pavan paliwauyl
TRANSCRIPT
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PROJECT REPORT
ON
Comparative analysis of the LIC & Bajaj AllainzLife Insurance products with reference to
customer
SUBMITTED IN THE PARTIAL FULFILLMENT OF THEREQUIREMENT OF
MBA PROGRAMME
2011-2012
DEPARTMENT OF MANAGEMENT STUDIES
SHRINATH JI INSTITUTION OF TECHNOLOGY &ENGINEERING
SUBMITTED BY : SUBMITTED TO:
PAWAN PALIWAL
ASHUTOSH DAGA
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PREFACE
For a management student theoretical knowledge as well
as practical orientation expose one self experiences, one can
again be mastering it is best possible time, MBA curriculum has
been finding tuned in such a way that a student not apply the
theoretical knowledge but also gain in a practical since. These
electives can be attend through application of theory tools
concepts and techniques of managements.
Balanced theoretical and practical knowledge are essential
for every MBA student. Sometime I felt that theoretical
knowledge is not enough on the field, so practical Knowledge is
more important than theoretical.
As a student of MBA, I have undergone a practical training
at Bajaj Allianz life insuranceCompany of Udaipurand the
objective of the research is to compare the companys credibility
with other insurance companies prevailing in the market and to
study companys plan.
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ACKNOWLEDGEMENT
It gives me an immense pleasures to acknowledgmentgratefully that debt of all those persons who have been kind
enough for rending there helps and valuable guidance in the
preparation ofBAJAJ ALLIANZ.
This assistance was offered to me in different form like
dissemination of information regarding activities in the Insurance
in which proved helpful in completing this project report.
I shall always be indebted for giving me opportunity to
undergo this summer training in such a prestigious and
professional organization and also for their immense contribution
towards execution and completion of this project.
I am thankful especially ASHUTOSH DAGA SIR, for their
guidance support in accomplishing this summer training
successfully.
Last but not least, I am thankful to God, my parents and all
those who supported & encouraged me.
(PAWAN PALIWAL)
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CONTENTS
1 INTORODUCTION OF THE COMPANY 01-05
2 INSURANCE 06-07
3 OBJECTIVE OF STUDY & RESEARCH
METHODOLOGY 08-18
4 PLANS OF COMPANY 19-22
4 PRODUCTS OF THE COMPANY 23-29
5 COMPARISION OF THE PLAN 30-32
6 MARKET SHARE OF THE COMPANY 33-34
7 FINDING & ANALYSIS 35-47
8 CONCLUSION, SUGGESTION &
LIMITATIONS 48-51
9 BIBLIOGRAPHY 51-52
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CHAPTER 1
INTRODUCTION OF BAJAJ ALLIANZ
THE COMPANY
Bajaj Allianz Life Insurance Company is a joint venture
between two leading conglomerates, Bajaj Auto Limited, one of
largest manufactures of motorcycles and scooters in the world,
and Allianz AG of Germany one of the largest insurance
companies. Bajaj Allianz Life Insurance Co. Ltd. was incorporated
on 12th March 2001. The company received the Insurance
Regulatory and Development Authority (IRDA) certificate of
Registration (R3) No 116 on 3rd August 2001 to conduct Life
Insurance business in India.
Bajaj Allianz Shareholder Capital Base stands at Rs. 500
crore with Bajaj Auto Limited and Allianz AG of Germany holding
74% and 26% stake respectively. It is the largest private player in
the Insurance Industry in India with a market share of around 34%
amongst the private companies and second to LIC. The total
market share of Bajaj Allianz as of 31st March 2012 is at 12%.
During the financial year 2011-2012, Bajaj Allianz has sold
over 15 lakh policies and collected about Rs. 4543 crore as
premium income. Whopping growth of 216% for the FY 2011-12,
Assets under management of Rs. 3524 crore. It has paid up Rs
950 crores with IRDA as a caution deposit. Bajaj Allianz has
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insured lives for sum assure of over Rs 8500 crore.
CHAPTER 2
INSURANCE
Insurance is an integral part of everyones life in present
scenario. Insurance or assurance is a device for indemnifying or
guaranteeing an individual against loss. Reimbursement is made
from a fund to which many individuals exposed to the same risk
have contributed certain specified amounts, called PREMIUMS.
Payments for an individual loss, divided among many, do not fall
heavily upon the actual loser. The essence of the contract of
insurance, called a POLICY is mutuality.
The entity that is transferring the risk, which may be an
individual or association of any type, including a government or
government agency-, is called INSURED. The entity accepting
the risk is called the INSURER. The agreement between the two
by which the risk is transferred is called the POLICY. This is a
legal contract that sets out exactly the terms and conditions of the
coverage. The fee paid by the insured to the insurer for assuming
the risk is called PREMIUM. This is usually determined by the
insurer to fund estimated future claims paid, administrative costs
and profits.
The major operations of an insurance company are
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underwriting, the determination of which risks the insurer can take
on; and rate making, the decisions regarding necessary prices for
such risks. The underwriter is responsible for guarding against
adverse selection, wherein there is excessive coverage of high risk
candidates in proportion to the coverage of low risk candidates. In
preventing adverse selection, the underwriter must consider
physical, psychological, and moral hazards in relation to
applicants. Physical hazards include those dangers, which
surround the individual or property, jeopardizing the well being of
the insured. The amount of the premium is determined by the
operation of the law of averages as calculated by the actuaries. By
investing premium payments in a wide range of revenue-producing
projects, insurance companies have become major suppliers of
capital and they rank among the nations largest institutional
investors.
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LIFEINSURANCEIN INDIA
In India, insurance started with life insurance. It was the early
19th Century. It started with English Companies like. "The
European the Albert". The first Indian insurance company was the
Bombay Mutual Assurance Society Ltd. formed in 1870.
Nationalization of life insurance in India
In 1956, Life insurance business was nationalized and LIC of
India came into being on 01.09.1956. The government took over
the business of 245 companies. Relevant laws were amended in
1999 and LIC's monopoly right to transact life insurance business
in India came to end.
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CHAPTER 3
OBJECTIVES ANDRESEARCH METHODOLOGY
OBJECTIVES
To understand the new unit gain plan and child care plan.
Comparative analysis of the life insurance products available
in the market which is done by the help of following:-
Research methodology used : Primary data collected by
visiting the leading life insurance companies like LIC, ICICI
Prudential, Aviva, Birla Sun Life Insurance, HDFC Standard
Life, Tata AIG Educare, OM KOTAK Mahindra.
Data Collection:
Questionnaires filled by various income groups.
Internet (by searching about the investment plans of other
companies).
Action plan:
Firstly, collecting information from newspapers &
magazines like Economic Times, Financial Express, Business
India, The Times of India, and Internet.
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Secondly, getting the questionnaires filled (about 50) to find
out which company they prefer for life insurance policies, what are
the specific features of their policies, whether they treat insurance
as an investment option or a security option.
Finally, analyzing the data collected and comparing the
insurance companies to show the market credibility of BAJAJ
Allianz among other private life insurance companies.
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RESEARCH: AN INTRODUCTION
Research is defined as human activity based on intellectual
application in the investigation of matter. The primary aim for
applied research is discovering, interpreting, and the development
of methods and systems for the advancement of human
knowledge on a wide variety of scientific matters of our world and
the universe. Research can use the scientific method, but need not
do so.
The word research derives from the French recherch, from
recherch, to search closely where"chercher"means "to search";
its literal meaning is 'to investigate thoroughly'.
Definition of Research
Research is an ORGANIZED and SYSTEMATIC
way of FINDING ANSWERS to QUESTIONS.
SYSTEMATIC because there is a definite set of procedures
and steps which you will follow. There are certain things in the
research process which are always done in order to get the most
accurate results.
ORGANIZED in that there is a structure or method in going
about doing research. It is a planned procedure, not a
spontaneous one. It is focused and limited to a specific scope.
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FINDING ANSWERS is the end of all research. Whether it is
the answer to a hypothesis or even a simple question, research is
successful when we find answers. Sometimes the answer is no,
but it is still an answer.
QUESTIONS are central to research. If there is no question,
then the answer is of no use. Research is focused on relevant,
useful, and important questions. Without a question, research has
no focus, drive, or purpose.
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OBJECTIVE OF RESEARCH
The purpose of research is to discover answer to questionthrough the application of scientific procedures .the main aim of
research is to find out the truth which is hidden and which has not
been discovered as yet. Though each research study has its own
specific purpose, we may think of research objective as falling into
a number of following broad groupings:-
1. To gain familiarity with a phenomenon or to achieve new
insights into it (studies with this object in view are term as
exploratory or formulative research studies).
2. To portray accurately the characteristics of a particular
individual, situation or a group (studies with this object in view
are known as descriptive research studies).
3. To determine the frequency with which something occurs or
with which it is associated with something else (studies with this
object in view are known as diagnostic research studies).
4. To test a hypothesis of a casual relationship between variables
(such studies are known as hypothesis-testing researchstudies).
Types of research:-
1. Descriptive vs. analytical.
2. Applied vs. fundamental.
3. Quantitative vs. qualitative.
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4. Conceptual vs. empirical.
Research methods
Exploratory research, which structures and identifies new
problems.
Constructive research, which develops solutions to a
problem
Empirical research, which tests the feasibility of a solution
using empirical evidence
Research can also fall into two distinct types:
Primary research
Secondary research
Research methods used by scholars include:
Action research
Case study
Classification
Delphi method
Experience and intuition
Experiments
Interviews
Mathematical models
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Participant observation
Questionnaires
Simulation
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RESEARCH APPROACHES
There are two basics approaches of research approaches
viz: Quantitative approach and qualitative approach.
1. Quantitative approach : -
It involves generation of data in quantitative form which can
be subjected you rigorous quantitative analysis in a formal and
rigid fashion. This approach can be further classified into:-
(a) Inferential approach.
(b) Experimental approach.
(C) Simulation approach.
2. Qualitative approach :-
It is concerned with subjective assessment of attitudes,
opinions and behavior. Research in such a situation is a function of
researchers insights and impressions. Such an approach to
research generates results either in non- quantitative form or in the
form which are not subjected to rigorous quantitative analysis.
Generally the techniques of focus group interviews, projective
techniques and depth interviews are used.
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RESEARCH PROCESS
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Bajaj Auto Limited
Bajaj Auto Ltd, the flagship company of the Rs. 8000 croreBajaj group is the largest manufacturer of two-wheelers and three-
wheelers in India and one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand
image & brand loyalty synonymous with quality & customer focus.
With over 15,000 employees, the company is a Rs. 4000 crore
auto giant, is the largest 2/3-wheeler manufacturer in India and the
4th largest in the world. AAA rated by Crisil, Bajaj Auto has been in
operation for over 55 years. It has joined hands with Allianz to
provide the Indian consumers with a distinct option in terms of life
insurance products.
As a promoter of Bajaj Allianz Life Insurance Co. Ltd., BajajAuto has the following to offer -
1. Financial strength and stability to support the Insurance
Business.
2. A strong brand-equity.
3. A good market reputation as a world class organization.
4. An extensive distribution network.
5. Adequate experience of running a large organization.
6. A 10 million strong base of retail customers using Bajaj
products.
7. Advanced Information Technology in extensive use.
8. Experience in the financial services industry through Bajaj
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Auto Finance Ltd.
Allianz AG
Founded in 1890 in Berlin, Allianz is now present in over 70
countries with almost 174,000 employees. At the top of the
international group is the holding company, Allianz AG, with its
head office in Munich.
Allianz 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 insurers with operations in
over 70 countries. Further, the Group provides Risk Management
and Loss Prevention Services. Allianz has insured most of the
world's largest infrastructure projects (including Hong Kong Airport
and Channel Tunnel between UK and France), further Allianz
insures the majority of the fortune 500 companies, besides being a
large industrial insurer, Allianz has a substantial portfolio in the
commercial and personal lines sector, using a wide variety of
innovative distribution channels.
ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE
Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 cr.
3rd largest Assets under Management (AUM) & largest
amongst Insurance cos. - AUM of Rs.51, 96,959 cr.
12th largest corporation in the world
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49.8 % of global business from Life Insurance
Established in 1890, 110 yrs of Insurance expertise
Achievements
Bajaj Allianz have till date got the competitive pricing and
quick, honest response and has earned the customers trust and
the leadership in the market place of general insurance.
The advantageous benefits of Bajaj Allianz
The main advantage of Bajaj Allianz is the overall global
expertise which it has and the market experience the company has
achieved ion order to gain the trust of the members.
The added advantage of Bajaj Allianz is that it has a well
knowledge of the local market and has gained the added benefit
through its alliance experience.
The Bajaj Allianz offers the best services and the best in the
industry innovative insurance packages to match the individual
needs.
According to the customer talk the claims period is very
much less when compared to the other insurance companies
which are prevailing in India.
Benefits offered by a health guard policy
The Bajaj Allianz general insurance policy offers the best in
the market as it covers the most expensive medical care through
its healthy guard policy. The health guard policy offered by the
Bajaj Allianz group also covers the costs incurred during the pre
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and post hospitalization resulting from serious accident and illness
and also covers the emergency ambulance service up to a limit of
1050 Rs.
CHAPTER 4
PLANS OF THE COMPANY
New Unit Gain Plus
It is a unit linked plan of Bajaj Allianz that takes care of a
persons wealth by providing flexibilities in savings and
investments and options for protection needs.
HOW TO GET STARTED
This gets started by opening an account with a minimum
premium of :
Rs 15000/- p.a. for annual mode.
Rs 7500/- p.a. for half-yearly mode.
Rs 5000/- p.a. for quarterly mode.
HOW DOES THE PLAN WORK
The premiums paid are invested in fund/funds of your choice
(depending on the allocation rate) & units are allocated depending
on the price of units for the fund/funds. The value of your policy is
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the total value of units that you hold in the fund/funds. The
insurance cover charges are deducted through monthly
cancellation of units. The fund Administration Charge and Fund
Management Charge are priced in the unit value
BENEFITS
DEATH BENEFIT :
In case of unfortunate death the beneficiaries are entitled to
the Sum Assured less withdrawals or the bid price of units,
whichever is higher. If the age of the life assured is less than 7 or
above 70, then the bid price of the units is paid.
LIQUIDITY OPTION :
There is no maturity date for this plan. . Anytime afterpayment of 3 full years premiums, you may withdraw the money,
depending on your requirements, through partial or complete
surrender of units.
Additional Protection for You and Your Family :
You have the option to add the following four additional
benefits, providing total protection against uncertainties.
Accidental Death Benefit.
Accidental Permanent Total/Partial Disablement
Benefit.
Critical Illness Benefit (CI).
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Hospital Cash Benefit (HC).
AGE LIMITSAge at entry :
Minimum age of entry: 0 years (Completed years)
Maximum age of entry: 60 years (Completed years)
CHILD CARE PLAN
Taking care of a child is perhaps the most important job a
parent can have. It is but natural that you would like to give your
child your best, and therefore, this is the time when careful
financial planning can help you fulfill the aspirations that you have
for your children. The Bajaj Allianz Child Care Solutions help you
to enjoy the joys of parenthood responsibly, with the reassurance
of a secure future for your child.
CHILD CARE PLAN OFFERS
Child Care plan is a children money back plan with profit. Bajaj
Allianz Child Care offers a wide array of solutions that allows you
to plan for your childs future by providing you with as many as 4
distinct and unique options.
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Child Care 21
Child Care 24
Child Care 21 Plus
Child Care 24 Plus
START OF LIFE BENEFIT
This is a unique feature of Bajaj Allianz Child Care 21 Plus
& 24 Plus. These packages offer you the choice of providing a
unique Start of Life Benefit for your child. For a nominal amount,
an additional Sum Assured subject to a maximum limit of Rs.10
Lacks will become payable to enable the child start hi/her
professional life smoothly, in case of an unfortunate death or
Accidental Permanent Total Disability of the Policy holder during
the term of the policy. This benefit will not be available in the event
of accidental permanent total disability after age 65 of the policy
holder.
IN-BUILT BENEFITS
A) PREMIUM WAIVER BENEFIT:
In case of death or Accidental Total Permanent Disability of
the policyholder during the premium payment term, all future
premium payments are waived. This benefit will not be available in
the event of accidental permanent total disability after age 65 of
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the policy holder.
B) FAMILY INCOME BENEFIT:
In case of death or accidental total permanent disability of the
policy holder during the term of the policy, a monthly income
benefit of 1% of the sum assured (12% per annum) becomes
payable till the end of the policy term (subject to a maximum of Rs.
1,20,000 per annum). This benefit will not be available in the event
of accidental permanent total disability after age 65 of the
policyholder
C) OPTION TO PURCHASE FURTHER INSURANCE AT
MATURITY:
For ensuring continuity of the valuable insurance protection
that the child was enjoying, we offer the child and option to
purchase a with profits endowment or an equivalent plan from
Bajaj Allianz Life Insurance Company for twice the amount of face
value of this policy, without any medical examination, on the
premium rates prevailing at that time. (The application must be
made at least 6 months prior to maturity of this policy).
PAYOUT STRUCTURE
For Child Care 21 and Child Care 21 Plus: The minimumguaranteed payouts are as follows:
Policy Anniversary following
completion of Age 18 19 20 21
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Payout as % of sum Assured 20% + AccruedBonuses
25% 25% 35%
For Child Care 24 and Child Care 24 Plus: The minimum
guaranteed payouts are as follows:
Policy Anniversary followingcompletion of Age 18 20 22 24
Payout as % of Sum Assured 25% + AccruedBonuses 25% 25% 40%*
* Refers to probable increase in payout based on higher
interest during the payout period.
DEATH PAYOUT
In the event of unfortunate death of the child during the
policy terms, the payouts shall be as under
AgePayout
Below 7 years Premiums paid will be refunded without interest and thepolicy will terminate.
Above 7 years andbelow 18 years Sum assured with accrued bonuses will be paid and the
policy will terminate.
Above 18 years andbelow 24 years
Outstanding payouts will be paid as one lump sum and thepolicy will terminate.
HOW TO GET STARTED
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This gets started by opening an account with a minimum
premium of:
Rs.5000/- p.a. for annual mode.
Rs 2500/- p.a. for half-yearly mode.
Rs 2000/- p.a. for quarterly mode.
Rs.700/- p.a. for monthly mode.
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AGE LIMITS
Eligibility Conditions Child Care 21 and ChildCare 21 Plus
Child Care 24 and ChildCare 24 Plus
Minimum age of thepolicyholder 20 20
Maximum age of policyholder50 50
Minimum age of child0 0
Maximum age of child13 13
Minimum PremiumRs.4850 Rs.4850
Minimum Premium PaymentTerm 5 5
Maximum Premium PaymentTerm 18 18
Maximum age of child at
maturity 21 24
Maximum Sum AssuredRs. 50,00000 Rs. 50,00000
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CHAPTER 5
COMPARISION OF PLANS
NEW UNIT GAIN PLUS Vs LIFE TIME (ICICI Pru.)
FEATURES NEW UNIT GAIN PLUS LIFE TIME
Age 0-60 Years 0-60 Years
Term Choice rests with aminimum period of
payment of 3 years.
Choice rests with a minimum periodof payment of 3 years.
Sum Assured
Minimum Sum Assured is 5times the premium paid.Maximum Sum Assured isas per the limits set per agebands.
Choice of choosing the sumassured subject to a minimum sumassured of Rs. 1 Lakh.
SurvivalBenefit
Value of fund at Bid Price. Value of units (3rd year onwards)
Death Benefit
Higher the Sum Assured orvalue of units. However, thevalue of units will treated asdeath benefit if the LifeAssured is > 7 years or 7 years or < 70years.
WithdrawalBenefit
Partial or completewithdrawals at bid price
after 3rd year.
Partial or complete withdrawal areavailable from 3rd year onwards.
Contribution Minimum: Rs. 15,000 p.a Rs. 18,000 p.a.
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NEW UNIT GAIN PLUS Vs AVIVA LIFE LONG
FEATURES NEW UNIT GAIN PLUS AVIVA LIFE LONG
Age 0-60 Years 18-60 Years
Term Choice rests with a minimum periodof payment of 3 years.
Choice rests withinvestor ,he needs tospecify at the time ofpurchasing policy.
Sum Assured Minimum sum assured is 5 times thepremium paid. Maximum sum
assured is as per the limits set perage bands.
The investor has to choosethe death benefit from 3
levels (minimum, standardand maximum).
SurvivalBenefit
Value of Fund at Bid Price. Unit value(after adjustmentof 5% bid offer price).
Death Benefit Higher the Sum Assured or value ofunits. However, the value of units willtreat as death benefit if the LifeAssured is > 7 years or < 70 years.
Higher of fund value orSum Assured. However,the value of units will betreated as death benefit ifthe Life Assured is > 7years.
WithdrawalBenefit
Partial or complete withdrawals atbid price after3rd year.
Partial or completewithdrawal after 3rd year
after adjusting for 5% bid-offer spread. Minimum
withdrawal is Rs. 5,000.
Contribution Minimum: Rs . 15,000 p.a Not specified.
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CHILD CARE Vs SMART KID (ICICI Pru.)
FEATURES CHILD CARE SMART KID
Plan Type Anticipated Endowment. Anticipated Endowment.
Min Max Term Matures when the child reaches theage of 21 or 24. Premium paid till childreaches age 18.
Matures between 22-25years of child. Term is 10-25 tears.
Min Max Age of Child 1-13 Years. 0-12 Years.
Min Max Age of Parent 20-50 Years. 20-60 Years.
Payment Modes All regular premiums. All regular premiums.
Life Assured Child is insured. But premiumwaiver rider available for parent.
Parent.
Beneficiary Child Child.
CHILD CARE Vs HDFC CHILD PLAN
FEATURES CHILD CARE HDFC CHILD PLAN
Plan Type Anticipated Endowment. Endowment.
Min Max Term Matures when the childreaches the age of 21 or 24Premium paid till child reaches age 18.
10-25 Years.
Min Max Age ofChild
0-13 Years. _
Min Max Age ofParent
20-50 Years. 18-60 Years.
Payment Modes All regular premiums. All regular premiums.
Life Assured Child is insured. But premium waiver rideravailable for parent.
Parent.
Beneficiary Child. Child.
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CHAPTER 6
MARKET SHARE OF BAJAJ ALLIANZ IN LIFE
INSURANCE COMPANIES IN INDIA
COMPANIES % OF SHARE
1. BAJAJ ALLIANZ 34
2. HDFC STANDARD 7
3. ICICI PRU 20.8
4. TATA AIG 6
5. BIRLA SUNLIFE 6.5
6. MAX NEW YORK LIFE 6.2
7. OM KOTAK 5.7
8. AVIVA 3.7
9. ING VYASA 3.5
10.STATE BANK OF INDIA LIFE 4.1
11. METLIFE 1.1
12. AMP SAMNAR 1.2
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TOTAL MARKET SIZE: INR 205 BILLION
FINDING AND ANALYSIS OF PROJECT
The project titled, as MARKET CREDIBILITY OF BAJAJ
ALLIANZ AMONG OTHER PRIVATE LIFE INSURANCE
COMPANIES required research to be done. The market credibility
required the collection of Primary Data as well as the Secondary
data. The credibility literally means the market value and the
market positioning of a particular brand or a company among its
competitors. BAJAJ Allianz is one of the private life insurance
companies, which came into existence in 2001. Market credibility
can be checked by seeing the awareness of people about a
particular company and its share in the market. Comparing the
products of term policies as well as the endowment policies
Primary data :
Questionnaire filled by people who was interviewed.
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Data :
(i) Data collected for companies from various sitesavailable of the life insurance companies.
(ii) Data collected from newspapers and the various policies of
BAJAJ Allianz and other private life insurance companies.
Sample size : Fifty (50)
Analysis tools : Pie Charts, Bar Charts.
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CHAPTER 7
(A) FINDINGS OF PROJECT
There were about 8 questions in the questionnaire on the
basis of which the findings were done and the analysis was made.
The responses to the questions in the questionnaire are presented
in the form of statistical tools such as pie charts and bar charts.
There were 50 people being interviewed from different income
groups and age groups.
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1. Do you have a life insurance policy? If yes, then of which
company/companies?
PEOPLE HAVING INSURANCE POLICIES
72%
28%
Yes
No
% OF INSURED POPULATION IN VARIOUS
COMPANIES
28%
32%
8%
17%
3%6%
6%0% Bajaj Allianz
LIC
Max Newyork
ICICI PruTATA AIG
Birla sun life
AVIVA
Out of the 50 insurable people interviewed nearly 72% people have
taken insurance policy. Out of this population being interviewed nearly 32 %
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had LIC policy, 28 % had BAJAJ Allianz, followed by ICICI Pru. (17 %), Max New
York Life (8 %) , TATA AIG(3%), Birla Sun Life (6%), Aviva and HDFC having 6%
shares each in the interviewed population.
2. Do you see insurance policies as an investment alternative
or a security option?
Out of the 50 people interviewed 78 % people term/see
insurance policy as a security option while only 22 % see it as aninvestment option.
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3. Please rank the following as per your preference to
investment in a financial year:
Out of 50 being interviewed, 18 people invest in life
insurance policies, 16 people invest in shares, 12 people invest in
mutual funds and 4 people invest in government bonds.
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4. What is your criteria/criterion to select a particular insurance
company and a scheme?
Out of 50 people being interviewed, 15 people select an
insurance company on the criterion of security, 5 people select an
insurance company on the criterion of time span, 2 people select
an insurance company on the criterion of market share, 8 people
select an insurance company on the basis of return and 20 people
select an insurance company on the basis of all the abovementioned reasons.
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5. Rank the life insurance companies in the order of preference:
FIRST PREFERENCE OF PEOPLE AMONG PVT. LIFE
INSURANCE COMPANIES
46%
24%
14%
16%
BAJ AJ Allianz
ICICI Prudential
Max Newyork
HDFC
Out of 50 people interviewed, 46% had BAJAJ Allianz as their
first preference for a pvt. Life insurance company followed by ICICI
Prudential having 24 % preference followed by HDFC Life
insurance having 16% market share and lastly Max New York Life
Insurance.
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6. Do you think that private life insurance companies are as safe
as LIC for taking a policy?
Out of 50 people being interviewed, 62 % of people do not
find private life insurance companies to be safe for buying a life
insurance policy whereas 38 % people find them safe for buying a
life insurance policy from a private life insurance company.
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7. BAJAJ Allianz is quite a famous company because:
Out of 50 people interviewed, 16 % people perceive policies
of BAJAJ Allianz make it a famous company while 20% think it is
due to the parent companies, 24% take it as marketing and
advertising strategies which appeal to the mass population while
40 % think it is all due to the above mentioned reasons that BAJAJ
ALLIANZ is a famous company.
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8. Are you satisfied with your existing policy/policies?
Out of 50 interviewed, 69% of the people were satisfied with
their life insurance policies while only 31% of people were not
satisfied.
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(B) ANALYSIS OF PROJECT
Analysis of a research project is based on the primary data
which is being collected from various sources to take out some
conclusions of the research study being taken. In my project my
purpose was to find the market credibility of BAJAJ Allianz among
various other private life insurance companies. For this a
population of 50 people was being interviewed having different
lifestyles, different incomes, different occupations yet the point
which was kept in mind was that this interviewed population was
insurable.
The questionnaire filled up by people revealed that nearly
36 people i.e. about 72% people have life insurance policies. This
is due to the fact that people now have started realizing that life is
very uncertain and it is advisable to have a life insurance policy.
Nearly, 24 % people had LIC policy and 20% people have BAJAJ
Allianz as their life insurance policy. The reason that people have
more LIC policy is that it is an old company for life insurance and
secondly it is a government-controlled organization.
Secondly,when enquired about the perception of people
about insurance policies, nearly 39 people i.e. about 78% people
see it as a security option for their families financially so that if
they are not alive some day, their family does not go in vain.
While 11 people i.e. about 22% people see it an investment
option to save taxes and get returns.
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Thirdly, when asked about their investments in various
alternatives, 18 people gave life insurance policies their first
preference for investment whereas 16 gave shares as their first
preference followed by mutual funds (12) and lastly government
bonds. This clearly shows that people are risk averse to a large
extent as largest numbers of people like to invest in life insurance
policies to make sure that there is security.
Fourthly, when they were asked about the criterion of
choosing a life insurance company 15 people replied that they
see the security point of view to buy a life insurance company. 5
people chose time span as the criteria to choose a life insurance
company. 2 people chose the market share of the company as
the preferred criteria of choosing the life insurance company. 8
people chose the returns of life insurance companies as the
criteria for choosing a life insurance company.
Nearly, 20 people chose all the above mentioned
reasons to choose a life insurance company. When the
sample population was interviewed about their 1st preference
among the Pvt. Players, nearly 46% people chose BAJAJ Allianzas the 1st insurance company, 24% people chose ICICI Prudential
as the 1st preference, and 16% chose HDFC as the 1st insurance
company and 14% people chose Birla Sun life as the 1st preferred
company. When sample size was asked about safetyness of an
insurance policy as compared to LIC policy nearly 62 % people
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replied that they do not find private life insurance companies as
safe as LIC, this is due to the fact that LIC had monopoly into life
insurance till 2000. Only after 2000, private companies have
come in the field of Life Insurance Company.
Proceeding further, when sample population was asked to
recognize the punch line of BAJAJ Allianz nearly 60 % of the
population was able to recognize the punch line of BAJAJ Allianz
which clearly indicates that BAJAJ Allianz is a well known life
insurance company among the people. Followed by it, when
sample size was interviewed about the reasons of famousness of
BAJAJ Allianz 16% of people chose its policies as the reason for
its famousness, 20% people chose its parent companies as the
reason for its popularity, 24% agreed for its marketing and
advertising strategies to be the prime cause of its popularity
among masses.
Whereas 40% population agreed to all of the above
mentioned reasons to be causes of the popularity of BAJAJ
Allianz. When asked about the satisfaction with the existing
insurance policies nearly 69% people said that they are satisfiedwith their policy whereas only 31% people were not satisfied with
their policy. They wanted the additional features of transparency
about the returns after when they have stopped paying the
premiums. Also they wanted higher rate of returns at the end of
payment of premiums.The questionnaire being filled by the
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people clearly indicated that BAJAJ Allianz has a better standing
in the field of life insurance in India among other private life
insurance companies. As we all know that India provides a great
potential for all the life insurance companies to grow provided
they adopt the right kind of marketing & distribution strategy.
Although BAJAJ Allianz is a market leader among the private life
insurance companies but it is way behind LIC because LIC is a
government organization and also it is a much older life
insurance company.
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CHAPTER 8
CONCLUSION, LIMITATIONS AND SUGGESTIONS
CONCLUSION
The research project titled as MARKET CREDIBILITY OF
BAJAJ ALLIANZ AMONG OTHER LIFE INSURANCE
COMPANIES enabled to understand the competition among the
various life insurance companies, which have entered Indian
market of life insurance after 2000 when private life insurance
companies were allowed to enter the Life insurance sector in
India.
BAJAJ Allianz is one of the companies in the private sector
which are doing exceptionally good in this sector due to their
policies to which people find very attracting according to their
needs. When people were interviewed about the first preference
among the private life insurance companies nearly 46% replied
for BAJAJ Allianz, this clearly indicates that BAJAJ Allianz is quite
a household name.
The reasons for this are many like it is a company with very
strong brand names : BAJAJ Auto Limited which is the no. 1
Automotive Manufacturer in India also Allianz AG is 3 rd largest life
insurance company in the world. The market share of BAJAJ
Allianz also around 34% among private life insurance companies
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which is quite high among private life insurance companies. It is
only second to LIC in the life insurance sector.
But if there are people accepting BAJAJ Allianz, there are
people who are still hesitant to take up private insurance
companys policy this is due to the fact that LIC is a government
organization. It can be seen from the study that people have
started recognizing BAJAJ Allianz as a life insurance and hence it
will grow at a much faster pace in the future.
LIMITATIONS
Following were the difficulties faced during the completion of
project:
1. Non-filling up of certain questions of the questionnaire, which
led to the cancellation of that particular questionnaire.
2. Non-understanding of certain parameters in the questionnaire.
3. Taking a sample size of 50 people does not reflect the mindset
of all kinds of people from different backgrounds, different age
groups and income groups.
4. Again research study of 2 months is a time constraint and
covering whole of Nathdwara population by taking a sample
size of 50 is not feasible.
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SUGGESTIONS
BAJAJ ALLIANZ, in the present scenario is growing at an
aggressive pace. The company does a lot of survey & analysis in
the market to discover customers needs & expectations & tries
to improvise on its existing market linked plans along with
insurance policies. In addition to this , the company from time to
time keeps on introducing various new policies & tailor made
plans exclusively to cater peoples financial needs.
This has enabled BAJAJ Allianz to become market leader
in the sector of insurance & investment companies since 2001
when it came into existence.
Since, now many other companies are joining the field of
insurance & investments, it will be necessary for BAJAJ Allianz to
vigorously pursue & update its survey & analysis policy to remain
market leader.
Simultaneously, it should discover & rediscover its strength
by introducing new plans better suited to the people at large. India
is a very big market & it can provide sustenance to all the
companies in the field of insurance & investments but to remain
one of the leading companies, BAJAJ Allianz has to adopt new
strategies earlier than others. This could include widening the
distribution networks to all parts of the country & catering to every
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income group.
Furthermore, it can improvise on its advertisements &
promotion campaigns by becoming more appealing & making them
touches the hearts of millions & billions of Indians who are the hot
prospects. Lastly, the students in the professional courses,
apprentices, trainees may be good targets to approach in times
ahead.
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CHAPTER 9
BIBLIOGRAPHY
Philip Kotlar, Marketing Management, New Delhi, Pearson
Education (P) Ltd., Indian Branch, 2004.
C.R. Kothari, research Methodology, New Delhi, New Age
International (P) Ltd.
WEBSITES
www.bajajallianzlife.co.in
www.icici.com
www.lic.gov.in
www.hdfc.com
www.kotak.com
www.birlasunlife.com
www.aviva.com
http://www.bajajallianzlife.co.in/http://www.icici.com/http://www.lic.gov.in/http://www.hdfc.com/http://www.kotak.com/http://www.birlasunlife.com/http://www.aviva.com/http://www.bajajallianzlife.co.in/http://www.icici.com/http://www.lic.gov.in/http://www.hdfc.com/http://www.kotak.com/http://www.birlasunlife.com/http://www.aviva.com/