with the insurance and re-insurance business. The IRDA controls and regulates the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee Under section 64U of the Insurance Act,1938 (4 of 1938) etc.

HEALTH INSURANCE
Life is full of surprise but what are those surprises turn out to be unpleasant ones? Dismemberment due an accident, a dreaded disease, anything can happen to anyone, anytime, the last thing a person need would want to bother about is where the treatment cost is going to come from. So we need to be careful and well prepared at the same time. To meet these uncertainties of life the General Insurance companies have presented a unique innovative "The HEALTH INSURANCE". That covers much more than basic hospitalization covers. These products are of two types in general: Individual Health coverage and Family Health cover. The product is designed as such to protect the consumer against the spiralling medical cost while at the same time ensuring most unforeseen casualties through a wide spectrum of benefits. So that one can live worry-free and receive hassle - free medical care. It covers for In-patient hospitalization expenses for accidents/illness including room charges, Surgeons fees, investigation charges, cost of medicines etc. The stay in the hospital should exceed a period of 24 hours. Out-patient treatment charges are allowed for certain ailments like cataract from the second year), tonsillectomy and lithotripsy. These policies provides through a unique Cashless Facility which gives the convenience of undergoing treatment in anyone of the listed network hospitals (provided by the companies), without having to pay the hospital bills or the Security deposits. Thus the consumers have to no longer worry about a lengthy claim process for reimbursement of medical expenses. These policies are seen to provide financial assistance for the consumer and to his/her family against Hospitalization Expenses towards diseases and accidents in India along with host of value additions. It provides a basic medical cover for all illness (except for certain exclusion) and an optional cover for providing additional sum Insured for CRITICAL ILLNESS like Heart Surgery, Page|14

Kidney Failure, Cerebral Stroke, Cancer, major organ transplantation. Risks are unavoidable in personal life and in business, but can be managed by proper planning. Maternity expenses (After nine months of the policy date) are assured up to a certain amount by some of the leading Health Insurance companies. Cataract treatment cost is covered depending on the policies term. Prehospitalization and Post-hospitalization expenses are paid to the insured for a period of which varies from 30 to 60 and 60 to 90 days respectively. The policy cover provided for self, spouse, dependent children and dependant parents. Pre-existing diseases are covered after certain years of consecutive insurance with the companies. Family discount, premium discount and cumulative addition on the sum assured are certain bonus which companies give to their consumer if there is claim free continuation with the company policy. Income tax benefits on premium paid up to Rs.15, 000/- Under Sec 80 D of IT Act. And for senior citizen (65 yrs and above as per under IT ACT) Rs. 20000/-. Carryover of cumulative bonus from previous insurer provided renewal notice from previous insurer is submitted & there is no break in cover. In case of treatment in Non-Network hospitals, re-imbursement will be made within 15 days from the date of receipt of all documents. This facility is available in certain numbers of hospitals in India. Ambulance Referral Facility in times of need. Online Access to our Website for information and facility to upload your medical records on your own web space.24 hour help line number to guide you in times of need Bajaj Capital acts as customer partners, who help you to identify and understand various risks, prioritize them and eventually manage them. Its all about Protecting Earning Capacity, Health Care, Disability cover and Asset Insurance. As a broker, the Bajaj Capital do not offer their clients just a single option but multiple options available, and help them to select the most appropriate one. Under this scheme a deduction up to Rs. 15,000/- (Rs.20, 000, in case of Senior Citizens i.e. 65yrs and above as per IT ACT) is allowed in respect of premium paid by cheque towards Heath Insurance Policy, like Mediclaim. Such premium can be paid towards health insurance of spouse, dependent parents as well as dependent children.

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BASIC COVER:
Hospitalization: Room, Boarding, Surgeon Anaesthetist, Medical Practitioner, Consultant, Specialist fees and Nursing expenses as charged in the hospital/nursing home including Hospital Registration / Service charges within a limit of the company assured sum in the policy (minimum hospitalization of 24hrs is must) Day Care Treatment: (i.e. Hospitalization less than 24 hrs.) Due to advancement of technology, hospitalization expenses for certain diseases are also covered. Cost of Anaesthesia, Blood, Oxygen, Operation Theatre, Surgical Appliances, Medicine & Drugs, diagnostic Materials and X-ray, Dialysis, Chemotherapy, Radiotherapy, Pacemaker, Artificial limbs, Organs and other similar expenses. Domiciliary Hospitalization: treatment at home if the patient cannot be admitted to hospital for lack of accommodations or the condition does not permit him/her to be removed to hospital. Daily Allowance for the duration of the hospitalization Pre- Hospitalization expenses and Post Hospitalization: Relevant expenses incurred during a specified period (normally 30 to 60 days sum polices even extended days to 90 days), before and after hospitalisation the claim is payable. Critical Illness covered if the insured opts for the policy against it.

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Important Exclusion:
Some of the important exclusion under the policy are as under:
Pre existing diseases (from the date of enrolment) Diseases that commences during the first 30 days of inception of the policy. Treatment arising out of abortion, infertility etc. General debility, use of drugs or alcohol. Intentional self injury or injuries due attempt to suicide. Cost of contact lens or spectacles and hearing aids External Medical equipment used as post hospitalization care. Any dental treatment unless requiring hospitalization. Any treatment done without spending 24 hrs in a hospital. Naturopathy treatment / local form of medication. For a person suffering from Hypertension/ Diabetes expenses on treatment of Heart and Kidney and circulatory disorders. HIV and AIDS related medical conditions. War, strike, riot, nuclear weapons induced hospitalization Congenital diseases Treatment of mental illness

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COMPARISION CHART OF HEALTH INSURANCE(Chart 1.1)

Note: All the quotation are inclusive of service Tax. PSU = Public Sector Units

USP/FEATURES

ROYAL SUNDRAM PSUs

HEALTH SHIELD GOLD MEDICLAIM

BAJAJ ALLIANZ
HEALTH GUARD

IFFCO-TOKIO
MEDICLAIM

AGE LIMIT

3month-75years

3month80years YES

3month-55years YES

3month-70years YES

Reimbursement of YES Hospital bills due to illness or injury Cashless facility YES

YES YES

YES YES

YES YES

Tax Exemption(under YES sec 80D upto Rs.15000 and up to 20000 for Senior Citizen *)

Pre and Post Pre 30 and Post 60 Pre 30 and Pre 60 and Post Pre 60 and Post days Post 60 days 90 days 60 days Hospitalization Charges Family Discount 10% for 3 or more 10% for 2 or 10% for 2 or 5% for two person more person more person person and 10% for three or more person 1% of Up to Rs 1000 Average sum after four free insured of claims a year four claims free year 1% of Average sum insured of four claims free year

Free Health Check Not Available up

Pre existing Disease From 6th onwards cover(condition apply)

year From 5th year From 5th year From 5th year onwards onwards onwards Above years 45 Above 45 years Above 55 years

Pre Insurance 60 years onwards Medical Test

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USP/FEATURES

ROYAL SUNDRAM PSUs

HEALTH SHIELD GOLD MEDICLAIM

BAJAJ ALLIANZ
HEALTH GUARD

IFFCO-TOKIO
MEDICLAIM

Critical Extension Single Applicant Ayurvedic Treatment

Illness Not Available Woman Not Covered Excluded

Not Available Covered Excluded Yes Not Available

Not Available Covered Excluded Yes Not Available

Available Not Covered Covered Yes Available

Day Care Treatment Yes Daily hospital Not Available Allowances Proposers Age Cannot be than 55 yrs

more No such No condition condition Not Available

such Cannot be more than 55 yrs Available

Medical Emergency Not Available and Personal Assitance Services SUM ASSURED Maternity Cover

Not Available

Min Rs.75000, Max Min Rs.15000, Min Rs.50000, Min Rs.50000, Rs. 5 lacs Max Rs. 5 lacs Max Rs. 10 lacs Max Rs. 5 lacs NO No Maternity cover for clints Rs 20000 and for clients above Rs 2 lacs can avail 10% of the sum assured In Rs.

Benefits Yes upto Rs 20000

PREMIUM for In Rs. SUM ASSURED RS 1 lac At age Yrs(approx) At age (approx) 35 2,158 55Yrs 2,999

In Rs.

In Rs.

1,547 3,552

1,633 3,138

1,477 2,616

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COMPARISION CHART OF HEALTH INSURANCE(Contd.)

Note: All the quotation is inclusive of service Tax.

USP/FEATURES

RELIANCE
INDIVIDUAL MEDICLAIM

ICICI LOMBARD
HEALTH ADVANTAGE PLUS

AGE LIMIT Reimbursement of Hospital bills due to illness or injury Cashless facility Tax Exemption (under sec 80D up to Rs.15000) Cumulative bonus

3month-65years YES

5years - 65years and renewal up to 70 years Up to Rs 10,000 OPD bills

YES YES

YES YES

5% bonus for each claim free 10% discount on premiums from 3rd year if no claim is made year Pre 30 and Post 60 days 10% for 2 or more person For any one insured family member

Pre and Post Pre 30 and Post 60 days and post Hospitalization Charges 60-90 days depending on plans Family Discount Free Health Check up 10% for 3 or more person Not Available

Pre existing Disease 2/4 continuous after continuous From 3rd year onwards cover(condition apply) renewal Pre Insurance Medical 45 years onwards Test Above 55 years

Ayurvedic Treatment

Excluded

Excluded

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USP/FEATURES

RELIANCE
INDIVIDUAL MEDICLAIM

ICICI LOMBARD
HEALTH ADVANTAGE PLUS

Critical Extension Single Applicant

Illness Covered

Not covered

Woman Not Covered

Covered

Day Care Treatment Daily Allowances Proposers Age Medical Services SUM ASSURED Maternity Cover hospital

Yes Available

No Not Available

Cannot be more than 55 yrs

No such condition Not Available

Emergency Available

and Personal Assistance

Min Rs.1, Max Rs. 5 lacs

Min Rs.2 lacs, Max.Rs.12 lacs. NOT AVAILABLE

Benefits NOT AVAILABLE

PREMIUM for SUM In Rs. ASSURED RS 1 lac At age 35 Yrs(approx) At age 55Yrs (approx) 700-900 1290-1490

In Rs. (For Rs.2 lac)

15000(with OPD bills) 15000(with OPD bills)

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1.2 STATEMENT OF THE PROBLEM: It is always very difficult to make insurance investment decisions in this world of investment alternative companies. It demanded investors to be knowledgeable and tact full regarding the insurance market. Since, many insurance investments are introduced with in a very short span of time, people even having lot of money are confused to invest their hard earning money in effective manner. This confusion made researcher to choose this particular field study in this regard an effort is made to put some light on different investment companies for the sake of bringing down the confusion level among the investors. In order to recommend a suitable Insurance company to an investor, one must be aware of the needs of the customer and the importance of his attributes, the current insurance situation and ascertaining attitude towards risk involved in an investment while he makes his Insurance decision. A descriptive study is conducted at Bajaj capital, Bangalore, with the major Health Insurance Companies, to analyze the effectiveness of their Health Insurance.

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1.3 OBJECTIVE OF STUDY

A project cum Training is an essential part of MBA Curriculum. This study was conducted on A study of retail outlet for Bajaj Capital Insurance Broking Ltd. (BCIBL) a unit of Bajaj Capital Ltd (BCL) at Rajajinagar, Bangalore.

On the following objectives studies undertaken are:

o To study the consumer preference towards Health Insurance. o To study the wide spectrum of Health Insurance and its polices by various company. o To examine how the consumer in market rate the investment in Health Insurance. o To study the best sold policy feature in the market and o To evaluate Bajaj Capital (Rajajinagar Branch) effectiveness in selling of Health Insurance Products.
1.4 SCOPE OF STUDY:
The scope of the study is limited to the BRANCH OF INDIRANAGAR at Bangalore only. The companies, which issue Health Insurance, have been considered in the study. The respondents have been mostly the clients and customers of BCL. The study is focused on analysis of these companies on a single & same policy. The study is focused primarily on analysis of various insurance avenues along with Health Insurance to study the consumer preference towards Health Insurance with reference to insurance policies. The findings will reveal about Insurance investments as a better option.

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1.5 LIMITATIONS OF THE STUDY:

Free, continuous and reliable information wasnt always available. Lack of adequate information was a hindrance to arrive at a proper conclusion. Study restricted to Rajajinagar Branch (Bangalore city) only. The preference of consumers regarding various company policies may vary by their own analysis and observations from time to time. Confidentiality of certain information was a hindrance to derive information conducive for my project. The time span for the survey was short and hence only the major aspects are considered, not all the aspects were considered. As the questionnaire was used to collect data, data might be unreliable as the respondents might have been biased in answering the posed questions. The questionnaire analysis is subject to respondent errors in responding.

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CHAPTER2 COMPANYPROFILE
Brief about the Company:
Bajaj Capital is a truly independent and unbiased investment advisory company. It is among the pioneers of the investment advisory and financial planning industry in India. It was established in the year 1964. For over four decades, the Company has been serving Indian investors, it have been helping people realize their aspirations by helping them make their wealth grow, and plan their financial lives, and thus giving shape to the vision of its founder-chairman, Mr. K.K. Bajaj. Bajaj Capital is one of Indias leading Financial Services companies offering Free Advice on Investments, Insurance, Tax Saving, Retirement Planning, Financial Planning, Childrens Future Planning and other services. It also has a wide range of products and services for Corporate, High Net worth Individuals, and NRIs all under one roof. At Bajaj Capital, They believe in dreaming big. Dreams inspire them to excel. They ignite hope and kindle in the passion to stretch their limits. They also believe that nothing can or should stop us from realizing one dream and financial constraints should be the last things to stop anyone, by helping them make their wealth grow, and plan their financial lives. Today, it is a one of the largest financial planning and investment advisory companies in India, with a strong presence all over the country. It takes its pride in serving their customers both individual and institutional and is known for our strong professionalism and work ethics. There are a comprehensive range of services including financial planning and investment advice, and the entire gamut of financial instruments and investment products of almost all major companies, both public and private. In addition, they also provide investment assistance by helping the customers to complete all the formalities, and keep regular track of their investments. These services and products are delivered through our network of 109 Bajaj Capital Investment Centers located all across 50 cities the country. They have 7, 00,000 individual investors across the country. 3,000 corporate and institutional investors. And 1200 highly Page|25

qualified professionals - CAs, MBAs, CFPs, CSs, CFAs. A SEBI-approved Category I Merchant Banker. It raises resources for over 1,000 top institutions and corporate houses every year, and offer specialized services to Non-Resident Indian (NRIs) and High Net worth Clients. As a true partner, they promise to use our knowledge for customers benefit. Be it advice on the right insurance products or looking after your rights and interests in case of a claim, they state that well be by your side... whenever you need us.

Bajaj Capital Group has Four Entities: Bajaj Capital Limited (BCL):
A SEBI - approved Category I Merchant Banker, investment advisors and financial planners. That's exactly where we at Bajaj Capital step in. They call it Risk Management. Where they help their customers to identify the potential risks and pass some of them on to insurance companies. It is considered as the customer rights to receive independent, unbiased and professional advice.

Bajaj Capital Insurance Broking Limited (BCIBL):

As IRDA licensed Insurance Brokers, they are customers representatives unlike an agent who represents an insurance company. At BCIBL, an IRDA licensed "Composite Insurance Broker" bearing licence number CB 042/02. They enjoy the 'Preferred Insurance Broker' status with many of the Insurance companies. This, in essence, translates into a greater benefit for Customers. In fact, they enjoy a transactional relationship with almost all the Insurance companies present in India. Therefore proud to say that many companies have come up with insurance products based on our feedback. They have a strong operational and servicing team, and an all-India reach. They also have the support of a strong IT infrastructure and responsive call centres. As such, they are easily accessible.

Bajaj Capital Investor Service Limited:

An NSE member for Stock Broking (JUST TRADE).It aims to make investing easy, quick and accessible. It offers advice and allows its customer to take advantage of a wide range of investment avenues, including Equity, IPOs, Mutual Funds, Bonds, etc. What's more, the customers can now invest in the choicest options from the comfort of their home and at the click of their button. Page|26

Bajaj Capital Leasing and Finance Limited:

Real estate in legal terms - that encompasses land along with anything permanently fixed to the land such as: Natural resources, buildings etc. Investments are made in Real estate because of a Reside in the Home. Tax planning, Wealth Creation, Regular Income Generation, Capital Gains and Estate planning.

COMPANY KEY PERSON PROFILE:

Mr.
Chairman

K.K.

Bajaj

A visionary par excellence, a pioneer and a leader, Mr. K.K. Bajaj has been instrumental in shaping Bajaj Capitals emergence as one of Indias largest Investment Advisory companies. He is a highly respected figure in the field of institutional and personal finance and Company FDs. His emphasis on honesty, ethics and values are the guiding principles of the organization. Mr. Bajaj is also a prolific writer and has written over 200 articles on diverse issues such as Personal Finance, Economic Affairs, and Health.

Mr.
Managing Director

Rajiv

Deep

Bajaj

A qualified Financial Planner, Mr. Rajiv Deep Bajaj was the first to introduce the concept of Financial Planning in India. In fact, he is the Founding Chairman of the Association of Financial Planners (AFP). He is also amongst the first batch of 25 Certified Financial Planners (CFP) designation holders in India. A Post-graduate in Management and holder of an International Certificate for Financial Advisors from the Chartered Insurance Institute, London, Mr. Rajiv Deep Bajaj has played a pivotal role in expanding Bajaj Capital's reach across the country. Page|27

His youthful energy, dynamic leadership, vision and 16 years strategic management experience in Banking, Financial Advisory, Insurance Broking and Financial Planning have strengthened Bajaj Capital.

Mr.
Joint Managing Director

Sanjiv

Bajaj

Mr. Sanjiv Bajaj started his career in 1995 as managerial trainee, worked on various projects which included developments at alternate channel of distribution like Broker's associations...etc. From here, he moved on to Investment Advisory services, which included understanding the client's needs, and by using various tools of financial planning to offer them a solution to meet his requirements. Mr. Sanjiv Bajaj is versatile personality with diverse areas of interest. He is a Post-graduate in Business Management with specialisation in Finance, and holds an International Certificate for Financial Advisors from the Chartered Insurance Institute, London. Thanks to him, Bajaj Capital is today the largest individual agent for LIC. Mr. Sanjiv Bajaj has a keen interest in IT, and has played a major role in implementing the ERP software and Ecommerce activities in the company.

Mr.
CEO & Director

Anil

Chopra

Mr. Anil Chopra is the Chief Executive Officer & Director of Bajaj Capital Limited; He joined the Company in 1984. Mr. Chopra has been instrumental in expanding the branch network of

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Bajaj Capital Ltd. all over India. A Chartered Accountant and a Certified Financial Planner, Mr. Chopra is credited with introducing international accounting and HR practices in the organization. His most valuable contribution, however, has been in building up a financially literate society and making Bajaj Capital a strong retail brand. He is considered an authority, and is widely sought after by the media for quotes on key developments in the industry.

Bajaj Capital's Mission Statement :

The single focus of our organization is to be the most useful, reliable and efficient provider of Financial Services. It is our continuous endeavour to be a trustworthy advisor to our clients, helping them achieve their Financial goals.

Their Aim:
To serve our clients with utmost dedication and integrity so that we exceed their expectation and build enduring relationships. To offer unparallel quality of service though complete knowledge of products, constant innovation in service and use of the latest technology. To always give honest and unbiased financial advice and earn our client's everlasting trust. To serve the community by educating individuals on the merits of financial planning and in turn help shape a financially strong society. To create value for all stake holders by ensuring profitable growth.

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To build an amicable environment that accords respect every individual and permits their personal growth.

To utilize the power of team work to function as a family and build as a seamless organization.

Set of Values:
We believe in growing people, as the talent of every team member is a "National assets" needs to be matured, utilized and recognized to the fullest and they are the one to get us Permanent Profits" "To be conscientious and ethical in all; dealings by treating clients' money with same importance as your retired Father's savings." "To utilize the power of team work to function as family and build a seamless organization creating value for all the stakeholders." "To be worthy of trust of our valued clients as we believe that experience can be bought but trust has to be earned."

The LOGO DEPICTS:

The logo depicts Lord Ganesha who is the source of all our values and ethics in business. The large ears of Lord Ganesha remind us to hear more. We listen carefully to our clients to understand their needs. The weight of the trunk on the mouth symbolises silence. We work silently, without blowing our own trumpet. The long trunk symbolises continuous exploration. We explore all avenues to provide the Page|30

best investment opportunities for our clients. The heavy posture of Ganesha symbolises stability. We help our clients to attain financial stability through wise investments. Lord Ganesha is known as the remover of obstacles and bestower of prosperity. We emulate His example and try our best to help our clients attain prosperity by proper financial planning. The logo has a yellow background. Yellow is the colour of gold, which symbolises wealth. According to Vedic lore, it is also the colour associated with Brihaspati, the guru and counsellor of the Gods. We offer our clients sage counsel to make their wealth grow. The letters are in red. Red is the colour rajas symbolising power and incessant activity. It symbolizes our aggressive quest for your well-being and happiness. The white streak represents the trunk of Lord Ganesha. White is the colour of satva guna, and implies our selfless commitment to your life.

MILESTONES:
The Achievements of Bajaj Capital:
Bajaj Capital has contributed to the growth of the Indian Capital Market at every step: 1965 In 1965, they were the first to innovate the Companies Fixed Deposit. Today, they are playing an active role in the growth of the Indian Mutual Fund industry. They are also working closely with private insurance companies to deepen India's insurance market. 1964 Bajaj Capital sets up its first Investment Centre in New Delhi to guide individual investors on where, when and how to invest. Page|31

India's first Mutual Fund, Unit Trust of India (UTI) is incorporated in the same year. 1965 Bajaj Capital is incorporated as a Company. In the same year, the company introduces an innovative financial instrument the Company Fixed Deposit. EIL Ltd. (Oberoi Hotels, then known as Associated Hotels of India Ltd.) becomes the first company to raise resources through Company Fixed Deposits. 1966 Bajaj Capital expands its product range to include all UTI schemes and Government saving schemes in addition to Company Fixed Deposits. 1969 Bajaj Capital manages its first Equity issue (through an associate company) of Grauer & Wells India Ltd.; right from drafting the prospectus to marketing the issue.

1975 Bajaj Capital starts offering 'need-based' investment advice to investors, which would later be known as 'Financial Planning' in the investment world. 1981 SAIL becomes the first government company to accept deposits, followed by IOC, BHEL, BPCL, HPCL and others; thus opening the floodgates for growth of retail investment market in India. Bajaj Capital plays an active role in all the schemes as 'Principal Brokers' 1986 Public Sector Undertakings (PSUs) begin making public issues of bonds MTNL, NHPC, IRFC offer a series of Bond Issues. Bajaj Capital is among the top ranks of resource mobilizes. 1987 Page|32

SBI leads the launch of Public Sector Mutual Funds in India. Bajaj Capital plays a significant role in fund mobilization for all these players. 1991 SBI issues India Development Bonds for NRIs. Bajaj Capital becomes the top mobilize with collections of over US $20 million. 1993 The first private sector Mutual Fund Kothari Pioneer is launched, followed by Birla and Alliance in the following years. Bajaj Capital plays an active role and is ranked among the top mobilisers for all these schemes. 1995 IDBI and ICICI begin issuing their series of Bonds for retail investors. Bajaj Capital is the comanager in all these offerings and consistently ranks among the top five mobilizes on an allIndia basis. 1997 Private sector players lead the revival of Mutual Funds in India through Open-ended Debt schemes. Bajaj Capital consolidates its position as India's largest retail distributor of Mutual Funds. 1999 Bajaj Capital begins marketing Life and General Insurance products of LIC and GIC (through associate firms) in anticipation of opening up of the Insurance Sector. Bajaj Capital achieves the milestone of becoming the top 'Pension Scheme' seller in India and launches marketing of GIC's Health Insurance schemes. 2000 Bajaj Capital implements its vision of being a 'One-stop Financial Supermarket.' The Company offers all kinds of financial products, including the entire range of investment and insurance products through its Investment Centres. Bajaj Capital offers 'full-service merchant banking' Page|33

including structuring, management and marketing of Capital issues. Bajaj Capital reinvents 'Financial Planning' in its international sense and upgrades its entire team of Investment Experts into Financial Planners. 2002 The Company focuses on creating investor awareness for Financial Planning and need-based investing. To achieve this goal, the company introduced the International College of Financial Planning. The graduates of this institute become Certified Financial Planners (CFPs), a coveted professional qualification. 2004 Bajaj Capital obtains the All India Insurance Broking License. Simultaneously, a series of wealth creation seminars are launched all over the country, making Bajaj Capital a household name as Bajaj Capital Insurance Broking Ltd. 2005 Bajaj Capital launches 360 Financial Planning, a software-based programme aimed at encouraging scientific and holistic investing. 2007 Stock Broking unit Just trade off line was launched. Online Financial Planning formally was opera table. 2008 Just trade online was formally launched. Bajaj Capital enters Real Estate in buying and selling of Properties through approved builders and also making they avail loan facility from banks like ICICI and HDFC.

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They have been providing to their customers:

One Stop Shop for All Financial Products: Honest, ethical dealings. Prompt courteous service. Unbiased, independent and need-based advice. Sound, research-based advice. Need analysis before Recommendation. Advisory before Product. Unbiased and Research based Product selection. Pan India reach. Free Financial Health check up for all. Authorized MIN (Mutual Funds Identification Number) processing service. Services from PAN card to IT return Filing. Point of Service for KYC (Know Your Customer)

In house SOFTWARE they have :

Financial planning. Income tax calculator. Crorepati Planner. SIP calculator.

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3.2 PRODUCT PROFILE PRODUCTS RANGE:

Bajaj Capital does not have any financial products of its own. It provides financial services and advice free to its esteemed clients. But it deals with various financial products offered by various Companies under one roof. Which are:

PRODUCT LINE: Govt. Savings Schemes : PO and RBI Life Insurance for All Companies General Insurance for All Companies Pension Schemes Mutual Funds for all Companies Fixed Deposits and Tax Saving Schemes Equity IPOs Cash Flow Planning Investment Planning Tax Planning Children Future Planning Retirement Planning Risk Protection Planning Real Estate Financing and Leasing Company Fixed Deposits & Bonds DMAT and Trading A/C Real Estate & Home Loan

SERVICES Investment Planning Retirement Planning Insurance Planning Childrens Future Planning Tax Planning Short Term Cash Flow

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Corporate Strategy:
We believe in Financial Planning approach from "Sales based advice to advice based sales" We offer 'Best of Breed' products to our clients after through due diligence. We strive for stable but solid organic growth. "We choose to be the tortoise in the Tortoise and Hare story" Financial Planning is our competitive edge. Our aim is to be a Financial Planner for the privileged few many. Bajaj Capital has only one product "FREE ADVICE" We choose from over 1400 financial products to implement our 'Advice'

MAJOR COMPETITORS in the market: RELIGARE. ANAND RATI SECURITIES. KARVY THE FINAPOLIS. INDIA BULLS WAY 2 WEALTH. INDIA INFOLINE

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 CHAPTER 4 RESEARCH METHODOLOGY

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CHAPTER 4 RESEARCH METHODOLOGY

RESEARCH DESIGN
We define marketing research as the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

METHODOLOGY OF RESEARCH:
The researcher has gathered secondary data and primary data. Secondary data are data that were collected from which was available from the company website, prospectus and journals. The Primary data were freshly gathered for a specific research project through questionnaire and telephonic interview. An analytical research was carried out first to gain insight and proper understanding of the Health Insurance and its different parameters connected. This was done through personal interaction with the clients and other stakeholders at Bajaj Capital. This was followed by a comparative study analysis between the insurance companies. Several graphs and tables were prepared for presenting the findings.

Sources of Data Collection: The study was done based on the collection of Primary and Secondary Data.

Primary Data:
Primary Data was collected with the use of questionnaire and personal interaction with the company employees; walk in customers and existing clients and through telephonic interview. {Specimen of the questionnaire is attached in APPENDIX}.

Secondary Data:

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Secondary data was collected by: - Journals, Census, Bajaj Capital database, web links and companies prospectus (details are attached in Bibliography of this project).

Tools and techniques:

Questionnaire was used as a tool to collect primary data. The secondary data were collected by journals, websites and from company prospectus.

Type of Research:
Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research do not answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity.

SAMPLING PLAN
After deciding on the research approach and instruments, the marketing researcher has designed a sampling plan.

1. Sampling unit:
The target populations that will be sampled are the existing clients of BAJAJ CAPITAL at Rajajinagar Branch.

2. Sample size:
Samples size is estimated by using the statistical tools. As the population is finite (i.e.9000 as on 15/06/2010), this is size would provide good reliability, with a credible sampling procedure. Thus the researcher has used the formula to select the size of population. (The formula is stated below)

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3. Sampling procedure:
The sampling method was employed to collect the data. The population is collected from Bajaj Capital clients, and the researcher draws a sample of 165 persons by using the formula:

n = Z22N / (N - 1) e2 + Z2 2
Confidence level Standard deviation Error Z = 95% = 0.66 e = 0.10

where, n = sample size (1.96), (as n-1/6 where n = 5; thus 5-1/6 = .66), (i.e. 10%)

To collect the response of questionnaires from the clients the researcher used telephonic interview and direct interview method. Probability sampling has been allowed so that the calculation of confidence limits for sampling error. A sample size of 165 respondents was taken. The sampling units were the walk in customers, clients of Bajaj Capital Ltd. at Rajajinagar branch, Bangalore. The population (9000) for which this sample size (165) was considered a fair representative of the above mentioned area.

OPERATIONAL DEFINATIONS OF STUDY:

Risk: Risk in terms of Health Insurance refers to unpredictable diseases or injuries that the insured may have. Premium: The fee paid by the insured to the insurer for covering the risk. Health Insurance: Insurance that assures a sum of money against the treatment of a insured health and injuries. Critical Diseases: diseases which are usually very expensive and require critical operations. E.g. Cancer, Transplantation of Kidney, Heart, bypass surgery or coma etc.

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CHAPTER 5 DATA ANALYSIS & INTREPRETATION

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CH HAPTER 5 DATA ANALYSIS A S & INTRE EPRETAT TION Q1.

D you hav Do ve any Hea alth Insur rance Polic cy?

YES 60 0 NO 105

HEALTHINSURA ANCE

Analysi is:
From the tab ble, we can find out tha at the consu umers who have h health policy are 60 6 in rance policy y. numbers out of 165. Which implies that 105 person do not have any Health Insur

In nterpretat tion:
From the gra aph, we can understand that out tota al sample siz ze (i.e. 165 persons) only 60 persons had h Health Insurance wh hich implies that out of 100% only 36% 3 are insu ured and 64% % are uninsured d. It shows there t is a rea asonable gap p to be covered in the ma arket for Hea alth Insuranc ce.

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COM MPANYNAM ME NU UMBERSOF F CO ONSUMERS

ROYAL R SUN NDARAM 34

PSU'S 13

ICICI BAJAJ E LOMBAR RD OTHER RS ALLIANCE 3 3 7

Q2. If yes, y which company y Health In nsurance Policy P you u have?

A Analysis:

From the tab ble, we find d that Roya al Sundaram m has positi ively affecte ed the cons sumer through its i Health In nsurance po olicy followe ed by the PS SU, ICICI Lombard, L Ba ajaj Alliance e and others (R Reliance, TA ATA AIG etc c.).

Interpr retation:
From the gra aph, we can n understand d that Roya al Sundaram m Health ins surance poli icy is widely pr referred by the t consume ers in the ma arket.

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Q Q3.

If no o, would yo ou prefer to t have an ny Health Insurance e?

YES Y V VERY M MUCH 5

PREFER RTOHAVEANY A INS SURANCE

NO OTATALL 13

NOT MUCH 31

NEUTRAL L 16

YES S 40 0

Analysi is:
From the table, we can find f that the consumers are well ba alanced in th heir preferen nce of lth insurance e. The cons sumers who prefer yes very much and yes are e in 45 num mbers the Heal whereas the consum mers who do o not prefer are 46 num mbers which h are nearly y 50% taking g the neutral consumers c as a a custom mer who in future will l convert to o be a cons sumer of Health H Insurance e.

Interpr retation:
From the grap ph, we can understand u th hat preference is not mu uch among th he consumer rs but i not domin nated in the market. m The ere are equal lly preferenc ces for the Health H even the preference is Insurance. Page e|45

Q4. Do D you thin nk Health h Insuranc ce Policy is s necessary y in present days where diseases d an nd acciden nts are fre equent?

HEALTHIN NSURANCE E POLICYNECESSASY N

NOTAT A ALL 17 7

NOT M MUCH 27

NEUTRAL N 23

YES 61

YES E VERY MU UCH 3 37

Analysi is:
From the tab ble, we can find out tha at 96/165 (i.e. 58%) of the consum mers consider r that H Insura ance is impor rtant in prese ent days. having Health

Interpr retation:
From the gra aph, we can n understand d that out total t sample e size (i.e. 165 persons s) 96 persons have h a perce eption that it is important t to have a Health H Insura ance policy whether w they y had it or not. This implie es that peop ple are quite conscious about a having g health insu urance policy but there exis st a gap which has left th hem dubious s from havin ng the insura ance.

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Q5. Are A the He ealth Insur rance Poli icy premiu ums against the sum m assured satisfac ctory?

AGAINSTSUM ASSU URED

NOTAT A ALL 20 0

NOT M MUCH 61

NEUTRAL N 42

YES 32

YES ERY VE MU UCH 1 10

Analysi is:
From the tabl le, we can fi ind out that the t consume ers satisfacto ory for the sum insured has a rds steep inc clination as it reach the extreme e level of satisfact tion. downwar

Interpr retation:
From the gra aph, we can understand that out tota al sample siz ze (i.e. 165 persons) only 42 h the feel ling that the e sum assure ed against the premium paid p are not satisfactory y. The persons have consumer has dissat tisfaction ag gainst the po olicy of com mpany that sum s insured d are divided d and each sect tion has it ow wn sum insu ured. Page e|47

Q6.

A you aw Are ware of the e benefits of having Health In nsurance policy? p

YES Y V VERY M MUCH 28

BENEFITS SOFHEALTH INSU URANCE

NOTATALL 34

NOT MUCH 29

NEUTRAL 14

YES 60 0

Analysi is:
From the tab ble, we can find f out that the consum mers aware eness toward ds the benefi fits of Health In nsurance is high h as 78 out o of 165 (a approx. 48% %) when com mpared to the e consumers s who are not much m or not at a all aware of o the benefi its (63 appro ox 38%).

Interpr retation:
From the grap ph, we can understand u th hat out total sample size e (i.e. 165 pe ersons) aware eness of the ben nefits are we ell distribute ed among the e consumers s. Page e|48

Q7. Are A you aware of the Tax T Saving gs under Sec S 80 D ag gainst the premium p o of Health Insurance I Policy?

AWAREOFTAXSAVINGS

NO OTATALL 21

NOT MUCH 37

NEUTRA AL 21

YES Y 60

YES VERY MUCH 26

Analysi is:
From the tabl le, we can find f out that the consum mers are aware of the tax x benefits ag gainst the premium m which they t pay for the Health Insurance. I A there are 86 As 8 (52%) co onsumers wh ho are aware of f the benefit ts compared d to the 58 (35%) cons sumers who have no Id dea about th he tax benefits under u sec 80D.

Interpr retation:
From the gr raph, we ca an understa and that out t total sam mple size (i. .e. 165 per rsons) consumers are well aware a of the Health Insu urance policy y premiums which has th he benefits of tax u sec 80 0D savings under Page e|49

Q8. Are A you aw ware of the e Products s available e through BAJAJ CAPITAL C Ltd?

AWAREOF FPRODUCT TS

NOTAT A ALL 45 5

NOT M MUCH 41

NEUTRAL N 17

YES 40

YES SVERY MUCH 22

Analysi is:
From the tabl le, we can fi ind out that the consume ers do not have a clear knowledge k o the of products which they can avail th hrough Bajaj Capital Ltd d. As 86/165 5(approx. 52%) are not aware a of the products o of Ba ajaj Capital where w as; 62 2/165 (approx x 37%).

Interpr retation:
From the grap ph, we can understand u th hat out total l sample size e (i.e. 165 pe ersons) only 62 + 17 (neutr ral) persons have knowl ledge of the products wh hich are ava ailable throu ugh Bajaj Ca apital, where major portion of the consu umer lies un naware of th he products which w they can c avail thr rough this Orga anization. Page e|50

Q9. Having H Baj jaj Capita al as an ad dvisor cum m distribut tor for all the financ cial produc cts makes the t selection easier for f you?

ADVISOR RSUMFOR ALLTHEPRODUCTS P

NOTAT A ALL 28 8

NOT M MUCH 49

NEUTRAL N 31

YES 37

YES SVERY MUCH 20

Analysi is:
From the table, we can find f out that t 78 (i.e. 47%) do not consider c as that t having Bajaj Capital makes m them the product selection ea asier while 57 5 finds it re eliable and 31 consumers s feel that the it t is just good d.

Interpr retation:
From the gra aph, we can understand that out tota al sample siz ze (i.e. 165 persons) only 57 persons agrees a that having h Bajaj j Capital as TPA T (Third Party Admi inistrator) makes m it easie er for product selection, s where w as majority finds it i as same and a do not agree a that th he selection have been easi ier for them. . Page e|51

1O.

A you satisfied wit Are th the serv vices provi ided by th he Bajaj Capital Ltd d.?
NOT M MUCH 34 YES VERY MUCH 24

SATISFIED D

NOTATALL 29 9

NEUTRAL N 3

YES 75

Analysi is:
From the tabl le, we can find out that the t major co onsumer have shown sati isfaction wit th the service fr rom the Baja aj Capital.

Interpr retation:
From the gra aph, we can understand that out tota al sample siz ze (i.e. 165 persons) only 63 have shown dissatisf faction with the t services they avail fr rom Bajaj Capital Ltd. Page e|52

SAL LES ANA ALYSIS (2006-2007) ) Of O BCIBL L at Rajaji inagar Bra anch, Ban ngalore.
YEAR
01/04/2008 0 3 31/03/2009

TOTAL 134

HEALTH H
INSURANC CE

MALE E 35

FEMAL LE 8

ROYA AL 24 4

IC CICI 1 14

R PSU U OTHER

SUNDR RAM LOMBARD

43

Analysi is:
From the tab ble, we can find out th hat out of th he total Gen neral Insura ance only by y the Indiranag gar Branch only o 24% (i. .e. 43) are co onsumers of f Health Insu urance throu ugh Bajaj Ca apital, Indiranag gar Branch Ltd. L

Interpr retation:
From the pie chart we ca an understan nd the Health h Insurance is not havin ng a major sa ale in the financial year 200 06-2007.

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GENDE ER WISE CONSUME C ERS

Analysi is:
From the cha art, we can find out that out of th he total Hea alth Insuranc ce in Indiran nagar o 19% (i.e e. 8) consum mers are fema ales while th he rest 81% (i.e. ( 35) are males. m Branch only

Interpr retation:
From the pie e chart we can c understand the Heal lth Insurance e is not hav ving a major r sale among th he female ge enders while the major part of consum mer is forme ed by the Ma ale genders.

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HEALT TH INSURA ANCE CO OMPANIES S AND NU UMBER OF F CONSUM MERS

PSU: public p sector un nits

is: Analysi
From the tab ble, Royal Sundaram ha as a lead in the market, the other players p comb bined n not equiv valent to th he Royal Su undaram. Th hrough BCI IBL, The Royal R consumers are even ar. Sundaram has 24 insured in a yea

Interpr retation:
From the grap ph, we can understand u t policy of the f Royal Sun ndaram has best b policy which w referred by the t consumers of BCIBL L (a unit of Bajaj B Capital l Ltd.) is well pr Page e|55

SAL LES ANA ALYSIS (2008-2010) ) of BCIBL L at Rajajinagar Bra anch, Bangalore.
YEAR
01/04/2007 0 3 31/03/2008

TOTAL 153

HEALTH H
INSURANC CE

MALE E 39

FEMAL LE 3

ROYA AL 32 2

IC CICI 1

R PSU OTHER

SUNDR RAM LOMBARD

42

Analysi is:
From the tab ble, we can find out th hat out of th he total Gen neral Insura ance only by y the g Branch only o 22% (i. .e. 42) are co onsumers of f Health Insu urance throu ugh Bajaj Ca apital, Rajajinagar Rajajinag gar Branch Ltd. L

Interpr retation:
From the pie chart we ca an understan nd the Health h Insurance is not havin ng a major sa ale in ncial year 2007-2008 as the t major po ortion of gen neral insuran nce (i.e. 78% %) has consu umers the finan of differe ent policy. Page e|56

GENDE ER WISE CONSUME C ERS

Analysi is:
From the tabl le, we can fi ind out that out o of the to otal consume er only 3 (i.e e.7%) are fem males and male e is 39 (i.e.93 3%) of the to otal consume ers in the He ealth insuran nce.

Interpr retation:
From the above pie-cha art it can be e understood d that the major m consu umers for Health H e are male and a female are a only 3 (i. .e. 7% of the e total consu umers). The company sh hould Insurance concentra ate on this gap of male and a females.

TH INSURA ANCE CO OMPANIES S AND NU UMBER OF F CONSUM MERS HEALT

Page e|57

PSU: public p sector un nits

Analysi is:
From the tab ble, Royal Sundaram ha as a lead in the market, the other players p comb bined consumers are even n not equiv valent to th he Royal Su undaram. Th hrough BCI IBL, The Royal R Sundaram has 32 ins sured in a ye ear, and there is no even n close policy y which is more m preferre ed by the consu umers.

Interpr retation:
From the grap ph, we can understand u t policy of the f Royal Sun ndaram has best b policy which is preferr red by the co onsumers of BCIBL (a unit u of Bajaj Capital Ltd.)

Page e|58

CHAPTER 5 FINDINGS

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CHAPTER 5 FINDINGS
Following are some of the findings from the analysis and interpretations of the parameters or features studied.

ThroughPrimarydata(Questionnaire)at Rajajinagar Branch, Bangalore.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Health Insurance policy is lagging behind among the consumers. Royal Sundaram leads the market in the Health Insurance at Rajajinagar Branch. The preference of Health insurance among consumer is well balanced. The major percentage of consumer feels it necessary to have a Health Insurance in present days. The consumers dissatisfaction with the level of premium paid against sum insured are high. The knowledge of the Health insurance benefits are among consumers is high. The consumers are even aware of the Tax benefits under sec 80D in high percentages. The availability of the products through Bajaj Capital ltd. is less percentage among consumers. The consumer are well balanced in their perception that Bajaj Capital has made them easier to select the financial products Though consumer are satisfied in major percentage with the services of Bajaj Capital ltd.

ThroughSecondarydata(saleanalysis) at Rajajinagar Branch, Bangalore

1. 2. The total sale has increased for General Insurance, but Health Insurance policy sale remains same (in fact one consumer was less) The major number of consumer is male. Females are not even 20% of the male consumers. And this year the female consumer has further decreased to below 10% of the male consumers (with ref. to pg 52 and 55 tables) 3. Royal Sundaram has successfully remained the leader in acquisition of consumer in the last two years though BCIBL. This year the sale hiked from 24 to 32 policies. Page|60

SUGGESTIONS&RECOMMENDATION

Page|61

SUGGESTION AND RECOMMENDATION

The suggestion and recommendation that is preferred are: Customer and should be made more Health and Accidents conscious. Along with the advice for investment and life insurance the Health insurance should be equally given a portion of the investment. There is huge untapped market in the city as the chart (below) reveals the last three years statistics of Death, Accidents and Injuries respectively. Through which the calculation for 2008 (using regression method) shows that around 9000 injuries and accidents may occur this year in the city. Every one residing here has an equal probability of being the victim. The awareness should be conveyed to the mass through the marketing peoples.

A CHART TO SHOW THE ROAD STATISTICS IN BANGALORE

YEAR DEATH ACCIDENTS INJURIES 2007 836 5899 1937
)

2008 915 6046 1911

2009 981 6589 2157

2010* 1056 6868 2222

(Source: Bangalore Traffic Police

(* 2010 figures are based on regression calculation method)

The corporate presentation would be an effective of creating market for the Health Insurance. The Company Head should be approached and convinced about the product. The benefit will attract the corporate heads as the Health and the accidents of the employee would be taken care of by the Insurance companies, thus leading to the Insurance of mass of people. It is always patience that leads to success. There should be slow but continuous effort to convince the customer and convert them to an active client. They may not be ready to Invest in the very first day they do need a time to decide. The reputation of the company is a shield for all the products to find shelter here. Company should concentrate on the 25-30 year age group, because this is the time when people show more interest in investment and are rasher in driving. The Institution should be consulted and the executive should convince the students of PG levels to have Health Insurance. Page|62

The health hazards like pollution through automobiles and industries which are adversely affecting environment, FOOD HABITS (chewing tobacco and smoking etc.) and many other food changes can lead to ill health of any person. And thus by taking these policies they would be reducing the financial constraints of treatment.

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 CONCLUSION

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CONCLUSION:
Health Insurance has a unique feature, i.e., risk cover for the Health. Even though there is no return if there is no claim, but it is an important instrument in reducing the financial burden of the insured. As the sum assured is usually very high compared to the premium paid for it. The insured will even not feel the burden of paying the premium when they are made aware that the premium amount up to Rs. 15000 and for senior citizen (65 years and above as per IT Act) up to Rs. 20000 are exempted from Tax under sec 80D. There are various plans available in the market with different features and policies. By entry of private insurance players in the market, there are new and innovative products to attract the peoples, each companys policy is better than the other policy in some terms. People who are aware of the investment policies and its general benefits usually go for Health Insurance. The product is targeted to the daily bike riders and drivers, for accidental insurance and in general it envelopes the whole population who is above the age of 3 month with a guardian till 18 years by the minor and up to maximum of 70-80 years (varies according to companies).

The study reveals that the major Health Insurance market at Indiranagar Branch, Bangalore region is highly covered by Royal Sundaram when compared to others. The unique features and policies, like; the maternity cover, no pre-insurance medical check up to the age of 60 years. Cumulative bonus of 15% per claim free year etc. has increased consumer preference towards this policy through BCIBL. And moreover the people rate BCL as the easiest and reliable mode to avail these companies product. Thus they are having a clear edge over competitors in Bangalore. The just-in-time and effective and efficient delivery is highly appreciated and the recent award for being ranked in 24th as a best place to work in India shows the level of satisfaction the employee achieve in this company. Thus the retention of manpower is high in BCL. After sales service, the settlement of claim and other after sales service is efficiently done by the experts employee of this organisation. Comparative advantage of Bajaj capital sales personals are that they keep an eye on the whole market and to approach the client who even has an interest over any financial products. Two way communications occurs for transparency in business. Though Bajaj Capital has limited advertisement to let the consumers know what all are the products that the consumer can avail from the company. Bajaj Capital has Page|65

an edge as they have no product competitors and thus consumer has an unbiased advice for product. They act on their customer behalf and advice them the policy which fits their needs and profile. The effective marketing has laid the strong Brand Value in the market. The consumer feels the advice reliable and trust BCL AND ITS ALL ENTITIES.

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 APPENDIX

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QUESTIONNAIRE
Dear Sir/Madam this following questionnaire is an attempt to study the awareness and preference of Health Insurance and to measure the effectiveness companys policy. You are earnestly requested to fill it up in a spirit to help us.
a. Do you have any Health Insurance Policy? Yes Royal Sundaram No PSUs Bajaj Allianz ICICI Lombard b. If yes, which company Health Insurance Policy you have? Any other, please specify__________ c. If no, would you prefer to have any Health Insurance? Not At All are frequent? Not At All Not At All f. Not At All Policy? Not At All Not At All i. Not much Not much Neutral Neutral Yes Yes Yes very much Yes very much h. Are you aware of the Products available through BAJAJ CAPITAL? Having Bajaj Capital as an advisor cum distributor for all the financial products makes the selection easier for you? Not At All j. Not At All Name : Age : Thank You Not much Not much Neutral Neutral Yes Yes Sex: Yes very much Yes very much Male Female Are you satisfied with the services provided by the Bajaj Capital? Not much Not much Not much Neutral Neutral Neutral Yes Yes Yes Yes very much Yes very much Yes very much e. Are the Health Insurance Policy premiums against the sum assured satisfactory? Are you aware of the benefits of having Health Insurance Policy? Not much Neutral Yes Yes very much d. Do you think Health Insurance Policy is necessary in present days where diseases and accidents

g. Are you aware of the Tax Savings under Sec 80 D against the premium of Health Insurance

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BIBLIOGRAPHY Books:

Kotler, Keller, Koshy, Jha, Marketing Management - Pearson Education, 13th Edition, Page 647 Kevin Lane Keller Strategic Brand Management - Eastern Economy Edition, 2nd Edition, Page 788

Chernatory & McDonald Creating Powerful Brands Elsevier, 3rd Edition, Page 467 C.R. Kothari, Research Methodology, Pearson publication ltd,3rd Edition.

Published Materials

: :

Companies Prospectus EVALUATION OF TRAFFIC MANAGEMENT MEASURES IN ACCIDENT REDUCTION UNDER MIXED TRAFFIC

WEBIOLOGY

: : :

www.bajajcapital.com https://dcr.wealthmaker.in// www.irda.com

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