122519977-bajaj-allianz.doc

7/29/2019 122519977-bajaj-allianz.doc

1/76


2/76

PART-

A

1. INDUSTRY PROFILE

Introduction to Insurance sector:

Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the

caravan trade by giving loans that had to be later repaid with interest when the goods arrived

safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice

thats perhaps, was how insurance made its beginning. Life insurance had its origins in

ancient Rome, where citizens formed burial clubs that would meet the funeral expenses of its

members as well as help survivors by making some payments.

As European civilization progressed, its social institutions and welfare practices also got

more and more refined. With the discovery of new lands, sea routes and the consequent

growth in trade, medieval guilds took it upon themselves to protect their member traders from

loss on account of fire, shipwrecks and the like.

Since most of the trade took place by sea, there was also the fear of pirates. So these guilds

even offered ransom for members held captive by pirates. Burial expenses and support in

times of sickness and poverty were other services offered. Essentially, all these revolved

around the concept of insurance or risk coverage. That's how old these concepts are, really. In

1347, in Genoa, European maritime nations entered into the earliest known insurance contract

and decided to accept marine insurance as a practice.

The irst step...

Insurance as we know it today owes its existence to 17th century England. In fact, it began

taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London,

where merchants, ship-owners and underwriters met to discuss and transact business. By the

end of the 18th century, Lloyd's had brewed enough business to become one of the first

modern insurance companies.

Enter companies...

The first stock companies to get into the business of insurance were chartered in England in

1720. The year 1735 saw the birth of the first insurance company in the American colonies in

Charleston, SC.


3/76

In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation

in America for the benefit of ministers and their dependents.

However, it was after 1840 that life insurance really took off in a big way. The trigger:

reducing opposition from religious groups

The growing years...

The 19th century saw huge developments in the field of insurance, with newer products being

devised to meet the growing needs of urbanization and industrialization.

In 1835, the infamous New York fire drew people's attention to the need to provide for

sudden and large losses. Two years later, Massachusetts became the first state to require

companies by law to maintain such reserves. The great Chicago fire of 1871 further

emphasized how fires can cause huge losses in densely populated modern cities. The practice

of reinsurance, wherein the risks are spread among several companies, was devised

specifically for such situations.

There were more offshoots of the process of industrialization. In 1897, the British

government passed the Workmen's Compensation Act, which made it mandatory for a

company to insure its employees against industrial accidents. With the advent of the

automobile, public liability insurance, which first made its appearance in the 1880s, gained

importance and acceptance?

In the 19th century, many societies were founded to insure the life and health of their

members, while fraternal orders provided low-cost, members-only insurance. Even today,

such fraternal orders continue to provide insurance coverage to members as do most labor

organizations. Many employers sponsor group insurance policies for their employees,

providing not just life insurance, but sickness and accident benefits and old-age pensions.

Employees contribute a certain percentage of the premium for these policies.

In India...

Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of

Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda.

The term suggests that a form of "community insurance" was prevalent around 1000 BC and

practiced by the Aryans.

2


4/76

Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in

1870. Other companies like Oriental, Bharat and Empire of India were also set up in the

1870-90s. It was during the swadeshi movement in the early 20th century that insurance

witnessed a big boom in India with several more companies being set up. As these companies

grew, the government began to exercise control on them. The Insurance Act was passed in

1912, followed by a detailed and amended Insurance Act of 1938 that looked into

investments, expenditure and management of these companies' funds.

By the mid-1950s, there were around 170 insurance companies and 80 provident fund

societies in the country's life insurance scene. However, in the absence of regulatory systems,

scams and irregularities were almost a way of life at most of these companies. As a result, the

government decided to nationalize the lie insurance business in India. The lie insurance

corporation of India was set up in 1956 to take over around 250 life companies.

For years thereafter, insurance remained a monopoly of the public sector. It was only after

seven years of deliberation and debate - after the RN Malhotra Committee report of 1994

became the first serious document calling for the re-opening up of the insurance sector to

private players -- that the sector was finally opened up to private players in 2001.The

INSURANCE REGULATORY & DEVELOPMENT AUTHORITY, an

autonomousinsurance regulator set up in 2000, has extensive powers to oversee the insurance business

and regulate in a manner that will safeguard the interests of the insured.

INSURANCE ININDIA

The insurance sector in India has come 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.

A brief history of the Insurance

sectorThe business of life insurance in India in its existing form started in India in the year

1818: With the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in

Indiaare

:

3


5/76

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the

life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective

of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central

government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,1956, with a

capital contribution of Rs. 5 crore from the Government of India. 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.

Some of the important milestones in the general insurance business in

Indiaare

:1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of

general insurance business.

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.1968: 2The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general

insurance business in India with effect from 1st January 1973. 107 insurers amalgamated

and grouped into four companies viz.

The National Insurance Company Ltd.

The New India Assurance Company

Ltd.The Insurance Company Ltd.

AndThe United India Insurance Company Ltd.

GIC incorporated as a company.

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.

4


6/76

The reforms were aimed at creating a more efficient and competitive financial system

suitable for the requirements of the economy keeping in mind the structural changes currently

underway and 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;

1.) 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

subsidiaries can act as independent corporations.

All the insurance companies should be given greater freedom to operate.

2.) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to

enter the industry.

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.

3.) Regulatory Body

The Insurance Act should be changed.

An Insurance Regulatory body should be set up.

Controller of Insurance (Currently a part from the Finance Ministry) should be made

independent.

4.) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from

75% to 50%.

5


7/76

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).

5.) 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 to be carried out in the

insurance industry.

The committee emphasized that in order to improve the customer services and increase the

coverage of the insurance industry should be opened up to competition. But at the same time,

the committee felt the need to exercise caution as any failure on the part of new players could

ruin the public confidence in the industry. Hence, it was decided to allow competition in a

limited way by stipulating the minimum Capital requirement of Rs.100 crores. 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

AuthorityReforms 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

000 has fastidiously stuck to its schedule of framing regulations and registering the private

sector insurance companies. The other decisions taken simultaneously to provide the

supporting systems to the insurance sector and in particular the life insurance companies were

the launch of the IRDAs 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.

Since being set up as an independent statutory body the IRDA has put in a framework of

globally compatible regulations. Total number of life insurers under the Authority has gone

up to 21, while total number of general insurers registered with IRDA has reached 20.

Insurance Sector

6


8/76

4.47 Reforms in the insurance sector commenced with the enactment of the Insurance

Regulatory and Development Authority Act 1999, which facilitated the entry of private

insurance companies into the Indian insurance market. The Insurance Regulatory and

Development Authority (IRDA) was set up on April 19, 2000 to protect the interest of the

holders of insurance policies, and to regulate, promote and ensure orderly growth of the

insurance industry.

2.COMPANY

PROFILE

a) BACKGROUND AND INCEPTION OF THECOMPANYBajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates-

Allianz AG, one of the world's largest insurance companies, and Bajaj Auto Limited, one of

the biggest 2 and 3 wheeler manufacturers in the world. Bajaj Allianz Life Corporation

limited was incorporated on 12th March 2001. The company received the Insurance

Regulatory and Development Authority (IRDA) certificate of Registration (R3) No. 116 on

3rd August 2001 to conduct Life Insurance Business in India. Bajaj Allianz Shareholder

Capital base stands at Rs.500 crore with Bajaj Auto Limited and Allianz AG of Germany

holding 74% and 26% stake respectively. It is the 22 largest private player in Insurancend

industry in India with a market share of 13.2% amongst the private companies as on 252 Feb,th

009.

Bajaj Auto

LimitedBajaj Auto Ltd, the flagship company of the Rs. 8000 Crore Bajaj Group is the largest

manufacturer of two wheelers and three wheelers in India and one of the largest in the world.

A household name in India, Bajaj Auto has a strong brand image & brand loyalty

synonymous with quality and customer focus. With over 15,000 employees, the company is a

Rs. 4000 crore auto giant. AAA rated by Crisil.

Bajaj Auto has been in operation for over 55 years. It has joined hands with Allianz to

provide the Indian consumers with a distinct option in terms of life insurance products.

As a promoter of Bajaj Allianz Life Corporation Ltd., Bajaj Auto has the following to offer

Financial strength and stability to support the insurance business.

A strong Brand equity.

A good market reputation as a world class organization.

An extensive distribution network.

7


9/76

Adequate experience of running a large organization.

A 10 million strong base of customers using Bajaj products.

Advanced Information Technology in extensive use.

Experience in the financial services industry through Bajaj Auto Finance Ltd.

Allianz

AGFounded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000

employees. At the top of the international group is the holding company, Allianz AG, with its

head office in Munich.

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

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

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

group provides Risk Management and Loss Prevention Services. Allianz has insured most of

the worlds largest infrastructure projects (including Hong Kong Airport and channel tunnel

between UK and France), further Allianz insures the majority of Fortune 500 companies,

besides being a large industry insurer, and Allianz has a substantial portfolio in the

commercial and personal lines sector, using a wide variety of innovative distribution

channels.

Allianz Ag A Global Financial Powerhouse

Worldwide second by Gross Written Premiums (GWR) Rs. 4, 46,654 cr.

32 largest Asset under Management (AUM) & and largest amongst insurance cos.rd

AUM of Rs. 51, 96,959 cr.

122 largest corporation in the world.th

49.8% of global business from life insurance.

Established in 1890, 110 years of insurance expertise.

b) NATURE OF THE BUSINESS

CARRIEDBajaj Allianz Life Insurance as the name suggests is into the Insurance sector. Bajaj Allianz

Life Insurance Company Limited engages in life insurance business in India. The company

offers unit linked regular and single premium plans; pension plans; traditional products,

including endowment and money back products; and term plans. It also provides non

8


10/76

employer employee and employer employee group insurance products; women insurance;

micro insurance; and wealth insurance products.

c) VISION, MISSION ANDVALUES

VISION:

1) To be the first choice insurer for customers.

2) To be the preferred employer for staff in Insurance industry.

3) To be the number one insurer for creating shareholder value

4) To aspire to be a world class organization.

5) To encourage organizational transparency.

6) To value integrity.

MISSION:

We aim to be the top new life insurance company in the market. This does not just mean

being the largest or the most productive company in the market, rather it is a combination of

several things like-

1) Customer service of the highest order.

) Value for money for customers.

3) Professionalism in carrying out business.

4) Innovative products to cater to different needs of different customers.

5) Use of technology to improve service standards.

6) Increasing market share.

VALUE

S

Security: Providing long term financial security to our policy holders will be our constant

endeavor. We will be do this by offering life insurance and pension products.

9


11/76

Trust: We appreciate the trust placed by our policy holders in us. Hence, we will aim to

manage their investments very carefully and live up to this trust.

Innovation: Recognizing the different needs of our customers, we will be offering a range of

innovative products to meet these needs.

d) PRODUCTS/SERVICE PROFILE

Product of the company

Traditional Plans:

1. Life Time Care: Is a whole life plan, where it helps you financially at the time when your

regular income ends. That is it provides survival benefits at the age of 80. The plan also has

additional benefits like Waiver of Premium, Accidental Death Cover & Disability Cover and

Critical Illness Cover & Hospital Cash Cover.

2. Super Saver: Is a regular premium endowment plan, which enables the policyholder to

save an amount regularly for the future. The plan also has an extra benefit of Guaranteed

Additions to the sum assured, at the end of each policy year.

3. Save Care Economy SP: A 10year single premium endowment plan which provides

savings with high risk cover. This plan also participates in the companys profits. It is a high

risk but has easy liquidity and high returns.

Money Back Plan: A money back plan which guarantees 5 easy payouts giving up to 125%

plus (+) bonuses. Also 4 times a life cover. The additional benefits offered are

Family Income Benefit

Accidental Death Benefit and Disability Benefit.

Critical Illness Benefit and Hospital Cash Benefit.

Term Plans

1. Term Care: Is a term Assurance plan which provides life cover and return of premiums

paid at the time of maturity. It has the option of single premium payment. It is the only pure

Term Plan which provides Hospital Cash Benefit.

2. New Risk Care: Is a plan with regular/single premium payment options. This plan comeswith a lowest cost for a Life Insurance cover. With regular premium plan you get additional

10


12/76

rider benefits. Also accidental death benefit and accidental permanent total/partial disability

benefit. Besides that you can also avail of critical illness benefit and hospital cash benefit.

3. Protector: Is a mortgage reducing term assurance plan. At a low premium amount you can

secure your family from the burden of paying the Home Loan in your absence. You get an

option of both Regular Premium payment and single premium payment. Also there is an

option of Joint life availability, where the co-applicant can be also covered in the plan.

Unit Linked Plans (Regular premium & Single Premium)

A) Regular Premium

1. New Unit Gain: Is an investment plan where you get value for your funds invested.

2. New Gain Super: Is a flexible unit linked plan with partial & full withdrawals after 3

years. It offers additional benefits like UL Accidental Death Benefit and UL Disability

Benefit, UL Critical Illness Benefit and UL Hospital Cash Benefit and 4 funds to choose from

& flexibility to pay top-up any time.

3. New Unit Gain Plus: This plan gives you 5 investment funds to choose from. With the

option of 3 free switches every year. Also partial or full withdrawal after 3 years. It plan

offers flexibility to meet ones changing lifestyle and insurance needs. It offers guaranteed life

cover.

4. Unit Gain plus Gold: A unique investment plan with the combination of protection and

prospects of earning attractive returns. It has a high allocation up to 85%. You have a choice

of 7 funds to invest in & also a guaranteed life cover. Additional benefit riders are also

available with this

plan.5. New Family Gain-R: It is Life Insurance Plan that can take care of all the changing

requirements of the family. It has maximum flexibility, so that you are provided for all the

changing needs you mayhave.6. Young Care: This investment plan is a Gift of a lifetime to a loved one. It offers a

guaranteed Sum Assured and continued pay premium on your behalf, in case of your

unfortunate death.

7. Young Care Plus: It offers the same benefit as the above plan but in addition offers a

critical illness benefit.

B) Single Premium

1. New Unit Gain Premier SP: It is a unique insurance cum investment plan as it starts

investing 105% of the single premium paid from day one, thereby ensuring that you get more.

11


13/76

It has a guaranteed life cover and flexible withdrawal option u/s 10 (10) D.

2. New Unit Gain plus SP: Is a single premium plan that gives you 98% allocation with

guaranteed life cover. Minimum premium is Rs. 10,000 only. A choice of 5 investment funds

to choose from. And 3 free switches every year. Partial & full withdrawals after 3 years.

Pension (Annuity & Retirement)

A) Annuity

Pension Guaranteed: Is a plan that assures a regular income after your retirement for life.

B) Retirement

1. New Unit Gain Easy Pension plus RP: A unit linked pension plan without life cover. It

has regular premium payment mode. An option to take a tax-free lump sum up to 33% of

Sum Assured. You can invest in any 6 funds. With 3 free switches every year. Also open

market option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other

life insurer.

2. New Unit Gain Easy Pension plus SP: A unit linked pension plan without life cover. It

has single premium payment mode. An option to take a tax-free lump sum up to 33% of Sum

Assured. You can invest in any 6 funds. With 3 free switches every year. Also open market

option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other life

insurer.

3. Swarna Vishranti: Is a plan with an option to take a tax-free lump sum up to 33% of Sum

Assured + Accrued Bonuses. Open Market option: Purchase immediate annuity from Bajaj

Allianz Life Insurance or any other Life Insurance Company. And also additional benefits

can be availed of.

4. Future Secure: It is a plan which secures your future.

5. Future Income Generator: It helps you maintain the same lifestyle you lead now ,after

your retirement. The saving today becomes your wealth and support to help secure your

future. The plan is about wealth creation, smart savings and peace of mind along with a

corpus, which secures your life, post retirement.

Women Insurance

Plans1. Housewives: Housewives need to safeguard their financial independence. There are

additional benefits like the Mahila Gain feature which offers benefits like.

Critical Illness Benefits.

12


14/76

Reconstructive Surgery Benefits for Breast(s) due to Breast Cancer.

Congenital Disability Benefits.

Complications of Pregnancy Benefits.

2. Working Women: This plan helps the working women to protect them self, their family

and plan for their future. The insurance, investment, pension and health products have been

specially customized to suite to every specific need of a woman.

Children Plans

Child Gain: Is a plan where it creates funds for critical stages in your Childs life like

education, marriage or even to start a business. It has the benefit of low premium rates.

Health Plans

1. Health care: Is a plan with 6- in-1 Health Insurance that offers:

Life Cover

Hospital Cash benefit

Surgical benefit

Post Hospitalization Benefit

Critical Illness Cover

Accidental Permanent Total / Partial Disability (APT/PD)

2. Family Care First: It is a plan for the whole family. This unique hospitalization plan gives

you health cover for your entire family. You can secure your family with one plan.

3. Care First: A Medical Insurance plan till the age of 65years. And you can renew the

policy every 3 years. The premium rate is level and guaranteed for the length of each policy

term of 3 years with extra benefits like day care treatment and pre and post hospitalization

treatment

Micro Insurance

Plans1. Alp Nivesh Yojana: An endowment plan with Life cover and Maturity benefit equal to

sum assured + vested bonus.

2. Saral Suraksha Yojana: A Term Insurance policy with return of premium on maturity.

3. Jana Vikas Yojana: A single premium plan with maturity benefit of 125% of the single

premium payable on survival till the end of the policy term.

13


15/76

e) AREA OF

OPERATIONBajaj Allianz today has a country wide network connected through the latest technology for

quick communication and response in over 200 towns spread across the length and

breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all theoffices are interconnected with the Head Office at Pune. During the year, company

continued to increase its focus on service quality. The company aims to provide consistent

and high quality service across the country through, all channels of delivery - branches, call

centers, internet and the customer portal. Towards this end, periodic service audits conducted

across all regional offices and at the call centers provide useful insights into customer

requirements and expectations helping the company improve its processes. The company has

implemented a Quality Initiative across its offices which regularly measures the effectiveness

of its processes, reduces leakage and contributes to increasing revenues, managing costs and

improving service quality. The company has also launched a completely revamped website

with a big focus on customer education and knowledge. The company has continued to

strengthen its presence in the virtual world, both for creating awareness and facilitating self-

service. Your company continues to explore strategic outsourcing partnerships with a focus

on handling volumes and reaping economies of scale. The combination of outsourcing

partnerships and technology implemented by the company is assisting in improvement of

service turnaround times.

) OWNERSHIP

PATTERNBAJAJ Allianz Life Insurance Company 2is a joint venture between two leading

conglomerates, Bajaj Auto Limited, one of largest manufactures of motorcycles and scooters

in the world, and Allianz AG of Germany one of the largest insurance companies. Bajaj

Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company

received the Insurance Regulatory and Development Authority (IRDA) certificate of

Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance business in India.

Bajaj Allianz Shareholder Capital Base stands at Rs. 500 crore with Bajaj Auto Limited and

Allianz AG of Germany holding 74% and 26% stake respectively. It is the largest private

player in the Insurance Industry in India with a market share of around 34% amongst the

private companies and second to LIC. The total market share of Bajaj Allianz as of 31 st

March 2006 is at 12%.

14


16/76

g) COMPETITORS

INFORMATIONICICI PRUDENTIAL: 2 ICICI prudential insurance is a joint venture of ICICI bank

and

prudential plc. a leading financial service group in the UK. Total capital stands for Rs. 37.72billion, with ICICI Bank holding a stake of 74% and Prudential plc. Holding 26%. ICICI

begin their operations in December 2000 after receiving approval from IRDA. Now ICICI

prudential is having over 1000 offices, over 270000 advisors and 21bancassurance partners.

ICICI Prudential was the first life insurer in India to receive a National Insurer Financial

Strength rating of AAA from Fitch ratings. ICICI prudential is working on the base of five

core values-

Integrity

Customer first

Boundary less

Ownership

Passion

Key features:

Understanding the needs of customers and offering them superior products and

service.

Leveraging technology to service customers quickly, efficiently and conveniently.

Developing and implementing superior risk management and investment strategies to

offer sustainable and stable returns to policyholders.

Providing an enabling environment to foster growth and learning for employees.

HDFC standard life insurance: HDFC Standard Life Insurance Company Ltd. is one of

India's leading private insurance companies. It is a joint venture of Housing Development

Finance Corporation Limited, India's leading housing finance institution and a Group

Company of the Standard Life in UK. HDFC as on March 31, 2007 holds 81.9 per cent of

equity venture. Gross premium income of the HDFC for the year ending March 31, 2007 was

Rs. 2, 856 crores and new business premium income was Rs. 1,624 crores. The company has

covered over 8, 77,000 lives year ending March 31, 2007. HDFC standard is having 1000

advisors in 11 towns.

15


17/76

Key features:

Creating corporate agents through HDFC bank in India.

Creating agents to provide total financial consultancy.

Introducing low cost group schemes for companies and NGOs.

Reliance life insurance: Reliance Life Insurance Company Limited is a part of Reliance

Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of

Indias leading private sector financial services companies, and ranks among the top 3 private

sector financial services and banking companies, in terms of net worth. Reliance Capital has

interests in asset management and mutual funds, stock broking, life and general insurance,

proprietary investments, private equity and other activities in financial services. Reliance

Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the

Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934.

Aviva life insurance: Aviva is UKs largest and the worlds fifth largest insurance Group. It

is one of the leading providers of life and pensions products to Europe and has substantial

businesses elsewhere around the world. Aviva has a joint venture of Dabur, one of India's

oldest, and largest Group of companies. And country's leading producer of traditional

healthcare products. In accordance with the government regulations Aviva holds a 26 per cent

stake in the joint venture and the Dabur group holds the balance 74 per cent share. Aviva

has 193 Branches in India (including rural branches) supporting its distribution network.

Through its Banc assurance partner locations, Aviva products are available in more

than 2,795 locations across India. Aviva has a sales force of over 30000 financial planning

advisors.

Key features:

Through the Financial Health Check (FHC) Avivas sales force has been able to

establish its credibility in the market. The FHC is a free service administered by the

FPAs for a need-based analysis of the customers long-term savings and insurance

needs. Depending on the life stage and earnings of the customer, the FHC assesses

and recommends the right insurance product for them.

Introduced the concept of Banc assurance in India.

Products to provide customers flexibility, transparency and value for money.

16


18/76

Differentiation in fund management operations.

MetLife insurance: MetLife India Insurance Company Limited is an affiliate of MetLife,

Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc. and

The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private

investors. MetLife is one of the fastest growing life insurance companies in the country. It

offers a range of innovative products to individuals and group customers at more than 600

locations through its bank partners and company-owned offices. MetLife has more than

32,000 Financial Advisors. It has approximately 70 million customers all over world.

MetLife is working on the base of six core values-

Innovation

Long term relationship

Customer centered and result focused vision

Creating high performance organization

Working with integrity, fairness and financial prudence

Partnering with internal and external customers

Max New York life insurance: Max New York Life Insurance Company Ltd. is a joint

venture between New York Life, a Fortune 100 company and Max India Limited, one of

India's leading multi-business corporations The Company's paid up capital is Rs. 907.4 crore.

Max New York life is working on the base of six core values-

Excellence,

Honesty,

Knowledge,

Caring,

Integrity

The Company practices a lot of importance on its selection process of insurance advisors

which comprises four stages - screening, psychometric test, career seminar and final

interview. 337 agent advisors have qualified for the Million Dollar Round Table (MDRT)

17


19/76

membership in 2007 and Max New York Life has moved up to 21st rank in MDRT global

list.

Key features:

Max New York Life has adopted prudent financial practices to ensure safety of

policyholder's funds.

Investing significantly in its training programme and each agent is trained for 152

hours as opposed to the mandatory 100 hours stipulated by the IRDA before

beginning to sell in the marketplace.

Using a five-pronged strategy to pursue alternative channels of distribution which

include the franchisee model, rural business, direct sales force involving group

insurance and telemarketing opportunities, banc assurance and corporate alliances.

Bharti Axa life insurance: Bharti Axa life insurance is a joint venture between Bharti, one

of Indias leading business groups with interests in telecom, agri business and retail, and Axa

world leader in financial protection and wealth management. The joint venture company has

a 74% stake from Bharti and 26% stake of Axa. The company started its operations in

December 2006. Now company is having over 5200 employees across over 12 states in the

country. Company is working on the base of five core values-

Professionalism

Innovation

Team Spirit

Pragmatism

Integrity

Key features:

Using multi-distribution, multi product platform techniques.

Adapting AXA's best practices as a sound platform for profitable growth.

Leveraging Bharti's local knowledge, infrastructure and customer base.

Delivering high levels of shareholder return.

Building long term value with business partners by enhancing the proposition to

their customers.

18


20/76

Retaining the best talent in India.

Tata AIG life insurance: Tata AIG Life Insurance Company Limited (Tata AIG Life) is a

joint venture company of the Tata Group and American International Group, Inc. (AIG). The

Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26

percent. Tata AIG Life provides insurance solutions to individuals and corporate. Tata AIG

Life Insurance Company started to operate its business in India on April 1, 2001. Tata AIG is

having 3000 advisors all over India.

Key features:

Establishing direct mailers; call-centers in 60 centers.

Creating awareness workshops in housing societies.

15-day trial period with refund, premium payment through credit card.

ING Vysya life insurance: ING Vysya Life Insurance Company Limited a part of the ING

group the worlds largest financial services provider entered in the private life insurance

industry in India in September 2001.ING Vysya Life is currently present in 246 cities and has

a network of over 300 branches, staffed by 7,000 employees and over 51,000 advisors,

serving over 5.5 lakh customers. ING Vysya Life has a diversified distribution channels,.

While Tied Agency remains the strongest channel, the Alternate Channels business within

ING Vysya Life is one of the fastest growing distribution channels. ING Vysya Life has

strengthened its position as the unparalleled leader in the life insurance industry in

cooperative banks tie ups. The company currently has tie ups with 130 cooperative banks

across the country. The Alternate Channels division has Banc assurance, ING Vysya Bank,

Corporate Agents and SMINCE. ING Vysya is working on the base of five core values-

Professionalism

Entrepreneurial

Trustworthy

Approachable

Birla sun life insurance: 2 Birla Sun Life Insurance Company Limited (BSLI) is a joint

venture between the Aditya Birla Group and the Sun Life Financial Services of Canada. It

19


21/76

started operations in March 2001 after receiving its registration license from IRDA in January

001. Company is having more than 45 branches across India.

Key features:

Focus on unit linked insurance products supported with protection products to

maintain leadership in product innovation.

Use of multi distribution channels- Direct Sales Force, Alternate Channels and

offering convenient channels of purchase to customers.

Web-enabled IT systems for superior customer services and issuing policies on the

internet.

High degree of transparency in all business practices and procedures.

Working on operational Business Continuity Plan.

AEGON Religare

Life

AEGON, an international life insurance, pension and investment company, Religare, one of

Indias leading integrated financial services groups and Bennett, Coleman & company,

Indias largest media house, have come together to launch AEGON Religare Life Insurance

Company Limited. This venture is dedicated to build a firm future, both for customers and

employees and will continue to balance a local approach with the power of an expanding

global operation.

We launched our pan-India multi-channel operations in July, 2008 with over 30 branches

spread across India. Our business philosophy is to help people plan their life better. We

provide high quality advice to our customers and offer superior customer service.

Canara HSBC OBC

Life

The shareholding pattern of the Joint Venture is as follows - Canara Bank holds 51% equity,

HSBC Insurance (Asia Pacific) Holdings Ltd 26% and Oriental Bank of Commerce 23%. The

Venture has an initial paid up capital of INR 325 crores which will further increase in line

with our expansion plans.

20


22/76

The Company commenced business 16th of June, 2008 after receiving requisite approvals

from the Insurance Regulatory Development Authority (IRDA). Canara HSBC Life has

access to 4100 bank branches all over India.

h) INFRASTRUCTURAL

FACILITIESBAJAJ ALLIANZ is providing good infrastructural facilities which are required for

employees to perform their work in a better way. During the year, the Company has invested

in additional infrastructure capacity and human capital, in terms of offices, technology, staff,

financial consultants, in order to be well positioned to increase the growth momentum in the

year ahead. The company stepped up the recruitment program in the latter part of the year in

preparation for the next year.

BAJAJ ALLIANZ providing medical card (BALIC medical card) to the employee, in which

employee can take medical facility up to 5 lakhs. Employee can use this facility for their

family also. BAJAJ ALLIANZ providing online attendance system for their employee.

It also provide online official id to their employee.

i) ACHIEVEMENT/AWARD

S: Bajaj Allianz Life Insurance has been awarded the SKOCH Financial Inclusion

Award 2011 for its execution of financial inclusion initiatives through life insurance

across India. Financial inclusion is the delivery of financial services at affordable

costs to low income segments of society.

The award recognizes Bajaj Allianz's micro-insurance product catering to rural

markets, Sarve/Swayam Shakti Suraksha (SSS). A flexible and simple plan, SSS

offers rural customers insurance protection against unforeseen events and an

opportunity to save systematically

Bajaj Allianz has received iAAA rating, from ICRA Limited, an associate of

Moodys Investors Services, for Claims Paying Ability. This rating indicates highest

claims paying ability and a fundamentally strong position.

Bajaj Allianz General Insurance has received the prestigious Business Leader in

General Insurance, awarded by NDTV Profit Business Leadership Awards 2008. The

company was one of the top three finalists for the year 2007 and 2008 in the General

Insurance Company of the Year award by Asia Insurance

Review.21


23/76

j) WORK FLOW MODEL (END TO END)

The work flow model of the organization is represented by a flow chart.

Dealers/ salesmen / surveyor obtain contact information about prospective customer

Rejection

Rejection Rejection

Rejection Rejection

22

ClientPolicy

document

CUW (central

under

RPC (regional

process center)

OperationSales

manager

Sales promoter

(Bank) / salesofficer (Aviva)

Branch operation


24/76

K) FUTURE GROWTH AND

PROSPECTUS

Bajaj Allianz, in the present scenario is growing at an aggressive pace. The company does a

lot of survey & analysis in the market to discover customers need and expectation and tries

to improvise on its existing market linked plans along with insurance policies.

Bajaj Allianz Life Insurance, one of the leading private insurance companies in India,

is eyeing to double its market share to 10 per cent in the health insurance segment

over the next three years. Presently, the company's market share in health insurance,

among all the life insurers, is around 5%, which it plans to increase it to 10% in a

three-year period. The company launched the latest insurance policy, in order to

strengthen the Indian insurance industry's focus on women.

Bajaj Allianz Life Insurance has already launched one product this quarter (Q1 FY

11) in the traditional category -Invest plus Premier- and has lined-up a few more for

in Q2.

According to Bajaj Allianz Life Insurance CEO, Kamesh Goyal, In Q2, we plan tolaunch a few products--our plans will be finalized by June 30"

Many of the products of Bajaj Allianz in the pipeline, company have filed for a few

with IRDA and were awaiting its

approval. Currently the company has maintained the no. 22 position in the general insurance

nd

industry and the next plan of company is to maintain the same position in the life

insurance sector also. Currently company has the market share of 4% in life insurance

and the main focus of the company is to strengthen their position in the nextupcoming year by launching some more value added product.

23


25/76

3) MCKINSEY 7-S MODEL

The 7-s model with reference to BAJAJ ALLIANZ life

insurance:

The 7s model are a frame work for analyzing organizations and their effectiveness. It looks

at seven key elements that make the organization successful, or not; a structure; a system,

skills, staff, shared values.

Consultants at McKinseys and company developed by 7s models in the late 1970s to help

managers address the difficulties of the organization change. The model shows that

organizational immune system and the many inter connected variables involved make change

complex, and that an effective change effort must address many of these issues

simultaneously.

24


26/76

The 7s model is a tool for managerial analysis and action that provides structure with which

to consider a company as whole, so that the organizational problems may be diagnosed and a

strategy may be developed and implemented.

2The seven diagrams illustrates the multiplicity interconnectedness of elements that

organizations ability to change. The theory helped to managers thinking about how

company could be improved. It says that it is not just a matter of devising a new strategy and

following it through. Nor is it a matter of setting a new system and letting them generate

improvements?

To be effective, your organization must have degree of fit or internal alignment among all the

7s. Each S must be consistent with the reinforcement of the other S. All S are interrelated

so a change in one has a ripple effect on all others. It is impossible to make progress on one

without making progress on all. Thus, to improve the organization you have to master

system thinking and pay attention to all of the seven elements at the same time. There is no

starting point or implied hierarchy different factors may drive the business in any one

organization.

STRUCTUR

EThe structure defines former relationship and the use of people in the organization. In

todays complex and ever changing environment, successful organization may take

temporary structural change to cope with specific strategic tasks without abandoning basic

structural division throughout the organization.

Organizational structure with results from the organizing process is the basic frame work

within which the decision making behavior of an executive takes place. It is an establishment

pattern of relationship among the components of the organization.

In the BAJAJ ALLIANZ each and every department is empowered with the officer, clerk

and sub staff. The authority is delegated to officer/manager to extract work from the staff.

The each department consists of members based on its requirements. Thus it is having an

effective work on the various activities efficiently and effectively.

The board of directors, chair, and managing director (CMD)

Top management is responsible for all the organizational activities and also they are

responsible for decision making and performance taken by each department.

Middle level management is concerned about their respective departmental activities.

The departmental managers communicate with their respective department activity to

25


27/76

the top level management regularly or weekly. Marketing department, HR

department, finance department constitute this level of management. Each of these

departments is headed by respective director and they are responsible for their

departmental activities.

The lower level management consists of assistant manager of each department. They

will communicate and report their performance and activity to the middle level

manager.

ORGANIZATIONSTRUCTURE:

CEO/M.D

TRAININ

G

HU

MAN

RESOURCE

INVESTMEN

T

MARKETIN

G

FINANCE &

CLIENT

SERVICIN

G

IT

REGIONAL

MANAGER

(EAST

)

REGIONAL

MANAGER

(WEST)

REGIONAL

MANAGER

(NORTH)

REGIONAL

MANAGER

(SOUTH)

AVP

CORPORATE

AGENTS

DISTRICT

MANAGER

TERITORY

MANAGER

AREA

SALES

MANAGER

26


28/76

ADVI

SOR

ADVIS

OR

AD

VISOR

ORGANISATIONAL UNIT OF BAJAJ ALLIANZ LIFE INSURANCE

ATBANGALORE CITY

BRANCH

CO-

ORDINATO

R

COMMERCIALEXECUTIV

E

ASSISTAN

T SALESMANAGER

TERRITORYMANAGER

SECURIT

Y

NON- STAFF

HR DEPARTMENT CHART

HR Manager

HR Executive

BRANCH

Admin. Staff

27


29/76

Trainers

Department Profile

3.3.1 HUMAN RESOURCE

DEPARTMENTHuman Resource Department

The success of an organization depends upon the quality of its work force. HR department is

responsible for the recruitment and selection of employees based on ability, skills and

qualification. The HR department is also responsible of certain activities concerned with the

employees.

Objectives of Human Resource Department:

To maintain a healthy relationship and act as a mediator between the employer and

employees.

To recruit and select prospective candidate, arrange for an interview and fill vacancies

in the concerned department.

To take care of the activities done by the other departments.

Personnel department is responsible for all the good and bad works done by the

workers.

HR department has to maintain the good relationship with all the other departments.

Recruitment:

It handles the recruitment and the appointment of the required staff for various

department of an organization.

Appointment:

The person so appointed or selected will be placed in the vacant post defining the

respective jobs to be done.

Induction:

Later the induction programme of the employees will be arranged for to introduce all

the department of company by the labor officer as well as the concerned department

28


30/76

head. Therefore, the employees can come in terms with the objectives of the

company and his participation in fulfillment of the company objectives considering

himself as an essential ingredient of the company.

Training:

This is also one of the important functions of the department, keeping in view to

update his/her knowledge and to increase his/her efficiency, so after sometime such

programme are arranged by this department and employees of the company are kept

in touch with the least ways of the morale booster and fondness towards the company

is injected in the blood of employees.

On the Job Training:

Employees are couched and instructed by training instructions, they learn the job by

personal observation and practice. It is learning by doing.

HR Policies & ProceduresThe policies and procedures laid down here promote the philosophy of

the company with regard to standards of excellence, Terms of employment.

Employee development and employee services. The objective of this section is to

inform you of the polices related to Travel, compensation, Medi claim, and Transfers

etc. We recommend that you make yourself aware of the entitlements

Compensation Components

The compensation that is given in your appointment letter comprises of base

Salary, FCP (Flexible Compensation Plan), and Employers contribution to provident

Fund Fund and Employers contribution to Gratuity. Base salary is as per company

policy is not flexible amount since a lot of statutory and non-statutory benefits are

linked to the base salary.

Statutory Benefits

The Provident Fund and Gratuity are governed by Acts of Law and aremandatory.

29


31/76

Provident Fund

The Provident Fund is a one of the mandatory schemes established by the

government of India to provide social security to the service class. It is a scheme,

which is bearing on the employer and the staff member and provides security to thestaff member and / or his dependants on retirement, disability or death.

Gratuity

The Gratuity Fund is regulated by the gratuity fund Act, 1972. At present, the

following benefit is available. All Permanent staff members of the company,who have

completed five years continuous service, are eligible for payment of gratuity at the

time of retirement.

FINANCE DEPARTMENT CHART

Financial

head

Fund

Manager

PortfolioManager

Staff

Financing and Accounting Department

Accounting Department: In this section accounts are maintained. Accounts are maintained

in traditional methods only. This is ledger.

The main functions are recording all the accounts including employees and workers

salary and their PF etc.

It records all the payments of the company.

It records all the transactions of the company.

Accounting process:

Recording the transactions:

Classifying the transactions

30


32/76

Summarizing the transactions

Analyzing and interpreting the results.

3.3.2 Finance Department

Planning & MIS monitoring of organization performance - sales, quality, Trends- on a

continuous basis. With insights into MIS, socio economic factors & competitor

behavioral patterns, we contribute to sales targets, strategic initiatives projected branches,

and projected work force the road ahead.

Internal Audit Risk Management, Business Continuity Plan, Best Practices, policy manuals

are not mere words on paper adhere to them. We ensure Practice what you preach.

Corporate2 2planning2 2and2 2MIS2 2provide2 2feedback2 2on2 2business2 2strategies.

The Accounts function includes preparation and maintenance of financial records, Funds

management, and expense processing and treasury operations. Compliance ensures that

every action is within the regulatory framework. This includes reviewing compliance

requirements and supporting the ethical framework of RIL. Internal audit provides

assurance to the management over the organizations control framework and includes

process risk management, information security assessment and business continuity

assessment.

3.3.3 MARKETING

DEPARTMENTMarketing at Bajaj Allianz Life Insurance covers an array of activities- advertising,

branding, channel support, direct and alliance marketing and corporate communication.

The people in each of these sub-functions perform a unique job.

The advertising and branding section has schedules of advertising campaigns and

a detailed on what BALIC corporate identity stands for, why its important to be

consistent and guidelines that must be adhered to. This section also details thebranding across training, advisor and advertising collaterals with references.

Market development has lucid presentations about our products and how they

compare to those of competition. You will also find an update on the recent happenings in

the life and pensions sector. Channel marketing aims to streamline the design and

development of collaterals across distribution channels. You will find examples of

posters, flyers, banners, danglers sales toolset developed for tied agent, Bank assurance and

corporate agents, as well as for product lunches and campaigns.

31


33/76

Corporate communications handles media relations and is responsible for some of

the news regarding BALIC that you see in the press. You can check out the most recent clips

in the BALIC in the new section.

Customer Service & Operation

The operation department the work process between the customer and the company to

ensure consistent and quality service to the customer. To streamline the Operations, the

operation department interfaces between the claims and the agents, the branches and

underwriters, and manages work processes.

3.3.4 Information Technology Department

The IT function at BALIC is committed to enable business through the use of

technology. It is segmented into 4 groups to enable highest levels of delivery to the

customers: Life Asia Solutions Group - Web that provides real time information to

customers and is responsible for customer relationship management, IT Architecture &

corporate Solutions Group is in charge of developing and maintaining a blueprint for the

I

T

architecture for the enterprises as a whole. This team works as an in house R&D

Solutions Group, exploring new technological initiatives and also caters to information needs

of corporate functions in the organization.

2.

SKILLSIt is a more reputed insurance company, as it is providing financial solution of where to

invest, how to invest and number of products with having more benefits to investors. It has

reputed customers who are loyal to the organization. The service given to the customers are

accomplished as per their requirements. Financial services generally do mass supporting

services are rendered to all types (classes) of customers. More over the people feel their task

is in safe hands of the industry. The organization is having various capabilities over the

competitors. These skills are unique from the competitors of BAJAJ ALLIANZ.

The skills are broadly categorized as follows:-

Market knowledge, analytical skills, Services, Research, Personal/administration, Soft skills,

Supporting, Medical, Finance, Information relations, others.

Most of the employees at BAJAJ ALLIANZ are recruited from management and technical

streams.

32


34/76

3.STYLE

BAJAJ ALLIANZ follows participative management, where in each major decision

regarding the company is taken in tip down fashion and other decision like targets and growth

aspects BAJAJ ALLIANZ follows bottom up style.We think it is important to distinguish between the basic personality of a top management

team and the way the team comes across to the organization. Organization may listen to what

managers say but they believe what managers do. Not words, but pattern of action is decisive.

The power of style then is essentially manageable.

One aspect of style is symbolic behavior. Typically have more people on board who

understand exploration are have headed exploration department. Typically they fund

exploration more consistently.

4.STRATEG

YBy strategy we mean those actions that a company plans in response to or anticipation of

changes in its customers, its competitors. Strategy is the way A Company aims to improve its

position vis--vis competition perhaps through low cost production or delivery, perhaps by

providing better value to the customer, perhaps by achieving sales and service dominance. it

is, or ought to be, an organization way of saying: here is how we will create unique value.The BAJAJ ALLIANZ has set of objectives, strategies to achieve the objective, the course of

action to be taken to achieve the objective and guidelines for the course of action.

BAJAJ ALLIANZ adopts low pricing strategy to generate huge returns and good market

share in the industry, since it has well expanded its business all over INDIA.

BAJAJ ALLIANZ charges minimal to its clients for the services. It provides more benefits to

customers compared to its competitor. Hence it is known for the good pricing strategy in the

industry.

5.SYSTEM

The BAJAJ ALLIANZ has various techniques to control this procedure as system like to

improve the back office targets by giving addition support.

Information system: the implementation of computers has made information flow fast and

reliable. The information is versatile. Since BAJAJ ALLIANZ has good backup system.

Recruitment, training and development system

33


35/76

Recruitment process starts with the identification of the vacancies by the department head of

the respective department. A form requesting for the human resource is sent from the

department to HRD.

6. STAFF

Staff (in the sense of people, not line/staff) is often treated in one of two ways. At the hard

end of the spectrum, we talk of appraisal systems, pay scales, formal training program and the

like. At the soft end, we talk about morale, attitudes, motivation and behavior.

The BAJAJ ALLIANZ is in the course of cutting down the cost of service. If it starts

recruiting, the selection is done based on the education qualification first class degree.

The various training program to the employees are taken like refresher course, job rotationand job training. The promotion in the organization is taken place based upon the service,

seniority and educational qualification. The performance appraisal is also taken as a basis for

promotion so officers staff makes it. Staffing is a process of acquiring human resources for

the organization and assuring that they have the potential to achievement of the

organizational goal. Staffing necessity for allotting the duties and responsibility among the

employees.

Duties and responsibilities of Manger:

Determine the objectives or goals of the organization.

Framing policies and making plans to achieve the objectives.

Setting up organizational frame work.

Assembling the resources of money, man, materials, machines and methods.

Exercising effective control.

Providing overall leadership.

Duties and responsibilities of staff towards the organization.

To maintain the discipline in the organization.

To obey the order of the supervisor.

To work effectively and efficiently in the organization.

To maintain good relations with all the workers in the organization.

34


36/76

7. SHARED

VALUESUnlike the other six Ss, super ordinate goals dont seem to be present in all, or even most,

organizations. They are, however, evident in most of the superior performers.

The value shared by the members of an enterprise is known as the shared values. Theorganization of BAJAJ ALLIANZ is having a strategy of sharing values. The significant

meaning or guiding concepts that an organization induces in its members. The shared value

of BAJAJ ALLIANZ

is:

Transparency and trust.

Human touch.

Empowered teams.

Responsive to customer needs.

4. SWOT

ANALYSIS:

35

Strength Threats

Environmental Scan

Internal Analysis External Analysis

Weaknesses Opportunities


37/76

A SWOT analysis is a strategic planning tool used to evaluate the strengths,

weakness, opportunities and threats involved in a project or in a business or

in any other situation requiring a decision.it involves monitoring the

marketing environment internal and external to the company. The technique is

credited to Albert Humphrey, who led a research project at Stanford

University in the 1960s and 1970s using data from the fortune 500

companies.

Strengths: attribute of the organization that are helpful to achieving theobjectives.

Weakness: attributes of the organization those are harmful to achieving

the objectives.

Opportunities: external conditions those are helpful to achieving the

objectives.

Threats: external conditions those are harmful in achieving the

objectives.

The aim of any SWOT analysis is to isolate the key environmental factors

that are important to the plans of the organization. SWOT groups key pieces

of information into two main categories:

Internal factors: The strengths and weakness internal to the

organization, i.e. its strategies and its relation to its competition.

External factors: the opportunities and threats presented by the externalenvironment and completion.

STRENGHT

S1.2Strong Brand Image

.2Dedicated sales team

3.2Value added services.

36


38/76

4.2Bajaj Allianz Life Insurance is the first large pvt.sector life insurance co. with a pan

India network and strong retail focus to declare substantial profits for the financial

year.

5.2Bajaj Allianz Life is most profitable pvt.life insurer for 06-07.

6.2Largest distribution network to reach the customers across the country with 2, 13,000

agents, 900 offices in 840 towns, 200 corporate agents & Banc assurance partners.

7. The Company announced a healthy profit of Rs 427 crore in FY 10 as compared to Rs

41 crore in the previous year. The insurance company sold 22 lakh new policies in FY

10 in the life segment and is eyeing a 30 per cent growth in traditional policies from

the 18-20 per cent of the previous fiscal.

8.2Life insurance industry is a rapid growing and a nobler service industry.

WEAKNESSE

S1.2They have to compete with the Government Companies like LIC and UTI who has

been very established in this field. So they will have to attain the same trust of the

public as it is in case of LIC and UTI.

.2Weak Customer Relations Management

3.2Low number of offices and network and number of life insurance agents.

4.2Lack of knowledge and expertise.

OPPORTUNITIES

1.2Life insurance has captured its mere15 20% growth therefore a wide open untapped

market is open to the company to develop, grow and measure its success.

.2Still the numbers of companies are few and company has every capability to grow and

forward its performance areas to the widest.

3.2Distinguishable product (like Parivar Account).

37


39/76

THREAT

S1.2People are hesitant to invest and put their hard earned money to the private life insurance

company with the fear of getting lost.

.2Belief towards LIC as it is a government corporation phobia is continue to surmount the

people of India despite lots of flaws and development and liberalization of life insurance.

3.2Alternative financial services such as mutual fund, banking services, share and securities

also pose problems and threats to the working of the life insurance sector.

4.2Illiteracy and unemployment also pose threat.

5.2Rising real estate industry also pose threat as people are investing a bulk of their money

over to that industry.

6.2Presence of very strong competitors.

5. Analysis of financial

statementFinancial statement analysis is a comprehensive analysis of all three financial statements:

balance sheet, income statement, and cash flow statement. Financial statements provide

useful information. However, one has to meticulously look for the right information from the

right data. One can undertake the financial statement analysis from different stakeholders

perspective: creditors, bankers, credit rating agencies, existing shareholders, potential

shareholders, internal management, and employees too.

Financial statement helps in understanding the performance of the organization. The

performance of an organization can be explained on the basis of the four important aspects of

the business:

38


40/76

a)2Liquidity: Liquidity shows the ability of the business to service the short term obligation.

b)2Solvency: Solvency shows the ability of the business to meet the long term obligation.

c)2Efficiency: Efficiency shows the ability of the business to use the resources of the

business.

d)2Profitability: Profitability shows the ability to the business to generate and distribute

profit.

Financial HighlightsParticulars 2009-10

Rs.

million

2008-09

Rs.

million

2007-08

Rs.

millionGross WrittenPremium

27249 28662 25780

Net WrittenPremium

19717 20066 17526

Net EarnedPremium

18842 18913 14154

Net IncurredClaims

-13866 -13599 -9457

Net Commissions -318 -238 188

ManagementExpenses

-5485 -5988 -5195

UnderwritingResults -502 -727 -210

Income fromInvestments

2207 2061 1896

Others 93 164 -7

Profit Before Tax

1798 1498 1679

39


41/76

Provision for Tax -590 -546 -623

Profit After Tax 1208 952 1056

Claim's Ratio 73.6% 72.0% 67%

CommissionRatio

2% 1% -1%

ManagementExpenses Ratio

29% 32% 36%

Combined Ratio 104% 105% 102%

Return on Equity 16% 15% 23%

Shareholder'sEquity

7928 6725 5748

Assets Under

Management

25315 21938 18632

Number ofEmployees

3506 3973 3603

Balance Sheet as at 31f March, 2010st

00Particulars 31

st March, 2010 31st March, 2009

Sources of

fundShareholders

fundShare Capital

1102273 1102273

Reserve and surplus6,830,724

5,622,446

40


42/76

Fair value change

Account

(5094) -

Borrowing

s

- -

Total 7927903 6724719

Application of

FundsInvestments 5314595 1937504

Loans - -

Fixed Assets

Gross block 496177 1556866

Less:- accumulated

depreciatio

n

1227583 1038900

Net block 1268594 517966

Capital work in

progress including

capital advances

64964 767460

1533558 1285426

Deferred tax assets 378480 152080

Current assets

Cash and bank

balance

964880 8490009

Advances and other

assets

713231 5446286

Subtotal(A)

1009719 8295295

41


43/76

Current

liabilities

18064657 14495261

Provisions 113331265 10450325

Subtotal

(B)

93959 4945586

Net current

assets(C)= (A - B)

(19298730

)

(16650291

)

Miscellaneous

Expenditure(to the

extent not written off

or adjusted)

- -

Debit Balances in

profit and loss

account

- -

Total 7927903 6724719

42


44/76

6. LEARNING EXPERIENCE

In the class just we can assume how the corporate world is but it is completely

different when I started to go to the company. In the class just we will read,

learn and same thing we will write in the exam and we will get pass but

whenwe go for searching job really we will feel the heat of outside world,

regardingpressure for target achievement, competition for jobs etc

During my stay in the organization I was exposed to the actual working of the

organization. I learnt how the different departments of an organization functions

and coordination for overall smooth

function. That was a wonderful experience to me in that company. I learnt so many things

there, what is the real corporate culture, How much we have to be smart, How

much talented we should, How we should achieve our target, what is our

responsibity. I could also analyze how McKinseys model contributes to

effective working of the organization. During this short period, by

interactingwith my guide and other key persons, it enables me to know about the functions

of various departments. Their workflow, discuss and responsibilities ofrespective heads.

I learn how the company motivates the employee to retain and make them work

effectively with full satisfaction towards achieving their individual goalswhichindirectly can achieve the organizational

goals.Some of the findings during my 10 weeks stay in the organization are as

follows: Company has excellent

infrastructure. Corporate culture amongst the employees is excellent irrespective of their cadre

and their

designation. Excellent environment to work with committed

employees. Welfare facilities as well as infrastructural facilities given to the

employeeshelps in boosting up their

morale. The company has a lot of prospects to come up as a profit making organization.

43


45/76

Finally, excellent experience, which let me to compare theoretical learning

tomy practical

experience.PART B

CHAPTER

-1A.GENERAL

INFORMATION

1.1 STATEMENT OF THE

PROBLEMTo study the various marketing techniques, which are adapted to attract the customers

towards the Bajaj Allianz Life Insurance Corporation? In addition to know the various

competitive advantages enjoyed by the company.to know the market is potential of Bajaj

Allianz Life Insurance Corporation in Bangalore city as compared to other insurance players.

The comprehensive statement of the problem can be stated as A Study on Brand

Awareness of Life Insurance and Changing Investment Pattern with Special Reference

to Bajaj Allianz Life Insurance Corporation

1.2 OBJECTIVES OF THE

STUDYResearch objective is the basis theme on which the survey is conducted and on which the

whole report depends.

Primary objective

To study about the Brand Awareness of Life Insurance and changing investment

pattern"

Secondary objectives

To study the investment pattern of people in Life Insurance.

To observe the extent of the market.

To recognize the target groups.

To find out which type of insurance is preferred by the investors.

To study the factors responsible for the low investment in Life Insurance.

To study the different facilities of Life Insurance given by different companies.

To study the risk factor involved in Insurance.

To study which company is providing better services of Insurance with higher returns.

To study the behavior values and beliefs of customers.

44


46/76

1.3 Scope of thestudyThe study is conducted at Bajaj Allianz Lie Insurance Corporation at Bangalore. The

study covers the various marketing techniques to know about the brand awareness and

changing investment patterns towards the life insurance industry. The data collected and

interpreted will be useful for the company Scope of study refers to the area selected for the

survey purpose. It includes businessman, employees, household and retired persons who are

interested in investment their money. Various findings, observations and valuable

suggestions, recommendations help the company to materialize its future plans.

1.4 Research Methodology

Research methodology is used to search answers of the research questions. An attempt has

been made to describe the nature of the people of Bangalore city by the study of the samples.

Methodology in common parlance refers to a search for knowledge. The advanced learner's

dictionary of current English lays down the meaning of research as "a careful investigation or

enquiry especially through search for new facts in any branch of knowledge"

Methodology is a way to systematically solve the research problem. It may be understood

as a science of studying how research is done scientifically. Learning more about the

consumer and about marketing is the heart of the research methodology. The research

methodology has many dimensions research methods to constitute a part of the research

methodology.

A. Sampling plan

After collecting entire data and deciding on the research approach and instruments, now I had

to decide on the sampling plan which was one of the important task, because from the bunch

of people I had to select only those people ,whom I can target from now onward. There are

three way of sorting the data.

B. Sampling unit

45


47/76

Who is to be surveyed? And now my task was to define the target population, which will be

sampled from the number of people. Population refers to the total items about which the

information is desired. Here in this project I have considered finite population that is we are

taking one single individual as single unit which is fixed to 50 respondents, each separately

by the single individual.

C. Sample size

Large sample give more reliable result than small sample, so for this reason I had taken

around 50 people with whom the survey was conducted to get an understanding of the

respondents satisfaction level towards the different insurance brands.

D. Analyze the collected information

Once the date is collected the next task is to analyze it. The raw data should be

classified into some purposeful usable categories. For example: tabulation, coding, etc.

Analysis work, after tabulation, is generally based on the computation of various percentages,

coefficients, etc. by applying various well defined statistical formulae like frequency

distribution, calculation of average and dispersions. Here in this report it is found that the

investment pattern of people in private insurance companies is not satisfactory.

E. Report research findings:

Final report is prepared according to the work done. This phase will mark the elimination of

the marketing research effort. The report with the research finding is a formal written

document. Research findings and personal experience will be used to propose

recommendation to the Bajaj Allianz Life Insurance Corporation, which will help the

company to develop an effective strategy to compete against other competitors.

F. Data collection method

There are several ways of collecting the data which different considerably in context of

money, cost, time and other resources. In this project the data which was required gave

details about the behavior of people who make investments in insurance, mutual funds, IPO,

46


48/76

share market, etc.

1. PRIMARY

DATA

The primary data are the first hand information gathered for research to solve the need by

surveying the sampling units and collections of feedback from them involves the primary

data with structured queries will be prepared for the customers. There will be survey within

the customers giving the questionnaire. The questionnaire were structured non disguised

questionnaire because the question which the questionnaire contained, were arranged in a

specific order besides every question asked were logical for the study, no question can be

termed as irrelevant.

Sources of primary data

Personal interview.

Questionnaires.

Personal Interview

This method was the most appropriate way of survey, because by personal interview I came

to know about how the respondents feel about the life insurance companies. The personal

interview is conducting mainly for collecting information for fulfill of the questionnaire.

Questionnaire

This method proved to be even better because it was not possible to interview every one and

it was less time consuming to fill up the questionnaire rather than answering the interviewers

questions. The questionnaire is to prepare to know the awareness level. The questionnaire is

fully focused for collecting the brand awareness information and finding the market potential

of Bajaj Allianz Life Insurance Corporation.

In this method questionnaire were distributed to the respondents and they were asked to

answer the questions in the questionnaire. The questionnaire were structured non disguised

questionnaire because the question which the questionnaire contained, were arranged in a

specific order besides every question asked were logical for the study, no question can be

termed as irrelevant.

47


49/76

2. SECONDARY

DATAThe secondary data is collected from the company website and other websites, through listing

by personal observation. The secondary data are collected by some other people for their

work and it is already exist. The researcher started investigation by first examining the

secondary data to see whether the problem can be partly or fully solved by without collecting

primary data. Since the secondary data were not sufficient to solve the entire problem, so

primary data were collected to fill the gap.

SOURCES OF SECONDARY

DATA: Through internet, various official sites of the companies and other search engines.

Through pamphlets and brochures of the companies.

Journals & Magazine

G. Data collection instruments

Questionnaire was designed as a main instrument to conduct survey. A questionnaire

constraint of 15 set of questions presented to respondents for their answers. The questionnaire

was non-disguised because the questionnaire was constructed so that the objective is clear to

the respondent. The respondents were aware of the objective. They knew why they wereasked to fill the questionnaire. The questionnaire is used for the purpose of knowing the

brand awareness among Life Insurance Company and changing investment pattern of people

of Bangalore city.

Market survey

The result of surveys is used to describe and analyses the demand of the Bajaj Allianz life

insurance products. The survey is conducted in the Bangalore city only.

Field work

Field work is done in this project individually with no biasness. The field work comprises of

filling of questionnaire by different sector individuals. The framed questionnaire was

presented for approval to college internal guide and company external guide. The study

involved a fieldwork where the consumer contacted individually and were persuaded to

discharge the information through the questionnaire. The respondents were directly contacted

at their house or work place without prior appointment as per the convenience of the

researcher.

48


50/76


51/76

CHAPTER-

2DATA ANALYSIS &

INTERPRETATIONTABLE-1

Table showing the awareness about Life Insurance among respondents

Awareness No. of respondents Percentage

YE

S

49 98%

NO 1 2%Total 50 100%

Analysis: The above table showing out of 50 respondents, 49 respondents are aware about

life insurance only 1 is not aware about it.

2%

98%

YES

NO

50


52/76

Interpretation: - The above pie chart states that 98% of the total sample knows about life

insurance. Only 1% of the total sample does not know about Life Insurance.

From the above interpretations it is very clear that almost every body knows about Life

Insurance.

Table showing specific brand awareness about Bajaj Allianz Securities Ltd. among

respondents

Brand awareness No. of respondents PercentageYE

S

43 86%

NO 7 14%

Total 50 100%

Analysis: The above tables showing out of 50 respondents, 43 respondents know about Bajaj

Allianz securities ltd., Only 7 responde

122519977-bajaj-allianz.doc

Documents