Perception of Investors Towards Insurance

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CHAPTER-1

INTRODUCTION

CHAPTER -1

INTRODUCTION

1.1 OUTLINE OF THE PROJECT

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Thisis to know the perception level among investors and their expectations who

invested in Bajaj Allianz or the level of customers benefits and services provided by the

Bajaj Allianz.

In the present competitive environment it is very crucial to every business from to

ensure perception of its customers. According to one survey it was found that it costs five

times more to attract a new customer than to retain an existing customer. So with all these

parameters taking into considerations one can say that it is very important to provide

goods and services that satisfy customers needs or wants irrespective of the industry or

scale of the business in which a firm is operating.

Here the main purpose of the survey is to know about the various factors which

benefit the customers needs and to know how is ensuring its customers perception.

The expectation of customer is vary from one customer to the other customer. For

example Some customer are only concerned about the returns that they are getting in a

fund but at the Same time there are some other customer who are very specific about the

location , ambience and front line employees interaction and some other parameters. It

is very difficult to any business firm to satisfy all the expectations of all customers but

there are some common factors that are essential to fulfils.

The objective of the project is given as below. The detail of the survey such as the

source of Data, the sample size taken and the method of analysis are all given briefly in

the methodologies. There are some constraints throughout the project, which are given

clearly in the limitations.

1.1.1 NEED/ IMPORTANCE

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The project study on perception of investors towards insurance in mumbai was help to

both the company as well as to us.

First thing the project was important for getting knowledge about

organization and for completion of course.

For getting broad idea about the market.

It helped to increase the skills of marketing.

1.1.2 PROBLEM DEFINITION

Company has not gone for awareness program.

The market has not increased in the way that it was expected

The advertisement have not created an impact on the customers

1.1.4 SCOPE OF THE STUDY

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A big boom has been witnessed in Insurance Industry in recent times. A large

number of new players have entered the market and are vying to gain market share in this

rapidly improving market. The study deals with in focus and the various segments that it

caters to. The study then goes on to evaluate and analyze the findings so as to present a

clear picture of trends in the Insurance sector.

By selecting consistently 100 samples and conducted the study in mumbai. This is

based on the customers of the Bajaj Allianz in mumbai. The study mainly concentrates on

the customer benefits . The scope of the study also focuses about the preferences rating

by the Bajaj Allianz, perception and customers further requirements of any other

services.

The study was conducted to know the customer behavior of the investors and to

analyze the views of the customers based on a questionnaire which was designed to get

the meaningful information so that identifying the market expectation would be carried

out the primary information.

1.1.3OBJECTIVES OF THE STUDY

To identify the changing investment behaviour.

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To find out the opportunities and limitations of Insurance policies and insurancesector.

To know whether the service offered by the company is satisfied the needs of all

groups of people.

The other benefits offered by the company is satisfied the customers.

To find out the benefits preferred by the customers.

To know about their views about the company and to assess to their views.

1.1.5 RESEARCH DESIGN AND SAMPLING DESIGN

A research design is the arrangement of condition for collection and analysis of

data in a manager that aims to the research purpose with economy in procedure.

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It stands for advance planning of the method to be adopted for collecting the

relevant data and technique to be used in the analysis, keeping in view the objectives of

the research and availability of the respondents time and money.

With this as a base descriptive research design, which includes surveys and facts

findings enquires of different kinds .The major purpose of descriptive research is for

descriptive of state affair, as it exists at present

POPULATION

The population consists of customers of Bajaj Allianz and other general people,

Mumbai

SAMPLE SIZE

The sample size 100 customer

SAMPLING METHOD

The sampling used is random sampling: - A random sample is one chosen by a

method involving an unpredictable component. Random sampling can also refer to taking

a number of independent observations from the same probability distribution, without

involving any real population. The sample usually is not a representative of the

population from which it was drawn this random variation in the results is known

as sampling error. In the case of random samples, mathematical theory is available to

assess the sampling error. Thus, estimates obtained from random samples can be

accompanied by measures of the uncertainty associated with the estimate.

A simple random sample is selected so that all samples of the same size have an equal

chance of being selected from the population.

METHODS OF DATA COLLECTION

Primary Method

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Primary data are those which are collected fresh and for the first time and thus

happen to be original in character. It is always advised to use primary data whenever

possible. . They are also known as first handed data. Data were collected through

personal investigation with the help of Questionnaire

SECONDARY DATA

Data was also collected from the web pages of the organization, magazines and

also from the management books.

TOOLS FOR ANALYSIS

The data collected was analyzed using tools such as,

Simple percentage analysis Chi square test

SIMPLE PERCENTAGE ANALYSIS

Percentages are often used in data presentation for simply numbers ,reducing all

of them to 10 -100 ranges .though the use if the percentages the data are reduced into

standard form with base equal to 100 which in fact facilities easy relative comparison it

can be calculated as follows

PERCENTAGE =no of response

_____________________*100

Total no of the respondents

C HI-SQUARE TEST

A chi-square test (also chi-squared or x2 test) is any statistical hypothesis test in

which the test statistic has a chi-square distribution when the null hypothesis is true, or

any in which the probability distribution of the test statistic (assuming the null hypothesis

is true) can be made to approximate a chi-square distribution as closely as desired by

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making the sample size large enough. A chi-square goodness of fit test is used to test

whether a frequency distribution fits a specific distribution.

1.1.6 LIMITATIONS OF THE STUDY

The following were the limitations that were there during the course of the study:

1. Limited time period.

2. Less number of respondents.

3. Biasness of the respondents.

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4. only limited number of question were asked.

1.1.7 CHAPTERISATION

The present study is reported through five chapters.

The first chapter deals with introduction, objective of the study, scope of the study,

coverage of the study, methodology, sampling data, and limitation of the study, literature

of review.

The second chapter enclosed with Data Analysis and Interpretation.

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The third chapter enclosed with summary and conclusion.

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1.2 THE HISTORY OF INDIAN INSURANCE INDUSTRY

Life Insurance

In 1818 the British established the first insurance company in India in Calcutta,

the Oriental Life Insurance Company. First attempts at regulation of the industry were

made with the introduction of the Indian Life Assurance Companies Act in 1912. A

number of amendments to this Act were made until the Insurance Act was drawn up in

1938. Noteworthy features in the Act were the power given to the Government to collect

statistical information about the insured and the high level of protection the Act gave to

the public through regulation and control. When the Act was changed in 1950, this meant

far reaching changes in the industry. The extra requirements included a statutory

requirement of a certain level of equity capital, a ceiling on share holdings in such

companies to prevent dominant control (to protect the public from any adversarial

policies from one single party), stricter control on investments and, generally, much

tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance

companies. Business was heavily concentrated in urban areas and targeted the higher

echelons of society. Unethical practices adopted by some of the players against the

interests of the consumers then led the Indian government to nationalize the industry. In

September 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that nationalization has lent the

industry fairness, solidity, growth and reach.

Meaning and Definition of Life Insurance

Meaning

Life insurance covers the risk that exists in ones life. These risks may arise due to

accident, illness or natural causes like fire, flood, and earthquake. Life insurance aims to

protect the family of the life insured so that they may not suffer from financial

consequences on the death or disability of the insured person. Life insurance needs to be

a mandatory part of every persons life. Life insurance is a contract that pledges payment

of an amount to the person assured (or his nominee) on the happening of the event

insured against.

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Prior to liberalization of Insurance industry, Life insurance

was monopoly of LIC.

In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor

R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its

future direction. The Malhotra committee was set up with the objective of

complementing the reforms initiated in the financial sector. The reforms were aimed at

creating a more efficient and competitive financial system suitable for the requirements

of the economy keeping in mind the structural changes currently underway and

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

was necessary to address the need for similar reforms. In 1994, the committee submitted

the report and some of the key recommendations included:

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.

Competition

Private Companies with a minimum paid up capital ofRs.1 billion should be allowed to

enter the sector. No Company should deal in both Life and General Insurance through asingle entity. Foreign companies may be allowed to enter the industry in collaboration

with the domestic companies.

Regulatory Body

The Insurance Act should be changed. An Insurance Regulatory body should be set up.

Controller of Insurance- a part of the Finance Ministry- should be made independent

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)

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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. Computerization of operations

and updating of technology is to be carried out in the insurance industry.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA):-

Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory body in

April 2000 has fastidiously such to its schedule of framing regulations and registering the

private sector insurance companies. 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.

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA...

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(1) Subject to the provisions of this Act and any other law for the time being

in force, the Authority shall have the duty to regulate, promote and ensure

orderly growth of the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the

powers and functions of the Authority shall include,

(a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend

or cancel such registration;

(b) protection of the interests of the policy holders in matters concerning assigning of

policy, nomination by policy holders, insurable interest, settlement of insurance claim,

surrender value of policy and other terms and conditions of contracts of insurance;

(c) Specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

(d) Specifying the code of conduct for surveyors and loss assessors;

(e) Promoting efficiency in the conduct of insurance business;

(f) Promoting and regulating professional organisations connected with the insurance and

re-insurance business;

(g) Levying fees and other charges for carrying out the purposes of this Act;

(h) Calling for information from, undertaking inspection of, conducting enquiries and

investigations including audit of the insurers, intermediaries, insurance intermediaries

and other organisations connected with the insurance business;

(i) control and regulation of the rates, advantages, terms and conditions that may be

offered by insurers in respect of general insurance business not so controlled and

regulated by the Tariff Advisory Committee under section 64U of the Insurance Act,

1938 (4 of 1938);

(j) Specifying the form and manner in which books of account shall be maintained and

statement of accounts shall be rendered by insurers and other insurance intermediaries;

(k) Regulating investment of funds by insurance companies;

(l) Regulating maintenance of margin of solvency;

(m) Adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

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(n) Supervising the functioning of the Tariff Advisory Committee;

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organisations referred to in clause

(p) Specifying the percentage of life insurance business and general insurance business to

be undertaken by the insurer in the rural or social sector; and

(q) Exercising such other powers as may be prescribed

COMPANY PROFILE

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COMPANY PROFILE

1.3 COMPANY PROFILE

BAJAJ ALLIANZ

BAJAJ Allianz Life Insurance Company is a joint venture between two leading

conglomerates, Bajaj Auto Limited, one of largest manufactures of motorcycles and

scooters in the world, and Allianz AG of Germany one of the largest insurance

companies. Bajaj Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001.

The company received the Insurance Regulatory and Development Authority (IRDA)

certificate of Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance

business in India.

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Bajaj Allianz Shareholder Capital Base stands at Rs. 500 crore with Bajaj Auto

Limited and Allianz AG of Germany holding 74% and 26% stake respectively. It is the

largest private player in the Insurance Industry in India with a market share of around

34% amongst the private companies and second to LIC. The total market share of Bajaj

Allianz as of 31st March 2006 is at 12%.

During the financial year 2008-2009, Bajaj Allianz has sold over 35 lakh policies and

collected about Rs. 44330 crore as premium income. Whopping growth of 216% for the

FY 2007-08, Assets under management of Rs. 33240 Crore. It has paid up Rs 925 crores

with IRDA as a caution deposit. Bajaj Allianz has insured lives for sum assure of over Rs

8500 crore.

Bajaj Auto Limited

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest

manufacturer of two-wheelers and three-wheelers in India and one of the largest in the

world.

A household name in India, Bajaj Auto has a strong brand image & brand loyalty

synonymous with quality & customer focus. With over 15,000 employees, the company

is a Rs. 4000 crore auto giant, is the largest 2/3-wheeler manufacturer in India and the 4th

largest in the world. AAA rated by Crisil, Bajaj Auto has been in operation for over 55

years. It has joined hands with Allianz to provide the Indian consumers with a distinct

option in terms of life insurance products.

As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the

following to offer -

A strong brand-equity.

A good market reputation as a world class organization.

An extensive distribution network.

Adequate experience of running a large organization.

A 10 million strong base of retail customers using Bajaj products.

Advanced Information Technology in extensive use.

Experience in the financial services industry through Bajaj Auto

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Allianz AG

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost

174,000 employees. At the top of the international group is the holding company, Allianz

AG, with its head office in Munich.

Allianz AG is in the business of General (Property & Casualty) Insurance; Life &

Health Insurance and Asset Management and has been in operation for over 110 years.

Allianz is one of the largest global composite insurers with operations in over 70

countries. Further, the Group provides Risk Management and Loss Prevention Services.

Allianz has insured most of the world's largest infrastructure projects (including

Hongkong Airport and Channel Tunnel between UK and France), further Allianz insures

the majority of the fortune 500 companies, besides being a large industrial insurer,

Allianz has a substantial portfolio in the commercial and personal lines sector, using a

wide variety of innovative distribution channels.

ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE

Worldwide 2nd by Gross Written Premiums - Rs.4,46,654 cr.

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

AUM of Rs.51,96,959 cr.

12th largest corporation in the world

49.8 % of global business from Life Insurance

Established in 1890, 110 yrs of Insurance expertise

FINANCIAL ASPECT OF BAJAJALLIANZ

Worldwide Number One by gross Written Premiums.

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The largest asset manager in the world-Managing assts more than a million

US $ [Rs. 50,06,670 Corers (USD 1028 billion]

One of Europe's most highly valued stock corporations

Net income in excess of Rs 5844 Corers

1.4)PRODUCTS OF BAJAJ ALLIANZ

INDIVIDUAL PLANS

1.4)PRODUCT OF BAJAJ ALLIANZ

INDIVIDUAL PLANS

GROUP PLANS

INSURANCE FOR NRI's

SPECIAL PLANS

Individual Plans

UNITGAIN

A Unit Linked Plan

RISK CARE

Pure Term Plan

UNITGAIN SPA Single Premium unit Linked

Plan

TERM CAREterm Plan with Return-of-

Premium

INVESTGAIN

An Endowment Plan

LIFETIME CARE

Whole Life Plan

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CHILDGAIN

Children's Policy

SAVE CARE ECONOMY SP

Single Premium Endowment

Plan

CASHGAIN

Money Back Plan

LOAN PROTECTOR

A Mortgage Reducing term

Insurance Plan

SWARNA VISHRANTI

Retirement Plan

KEYMAN INSURANCE

A Promising Business

Opportunity

UNITGAIN PLUS

Unit Link plan with higher

allocation

UNITGAIN PLUS SP

A Single premium Unit

Linked Plan

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The "Bajaj Allianz Unit Gain SP Plan The Bajaj Allianz Unit Gain SP comes with a host of features to allow you to have the

best of all worlds-Protection and Investment with flexibility.

Some of the key features of this plan are:

Key Features Benefits Guaranteed death benefit

Choice of 5 investment funds

with flexible investment

management: you can changefunds at any time.

Death Benefit

Attractive investment alternative

to fixed interest securities.

Cash withdrawal

option Provision for full/partial

withdrawals any time after three

full years premiums are paid. Unmatched flexibility- to match

your changing needs.

i) Monthly mode is available under salary savings scheme only

More value for money-our attractive High Sum Assured Rebate

Allianz Bajaj offers an attractive premium discount structure, where you

can have a discount of at least Rs. 84* on the annual premium for every additional

Rs. 10000 Sum Assured purchased over and above the minimum sum Assured ofRs. 50000.

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ii) Limited Premium Payment Terms- For Your Convenience

You do not have to pay premiums for the full term of the policy. This plan

provides you with a range of limited premium payment terms for you to finish

obligation as fast as possible and enjoy the benefits of life cover without anyworry thereafter.

iii) Advantage Women

There will be a premium discount for female policyholder in the package.

Basic premium payable will be equivalent to the premium for a two-year younger

male policyholder for the base policy only.

IV ) Tax Benefits as per current tax laws

Premiums paid are eligible for Tax Exemption under Section 88 of the

Income Tax Act. Maturity and death proceeds are Tax Free under Section 10

(10D) of the Income Tax Act. The premiums for the Critical illness Benefits and

the Hospital Cash Benefit will be eligible for Tax Exemption under Section 80 (D)

of the Income Tax Act.

V) Surrender Values

Premium Term Surrender Value after Guaranteed Surrender Value2-3 years 1 year form commencement. 60% of the premiums

excluding premiums for

additional benefits and extra

premiums.

5-6 years 2 full years premium payment 30% of premiums excluding

first year premium and the

premium for additional

benefits and extra premiums.

7 and above 3 full years premium payment 30% of premiums excluding

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the first year premium and

the premium for additional

benefits and the extra

premiums.

B) CASH GAIN (MONEY BACK)

Bajaj Allianz Cash gain is a plan that offers a host of additional benefits you may

choose to develop a sound financial portfolio for your family. Among the many unique

benefits, the most significant is the Family Income Benefit (FIB) that sustains the family

by compensating the loss of regular income due to death or permanent disability.

Bajaj Allianz Cash gain Economy: The basic package

Bajaj Allianz Cash gain Gold: With double protection Bajaj Allianz Cash gain Diamond: With triple protection

Bajaj Allianz Cash gain Platinum; With quadruple protection

C) Additional Protection for you and your family

You have the option to add the following additional benefits, providing total

protection against uncertainties.

i). Family Income Benefit (FIB) - The Ultimate Protection- For Your Loved Ones

. In case of death or accidental total permanent disability, a guaranteed monthly income

of 1% of the sum assured (12% per annum) is paid till the end of the policy term or at

least for a period of 10 years, whichever is higher. Moreover, all future premiums are

waived.

ii). Comprehensive Accident Protection

These benefits provide comprehensive cover in case of an accident. It comprises

of:

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iii). Accidental Death Benefit

Accidental Death Benefit pays an amount equal to the Sum Assured.

(Subject to a maximum of Rs. 50, 00,000/- under all policies with Bajaj Allianz taken

together) after the permanent loss of income

iv). Waiver or premium Benefit

It waives off all future premiums while keeping the valuable life insurance cover

alive.

v) Critical Illness Benefit (CI)

You have the flexibility of choosing Critical Illness cover up to the basic Sum Assured

selected by you (Minimum Rs. 50,000).

vi). Hospital Cash Benefit (HC)

. Bajaj Allianz Hospital Cash Benefit reduces financial burden of paying the hospital bills

.

vii) Flexibility in Coverage

You have the flexibility to change your package and move to a package that provides

lower protection at each policy anniversary (premiums would be adjusted accordingly).

"Comprehensive Accident Protection" can be included and excluded at each policy

anniversary. Family Income Benefit, Critical Illness Benefit and Hospital Cash Benefit

can be taken at inception only. FIB, CI & HC can be reduced or excluded subsequently at

any policy anniversary. Once reduced or excluded, they cannot be increased or included

subsequently.

Bajaj Allianz Swarna Vishranti

The plan works in two parts- the deferment period and the annuity period, the

plan provides valuable life cover and builds up the funds required to purchase the

immediate annuity. The deferment period ends at the vesting date. You are free to choose

your age of retirement (vesting date) between 45 and 70 years.

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Since the Bajaj Allianz Swarna Vishranti plan participates in the profits of the

company, the Sum Assured grows with time through the bonuses declared by the

company.

D) The "Bajaj Allianz Swarna Raksha " ( RETIREMENT PLAN)

Bajaj Allianz Swarna Raksha, ensures a regular income after retirement. The plan

offers a life annuity with Return of Capital.

How does Bajaj Allianz Swarna Raksha work?

All you have to do is pay a lump sum amount to Bajaj Allianz Life Insurance

Company, and the annuity payments will start after expiry of monthly/quarterly/half-

yearly/yearly interval corresponding to the payment mode selected by you. Here annuity

is payable for life, so you do not have to worry about your income stopping at any stage.

What more, under the return of capital option, the amount used to purchase the annuity is

paid to the nominee on the death of the annuitant.

The benefits on Vesting Date (the date you choose to retire)

1. The Account Value as on the vesting date will be used to purchase an

immediate annuity. The immediate annuity will be purchased at rates prevailing

at that point of time.

2. Option to take lump sum: You have the option to take upto 1/3rd of the account

value on the vesting date as a lump sum. This amount would be tax free in your

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hand, as per current tax laws. The balance amount will be used to purchase an

immediate annuity.

3. Open market Option: You have the option to purchase an immediate annuity

from Bajaj Allianz or from any other company. If the immediate annuity is

purchased form Bajaj Allianz, the amount available for purchase of the annuity

will be marked up by 2%.

4. The minimum installment of annuity from Bajaj Allianz is Rs. 1000/- The

annuity frequency may be changed to make each installment more than the

minimum requirement. If it still below the minimum, the Account Value may be

utilised to purchase an immediate annuity from any other company in the open

market as per your choice, or paid in lump sum, is permissible, subject to the

prevailing tax laws.

Assurance-for your family

In the event of death during the deferment period, the policy holders spouse

will have the option to take the Account Value as a lump sum or purchase an annuity

to get regular income for life. For the immediate annuity, also the beneficiary will

have the Open Market Option as well. The immediate annuity from Bajaj Allianz will

be available only if the spouse is above 45. If age were below 45, the Account Value

would be paid out

OTHER BENEFITS

a. Additional Protection for You and Your Family:

You have the option to add the following four additional benefits, providing total

protection against uncertainties.

Accidental Death Benefit.

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4.3) CHILD CARE

Taking care of a child is perhaps the most important job a parent can have. It is but

natural that you would like to give your child your best, and therefore, this is the time

when careful financial planning can help you fulfill the aspirations that you have for your

children. The Bajaj Allianz Child Care Solutions help you to enjoy the joys of

parenthood responsibly, with the reassurance of a secure future for your child.

CHILD CARE PLAN OFFERS

Child Care plan is a children money back plan with profit. Bajaj Allianz Child Care

offers a wide array of solutions that allows you to plan for your childs future by

providing you with as many as 4 distinct and unique options.

1. Child Care 21

2. Child Care 24

3. Child Care 21 Plus

4. Child Care 24 Plus

START OF LIFE BENEFIT

This is a unique feature of Bajaj Allianz Child Care 21 Plus & 24 Plus. These packages

offer you the choice of providing a unique Start of Life Benefit for your child. For a

nominal amount, an additional Sum Assured subject to a maximum limit of Rs.10 Lacks

will become payable to enable the child start hi/her professional life smoothly, in case of

an unfortunate death or Accidental Permanent Total Disability of the Policy holder during

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the term of the policy. This benefit will not be available in the event of accidental

permanent total disability after age 65 of the policy holder.

IN-BUILT BENEFITS

A) PREMIUM WAIVER BENEFIT:

In case of death or Accidental Total Permanent Disability of the policyholder

during the premium payment term, all future premium payments are waived. This

benefit will not be available in the event of accidental permanent total disability after

age 65 of the policy holder.

B) FAMILY INCOME BENEFIT:

In case of death or accidental total permanent disability of the policy holder during

the term of the policy, a monthly income benefit of 1% of the sum assured (12% per

annum) becomes payable till the end of the policy term (subject to a maximum of Rs.

1,20,000 per annum). This benefit will not be available in the event of accidental

permanent total disability after age 65 of the policy holder.

C) OPTION TO PURCHASE FURTHER INSURANCE AT MATURITY:

For ensuring continuity of the valuable insurance protection that the child was

enjoying, we offer the child and option to purchase a with profits endowment or an

equivalent plan from Bajaj Allianz Life Insurance Company for twice the amount of

face value of this policy, without any medical examination, on the premium rates

prevailing at that time. (The application must be made at least 6 months prior to

maturity of this policy).

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CHAPTER 2

2 .REVIEW OF LITERATURE

For the present study, the following literatures are being reviewed.

The title of Article is does customer satisfaction lead to profitability?

Author (s): Timothy L. Keiningham, Tiffany Perkins Munn, Lerzan Aksoy , demitry

Estrin

Journal: Managing Group Publishing Limited

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Purpose- Many researchers have proposed a virtuous chain of effect from improved

Customer satisfaction to profits. In particular, satisfaction is thought to improve share-Of

spending, which in turn leads to higher customer revenue and customer profitability.

This paper aims to examine these proposal linkages using data from the institution

securities Industry.

In the present scenario companies are facing their toughest competition ever. It is Very

necessary for any companies to change their philosophy from product and sales

Philosophy to a marketing philosophy. All the companies are required to win their

customer and outperform their competitors; this can be done by doing a better job of

meeting or exceeding customer expectations.

In general customer satisfaction is a customers feelings of pleasure of disappointment

resulting from comparing a products perceived performance in relation to his or her

Expectations. If the performance falls short of expectation, customer is dissatisfied, if the

performance match the expectations, the customer is satisfied and if it exceeds then he is

delighted .there is a huge link between customer satisfaction and customer loyalty.

Suppose if he is not satisfied then he will shift to another vendor, if he is satisfied then he

may shift to another vendor if his offer is better and he will remain loyal when he is

delighted and fully satisfied. Customer builds their expectation only by their past buying

experience, friends and associates advice, and marketers and competition information

and promises. So the companies need to raise expectation and delivering to match. So it

is understood that customer will buy from the they see as offering the highest perceived

value.

Insurance is an important decision for any family member. Depending if its health, life,

or home owner, it is still a major choice to be made. When a person visit the doctor and

he will pay for co-pay, his health insurance is paying for the rest. If something would

happen to the person with the most income, life insurance would help to cover this. Or

say when a person at work and his home burns down, homeowners insurance would get it

to be covered. Insurance is an essential part of everyday life because dont know what is

going to happen at any time of the day. There are many of types of insurance companies

all around the world. You probably have some in the hometown, or see commercials day.

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One domestically owned insurance company is the Home Mutual Insurance

Company. It is a mutual insurance company licensed in the state of Indiana with another

subside agency called, German Mutual Insurance Agency, which holds offices in Indiana

and New Albany. The Home Mutual Insurance Company was formed by a group of

citizens in 1876 in the city of Tell City, Indiana. Since that time, they have grown and

currently have 13 people and have 2 offices located in south-western Indiana. In the year

2008 they celebrated their 132nd anniversary as a company.

It has been observed that insurance agents should constantly monitor the level of

satisfaction among his/her customers to keep themselves close to the customers for

fulfilling their needs (Joseph et al., 2003). Ennew et al. (1993) indicated that a

comparison of mean scores on the importance of service attributes provides a very

effective method of measuring the ability of services to meet the needs of the customers.

Perceived service quality has a significant effect on the attitude towards obtaining

insurance (Arora and Stoner, 1996). Moreover, the degree of success in the

implementation of enterprise mobilization in the life insurance industry is positively

correlated to the management performance of external aspects like providing increased

customer satisfaction (Luarn etal., 2003). Customer satisfaction and the salespersons

relation orientation significantly influences the future business opportunities and as the

salespersons are able to enhance their relationships with the clients, clients are more

satisfied and are more willing to trust, and thus secures the long-term demand for the

services (Tam and Wong, 2001). Hellieret al. (2003) found that in insurance purchase

brand preference is an intervening factor between customer satisfactions and repurchase

intention and the main factor influencing the brand preference is the perceived value and

customer satisfaction. The company and agents service quality as well as

recommendations of friends are factors that significantly affect decisions of purchasing

life insurance policies (Chow-Chua and Lim, 2000). Stafford et al. (1998) in a study on

auto-casualty industry proved that reliability is consistently the most importantdeterminant of both perceived service quality and feelings of satisfaction among

customers engaged in auto-insurance claims. No such study has been carried out in the

area of life insurance. Given the importance of the life insurance industry in India in

terms of increasing market size, growing competition and the share of the total insurance

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premium market, this paper attempts to identify the service quality dimensions which

contribute to the maximum customer satisfaction in the life insurance industry of India

DEFINED BY CHURCHILL (2006)

This literature review provides an overview of the current state of research on micro

insurance identifies key knowledge gaps and develops a conceptual framework to inform

and organize the research agenda of the Micro insurance Facility in the area of impact

evaluation, demand and supply issues. For the purpose of this review, micro insurance is

defined in line with Churchill (2006) as an insurance that (i) operates by risk-pooling (ii)

is financed through regular premiums and is (iii) tailored to the poor who would

otherwise not be able to take out insurance. The main focus of the literature review is on

voluntary insurance1. Other ways through which individuals or the public sector can

insure against risks, such as precautionary savings, access to credit or through public

safety nets are therefore not treated in detail in this review. However, this leads already to

one key omission in the existing literature: generally, the benefits of micro insurance are

not compared to alternative mechanisms that may provide insurance like benefits,

possibly in a more cost-effective way, such as micro savings, consumer or emergency

credit, and public safety nets. This paper is divided into four parts. The first section offers

a general framework to understand the link between risk and poverty, allowing us to

carve out a clear place for insurance activities as part of poverty eradication efforts. It

also summarises some of the key findings related to the work on risk and its

consequences for households, communities and firms. Part two deals with evaluating the

impact of micro insurance and develops a general conceptual framework for impact

analysis applicable to various types of insurances. It reviews some of the (few) papers

that have been able to assess the overall impact of insurance on welfare outcomes. Part

three reviews demand side issues is there a demand for insurance, and what (if anything)

constrains this demand to be reflected in actual uptake of insurance products. Areas

considered relate to the actual cost and pricing of micro insurance, the credibility of the

provider, and the issue of information and knowledge about risk and insurance. Part four

reviews key supply side challenges, such as effective product development, pricing,

marketing and sale, institutional models and delivery channels as well as technology

options. An overview of studies reviewing a range of micro insurance programmes is

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DATA ANALYSIS AND

INTERPRETATION

CHAPTER 3

A.FINDINGS AND ANALYSIS FROM GENERAL PEOPLE

1. People having insurance policies.

Table No: 3.1.1 (People having insurance policies)

Insurance policy holder No. Of respondent Percentage

Yes 36 72

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No 14 28

Total 50 100

Inference:

Out of the 50 people interviewed nearly 72% people have taken insurance policy.

Figure no.3.2.1

2. People having insurance policies of different company.

Table No: 3.1.2(% of insured population in various companies)

Insurance policy of

different company

No. Of respondent Percentage

LIC 12 32

Bajaj Allianz 10 28

ICICI pru 6 17

TATA AIG 1 3

Birla sun life 2 6

Aviva 2 6

Max Newyork 3 8

Total 36 100

Inference:

Out of the 50 insurable people interviewed nearly 72% people have taken insurance

policy. Out of this population being interviewed nearly 32 % had LIC policy, 28 % had

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BAJAJ Allianz, followed by ICICI Pru. (17 %), Max New York Life (8 %) , TATA

AIG(3%), Birla Sun Life (6%), Aviva and HDFC having 6% shares each in the

interviewed population.

Figure no.3.2.2

3. Insurance policies as an investment alternative option.

Table No: 3.1.3

Purpose of insurance No. Of respondent Percentage

Investment alternative 11 22

Security option 39 78

Total 50 100

Inference:

Out of the 50 people interviewed 78 % people term/see insurance policy as a security

option while only 22 % see it as an investment option.

Figure No: 3.2.3

4. Investment preferences in various alternatives.

Table No: 3.1.4

Investment Alternatives No. Of respondent Percentage

Shares 16 22

Mutual funds 12 78

Life insurance 18 100

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Government bonds 4

Total

Inference:

Out of 50 being interviewed, 18 people invest in life insurance policies, 16 people invest

in shares, 12 people invest in mutual funds and 4 people invest in government bonds.

Figure No: 3.2.4

5. Criteria for selecting an insurance company.

Table No: 3.1.5

Various option No. Of respondent Percentage

Security 15 30

Time span 5 10

Market share 2 4

Return 8 16

All of above 20 40

Total 50 100

Inference:

Out of 50 people being interviewed, 15 people select an insurance company on the

criterion of security, 5 people select an insurance company on the criterion of time span,

2 people select an insurance company on the criterion of market share, 8 people select an

insurance company on the basis of return and 20 people select an insurance company on

the basis of all the above mentioned reasons.

Figure No: 3.2.5

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6. Perception of people about safetyness : lic vs pvt. Life insurance companies.

Table no: 3.1.6

Perception of people

about safetyness

No. Of respondent Percentage

Yes 19 38

No 31

Total 50 100

Inference:

Out of 50 people being interviewed, 62 % of people do not find private life insurance

companies to be safe for buying a life insurance policy whereas 38 % people find them

safe for buying a life insurance policy from a private life insurance company.

Figure no: 3.2.6

B. Data analysis for perception of people towards

insurance

1.Objective of investment in life insurance.

Table no: 3.1.7

Objective of investment No. Of respondents Percentage

Protection 29 58Tax benefit 13 26Return 8 16Total 50 100

Inference:

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The above table shows the basic investment objective of the respondents. Out of 50

respondents, 58% perceive protection as their investment objective, 26% perceive tax

benefit and the remaining 16% perceive return as their investment objective. This shows

that maximum no. Of people perceive insurance as protection tool rather than investment

tool, which shows that there is growing awareness of real benefit of insurance.

Figure no.3.2.7

Objective of I nvestment

58%26%

16%Protection

Tax Benefit

Ret urn

2. For respondents who perceive protection as their investment objective.

Table no: 3.1.8

Type of plan No. Of respondents percentageTraditional plan 2 7Unit linked plan 14 48Term plan 6 21Health plan 4 14Pension plan 3 10

Total 29 100

Inference:

The above table shows the type of plan preferred. Out of 29 respondents who perceive

protection as their investment objective, 48% prefer unit linked incentive plan.

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The remaining are divided into : 21% who prefer term plan, 14% who prefer health plan,

10% who prefer pension plan and 7% who prefer traditional plan. This shows that people

who perceive protection as their investment objective prefer unit linked incentive plan

more than other plans.

Figure no.3.2.8

Preferred Plan

7%

48%21%

14%10%

Tradit ional Plan

Unit Linked

Incent ive Plan

Term Plan

Healt h Plan

Pension Plan

3. Time frame preferred (investment objective: protection)

Table no: 3.1.9Time frame No. Of respondents Percentage3-5 years 9 3110-20 years 18 6220 years and above 2 7Total 29 100

Inference:

The above table shows the preferred time frame of investors. Out of 29 respondents who

perceive protection as their investment objective, 62% investors invest for a time frame

of 10-20 years. 31% investors prefer to invest for a time frame of 3-5 years and 7%

prefer to invest for a time frame of more than 20 years. This shows that people who

perceive protection as their investment objective prefer a time frame of 10-20 years for

investment.

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Figure no: 3.2.9

Prefe rred Time Frame

31%

62%

7%3-5 y ears

10-20 years

20 years and

above

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4. Percentage of total investment in life insurance (investment objective: protection)

Table no. 3.1.10

% of investment in life insurance No. Of respondents Percentage

Less than 10% 7 2410-20% 16 5620-40% 5 1740-60% 1 360-80% 0 080-100% 0 0Total 29 100

Inference:

The above table shows the percentage of total investment in life insurance. Out of 29

respondents who perceive protection as their investment objective, 56% invest around 10-

20% of their total investment in life insurance. 24% respondents invest less than 10%,

17% of them invest around 20-40% and 3% of them invest around 40-60% of their total

investment in life insurance.

Figure no: 3.2.10

% I nvestment in Life I nsurance

24%

56%

17% 3% Less t han 10%

10-20%

20-40%

40-60%

B) For respondents who perceive tax benefit as their investment objective:

1. Type of plan preferred (investment objective: tax benefit)

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Total 13 100

Inference:The above table shows the preferred time frame of investment for respondents who

perceive tax benefit as their investment objective. Out of 13 respondents, 61% investors

prefer 10-20 years of time frame for investment. 31% investors prefer 3-5 years of time

frame and 8% prefer more than 20 years of time frame for investment.

Figure no: 3.2.12

Prefe rred Time Frame

31%

61%

8%3-5 years

10-20 y ears

20 years and

above

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3. Percentage of total investment in life insurance (investment objective: tax benefit)

Table no: 3.1.13

% of investment in life insurance No. Of respondents Percentage

Less than 10% 3 2310-20% 8 6220-40% 2 1540-60% 0 060-80% 0 080-100% 0 0Total 13 100

Inference:The above table shows the percentage of total investment in life insurance for investors

who perceive tax benefit as their investment objective. Out of 13 respondents, 62%

investors prefer to invest around 10-20% of their total investment in life insurance. 23%

investors prefer less than 10% investment and 15% prefer 20-40% of their total


Figure no: 3.2.13

% I nvestme nt in Life I nsurance

23%

62%

15%

Less t han 10%

10-20%

20-40%

For respondents who perceive return as their investment objective :

1. Type of plan preferred (investment objective : return)

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Table no: 3.1.14

Type of plan No. Of respondents PercentageTraditional plan 0 0Unit linked plan 8 100Term plan 0 0

Health plan 0 0Pension plan 0 0Total 8 100

Inference:The above table shows the preferred plan of investors who perceive return as their

investment objective. Out of 8 respondents, all of them preferred to invest in unit linked

incentive plan.

Figure no: 3.2.14

Preferre d Plan

100%

Unit Linked

Inc entive Plan

2. Time frame preferred (investment objective: return)

Table no: 3.1.15

Time frame No. Of respondents Percentage3-5 years 4 5010-20 years 4 5020 years and above 0 0Total 8 100

Inference:

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The above table shows the preferred time frame of investment for people who perceive

return as their investment objective. Out of 8 respondents, 50% prefer to invest for a time

frame of 3-5 years i.e. Short term investment and 50% of them prefer to invest for a time

frame of 10-20 years i.e. Long term investment

Figure no: 3.2.15

Preferre d Time Frame

50%50%

3- 5 years

10-20 years

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4.) Preferred Life Insurance Company.

Table no: 3.1.17

Life insurance company No Of respondents Percentage

Lic 19 38Icici prudential 9 18Max new York life 1 2Bajaj Allianz 3 6Hdfc std. Life 5 10Reliance life insurance 9 18Others 4 8Total 50 100

Inference:The above table shows the preferred life insurance company of investors. Out of 50

respondents, 38% prefer Lic, 18% prefer Icici prudential, 18% prefer reliance life

insurance, 10% prefer hdfc standard life insurance, 8% have chosen others category

which include kotak life insurance and new India insurance, 6% prefer Bajaj Allianz and

2% prefer max New York life

Figure no: 3.2.17

Pref err ed Life I nsurance Company

38 %

18%

2%

6%

10 %

18 %8%

LIC

ICICI Prudential

Max New York Life

Bajaj Allianz

HDFC Std. Life

Reliance Life Insurance

Others

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B) Data analysis for effectiveness of communication strategy of Bajaj

Allianz

1. Reason for investment in Bajaj Allianz

Table no: 3.1.18

Reason for investment No. Of respondents PercentageBrand name 5 10Services 5 10Reference 20 40Time constraint 0 0High returns 10 20Product satisfaction 10 20

Total 50 100

Inference:

The above table shows the various reasons why people invested in Bajaj Allianzs plan.

Out of the 50 respondents, 40% invested on the basis of reference, 20% invested on the

basis of high returns provided by the company, 20% invested because they were satisfied

with the products features, 10% invested due to brand name and 10% invested due to the

services provided by Bajaj Allianz Figure no: 3.2.18

Figure no: 3.2.18

2.) The plan follows the feature that is communicated.

Table no: 3.1.19

Feature followed No. Of respondents PercentageYes 40 80No 10 20Total 50 100

Inference:

The above table shows whether the plan that was bought by the customers follow the

feature that was communicated to them. Out of 50 respondents, 80% believes that the

plan follows the feature that is communicated to them and 20% believes that the plan

does not follow feature that is communicated to them

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Figure no: 3.2.19

Fea ture Follow ed

80%

20%

Yes

No

3. Plan satisfying requirement of customer.

Table no: 3.1.20

Requirement satisfied No. Of respondents PercentageYes 45 90No 5 10Total 50 100

Inference:

The above table shows whether the plan bought by the customers satisfy their

requirements or not. Out of the 50 respondents, 90% believes that the plan suits their

requirement and 10% believes that the plan does not suit their requirement.

Figure no: 3.2.20

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Requireme nt sat isfied

90%

10%

Yes

No

4. Service satisfaction of Bajaj Allianz

Table no: 3.1.21

Service satisfaction No. Of respondents PercentageYes 35 70No 15 30Total 50 100

Inference:

The above table shows whether the customers of Bajaj Allianz are satisfied with their

services or not. Out of 50 respondents, 70% are satisfied with Bajaj Allianzs services

and 30% are not satisfied with Bajaj Allianzs services. The reason for dissatisfaction

was lack of proper attention given to customers.

Figure no: 3.2.21

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Serv ice satisfa ction

70%

30%

Yes

No

Personal details chart

5. Age distribution of respondents

Table no: 3.1.22

Age No. Of respondents Percentage21-35 39 7836-50 8 1651-65 3 6Above 66 0 100

Inference:

The above table shows the age distribution of respondents. Out of 50 respondents 78%

fall under the age category of 21-35 years, 16% fall under the age category of 36-50 years

and 6% fall under the age category of 51-65 years.

Figure no: 3.2.22

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Occupation Distribution of

Respondents

6%

24%

2%58%

10% Profession

Businessman

Govt. Servant

Employee

Others

7. Yearly income distribution of respondents.

Table no: 3.1.24

Yearly income Percentage. Of respondents PercentageLess than 1 lac 9 181 to 2 lacs 29 582 to 3 lacs 9 18

3 to 4 lacs 3 18Total 50 100

Inference

The above table shows the income distribution of respondents. Out of 50 respondents,

58% earn income around 1 to 2 lacs, 18% earn income around 2 to 3 lacs, 18% earn

income less than 1 lac and 6% earn income around 3 to 4 lacs.

Figure no: 3.2.24

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I ncome Distr ibution of

Respondents

18%

58%

18%6% Less t han 1 lac

1 to 2 lacs

2 to 3 lacs

3 to 4 lacs

1) Chi-Square Test

Frequencies

income group

Observed N Expected N Residual

less than 1lakh 9 12.5 -3.5

1-2 lakh 29 12.5 16.5

2-3 lakh 9 12.5 -3.5

3-4 lakh 3 12.5 -9.5

Total 50

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rank the following as per your preference to investment in a

financial year:


Shares 18 12.5 5.5

mutual fund 16 12.5 3.5

life insurance 13 12.5 .5

government bonds 3 12.5 -9.5

Total 50

Test Statistics

income group

rank the

following as per

your preference

to investment in

a financial year:

Chi-Square 30.960a 10.640a

Df 3 3

Asymp. Sig. .000 .014

a. 0 cells (.0%) have expected frequencies less

than 5. The minimum expected cell frequency is

12.5.

Null hypothesis: H0

There are significant differences between the factors

Alternative hypothesis: H1

There are no significant differences between the factors

Calculated value:-20

Expected value =12.5

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2. Chi-Square Test

Frequencies

age group


1 39 16.7 22.3

2 8 16.7 -8.7

3 3 16.7 -13.7

Total 50

objective of investment


protection 29 16.7 12.3

tax benefit 13 16.7 -3.7return 8 16.7 -8.7

Total 50

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Test Statistics

age group

objective of

investment

Chi-Square 45.640a 14.440a

Df 2 2

Asymp. Sig. .000 .001

a. 0 cells (.0%) have expected

frequencies less than 5. The minimum

expected cell frequency is 16.7.

Null hypothesis: H0

There are significant differences between the factors

Alternative hypothesis: H1

There are no significant differences between the factors

Calculated value:-14.4

Expected value =16.7

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CHAPTER-4

FINDINGS AND SUGGESTIONS

4.1 FINDINGS

(1) Finding from general people:

Out of the 50 people interviewed nearly 72% people have taken insurance

policy.

Out of this population being interviewed nearly 32 % had LIC policy, 28

% had BAJAJ Allianz, followed by ICICI Pru. (17 %), Max New York

Life (8 %), TATA AIG (3%), Birla Sun Life (6%), Aviva and HDFC

having 6% share each in the interviewed population.

Out of the 50 people interviewed 78 % people term/see insurance policy as a

security option while only 22 % see it as an investment option.

Out of 50 being interviewed, 18 people invest in life insurance policies, 16 people

invest in shares, 12 people invest in mutual funds and 4 people invest in

government bonds.

Out of 50 people being interviewed, 62 % of people do not find private life

insurance companies to be safe for buying a life insurance policy whereas 38 %

people find them safe for buying a life insurance policy from a private life

insurance company.

(2) Perception of people towards insurance.

Out of 50 respondents, 58% perceive protection as their investment

objective, 26% perceive tax benefit and the remaining 16% perceive returnas their investment objective. This shows that maximum no. Of people

perceive insurance as protection tool rather than investment tool, which

shows that there is growing awareness of real benefit of insurance.

A) For respondents who perceive protection as their investment objective:

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Out of 29 respondents who perceive protection as their investment

objective, 48% prefer unit linked incentive plan. The remaining are

divided into : 21% who prefer term plan, 14% who prefer health plan,

10% who prefer pension plan and 7% who prefer traditional plan. This

shows that people who perceive protection as their investment objective

prefer unit linked incentive plan more than other plans.

Out of 29 respondents who perceive protection as their investment

objective, 56% invest around 10-20% of their total investment in life

insurance. 24% respondents invest less than 10%, 17% of them invest

around 20-40% and 3% of them invest around 40-60% of their total


B) For respondents who perceive tax benefit as their investment objective :

Out of 13 respondents, maximum no. of people prefers unit linked

incentive plan i.e. 53%. 31% investors prefer term plan, 8% investors

prefer health plan and 8% investors prefer pension plan.

Out of 13 respondents, 61% investors prefer 10-20 years of time frame for

investment. 31% investors prefer 3-5 years of time frame and 8% prefer

more than 20 years of time frame for investment.

Out of 13 respondents, 62% investors prefer to invest around 10-20% of

their total investment in life insurance. 23% investors prefer less than

10% investment and 15% prefer 20-40% of their total investment in life

insurance.

For respondents who perceive return as their investment objective :

Out of 8 respondents, all of them preferred to invest in unit linked

incentive plan.

Out of 8 respondents, 50% prefer to invest for a time frame of 3-5 years

i.e. Short term investment and 50% of them prefer to invest for a time

frame of 10-20 years i.e. Long term investment

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Out of 8 respondents, 49% invest around 10-20%, 38% invest around 20-

40% and 13% invest less than 10% of their total investment in life

insurance

Out of 50 respondents, 38% prefer Lic, 18% prefer Icici prudential, 18%prefer reliance life insurance, 10% prefer hdfc standard life insurance, 8%

have chosen others category which include kotak life insurance and new

India insurance, 6% prefer Bajaj Allianz and 2% prefer max New York

life.

3) Findings for effectiveness of communication strategy of Bajaj Allianz.

Out of the 50 respondents, 40% invested on the basis of reference, 20%

invested on the basis of high returns provided by the company, 20%invested because they were satisfied with the products features, 10%

invested due to brand name and 10% invested due to the services provided

by Bajaj Allianz

Out of 50 respondents, 80% believes that the plan follows the feature that

is communicated to them and 20% believes that the plan does not follow

feature that is communicated to them

Out of the 50 respondents, 90% believes that the plan suits their

requirement and 10% believes that the plan does not suit their requirement

Out of 50 respondents, 70% are satisfied with Bajaj Allianzs services and

30% are not satisfied with Bajaj Allianzs services. The reason for

dissatisfaction was lack of proper attention given to customers.

4.2 SUGGESTIONS

Among all the existing life insurance Companies in India Bajaj Allianz Product

have an edge.

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But according to observation the company can look forward to following

suggestions:-

Company can launch a investment plan specially designed for students in which

they can invest small amount (eg-:500 to 1000)

Company can design some products exclusively for rural areas keeping is mind

the rural conditions.

Locking period should be reduce which can attract more investors .

It can distribute discount coupons to its prime customers on special Occasions,

this will keep the customer happy and satisfied.

Since the company has a tie up with Bajaj Auto, syndicate Bank Standard

Charted Bank It can plan out some schemes with the banks that are

beneficiary for the customers. (Like being the customer of Bajaj Allianzthey can avail some benefit of Bajaj Auto. Standard charted bank, and

syndicate Bank.).

Company can start attractive schemes for insurance consultants like salary for topperformers.

1.3CONCLUSION

The research project titled as A STUDY ON PERCEPTION OF INVESTOR

TOWARDS INSURANCE AT BAJAJ ALLIANZ enabled to understand the

competition among the various life insurance companies which have entered Indian

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NAME :

ADDRESS: ..

CONTACT NUMBER:..

MATIAL STATUS : SINGLE MARRIED

1. Age : 21-35 36-50 51-65 above 66

2.Occupation :

Profession businessman govt. Servant

Employee others __________

3. Yearly income :

Less than 1 lac 1 to 2 lacs 2 to 3 lacs

3 to 4 lacs 4 lacs or more

4. Do you have a life insurance policy? If yes, then of which

company/companies?

yes no

5. Do you see insurance policies as an investment alternative or a security

option?

yes no

6. Please rank the following as per your preference to investment in a financial

year:

1.shares 2. Mutual fund3.life insurance 4.government bonds

7. What is your criteria/criterion to select a particular insurance company and a

scheme?

1.security 2.time span

3.market share 4. Return 5.all of the above

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8. Do you think that private life insurance companies are as safe as LIC for taking

a policy?

yes no

Part A: perception of people towards insurance

1. Are you aware of life insurance?

yes no

2. Have you ever invested in life insurance?

yes no

If yes, through which company ____________________

3. Which of the following parameters has lead you to investment?

Tax benefit

protecting income against disability/ sickness/ illness

protecting your family against premature death

Plan for retirement

Wealth creation

Childrens education/ marriage

4. Rank the parameters you would prefer before making investment in life

insurance?

Tax benefit return protection

5. Which type of plan would you prefer while making the investment?

Traditional plan unit linked plan term plan

Health plan pension plan

6. For what time frame would you prefer to invest?

3-5 years 10-20 years 20 years and above

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7. Indicate the approximate % of total investment in life insurance

Less than 10% 10-20% 20-40%

40-60% 60-80% 80-100%

8. Indicate your preferred life insurance company

LIC ICICI Prudential Max New York life

Bajaj Allianz met life HDFC std. Life

Tata AIG reliance life insurance

Others _________________

Part B: effectiveness of communication strategy of Bajaj Allianz

1. In which plan have you invested?

_____________________________________________________

2. What made you invest in Bajaj Allianzs plan?

Brand name services reference

Time constraint high returns product satisfaction

3. What is the main feature that has made you invest in the plan?

_____________________________________________________

4. Does the plan follow the feature that is communicated to you?

yes no

If no, why ? ___________________________________________

5. Does the plan satisfy your requirement?

yes no

6. Are you satisfied with Bajaj Allianzs services ?

yes no

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If no, why ? ___________________________________________

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BIBLIOGRAPHY

Books

KOTHARI, C.R.. (Revised Second Edition, 2007) RESEARCH

METHODOLOGY(Method and Techniques)New Age International (P) Ltd,

Publishers, New Delhi.

MARKETING MANAGEMENT( A South Asian Perspective) 13th edition 2009

by Philip Kotler,Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha

K T Shah Insurance Hesperides Press , Publisher.

William G Zikmund Business Research Methods Cengage LearningPublisher.

Websiteswww.bajajallianz.com

www.businessworldonline.com

www.google.com
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Documents

Perception of Investors Towards Insurance