A HYGIENE PARAMETER STUDY – INSURANCE CANCELLATION(A Summer Internship project)

UNDER

{MUMBAI}

THE PROJECT TITLE:

Project GuideMr. DINESH NAIDU{AREA SALES MANAGER}

Faculty GuidePROF. ARUN KUMAR{PROF. NIILM-CMS}

Submitted byNITESH KUMAR2012095

INTRODUCTION

Introduction to topic:- “A hygiene parameter study – insurance cancellation” Bajaj Finserv lending is a financial services company, which finance consumer durable product and lifestyle product at 0% interest rate. Consumer Finance

Consumer Durables Finance

Lifestyle Finance

SME FinanceMortgage

Business Loans

Commercial LendingInfrastructure Finance

Vendor Financing

Cont.Bajaj Finserv also cross-sell his term life insurance product i.e. Bajaj Allianz life insurance. But this term insurance product cross-sell to only customer, who had taken finance from Bajaj Finserv lending.

Bajaj Allianz Life Insurance company is a union between Allianz SE, one of the largest Insurance Company, Germany & Bajaj Finserv.

Term insurance is a life insurance which provides coverage for the policy term decided between the policy holder and insurer at the onset of the policy.

LITERATURE REVIEWIn 2003 spending on consumers goods/ insurance products has touched 6.6% out of total spending of the Indian consumers’ (Singhal, 2005, Kotler and others, 2007)

Gupta & Verma (2000) have done a study under convenience sampling of 50 household of Mumbai by questionnaire. It indicates that husband’s influence is considerably higher that the wives, while taking & choosing insurance plan.

The demand of consumer durable products & insurance products has been increase much more in 2007-08. Increase in demand is a result of increase in income of the people and increase in discretionary income too (Arora Renu, 1995, Bhatty I. Z., 1989, Gupta and Pal, 2001, Sontaki, 1999).

OBJECTIVE OF THE PROJECT

To understand the root cause behind insurance cancellation of the Bajaj Allianz life insurance {BALIC}, at counters of Bajaj Finserv lending, Mumbai city.

KEY DELIVERABLES OF THE PROJECT

Understand Bajaj Finserv lending CD financing process and insurance product.

Meet F.O.S at 30 counters in Mumbai and understand the process of when and how they are selling insurance to customers?

Understand from 2 Sample Customers at each of these 30 counters whom the FOS has pitched insurance– what changes they want in the product?

Check with sample 50 cancelled customer what has gone wrong and why are they not interested in the insurance product?

RESEARCH METHODOLOGY

Research methodology of project was done through administration of questionnaire to 105+ consumers, 50+ F.O.S and 50+ dealers in the western line and central line in Mumbai city.

So, Research methodology is divided into parts:-

Field survey Telephonic survey

FIELD SURVEY PLAN

SAMPLE SIZE = 205NO. OF CONSUMERS = 105NO. OF F.O.S = 50NO. OF DEALERS/STORE = 50

TELEPHONIC SURVEY PLAN

SAMPLE SIZE = 234NO. OF RESPONDENT= 126

DATA ANALYSIS

AREA COVERED: Area which covered is western area and central area of Mumbai city.

DEALERS COVERED: No. of counters covered is 50, such as Tata croma, reliance digital, Vijay sales, Snehanjali electronic and open market stores such as L.G electronic, Kohinoor electronic.

CUSTOMERS COVERED: No. of customers covered is 105+ at store level and taken feedback of 234 customers through calling.

KEY FINDINGSThe root cause behind insurance cancellation is miss-selling of insurance product and customer financial problem and customers change of mind i.e.{customers were motivated by its peers or family members}.

From the data I have found that f.o.s were not pitching insurance over the counter they are generating lead through calling to customers, this is one of the cause of insurance cancellation.

Customer wants maturity amount and family coverage in insurance policy.

While visiting the stores, I also found that dealers were not aware of the insurance benefits and also not bothered about the sale of insurance product.

CONCLUSIONAfter working for eight weeks’ in “BAJAJ FINSERV LENDING” I found that company enjoys a monopoly in this segment i.e. retail finance. No other company had a such huge sales work force, which Bajaj Finserv lending had built. 0% interest finance of consumer and lifestyle product has getting a tremendous success.

Cancellations of insurance happens because of miss- selling of insurance product by F.O.S, in order achieved sales targets.Also f.o.s selling insurance through calling rather than over the counter.

RECOMMENDATIONSFOS should be taught by professional, how to pitch insurance to customers ?

My suggestion is that in weekdays there are fewer footfalls in store those days insurance should be pitch over the counters and in weekends there more rush in store. On weekends insurance pitching should be done over the counters as well as through calling.

CONT…

On weekdays (i.e. Saturday and Sunday), company should put an extra FOS at each counters to pitch the insurance, and this will also help in increasing sales and better customer satisfaction.

Store manager and dealers should be made aware of the insurance products and benefits. As they are not bothered about the insurance product.

OTHER RECOMMENDATIONS

A promotional campaign must be run, to clarifying the benefits and offerings of BFSL which will clear the doubts about 0 % finance & 0 processing fees.

Processing fees should not be charged for the EMI card holders in the case of Consumer Durables as it will create loyalty among customers and will help build a strong customer base even before the competitors entering the market.

Customers wants changes in insurance products such as maturity amount and family coverage. If theses benefits were added, then it will helps to increase the sale of insurance product.

CONTACT US:

4th Floor, 271 Business Park, model Industrial estate, near virwani industrial Estate, off western express highway, Goregaon (east), Mumbai-400063, MaharashtraPhone no: + 91 22309 22300Email-id: wecare@bajajfinserv.in

THANK YOUBAJAJ FINANCE FOR

GIVING SUCH AN OPPORTUNITY…!

AND I WANT TO THANKS…NITIN NEEMA SIR, MANISH JETHWANI SIR, DINESH NAIDU SIR, SOURAV CHAUDHARY SIR FOR GUIDING ME IN THIS PROJECT…!

FACTS AND FIGUREFOS FEEDBACK REPORT

0

5

10

15

20

25

30

15

3028

30

1516

02 0

16

YESNO

Pitching after mystery calling and pitching over the counter is not happening, there is more numbers of NO that means FOS are not pitching insurance to customers over the counter. They are generating lead through calling .

DEALERS / STORE FEEDBACK REPORTS

REGISTRATION OF ANY NEW COMPLAINTDEALERS AWARENESS OF INSURANCE PRODUCT

STAFF PERFORMANCE

05

1015202530354045

714

39

4336

11YES

NO

From the above as you can see 36 dealers has said NO, which means dealers are not aware of the insurance product?

CUSTOMER FEEDBACK REPORT

05

1015202530354045

45

27

20

13

NO. OF CUSTOMERS DEMANDS FOR CHANGE IN POLICY

Most of the customers are satisfied with the policy, but there are customers’ who demands for FAMILY COVERAGE AND MATURITY AMOUNT.

CUSTOMER INSURANCE CANCELLATION REPORT

45%

21%

12%

4%3% 14%

GIVEN INSURANCE WITHOUT TAKING CUSTOMER CON-SENT

FINANCIAL PROBLEM

NOT CONVEYED PROPER INFORMA-TION TO CUSTOMER

DELAY IN DIS-PATCHMENT OF DOCUMENT

UNDERSTANDING PROBLEM

OTHERS PROBLEMS From the above data you can see that 46% of cancellation reason is because of miss-selling of insurance product i.e. GIVEN INSURANCE WITHOUT TAKING CUSTOMER CONSENT and 21% customer financial problem.