CHAPTER -I

INTRODUCTION AND LITERATURE

REVIEW

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 INTRODUCTION

The Insurance Sector in India governed by Insurance Act, 1938, the Life Insurance Corporation
Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and
Development Authority (IRDA) Act, 1999 and other related Acts. 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 per cent annually. Together
with banking services, it adds about 7 per cent 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 continuation
Malhotra Committee was constituted by the government in 1993 to examine the various
aspects of the industry. The key element of the reform process was Participation of overseas
insurance companies with 26% capital. Creating a more efficient and competitive financial
system suitable for the requirements of the economy was the main idea behind this reform.
The main purpose of the study is to determine the sales process of the Bajaj Allianz Insurance
Products because Bajaj Allianz Life Insurance Company was formed on May 2, 2001 after a big
reforms in the insurance market then there are only 12 life insurance companies and 9 general
insurance companies where as the number of private life and general insurance companies has
almost doubled it means the competition between the private players has increased a lot .so, the
companies has to check whether their customers are being satisfied with the level of services
they are providing now such that they can retain the existing customers.

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 LITERATURE REVIEW

Definition of Insurance

Insurance is basically a sharing device. The losses to assets resulting from natural calamities
like fire, flood, earthquake, accidents, etc. are met out of the common pool contributed by large
number of persons who are exposed to similar risks. This contribution of many is used to pay the
losses suffered by unfortunate few. However the basic principle is that loss should occur as a
result of natural calamities or unexpected events which are beyond the human control. Secondly
insured person should not make any gains out of insurance.

While insurance cannot prevent accidents or premature death, it can help protect the family of
the decreased against the loss of income caused by the death of the main breadwinner. In return
for specified payments, insurance will provide protection against the incidence of an uncertain
event- such as premature death. The business of insurance company called insurer is to bring
together persons who are exposed to similar risks, collect contribution (premium) from them on
some equitable basis and pay the losses (claims) to the unfortunate few who suffer.

Classification of Insurance

Insurance business can be divided into two broad categories, life and non-life.

Life insurance is concerned with making provision for a specific event happing to the individual,
such as death whereas non life (or general insurance) is more commonly concerned with the
provision for a specific event which affects a property, such as fire, flood, theft etc. In this course
we will only cover life insurance. So, let us now move on to the definition of life insurance.

Definition of Life Insurance

According to the U.S. Life Office Management Association Inc. (LOMA), life insurance is
defined as follows: Life insurance provides a sum of money if the person who is insured dies
whilst the policy is in effect.

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Common Types of Insurance

Life insurance

Life insurance originally conceived to protect a man's family when his death left them. Without
income, has developed into a variety of policy plans. In a "whole life" policy, fixed Premiums are
paid throughout the insured's lifetime; this accumulated amount, augmented by compound
interest, is paid to a beneficiary in a lump sum upon the insured's death; the benefit is paid even
if the insured had terminated the policy. Under "universal life," the insured can vary the amount
and timing of the premiums; the funds compound to create the death benefit. With "variable life,"
the fixed premiums are invested in a portfolio (with earning reinvested), and the death benefit is
based on the performance of the investment. In "term life," coverage is for a specified time
period (e.g., 510 years); such plans do not build up value during the term. Annuity policies,
which pay the insured a yearly income after a certain age, have also been developed. In the
1990s, life insurance companies began to allow early payouts to terminally ill patients.

General Insurance
In general insurance following insurance are included:-
Fire insurance: It usually includes damage from lightning and fire.
Natural disaster insurance: Insurance against the elements of nature includes hail, tornado,
flood, and drought etc.

Automobile insurance

It includes not only insurance against fire and theft but also compensation for damage tothe car
and for personal injury to the victim of an accident (liability insurance). Many car owners,
however, carry only partial insurance. In many states liability insurance iscompulsory, and a
number of states have instituted so-called no-fault insurance plans.Where by automobile accident
victims receive compensation without having to initiate aliability lawsuit, except in special cases.
Bonding, or fidelity insurance, is designed to protect an employer against dishonesty or default
on the part of an employee. Titleinsurance is aimed at protecting purchasers of real estate from
loss by reason of defective

Marine insurance

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It protects shipping companies against the loss of a ship or its cargo, as well as many other items,
and so-called inland marine insurance covers a vast miscellany of items, including tourist
baggage, express and parcel-post packages, truck cargoes, goods in transit, and even bridges and
tunnels. In recent years, the insurance industry has broadened to guard against almost any
conceivable risk; companies like Lloyd's will insure a dancer's legs, a pianist's fingers, or an
outdoor event against loss from rain on a specified day.

Bajaj Allianz product profile

Bajaj Allianz life insurance policy offers you flexible insurance plans according to requirements.
Bajaj Allianz deals in Endowment plans, Money back Plans, ulip single premium, pension and
children plan. All plans are enough flexible to be customized.

Various Types of Insurance Plans

(A) Traditional Plans:

Following are the traditional plans offered by Bajaj Allianz Life Insurance:-

(i) Endowment Plans:-In an endowment insurance plan, if death happens during the policy term,
death claim is paid. Else maturity benefits are paid on the date of maturity of the policy.

(ii) Life Time Care: - Is a whole life plan, where it helps you financially at the time when your
regular income ends. That is it provides survival benefits at the age of 80. The plan also has
additional benefits like Waiver of Premium, Accidental Death Cover & Disability Cover and
Critical Illness Cover & Hospital Cash Cover.

(iii) Super Saver: - Is a regular premium endowment plan, which enables the policyholder to
save an amount regularly for the future. The plan also has an extra benefit of Guaranteed
Additions to the sum assured, at the end of each policy year.
(iv) Save Care Economy Single Premium plans :-A 10 year single premium endowment plan
which provides savings with high risk cover. This plan also participates in the companys profits.
It is a high risk but has easy liquidity and high returns.

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(v) Invest Gain Plans: - This plan offers a combination of benefits that help develop a financial
portfolio for your family. At a small extra cost you get 4 times life cover. Also you have an
option of limited premium payment.
(vi) Money Back Plan: - Money back plan which guarantees 5 easy payouts giving up to 125%
+ bonuses. Also 4 times a life cover.

(B) Term Plans

(i) Term Care : - Is a term Assurance plan which provides life cover and return of premiums paid
at the time of maturity. It has the option of single premium payment. It is the only pure Term
Plan which provides Hospital Cash Benefit.
(ii) New Risk Care: - Is a plan with regular/single premium payment options. This plan comes
with a lowest cost for a Life Insurance cover. With regular premium plan you get additional rider
benefits. Also accidental death benefit and accidental permanent total/partial disability benefit.
Besides that you can also avail of critical illness benefit and hospital cash benefit.
(iii) Protector : - Is a mortgage reducing term assurance plan. At a low premium amount you can
secure your family from the burden of paying the Home Loan in your absence. You get an option
of either Regular Premium payment or single premium payment. Also there is an option of Joint
life availability, where the co-applicant can be also covered in the plan.
(C) Unit Linked Plans (Regular premium & Single Premium)

Regular Premium (RP)

(i) New Unit Gain :-Is an investment plan where you get 2222222222222value for your funds
invested.
(ii) New Gain Super: - Is a flexible unit linked plan with partial & full withdrawals after 3 years.
It offers additional benefits like UL Accidental Death Benefit and UL Disability Benefit, UL
Critical Illness Benefit and UL Hospital Cash Benefit and 4 funds to choose from & flexibility to
pay top-up any time.
(iii)New Unit Gain Plus : -This plan gives you 5 investment funds to choose from. With the
option of 3 free switches every year. Also partial or full withdrawal after 3 years. It plan offers
flexibility to meet ones changing lifestyle and insurance needs. It offers guaranteed life cover.
(iv) Unit Gain plus Gold : -A unique investment plan with the combination of protection and
prospects of earning attractive returns. It has a high allocation up to 85%. You have a choice of 7

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funds to invest in & also a guaranteed life cover. Additional benefit riders are also available with
this plan.
(v) New Family Gain : -It is Life Insurance Plan that can take care of all the changing
requirements of the family. It has maximum flexibility, so that you are provided for all the
changing needs you may have.
(vi) Young Care : -This investment plan is a Gift of a lifetime to a loved one. It offers a
guaranteed Sum Assured and continued pay premium on your behalf, in case of your unfortunate
death.
(vii) Young Care Plus :-It offers the same benefit as the above plan but in addition it offers a
critical illness benefit.

Single Premium (SP)

(i) New Unit Gain Premier SP : - It is a unique insurance cum investment plan as it starts
investing 105% of the single premium paid from day one, thereby ensuring that you get more. It
has a guaranteed life cover and flexible withdrawal option u/s 10 (10) D.

(ii) New Unit Gain plus SP : -Is a single premium plan that gives you 98% allocation with
guaranteed life cover. Minimum premium is Rs. 10,000 only. A choice of 5 investment funds to
choose from. And 3 free switches every year. Partial & full withdrawals after 3 years.
(D)Pension (Annuity & Retirement)

Annuity
(i) Pension Guaranteed :-Is a plan that assures a regular income after your retirement for life.

Retirement

(i) New Unit Gain Easy Pension plus RP :-A unit linked pension plan without life cover. It has
regular premium payment mode. An option to take a tax-free lump sum up to 33% of Sum
Assured. You can invest in any 6 funds. With 3 free switches every year. Also open market
option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other life insurer.
(ii)New Unit Gain Easy Pension plus SP :-A unit linked pension plan without life cover. It has
single premium payment mode. An option to take a tax-free lump sum up to 33% of Sum
Assured. You can invest in any 6 funds. With 3 free switches every year. Also open market
option. Purchase immediate annuity from Bajaj Allianz Life Insurance or any other life insurer.

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(iii)SwarnaVishranti : - Is a plan with an option to take a tax-free lump sum up to 33% of Sum
Assured + Accrued Bonuses. Open Market option: Purchase immediate annuity from Bajaj
Allianz Life Insurance or any other Life Insurance Company. And also additional benefits can be
availed of.
(iv) Future Secure:-It is a plan which secures your future.
(v) Future Income Generator:-It helps you maintain the same lifestyle you lead now, after your
retirement. The saving today becomes your wealth and support to help secure your future. The
plan is about wealth creation, smart savings and peace of mind along with a corpus, which
secures your life, post retirement.

(E) Women Insurance Plans

(i) Housewives:-Housewives need to safeguard their financial independence. There are additional
benefits like the Mahila Gain feature which offers benefits like.

(ii) Working Women:-This plan helps the working women to protect them self, their family and
plan for their future. The insurance, investment, pension and health products have been specially
customized to suite to every specific need of a woman.

(F) Children Plans

(i) Child Gain :-Is a plan where it creates funds for critical stages in your Childs life like
education, marriage or even to start a business. It has the benefit of low premium rates.

(ii) Family Care First:-It is a plan for the whole family. This unique hospitalisation plan gives
you health cover for your entire family. You can secure your family with one plan.

(iii) Care First:-A Medical Insurance plan till the age of 65 years . And you can renew the policy
every 3 years. The premium rate is level and guaranteed for the length of each policy term of 3
years with extra benefits like day care treatment and pre and post hospitalization treatment.

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Concept of Customer Satisfaction

Customer satisfaction is a term frequently used in marketing. It is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals." In a survey, marketing managers, 71 percent responded that they
found a customer satisfaction metric very useful in managing and monitoring their businesses.

It is seen as a key performance indicator within business and is often part of a Balanced
Scorecard. In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of business
strategy. "Within organizations, customer satisfaction ratings can have powerful effects. They
focus employees on the importance of fulfilling customers expectations. Furthermore, when
these ratings dip, they warn of problems that can affect sales and profitability. These metrics
quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-
mouth marketing, which is both free and highly effective."

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do

this, firms need reliable and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or service has
met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When
customers have high expectations and the reality falls short, they will be disappointed and will
likely rate their experience as less than satisfying. For this reason, a luxury resort, for example,
might receive a lower satisfaction rating than a budget moteleven though its facilities and
service would be deemed superior in 'absolute' terms."

The importance of customer satisfaction diminishes when a firm has increased bargaining power.
For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry
that is an oligopoly, where only a few suppliers of a certain product or service exist.

Concept of Customer Support Services (Aftersale Services)

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Customer service is the provision of service to customers before, during and after a
purchase. "Customer service is a series of activities designed to enhance the level of customer
satisfaction that is, the feeling that a product or service has met the customer expectation."The
importance of customer service may vary by product or service, industry and customer. The
perception of success of such interactions will be dependent on employees "who can adjust
themselves to the personality of the guest," according to Micah Solomon. From the point of view
of an overall sale process effort, customer service plays an important role in an organization's
ability to generate income and revenue. From that perspective, customer service should be
included as part of an overall approach to systematic improvement. A customer service
experience can change the entire perception a customer has of the organization.Some have
argued that the quality and level of customer service has decreased in recent years, and that this
can be attributed to a lack of support or understanding at the executive and middle management
levels of a corporation and/or a customer service policy. To address this argument, many
organizations have employed a variety of methods to improve their customer satisfaction levels.
Customer support is a range of customer services to assist customers in making cost effective and
correct use of a product. It includes assistance in planning, installation, training, trouble shooting,
maintenance, upgrading, and disposal of a product. Regarding technology products such as
mobile phones, televisions, computers, software products or other electronic or mechanical
goods, it is termed as technical support.

Characteristics of Customer support services:

Well-designed customer support services includes the following characteristics:

Relationship management is a customer-oriented feature with service response based on

customer input, one-to-one solutions to customers requirements, direct online
communications with customer and customer service centers that help customers solve
their questions.
Salesforce automation. This function can implement sales promotion analysis, automate
tracking of a clients account history for repeated sales or future sales, and also
oordinate sales, marketing, call centers, and retail outlets in order to realize the
salesforce automation.

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 Use of technology. This feature is about following the technology trend and skills of
value delivering using technology to make up-to-the-second customer data available. It
applies data warehouse technology in order to aggregate transaction information, to
merge the information with CRM solutions, and to provide KPI (key performance
indicators).
Opportunity management. This feature helps the company to manage unpredictable
growth and demand and implement a good forecasting model to integrate sales history
with sales projections.

Implementing customer support services

There are numerous steps company should follow while implementing customer support services
system. The project manager is responsible for the success of this process. Some conditions need
to be checked by the company before the starting implementation directly:

1) Make a strategic decision concerning CRM desired goal: to improve or to change the
business processes of the organization?
2) Choose an appropriate project manager: usually it is IT-department that is responsible for
CRM system implementation. However, it is reasonable to hire the manager with a
Customer Service/Sales and Marketing business focus as there are a bunch of decisions
that are related rather to the business processes rather than to the hardware, software or
network
3) Executive sponsorship: provide the top management support and systematic introduction
to the project manager
4) Project team commitment and training: make sure team members have enough time and
authority to complete project tasks and are committed to its success.

Types of customer support services of bajaj Allianz life insurance.

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Bajaj Allianz life insurance company offers many types of customer support services. They are
explained below in detail:-

Online services
Telephonic services
Insurance agent
Mail or post
Premium services
Grievance register services
Insurance Reminder services

These services are provided for every customer of the baja Allianz life insurance company. So,
these services have their own importance for every customer. These services are explained
below:

1) Online services

Online insurance refers to the buying and selling of insurance online. Insurance is subject to
the principle of utmost good faith, which makes it convenient for people to conduct the
business online, as both the parties have absolute duties to disclose all material facts
otherwise any contract concluded is void. Conducting a complete insurance transaction can
be difficult due to the necessity of underwriting, sales, and a whole network of employees to
ensure the contract is up to company standards. For this reason, many types of personal
insurance are now sold online, including car insurance, travel insurance, and medical
insurance. In recent times, many online insurance providers now provide not only an
insurance quote online, but perform the remainder of the selling process manually, and takes
a large amount of paperwork out of the process. Some international insurance companies still
require an actual physical process to take place.

2) Telephonic services: Traditionally, telephone service was provided by small

companies based in given cities and towns as opposed to larger, national
or international companies. Telephone calls outside of the local area provided
for by these companies were patched through long distance networks that
were, until de-regulation, operation mainly by telephone. Some providers of
local services were regional Bell operating companies, but not all local

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 telephone companies were a regional Bell operating company or tied to one at
the local level, especially after de-regulation of 1996..
3) Insurance agent services

The law of agency is an area of commercial law dealing with a set of contractual, quasi-
contractual and non-contractual fiduciary relationships that involve a person, called the agent,
that is authorized to act on behalf of another (called the principal) to create legal relations with a
third party. Succinctly, it may be referred to as the relationship between a principal and an agent
whereby the principal, expressly or implicitly, authorizes the agent to work under his control and
on his behalf. The agent is, thus, required to negotiate on behalf of the principal or bring him and
third parties into contractual relationship. This branch of law separates and regulates the
relationships between:

agents and principals (internal relationship), known as the principal-agent relationship;

agents and the third parties with whom they deal on their principals' behalf (external
relationship); and

principals and the third parties when the agents purport to deal on their behalf.

There are three broad classes of agent

1. Universal agents hold broad authority to act on behalf of the principal, e.g. they may
hold a power of attorney (also known as a mandate in civil law jurisdictions) or have a
professional relationship, say, as lawyer and client.

2. General agents hold a more limited authority to conduct a series of transactions over a
continuous period of time; and

3. Special agents are authorized to conduct either only a single transaction or a specified
series of transactions over a limited period of time.
4) Post or mail: Modern mail is organized by national and privatized services, which are
reciprocally interconnected by international regulations, organizations and international
agreements.
5) Grievances register services

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A consumer complaint or customer complaint is an expression of dissatisfaction on a
consumers behalf to a responsible party. It can also be described in a positive sense as a report
from a consumer providing documentation about a problem with a product or service. In fact,
some modern business consultants urge businesses to view customer complaints as a gift.

6) Reminder services
Peoples daily life is very busy and from time to time they forget even important things. Our
system will make their life easier and at least for this important issue, their insurance, they
can sleep over night smoothly since a liable and serious company takes care on your safe
and reminds you them, a few days before your insurance policy expires.

Benefits of customer support services

Employees who are properly trained and who demonstrate professional customer service
skills can improve customer satisfaction and customer loyalty. This, in turn, helps the
business retain customers and improve profits as it costs less to retain a customer than to
acquire a new one. In addition, customers who are pleased are more open to additional
sales messages and are more likely to refer others as potential customers.

Good listening skills and questioning techniques can shorten the interaction time with
customers. This allows an organization to serve more customers in less time, possibly
with fewer staff.

Being able to clearly explain next steps in a process and confirming that the customer is
satisfied will decrease the number of call backs or return customers. Research has shown
that improving first contact resolution is one of the primary drivers of customer
satisfaction.

Teaching the same customer service skills to all personnel allows them to have a common

process and language for dealing with customers. This allows business to brand the

interaction and make excellent service part of their offering to the customer, thereby

adding value.

Limitation of customer support services

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1. Cost :-Customer service standards can be expensive to put into effect--especially

considering that service-based industries often experience high turnover, necessitating

ongoing training initiatives. Time spent creating lists of standards and training staff

equates to time away from those job functions that contribute to the bottom line. The

alternative of hiring an external consulting company to assess and implement a customer

service program is an added expense. Essentially, if the use of customer service tools

does not significantly expand your company's customer base or increase the number of

repeat customers, it might well be perceived as an unjustifiable expense.

2. Resolution delays :-While customer service agents are trained to respond to customer

questions, most are not delegated the authority to make billing adjustments or issue

refunds without approval from a superior. This can result in a customer having to tolerate

wending through multiple levels of customer service and management personnel to

resolve a single problem. While the customer service employees are hired to provide

efficient service to the customer, their lack of authority to complete certain actions can

result in resolution delays, leading to a frustrating experience for the consumer.

3. Outsourcing :-Outsourced customer service personnel can be the answer to some customer

service cost concerns; however, this option sometimes comes with disadvantages of its

own. In many instances, the customer service function is outsourced to overseas

locations, which translates to the loss of customer service jobs on home soil.

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 CHAPTER-II

INDUSTRY AND COMPANY PROFILE

INDUSTRY AND COMPANY PROFILE

Profile of the Organization

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Bajaj Allianz Life Insurance Company

Head Office

Pune, India

Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE. Both enjoy a
reputation of expertise, stability and strength. This joint venture Company incorporates global
expertise with local experience. The comprehensive, innovative solutions combine the technical
expertise and experience of Allianz SE, and in-depth market knowledge and goodwill of "Bajaj"
brand in India. Competitive pricing and quick honest response have earned the Company the
customer's trust and market leadership in a very short time.

At Bajaj Allianz, customer delight is our guiding principle. Ensuring world class solutions by
offering customized products with transparent benefits supported by the best technology is our
business philosophy.

Bajaj Allianz Life Insurance has developed insurance solutions that cater to every segment and
age-income profiles. Currently Bajaj Allianz has a strong product portfolio and caters to all kinds
of customer needs from ULIPs to Child plans, from group insurance to health insurance

History of the organization

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The sales process of the Bajaj Allianz Insurance Products because Bajaj Allianz Life Insurance
Company was formed on May 2, 2001 after a big reforms in the insurance market then there are
only 12 life insurance companies and 9 general insurance companies where as the number of
private life and general insurance companies has almost doubled it means the competition
between the private players has increased a lot .so, the companies has to check whether their
customers are being satisfied with the level of services they are providing now such that they can
retain the existing customers.

Since then the insurance industry has gone through many changes .The competition LIC started
facing from these companies were threatening to the existence of LIC .since the liberalization of
the industry the insurance industry has never looked back and today stand as one of the most
competitive and exploring industry in India. The entry of the private players and the increased
use of the new distribution are in the limelight today. The use of new distribution techniques and
the IT tools has increased the scope of the industry in the longer run companies.
Major Policy Changes & Reforms in Insurance Sector
In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N.
Malhotra was formed to evaluate the Indian insurance industry and recommend its future
direction. The Malhotra committee was set up with the objective of complementing the reforms
initiated in the financial sector. The reforms were aimed at "creating a more efficient and
competitive financial system suitable for the requirements of the economy keeping in mind the
structural changes currently underway and recognizing that insurance is an important part of the
overall financial system where it was necessary to address the need for similar reform" In 1994,
the committee submitted the report and some of the key recommendations included:

1. Structure

Government stake in the insurance Companies to be brought down to 50%

Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations

All the insurance companies should be given greater freedom to operate

2. Competition

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 Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter
the industry

No Company should deal in both Life and General Insurance through a single entity
.Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies

Postal Life Insurance should be allowed to operate in the rural market

Only One State Level Life Insurance Company should be allowed to operate in each state

3. Regulatory Body

The Insurance Act should be changed

An Insurance Regulatory body should be set up

Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.

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Competitors Information

As we know that this time insurance sector in on boom. Reason is that it gives more profit not
only to the company but also to the investor. Today company invest money not only in
government securities and bonds but also in the equity which gives more return than the
government securities and bonds, and bank deposits. In the market lots of insurance company
who are trying to capture more and more market share. There are seventeen insurance companies
in the market which are launching plans after plans for capturing market share. These insurance
companies are thus:-

No. Name Of Insurance Company

1. Life Insurance Corporation Of India (LIC)

2. ICICI Prudential Life Insurance Company Limited

3. Reliance General Life Insurance Company Limited

4. Bajaj Allianz Life Insurance Company Limited

5. Birla Sun Life Insurance Company Limited

6. Tata AIA Life Insurance Company Limited

Table no. 1: Competitors Information

Life Insurance Corporation of India

Every day we wake up to the fact that more than 220 million lives are part of our family called
LIC. We are humbled by the magnitude of the responsibility we carry and realise that the lives
that are associated with us are very valuable indeed. Although this journey started five decades
ago, we are still conscious of the fact that, while insurance may be a business for us, being part
of millions of lives every day for the past 50 years has been a process called TRUST.

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ICICI Prudential Life Insurance Company Limited

ICICI Insurance has two faces - ICICI Prudential Life Insurance Company and ICICI Lombard
General Insurance Company Limited. ICICI Prudential Life Insurance is a 74:26 joint venture
between ICICI Bank India Ltd. and Prudential PLC based in UK. Established in 2000, today
ICICI Prudential has 735 offices, 22 Bank assurance partners and over 2.4 lakh advisors. Having
won public accolade as the most trusted private life insurer in India, ICICI Prudential Life
Insurance Co Ltd brings a wide array of life insurance products to the customers.

In addition to these insurance policies, ICICI Prudential bring to you easy premium payment
solutions by cheque or cash at the branches, cheque payments at the drop boxes, ECS, credit card
payment and online payment options. Login to the ICICI Prudential website and on the
homepage find online premium payment option. You also get an online asset allocator, inflation
index calculator, human life value calculator and life stage profiler.

ICICI Prudential offers you an opportunity to buy the desired insurance policy online or get full
details from an insurance agent or broker send to you or even get first hand direct information at
the helpdesks in the ICICI Prudential branches.

ICICI Lombard General Insurance Company Limited is a 74:26 JV between ICICI Bank India
ltd. - the second largest private sector bank in India and Lombard Canada Ltd. - a Fairfax
Financial Holdings Ltd group company that is a 26 billion USD Company.

ICICI Lombard started their general insurance businesses in August 2001. It is India's No.1
private general insurance company. It is also the first general insurance company to be awarded
ISO 9001:2000 certification. They bring to you express fast policy issuance and claims
settlements.

Reliance General Life Insurance Company Limited

Reliance General Life Insurance Company is a Reliance Capital Ltd. product. Under the
guidance of Anil DhirubhiAmbani Group, reliance insurance company has secured the position
of the top insurers in India. Reliance General Insurance is one of the first non-life companies to
get the license from the IRDA. The risks covered under general insurance include property,
marine, casualty and liability. Wide ranges of products are available at Reliance Standard

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Insurance for both group and individual customers. Each insurance policy is customized so as the
customers feel as if it was made for their needs. The distribution channels include branch
network, individual and specially trained insurance agents and insurance brokers and online
purchases of the insurance policies.

A completely customer centric company, Reliance Insurance Co Ltd aims at making insurance
affordable and accessible to all. The interests of the policyholders are protected to the best of
their capabilities and complete cooperation is provided in insurance claims. A pan India presence
of Reliance Standard Insurance brings the insurance policy best suited to your requirements right
to a branch near you.

Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance
Company and Bajaj Finserv.

Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in
the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has
over 119 years of financial experience and is present in over 70 countries around the world.

At Bajaj Allianz Life Insurance, customer delight is our guiding principle. Our business
philosophy is to ensure excellent insurance and investment solutions by offering customised
products, supported by the best technology.

22
SWOT Analysis of the Industry

Strengths.

Strong and well spread network of qualified intermediaries and sales person.

The company provides customer service of the highest order.

Huge basket of product range which are suitable to all age and income groups.

Large pool of technically skilled manpower with in depth knowledge and understanding
of the market.

Weaknesses

Heavy management expenses and administrative costs.

Poor retention percentage of tied up agents.

Opportunities

Insurable population According to IRDA only 10% of the population is insured, which
represents around 30% of the insurable population. This suggests more than 300m people,
with the potential to buy insurance, remain uninsured.

There will be inflow of managerial and financial expertise from the worlds leading insurance
markets. Further the burden of educating consumers will also be shared among many players.

Threats

Other private insurance companies also trying to capture the same uninsured population.
Poaching of customer base by other companies. Most of the people dont understand the
need or are not willing to take insurance policies in general.
Threat of foreign player due to FDI

23
 CHAPTER-III

RESEARCH METHODOLOGY

24
 RESEARCH METHODOLOGY

Methodology

Methodology is usually a guideline system for solving a problem, with specific components such
as phases, tasks, methods, techniques and tools.It can be defined also as follows:

1. "The analysis of the principles of methods, rules, and postulates employed by a

discipline".

2. "The systematic study of methods that are, can be, or have been applied within a
discipline".

3. "The study or description of methods".

A methodology can be considered to include multiple methods, each as applied to various facets
of the whole scope of the methodology. The research can be divided between two parts; they are
qualitative research and quantitative research.

There are two types of data used in Methodology:-

1. Primary data
2. Secondary Data
Primary Data

Primary research consists of the collection of original primary data. It is often undertaken after
the researcher has gained some insight into the issue by reviewing secondary research or by
analyzing previously collected primary data. It can be accomplished through various methods,
including questionnaires and telephone interviews in marketresearch, or experiments and direct
observations in the physical sciences, amongst others. The term primary research is widely used
in academic research, market research and competitive intelligence.

25
Secondary data

Secondary data is data collected by someone other than the user. Common sources of secondary
data for social science include censuses, organisational records and data collected through
qualitative methodologies or qualitative research. Primary data, by contrast, are collected by the
investigator conducting the research. Secondary data analysis saves time that would otherwise be
spent collecting data and, particularly in the case of quantitative data, provides larger and higher-
quality databases that would be unfeasible for any individual researcher to collect on their own.
In addition, analysts of social and economic change consider secondary data essential, since it is
impossible to conduct a new survey that can adequately capture past change and/or
developments.

This project comprises the use of primary data.

Market Research Design : Descriptive type.

Data Sources : Primary source and secondary source.
Research Approach : Survey method.
Research Instrument : Questionnaire.
Type of Questions : Close-ended, Open-ended
Sample Size : 50 samples.
Mode of Collecting Data : Respondents to be chosen randomly.
Sample Location : Delhi

Objectives of the study

26
The main objectives of this study are:

To study the importance of Insurance Sector in the society.

To know the customer behavior towards aftersale services of insurance product.
To study the satisfaction level of the customers with the insurance service provide by
Bajaj Allianz life insurance company.
To learn about customers knowledge about the Bajaj Allianz life insurance company.
To know about quality of information provided by Bajaj Allianz Life Insurance Company.
To understand the variety of after sales services provided by bajaj Allianz life insurance
company.

Scope of the study

The main aim of this project is to have customer satisfaction towards the aftersale services of
Bajaj Allianz life insurance company..

The key points of this study are:

It covers the importance of Insurance Sector in the society.

It includes the customer behavior towards aftersale services of insurance product.
It also includes the satisfaction level of the customers with the insurance product.
It covers the different Comparative study with the competition.
It includes solutions and suggestions from the customers

27
Thus, the scope of the insurance sector is wide and open where there are lot of opportunities for
the sector to grow in the next couple of years. More and more private companies with
international experiences are entering into the market with knowing the scope that is available.
Moreover each and every individual have started realizing the importance of life insurance in
their life as the life is considered to be really unexpected in the world we live today.

Limitations of the study

Time Constraint: There was not enough time to collect as much information required
due to time constraint.

Difficulty in framing questionnaire: While designing the questionnaire it was kept in

mind to gather more and more information from each target person. For the neither
present nor descriptive questions could have served the purpose.
Cooperation was not easily available: The respondents and the staff did not provide
sufficient time. The major reason for the non-response was that the respondents refused
to fill the questionnaire.

28
 Insufficient Knowledge: Respondents were not having full information. Some
respondent misinterpreted the question, and gave the answer casually and it was
practically impossible to return such incomplete and unsatisfactory questionnaire to the
respondent for the correction.

Reliability of Replies: This method does not provide a check on the honesty and
reliability of replies, if the respondent gives wrong replies, the investigator cannot know
what the truth is.

Problem in conclusion: Since the survey was limited to 50 respondents, it is rather

difficult to give a precise conclusion but to the best of my capability to give the
conclusion on a comprehensive manner.

29
 CHAPTER-IV

ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

Demographic Information

1) Gender of the all 50 respondents.

Gender No. of Respondents Percentage of Respondents (%)

Male 48
24
52
Female
26
100

30
 Total
50

Table no. 1: Gender of the respondents.

48%
Male Female
52%

Interpretation

This data represents that out of 50 respondents, 52% females and 48% males are the customer of
Bajaj Allianz life insurance products.

2) Age group of all the Respondents.

Options No. of Respondents Percentage of respondents (%)

31
 Less than 30 years 14 28

30-40 years 10 20

40-50 years
15 30
More than 50 years

Total 11 22

50 100

Table no. 2 :Age Group of the respondents.

22%
28%

Less than 30 years 30-40 years 40-50 years

More than 50 years

30% 20%

Interpretation

According to the data ,30% respondents belongs to the age group 40-50 years, 28% are less than
30 years, 22% are of more than 50 years and 20% are of 30-40 years age group engaged in the
Bajaj Allianz life insurance products.

3) Occupation of the respondents.

Options No. of Respondents Percentage of Respondents (%)

32
 Self employed/ 18 36
business

Pvt/ govt service 31 62

Student
1 2
Total

50 100

Table no. 3 :Occupation of the respondents.

2%

36%

Self employed/business Pvt/Govt service student

62%

Fig no.- 3 : Occupation of the respondents.

Interpretation

According to the data collected by 50 respondents, 62% respondents are private/govt servant,
36% are self employed and 2% are student.

4) Annual income of the respondents.

33
 Options No. of Respondents Percentage of respondents (%)

Belwo 2 L 14 22

3L-4L 10 26

4L-5L
15 30
Above 5L

Total 11 22

50 100

Table no. - 4 :Annual income of the respondents.

22% 22%

belwo 2L 3L-4L 4L-5L above 5L

26%
30%

Interpretation

This collected data shows the annual income of the respondents, 30% having annual income
between 4L- 5L, 26% having 3L-4L, 22% are below 2L and above 5L.

Q 1. How long has you been associated with Bajaj Allianz Life Insurance as a policy holder?

34
Options No. of Respondents Percentage of respondents (%)

Less than 6 months 5 10

More than 6 months 13 26

1-3 years
19 38
Over 3 years

Total 13 26

50 100
Table no. - 5: Association of respondents with Bajaj Allianz.

10%

26%

26% less than 6 months

more than 6 months
1-3 years
over 3 years

38%

Interpretation

According to the collected data the respondents associated with bajaj Allianz, 38% are associated
with 1-3 years, 26% are over 3 years and more than 6 months both and 10% are less than 6
months.

Q2. Reason for investing in Insurance Plans of Bajaj Allianz Life Insurance Company ?

35
Options No. of Respondents Percentage of respondents
(%)

Returns 17 34

Need to save tax

12 24
Recommended by
family and friends
9 18
Multiple offers
(investment,
insurance, tax, etc) 12 24

Total

50 100
Table no. - 6 :Reason for investing in Insurance Plans.

24%
34%

Returns
Need to save tax
Recommended by
family and friends
Muitiple offers
18%

24%

Interpretation

This data shows the reason for investing in bajaj Allianz, 34% are for returns, 24% for need to
save tax and multiple offers both and 18% for recommended by family and friends.

Q3. Are you getting the adequate customer support ( After sale service) .

36
Options No. of Respondents Percentage of respondents (%)

Yes 43 86

No 7 14

Total
50 100

Table no. - 7 : Adequacy of customer support.

14%

yes No

86%

Interpretation

This data represents that 86% respondents gets adequate customer support services and 14%
respondents not getting the customer support services.

37
Q4. What is your choice of best after sale services given by the Bajaj Allianz life Insurance
company ?

Options No. of Respondents Percentage of respondents (%)

Online services 17 34

Insurance agent
14 28
service

Telephonic services
12 24
Mail or Post services
7 14
Total

50 100
Table no. - 8: Choice of best after sale services.

14%

34%

Online services
Insurance agent
24% services
Telephonic services
Mail or post services

28%

Interpretation

According to the data, 34% respondents like online services, 28% enjoys insurance agent
services, 24% respondents use telephonic services and 14% like mail or post services

38
Q5 What type of facility Bajaj Allianz provide to pay the Insurance policy?

Options No. of Respondents Percentage of respondents (%)

Through Online 20 40

Agent collects
15 30
premium

By paying in branch
office
8 16
None of these

Total
7 14

50 100
Table no. - 9 :Payment of premium.

14%

40% Through online

16%
Agents collect
premium
By paying in branch
office
None of these

30%

Interpretation: According to the data ,40% respondents pay premium online, 30% pay to the
agent,16% pay in branch office and 14% pay through none of the above options

Q6. Are you getting the sufficient information about the companies new policies and updation?

39
Options No. of Respondents Percentage of respondents (%)

Yes 41 82

No 9 18

Total
50 100
Table no. 10 :Information about new policies and updation.

18%

yes No

82%
.

Interpretation

This data shows that 82% respondents gets the information about the new policies and updation.
18% respondents never received this information.

Q7. Are you getting the claim status inquiry/ renewal policy status/ maturity of policy status
time to time from the Company?

40
Options No. of Respondents Percentage of respondents (%)

Yes 43 86

No 7 14

Total
50 100

Table no. - 12 :Policy status.

14%

Yes No

86%

Interpretation

From the above data, it is observed that 86% respondents gets claim status inquiry/renewal
policy inquiry/maturity of policy information and 14% respondents dont gets any inquiry.

Q 8. What type of platform they provide to register grievance ?

41
Options No. of Respondents Percentage of respondents (%)

No grievance 20 40

Online grievance
16 32
registration

Complaint in branch
office
10 20
By posting a letter

Total
4 8

50 100
Table no. 13 :Grievance registration.

8%
No grievance
20% online grievance
40%
registration
complaint in branch
office
By posting a letter
32%

Interpretation: According to the data, 40% respondents dont have grievance, 32% respondents
register their grievance through online, 20% register by complaint in branch office and 8%
register their grievance by posting a letter.

42
Q 9. Rate the overall services of the company after the purchase of the policy or insurance
product.

Options No. of Respondents Percentage of Respondents (%)

Highly satisfied 10 20

Satified
27 54
Average

Dissatisfied 7 14

Highly Disatisfied
6 12

Total
0 0

50 100
Table no. - 14 :Services of insurance company after product purchased.

12%
20%

14%
Highly satisfied Satisfied Average Dissatisfied

Highly disatisfied

54%

Interpretation: According to the data , 0% respondents are highly dissatisfied with services ,
12% are dissatisfied whereas 20% respondents are highly satisfied with after sale service , 54%
are satisfied, 14% respondents are average satisfied with the insurance companies aftersale
service.

43
Q10. Rate the overall satisfaction with the insurance policies or insurance product of the
company.

Options No. of Respondents Percentage of Respondents (%)

Highly satisfied 8 16

Satified 27 54
Average
13 26
Dissatisfied
2 4
Highly Disatisfied
0 0
Total
50 100

Table no. - 15 :Satisfaction with insurance product.

4%
16%

26%

highly satisfied satisfied Average Dissatisfied highly dissatisfied

54%

Interpretation

According to the data ,0% respondents are highly dissatisfied,4% are dissatisfied whereas 16%

respondents are highly satisfied with insurance product, 54% are satisfied, 26% respondents are

average satisfied with the insurance policies.

44
Q11. Would you like to recommend the Bajaj Allianz Life Insurance products to your close ones?

Options No. of Respondents Percentage of Respondents (%)

Yes 23 46

May be 20 40

No 7 14
Total
50 100

Table no. - 16 :Recommendation of Bajaj Allianz life insurance company.

14%

46%
yes May be No

40%

Interpretation

According to the data, 46% respondents say yes to recommend the insurance product, 40%

respondents may be recommend and 14% respondents say no to recommend Bajaj Allianz life

insurance product .

45
 CHAPTER-V

FINDINGS AND CONCLUSION

46
 FINDINGS AND CONCLUSION

This chapter deals with the major findings of the study which are as follow:

From all the 50 respondents, 70% of respondents are associated with Bajaj Allianz more
than 3 years.

Returns and need to save tax is the main reason for investing in Bajaj Allianz life
insurance product.

86% of respondents among all 50 respondents are getting the adequate customer support
i.e. after sale services.

Online services is mostly preferred among all the respondents.

Almost all the respondents, rate the website of company is very good and useful to them
on different parameters.

Online mode of Payment of premium is most likely in all the 50 respondents.

Among all the respondents, 82% of the respondents getting the sufficient information
about the companies new policies and updation.

Online download policy facilities is provided to almost all the respondents.

86% of respondents among all respondents get policy status time to time by the Bajaj
Allianz life insurance company.

Mostly respondents preferred online grievance registration option for their complaints
regarding the insurance product.

Almost all the respondent rate the insurance agent or market representative is highly
satisfied.

47
 60% of respondents are highly satisfied with the overall services of the company after the
purchase of the policy or insurance product.

CHAPTER-VI

RECOMMENDATIONS AND
SUGGESTIONS

48
 Suggestions & Recommendations

Here are some suggestions, which may help to strengthen the firm further:

Many of the insurance care consultants of the Bajaj Allianz. has the lack of good
communication skills and training. So training should be given to them.
Bajaj Allianz should use new techniques of satisfying customer.
Customer support services should be more improved by the company.
People must be made aware of the benefits of the policies of Bajaj Allianz.
The company should give personal attention to each customer.
Proper assistance should be provided to the customer at the time of claim settlement.
All the details about the company should be given to the customers.
Regular advertisement of the company should be given TV and Newspaper.
The company must try to find new markets especially in the rural areas.
The company should do frequent analysis of the competitors.

49
 BIBLIOGRAPHY

Books

Kothari C.R.,Research Methodology, WishwaPrakashan, edition- Ist (1999) , New

Delhi.
Buttle Francis., Customer Relationship Management,PrenticeHall of India, edition-6th
(2010), New Delhi.
Gupta P.K., Insurance and Risk Management, Tata McGraw Hill, edition-6 th (2004),
New Delhi.
Websites
http://www.irda.com/documents/2009/9_Cristi%20Constantin_FFF.pdf.
http://www.bajajallianz.com/~libimage/theses/abstracts/b19532519a.pdf
http://www.wikipedia.com/readings/yang/Measuring%20customer%20perceived
%20online%20service%20qualityscale%20development%20and%20managerial
%20implications.pdf
www.google.com

50
 APPENDIX

Questionnaire

A study on Customer Satisfaction towards after sale services offered by Bajaj Allianz Life
Insurance Company.

Dear Sir / Madam,

I am NISHA JAIN, student of KAMAL INSTITUTE OF HIGHER EDUCATION AND

ADVANCED TECHNOLOGY conducting survey on Study on Customer Satisfaction towards
after sale service offered by Bajaj Allianz Life Insurance Company. Please give your precious
time in filling answers to the following questions.

Personal Details:

Name:

Gender: Male ( ) Female ( )

Age: (a) less than 30 ( ) (b) 30-40 ( ) (c) 40-50 ( ) (d) more than 50 ( )

Occupation: ( a) self employed / business ( ) (b) pvt /govt. service ( ) (c) student ( )

Annual Income: Below 2L-3L ( ) 3L 4L ( ) 4L 5L ( )Above 5L ( )

Q.1 How long has you been associated with Bajaj Allianz Insurance as a policy holder?

a) Less than 6 months ( ) c) 1-3 years ( )

b) More than 6 months ( ) d) Over 3 years ( )

Q.2 Reason for investing in Insurance Plans of Bajaj Allianz Life Insurance?

a) Returns ( ) c) Recommended by family and friends ( )

b) Need to save tax ( ) d) Multiple offers (invst,insurance,taxetc) ( )

51
Q.3 Are you getting the adequate customer support. (After sale service)

a) Highly satisfied ( ) c) Average ( )

b) Satisfied ( ) d) Unsatisfied ( )

Q.4 Which is your choice of best after sale services given by the Bajaj Allianz Life Insurance?

a) Online Services ( )
b) Insurance agent services / Personal attention services ( )
c) Telephonic services ( )
d) Mail or Post services ( )

Q.5 What type of facility Bajaj Allianz provide to pay premium for the insurance policy?

a) Through online ( ) c) By paying in branch office ( )

b) Agent comes to collect premium ( ) d) None of these ( )

Q.6 Are you getting the suffient information about the companies new policies and updation?

a) Yes ( ) b) No ( )

Q.7 Are you getting the claim status inquiry / renewal policy status / maturity of policy status
time to time from the Company ?

a) Yes ( ) b) No ( )
Q.8 What type of platform they provide to register grievance?
a) No grievance ( ) c) Complaint register in branch office ( )
b) Online grievance registration ( ) d) By posting a letter ( )

Q9. Rate the overall services of the company after the purchase of the policy or insurance
product
HIGHLY SATISFIED AVERAGE DISATISFIED HIGHLY
SATISFIED DISATIFIED

52
Q10. Rate the overall satisfaction with the insurance policies or insurance product of the
companies.

HIGHLY SATISFIED AVERAGE DISATISFIED HIGHLY

SATISFIED DISATIFIED

Q11. Would you like to recommend the Bajaj Allianz Life Insurance products to your close
ones?

a) Yes ( ) b) May be ( ) c) No ( )

53
54