Research on Insurance Products

BAJAJ ALLIANZ LIFE INSURANCE CO. Ltd.

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelors of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

Dr. Manmohan Rahul Yashdeep Nelson Lakra

BBA-3RD YEAR {5th SEMSTER}

Roll No- 0011061707

ANSAL INSTITUTE OF TECHNOLOGY

}GURGAON{

Batch (2007-2010)

Certificate

I Yashdeep Nelson Lakra, Roll No. 0011061707 certify that the Summer Training

Report (BBA-311) entitled “RESEARCH ON INSURANCE PRODUCTS” is done

by me and it is an authentic work carried out by me at BAJAJ ALLIANZ LIFE

INSURANCE CO LTD. The matter embodied in this has not been submitted earlier

for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the student

Date:

Certified that the Summer Training Report (BBA-311) entitled “RETAIL

MANAGEMENT” done by Mr Yashdeep Nelson Lakra Roll No-0011061707 has

completed under my guidance.

Signature of the guide

Date:

Name of the guide :

Designation :

ACKNOWLEDGEMENT

At the outset I expressed my sincere gratitude to Dr. Manmohan Rahul ( Project

Guide) who has been a source of inspiration and guidance in preparation of this

project report and without whom this project would not have been completed.

Yashdeep Nelson Lakra

Roll No-0011061707

CONTENTS

S.NO TOPIC PAGE NO.

1 Certificate

2 Acknowledgment

3 Chapter - 1 : Profile of the company

4Chapter - 2 : SWOT Analysis of the

company

5Chapter - 3 : Analysis of financial reports

of the company

6 Chapter - 4 : Lessons Learnt

7References

8Suggestions

9Bibliography

10Questionaire

EVALUATION OF THE PROJECT

This is to certify that the project titled “Bajaj Allianz Life Insurance Co” submitted by Yashdeep Nelson Lakra of BBA Semester V of Ansal Institute of Technology affiliated to Guru Govind Singh

Indraprastha University , Delhi has been examined by the following examiners.

Internal examiner External examiner

CHAPTER I : PROFILE OF THE COMPANY

Introduction

MEANING OF INSURANCE

The business of insurance is related to the protection of the economic value of assets. Every asset has a value. The asset would have been created through the efforts of the owner, in the expectation that, either through the income generated there from or some other output, some of his needs would be met. In the case of a motorcar, it provides comfort and convenience in transportation.

There is no direct income. There is a normally expected lifetime for the asset during which time, it is expected to perform. The owner, aware of this, can so manage his affairs that by the end of that life time, a substitute is made available to ensure that the value or income is not lost. However, if the asset gets lost earlier, being destroyed or made non-functional, through an accident or other unfortunate event, the owner and those deriving benefitsthere from suffer. Insurance is a mechanism that helps to reduce such adverse consequences.

Life Assurance

It is the business of effecting contracts of insurance upon human life, including any contract whereby the payment of money is assured (except death by accident only) or the happening of specified any contingencies dependent on human life, like death a specified age. The contract would be subject to the payment of premiums for a term,

Non-Life Insurance or General Insurance

Even though conventional classification of General Insurance has been in three branches-

1.Fire Insurance2.Marine Insurance3.Miscellaneous (Accident)

Insurance,In modern times, it is classified as follows:

a)Insurance of Personb)Insurance of Propertyc)Insurance of Interestd)Insurance of Liability

Importance of INSURANCE

The entire effort of human life is to proceed from uncertainty to certainty. The rigmarole of life proceeds with first acquiring the wherewithal to earn a living and then striving for its betterment and ensuring that the comfort and pleasure derived from a physical commodity or a human being continues.

It is at the latter stage that the mechanism of Insurance comes in play.The concept of insurance is in essence related to the protection of the economic value of assets. Every asset whether physical or in form of a human being has a value. The asset is built up in the expectation that, either through the income generated there from or some other output, some needs of the individual would be met. For example, in the case of an industry its production is sold and income generated. In the case of a vehicle, it provides comfort and convenience in transportation.

However there is a normally expected life cycle for every asset during which time it is expected to perform its assigned role. So, a prudent individual can manage his affairs so that by the end of that life cycle, a substitute is in place to ensure continued benefit/comfort.

However, if due to an accident or other unfortunate event, the asset gets destroyed or made non- functional, the person deriving benefits there, from suffer. Insurance is the mechanism that helps to soften the impact of such adverse consequences by providing for some monetary substitution to face such unforeseen circumstances.The need of insurance arises from the chances of an accidental occurrence destroying or making an asset non-functional. Such loss producing eventualities are called perils e.g. Fire, floods, breakdowns, lightning, earthquakes, etc

1 ( BAJAJ ALLIANZ LIFE INSURANCE CO. LTD .

Bajaj Allianz Life Insurance Company Limited is a Union between Allianz SE, one of the world’s largest Life Insurance companies and Bajaj Auto, one of the biggest 2- &- 3 wheeler manufacturers in the world.

BAJAJ ALLIANZ LIFE INSURANCE

At Bajaj Allianz customer delight is our guiding principle. Ensuring world-class solutions by offering customized products with transparent benefits, supported by best technology is our business philosophy.

1. Most Profitable Pvt. Life Insurance Co Rs.63cr (US $ 15.3 mn.) profit for FY 06-07

2. Over 2 million (20,79,217) policies in this year – highest amongst all pvt. sector players and taking the number 1 position.

3. Largest distribution network to reach the customers across the country with 2,13,000 agents, 900 offices in 840 towns, 200 corporate agents & Bancassurance partners

ALLIANZ SE

Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion Euros (Over R. 55,00,000 crores). Allianz SE has over 115 years of financial experience in over 70 countries.

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

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

3rd largest Assets Under Management (AUM) & largest amongst

Insurance cos. - AUM of Rs 95,94,200 Cr (Euro 1078 billion)

11th largest corporation in the world

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

Established in 1890, 110 yrs of Insurance expertise

More than 70 countries, 173,750 employees worldwide

Insurance to almost half of the Fortune 500 cos

BAJAJ AUTO

Bajaj Auto is one of the most trusted name is Indian auto for over 55 years.

One of the largest 2 & 3 wheeler manufacturer in the world

21 million+ vehicles on the roads across the globe

Managing funds of over Rs 5,329 cr.

Bajaj Auto finance one of the largest auto finance cos. in India

Rs. 6,340 Cr. Turnover & Profits after tax of 767 Cr. in 2004-5

REGISTERED OFFICE

Bajaj Allianz Life Insurance Company Limited,Ground Floor, G.E. Plaza, Airport Road,Yerawada, Pune - 411 006.Tel: (020) 6602 6777.Fax: (020) 6602 6789.email:life@bajajallianz.co.inVisit us at: www.bajajallianz.com

Delhi Offices -:

Address : 4TH & 5TH FLOOR MAHATTA TOWER, 54, B-BLOCK COMMUNITY CENTER JANAKPURI, DELHI-110058 Contact : 011- 41578484/ 41579037/ 41579059

Address : 18, NETAJI SUBHASH MARG ,DARYA GANJ, DELHI Contact : Telephone :43551379, 43551374

Address : 502-503, PARMESH CORPORATE TOWER, 13, KARKARDOOMA COMMUNITY CENTRE, DELHI

DelhiPin:110092 Contact : Telephone :011 -43016004/43016010

Address : 32 , 2nd Floor, Community Centre,New Friends Colony,New Delhi-110065. Contact : Phone :011-41672737/41672738/41672739/41672740

Address : G-85, First Floor, Main Visak Marg,Preet Vihar ,Delhi -110092 Contact : 011-42420972

Address : B-37-38,First Floor, Inner CircleCannought Place, New Delhi-110001 Contact : 011-66504108/145/144/107/110/116/124/141/111/113/105/106/103/129/117/123

Address : M-7, M block Mkt, 2nd Floor, Greater Kailash (GK) II, New Delhi -110048 Contact : Phone :011-41551115/41551424

FAX :011-41551427

Address : Bajaj Allianz Life Insurance Co Ltd 29/4 ,NANGIA PARK ,

SHAKTI NAGAR DELHI DelhiPin:. Contact : Telephone :011 - 65293852

Address : 2 Floor , 32 Community Centre,New Friends Colony ,New Delhi-110065 Contact : 011-41672737

Address : 309,Apra North Ex Plaza Netaji Subash Place Pitampura Opp.T V Tower Delhi -110034 Contact : 011-32983811

Address : GROUND FLOOR, A-57, RAJOURI GARDEN, NEW DELHI – 110027 Contact : 011-41023643

2) Nature of the business: -

Bajaj Allianz Life Insurance as the name suggests is into the Insurance sector . It includes both Life Insurance and General Insurance . Life Insurance products range from variety of products like Traditional Plans , ULIP’s (Unit Linked Investment Plan), Money back Plans. General Insurance plans has products like Car Insurance ,Travel Insurance etc.

It has a large network of Insurance Consultants through which it targets customers and attracts business.

3) OUR VISION & VALUES

VISION

To be the best insurance co. in India to buy from, work for & invest in &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.

VALUES

Ensuring world class solutions & services and Offering customised products .Also Transparent benefits to all the customers a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that eliver value for money.

Understanding the needs of customers and offering them superior products and service.Leveraging technology to service customers quickly, efficiently and conveniently.

The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describes what the company stands for, the qualities of our people and the way we work.

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.

4 ( Product Range of the Company .

The Company offers a wide variety of products as mentioned below

INDIVIDUAL PLANS -:

In our constant endeavor to secure a bright and happy future for you and your family, we offer a range of insurance products that is just perfect for your investment needs.

Unit linked insurance plans

Traditional insurance plans

Pension plan

Term plans

Unit Liked Insurance Plans

Offering insurance plans with flexibility and tax benefits

Capital UnitGain: Big Boss of ULIPS

–This plan offers the Highest allocation of 97% for Regular Premium insurance plans in the market. With a lifetime of protection to match insurance and investment needs, this UnitLinked endowment plan has an option of unlimited Top Up to park your windfall gains. Choice of 5 active investment funds, Flexi plan to increase / decrease Regular Premium and 4 additional rider benefits for total protection make this plan one of the best products to invest in.

New UnitGain Plus SP: Single Premium plan with maxx allocation

New UnitGain Plus SP Plan is a Single Premium plan with maxx allocation and gives you a Guaranteed death benefit, it offers you choice of 5 active investment funds with 3 free switches allowed every year. Flexi plan allows you to make Partial and Full withdrawals after 3 years.

New UnitGain Premier : Give 100 and get 105 Now –‘ umeed se zyaada.”

A Simple single premium unit linked investments plan which give to upfront 105%allocation of the single premium on day 1.

New FamilyGain – Policy as pure as your love for family.

The only Unitlinked insurance plan with ethical equity fund which also Suits religious investment guidelines as well is a good investment plan which offers 3 investment funds to choose from, host of additional benefits and guaranteed life cover making it a very attractive insurance product.

New UnitGain Super : Insure Fully and get MAX Allocation.

This is a unique combination of protection with the attractive prospects of investing in securities. With higher allocation upto 93% and choice of 5 investment funds with flexible investment management. Plus, you have the options of switching between the funds at any time this works a wonderful

investment cum insurance plan. You also benefit from attractive tax advantages and unmatched flexibility to match your changing needs. In addition, you benefit from the advantages of low charges

New UnitGain Plus : A Unit Linked Plan

–Bajaj Allianz UnitGain Plus offers the unique option of combining the protection of life insurance with the attractive prospects of investing in securities. You have the choice of 5 investment funds with flexible investment management, you can change funds at any time. You also benefit from attractive tax advantages and unmatched flexibility -to match your changing needs. And the advantage of low fund management & fund administration costs.

UnitGain Guarantee SP

This is a unique Single Premium plan, which gives guaranteed maturity benefit regardless of market performance. This plan is specifically designed keeping in mind the uncertainty in the stock markets and comes with a unique 3-in-1 Capital Guarantee Fund, which gives guaranteed maturity benefit of upto 112% of allocated premium less charges.

Traditional Insurance Plans

That help you save tax and earn more interest

InvestGain :An Endowment Plan

This savings plan combines high protection (up to quadruple cover) with a unique family income benefit

ChildGain : Children's Policy

Right from providing for your child's education to securing a bright future, this plan is tailor made to suit your child's needs

CashGain : Money Back Plan

This is the only money back plan that offers quadruple protection, going up to 4 times the basic sum assured, and a family income benefit.

Protector : A Mortgage Reducing Term Insurance Plan

This is the perfect plan to protect the family from the repayment liability of outstanding loans, in the unfortunate case of death of the loanee. There is also an option to cover the co-applicant of the loan at a very nominal cost under this plan.

Save Care Economy SP : Single Premium Endowment Plan

A single premium investment plan for10 years, which provides life cover along with growth in savings.

HealthCareThe 6-in-1 HealthCare plan at just Rs 100 per month is a wonderful way to secure your health for 3 years term

Pension Plans

When you have retired, your golden years can be secure. Live a worry–free life.

New UnitGain Easy Pension Plus : Unit Linked Retirement Plan without life cover

Bajaj Allianz UnitGain Easy Pension, is a plan that helps you take control of your future and ensure a retirement you can look forward to. This is a regular premium investment linked deferred annuity policy .

There are two packages to choose from:

New UnitGain Easy Pension Plus Regular Premium& New UnitGain Easy Pension Plus Single Premium.

Gives you the flexibility to purchase units in any/all of the 6 funds available with us.

Swarna Vishranti : Retirement Plan

In addition to life insurance and attractive tax benefits, this plan enables you make adequate provisions for your years after retirement as well. This deferred annuity plan comes with a host of additional benefits which include term cover, accidental cover, Critical illness and hospital cash benefits.

Term Plans

Pure Insurance plans to protect your family

TermCare:

Term Plan with Return-of-PremiumAn economic way of providing life cover, this plan also ensures the return of all premiums at the time of maturity.

RiskCare : Pure Term Plan

The "Bajaj Allianz Risk Care" Plan is a pure term insurance plan & offers one of the most economical means to provide financial security to your loved ones. The only pure term plan in the market to provide Hospital Cash Benefit.

Lifetime Care : Whole Life Plan

This whole life plan provides survival benefits at the age of 80 hereby making sure you are financially secure at a time when you need it the most.

Group Life Plans

Group Credit Shield

Available for Employer - Employee Groups and Non Employer – Employee GroupsThis scheme insures the loan amount outstanding in the account in case of premature death or disability.

Group Term Life

Available for Employer - Employee Groups and Non Employer – Employee GroupsThis scheme covers the members of an organisation against the risk of death or disability

Group Term Life Scheme in lieu of EDLI)Employees Deposit Linked Insurance Scheme(

This scheme is a better alternative to the Employees Deposit Linked Insurance Scheme, 1976, under Sec 17(2) of the Employees Provident Fund and Miscellaneous Provisions Act.

Group Gratuity Care

This scheme provides for systematic funding to meet your gratuity liabilities.

Group Superannuation Care

A defined contribution scheme that provides for a Retirement Fund which ensures financial stability, security and independence in the post retirement years of each member.

Small Group Term Life

–Available for Employer - Employee Groups and Non Employer Employee Groups.This scheme covers small groups between size of 10-49 against the risk of death.

Flexible Rider Options :

BAJAJ Allianz offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer.

1 .Accident & disability benefit:If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.

2 .Accident benefit:This rider option pays the sum assured under the rider on death due to accident.

3 .Critical Illness Benefit:Protects the insured against financial loss in the event of specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death.

4 .Major Surgical Assistance Benefit:

Provides financial support in the event of medical emergencies, ensuring that benefits are payable to the life assured for medical expenses incurred for surgical procedures. Cover is offered against different surgical procedures.

5 ( Size of Organisation

In the five years after its foundation, the Allianz Group's Indian life insurer has sold over two million life insurance policies and achieved a total premium income of more than one billion US dollars.

1. Most Profitable Pvt. Life Insurance Co Rs.63cr (US $ 15.3 mn.) profit for FY 06-072. Total Number of employees all over India : 4,24,000 3. Largest distribution network to reach the customers across the country with 2,13,000 agents, 900 offices in 840 towns, 200 corporate agents & Bancassurance partners4. Assets under management Rs 5,500 cr.5. Shareholder capital base of Rs 700 cr.

6 ( Organization Structure of the company -:

DIRECT MARKETING CHANNEL STRUCTURE IN

BAJAJ ALLIANZ LIFE INSURANCE COMPANY

LIMITED

7 ( Market Share and Position of the Company -:

The market share of the company has gone up from 2.8% to 7.2%. The company has made a profit before taxes of Rs 117 crore and a profit after tax of Rs 75 crore. In the first quarter of the current financial year, it garnered a premium income of Rs 574 crore and net profit of Rs 21 crore.

Data gives preference of respondents of insurance company.

Company’s Name No. of Respondent Share(%) L.I.C. 78 78 ICICI Pru 9 9 Bajaj Allianz 7 7 Kotak Mahendra 4 4 HDFC 3 3

Total 100 100

Interpretation78% of the people have LIC policy and is ranked number one by that

percent of respondent.

position rd 3- BAJAJ ALLIANZ

8 ( Present Leadership -:

Assistant Division Manager- KABRA ASHISH

Address : 4TH & 5TH FLOOR MAHATTA TOWER, 54, B-BLOCK COMMUNITY CENTER JANAKPURI, DELHI-110058 Contact : 011- 41578484/ 41579037/ 41579059

Sales Manager- HILGARG NIKAddress : 4TH & 5TH FLOOR MAHATTA TOWER, 54, B-BLOCK COMMUNITY CENTER JANAKPURI, DELHI-110058 Contact : 011- 41578484/ 41579037/ 41579059

Sales Manager-GUNJAN KATYALAddress : 4TH & 5TH FLOOR MAHATTA TOWER, 54, B-BLOCK COMMUNITY CENTER JANAKPURI, DELHI-110058 Contact : 011- 41578484/ 41579037/ 41579059

Senior Sales Manager- VIVEK SHARMAAddress : 4TH & 5TH FLOOR MAHATTA TOWER, 54, B-BLOCK COMMUNITY CENTER JANAKPURI, DELHI-110058 Contact : 011- 41578484/ 41579037/ 41579059

Senior Sales Manager- SHIV SHARMAAddress : 4TH & 5TH FLOOR MAHATTA TOWER, 54, B-BLOCK COMMUNITY CENTER JANAKPURI, DELHI-110058 Contact : 011- 41578484/ 41579037/ 41579059

Board of Directors

Rahul Bajaj, ChairmanAlso Chairman, Bajaj Auto Ltd

Dr. Werner Zedelius , Also Member of the Board of Management,

Kamesh Goyal, Alternate Director, (w.e.f. 6th March 2008)Also Regional CEO, Allianz, MENA&

CEO, Bajaj Allianz Life Insurance

Appointed Actuary - Mrs. Asha Joshi

Audit Committee - Heinz Dollberg - Chairman, Niraj Bajaj, Dr. Werner Zedelius, Sanjiv Bajaj, Ranjit Gupta, Don Nguyen

Auditors - S R Batliboi & Co., Dalal & Shah

Bankers - Axis Bank, Citibank, Deutsche Bank, HDFC Bank, Standard Chartered Bank

Company Secretary - Onkar Kothari

9 ( Sources Of Data Collection -:

Primary Data: Personal Meeting with Company officials

Secondary Data:Product Brochures

Annual ReportsIRDA act, 1999Handbook of Insurance agents of different Life Insurance companiesInternet websites of IRDA and various Life Insurance companies & various websites.

CHAPTER II: SWOT ANALYSIS OF THE COMPANY

Strengths :

1.Strong promoters: Good promoters of insurance and wide variety of products.

2.Best Employees with depth knowledge: Highly trained employees and also a all India network available at the company’s disposal.

3.Offering products for all classes: One of the major strengths of the company is targeting of the products to all classes of the society .Not only the HNI’s (High Net worth individuals) are targeted but also people from lower classes.

3.Strong IT infrastructure : All this is accompanied by an state of the art technology and gadgets .

3.High Rate of Returns : The high rate of returns have boosted the prospects of the company and is looked upon as a name of trust and worthiness .

Customer SatisfactionIC's (Insurance Consultants)Trust amongst the Population

4 .Money power : Huge financial resources helps the company to setup a good infrastructure for working and also helps conducting business on massive scale ,

also which makes them ignorant about the gestation period .The agents are very selectively chosen have excellent communication skills.

5. Service quality : It is the crux of mission .That is providing services of the highest quality..

6.Large network branches : This has helped the customer to great extent as there are large number of office all over India.

7.Offering products for all classes: This has been one of the major USPs of the comapnay that is providing products with which all classes of people can be identify with.

8.Strong IT infrastructure: Bajaj has always supplied its ICs with state of art technology and equipments.

9.High Rate of Returns:One of the major reason of customers flocking to the company is the high rate of return provided .This attracts customers.

10 .Customer Satisfaction: Customer satisfaction has always been top most priority of the company .This has led to its immense popularity.

11 .Trust amongst the Population: With renowned names like Bajaj auto and Allianz SE joining hands and having satisfied customer ,trust among population is bound to increase.

Weakness :

1 .Competitor Attraction :Its all-India presence and good track record makes Bajaj Allianz a fertile company for poaching by other private insurance companies.

2.Attrition : Due to increase in competitors employee turnover ratios does go up thus taking away good personnels from the company.

3.Lack of Media Coverage : One of the major flaws in the promotion strategy

is low usage of media as a way of promotion.

4 .Lack of Co-ordination : Lack of Co-ordination among employees is seen sometimes.

5.Rigid Organizational Structure : The rules and norms of the company tend to

be very rigid hamper growth.

6 .High targets : High and sometimes unrealistic targets are set for financial advisors and for the sales departments.

7 .Less Product Differences :Many competitors in the market offer same product by the title difference in the premium and offerings.

8 .Risk Involved : Sustainable to risk associated with investments in money market.

Opportunities :

1 .Large Potential : Huge market is literally untapped, out of estimated 320 millions insurable markets only 20% of the population is insured.

Also includes Geographical Expansion

2 .De tariffing :De-tariffing will offer differential pricing for our customers .

3.Rural Market : Tapping the rural market would provide immense database of customers.

Health insurance and pension schemes, an estimated market potential of approximately $15 billion.

Threats:

1 .Lower Profits for future :An industry where everyone focuses on increasing market share and aggressiveness greatly increases pressure on profitability.

16 more companies entering the market which would cause decrease in the market share & profit.

2 .Multiple Players : Multiple players in the life insurance so, Bajaj Allianz faces very tough competition from other leaders in the industry. Bajaj Allianz needs to work hard in order to stay competitive insurance market. Further, the company should appoint professional agent who should be able to provide customer with a comparison of multiple schemes and also explain them in simple terms, so that customer able to make an informed decision.Players like ICICI Pru and SBI life with low premium for the similar plans.

3.Govt. policies :Current Govt. policies do not encourage gross domestic savings. If the tax liability of the service class rises, the customer will have little money to invest.

4 .LIC : LIC has woken up from sleep and is following competitive strategies. Its huge surplus in Life Fund gives a capability to lodge Price war

SuggestionsA serious effort in media coverage and increase in employee benefits

Bajaj Allianz should now try to identify the gap between current level of customer service and customer expectations.Some of the strategies being recommended are as follows:

Product Differentiation : Offering a product that is distinctly different from other products available in the market.

Innovativeness: Identifying means of a delightful customer experience.

Riders: These are additional offerings along with the main product.

Flexibility: The companies should make their products flexible for the convenience of their customer.

Hassle Free Service : All bureaucracy in customer interactions should be eliminated.

Proper Policy Documentation : Wrong interpretations/ non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies.

CHAPTER III : ANALYSIS OF FINANCIAL REPORTS OF THE

COMPANY

Financial Analysis of 4 YearsTheoretical Analysis of the above mentioned Financial Data And also Comparison with Last year

Despite conditions which were not conducive for growth of gross premium, the Company managed to maintain a growth rate which was more than twice that of the market. Company’s gross written premium (excluding share of premium from

the IMTPIP), grew by 33.3% during 2008-09 and, despite intense price competition, the company maintained its second position among the private sector companies in terms of gross written premium.

The market share of the company (excluding premium of specialized insurers) increased from 7.2% in 2007-08 to 8.5% in 2008-09. Including the share of inward reinsurance business from the IMTPIP, the growth rate would have been 43.0%.

During 2008-09, the company clocked gross written premium of Rs. 24,045 Mn excluding share of business from the IMTPIP as compared to Rs 18,033 Mn in 2007-08. Including share of inward business from the IMTPIP, the gross written premium amounted to Rs. 25,780 Mn. On account of your Company’s policy of steadilyincreasing it’s retention in line with it’s capital base, the net earned premium for the year (excluding net premium from inward business of the IMTPIP), rose to Rs. 13,266 Mn, an increase of 58.6% over theprevious year of Rs. 8,366 Mn.

Including the net premium arising out of the share of business from the IMTPIP, the net premium for theyear 2008-09 was Rs. 14,134 Mn. Although de-tariffication had an adverse effect on the price per policy, the number of policies sold continued to grow. In the year under review, your Company sold 6.61 Mn. policies as against 4.90 Mn. policies sold in the previous year. This growth indicates that despite severe price competition, more customers preferred your Company’s service offerings, drawn by it’s strong brand image, convenience of buying and satisfaction with its service levels.

The total incurred claims for the current year including actuarial provisions but excluding share of claims of the IMTPIP, were Rs. 8,375 Mn. as against Rs. 5555 Mn. in the previous year. The number of claims reported during the year was 413,281 as compared to 309,160 in the previous year.

Profit Analysis

The company has earned a Profit Before Tax of Rs. 1,679 Mn for the year ended 31st March 2009, an increase of 43.5% over the previous year profit of Rs. 1,170 Mn. The Profit Before Tax includes a provision of Rs. 361 Mn towards provisions for losses from the IMTPIP.

The net profit for the year, after provisions for reported losses from the IMTPIP, was Rs. 1,056 Mn as against Rs. 754 Mn reported in 2007-08, which is an increase of 40.0%. In a year when prices of insurance fell significantly,increasing its profitability whilst improving the market share has been a significant achievement for the Company.

The Earnings per share (EPS) for the year ended 31st March 2009 was Rs. 9.59/- (compared to Rs. 6.85/- for the previous year) and the book value of equity shares on 31st March 2009 was Rs. 52.15/- per share (as against Rs. 37.40/- per shares as on 31st March 2008).

CHAPTER IV : LESSONS LEARNT

Practical knowledge Gained

Experience

I had a very good experience while working as in Bajaj Allianz. My training was of two months during which I worked in the following department:

- Sales and Marketing

Under Sales and Marketing I learned a variety of techniques of how to attract customers. Theoretical Concepts like Product Differentiation and Target Markets were also used . Sales promotion was done on a wide scale basis .

Various strategies of marketing were used to lure customers to the product of the company . Drawbacks of other companies were made known to us so that we could use the same in selling our products and countering the customer’s queries .

Also I became a certified Insurance Consultant ,by clearing the exam prescribed by the IRDA .

Knowledge

After the completion of summer training I gained the following knowledge and skills regarding the following:

1. How do insurance companies function

2. What are ULIP’s and why are they so important for a person.

3. How to plan your future through retirement solutions.

4. What are the drawbacks of LIC , the biggest player in the Insurance Industry.

5. Various affects of the share markets on the plans and their growth.

6. Techniques of communication and ways to attract customers .

7. Various other components of insurance .

PROBLEMS FACED DURING TRAINING

The old and out dated technique of tele marketing is used to prospect customers. The

company must sponsor shows and give presentations in corporate houses. Also a

genuine effort should be made for media coverage. Coordination among employees is

required to a great extent.

Some of the main problems in selling the policies are:

Large amount of competition (15 players in the market)

Other brands are well advertised and have higher recall value

LIC is considered a safer option

Face competition from banks and mutual funds

High premium policies are difficult to market

Incorrect perception about insurance

Interested prospects might have a lack of time and postpone investments

Customers get defensive if you cold call

Short term plans are available only at large premium

Some prospects have already invested and are not interested in further

investments

Consumers don’t want to undertake medical examinations

Large amount of documentation

Customers do not like their money locked up for many years

Lack of awareness about the unit linked funds in the market

Customer ignorant about the importance of insurance hence usually like to

keep money in Fixed Deposits.

Bajaj is private company hence customers are a apprehensive to invest in the

company

SUGGESTIONS FOR IMPROVEMENT

Advertise about the company and its products – it motivates individuals to

purchase insurance

Create a positive perception about insurance

Speak about the good features a plan offers like high returns, life cover, tax

benefits, accident cover

Try to sell the product/plan which the consumer requires and not the plan

where the advisors benefit is higher

Improve the efficiency in operations

Attract the youth of India with higher returns on investment as returns are

the motivating factor which influence purchase of insurance

Promote insurance in colleges and corporate houses

Bajaj Allianz is actually Bajaj auto & Allianz SE – BAJAJ has a good

brand name and this brand name could be used to give a push to its products

Bajaj Allianz could have a brand ambassador or a mascot to promote its

services

Should have partial withdrawals from the first year onwards

Tap the rural market where there is large potential

Make products more straight forward – reduce complexities

Large scale promotion should be done.

A better work environment should be created as there is too much politics

involved between SMs .

Norms and rules of the company should made a little flexible as it would

help the ICs .

Monetary incentives should be a bit higher than present.

RECOMMENDATIONS:

I would suggest the Students of AIT{Ansal Institute Of Technology} to very well go to Bajaj Allianz to have share of valuable experience and learning . These are the following points which would benefit the students

if they work in Bajaj Allianz-:

Improvement of Marketing Skills : An improvement in the marketing and communication skills would definitely occur as the students would be trained accordingly and also be given practical exposure.

Valuable experience and also a opportunity to earn money : The students can gain valuable experience in sales and marketing which are the two major fields in any industry .Also an opportunity to earn money .

Association with trained and pleasant Managers : The trainees can interact and learn a lot from the well trained and polite staff of the company.

SUGGESTIONS

Here are some suggestions, which may help to strengthen the firm further

Many of the insurance care consultants of the Bajaj Allianz. Has the lack of goodcommunication skills and training. So training should be easy.

Bajaj Allianz. Should use new techniques of sales promotion.

Customer services should be more comfortable than others.

People must be made aware of the benefits of the policies of Bajaj Allianz.

The company should give personal attention to each customer.

Proper assistance should be provided to the customer at the time of claimsettlement.

All the details about the company should be given to the customers.

Regular advertisement of the company should be given TV and Newspaper.

BIBLIOGRAPHY

Books

Kothari C.R., (1999) Research Methodology, Wishwa

Prakashan

Kotler P. and Armstrong G., (2005) Principles of

Marketing New Delhi, Prentice Hall of India

Kotler P., (1999)Marketing Management Analysis, Planning,

Implementation and Control, New Delhi, Prentice Hall of

India

Saxena Rajan, (1999) Marketing Management, Tata

McGraw Hill

Websites:

www.bajajallianz.com

www.indiainfoline.com

www.irdaindia.org

www.thehindubusinessline.com

QUESTIONNAIRE:

Name : _____________________________________Address : _____________________________________

Q.1 To which technique of sales promotion you prefer?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.2 which technique is giving good response from customers?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.3 Which technique is economically beneficial?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.4 Which technique requires less time in sales promotion?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.5 Which technique is easily manageable?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.6 Which technique requires less knowledge to execute?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-off

Q.7 Which technique requires more knowledge to execute?

A) Display B) Door to door demonstration

C) Exhibition D) Catalogue

E) Price-offQ.8 Price off and installment offers are necessary for sales promotion?

A) Yes B) No

C) Can’t say

Q.9 Do you think that sales promotion program that is presently undertaken by BajajAllianz. are satisfactory?

A) Yes B) No

C) Can’t say

Q.10 Should Bajaj Allianz. take up new sales promotion program?

A) Yes B) No C) Can’t say