BAJAJ Mehnaz

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SUMMER TRAINING PROJECT REPORT

ON

PRODUCT ANALYSISAT

BAJAJ ALLIANZ LIFE INSURANCE

Submitted fort the partial fulfillment of the Award

Of

Bachelor of Business Administration Degree

From

Ch. Charan Singh university, meerut

(Session 2010-2011)

Submitted To: Submitted By: Mrs. KalpanaFaculty, Management

Mehnaz Chauhan

Roll. No.9183535

BBAVIth

Sem.

Department of Management

INSTITUTE OF INFORMATICS & MANAGEMENT SCIENCES, MEERUT

Anuyogi Puram, Near Medical College, Garh Road, Meerut – 250004

Tel. : 2760396, Fax : (0121) 2765023, e-mail: [email protected]



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CERTIFICATE



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DECLARATION



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EEXXEECCUUTTIIVVEE SSUUMMMMEERRYY

India is the largest democracy in the world having a population more than one billion. It is 5th

largest in the world in terms of purchasing power parity (PPP). India GDP growth rate is over 6

percent per year on average for the last decade and saving rate is around 26 percent of GDP.

With largest number of life insurance policies in force in the world, Insurance happens to be a

mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and

presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per

cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds

available with LIC for investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian populations are without life insurance cover, health insurance

and non-life insurance continue to be below international standards. And this part of the

population is also subject to weak social security and pension systems with hardly any old age

income security. This itself is an indicator that growth potential for the insurance sector is

immense.

A well-developed and evolved insurance sector is needed for economic development as it

provides long term funds for infrastructure development and at the same time strengthens the risk

taking ability. It is estimated that over the next ten years India would require investments of the

order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in

infrastructure development to sustain economic growth of the country.

With a large capital outlay and long gestation periods, infrastructure projects are fraught with a

multitude of risks throughout the development, construction and operation stages. These include

risks associated with project implementation, including geological risks, maintenance,

commercial and political risks. Without covering these risks the financial institutions are not



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willing to commit funds to the sector, especially because the financing of most private projects is

on a limited or non- recourse basis.

Insurance companies not only provide risk cover to infrastructure projects, they also contribute

long-term funds. In fact, insurance companies are an ideal source of long term debt and equity

for infrastructure projects. With long term liability, they get a good asset- liability match by

investing their funds in such projects.

IRDA regulations require insurance companies to invest not less than 15 percent of their funds in

infrastructure and social sectors. International Insurance companies also invest their funds in

such projects.

Insurance is a federal subject in India. There are two legislations that govern the sector- The

Insurance Act- 1938 and the IRDA Act- 1999.



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ACKNOWLEDGEMENT



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Table of Contents

Certificate

Declaration

Executive Summary

Acknowledgement

Chapter- 1 Introduction

Chapter -2 Company profile

Chapter -3

3.1 Objectives of the project

3.2 Importance and scope of the project

Chapter-4 Literature Review

Chapter-5 Research Methodology

5.1 Research Design

5.2 Data Collection

5.3 Limitations

Chapter-6 Data analysis and interpretation

Chapter-7

7.1 Findings

7.2 Conclusion

7.3 Recommendations & Suggestions

08. Appendices

09. Bibliography



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CCHHAAPPTTEERR 11

IINNTTRROODDUUCCTTIIOONN

In today’s competitive world insurance is the most growing and developing sector with more

and more private companies entering the insurance sector which are making a hub for investors

as insurance sector has the maximum growth as compared to any other fields. This growth

potential attracted me to enter into this sector and BAJAJ ALLIANZ LIFE INSURANCE has

given and opportunity to work and get to know the working of this sector and growth prospects

of agents as a advisors and their earning patterns as well as what are the problems which an

advisor faces and what are the reasons for not receiving the commission on time in addition how

their query gets resolved in BAJAJ ALLIANZ. An Advisor is the main and elementary level in

the field of insurance that comes in contact with both investors and a company or they can be

said as a mediator between insurers and insured and he is the one who brings business and the

only one who helps customers to choose the right plan for his investment. As they add so much

value to the insurance business services and brings benefits to the employers they get in return is

the commission so the main motive behind the study is to see how advisors get differently paid

for different plans sold and how the commission is prepared at head office and its disbursement

process as well as to see what are the problems and queries they raise for not receiving the

commission due to them and to see various other reasons for problems in commission

disbursement.

This study is one of its kind which looks at the insights of the working of the BAJAJ ALLIANZ

in making commissions of its advisors agents and to look at their full process starting from

making commission for advisors to its disbursement and query resolution about the commission.

The scope of such study is to see working of insurance company and how insurance company



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benefit and perks they give their advisors in return of the business and services brought in by

them to the company for their various plans.

To look for details and to collect data for my project I worked in Kanpur Branch Office to gather

full information about the system and working of whole UP region and found out the facts about

various processes adopted by Bajaj Allianz to pay its advisors and the time period taken for this

study are 2 months.



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CCHHAAPPTTEERR 22

PPRROOFFIILLEE OOFF TTHHEE CCOOMMPPAANNYY

COMPANY NAME: BAJAJ ALLIANZ LIFE INSURANCE

COMPANY LIMITED

HEAD OFFICE: GE PLAZA, AIRPORT ROAD

YERAWADA, PUNE

(MAHARASHTRA)

Tel(+91 20)66026777

BRANCH OFFICE: BAJAJ ALLIANZ LIFE INSURANCE

133 University Road

Meerut



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Introduction of the company

Bajaj Allianz Life Insurance Co. is a union between Allianz SE one of the world’s largest life

insurance Co. and Bajaj Auto one of the biggest 2 & 3 wheeler manufactures in the world

Allianz SE is a leading Insurance conglomerate globally and one of the largest asset managers in

the world. Managing asset , worth over a trillion Euros(over Rs.55,00,000 crors ). Allianz SE has

over 115 years of financial experience in over 70 countries.

Bajaj Auto is one of the most trusted manufacturer INDIAN AUTO for ever 55 years. At Bajaj

Allianz customer delight is over guiding principle ensuring world class solution by offering

customized products with transparent benefit, supported by best technology i.s over business

philosophy.



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VViissiioonn && MMiissssiioonn

VViissiioonn

Empowering everyone live their dreams.

MMiissssiioonn

Create unmatched value for everyone through dependable, effective, transparent and profitable

life insurance and pension plans. (jaise jarurat vaisa insurance)

OOuurr GGooaall

Bajaj Allianz Life Insurance would strive hard to achieve the 3 goals mentioned below:

Emerge as transnational Life Insurer of global scale and standard

Create best value for Customers, Shareholders and all Stake holders

Achieve impeccable reputation and credentials through best business practices



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.

Current performance of company

CCOOMMPPEETTIITTOORRSS

Competitors in the country

Private

Reliance Life Insurance Company Limited

Birla Sun-Life Insurance Company Limited

HDFC Standard Life Insurance Co. Limited

ICICI Prudential Life Insurance Co. Limited

ING Vysya Life Insurance Company Limited

Max New York Life Insurance Co. Limited

MetLife Insurance Company Limited

Om Kotak Mahindra Life Insurance Co. Ltd.

SBI Life Insurance Company Limited

TATA AIG Life Insurance Company Limited



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AMP Sanmar Assurance Company Limited

Dabur CGU Life Insurance Co. Pvt. Limited



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MMaarrkkeett SShhaarree OOf f CCoommppaanniieess

SSSSSSSSDASDFSADFDGDSDGDFDGDXFDGDFSHSFASG

SOURCE:- Based on Market Survey (Sample size 100)

MARKET SHARE

LIC

60%

BAJAJ ALLIANZ

23%

OTHERS

17%

LIC BAJAJ ALLIANZ OTHERS



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Trade policies of Bajaj Allianz life insurance

To satisfy its customer’s need

To be best in the market

To provide benefits which others are not providing

To satisfy the work force of the company.

Different plans which company is providing to its customers.

Bajaj Allianz Life Insurance is here with Solutions for Individuals, a series of plans that will help

you make wise investments, protect your f amily, secure your child’s future and even chalk out a

plan for your retirement.



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PPRROODDUUCCTT AANNAALLYYSSIISS AANNDD

AATTTTRRAACCTTIIVVEE FFEEAATTUURREESS OOFF TTHHEE CCOOMMPPAANNYY

Bajaj Allianz life insurance industry is one of the leading brand names in the market as

well as in the insurance sector.

Bajaj Allianz life insurance offers you products that fulfill your savings and protection

needs. The aim of Bajaj Allianz life insurance is to emerge as a transnational Life Insurer

of global scale and standard.

There are many attractive features of the company which can be easily estimated by the

attractive product plans, by different policies, which the company has adopted, by the

salary packages they are offering to the employees and many more things.

1) Products plans-:

Life is unpredictable, but in face of adversity, our responsibilities towards our parents,

children and loved ones need not to be compromised. Insurance planning equips we to

smooth out the uncertainties and adversities that life might send our way, so that the best

that life has to offer, secure in the knowledge that our beloved ones are well provided for.



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Reliance Life Insurance offers a range of innovative, customer-centric products that meet the

needs of customers at every life stage. Its products can be enhanced with up to riders to create a

customized solution for each policyholder.

These Products are divided into two parts basically:

Traditional Plan

ULIP (Unit Linked Insurance Plan)

U U L L I I P P

((UUnniitt lliinnkkeedd IInnssuurraannccee PPllaann))

Unit linked guidelines were notified by IRDA on 21st

December 2005. The main intent of the

guidelines was to ensure that they lead to greater transparency and understanding of these

products among the insured, especially since the investment risk is borne by the policyholder. It

is the endeavor of IRDA to enable the buyer to make the most informed decision possible when

planning for financial security.

ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life insurance policy

which provides a combination of risk cover and investment. The dynamics of the capital market

have a direct bearing on the performance of the ULIPs. In a unit linked policy, the investment

risk is generally borne by the investor.

The allocated (invested) portions of the premiums after deducting for all the charges and

premium for risk cover under all policies in a particular fund as chosen by the policy holders are

pooled together to form a Unit fund. Unit is a component of the Fund in a Unit Linked Policy.



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FFuunnddss oof f UULLIIPP

General Descriptions Nature of Investment Risk Category

Equity Funds

Primarily invested in

company stock with the

general aim of capital

appreciation Medium to high

Income,

Fixed

Interest Rates

And Bond Funds

Invested in corporate

bonds, government

securities and other fixed

income instrument Medium

Cash Funds

Sometimes known as

money market funds-

invested in cash, bank

deposits and money market

instrument Low

Balanced Funds

Combining equityinvestment with fixed

interest instrument High



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CChhaarrggeess,, f f eeeess aanndd ddeedduuccttiioonnss iinn aa UULLIIPP

ULIPs offered by different insurers have varying charge structures. Broadly, the different types

of fees and charges are given below. However, it may be noted that insurers have the right to

revise fees and charges over a period.

Premium Allocation Charges

This is a percentage of the premium appropriated towards charges before allocating the units

under the policy. This charge normally includes initial and renewal expenses apart from

commission expenses.

Mortality Charges

These are charges to provide for the cost of insurance coverage under the plan. Mortality charges

depend on number of factors such as age, amount of coverage, state of health etc

Fund Management Fees

These are fees levied for management of the funds and are deducted before arriving at the Net

Asset Value (NAV).

Policy/ Administration Charges

These are the fees for administration of the plan and levied by cancellation of units. This could

be flat throughout the policy term or vary at a pre-determined rate.



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Surrender Charges

A surrender charge may be deducted for premature partial or full encashment of units wherever

applicable, as mentioned in the policy conditions.

Fund Switching Charge

Generally a limited number of fund switches may be allowed each year without charge, with

subsequent switches, subject to a charge.

Service Tax Deductions

Before allotment of the units the applicable service tax is deducted from the risk portion of the

premium.

Investors may note, that the portion of the premium after deducting for all charges and premium

for risk cover is utilized for purchasing units.

Net Asset Value (NAV)

NAV is the value of each unit of the fund on a given day. The NAV of each fund is displayed on

the website of the respective insurers.

SSWWIITTCCHH

“SWITCH” option provides for shifting the investments in a policy from one fund to another

provided the feature is available in the product. While a specified number of switches are

generally effected free of cost, a fee is charged for switches made beyond the specified number.



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What happens if payment of premiums is discontinued?

a) Discontinuance within three years of commencement – If all the

premiums have not been paid for at least three consecutive years from inception, the insurance

cover shall cease immediately. Insurers may give an opportunity for revival within the period

allowed; if the policy is not revived within that period, surrender value shall be paid at the end of

third policy anniversary or at the end of the period allowed for revival, whichever is later.

b) Discontinuance after three years of commencement –

At the end of the period allowed for revival, the contract shall be terminated by paying the

surrender value. The insurer may offer to continue the insurance cover, if so opted for by the

policy holder, levying appropriate charges until the fund value is not less than one full year’s

premium. When the fund value reaches an amount equivalent to one full year’s premium, the

contract shall be terminated by paying the fund value.



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TThheerree aarree nnuummbbeerr oof f pprroodduuccttss iinn wwhhiicchh BBaa j jaa j j AAlllliiaannzz ddeeaallss.. TThheessee pprroodduuccttss aarree bbaasseedd oonn

ccuussttoommeerrss nneeeedd && rreeqquuiirreemmeennttss.. TThhee tteerrmm && ccoonnddiittiioonnss oof f tthhee pprroodduuccttss aarree vveerryy eeaassyy ssoo tthhaatt

ccuussttoommeerr ccaann uunnddeerrssttaanndd tthhee mmeeaanniinngg oof f iitt vveerryy eeaassiillyy.. TThheessee pprroodduuccttss aarree eennuummeerraatteedd bbeellooww::--

Unit Linked

● Regular Premium

NNeeww UUnniitt GGaaiinn

NNeeww UUnniitt GGaaiinn ++GGoolldd

●Single Premium

NNeeww UUnniitt GGaaiinn ++ SSPP

NNeeww UUnniitt GGaaiinn PPrreemmiieerr SSPP

CCeennttuurryy PPlluuss

Pension Annuity ►

PPeennssiioonn GGuuaarraanntteeee

Retirement

FFuuttuurree IInnccoommee GGeenneerraattoorr

SSwwaarrnn VViisshhrraannttii

Traditional Endowment

LLiif f ee TTiimmee CCaarree

SSuuppeerr SSaavveerr



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Money Back

CCaasshh GGaaiinn

Term Plan

NNeeww RRiisskk CCaarree

TTeerrmm CCaarree

Women Care

WWoorrkkiinngg WWoommeenn

HHoouussee WWiivveess

Health

HHeeaalltthh CCaarree

CCaarree FFiirrsstt

FFaammiillyy CCaarree FFiirrsstt



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Children Plan

CChhiilldd GGaaiinn



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BBaa j jaa j j AAlllliiaannzz EEnnddoowwmmeenntt PPllaann

It takes a lot for a dream to become a reality, and money is surely an important part of it.

Reliance Endowment Plan gives you just the financial independence to realize your dreams in

the future. It lets you decide how much you would like to set as your Sum Assured based on your

current financial position and your expected future expenses.

Key Features-

On maturity receive Sum Assured plus bonus

Wealth creation through bonus additions

More value for investor’s money by way of high Sum Assured rebate

Increase investor’s insurance protection by adding term cover

Choose to pay regular or single premium

Choose to add the benefit of two Riders – Critical Illness Rider and Accidental

Death Benefit and Total and Permanent Disablement Rider

Choose to avail of a Policy Loan after three full years of premium payment



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SSWWOOTT AANNAALLYYSSIISS

SSTTRREENNGGTTHH OOFF TTHHEE CCOOMMPPAANNYY

11.. TTeecchhnnoollooggiiccaall

22.. EEccoonnoommiiccaall

WWEEAAKKNNEESSSS OOFF TTHHEE CCOOMMPPAANNYY

11.. DDiidd nnoott ccoovveerr rruurraall aarreeaass..

OOPPPPOORRTTUUNNIITTIIEESS OOFF TTHHEE CCOOMMPPAANNYY

11.. TThheerree aarree ooppppoorrttuunniittiieess ttoo llaauunncchh vvaarriioouuss ppoolliicciieess wwhhiicchh aarree rreelleevvaanntt ttoo rruurraall aass

wweellll aass uurrbbaann aarreeaass aallll oovveerr IInnddiiaa..

22.. CCoommppaannyy ccaann eeaarrnn mmoorree pprroof f iitt f f rroomm vvaarriioouuss ppoolliicciieess..

TTHHRREEAATTSS OOFF TTHHEE CCOOMMPPAANNYY

11.. EExxiissttiinngg ccoommppeettiittoorrss..

22.. NNeeww ccoommiinngg eennttrraaiinnttss..



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CHAPTER 3

33..11 OOBBJJEECCTTIIVVEESS OOFF TTHHEE SSTTUUDDYY

1. To Analysis the insurance products of Bajaj Allianz

2. To Analysis the products that they meet with customers

requirements or not.



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CHAPTER 4

LITERATURE REVIEW

Life insurance (Life Assurance in British English) is a type of insurance. As in all insurance, the

insured transfers a risk to the insurer. The insured pays a premium and receives a policy in

exchange. The risk assumed by the insurer is the risk of death of the insured.

How life insurance works

There are three parties in a life insurance transaction; the insurer, the insured, and the owner of

the policy (policyholder), although the owner and the insured are often the same person. For

example, if John Smith buys a policy on his own life, he is both the owner and the insured. But if

Mary Smith, his wife, buys a policy on John's life, she is the owner and he is the insured. The

owner of the policy is called the grantee (he or she will be the person who will pay for the

policy). Another important person involved is the beneficiary. The beneficiary is the person or

persons who will receive the policy proceeds upon the death of the insured. The beneficiary is

not a party to the policy, but is designated by the owner, who may change the beneficiary unless

the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that

beneficiary must agree to changes in beneficiary, policy assignment, or borrowing of cash value.

The policy, like all insurance policies, is a legal contract specifying the terms and conditions of

the risk assumed. Special provisions apply, including a suicide clause wherein the policy

becomes null if the insured commits suicide within a specified time for the policy date (usually

two years). Any misrepresentation by the owner or insured on the application is also grounds for

nullification. Most contracts have a contestability period, also usually a two-year period; if the

insured dies within this period, the insurer has a legal right to contest the claim and request

additional information before deciding to pay or deny the claim.

http://en.wikipedia.org/wiki/British_English

http://en.wikipedia.org/wiki/Insurance

http://en.wikipedia.org/wiki/Beneficiary

http://en.wikipedia.org/wiki/Beneficiary

http://en.wikipedia.org/wiki/Insurance

http://en.wikipedia.org/wiki/British_English



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The face amount of the policy is normally the amount paid when the policy matures, although

policies can provide for greater or lesser amounts. The policy matures when the insured dies or

reaches a specified age. The most common reason to buy a life insurance policy is to protect the

financial interests of the owner of the policy in the event of the insured's demise. The insurance

proceeds would pay for funeral and other death costs or be invested to provide income replacing

the deceased's wages. Other reasons include estate planning and retirement. The owner (if not the

insured) must have an insurable interest in the insured, i.e. a legitimate reason for insuring

another person’s life. The insurer (the life insurance company) calculates the policy prices with

an intent to recover claims to be paid and administrative costs, and to make a profit. The cost of

insurance is determined using mortality tables calculated by actuaries. Actuaries are

professionals who use actuarial science which is based in mathematics (primarily probability and

statistics). Mortality tables are statistically based tables showing average life expectancies. The

three main variables in a mortality table are age, gender, and use of tobacco. The mortality tables

provide a baseline for the cost of insurance. In practice, these mortality tables are used in

conjunction with the health and family history of the individual applying for a policy in order to

determine premiums and insurability. The current mortality table being used by life insurance

companies in the United States and their regulators was calculated during the 1980s. There is

currently a measure being pushed to update the mortality tables by 2008.

The current mortality table assumes that roughly 2 in 1,000 people aged 25 will die during the

term of coverage. This number rises roughly quadratic ally to about 25 in 1,000 people for those

aged 65. So in a group of one thousand 25 year old males with a $100,000 policy, a life

insurance company would have to, at the minimum, collect $200 a year from each of the

thousand people to cover the expected claims. The insurance company receives the premiums

from the policy owner and invests them to create a pool of money from which to pay claims, and

finance the insurance company's operations. Contrary to popular belief, the majority of the

http://en.wikipedia.org/wiki/Actuary

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/1980s

http://en.wikipedia.org/wiki/1980s


http://en.wikipedia.org/wiki/Actuary



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money that insurance companies make comes directly from premiums paid, as money gained

through investment of premiums will never, in even the most ideal market conditions, vest

enough money per year to pay out claims. Rates charged for life insurance increase with the

insured's age because, statistically, a people are more likely to die as they get older.

Since adverse selection can have a negative impact on the financial results of the insurer, the

insurer investigates each proposed insured (unless the policy is below a company-established

minimum amount) beginning with the application, which becomes part of the policy. Group

Insurance policies are an exception. This investigation and resulting evaluation of the risk is

called underwriting. Health and lifestyle questions are asked, and the answers are dutifully

recorded. Certain responses by the insured will be given further investigation. Life insurance

companies in the United States support The Medical Information Bureau, which is a

clearinghouse of medical information on all persons who have ever applied for life insurance. As

part of the application, the insurer receives permission to obtain information from the proposed

insured's physicians. Life insurance companies are never required by law to underwrite or to

provide coverage on anyone. They alone determine insurability, and some people, for their own

health or lifestyle reasons, are uninsurable. The policy can be declined (turned down) or rated.

Rating means increasing the premiums to provide for additional risks relative to that particular

insured.

Many companies use four general health categories for those evaluated for a life insurance

policy. These categories are Preferred Best, Preferred, Standard, and Tobacco. Preferred Best

means that the proposed insured has no adverse medical history, is not under medication for any

condition, and his family (immediate and extended) have no history of early cancer, diabetes, or

other conditions. Preferred is like Preferred Best, but it allows that the proposed insured is

currently under medication for the condition and may have some family history. Most people are

http://en.wikipedia.org/wiki/Adverse_selection

http://en.wikipedia.org/wiki/Group_Insurance


http://en.wikipedia.org/wiki/Underwriting


http://en.wikipedia.org/wiki/Medical_Information_Bureau

http://en.wikipedia.org/wiki/Clearinghouse

http://en.wikipedia.org/wiki/Tobacco

http://en.wikipedia.org/wiki/Tobacco

http://en.wikipedia.org/wiki/Clearinghouse

http://en.wikipedia.org/wiki/Medical_Information_Bureau


http://en.wikipedia.org/wiki/Underwriting



http://en.wikipedia.org/wiki/Adverse_selection



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in the Standard category. Profession, travel, and lifestyle also factor into not only which category

the proposed insured falls, but also whether the proposed insured will be denied a policy. For

example, a person who would otherwise be in the Preferred Best category will be denied a policy

if he or she travels to a high risk country.

Upon the death of the insured, the insurer will require acceptable proof of death before paying

the claim. The normal minimum proof is a death certificate and the insurer's claim form

completed, signed, and often notarized. If the insured's death was suspicious and the policy

amount warrants it, the insurer may investigate the circumstances surrounding the death, before

deciding whether there is a legal obligation to pay the claim. Proceeds from the policy may be

paid in a lump sum or as an annuity paid over time in regular recurring payments for either for

the life of a specified person or a specified time period.

http://en.wikipedia.org/wiki/Notary

http://en.wikipedia.org/wiki/Annuity

http://en.wikipedia.org/wiki/Annuity

http://en.wikipedia.org/wiki/Notary



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BBRRIIEEFF HHIISSTTOORRYY OOFF TTHHEE IINNSSUURRAANNCCEE SSEECCTTOORR

What is Insurance?

Insurance is a contract between two parties whereby one party called insurer undertakes in

exchange for a fixed sum called premiums, to pay the other party happening of a certain event.

Insurance is a protection against a financial loss arising on the happening of an unexpected event.

Insurance Companies collect premium to provide for this protection. A loss is paid out of this

premium collected from the insuring public. The insurance Company act as a trustee to the

amount collected through premium.

Insurance is generally classified in three main categories, (i) Life Insurance, (ii) Health insurance

and (iii) General Insurance

To get insurance an individual or an organisation can approach to an insurance Company

directly, through Insurance Agent of the concerned company or through Intermediaries.

Benefits of Insurance

1. Safeguards oneself and one's family for future requirements

2. Peace of mind-in case of financial loss.



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3. Encourage saving.

4. Tax rebate.

5. Protection from the claim made by creditors.

6. Security against a personal loan, housing loan or other types of loan.

7. Provide a protection cover to industries, agriculture, women and child

Reasons for buying insurance

Insurance Buys Time and Money

People like to refer to insurance as time insurance, the reason being that insurance proceeds are

paid to the insured's beneficiaries in case of death or on the maturity of the policy. The money

proffered by insurance helps buy time to adjust to the change of circumstances. Insurance

provides large amounts of cash that will keep the lifestyle for the survivors the way it was before

the insured's death.

Insurance Offers Peace of Mind

For the person who buys an insurance policy, it offers absolute and complete peace of mind. He

or she knows that the decision made by him will provide sound benefits in the future, whether or

not the individual may live to see it. The life insurance policy will subsequently prove this in the

future if and when funds are needed. This is the guarantee of the insurance contract.

Multiple Applications

The future is uncertain for each and every one. No one knows how long he or she will live. The

investment benefit is paid to the insured's beneficiaries after his death or it can be used during the

life as well. Life insurance policy owners can turn to the cash value of the policy in case of a

financial emergency when all avenues are either blocked or denied. They know that they can

avail of loans based on their insurance policies. Insurance policy owners can use the cash value



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of their policies to meet their long-term financial needs as well. They may have purposefully

invested in insurance to use the cash in the policy for their children's future marriage expenses or

higher education fees.

Enduring Elasticity

Since life insurance is flexible enough to serve several needs, the insured can keep several long-

term goals in mind once he or she invests in the insurance plan. The cash value of the policy can

be allocated towards augmenting the monthly income during the retirement years. Leisure years

should be turned into pleasure years. Permanent life insurance is designed on the concepts of

long-term flexibility.

Financial Security

The insurance policy offers contractual guarantees to people looking for peace of mind when

they buy life insurance. Life insurance offers complete financial security. The purchase of life

insurance demonstrates concern for a family's future financial well being.

Regard for Family

The purchase of life insurance clearly displays care and concern for the people the policy owner

loves.

Insurance is Safer

No financial institution can do what life insurance does. No industry can back its products with

reserves and surplus as sound as those of the insurance industry. The proof of strength and safety

that insurance companies have ensured even under the most adverse of conditions is a matter of

pride for the entire insurance industry. For generation after generation, life insurance has been

acclaimed as the very benchmark of security against which the other industries are measured.



- 40 -

History

The history of life insurance in India dates back to 1818 when it was conceived as a means to

provide for English Widows. Interestingly in those days a higher premium was charged for

Indian lives than the non-Indian lives as Indian lives were considered more riskier for coverage.

The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company

to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company

was established in 1880.

Insurance regulation formally began in India with the passing of the Life Insurance Companies

Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied

insurance business in India. By 1938 there were 176 insurance companies. The first

comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict

State Control over insurance business. The insurance business grew at a faster pace after

independence. Indian companies strengthened their hold on this business but despite the growth

that was witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and provident

societies under one nationalised monopoly corporation and LIC was born. Nationalisation was

justified on the grounds that it would create much needed funds for rapid industrialization. This

was in conformity with the Government's chosen path of State lead planning and development.

The first general insurance company- Triton Insurance Company Limited, was established in

1850. Till the end of nineteenth century insurance business was almost entirely in the hands of

overseas companies. . In 1957 the General Insurance Council a wing of Insurance Association of

India formed a code of conduct. In 1961 an insurance act was passed to form General Insurance

Company Ltd. which was amended in 1968. General Insurance business was nationalised with



- 41 -

effect from 1.1.73 by the General Insurance Business Act. from 1973, The General Insurance

Company (GIC) as a holding company divided in four subsidiaries as: National Insurance

Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd.

and The United Assurance Company Ltd.

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 recognising that insurance is an important part of the overall financial system where it was

necessary to address the need for similar reforms…”

In 1994, the committee submitted the report and some of the key recommendations included:

i) Structure

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

Government should take over the holdings of GIC and its subsidiaries so that these

subsidiaries can act as independent corporations

All the insurance companies should be given greater freedom to operate

ii) Competition

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

the industry



- 42 -

No Company should deal in both Life and General Insurance through a single entity

Foreign companies may be allowed to enter the industry in collaboration with the

domestic companies

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

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

iii) Regulatory Body

The Insurance Act should be changed

An Insurance Regulatory body should be set up

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

independent.

iv) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from

75% to 50%

GIC and its subsidiaries are not to hold more than 5% in any company (There current

holdings to be brought down to this level over a period of time)

v) Customer Service

LIC should pay interest on delays in payments beyond 30 days

Insurance companies must be encouraged to set up unit linked pension plans

Computerisation of operations and updating of technology to be carried out in the

insurance industry The committee emphasised that in order to improve the customer

services and increase the coverage of the insurance industry should be opened up to

competition. But at the same time, the committee felt the need to exercise caution as any

failure on the part of new players could ruin the public confidence in the industry. Hence,

it was decided to allow competition in a limited way by stipulating the minimum capital



- 43 -

requirement of Rs.100 crores. The committee felt the need to provide greater autonomy

to insurance companies in order to improve their performance and enable them to act as

independent companies with economic motives. For this purpose, it had proposed setting

up an independent regulatory body.



- 44 -

The Insurance Regulatory and Development Authority

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament

in December 1999. The IRDA since its incorporation as a statutory body inApril 2000 has

fastidiously stuck to its schedule of framing regulations and registering the private sector

insurance companies.The other decisions taken simultaneously to provide the supporting systems

to the insurance sector and in particular the life insurance companies was the launch of the

IRDA’s online service for issue and renewal of licenses to agents.The approval of institutions for

imparting training to agents has also ensured that the insurance companies would have a trained

workforce of insurance agents in place to sell their products, which are expected to be

introduced by early next year.Since being set up as an independent statutory body the IRDA has

put in a framework of globally compatible regulations. In the private sector 12 life insurance and

6 general insurance companies have been registered.

Present Scenario

The Government of India liberalised the insurance sector in March 2000 with the passage of the

Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for

private players and allowing foreign players to enter the market with some limits on direct

foreign ownership. Under the current guidelines, there is a 26 percent equity cap for foreign

partners in an insurance company. There is a proposal to increase this limit to 49 percent.

Premium rates of most general insurance policies come under the purview of the government

appointed Tariff Advisory Commitee.

The opening up of the sector is likely to lead to greater spread and deepening of insurance in

India and this may also include restructuring and revitalizing of the public sector companies. A

host of private Insurance companies operating in both life and non-life segments have started

selling their insurance policies since 2001.



- 45 -

Non-Life Insurance Market

In December 2000, the GIC subsidiaries were restructured as independent insurance companies.

At the same time, GIC was converted into a national re-insurer. In July 2002, Parliamant passed

a bill, delinking the four subsidiaries from GIC.

Presently there are 12 general insurance companies with 4 public sector companies and 8 private

insurers. Although the public sector companies still dominate the general insurance business, the

private players are slowly gaining a foothold. According to estimates, private insurance

companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half of

2002, the private companies booked premiums worth Rs 6.34 billion. Most of the new entrants

reported losses in the first year of their operation in 2001.

Insurance costs constitute roughly around 1.2- 2 percent of the total project costs. Under the

existing norms, insurance premium payments are treated as part of the fixed costs. Consequently

they are treated as pass-through costs for tariff calculations.

For Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets the premium rates,

for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the

committee's guidelines; and projects above Rs 15 billion are subjected to re-insurance pricing. It

is the last segment that has a number of additional products and competitive pricing.

Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead,

shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the

premium. The other companies share the remaining risk and premium. The policies are renewed

usually on an annual basis through the invitation of bids.

Of late, with IPP projects fizzling out, the insurance companies are turning once again to old

hands such as NTPC, NHPC and BSES for business.



- 46 -

Re-insurance business

Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which

can be safely borne from their own funds. The balance risk is re-insured with other insurers. In

effect, therefore, re-insurance is insurer's insurance. It forms the backbone of the insurance

business. It helps to provide a better spread of risk in the international market, allows primary

insurers to accept risks beyond their capacity, settle accumulated losses arising from catastrophic

events and still maintain their financial stability.

While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer.

Currently, all insurance companies have to give 20 per cent of their reinsurance business to GIC.

The aim is to ensure that GIC's role as the national reinsurer remains unhindered. However, GIC

reinsures the amount further with international companies such as Swissre (Switzerland),

Munichre (Germany), and Royale (UK). Reinsurance premiums have seen an exorbitant increase

in recent years, following the rise in threat perceptions globally.

Life Insurance Market

The Life Insurance market in India is an underdeveloped market that was only tapped by the

state owned LIC till the entry of private insurers. The penetration of life insurance products was

19 percent of the total 400 million of the insurable population.The state owned LIC sold

insurance as a tax instrument, not as a product giving protection. Most customers were under-

insured with no flexibility or transparency in the products. With the entry of the private insurers

the rules of the game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the

market in terms of premium income. The new business premiums of the 12 private players has

tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium

business has fallen.



- 47 -

Innovative products, smart marketing and aggressive distribution. That's the triple whammy

combination that has enabled fledgling private insurance companies to sign up Indian customers

faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving

device, are now suddenly turning to the private sector and snapping up the new innovative

products on offer.

The growing popularity of the private insurers shows in other ways. They are coining money in

new niches that they have introduced. The state owned companies still dominate segments like

endowments and money back policies. But in the annuity or pension products business, the

private insurers have already wrested over 33 percent of the market. And in the popular unit-

linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers.

The private insurers also seem to be scoring big in other ways- they are persuading people to

take out bigger policies. For instance, the avaerage size of a life insurance policy before

privatisation was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers

are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh-

way bigger than the industry average.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.

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

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate

the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.



- 48 -

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central

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.

The General insurance business in India, on the other hand, can trace its roots to the Triton

Insurance Company Ltd., the first general insurance company established in the year 1850 in

Calcutta by the British.

MMAAJJOORR PPOOLLIICCYY CCHHAANNGGEE

Insurance sector has been opened up for competition from Indian private insurance companies

with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act).

As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority

(IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy

and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999

paved the way for the entry of private players into the insurance market, which was hitherto the

exclusive privilege of public sector insurance companies/ corporations. Under the new

dispensation, Indian insurance companies in private sector were permitted to operate in India

with the following conditions:

Company is formed and registered under the Companies Act, 1956.

The aggregate holdings of equity shares by a foreign company, either by itself or through

its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of

such Indian insurance company;



- 49 -

The company's sole purpose is to carry on life insurance business or general insurance

business or reinsurance business.

The minimum paid up equity capital for life or general insurance business is Rs.100

crores.

The minimum paid up equity capital for carrying on reinsurance business has been

prescribed as Rs.200 crores.

The Authority has notified 27 Regulations on various issues, which include Registration of

Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers

to Rural and Social sector, Investment and Accounting Procedure, Protection of policyholders'

interest etc. Applications were invited by the Authority with effect from 15 August 2000 for

issue of the Certificate of Registration to both life and non-life insurers. The Authority has its

Head Quarter at Hyderabad.



- 50 -

The Insurance Sector In India

IInnddiiaa aatt aa ggllaannccee

►Population: 1 Billion

►Economy: 5th largest in the world in terms of Purchasing Power

Parity.

►GDP growth Rate: Over 6% per year on an average for the last decade.

►Savings Rate: Around 26% of GDP

►Estimated middle class population: 300 Million

►Insured population: 70 million only



- 51 -

PPRRIIVVAATTEE OORR PPUUBBLLIICC – –

II AAmm TThheerree EEvveerryywwhheerree

Insurance in India has been divided into two sectors-:

PRIVATE

PUBLIC

COMPANIES PROVIDING LIFE INSURANCE BENEFITS

PUBLIC

Life Insurance Corporation of India

PRIVATE

Bajaj Allianz Life Insurance Company Limited

Birla Sun-Life Insurance Company Limited

HDFC Standard Life Insurance Co. Limited

ICICI Prudential Life Insurance Co. Limited

ING Vysya Life Insurance Company Limited

Max New York Life Insurance Co. Limited

MetLife Insurance Company Limited



- 52 -

Om Kotak Mahindra Life Insurance Co. Ltd.

SBI Life Insurance Company Limited

TATA AIG Life Insurance Company Limited

AMP Sanmar Assurance Company Limited

Dabur CGU Life Insurance Co. Pvt. Limited

Reliance Life Insurance Company Limited

GENERAL INSURERS

Public Sector

National Insurance Company Limited

New India Assurance Company Limited

Oriental Insurance Company Limited

United India Insurance Company Limited

Private Sector

Bajaj Allianz General Insurance Co. Limited

ICICI Lombard General Insurance Co. Ltd.

IFFCO-Tokio General Insurance Co. Ltd.

Reliance General Insurance Co. Limited



- 53 -

Royal Sundaram Alliance Insurance Co. Ltd.

TATA AIG General Insurance Co. Limited

Cholamandalam General Insurance Co. Ltd.

Export Credit Guarantee Corporation



- 54 -

LLiif f ee iinnssuurraannccee

Life Insurance is a kind of agreement made among the owner of the policy and the insurer, which

says that the issuer would pay a sealed amount of money after the death of the policyholder. In

return, the policy payer would have to pay a specified amount of money, known as premium

regularly. The Life Insurance covers both natural death and accidental death.

There are many kinds of Life Insurance Policies in the Market. Some of them are:

Temporary Life Insurance: Temporary Life Insurance Policy offers Life Insurance coverage

for a limited period of time. Temporary Life Insurance premium buys protection for nothing else

but death.

Permanent Life Insurance: Permanent Life Insurance is a kind of insurance that stays valid

until the policy gains maturity or the policy holder fails to pay the premium within due date. The

permanent Life Insurance can be of three types: Whole Life, Universal Life and Endowment.

Accidental Death Life Insurance: Accidental Death Life Insurance is a limited policy, which is

decorated to cover the Life Insurance policy holder at the time of his death due to some

accidents. This also offers protection to those who loose his or her body parts by an accident.

For today’s fast paced life it is essential to have a Life Insurance Policy for everyone.

To know more about Life Insurance one should know the following topics:



- 55 -

Life Insurance Policies

Life Insurance Policies has an important role in ones life. These policies cover losses that

arise from the loss of one's life. Find various life insurance policies.

Life Insurance Companies

Life Insurance Companies renders various life insurance products and ultimately protects

from the risk associated to life.

Life Insurance Rates

Life Insurance Rates can be broadly categorized into Proffered Category, Preferred Plus

Category and Standard Category. Get detailed on the life insurance categories.

Insurance premium

Insurance Premium is the payment made by the policyholder to the insurance company on a

regular time span. This payment has to be made by the insured person until the maturity of the

insurance. Insurance Premium may vary from company to company along with the coverage

limit. Thus, while selecting an insurance policy one should be very careful and should compare

all the possible options through online website services. The customers are advised to compare

the quotes offered by the different insurance companies and select from the wide variety of

options available to them.

Insurance brokers play an important role in finding the appropriate insurance for the customer by

assessing and titrating the different insurances available in the market. The brokers or agents

calculate the premiums on the basis of the requirement particulars of the customer. The lowest



- 56 -

quote offered by the insurance company is considered to be the most suitable one for the

customer.

The above mentioned work of insurance premium calculation now-a-days are also done by the

specialized websites doing the searching, comparing and calculating the insurance premium on

behalf of the customers.

The insurance premium generally increases with the increase in the risk perception of the

company about that person.

In case of medical insurance or med claim, the cost of premium is more for the smokers

than the non-smokers because the insurance company considers that the smoker

possesses a greater risk of health hazard than the non-smoker. Hence, the cost of

premium is directly proportional to the risk associated.

In case of the car insurance, the cost of premium is generally higher than an older one

because the insurance company considers that the younger driver is more prone to

accident than the latter.

In case of Life Insurance, the insurance company considers the aged person to be more

prone to death. Hence, it charges a higher premium than from him. However, when it

comes to a younger person seeking life insurance, then the premium charged from him is

less. The reason behind it is that in normal conditions a younger person stands more

chance in living a longer life span.



- 57 -

IINNSSUURRAANNCCEE CCOOMMPPAANNIIEESS

Insurance Company is a financial company or institution, which does the work of selling

insurance policies of all types in order to hedge the risk of contingent future losses or damages or

hazards.

These possible risks are not certain to take place in the future because future is uncertain.

However, a person cannot take a wait-and-see approach because it would subject them to sheer

risk. If the casualty, damage, or loss does happen then the person without any insurance would

not get any compensation from the insurance company.

If a person buys an insurance against any future risk then in case of actual causation the

insurance company would compensate for the resulting financial loss.

Issuance of insurance by an insurance company is not a free affair. Rather the policyholder of

insurance is needed to pay a regular payment amount to the insurance company until its maturity.

This amount is repaid either in entirety or in part to the insurance holder in case of occurrence of

the hazard or casualty or loss. However, it has been observed that much insurance are not

claimed due to non-occurrence of the risk and thus the premiums paid by the policy holders

become the profit of the insurance company.



- 58 -

Insurance companies offer insurances on the following categories:-

Life Insurance

Medical Insurance

Non-life or General Insurance

Non life or general insurance issuing companies can again be

classified under :-

Standard Insurance Company

This type of insurance companies generally issue insurances against commercial and

residential related risks, automobile related risks and the risks associated with businesses.

These are mainly standardized policies with minimum scope of customization in

accordance with personal needs of the customers. The characteristic features of this type

of companies include lower rate of premium and direct sales to the customer approach.

Excess Insurance Company

This type of insurance company is involved in insuring the risks, which are out of the

fold of the Standard Insurance companies. These insurances are given to those persons

who are not licensed insurers of the concerned state.



- 59 -



- 60 -

CHAPTER 5

RESEARCH METHODOLOGY

1. For Financial Advisor acting the objective of the study

2. Designing the methods of data collection

3. Selecting the sample plan

4. Collecting the data

5. Processing and analyzing the data

6. Reporting the findings



- 61 -

Process of research methodology

Sample Design

Data Collection

Data analysis

Reporting of Findings

Research Design

Objective of Study



- 62 -

5.1 RESEARCH DESIGN:

Research Design specifies the methods and procedures for conducting a particular study. A

Research Design is the arrangement of conditions for collection and analysis of the data in a

manner that aims to combine relevance to the research purpose with economy in procedure.

Research Design is broadly classified into three types as

Exploratory Research Design

Descriptive Research Design

Hypothesis testing Research Design

On the basis of the objective of study, the studies which are concerned with describing the

character tics of a particular individual, or of a group of individual under study comes under

Descriptive Research Design.

:

In this research design the objective of study is clearly defined and has accurate

method of measurement with a clear cut definition of population which is to be studied .

SAMPLING DESIGN:

A Sample Design is a definite plan for obtaining a sample from a given population. It refers to

the technique and the procedure adopted in selecting items for the sample. The main constitution

of the sampling design is as below-

1. Sampling Unit

2. Sample Size

3. Sampling Procedure



- 63 -

SAMPLING UNIT:

A sampling framework i.e. developed for the target population that will be sampled i.e. who is to

be surveyed.

Customers

SAMPLE SIZE:

It is the substantial portion of the target population that are sampled to achieve reliable results.

Sample size = 110 respondents (Customer) at Meerut

SAMPLING PROCEDURE

The procedure to choose the respondents to obtain a representative sample, a non-probability

sampling technique is applied for the target – market.

Non-Probability Sampling

It is a purposive sampling which deliberately chooses the particular units of the universe for

constituting a sample on the basis that the small mass that they so select out of a huge one will be

typical or representative of the whole.

Judgment sampling:

To select population members who are good prospects for accurate information?



- 64 -

5.2 DATA COLLECTION METHOD:

Usually company representative gave the data of those persons who are the big fish like

CA, CFS, ICWA, MBA, DOCTOR, GM etc. Besides all these I have used my own

database which consisted of Professor, high school and college teacher, agents in reputed

company like Peerless, Sahara,, New India Assurance Co. etc, Serviceman, retired person

from reputed organization etc.

After having all these I used to analyze the profile of those person and go forward to

meet them individual. In my case what I had proceed on



- 65 -

55..33 LLIIMMIITTAATTIIOONNSS

While learning any thing new there are some limitations and this project is no exception.

Limitations while making projects

1. sometime problems were faced while collecting data.

2. as it was the first time experience of learning while working so it takes time to adjust.

Limitation of time

Time availability was one of the biggest limitations face due to shortage of time we had to

limit the work in its present form.

Other limitations

1. Since I did not have any previous experience so it may have led to discrepancies in the

report.

2. As the environment was very new to me so it takes some time to become friendly



- 66 -



- 67 -

CHAPTER 6

DAATA ANALYSIS & INTERPRETATION

Are you aware of BAJAJ ALLIANZ and its products?

Yes 20

No 80

Ans. This graph represents that 20% people are aware about Bajaj Allianz whereas 80% people

are not aware of it.

20

80

010203040506070

8090

YES NO

AWARENESS ABOUT BAJAJ ALLIANJ

Series1



- 68 -

2. Are you availing any insurance facility from any other insurance co.?

Yes [ ] No [ ]

Yes 83

No 17

Ans. This graph represents that 83% of people are availing insurance services whereas 17% of

people are not availing insurance services.

83

17

010

20

30

40

50

60

70

80

90

YES NO

AVAILING INSURANCE SERVICES

Series1



- 69 -

3. What is the best part in others?

Policies 67

Services 23

Maturity period 2

Installment 8

Ans. According to this graph 67% people consider policy, 23% consider service, 2%consider

maturity and 8% consider instalment the best.

POLICY, 67

SERVICE , 23

MATURITY, 2

INSTALLMENT

, 8

0

10

20

30

40

5060

70

80

Series1



- 70 -

4. What you prefer while invest in insurance?

Tax saving 45

Investment 20

Risk covers 30

Others 5

Ans. This graph represents that 43% of people prefer tax saving, 23% people prefer investment,

30% people prefer risk cover and 4%people prefer others while they invest in insurance.

TAX SAVING,

43

INVESTMENT,23

RISK COVER ,

30

OTHERS, 4

0

5

10

15

20

25

30

35

40

45

50

TAX SAVING INVESTMENT RISK COVER OTHERS

Series1



- 71 -

5. Which product do you like most in Bajaj Allianz?

New unit gain 28

New unit gain gold 12

Century Plus 60

Ans. This graph shows that 28% people like new unit gain, 12% people like nug+gold and

60%people like century plus in Bajaj Allianz.

NEW UNIT

GAIN, 28

NUG+ GOLD,

12

CENTURY

PLUS, 60

0

10

20

30

40

50

60

70

NEW UNIT GAIN NUG+ GOLD CENTURY PLUS

Series1



- 72 -

6. Does the insurance really meet with your requirements?

Yes 85

No 13

If no, why ……………………………

Ans. This graph shows that insurance really met the reruirements of 87% but it does not met the

requirements of 13%.

87

13

0

10

20

30

40

50

60

70

80

90

100

YES NO

Series1



- 73 -

7. Which one is favorite investment area for you in long term?

Fix deposit 35

Insurance 25

Real Estate 32

Others 8

Ans. According to this graph 35% people like fixed deposit, 25% like insurance, 32%like real

estate and 8% like ohers as favourite invexstment area for long term.

FIXED

DEPOSIT , 35

INSURANCE ,

25

REAL ESTATE,

32

OTHERAS, 8

0

5

10

15

2025

30

35

40

FIXED

DEPOSIT

INSURANCE REAL ESTATE OTHERAS

Series1



- 74 -

8. Where do you see Bajaj Allianz in insurance sector?

First 0 fourth 18

Second 23 Fifth 12

Third 47

Ans. This graph shows that 0% people ranked it first, 23% ranked it second, 47% ranked

it third, 18% ranked it fourth and 12% ranked it fifth according to position.

%age

0

2 3

4 7

1 8 1

2

0

10

20

30

40

50

first second third fourth fifth

%age



- 75 -



- 76 -

C C H H A A P PT T E E R R 7 7

7 7 . .11 F F I I N N D D I I N N GGSS

o The project, which has been assigned, can be boon for any trainee who wants to

pursue his/her carrier as trainer.

o The training methods, which the department was using, were unique and were

very effective.

o The target which has been assigned to each trainee was not seems to be a burden

on them as for that they were trained by the trainers who had established a parent

child relationship rather than a trainer and trainee relationship.

o Regular evaluation of the performance always helps to make the learning more

effective.

o Motivation is the key to success for any trainer as when he/she motivates his/her

trainee then only the trainee will be able to learn more and more.



- 77 -

77..22 CCoonncclluussiioonn

I have received following while working as a summer trainee in Bajaj Allianz life insurance in

accordance with the objective.

Insurance sector is a booming sector in today’s scenario. It is adding a major part to our Indian

economy. So one can think himself lucky if he/she get a chance while working within this sector.

As I got the golden opportunity working with the training department, I got to learn what

actually training means in the corporate world. I worked on the project SM mentoring. In this, I

learned how to train, mentor and enhance the skills and talents of the trainees.

The conclusion what I draw is that training is an important tool for learning and training

department is the only, by which we can get it. Training department is like the blood in the veins

of the company, which helps to develop the work force working there to attain a maintainable

position in the society.



- 78 -

77..33 RREECCOOMMMMEENNDDAATTIIOONN && SSUUGGGGEESSTTIIOONN

-The training methods used should not only sound good but also they should have practicality in

them.

-The trainers should sometime adopt paternalistic approach

-The projects should be easy to understand and apply.

-The training procedures should be made keeping in mind that it should be suitable for all as all

come from different educational background.

-if the company is using an online training process for training the advisors then this should be

kept in the mind that whether all the facilities needed for that are available in the area or not.



- 79 -



- 80 -

APPENDICES

QUESTIONNAIRE

1. PERSONAL PROFILE

NAME:

AGE:

PROFESSION:

ANNUAL INCOME: ……….. MARITAL STATUS: ………………...................

CONTACT ON; …………… ADDRESS: …………………………………………

2. Are you aware of BAJAJ ALLIANZ and its products?

Yes [ ] No [ ]

3. Are you availing any insurance facility from any other insurance co.?

Yes [ ] No [ ]

If Yes, in which . . . . . . . . . . . .

4. What is the best part in others?

Policies [ ] Services [ ] Maturity period [ ] Installment [ ]

5. What you prefer while invest in insurance?

Tax saving [ ] Investment [ ] Risk covers [ ] Others [ ]

6. Do you want to earn more money from insurance?

Yes [ ] No [ ]

7. Which product do you like most in Bajaj Allianz?

New unit gain [ ] New unit gain gold [ ] Century Plus [ ]

8. What changes you are looking for in insurance policies?

………………………………………………………………………………………………………

……………………………………………………………………………………………………..



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……………………………………………………………………………………………… .

9. Does the insurance really meet with your requirements?

Yes [ ] No [ ]

If no, why ……………………………

10. Which one is favorite investment area for you in long term?

Fix deposit [ ] Insurance [ ] Real Estate [ ] Others [ ]

11. Where do you see Bajaj Allianz in insurance sector?

First [ ] Second [ ] Third [ ] fourth [ ] Fifth [ ] Others [ ]



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BB I I BBLL I I OOG G RR A AP P H H Y Y

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Philip Kotler Principle of Marketing Management Edition-Vth 2003 Pg- 164

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