PROJECT REPORT ON CUSTOMER PERCEPTION

TOWARDS BHARTI AXA LIFE INSURANCE Co. Ltd.

BHARTI AXA LIFE INSURANCE Co. Ltd.

Submitted by;

Praveen Kumar Pandey

MBA-M&S

Enrollment No. : - A7002210015

Specialization- Marketing & Sales

Under Guidance of:

Industry Guide; Faculty Guide;

Mr. Imran Khan Mrs. Shaili Vadera

Head Business Manager Asst. Professor

Bharti AXA Life Insurance ABS, Lucknow

((SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME MASTERS IN BUSINESS ADMINISTRATION (2010-11))

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH LUCKNOW

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STATEMENT

I, Praveen Kumar Pandey, student of AMITY UNIVERSITY (Amity Business School, Lucknow

Campus), hereby declare that all the information, facts and figures in this report are based on my own findings

and experience during my summer training in BHARTI AXA LIFE INSURANCE Co. Ltd.

I hereby also declare that the work done by me has not been copied, it is my original work.

PRAVEEN KUMAR PANDEY

MBA-MARKETING&SALES

(2010-2012)

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STUDENT’S CERTIFICATE

Certified that this report is prepared based on the summer internship project undertaken by me in Bharti AXA

Life Insurance Co. Ltd. from 25th may 2011 to 6th July 2011, under the able guidance of Assistant Professor

Mrs. Shaili Vadera in partial fulfillment of the requirement for award of degree of Master of Business

Administration (M&S) from Amity University, Uttar Pradesh.

Date._10/07/2011

Signature; Signature; Signature;

Praveen Kumar Pandey Asst. Professor Shaili Vadera Mr. V.P. Sahi

Student Faculty Guide Director (ABS)

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FACULTY CERTIFICATE

Forwarded here with a summer internship report on “Customer Perception towards Bharti AXA Life

Insurance” of Bharti AXA Life Insurance Co. Ltd. submitted by Praveen Kumar Pandey,

Enrollment No. 7002210015, a student of MBA (M&S )3 rd Semester (2010-12).

This project work is partial fulfillment of the requirement for the degree of Master in Business Administration

from Amity University Lucknow Campus, Uttar Pradesh.

SHAILI VADERA

ASST. PROFESSOR

AMITY UNIVERSITY,

LUCKNOW CAMPUS

UTTAR PRADESH

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ACKNOWLEDGEMENT

I am very much thankful to the management of the Bharti AXA life insurance Company Ltd. for giving me an

opportunity to do this project as a part of my MBA program. The completion of this project is a successful and

satisfactory outcome of so many helping hands. I think it proper to express my deep obligation to my advisers.

First and foremost, I am especially thankful to Mr. Imran Khan (Head Business Manager, Bharti AXA Life

Insurance company Ltd., Hazrat Ganj Branch, Lucknow) for giving me the opportunity to do my one and half

month project training in their esteemed organization. I am highly obliged to Mr. Amit Saxena (Business

Manager, Bharti AXA life insurance co. ltd., Lucknow) for his active co-operation and help for the completion

of my project at Lucknow. I also thankful to staff member of the organization for providing various

information for my purpose. Their suggestions are helping me in various stages.

I would also like to thank Mrs. Shaili Vadera, my faculty guide, who has been constant source of help and

inspiration to me and for her guidance without which the work could not has been possible. Above all my

regards and thanks are due to my parents, family members and friends for their continuous support during the

project.

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TABLE OF CONTENT

1.1 Synopsis 7-81.2 Objective 92 Chapter-I 102.1 Introduction 11-133 Chapter-II 143.1 Brief Introduction of Insurance 15-223.2 Promoters 22-243.3 Introduction of company & product 25-393.4 Features &benefit 40-413.5 Organization Structure 42-433.6 Competitors 44-473.7 Balance sheet 47-483.8 SWOT analysis 49-503.9 Achievement & Awards 50-513.10 Future Prospects 52-534 Chapter-III 544.1 Research methodology 55-574.2 Responses of questions 58-705 Chapter-IV & V 715.1 Findings 725.2 Conclusion 735.3 Recommendation 745.4 Bibliography 75-765.5 Annexure 77-80

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SYNOPSIS OF THE REPORT

AMITY UNIVERSITY -----UTTAR PRADESH-----

 

Amity Business School, Lucknow

SUMMER INTERNSHIP EVALUATION  

Student Name PRAVEEN KUMAR PANDEY Enrollment No A7002210015Program MBA - M&SCompany's Name and Address

Bharti AXA Life Insurance Co. LtdFirst Floor MG Marg, Motor Sales Building, Hazrat Ganj, Lucknow226001

Industry GuideName Imran KhanDesignation Head Business Manager Contact Number   Ph.(O) : 0522-4034800                  Mobile : 9935872720               

 

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Project Information

1) Project Duration : (42 Days)                    a)  Date of Summer Internship commencement (25/05/2011)                    a)  Date of Summer Internship Completion (06/07/2011)

2) Topic   CUSTOMERS PERCEPTION TOWARDS BHARTI AXA LIFE INSURANCE Co. Ltd.

3) Project Objective  

1- To know the perception of customers towards the organization.2- To know the organization position in the mind of customers. 3- To measure the effectiveness of company by measuring customer acceptance level.

4) Methodology to be adopted   Tool of data collection; Questionnaire Sample size-75, Sampling Area- Lucknow Sampling Technique- simple random sampling Data analysis- Bar graph & pie charts   5) Brief Summary of project(to be duly certified by the industry guide)   For the fulfillment of the project objective I would primarily study about the company and the insurance industry to gain a strong understanding of the market then, I would develop my questionnaire and would further proceed with my project proceedings for the fulfillment of my project objective.         Signature(Student)

Signature(Industry Guide)

Signature(Faculty Guide)

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THE OBJECTIVE OF THE PROJECT

1- To know the perception of customers towards the organization.

2- To know the organization position in the mind of customers.

3- To measure the effectiveness of company by measuring customer acceptance level.

My target was individual’s house, all the malls, local markets, local shops, dealers, the whole department of

life insurance companies etc.

Individual objective:

To interview prospective candidates to be recruited as LA, assist Managers of Agency in selecting the

candidates, make arrangements for BOP’s and to assist in their training, coding and licensing thereby

increasing the sales of the company.

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CHAPTER 1 INTRODUCTION

THEORETICAL PRESENTATION OF THE TOPIC

INTRODUCTION

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As a part of Master of Business Administration course of Amity University Uttar Pradesh Lucknow Campus,

and for the fulfillment of this course, I had to go through a six to eight weeks of summer training in a reputed

organization, which would lead to the development of my managerial skills and gives me a glimpse of practical

knowledge and market dynamics.

I joined Bharti AXA Life Insurance Co. Ltd. Lucknow Branch for the successful fulfillment of my summer

training program, and my tenure of summer internship program was from 25/May/2011 to 06/July/2011.

Bharti AXA Life Insurance Co. Ltd. is one of the big insurance providers and project specialists. Founded in

India in 2006, Bharti AXA Life Insurance Co. Limited offers insurance policies such as individual plans and

group plan for the customer.

Bharti AXA Life Insurance Co. Ltd. operations have been organized into three independent business-specific

clusters. Each of these has its own facilities for market coverage and service to customers. These different

business specific clusters are:

Individual Plans :

Bharti AXA Life Guarantee Builder

Bharti AXA Life Bright Stars

Bharti AXA Life Spot Suraksha

Bharti AXA Dream Life Pension

Bharti AXA Life Aspire Life

Bharti AXA Life Invest Confident

Bharti AXA Life Wealth Confident

Bharti AXA Life Future Confident II

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Bharti AXA Life Save Confident

Bharti AXA Life Secure Confident

Group Plans:

Bharti AXA Life – Credit Secure

Bharti AXA Life - Sanjeevani

Bharti AXA Life - Swasthya Sanjeevani

Bharti AXA Life - Sanjeevani

Bharti AXA Life Mortgage Credit Shield

Bharti AXA Life Credit Shield

I was associated with the Bharti AXA Life Insurance Co. Ltd. which provides insurance policies for customers.

The research work topic assigned to me i.e. the subject matter of study was “Consumer Perception towards

Bharti AXA Life Insurance Co. Ltd. vis-à-vis Competitive Brands”.

This topic was assigned to me to judge that what people do think and feel about Bharti AXA Life Insurance

Co. Ltd. as a brand in market in respect to its competitive brands.

The objective of the research work is to find out:

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The level of awareness of customers about Bharti AXA Life Insurance Co. Ltd.

The factors which influences customer's decision to purchase an insurance policies.

The acceptance level of customers towards Bharti AXA Life Insurance Co. Ltd and its competitive

brands.

What customers think and feel about Bharti AXA Life Insurance Co. Ltd. and other competitive brands.

To achieve the objective more efficiently a strong understanding of the market was necessary in terms of

offerings of competitive brands at different policies etc.; so to gain this information prior to starting the survey

work, I went to the market in Lucknow city to access the current trends in market place.

A lot of information which I received from my immediate head at Bharti AXA Life Insurance Co. Ltd. also

helped me a lot to come to my conclusions and recommendations.

After gathering the required information I started with my survey work; the survey was conducted in the city of

Lucknow, and the sample size chosen was 75. The tool of data collection used was questionnaire and personal

interview of some respondents from the sample were also taken to gain exact results.

A sincere effort has been made to present the information in a very lucid manner.

Praveen Kumar Pandey;

A7002210015.

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CHAPTER II

ORGANIZATIONAL PROFILE OF THE COMPANY

BRIEF INTRODUCTION OF INSURANCE

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What is insurance?

Different types of insurance

Need of life insurance

History of insurance sector in INDIA

Role of insurance in economic development.

INSURANCE INDUSTRY

Insurance industry is a booming sector. The business of insurance is related to the protection of the economic

value of asset. Every asset has a value. The asset would have been created through the efforts of the owner, in

the expectation that, either through the income generated there from or some other output, some of his needs

would be met. There is a normally expected life time for the asset during which time it is expected to perform.

Insurance is a mechanism that helps to reduce such as adverse consequences.

WHAT IS INSURANCE?

Basic aim of the insurance plan satisfies the following objectives:-

Protection of economic value of assets.

Mechanism to reduce impact of adverse events on value generating assets.

Types of insurance

Insurance is generally classified into three main categories:

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1. Life Insurance

2. Health Insurance.

3. General Insurance

To get insurance an individual or an organization can approach to Insurance Company directly, through

Insurance agent of the concerned company or through intermediaries.

Figure 1

The functions of Insurance can be bifurcated into three parts:

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1. Primary Functions

2. Secondary Functions

3. Other Functions

The primary functions of insurance include the following:

Provide Protection - The primary function of insurance is to provide protection against future risk, accidents

and uncertainty. Insurance cannot check the happening of the risk, but can

certainly provide for the losses of risk. Insurance is actually a protection against economic loss,

by sharing the risk with others.

Collective bearing of risk - Insurance is a device to share the financial loss of few among many others.

Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute

the premiums towards a fund and out of which the persons exposed to a particular risk is paid.

Assessment of risk - Insurance determines the probable volume of risk by evaluating various factors that give

rise to risk. Risk is the basis for determining the premium rate also.

Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty. Insurance is

device whereby the uncertain risks may be made more certain.

The secondary functions of insurance include the following:

Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device to prevent

unfortunate consequences of risk by observing safety instructions; installation of

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automatic sparkler or alarm systems, etc. Prevention of losses causes lesser payment to the assured by the

insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for

more business and better protection to the insured. Small capital to cover larger risks - Insurance relieves the

businessmen from security investments, by paying small amount of premium against larger risks and

uncertainty.

Contributes towards the development of larger industries - Insurance provides development opportunity to

those larger industries having more risks in their setting up. Even the financial

institutions may be prepared to give credit to sick industrial units which have insured their assets

including plant and machinery.

The other functions of insurance include the following:

Means of savings and investment - Insurance serves as savings and investment, insurance is a compulsory

way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-

tax exemptions also, people invest in insurance.

Source of earning foreign exchange - Insurance is an international business. The country can earn foreign

exchange by way of issue of marine insurance policies and various other ways. Risk Free trade - Insurance

promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies

under marine insurance cover.

BRIEF HISTORY OF INSURANCE SECTOR IN INDIA

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The business of life insurance in India in its existing form started in India in the year 1818 with the

establishment of the Oriental Life Insurance Company in Calcutta. The story of insurance is probably as old as

the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against

loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood

and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the

concept of insurance is largely a development of the recent past, particularly after the industrial era – past few

centuries – yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance

Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the

insurance companies established during that period were brought up with the purpose of looking after the needs

of European community and these companies were not insuring Indian natives.

Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the

year 1870, and covered Indian lives at normal rates.

Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The

Swedish movement of 1905-1907 gave rise to more insurance companies.

The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative

Assurance at Lahore were established in 1906.

In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the

Jorasanko, house of the great poet Rabindra Nath Tagore, in Calcutta.

The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the

Life Insurance Corporation of India was created on 1st September, 1956, with the objective of

spreading life insurance much more widely and in particular to the rural areas with a view to reach all

insurable persons in the country, providing them adequate financial cover at a reasonable cost.

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Some of the important milestones in the life insurance business in India are

1. 1850 Non life insurance debuts with triton insurance company.

2. 1870 Bombay mutual life assurance society is the first Indian owned life insurer.

3. 1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance

business.

4. 1928 The Indian Insurance Companies Act enacted to enable the government to collect statistical

information about both life and non-life insurance businesses.

5. 1938 Earlier legislation consolidated and amended to by the Insurance Act with the objective of

protecting the interests of the insuring public.

6. 1956, 245 Indian and foreign insurers and provident societies taken over by the government and

nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.

5 Crore from the Government of India.

Insurance sector reforms

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 reforms…”.

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ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT

Insurance directly or indirectly plays a vital role in the economic development of the country through the

following means:-

Life insurance is a major instrument in mobilizing the savings of the people. These savings are

channeled into investments for economic groups.

The strength of life insurance is in the fact that huge amounts are collected and pooled together for the

benefit of the policy holders.

The insurance company is in the role of fiduciary- that all decision be made for the benefit of the

community.

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THE PROMOTERS

Promoters of Bharti AXA Life Insurance plan to infuse an additional Rs 100 crore into the life company in the

July-September quarter of this fiscal to fund its expansion plans. The expansion plans include an increase in the

number of agents to 50,000 from 33,000 coupled with scaling up of distribution through 7000 Bharti outlets as

against 3000 such outlets last year. The company is also targeting new business premium of Rs 1,000 crore this

fiscal as against Rs 293 crore last year.

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"The company is taking a series of measures focusing on profitable growth, and we expect to break even by

2012-2013. The current capital base of the life insurer stands at Rs 850 crore," said Bharti AXA Life Insurance

chief executive officer, Nitin Chopra. The joint venture company has a 74% stake from Bharti Enterprises and

26% stake of AXA.

Bharti AXA Life Insurance Company Ltd.

Bharti AXA Life Insurance Company Ltd is a joint venture between Bharti, one of India’s leading business

groups with interests in telecom, Agri business and retail, and AXA, world leader in financial protection and

wealth management. The joint venture company has a 74% stake from Bharti and 26% stake of AXA. The

company launched national operations in December 2006. Today, we have over 5200 employees across over

12 states in the country. Our business philosophy is built around the promise of making people "Life

Confident". As we expand our presence across the country to cater to your insurance and wealth management

needs with our product and service offerings, we continue to bring 'life confidence' to customers spread across

India. Whatever your plans in life, you can be confident that Bharti AXA Life will offer the right financial

solutions to help you achieve them.

Bharti Enterprises

Bharti Enterprises is one of India’s leading business groups with interests in telecom, Agri business, insurance

and retail. Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its

credit.

Bharti Airtel Limited, a group company, is one of India’s leading private sector providers of

telecommunications services with an aggregate of 60 million customers, spanning mobile, fixed line,

broadband and enterprise services.

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Bharti Airtel was ranked amongst the best performing companies in the world in the Business week IT 100 list

2007. Bharti Teletech is the country’s largest manufacturer and exporter of telephone terminals. Bharti has a

joint venture with ELRO Holdings India Ltd. – ‘Field Fresh Foods Pvt. Ltd’ - for global distribution of fresh

fruits and vegetables. Bharti also has a joint venture - ‘Bharti AXA Life Insurance Company Ltd.’ - with AXA,

world leader in financial protection and wealth management. Bharti has recently forayed into the retail business

under a company called Bharti Retail Pvt. Ltd. It also has a joint venture – ‘Bharti Wal-Mart Private Limited’ –

with Wal-Mart, for wholesale cash-and-carry and back-end supply chain management operations.

AXA

AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with

major operations in Western Europe, North America and the Asia/Pacific area. AXA had Euro 1,315 billion in

assets under management as of December 31, 2006. For full year 2006, IFRS revenues amounted to Euro 79

billion, IFRS underlying earnings amounted to Euro 4,010 million and IFRS adjusted earnings to Euro 5,140

million. The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock Exchange. The

AXA American Depository Share is also listed on the NYSE under the ticker symbol AXA.

AXA Asia Pacific Holdings Ltd

AXA Asia Pacific Holdings Ltd (AXA APH) is listed on the Australian stock exchange and is 52.3% owned by

AXA SA. AXA APH is responsible for AXA SA’s life insurance and wealth management businesses in the

Asia-Pacific region. It has operations in Australia, New Zealand, Hong Kong, Singapore, Indonesia,

Philippines, Thailand, China, India and Malaysia. AXA APH had A$106.4 billion in total funds under

management and administration at 30 June 2007 and reported a profit after tax before non-recurring items of

A$374.0 million for the six months ended 30 June 2007. For more information on AXA Asia Pacific Holdings,

visit www.axa-asiapacific.com.au.

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INTRODUCTION TO COMPANY

Bharti AXA Life Insurance Company Ltd.

Bharti AXA Life Insurance is a joint venture between Bharti, one of India’s leading business groups with

interests in telecom, agri business and retail, and AXA, world leader in financial protection and wealth

management. The joint venture company has a 74% stake from Bharti and 26% stake of AXA. The company

launched national operations in December 2006. Today, we have over 5200 employees across over 12 states in

the country. Our business philosophy is built around the promise of making people "Life Confident".

As we expand our presence across the country to cater to your insurance and wealth management needs with

our product and service offerings, we continue to bring 'life confidence' to customers spread across India.

Whatever your plans in life, you can be confident that Bharti AXA Life will offer the right financial solutions

to help you achieve them.

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The Joint Venture BHARTI and AXA

Bharti Enterprises

Bharti Enterprise is a large Indian business conglomerate headquartered in New Delhi, India, operating

primarily across India and in some other countries like Sri Lanka, Bangladesh, Jersey, Guernsey and

Seychelles with expanding operations across Africa in Burkina Faso, Chad, Congo Brazzaville, Democratic

Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania,

Uganda, and Zambia. It was established by Sunil Bharti Mittal. Bharti Enterprises has businesses spanning

across telecom, retail, financial services, manufacturing and software.

The company was founded by Sunil Bharti Mittal along with two siblings in 1976. The company was not so

famous in India by its own name; rather its brand names like Airtel and Beetel (PSTN Phone Sets) are

household names in India. The company underwent a brand reformation process and changed its logo and

corporate Image.

Company

Bharti's primary industry is in the field of [telecommunications] via its subsidiary companies Bharti Airtel-

(mobile telecommunications), Bharti Infratel, Passive Telecom- (Infrastructure provider) and Bharti Teletech-

(wired telecommunication services), Convivial Technologies.

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Bharti Airtel Ltd

Bharti Airtel Ltd is the 5th largest mobile operator in the world in terms of subscriber base and has a

commercial presence in 19 countries. The Company is India’s largest integrated telecom company in terms of

customer base and offers Mobile Services, Fixed Line services, Broadband & IPTV, DTH service named Airtel

Digital TV, Long Distance and Enterprise services.

Bharti Infratel

’’’Bharti Infratel’’’ is owned by Sunil Bharti Mittal. The company erects and maintains towers for different

telecom and Internet providers. Recently the company has taken P7 initiatives for the betterment of the

environment. In India, Infratel has over 32,000 towers, across 18 states, and 11 Telecom circles, and still

growing. Bharti Infratel also has a 42% stake in Indus towers which was created as a Joint Venture between

Bharti Infratel, Vodafone and Idea to hive off the Towers business in 12 circles [https://bharti-infratel.in/cps-

portal/wps/portal/CustomerPorttal].

Bharti Retail Ltd.

’’’Bharti Retail Ltd.’’’ is a wholly owned subsidiary of Bharti Enterprises. Bharti Retail operates a chain of

multiple format stores. The company’s neighborhoods format stores operate under the Easy day brand and the

compact hypermarket format under the “Easy day market” brand.

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Bharti Enterprises tied-up with Wal-Mart for opening a chain of retail stores all over India. Though the retail

chain store venture is yet to see the light, the two companies, in August 2007, made a surprise statement that

they have signed a wholesale cash-and-carry deal. The companies would open 10 - 15 cash-and-carry facilities

over 7 years and would employ 5,000 people. Each store would occupy 50,000-100,000 square feet.

The other retail companies of Bharti group are Bharti Retail (Holdings) Private Limited, Bharti Retail

Resources Private Limited and Cedar Support Services Ltd.

Bharti TeleTech Ltd.

’’’Bharti Teletech’’’ is India’s leading telecom & allied products company. It is one of the largest

manufacturers of landline telephones in the world. With a strong distribution network across the country, the

company is also the primary distributor of IT and Telecom products from international brands such as

Motorola, Blackberry, Thomson SA Thomson, Polycom, Transcend, and Logitech.

Convivial Technologies Limited

Convivial Technologies Limited is an India based organization providing VAS solutions for mobile operators

around the world. Convivial was formerly known as Bharti Telesoft and took on the convivial branding in

April 2009.

Field Fresh Foods Pvt. Ltd.

’’’Field Fresh Foods Pvt. Ltd. ’’’ is a joint venture between Bharti Enterprises and DMPL India Ltd. (a

subsidiary of Del Monte Pacific Ltd.). The company offers fresh fruits & vegetables and processed foods &

beverages in the domestic as well as international markets.

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Bharti AXA General Insurance Company

’’’Bharti AXA General Insurance’’’ is a joint venture between Bharti Enterprises and AXA, world leader in

financial protection and wealth management. The company was incorporated in July 2007.

Bharti AXA Life Insurance Company

’’’Bharti AXA Life Insurance Company Ltd. ’’’ is a joint venture between Bharti Enterprises and AXA, world

leader in financial protection and wealth management. The company offers a range of life insurance and wealth

management products.

Bharti AXA Investment Managers Pvt. Ltd.

’’’Bharti AXA Investment Managers Pvt. Ltd. ’’’, an asset management company in India, is a joint venture

between Bharti Enterprises, AXA Investment Managers (AXA IM) and AXA Asia Pacific Holdings (AXA

APH).

Centum Learning Limited

’’’Centum Limited’’’ (formerly ’’’Bharti Learning Systems Limited’’’), a wholly owned subsidiary of Bharti

Enterprises, is a learning and development organization that specializes in the customer experience arena.

Bharti Foundation

’’’Bharti Foundation’’’ was set up in 2000. It aims to create and support programs that bring about sustainable

changes through education and the use of technology and information.

29

Bharti Realty

’’’Bharti Realty Private Ltd.’’’ is the in-house Real Estate Arm for Bharti Group and facilitates by extending

support to the Group Companies for Identifying, Developing and Maintaining Real Estate.

Thus Bharti Enterprises is one of India’s leading business groups with interests in telecom, Agri Business,

insurance and retail. Bharti has been a pioneering force in the telecom sector with many firsts and innovations

to its credit. Bharti Airtel Limited, a group company, is one of India’s leading private sector providers of

telecommunications services with an aggregate of 60 million customers, spanning mobile, fixed line,

broadband and enterprise services. Bharti Airtel was ranked amongst the best performing companies in the

world in the Business Week IT 100 list 2007.

Bharti Teletech is the country’s largest manufacturer and exporter of telephone terminals. Bharti has a joint

venture with ELRO Holdings India Ltd. – ‘Field Fresh Foods Pvt. Ltd’ - for global distribution of fresh fruits

and vegetables. Bharti also has a joint venture - ‘Bharti AXA Life Insurance Company Ltd.’ - with AXA,

world leader in financial protection and wealth management. Bharti has recently forayed into the retail business

under a company called Bharti Retail Pvt. Ltd. It also has a joint venture – ‘Bharti Wal-Mart Private Limited’ –

with Wal-Mart, for wholesale cash-and-carry and back-end supply chain management operations.

AXA

AXA S.A. is a French global insurance group headquartered in the 8th arrondissement of Paris. AXA is a

conglomerate of independently run businesses, operated according to the laws and regulations of many

different countries.

30

The AXA group of companies engages in life, health and other forms of insurance, as well as investment

management. The group operates primarily in Western Europe, North America and the Asia Pacific region and

the Middle East.

The AXA Group encompasses five operating business segments: Life & Savings, Property & Casualty,

International Insurance (including reinsurance), Asset Management and Other Financial Services. It ranks as

the 9th largest company in the world (based on revenue) on the 2010 Fortune Global 500 list.

The company was originally founded in 1816 as Mutuelle de L'assurance centre L'incendie (the Ancienne

Mutuelle). It acquired Companies Parisians de Guarantee in 1978 and became Mutuelle Unies. It went on to

buy the Drouot Group in 1982, at which time it adopted the AXA name. The takeover of The Equitable, a well

known American insurer, came in 1991. It bought Union des Assurances De Paris (UAP), France's largest

insurer, in 1996 becoming AXA-UAP for a while before reverting to the name AXA in 1999. Then in February

1999 AXA acquired Guardian Royal Exchange. In May 2000 AXA acquired all shares it did not already own

in Sun Life & Provincial Holdings. On 14 June 2006 AXA acquired the leading Swiss insurance company

Winterthur Group from Credit Suisse for approximately €9 billion.

Operation

In the United Kingdom

AXA trades in the United Kingdom as AXA Sun Life, AXA Insurance, AXA Investment Managers and AXA

PPP Healthcare. AXA PPP Healthcare was created when AXA bought Guardian Royal Exchange (GRE),

though it subsequently sold the other parts of GRE to AEGON. The company also owns the online insurer

Swift cover, dental payment plan provider Denplan, distribution business Blue fin and fund manager Architas.

In January 2007 AXA was reorganized into "strategic business units" (SBU's) aimed at competing within their

specific markets.

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AXA run its investment branch through AXA Investment Managers (IM).

AXA Sun Life

AXA Sun Life was created following the merger between AXA Equity & Law and Sun Life Assurance Society

PLC. In 2006 Winterthur Life in the UK was absorbed although AXA continue to use the Winterthur brand for

high net worth wealth management business. The business units are:[10]

AXA Wealth – This includes AXA + Winterthur's Bonds + Individual Pensions, AXA Distribution

Services who offer the Elevate wrap platform and Architas.

Corporate Business – AXA + Winterthur's Group Pensions. AXA intend to create a "Market Leading"

group pension proposition using Winterthur's 'Embassy' IT platform.

Protection – This business aims to market AXA's Protection Account as AXA continues to build on its

presence in this area with the intention of becoming a leading protection provider.

Traditional Business – Concentrating on policies which are still in force but no longer actively

marketed.

Sun life Direct – This business focuses solely on selling protection & savings products directly to those

in the UK.

Banc assurance – This business is responsible for an advisory and sales force that sells AXAs products

and propositions.

AXA sold AXA Sun Life Holdings Ltd to Resolution Limited in autumn 2010

A. On the Isle of Man

AXA Isle of Man Limited was originally created as a subsidiary of AXA Sun Life in the United Kingdom, but

since the Isle of Man is not a part of the United Kingdom it is regulated instead by the laws of the Isle of Man.

AXA Isle of Man Limited advertises itself as a repository for citizens of the United Kingdom and the Channel

Islands who seek to shelter their assets from high taxation.

32

While the company trades upon the AXA logo, name and group advertising which promote the total wealth of

the group, the assets of the Isle of Man Company are limited to those of the Isle of Man company itself.

B. AXA Schengen

AXA Schengen Travel Insurance provides insurance to travelers who need a visa to enter the Schengen Area.

C. In Canada

AXA Canada offers insurance services through a network of affiliates operating in the different Canadian

regions such as Québec, Ontario, Western Canada and Atlantic Canada. In 2009, the company had a total of

approximately 2,300 employees and 4000 brokers and advisors. The head office is in Montréal, Quebec.

D. In the United States

The American arm of AXA is AXA Equitable. AXA Equitable consists of many subsidiaries; AXA Advisors,

LLC, AXA Network, AXA Equitable Life Insurance, Mutual of New York (MONY), US Financial Life, and

Alliance Bernstein.

On December 15 of 2006, AXA Advisors, LLC entered into agreements with LPL (Linsco Private Ledger), the

country's largest independent broker-dealer. LPL agreed to provide brokerage, clearing and custody services on

a fully-disclosed basis. The terms of the agreements are five years, subject to additional 24-month extensions.

Services are expected to begin in August 2007.

E. In Mexico

In July 2008, AXA acquired ING Insurance Mexico; they are offering essentially the same services that ING

offered. The Chairman in Mexico is Xavier de Bellefon.

33

F. In Asia Pacific

AXA Life Insurance operated in the Asia Pacific region as 'AXA Asia Pacific Holdings Ltd. (AXA APH)

which is the former National Mutual Life Association of Australasia founded by actuary John Montgomery

Templeton The AXA Collection and was listed on the Australian Securities Exchange. The head office of

AXA APH was located in Melbourne, Australia, and there was a major regional office in Hong Kong. AMP

acquired AXA Asia Pacific in 2011; it retained AXA APH's Australia and New Zealand operations, and sold

the Asia operations to AXA.

AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with

major operations in Western Europe, North America and the Asia/Pacific area. AXA had Euro 1,315 billion in

assets under management as of December 31, 2006. For full year 2006, IFRS revenues amounted to Euro 79

billion, IFRS underlying earnings amounted to Euro 4,010 million and IFRS adjusted earnings to Euro 5,140

million. The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock Exchange. The

AXA American Depository Share is also listed on the NYSE under the ticker symbol AXA.

Vision

To be a leader and the preferred company for financial protection and wealth management in India.

Values

Professionalism

Innovation

Team Spirit

Pragmatism

Integrity

Professionalism:- A professional is a collegial discipline that regulates itself by means of mandatory,

systematic training. It has a base in a body of technical and specialized knowledge that it both teaches and

34

advances it sets and enforces its own standards and it has a service rather than a profit orientation, enshrined in

a code of ethics.

Innovation: - Innovation . . . is generally understood as the successful introduction of a new thing or method.

Innovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new

products, processes, or services.

Team Spirit: - Team spirit is the spirit of a group that makes the members want the group to succeed

Pragmatism: - Pragmatism is the philosophy of considering practical consequences and real effects to be vital

components of meaning and truth.

Integrity: - Integrity is consistency of actions, values, methods, measures, principles, expectations and

outcome. As a holistic concept, it judges the quality of a system in terms of its ability to achieve its own goals

INSURANCE PRODUCTS OF BHARTI AXA LIFE

35

Individual Plans:

Bharti AXA Life Guarantee Builder

A Unit Linked Guarantee Plan Guarantee Builder provides you with a comfort factor on your investments and

you can be sure that this comfort factor keeps building year-on-year. It's a solid investment plan that lets you

achieve your long-term goals by investing in a mix of debt and equities, while providing a Guaranteed Maturity

Value over 15 years. What's more, you need not worry about your family's security as it has a strong life

insurance protection embedded.

Bharti AXA Life Bright Stars

A Unit Linked Child product. Bharti AXA Life Bright Stars provides a launch pad for your child’s bright

future. What else, You also have Jumpstart benefit which is paid out at maturity along with Policy Fund Value,

which enables your child to explore more career options.

Bharti AXA Life Spot Suraksha

Spot Suraksha helps you create a pool of wealth to meet your long-term needs, with an added advantage of

simplified buying process

Bharti AXA Dream Life Pension

36

A Unit Linked Pension Product, Dream Life Pension, Bharti AXA Life Insurance's unique pension product

ensures that your retirement life is your Dream Life. Live your Dreams! Be Life Confident.

Bharti AXA Life Aspire Life

Unit Linked Endowment Product Aspire Life helps you create a pool of wealth to meet your long-term needs,

while also providing you adequate protection in case the need arises.

Bharti AXA Life Invest Confident

Unit Linked Single Premium Product. You have always strived hard to achieve the best for you and your loved

ones, so when it comes to making an investment decision, we know that you would expect the best from it too.

Bharti AXA Life Wealth Confident

A unit-linked investment cum protection policy. Your wealth, your status ensures that you get preferential

status wherever you go. So why shouldn't your money get the same?

Bharti AXA Life Future Confident

A unit-linked policy which offers comprehensive protection along with wealth creation in the long term.

Bharti AXA Life Future Confident II

A unit-linked product which offers enhanced protection along with wealth creation in the long term.

Bharti AXA Life Save Confident

37

Traditional money back insurance product for long term savings. Your changing life stages decide your

financial milestone planning. When you foresee intermittent financial requirements in the years to come, like

regular expenses related to your child’s education, liquidity becomes a key aspect of your planning along with

long term savings, and protection for your family.

Bharti AXA Life Secure Confident

A long term Life Insurance, all of us desire to maximize the happiness for our family at all times, irrespective

of the circumstances. The thought of unfortunate events befalling us may cause us anxiety about providing a

secured happiness to our loved ones.

Group Plans:

Bharti AXA Life – Credit Secure

Bharti AXA Life Credit Secure is a group product, offering life insurance coverage to customers of financial

institutions who have availed of a loan. Credit Secure is comprehensive solution that helps protect your

customer’s assets and savings in the unfortunate event of death.

Bharti AXA Life - Sanjeevani

Sanjeevani is a single premium group term life insurance product, offering protection to your family.

Bharti AXA Life - Swasthya Sanjeevani

38

Swasthya Sanjeevani is a single premium group critical illness product, providing comprehensive protection

against 6 critical illnesses.

Bharti AXA Life - Sanjeevani

Sanjeevani is a single premium group term life insurance product, offering protection to your family.

Bharti AXA Life Mortgage Credit Shield

Mortgage Credit Shield is a Group Product that provides coverage to people who have availed of a Mortgage\

Home loan\ Home equity loan from an Institution/Bank.

Bharti AXA Life Credit Shield

Credit Shield is a Group Product that provides coverage to people who have availed of a loan for 1 to 5 years

from Group Policyholder.

Bharti AXA Life Shield

Life Shield is a single premium group term life insurance product.

Bharti AXA Life Secure Confident | Features | Benefits

39

A simple Life Insurance product features.

You want comprehensive protection for your loved ones

You want a single product that can take care of all your Life Insurance needs

Minimum & Maximum Insurance Cover –

The minimum Sum Assured in this plan is Rs 5, 00,000/. The maximum Sum Assured that you can opt for in this plan is 24, 99,999

Here are some premiums with sample Sum Assured and age –

Age last birthday/ Policy Benefit Period 5 years 10 years 15 years 20 years 25 years

25 2440 2450 2600 2620 2660

30 2490 2580 2790 2850 2940

35 2820 3040 3350 3490 3640

40 3680 3960 4450 4980 -

45 4860 5580 6320 - -

50 7220 8300 - - -

Tax Benefits –

You receive tax benefits under section 80C and 10(10D)

40

Riders –

Bharti AXA Life Insurance gives you enhanced protection in this plan with the option to add any of the 4 protection enhancers by paying a nominal amount towards this additional protection:

Critical Illness Benefit Rider: In case you are diagnosed of any one of the 6  Critical Illnesses at any time throughout the term for which the Rider is in force, you will receive a lump sum amount equal to the Critical Illness Benefit Sum Assured as opted by you

Accidental Death and Disability Benefit Rider: In the event of an ill-timed death of Life Insured due to an accident or an accidental disability, the Sum Assured under the Rider will be paid to the Policyholder / nominee

ORANIZATION STRUCTURE OF BHARTI AXA LIFE INSURANCE CO. LTD

41

Senior Management Team

CEO: Sandeep Ghos

Vice President & Head - Compliance & Legal: Manish Ghiya

Head - Marketing & Customer Services: Nanda Kishor Shethuraman

Fund Management Team

Senior Fund Manager- Fixed Income: Ramesh Rachuri

Senior Fund Manager- Equity: Gaurav Kapoor

Management Team

CDMO: Shyamal Saxena

Head of Sales: Arun Prasad

RSM (East): Dibyendu Nandi

42

Figure 2

43

LIST OF LIFE INSURANCE COMPANIES IN INDIA

Bajaj Allianz Life Insurance Company Limited

Birla Sun Life Insurance Co. Ltd

HDFC Standard Life Insurance Co. Ltd

ICICI Prudential Life Insurance Co. Ltd

ING Vysya Life Insurance Company Ltd.

Life Insurance Corporation of India

Max New York Life Insurance Co. Ltd

Met Life India Insurance Company Ltd.

Kotak Mahindra Old Mutual Life Insurance Limited

SBI Life Insurance Co. Ltd

Tata AIG Life Insurance Company Limited

Reliance Life Insurance Company Limited.

Aviva Life Insurance Company India Limited

Sahara India Life Insurance Co, Ltd.

Shriram Life Insurance Co, Ltd.

Bharti AXA Life Insurance Company Ltd.

Future Generali India Life Insurance Company Limited

IDBI Fortis Life Insurance Company Ltd.

Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

AEGON Religare Life Insurance Company Limited

DLF Pramerica Life Insurance Company Limited

Star Union Dai-Ichi Life Insurance Company Limited

44

COMPETITORS OF BHARTI AXA LIFE

HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life insurance companies, which

offers a range of individual and group insurance solutions. It is a joint venture between Housing Development

Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance institution and The Standard Life

Assurance Company, a leading provider of financial services from the United Kingdom. Their cumulative

premium income, including the first year premiums and renewal premiums is Rs. 672.3 for the financial year,

Apr-Nov 2005. They have managed to cover over 11, 00,000 individuals out of which over 3, 40,000 live have

been covered through our group business tie-ups.

Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings together two large forces - Max

India Limited, a multi-business corporate, together with New York Life International, a global expert in life

insurance. With their various Products and Riders, there are more than 400 product combinations to choose

from. They have a national presence with a network of 57 offices in 37 cities across India.

ICICI Prudential Life Insurance Company Ltd.

45

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial

powerhouse and prudential plc, a leading international financial services group headquartered in the United

Kingdom.

ICICI Prudential was amongst the first private sector insurance companies to begin operations in December

2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). The company has a

network of about 56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups.

Allianz Bajaj Life Insurance Company Ltd.

Bajaj Allianz Life Insurance Company Limited is a Union between Allianz SE, one of the world’s largest Life

Insurance companies and Bajaj Auto, one of the biggest 2- &- 3 wheeler manufacturers in the world.

Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world,

managing assets worth over a Trillion Euros (Over R. 55, 00,000 crores). Allianz SE has over 115 years of

financial experience in over 70 countries.

SBI Life Insurance

SBI Life Insurance is a joint venture between the State Bank of India and BNP Paribas Assurance. SBI Life

Insurance is registered with an authorized capital of Rs 2000 crores and a Paid-up capital of Rs 1000 Crores.

SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%.

State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group

has the unrivalled strength of over 14,500 branches across the country, arguably the largest in the world. BNP

46

Paribas Assurance is the insurance arm of BNP Paribas - Euro Zone’s leading Bank. BNP Paribas, part of the

worlds top 10 groups of banks by market value and part of Europe top 3 banking companies, is one of the

oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest

life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to

over 50 million clients. BNP Paribas Assurance operates in 42 countries mainly through the banc assurance

and partnership model. SBI Life has a unique multi-distribution model encompassing Banc assurance, Agency

and Group Corporate.

SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products along with its

numerous banking product packages such as housing loans and personal loans. SBI’s access to over 100

million accounts across the country provides a vibrant base for insurance penetration across every region and

economic strata in the country ensuring true financial inclusion.

BALANCE SHEET

Bharti AXA Life Insurance Company Limited

Schedule Forming Part of Balance Sheet as At 31 March, 2011

47

L-16 - FIXED ASSETS SCHEDULE

Particular As at 31

March

2011

As at 31 March

2010

Cash (including Cheque, Drafts and Stamps in hand)

Bank Balance

A) Deposit Accounts(aa) Short-term (Due within 12 months of the date of Balance Sheet)

(bb) Others

(b) Current Accounts

(c) Others Money at Call and Short Notice(a) With Banks (b) With Other Institutions

Others

73,073

-----

-----

270,109

-----

-----

-----

9,736

----

----

442,327

-----

-----

----

Total 343,182 452,063

Balances with non-scheduled banks (included in 2 and 3 above)

Cash and Bank BalancesIn India 343,182 452,063Outside India - -

24

343,182

------

15

452,063

-----

Total 3 43,182 452,063

SWOT ANALYSIS

48

Strengths

Use of brand affinity of Airtel to promote insurance sales.

Bharti brought its strong local market knowledge, reputation and India.

Associated with AXA world leader in financial protection and wealth management, ranked No 13 in the

Fortune 500 list of global companies and has enabled the company to have access to AXA’s global life

insurance and asset management expertise.

Strong partner Bharti - provides access to customer base of more than 20 million

Weakness

Late entrant in the insurance sector

Thin distribution network all over the nation

Very less number of product offering in comparison to its competitors

Lack of confidence among the customers as parent company does not have a financial

Background.

Opportunities

Strong growth of unit linked market at the mass affluent end.

Potentially with 20% insurance cross sale only to new telecom customers, this network can yield 48

Lakh policies per year with sum assured of nearly Rs 58000 crores.

Threats

Many more companies are lining up to enter into Indian Insurance Industry.

Consumer’s preference is still more towards public sector insurance companies

49

ACHIEVMENT AND AWARD

Bharti AXA General Insurance wins "Personal Lines Growth Leadership Award" 2011

Consistent and strong growth in volumes, revenues and client base for 3 years

Bharti AXA General Insurance was awarded the prestigious "Personal Lines Growth Leadership Award 2011"

at the India Insurance Awards 2011. This award is a result of Bharti AXA GI's performance of their

tremendous growth in terms of volume, revenues and client base over a three year period, 2008- 2011 in the

retail insurance segment.

The Indian Insurance Awards, 2011 was organized by India Insurance Review Journal in association with clent

(www.celent.com). The awards have been conceptualized to honor performance, growth, product and market

innovation, customer service and technology, with the hope to eventually raise the benchmark for the insurance

industry year on year.

The jury of the awards commented that, "Bharti AXA General Insurance Company, has demonstrated strong

and balanced overall growth in the personal lines category. The company's strong focus on the retail segment

has secured it a leading position amongst personal lines insurers. The company provides a comprehensive array

of motor, health, personal accident, home and shop insurance products in this space."

50

Commenting on this joyful occasion Dr. Amarnath Ananthanarayanan, MD & CEO, Bharti AXA General

Insurance said, "This is a very proud moment for the Bharti AXA GI team who has put their best foot forward

in order to maintain consistency in terms of service and growth. This award in- deed reflects our employees'

dedication and commitment to the organization. I take this opportunity to thank Bharti AXA GI Team as well

as our partners as this wouldn't have been possible without their continued hard work, diligence and never-say-

die attitude. We look forward to providing customer & partner centric insurance solutions by redefining

general insurance industry standards."

The "Personal Lines Growth Leadership Award 2011" is an award to honor the excellence in growth in the

personal lines i.e. the retail category for a general insurer in India. The criteria for the awardees is that the

organization should have witnessed consistent and healthy growth in volumes, revenues and client base

between 2008-2011 across all personal line segments in its business portfolio, which Bharti AXA GI has

successfully done so.

FUTURE PROSPECTS

Expansion

51

Bharti AXA is one of the insurance companies in India showing competitive plans to expand and start

enterprises throughout the country in a short time. The company is setting a robust architecture to suit various

segments of the Indian population. Bharti AXA plans to roll and expand as it has other connected products

such as future confident and wealth confident products. Bharti AXA is trying to prove its sales effectively

emphasizing its telecommunications experience. Bharti is planning to get partnership in global insurance.

Benefits

Bharti AXA came into limelight in 2006 November and revealed its interest in insurance. The company is

gaining popularity and being a joint business venture of Bharti and AXA it is working and already becoming

famous in India for various avenues.

The tie up of companies came up with new prospects and the success graph is commendable of Bharti AXA as

within the short time period it has made its mark in the life insurance company and has spread its name in the

Indian market. It globally has 4000 main branches that reveal fast growth.

Owing to its reliable policies, more and more people are connected and connecting to Bharti AXA by opting to

various life insurance plans as per their need.

Plan Coverage

52

Bharti AXA Sanjeevani covers from natural calamities. Bharti AXA Aspire Life is apt to save money for future

prospects. Bharti AXA Secure Confident offers high returns on low premiums. Bharti AXA Future confident

comes with less premium offering higher returns and many more plan covers.

53

CHAPTER III

PRESENTATION OF DATA AND ANALYSIS

STATEMENT OF THE PROBLEM

54

Project title:-

“Customers Perception Towards Bharti AXA Life Insurance Co. Ltd.”

RESEARCH METHODOLOGY

To proceed with the research work in a structured way certain methodology is used so as to yield exact and

correct results from the study. The methodology adopted by me is as follows.

Type of research design used:

Research designs are concerned with turning the research question into a testing project. The best design

depends on research questions. Every design has its positive and negative sides. The research design has been

considered as a "blueprint" for research, dealing with at least four problems: what questions to study, what

data are relevant, what data to collect, and how to analyze the results.

For my study I have used Descriptive Research design because Descriptive Research Design is a method in

which involves observing and describing the behavior of a subject without influencing it anyway.

Method of Data Collection:

For completing my study I needed both primary and secondary data.

55

Source of Primary data: Primary data is to be collected through survey and the tool used for survey is

questionnaire which consisted of closed-ended questions and questions based on Likert Scale. Personal

interviews of some respondents would be also conducted to know their perception towards the company.

Source of Secondary data: The data which has been collected by someone else and already passed through

statistical process. This data was collected from the Internet. The company’s broachers were of a great help,

and other sources were also used.

Method of Sample Selection:

Typically, the population is very large, making a census or a complete enumeration of all the values in the

population impractical or impossible. The sample represents a subset of manageable size. Samples are

collected and statistics are calculated from the samples so that one can make inferences or extrapolations from

the sample to the population. This process of collecting information from a sample is referred to as sampling.

The method of sample selection from population adopted by me is Stratified Random Sampling because for my

survey results to be successful I needed respondents from upper middle income group and higher income group

who already are owner of air-conditioners and have a strong understanding about different companies and their

product.

Sample size and area of study:

The survey is being conducted in the city of Lucknow. The sample size of seventy five (75) has been selected.

The places being visited are banks, few market places, colleges and corporate offices.

Analytical tools used:

The tools used for summarizing the data collected and to interpret the results are:

56

Bar Graphs &

Histograms.

These tools helped in easy understanding of the data and are useful to the company for taking the desired

decisions on various aspects.

RESPONSES TO THE QUESTIONS

DO YOU LIVE IN JOINT FAMILY?

57

16%

84%

Chart Title

YesNo

Figure 3.1

This shows that most of people live in joint family almost near about 84%.

NUMBER OF MEMBER IN THE FAMILY

58

2-4, 4-6, Above 60%

10%

20%

30%

40%

50%

60%

20%

56%

24%

Series1Series2Series3

Figure 3.2

Due to joint family number of people in the family varies about 4-6. Most of people live with 4-6 family members.

BIGGEST CONCERN FOR FUTURE

59

Child education Retirement

Child’s marriage

Medical illness

0%

5%

10%

15%

20%

25%

30%

35%

40%

28%

36%

16%

20% Series1Series2Series3

Figure 3.3

This shows that people’s future concern towards retirement rather than child education, medical and child

marriage.

DO YOU HAVE ANY LIFE INSURANCE POLICY?

60

80%

20%

Chart Title

YesNo

Figure 3.4

This graphical presentation shows that most of people have an insurance plan.

IN WHICH COMPANY

61

LIC ICICI Bharti AXA Life Other0%

10%

20%

30%

40%

50%

60%

52%

12%8%

28%Series1Series2Series3

Figure 3.5

This shows that people are more loyal towards LIC rather than other insurance agencies.

WHICH PRODUCT

62

General Plan Medical Child Plan Other0%

5%

10%

15%

20%

25%

30%

35%

28% 28%

32%

12%

Series1Series2Series3

Figure 3.6

This shows that at the present scenario people want to purchase child plan than other plan.

DO YOU LOOK AFTER COMPETITION WHEN YOU PURCHASE A PRODUCT?

63

96%

4%

Chart Title

YesNo

Figure 3.7

If we talk about the competition before the purchasing of the insurance product is very is very high.

WHICH FACTOR OF THE FOLLOWING YOU WILL BE CONCERN ABOUT WHILE YOU ARE

PURCHASING A PRODUCT?

64

Allocati

on

Fund m

anag

emen

t

Fund ad

ministrati

on

All of th

e above

0%

10%

20%

30%

40%

50%

60%

12%

20%16%

52%

Series1Series2Series3

Figure 3.8

This shows that people want to purchase an insurance product because of its all of the above attribute.

That mean people want to purchase a policies which have all attributes which is given in the option.

DOES YOU THINK BHARTI AXA LIFE INSURANCE Co. Ltd. HAVE BETTER INSURANCE POLICY

THAN OTHER INSURANCE COMPANY?

65

0%10%20%30%40%50%60%70%80%90%

YesNo

Figure 3.9

From the graph when we have asked to the people that “Is Bharti AXA Life have better policies than other”

then most of people says no approximately 84% answered no.

WHICH INSURANCE COMPANY HAS BETTER INSURANCE PLAN?

66

LIC ICICI BHARTI OTHER0%

10%

20%

30%

40%

50%

60%52%

12%8%

28% Series1Series2Series3

Figure 3.10

When we talk about the best insurance policy provider then most of people give his vote in favor of LIC hen

ICICI and in favor of Bharti Just 8%.

IF BHARTI AXA LIFE INSURANCE GIVE YOU BETTER INSURANCE POLICY THEN, CAN YOU

SHIFT TOWARDS BHARTI AXA LIFE INS.?

67

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

28% 72%Series3Series2Series1

Figure 3.11

With the help of graph which shows the brand is not possible in the case of Bharti AXA Life just because

people are more brands loyal towards their own brand.

WHICH RANK WOULD YOU LIKE TO GIVE TO BHARTI AXA LIFE INSURANCE?

68

12%

24%

20%

44%

Chart Title

1st 2nd 3rd4th

Figure 3.12

This shows that very less people give the highest rank i.e. first rank is only 12%.

WOULD YOU LIKE TO JOIN BHARTI AXA LIFE FOR THE PART TIME JOB AS A LIFE ADVISOR?

69

4%

96%

Chart Title

YesNo

Figure 3.13

With the help of graph the interpretation about the part time job in Bharti AXA life as a life advisor very less

people was interested in this. 96% people answered no and only 3 people say yes out of 75.

70

CHAPTER IV

FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

FINDINGS

71

Based on the data which is presented in Chapter III and the personal interviews of few respondents from the

whole sample size here are the results which are drawn from the interpretation of data:

Majority of people recognized the Bharti AXA Life Insurance and recalled its advertisement but still

there is a lot of scope of improvement, and the brand name of BHARTI associated with Bharti AXA

Life Insurance gives customers more trust and I found out that many respondents were even not aware

that Bharti AXA Life Insurance is a BHARTI product.

People perceive insurance as necessity and still a very large segment of middle class segment customers

is to be tapped i.e. there is a large scope of expansion for companies.

Among all the factors that initiate the customer to an insurance policy respondents have given the top

priority followed by features.

Customers attach a very high level of significance with after sales service and majority of companies

provide free preventive service to its consumers.

CONCLUSION

72

Based on the findings it can be said that there is a very bad response from the survey this survey shows that in

the present scenario Bharti AXA life is very far away from his competitors. But there are lots of scope of

growth in insurance market due to rising level of disposable income of individuals and unsecure future of

customers and in addition to these factors the present climatic condition have made a perception among

customers that insurance are necessity products just as bank account and loan or any financial scheme etc.

The main factor that influences customers to purchase insurance product are correct policy for correct customer

according to his/her pocket weight and excellent after sales service and as far as star ratings are concerned,

customers don’t put much emphasis on this factor, so a company to be successful can use its after sales service

network and unique and best quality as its unique selling proposition.

Bharti AXA Life in this scenario, has a fair image in the minds of customers, though some customers think that

Bharti AXA Life was primarily concentrating on high class people and now they are concentrating on every

level of market or mass market, but they still have a trust over the brand name of Bharti, and if it continuously

upgrades its products and services then it can surely become the successful insurance policy provider company.

RECOMMENDATION

73

In the 2 years of existence in the market it has created a sensation by introducing its most profitable Unit-

Linked Plans and products. The insurer needs to concentrate to make its products and company much more

aware among the public to change the mindset of the people and attract them towards insurance sector. This

can make the recruitment of the potential advisors very well. To create the awareness among the people, the

following methods could be adopted:

It needs to conduct awareness programmers, campaigns and publish news about the company,

products and attributes to position it in the customer’s mind. The company should timely

communicate through media to make the relationship stronger.

Another way of creating awareness about the presence of insurer is by placing hoardings and

posters in the traffic areas and market complexes to attract the attention of the people.

The awareness through the Television is another medium. Though it advertises its product but it

should forecast itself on the channel which the maximum of people use like Doordarshan or

advertising through regional channels.

The company restricts itself from making any branch offices as it believes in the philosophy of

“one family”. Hence more awareness can be created by establishing more branch and

subsidiaries in the urban as well as rural areas. It can create much more awareness among the

common people also.

The above discussed methods could be helpful to create awareness and thus can attract more people to be its

customers as well as to be a good life advisor. But for this the recruitment standard and the recruitment policy

should be a good one.

74

BIBLIOGRAPHY

75

Marketing Management- Philip Kotlor, edition-twelve edition….April 2006,

Publisher- Prentice Hall of India (p) Ltd, Analyzing Consumer Markets & Buyer behavior &

consumer behavior.

Research Methodology- C.R Kothari, edition-2004, reprint 2006

Publisher – New Age International (P) Ltd, publishers

Methods of Data Collection, page no- 95

Sampling Fundamentals, page no- 152

Arrow K. (1963), "Uncertainty and the Welfare Economics of Medical Care", American

Economic Review, 53(5):941-973/// Dionne (1984), "Search and Insurance", International

Economic Review, Vol 25(2), 357-367 (From a pdf file)

Broachers of Bharti AXA products.

NAAF

WEBSITES

• www.irdaindia.org

• www.bharti-axalife.com

• www.wikipedia.org

• www.ibef.org Indian brand equity forum

• www.selling-well.com

• www.insureme.com

• www.advisortoday.com

• www.unlockthegame.com

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Annexure

1) NAME…………………………………..

2) AGE;

a) Below to 20 years [ ]

b) 20-40 years [ ]

c) 40-60 years [ ]

d) Above to 60 years [ ]

3) GENDER;

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a) Male [ ]

b) Female [ ]

4) ACUPATION;

a) Govt. Employee [ ]

b) Private Employee [ ]

c) Self Employee [ ]

d) Other [ ]

5) DO YOU LIVE IN JOINT FAMILY?

a) Yes [ ]

b) No [ ]

6) HOW MANY FAMILY MEMBERS ARE THERE IN YOUR FAMILY?

a) 2-4 [ ]

b) 4-6 [ ]

c) Above 6 [ ]

7) WHICH IS YOUR BIGGEST CONCERN FOR FUTURE?

a) Child education [ ]

b) Retirement [ ]

c) Child’s marriage [ ]

d) Medical illness [ ]

8) DO YOU HAVE ANY LIFE INSURANCE POLICY?

a) Yes [ ]

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b) No [ ]

9) IF YES, IN WHICH COMPANY AND WHICH PRODUCT?

………………………………………………………………………………………………

10) DO YOU LOOK AFTER COMPETITION WHEN YOU PURCHASE A PRODUCT?

a) Yes [ ]

b) No [ ]

11) WHICH FACTOR OF THE FOLLOWING YOU WILL BE CONCERN ABOUT

WHILE YOU ARE PURCHASING A PRODUCT?

a) Allocation [ ]

b) Fund management [ ]

c) Fund administration [ ]

d) All of the above [ ]

12) DOES YOU THINK BHARTI AXA LIFE INSURANCE Co. Ltd. HAVE BETTER

INSURANCE POLICY THAN OTHER INSURANCE COMPANY?

a) Yes [ ]

b) No [ ]

13) WHICH INSURANCE COMPANY HAS BETTER INSURANCE PLAN?

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a) LIC [ ]

b) ICICI [ ]

c) BHARTI AXA LIFE [ ]

d) OTHER [ ]

14) IF BHARTI AXA LIFE INSURANCE GIVE YOU BETTER INSURANCE POLICY THEN,

CAN YOU SHIFT TOWARDS BHARTI AXA LIFE INS.?

a) Yes [ ]

b) No [ ]

15) WHICH RANK WOULD YOU LIKE TO GIVE TO BHARTI AXA LIFE INSURANCE?

a) 1ST [ ]

b) 2ND [ ]

c) 3RD [ ]

d) 4TH [ ]

16) DO WOULD YOU LIKE TO JOIN BHARTI AXA LIFE FOR THE PART TIME JOB AS A

LIFE ADVISOR?

a) Yes

b) No

THANK YOU! FOR YOUR TIME!

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