Comparative Analysis of Bajaj Allianz Lic With Others Life Insurance Companies

“COMPARATIVE ANALYSIS OF INSURANCE PRODUCTS OF BAJAJ ALLIANZ LIFE

INSURANCE CO. LTD. WITH OTHER LIFE INSURANCE COMPANIES”

INDEX

S.No. Particulars .

1. Acknowledgement

2. Introduction

3. Need for Life insurance

4. Company Profile

5. Product Profile

6. Comparative analysis

7. Research Methodology

8. Suggestions

9. SWOT Analysis

10. Suggestions

11. Conclusion

12. Appendix

13. Data Analysis

14. Bibliography

INTRODUCTION

Our Plans Arm You For Tomorrow... At Bajaj allianz Life, there is nothing we

hold higher than life itself. We therefore view our plans not as tax saving devices

but as a means to add protection to life. We believe in enhancing the very quality

of life, in addition to safeguarding your security. Our products are designed in a

way that helps you bear heavy expenses while building your home or providing

for your children's education and marriage. We make sure your post retirement

years are carefree and secure, ensuring your family and loved ones are protected

against financial difficulties in the event of a premature death. Depending on

your personal needs, priorities and individual responsibilities, you can go for a

Protection, Saving or Investment plan. If you are not sure of which plan would

suit you best, you could use the Life Maker, an application we developed for that

very purpose

WHY DO I NEED LIFE INSURANCE?

That’s a common question. Why would you need Insurance? Simply put, Life

brings with it many surprises, some pleasant and some not so and a Life Insurance

Plan ensures that you are better prepared to face uncertainties. How? In a number

of ways:

Protection

You need life insurance to be there and protect the people you love, making sure

that your family has a means to look after itself after you are gone. It is a

thoughtful business concept designed to protect the economic value of a human

life for the benefit of those financially dependent on him. That’s a good reason.

Supposing you suffer an injury that keeps you from earning? Would you like to

be a financial burden on your family, already losing out on your salary? With a

life insurance policy, you are protected. Your family is protected.

Retirement

Life insurance makes sure that you have regular income after you retire and also

helps you maintain your standard of living. It can ensure that your post-retirement

years are spent in peace and comfort.

Savings and Investments

Insurance is a means to Save and Invest. Your periodic premiums are like Savings

and you are assured of a lump sum amount on maturity. A policy can come in

really handy at the time of your child’s education or marriage! Besides, it can be

used as supplemental retirement income!

Tax Benefits

Life insurance is one of the best tax saving options today. Your tax can be saved

twice on a life insurance policy-once when you pay your premiums and once

when you receive maturity benefits. Money saved is money earned!

Superior Technology

In order to ensure speedy and accurate processing of your needs, we have

established world class technology, with renowned insurance software, which

networks all our offices and intermediaries

Using the Web, policies can be issued from any office across the country for retail

products

Unique, user friendly software developed to make the process of issue of policies

and

claims settlement simpler (e.g. online insurance of marine policy certificate)

Unique Forms of Risk Cover

Film insurance

Event management cover

Sports & Entertainment Insurance Package

Risk Management- Our Expertise

Our service methodology is tried, tested and Proven the world over and involves:

Risk identification: Inspections

Risk analysis: Portfolio review and gap analysis

Risk retention

Risk Transfer: To an insurer as well as reinsurer (as required)

Creation of need based products

Ongoing dialogue

COMPANY PROFILE

Bajaj Allianz Lifel Insurance Company Limited

Bajaj Allianz Life Insurance Company Limited is a joint venture between Bajaj Auto

Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and

strength.

Bajaj Allianz Life Insurance received the Insurance Regulatory and Development

Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct Life

Insurance business (including Health Insurance business) in India. The Company has an

authorized and paid up capital of Rs 147 crores. Bajaj Auto holds 74% and the remaining

26% is held by Allianz, AG, Germany.

In its first year of operations, the company has acquired the No. 1 status among the

private non-life insurers. As on 31st March 2006 Bajaj Allianz Life Insurance

maintained its leadership position by garnering the premium income of Rs.1285 crore.

Bajaj Allianz has made a profit after tax of Rs.52 crores.

Bajaj Allianz today has a network presence in over 100 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 half of the current financial year, 2006-07, Bajaj Allianz garnered a premium

income of Rs. 842 crores, achieving a growth of 35% and Net profits rose to Rs.27

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 Life Insurance Company offers technical excellence in all areas of Life 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. 147 crores, the company is

Achievements

Bajaj Allianz has received ,"iAAA rating, by 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.

Indias Most Respected Companies The Business World's Most Respected

Companies survey 2006 ,has ranked "Bajaj Allianz Life Insurance, No.2 this year,

in the insurance sector.

Bajaj Auto Limited

Bajaj Auto Limited is the largest manufacturer of two and three-wheelers in India and

also one of the largest manufacturers in the world. Bajaj Auto has been in operation for

over 55 years. As a promoter of Bajaj Allianz Life Insurance Company Ltd., Bajaj Auto

has the following to offer:

• Vast distribution network.

• Knowledge of Indian consumers.

• Financial strength and stability to support the insurance business.

• Visit Bajaj Auto's Website www.bajajauto.com

Allianz AG, Germany

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

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

one of the largest global composite insurers with operations in over 70 countries. Further,

the Group provides Risk Management and Loss Prevention Services. Allianz has insured

most of the world's largest infrastructure projects (including Hongkong Airport and

http://www.bajajauto.com/

Channel Tunnel between UK and France), further Allianz insures the majority of the

fortune 500 companies, besides being a large industrial insurer, Allianz has a substantial

portfolio in the commercial and personal lines sector, using a wide variety of innovative

distribution channels.

Allianz AG has the following to offer Bajaj Allianz Life Insurance Company Ltd. :

• Set up and running of Life insurance operations

• New and improved international products

• One of the world's leading insurance companies

• More than 700 subsidiaries and 2 lac employees in over 70 countries worldwide

• Provides insurance to almost half the Fortune 500 companies

• Technology

Visit Allianz AG website www.allianz.com

Other similar businesses

The promoters have also incorporated a Life insurance Company in India, called Bajaj

Allianz General Insurance Company Limited to provide life insurance solutions.

Visit Bajaj Allianz General Insurance Website www.bajajallianz.co.in

The Bajaj Allianz Difference

• Business strategy aligned to clients' needs and trends in Indian and global economy /

http://www.bajajallianz.co.in/

http://www.allianz.com/

industry

• Internationally experienced core team, majority with local background

• Fast, decentralised decision making

• Long-term commitment to market and clients

Trust

At Bajaj Allianz, we realise that you seek an insurer whom you can trust. Bajaj Auto

Limited is trusted name for over 55 years in the Indian market and Allianz AG has over

110 years of global experience in financial services. Together we are committed to

provide you with time tested and trusted financial solutions that provide you all the

security you need for your investments.

Underwriting Philosophy

Our underwriting philosophy focuses on :

Understanding the customer's needs

Underwriting what we understand

Meeting the customer's requirements

Ensuring optimal coverage at lowest cost

Claims Philosophy

The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims

processing. We pride ourselves on a friendly and open approach. We are focused towards

providing you a hassle free and speedy claims processing.

Claims philosophy is to :

• Be flexible and settle fast

• Ensure no claim file to be seen by more than 3 people

• Check processes regularly against the global Allianz OPEX (Operational Excellence)

methodology Sold over 1 million since inception.

Customer Orientation

At Bajaj Allianz, our guiding principles are customer service and client satisfaction. All

our efforts are directed towards understanding the culture, social environment and

individual insurance requirements - so that we can cater to all your varied needs.

Experienced and Expert Servicing Team

We are driven by a team of experienced people who understand Indian risks and are

supported by the necessary international expertise required to analyse and assess them.

Service engineers located in every major city .

PRODUCT PROFILE

PRODUCT PROFILE

What are these plans? Protection plans safeguard your income and your family’s financial

future in case you are not around. They shield you from heavy economic loss and reduce

the impact of financial risk on you and those dependent on you. Conquering Life Saving

plans act as a compulsory savings instrument for families when the premium is paid

regularly. They work as long-term savings, enhanced by tax benefits, which give you the

financial strength to achieve your life goals. Capital unit gain ,Child gain , .

Investment plans act as wealth creation instruments helping to create big estates for the

family. It is a long-term investment, free from the risk of market swings. At the end of the

term, you or your family can enjoy added returns on investment. Powering Life, One

Life .

Retirement plans can ensure that your post-retirement years are spent in peace and

comfort. They make sure that you have regular income after you retire and also helps you

maintain your standard of living.

(c) CAPITAL UNIT GAIN

Guaranteed Maturity Benefits (Payments in Case of Death and at on

Maturity).

Flexible maturity benefits option

Build in Wavier of Premium Benefit

ELIGIBILITY :

Minimum entry age : 18 years,

Maximum Entry age – 55 year,

Maximum maturity age : 65 years.

TERMS :

10 – 20 years.

* CHILD GAIN PLAN

1. Regular Cash Returns

2. The Cash Bonus Advantage

3. Money back plan with loan facility

ELIGIBILITY :




TERMS :

16 years

20 years

24 years.

* POWERING LIFE

1. Safe investment with high Tax – free returns.

2. Customizable premium payment term

3. Enhancing life cover

ELIGIBILITY :




TERMS :

10 years

15 years

20 years.

COMPARATIVE ANALYSIS OFINSURANCE

PRODUCTS OF BAJAJ ALLIANZ LIFEINSURANCE CO. LTD. WITH OTHER LIFE

INSURANCE COMPANIES

Features\Companies Bajaj Allianz ICICI Prudential

Birla Sun Life

Tata AIG

Plan Name Capital Unit Gain

Life Teme Super

New Classic Life Premier

Invest Assure ll

Min/ Max Age at entry

0 (risk commences at age 7)- 60

0/65 30 days to 30 yrs for whole life plan, 40 for 30 yrs term, 50 for 20 yrs term and so on.

30 days to 45/55/60 yrs (depending on term)

Max Age at maturity 70 75 70 yeats. 15,20,30Min/Max Premium 10,000/No limit 18,000/No

LimitMin Annual prem of Rs. 25000

Premium Type Regular Regular Limited (up to 5 yrs) or Regular as per term of the plan

Regular

Min/ Max Sum Assured

Min 0.5* term* AP, max y* AP where y for base cover or base cover with Accidental death &/or TPD rider is0- 30 31-35 36-40 41-45 46-55 56-60 100 85 70 50 30 20Y for base cover with any other rider or with more than one rider MAX (5,0.5* policy Term)

Min SA = 0.5 *term* Annualised premium, s.t. min of 100,000

Min SA 2 lacs.Max SA No limit

SA is a multiple of AP. Multiple depends on entry age and term of the policy and policy holder gets a choice

Death Benefit Before Age 7 – Degular premium F. V & Top-Up FV. To be set off by partial withdrawals as

SA net of permissible withdrawals or FV whicherer is higher. Before age 7

Before age 5 only FV Btwn age 5 & 60 – higher of FV or SA less withdrawals in last 2 yrs

SA less permissible withdrawals or FV whichever is higher.

mandated. it is the FV. prior to date of death.After age 60 – higher of FV or SA less all withdrawals m,ade after age 58.

Flexiblity in Death Benefits

None None NA Increase allowed subject to U/W.

Maturity Benefit Fund Value Fund Value, settlement option

Fund Value Fund Value

Partial Withdrawals After 3 years. Min Rs 5000. Min FV 1.5 annual premium have to maintain. Provided age attainrd age attained is 18 yrs.

After 3 years. Min Rs 2000.

After 3 years or LA attaining majority, whichever is later. Min Rs 10,0 00; Min FV Rs 25,000.

After 3 years . Min Rs 10,000. 4 withdrawals allowed per yr. Min FV 1 annual premium. Surrender charges applicable.

Full Surrender Any time after 3 yrs. S.t. Surrender charges applicable only on the capital units. 1-(1/1.05)^N, N=Lower of outstanding policy term or 20 yrs

After 3 yrs. Charges after 3 & 4,yrs are at 2% & 1%resp. No charges from yr 5 onwards.

Charges applicable in the first 6 years.

Anytime after 3 yrs . Charges 100% firs 3 yr reducing thereafter. No charges after 6 yrs (20,30) & 5 yrs (15).

Features\ Companies

Bajaj Allianz Aviva HDFC Standerd

SBI Life

Plan Name Capital Unit Gain Easy Life Plus Endowment plus

Horizon ii

aMin/Max Age at entry


18-50 18-65,55 with riders

0-60

Max Age ar maturity

70 60 75 without riders, 65 otherwise

70

Min/Max Term

10, theron customer selectable term, For minor(18-entry age)

10,15,20,25 10-30 10/40(for minor lives min term is 10 or 18- entry age)

Min Max Premium

10,000/No limit 6000/50000 Rs 10,000 12,000/100,000

Premium Type

Regular Reguler Regular; Over the term of the plan

Regular; Over the term of the plan

Min/Max Sum Assured

Min 0.5*term*AP, max y*AP where y for base cover or base cover with Accidental death &/or TPD rider is 0-30 31-35 36-40 41-45 46-55 56-60100 85 70 50 30 20Y for base cover with any sther rider or with more than one rider Max (5, 0.5* policy Term)

10*AP for 10, 15 & 20 yr

terms. 12.5* AP for 25 yr term

Min Term term*0.5*APMax up to 40* AP

1.2 lakh/10 lakh

Death Benefit

Before age 7- Regular Premium F. V. & Top-Up F. v. if any Above7: Higher of SA or FV.

In yr 1, 110% of AP or FV

whichever s higher; From yr

2 onwards, higher of Fund Value & SA. In

case of

SA- withdrawals in last 2 years plus FV whichever is higher.

FV+SA, for age below 7, FV only

To be set off by partial withdrawals as mandated.

Accidental death, higher of

SA & FV+addtnl

SAFlexibility in Death Benefits

None None Increase or decrease in sum assured is not allowed.

Increase/decrease in SA not

Maturity Benefit

Fund Value Fund Value; settlement

option

Fund Value

Partial Withdrawals

After 3 years. Min Rs 5000. Min FV 1.5 annual premium have to maintain. Provided age attained is 18 yrs.

Allowed after 3 yrs

After 3 years. Min Rs 10,000. Withdrawal is allowed till FV after charges is greater than equal to annual premium under the plan.

After 3 yrs. Two withdrawals in a year is free. Charges 1% on withdrawal amount.

Full Surrender

Any time after 3 yrs. S.t.Surrender charges applicable only on the capital units. 1-(1/1.05)^N,N=Lower of outstanding policy term or 20 yrs

1-(1/1.05^N)*valu

e of initial units,at the unit price,on the date

of surrender

1-{1/1+x)}^N]*Value of accumulation units, at their unit price,on the date of surrender. The variable x varies with the number of completed years premiums paid at the date of surrender:

After 3 years 100% FV. Before 3 urs nothing is payable.

After 3 yrs, provided at least 1 premium has been paid. 1% yr 4 onwards (on SV).


Birla Sun Life Kotak


Life Time Plus Flixi Save plus

Safe Investment plan ll

Min/Max Age at entry


0/65 30 days to 60 years

0-65

Max Age at maturity

70 75 75 yrs 75

Min/max Term 10,thereon customer selectable term, For minor(18-entry age)

10-30 yrs 10 to 0 years 10-30

Min Max Premium 10,000/No limit

20000/300000 10,000/No Limit For regular prem, 50,000 for ltd. Pay

Premium Type Regular RP Single or regular

Regular & Limited payment; 3,5,6,7,10,15 & over term

Min/Max Sum Assured

Min 0.5*term* AP where y for base ckover or base cover with Accidental death &/or TPD rider is 0-30 31-35 36-40 41-45

Min SA= 0.5*term Annualised premium

Min SA-For SP plan 125% of the SA,2 lacs for term upto age 70 and 100,000 otherwise. Max SA-No limit

Greater of 5*AP or 0.5*Term*AP

46-55 56-60100 85 70 50 30 20Y for base cover with any other rider or with more than one rider MAX

(5,0.5*Policy Term

Death Benefit Before Age 7-Regular Premium F.V. & Top-Up F.V. if any Above 7: Higher of SA or FV. To be set off by partial withdrawals as mancatem.

SA + FV,only FV before age 7

Higher of FV,jGFV or SA less withdrawals made in last 2 years. Up to age 60.After age 60,higher of FV GFV,SA less withdrawals made after age 58. Before age 1 year, only FV

SA less withdrawals made in last 2 years prior to death, or FV which ever is higher + funds in Supp A/C(top-up account)DB to be set off by partial withdrawals made 2 yrs prior to death before age 60 and by all partial withdrawals made after age 58

Flexibility in Death Benefits

None Decrease in SA is allowed but not increase.

Increase in SA from 6th policy year, once in 5 years, min SA increase Rs.50,000.

Increase or decrease in sum assured is not allowed.

Maturity Benefit Fund Value FV; with settlement option

Higher of FV of GFV

Guaranteed maturity value

Partial Withdrawals After 3 Years Min Rs. 5000. Min FV 1.5 annual premium have to maintain. Provided age attained is 18 yrs.

After 3 years Min Rs. 2000

After 3 Years in a year 2 withdrawls are free of charge.

Allowed only from top-up account anytime after 3rd yr. Thereafter charges are 3% in yr 4, 2%, yr 5,1% in yr 6 and 0% in yr 7 onwards.

Full Surrender Any time after 3 years S.T.

After : 3 yrs. Charges after

If surrendered in first 3

Allowed only from top-up

surrender charges applicable only on the capital units 1-(1/1.05)^ N, N= Lower of outstanding policy term r 20 yrs

3,4,5 & 6 yrs are at 8%, 6%, 4% & 2% resp. No. charges from yr 7 onwards.

years, SV paid out after 3 years. No charges.

account, anytime after 3rd yr. Thereafter charges are 3% in yr 4, 2% in yr 5, 1% in yr 6 and 0% in yr 7 onwards.

FEATURE COMPARISON OF UNIT LINKED PLANS : ELIGIBILITY & BENEFITS

Features / Companies Bajaj Allianz Bajaj AllianzPlan Name Capital Unit Gain New Secure FirstMin/Max Age of entry 0 (risk commences at age

7 ) – 600 (risk commences at age 7 ) – 60

Max Age at maturity 70 70Min / Max Term 10, thereon customer

selectable term, for minor (18 entry age)

Max life cover till age 70

Term, For minor(18-entry age)

Min Max Premium 10,000/No limit RegularPrimium Type Regular RegularMin/Max Sum Assured Min 0.5*term*aP, max

y*AP where y for base cover or base cover with Accidental death &/or TPD rider is

0- 30 31 – 35 36 -40 41 -45 46- 55 56- 60

100 85 70 50 30 20 y for base cover with any other rider or with mor than one ride Max (5,0.5* policy Term)

Minmum SA = 2.5 times Annualised premium, OR 0.25* Term* Annualised premium, whichever is higher.Maximum SA= y times the annualized premium where y will be as per the following table:0-35:20; 36-40: 15;41-55: 10;56-60: 5;60-65:2.5

Death Benefit Before Age 7- Regular premium F.V. & Top-Up F.V. if any Above 7: Higher of SA or FV. To be set off by partial withdrawals as mandated.

DB is Twice the SA plus the Fund Value. Before age 7 it is the FV

Flexibility in Death Benefits

None No

Maturity Benefit Fund Value Fund Value; with settlement option

Partial Withdrawals After 3 years. Min Rs 5000. Min FV 1.5 annual premium have to maintain. Provided age attained is 18 yrs.

After 3 years. Min Rs 1000.Min FV 1 annual premium. Top-Ups to have a lock-in of 3 yrs.

Full Surrender Any time after 3 yrs. S.t. Surrender charges applicable only on the capital units.1-(1/1.05)^N,N= Kower of outstanding policy term or 20 yrs

Before 3 yrs 100% surrender penalty. After three years: Surrender charges 4th Year: 10%;5th

year: 2%; 6th year onwards: No Charge.

Features\Companies Bajaj Allianz ICICI Prudential Birla Sun Life Tata AIGPlan Name CapitslUnit Gain Life Time Super New Classic

Life PremierInvest Assure ll

Investment Funds 5 Funds 1)Equity Indes Fund ll 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Caap Fund

4 Funds :1) Maximiser2)Balancer3)Protector4) Protector

6 F1) Assure2) Protector3) Builder4) Enhancer5) Creator6) Magnifier

5 Funds1. Equity2. Income3. Liquid4. Aggressive Growth5. Stable Growth

Equity Min Limit : 85%for equity index fund II and 80% equity growth and accelerator Mid cap

Min Limit : 75% for maximiser; max 40% for balancer,

Max Limit : 90% for Magnifier; 50% for creator; 35% for enhancer; 20% for builder; 10% for protector;

0-100% for equity; 50-80% for aggressive growth; 30-50% for stable growth;

Debt Min Limit : 80% for bond fund

Max Limit ; 25% for maximiser; Min 60% for balancer, 100% for protector; max 50% for preserver;

Max limit : 25% for magnifier; 30% for creator; 30% for enhancer; 30% for builder; 30% for protector ; 50% for assure

0-100% for income; 20-50 % for aggressive growth ; 50-70 % for stable growth; 0-20% for liquid.

Money market Max limit : 20% for Bond fund, equity growth fund, accelerator madcap fund; 15% for equity index fund II, 100% for liquid fund.

Max Limit: 25% for maximiser; min 60% for balancer, 100% for protector; min 50% for preserver;

Max Limit; 20% for all;

0-120% for short term fixed income

Infrastructure None Max Limit : 25% for protector; builder; enhancer

None

Switch 3 free switches 4 free switch amt 2 free switch; 4 free switches

is 2000 p.a.Premium redirection

Allowed Not allowed Allowed; 2 free allocation in a year

2 free premium redirections. Subsequent redirections to be charged at 1000 per redirection.

Increase or decrease in regular premium

Allowed , s.t. limites

Not allowed Not allowed Na

Premium Holiday Cover continuance available

Available Available; Available.

Bonus Units None At 4% annual premium paid every 4th rs. Starting from 4th

yr.

Loyality addition on 10th PA and on every th policy anniversary thereafter. The LA will be 2% of your average policy fund in the last 60 months

Not available.

Guarantee component

None Bonus Units Loyality additions as given above

None

Feature Comparison of Unit Linked Plans : Investment Funds & FlexibilityFeatures\Companies Bajaj Allianz Aviva HDFC

StandardSBI Life

Plan Name Capital Unit Gain Easy Life Plus Endowment Plus

Horizon II

Investment Funds 5 Funds 1)Equity Indes Fund II 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Caap Fund

2 Funds : 1) With Profit Funds; 2)Unit linked Fund a ) Protector Fundb) Growth Fund;c) Balanced Fund;Option to put 100% in either fund

6 Funds1) Liquid Fund. 2) Secure Managed Fund.3) Defensive Managed Fund; 4) Balanced Managed Fund;5) Equity Managed Fund 6) Growth Fund;

2 Funds (Composite)1. Dynamic 2. Growth(Automatic Asset Allocaiton


Min Limit : 20% for with profit funds and protector; 45% for balanced; 30-85% for growth

Max Limit : 30% for Defensive; 60% for balanced; 100% for growth and equity managed

Max limit : 100%


70-100% for with profit and 60-100% for protector; 50-90% for balanced; 0-50% for growth;

85% for defensive; 70% for balanced; 40% for equity

Max Limit : 100%


0-10% for with profit and balanced; 0-20% for protector and growth .

100% for liquid funds

Max Limit : 100%

Infrastructure None None None

Switch 3 free switches 2 free switch Allowed Automatic Asset allocation

Premium redirection

Allowed Not allowed Allowed Not allowed



Not allowed Increase / decrease is allowed. Decrease is allowed after 3 yrs of premium payment and FV atleast Rs. 15,000.

Not allowed

Premium Holiday Cover continuance available

Available Available Available.

Bonus Units None None Loyalty units every year 0.10% every year as long as policy is in force.

None

Guarantee component

None None None None



Plan Name Capital Unit Gain Life Time Super

Flexi save plus Save Investment Plan II

Investment Funds 5 Funds 1)Equity Indes Fund ll 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Caap Fund

4 Funds :1) Maximiser ii2)Balancer ii3)Protector ii4) Preserver

3 Funds 1) Protector2) Builder3) Enhancer

6 Funds1. Money Market2. Gilt3. Bond4. Balanced 5. Growth6. Floating Rate Fund.


Min Limit : 75% for maximiser ii; max 40% for balancer ii.

Max Limit : 10% for protector; 20% for builder, 35% for enhancer;

Max Limit; 60% for balanced and 80% for growth;


Max Limit ; 25% for maximiser ii; Min 60% for balancer ii, 100% for protector ii; max 50% for preserver;

Max limit : 30% for all 3 funds.

100% for Gilt; Bond; Floating rate, 70% in balanced; 60% for growth.


Max Limit: 25% for maximiser ii; min 60% for balancer ii, 100% for protector; min 50% for preserver;

Max Limit; 20% for all;

100% for money mkt; 20% for gilit, bond, floating rate, balanced and growth.

Infrastructure None Max Limit : 25% for all.

70% for balanced and 60% for growth.

Top-Ups Min Rs. 5000; Max unlimited, choice of multiplier for top

None Min 5000, max 50,000 or annula prem. Additional SA on top-ups

Min Rs. 10,000.

ups beyond 25% of RP.

Switch 3 free switches 4 free switch amt is 2000

2 free switch; Rs. 100 thereafter.

Allowed No. charges. (bid/offer spread).

Premium redirection

Allowed Not allowed Not allowed Allowed No charges. (bid/offer spred)



Can increase or decrease annual premium pnly on policy anniversary. Dose not after SA

Increase/decrease not allowed

Increase/decrease not allowed

Premium Holiday Cover Continuance Available

Available Available Available

Bonus Units None At 5% annual premium paid every 4th yr.

None None

Guarantee component

None Bonus units are guaranteed

3%return on net investible premium

SA guaranteed at maturity

Features / Companies Bajaj Allianz Bajaj AllianzPlan Name Capital Unit Gain New Secure FirstInvestment Funds 5 Funds

1)Equity Index Fund ll 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Cap Fund

4 Funds :1) Nifty Index Fund 2)Balancer Fund3)Income Fund4) Equity Growth Fund


Min Limit: 85% for Nifty Index & 80% Equity Growth


Min Limit: 80% for Income fund


Max Limit: 20% for Income Fund, Equity Growth Fund, 15% for Nifty Index Fund

InfrastructureTop-Ups Min Rs 5000; Max

unlimited, choice of multiplier for top-ups

Min Rs 5000;Max cumulative top-up to be within 25% of max cumulative RP

Switch 3 free swithches 3 free switchesPremium Redirection Allowed AllowedIncrease or decrease in regular premium

Allowed , s.t. limits Not allowed.

Premium Holiday Cover Continuance Available

Available.

Bonus Units None Not availableGuarantee component None None


Birla Sun Life Tata AIG


Life Time Super

Classic Life Premier

Invest Assure ll

Policy Charges Ra.10,000-199,999 5.00%Rs.200,000-9,99,999 4.00%>= 10,00,000 3.00%

For AP less than 50000,20 % in yr 1,7.5% in yr 2,4% from yr 3 onwards. For AP 50000 and above, 18% in yr 1,7.5% in yr 2,4% from yr 3 onwards

Yr 1: 13;4% yr 2 & 3 onwards; 2% thereafter

Depends on Term of plan and Entry age of policyholder. Charge is at uniform 1% from the 3rd yr.

Charges on Top-Ups

2% n.a. 2% of top-ups 1.5%

Admin Charges Rs. 600 per annum inflating at 5% per annum

Rs 60 per month + 2/000 SA in yr 1

Rs 38 per month inflating at 5% p.a.There would be an additional premium holiday charge of 3% during reveval period of 5 yrs. And 1.5% after that (if policyholder requests for premimum holiday)

Add switching charge

Rs 100 or 5% switch amount whichever is lower.

Rs 100 per switch

Rs 100 or 0.25% of switch amount whichever is higher.

Rs. 250

Premium redirection charge

None None Rs 100; Rs 1000

Other Charges 5% per annum of the Capital Units during

None None 3% of the Regular premium for

the policy term subject to maximum of 20 years (Initial Mgmt Charge)

the first 5 years(Premium Holiday Charge)

Fund Management Charge

Equity Growth Fund 1.75%Equit Indes Fund ll 1.25%Bond Fund 0.95% Liquid Fund 0.95%Accelerator Mid Cap Fund 1.75%

Miximiser: 2.25%Balancer: 2.25%Protector: 1.5%Preserver: 0.75%

1% for Protector; Buider; Enhancer;1.25% for Creator;Magnifier;

Equity: 1.75%; Aggressive Growth: 1.6% Stable Growth: 1.4%; Income: 1.25%; Short term Fixed Income: 0.90%

Features\Companies Bajaj Allianz Aviva HDFC Standard SBI LifePlan Name Capital Unit

GainEasy Life Plus

Endowment Plus Horizon ii


AP less than 7500 for annual & half yrly modes 7%, for other modes,8%AP 7500-9999 for annual & half yrly modes, 7%AP more than 10000 for annual & half yrly modes 5%, for other modes, 6%

Year1-60% for prem amount upto 2 lacs, 40% upto 5 lacs prem, 30% upto 10 lacs, 20 lacs and above. Top-up 2.5%Year 2 onwards 1%.

15% in yr 1;10% in yrs 2 & 3; 5% thereafter.

Charges on Top-Ups

2% n.a. 1% 1%


Rs 41 per month inflating at 5% p.a.

Rs 20 per month Rs 70 per month



0.5 of the switch amount or Rs 500 whichever is lower

24 switches free in a policy year and after thar 100 per switch

None

Primium allocation charge

None None None None

Other Charges 5% per annum of the Capital Units during the policy term subject to maximum of 20 years (Initial Mgmt Charge)

5% per annum of the Initial Units during the policy term (Initial Mgmt Charge)

After 6 partial withdrawals in a policy year will be [email protected] Charge@Rs 250

First 2 withdrawals free. Fee of 1% is leveed on subsequent withdrawals

mailto:[email protected]

Fund Management Charge

Equity Growth Fund 1.75%Equit Index Fund ll 1.25%Bond Fund 0.95% Liquid Fund 0.95%Accelerator MidL Cap Fund 1.75%

Regular FM charges 1% on with profits and protector fund; 1.5% on growth fund

0.8% for all funds

1.5% for Equity; 1.0% for Bond; 0.25% for Money market




Life Time Plus Flexi save plus Safe Investment Plan II


25% in yr 1&2.3% in yr 3 & 4.1% from yr 5 onwards

65% in Yr 1 for regular pay; 7.5% in yr 2 & 3; 5% from yr 4 onwsrds. For regular prem plans.For SP – 3%

14% in yr 1; 3.5% from yr 2 onwards

Charges on Top-Ups

2% n.a. 2% 2.5%


Rs 60 per month

Rs 22 per month. Annual charge of Rs 2.88/000 FA in first 10 yrs (2nd yr 15. 24) and it will increase thereafter.

7% of AP for premium up to Rs 20.000 in Yr 1 and 4% thereafter. For premium above 20,000 it is 3% in yr 1 and 2% thereafter.



Rs 100 Rs 100 & Floating Rate 0.22%; Balanced

Primium allocation charge

None None None 0.50%; Growth 0.58%


One partial withdrawsl in a policy year would be free. All subsequent partial withdrawals in that policy year would be charged at Rs. 100 per withdrawsl.

2 Partial Withdrawals are free of charge, For every additional Partial Withdrawal, a charge equal to Rs. 100 subject to a maximum charge of Rs. 500 will be

First 2 withdrawals are free. Subsequent withdrawals are charged Rs. 500.

levied Fund Management Charge

Equity Growth Fund 1.75%Equit Index Fund ll 1.25%Bond Fund 0.95% Liquid Fund 0.95%Accelerator MidL Cap Fund 1.75%

Maximiser ii: 1.5%; Balancer ii: 1% Protector ii: 0.75% Preserver: 0.75%

1% for all 3 funds

None (Bid/offer Spread)

Features / Companies

Bajaj Allianz Bajaj Allianz


New Secure First


Year Silver Gold Platinum

1 30% 50% 76%2 Onwards 94% 95% 97%

Charges on Top-Ups

2% 2% of top-ups


Rs 30 per month, inflating at 5% annually



Rs 100 or 5% of switch amount whichever is sower.

Premium redirection charge

None None.


None

Fund Equity Growth Equity Growth: 1.75%

Management Charge

Fund 1.75%Equit Index Fund ll 1.25%Bond Fund 0.95% Liquid Fund 0.95%Accelerator MidL Cap Fund 1.75%

Income: 0.95%Nifty Index 1.25%Balancer: as per mix

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

a) Research Objective

b) Research Design

c) Research Study

d) Sampling

e) Collection of Data

f) Data Source

g) Data Collection Method

h) Field work

i) Limitations of Survey

RESEARCH OBJECTIVE

The aim of this research is to study the awareness about Insurance in Dehradun.

To find how many people prefer Insurance.

The study also involves through field research of various people

preference of Insurance over other system.

The study also focus on recalling the name of some l Insurance

companies.

The study reveals whether advertisements are used to market directly

some Insurance.

The study rank the reasons in term of their importance for less popularity

of Insurance.

To find the number of ways to rise awareness about insurance in the

society.

RESEARCH DESIGN

RESEARCH DESIGN

Research design is a conceptual structure with in which research is conducted. It

constitutes the blue print for the collection, measurement and the analysis of the data.

Research design consists of :-

a) A clear statement of research problem.

b) Procedure and techniques to be used for getting information.

c) Number of Respondents to be studied.

d) Method to be used in processing and analyzing data.

Research Design is needed because it facilitates the smooth sailing of the various

research operations, there by making research as efficient as possible yielding

maximum information with expenditure of effort, time and money. Research design

gives proper and structured way by which research becomes very smother and gives

accurate information.

RESEARCH STUDY

Data collection source : Primary Data

Data collection method : Survey method

Data collection : Questionnaire

SAMP LING

Sampling Unit : Customers

Sample Size : 100

Sampling Procedure : Random Sample

COLLECTION OF DATA

The study conducted mainly on the basis of primary data. Primary data are those

which are collected fresh i.e. for the first time, and thus happen to be original in

character.

The main aim of collecting data is to search new ideas and give an incentive to

environment. Primary data can be collected from primary sources. Primary sources

may consists of customers.

We have contacted all of the above for the collection of data, and had covered the

whole Dehradun region.

DATA SOURCE

The data used in the project is mainly primary in nature. This information had been

collected from personal interviews. Further data is secondary in nature. It is collected

through company’s literature and internet.

More information and data is collected through discussion with Mr. Rajendra

Prasad (Sales Managaer) and other members of the company.

DATA COLLECTION METHOD

The method of collecting the data is basically the field survey. Thus this survey is

descriptive in nature. I have divided my data collection in two segments which are as

follows :

1) Government Institution.

2) Individuals.

3) Shopkeepers

4) Students

FIELD WORK

The questionnaire administering covered a period of 30 days.

During the survey I had covered all prospective educated users and an appropriate

data was collected through filling questionnaire by the appropriate person.

LIMITATIONS

LIMITATIONS OF SURVEY

The following are the limitations :

1. The findings are based on the response of 100 educated persons mostly

younger and may it happen that their views may vary with educated persons

or aged persons.

2. Some times due to lack of respondents support it has become difficult to get

required information.

3. In our survey some people were not easily ready to fill the questionnaire.

4. Some respondents might have provided biased or incorrect answers.

5. Due to lack of training we are not able to convey the customer properly.

6. Since the time period is very less to find out the market position of the

company.

7. Sometimes customer are not ready to cooperate to us.

SWOT ANALYSIS

SWOT ANALYSIS

SWOT is best appreciated in the context of marketing analysis and strategy

formulation. Together a consideration of the environment, the sources, values,

expectations and objectives provides the basis for marketing analysis, so as to

arrive at a view of the organizations strategic situation. It helps to form a basis for

deciding on the extent to which a change in the strategy is necessary .

SWOT – STANDS FOR :

S - Stands for “Strength”

W - Stands for “Weakness”

O - Stands for “Opportunity”

T - Stands for “Threats”

SWOT ANALYSIS OF INSURANCE INDUSTRY

STRENGTHS

o Bajaj Allianz is one of the biggest insurance company in the world in

Insurance sector.

o It gives more benefits then others.

o You can pay your premium from any where in the country.

o It provides fully medical checkup of the customer.

o It provides waver of premium in some policy.

o It provides rider benefits in all the policies.

o If you have any claim or you will get sum assured with in seven days.

WEAKNESS

o It has branches in very few cities in India.

o There is no proper advertisement on electronic media in In

o Maximum customer are still loyal to other brands .

o Bajaj Allianz spends less on advertisement as compare to others.

OPPORTUNITIES

o The insurance sector is growing rapidly.

o Bajaj Allianz to make those policies which will satisfied the need of

customer.

o Dehradun city is growing at a very fast rate and the people are

educated so company should focus in Dehradun region.

.

o THREATS

o LIC, ICICI are continuously doing their research and development

toward there policies .

Others private companies focusing advertisement in print media,

electronic media so company must go for the same.

SUGGESTIONS

SUGGESTIONS

1. Brand image play important role. Companies should develop their brand

image.

2. Company should distribute literature and information for better customer

education .

3. Making people aware about benefits of insurance.

4. Increasing the number of qualified advisor to help the people and suggest

them to buy insurance.

5. Company provide easy mediclam to customers.

6. Company must increase investment on T.V. it has become more effective and

catchy.

7. Special training should be organize to educate the customer about their

flexible policies.

8. As benefit is the major factor company should highlight “INVESTMENT

SCHEME” in there advertisement. .

CONCLUSION

CONCLUSION

After analyzing the Dehradun Market. I came to know that this market is having

lots potential customer. So company should make such product which will be able

to satisfy different customer group.

As the people of Dehradun are educated and read news paper, watch T.V.

commercial so company should make aware their different insurance scheme.

\

APPENDIX

QUESTIONNAIRE

Name : _______________________ Age _____________Address:______________________ Ph. No.____________Employee/ Businessman__________ Designation :___________

Q.1 Do you have insurance

(a) Yes (b) No

Q.2 In which company you have insurance ?

(a) LIC (b) ICICI Pru.(c) BAJAJ ALLIANZ (d) UNIT TRUST OF INDIA.(e) ING VYSYA LIFE (f) OTHERS.

Q.3 Which type of insurance you have ?

(a) Life Insurance (b) Investment.(c) Others

Q.4 Why do you purchase insurance ?

(a) Tax saving (b) Future Protection .(c) Any other Reason

Q.5 Why do you prefer Bajaj Allianz Life insurance ?.

(a) Provide more benefits (b) High Interest Rate(c) Other Benefits.

Q.6 Do you think Bajaj Allianz give more benefits in comparison to others?

(a) Highly Satisfied (b) Satisfied(c) Average (d) Poor(e) Not satisfied

Q.7 Do you think Bajaj Allianz Life insurance policies are flexible?(a) Yes (b) No(c) Can’t Say.

Q.8 Do you think Bajaj Allianz Life provide easy Mediclaim ?

(a) Yes (b) No(c) Can’t Say.

Q.9 Have you planned to buy insurance ?

(a) Yes (b) No(c) Can’t Say.

Q.10 What factor do you consider while purchasing insurance ?

(a) Brand image (b) Security(c) Premium.

Q.11 From where do you know about Bajaj Allianz?

(a) Advertisement (b) Holdings(c) Friends (d) Others

DATE :

PLACE : SIGNATURE

THANKS

DATA ANALYSIS

Q.1 Do you have insurance

Yes85%

No15%

Yes

No

Q.2 In which company you have life insurance ?

45

1317

10

15

0

5

10

15

20

25

30

35

40

45

50

LIC ICICI Pru UTI IVL OthersBajaj Allianz

Q.3 Which type of insurance you have ?

Life Insurance General insurance

S1

Life Insurance,

70 General insurance, 30

Q.4 Why do you purchase insurance?

30

60

10

0

10

20

30

40

50

60

70

Tax Saving Future Protection Any other Reason

Q.5 Why do you prefer Bajaj Allianz Life insurance?

60

30

10

0

10

20

30

40

50

60

70

Provide MoreBenefit

Easy Return Other Benefits

Q.6 Do you think Bajaj Allianz give more benefits in comparison to others?

40

30

20

64

0

5

10

15

20

25

30

35

40

45

HighlySatisfied

Satisfied Average Poor NotSatisfied

Q.7 Do you think Bajaj Allianz Life insurance policies are flexible?

70

20

10

0

10

20

30

40

50

60

70

80

Yes No Can't Say

Q.8 Do you think Bajaj Allianz Life provide easy Mediclaim ??

40

35

25

0

5

10

15

20

25

30

35

40

45

Brand Image Security Premium

Q.9 Have you planned to buy insurance ?

No6%

Yes80%

Can't Say14%

Q.10 What factor do you consider while purchasing insurance ?

40

35

25

0

5

10

15

20

25

30

35

40

45

Brand Image Security Premium

Q.11 From where do you know about Bajaj Allianz?

30

20 20

30

0

5

10

15

20

25

30

35

Advertisement Holdings Friends Others

FINDINGS

1. Bajaj Allianz is still expanding its market share in Dehradun.

2. LIC & ICICI Prud. is a major competitor of Bajaj Allianz.

3. Customers are more satisfied with the policy of Bajaj Allianz in comparison to the

other competitors.

4. Future prospects of Bajaj Allianz is excellent in Dehradun market .

5. Customer awareness about Bajaj Allianz in the market is moderate.

6. Most people purchase insurance on the brand image.

7. Mostly people purchase insurance for future protection. But they also purchase it

to save their taxes.

8. Mostly people are insured in Dehradun region.

FINDINGS

1. Bajaj Allianz is still expanding its market share in Dehradun.

2. LIC & ICICI Prud. is a major competitor of Bajaj Allianz.

3. Customers are more satisfied with the policy of Bajaj Allianz in comparison to the

other competitors.

4. Future prospects of Bajaj Allianz is excellent in Dehradun market .

5. Customer awareness about Bajaj Allianz in the market is moderate.

6. Most people purchase insurance on the brand image.

7. Mostly people purchase insurance for future protection. But they also purchase it

to save their taxes.

8. Mostly people are insured in Dehradun region.

Documents

Comparative Analysis of Bajaj Allianz Lic With Others Life Insurance Companies