ACKNOWLEDGEMENT At the outset I would like to take this opportunity to thanks Mr.

Arvinder Pal Singh, Deputy Area Manager , Bajaj Allianz for making me realize new dimensions which earlier seemed beyond the scope of vision for me by allowing me to carry out my summer training at this rapidly progressing company.

I also thank Mr. Rajdeep Singh, Bajaj Allianz for helping me to carry out the project successfully through untiring guidance as my project head.

I place on record my deep sense of gratitude to Prof.(Dr.) Moinuddin Ahmad H.O.D M.B.A Azad Institute Of Engineering & Technology for his warm encouragement towards attending summer training programme I would like to express my gratitude to Mrs. Farida Khan , Faculaty , A.I.E.T. for her expert guidance on the technicalities of the project..

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PREFACE The importance of an academic course would gain advantage and acceptance of the true form, only through practical experience. Hence it is quite necessary to put the theories into talk. It is rigidly accepted that the theory widens ones thinking horizons viz. Concepts of marketing philosophies, but practice indicates the modern marketing and used in variety of settings of products. The summer training programmers are designed to give the manager the future of the corporate happenings and work culture. These real life situations are entirely different from the stimulated exercise enacted in an artificial environment inside the summer training programmers and designed, so that the manager to tomorrow do not feel ill case when the time comes to shoulder responsibilities. Practical exposure for the MBA students is very necessary because what they study in the classroom is not the reality. Situation in the market is unknown and very much unpredictable. So the practical experience is very much necessary this is made possible with the summer training project in Bajaj Allianz Life Insurance Co. in marketing related to search for the Potential Insurance Consultants. All organizations involves into business with some objective and one of the objectives is to endorse product or service which they produce. In my marketing project I tried to fid out the potential Insurance Consultants through questionnaire for the Bajaj Allianz Life Insurance Co. The product for the insurance company is its policies which company sale through its Insurance Consultants. So its quite clear that there will be as many Insurance Consultants. There will be increased sales.

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TABLE OF CONTENTS

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

About Life Insurance Sector Industry Overview Company Profile About Policies Of Bajaj Allianz Distribution Channel Research Methodology SWOT Matrix Findings Conclusion Limitation

11. Recommendations 12. Bibliography 13. Annexure

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WHAT IS LIFE INSURANCE First of all we should come to know that what is Life Insurance. The different definitions describing life Insurance are as:Insurance in which the risk insured against is the death of a particular person, the insured, upon whose death while the policy is in force, the insurance company agrees to pay a stated sum or income to the beneficiary. Life Insurance pays a specified sum to the beneficiaries upon the death of the insured. It is generally used to provide cash to your family in the event of your death. There are several types of life insurance whole life insurance provides a lifetime of protection as long as you pay the premiums to keep the policy active. They also accrue a cash value and thus offer a savings component. Term life insurance provides protection only during the term of the policy and the policies are usually renewable at the end of the term. Insurance on human lives including endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits for disability, and annuities.

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5 7

LIFE INSURANCE INDUSTRY IN INDIA Many may not be aware that the life insurance industry of India is as old as it is in any other part of the world. The first Indian Life Insurance Company was the Oriental life Insurance Company, which was started in India in 1818 at Kolkata. A number of players (over 250 in life and about 100 in non-life) mainly with regional focus flourished all across the country. However, the Government of India, concerned by the unethical standards adopted by some players against the consumers, nationalized the industry in two phases in 1956 (life) and 1972 (non-life). The insurance business of the country was then brought under two public sector companies, Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 percent annually. Together with banking services, it adds about 7 percent to the countrys GDP. In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life Insurance cover and the Health Insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuations Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The Committee recommended throwing open the sector to private players to usher in competition and bring more choice to the consumer. The objective was to improve the penetration of insurance as a percentage GDP, which remains low in India even compared to some developing countries in Asia. The key element of the reform process was Participation of overseas insurance companies with 6 7

26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy as the main idea behind the reform.

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A BRIEF HISTORY The origin of insurance is very old. The time when we were not even born; was has sought some sort of protection from the unpredictable calamities of the nature. The basic urge in man to secure himself against any form of risk and uncertainty led to the origin of insurance. The insurance came to India from UK; with the establishment of The Oriental Insurance Corporation in 1818. the Indian Life Insurance company act 1912 was the first statutory body that started to regulate the Life Insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were been established in India. Then the central government took over these companies and as a result the LIC was formed. Since then LIC has worked towards spreading Life Insurance and building a wide network across the length and the breath of the country. After the liberalization the entrance of foreign players has added to the competition in the market. The General Insurance business in India, on the other hand, 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. In 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. In 1972 the General Insurance Business in India with effect from 1 s t January 1973. it was after this that 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd, the New India Assurance Company Ltd, the Oriental Insurance Company Ltd. GIC incorporated as a company.

INSURANCE SECTOR REFORMS 8 7

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor was formed to evaluate the Indian industry and give its recommendations. The committee came up with the following major provisions: Private Companies with a minimum paid up capital of Rs. 1 bn should be allowed to enter the industry. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Only one state level Life Insurance Company should allow to operate in each state. Reforms were initiated with the passage of Insurance Regulatory and Development Authority (IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority, which has put in place regulations in line with global norms. IRDA : The IRDA since its incorporation as a statutory body has been framing regulations and registering the private sector insurance companies. IRDA being an independent statutory body has put a framework of globally compatible regulations.

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INSURANCE MARKET IN INDIA By any yardstick, with about 200 million middle class households, presents a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. With the per capital income in India expected to grow at over 6% for the next 10 years and with improvement in awareness levels, the demand for insurance is expected to grow at an attractive rate in India. An independent consulting company, the Monitor Group has estimated that the Life Insurance market will grow. WINDS OF CHANGE Reforms have marked the entry of many of the global insurance majors into the Indian market in the form of joint ventures with Indian companies. Some of the keys names are AIG, New York Life, Allianz, Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry of new players has rejuvenated the erstwhile monopoly player LIC. Which has responded to the competition in an admirable fashion by launching new products and improving service standards. Market Expansion : There has been an overall expansion in the market. This has been possible due to improved awareness levels thanks to the large number of advertising campaigns launched by all the players. The scope for expansion is still unlimited as virtually all the players are concentrating on large cities and towns except by LIC to an extent there was no significant attempt to tap the rural markets.

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New Product Offering: There has been a plethora of new players, mainly from the stable of their international partners. Customers have tremendous choice from a large variety of products from pure term insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional money-back policies, which is not considered very appropriate for long-term protection, health and savings. . Customer Service : Not unexpectedly, this was one area that witnessed the most significant change with the entry of new players. There is an attempt to bring in international best practices in service and operational efficiency though use of latest technologies. Advice and need based selling is emerging through much better trained sales force and advisors. There is improvement in response and turnaround times in specific areas such as delivery of first policy receipt, policy document, premium notice, final maturity payment, settlement of claims etc. However, there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels. Channels of Distribution : Till few years back, the only mode of distribution of life insurance products was through distribution Agents. While agents a continue number of to be the predominant channel, today innovative

alternative channels are being offered to customers. Some of them are bancassurance, brokers, the internet and direct marketing. Though it is too early to predict, the wide spread of bank branch network in India could lead to bancassurance emerging as a significant distribution mechanism.

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The introduction of private players in the industry has added to the colors in the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LIC. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in this sector. The new players have improved the service quality of the insurance. As a result LIC down the years have seen the declining phase in its career. The market share was distributed among the private players. LIC market share has decreased from 95% (2002-03) to 82% (2004-05). The following companies has the market share of the life insurance industry. Insurance Company Market Share (Fig. in %)

LIC ICICI Prudential Bajaj Allianz HDFC Standard Life SBI Life Birla Sun Life Max New York Life` TATA AIG Aviva OM Kotak Mahindra ING Vyasa Reliance MetLife

71.44 11.35 7.06 2.37 1.81 1.49 0.98 0.79 0.89 0.86 0.57 0.37 0.24

Market Share of Life Insurance Companies as of May 2007

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CURRENT SCENARIO OF THE INSURANCE INDUSTRY IN INDIA India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Innovative products and aggressive distribution have become the say of the day Indians, have always seen Life Insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice. Life Insurance industry is waiting for a big growth as many Indian and Foreign companies are waiting in the line for the green signal to start their operations. The Indian Consumer should be ready now because the market is going to give them all array of products, different in price, features and benefits. How the customer is going to make his choice will determine the future of the industry. CUSTOMER SERVICE Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerization of operations and updating of technology has become imperative in the current scenario. Foreign players an bringing in international best practices in service through use of latest technologies. The one time monopoly of the LIC and its agents are now going through a

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through revision and training programs to catch up with the other private players. DISTRIBUTION CHANNELS Till date insurance agents still remain the main source through which insurance products are sold. The concept is very well established in the country like India but still the increasing use of other sources is imperative. It therefore makes sense to look at well balanced, alternatives channels of distribution. LIC has already well established and have an extensive distribution channel and presence. New players may find it expensive and time consuming to bring up a distribution channel to have an advantage. At present the distribution channels that are available in the market are: Direct Selling Corporate Agents Group Selling Brokers and Cooperative Societies Bancassurance To make all these channels a success the companies have to be very alert and skillful to know how to use these channels in a proper way. Bancassurance is on of the most upcoming channels of distribution.

BANCASSURANCE: 14 7

India has an extensive bank network established over the years. What Insurance companies have to do is to just take advantage of the customers long-standing trust and relationships with banks. This is a mutually beneficial situation as banks can also expand their range of products on offer to customers, while the insurance company will also earn profits from the exposure. Another advantage is that banks, with their network in rural areas, help to fulfill rural and social obligations stipulated by the society. Insurance Regulatory and Development Authority (IRDA)

recently. Insurance companies should see banc assurance as a tool for increasing their market penetration in India. It is also good for the one who sees banc assurance in terms of reduced price, high quality product and delivery at doorsteps. Everybody is a winner here. The creation of banc assurance operations has made an important impact on the financial services industry at large. This is though a new concept but it has gained a lot of importance in the industry at present and has a great future. PRODUCT INNOVATION Customers have tremendous choice from a large variety of products from pure term insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional money- back policies, which is not considered very appropriate for long-term protection and savings.

RURAL MARKETING 15 7

Rural India seems to have an appetite for mobile phones, computers, and cars and to add to it we have insurance. In India with the private players having entered into the insurance industry, the expected explosion in job opportunities may not actually happen but for them the catchments area is the opportunities in the rural India. In India the insurance business can be said to be a marathon, not a sprint. This is because of the nature of the business being long term. However it seems that they if not anything, are only increasing their spending, though only out of the capital. As insurance companies go more and more rural in search of business, there will be opportunities in the rural sector. Already United India The Rural consumer is now exhibiting an increasing propensity for Insurance products. A research conducted exhibited that the rural consumers are willing to dole out anything between Rs. 3,500 and Rs. 2,900 as premium each year. In the Insurance the awareness level for Life Insurance is the highest in rural India, but the customers are also aware about motor, accidents and cattle insurance. According to a study nearly one third said that they had purchased some kind of insurance with the maximum penetration skewed in favor of life insurance. The study also pointed out the private companies have huge task to play in creating awareness and creditability among the rural populace. INFORMATION TECHNOLOGY AND INSURANCE: In the insurance industry today, there is a clear trend away from selling a broad range of products to a large volume of customers in a onesize-fits-all manner. Instead of focusing on their different products lines as silos (i.e., life, property and casualty etc) insurers are looking for ways to offer highly targeted insurance products that are tailored to the individuals customers with the highest propensity to buy them. Insurance industry is a data-rich industry, and thus, there is desire need to use the data for trend analysis and personalization.

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With increased competition among insurers, service has become a key issue. People today dont want to accept the current value propositions, they want personalized interactions and they look for more and more features and add ones and better service. Today managing the customer intelligently is very critical for the insurer especially in the very competitive environment. Companies need to apply different set of rules and treatment strategies to different customer segments. With the explosion of Website and greater access to direct or policy information, there is a need to developing better techniques to give customers a truly personalized experience. Personalization helps organizations to reach their customers with more impact and to generate new revenue through cross selling and up selling activities. To ensure that the customers are receiving personalized information, many organizations are incorporating knowledge database-repositories of content that typically include a search engine and lets the customers locate the all document and information related to their queries of request for services. Customers can hereby use the knowledge database to manage their products or the company information and invoices, claim records, and histories of the service inquiry. These products also may be able to learn from the customers previous knowledge database and to use their information when determining the relevance to the customers search request. The insurance sector remains a very competitive market and those companies that are able to best utilize their data and provide their customer with the most personalized options will have the distinct competitive advantage.

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STRATEGIC ALTERNATIVES: If one analyses the history of growth of the insurance industry since reforms, it is marked by all- round growth of all players. More or less all players have aggressively recruited and trained advisors, appointed agents, launched new products, improved customer service standards and revamped/expanded their distribution networks. Every player would like the customers to believe that its service standards are the best or that its agents are the most informed and ethical. In other words, each company is trying to be everything to everybody. Some players justify the above strategy on the basis that the Indian market is huge and it can accommodate everybody. Still, in a market where it is difficult to distinguish oneself sufficiently on service or any other parameter to be able to charge a premium, it will lead to unmitigated price competition to the detriment of all players. In the insurance industry where large amounts of capital are required, this is risky. While there is room for a few scale players with a finger in every pie, it is profitable for the players to focus on different segments to survive and thrive in a multi-firm open environment. While each company has to choose its own unique positioning based on its unique strengths. Variety-based Positioning This type of positioning is based on varieties in products and services rather than customer segments. It is a sensible strategy for those companies who have distinctive advantages or strengths in offering certain products and services. In the insurance industry too, it is possible to achieve a unique position by focusing on certain category of products. Through its superior fund management capabilities, the insurance company can deliver better returns on it investment-linked products and thereby for itself a leadership position in this segment. Then there is the entire category of pension products, which is widely touted to have immense growth potential in India due to imminent 18 7

pension reforms. It is possible to achieve profitable positioning by focusing and excelling in only pension products. Needs based Positioning This is the most commonly understood positioning and is based on the different needs of different groups of consumers. This can be done successfully if a company has unique strengths to service a group of customer needs better than others. The insurance needs of young family with small children will be quite different from that of a family in which the income-earner is close to retirement. However, in India most of the Life Insurance companies have a wide variety of products of different customer needs and there is no company focusing only on a particular customer needs. Access- based Positioning Positioning of customers can also be done by the way they are accessible that is different groups of customers may be accessible in different ways even though they may have similar needs. Access is typically a function of customer scale. There is excellent opportunity in the insurance industry to employ access-based positioning by targeting the rural insurance sector. The rural market for Life Insurance is very different from the urban market in terms of needs, income levels, distribution, penetration of media and so on. Except for LIC, no other player has paid any attention or focus on the rural sector. Contrary to common perception it is a big opportunity as emphasized repeatedly by such eminent strategies like C.K.Prahlad. Rural market can be a highly profitable position if one is able to carefully plan. CHOOSING THE RIGHT STRATEGY

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The right strategic choice is not a matter of positioning choice alone. It is the configuration of the entire value chain of the company through a different set of activities to deliver unique value to consumers. The set of activities cover all upstream and downstream activities, from the selection of the product mix. Some Life Insurance companies focusing on rural markets have adopted innovative means of distribution. Instead of appointing agents as is done typically, they have used Gramsevaks in different villages across the country to promote Life Insurance and act as their sales arm. So we can conclude that, the size of the market has grown and the size of the insurable population in India is indeed vast and the existing players have managed to cover about one-fourth of it. The falling interest rates, the collapse of many small time financial institutions, the scope for entering related areas like banking and pensions in a bid for synergy and the promise of the e-commerce are some of the other opportunities knocking at the doors of the insurance majors. A number of web sites are coming up on insurance, a few financial magazines exclusively devoted to insurance and also a few training institutes being set up hurriedly. Many of the universities and management institutes have already started courses in insurance. Life insurance has today become a mainstay of any market economy since it offers plenty of scope for garnering large sums of money for long periods of time. A well regulated Life Insurance industry which moves with the times by offering its customers tailor-made products to satisfy their financial needs is, therefore, essential if we desire to progress towards a worry-free future.

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COMPANY PROFILE

ABOUT BAJAJ ALLIANZ LIFE INSURANCE Mission: As a responsible customers focused market leader, we still strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money. Vision: To be Best Life Insurance company in India to Buy from. Work for . Invest in .

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Mr. Kamesh Goel, who was the CEO of Bajaj Allianz earlier has taken over as country Manager and is also the CEO of Bajaj Allianz Life Insurance Company. Bajaj Allianz Life Insurance Company Limited Bajaj Allianz Life Insurance Co. Ltd is a joint venture between two leading conglomerates-, and Bajaj Auto, one of the biggest two and threewheeler manufacturers in the world and Allianz AG, one of the worlds largest insurance companies. Bajaj Allianze Life Insurance Is the fastest growing private life insurance company in India. Currently have over 300000 satisfied customers. Have Customer care centers in 156 cities with 28000 Insurance One of Indias leading private life insurance companies.

Consultant providing the finest customer service.

Bajaj Allianz General Insurance Company Limited Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2 n d , 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up 22 7

capital of Rs.110 crores. Bajaj Auto holds 74% and Allianz holds the remaining 26%. AG, Germany. In its first year of operations the company has acquired the NO. 1 status among the private non-life insurers. As on 31 s t March 2003, Bajaj Allianze General Insurance maintained its leadership position by garnering a premium income of Rs.300 Crores. Bajaj Allianze also became one of the few companies to make a profit in its first full year of operations. Bajaj Allianz made a profit after tax of Rs.9.6 crores. Bajaj Allianze today has a network of 1000 offices spread across the length and breadth of the country. From Surat to Sliliguri and Jammu to Thiruvananthapuram, all the 1000 offices are interconnected with the Head Office at Pune.

Shareholders & Promoters Bajaj Auto Limited Bajaj Auto Limited is the largest manufacturer of two and threewheelers in India and also one of the largest manufacturers in the world. Bajaj Auto has been in operation for over 55 years. As a promoter of Bajaj Allianz General Insurance Company Ltd., Bajaj Auto has the following to offer: Vast distribution network. Knowledge of Indian consumers. Financial strength and stability to support the insurance business Allianz AG, Germany Allianz Group is one of the world's leading insurers and financial services providers. 23 7

Founded in 1890 in Berlin, Allianz is now present in more than 70 countries with over 177,000 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. In fiscal year 2005, Allianz's total revenues amounted to some 100.9 billion euros. At the end of 2005 Allianz Group had more than 1.26 trillion euros in assets under management. Of this, 743 billion euros were assets managed for third parties. 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". Global Presence Allianz Group is present on every continent and has companies and offices in about 70 countries. More information about our locations throughout the world is available by moving the cursor over the world map.

Business Fields:

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Property & Casualty Insurance When it comes to property and casualty insurance, Allianz is number one in Germany. Allianz also ranks as one of the world's leading global industrial risk insurers. Life & Health Insurance In life and health insurance, Allianz Group is among the top companies in Europe. Private and corporate retirement provision is emerging as a major market Asset Management & Banking Allianz Group's asset management activities are integrated under one roof at Allianz Global Investors. With Dresdner Bank, the Allianz Group has laid a broad foundation in order to address clients' needs on the investment market. Allianz AG is in the business of General (Property & Casualty) Insurance; Life & Health Insurance and Asset Management and has been in operation for over 110 years. Allianz is one of the largest global composite insurance with operations in over 70 countries. Further, the Group provides Risk Management and Loss Prevention Services. Allianz has insured most of the worlds largest infrastructure projects (including Honkong Airport and Channel Tunnel between UK and France), further Allianz insures the majority of the fortune 500 companies, besides being a large industrial insure, Allianz has a substantial portfolio in the commercial and personal lines sector, using a wide variety of innovative distribution channels. Allianz AG has the following of offer Bajaj Allianz General Insurance Company Ltd.: Set up and running of General insurance operations New and improved international products 25 7

 One of the worlds leading insurance companies More than 700 subsidiaries and 2 lac employees in over 70 countries worldwide Provides insurance to almost half the Fortune 500 companies A Partnership Based on Synergy Bajaj Allianz General Insurance Company offers technical excellence in all areas of General and Health Insurance as well as Risk Management. This partnership successfully combines Bajaj Autos indepth understanding of the local market and extensive distribution network with the global experience and technical expertise of the Allianz Group. As a registered Indian Insurance Company and a capital base of Rs.110 crores, the company is: Fully licensed to underwrite all lines of general insurance business including health with management control by Allianz AG About Bajaj Allianz Life Insurance: Bajaj Allianz Life Insurance Company has developed insurance solutions that cater to every segment and age-income profiles. Its products include Invest Gain (a unique life insurance plan where sustenance of income is combined in the same plan that also pays a lump sum), Cash Gain (Money Back), Child Gain (Childrens plan where sustenance of income is combined in the same plan that also pays a lum sum), Cash Gain (Money Back), Child Gain (Childrens Plan), Risk care (Pure Term), Life Time Care (whole Life), term Care (term with return of premium), Swarna Vishranti (Retirement Plan), Protector (Mortgage term insurance plan), UnitGain (Unit Linked Whole of Life Plan) and Unit Gain Single Premium. Bajaj Allianz Life Insurance is poised for an accelerated growth in the market and has already become the fastest growing private life insurance company in India. Bajaj Allianz Life Insurance has a wide pan India presence of office network in 156 citied of the country and is aided with a 26 7

strong and trained Agency network of over 28000 agents. Bajaj Allianz has also forged strong Banc assurance and Corporate Agency relationship and continues to build on new tie-ups for fast track growth and deep market penetration. Bajaj Allianz Life Insurance has launched a slew of need-based products to cater to each varied needs of the customer. Currently Bajaj Allianz Life Insurance has a product portfolio of 19 products and more need-based products are in the pipeline.

CORE COMPETENCIES AT BAJAJ ALLIANZ LIFE INSURANCE The Bajaj Allianz Difference Business strategy aligned to clients needs and trends in India and global economy industry Internationally background Fast, decentralized decision making Long-term commitment to market and clients Trust At Bajaj Allianz, they have realized that the customer seeks an insurer whom he/she can trust. Bajaj Allianz Limited is trusted name for over 55 years in the Indian market and Allianz AG has over 110 years of global experience in financial services. Together they are committed to provide the customer with time tested and trusted financial solutions that 27 7 experienced core team, majority with local

provide the customer all the security he/she need for their investments. And more Underwriting Philosophy Their underwriting philosophy focused on: Understanding the customers needs Underwriting what we understand Meeting the customers requirements Ensuring optimal coverage at lowest cost

Claims Philosophy The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims processing. They pride themselves on a friendly and open approach. They are focused towards providing the customer a hassle free and speedy claims processing. Their claims philosophy is to: Be flexible and settle fast Ensure no claim file to be seen by more than 3 people Check processes regularly against the global Allianz OPEX (Operational Excellence) methodology

Customer Orientation At Bajaj Allianz, the guiding principals are customer service and client satisfaction. All the efforts are directed towards understanding the

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culture, social environment and individual insurance requirements- so that they can cater to all the customers varied needs. Experienced and Expert Servicing Team Bajaj Allianz is driven by a team of experienced people who understand Indian risks and are supported by the necessary international expertise requires to analyses and assess them service engineers located in every major city. Superior Technology In order to ensure speedy and accurate processing o the customers needs, they have established worlds class technology, with renowned insurance software, which networks all our offices and intermediaries Using the Web, policies can be issued form any office across the country for retail products Unique, user friendly software developed to make the process of issue of policies and claims settlement simpler (e.g. online insurance of marine policy certificate)

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PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE

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LIFE INSURANCE POLICIES

Term Care This plan not only offers the customer life insurance cover at a low cost, but also provides for return of premiums on maturity. The premiums returns at maturity will be equal to the single premium or the sum total of equivalent annual premiums of the Economy Pack (excluding extra premiums charged if any). In case of premature death the policy term, the full sum Assured will be paid to the nominee. How does the plan work? The Bajaj Allianz Term care Plan offers the customer the convenience of choosing between two premium payment options. Regular Premium Payment : Premium payment throughout the selected term. Single Premium Payment : One time premium payment for the selected term at commencement. Apart from covering the risk of natural death, this plan also provides the customer the option to choose up to 5 additional benefits. The customer can select a specific combination of additional benefits best suited to his/her needs, available in 4 attractive packages to choose from. I. Economy : This is the basic plan, which is available for both the

regular and single premium payment options. II. Protect : This pack comes with the following 3 in-built additional benefits : 31 7

a) Accidental b) Accidental c) Waiver

death Benefit. Permanent Total/Partial Disability Benefit

of Premium Benefit (in case of accidental permanent

total disability)

The Protect Pack is available with the regular premium payment option only. III. Health : This pack comes with the following 2 in built additional benefits : a) Critical Illness Benefit. b) Hospital cash Benefit. The health Pack is available with the regular premium payment option only. IV. Total : This pack comes with the following 5 in-built additional benefits : a) Accidental Death Benefit. b) Accidental Permanent Total/ Partial Disability Benefit. c) Waiver of Premium Benefit (in case of accidental permanent total disability) d) Critical Illness benefit e) Hospital Cash Benefit The Total Pack is available with the regular premium payment option only. Benefits : Accidental Death Benefit Accidental Permanent Total /Partial Disability Benefit Waiver of premium Benefit 32 7

 Critical Illness Benefit Tax Benefits Surrender Loans

LOAN PROTECTOR The Bajaj Allianz Loan Protector plan is a mortgage term insurance plan that covers the outstanding principal amount of a loan. It is an economical way to protect the family from the burden of repayment of the loan in case of death of the loaner. The plan is designed to pay a sum insured that will be equal to the outstanding principal amount of the loan due. How does the plan work? The Bajaj Allianz Protector Plan offers the convenience of choosing between two premium payment options. I. Regular Premium Payment : Premium payment limited to

approximately 2/3 r d of loan tenure, while coverage continues for the full tenure of the loan. II. Single Premium Payment : One time premium payment covering the customer for the full tenure of the loan. Joint Life Availability The Customer has the option to cover the co-applicant of the loan under this plan. Under this option, both lives will be covered and the death benefit will be payable in case of death of either life. The policy terminates on death of either life.

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Days of Grace In case of non-payment of premiums, a grace period of 30 days will be allowed for the yearly, half yearly and quarterly modes (15 days for monthly mode). After that the policy will lapse.

Revival Of the Policy It is possible to revive a policy that has lapse due to non-payment of premiums within 5 years from the date of lapse. The revival will be effected subject to underwriting. In case of joint life, revival would be subject to underwriting on both lives. General Exclusion Within 15 days from the date of receipt of the policy, the customer have the option to review the terms and conditions and return the policy, if the customer disagree to any of the term and conditions, stating the reasons for his/her objections. The customer will be entitled to a refund of the premium paid, subject only to a deduction of a proportionate risk premium for the period on cover and expenses incurred on medical examination and stamp duty charges. Benefits : Death Benefit Premium Payment mode Tax benefits Surrender values/ paid up values

CHILD GAIN 34 7

Taking care of a child is perhaps the most important job a parent can have. It is but natural that a person would like to give his/her best, and therefore, this is the time when careful financial planning can help them to fulfill the aspirations that the customers have for his/her children. How does the plan work? The Bajaj Allianz Child Gain solutions help the customer to enjoy the joys of parenthood responsibility, with the reassurance of a secure future for their child. Common features in the 4 options of Bajaj Allianz Child gain Solutions. I. Limited Premium Payment Term Which means that the premiums are payable till the customers child attains age 18 years. II. The customers contributions grow by way of compounded annual bonuses, which will be paid to him with the first guaranteed payout (policy anniversary following age 18 of your child), for in-force policies. In addition to the annual bonuses, a terminal bonus may also be paid. III. The customers are also eligible for Tax benefits under Section 88 and Section 10 (10 D) of the Income Tax Act. IV. Assuring Your Childs Future In an uncertain world, the prime interest of your child cannot be jeopardized in any way. Which is why the Bajaj Allianz has built in some added benefits in all their plans to protect the interests of your childs future, by counter insuring you- the policyholder.

35 7

Premiums For the customers convenience they have provided three Premium Payment Modes can be Yearly, Half yearly or Quarterly. They also offer a Monthly Premium Payment Mode under salary deduction schemes.

Surrender They offer the customer the choice of surrendering the policy provided three full years premium have been paid (Two years for premium terms of 5 and 6 years). The guaranteed minimum surrender value is 30% of all premiums paid excluding the first year premium and excluding the premiums for premium waiver benefit and Family Income benefit and additional benefit opted for. The guaranteed minimum surrender value after the premium payment term will be the discounted value of the outstanding installment payments discounted at 10 % p.a. rate of interest. Loans Loans are not available with Bajaj Allianz Child Gain solutions. 15 days Free Look Period : Within 15 days from the date of receipts of the policy, the customer have the option to review the terms and conditions return the policy, if he/she disagree to any of the terms and conditions, stating the reasons for his/her objections. The customer will be entitled to a refund of the premium paid, subject only to a deduction of proportionate risk premium for the period on cover and the expenses incurred on medical examination and stamp duty charges. Exclusions 36 7

The Death Cover is subject to the following Exclusion : Suicide within one year from commencement of risk, whether sane or not this product brochure gives the salient feature only. The relevant policy document is the conclusive evidence of the contract, and provides in detail all the conditions. Exclusion related to each of plans under the Bajaj Allianz Child Gain Solutions. INVEST GAIN It takes only a moment to make promises and a lifetime to keep them. Keeping promises made to your loved ones is not just a responsibility, but a commitment that you have to live up to. When you promise to see your family through thick and thin you need to make sure that you have planned for all the eventualities that may befall on them. You need to be prepared that even if there ever is an instance that you are not there with them you have saved enough to see them through their entire life.

Accidental Death Benefit : Accidents are always sudden and sometimes fatal. You cant lessen the emotional shock, but you can certainly soften the financial one. Bajaj Allianz Accidental Death Benefit gives the loved ones something to start with after the permanent loss of income by paying an account equal to Sum Assured. (Subject to a maximum of Rs. 50,00,000/under all policies with Bajaj Allianz taken together). Accidental Permanent Total/Partial Disability Benefit : Accidents are unpredictable and so are the consequences. They may lead to a disability partial or total. This benefit provides a financial cushion against such misfortunes. You will get 50% of the Sum Assured in case of partial disability and 100% in case of total disability. (Subject to a 37 7

maximum of Rs. 25,00,000/- for partial and Rs. 50,00,000/- for total disability under all policies with Bajaj Allianz taken together). Waiver of Premium Benefit : An accident may lead to permanent total disability, limiting ones ability to earn. Bajaj Allianz Waiver of Premium Benefit is a helping hand when one needs it most. It waives off all future premiums while keeping the valuable life insurance cover alive, thus enabling you to live up to your commitments. Critical Illness Benefit (CI) : Some illnesses are critical. They not only alter ones lifes pattern but also result in a financial drain. Bajaj Allianz Critical Illness benefit softens the impact on the family by paying out the Critical Illness Benefit under the plan immediately, while other policy benefits continue (excluding Hospital Cash Benefit). We cover 11 critical illnesses. The customer have the flexibility of choosing Critical Illness cover up to the basic Sum Assured selected by you (Minimum Rs. 50,000) Hospital Cash Benefit (HC) : The worry of settling hospital bills (room charges) adds to the trauma of hospitalization. Bajaj Allianz Hospital Cash Benefit reduces this financial burden and helps recovery with peace of mind. Flexibility in Coverage : All Bajaj Allianz, they believe I offering benefits and not just products. They realize that customers are unique and their needs for insurance vary with time. They therefore offer the customer the flexibility of inclusion of coverage or exclusion of coverage at each policy anniversary, subject to conditions relating to such inclusions and exclusion. Comprehensive Accident Protection can be included and excluded at each policy anniversary. Family Income Benefit, Critical 38 7

Illness benefit and Hospital Cash Benefit can be taken at inception only. CI and HC can be reduced or excluded subsequently at any policy anniversary. Once reduced or excluded, they cannot be increased or included subsequently. Increase In risk Coverage Every added responsibility in a persons life call for increase in his/her risk cover. Bajaj Allianz provide the customer the option to increase coverage up to 505 of the basic Sum Assured on each of the following happy moments in their life : Your Marriage. The Birth of your First Child. The Birth of the Second Child.

This additional coverage is not subject to underwriting

Bajaj Allianz Cash Gain Platinum : Quadruple Sum Assured + Bonuses Choice Of Terms Keeping the customers convenience in mind, Bajaj Allianz offers the customer the widest range of terms : 15, 20, 25,and 30 years. Additional Protection For The Customer need Their Family The customers have the option to add the following additional benefits. Providing total protection against uncertainties. a) Family Income Benefit (FIB) : The Ultimate Protection For your

loved Ones. The customer can select the unique Family Income Benefit From Bajaj Allianz that ensures total financial protection for their loved 39 7

ones. In case of death or accidental total permanent disability, a guaranteed monthly income 1% of the Sum Assured (12% per annum) is paid till the end of the policy term or at least for a period of 10 years, whichever is higher. Moreover, all future premiums are waived. b) Comprehensive Accident protection : This benefit provides

comprehensive cover in case of an accident. It comprises of :

Accidental Death Benefit Accidents are always sudden and sometimes fatal. You cant lessen the emotional shock, but you can certainly soften the financial one. Bajaj Allianz Accidental Death Benefit gives the loved ones something to start after the permanent loss of income by paying an amount equal to the Sum Assured. (Subject to a maximum of Rs 50,00,000/- under all polices with Bajaj Allianz taken together). Accidental Permanent Total/ Partial Disability Benefit Accidents are unpredictable, and so are the consequences. They may lead to a disability partial or total. This Benefits provides a financial cushion against such misfortunes. You will get 50% of the Sum Assured in case of partial disability. (Subject to a maximum of Rs. 25,00,000/- for partial Rs. 50,00,000/- for total disability under all policy with Bajaj Allianz taken together). Waiver of Premium Benefit An accident may lead to permanent total disability, limiting ones to earn. Bajaj Allianz Waiver of Premium Benefit is a helping hand when one needs it most. It waives off all future premiums while keeping the valuable life insurance cover alive, thus enabling you up to your commitments. 40 7

c) Critical Illness Benefit (CI): Some illnesses are critical. They not only alter ones lifes pattern but also result in a financial drain. Bajaj Allianz Critical Illness Benefit softness the impact on the family by paying out the Critical Illness Benefit under the plan immediately, while other policy benefits continue (excluding Hospital Cash Benefit). We cover 11 critical illnesses. The customer have the flexibility of choosing Critical Illness cover up to the basic Sum Assured selected by you (Minimum Rs. 50,000). d) Hospital Cash Benefit (HC): The worry of setting hospital bills (room charge) adds to the trauma of hospitalization. Bajaj Allianz Hospital Cash Benefit reduces this financial burden and helps recovery with peace of mind. Flexibility in Coverage In Bajaj Allianz, they believe in the offering and not just products. They realize that the customers are unique and their needs for insurance vary with time. They therefore offer the customer the flexibility of inclusion of coverage or exclusion of coverage at each policy anniversary, subject to conditions relating to such inclusions and exclusion. Comprehensive Accident Protection can be included and excluded at each policy anniversary. Family Income Benefit, Critical Illness Benefit and Hospital cash Benefit can be taken at inception only. CI & HC can be reduced or excluded subsequently at any policy anniversary. Once reduced or excluded, they be increased or included subsequently. Increase in Risk Coverage : Every added responsibility in a persons calls for increase in his/her risk cover. Bajaj Allianz provide the customer the option to increase coverage up to 50% of the basic Sum Assured on each of the following : Happy moments on their life : Your birth of your first child 41 7

 The birth of the second child This additional coverage is not subject to underwriting. The option should be exercised within 90 days of the occurrence of the said event. .

RISK CARE This plan offers the customer life insurance cover at the lowest possible cost for a selected term. It is an ideal option to cover their near and dear ones against financial risks arising out of lifes adversities like death and permanent disability. In the case of pre-mature death during the term, the Sum Assured is paid to the nominee. There are no survival benefits under this plan. What does this plan offer? The Bajaj Allianz Risk Care Plan offers the convenience of choosing between two payment options. Regular Premium PaymentPremium payment through the selected term. Single Premium Payment- One time premium for the selected term at commencement. Apart from covering the risk of natural death, this plan also provides the option to choose up to 5 additional benefits. A person can select a specific combination of additional benefits best suited to his/her needs, available in 4 attractive packages to choose from. Economy: This is the basic plan, which is available for both the regular and single premium payment options.

42 7

 Protect: This pack comes with the following 3 in-built additional benefits: Accidental Death Benefits. Accidental Permanent Total/Partial Disability Benefits. Waiver of Premium Benefit (in case of accidental permanent total disability) The Protect Pack is available with the regular premium payment option only. Health: This pack comes with the following 2 in-built additional benefits: 1. Critical Illness Benefit. 2. Hospital Cash Benefit. The heath pack is available with the regular premium payment option only. Total: This pack comes with the following 5 in-built additional benefits: 1. 2. 3. 4. 5. Accidental Death Benefit. Accidental Permanent Total/Partial Disability Benefit. Waiver of Premium Benefit (in case of accidental permanent Critical Illness Benefit. Hospital Cash Benefit.

total disability).

The total Pack is available with the regular premium payment option only. Benefits Premium Waiver Benefit Family Income Benefit Option to Purchase future Insurance 43 7

Exclusions

Suicide within one year from commencement of risk, whether same or not. This product gives the salient featured only the relevant policy document is the conclusive evidence of the contract, and provides in details all the conditions, exclusion related to each of plans under the Bajaj Allianz Child Gain Solutions.

DISTRIBUTION

CHANNEL

44 7

Bajaj Allianz General Insurance Company Limited is a joint venture company between Bajaj Auto Limited, Indias leading insurance and financial services group. Bajaj Allianz General Insurance Company offers technical excellence in all areas of General & Health insurance and Risk Management. The partnership successfully combines Bajaj Autos extensive understanding of the local market and expensive distribution with the global experience and technical expertise of the Allianz Group. Allianz AG, Germany brings its technical expertise of insuring the majority of Fortune 500 companies.

45 7

Bajaj Allianz General Insurance is headquartered on Pune and has a wide network of 40 offices spanning the country. All the offices are fully networked. The company received the IRDA registration May 2001 and today has a vast range of 45 products to suit the corporate and retail customers. The company has also pioneered the issue of unique forms of risk cover, like Special PA cover for Amarnath Yatris, Housing loan cover for people who may become unemployed, Film Insurance, Credit Insurance cover for domestic as well as credit risk. Bajaj Allianz has two main channels of distribution, one is the Agency channel, which is the dominant one, and the other one is bancassurance agreement so far. The first was Standard Chartered Bank. When they started their operations in India, it had a good customer base of HNIs & corporate and therefore they chose that bank. Their next bancassurance arrangement was with Syndicate Bank last year. Recently, we have entered into bancassurance with Centurion Bank. This bank has a vast network of around 100 branches not in metro cities but also in B class cities. Bajaj Allianz Life Insurance is poised for an accelerated growth in the market and has already become the fastest growing private life insurance company in India. Bajaj Allianz Life Insurance has a wide pan India presence of office network in 156 cities of the country and is aided with a strong and trained Agency network of over 28,000 agents. Bajaj Allianz has forged strong Bancassurance and Corporate Agency relationships and continues to build on new tie-ups for fast track growth and deep market penetration. Bajaj Allianz has tied up with 6 banks viz. bank of Punjab, Bank of Rajasthan, Jammu & Kashmir bank, Lord Krishna bank, Karur Vysya Bank and Punjab & Sind Bank the 1 s t Public Sector bank to tie up with it. Bajaj Allianz is the only private general insurer to have tied up with 6 Bancassurance partners. And so far they are happy with the performance of this channel of distribution for their products.

46 7

Bajaj Allianz has tied up with Janakalyan Sahakari Bank, schedule urban co-operative bank, for Bancassurance on a referral basis. As per the arrangement, Janakalyan sahakari Bank will distribute Bajaj Allianz life insurance products through its branches. The bank has a network of 25 branches in Mumbai ad its suburbs Thane, Vashi and Panvel. Its area of operation covers entire Maharashtra. Centurion Bank has inked a pact with Bajaj Allianz Life Insurance Company to distribute the latters Bancassurance products through branches in the country as part of plans to grow free-base income. In the first phase the private sector bank would rollout Bancassurance products at 46 branches and 16 extension counters from October one, its managing director Shaliendra told reporters on Wednesday. The distribution set-up would be expanded to 15 more branches and 6 extension counters in second phase. Bajaj Allianz Life Insurance has launched a slew of need-based products to cater to each varied needs of the customer. Currently Bajaj Allianz Life Insurance has a product portfolio of 19 products and more need-based products are in the pipeline. Bajaj Allianz is also targeting tech savvy customers. The banks are in regular touch with their customers anyway either through the ATMs, Internet Banking etc. and hence the bank can at least inform their customers about the insurance products. Once the customer evinces keen interest the product features can be explained to them. Again in order to issue the policy they need not visit their office, but the bank branch can issue the policy from their office itself. Bajaj Allianz Life Insurance Company Ltd recorded Rs.500 crore GWP from April 2004 to January2005and has insured a total of 500,000+ customers, scoring a double-500 this year. The company Recently launched an online sales portal and has been widening its distribution 47 7

network as well strengthening its market presence, through strategic partnerships with the right distributors and a strong, focused relationship with each of its partners. At present, Bajaj Allianz ranks second amongst private players, with a market share of 12% (as per IRDA results for this financial year, up to December 2004), and 2.03 % amongst overall players. The companys agents, bancassurance partners, corporate products, have played a major role in its fast paced growth. agents and sales team, apart from its decentralized operations and flexible

48 7

49 7

With the authority to think as business managers and build their branches as profit centers. They are encouraged to open satellite branches. This gives branch managers the depth of decision-making and speed required branch. The fastest growing private Life Insurance company in India, Bajaj Allianzs portfolio of 19 products includes comprehensive Employee Benefit Solution (Group Term Life, EDLI, Gratuity, Super annuation, Keyman Insurance and More); Invest Gain (a unique Life Insurance plan for the individual, where a regular income is combined in a plan that also pays a lump sum), Cash Gain (money back), Child Gain (childrens plan), Risk Care (pure term), Lifetime Care (whole life), Term Care (term with return of premium), Swarna Vishranti (retirement plan), Protector (mortgage term insurance plan), Unit Gain (unit-linked plan), UnitGain Single Premium, Unit Gain Plus, Unit Gain Plus SP, Lifelong Gain Plus, Unit Gain Single Pension and Unit Gain Easy Pension. to react to market dynamics and consumer needs. The management has also appointed full-time training personnel for each

50 7

RESEARCH METHODOLOGY The approach to the research is considered in this chapter, from the theoretical underpinning to the collection and analysis of the data. It begins with the extent of the research to provide the specific guidelines of studying. The next part is concerned with the method of the research that refers to the data collection and analyzing which is used in the research.

CONCEPTUAL CONTEXT OF THE RESEARCH As the objective of the research focuses on the research of potential Insurance Consultants with special emphasis of Bajaj Allianz. It will help the company to increase its sales, which is the prime objective of the company at this time. The research attempts to generate awareness among the people of Delhi regarding the agency of Bajaj Allianz.

51 7

METHODS PRIMARY DATA Date collection for this research was done primarily through filling up of questionnaire. The sample for the research including different individuals of various age groups and having different professions and qualifications. Data was collected through the interview of individuals. The questionnaire was containing questions regarding the personal details of individuals and then some light questions regarding their primary knowledge related to private insurance companies. Then there were questions related to their interest in being the Insurance Consultants of company. SECONDARY DATA A large amount of secondary data has been collected from secondary sources. Some of the sources are: Reports on Insurance Sector of India. Articles from Newspapers and magazines. Various web sites of the insurance companies and related sites.

DATA ANALYSIS There are some features of analyzing data that need to be borne in mind when choosing the method for analyzing the research. The questionnaire were prepared to explore the psychology of individuals about being associated with Bajaj Allianz as Insurance Consultants and to help the company grow by increasing its sales. Instead of testing a 52 7

hypothesis, a qualitative analyst may demonstrate evidence showing that a theory, generalizing, or interpretation is plausible.

SAMPLE SIZE :Various areas of Chapra were covered in order to fill the questionnaire. I interacted with 200 individuals in order to know about their interest of being Insurance Consultants of Bajaj Allianz. SAMPLE COMPOSITION Youth Executives Serviceman Business persons RESEARCH DESIGN : A research design provides the framework to be used as a guide in collecting and analyzing data. Descriptive Research: Market survey is one of the best example of descriptive research. This is a one shot research study at a given point of time, and consists of a sample of the population of interest. Its advantages are that it gives a good overall picture of the position at a given time. It can cover many variables of interest, and is not affected by the movements of elements in the sample, because other elements can be substituted for them.

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AGENTS LICENSED BY THE AUTHORITY (2006-2007) (URBAN AND RURAL) LIFE INSURERS Name Urban BAJAJ ALLIANZ LIFE 28912 INSURANCE CO. LTD TATA AIG LIFE INSURANCE 17590 CO. LTD AMP SANMAR INSURANCE CO.LTD. BIRLA SUN LIFE INSURANCE CO.LTD. AVIVA LIFE INSURANCE CO INDIA PVT. LTD. HDFC STANDARD LIFE INSURANCE CO. LTD. ICICI PRUDENTIAL LIFE INSURANCE CO. LTD. ING VYSYA LIFE INSURANCE CO. PVT. LTD. LIFE INSURANCE CORPORATION OF INDIA MAX NEW YORK LIFE INSURANCE CO.LTD METLIFE INDIA INSURANCE CO. PVT. LTD. KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE CO.LTD. SAHARA INDIA LIFE INSURANCE CO. LTD. SBI LIFE INSURANCE CO. LTD. Sub Total 4226 5432 3702 9324 29838 7404 173958 . 6899 3310 2772 1 1908 295,276 Rural 3768 189 787 43 117 1032 92 316 179815 99 64 204 0 267 186,793 Total 32680 17779 5013 5475 3819 10356 29930 7720 353773 6998 3374 2976 1 2175 482,069

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DATA ANALYSIS:After collection of data, the analysis of it was done through various graphs: Doughnut Pie Diagram Bar Diagram Tubes Cones According to the data collected through survey with the help of questionnaire, the break up with respect to income of individuals is as follows : MONTHLY INCOME 0-5000 5000-10000 10000-15000 15000-20000 20000 AND ABOVE NUMBER OF INDIVIDUALS 43 60 49 32 16

Break up according to monthly income

60

Number of individua ls

50 40 30 20 10 0 0k-5k 5k-10k 10k-15k 15k-20k 20 and above 0-5

1k=1000

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ANALYSIS FOR THE OVERALL INCOME GROUP Servicemen32% Businessmen-68%

32 Servicemen Businessmen 68

Graduate 95%

Beyond Graduate-5%

5
Graduate Non Graduate

95

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Company HDFC Standard Bajaj Allianz ICICI Pru Life Birla Sunlife Tata AIG

Premium Income (cr) 352.14 643.59 819.75 207.93 189.24

Market Share (%) 3.11 5.68 7.24 1.84 1.67

9% 9%

16% HDFC Standard Bajaj Allianz ICICI Pru Life 29% Birla Sunlife Tata AIG

37%

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Q1. Do you know about the Bajaj Allianz Life Insurance companies? Ans. The response of individuals are as :Yes- 60% No-40%

40 Yes No 60

Q2. Would you like to earn some extra money? Ans. The response of individuals is as follows : Yes- 90% No-10%

10 Yes No 90

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Q3. What is desired or expected monthly income? Ans. The response of individuals are as follows :-

MONTHLY INCOME 0-5000 5000-10000 10000-15000 15000-20000 20000 and above

% of people 0 2 10 75 13

13

02

10 0-5000 5000-10000 10000-15000 15000-20000 20000 and above

75

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Q4. How much time you can provide easily besides your job hours? Ans. The response of individuals are as follows:TIME PERIOD 0-2 hrs. 2-4 hrs. 4-6 hrs. Full time % people 42 45 11 2

11

2 0-2 hrs. 42 2-4 hrs. 4-6 hrs. Full time

45

Q5. Do you have your own vehicle? Ans. The response of people is as follows :Yes- 96.5% No-3.5%

3.5

Yes No

96.5

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Q6. Do you have your own mobile? Ans. The response of people is as follows : Yes- 98% No-2%

Yes No

98

Q7. Would you like to work in market/field and want to interact with people? Ans. The response of individuals is as follows :Yes- 65% No- 35%

35 Yes No 65

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Q8. Would you like to come our company office and spend your some time with our people in a seminar? Ans. The response of people are as follows :Yes- 45% No- 55%

45% 55%

Q9. Do you want that a sales manager should approach you for agency? Ans. The responses of people are as follows : Yes- 64.3% No-35.7%

80 60 40 20 0

64.3

35.7

S1 Yes No

Q10. How many people do you know in Obra? Ans. The responses of people are as follows: MONTHLY INCOME 0-5000 5000-10000 10000-15000 62 7 % of people 15 10 35

15000-20000 20000 and above

25 15

S1 0-5000 500010000 1000015000 1500020000 20000 and above

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IMPORTANCE OF ADVISORS IN AN INSURANE COMPANY: In the insurance industry the sales team following the typical organization structure: Hierarchy in Insurance Company
SALES MANAGER

AREA SALES MANAGER

AREA SALES MANAGER

AREA SALES MANAGER

UNIT MANAGER

UNIT MANAGER

UNIT MANAGER

ADVISORS

ADVISORS

ADVISORS

The sales team comprises of the Sales Manager superior to Area Sales Manager, These ASMs (Area Sales Manager) have their own individual team of Unit Manager and in turn Unit Managers their own team of financial advisors. Each team of ASMs competing with each other in surge of achieving targets, each Unit Manager depends on their Advisors for their business. They represent the company in the market to the customers, so nobody can deny the importance of Advisors in the whole system. They providing the company with the business and help their respective Unit Manager to achieve their targets. So a unit Manager has to be really careful while recruiting their Advisors. During the year of

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appointment,

new

Advisor

usually

account

for

relatively

small

proportion of the organizations total production. The most promising means of achieving profitable production growth lies in your sales organizations capacity to give policy owners good counsel and prompt, courteous serves to give them value for premium paid. The best guarantee of having that capacity comes from retaining large number of productive advisor. Consequently, the development needs of your sales organization call for successful recruiting. Its a necessity. This is why manager who move to the top of Bajaj Allianz honor roll and stay there are always found to be manpower-focused. Before we move to the how to of recruiting, lets consider some important philosophies relative to recruiting.

FIVE PERSISTENT CONCERNS: As an Bajaj Allianz Manager, you are fully committed to building a high performing, growing agency. This being true, it follows those five concerns must be constant in your annual planning. The SEARCH for talent The EVALUTION of potential advisors The ATTRACTION of advisors The RETENTION of advisors The PRODUCTIVITY of advisors Any manager who attains satisfying results in these five areas will enjoy Satisfying sales results 65 7

 Outstanding persistency of business Superior policy owner service capabilities An enviable reputation as a Bajaj Allianz agency builder A momentum which comes from the synergistic benefit of success

CHART SHOWING HOW TO GET POTENTIAL ADVISOR: Putting it simply in a flow SEARCH Where to look for

ATTRACT How to attract to life Insurance

EVALUATE How to evaluate

PRODUCTIVITY

RETENTION

66 7

SWOT ANALYSIS :

Environmental Scan

Internal Analysis

External Analysis

Strength

Weaknesses

Opportunities

Threats

SWOT Matrix 67 7

Strengths Strong brand name Customer loyalty Product Quality Good reputation among customers Weaknesses Opportunity Allianz Bajaj adds complete suite of group insurance products to its product Portfolio Allianz Bajaj plans to focus on group insurance for its next phase of aggressive growth An unfilled customer need Threat Emergence of substitute products Resistance to change Non- response from the target customers Insufficient product promotion Unawareness about the product

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FINDINGS People are becoming more & more money conscious as I didnt find any person who doesnt want to earn extra money.

People are very much aware of ICICI Prudential among private companies and LIC in public sector as they respond me first name of LIC then ICICI prudential and then others.

The overall scenario is that still people trust on LIC more than any other insurance company. Sometimes when I asked someone to become an agent of Bajaj Allianz they misunderstood with LIC. For them still life insurance means LIC.

Generally people are having leisure time of around 2-3 hrs and still want to utilize this time to earn extra money, if they can.

Contrary of the prior thinking most of the people dont hesitate in doing field work an roaming in the market. They know that without hard work they cant earn money.

There were many respondents who were not interested in attending seminar conducted by Bajaj Allianz among Indian Market.

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CONCLUSION The baja Allianz insurance company is entering into booming here. To increase the market share in insurance time-to-time research projects are undertaken and this prefects was endeavor in that direction. To conclude their can't be two ways about Bajaj Allianz life Insurance, commanding a very good brand image people mostly does not go by Bajaj people still think that Bajaj is partly owned by government. And hence would be more secure to invest here Growing at a breakneck pace with a strong pan Indian presence Bajaj Allianz has emerged as a strong player in India. Characterized by global presence with a local focus driven by customer orientation to establish highearnings potential and financial strength.

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LIMITATION It is well known fact that constraints and limitation are bound to present in any study do this also has some limitation as: 1) It is very difficult to make the people understand the significant of conducting survey. 2) Lack of knowledge of area has also affected the research. 3) Due to shortage of monitory resources the project report does not reach to its perfection. 4) Market share can fluctuate for much minor reason. 5) Sometimes people don't give the clear answer during the survey. The people are much faith on L.I.C.

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RECOMMENDATIONS

There should be focus on advertisements through T.V. or other Electronic Media.

Try to make Brand Image, with the help of Bajaj Auto, more & more as it has a strong brand image in Indian market.

Make use of internet banking for increasing sales, and also for promotion.

They should increase their Distribution Channels by more & more tie ups with the locals banks also, because they can help them to penetrate in Indian market easily.

There should be more incentives to ICs as they are the backbone of the company in order to increase sales they have to do more efforts than others.

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BIBLIOGRAPHY

LIFE INSURERS Life Insurance Corporation of India ICICI Prudential Life Insurance Co. Limited Birla Sun-Life Insurance Company Limited HDFC Standard Life Insurance Co. Limited ING Vysya Life Insurance Company Limited MetLife Insurance Company Limited Om Kotak Mahindra Life Insurance Co. Ltd. TATA AIG Life Insurance Company Limited Bajaj Allianz General Insurance Co. Limited Cholamandalam General Insurance Co. Ltd. Insurance Regulatory Development Authority Life Insurance Corporation of India Royal Sundaram Alliance Insurance Co. Ltd. Insurance Regulatory Development Authority

Websites www.licindia.com www.iciciprulife.com www.birlasunlife.com www.hdfcinsurance.com www.ingvysayalife.com www.metlife.com www.omkotakmahnidra.com www.tata-aig.com www.bajajallianz.co.in www.cholainsurance.com www.irdaindia.org www.licindia.com www.royalsun.com www.irdaindia.org

BOOKS WERE CONSIDERED 73 7

 Marketing management by Mr. Philip Kotler. Principles of marketing by Mr. Richard Armstrong. Marketing Strategy and Management by Mr. Michael J. Baker. Marketing Channels by Mr. Louis Stern Business Research Methodology by Mr. C.R. Kothari.

BUSINESS MAGAZINE & NEWS PAPER

The Times of India The Economic Times 4Ps, Pitch, Business & Economy

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Annexure Q1.Do you know about the Bajaj Allianz Life Insurance companies? Yes No Q2. Would you like to earn some extra money? Yes No Q3. What is desired or expected monthly income? 0 5000 5000 10000 10000 15000 15000 20000 20000 and Above Q4. How much time you can provide easily besides your job hours? 0-2 4-6 6-8 Full Time Q5. Do you have your own vehicle? Yes Q6. Do you have your own mobile? Yes No No

Q7. Would you like to work in market/field and want to interact with people? Yes No

Q8. Would you like to come our company office and spend your some time with our people in a seminar? Yes No

Q9. Do you want that a sales manager should approach you for agency? Yes No

Q10. How many people do you know in LIC? Yes 75 7 No