Embed Size (px)
Citation preview
A PROJECT REPORT
ON
“STRATEGIC ANALYSIS STUDY IN BAJAJ
ALLIANZ LIFE INSURANCE COMPANY
LIMITED”
SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION (B.B.A)JAMIA HAMDARD UNIVERSITY, NEW DELHI
UNDER THE SUPERVISION OF SUBMITTED BY:Ms. Monica Sharma Nikhil Chauhan
ENROLMENT NO:02320501709COURSE: BBA 3RD YEAR
SUBMITTED TO: Bihari director JAMIA HAMDARD UNIVERSITY
THROUGH VAG INFOTECH
STUDY CENTER (1014), SESSION: 2009-2012
ACKNOWLEDGMENT
With profound sense of gratitude and regard, I convey my sincere thanks to my guide
and mentor, for their valuable guidance and the confidence they instilled in that
helped me in successful completion of the project report.
I wish to express my sincere gratitude to my project guide Mr. Rashid Farooqui,
Vag InfoTech under whose guidance the study was undertaken. Without him
guidance at each stage of the project study, the task could not have been
accomplished.
This acknowledgment would be incomplete without thanking the college faculty who
helped me in all possible ways their wholehearted co-operation.
Last but not the least I am ever grateful to my friends for their help and support in
completing my project.
MOHAMMAD IKRAM
ABSTRACT
This project aims to study Strategic Analysis Study In Bajaj Allianz Life
Insurance Company Limited. The scope of this research is Reliance Life Insurance
limited among respondent from various cultures and backgrounds. It intends to show
how the consumer reacts to the major uses of the advertising and the new media
technology available to the consumers.
Insurance sector has always been volatile right from the very beginning. As private
players are entering into the Indian market, the competition has become very stiff.
Today a lot of companies are there is the market with their products. The common
consumer is under dilemma to decide to go for which company.
The Reliance Life Insurance is also one among these private players. The project with
Bajaj Life Insurance deal with the market survey of Life Insurance Policy. In today’s
world, one can hardly find a person without a life insurance policy. The project helps
to find out that which company policy is most prevalent in the market and what was
the reason of purchase. It also helps to find out which is the most prevalent insurance
plan in the market. The project is also concerned about finding the awareness level of
Bajaj Life Insurance is the market.
At last the project suggests some recommendation to the organization which is the
outcome of finding and analysis.
The insurance sector has a long history in India. Insuring Indian lives with 10 percent
of extra premium was a common practice prevalent in those times. The Indian Life
Assurance Companies were the first to regulate the life insurance business in 1912. In
1928, the Indian Insurance companies act enabled the government to collect statistical
information about both life and non life insurance business. The opportunities for
insurance in India. The insurance was in private hands before 1971 and was
nationalized in 1972 with all private companies merged into General Insurance
Corporation of India as the parent company with four subsidiaries as National
Insurance Company Ltd. with Head Office at Calcutta, New India Assurance
Company Ltd. with Head Office at Bombay, Oriental Insurance Company Ltd. with
Head Office at New Delhi and United India Insurance Company Ltd. with Head
Office at Madras.
TABLE OF CONTENTS
S.No. Topic
1. Chapter – 1
INTRODUCTION
2. Chapter – 2
LITERATURE REVIEW
3. Chapter – 3
OBJECTIVE
4. Chapter – 4
METHODOLOGY
5. Chapter – 5
RESULTS – REPORT OF DATA COLLECTION
6. Chapter – 6
RECOMMENDATIONS
7. Chapter – 7
CONCLUSIONS & IMPLICATIONS
8. BIBLIOGRAPHY
17 Appendices
QUESTIONNAIRE
Chapter – 1
INTRODUCTIONTHE INSURANCE SECTOR- An overview
The insurance sector has a long history in India. It began in the early years of the 19 th
century. The first legal enactment was made in 1870. The first Indian Insurance Act
was passed in 1938 and amended in 1950, when it was nationalized. However, the
sector was once again thrown open to the private sector in December2009, followed
by the establishment of the Insurance Regulatory and Development Authority (IRDA)
in April 2010.
Though the Insurance Sector is now being opened up for private players as a
consequence of the new liberalization policies of the Government, the existing
government owned Insurance companies will, nevertheless, continue to be in the
government sector. These existing companies will, however, have to strive for better
realization of their corporate objectives and goals to meet the demands and
expectations of the public.
Quality of service and product that an industry offers must move forward with
progress in the state of the economy. As the quantum and quality of service change
over time, the levels at which customers continue to remain satisfied with the services
provided, also keep on increasing. Ultimately, the success of any industry depends
upon its positioning in the state of economy and on meeting the expectations of the
service users.
With competition, the performance level of individual companies is expected to
increase. Segmentation is taking place within the economy with a need for socially
responsive service sector.
Globalization is the new economic reality, which is here to stay, heralding a new era
of insurance in India. With the opening of the insurance industry, India stands to gain
with the following major advantages:
Globalization will provide improved opportunities to the customer for
better products, with more reasonable and affordable pricing.
The customer will get quicker servicing
It will enhance the savings rate
Long-term funds for infrastructure development will be available to the
Country.
It will secure for India larger inflows of foreign capital needed to sustain
our GDP growth.
The opportunities for insurance in India
Only 25% of the insurable population has been extended cover. Market
penetration is low and potential to exploit is high.
Insurance premium per capita is very low ($4)
Lack of a comprehensive social security system/state benefit and welfare
means that demand for pension products should be high.
Huge middle class of approximately 300 million.
Existing insurance companies score low on the customer service front.
With steadily increasing corporate asset values, need for insurance is on
the rise. Competition can help ensure the best products with better
services.
HISTORY OF INSURANCE
The insurance was in private hands before 1971 and was nationalized in 1972 with all
private companies merged into General Insurance Corporation of India as the parent
company with four subsidiaries as National Insurance Company Ltd. with Head
Office at Calcutta, New India Assurance Company Ltd. with Head Office at Bombay,
Oriental Insurance Company Ltd. with Head Office at New Delhi and United India
Insurance Company Ltd. with Head Office at Madras.
In 1993 the need for Private Insurance Companies and Multinational Companies was
felt and beginning of liberalization process started.
The Insurance Reforms Route
April 1993 R N Malhotra Committee an Insurance Sector reforms
and deregulation set up.
January 1994 Malhotra Committee submits report to finance minister.
January 1996 An interim insurance regulatory Authority set up
through a resolution.
September 1996 Insurance Regulatory Authority Bill drafted
December 1996 The IRA Bill introduced in the Parliament and referred
to a standing committee
August 1997 The IRA Bill is withdrawn following opposition to
foreign participation in the domestic insurance sector.
November 1997 Union government gives greater autonomy to LIC, GIC
and its four subsidiaries.
June 1998 Union Budget announces opening up of the insurance
sector.
January 2009 Notification of IRA is statutory authority and
amendments LIC and GIC Acts.
March 2009 IRA sets the procedure for filing applications.
April –July 2009 3 month open window for receipt of application.
December 2009 In principal approvals to be granted.
2010 Private Insurance products hit the market.
After a long wait, however, there was light at the end of the tunnel when the Union
Cabinet first gave its nod for 26 per cent direct foreign equity in any insurance JV,
and later allowed foreign institutional investors (FIIs) to hold 14 percent stake in such
ventures.
The Roadmap to Privatization
Insurance Regulatory Authority Bill to be placed before Parliament. New act to
grant statutory powers to IRA to issue guidelines and regulate industry.
GIC and LIC Acts to be amended. Such an amendment is crucial as the Acts
disallows any other entity to issue policies.
Guidelines for new private insurance companies to be announced by IRA. These
would include capital requirement, solvency margins etc.
Legislation needed to permit institution of brokers to operate in the country.
Guidelines for intermediaries such as surveyors, insurance agents and actuaries to
be formulated.
Invite business plans and applications from prospective participants, and actuaries
to be formulated.
Various associations of intermediaries to be given self-regulatory organization
status through the creation of SROs.
Insurance- what is it?
Man has always been in search of security and protection from the beginning of
civilization. This urge in him to lead to the concept of insurance. The basis of
insurance was the sharing of the losses of a few amongst many. Insurance provides
financial stability and strength to the individuals and organization by the distribution
of loss of a few among many by many by building up over a period of time.
The legal definition of insurance is that, “it is a contract between the insurer and
insured whereby, in consideration of payment of premium by the insured the
insurer agrees to make good any financial loss the insured may suffer due to
consideration of an insurance peril.”
NATURE OF INSURANCE
Insurance means Spreading of Losses or Sharing of Risks:
Life is full of risks. For property, there are fire risks; for shipment of goods, there are
perils of sea; for human life there are risks of death or disability; so on and so forth.
The risks are uncertain-may or may not occur. People facing common risks come
together and give their small contribution to the common fund. While it may not be
possible to tell before, which persons will suffer, but it is possible to tell how many
persons on an average out of the group will suffer loss. If any case risk occurs, loss is
made good out of common fund. In this way, all shares common risk. Those who face
common risk thus broadly understand insurance as the process of spreading of losses
of an individual over the group of individuals or the process of sharing of risk. People
who suffer loss get relief because their loss is made good out of common fund. People
who do not suffer loss get relief because they are free of any worry of loss. Following
2 examples explain the above concept of insurance.
Example-1:
In a village, there are 400 houses; each valued at Rs. 20,000. Every year 4 houses get
burnt, resulting into a total loss of Rs. 80,000. If all the 400 owners come together and
contribute Rs. 200 each, the common fund would be Rs. 80,000. This is enough to pay
Rs. 20,000 to each of the 4 owners whose houses got burnt. Thus the risk of 4 owners
is spread over 400 house-owners of the village.
Example – 2:
There are 1000 persons who are all aged 50 and standard lives. It is expected that 10
persons out of the group die during the year. If the economic value of the loss suffered
by the family of each dying person is taken to be Rs. 20,000, the total loss would
work out to Rs. 20,000/-. If each person of the group contributes Rs. 200/- a year, the
Common Fund would be Rs. 2,00,000/- this would be enough to pay Rs. 20,000 to the
family of each of the ten dying persons. Thus 1000 persons share the risks in cases of
10 persons.
Classification of Insurance Business:
The insurance is broadly classif ied as
A. Life Insurance Business.
B. Non-life Insurance /General Insurance Business.
LIFE INSURANCE
AN INTRODUCTION:
What is life insurance?
Life insurance is an agreement between you (the insured) and an insurer. Under the
terms of a life insurance contract, the insurer promises to pay a certain sum to
someone (a beneficiary) when you die, in exchange for your premium payments.
Why would you need life insurance?
The most common reason for buying life insurance is to replace the income lost when
you die. For example, say that you work, and that your income is used to support
yourself and your family. When you die, and your paychecks stop, the life insurance
proceeds can be used to continue to support the family members you've left behind.
Another common use of life insurance proceeds is to pay off any debts you leave
behind. For example, mortgages, car loans, medical bills, and credit card debts are
often left unpaid when someone dies. These obligations must be paid from the assets
left behind. This can deplete the resources that your family needs. Life insurance can
be used to pay off these debts, leaving your other assets intact for your family to use.
Life insurance provides liquidity to your estate. When you die, you may leave some
liquid assets (such as cash, CDs, and savings bonds), and some illiquid assets (such as
real estate, an automobile, and stocks). Your liquid assets may not be enough to pay
all the debts that you leave behind, plus all the expenses that arise because of your
death (such as funeral expenses and estate taxes). Your illiquid assets may have to be
sold in order to meet these obligations when they come due. This may cause a
financial loss if the assets must be sold cheaply in order to get the money on time.
Life insurance can avert this situation, because the proceeds are available almost
immediately upon your death.
Life insurance creates an estate for your heirs. After your debts and expenses are paid,
there may not be much left over for your family. Life insurance can automatically
provide assets for them after your death.
Life insurance is a great way to give to charity when you die. You may have always
had a great philanthropic desire, but not the means to make it a reality. Life insurance
can do that for you.
Life insurance can be a critical component for specialized business applications, such
as funding a buy-sell agreement. Under a buy-sell agreement, life insurance can be
used to provide cash for the purchase of a deceased owner's interest in the business.
Finally, life insurance can be an investment vehicle. Some types of life insurance
policies may actually make money for you, as well as provide the benefits described
above. This can help you with long-term financial goals.
LIFE INSURANCE NEEDS AT VARIOUS LIFE STAGES
Your need for life insurance changes as your life changes. When you're young, you
typically have no need for life insurance, but this changes as you take on more
responsibility, and as your family grows. Then, as your responsibilities once again
begin to diminish, your need for life insurance drops off. Let's look at how your life
insurance needs change throughout your lifetime.
School days
Childhood is typically a time of no worries, no cares, and no responsibilities. A child
depends on others to take care of them, not the other way around. Although it would
be tragic, a child's death would likely have little financial impact on the child's family.
Thus, there is generally no need for life insurance at this point in an individual's life.
A child's death does create one short-term financial problem: funeral expenses. But
buying a life insurance policy just for that purpose doesn't really make sense. Instead,
think about saving the money you would spend on insurance premiums and open a
savings account, or put the money in some type of investment vehicle. That way, the
money can be used for college expenses or a first home, but it will also be available in
case of a tragedy. Alternatively, a burial policy provides enough money for funeral
expenses, at a much lower cost than a typical life insurance policy.
Your growing family
When you have young children, your life insurance needs reach a climax. In most any
situation, life insurance for both parents is appropriate.
Single-income families are completely dependent on the income of the breadwinner.
If he or she dies without life insurance, the consequences could be disastrous. The
death of the stay-at-home spouse would necessitate costly daycare expenses. Both
spouses should carry enough life insurance to cover the expenses that would result
from their death.
Dual-income families need life insurance, too. If one spouse dies, it is unlikely that
the surviving spouse will be able to keep up with the household expenses and pay for
childcare with the remaining income.
Moving up the ladder
For many people, career advancement means starting a new job with a new company.
At some point, you might even decide to be your own boss and start your own
business. It might not be your top priority, but it is important to review your life
insurance coverage any time you leave an employer.
Keep in mind, you probably won't be able to keep any life insurance that was
provided by your employer. If you're going to work for a new company, you might
receive a comparable life insurance benefit. But if you're going into business for
yourself, you'll need to purchase an individual life insurance policy.
Make sure the amount of your coverage is up-to-date, as well. The policy you
purchased right after you got married might not be adequate anymore, especially if
you have kids, a mortgage, and college expenses to consider. Business owners may
also have business debt to consider. If you were not incorporated, your family would
have to pay those bills if you die.
Single again
Unfortunately, divorce has become a fact of life in our society. You'll have to make
many financial decisions during this stressful time, including the decision of what to
do about your life insurance. Divorce raises both beneficiary issues and coverage
issues. And if you have children, these issues become even more complex.
If you and your spouse have no children, it may be as simple as changing the
beneficiary on your policy and adjusting your coverage to reflect your newly single
status. However, if you have kids, you'll want to make sure that they are provided for
in the event of your death. This may involve purchasing a new policy and naming
them as beneficiaries. The custodial and no custodial parent will need to work out the
details of this complicated situation. If you can't come to terms, the court may make
the decisions for you.
The golden years
Once your children are grown, your life insurance needs decrease. You'll live off your
retirement savings, and hopefully you have accumulated assets that can be passed on
to your heirs when you die. Not only is life insurance expensive at this point, but also
it's probably unnecessary.
NON-LIFE/GENERAL INSURANCE
History of general insurance:
As civilization progressed the incidence of losses started of giving rise to the concept
of loss sharing. The Aryans through their village cooperatives practiced loss of
profits insurance. Mediterranean merchants also practiced it in the century 4 th B.C.
through the issue of bottom bonds. The code of Manu indicates that there was the
practice of marine insurance carried out by the traders in India with those Srilankans,
Egypt and Greece.
The earliest transaction of insurance as practiced today can be traced back to 14 th
century A.D. in Italy when ships are only being covered.
Essential features of general insurance
All insurance contracts are governed by principles of utmost faith and proximate
cause.
Insurable interest-
A person who wants to insure must have insurable interest in the property to be
insured. The essentials of insurable interest are
There must be a property capable of being insured.
Such a property must be subject matter of insurance.
The insured should have a legal relation to the subject matter insurable interest
could arise in a number of ways such as:
1. Ownership
2. Mortgage
3. Trustee
4. Bailee
5. Lessee
In fire insurance, the insurable interest must exit throughout the contract. It must
exist:
1. At the inception i.e. while placing the property for insurance.
2. During the currency of the policy i.e. the interest should not cease during the
period of insurance.
3. At the time of loss in event of fire / accident the insured should continue to have
an interest in the property to claim the insurance money.
In marine insurance the insurable interest must exist at the loss time. It need not
necessarily be at the time of taking cover.
In case of personal accident insurance a person has unlimited financial interest on his
own life. How ever in practice suitable monetary benefits must be considered.
There will be no contact of insurance in ht e absence of insurable interest that
distinguishes from wagering contract.
Indemnity
The object of insurance is to place the insured in the same financial position as he was
just before the loss. This principle prevents the insured from making a profit out of a
loss and ensures public interest at large.
For example if a sofa is insured and then damaged the in company will see the
depreciation of the sofa having been in use by the insurer. It wills not be true
indemnity to pay the price of a new sofa as the insurer has enjoyed the benefits of a
sofa.
For a building damaged by fire the measure of indemnity cost of repairing the
building is the cost of repairs to it's prefer condition.
For machinery is destroyed by fire the market value of such a machine after taking
into consideration wear and tear and depreciation.
In marine insurance the indemnity is " in the manner and to the extent agreed" by the
insurers and the insured. It is so provided international he insurance act.
In case of personal accident insurance policy it is not possible to place a value on life
as such. Hence they are called benefit policies.
There are four methods of indemnification:
Cash payment
Repair
Replacement
Reinstatement
Subrogation:
Subrogation is a principle, which is applied to all the contracts of indemnity. It meant
that after payment of the loss the insurer gets the right of taking all steps to recover
any money in compensation from a third party.
Subrogation is the right which an insurer gets after he has indemnified the loss to step
into his shoes of the insured and avail himself of all the rights and remedies which the
insured may have against their party in respect of the loss indemnified.
Contribution:
Indemnity is also governed by the principle of contribution. The insurer is liable to
contribute proportionately loss to the extent of its interest. If a property has been
insured with more than one insurer in the event of the loss of the insured will get a
proportionate part of the loss from each insurer so that the insured does not make a
profit out of the settle claim.
Utmost good faith
In insurance contract the prepares is the only person who is deemed to have come to
know of all the facts of the subject matter of insurance and the insurer is to completely
rely on what the prepares has disclosed.
The prepares therefore should furnish all material facts concerning the property
proposed which would enable the insurance company to decide whether to accept or
reject and decide appropriate terms and rates.
The duty of disclosure of material facts continues throughout the contract and the
insured should advise the insurance company wherever change occurs in the property
insured.
He need not disclose fats of following nature:
Facts which would diminish the risk of insured peril e.g. appointing a night
watchman
Which are presumed to have known to the insurer e.g. large scale riots
Facts which are understandable from the disclosure already made
Proximate cause
Propitious is exposed to various perils like fire, earthquake war, riot etc and policies
of insurance covering various combinations of such perils can be procured.
The insurers liability only rises only if the causes are not mentioned in the perils or
excluded.
The contract of insurance
It is a legal agreement between two parities and has to comply with the provisions of
the Indian contract act of 1872. Contracts must have the following five essential
elements so it can be enforced:
Offer and acceptance- the person who wants to take up cover against particular
peril offers his risk through a proposal form to the insurance company and not
accepts the risk.
Consideration- the premium paid is the consideration and on receipts of the
premium by the insurance company the contract into force.
Mutual consent ad idem- there should be a complete and unbiased agreement
between the insurer and in insured regarding the terms of the contract. The
intention of the insured should have been clearly understood by the insurance
company and vice versa.
Capacity to contract to the parties- both the parties must be legally competent to
enter into an agreement. An agreement with a mentally unsound person is not a
valid contract. So also an agreement with minor insolvent and foreigner is not a
valid contract.
The paper work
Paper work on different policies differs from policy from policy. It is not possible
to mention formatives of all the policies.
Paperwork in case of motor vehicles is as follows –
Name and address of the insured.
Agents code number.
Particulars of the vehicle.
Engine, chassis, registration number.
Model of the vehicle.
Period of insurance.
Amount insured.
Conditions of the policy.
Amount of premium. Etc.
Before issuing a policy a proposal form has to be signed by the insurer, which
contains the basis of the contract.
Surveyor - his job, his background, the requirement for appointing a surveyor
A surveyor’s job is to access the loss cause due to the clause mentioned in the
insurance policy. In case of any loss a surveyor is deputed to ascertain the loss.
A person has to have a professional qualification to be a surveyor, mostly: -
For motor vehicle – mechanical engineer
For fire insurance etc. – charted accountant
A person having the above qualification can get a certificate as a surveyor from the
Controller of Insurance by passing through a proper screening process. The fees of
surveyor licensee is Rs.250 only
For assigning the losses both kinds of surveyors have to work hand in hand. The
mechanical engineer assesses the technical claims and charted accountant assesses the
accounts part of the claim.
Chapter – 2
COMPANY PROFILEAbout Us
Bajaj Allianz Life Insurance Company Limited
Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest
Insurance Company and Bajaj Finserv.
Allianz SE is a leading insurance conglomerate globally and one of the largest asset
managers in the world, managing assets worth over a Trillion (Over INR. 55, 00,000
Crores). Allianz SE has over 119 years of financial experience and is present in over
70 countries around the world.
At Bajaj Allianz Life Insurance, customer delight is our guiding principle. Our
business philosophy is to ensure excellent insurance and investment solutions by
offering customised products, supported by the best technology.
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj
Auto Limited and Allianz SE. Both enjoy a reputation of expertise, stability and
strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and Development
Authority (IRDA) certificate of Registration (R3) on May 2nd, 2008 to conduct
General Insurance business (including Health Insurance business) in India. The
Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds
74% and the remaining 26% is held by Allianz, SE.
As on 31st March 2009 Bajaj Allianz General Insurance maintained its premier
position in the industry by garnering a premium income of Rs.1803 crore. Bajaj
Allianz has made a profit before taxes of Rs.117 crore and emerged as the first private
insurance company to make profit before taxes of more than Rs.100 crores. The
company also was the one of the highest profitable insurer among private insurance
companies and made a profit after tax of Rs.75 crores. Bajaj Allianz is the only
company to make underwriting profits for the last three years consecutively.
For more details on a summary of our financials, please click here.
For a copy of our Annual Report 2008-2009, Please click here.
Bajaj Allianz today has a network presence in over 200 towns spread across the length
and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram,
all the offices are interconnected with the Head Office at Pune.
In the first quarter of the current financial year, 2009-10, Bajaj Allianz garnered a
premium income of Rs. 574 crores, achieving a growth of 27% over the last year for
the same period and Net profits rose to Rs.21 Crores.
Vision
To be the first choice insurer for customers
To be the preferred employer for staff in the insurance industry.
To be the number one insurer for creating shareholder value
Mission
As a responsible, customer focused market leader, we will strive to understand the
insurance needs of the consumers and translate it into affordable products that deliver
value for money.
A Partnership Based on Synergy
Bajaj Allianz General Insurance offers technical excellence in all areas of General and
Health Insurance as well as Risk Management. This partnership successfully
combines Bajaj Auto's in-depth understanding of the local market and extensive
distribution network with the global experience and technical expertise of the Allianz
Group. As a registered Indian Insurance Company and a capital base of Rs. 110
crores, the company is fully licensed to underwrite all lines of general insurance
business including health insurance.
Our Achievements
Bajaj Allianz has received "iAAA rating, from ICRA Limited, an associate of
Moody's Investors Services, for Claims Paying Ability.This rating indicates highest
claims paying ability and a fundamentally strong position.
History of AllianzDocumenting and researching its corporate history is part and
parcel of Allianz's corporate culture.The Allianz Center for Corporate History devotes
itself to these tasks. As a frequently used information center, it has evolved into the
company's "living memory".
Facts & Figures
The Allianz Group is one of the leading global services providers in insurance,
banking and asset management. With approximately 173,000 employees worldwide
(as of June 30, 2009), the Allianz Group serves more than 70 million customers in
about 70 countries. On the insurance side, Allianz is the market leader in the German
market and has a strong international presence.
In fiscal 2008 the Allianz Group achieved total revenues of over 101 billion euros.
Allianz is also one of the world’s largest asset managers, with third-party assets of
764 billion euros under management at year end 2008.
Strategy & Values
Program "3+One"
Program "3+One"
With its overall "3+One" program, Allianz is pursuing four important goals.Allianz's
3+One program was introduced in December 2003 to promote our business model
and achieve sustainable and profitable growth. Since then, we have made significant
progress in
1. protecting and enhancing the capital base,
2. substantially strengthening the operating profitability, and
3. reducing complexity.
These efforts have become an integral part of our daily business and a lot of progress
has been made towards increasing our sustainable competitiveness and value - the
+One component of the program. 1. Protect and enhance capital base
Sufficient risk capital is essential if Allianz is to remain a reliable partner for our
clients. Capital reserves are also an essential factor in acquiring a good rating, which
is key to gaining the trust of investors and customers.
Today, Allianz has a sound capital base and sophisticated risk control in place. This
has been achieved through measures, such as increasing our risk capital surplus,
establishing a group-wide risk management system and improving our investment
portfolio structure, for example, by reducing our equity exposure and investing into a
broader range of European companies as well as private equity. 2. Substantially
strengthen operating profitability One clear objective of Allianz is to be profitable -
through the operative business alone, in order to be as independent as possible from
the prevailing economic situation and influences of the capital market. Every business
unit and every Group company is committed to operational excellence, operating in a
professional and customer-oriented manner, and leading the competition.
Allianz's Sustainability Program in P/C and life insurance are helping to turn best
practice into common practice within the Group. Further measures to strengthen
profitability include maintaining cost discipline through streamlining of processes,
enhancing underwriting quality and consistent risk selection. Also, turnaround cases
at Fireman's Fund, Allianz Global Corporate & Specialty, AGF and Dresdner Bank
have been successfully concluded. 3. Reduce complexity
Only companies with a clear structure and efficient operational processes are
sufficiently flexible to react quickly to the fast-moving market conditions and to
respond to changes in customer requirements - further prerequisites for profitable
growth. Since the launch of the 3+One program, Allianz has therefore focused on core
activities, on reducing structural inefficiencies and on streamlining processes and the
product range.
In September 2007, we announced our repositioning in Europe. The corresponding
"Euroefficiency" measures include the merger of RAS into Allianz, the conversion
into a European Company SE, and the streamlining of European insurance operations.
In Germany, we are simplifying our insurance operations as well as Dresdner Bank's
structures. One: Increase sustainable competitiveness and value
In a joint effort with its operating units, Allianz has made considerable progress on
the first three components of the 3+One program. Business is back on a solid footing.
However, the work on strengthening the capital base, increasing profitability and
reducing complexity continues.
Today, Allianz is focused on driving forward the +One part of the program which
aims at increasing sustainable competitiveness and value. +One initiatives include
Customer Focus, Sustainability, Leadership Values, and Global Brand and
Communication. The definition of Growth Markets (China, Russia and India) and the
systematic exploration of future growth areas are examples of measures to secure
long-term value.
With its overall "3+One" program, Allianz is pursuing four important goals.
Leadership Values
The Leadership Values are meant to give orientation to managers for their business
planning and operative implementation of the "3+One" program.
Leadership Values
The Leadership Values are meant to give orientation to managers for their business
planning and operative implementation of the "3+One" program.The Leadership
Values were introduced to raise the quality of leadership and accelerate the
development of a high performance culture at Allianz, ensuring that leaders share a
mutual understanding of our basic aims. They convey to every manager in the Group
a clear framework linking business targets and desired leadership behavior.
Cultural transformation through the Leadership Values will help us to communicate
openly and create an atmosphere of trust with both clients and employees. This will
provide the leadership needed to drive our strategic objectives.Align strategy and
communication
We work together to deliver a consistent business strategy. One of our main
responsibilities is to communicate this strategy to all our stakeholders.Promote a high
performance culture
We set and agree on clear targets which are aligned with our strategy. We provide
feedback and coaching to our employees to encourage and reward exceptional
performance. Focus on our customers
We ensure a relentless focus on our customers. We develop and grow strong customer
relationships and seek to achieve profitable growth and thereby increase shareholder
value. This requires us to deliver excellence in all our products, operations, processes
and behaviors. Develop our employees
We invest in our employees. We select and develop potential according to high
standards. We leverage diversity and encourage a culture that respects, values and
benefits from different backgrounds and perspectives. We are transparent in the way
we create career opportunities based on personal achievements and capabilities. We
want to be an employer of choice.Build on mutual trust and feedback
We build our success on mutual trust, fairness, integrity, and clear and open
communication. We encourage employees to innovate, identify business
opportunities, share knowledge and ideas, and provide constructive feedback.
Company Structure
An overview of the regions we are operating in is set up below. The links at the end of
each paragraph direct you to the tables of our operating subsidiaries (by geographic
region including our ownership percentage as per 31 December 2008). Western and
Southern Europe
Europe is our home market. We consider property-casualty insurance in the region to
be rather saturated. In life/health insurance, we see the characteristics of aging
societies and their rising need for private retirement provision products and additional
health insurance coverage as a growth opportunity.
Western and Southern Europe
New Europe
New Europe – We are committed to a region in transition: We are established in the
most important insurance markets in the region and have leading market positions.
New Europe offers substantial opportunities across all lines of business alongside
rising living standards.
New Europe
North and South America
The Americas – We are well-positioned in the United States, the largest insurance
market of the world. Overall, our American operations take place in attractive
markets.
North and South America
Asia Pacific / Africa
Asia-Pacific is the Allianz Group’s largest emerging region. Many markets in this part
of the world are characterized by high growth rates.
>Asia Pacific / Africa
Board of Management
The Board of Management is the sole management body of the company.As part of
Allianz AG’s conversion to Allianz SE the existing two-tier system consisting of a
Board of Management and a Supervisory Board has been retained. The Board of
Management is solely responsible for the management of the company, while the
Supervisory Board has a monitoring and advisory function.
The members of the Board of Management are collectively responsible for managing
the company. The tasks of the Board of Management are coordinated by its chairman.
The Supervisory Board is responsible for the appointment, advice, control and
dismissal of the Management Board members.
The Board of Management of Allianz SE currently is made up of eleven members.
Chairman of the Board of Management is Michael Diekmann.
Supervisory Board
The Supervisory Board appoints, supervises and advises the company's Board of
Management.In addition to its supervisory function, the Supervisory Board is
responsible for providing advice to the Board of Management. The Supervisory Board
is directly involved in decisions of essential importance to the company. However, it
does not assume any executive tasks. One of its key responsibilities is the
appointment and dismissal of members of the Board of Management. Furthermore,
the Supervisory Board is responsible for appointing the auditor for German insurance
companies. The work of the Supervisory Board is coordinated by its chairman.
The Supervisory Board of Allianz SE consists of twelve members divided equally into
six shareholder representatives and six employee representatives. In accordance with
the SE regulations, the Chairman of the Supervisory Board must be a shareholder
representative. Mr Henning Schulte-Noelle has been elected Chairman. The vice-
chairpersons of the Supervisory Board are Mr Gerhard Cromme and Ms Claudia
Eggert-
International Executive Committee
The International Executive Committee includes all members of Allianz SE's Board
of Management and heads of major Allianz subsidiaries. Chaired by Michael
Diekmann, this body discusses overall strategic issues for the Allianz Group.
International Executive Committee
Michael Diekmann Chairman, Allianz AG Germany
Paul Achleitner Allianz SE Germany
Gary C. Bhojwani Allianz Life Insurance Company of North America USA
Clement Booth Allianz SE Germany
Jan R. Carendi Allianz SE Germany
Markus Rieß Allianz Deutschland AG / Sales Organization Germany
Enrico Cucchiani Allianz SE Germany
Joachim Faber Allianz SE Germany
Charles Kavitsky Allianz of America USA
Manfred Knof Allianz Suisse Switzerland
Wolfram Littich Allianz Elementar Versicherungs AG Austria
Helmut Perlet Allianz SE Germany
Thomas Pleines Allianz Deutschland AG / Allianz Versicherungs-AG Germany
Markus Rieß Allianz Deutschland AG / Allianz Private
Krankenversicherungs-AG
Germany
Ulrich Rumm Allianz Deutschland AG / Allianz Private
Krankenversicherungs-AG
Germany
Gerhard Rupprecht Allianz SE Germany
Vincente Tardio Allianz, Compania de Seguros y Reaseguros, SA Spain
Barutel
Axel Theis Allianz Global Corporate & Specialty Germany
Jean-Philippe
Thierry
Allianz SE Germany
William S.
Thompson
PIMCO (Pacific Investment Management Company) USA
Andrew Torrance Allianz Cornhill Insurance PLC UK
Terry Towell Allianz Australia Ltd. Australia
Herbert Walter Allianz SE Germany
Werner Zedelius Allianz SE Germany
Maximilian
Zimmerer
Allianz Deutschland AG / Allianz
Lebensversicherungs-AG
Germany
Last update: 09-2009
International Advisory Board and Joint Advisory Council
The International Advisory Board and the Joint Advisory Council of the Allianz
Companies consist of members from various fields and industries.
International Advisory Board
Dr. Jürgen Hambrecht Chairman of the Board of Executive
Directors, BASF AG
Germany
Khalifa Al-Kindi Deputy Managing Director,
Abu Dhabi Investment Authority
United Arab
Emirates
Donald R. Argus AO Chairman, BHP Billiton Group Australia
Belmiro de Azevedo Presidente, Sonae SGPS SA Portugal
Alfonso Cortina de Alcocer Chairman, Repsol YPF Foundation Spain
Angel Ron Güimil Chairman, Banco Popular Español Spain
Rahmi Koç Honorary Chairman Board of Directors,
Koç Holding AS
Turkey
Aarnout Loudon Retired Netherlands
Minoru Makihara Senior Corporate Advisor, Mitsubishi
Corporation
Japan
Jaques A. Nasser Senior Partner, One Equity Partners USA
LLC
James W. Owens Chairman and CEO, Caterpillar Inc. USA
Dr. Marco Tronchetti
Provera
Chairman and CEO, Pirelli SpA Italy
Dr. Gianfelice Rocca Chairman, Techint Group Italy
Anthony Salim President and CEO, Salim Group Indonesia
Louis Schweitzer Chairman, Renault SA France
Peter Sutherland Chairman, BP PLC United Kingdom
Iain Vallance (Lord
Vallance of Tummel)
Chairman, Amsphere Ltd United Kingdom
Lorenzo H. Zambrano Chairman and CEO, CEMEX Mexico
Joint Advisory Council of the Allianz Companies
Dr. Henning Schulte-Noelle Chairman Supervisory Board, Allianz SE
Professor Dr. Bernd Gottschalk President, German Association of the Automotive
Industry
Professor Dr. Peter Gruss President, Max Planck Society
Herbert Hainer Chairman, adidas AG
Dr. Jürgen Hambrecht Chairman, BASF AG
Prof. Dr. h.c. Hans-Olaf Henkel Senior Advisor, Bank of America
Dr. Jürgen Heraeus Chairman Supervisory Board, Heraeus Holding
GmbH
Dr. Dieter Hundt, Honarary
Senator
Managing Partner, Allgaier Werke GmbH
Dr. Hans-Peter Keitel Chairman, Hochtief AG
Dr. Hartmut Mehdorn Chairman, Deutsche Bahn AG
Dr. h.c. Bernd Pischetsrieder Chairman, Volkswagen AG
Professor Dr. Klaus Pohle Until April 2008 German Accounting Standards
Committee
Dr.-Ing. Norbert Reithofer Chairman, BMW Group
Harry Roels Chairman, RWE AG
Dr. h.c. Walter Scheel Former President of the Federal Republic of
Germany
Dr. Manfred Schneider Chairman Supervisory Board, Bayer AG
Professor Dr. Dennis J. Snower President, The Kiel Institute for the World Economy
Holger Strait Managing Partner, J. G. Niederegger GmbH & Co.
KG
Dr. h.c. Heinrich Weiss Chairman Managing Board, SMS GmbH
Manfred Wennemer Chairman, Continental AG
Our Employees
The number of Allianz employees worldwide was 173,215 on June 30, 2009. Each
employee's commitment contributes to the satisfaction of our customers, and thus to
the long-term success of Allianz.The working environment at Allianz is currently
changing from a former focus on careers in one business line and country to a
working environment which is characterized by a high performance culture, increased
internationalization and intensified cooperation across operational divisions. Cross-
border and cross-functional careers
In addition to the benefits of a large enterprise, we offer ample career opportunities,
challenging projects and international assignments in the dynamic insurance and
financial services fields. Experts from a wide range of companies, functions and
countries are participating in the project teams which are responsible to develop the
best solutions to drive the strategic initiatives of Allianz Group. Thousands more are
involved in the implementation process.
We promote cooperation between employees of different cultural origins and those of
different ages, levels of experience and abilities. We believe diversity is the ideal way
to boost our capacity for innovation and find viable solutions to varied and constantly
changing markets. This is also why we support the international mobility of our staff
and managers.
Between 2004 and 2008, the number of international assignments within Allianz
Group rose by just over 19 percent per annum: The number of employees from Group
companies working at head office grew by 29 percent p.a.; and the number of
expatriates worldwide by 14 percent.Emphasis on qualification programs
In order to develop and use our employees' expertise more effectively, Allianz
attaches great importance to educational opportunities for employees and to sharing
ideas and experiences through inter-company relationships. New group-wide
standards in Operational Excellence (OPEX) were introduced with the so-called Black
Belt Program. This program which one percent of the global workforce will pass
through trains managers and experts as certified change managers using the OPEX
method which is based on the Six Sigma approach.
Another platform for international collaboration and exchange is our corporate
university, Allianz Management Institute (AMI). It offers the expertise and
leadership-oriented, management qualification for the Allianz Group. At AMI, we
work with renowned universities and research centers to transfer the latest in research
and know-how to our management teams. The program is complemented by a wide
range of qualification opportunities for all levels of employment.Employee incentives
Our remuneration systems are geared towards offering both managers and staff
incentives for implementing the Allianz Group’s business strategy in a targeted and
efficient manner, and to contribute to our performance culture. We determine the
variable components of salary by agreeing individual targets and then monitoring
whether these have been met. In recent years we have steadily expanded the
proportion of variable salary components on all levels, 29 percent of the total
payments made by the Group was performance-related in 2008.
Total payments made by the Group to its employees worldwide amounted to 10.2
billion euros in 2008. Social security contributions, pensions and other additional
employee benefits amounted to 2.7 billion euros.
As an additional incentive to contribute to the Allianz Group’s performance, an
employee stock purchase offer was again launched in 2008. This gave 124,000
employees in 22 countries the opportunity to acquire Allianz SE shares on preferential
terms.Employee representation in a Societas Europaea (SE)
The Supervisory Board of Allianz SE consists of twelve members, giving equal
representation to the shareholders and to employees. The employee representatives
come from different European countries: four from Germany and one each from
France and the UK. In the first pan-European SE Staff Council, 37 members from 24
countries represent the interests of employees.
Property & Casualty Insurance
Private Customers
In order to safeguard your life's achievements, it is essential to protect your property
and ensure your personal safety. Allianz offers a wide range of private insurance
solutions that can provide you with security and peace of mind. Get an overview of
what we can do for you. >more... Business Customers
To be successful in your business, you need financial stability and risk protection.
Allianz offers property and casualty insurance for all businesses and industries - from
small and mid-size companies to large corporations - and from agriculture through
service provision to industrial output. In response to today's ever-changing
marketplace, our specialists worldwide are working together to develop the best
solutions in insurance and risk management.
Unit Linked Insurance Plans
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.
Pension Plans
We at Bajaj Allianz Life Insurance offer Pension 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.
Traditional Plans
Saving Plans that offer bonus are completely safe and are ideal for long term
investments. Our products offer additional benefits including 4 times life cover at
little extra costs, limited premium payment terms and compounded reversionary
bonuses. These features make our traditional plans excellent long term saving
instruments.
Endowment Money Back
Invest Gain
Save Care Economy SP
Life Time Care
Super Saver
Super CashGain Insurance Plan
Child Gain
Child Gain
Term Plans
The sole objective of Term plans is to serve the protection needs of the customers and
by doing so, safeguard one's family from the financial implications of unfortunate
circumstances that one cannot foresee.
These plans are pure risk cover plans with or without maturity benefit. These pure risk
plans cover your life at a nominal cost and you may want to take this plan to cover
your outstanding debts like a mortgage, a home loan etc.
Protector
Term Care
New Risk Care II
Products For House Wives Download Brochure
Housewives need to safeguard their financial independence. Our additional benefits
like Mahila Gain have special features for women which offers:
Critical Illness Benefits
Reconstructive Surgery Benefits for Breast(s) due to Breast Cancer
Congenital Disability Benefits
Complications of Pregnancy Benefits
Women Insurance Need Analyzer
Bajaj Allianz Life Insurance Co Ltd is a unique joint venture among the global giants
Allianz Group (AG) and Bajaj Auto. Allianz AG's world ranking establishes it among
the top insurance companies in the world. Bajaj is the biggest two and three wheeler
manufacturer in the world. Bajaj Allianz Life Insurance Company boasts of a
nationwide presence with 876 offices and over 4 million satisfied customers. The
various insurance products include
Individuals Plans
Unit Gain Insurances
Term Care Plans
Lifetime Care Insurance Policy
Business Insurance Policies
Savings And Security Policies For You And Your Family
Rural Insurance Plan
Healthcare Insurance
Financial Insurance
Pension Plus
Retirement Plans
Children's Policies
Endowment Plans and many more.
Group Insurance Schemes
Insurance For Employee-Employer Groups
Insurance For Non-Employer - Employee Groups
Employees Deposit Linked Insurance
New Group Superannuation Scheme
New Group Gratuity Care Scheme
Special Insurance Policies for NRI's
Investgain Endowment Plan
Cashgain Money Back Plan
·Childgain Kids Special Plan
Swarna Vishranthi
Chapter – 3
LITERATURE REVIEWYour Plans, Your Dreams & Their Future: The Essence of Life Insurance
Your family counts on you every day for financial support: food, shelter,
transportation, education, and much more. You and your spouse have plans for your
future and dreams for your family: another child, a bigger home, a new business,
college education, travel, and retirement… Life insurance is all about making sure
your family has adequate financial resources to make those plans and dreams come
true, if you were to die prematurely. And just as your spouse and children (as
beneficiaries) count on you, you count on your spouse. That's why coverage for your
spouse is also important. If he or she were to die unexpectedly, you would feel similar
financial strains. This is especially true today, with so many "double income”
families.
The answer, of course, is right now! Since no one can tell when is the best time to
invest, it is whenever you have the money! One should first invest in any plans for
which tax-deductible contributions can be made because these types of savings reduce
current taxes. Then, any more surplus funds should be invested in a variable annuity,
especially in equities so as to get the maximum growth of the capital.
The function of insurance is to protect you against losses you can't afford.
Transferring the risks of a person, business, or organization --(the insured) -- to an
insurance company, or “insurer” does this. The insurer then reimburses the insured for
"covered" losses -- i.e., those losses it pays for under the policy's terms.
As the insurance consumer, you pay an amount of money, called a premium, to the
insurer to transfer the risk. The insurer pools all its premiums into a large fund, and
when a policyholder has a loss, the insurer draws funds from the pool to pay for the
loss. Life is full of unexpected events that can create large financial losses. For
example, whenever you drive, it is possible that you may have a costly accident. Risks
affect you by causing worry about potential loss and how to deal with the
consequences. Insurance reduces anxiety over a possible loss and absorbs the
financial brunt of its consequences. However, while insurance coverage is essential,
how much and what type of insurance people need differ with each individual. You
must decide how much risk you're willing to tolerate without insurance. For example,
benefits for disability policies typically begin after a waiting period of one to six
months. Therefore, you should ensure that you have some form of coverage or
financial resources before the policy period begins.
Since insurance can be expensive, it makes sense to get more than one price quote for
coverage. At one time, we in India had no option but the nationalized insurance
companies like LIC, GIC, etc. Now several private players, often with foreign tie-ups,
are entering the fray. There are now several companies selling any one type of
insurance, each with its own price structures, coverage, and policy exclusions. To help
consumers choose among the various types of coverage’s, companies train sales
representatives in the technical points of their insurance products. Many
representatives work for just one insurance company. There are also brokers and
independent agents -- self-employed business people who sell insurance on
commission for several insurers -- who claim they can comparison-shop to get the
best coverage’s for consumers. Certain banks also sell insurance.
With multiple players in the life insurance field now, a choice should be first made
regarding the insurance company before choosing an agent. To determine a
company's willingness to pay claims, ask a policyholder who has filed several claims.
Obviously, the more claims an insurer has handled with no complaints, the more
likely that the company will provide you with good service. Barring LIC, the
remaining players in life insurance are still new in the field, so this kind of
information will not be available for another few years at the least. It remains to be
seen how the newer players will perform on the claims front, but given the regulatory
framework and their strong parentage, their performance should be comparable, if not
better than LIC.
It is quite imperative that your insurance agent be competent and professional enough
to clearly understand your insurance requirements and suggest a suitable scheme.
Also, with insurance companies offering varying rate of commissions on different
schemes, there is a likelihood that a 'not-so-professional' agent may be tempted to
recommend a scheme which pays him a higher commission, though it may not be
very suitable for your needs. This is especially so in the case of LIC, sole provider of
life insurance in our country till recently, where the eligibility criteria are not very
rigorous and very often the level of knowledge and competence of the agents leave a
lot to be desired. The new players seem to be much more stringent in appointing
agents and more committed in providing training to them. In today's context,
especially in case of LIC, it may be advisable to go in for an agent who comes
recommended from one of your friends, relatives or associates. Further, the agent
should be able to provide you with a comparison of multiple schemes and also explain
them in simple terms, so that you are able to make an informed decision. In case an
agent is not inclined to spend the time and resources to provide you with relevant
information and solve your queries, it may be better to give a go-by to such a person
and start looking for a new agent. The market is becoming increasingly competitive
and it should not be a difficult task to find a good agent.
THE INSURANCE SECTOR- An overview
The insurance sector has a long history in India. It began in the early years of the 19 th
century. The first legal enactment was made in 1870. The first Indian Insurance Act
was passed in 1938 and amended in 1950, when it was nationalized. However, the
sector was once again thrown open to the private sector in December2010, followed
by the establishment of the Insurance Regulatory and Development Authority (IRDA)
in April 2010.
Though the Insurance Sector is now being opened up for private players as a
consequence of the new liberalization policies of the Government, the existing
government owned Insurance companies will, nevertheless, continue to be in the
government sector. These existing companies will, however, have to strive for better
realization of their corporate objectives and goals to meet the demands and
expectations of the public.
Quality of service and product that an industry offers must move forward with
progress in the state of the economy. As the quantum and quality of service change
over time, the levels at which customers continue to remain satisfied with the services
provided, also keep on increasing. Ultimately, the success of any industry depends
upon its positioning in the state of economy and on meeting the expectations of the
service users.
With competition, the performance level of individual companies is expected to
increase. Segmentation is taking place within the economy with a need for socially
responsive service sector.
Globalization is the new economic reality, which is here to stay, heralding a new era
of insurance in India. With the opening of the insurance industry, India stands to gain
with the following major advantages:
Globalization will provide improved opportunities to the customer for better
products, with more reasonable and affordable pricing.
The customer will get quicker servicing
It will enhance the savings rate
Long-term funds for infrastructure development will be available to the Country.
It will secure for India larger inflows of foreign capital needed to sustain our
GDP growth.
The opportunities for insurance in India
Only 25% of the insurable population has been extended cover. Market
penetration is low and potential to exploit is high.
Insurance premium per capita is very low ($4)
Lack of a comprehensive social security system/state benefit and welfare means
that demand for pension products should be high.
Huge middle class of approximately 300 million.
Existing insurance companies score low on the customer service front.
With steadily increasing corporate asset values, need for insurance is on the rise.
Competition can help ensure the best products with better services.
NON-LIFE/GENERAL INSURANCE
History of general insurance:
As civilization progressed the incidence of losses started of giving rise to the concept
of loss sharing. The Aryans through their village cooperatives practiced loss of
profits insurance. Mediterranean merchants also practiced it in the century 4 th B.C.
through the issue of bottom bonds. The code of Manu indicates that there was the
practice of marine insurance carried out by the traders in India with those Srilankans,
Egypt and Greece.
The earliest transaction of insurance as practiced today can be traced back to 14 th
century A.D. in Italy when ships are only being covered.
Essential features of general insurance
All insurance contracts are governed by principles of utmost faith and proximate
cause.
Insurable interest-
A person who wants to insure must have insurable interest in the property to be
insured. The essentials of insurable interest are
There must be a property capable of being insured.
Such a property must be subject matter of insurance.
The insured should have a legal relation to the subject matter insurable interest
could arise in a number of ways such as:
6. Ownership
7. Mortgage
8. Trustee
9. Bailee
10. Lessee
In fire insurance, the insurable interest must exit throughout the contract. It must
exist:
4. At the inception i.e. while placing the property for insurance.
5. During the currency of the policy i.e. the interest should not cease during the
period of insurance.
6. At the time of loss in event of fire / accident the insured should continue to have
an interest in the property to claim the insurance money.
In marine insurance the insurable interest must exist at the loss time. It need not
necessarily be at the time of taking cover.
In case of personal accident insurance a person has unlimited financial interest on his
own life. How ever in practice suitable monetary benefits must be considered.
There will be no contact of insurance in ht e absence of insurable interest that
distinguishes from wagering contract.
Indemnity
The object of insurance is to place the insured in the same financial position as he was
just before the loss. This principle prevents the insured from making a profit out of a
loss and ensures public interest at large.
For example if a sofa is insured and then damaged the in company will see the
depreciation of the sofa having been in use by the insurer. It wills not be true
indemnity to pay the price of a new sofa as the insurer has enjoyed the benefits of a
sofa.
For a building damaged by fire the measure of indemnity cost of repairing the
building is the cost of repairs to it's prefer condition.
For machinery is destroyed by fire the market value of such a machine after
taking into consideration wear and tear and depreciation.
In marine insurance the indemnity is " in the manner and to the extent agreed" by the
insurers and the insured. It is so provided international he insurance act.
In case of personal accident insurance policy it is not possible to place a value on life
as such. Hence they are called benefit policies.
There are four methods of indemnification:
Cash payment
Repair
Replacement
Reinstatement
Subrogation:
Subrogation is a principle, which is applied to all the contracts of indemnity. It meant
that after payment of the loss the insurer gets the right of taking all steps to recover
any money in compensation from a third party.
Subrogation is the right which an insurer gets after he has indemnified the loss to step
into his shoes of the insured and avail himself of all the rights and remedies which the
insured may have against their party in respect of the loss indemnified.
Contribution:
Indemnity is also governed by the principle of contribution. The insurer is liable to
contribute proportionately loss to the extent of its interest. If a property has been
insured with more than one insurer in the event of the loss of the insured will get a
proportionate part of the loss from each insurer so that the insured does not make a
profit out of the settle claim.
Utmost good faith
In insurance contract the prepares is the only person who is deemed to have come to
know of all the facts of the subject matter of insurance and the insurer is to completely
rely on what the prepares has disclosed.
The prepares therefore should furnish all material facts concerning the property
proposed which would enable the insurance company to decide whether to accept or
reject and decide appropriate terms and rates.
The duty of disclosure of material facts continues throughout the contract and the
insured should advise the insurance company wherever change occurs in the property
insured.
He need not disclose fats of following nature:
Facts which would diminish the risk of insured peril e.g. appointing a night
watchman
Which are presumed to have known to the insurer e.g. large scale riots
Facts which are understandable from the disclosure already made
Proximate cause
Propitious is exposed to various perils like fire, earthquake war, riot etc and policies
of insurance covering various combinations of such perils can be procured.
The insurers liability only rises only if the causes are not mentioned in the perils or
excluded.
The contract of insurance
It is a legal agreement between two parities and has to comply with the provisions of
the Indian contract act of 1872. Contracts must have the following five essential
elements so it can be enforced:
Offer and acceptance- the person who wants to take up cover against particular
peril offers his risk through a proposal form to the insurance company and not
accepts the risk.
Consideration- the premium paid is the consideration and on receipts of the
premium by the insurance company the contract into force.
Mutual consent ad idem- there should be a complete and unbiased agreement
between the insurer and in insured regarding the terms of the contract. The
intention of the insured should have been clearly understood by the insurance
company and vice versa.
Capacity to contract to the parties- both the parties must be legally competent to
enter into an agreement. An agreement with a mentally unsound person is not a
valid contract. So also an agreement with minor insolvent and foreigner is not a
valid contract.
The paper work
Paper work on different policies differs from policy from policy. It is not possible
to mention formatives of all the policies.
Paperwork in case of motor vehicles is as follows –
Name and address of the insured.
Agents code number.
Particulars of the vehicle.
Engine, chassis, registration number.
Model of the vehicle.
Period of insurance.
Amount insured.
Conditions of the policy.
Amount of premium. Etc.
Before issuing a policy a proposal form has to be signed by the insurer, which
contains the basis of the contract.
Surveyor - his job, his background, the requirement for appointing a surveyor
A surveyor’s job is to access the loss cause due to the clause mentioned in the
insurance policy. In case of any loss a surveyor is deputed to ascertain the loss.
A person has to have a professional qualification to be a surveyor, mostly: -
For motor vehicle – mechanical engineer
For fire insurance etc. – charted accountant
A person having the above qualification can get a certificate as a surveyor from the
Controller of Insurance by passing through a proper screening process. The fees of
surveyor licensee is Rs.250 only
For assigning the losses both kinds of surveyors have to work hand in hand. The
mechanical engineer assesses the technical claims and charted accountant assesses the
accounts part of the claim.
State Insurers Continue To Dominate There may be room for many more
players in a large underinsured market like India with a population of over one
billion. But the reality is that the intense competition in the last five years has made it
difficult for new entrants to keep pace with the leaders and thereby failing to make
any impact in the market. Also as the private sector controls over 26.18% of the life
insurance market and over
26.53% of the non-life market, the public sector companies still call the shots.
The country’s largest life insurer, Life Insurance Corporation of India (LIC), had a
share
of 74.82% in new business premium income in November 2005.
Similarly, the four public-sector non-life insurers – New India Assurance, National
Insurance, Oriental Insurance and United India Insurance – had a combined market
share of 73.47% as of October 2005. ICICI Prudential Life Insurance Company
continues to lead the private sector with a 7.26% market share in terms of fresh
premium, whereas ICICI Lombard General Insurance Company is the leader among
the private non-life players with a 8.11% market share. ICICI Lombard has focused
on growing the market for general insurance products and increasing penetration
within existing customers through product innovation and distribution.
Reaching Out To Customers No doubt, the customer profile in the insurance industry
is changing with the introduction of large number of divergent intermediaries such as
brokers, corporate agents, and bancassurance.
The industry now deals with customers who know what they want and when, and are
more demanding in terms of better service and speedier responses. With the industry
all set to move to a detariffed regime by 2007, there will be considerable
improvement in customer service levels, product innovation and newer standards of
underwriting.
Intense Competition In a de-tariffed environment, competition will manifest itself
in prices, products, underwriting criteria, innovative sales methods and
creditworthiness. Insurance companies will vie with each other to capture market
share through better pricing and client segmentation.
The battle has so far been fought in the big urban cities, but in the next few years,
increased competition will drive insurers to rural and semi-urban markets.
Global Standards While the world is eyeing India for growth and expansion, Indian
companies are becoming increasingly world class. Take the case of LIC, which has
set its sight on becoming a major global player following a Rs280-crore investment
from the Indian government. The company now operates in Mauritius, Fiji, the UK,
Sri Lanka, and Nepal and will soon start operations in Saudi Arabia. It also plans to
venture into the African and Asia-Pacific regions in 2006.
The year 2005 was a testing phase for the general insurance industry with a series of
catastrophes hitting the Indian sub-continent. However, with robust reinsurance
programs in place, insurers have successfully managed to tide over the crisis without
any adverse impact on their balance sheets.
With life insurance premiums being just 2.5% of GDP and general insurance
premiums being 0.65% of GDP, the opportunities in the Indian market place is
immense. The next five years will be challenging but those that can build scale and
market share will survive and prosper.
OBJECTIVES OF BAJAJ LIFE INSURANCE
Spread Life Insurance much more widely and in particular to the rural areas
and to the socially and economically backward classes with a view to reaching
all insurable persons in the country and providing them adequate financial
cover against death at a reasonable cost.
Maximize mobilization of people's savings by making insurance-linked
savings adequately attractive.
Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the best
advantage of the investors as well as the community as a whole, keeping in
view national priorities and obligations of attractive return.
Conduct business with utmost economy and with the full realization that the
moneys belong to the policyholders.
Act as trustees of the insured public in their individual and collective
capacities.
Meet the various life insurance needs of the community that would arise in the
changing social and economic environment.
Involve all people working in the Corporation to the best of their capability in
furthering the interests of the insured public by providing efficient service
with courtesy.
Promote amongst all agents and employees of the Corporation a sense of
participation, pride and job satisfaction through discharge of their duties with
dedication towards achievement of Corporate Objective
VISION
"A trans-nationally competitive financial conglomerate of significance to societies
and Pride of India" -
MISSION
"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns, and by
rendering resources for economic development."
CITIZEN'S CHARTER
OUR MISSION
To ensure and enhance the quality of life of people through financial security by
providing Life Insurance products and services of high quality, and by providing
resources for economic development.
OUR VALUES
Integrity and Transparency
Caring and Courtesy
Initiative & Innovation
OUR COMMITMENT
TO THE COMMUNITY: We will
Provide insurance cover and financial security to every insurable person;
Meet its insurance needs in consonance with the changing social and economic
environment;
Also cater to the insurance needs of the socially and economically weaker sections of
the society through schemes specially designed for them;
Conduct all aspects of our business keeping in view its interest and national priorities.
TO OUR CUSTOMERS: We will
Provide them prompt, efficient and courteous service;
Act as trustees of their funds and invest the funds to their best advantage;
Conduct our business with utmost economy and on sound business principles;
Build and maintain enduring relationship;
Keep the customer informed.
TO OUR WORKFORCE: We will
Promote a sense of participation and make them partners in progress;
Work towards ensuring their job satisfaction and sense of pride;
Provide an environment and the opportunities for growth to enable them to realize
their full potential;
Take steps to develop professional skills to enable them to handle their assignments
more efficiently.
STANDARDS FOR FAIRNESS IN DEALING WITH CUSTOMERS:
We will
Strive to deal with our customers in an open and transparent manner;
Explain the rationale behind our decisions, consistent with requirements relating to
business Principles, wherever such decisions are likely to affect the customers'
interests adversely;
Continuously expand our product-line and services to afford wider choice.
This Charter is a summary of what we propose to offer to the community, to our
customers and to our choice workforce. This Charter does not become a part of the
policy conditions of our customers or the conditions of service of our work force. This
Charter does not also address the responsibility of our customers. Their
responsibilities concerning their insurance can be found in their policies.
People's Money for People's Welfare
With the formation of the Life Insurance Corporation of India on 1st September 1956,
it can be said that utilization of people's money invested in Life Insurance for planned
economic development of the country took roots. One of the objectives of
nationalization of the life insurance industry was channelizing of its funds for the
benefit of the community at large. In pursuance of this objective, Bajaj Life Insurance
has, over the years, been investing a major part of its funds primarily in the Socially
Oriented Sector. As at 31st March 2010, 84.49% of its total investments were in the
Public Sector, 1.84% was in the Co-operative Sector and 13.67% were in the Private
Sector.
For the Welfare of the Society:
Keeping in mind the primary obligation of the Corporation to its policyholders, as
enshrined in the objectives of nationalization, the funds of the Corporation are
deployed to the best advantage of the policyholders as well as the community as a
whole. While investing these monies, which are held in trust, the Corporation has to
keep in view the national priorities and obligation of reasonable returns. The Life
Funds, so invested for the benefit of the community at large has accumulated to Rs.1,
27,389 crore as at 31st March, 2010 after meeting the liabilities towards the claims,
management and other expenses, registering an increase of Rs.21, 556 crore during
the year 2009-10. The investment of the Corporation's funds is governed by Section
27A of the Insurance Act, 1938, and subsequent guidelines/instructions issued there
under by the Government of India from time to time. Not less than 75% of our
accretions to the fund are invested in Central Government Securities, Government
Guaranteed Marketable Securities, Loans in the Socially Oriented Sector for approved
purposes such as Power (Electricity), Housing, Water Supply and Sewerage, Road
Transport and Co-operative Industrial Estates. The total investment made by Bajaj
Life Insurance in the Socially Oriented Sector including investment in Central/State
Government Securities and Government Guaranteed Marketable Securities up to 31st
March, 2010 amounted to Rs.98, 003 crore.
Better Health, More Power and Houses for Masses:
The Corporation has been promoting Social Welfare through Socially Oriented
investments. These investments are regulated by the Government from time to time to
benefit the people at large by providing basic amenities like potable water, drainage,
housing, electrification and transport.
Under the Corporation's scheme of providing financial assistance for piped water
supply and drainage schemes, 1960 urban/local bodies in 23 States and the Union
Territory of Chandigarh have benefited. In addition, 507 Zillah Parishads in 7 States
are also receiving financial assistance from the Corporation for rural piped water
supply schemes. The investment in this sector up to 31st March 2010 was Rs.2, 512
crore.
The Corporation also provides financial assistance to State Electricity Boards/Power
Corporations for power generation projects by way of loans/subscriptions to their
bonds. The investment of the Corporation in the power sector was Rs.11, 392 crore up
to 31st March 2010 thus reflecting the Corporation as the largest single contributing
factor in the progress of electrification schemes in the country.
Housing is one of the basic necessities of human beings. Housing Finance, therefore,
occupies a prime place in Corporation's socio-purposive investments. Since inception,
the Corporation has been providing finance for housing to individuals, Co-operative
Housing Societies and private undertakings under its various mortgage-housing
schemes. With a view to solving the housing shortage in the country, the Corporation
joined in a big way in the massive efforts by providing financial assistance to State
Governments for Social Housing Schemes for Economically Weaker Sections, Low
Income Groups, Middle Income Groups, State Government employees and rural
population. The Corporation has also been extending financial assistance to State
level Apex Co-operative Housing Finance Societies, the benefits of which are passed
on to individuals through Primary Societies. Besides, the Corporation is providing
bulk loans to Housing Finance Institutions like Housing Development Finance
Corporation, Housing and Urban Development Corporation, National Housing Bank
and State Policy Housing Corporations in a few States. In the year 1989, with a view
to accelerating individual housing activities further, in consonance with national
priorities, the Corporation decided to promote a new Housing Finance Company with
a view to taking over the individual housing portfolios of the Corporation.
Accordingly, Bajaj Life Insurance Housing Finance Company Ltd. Was formed
initially with equity participation by LIC, UTI, ICICI and IFCI, which has since
become a Company with equity participation by public. The Corporation also extends
financial assistance to LIFHFL for its on-lending operations. The total contribution of
the Corporation up to 31st March, 2010 to housing development activities by way of
loans to State Governments, State-Level Apex Societies, HDFC, HUDCO, NHB,
LIFHFL, etc. and loans under Mortgage Housing Schemes amounted to Rs.12,
242crore.
The Corporation has been assisting development of road transport by providing
financial assistance to State Road Transport Corporations for augmenting their fleet of
buses. The total investment in this sector up to 31st March 2010 was Rs.671 crore. In
1997-98, the scope of the socially oriented sector was widened to accommodate
infrastructure projects pertaining to Ports, Railways (BOLT Projects), Roads,
Highways and Airports. Further, it has also been classified that the Corporation can
make Private Sector Investment in addition to Public Sector Investment subject to
availability of suitable schemes, which satisfy prudential norms.
Boosting Industrial Growth:
The Corporation helps boost the industrial growth in the country. It helps small scale
and medium scale industries by granting loans for setting up Co-operative Industrial
Estates and an amount of Rs.45 crore has so far been advanced to Co-operative
Industrial Estates and Industrial Development Corporations. The Corporation's
assistance to State Level Finance Corporations and All India Finance Corporations
like IDBI, IFCI, ICICI, etc. by way of subscription to bonds/debentures issued by
such institutions, also indirectly helps development of small scale and medium scale
industries. The Corporation also makes investment in the corporate sector in the form
of long, medium and short-term loans to Companies/Corporations. The total
investment made by way of loans up to 31st March 2010 was Rs.6, 615 crore and by
way of subscription to shares/debentures/bonds as at 31st March 2010 was Rs.20, 242
crore. All these make a distinct contribution towards growth in industrialization and
generation of skilled and unskilled employment opportunities in the country.
Operations
We Operate All Over India
Corporate Office: Mumbai
Zonal Offices -7
Divisional Offices -100
Branch Offices-2048
Agents - 6,28,301
BENEFITS
Life Insurance is a contract 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 the
event insured against. Usually the contract provides for the payment of an amount on
the date of maturity or at specified dates at periodic intervals or at unfortunate death,
if it occurs earlier. Among other things, the contract also provides for the payment of
premium periodically to the Corporation by the assured. Life insurance is universally
acknowledged to be an institution, which eliminates 'risk', substituting certainty for
uncertainty and comes to the timely aid of the family in the unfortunate event of death
of the breadwinner. By and large, life insurance is civilization’s partial solution to the
problems caused by death. Life insurance, in short, is concerned with two hazards that
stand across the life-path of every person: that of dying prematurely leaving a
dependent family to fend for itself and that of living to old age without visible means
of support.
Why is it superior to other forms of Savings?
Protection: Savings through life insurance guarantee full protection against risk of
death of the saver. In life insurance, on death, the full sum assured is payable (with
bonuses wherever applicable) whereas in other savings schemes, only the amount
saved (with interest) is payable.
Aid to thrift: Life insurance encourages 'thrift'. Long term saving can be made in a
relatively 'painless' manner because of the 'easy instalment' facility built into the
scheme (method of paying premium either monthly, quarterly, half yearly or yearly).
Take, for example, our Salary Saving Scheme popularly known as SSS. This scheme
provides a convenient method of paying premium each month by deduction from
one's salary. The employer remits the deducted premium to the LIC. The Salary
Saving Scheme can be introduced in an institution or establishment subject to
specified terms and conditions.
Liquidity: Loans can be raised on the sole security of a policy, which has acquired
loan value. Besides, a life insurance policy is also generally accepted as security for
even a commercial loan.
Tax Relief: Tax relief in Income Tax and Wealth Tax is available for amounts paid
by way of premium for life insurance subject to Income Tax rates in force. Assesses
can avail themselves of provisions in the law for tax relief. In such cases the assured
in effect pays a lower premium for his insurance than he would have to pay otherwise.
Money when you need it: A suitable insurance plan or a combination of different
plans can be taken out to meet specific needs that are likely to arise in future, such as
children's education, start-in-life or marriage provision or even periodical needs for
cash over a stretch of time. Alternatively, policy moneys can be so arranged to be
made available at the time of one's retirement from service to be used for any specific
purpose, such as for the purchase of a house or for other investments. Subject to
certain conditions, loans are granted to policyholders for house building or for
purchase of flats.
Who can buy a Life Insurance Policy?
Any person who has attained majority and is eligible to enter into a valid contract can
take out a life insurance policy for himself and on those in whom he has insurable
interest. Policies can also be taken out, subject to certain conditions, on the life of
one's spouse or children. While underwriting proposals, factors such as the state of
health of the life to be assured, the proponent's income and other relevant factors are
considered by the Corporation.
Insurance on Women.
Prior to nationalization (1956), many of the private insurance companies used to offer
insurance to female lives with some extra premium or on restrictive conditions. After
nationalization of life insurance, the terms under which life insurance is granted to
female lives have been reviewed from time to time. At present, women with earned
income are treated on par with male lives. In other cases, a restrictive clause is
imposed and that too only if age of the female is up to 30 years and if she does not
have an income attracting Income Tax.
Medical and Non-Medical Schemes.
Life insurance is normally offered after a medical examination of the life to be
assured. However, to facilitate greater spread of insurance and also as a measure of
relaxation, Bajaj Life Insurance has been extending insurance cover without any
medical examination, subject to certain conditions.
With Profit and Without Profit Plans.
An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed,
if any, after periodical valuations are allotted to the policy and are payable along with
the contracted amount. In 'without' profit plan the contracted amount is paid without
any addition. The premium rate charged for a 'with' profit policy is therefore higher
than for a 'without' profit policy.
Key man Insurance.
Key man Insurance is taken by a business firm on the life of key employee(s) to
project the firm against the finance loss, which may occur due to the premature
demise of the Key man.
INFORMATION TECHNOLOGY AND BAJAJ LIFE INSURANCE
Bajaj Life Insurance has been one of the pioneering organizations in India who
introduced the leverage of Information Technology in servicing and in their business.
Data pertaining to almost 10 crore policies is being held on computers in BAJAJ LIFE
INSURANCE. We have gone in for relevant and appropriate technology over the
years.
1964 saw the introduction of computers in BAJAJ LIFE INSURANCE. Unit Record
Machines introduced in late 1950’s were phased out in 1980’s and replaced by
Microprocessors based computers in Branch and Divisional Offices for Back Office
Computerization. Standardization of Hardware and Software commenced in 1990’s.
Standard Computer Packages were developed and implemented for Ordinary and
Salary Savings Scheme (SSS) Policies.
FRONT END OPERATIONS
With a view to enhancing customer responsiveness and services, in July, Bajaj Life
Insurance started a drive of On Line Service to Policyholders and Agents through
Computer. This on line service enabled policyholders to receive immediate policy
status report, prompt acceptance of their premium and get Revival Quotation, Loan
Quotation on demand. Incorporating change of address can be done on line. Quicker
completion of proposals and dispatch of policy documents have become a reality. All
our 2048 branches across the country have been covered under front-end operations.
Thus all our 100 divisional offices have achieved the distinction of 100% branch
computerization. New payment related Modules pertaining to both ordinary & SSS
policies have been added to the Front End Package catering to Loan, Claims and
Development Officers’ Appraisal. All these modules help to reduce time lag and
ensure accuracy.
METRO AREA NETWORK
A Metropolitan Area Network, connecting 74 branches in Mumbai was commissioned
in November 1997, enabling policyholders in Mumbai to pay their Premium or get
their Status Report, Surrender Value Quotation, Loan Quotation etc. from ANY
Branch in the city. The System has been working successfully. More than 10,000
transactions are carried out over this Network on any given working day. Such
Networks have been implemented in other cities also.
WIDE AREA NETWORK
All 7 Zonal Offices and all the MAN centers are connected through a Wide Area
Network (WAN). This will enable a customer to view his policy data and pay
premium from any branch of any MAN city. As at May 2002, we have 91 centers in
India with more than 1320 branches networked under WAN.
INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS)
IVRS has already been made functional in 59 centers all over the country. This would
enable customers to ring up Bajaj Life Insurance and receive information (e.g. next
premium due, Status, Loan Amount, Maturity payment due, Accumulated Bonus etc.)
about their policies on the telephone. This information could also be faxed on demand
to the customer.
BAJAJ LIFE INSURANCE ON THE INTERNET
Our Internet site is information. We have displayed information about Bajaj Life
Insurance & its subsidiaries-Bajaj Life Insurance (International) E.C., Bajaj Life
Insurance (Nepal) Ltd, Bajaj Life Insurance Mutual Fund, Bajaj Life Insurance
Housing Finance and their products. Efforts are on to upgrade our web site to make it
dynamic and interactive. The addresses/e-mail Ids of our Zonal Offices, Zonal
Training Centers, Management Development Center, Overseas Branches, Divisional
Offices and also all Branch Offices with a view to speed up the communication
process.
PAYMENT OF PREMIUM AND POLICY STATUS ON INTERNET
Bajaj Life Insurance has given its policyholders a unique facility to pay premiums
through Internet absolutely free and also view their policy details on Internet premium
payments. There are 11 service providers with whom L I C has signed the agreement
to provide this service.
INFORMATION KIOSKS
We have set up 150 Interactive Touch screen based Multimedia KIOSKS in prime
locations in metros and some major cities for dissemination information to general
public on our products and services. These KIOSKS are enabling to provide policy
details and accept premium payments.
INFO CENTRES
We have also set up 8 call centers, manned by skilled employees to provide you with
information about our Products, Policy Services, Branch addresses and other
organizational information.
THE PROCESS
Help Us To Serve You Better
Need for care while completing Proposal Papers:
A contract of insurance is a contract of utmost good faith technically known as
uberrima fides. The principle of disclosing all material facts is embodied in this
important concept, which applies to all forms of insurance. The proposer, who is one
of the parties to the insurance contract, has means of knowledge, which are not
accessible to the insurer, viz., the Corporation, which is the other party to the contract.
Therefore, it is the duty of the proposer to inform the insurer of everything likely to
affect the judgment of the insurer, howsoever unimportant it may seem to him (the
proposer). Hence, the proposer should ensure that all questions in the proposal form
are correctly answered. It may be noted that in the 'proposal' along with other related
papers and the representations, made for the grant of insurance, the proposer declares
that full and correct information is being furnished by him. Any misrepresentation,
non-disclosure or fraud in any document leading to the acceptance of the risk will
render the insurance contract null and void. In such an event, there is the possibility of
the contract becoming in fructuous and the intended beneficiary being deprived of
expected benefits because of an unwise act of the proposer. It is, therefore, in the
interest of the would-be policyholder to disclose all material facts to the Corporation
to avoid the possibility of complications at a future date.
Importance of Age Admission:
The rate of premium payable on a life insurance policy generally varies with age and,
therefore, age is one of the most important factors in determining the rate of premium
payable in an individual case. It follows that the age of the life to be assured must be
proved to the satisfaction of the Corporation. In order of preference, the following
will be accepted as evidence of age:
(a) Certified Extract from Municipal or Local Body's records made at the time of
birth.
(b)Certificate of Baptism or Certified Extract from Family Bible if it contains age or
date of birth.
(c) Certified Extract from School or College records if age or date of birth is stated
therein.
(d) Certified Extract from Service Register in the case of Government employees and
employees of Quasi-Government institutions.
(e) Passport issued by the Passport Authorities in India.
Modes of Payment of Premiums other than single premiums may be paid by the
policyholders to Bajaj Life Insurance in yearly, half-yearly, quarterly or monthly
installments.
Days of Grace:
Policyholders are required to pay the premiums to the Corporation on the due dates.
One month but not less than thirty days of grace is allowed for payment of yearly,
half-yearly and quarterly premiums, and fifteen days for payment of monthly
premiums. When the days of grace expire on a Sunday or a holiday observed by the
Office of the Corporation where premiums are payable, the premium may be paid on
the following working day to keep the policy in force.
Revival of Lapsed Policy:
When the premium is not paid within the days of grace, the policy lapses, It can,
however, be revived during the life-time of the assured but before the expiry of a
period of five years from the due date of the first unpaid premium and before the date
of maturity, if applicable. The Corporation offers three convenient schemes of revival,
viz. the Ordinary Revival scheme, the Special Revival scheme and the Installment
Revival scheme. It is also possible to revive a policy by raising a loan under the
policy provided that the policy is one with loan eligibility and has acquired adequate
loan value to pay the arrears of premiums with interest. Requests for revival may be
made to the Branch Office servicing the policy.
Change of Address and Transfer of Policy Records:
As and when a policyholder desires a change of his address in the Corporation's
records, intimation of such change should be given to the Branch Office servicing his
policy. Policy records can be transferred from the Branch Office, which services the
policy to any other Branch Office nearest to the policyholder's place of residence. The
correct address facilitates better service and quicker settlement of claims.
Care of Document and Loss of Policy:
The policy document (policy bond) is an evidence of contract between the insurer and
the insured. The policyholder should preserve the policy bond carefully till the
contracted amount under it, is settled, as it is required to be submitted to the
Corporation at the time of claims. The loss of the policy document, if it occurs, should
be immediately intimated to the Branch/Divisional Office of the Corporation where it
is serviced. The office will then quote the requirements for a duplicate policy or a
copy of the policy, whichever is required by the policyholder. It may, however, be
noted that the loss of the policy bond does not extinguish the rights of the
policyholder in the policy.
Loan:
At present loans are granted on unencumbered policies up to 90 percent of the
Surrender Value under policies, which are in force for the full sum assured, and up to
85 percent of the Surrender Value on policies, which are paid-up for a reduced sum
assured. The minimum amount for which a loan can now be granted under a policy is
Rs.150/-. The rate of interest charged at present is 100.5 percent or 12 percent per
annum payable, payable half yearly, depending on plan per annum payable half-
yearly. Loans are not granted for a period shorter than six months, or on the security
of lost policies (duplicate policies must be got issued for loan) or on policies issued
under certain plans. The Branch Office servicing the policy will quote the loan value
on request from the policyholder. Certain types of policies are, however, without loan
facility. The terms and conditions printed on the policy bond reveal whether a
particular policy is with or without loan facility.
Relief to Policyholders:
The Corporation allows concessions on payment of premiums, settlement of claims,
issue of duplicate policies etc. when the policyholders are affected by natural
calamities such as droughts, cyclones, floods, earthquakes etc.
Nomination/Assignment of Policy:
When the policy money becomes due for payment on the death of the policyholder, it
can be paid only to that person who is legally entitled to give a valid and effective
discharge to the Corporation. The importance of nomination/assignment cannot be
over-emphasized, especially when a death claim arises. If the policy bears
nomination, the claim is settled in favor of the nominee. Similarly, if the policy is
assigned, the assignee receives the claim amount. In maturity claims, the payment is
made to the life assured, subject to the policy being free from encumbrances. For
quick settlement of claims, policyholders are strongly advised to effect either a
nomination or an assignment in respect of their policies. It should be noted that an
assignment of a policy automatically cancels the existing nomination. Hence, when
such a policy is reassigned in favor of the policyholder, it is necessary to make a fresh
nomination to avoid delay in payment of the claim.
Claim by Maturity/Installment Payment:
The Corporation strives to settle maturity claims and make periodic payments, as in
the case of Money Back Policies, on the due date itself. The branch office concerned
which services the policy sends out an intimation regarding the payment along with
the necessary discharge voucher for execution by the assured, approximately two
months before the due date of such payment. In case the policyholder does not hear
from the concerned branch office in this connection, he/she may contact them by
quoting the policy number.
Death Claim:
In the event of the death of the policyholder, the claimant (the nominee, assignee or
next of kin) should immediately intimate the Branch Office, where the policy is
serviced, the fact of such death, along with the following particulars:
Policy number/s,
Name of the life assured,
Date of death and
Claimant's relationship with the assured.
Soon after the receipt of the intimation of death, the concerned Branch Office will
send the necessary claim forms for completion along with instructions regarding the
procedure to be followed by the claimant. The claim is usually payable to the
nominee/assignee or the legal successor, as the case may be. However, if the deceased
policyholder has not nominated/assigned the policy or if he/she has not made a
suitable width=450 provision regarding the policy moneys by way of a Will, the claim
is payable to the holder of a Succession Certificate or some such evidence of title
from a Court of Law. The Corporation, however, may consider settlement of claims
under such policies without insisting on the court-evidence-of-title in favor of the
natural heirs of the deceased, subject to certain terms and conditions. The Corporation
grants claim concessions whereby payment of full sum assured is made, subject to the
deduction of unpaid premiums with interest, and premiums falling due before the next
anniversary of the policy, in the event of death of the life assured within a period of
six months or one year from the date of the first unpaid premium, provided premiums
have been paid at least for three years or five years respectively. The Corporation has
also provided some relief's as mentioned below, to the claimants under certain plans
where, subsequent to the payment of premiums for two full years but less than 3
years, the death takes place after the Days of Grace but within one year from the date
of first unpaid premium -
Within 3 months - Full Sum Assured along with declared bonus, subject to recovery
of unpaid premiums to complete the policy year.
Between 3 months to 6 months - Claim will be considered for half Sum Assured
without declared bonus. There will be no deduction of unpaid premiums.
Between 6 months to 12 months - Claim will be considered for proportionate notional
paid-up value on the basis of actual premiums paid without adding declared bonus.
There will be no deduction of unpaid premiums.
Claims Review Committee:
The Corporation settles a large number of death claims every year. Only in case of
fraud or suppression of material information a claim is repudiated. The number of
death claims repudiated is, however, very small. Even in these cases, an opportunity is
given to the claimant to make a representation for consideration by the Review
Committees at the Zonal Office and the Central Office. As a result of such reviews,
depending on the merits of each case, appropriate sanctions are made. Claims Review
Committee at the Central Office has been reconstituted in December'93 with the
induction of an outside member Justice S.C.Pratap, former Chief Justice of Andhra
Pradesh High Court which has helped in providing transparency to our operations
which resulted in greater satisfaction among the claimants, policyholders and public
as well.
Hi Tech Services:
To provide quicker and better services to our policyholders, approx.97% of our total
Branches have front-end computerization for giving on-lone service to policyholders.
In addition to this, New Delhi, Chennai, Bangalore and Mumbai have installed Metro
Area Network (MAN) and interactive Voice Response System (IVRS). Through
MAN policyholder in the cities can obtain their policy status and make premium
payment to any of the Branches within the city, and any Branch of the city can handle
their policy enquiries. Through IVRS policyholders can obtain on phone and by fax-
on-demand various information about their policy e.g. loan quotation, paid-up value,
revival quotation, acquired bonus statement etc.
2009-10: A YEAR OF BRILLIANT NEW BUSINESS
PERFORMANCE BY LIFE INSURANCE CORPORATION OF INDIA
The New Business performance of the Bajaj Life Insurance in respect of individual
assurances (inclusive of Single Premium, Bema Nivesh and Individual Pension
Plans) during the Financial Year 2001-02 has been as follows:
NUMBER OF POLICIES - Rs.2, 32,50,078 crore
SUM ASSURED - Rs.1, 92,575.36 crore
FIRST PREMIUM INCOME - Rs.14, 844.05 crore
These represent Growth Rates (over the previous year) of 16.24% on the basis of the
Number of Policies, 54.34% on Sum Assured, and 137.03% on First Premium
Income.
Out of the 2.32 crore policies sold during the year, 14.03 Lakh have come under
Bema Nivesh /Single Premium and Individual Pension Plans.
Out of the total First Premium Income of Rs.14, 844.05 crore, Rs.6, 917.84 crore has
come under Individual Assurances (excluding Bema Nivesh and Individual Pension
Plans) alone; Rs.5, 364.85 crore under Bema Nivesh /Single Premium; and Rs.2,
561.35 crore under Individual Pension Plans.
PENSION & GROUP SUPERANNUATION BUSINESS:
The New Business Premium procured under the Group and Superannuating Schemes
was Rs.994.46 crore, which marks a growth of 43% over the performance of last year.
The Number of Lives covered was 14,61,825 representing an increase of 17% over
the coverage in 2009-10.
CLAIM SETTLEMENTS:
During the year 2010-2011, L.I.C. settled in all 85.27 Lakh Claims, both Maturity and
Death, as compared to 73.47 Lakh settled in the previous financial year. By far, we
believe, this should be the largest number of claims settled by any life insurance
company anywhere in the world.
Bajaj Life Insurance is The Pride of India
Bajaj Investments - Some Highlights
(Rs. in crore)
TYPE OF INVESTMENT
INVESTMENTS UP TO 31.3.2009
31.3.2010
31.3.2011
31.3.2007 31.3.2008 31.3.09 31.3.10
31.3.11
CENTRAL GOVT. SECURITIES
981 4675 37330 45876 56185 70533 85181 109938
STATE GOVT & OTHERS
715 1683 8906 10471 12928 14156 17877 21463
ELECTRICITY (SEBs)
733 2603 8214 9153 10591 11931 12402 13447
HOUSING 618 1872 10967 12242 14207 15885 17998 19054 WATER SUPPLY& SEWERAGE
203 718 2028 2264 2508 2997 3657 4000
STATE ROAD TRANSPORT CORP
- 180 540 551 671 736 784 893
LOANS TO INDUSTRIAL ESTATES
9 37 45 45 45 45 45 45
LOANS TO SUGAR CO-OPs
22 37 37 37 37 37 37 37
DEVELOPMENT AUTHORITY
- 1 1 1 1 1 1 1
ROADWAYS, PORT, RAILWAYS
- - - 25 25 85 325 681
POWER GENERATION (PVT SECTOR)
- - - 276 801 1478 1615 3797
MUNICIPALITIES
- - - 4 4 4 4 4
TOTAL 3281 11806 68068 80945 98003 117888 139926
173370
Note:
1) Item 1 & 2 are shown as at Book Value as on 31.3.10.
2) Items 3 to12 are Gross Investment made so far.
Investments - 2009-10
For The Financial Year 2009 - 2010
* The value of the Total Assets of the corporation stood at Rs.1, 93,282.99 crore, the
growth rate being 20.09%.
* The Total Income amounted to Rs.54, 736.30 Crore, registering a growth of
21.17%.
* The Total payments to policyholders amounted to Rs.14, 025.75 crore as against
Rs.11, 171.48 crore in the previous year.
The Total Life Fund as at the close of the year increased to Rs.1, 86,024.75
crore, the percentage increase over the previous year being 20.76%.
Claims Performance:
Ratio of outstanding claims was only 3.58% in terms of amount and 1.67% in
terms of number as on 31.3.2011.
* During 2010 - 2011, Bajaj Life Insurance settled 75.86 Lakh claims for an
amount of Rs. 11,637.98 crore.
* On an average, Bajaj Life Insurance settles over 26249 claims amounting to
Rs. 40.27 crore every working day
81% of Maturity Claims are settled on or before the date of maturity
85% of Non-Early Death Claims are settled within 45 days.
Chapter – 4
OBJECTIVE1. To study the analysis of insurance sector in India with special reference Bajaj
Allianz Life Insurance co. Ltd
2. To study the Comparative Analysis of product provided by Insurance
company.
3. To know the consumer feedback.
4. To know the marketing strategies adopted to promote these products.
5. To make the private players responsible to the investors and not to the
government.
6. The objective of this analysis was to find out the reasons for the success of the
India's top private insurance sector Bajaj Allianz other Indian insurance
company’s as compared its counterparts.
7. To know awareness about life insurance among earning public.
8. Comparative study on Bajaj Allianz with other Indian insurance company’s
9. To know the type of life cover most preferred by the public
10. To find out what policies Bajaj Allianz is providing
11. To find out the various policies in life insurance
12. To find out what are the benefits of each of the policy
13. To find out the working process of an insurance agent
14. To understand the functioning of an insurance company
15. To study the benefits of this product provided by Bajaj Allianz.
16. To increase the competition in this sector so that the common people has the
advantage of enjoying quality services at a reasonable cost
Sub Objective:
To increase the competition in this sector so that the common people has the
advantage of enjoying quality services at a reasonable cost
Insurance has a far reaching effect in synchronizing between the various service
sectors. So if this sector can grow, the prospects of the various other services
sector remains to be promising.
SCOPE OF THE STUDY
Research is the solution of the problem, whether created or already generated. When
research is done, some new out come, so that the problem (created or generated) to be
solved.
The study is designed and focused primarily on identifying the present market
position of the Bajaj Life Insurance. It also includes identification of its core
competitors and enhancing efforts towards brand repositioning in present and in
future.
No study is generally full proof this report suffers from certain limitation with respect
to information and analysis. Scope of Life Insurance industry in India is full of
opportunities & a huge potential lies in rural areas.
Chapter – 5
METHODOLOGY
RESEARCH METHODOLOGY
This with the research methodology that has been followed. Research methodology
can be defined as the step by step procedure that is designed and followed for the
purpose of doing a research work. Other main purpose is to design the work in such a
way that all the areas to be covered in the research work fall in a correct manner and
in the purview of the research work and nothing is left out the methodology is develop
din such a way that the flow of the work is continuous and desired results are
obtained.
The methodology followed for the purpose of this study is as follows:
PRIMARY DATA SOURCES USED: -
Appointments with different people who seem to be prospective advisors
Interview Method (Cold calling): This method involves presentation of oral – verbal
stimuli and reply in terms of oral - verbal responses. This method can be used through
personal interviews and, if possible, through telephone interviews.
SECONDARY DATA: -
Secondary data means data which is already available i.e. we refer to the data which
has already been collected and analyzed by someone else. Secondary data may be
either published data or unpublished data. In this project secondary data collected
from following sources. Usually published data are available:
Telephone directory, which contains telephone number of all residents of the
area, companies and shops.
Newspapers, books and magazines.
Reports and publications of various associations connected with business and
industry.
Websites and other publications of company.
STATISTICAL TOOLS USED
The main statistical tools used for the collection and analyses of data in this project
are:
Questionnaire
Pie Charts
Tables
Limitations of research
Although the project has been worked out at its best yet there are some limitations
which cannot be overlooked. Had these limitations been overcome, the findings
would be more accurate. Some of the limitations are
1) Time constraint- Time was really a limiting factor in the project. It’s really difficult
to work out such a large project between two months time.
2) Data Constraint- since Delhi is very vast, its really difficult to collect data from
whole of Delhi, Most of the data has been collected from South and central part of
Delhi.
Chapter – 6
RESULTS – REPORT OF DATA COLLECTION
1. Do you know about Bajaj Life Insurance?
(a) Yes- 92%
(b) No - 8%
The study states that 71.42% people knows about insurance and 28.57% people
doesn’t knows about insurance.
2. Have you ever opted for Insurance from Any Company?
(a) Yes- 61%
(b) No - 39%
The study states that 57.14% people have opted for insurance of any type, but
42.85% have not opted for insurance in their lives.
3. If Yes, Which Company have you taken Insurance from?
LIC 42%
Shriram Life Insurance life
Insurance
7%
HDFC Standard Life Insurance 12%
Shriram Life Insurance Life 19%
Max New York Life Insurance 8%
Birla san life Insurance 10%
Met life insurance 2%
The study states that maximum people with the % of 28.57% have opted for L.I.C and
people with minimum 5.71% have opted for Birla sun life Insurance.
4. How did you come to know about Insurance?
(a) Advertisement - 76%
(b) Word of Mouth - 14%
(c) Referred by your company / Friend - 10%
According to the research study states that maximum people with the % of 57.14%
gets aware through advertisement about insurance.
5. What made you select a particular Company for the Insurance?
(a) EMI - 78%
(b) Brand name - 3%
(c) Procedures - 9%
(d) Facilities - 1%
(e) Policies - 7%
(f) Advertisement - 2%
The study states that maximum people with the % of 57.14% gets awared through
advertisement about insurance.
6. How do you like the Marketing strategy by different Companies?
(a) Good - 68%
(b) Average - 19%
(c) Bad - 13%
This states that maximum people with % of 57.14% percent are satisfied with the
marketing strategies by different insurance company.
7. What motivates you for selecting any Company for Insurance?
(a) EMI - 76%
(b) Brand name - 4%
(c) Procedures - 9%
(d) Facilities - 3%
(f) Policies - 8%
The study states that maximum people are motivated through services while
selecting any insurance company.
8. Advantages or Comment about Insurances
(a) Advertisement should be more on the advantages and fact rather the
features.
(b) There is a Tax saving factors while opting for Insurance.
(c) Procedure should be made easier for the normal public as it consumes a lot
of time and effort for providing all the documents.
(d) Insurance is a need and not Luxury.
9. Which Company would you prefer if you have never applied for
Insurance?
LIC 56%
Birla sun life Insurance 7%
HDFC Standard Life Insurance 12%
Icici Pur 17%
Max New York Life Insurance 8%
Shriram Life Insurance life
Insurance
5%
Met Life Insurance 3%
This states that maximum people with % of 25.71% will prefer LIC for their
insurance.
10. Percentage of Respondents Who Are Under Different Plans of Bajaj Life
Insurance.
PARTICULARS NO.OF.RESPONDENT PERCENTAGE
Invest gain plan 41 41%
Unit gain plan 36 36%
Child gain plan 8 8%
Whole life plan 15 15%
Pension plan No No
TOTAL 100 100%
INSURANCE PLANS OF SHRIRAM LIFE INSURANCEPRUDENTIAL
41%
36%
8%
15%
Invest gain plan Unit gain planChild gain planWhole life planPension plan
ANALYSIS:From the survey it was found that amongst 100 respondents
a) 41% of the respondents are under invest gain planb) 36% of the respondents are under unit gain planc) 8% of the respondents are child gain pland) 15% of the respondents are whole life plan
e) No body under pension plan
11. Percentage of respondent’s benefits of choosing the particular products?
PARTICULARS NO.OF.RESPONDENT PERCENTAGE
Risk coverage 60 60%
Additional benefit 20 20%
Maturity date 12 12%
Sum Assured 8 8%
TOTAL 100 100%
ANALYSIS:a) 36% of the respondents say that a benefit of choosing the particular
Product is for Safety of life.b) 20% of the respondents say that a benefit of choosing the particular
products is for additional benefit to familyc) 12% of the respondents say that a benefit of choosing the particular
products is for maturity date d) 8% of the respondents say that a benefit of choosing the particular
products is for sum assured
12 Percentage of Disadvantages In Insurance Plan?
PARTICUALRS NO.OF.RESPONDENT PERCENTAGE
Liquidity 35 35%
Lapsation 20 20%
Unable to decide
premium
19 19%
High risk coverage 14 14%
Fixed Term 12 12%
TOTAL 100 100%
ANALYSIS:From the survey it was found that amongst 100 respondents
a) 35% of the respondents say that disadvantages in insurance plan are liquidity.
b) 20% of the respondents say that disadvantages in insurance plan are lapsation.
c) 19% of the respondents say that disadvantages in insurance plan is unable decide premium.
d) 14% of the respondents say that disadvantages in insurance plan are high-risk coverage at high premium.
e) 12% of the respondents say that disadvantages in insurance plan is fixed term
Chapter – 7
RECOMMENDATIONS
The Indian insurance sector is undergoing change. Earlier there was a big monolith; in
2010 all of this changed with the entry of 11 private insurers. The way the private
insurers took for making themselves known to the customer was through agents. Later
they realized that distribution could form one of the major points of differentiation for
insurance players especially in a country like India where most of the people are not
aware of the necessity of insurance.
One can clearly see that agents ruled the roost in the distribution of insurance
products. This is changing; the private players have understood the potential of
bancassurance and are moving in to use the same as strength.
Banks do form cooperation with the insurance companies in order to increase their fee
based incomes while insurance companies take into account the brand name of the
banks for choosing them as their agents.
There is a saving for the insurance company while taking up the bancassurance route
as compared to agents; the costs being that of training the bank employees.
Bancassurance also has its share of concerns – after the internal customers - whom are
the banks going to target, the concerns of the insurance companies regarding the lack
of selling culture in banks , the continuous swapping of partners in the last 2 years all
call for careful introspection in above the model.
LIC by virtue of its huge no of agents is not able to clearly understand whether it
should go in for the bancassurance as the major channel of distribution while most of
the private insurers are ready to use it as strength. This is seen in the barely .5 % of
the new business premium generated by the bancassurance model whereas it is on an
average 20 % in case of the private players. In this regard LIC has to initiate steps by
taking their bank partners into confidence by incorporating their views in their model.
In all Bancassurance is to go to greater heights- all the insurance companies believe
that bancassurance is going to significantly increase. T
This is also true with the banks which are also gearing up to take up bancassurance
model to greater heights of success.
There are certain flaws existing in this working of the insurance industry. There are
some of the recommendation we ad come up with while doing this project. It will help
to make insurance more important sector in today’s economy.
The need of the hour is to devise a comprehensive strategy that will help the firms
face the challenges of the future. The financial services industry around the world
over is undergoing a major transformation. It is very important that trained marketing
professionals who are able to communicate specific features of the policy should sell
the policy.
From our research we could find out that people are not aware about the policies and
features of insurance. Therefore Birla Sun Insuracen and HDFC are recommended to
shed light on policies and explain the benefits, thus increasing the awareness.
The penetration of insurance in India is around 22%. This indicates that a vast
majority of rural population is not covered. The market player needs to explore this
untapped potential through their marketing and sales network.
The returns of the policies are not properly managed and never given in time. So,
these must be looked at.
Pricing of insurance products, as empirically available in India, shows that pricing is
not in consonance with market realities. Life Insurance premium is generally
perceived, as being too high while general insurance (especially motor insurance) is
priced too low.
Some insurance products, which are not available in India, should, be introduced in
market. There are areas for new product development: Industry all risk policies,
Large projects risk cover, Risk beyond a floor level, Extended public and product
liability cover
Insurance companies will also had to get savvy in distribution. Enhanced marketing
thus will be crucial. Already many companies have full operation capabilities over a
12-hour period. Facilities such as customer service center are already into 24-hour
mode. These will provide services such as motor vehicle recovery. Technology will
also play an important role on the market.
The lines of distinction between banks insurance companies and brokerages are
getting blurred. The future seems to belong to financial supermarkets that will offer a
host of services and products to the consumer. In the next millennium all these
activities would play a crucial role in the overall development and maturity of the
insurance industry
Chapter – 8
CONCLUSIONS & IMPLICATIONS
This deals with the concluded aspects of the study carried out on the basic objective is
for the study is for which study was carried out has been fulfilled in the Bajaj Life
Insurance chapter, based on the objective interview schedule was designed. Data
collected based on schedule was analyzed and some findings have emerged.
Major Findings of the Study
a) Based on the quantitative analysis the major findings of the study have been
highlighted below….
b) Most of the people are satisfied with the extent of their life insurance cover.
They are not interested in buying more life insurance.
c) People do not consider life insurance as a good savings because of low returns.
d) As life insurance is a long term contract. Maximum people do not have faith
on private life insurance companies, they still prefer LIC.
e) Because of less advertising not many people are aware about private life
insurance companies.
f) Most of the people do not know about broker, corporate agents and banc
assurance, they rely on their agents only
g) The most preferred type of plan is money back. The reason being availability
of funds after every five years which can be used for paying further premium,
thus saving the regular income.
h) Some people have no idea about what type of cover they have.
i) Most of the people feel that life insurance is essential but they think returns are
low.
j) Advertising of the insurance product should stress on the need of security.
k) Insurance should be popularized as the means of securing future rather than
saving tax.
l) Policies should be issued quickly and with less formalities
m) Other service should also be improved.
n) Newspaper/Magazines and television are the most effective medium of
advertising life insurance.
o) Insurance agents should be well trained.
Dividend for the Financial Year 2009-10
The Board of Directors of the Corporation has recommended payment of dividend of
170% (Rs. 17 per share), for the financial year ended March 31, 2010, for approval of
the shareholders at the AGM. [Previous year 135% (Rs. 13.50 per share)].
Dividend entitlement is as follows:
For shares held in physical form: shareholders whose names appear on the
register of members of the Corporation as at the close of business hours on
June 30, 2009.
For shares held in electronic form: beneficial owners whose names appear in
the statements of beneficial position furnished by NSDL and CDSL as at the
close of business hours on June 30, 2010.
There has been tremendous change in the insurance history. And with it there has
been continuous growth in this sector both in Indian as well as world context.
The opening up of the insurance sector has changed the whole look of the industry.
While the LIC in order to face the competition is coming with new strategies. New
players like Shriram Life Insurance are leading the sector due to their strategic
management and tailored made projects.
From our research also we conclude that though the awareness and people opting for
LIC plans are more as compare to MNYL but the later are gaining momentum in the
market day by day.
The primary reasons for buying an insurance policy, whether life or non-life is to
protect us from vagaries of life. We do not invest in insurance for returns; rather we
invest in it for regrettable necessities. Though a large proportion of policies available
in the country provide for returns, but nobody is looking for returns to the inflation
rate. So what does insurance offer, perhaps peace of mind, but even that takes time,
due to poor claim performance
The demand for insurance is likely to increase with rising per-capita incomes, rising
literacy rates and increase of the service sector, as has been seen from the example of
several other developing countries. In fact, opening up of the insurance sector is an
integral part of the liberalization process being pursued by many developing countries
Insurance is a Rs.400 billion business in India and yet its spread in the country is
relatively thin. Insurance as a concept has not been able to make headway in India.
There has been a strong fall in insurance business in recent years. On the other hand,
growth fluctuations have been relatively small with growth rates varying between 1%
and 5%. Life insurance business by contrast achieved average growth rates of 6%,
although the actual rates ranged from 0% to 13%. This shows on the one hand the
increasing significance of life insurance as an instrument for old age provisions and
on the other hand indicates the sensitivity of life insurance to changes in the
institutional and economic environment.
THE PROJECT STUDY REPORTS HAS THE FOLLOWING
CONCLUSIONS:
1. Almost 80% of respondents have an insurance policy.
2. People have more number of life nsurance policies as compared to non life
insurance.
3. Majority of the respondent preferred/have l.i.c. Policy since it was the only option
due to complete government control in insurance sector. (though now privatised)
4. Majority of the respondents believe that covering future uncertainity is the most
important benefit of an insurance policy.
5. Majority of the respondent believed that larger risk coverance of their policy was
the main feature of their policy that attracted them buy that policy.though low
premium was the next important feature.
6. Due to the increasing concern of people towards their health/life the life insurance
business has godd prospects.
7. Due to increased in consumerism new product is launched everyday.thus non-
life/general insurance business is also going to have boom period.
BIBLIOGRAPHYReferencesReferences
1. Parihar Rachana, “Bancassurance: Challenges and Opportunities in India”,
INSURANCE CHRONICLE, July 2004, pg 51 – 56
2. Flur K Dorlisa, Huston Darren and Lowie Y Lisa, “Bancassurance: Three
Partnership Models”, Bancassurance-An Introduction (Kesiraju
Krishnaphani ,ICFAI Press( 2003) ), pg 35 –42
3. Mayne Geoff and Taylor Matthew, “ Bancassurance: Driving Factors”,
Bancassurance - An Introduction (Kesiraju Krishnaphani , ICFAI Press ( 2003) ),
pg 1- 12
4. Daswani Neil,“ Building a Long Term Solution Partnership” ,pg 129 - 136
Bancassurance- An Introduction (Kesiraju Krishnaphani , ICFAI Press ( 2003) ,
pg 129 –135
5. Jayaprakash S, “Time to tame Insurance Distribution Channels in India”,
INSURANCE CHRONICLE, Oct 2004,pg 43-48
6. “ Designing Distribution”, ASIA INSURANCE POST, Sept 2004, pg 25 –34
Books
1. Bajpai N G & Navare Jyoti , The Marketing Of Insurance , pg 8- 23
2. Palade S P, Shah S R & Lunawat L M, Changing Policies And Emerging
Opportunities, ResponseBooks (2003), pg 415 -429
3. Vaughan J Emmett & Vaughan M Therese, Essentials Of Risk And
Insurance, ,John Wiley & Sons ( 2001), pg 221 – 231
4. Ganguly Anand, Careers In Insurance, Gyan Sagar Publications ( 2002)
5. Kesiraju Krishnaphani , “Bancassurance An Introduction”, ICFAI Press
( 2003)
Magazines
1. Singh Gina , “ Risky Business”, Businessworld, 10 Feb 2003, pg 24 – 25
2. Singh Gina , “ Premia On training”, Businessworld , 25 September 2010 pg 16
3. Gupta Hima, Gupta Sudhir and Aggarwal Naresh , “ Growth Of Life Insurance
Sector”, INSURANCE CHRONICLE , May 2004, pg 25 – 29
4. Gupta Vivek , “ Global Insurance Industry – A Perspective” , INSURANCE
CHRONICLE , July 2004 ,pg 29 – 33
5. Bhattacharya Anabil, “ BANCASSURANCE – Need & Effects” , THE
INSURANCE TIMES , Oct 2004 ,pg 27 – 35
6. Bharti Veena , “ Bancassurance – A Paradigm Shift Insurance Marketing” , ,
THE INSURANCE TIMES , Oct 2004 ,pg 37 – 38
7. Kumar Manoj , “ Marketing and Distribution Channels in Bancassurance”,
THE INSURANCE TIMES, Oct 2004 , pg 44 –50
8. Boyle E Charles , “ Bancassurance Model is Business as Usual in European
Countries”, THE INSURANCE TIMES , Oct 2004, pg 51
9. Jayaprakash S “ Time to Tame Insurance Distribution Channels In India”,
INSURANCE CHRONICLE, Oct 2004, pg 43 – 48
10. Editorial Team, “ Transformation Of Insurance In India”, Chartered
Accountant, June 2004 , pg 1343 –1347
11. Barua Abheek, “ Bancassurance – New Concept catching up fast In India”
Chartered Accountant, June 2004,pg 1348 –1351
12. Kumar Vikas , “Life is Beautiful”, Brand Equity,15 October 2003
13. Kumar Manoj, “ Bancassurance In India : A SWOT Analysis”,
Bancassurance- An Introduction , pg 96 –105
Websites
1. http://www.irdaonline.org/
2. http://www.irdaindia.org/
3. http://www.insuremagic.com/Content/Articles/Life/bancassurance.asp
4. http://www.insuremagic.com/Content/Articles/Life/bkng_bancassurance.asp
5. http://www.ficci.com/ficci/media-room/speeches-presentations/2001/oct/
FICCIpresentation.ppt
6. www.ficci.com/ficci/media-room/speeches-presentations/2002/sep/sep-
insurance-aviva.ppt
7. http://www.kotaklifeinsurance.com/omkm/index.jsp
8. www.hdfcinsurance.com/
APPENDICES
QUESTIONNAIRE
Hello. This is ____________________ Bajaj Life Insurance, working here as a
management trainee. I would appreciate it if you could lend me just 2 minutes of your
time for my project on Insurance Industry. I would like to assess if you are interested
in taking a business opportunity available in the insurance sector which requires no
investment of yours.
1. Name:
2. Occupation
3. Do you know about Insurance?
a. Yes
b. No
4. Have you ever opted for Insurance from any company?
a. Yes
b. No
5. Which company have you taken Insurance from?
a) LIC
b) SBI Insurance
c) HDFC Standard Life Insurance
d) Icici Pur
e) Max New York Life Insurance
f) LIC
g) Shriram Life Insurance life Insurance
6. How did you come to know about Insurance?
a) Advertisement
b) Word of Mouth
c) Referred by your company / Friend
7. What made you select a particular company for the Insurance?
a) EMI
b) Brand name
c) Procedures
d) Facilities
e) Policies
f) Advertisement
8. How do you like the Marketing strategy by different Insurance Company?
a) Good
b) Average
c) Bad
9. What motivates you for selecting any Company for Insurance?
a) EMI
b) Brand name
c) Procedures
d) Facilities
e) Policies
10. Advantages or Comment about Insurances
11. Which Company would you prefer if you have never applied for Insurance?
a) LIC
b) SBI Insurance
c) HDFC Standard Life Insurance
d) Shriram Life Insurance Life
e) Max New York Life Insurance
f) LIC
g) Shriram Life Insurance life Insurance
12. Percentage of Respondents Who Are Under Different Plans of Bajaj Life
Insurance.
a) Invest gain plan
b) Unit gain plan
c) Child gain plan
d) Whole life plan
e) Pension plan
13. Percentage of respondent’s benefits of choosing the particular products?
a) Risk coverage
b) Additional benefit
c) Maturity date
d) Sum Assured
14 Percentage of Disadvantages In Insurance Plan?
a) Liquidity
b) Lapsation
c) Unable to decide premium
d) High risk coverage
e) Fixed Term
