Changing investment pattern and insurance consultancy as a career with Bajaj Allianz Life Insurance Co. Ltd

8/14/2019 Changing investment pattern and insurance consultancy as a career with Bajaj Allianz Life Insurance Co. Ltd.

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1. COMPANY PROFILE :

Bajaj Auto and Allianz have agreed on a new joint venture to distribute consumer financial

products throughout India. Bajaj Auto & Allianz have signed their third joint venture

partnership, 'Bajaj Allianz Financial Distributors Ltd.', encouraged by the tremendous

performance of the Bajaj Allianz Life Insurance & Bajaj Allianz General Insurance and by the

strong trust of consumers in the Bajaj Allianz brand. This joint venture is spurred by the

potential from the customers across the country, specifically from non-urban markets, to also

provide other consumer financial products like mutual funds, credit cards, home loans and

personal loans at their doorstep, as we have provided simple, flexible and value-for-money

insurance

products and services throughout India.

ALLIANZ AG:

Worlds Largest Insurance co. by revenue Rs 5,20,353 Cr (Euro 96.9 billion)

Worldwide 2nd by Gross Written Premiums Rs 4,77,930 Cr (Euro 89billion)

3rd largest Assets Under Management (AUM) & largest amongst Insurance Co. - AUM

of Rs 95,94,200 Cr (Euro 1078 billion)

11th largest corporation in the world

50 % of global business from Life Insurance, close to 60 million lives insured globally

Established in 1890, 110 yrs of Insurance expertise

More than 70 countries, 173,750 employees worldwide

Insurance to almost half of the Fortune 500 cos.

BAJAJ ALLIANZ LIFE INSURANCE:

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Allianz SE with over 118 years of experience in over 70 countries and Bajaj Auto, trusted for

over 55 years in the Indian market, together are committed to offering you financial solutions

that provide all the security you need for your family. Bajaj Allianz brings to you several

innovative products, the details of which you can browse in this section.

No.1 Private Life Insurer FY 2007-08. Leading by Rs. 78 Cr.

No.1 Private Life Insurer in Retail Business. Leading by Rs. 339 Cr.

Whopping growth of 216% for the FY 2005-06

Have sold over 13,00,000 policies to satisfied customers

Assets under management Rs 11.459 million.

Shareholder capital base of Rs 12.10 million.

Product tailored to suit your needs

Decentralized organization structure for faster response

Wide reach to serve you better a nationwide network of 1200 + branches

Specialized departments for Banc assurance, Corporate Agency and Group

Business

Well networked Customer Care Centers (CCCs) with state of art IT systems

Highest standard of customer service & simplified claims process in the industry

Website to provide all assistance and information on products and services, online

buying and online renewals.

5 Zonal Offices located at Kolkata, Lucknow, New Delhi, Ahmedabad,

Bangalore.28 Regional/ state Offices

Over 10,000 Sales Managers

Over 3,00,000 Insurance Consultants

More than 170 Bancassurance partners across country

Strong alternate channel with over 2000 Franchisees, over 200 corporate agents,

more than 70 brokers and over 100 Direct Marketing Branches to be launched this

year

Bajaj Allianz Top Management Team

Name Designation

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Mr. Kamesh Goyal Chief Executive OfficerMr. Anil Kumar Singh Appointed Actuary & Head Product DevelopmentMr. ECJ Augustine Head Sales & Strategic InitiativesMr. G B Laddha Investment ConsultantMr. Niraj Kumar Head - Alternate Channel & Zonal Head Agency (West)Mr. Rajesh Vishwanathan Chief Financial Officer Mr. Sashi Krishnan Chief Investments Officer Mr. V Philip Head Operations & Customer ServicesMr. Akshay Mehrotra Head MarketingMr. A S Narayanan Head Bancassurance & NRI BusinessMr. Jaydeep Chaure Head Human ResourcesMr. J K Bhagat Head Corporate BusinessMr. Manish Dwivedi Head Direct MarketingMr. Samir Bakshi Company Secretary & Head Legal CompliancesMr. V Sriram Head Internal AuditMr. Yogesh Gupta Head Business Procurement

Board Members

1. Mr. Rahul Bajaj - Chairman of the Company, an Honours Graduate in Economics &

Law and MBA from Harvard Business School. He is a member of Rajya Sabha and

Chairman of Bajaj Auto Ltd.

2. Dr. Werner Zedelius - Director of the Company, has a doctorate in Law and is a

member on the Board of Management of Allianz SE.

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3. Mr. Sanjiv Bajaj - Director of the Company, he is BE from Pune University and MBA

from Harvard Business School presently and is an Executive Director Head of Finance

and Control of Bajaj Auto Ltd.

4. Mr. Heinz Dollberg - Director of the Company, has a University Degree of Law and is

Executive Vice President - Asia Pacific Division of Allianz SE.

5. Mr. Ranjit Gupta - Director of the Company, is MIME, AMIPE & FIEE and is Vice

President Insurance of Bajaj Auto Ltd.

6. Mr. Craig Ellis - Director of the Company is a Bachelor of Commerce and Chartered

Accountant. He is presently Director of Allianz Insurance Management Asia Pacific PTE

Ltd.

7. Mr. Suraj Lal Mehta - Director of the Company, has Honours in Economics and is ex-

CEO of Nabil Bank.

8. Mr. Sanjay Asher - Director of the Company, is Chartered Accountant and Graduate in

Law and is a Partner in M/s Crawford Bayley & Co, Mumbai.

9. Mr. S. H. Khan - Director of the Company, has a Masters Degree in Commerce and is

the Former Chairman and Managing Director of IDBI.

10.Mr. Manu Tandon - Director of the Company, is a Chartered Accountant and presently

Managing Director of Beck India Ltd.

Vision

To be the BEST Life Insurance Company in India

To Buy From,

Work For &

Invest In.

Culture @ Bajaj Allianz

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Bajaj Allianz will be:

Be a winning team.

Have a passion for excellence and hate bureaucracy.

Be empowered, have the confidence to take decisions quickly and be accountable.

Be driven to achieve results, to deliver.

Be professional and socially committed.

Be open to ideas, sharing, transparent & trusting

Focus everything we do on our customers.

Make BALIC a great place to work.

Have a sense of humor.

The Bajaj Allianz Way

Invest in people Pay / develop / career planning

Dominate your market be decisive / communicate clear goals

Never sit still change continually / revolutionize

Think service; service; service continuous improvement

Learn and lead be prepared to listen

Tell the facts as they are clear communication

Kill bureaucracy boundary less / ideas not management layers / informality /

speed

Manage the business like a corner shop customer satisfaction / employee

satisfaction / cash flow

BALIC: Salient Features

Decentralized operations to ensure faster and smoother customer service

Customers receive service from any BALIC office, irrespective of their own

location

Renewal premium possible through:

Online

Any of the BALIC offices

Bill-Junction and Bill Desk

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Credit cards or direct debit for Standard Chartered customers

Efficient systems, process & speed of response has ensured lowest number of

complaints from customers to IRDA

ACHIEVEMENTS

Bajaj Allianz life insurance offers technical excellence in all areas of Health

Insurance as well as Risk Management. This partnership successfully combines Bajaj Autos in-

depth understanding of the local market and extensive distribution network with the global

experience and technical expertise of the Allianz group.

Bajaj Allianz has received IAAA rating, from ICRA limited, an associate of

Moodys Investor Services Claims paying Ability. This rating indicates highest claims paying

ability and a fundamentally strong position.

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1. INTRODUCTION OF THE INSURANCE SECTOR

Insurance is about risk and protection. It provides protection against financial

consequences of adverse events. Insurance plays a vital role in most peoples lives as means of

dealing with risks, which every one faces, and a means of savings. Insurance is not necessarily

an investment from which one expects to get one's money back nor is it gambling. A gambler

takes risks, while insurance offers protection against risks that already exist. Insurance is a way

to share risk with others.

Life Insurance is a contract providing for payment of a sum of money to the person

assured or failing him/her, to the person entitled to receive the same, on the happening of certain

event. Insurance has existed for thousands of years. A form of credit insurance was included in

the Code of Hammurabi, a collection of Babylonian laws said to predate the Law of Moses. To

finance their trading expeditions in ancient times, ship owners obtained loans from investors. If a

ship was lost, the owners were not responsible for paying back the loans. Since many ships

returned safely, the interest paid by numerous ship owners covered the risk to the lenders. It was

likewise in a maritime setting that later one of the world's most famous insurance providers,

Lloyd's of London, was born. By 1688, Edward Lloyd was running a coffeehouse where London

merchants and bankers met informally to do business. There financiers who offered insurance

contracts to seafarers wrote their names under the specific amount of risk that they would accept

in exchange for a certain payment, or premium. These insurers came to be known as

underwriters.

Finally, in 1769, Lloyd's became a formal group of underwriters that in time grew into

the foremost market for marine risks. 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 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 risky for

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

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first company to charge same premium for both Indian and non-Indian lives. The Oriental

Assurance Company was established in 1880. The General insurance business in India, on the

other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general

insurance company established in the year 1850 in Calcutta by the British. Till the end of

nineteenth century insurance business was almost entirely in the hands of overseas companies.

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. India is emerging as one of the two of the largest markets

in the world for life insurance products, the other being China. In the case of India, the three key

drivers of growth are a large insurable population, a high savings rate, roughly at about 25 per

cent and a low penetration, at a mere 2.3 per cent. In the 11 months of fiscal year 2004-05, life

insurance companies collected premium worth Rs 172 billion and the market grew by a

whopping 32.4 per cent during the year. Of this, the public sector Life Insurance Corporation

(LIC) had the lion's share of the market with premia totaling Rs 134 billion. Private sector

players recorded a spectacular growth of 129 per cent over the last year, compared to LIC's

growth of 18 per cent. India's GDP growth rate of 6 per cent per annum holds great potential for

the sector. According to one estimate real life premia are expected to grow at a compounded

annual rate of 15 per cent over the next ten years.

2.1 INSURANCE REGULATORY DEVELOPMENT AUTHORITY (IRDA):

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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 in April

2000 has fastidiously stuck to its schedule of framing regulations and registering the private

sector insurance companies. Since being set up as an independent statutory body the IRDA has

put in a framework of globally compatible regulations. The other decision taken simultaneously

to provide the supporting systems to the insurance sector and in particular the life insurance

companies was the launch of the IRDA online service for issue and renewal of licenses to agents.

MILESTONES:

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.

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

government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,

1956, with a capital contribution of Rs. 5 crores from the Government of India.

2.2 FDI IN INSURANCE SECTOR:

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The government of India is planning to increase the equity limit for foreign direct

investment from the current 26 per cent to 49 per cent in the insurance sector. Liberalization of

the FDI policy, including the Budget proposals for raising the sectoral caps in insurance is one of

the main factors for the higher FDI inflows during the current year. In 2003-04 the total FDI

inflows in the country touched $3.4 billion. Indian insurance companies have been pushing for

the FDI limit to be raised. The current paid-up requirement of Rs 1 billion for general insurance

and Rs 2 billion for life insurance have become difficult targets to achieve for the companies.

The companies feel that injection of additional foreign equity would reduce their costs. The

sector was liberalized for private players towards the end of 1999.

Key Players in the Indian Market:

Sl. No. Reg. No. Date of Reg. Name of the Company1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.2 104 15.11.2000 Max New York Life Insurance Co. Ltd.3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Ltd.5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.7 111 30.03.2001 SBI Life Insurance Company Ltd.8 114 02.08.2001 ING Vysya Life Insurance Company Private Ltd.9 116 03.08.2001 Bajaj Allianz Life Insurance Company Ltd.

10 117 06.08.2001 Metlife India Insurance Company Pvt. Ltd11 121 03.01.2002 Sanmar Life Insurance Company Ltd.

12 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.13 127 06.02.2004 Sahara India Insurance Company Ltd.14 128 17.11.2005 Shriram Life Insurance Company Ltd.15 133 04.09.2007 Future Generali India Life Insurance Company Ltd.16 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

Name of Company Percentage of Share in Market

LIC 76ICICI Prudential 5.7Bajaj Allianz 4.3SBI Life 2.8Birla Sun Life 2.2Max NYL 1.9HDFC 1.8Aviva 1.4Tata AIG 1.3ING Vysya 0.9

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Reliance 0.8Met Life 0.5Om Kotak 0.4Bharati AXA 0.3

As above table shows the position of insurance companies in India as follows briefly

discussed about the insurance players.

While the public sectorLIC dominates the Indian life insurance market with nearly 76

per cent of the market share. It has 248 branches, 115,000 employees and over 1 million agents.

It has also been improving internal processes and systems, upgrading skills of its agency force

and managers and developing innovative products. LIC sold 1.69 Crore policies during the year

compared to 18 lakhs policies.

Bajaj Allianz has been focusing on second tier towns and cities which are yet to witness

the entry of other life insurance players apart from LIC. It is using first mover advantage by

opening an office in the most prominent location in a non-metro town. It hires local people who

are trained. Its mantra is to develop only the indispensable infrastructure so that it can match the

pricing of LIC. Apart from that it claims that it is the only private player to provide policy

servicing at the branch level. Standard Chartered is currently its biggest partner followed by

Syndicate Bank and Centurion Bank. The biggest challenge that the company faces is the weakinfrastructure particularly transport and communications in the smaller cities. It is also facing

a challenge in terms of banking channels, particularly for customers who bank with cooperative

banks, where delays in clearing cheques are inevitable. Tied agencies comprise the biggest

channel (68%) of new business acquisitions for Bajaj Allianz. Banc assurance (27%) is the other

significant channel of growth for the company.

ICICI Prudential is the leader among the private players with a market share of 6.69 per

cent after its premium collection totaled Rs 11.54 billion. Bajaj Allianz with sales of Rs 4.9

billion had a market share of 2.86 per cent. Birla Sun Life with sales of Rs 4.8 billion had a

market share of 2.81 per cent and SBI Life with premium collection of Rs 3.9 billion, a market

share of 2.29 per cent. With its combination of aggressive marketing through an agency force

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and the use of the banking channel, ICICI has emerged as a key player. Initially, the company

drove new business by opening branches in new locations. The focus has now shifted to

penetrating these locations for increasing market share. The company is also trying to get higher

penetration in the High Net Worth segment. The company has seven banc assurance partners and

this is the largest contributor to non-agency business. It also has 15 key non-bank partners and

800 financial sales consultants.

HDFC Standard Life has established its branches in 110 locations and is targeting non-

metro towns. It is hoping to leverage its pedigree/parentage to gain more customer acceptance.

As a result, it is focusing on quality not just volume growth. It has developed some innovative

products like the Loan Cover Term Assurance Plan which provides a lump sum in case of death

of the assured life during the term plan. Aimed at the growing segment of home loan takers, the

plan helps the family to repay the outstanding loan. Given that HDFC has a huge database of

home loan customers; it can easily tap into this resource to acquire new business.

Birla Sun Life was the first to offer ULIPs in the Indian insurance market. And this has been the

primary driver of its growth over the last one year. The company has been investing in customer

education and feels that as a result customers don't view ULIPs as mutual funds but long term

insurance. As of 2004, the company had 33 branches, 10,274 agents, 79 corporate relationships

and 10 banc assurance partners.

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2.3 Types of life insurance

Life insurance may be divided into two basic classes temporary and permanent or following

subclasses - term, universal, whole life, variable, variable universal and endowment life

insurance.

a) Temporary (Term)

Term life insurance (term assurance in British English) provides for life insurance coverage for a

specified term of years for a specified premium. The policy does not accumulate cash value.

Term is generally considered "pure" insurance, where the premium buys protection in the event

of death and nothing else. (See Theory of Decreasing Responsibility and buy term and invest the

difference.) Term insurance premiums are typically low because both the insurer and the policy

owner agree that the death of the insured is unlikely during the term of coverage. The three keyfactors to be considered in term insurance are: face amount (protection or death benefit),

premium to be paid (cost to the insured), and length of coverage (term).

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Various (U.S.) insurance companies sell term insurance with many different

combinations of these three parameters. The face amount can remain constant or decline. The

term can be for one or more years. The premium can remain level or increase. A common type of

term is called annual renewable term. It is a one year policy but the insurance company

guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the

insured and with a premium set for the insured's age at that time. Another common type of term

insurance is mortgage insurance, which is usually a level premium, declining face value policy.

The face amount is intended to equal the amount of the mortgage on the policy owners

residence so the mortgage will be paid if the insured dies.

A policy holder insures his life for a specified term. If he dies before that specified term

is up, his estate or named beneficiary(ies) receive(s) a payout. If he does not die before the term

is up, he receives nothing. In the past these policies would almost always exclude suicide.

However, after a number of court judgments against the industry, payouts do occur on death by

suicide (presumably except for in the unlikely case that it can be shown that the suicide was just

to benefit from the policy). Generally, if an insured person commits suicide within the first two

policy years, the insurer will return the premiums paid. However, a death benefit will usually be

paid if the suicide occurs after the two year period.

b) Permanent

Permanent life insurance is life insurance that remains in force (in-line) until the policy matures

(pays out), unless the owner fails to pay the premium when due (the policy expires). The policy

cannot be canceled by the insurer for any reason except fraud in the application, and that

cancellation must occur within a period of time defined by law (usually two years). Permanent

insurance builds a cash value that reduces the amount at risk to the insurance company and thus

the insurance expense over time. This means that a policy with a million dollars face value can

be relatively inexpensive to a 70 year old because the actual amount of insurance purchased is

much less than one million dollars. The owner can access the money in the cash value by

withdrawing money, borrowing the cash value, or surrendering the policy and receiving the

surrender value. The three basic types of permanent insurance are whole life, universal life, and

endowment.

c) Whole life coverage

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Whole life insurance provides for a level premium, and a cash value table included in the policy

guaranteed by the company. The primary advantages of whole life are guaranteed death benefits,

guaranteed cash values, fixed and known annual premiums, and mortality and expense charges

will not reduce the cash value shown in the policy. The primary disadvantages of whole life are

premium inflexibility, and the internal rate of return in the policy may not be competitive with

other savings alternatives. Riders are available that can allow one to increase the death benefit by

paying additional premium. The death benefit can also be increased through the use of policy

dividends. Dividends cannot be guaranteed and may be higher or lower than historical rates over

time. Premiums are much higher than term insurance in the short-term, but cumulative premiums

are roughly equal if policies are kept in force until average life expectancy.

Cash value can be accessed at any time through policy "loans". Since these loans

decrease the death benefit if not paid back, payback is optional. Cash values are not paid to the

beneficiary upon the death of the insured; the beneficiary receives the death benefit only. If the

dividend option: Paid up additions is elected, dividend cash values will purchase additional death

benefit which will increase the death benefit of the policy to the named beneficiary.

d) Universal life coverage

Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return. A universal life policy includes a cash account. Premiums

increase the cash account. Interest is paid within the policy (credited) on the account at a rate

specified by the company. This rate has a guaranteed minimum but usually is higher than that

minimum. Mortality charges and administrative costs are charged against (reduce) the cash

account. The surrender value of the policy is the amount remaining in the cash account less

applicable surrender charges, if any. With all life insurance, there are basically two functions that

make it work. There's a mortality function and a cash function. The mortality function would

be the classical notion of pooling risk where the premiums paid by everybody else would cover

the death benefit for the one or two who will die for a given period of time. The cash function

inherent in all life insurance says that if a person is to reach age 95 to 100 (the age varies

depending on state and company), then the policy matures and endows the face value of the

policy. Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of them live to

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age 95, then the mortality function alone will not be able to cover the cash function. So in order

to cover the cash function, a minimum rate of investment return on the premiums will be

required in the event that a policy matures. Universal life policies guarantee, to some extent, the

death proceeds, but not the cash function - thus the flexible premiums and interest returns. If

interest rates are high, then the dividends help reduce premiums. If interest rates are low, then the

customer would have to pay additional premiums in order to keep the policy in force. When

interest rates are above the minimum required, then the customer has the flexibility to pay less as

investment returns cover the remainder to keep the policy in force.

The universal life policy addresses the perceived disadvantages of whole life. Premiums are

flexible. The internal rate of return is usually higher because it moves with the financial markets.

Mortality costs and administrative charges are known. And cash value may be considered more

easily attainable because the owner can discontinue premiums if the cash value allows it. And

universal life has a more flexible death benefit because the owner can select one of two death

benefit options, Option A and Option B.

Option A pays the face amount at death as it's designed to have the cash value equal the death

benefit at age 95. Option B pays the face amount plus the cash value, as it's designed to increase

the net death benefit as cash values accumulate. Option B does carry with it a caveat. This caveat

is that in order for the policy to keep its tax favored life insurance status, it must stay within a

corridor specified by state and federal laws that prevent abuses such as attaching a million

dollars in cash value to a two dollar insurance policy. The interesting part about this corridor is

that for those people who can make it to age 95-100, this corridor requirement goes away and

your cash value can equal exactly the face amount of insurance. If this corridor is ever violated,

then the universal life policy will be treated as, and in effect turn into, a Modified Endowment

Contract (or more commonly referred to as a MEC).

But universal life has its own disadvantages which stem primarily from this flexibility. The

policy lacks the fundamental guarantee that the policy will be in force unless sufficient premiums

have been paid and cash values are not guaranteed.

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Universal life policies are sometimes erroneously referred to as self-sustaining policies. In the

1980s, when interest rates were high, the cash value accumulated at a more accelerated rate, and

universal life coverage was often sold by agents as a policy that could be self-paying. Many

policies did sustain themselves for a prolonged period, but the combination of lower interest

rates and an increasing cost of insurance as the insured ages meant that for many policies, the

cash option was diminished or depleted.

Variable universal life Insurance (VUL) is not the same as universal life, even though they both

have cash values attached to them. These differences are in how the cash accounts are managed;

thus having a great effect on how they are treated for taxation. The cash account within a VUL is

held in the insurer's "separate account" (generally in mutual funds, managed by a fund manager).

e) Limited-pay

Another type of permanent insurance is Limited-pay life insurance, in which all the premiums

are paid over a specified period after which no additional premiums are due to keep the policy in

force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65.

f) Endowments

Endowments are policies in which the cash value built up inside the policy, equals the death

benefit (face amount) at a certain age. The age this commences is known as the endowment age.

Endowments are considerably more expensive (in terms of annual premiums) than either whole

life or universal life because the premium paying period is shortened and the endowment date is

earlier. In the United States, the Technical Corrections Act of 1988 tightened the rules on tax

shelters (creating modified endowments). These follow tax rules as annuities and IRAs do.

Endowment Insurance is paid out whether the insured lives or dies, after a specific period (e.g.

15 years) or a specific age (e.g. 65).

g) Accidental death

Accidental death is a limited life insurance that is designed to cover the insured when they pass

away due to an accident. Accidents include anything from an injury, but do not typically cover

any deaths resulting from health problems or suicide. Because they only cover accidents, these

policies are much less expensive than other life insurances.

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Single premium whole life is a policy with only one premium which is payable at the time the

policy is issued.

Modified whole life is a whole life policy that charges smaller premiums for a specified period

of time after which the premiums increase for the remainder of the policy.

Group life insurance is term insurance covering a group of people, usually employees of a

company or members of a union or association. Individual proof of insurability is not normally a

consideration in the underwriting. Rather, the underwriter considers the size and turnover of the

group, and the financial strength of the group. Contract provisions will attempt to exclude the

possibility of adverse selection. Group life insurance often has a provision that a member exiting

the group has the right to buy individual insurance coverage.

Senior and preneed products

Insurance companies have in recent years developed products to offer to niche markets, most

notably targeting the senior market to address needs of an aging population. Many companies

offer policies tailored to the needs of senior applicants. These are often low to moderate face

value whole life insurance policies, to allow a senior citizen purchasing insurance at an older

issue age an opportunity to buy affordable insurance. This may also be marketed as final

expense insurance, and an agent or company may suggest (but not require) that the policy

proceeds could be used for end-of-life expenses.

Preneed (or prepaid) insurance policies are whole life policies that, although available at any

age, are usually offered to older applicants as well. This type of insurance is designed

specifically to cover funeral expenses when the insured person dies. In many cases, the applicant

signs a prefunded funeral arrangement with a funeral home at the time the policy is applied for.

The death proceeds are then guaranteed to be directed first to the funeral services provider for

payment of services rendered. Most contracts dictate that any excess proceeds will go either to

the insured's estate or a designated beneficiary.

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These products are sometimes assigned into a trust at the time of issue, or shortly after issue. The

policies are irrevocably assigned to the trust, and the trust becomes the owner. Since a whole life

policy has a cash value component, and a loan provision, it may be considered an asset;

assigning the policy to a trust means that it can no longer be considered an asset for that

individual. This can impact an individual's ability to qualify for Medicare or Medicaid.

Investment policies

With-profits policies

Some policies allow the policyholder to participate in the profits of the insurance company these

are with-profits policies. Other policies have no rights to participate in the profits of the

company, these are non-profitpolicies. With-profits policies are used as a form of collective

investment to achieve capital growth. Other policies offer a guaranteed return not dependent on

the company's underlying investment performance; these are often referred to as without-profit

policies which may be construed as a misnomer.

Insurance/Investment Bonds

Pensions

Pensions are a form of life assurance. However, whilst basic life assurance, permanent health

insurance and non-pensions annuity business includes an amount of mortality or morbidity risk

for the insurer, for pensions there is a longevity risk. A pension fund will be built up throughout

a person's working life. When the person retires, the pension will become in payment, and at

some stage the pensioner will buy an annuity contract, which will guarantee a certain pay-out

each month until death.

Annuities

An annuity is a contract with an insurance company whereby the purchaser pays an initial

premium or premiums into a tax-deferred account, which pays out a sum at pre-determined

intervals. There are two periods: the accumulation (when payments are paid into the account)

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Joint Life availability - the option to cover the co-applicant of the

loan under this plan.

2) Bajaj Allianz Term Care

Term Assurance plan with return of premium. An economic way

of providing life cover, this plan also ensures the return of all premiums at

the time of maturity.

A term insurance plan with a difference.

Dual benefit - Life cover + Return of premiums paid on

survival at the end of the term.

Single premium payment option available.

The only pure term plan in the market to provide Hospital

CashBenefit.

Available as: Economy Protect Health Total

1) Bajaj Allianz New Risk Care

Term Assurance plan with Regular/Single Premium payment options

to secure your life.

Life insurance cover at the lowest possible cost.

Additional Rider Benefits with regular premium plan.

Accidental Death Benefit and Accidental Permanent Total/Partial

Disability Benefit.

Critical Illness Benefit and Hospital Cash Benefit.

A. Traditional

Saving Plans, which offer bonuses, are excellent long term saving instruments

with complete safety. Our products offer additional benefits which include 4 times lifecover at little extra costs, limited premium payment terms and compounded reversionary

bonuses making it a very good long term investment.

a. Endowment

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Saving plan, which offer bonuses, are excellent long term plan

with complete safety. Our products offer additional benefits which include

4 times life cover at a little extra cost, limited premium payment terms and

compounded reversionary bonuses making it a very good long term

investment.

1) Invest Gain

InvestGain is a specially designed plan that offers a unique combination of

benefits that help you develop a sound financial portfolio for your family.

4 Times Life Cover at a little extra cost. Limited premium payment option

available.

Additional Benefits:

Accidental Death Benefit and Disability Benefit.


Family Income Benefit: In case of death or accidental total

permanent disability of insured, all future premiums are waived

and 1% of the sum assured is paid monthly.

1) Save care economy SP

A One-time payment Investment plan that provides for savings with

high risk cover for 10 years and also participates in the profits of the

company. It offers you high risk cover with easy liquidity and high

returns.

A single premium endowment plan that participates in the profits.

10 year Investment plan.

Benefits payable on maturity.

Loans available.

1) Life term care

A whole life plan, which provides survival benefits at the age of 80,

thereby making sure you are financially secure at the time when you need

it the most.


Accidental Death Cover and Disability Cover.

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Critical Illness Cover and Hospital Cash Cover.

1) Super Saver

Bajaj Allianz Super Saver is a regular premium endowment plan,

which helps you save regular amounts for a safer tomorrow. It also

provides you with extra benefits of Guaranteed Additions to your sum

assured, at the end of each policy year.

a. Money Back

Money back plans are Traditional Insurance plans that provide the

investor with returns at regular stages of life.

1) Cash Gain

A money back plan which guarantees 125% payout + bonuses.

Quadruple life cover. 5 easy payouts which give upto 125% + bonuses.




Family Income Benefit: In case of death or accidental total

permanent disability of insured, all future premiums are waived

and 1% of the sum assured is paid monthly

A. Pension

Bajaj Allianz Life Insurance offer Retirement Plans which will make sure that we

are there to support you in every stage of your life and your savings today become your

wealth and support for your future years to come.

a) Annuity

Immediate annuity Plans from Bajaj Allianz Life Insurance.

1) Pension Guarantee

A Plan that ensures regular Income after Retirement.. for Life.

a) Retirement

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Retirement is the beginning of the twilight of the journey of life when you have

done all that you could to arrive at this point of time, and now left with time to reflect

back on what was, and also what is to come. Our retirement plans help you to retire

with laughter lines not worry lines.

1) Future Income Generator

Bajaj Allianz Life Insurance, help you maintain your lifestyle even after you

retire. Your saving today becomes your wealth and support to help secure your

future.

Retirement and Pension plans suit various needs

An alternative to super-annuations and provident fund.

Employers do not promise a lifetime pension and everyone does not have

a government job. Our flexible retirement plans, help you maintain your

lifestyle and create a monthly income that will last you a lifetime.

Smart saving: When we ask you to save a regular amount, we intend to

secure your future. We at Bajaj Allianz Life Insurance will make sure that

you retire you have all the means to enjoy it.

Financial independence from work, so you dont have to worry about

income after you retire.

Specialised retirement solutions for housewives, so that, they become

financially independent.

Wealth creation, smart savings and peace of mind along with a corpus,

which secures your life, post retirement is what our Future Income

Generator - Retirement plans are all about.

Future Income Generator - Retirement plans offer flexibility like never

before

An option to avail upto 1/3rd of the Fund Value as tax-free lump sum.

Open market option to purchase an immediate annuity from Bajaj Allianz

or any other life insurer as recognised by IRDA.

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1) Swarna Vishranti

A plan that enables you to retire with laughter lines not worry lines

Option to take a tax-free lump sum upto 33% of Sum Assured + Accrued

Bonuses.

Open Market option: Purchase immediate annuity from Bajaj Allianz Life

Insurance or any other Life Insurance Company.




Family Income Benefit: In case of death or accidental total permanent

disability of insured, all future premiums are waived and 1% of the sum

assured is paid monthly.

Term Cover: Additional life insurance protection at a nominal cost.

1) New Unit Gain Easy Pension Plus RP

A Unique unit linked pension plan without life cover

Choice of 2 investment portfolio strategies to manage your investments

better. Option to take a tax-free lump sum up to 33% of Sum Assured.


Insurance or any other life insurer.

Choice of 7 investment funds.

3 free switches allowed every year.

1) New Unit Gain Easy pension Plus SP

A Unique unit linked pension plan without life cover

Available in Single Premium and regular Premium payment mode.

Option to take a tax-free lump sum up to 33% of Sum Assured.

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Insurance or any other life insurer.

Choice of 6 investment funds.


A. Unit Linked

Market linked insurance plans invest the premium in to the equity, debt and cash

markets by the way of allocating units, which like any other mutual fund have a NAV

and the customer is free to switch between one fund class to another depending on the

risk factor he wishes to be in. ULIPs offer a better return than the traditional endowment

plans and offer a great deal of flexibility along with great returns making them the finest

product offering. We at Bajaj Allianz Life Insurance have developed a number of ULIP

products which range from single premium to a regular premium option along with

investment funds ranging from index funds to mid-cap funds and debt market linked

funds.

a) Regular Premium

Market linked insurance plans invest the premium in to the equity, debt and cash

markets by the way of allocating units, which like any other mutual fund have a NAV

and the customer is free to switch between one fund class to another depending of the

risk factor he wishes to be in. ULIPs offer a better returns than the traditional

endowment plans and offer a great deal of flexibility along with great returns making

them the finest product offering. We at Bajaj Allianz Life Insurance have developed a

number of ULIP products which range from single premium to a regular premiums

options along with investment funds ranging from index funds to mid-cap funds and

debt market linked funds.

1) New Unit Gain

It is an investment plan that provides the best returns possible for every rupee you

invest. The plan is structured to provide a secure life cover and extraordinary

benefits, aligned with our commitment to give you 'The ultimate investment plan'.

Key highlights of Bajaj Allianz New UnitGain

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Your investment, apart from normal allocation, receives Loyalty Units

equivalent to 51% of first year's Annualized Premium over a period of 10

years.

Choice of 2 investment portfolio strategies to manage your investments

better. Introducing a special Wheel of Life portfolio strategy, which will

help you to balance and safeguard your investment.

Your policy continues to participate in the investment performance of the

fund(s), even if you are not able to pay 3 full years' premiums.

Maximum flexibility:

i) Option to increase the premium.

ii) Partial withdrawals anytime after 3 years from the commencement of

the policy, provided 3 full years, premiums are paid.

iii) Three free switches every year.

iv) Option to pay unlimited top up premiums anytime during the tenure of

your policy, to further enhance your savings.

Three simple terms to choose from: 15, 20 and 25 yrs.

A host of optional additional rider benefits to provide you with additional

protection.

Guaranteed Life Cover, with flexibility to choose an insurance cover to

suit your changing needs

1) Unit Gain Plus Gold

A Unique plan with the combination of protection and prospects of earning

attractive returns with investments in various mix of securities that makes a

perfect plan to last you a lifetime of prosperity and happiness. High Allocation

upto 85%. Guaranteed Life Cover with a choice of 7 Investment Funds.

Additional Benefit Riders:

UL Accidental Death Benefit.

UL Critical Illness benefit.

UL Hospital Cash Benefit.

UL Family Income Benefit.

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UL Waiver of Premium benefit.

a) Single Premium

Unit Linked Single Premium Plans require the premium to be paid only once.

1) New Unit Gain Premier SP

New UnitGain Premier SP is an unique insurance cum investment plan that

provides your investment a zing from the start, by allocating 105% of the single

premium paid from day one, thereby ensuring that you get MORE.

105% allocation.

Guaranteed life cover.

Flexible withdrawal option u/s 10 (10) D.

1) New Unit gain Plus SP

The Only Single premium plan that gives you Maximum Allocation

98% Allocation.

Guaranteed Life Cover.

Choice of 5 Investment funds.


Partial and Full withdraws after 3 years. Now minimum premium as low as Rs10,000 only.

A. Women Insurance

Todays lady is an inspiration to her family. She takes important decisions in every

household and at work. To cater to women's special needs we offer innovative women

specific plans which provide investment benefits, savings, retirement solutions and

medical insurance. Our special plans help mothers plan for their children's education,

save for the future and take care of all medical emergencies in the family.

Regular investment and savings plan, offer:

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Investments along with critical illness benefits which provide good returns, long

term saving and protection incase of a medical emergency

Investment plans with accidental coverage

Children's education planning

Specialized retirement income plans for homemakers to provide a secure and

financial future.

1) Education Plan for the confident Girl Child

Is your little girl destined for greatness? Will she grow up to be successful? Your

princess can reach for the stars, but before she dreams you must do. Bajaj Allianz

offers Child Education plans, which help a parent secure education for their child.

A specialized plan known as Bajaj Allianz Child Gain offers a wide array of

solutions that allows you to plan for your daughters future, including schooling,

higher education and marriage and also takes care of any uncertainties that may

happen along the way.

2) Plans for Confident Young Lady

As a young, confident woman, you are either studying to make your career or are

earning your own living and are financially independent. We at Bajaj Allianz

offer many products, which help check, plan and keep all your finances in order,

as well as take care of your other needs. Bajaj Allianz Unit Gain Plus Gold and

Bajaj Allianz Young Care are two plans that help you enter the Capital Markets

with no fear. While our special Motor Insurance Package Policy with unique

women-specific services, makes sure that you can drive around, worry-free.

3) Plans for the Confident Home Maker

As a home maker of today, you are also the decision maker, unlike before. You

are equally aware of the outside world and are accustomed to being consulted by

your husband on decisions pertaining to finances. You also go out of your way to

take care of your family with your warmth and support in case of any illness and

ensure that your family members are treated with the best medical care. Saluting

the confident home maker of today, Bajaj Allianz offers two plans - Bajaj Allianz

Invest Gain and Bajaj Allianz Family CareFirst. Plans with a rider especially

developed for todays woman to give her that extra bit of confidence.

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4) Plans for the confident Future Grand Mother

A majority of women consider financial security to be one of their top priorities,

yet most women feel they do not have the knowledge to address financial matters.

It is necessary to be financially independent, as it gives you a sense of worth and

purpose. Bajaj Allianz Future Income Generator is one plan which suits all.

Irrespective of age this is one plan which would ensure that you remain

financially independent in your golden years of life.

A. Health

At Bajaj Allianz Life Insurance we offer unique hospitalisation-cum-insurance

plan that takes care of your hospitalization bills and also provides crucial financial

support to your dependents in case of your unfortunate death.

Our health insurance plans offer a sound protection to safe guard your family

from any medical emergencies and will make sure that financial problems are

least of your worries in trying to get yourself treated.

We offer cash less Mediclaim facility across 2000 hospitals in over 300 towns and

provide best treatment in the finest hospitals with our health insurance products.

1) Care First

A medical insurance plan that allows you to renew the policy after every 3

years and keeps you covered till the age of 65 years. The premium rate is level

and guaranteed for the length of each policy term of 3 years with extra

benefits like day care treatment and pre and post hospitalization treatment.

Care First, the first comprehensive Health Insurance cover offered in

conjunction with Life Insurance benefit.

Generous hospital cover upto 7Lacs.

Cashless Treatment available across over 2000 leading hospitals in

over 200 towns across India.

Specific Day Care treatments requiring less than 24 hrs.

Hospitalization is also covered under this plan.

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1) Health Care

A 6- in-1 health insurance plan that offers:

Life Cover

Hospital Cash benefit

Surgical benefit

Post Hospitalisation Benefit

Critical Illness Cover

Accidental Permanent Total / Partial Disability (APT/PD) along with a

cash less card facility makes it an excellent product as the benefits

under this plan can be taken in addition to any other health insurance

plan.

1) Family Care First

Bajaj Allianz Family CareFirst presents an innovative yet practical health care

plan for everyone in Your family including children and parents. This unique

hospitalisation plan gives you health cover for your entire family. So no

separate accounts, repetitive paperwork or payment adjustments for each

member. Secure Your entire family in one shot.

A. Children PlanEver wondered why you need an insurance policy for your child?

As a parent, you always dream the best for your child including marriage, higher

education, or that hand holding for a start in life. Whether you are there to see

your child grow up and settled or not, your child feels your love in the financial

support arranged by you through our wide range of Children's insurance policies

taking him from one milestone to another.

Saving early and saving regularly for your child helps combat inflation and

ensures higher yields. If you take an insurance policy for your child you can take

advantage of lower premium rates and ensure that your children remain covered

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throughout adult hood, at a much lower rate. This also instills a saving-habit in

your children at a young age developing them as and when the policy vests in

them.

1) Child Gain

Common features in the 4 Options of Bajaj Allianz ChildGain Plan

Limited Premium Payment Term which means that the premiums are

payable till your child attains age 18 years.

Your contributions grow by the way of compounded annual bonuses,

which will be paid to you with the first guaranteed payout (policy

anniversary following age 18 of your child), for in-force policies. In

addition to the annual bonuses, a terminal bonus may also be paid.

You are eligible for Tax Benefits under Section 80C and Section

10(10)D of the Income Tax Act.

Assuring Your Childs Future: In an uncertain world, the prime

interest of your child cannot be jeopardized in any way. Which is why

we have built in some added benefits in all our plans to protect the

interests of your childs future, by counter insuring you - the

policyholder

2.5 INSURANCE CONSULTANCY AS A CAREER WITH BAJAJ ALLIANZ

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A yen for meeting people.

Commutation abilities

Time

Discipline

Independence

Energy

Enthusiasm

Assertiveness

Commitment

2.54 EARNIGS AS A INSURANCE CONSULTANT WITH BAJAJ ALLIANZ

There is no limit to your income . You can earn

Commissions.

Bonus/overriding commission.

Renewal Commissions

Recognition/Social prestige

Awards/Prizes/Travel.

If you do Just 4 polices per month with an average annual premium of Rs. 7500 per policy,

1. You will earn as long as the policy runs

2. You will earn upto Rs. 12000 per month with this small effort.

A great IC does.......

Only 12 polices per month

Average premium of Rs. 10,000 per policy

Average policy term 20 years which means that he earns for 20 years with the efforts put

in today.

Earnings @4 policies per

month

@8 policies per

month

@10 policies per

month

@12 policies per

month

Year 1 1,44,000 2,88,000 3,84,000 5,76,000Year 2 1,71,000 3,42,000 4,56,000 6,84,000Year 3 1,98,000 3,96,000 5,28,000 7,92,000

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Year 4 2,16,000 4,32,000 5,76,000 8,64,000Year 5 2,34,000 4,68,000 6,24,000 9,36,000Year 6 2,52,000 5,04,000 6,72,000 10,08,000Year 7 2,70,000 5,40,000 7,20,000 10,80,000Year 8 2,88,000 5,76,000 7,68,000 11,52,000Year 9 3,06,000 6,12,000 8,16,000 12,24,000Year 10 3,24,000 6,48,000 8,64,000 12,96,000

To help you in doing this entire job Bajaj Allianz has an exclusive "Training and

Development" program for IC. The training programs will ensure that you maintain the cutting

edge above competition. The training schedules are such that it will help you to grasp the

relevant areas with ease.

The Training program include:-

Education and Training in Life Insurance

Training in selling skills

Training in communication skills

Training in Product skills

Training in interpersonal skills

Training in handling Customer queries

Training in data management

Help and guidance in meeting customer needs

Opportunities in Insurance market: -

80% of the potential market

Out of 35 crore middle class population of India only 7 Crore polices have been should so

far.

Insurance growth fore coasted at 25-30% Per annum for the next 10 years-

Only 22% of the insurable population in soured today.

So if a person want to be associated with a leading global insurance company, earn much,

much more than he is earning now and continue earning tomorrow with today's efforts, he can

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pursue a career that allows for continuous trying and development, and scope for personal and

professional growth.

He can gain as an IC in Bajaj Allianz and become his own boss, run his own business

without any initial Outlay, with an existing and satisfying Career.

3.1 OBJECTIVES OF THE STUDY

Primary Objective

1. To find out the market potential for the ULIP offered by Bajaj Allianz at Raipur city.

2. To find out the customer awareness towards Bajaj Allianz Life Insurance Co. Ltd.

Secondary Objective

1. To find out the customers perception towards ULIP policies of Bajaj Allianz Life

Insurance Co. Ltd.

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2. To study the customer needs and expectations from the unit linked insurance plans and

products offered by the company.

3. To study the different types of product offered by BALIC.

4.1 RESEARCH METHODOLOGY:

According to Clifford woody Research comprises of designing and redesigning

problems, forecasting hypothesis, collecting, organizing, and evaluation of data, making

deductions and research conclusion at last carefully testing conclusion to determine whether they

fit the formulating hypothesis.

4.11 RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and analysis of data in a

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

DESCRIPTIVE RESEARCH DESIGN:

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The research design adopted in this study is DESCRIPTIVE RESEARCH DESIGN. A

descriptive research design is the one that description of the state ofaffairs as it exists at present.

It includes survey and fact finding enquiries of different kinds. The researcher has no control

over the variables. The researcher usedthis research design to find out the respondents attitude

and opinion about ULIPpolicies offered by Bajaj Allianz.

4.12 SAMPLING DESIGN:

A sample design is a definite plan for obtaining a sample from a given population. It refers to the

techniques or procedures the researcher would adopt in selecting items for the sample.

CONVENIENCE SAMPLING:

The researcher adopted convenience sampling. It is the non probability sampling is that

sampling procedures does not any basis for estimating the probability that each item in the

population has of included in the sample. The researcher selects the people according to their

convenient.

SAMPLE SIZE:

A sample of 150 people was taken for the survey. The required data collected through

questionnaire.

SAMPLING AREA:

The sampling unit may be a Geographical one such as state, District, Village etc., The

geographical sampling unit under study has covered the area of Raipur city.

4.13 DATA COLLECTION:

The information required for our project was collect mainly from the primary sources and even

from secondary sources. The primary source consists of the data analyzed from questionnaire

and interaction with the user at that time only. And internet is used as secondary source.

DATA COLLECTION METHOD:

Data is collected through questionnaire schedule method. It means the investigators are trained

to collect the information required for an enquiry through schedule. The trained investigators

meet the people concerned and fill up the schedules with the information supplied by them.

TYPES OF DATA COLLECTION:

Here in this project the methods used by me for collecting information regarding the plans are

1. Primary Data

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2. Secondary Data

PRIMARY DATA:

It is the direct respondents to customers of collecting information. Primary data are generated in

an investigation according to the needs of the problem in hand. Here I collected the information

from distributing questionnaire to the people.

SECONDARY DATA:

This is the method, which is collected through some other external sources. Secondary data can

be defined as the data collected by some one else for purposes other than solving the problem. In

this method I have collected the information from Internet (logo and some information about the

company and about the plans).

4.14 TOOLS AND TECHNIQUES USED:

The researcher used simple percentage and chi-square used for the analysis and column chart

used for the graphical representation.

Simple percentage method:

(No. of. Respondents / Sample Size) X 100

Chi- square:

Chi-square test is a non-parameter test. It is used most frequently marketing researches to test

hypothesis. This test is employed for testing hypothesis. When distribution of population is not

known and when nominal data is analyzed.

(2) = [(O E) 2/E]

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5.1 GRAPHICAL INTERPRETATION

Table:1 showing the age detailsAge No. of Respondents Percentage (%)

Below 18 9 6

18-30 70 4731-40 39 26

41-60 21 14

61 & Above 11 7Total 150 100

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INFERENCE:

From the above table, it is inferred that 46% of the respondents are between 18 to 30 years of

age, 26% of the respondents are between 31 to 40 years of age, 14% of the respondents are

between 41 to 60 years of age, 8% of the respondents are coming under the age of 60 & above,

6% of the respondents are coming under the age of below 18 years.

Table:2 Showing the gender details

Gender No. of Respondents Percentage

Male 112 75

Female 38 25

Total 150 100

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INFERENCE:

From the above table, it is inferred that 44% of the respondents are employees, 30% of the

respondents are doing business, 14% of the respondents are house maker, 9% of the respondents

are student and remaining 3% of the respondents are coming under other category.

Table: 4 Showing the income level

Income (Per Month) No. of Respondents Percentage (%)

Below 5,000 35 235,001-10,000 50 3310,001-15,000 39 2615,001-20,000 10 720,001 & Above 16 11Total 150 100

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INFERENCE:

From the above table, it is inferred that 34% of the respondents are in the

income level of Rs.5001 to 10000, 26% of the respondents are in the income

level of Rs.10001 to 15000, 23% of the respondents are in the income level

of Rs.5000 & below, 10% of the respondents are in the income level of

Rs.20000 & above and remaining 7% of the respondents are in the income

level of Rs.15001 to 20000.

Table: 5 Showing the educational detail

Education Qualification No. of Respondents Percentage (%)

HSC 38 25

UG 78 52PG 31 21Other 3 2Total 150 100

INFERENCE:

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From the above table, it is inferred that 52% of the respondents are UG

holders, 25% respondents are in the level of HSC, 21% of the respondents

are PG holders and remaining 2% of the respondents are comes under other

category.

Table: 6 Showing the awareness about Bajaj Allianz Life Insurance

Company

Awareness Level No. of Respondents Percentage (%)

Very Well Aware 12 8

Well Aware 61 40Aware 52 35Not Aware 25 17Total 150 100

INFERENCE:

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From the above table, it is inferred that 41% of the respondents are well

aware of the Bajaj Allianz Life Insurance Company, 35% of the respondents

are aware of the Bajaj Allianz Life Insurance Company, 16% of the

respondents are not aware of the Bajaj Allianz Life Insurance Company,

remaining 8% of the respondents are very well aware of the Bajaj Allianz Life

Insurance Company.

Table: 7 Showing the sources which educate about Bajaj Allianz first

Source of Awareness No. of

Respondents

Percentage (%)

Insurance Consultant 47 38

Advt. in T.V. 43 35Advt. in Newspaper/Magazine 19 15Others 15 12Total 150 100

INFERENCE:

From the above table, it is inferred that 38% of the respondents are

educated first through the agents, 35% of the respondents are educated first

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through the television advertisement, 15% of the respondents are educated

first through the paper and magazine advertisements, and remaining 12% of

the respondents are educated first through the other sources.

Table: 8 Showing the awareness level of Bajaj Allianz ULIP policies

Awareness No. of Respondents Percentage (%)

Yes 106 71No 44 29Total 150 100

INFERENCE:

From the above table, it is inferred that 71% of the respondents are aware of

the Bajaj Allianz ULIP policies and 29% of the respondents are not aware ofthe Bajaj Allianz ULIP policies.

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Table: 9 Showing the level of interest to take the ULIP in future

Level of Awareness No. of Respondent Percentage (%)

Yes 35 23

No 21 14

No Idea 94 63

Total 150 100

INFERENCE:

From the above table, it is inferred that 63% of the respondents are havingno idea to deal with ULIP policies in future, 23% of the respondents are

interested to take up the ULIP in future and remaining 14% of the

respondents are not interested to take up the ULIP policies in future.

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Table: 10 Showing the details of readiness to deal with Bajaj Allianz

ULIP

No. of Policies No. of Respondent Percentage (%)

1 Policy 54 51

2 Policies 37 35

3 & More Policies 15 14

Total 106 100

INFERENCE:

From the above table, it is inferred that 52% of the respondents are ready to

take only one policy at present, 35% of the respondents are ready to take

two policies at present and remaining 14% of the respondents are ready to

deal with three & above policies in Bajaj Allianz at present.

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Table: 11 Showing the reasons for taking life insurance policies

Reasons No. of Respondents Percentage (%)

Returns 25 17Risk Coverage 70 47Savings 47 31Other 8 5Total 150 100

INFERENCE:

From the above table, it is inferred that 47% of the respondents are taken

the policy for the purpose of risk coverage, 31% of the respondents are

taken the policy for saving purpose, 17% of the respondents are taken for

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the purpose of good returns and remaining 5% of the respondents are taken

the insurance policies for some other purposes.

Table: 12 Showing the opinion about ULIP policies in Bajaj Allianz

Opinion No. of Respondents Percentage (%)

Excellent 24 16Good 89 59Bad 7 5No Idea 30 20Total 150 100

INFERENCE:

From the above table, it is inferred that 59% of the respondents opinion

about the ULIP policies in Bajaj Allianz are good, 20% of the respondents

have no idea to tell about the ULIP policies, 16% of the respondents opinion

about the ULIP policies are excellent and 5% of the respondents opinion

about the ULIP policies in Bajaj Allianz are bad

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Table: 13 Showing the satisfaction level of products and services

offered by Bajaj Allianz

Satisfaction Level No. of Respondents Percentage (%)

Extremely Satisfied 26 17Satisfied 98 65Dissatisfied 6 4Extremely Dissatisfied 0 0No Idea 20 14Total 150 100

INFERENCE:

From the above table, it is inferred that 65% of the respondents are satisfied

with the products and services, 17% of the respondents are extremely

satisfied with the products and services, 14% of the respondents are havingno idea about the products and services and remaining 4% of the

respondents are dissatisfied with the products and services offered by Bajaj

Allianz life insurance.

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Table: 14 Showing the opinion about advisors service

Insurance Consultants Service No. of Respondents Percentage (%)

Yes 121 81

No 29 19Total 150 100

INFERENCE:

From the above table, it is inferred that 81% of the respondents feel that the

advisors guiding properly before going to take a policy, and remaining 19%

of the respondents feel that the advisors not guiding properly before going

to take a policy.

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Table: 15Table showing the relationship between age of respondents and theirawareness

level of Bajaj Allianz Life Insurance Company

Awareness Very well aware Well aware Aware Not aware Total

Age

Below 18 3 0 4 2 918-30 4 32 23 11 7031-40 3 18 13 5 3941-60 0 7 9 5 2161 & Above 2 4 3 2 11

Total 12 61 52 25 150

Null hypothesis (Ho):

There is no significant relationship between age of the respondents and their awareness level of

Bajaj Allianz Life Insurance Company.

Alternate hypothesis (H1):

There is a significant relationship between age of the respondents and their awareness level of

Bajaj Allianz Life Insurance Company. The 2 value is found with the help of the following

formula.

2 = [(O E) 2/E]

Here,

O= Observed frequencies,

E= Expected frequencies and the result are presented below.

Calculated value = 17.62

Degree of freedom = (c-1) (r-1)

= (4-1) (5-1) = 12

Table value for 12 degree of freedom @5% level of significance is 21.026

INFERENCE:

The researcher had applied chi- square test (2 ) to prove statistically whether there is any

significant relationship between the variables used for the study. For this purpose the researcher

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has chosen age (variable1) with the (variable 2) the respondents awareness level of Bajaj

Allianz Life Insurance Company. When tested at 5% level of significance, it is found that the

table value is greater than the calculated value. Null hypothesis is accepted. Hence it is

concluded that age of the respondents have no significant relationship with the awareness level

of Bajaj Allianz life insurance company.

Table: 16Table showing the relationship between educational qualification of the

respondents and their awareness level of Bajaj Allianz Life Insurance Company

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Awareness Very well aware Well aware Aware Not aware Total

Education

HSC 1 19 12 6 38UG 5 31 32 10 78PG 6 9 7 9 31Others 0 2 1 0 3

Total 12 61 52 25 150

Null hypothesis (Ho):

There is no significant relationship between educational qualification of the respondents and

their awareness level of Bajaj Allianz Life Insurance Company.

Alternate hypothesis (H1):

There is significant relationship between educational qualification of the respondents and their

awareness level of Bajaj Allianz Life Insurance Company. The 2 value is found with the help of

the following formula.

2 = [(O E) 2/E]

Here,

O= Observed frequencies,

E= expected frequencies and the result are presented below.

Calculated value (2) = 15.58

Degree of freedom = (c-1) (r-1)

= (4-1) (4-1) = 9

Table value for 9 degree of freedom @5% level of significance is 16.919

INFERENCE:

The researcher had applied chi- square test (2 ) to prove statistically whether there is any

significant relationship between the variables used for the study. For this purpose the researcher

has chosen educational qualification (variable1) with the (variable 2) the respondents awareness

level of Bajaj Allianz Life Insurance Company.

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When tested at 5% level of significance, it is found that the table value is greater than the

calculated value. Null hypothesis is accepted.

Hence it is concluded that educational qualification of the respondents has no significant

relationship with the awareness level of Bajaj Allianz Life Insurance Company.

5.2 FINDINGS

47% of the respondents are in the age group of 18-30 years.

75% of the respondents are male. 44% of the respondents are employees.

34% of the respondents are coming under the income level of Rs.5001 10000.

52% of the respondents are UG holders.

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6.1 CONCLUSION

With the growth of Indian insurance market, the market experience more and more

product development catering to particular segments of the market there by allowing the

companies to develop better relationship with their own customer

Today the customer wants products tailor made to their needs. To fulfill this need,

companies are launching products which can hit the customers need. for e.g.; the cost of

education is rising day by day so to cater this high cost of education companies have launched

child gain programs which provide money when it is needed the most i.e. in the age between 18

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to 24 .Earlier product did not have riders but now all the product are equipped with attractive

riders like critical illness benefit, accidental death benefit, hospital cash benefit, waiver of

premium benefit and many more. There is flexibility in the plans which allows the customer to

increase or decrease the amount of investment .To create a space in the consumers minds the

insurance companies have maximized their innovation skills for e.g.: Invest Plus which is a

traditional plan but is offering most of the flexibility features of ULIP plans with guaranteed

percentage of return without bearing the risk of stock market.

Earlier people use to associate insurance policy with death but now they buy insurance as

a investment instrument .e.g. unit link products which give maximum retunes.

The environment has become more competitive and sensitive to the demands of the

market .The customers have become the driving force and the companies have recognized the

role of the customer in their business planning and decision making.

The emerging scenario provides the consumers with choice of insurance, wider range of

new & innovative products also competitive pricing of products and services.

As the industry is growing there is large opportunity for employment also for e.g.

Insurance consultancy can be a great career opportunity since less time has to be devoted it can

always be a part time job .The growth opportunities are high because of the large untapped

market.

This study has helped the Bajaj Allianz to identify the market potential in Raipur city,

which is the primary purpose of the study. In this study the attempt has been made to know the

preference given by the respondents towards ULIP and the factors influencing the customers

needs and satisfaction level of particular plan. As BALIC has good brand awareness and fastest

growing private life insurance company in India, I would like to conclude the study by

suggesting that the ULIP is one of the best products which is offering by the company for the

customers to get good returns with covering life risk and providing the facility of short term

investment.

Hence large number of respondents has no idea to take up the ULIP policies in future so

the Bajaj Allianz has a huge market potential to sell their product in Raipur City.

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6.2 SUGGESTIONS

The Bajaj Allianz should focus forwards more number of females to take policies for

their children.

The Bajaj Allianz should concentrate the age group of 18- 30, who are considered as a

prospect to take insurance policies.

The company should focused on the following services :

A. Claim settlement

B. Pending documents, etc

The agent must have to update knowledge about their products and services day to day.

The agents should have the knowledge about the competitors product also.

The company should more focus on the rural market by personal selling and

advertisement.

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The agents must have healthy relationship with the customers after the policy has been

logined.

The study shows most of the customers holds only one policy so the advisers can select

and promote the customers who can offered more than one policies.

Only few respondents feel that ULIP in Baja Allianz are excellent so I suggest the

company to conduct the camp to ensure the respondents opinion.

Few respondents are not ready to recommend the Bajaj Allianz products to others so the

company w

Documents

Changing investment pattern and insurance consultancy as a career with Bajaj Allianz Life Insurance Co. Ltd