bharti axi life insurance

INDUSTRY PROFILE

WHAT IS INSURANCE

The business of insurance is related to the protection of the ECONOMIC VALUES OF

ASSETS. Every asset has a value. The asset would have been created through the efforts of the

owner. The asset would have been created through the efforts of the owner. The asset is valuable

to the owner, because he expects to get some benefits form it. It is a benefit because it meets

some of his needs. The benefit may be an income or in some other form. In the case of a factory

or a cow, the product generated by it is sold and income is generated. In the case of a motor car,

it provides comfort and convenience in transportation. There is no direct income. Both are assets

and provide benefits.

Every asset is expected to last for a certain period of time during which it will provide the

benefits. After that, the benefit may not be available.

There is a life-time for a machine in factory or a cow or a motor car. None of them will last for

ever. The owner is aware of this and he can so manage his affairs that by the end of that period or

life-time, a substitute is made available. Thus he makes sure that the benefit is not lost. However,

the asset may get lost earlier. An accident or some other unfortunate event may destroy it or

make it incapable of giving the benefits. An epidemic may kill the cow suddenly. In that case,

the owner and those enjoying the benefits therefore, would be deprived of the benefits. The

planned substitute would not have been ready. There is an adverse or unpleasant situation.

Insurance is a mechanism that helps to reduce the effects of such adverse situations. It promises

to pay to the owner or beneficiary of the asset, a certain sum if the loss occurs.

Bharti – Axa Life Insurance

HISTORY OF INSURANCE

Insurance has been known to exist in some form or other since 3000 BC. The Chinese

traders, traveling treacherous river rapids would distribute their goods among several

vessels, so that the loss form any one vessel being lost, would be partial and shared, and

not total. The Babylonian traders would agree to pay additional sums to lenders, as the

price for writing off the loans, in case of the shipment being stolen. The inhabitants of

Rhodes adopted the principle of general average of ‘general average’, whereby, if goods

are shipped together, the owners would bear the losses in proportion, if loss occurs, due

to jettisoning during distress. {Captains of ships caught in storms, would throw away

some of the cargo to reduce the weight and restore balance. Such throwing away is called

jettisoning} The Greeks had started benevolent societies in the late 7 th century AD, to

take care of the funeral and families of members ho died. The great fire of London in

1666,in which more than 13000 house were lost, gave a boost to insurance and the first

fire insurance company, called the fire office, was started in 1680.

The origins of insurance business as in vogue at present, is traced to the Lloyd’s Coffee

House in London. Traders, who used to gather in the Lloyd’s coffee house in London,

agreed to share the losses to their goods while being carried by ships. The losses used to

occur because of pirates who robbed on the high seas of because of bad weather spoiling

the goods or sinking the ship. In India, insurance began in 1818 with life insurance being

transacted by an English company, the Oriental Life Insurance Co. in 1870 in Mumbai.

This was followed by the Bharat Insurance co. in 1896 in Delhi, the Empire of India in

1897 in Mumbai, The United India in Chennai, the National, the National Indian and

Hindustan Cooperative in Kolkata.

Later, were established the cooperative Assurance in Lahore, the Bombay Life (originally

called the swadeshi life), the India Mercantile, the new India and the Jupiter in Mumbai

and the Lakshmi in New Delhi. These were all Indian companies started as a result of the


swadeshi movement in the early 1900s. By the year 1956, when life insurance business

was nationalized and the life Insurance Corporation of India (LIC) was formed on1st

September 1956, there were 170 companies and 75 provident fund societies transacting

life business in India. After the amendments to the relevant laws in 1999, the L.I.C. did

not have the exclusive privilege of doing life insurance business in India. By 31.8.2007,

sixteen new life insurers had been registered and were transacting life insurance business

in India.

The History of Insurance in India

Some of the important milestones in the life insurance business in India are:

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.


Life Insurance a Basic Need

Life insurance is a contract providing for payment of a sum of money to the person assured or,

failing him, to the person entitled to receive the same, on the happening of certain event.

A family is generally dependent for its food, clothing and shelter on the income brought in at

regular intervals by the bread winner of the family. So long as the he lives and the income is

received steadily, that family is secure; but should death suddenly intervene the family may be

left in a very difficult situation and sometimes, in stark poverty.

Uncertainty of death is inherent in human life. It is this uncertainty that is risk, which gives rise

to the necessity for some form of protection against the financial loss arising from death;

insurance substitutes this uncertainty by certainty.

Few Advantages of Life Insurance.

1. It is superior to an ordinary savings plans:

This is so because unlike other saving plans, it affords full protection against risk of death. In

case of death, the full sum assured is made available under a life assurance policy; whereas under

other savings schemes the total accumulated savings alone will be available. The latter will be

considerably less than the sum assured, if death occurs during early years.

2. Insurance encourages and forces thrift:

A savings deposit can be too easily withdrawn. Many may not be able to resist the temptation of

using the balance for some less worthy purpose. On the other hand, the payment of life insurance

premiums becomes a habit and comes to be viewed wit the same seriousness as the payment of

interest on a mortgage. Thus insurance, in effect brings about compulsory saving.


3. Easy settlement and protection against creditors:

The life assured can name a person or persons to whom the policy moneys would be payable in

the event of his death. The proceeds of a life insurance policy can be protected against.The

claims of the creditors of the life assured by effecting a valid assignment of the policy. A married

women’s property act policy constitutes a trust in favor of the wife and children and no separate

assignment is necessary. The beneficiaries are fully protected from creditors except to the extent

of any interest in the policy retained by the assured.

.

4. Administering the legacy for beneficiaries:

It often happens that a provision which a husband or father has made through insurance is

quickly lost through speculative or unwise investment or by unnecessary expenditure on

luxuries. These contingencies can be provided against in the case of insurance. The policyholder

can arrange that in the in the event of his death the beneficiary should receive, instead of a single

sum (a). payment of the net claim amount by equal installments over a specified period of years,

or (b).payment of the claim amount by smaller monthly installments over the selected period

followed by a lump sum at the end thereof.

5. Ready marketability and suitability for quick borrowings:

After an initial period, if the policy holder finds himself unable to continue payment of premiums

he can surrender the policy for a cash sum. Alternatively he can tide over a temporary difficulty

by taking loan on the sole security of the policy without delay. Further a life insurance policy is

sometimes acceptable as security for a commercial loan.


6. Tax relief:

For computing income tax (especially in India the Indian income tax act) follows deduction from

income tax payable, a certain percentage of a portion of the taxable income of individuals which

is diverted to payment of insurance premiums. When this tax relief is taken into account it will

be found that the assured is n effect paying a lower premium for his insurance.

How Insurance Works

The mechanism of insurance is very simple. People who are exposed to the same risks come

together and agree that, if any one of the members suffers a loss, the others will share the loss

and make good to the person who lost. All people who send goods by ship are exposed to the

same risk related to water damage, ship sinking, piracy, etc. those owning factories are not

exposed to these risks, but they are exposed to different kinds of risks like, fire, hailstorms,

earthquakes, lightening, burglary, etc. like this, different kinds of risks can be identified and

separate groups, made including those exposed to such risks. By this method, the risk is spread

among the community and the likely big impact on one is reduced to smaller manageable

impacts on all.

If a Jumbo Jet with more than 350 passenger’s crashes, the loss would run into several crores of

rupees. No airline would be able to bear such a loss. It is unlikely that many Jumbo Jets will

crash at the same time. If 100 airline companies flying Jumbo Jets, come together into an

insurance pool, whenever one of the jumbo jets in the pool crashes, the loss to be borne by each

airline would come down to a few lakhs of rupees. Thus, insurance is a business ‘sharing’.


Role of Insurance in Economic Development

For economic development, investments are necessary. Investments are made out of

savings. A life insurance company is a major instrument for the mobilization of savings

of people, particularly from the middle and lower income groups. These savings are

channeled into investments for economic growth.

An insurance company’s strength lies in the fact that huge amounts come by way of

premiums. Every premium represents a risk that is covered by that premium. In effect,

therefore, these vast amounts represent pooling of risks. The funds are collected and held

in trust for the benefit of the policyholders.

The management of insurance companies is required to keep this aspect in mind and

make all its decisions in ways that benefit the community. This applies also to its

investments. This is why successful insurance companies would not be found investing in

speculative ventures. Their investments benefit the society at large.

The system of insurance provides numerous direct and indirect benefits to the individual

and his family as well as to industry and commerce and to the community and the nation

as a whole. Those who insure, both individuals and corporate, are directly benefited

because they are protected from the consequences of the loss that may be caused by the

accident or fortuitous event. Insurance, thus, in a sense protects the capital in industry and

releases the capital for further expansion and development of business and industry.

The every existence of risk that is, uncertainty concerning the future, is a severe

handicaps in economic activities. Insurance removes the fear, worry and anxiety

associated with this future uncertainty and thus encourages free investment of capital in

business enterprises and promotes efficient use of existing resources.


Thus insurance encourages commercial and industrial development and there by

contributes to a vigorous economy and increased national productivity.

Present day organization of industry, commerce and trade depend entirely on insurance

for their operation, banks and financial institutions lend money to industrial and

commercial undertakings only on the basis of the collateral security of insurance. No

bank or financial institution would advance loans on property unless it is insured against

loss or damage by insurable perils.

Insurers are closely associated with several agencies and institutions engaged in fire loss

prevention, cargo loss prevention, cargo loss prevention, industrial safety and road safety.

Before acceptance of a risk, insurers arrange survey and inspection of the property to be

insured, by qualified engineers and other experts.

The object of these surveys is not only to assess the risk for rating purposes but also to

suggest and recommend to the insured, various improvements in the risk, which will

attract lower rates of premium and what is more important , reduce the loss potential. For

example, burglary surveyors make recommendation in regard to security measures such

as better locking system, appointment of Watchman, etc. Engineering surveys play a

most useful part in accident prevention as valuable technical advice is provided in respect

of plant and machinery.

Insurance ranks with export trade, shipping and banking services as earner of foreign

exchange to the country. It helps to earn foreign exchange and represent invisible exports.


List of Insurance Companies Listed in Different Years

List of Life Insurance Companies

S.No. Registration

Number Date of Reg. Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited .

8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited

9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

10 117 06.08.2001 Metlife India Insurance Company Ltd.

11 133 04.09.2007 Future Generali India Life Insurance Company Limited


12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

13 102 23.10.2000 Royal Sundaram Alliance Insurance Company Limited

14 103 23.10.2000 Reliance General Insurance Company Limited.

15 106 04.12.2000 IFFCO Tokio General Insurance Co. Ltd

16 108 22.01.2001 TATA AIG General Insurance Company Ltd.

17 113 02.05.2001 Bajaj Allianz General Insurance Company Limited

18 115 03.08.2001 ICICI Lombard General Insurance Company Limited.

19 131 03.08.2007 Apollo DKV Insurance Company Limited

20 132 04.09.2007 Future Generali India Insurance Company Limited

21 134 16.11.2007 Universal Sompo General Insurance Company Ltd.

22 121 03.01.2002 Reliance Life Insurance company Ltd.

23 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.


24 127 06.02.2004 Sahara India Insurance Company Ltd.

25 128 17.11.2005 Shriram Life Insurance Company Ltd.

26 130 14.07.2006 Bharti AXA Life Insurance Company Ltd.

27 133 04.09.2007 Future general Indai life Insurance Co.Ltd

28 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

29 136 08.05.2008 Canara HSBC Oriental Bank of Commerce Life

Insurance Company Ltd.

30 138 27.06.2008 Aegon Religare Life Insurance Company Ltd.

31 140 27.06.2008 DLF Pramerica Life Insurance Company Ltd.

List of General Insurance Companies

1 123 15.07.2002 Cholamandalam General Insurance Company Ltd.

2. 124 27.08.2002 Export Credit Guarantee Corporation Ltd.

3. 125 27.08.2002 HDFC-Chubb General Insurance Co. Ltd.

1 139 27.06.2008 Bharti Axa General Insurance Company Ltd.

2 141 15.12.2008 Raheja QBE General Insurance Co. Ltd


Chapter 2

COMPANY PROFILE

History of Bharti AXA Life Insurance

Bharti AXA Life Insurance is a joint venture between Bharti, one of India’s 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 launched national operations in December 2006. Today, company have over 8000

employees across over 12 states in the country and a national footprint of distributors trained to

provide quality financial advice and insurance solutions to the large Indian customer base. Open

first branch office in Hyderabad. Introduces 2 unit linked products- “future confident’ and

‘wealth confident’

As we further expand our presence across the country with a large network of distributors, we

continue to provide innovative product and service offerings to cater to specific insurance and

wealth management needs of customers. Whatever your plans in life, you can be confident that

Bharti AXA Life will offer the right financial solutions to help you achieve them.

Bharti-AXA perform over following cities

Hyderabad

Mumbai

Delhi

Bangalore

Kolkata

Chennai

Ahmedabad

Ludhiana


Lucknow

Surat

Kochi

Indoor

Chandigarh

Vadodra

Bhubneshwar

Jaipur

Mohali

Vision

To be a leader and the preferred company for financial protection and wealth management in

India

values

professionalism

InnovationTeam Spirit

Pragmatism Integrity


Strategy

To achieve a top 5 market position in India through a multi-distribution, multi-product

platform

To adapt AXA's best practice blueprints as a sound platform for profitable growth

To leverage Bharti's local knowledge, infrastructure and customer base

To deliver high levels of shareholder return

To build long term value with our business partners by enhancing the proposition to their

customers

To be the employer of choice to attract and retain the best talent in India

To be recognised as being close and qualified by our customers

Bharti Group

Bharti Airtel Ltd

Bharti Airtel Ltd is one of Asia's leading telecommunications service provider. The Company is

India’s largest integrated telecom company in terms of customer base and offers Mobile

Services, Fixed Line services, Broadband & IPTV, DTH, Long Distance and Enterprise services.

Airtel also offers mobile services in Sri Lanka on a state-of-the art 3.5 G network.

Bharti TeleTech Ltd

Bharti Teletech is India’s leading telecom & allied products company. It is one of the largest

manufacturers of landline telephones in the world. With a strong distribution network across the

country, the company is also the primary distributor of IT and Telecom products from

interntional brands such as Motorola, Blackberry, Thomson, Polycom, Transcend, and Logitech.

http://www.bharti-teletech.net/

http://www.airtel.in/

http://www.airtel.in/

http://www.bharti-teletech.net/


Telecom Seychelles Ltd

A subsidiary of Bharti, Telecom Seychelles Ltd provides comprehensive telecom services

including 3G mobile services in Seychelles, under the ‘Airtel’ brand.

Comviva Technologies Ltd

Comviva is the leading provider of integrated VAS solutions for mobile operators in emerging

markets. Among the top 3 global providers of integrated VAS solutions in rapidly growing

markets, Comviva has deployed solutions for over 100 mobile operator customers in over 80

countries worldwide.

FieldFresh Foods Pvt. Ltd.

FieldFresh Foods Pvt. Ltd., is a venture between Bharti Enterprises and Del Monte Pacific

Limited, to offer fresh and processed fruits and vegetables in the domestic as well as

international markets, including Europe and the Middle East.

Bharti Retail Pvt Ltd

Bharti Retail is a wholly owned subsidiary of Bharti Enterprises. Bharti Retail operates a chain

of multiple format stores that offer consumers affordable prices, great quality and wider choice.

http://bharti.com/ourcompanies.html#bhartiretail

http://www.fieldfreshfoods.in/

http://www.bhartitelesoft.com/

http://www.airtel.sc/

http://www.airtel.sc/

http://www.bhartitelesoft.com/

http://www.fieldfreshfoods.in/

http://bharti.com/ourcompanies.html#bhartiretail


The company’s neighbourhood format stores operate under the "Easyday" brand and the compact

hypermarket format under the “Easyday market” brand.

Bharti AXA General Insurance Company

Bharti AXA General Insurance is a joint venture between Bharti Enterprises and AXA, world

leader in financial protection and wealth management. The company was incorporated in July

2007 and offers a full suite of general insurance solutions to meet the needs of businesses and

individuals alike.

Bharti AXA Life Insurance Company

Bharti AXA Life Insurance Company Ltd is a joint venture between Bharti Enterprises and

AXA, world leader in financial protection and wealth management. The company offers a range

of life insurance and wealth management products with an endeavour to help customers lead a

confident life.

Bharti AXA Investment Managers Pvt. Ltd.

Bharti AXA Investment Managers Pvt. Ltd., an asset management company in India, is a joint

venture between Bharti Enterprises, AXA Investment Managers (AXA IM) and AXA Asia

Pacific Holdings (AXA APH).

http://www.bhartiaxa-im.com/

http://www.bharti.com/

http://www.bharti-axagi.co.in/

http://www.bharti-axagi.co.in/


http://www.bhartiaxa-im.com/


Centum Learning Limited

Centum Learning Limited provides end-to-end learning and skill-building solutions to several

large corporates. It provides solutions that impact business performance through enhanced

employee productivity, customer profitability and effective talent transformation.

Jersey Airtel Ltd

Jersey Airtel, a subsidiary of Bharti, offers world-class mobile services in Jersey (Channel

Islands) over its full 2G, 3G and HSDPA enhanced network. The Company brings market-

leading products and services to its customers under Airtel-Vodafone brand.

Bharti Foundation

Bharti Foundation was set up in 2000, with the vision, “To help underprivileged children and

young people of our country realize their potential”. It aims to create and support programs that

bring about sustainable changes through education and the use of technology and information.

Bharti Realty

http://www.bhartirealty.com/

http://www.bhartifoundation.org/


http://www.bhartiresources.com/

http://www.bhartiresources.com/


http://www.bhartifoundation.org/

http://www.bhartirealty.com/


Bharti Realty Limited is a young, vibrant and dynamic realty company with expanding interests

in commercial, retail and residential real estate. Bharti Realty aims to be amongst the most

admired real estate players in India and aspires to attain highest degree of customer trust through

superior product design and maintaining an uncompromising stand towards environmental

responsibility, ethics and safety

Bharti Infratel

Bharti Infratel, a wholly owned subsidiary of Bharti Airtel, provides passive infrastructure

services on a non-discriminatory basis to all telecom operators in India. Bharti Infratel also holds

approximately 42% stake in Indus Towers, a joint venture between Bharti, Vodafone and Idea to

offer passive infrastructure services.

Bharti Enterprises

Bharti Airtel Ltd:

Bharti Airtel Ltd is India’s leading provider of telecommunications service. The company has 4

distinct Business divisions- mobile and telephone services, broadband services, long distance

services and enterprise services,

Bharti Teletech Ltd

Bharti Teletech Ltd manufactures and exports world-class telecom equipment under the brand

‘Beetel’.

Telecom Seychelles Ltd

Telecom Seychelles ltd provides telecom services in Seychelles, under the brand ‘Airtel’.

Bharti AXA Life Insurance

https://www.bharti-infratel.com/

https://www.bharti-infratel.com/


Bharti AXA Life Insurance is a joint venture between Bharti, one of India’s 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.

Bharti Telesoft Ltd

Bharti Telesoft Ltd delivers best-in-class,

Revenue-critical Vas products and service to telecom carriers,

Tele Tech Service Ltd

Tele Tech Service (India) Ltd is Joint venture with Tele Tech Inc., U.S.A. It offers a range of

Customer Management Services.

Field Fresh Foods Pvt Ltd

Field Fresh Foods Pvt Ltd is Bharti’s Venture with EL Rothschild Group owned ELRO holding

India Ltd., to export fresh Agricltural products exclusively to markets in Europe and USA.

AXA

AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse

geographically, with major operations in Western Europe, North America and the Asia/Pacific

area. AXA had Euro 1,315 billion in assets under management as of December 31, 2006. For full

year 2006, IFRS revenues amounted to Euro 79 billion, IFRS underlying earnings amounted to

Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million.

The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock

Exchange. The AXA American Depository Share is also listed on the NYSE under the ticker

symbol AXA.


AXA Asia Pacific Holdings

AXA Asia Pacific Holdings Ltd (AXA APH) is listed on the Australian stock exchange and is

52.3% owned by AXA SA. AXA APH is responsible for AXA SA’s life insurance and wealth

management businesses in the Asia-Pacific region. It has operations in Australia, New Zealand,

Hong Kong, Singapore, Indonesia, Philippines, Thailand, China, India and Malaysia. AXA APH

had A$106.4 billion in total funds under management and administration at 30 June 2007 and

reported a profit after tax before non-recurring items of A$374.0 million for the six months

ended 30 June 2007.

Products of Bharti-AXA Life Insurance

Bright stars

This is a regular premium unit-linked insurance policy, which, which offers you the twin

benefits of protecting your loved ones and creating wealth for them over the desired period.

As a caring parent, you want only the best for your child. As your child grows, his aspirations

will grow too and so will your responsibilities. Whether it’s higher studies abroad, a grand

wedding or a comfortable home … you can now ensure that your child is always one step

ahead

You can fulfill all the dreams you have for your child, and give him what he deserves. A

bright future!

The plan also offers the flexibility to make modifications, depending on the changing needs of

your child. As his dreams grow, the plan will grow too… so financial hurdles will never come

in the way of his growing dreams! With Bharti AXA Life Bright Stars,


Spot suraksha

Introduction

Spot Suraksha is a unit liked insurance product, which offers you an instant insurance protection

and benefit of wealth creation in the long-term.

Main Advantages of Spot Suraksha

Understand the product:(Read and understand the product brochure)

Answering the simple health related questions, Sign up the simple application form, submit

photograph, proofs for identity, address and age.

A cover note is issued to policy holder and insurance cover starts instantly.

100% allocation of premium- Full allocation of premium to the Investment Fund, according to

policy holder choice from 2nd year onwards.

Parameter Eligibility

Minimum age at entry 18 years

Maximum age at entry 70 years minus policy benefit period chosen.

E.G: for policy benefit period of 17 years, the

maximum age at entry is 53 years.

Maximum age at maturity 70 years

Minimum premium Rs.15,000 p.a. for annual & semi-annual modes

Rs18,000 p.a for monthly mode

Premium modes Annual, semi-annual and monthly

Policy benefit periods available 7 years,10 years,15 years, 17 years and 20 years

Minimum top-up premium Rs. 2,500


A guaranteed special addition equal to 130% of annualized premium in the first policy year is

added in the policy fund at maturity or death, which is earli

PARAMETER ELIGIBILITY


Maximum age at entry 55 years

Maximum age at maturity 70 years

Minimum premium Rs. 12,000 p.a

Premium Modes Annual, Semi-annual and monthly

Policy term 15 years

Minimum top up premium Rs. 5,000

Dream life pension

Let you live your retired life king-size

This plan is made for old persons and to make them self independent and live a life of dignity

and self-respect. Today you are busy climbing the ladder of success and realizing your dreams.

Today, time is with you. Just take a moment and think.

The bharti AXA Life Dream life pension gives you:

A post retirement income for life.

Policy holder choose the age at which he/she would like to retire (vesting age), which

determines your premium paying term. Alternatively you can opt for single premium

payment.





Minimum age at vesting

Maximum age at vesting

45 years

80 years

Premium modes Single pay, yearly, Half-

yearly ,Quarterly and monthly

Minimum premium Annual Regular Premium:

Rs.12, 000p.a.

Minimum policy term 10 years

Minimum top-up premium Rs.2, 500 and no maximum limit on top-

up premium and top up allowed only

after first policy year.

MERIT PLUS

This is a regular premium unit-linked insurance policy which offers you the twin benefits of

protection against financial loss in the unfortunate event of the death and helping you to create

wealth systematically over the long-term. Hence this product is suitable for your long-term

objective like retirement planning, children’s future and giving a total protection to you and your

family.


Minimum age at entry 0 year

Maximum age at entry 60 years (For death benefit option A)

55 years (For death benefit option b)

Maturity age 80 years (for death benefit option A)


75 years (for death benefit option B)

Policy benefit period 80 year less age at entry (for death

benefit option A)

75 years less age at entry (For death

benefit option B)

Premium payable period Yearly, Half-Yearly And Monthly

Minimum premium Rs.10,000

Minimum Top-up premium 500

Benefits of Bharti AXA Life merit plus

In merit plus the policy holder must have to choice one option out of the two.

1.Sum assured(less all partial withdrawals made form the basic policy fund during the 12 months

prior to the date of death of life assured) or the policy Fund Value as on the date of intimation of

death, which is higher, will be paid.

2.The sum of sum assured and the policy fund value as on the date of intimation of death will be

paid.

Future confident

Future confident is a suitable product for you, if your objective is long-term targeted wealth

creation over 15-20 year, either for your own retirement or for your children’s future, while at

the same time providing your family enhance financial protection.


Minimum age at entry 0 year



Maturity age 70 years

Policy benefit period 70 year less age at entry

Premium payable period Yearly, Half-Yearly, quarterly and

Monthly

Minimum premium Rs.10,000 for yearly, 5,000 for half-yearly

2,500 for quarterly and Rs.834 for

monthly premium

Minimum Top-up premium 500

Secure Confidence

Provide complete financial protection to your family, even when you are not there.

Secure confident is suitable to you if your objective is to protect your family against any

financial loss caused due to unfortunate death, disability due to an accident or critical illnesses

which may deprive them of a secured future.

Parameter Eligibility



Minimum sum assured Rs.5 ,00,000

Minimum premium RS.1,500 for yearly,Rs.780 for half-yearly,

Rs.405 for quarterly and Rs.135 for

monthly premium

Policy benefit period 5,10,15,20 and 25 years

Maximum age at maturity. 60 years

Premium paying term Equal to the policy benefit period.

On death On survival

A sum assured is paid to the policy holder The policy shall be terminated and no


or nominee and the policy shall be

terminated.

monies shall be payable to the policy

holder.

Strategic differentiators

Strong partner Bharti - provides access to customer base of more than 20 million

Multi channel execution capability

Current Asia product range which is a strong match to products sold to the mass and mass

affluent

Global scale providing cost effective and speedy re-use of systems, products and business

capability

Strong AXA and Bharti brands which can be leveraged to attract and retain a high quality

management team.

SWOT ANALYSIS OF BHARTI AXA

Strengths

Use of brand affinity of Airtel to promote insurance sales.

Bharti brought its strong local market knowledge, reputation and India.

Associated with AXA world leader in financial protection and wealth management, ranked

No 13 in the Fortune 500 list of global companies and has enabled the company to have

access to AXA’s global life insurance and asset management expertise.

Strong partner Bharti - provides access to customer base of more than 20 million

Weakness

Late entrant in the insurance sector

Thin distribution network all over the nation

Very less number of product offering in comparison to its competitors

Lack of confidence among the customers as parent company does not have a financial

background.

Opportunities

Strong growth of unit linked market at the mass affluent end.


Potentially with 20% insurance cross sale only to new telecom customers, this network can

yield 48 lac policies per year with sum assured of nearly Rs 58000 crores.

Threats

Many more companies are lining up to enter into Indian Insurance Industry.

Consumer’s preference is still more towards public sector insurance companies.


Introduction of the process of recruitment and selection of agent

Vision

To be a leader and the preferred company for financial protection and wealth

management in India

Strategy

To achieve a top 5 market position in India through a multi-distribution, multi-product

platform. To adapt AXA's best practice blueprints as a sound platform for profitable growth.

To leverage Bharti's local knowledge, infrastructure and customer base. To deliver high levels

of shareholder return. To build long term value with our business partners by enhancing the


proposition to their customers. To be the employer of choice to attract and retain the best

talent in India. To be recognized as being close and qualified by our customers

CHAPTER 3

RESEARCH OBJECTIVE

To understand the behavior dynamics and need state.

To develop value-based offerings and services to re design their own product.

To determine the strategies for customer retention and expansion.

RESEARCH METHODOLOGY

Research methodology is the way to systematically solve the problem. In it we study the

various steps that are generally adopted by a researcher in studying his research problem

along with the logic behind them. Thus, When we talk about research methodology we not

only talk of the research methods but also consider the logic behind the methods we used in

the context of our research study and explain why we are using a particular method or

technique and why we are not using others so that

research results are capable of being evaluated either by the researcher himself or by others.

Methodology:

An exploratory research was carried out to understand the behavior dynamics and need states

and also understands the messages and experience the consumer is exposed to both from

within the product/service category as well as across categories. Both qualitative and

quantitative techniques are applicable although exploration relies more heavily qualitative

techniques. Correlation is used to find out the relation between various variables.

RESEARCH DESIGN

Sample size:


As the research is based on study to exhibit relation between life cycle stage of an

individual and the type of insurance policy required at different stages, a stratified

sampling technique was adopted and a sample size of 80 individuals were taken.

The survey has been conducted within the geographic area of Meerut. The time period

for which survey has been undertaken is June- July 2009.

Sampling techniques:

A stratified sampling technique was adopted because of the nature of the study and for

higher statistical efficiency requirement to come to an analysis. The sample was carefully

drafted. A lot of care was taken and 20 samples from each age group were taken. There are

total 80 Questionnaire.

The age groups discussed in the study are 21-30, 31-40, 41-50 and 51-60. The sample was

designed in the above stated manner to make the analysis easier. Open ended and close

ended questions are used in the questionnaire.

DATA COLLECTION

Primary data:

A questionnaire was drafted which included sample rating scales like simple category

scale, multiple- choice single-response scale, multiple- choice multiple- response scale ,

multiple- rating list scale, and constant sum scale, and open ended questions.

The questionnaire contains 12 questions which helps us to analyze the dependence of

type of insurance policy required on the life cycle stage of the individual.

It will also clearly show the customers perception towards insurance compared with the

other investment options and financial instruments, and as to how we can make it better.

Secondary data:


The secondary data was collected through the web sites of different organizations, news

papers. The secondary data is collected through the Websites related to insurance sectors,

Journals & Books on Research Methodology.

CHAPTER 4

SCOPE OF STUDY

Geographic area: This research has been conducted in Meerut region.

Duration: It took two months to complete.

Characteristics of respondent: People between the age of 21 to 61, both male and female.

LIMITATIONS

Project was undertaken in the Meerut region only .So it might not be a true Representation

of the views of the insured of other places.

The project is based on survey of population related to Bharti Axa only.

The time factor; I have limited time to conduct our survey and to meet the people

according to the sample size.

All the responses taken are personal opinions & perception of the respondents that are

subjective.

The area covered was too large in a time of 8 weeks.


CHAPTER 5

DATA ANALYSIS & INTERPRETATION

Table-1

Why would you take a life insurance policy

Cover futu

re ca

sh needs

Tax benefit

Investment i

nstrument

Angle of mercy

As a hedge against

old02468

1012141618

21-30

31-40

41-50

51-60

21-30 31-40 41-50 51-60

Cover future cash

needs 12 17 6 2

Tax benefit 8 12 14 7

Investment

instrument 3 10 6 3

Angle of mercy 10 15 15 7

As a hedge against

old 2 5 14 17


Table-2

Need at different stages while taking a policy

21-30 31-40 41-50 51-600

2

4

6

8

10

12

14

16

18

asset building needs

old age need

children need

family need

21-30 31-40 41-50 51-60

asset building

needs

4 10 13 7

old age need 2 5 12 17

children need 8 15 7 3

family need 7 16 15 15


Table-3

Attitude towards investment instruments at different life stages

Insurance policy Mutual funds Shares0

2

4

6

8

10

12

20-30

30-40

40-50

50-60

21-30 31-40 41-50 51-60

Insurance

policy

2 7 9 7

Mutual

funds

7 6 7 10

Shares 11 7 4 3


Table-4

Numbers of policies hold by different life stages

0 Policies

0-3 Policies

3-5 Policies

5 and above

0 2 4 6 8 10 12 14

51-60

41-50

31-40

21-30

21-30 31-40 41-50 51-60

0 Policies 12 6 2 0

0-3 Policies 5 5 8 2

3-5 Policies 1 3 7 9

5 and

above

2 3 5 10


Table-5

Flexil

ityib

Diversi

fication

Secu

rity

Return

on inve

stment

Requirement o

f funds

Transp

arency

Liquidity

Control o

ver fi

nancia

l futu

re0

10

20

30

40

50

60

1 2

3 4

5

1 2 3 4 5

Flexibility 32 48 20 0 0


Diversification 53 34 13 0 0

Security 0 0 26 43 31

Return on

investment

16 22 28 19 15

Requirement of

funds

21 27 33 13 6

Transparency 7 18 21 35 14

Liquidity 42 32 13 7 4

Control over

financial future

0 8 23 37 32

TABLE- 6

Suitable medium to gain knowledge of different financial instrument

RELATIONSHIP BETWEEN THE VARIABLES

In table- 5, Correlation is applied to find out the level of correlation between different

variables. The various variables are as follows:

a) Flexibility

b) Diversification

21-30 31-40 41-50 51-60

Personal reference 17 10 7 15

Financial advisor 0 10 10 5

Telephonic 0 0 0 0

Advertising (T.V.,

Newspaper 3 0 3 0


c) Security

d) Return on investment

e) Requirements of funds

f) Transparency

g) Liquidity

h) Control over financial future

Correlations are shown in the Graph below:-

-1

-0.6

-0.2

0.2

0.6

1

Correlation

Correlation

Highly Correlated variables are:

Flexibility & Diversification

Flexibility & Return on investment

Security & Transparency

Return on investment & Requirement of funds

Less Correlated variables are:

Flexibility & security

Diversification & Security

Transparency & liquidity


Liquidity & Control over financial future

Control over financial future & Diversification

On the basis of correlation between various variables, interpretation can be done that:

1) The highly correlated variables are dependent on each other. They have a direct effect on

each other. If one variable will increase another variable will also automatically increase.

2) The less correlated variables have an inverse effect on each other. If one variable will

increase then another will automatically decrease.

CHAPTER 6

FINDINGS AND ANALYSIS

On age group 21-30

After analyzing the findings derived from the questionnaire we come across to some

interesting facts.

60% of the respondents from the age group 21-30 do not hold any life insurance policy at

all and also none of them hold more than 5 policies. (Table-4)


This age group is more attracted towards share market with 55% and mutual funds with

35%. (Table-3)

The various needs at this age group are very low. (Table-2)

This may be due to various reasons.

The primary reason being maximum percentage of this age group are not married and do

not have children so do not have any kind of a responsibility towards family.

Secondly most of them are still parasites and dependent on their parents for living. A small

extent is working but do not have sufficient fund to take a life insurance policy.

They have high risk takers and want to earn quick money so are more interested in the

share market.

They have a notion that they will live long and no unavoidable circumstances can hamper

their life.

On age group 31-40

Again moving towards the age group 31-40 we can observe that 40% of the respondents

hold 3-5 policies and 25% have 0-3 policies and 10% have more than 5 policies. (Table-4)

From table-3 we can analyze that the number of people favoring insurance over other

investment instruments have increased.

Table-2 exhibits that the various needs have also increased to a great extent. The major

needs in this age group have been children need and family need. Asset building need has

also shown a tremendous increase.

There has been a growth of about 100% in each need in this age group.

The reasons for these shifts may be:

The mass populations in this age group are married and even have a child or two. They

now being the bread earners for their family have a sense of responsibility towards them.

People at this stage generally start earning a good living and can afford to invest in policies

Since they are earning well so they can invest in policies to save tax to some extent.


On age group 41-50

Now in age group 41-50, 45% have over 5 policies and 35% have 3-5 policies. (Table-4)

Table-3 clearly shows that there has been a shift of interest from other financial instrument

to insurance. About 45% believe investing in insurance.

There has been a 140% increase in the old age policy need as compared to age group 31-

40.

( table-2)

About 50% fall in the children need policies can be observed.(Table-2)

This may be for the following reason:

The offspring’s are already grown up and investment for their benefit has already been

made in the previous stage.

They start thinking about their old age and after retirement financial solution.

On age group 51-60

In the age group 51-60, 50% of them hold more than 5 policies. (Table-4)

The primary needs being old age and family need and critical illness.

Children need has fallen by 80%.(table-2)

The asset building need has fallen by 50% from the previous age group

This age group least wants to invest into shares

The various reasons may be:

He wants to secure his financial future when he retires from his job or takes leave from his

business so that he is self dependent.

Their children are already grown up and self dependent with their own family.

They want to secure themselves towards any kind of critical illness.

The risk taking ability decreases and want safe and secure returns

SUMMARY


The age group 41-50 takes most of the insurance policies

Requirement of Old age need policies increase in number with the increasing age.

The age groups 31-40 and 41-50 are most interested in asset building needs and family

needs.

The age group 31-40 is most interested in children need and family need and maximum in

covering future cash needs.

The age groups 31-40 and 41-50 also take insurance to take the benefit of tax relaxation.

Comparing the amount of investment different age groups would like to make in different

financial instruments i.e. mutual funds insurance policy and shares, given 100000/-. The

mean value of all the respondents in different age group were taken

21-30 31-40 41-50 51-60

Insurance 10000 35000 45000 35000

Mutual funds 35000 30000 35000 50000

Shares 55000 35000 20000 15000

47% of the respondents like to take decision on various financial instruments by consulting

a financial advisor.

37% of the respondents feel personal reference most reliable source to take an investment

decision

A very large proportion of the respondents perceive insurance to be less flexible compared

to mutual funds and shares.

They also feel it gives the least scope to diversify.

They are also not satisfied with the liquidity aspect of insurance.

Insurance scores high on attributes like security and control over financial future and

scores average on attributes like requirement of fund, rate of return and transparency.


CHAPTER 7

SUGGESTIONS

To retain customer, company should design such insurance policies that contain the

composition of the features having high correlation. Due to this, customer will attract more

towards insurance rather than other investment.

A few of the innovations should be based on specific needs at certain life stages.

Consumers are often migrated to these newer policies. The Critical Illness Plan should be

introduced as a response to a stated need of consumers. The differentiator here is clearly

different in the number of illnesses it includes

Unlike other categories, customer retention in the insurance business has not yet been

under serious consideration. Insurance as an industry till date has adopted a strategy of

“one time customer”, and is the same with Bharti Axa, but the concept should be revised

and “life time customer” Strategy should be adopted for long term sustainability and

growth of the company.


The company has to begin a huge database monitoring exercise with annual statements /

mailers to the customers and updating their databases. This can also be used for cross

selling of different policies at different life stage of the customer

CHAPTER 8

APPENDIX

BIBLIOGRAPHY

Times of India

Skees, J., Hazell, P., Miranda, M.. 1999. New Approaches to Crop Yield Insurance in

Developing Countries.

Business Research Methods, Cooper & Schindler

S. Balchandran, IRDA, IC-33 LIFE INSURANCE

Financial Express


Business Today

WEBSITE REFERENCE

http://www.irdaindia.org/

http://www.licindia.com/

http://www.bharti-axalife.com/

http://www.lifeinscouncil.org/

www.iinvestor.com

www.google.com

www.insure.com

www.financialexpress.com

ANNEXURE

Name: __________________________________Occupation:_________________

Address: _______________________________

http://www.financialexpress.com/

http://www.google.com/

http://www.iinvestor.com/

http://www.lifeinscouncil.org/

http://www.bharti-axalife.com/

http://www.licindia.com/



Age: 21-30 31-40 41-50 51-60

Gender: Male Female

Income: 1.5-3 3-5 5-10 10 above

1) Do you hold a life insurance policy?

Yes

No

2) If no, why have you not taken any life insurance policy?

Not aware

I don’t require it

Have other investment options

Lack of fund

Planning in near future

3) Now being aware of life insurance why would you take a life insurance policy?

(Can give multiple choices)

To cover Future cash needs

Tax benefit

As an investment instrument

As an angel of mercy

As a hedge against old age

4) If yes how many life insurance policies do you hold at present?

___________

5) If yes what was your main concern for taking a life insurance policy?

Investment

Tax benefit

Purely insurance

6) What were your needs when you had taken life insurance policies? (Can tick multiple choices)


Family need

Children need

Old age need

Asset building need

Assuming that life insurance policy is purely an investment option please answer the

following questions

7) If you hold a policy please rate the benefits in insurance policy compared to investing in

shares market and mutual funds on scale of 1-5 (where 1 being the least and 5 being the

most?)

Flexibility 1 2 3 4 5

Diversification 1 2 3 4 5

Security 1 2 3 4 5

Return on investment 1 2 3 4 5

Requirement of funds 1 2 3 4 5

Transparency 1 2 3 4 5

Liquidity 1 2 3 4 5

Control over financial future 1 2 3 4 5

8) Given a certain amt of money where would you invest, assuming that insurance is purely

an investment option?

Life insurance

Mutual funds

Share market

9) Suppose you have 100000/- of rupees in spare, how much would you invest in the

investment options state below?

Life insurance __________

Mutual funds __________

Share market __________


10) What would be the reason for above decision? (30 Words Max)

11) Which medium do you find more suitable to gain knowledge about different financial

instruments?

Personal reference

Financial advisors

Telephonic

Advertisement (T.V, newspaper)

12) Please give a few suggestions as to how we can make life insurance a better investment

option compared to mutual funds and share market

BIBLIOGRAPHY

S. Balachandran, (2009), IC-33 Life Insurance, Shri S.J Gidwani Publishers, Mumbai

www.irdaindia.org

www.bhart-axalife.com

www.wikipedia.org

www.ibef.org

http://www.ibef.org/

http://www.wikipedia.org/

http://www.bhart-axalife.com/



The opportunity

About 2/3 of the Indian population is ‘insurable” High % of population is uninsured or

underinsurance.

We Indian are “natural savers” Indians save the maximum in the world.

Those ‘insured’ are ‘underinsured’.

bharti axi life insurance

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