WEST BENGAL UNIVERSITY OF TECHNOLOGY

SUMMER PROJECT REPORT

A Comparative Study of Insurance Offerings From

Bajaj Allianz Life Insurance Company Limited

&

HDFC Standard Life Insurance Co. Limited

AT

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD

BY

AYAN PAUL

WBUT REGN NO: 081360710020 of 2008-2010

WBUT ROLL NO: 08136009084

1
 ARMY INSTITUTE OF MANAGEMENT, KOLKATA

CONTENTS

Certificate from Guides

Acknowledgements

Executive Summary

Chapter I : The Industry and The Company

1. The Industry Profile

2. The Company

Chapter II : The Project

1. Requirement of the project

2. Purpose and Scope Of Study

3. Methodology

Chapter III : Collection & Analysis of data

1. Data Collection

2. Data Analysis

Chapter IV : Findings & Recommendations Conclusion

Constraints & Limitations

Recommendations

2
 Appendices & Annexure

ARMY INSTITUTE OF MANAGEMENT KOLKATA

Under the aegis of Army Welfare Education Society
Judges Court Road, Alipore, Kolkata - 700027
Phone: 2479-4494 / 2439-8335 / 7 / 8

GUIDANCE-cum-COMPLETION CERTIFICATE

This is to certify that Mr.Ayan Paul WBUT Regn.No: 081360710020 of 2007-

2009, WBUT Roll No : 08136009084 has undertaken the project titled
“A Comparative Study of Insurance Offerings From Bajaj
Allianz Life Insurance Company Limited & HDFC Standard Life
Insurance Co. Limited” under our guidance for two months from 4th
June 2009 to 2nd August 2009 at:
Bajaj Allianz Life Insurance, Kolkata and has completed the project successfully.

SIGNATURE:…………………………………..
: EXTERNAL GUIDE: Mr. PRAVEEN JHA
DESIGNATION: SALES MANAGER
BAJAJ ALLIANZ LIFE INSURANCE

Organization Seal

SIGNATURE:…………………………….
INTERNAL GUIDE: Prof.A.K PANI
ARMY INSTITUTE OF MANAGEMENT,

3
 KOLKATA

ACKNOWLEDGEMENT

I would like to express my gratitude towards all the people who guided me throughout, and
without whose guidance and support, this project would not have been completed
successfully.

I would specially like to thank my guide at Bajaj Allianz life Insurance Company Ltd.,
Mr. Praveen Jha, Sales Manager, for his continuous support, encouragement and guidance
during the project.

I express my sincere gratitude to my faculty guide, Prof. A.K Pani of Army Institute of
Management, Kolkata who has been a source of knowledge and inspiration for me.
I would like to thank all those people who have directly or indirectly helped me in the
successful completion of this project.

Ayan Paul

4
 Executive summary

This project is intended as a part of the academic requirement for completion of MBA
program. As a precursor to this, I have preferred to work with Bajaj Allianz Life insurance
Company to gain marketing insight and other intricacies of marketing activities through the
summer project by involving myself to the extent possible.

The purpose and scope of the study is to carry out a survey of Life Insurance product
launched by the aforementioned company so that the dynamics of the insurance market
could be known and help the company to devise a suitable strategy so that they gain major
market share.

All the required marketing ammunition have been deployed to arrive at a conclusive
decision, supported by suitable data collected directly from the field and also using
secondary data.

A comparison of insurance offerings between Bajaj Allianz life insurance Pvt ltd. and HDFC
Standard life insurance Co. Ltd has been done so that to understand the competitiveness of
the products from Bajaj Allianz Life Insurance Pvt Ltd in the Life Insurance market.

A SWOT analysis has been carried out. It has depicted the strengths, weaknesses,
opportunities and threats; on the basis of which the basic strategies have been built upon.

And also an on field survey has been done to understand the need and source of the
insurance policies.

5
 The Industry
What is life insurance?

Life insurance is a contract that pledges payment of an amount to the person assured (or
his nominee)
on the happening of the event insured against.

The contract is valid for payment of the insured amount during:

 The date of maturity, or
 Specified dates at periodic intervals, or
 Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premium
periodically to the Corporation by the policyholder. 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 leaves a dependent family to fed for itself.
 That of living till old age without visible means of support

Insurance sector reforms

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

Governor R.N. Malhotra-was formed to evaluate the Indian insurance industry and
recommend its future direction. The Malhotra committee was set up with the
objective of complementing the reforms initiated in the financial sector. The
reforms were aimed at creating a more efficient and competitive financial system
recognizing that insurance is an important part of the overall financial system
where it was necessary to address the need for similar reforms. In 1994, the
committee submitted the report and some of the key recommendations included:

Structure

Government stake in the insurance Companies to be brought down to 50%.
Government should take over the holdings of GIC and its subsidiaries so that these

6
 subsidiaries can act as independent corporations. All the insurance companies
should be given greater freedom to operate.

 Competition
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to
enter the sector. No Company should deal in both Life and General Insurance
through a single entity. Foreign companies may be allowed to enter the industry in
collaboration with the domestic companies. Postal Life Insurance should be allowed
to operate in the rural market. Only one State Level Life Insurance Company should
be allowed to operate in each state.

Regulatory Body

The Insurance Act should be changed. An Insurance Regulatory body should be set up.
Controller of Insurance- a part of the Finance Ministry- should be made independent.

Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced from
75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company
(there current holdings to be brought down to this level over a period of time)

Customer service
LIC should pay interest on delays in payments beyond 30 days. Insurance companies
must be encouraged to set up unit linked pension plans. Computerization of operations
and updating of technology should be carried out in the insurance industry.
The committee felt the need to provide greater autonomy to insurance companies in
order to improve their performance and enable them to act as independent companies
with economic motives. For this purpose, it had proposed setting up an independent
regulatory body- The Insurance Regulatory and Development Authority.

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies. Since being set up as an independent statutory
body the IRDA has put in a framework of globally compatible regulations. The other
decision taken simultaneously to provide the supporting systems to the insurance sector
and in particular the life insurance companies was the launch of the IRDA online service
for issue and renewal of licenses to agents. The approval of institutions for imparting
training to agents has also ensured that the insurance companies would have a trained
workforce of insurance agents in place to sell their products.

7
The Insurance Regulatory and Development Authority (IRDA):
The IRDA since its incorporation as a statutory body has been framing regulations and
registering the private sector insurance companies. IRDA being an independent statutory
body has put a framework of globally compatible regulations Reforms in the Insurance
sector were initiated with the passage of the IRDA Bill in Parliament in December 1999.
The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck
to its schedule of framing regulations and registering the private sector insurance
companies. The other decision taken simultaneously to provide the supporting systems
to the insurance sector and in particular the life insurance companies was the launch of
the IRDA’s online service for issue and renewal of licenses to agents. The approval of
institutions for imparting training to agents has also ensured that the insurance
companies would have a trained workforce of insurance agents in place to sell their
products, which are expected to be introduced by early next year.

Life Insurance Market in India

The Life Insurance market in India is an underdeveloped market that was only tapped by
the state owned LIC till the entry of private insurers. The penetration of life insurance
products was 19 percent of the total 400 million of the insurable population. The state
owned LIC sold insurance as a tax instrument, not as a product giving protection. Most
customers were under- insured with no flexibility or transparency in the products. With
the entry of the private insurers the rules of the game have changed.

A brief history
Insurance came to India from UK; with the establishment of the Oriental Life insurance
Corporation in 1818.The Indian life insurance company act 1912 was the first statutory
body that started to regulate the life insurance business in India. By 1956 about 154
Indian, 16 foreign and 75 provident firms were been established in India. Then the
central government took over these companies and as a result the LIC was formed. Since
then LIC has worked towards spreading life insurance and building a wide network
across the length and the breath of the country. After the liberalization the entrance of
foreign players has added to the competition in the market. The General insurance
business in India, on the other hand, can trace its roots to the Triton Insurance Company
Ltd., the first general insurance company established in the year 1850 in Calcutta by the
British. In 1957 General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices. In 1972
The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973.
It was after this that 107 insurers amalgamated and grouped into four companies viz.
the National Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC

8
incorporated as a company.

INDUSTRY PROFILE

Insurance is a federal subject in India and has history dating back till 1818. Life and
general insurance in India is still a nascent sector with huge potential for various global
players with the life insurance premiums accounting to 2.5% of the country's GDP while
general insurance premiums to 0.65% of India's GDP. The Insurance sector in India has
gone through a number of phases and changes, particularly in the recent years when the
Govt. of India in 1999 opened up the insurance sector by allowing private companies to
solicit insurance and also allowing FDI up to 26%. Ever since, the Indian insurance
sector is considered as a booming market with every other global insurance company
wanting to have a lion's share. Currently, the largest life insurance company in India is
still owned by the government.

With largest number of life insurance policies in force in the world, Insurance happens to
be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent
annually and presently is of the order of Rs 450 billion. Together with banking services, it
adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per cent
of GDP and funds available with LIC for investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. And this
part of the population is also subject to weak social security and pension systems with
hardly any old age income security. This itself is an indicator that growth potential for
the insurance sector is immense.

A well-developed and evolved insurance sector is needed for economic development as it

provides long term funds for infrastructure development and at the same time
strengthens the risk taking ability. It is estimated that over the next ten years India
would require investments of the order of one trillion US dollar. The Insurance sector, to
some extent, can enable investments in infrastructure development to sustain economic
growth of the country.
Insurance is a federal subject in India. There are two legislations that govern the sector-
The Insurance Act- 1938 and the IRDA Act- 1999. The insurance sector in India has to
come to a full circle from being an open competitive market to nationalization and back
to a liberalized market again. Tracing the developments in the Indian insurance sector
reveals the 360 degree turn witnessed over a period of almost two centuries.

With such a large population and the untapped market area of this population Insurance
happens to be a very big opportunity in India. Today it stands as a business growing at
the rate of 15-20 per cent annually. Together with banking services, it adds about 7
percent to the country’s GDP .In spite of all this growth the statistics of the penetration of
the insurance in the country is very poor. Nearly 80% of Indian populations are without
Life insurance cover and the Health insurance. This is an indicator that growth potential
for the insurance sector is immense in India. It was due to this immense growth that the

9
regulations were introduced in the insurance sector and in continuation “Malhotra
Committee” was constituted by the government in 1993 to examine the various aspects
of the industry. The key element of the reform process was Participation of overseas
insurance companies with 26% capital. Creating a more efficient and competitive
financial system suitable for the requirements of the economy was the main idea behind
this reform. Since then the insurance industry has gone through many sea changes.
The competition LIC started facing from these companies were threatening to the
existence of LIC. Since the liberalization of the industry the insurance industry has never
looked back and today stand as the one of the most competitive and exploring industry in
India. The entry of the private players and the increased use of the new distribution are
in the limelight today.

India against the global markets

India is an under-insured market. India’s insurance market is still at an early stage of
development. This is reflected in low penetration rates and low premiums per capita.
th
Global perspective – India ranks 19 on the global stage
1248
USA 65
UKS.CF.. 1547647
Ge
Ita
Nethe...
Ind 0
797214795

Premium income ($ Bn)

Insurable population – only 10% of India’s population have life

insurance
Source:IRDA

10
The market share of various Life Insurance Companies in India
at the end of FY2008

The market share of various Life Insurance Companies in India

at the end of FY2008
MetLife ING Shriram Bharti Axa
Tata AIG 3% 2% 1% 0%
3%
AVIVA ICICI
3% 26%
OM Kotak
4%
Max New
5%
Reliance
7%

Birla
7%

HDFC Bajaj
8% 20%
SBI Life
12%

11
 THE COMPANY

COMPANY PROFILE

BAJAJ ALLIANZ LIFE INSURANCE

Bajaj Allianz Life Insurance Company Limited is joint venture between Allianz SE of
Germany and Bajaj Auto Limited.
th
It was incorporated on 12 March 2001. The company received the Insurance Regulatory
rd
and Development Authority (IRDA) Certificate of Registration (R3) NO116 on 3 August
2001 to conduct life insurance business in India.
AG Allianz one of the largest insurers in the world has joined hands with Bajaj Auto one of
the most trusted names in the automobile and household industry in India for a joint
venture for their insurance operation in the country. This is one of the few companies
which are engaged in both life insurance and non life insurance products under the name
Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company
Limited.
The investment ratio between Bajaj and Allianz is 76:24
This company has a national network of 1007 offices all over India and the Head Office is
located in Pune.
Bajaj Allianz Life Insurance has a pan-India presence of office network in over 876 towns of
the country and is aided with a strong and trained Agency network of over 2,50,000
Insurance Consultants with 875 MRDT qualifiers in the calendar year 2006-07. Bajaj
Allianz Life Insurance has also forged strong Bancassurance and Corporate Agency
relationships and continues to build on new tie-ups for fast track growth and deep market
penetration. With such high penetration Bajaj Allianz Life Insurance has more than 4
million customers who have put their faith and investment into the fastest growing life
insurance company in India. Speed and growth are the mantras of their success. Our Team
is young, energetic and motivated with a passion to excel.

BAJAJ AUTO
Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's
4th largest two - and three-wheeler maker[citation needed]. It is based in Pune,
Maharashtra, with plants in Akurdi and Chakan (near Pune),Waluj (near Aurangabad) and
Pantnagar in Uttaranchal. Bajaj Auto makes and exports motorscooters, motorcycles and
the auto rickshaw.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946 [1].
Over the last decade, the company has successfully changed its image from a scooter
manufacturer to a two wheeler manufacturer. Its product range encompasses Scooterettes,
Scooters and Motorcycles. Its real growth in numbers has come in the last four years after
successful introduction of a few models in the motorcycle segment.
The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

12
 Company's history

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation
Private Limited. It started off by selling imported two- and three -wheelers in India. In
1959, it obtained license from the Government of India to manufacture two- and three-
wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it
managed to produce and sell 100,000 vehicles in a single financial year. In 1985, it started
producing at Waluj in Aurangabad. In 1986, it managed to produce and sell 500,000
vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle and
produced and sold 1 million vehicles in a year.

Spin-offs and acquisitions

It has been reported that Bajaj is headed for a de-merger into two separate companies:
Bajaj Auto and Bajaj Finance. It is expected that the sum of the parts created will be worth
.
more that the current whole, as was the case in the de-merger of Reliance Industries.
In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG (holding
company of KTM Sportmotocycles AG). The two companies have signed a cooperation deal,
by which KTM will provide the know-how for joint development of the water- cooled 4
stroke 125 and 250 cc engines, and Bajaj will take over the distribution of KTM products in
India and some other Southeast Asian nations.[3]. Bajaj Auto said it is open to take a
majority stake in KTM and is also looking at other takeover opportunities. On the 8th of
January 2008, Managing Director Rajiv Bajaj confirmed the collaboration and announced
Bajaj Auto's intention to gradually increase their stake in KTM to 25

ALLIANZ SE GERMANY

Its core business and focus is insurance. With €102.6 billion of revenue during 2007,
Allianz is the largest international insurance and financial services organization in the

Allianz has recently (August 2008) announced plans to sell its ownership of Dresdner Bank
to Commerzbank, largely for shares. As a result of this proposed merger, Allianz will end up
with a 30% controlling stake in the combined Commerzbank/Dresdner.

Allianz is also the principal sponsor of the Swiss Open tennis tournament and owner of
Gornik Zabrze great football team

13
Board of Directors

Chairman- Rahul Bajaj.

Director - Dr. Werner Zedelius.
Director - Sanjay Asher.
Director - Heinz Dollberg.
Director - Sanjiv Bajaj.
Director - Craig Ellis.
Director - Ranjit Gupta.
Director - Suraj Mehta.
Director - S.H.Khan.
Director - Dr.P.S.Palande.
Additional Director – Manu Tandon.
Alternate Director – Bruce Bowers.

MANAGEMENT TEAM

Chief Executive Officer - Kamesh Goyal.

Chief Financial Officer - Rajesh Viswanathan.
Chief Actuary - Anil Singh.
Appointed Actuary - Andrew Wakling.
Head of Sales (Strategic Initiative) - E C J Augustine
Chief Investment Officer – G.B.Laddha.
Head Alternate Channels - Niraj Kumar.
Head Operations & Administration- V Philip.
Head Information Technology – Ishita Mukherjee.
Company Secretary & Compliance Officer- Sameer Bakshi .
Head Bancassurance - A.S. Narayanan.
Head Marketing – Akshay Mehrotra.
Head Internal Audit – Neeraj jain.

14
 Key achievements in FY 2007-2008:-
1. Bajaj Allianz Life Insurance crosses 10 lac policies in this FY .
2 .Bajaj Allianz Life Insurance is only life insurance company in india who has receive most
accepted security certification of ISO 27001:2005 based on its compliance with the new
standards for data and information security set forth by ISO.
3. The company is the largest private life insurer in the country in the terms of number of
nd
policy sold during the year and is ranked 2 among private life insurance in terms of new
business premium.
4. Among the “ Top 50 Service Brands” in Brand Equity, as per survey conducted by AC
Neilson ORG-MARG.
5. The company company has reported an annualised premium of Rs 658 crore for the first
quarter, an increase of 86% over the corresponding period last year. The total business
premium received in the first quarter is Rs.729 crore.
Core values of Bajaj Allianz life insurance
1. Understanding the customer needs
2. Meeting the customer requirements
3. Ensuring optimal performance at lowest cost
4. Commitment to excellence

Bajaj Allianz stands for

1. Dynamic and successful organization
2. A socially valued enterprise
3. Business integrity
Vision
To be the best Life Insurance Company in India to buy from, work for and invest in.
Mission
1. To be in the top three new life insurance companies in India
2. To have PAN India presence
3.To provide highest: quality service by
ensuring: Highest customer
retention in industry
Every customer will be contacted at least
once a year We respond to customer/
agent within 48 hours Embrace
technology to optimize efficiencies.
Work Culture of Bajaj Allianz life
Bajaj Allianz Life is known for its stimulating environment with high levels of motivation,
empowerment and recognition. It encourages an open and informal culture that values
integrity, commitment, teamwork and excellence in customer service. The Co. adopts a
policy of strong learning and development initiatives, which promotes day-to-day learning
as well as decision- making. They believe their strength is their people, so they endeavor to
surpass their expectations and give them the best possible work environment and benefits
that match the best in the industry.

15
Requirement of the Project

As a part of the MBA program at Army Institute of Management, the West Bengal University
of Technology (WBUT) requires students to undertake a summer Internship Project as part
of the curriculum in the 3rd semester. The university has allotted 200 out of total 1000
marks to the summer project, which is 20% of the entire 3rd semester syllabus. This clearly
shows the emphasis that the University puts on the Summer Internship Project.
Besides the academic requirement, the summer training gives students ample exposure to
the functioning of an organization. This helps the students to prepare themselves as future
managers. The first hand experience of working in the corporate environment makes the
student aware of the conventions and other intricacies of the profession. It provides a
platform for a safe testing of the theoretical knowledge that a student has gained through
classroom study.

Purpose and Scope of Study

A comparison of insurance offerings between Bajaj Allianz life insurance Pvt ltd. and HDFC
Standard life insurance Co. Ltd has been done so that to understand the competitiveness of
the products from Bajaj Allianz Life Insurance Pvt Ltd in the Life Insurance market.

A SWOT analysis has been carried out. It has depicted the strengths, weaknesses,
opportunities and threats; on the basis of which the basic strategies have been built upon.

And also an on field survey has been done to understand the need and source of the
insurance policies.

Geographically, the scope of the study is confined to the market in Kolkata but the strategy
suggestion has wide implications considering the homogeneity of urban Indian markets.

16
Methodology

Figure 1.The Marketing Research Process

17
 RESEARCH METHODOLOGY

Objective: The basic aim behind the project was to understand the working of the life
insurance sector and the growing potential for Bajaj Allianz life as a company. Along
with these, the study on the comparative analysis is carried out to understand the
product differences in insurance industry and analyze it. Set of recommendations and
suggestions have been made to reduce the gap between the existing and the potential of
Bajaj Allianz Insurance.

Data: For both the studies, both primary and secondary data have been collected.
Further, primary data and secondary data have been collected from other life
insurance players in the market and customers to get information about their
product, and other.

Research Approach: To collect information regarding the product, distribution and

promotion of life insurance as a financial service, interviews were carried out with
the senior heads of the various departments, personal meetings were held with the
peoples to fill up questionnaires.

Research Instrument: The primary data in the research has been carried out
through personal interviews for filling up questionnaires with the concerned people
for both the studies. And the secondary data has been collected through various
websites, journals, newspapers, cases etc.

Data Analysis: Primary and secondary data collected has been analyzed to derive
conclusions for the whole study. The data are presented through charts and graphs.
They have been analyzed to take out its importance and implications for the
recommendations to be made at the end of the report.

18
CHAPTER SUMMARY
This chapter consists of data collection method and the data analysis procedure
applied. The whole chapter is divided into two broad categories. The first of the part
chapter consists of the data collection and the other part consists of data analysis.

Data for the following project was collected from primary sources. It is based on
convenience sampling, i.e. according to the convenience of sampler. I visited
different places in the core area allotted to me. I tried to meet with as many persons
as I could. For the comparatitive study I met with only one person I was allowed to
meet tried to collect the information I required or whatever they can provide me
with. And for the questionnaire a total of 150+ people were met.

After the data collection comes the data analysis part. Here, I have tried to analyze
the primary data collected using different pie and bar charts and have tried to get
some conclusion.

DATA COLLECTION
Sampling procedure: Convenience sampling, according to the convenience of the
sampler.

Source of information: Data was collected through primary sources.

Population considered: Population is the aggregate of all the elements defined prior
to the selection of sample. It must be defined in terms of elements, sampling units,
extent and time.
For this project

Element: BAJAJ ALLAIAZ

Sampling Unit: Supermarkets; offices.

Extent: Kankurgachi, Shyambazar, Salt Lake, Dum Dum, Park Street.

Time: 10/06/08 to 25/06/08

Number of samples considered: 150+

19
Collection And Analysis of Data

PRODUCT COMPARISON OF UNIT LINKED INSURANCE PRODUCT AND PENSION BEING

OFFERED BY BALIC LTD AND HDFC SLIC LTD.

BAJAJ ALIANZ LIFE INSURANCE CO HDFC STANDARD LIFE INSURANCE CO

LTD – ULIP – UNIT GAIN PLUS GOLD LTD- ULIP- UNIT LINKED ENHANCED

LIFE PROTECTION II
It says prospects of attractive returns It ensures that your family remains

with investments in various mix of financially independent even if the

securities to make a perfect plan. investor is not around. It ensures a life of

respect and dignity

Guaranteed life coverage with flexibility It also provides life coverage with

of choosing insurance cover according to increasing insurance cover every year

need.
There are two options of calculating the Sum assured here is again based on two

sum assured- Minimum & Maximum. options. Minimum is 50% of the term of

Minimum sum assured is calculated on 5 the policy, your chosen annual regular

times the annualized premium whereas premium or maximum of 20 times of

the maximum sum assured is calculated your chosen annual regular premium.

on basis of the age group.

It offers 6 investment funds with It offers 7 funds which provides the

complete flexibility to switch money potential for higher but more variable

from one fund to the other to manage the returns over the term of the policy

investments better. and/or more stable returns with lower

20
 long term potential
On maturity the fund value in respect of It has an additional feature wherein one

regular premium and top up premium is can take out the fund in periodic

paid. installments (min of Rs.10000) over a

period of 5 years. The money remains

invested in funds as chosen by the

investor. However charges are

applicable.
It has 5 options of giving the death In case of death of the investor, the

benefits. One unique feature of this policy greater of the current sum assured less

is that even if 3 years of regular premium any withdrawals and the total fund value

is not being paid and the policy lapses, is paid to the beneficiary. Thereafter the

fund value as on date of receipt of policy terminates.

intimation of death at the CO’s office will

be paid on death of the life assured

Surrender of the policy is applicable after Here again the surrender of the policy is

3 years from the date of commencement applicable after 3 years. There are 4

of the policy. Surrender value of the methods wherein the surrender value is

policy will be equal to the fund value less calculated.

surrender charges, if any.

Additional rider facility is available under No rider facility available

this scheme which includes accident,

critical illness, hospital cash riders etc

Partial withdrawal from this policy is Partial withdrawal from this policy is

applicable after 3 years and the min applicable after 5 completed years and

21
amount of withdrawal is Rs. 5000. No the min amount of withdrawal is Rs.

charges involved. After 10 years full 10,000. After the 5th year the withdrawal

withdrawal allowed without any charges. charges are nil.

Premium allocation charge varies from There are varied premium allocation

25% to15% in policy year 1 to 6% in charges ranging from 35% to 2 %

policy years ranging from 2 to 5 and 2 % depending on the premium size and

from policy year 6 and above. range and the policy years.
Fund management charges are applicable Applicable fund management charges

and it provides only 3 free switches and and it provides 24 switches in a policy

the rest being chargeable. year and rest being chargeable

Tax benefits U/S 80C and U/S 10 (10D). Tax benefit U/S 80C and U/S 10 (10D)

Additional tax benefits U/S 80D for the only

riders available.
The premium allocation chart is as The premium allocation chart is as

follows: follows:

1st Year of policy (amount in Rs) Regular Premium- Year 1 (in Rs)

12,000-14,999 ------ 75% 12,000-1,99,999 -------- 65%

15,000- 99,999 ----- 76% 2,00,000-4,99,999 ----- 72%

1,00,000-2,49,000 –80% 5,00,000-9,99,999 ----- 79%

2,50,000 & above – 85% 10,00,000-19,99,999 ----85%

2nd Year to 5th Year 20,00,000 & above ------91%

12,000-14,000 ---- 94% Regular premium – Year 2

15,000-99,999 ---- 94% Same as rates applicable for year 1

1,00,000-2,49,000-94% 3rd Year and above

2,50,000 & above -94% 12,000-1,99,999 ----------98%

22
6th Year Onwards 2,00,000-4,99,999 --------98%

12,000-14,999 -----98% 5,00,000-9,99,999 --------98%

15,000-99,999 -----98% 10,00,000-19,9,999-------98%

1,00,000-2,49,000-98% 20,00,000 & above -------98%

2,50,000 & above -98%

Minimum premium investment amount Minimum premium investment amount

is Rs. 12,000 is Rs. 12,000

Minimum premium paying term is 3 Minimum premium paying term is 3

years. Maximum is as chosen by the years.

customer.
Minimum term period is 10 years. Max Minimum term period is 10 years and

term is as chosen by the customer. maximum term is 30 years.

Minimum age of entry is zero years but Minimum age of entry is 18 years and

life coverage will start from the 7th year. maximum age of 45 years.

Max age of entry is 60 years. 50 years in

case of riders.
Free look period is 15 days Free look period is 15 days

BAJAJ ALIANZ LIFE INSURANCE CO HDFC STANDARD LIFE INSURANCE CO

LTD – Unit Linked Asset Allocation LTD- Unit Linked Pension Plus

Pension Fund
It is called “Future Secure” – Prepare for It says- Live a life of dignity & self

the future, secure your happiness respect. It is designed to provide a

retirement income for life with the

freedom to maximize your investment

23
 returns.
This plan comes with 2 alternatives- Retirement age is flexible – Between 50

Option A without life cover- It maximizes years to 75 years. There is no life

the investment income or Option B with coverage facility under this scheme

life cover. Retirement age is taken at 60

years maximum.
This fund has the option of 5 investment It has 6 funds which provide more stable

funds with complete flexibility to switch returns with lower long term potential.

money from one fund to the other to The potential for higher but more

manage the investments better. variable returns over the term of the

policy.
This eligibility criteria for this fund is The term period for this fund is between

between 6 yrs to 40 yrs. Loyalty units 10 years to 40 years. Loyalty units is at

varies from 0.10% to 0.30% 0.10%

There are 3 Annuity options available On maturity or vesting of the policy term

under this scheme. Annuity for life, one can take up 1/3rd of the fund value as

Annuity for life with 5, 10, 15 or 20 tax free cash lump sum and the rest can

year’s payout. Annuity for life with be converted into an annuity. The

return of capital. annuities can be bought either from the

co or from outside.
The death benefit is calculated as per On death, the nominee receives the unit

the options chosen by the policy holder fund value. The policy gets terminated

there-after.
Surrender if any is applicable only after Surrender is possible after 3 years of

3 years of the completion of the policy. completion of the policy. Here also the

24
The surrender value of the policy is surrender value is the value of the units

equal to the fund value less surrender in the fund. The surrender charge is

charges applicable. 50% of the difference between the

regular premiums expected and those

paid in the first year of the contract.

Loan facility is not available Loan facility is not available
Additional rider facility is available No rider facility available

under this scheme which includes

accident, critical illness, accidental

permanent/partial disability, hospital

cash riders
Premium allocation charges vary from Premium allocation charges are higher

20% to 0% varying on the annual which varies from 50% to 1% depending

premium size and the policy years. Top on the premium size and the policy

up premiums will have a premium years. Top up premium charges varies

allocation charge of 2 %. from 2.5% to 1 % again on the policy

years.
Applicable fund management charges Applicable fund management charges

and it provides only 3 free switches a and it allows 24 free switches a year.

year. Subsequent switches are

chargeable @ 5% or Rs. 100 whichever

is lower.
Eligible for tax benefits U/S 80CCC of the Eligible for tax benefits U/S 80CCC of the

IT Act 1961. Additional tax benefit for IT Act 1961

the riders if applicable.

25
A Questionnaire

Name-
Address-
Age-

Present status –
A) Student B) Serviceman c) Housewife D) Child

If serviceman which sector he/she is serving?

 Public sector
 Private sector
 Joint venture
 Businessman
 Public undertaking
 Retired personnel

Annual Income
a) 100000 b) More than 1lakh c) 5lakh and above

 Currently having life insurance or not?

2) Yes, b) no, c) going to pursue, d) is interested in the near future

 Whom do you prefer as your insurance partner?

LIC ( ) Private Insurance Company ( )

Does Brand matter to you while investing?

Yes ( ) No ( )

Which factor do you think is more important while investing? Rank

it. Brand Name ____
o High Return ____
o Safety ____
o Liquidity ____

Where do you invest more and feel comfortable? Rank It.

o Banks ____
o Govt. securities ___

26
 o Share market ____
o Insurance ____
o Post Office SS ___

Why do you invest your money in insurance?

 Tax Savings
 Cover
 Life Risk
 Future Security
 Pension

How do you rank these companies according to your

preferences?
o HDFC SLIC____
o ICICI Prudential ____
o Kotak Insurance ___
o Bajaj Allianz ____
o TATA AIG ____
o Birla Sunlife Insurance ____

Are you satisfied after your investment in private company?

Yes ( ), No ( ), Somewhat ( )

Will you invest in private companies in future?

Yes ( ), No ( )

Term preferred
a)3 years b)more than 3 years c)5years d)more than 10 years

Which kind of policies did him or she preferred?

A) Traditional policy B) Unit Linked policy

Sum Assured needed

a) 50000 b) 50001-100000 c) 100001-200000

Which plans does he preferred?

a) Whole life plans

b) Endowment plans

c) Children plans

d) retire/pension plans

27
 Have you invested in one insurance company or pursue different policies from
different companies
a) Yes b) no

What is your suggestion regarding the different policies?

A Questionnaire for Policy holder

Name:

Age group: (1)15-30 yrs (2) 30-45 yrs (3) 45- 60 yrs (4) 55 yrs & Above

occupation:
(1)Business (2) Service (3) Housewife (4) Student (5) Professional

Gross annual income ( in Rs):

o Below 50000
o 50000-100000
o 100000-300000
o 300000-500000
o Above 500000

Which plans does he preferred?

a) Whole life plans
b) Endowment plans
c) Children plans
d) retire/pension plans

Name the policy

How well you know about the policy

Where does you get to know about the policies

Does agent or broker bring to your notice about new product launched and
renewal due?
 Yes/no.

28
Analysis of Data

Analysis of the Comparison Of products

From the above comparison it is quite obvious that both the products have certain unique

features in itself. They are mostly identical in almost all the important parameters. Charges

have been found to be higher on the competition product. This is one very important aspect

which most of the customers thinks about. Additional rider facility available in Bajaj

Allianz is one very important USP of the product. However the performance of the

plan/fund would purely depend on the proper fund allocation and how the fund manager

will churn the funds at its best to provide the best returns. It would also depend on the

asset allocation and the selection of the companies for investment by the fund manager.

The past performance of the plan would provide the best platform for the future fund

performance. However it is also obvious that future fund performance purely depend on

the growth of the economy and other factors.

29
The SWOT ANALYSIS

The Pillars- Strengths

 The brand of the industry- Allianz Group

 The most amiable and co-operative team of employees
 Product designed specifically to meet the customer’s needs and demand.
 Strong agent network or distribution channels
 Wide variety of products

Weaknesses

 Indian public is not that matured now and seldom look at insurance as an
investment option.
 The product brochure should be made more specific in terms of addl information on
company allocation for equities.
 The brochures should have the touch of emotion as in HDFC SLIC

Opportunity

 Most of the private players in the market have not yet penetrated into the rural
areas. There is a lot of potential there. Bajaj Allianz can look for scopes to build
business out there.
 As mentioned above, the team at Bajaj Allianz is quite efficient to convince their set
of customers and insure their lives\and of their family members.

Threats

 The most significant threat is that now a days people have options to choose from
different insurance companies. Thus one has to take care that there is no lacuna in

30
 the customer service and it should be improvised on a time to time basis. Mis-selling
to be avoided at all circumstances. One satisfied customer can bring in thousands. If
we are not the first to grab this opportunity- someone else will……………..

1. Annual Income

Investment According to Annual Income

150000 150000-300000 300000-500000 above 500000

15%
29%

19%

37%

INTRODUCTION
Purpose of asking this question was to find out the income group, perception about
investing their savings in market.

ANALYSIS
 29% of the people with income under 15000 PM had less savings. They were aware
of unit-linked insurance but due to less earning most of them were under insured
and invested basically for saving tax. 32% of the people who belonged to age group
30-40 were aware of their growing responsibility and had more savings. Their
investment portfolio had NSC, fixed deposits.
 People having income 30000-50000 had the most diversified investment
portfolio. Out of which 38% people are more into investments in Real Estate.
They have ample savings and looked in for short-term gains in market.30%
of people in age group 20-30 were more keen to invest are willing to take

31
 high risk and prefer investment in equity as compared to others in same
income group, reason being they are active investors in equity market.
 People having income within 15000-30000 had more savings. 33% of the people
in age group 30-40 were becoming aware of their family responsibilities
and were thinking for investing in fixed deposit, insurance, NSC. 20% people
belonging to the banking sector preferred investment in secured investments like
Government Bonds, Life Insurance, NSC, Fixed Deposits.25% of people who
were operating own business preferred investment in their business and
insurance.

Investment on the basis of Profession

Public sector Private sector Joint venture
Buisinessman Public undertaking Retired personel
14% 14%
2%
10%

4%

56%

o 56% of people are from private sector and are more concerned about their
future. put lots of money in investment for high gain.
o 14% of people were from public sector, having less saving and want
to investment more in public sector for safety of their money.
o 14% were retired person, they are less interested in investing their saving,
they can be recruited as a insurance consultant.
o 10% of people are businessman and are more interested in general insurance
then life insurance but potential customer are their who can invest in huge.

32
 Having Insurance Policy
Yes No Going to Pursue interested in Future

10%

16%

10% 64%

26% in total people are there those who are interested in pursuing insurance policies,
handsome target customer are there where the company can look in.

A total of 69% of people have already taken up Insurance policy.

As the time is passing by people of India are becoming aware of the value of their life. So
people are getting interested in taking up life insurance as it not only give them secuirity,
but also it gives a security to their families.

The 10% of them who are not interested in taking up insurance policy has some reasons
like, they are being provided with medical coverage and life coverage by the company in
their pay package. Many of the 10% don’t really know the value of their life. So they are
reluctant to take up life insurance.

33
 Whom to consult for Insurnace
Own decision Financial Consultant Insurance Advisor Broker,banker,other

15% 9%

7%

69%

o 69% of the people take their own decision before making any investment but they
too need some advice from somewhere.
o Insurance advisor (15%) are important people to consult before investing, so
advisors should have the knowledge and trustworthy on whom investor can rely
on. So company should recruit such advisor who can guide well and keep the
image of the company at high.
o And rest 16%took advice from brokers, financial consultant, bankers or from
other sources

34
 Investment Type
Government Bond Mutual Fund Life insurance Fixed Deposit
NSC Equity Real Estate Other
15% 1% 7% 7%

12%

29%

9%
19%

 Most of the people did not look into other benefits of investment before investing.
One of the reasons for that is they do not consult financial consultants or advisors or
brokers. 29% of people like to invest in insurance sector because of its liquidity.
With introduction of Unit linked Insurance plans liquidity of insurance had
increased in the market.
 19% of people who still hold on to fixed deposits are changing their portfolio to
unit-linked insurance. As fixed deposit rates are falling, the only near alternative to
give higher return is unit-linked insurance or mutual funds.
 16% of people invest in real estate because the real estate market in and around
Kolkata is on rise and value of houses have positive outlook with respect to returns.
These people look for transparency and good track record in sector before investing.
 12% of people who invest in equity out of which 85% are day traders, and 15% are
long-term investors in equity market.

35
  7% prefer government bonds because of its constant returns but due to increase
and decrease in interest rate this financial year the government bonds are not able
to give satisfactory returns to its holders.7% people prefer Mutual funds as the risk
is diversified but the recent survey by RBI has quoted that mutual fund companies
are not able to disclose the risk factor on mutual fund scheme.

Players
LIC Private

44%

56%

56%of people still think that public sector is safer for investing then of private
sector. The notion has change a bit after emergence of private company but need to
be change more than this. As with the emergence of the private companies in Life
Insurance sector and the different products or policies designed by them it can be
said that the private players are giving a good amount of competition to the public
sector companies.

As the data shows that already 44% of the life insurance has been eaten up by the
private players, so in the next 5-10 years it can be possible that the private players
may take the lead.

36
Factors Effecting Investment
Brand name High Return Safety Liquidity
17% 6% 30%

47%

37
Awareness About Bajaj Allainz Life Insurance Plans
Yes No
31%

69%

38