A REPORT

ON
AN ORGANIZATIONAL STUDY AT
Bajaj allianz,
jhansi
Submitted in partial fulfillment of the requirements of
B.B.A Degree Course of Jiwaji University
By
Sudhir khare

Under the Guidance and

Supervision of
 DECLARATION

I hereby declare that the this report entitled ‘An Organizational Study at Bajaj
allianz ,jhansi has been prepared by me in partial fulfillment of the
requirements of the B.B.A Degree Course of Jiwaji University.

Place: Gwalior (Sudhir khare)

Date:
 CERTIFICATE

This is to certify that this report entitled ‘An Organizational Study at BAJAJ
ALLIANZ,Jhansi’ has been prepared by Sudhir khare under my guidance and
supervision.

Place: Gwalior
Date:
 CERTIFICATE

This to certify that this report entitled ‘An Organizational Study at BAJAJ
ALLIANZ, Jhansi’ has been prepared by Sudhir khare under the guidance and
supervision of

Place: Gwalior
Date:
ACKNOWLEDGEMENT
 EXECUTIVE SUMMARY

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz SE, one of the
world's largest insurance companies, and Bajaj Finserv. Allianz SE is a leading insurance
corporation globally and one of the largest asset managers in the world, that manage assets
worth over a Trillion. With over 115 years of financial experience, Allianz SE is present in
over 70 countries around the world. Bajaj Allianz is into both life insurance and general
insurance. Today, Bajaj Allianz is one of India's leading and fastest growing insurance
companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance
Consultants.

In June 2008, Bajaj Allianz entered into partnership with Thomas Cook India to provide
travel finance. Bajaj Allianz Life Insurance ensures excellent insurance and investment
solutions by offering customized products, supported by the best technology.

COMPANY PROFILE

Bajaj 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, one of the
biggest 2 and 3 wheeler manufacturers in the world.

Bajaj Auto and Allianz have agreed on a new joint venture to distribute consumer financial
products throughout India. Bajaj Auto & Allianz have signed their third joint venture
partnership, 'Bajaj Allianz Financial Distributors Ltd.', encouraged by the tremendous
performance of the Bajaj Allianz Life Insurance & Bajaj Allianz General Insurance and by
the strong trust of consumers in the Bajaj Allianz’ brand. This joint venture is spurred by the
potential from the customers across the country, specifically from non-urban markets, to also
provide other consumer financial products like mutual funds, credit cards, home loans and
personal loans at their doorstep, as we have provided simple, flexible and value-for-money
insurance products and services throughout India.
ALLIANZ AG:
 World’s Largest Insurance co. by revenue – Rs 5,20,353 Cr (Euro 96.9 billion)
 Worldwide 2nd by Gross Written Premiums – Rs 4,77,930 Cr (Euro 89billion)
 3rd largest Assets Under Management (AUM) & largest amongst Insurance Co. -
AUM of Rs 95,94,200 Cr (Euro 1078 billion)
 11th largest corporation in the world
 50 % of global business from Life Insurance, close to 60 million lives insured
globally
 Established in 1890, 110 yrs of Insurance expertise
 More than 70 countries, 173,750 employees worldwide
 Insurance to almost half of the Fortune 500 cos.

BAJAJ ALLIANZ LIFE INSURANCE:

Allianz SE with over 118 years of experience in over 70 countries and Bajaj Auto, trusted for
over 55 years in the Indian market, together are committed to offering you financial solutions
that provide all the security you need for your family. Bajaj Allianz brings to you several
innovative products, the details of which you can browse in this section.
 No.1 Private Life Insurer FY 2007-08. Leading by Rs. 78 Cr.
 No.1 Private Life Insurer in Retail Business. Leading by Rs. 339 Cr.
 Whopping growth of 216% for the FY 2005-06
 Have sold over 13,00,000 policies to satisfied customers
 Assets under management Rs 11.459 million.
 Shareholder capital base of Rs 12.10 million.
 Product tailored to suit your needs
 Decentralized organization structure for faster response
 Wide reach to serve you better – a nationwide network of 1200 + branches
 Specialized departments for Banc assurance, Corporate Agency and Group
Business
 Well networked Customer Care Centers (CCCs) with state of art IT systems
  Highest standard of customer service & simplified claims process in the
industry
 Website to provide all assistance and information on products and services,
online buying and online renewals.
 5 Zonal Offices located at Kolkata, Lucknow, New Delhi, Ahmedabad,
Bangalore.28 Regional/ state Offices
 Over 10,000 Sales Managers
 Over 3,00,000 Insurance Consultants
 More than 170 Bancassurance partners across country
 Strong alternate channel with over 2000 Franchisees, over 200 corporate
agents, more than 70 brokers and over 100 Direct Marketing Branches to be
launched this year

▪BAJAJ ALLIANZ LIFE

A Household Indian Name teams up with a global conglomerate

▪ALLIANZ GROUP
A global giant with operations in over 70 countries

▪BAJAJ GROUP
Bajaj Group is a Rs. 4000 crore auto giant

▪BAJAJ ALLIANZ GENERAL

The fastest growing general insurance company in India

VISION: -
•To be the first choice insurer for customers.
•To be the preferred employer for staff in the insurance industry.
•To be the number one insurer for creating shareholder value.
MISSION:-
As a responsible, customer focused market leader, we will strive to understand the insurance
needs of the consumers and translate it into affordable products that deliver value for money.

VALUES:-
▪ Customer delight the guiding principle.
▪ Ensuring world-class solutions & services
▪ Offering customized products.
▪ Transparent benefits.

COMPANY’S OBJECTIVES: -

 To be one of the top private life insurers in terms of new business premium&
profitability.

 To provide products with maximum values to customers in accordance &

consistent with Govt rules/ policies.

 To earn a reasonable rate of interest on investments.

 To achieve high growth.

 To create strong position in field of insurance sector & development of new

products.

 To achieve minimum premium target of every year (with less than 30% single
premium).

 Ensure to retain staffs that are key resource.

 To further enhance the distribution network for provide the service to customers
throughout the country through the expansion of network.
The Bajaj Allianz Way
 Invest in people – Pay / develop / career planning
 Dominate your market – be decisive / communicate clear goals
 Never sit still – change continually / revolutionize
 Think service; service; service – continuous improvement
 Learn and lead – be prepared to listen
 Tell the facts as they are – clear communication
 Kill bureaucracy – boundary less / ideas not management layers / informality /
speed
 Manage the business like a corner shop – customer satisfaction / employee
satisfaction / cash flow

BALIC: Salient Features

 Decentralized operations to ensure faster and smoother customer service
 Customers receive service from any BALIC office, irrespective of their own
location
 Renewal premium possible through:
 Online
 Any of the BALIC offices
 Bill-Junction and Bill Desk
 Credit cards or direct debit for Standard Chartered customers
 Efficient systems, process’ & speed of response has ensured lowest number of
complaints from customers to IRDA

ACHIEVEMENTS
Bajaj Allianz life insurance offers technical excellence in all areas of Health Insurance as
well as Risk Management. This partnership successfully combines Bajaj Auto’s in-depth
understanding of the local market and extensive distribution network with the global
experience and technical expertise of the Allianz group.
Bajaj Allianz has received IAAA rating, from ICRA limited, an associate of Moody’s
Investor Services Claims paying Ability. This rating indicates highest claims paying ability
and a fundamentally strong position.
Shared Vision of Bajaj Allianz Life

A household name in India teams up with a global conglomerate...

Bajaj 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 & customer focus. With over 15,000 employees, the company is a
Rs. 4000 crore auto giant, is the largest 2/3-wheeler manufacturer in India and the 4th largest
in the world.

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 Insurance Co. 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 networks.
• Adequate experience of running a large organization.
• A 10 million strong base of retail customers using Bajaj products.
• Advanced Information Technology in extensive use.
• Experience in the financial services industry through Bajaj Auto Finance Ltd.

INDIAN OPERATIONS

Growing at a breakneck pace with a strong pan Indian presence Bajaj Allianz has emerged as
a strong player in India...
Bajaj Allianz Life Insurance Company Limited is a joint venture between two leading
conglomerates Allianz AG and Bajaj Auto Limited.
Characterized by global presence with a local focus and driven by customer orientation to
establish high earnings potential and financial strength, 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- THE PRESENT

 Product tailored to suit your needs.

 Decentralized organization structure for faster response.

 Wide reach to serve you better – a nationwide network of 700 + branches

 Specialized departments for Bancassurance, Corporate Agency and Group Business.

 Well-networked Customer Care Centers (CCCs) with state of art IT systems.

 Highest standard of customer service & simplified claims process in the industry.

 Website to provide all assistance and information on products and services, online
buying and online renewals.

 Swift and easy claim settlement process.

Tie Ups with Banks

Pioneers of Bancassurance in India...

Having pioneered the phenomenon, Bancassurance is one our core business strategies.
Two of Bajaj Allianz strong Bancassurance tie-ups are:
• Standard Chartered Bank
• Syndicate Bank
Bajaj Allianz has developed a range of life insurance products exclusively for our
Bancassurance partners. Also, our products are customized to suit specific needs of banks.

Bajaj Group
Bajaj 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 & customer focus.

A STRONG INDIAN BRAND- HAMARA BAJAJ

≈ One of the largest 2 & 3 wheeler manufacturers in the world

• 21 million vehicles on the roads across the globe
• Managing funds of over Rs 4000 cr
• Bajaj Auto finance one of the largest auto finance cos. in India
• Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03
• 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 Insurance Co. 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.
• Adequate experience of running a large organization.
BAJAJ ALLIANZ GENERAL
Allianz Group

Allianz Group is one of the world's leading insurers and financial services
providers.

Founded 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 Group provides its more than 60 million customers worldwide with a
comprehensive range of services in the areas of: -

 Property and Casualty Insurance,

 Life and Health Insurance,

 Asset Management and Banking.

ALLIANZ AG - A GLOBAL FINANCIAL POWERHOUSE

 Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 cr. 

 3rd largest Assets Under Management (AUM) & largest amongst
Insurance cos. - AUM of Rs.51, 96,959 cr.
 12th largest corporation in the world
 49.8 % of global business from Life Insurance.
 Established in 1890, 110 yrs of Insurance expertise.
 70 countries, 173,750 employees worldwide.
Bajaj Allianz is the fastest growing general insurance company in India…
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto
Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and
strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development
Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General
Insurance business (including Health Insurance business) in India. The Company has an
authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and Allianz, AG,
holds the remaining 26%.

A Partnership Based on Synergy

Bajaj Allianz offers technical excellence in all areas of General and Health Insurance as well
as Risk Management. This partnership successfully combines Bajaj Auto's in-depth
understanding of the local market and extensive distribution network with the global
experience and technical expertise of the Allianz Group. As a registered Indian Insurance
Company and a capital base of Rs. 110 crores, the company is

• Fully licensed to underwrite all lines of general insurance business including health.
• With management control by Allianz AG.
ORGANIZATION STRUCTURE

DIRECTOR

VICE PRESIDENT

SR. BRANCH
MANAGER

BRANCH MANAGER

SR. SALES MANAGER

SALES MANAGER

ASSISTANT
MANAGER

MANAGEMENT
TRAINEE
INTRODUCTION OF THE INSURANCE SECTOR

Insurance is about risk and protection. It provides protection against financial consequences
of adverse events. Insurance plays a vital role in most people’s lives as means of dealing with
risks, which every one faces, and a means of savings. Insurance is not necessarily an
investment from which one expects to get one's money back nor is it gambling. A gambler
takes risks, while insurance offers protection against risks that already exist. Insurance is a
way to share risk with others.

Life Insurance is a contract providing for payment of a sum of money to the person assured
or failing him/her, to the person entitled to receive the same, on the happening of certain
event. Insurance has existed for thousands of years. A form of credit insurance was included
in the Code of Hammurabi, a collection of Babylonian laws said to predate the Law of
Moses. To finance their trading expeditions in ancient times, ship owners obtained loans from
investors. If a ship was lost, the owners were not responsible for paying back the loans. Since
many ships returned safely, the interest paid by numerous ship owners covered the risk to the
lenders. It was likewise in a maritime setting that later one of the world's most famous
insurance providers, Lloyd's of London, was born. By 1688, Edward Lloyd was running a
coffeehouse where London merchants and bankers met informally to do business. There
financiers who offered insurance contracts to seafarers wrote their names under the specific
amount of risk that they would accept in exchange for a certain payment, or premium. These
insurers came to be known as underwriters.

Finally, in 1769, Lloyd's became a formal group of underwriters that in time grew into the
foremost market for marine risks. The 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.

The history of life insurance in India dates back to 1818 when it was conceived as a means to
provide for English Widows. Interestingly in those days a higher premium was charged for
Indian lives than the non-Indian lives as Indian lives were considered more risky for
coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the
first company to charge same premium for both Indian and non-Indian lives. The Oriental
Assurance Company was established in 1880. The General insurance business in India, on the
other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first
general insurance company established in the year 1850 in Calcutta by the British. Till the
end of nineteenth century insurance business was almost entirely in the hands of overseas
companies.

Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and
30's sullied insurance business in India. By 1938 there were 176 insurance companies. The
first comprehensive legislation was introduced with the Insurance Act of 1938 that provided
strict State Control over insurance business. India is emerging as one of the two of the largest
markets in the world for life insurance products, the other being China. In the case of India,
the three key drivers of growth are a large insurable population, a high savings rate, roughly
at about 25 per cent and a low penetration, at a mere 2.3 per cent. In the 11 months of fiscal
year 2004-05, life insurance companies collected premium worth Rs 172 billion and the
market grew by a whopping 32.4 per cent during the year. Of this, the public sector Life
Insurance Corporation (LIC) had the lion's share of the market with premia totaling Rs 134
billion. Private sector players recorded a spectacular growth of 129 per cent over the last
year, compared to LIC's growth of 18 per cent. India's GDP growth rate of 6 per cent per
annum holds great potential for the sector. According to one estimate real life premia are
expected to grow at a compounded annual rate of 15 per cent over the next ten years.

INSURANCE REGULATORY DEVELOPMENT AUTHORITY (IRDA):

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

MILESTONES:

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
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,
 1956, with a capital contribution of Rs. 5 crores from the Government of India.

FDI IN INSURANCE SECTOR:

The government of India is planning to increase the equity limit for foreign direct investment
from the current 26 per cent to 49 per cent in the insurance sector. Liberalization of the FDI
policy, including the Budget proposals for raising the sectoral caps in insurance is one of the
main factors for the higher FDI inflows during the current year. In 2003-04 the total FDI
inflows in the country touched $3.4 billion. Indian insurance companies have been pushing
for the FDI limit to be raised. The current paid-up requirement of Rs 1 billion for general
insurance and Rs 2 billion for life insurance have become difficult targets to achieve for the
companies. The companies feel that injection of additional foreign equity would reduce their
costs. The sector was liberalized for private players towards the end of 1999.
Key Players in the Indian Market:
Sl. No. Reg. No. 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 Ltd.
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 Ltd.
8 114 02.08.2001 ING Vysya Life Insurance Company Private Ltd.
9 116 03.08.2001 Bajaj Allianz Life Insurance Company Ltd.
10 117 06.08.2001 Metlife India Insurance Company Pvt. Ltd
11 121 03.01.2002 Sanmar Life Insurance Company Ltd.
12 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.
13 127 06.02.2004 Sahara India Insurance Company Ltd.
14 128 17.11.2005 Shriram Life Insurance Company Ltd.
15 133 04.09.2007 Future Generali India Life Insurance Company Ltd.
16 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

Name of Company Percentage of Share in Market

LIC 76
ICICI Prudential 5.7
Bajaj Allianz 4.3
SBI Life 2.8
Birla Sun Life 2.2
Max – NYL 1.9
HDFC 1.8
Aviva 1.4
Tata AIG 1.3
ING Vysya 0.9
Reliance 0.8
Met Life 0.5
Om Kotak 0.4
As above table shows the position of insurance companies in India as follows briefly
discussed about the insurance players.

While the public sector LIC dominates the Indian life insurance market with nearly 76 per
cent of the market share. It has 248 branches, 115,000 employees and over 1 million agents.
It has also been improving internal processes and systems, upgrading skills of its agency
force and managers and developing innovative products. LIC sold 1.69 Crore policies during
the year compared to 18 lakhs policies.

Bajaj Allianz has been focusing on second tier towns and cities which are yet to witness the
entry of other life insurance players apart from LIC. It is using first mover advantage by
opening an office in the most prominent location in a non-metro town. It hires local people
who are trained. Its mantra is to develop only the indispensable infrastructure so that it can
match the pricing of LIC. Apart from that it claims that it is the only private player to provide
policy servicing at the branch level. Standard Chartered is currently its biggest partner
followed by Syndicate Bank and Centurion Bank. The biggest challenge that the company
faces is the weak infrastructure – particularly transport and communications – in the smaller
cities. It is also facing a challenge in terms of banking channels, particularly for customers
who bank with cooperative banks, where delays in clearing cheques are inevitable. Tied
agencies comprise the biggest channel (68%) of new business acquisitions for Bajaj Allianz.
Banc assurance (27%) is the other significant channel of growth for the company.

ICICI Prudential is the leader among the private players with a market share of 6.69 per
cent after its premium collection totaled Rs 11.54 billion. Bajaj Allianz with sales of Rs 4.9
billion had a market share of 2.86 per cent. Birla Sun Life with sales of Rs 4.8 billion had a
market share of 2.81 per cent and SBI Life with premium collection of Rs 3.9 billion, a
market share of 2.29 per cent. With its combination of aggressive marketing through an
agency force and the use of the banking channel, ICICI has emerged as a key player. Initially,
the company drove new business by opening branches in new locations. The focus has now
shifted to penetrating these locations for increasing market share. The company is also trying
to get higher penetration in the High Net Worth segment. The company has seven banc
assurance partners and this is the largest contributor to non-agency business. It also has 15
key non-bank partners and 800 financial sales consultants.

HDFC Standard Life has established its branches in 110 locations and is targeting non-
metro towns. It is hoping to leverage its “pedigree/parentage” to gain more customer
acceptance. As a result, it is focusing on quality – not just volume growth. It has developed
some innovative products like the Loan Cover Term Assurance Plan which provides a lump
sum in case of death of the assured life during the term plan. Aimed at the growing segment
of home loan takers, the plan helps the family to repay the outstanding loan. Given that
HDFC has a huge database of home loan customers; it can easily tap into this resource to
acquire new business.

Birla Sun Life was the first to offer ULIPs in the Indian insurance market. And this has been
the primary driver of its growth over the last one year. The company has been investing in
customer education and feels that as a result customers don't view ULIPs as mutual funds but
long term insurance. As of 2004, the company had 33 branches, 10,274 agents, 79 corporate
relationships and 10 banc assurance partners.

Types of life insurance

Life insurance may be divided into two basic classes – temporary and permanent or following
subclasses - term, universal, whole life, variable, variable universal and endowment life
insurance.

a) Temporary (Term)

Term life insurance (term assurance in British English) provides for life insurance coverage
for a specified term of years for a specified premium. The policy does not accumulate cash
value. Term is generally considered "pure" insurance, where the premium buys protection in
the event of death and nothing else. (See Theory of Decreasing Responsibility and buy term
and invest the difference.) Term insurance premiums are typically low because both the
insurer and the policy owner agree that the death of the insured is unlikely during the term of
coverage. The three key factors to be considered in term insurance are: face amount
(protection or death benefit), premium to be paid (cost to the insured), and length of coverage
(term).
Various (U.S.) insurance companies sell term insurance with many different combinations of
these three parameters. The face amount can remain constant or decline. The term can be for
one or more years. The premium can remain level or increase. A common type of term is
called annual renewable term. It is a one year policy but the insurance company guarantees it
will issue a policy of equal or lesser amount without regard to the insurability of the insured
and with a premium set for the insured's age at that time. Another common type of term
insurance is mortgage insurance, which is usually a level premium, declining face value
policy. The face amount is intended to equal the amount of the mortgage on the policy
owner’s residence so the mortgage will be paid if the insured dies.
A policy holder insures his life for a specified term. If he dies before that specified term is up,
his estate or named beneficiary(ies) receive(s) a payout. If he does not die before the term is
up, he receives nothing. In the past these policies would almost always exclude suicide.
However, after a number of court judgments against the industry, payouts do occur on death
by suicide (presumably except for in the unlikely case that it can be shown that the suicide
was just to benefit from the policy). Generally, if an insured person commits suicide within
the first two policy years, the insurer will return the premiums paid. However, a death benefit
will usually be paid if the suicide occurs after the two year period.

b) Permanent

Permanent life insurance is life insurance that remains in force (in-line) until the policy
matures (pays out), unless the owner fails to pay the premium when due (the policy expires).
The policy cannot be canceled by the insurer for any reason except fraud in the application,
and that cancellation must occur within a period of time defined by law (usually two years).
Permanent insurance builds a cash value that reduces the amount at risk to the insurance
company and thus the insurance expense over time. This means that a policy with a million
dollars face value can be relatively inexpensive to a 70 year old because the actual amount of
insurance purchased is much less than one million dollars. The owner can access the money
in the cash value by withdrawing money, borrowing the cash value, or surrendering the
policy and receiving the surrender value. The three basic types of permanent insurance are
whole life, universal life, and endowment.

c) Whole life coverage

Whole life insurance provides for a level premium, and a cash value table included in the
policy guaranteed by the company. The primary advantages of whole life are guaranteed
death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and
expense charges will not reduce the cash value shown in the policy. The primary
disadvantages of whole life are premium inflexibility, and the internal rate of return in the
policy may not be competitive with other savings alternatives. Riders are available that can
allow one to increase the death benefit by paying additional premium. The death benefit can
also be increased through the use of policy dividends. Dividends cannot be guaranteed and
may be higher or lower than historical rates over time. Premiums are much higher than term
insurance in the short-term, but cumulative premiums are roughly equal if policies are kept in
force until average life expectancy.

Cash value can be accessed at any time through policy "loans". Since these loans decrease the
death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary
upon the death of the insured; the beneficiary receives the death benefit only. If the dividend
option: Paid up additions is elected, dividend cash values will purchase additional death
benefit which will increase the death benefit of the policy to the named beneficiary.

d) Universal life coverage

Universal life insurance (UL) is a relatively new insurance product intended to provide
permanent insurance coverage with greater flexibility in premium payment and the potential
for a higher internal rate of return. A universal life policy includes a cash account. Premiums
increase the cash account. Interest is paid within the policy (credited) on the account at a rate
specified by the company. This rate has a guaranteed minimum but usually is higher than that
minimum. Mortality charges and administrative costs are charged against (reduce) the cash
account. The surrender value of the policy is the amount remaining in the cash account less
applicable surrender charges, if any. With all life insurance, there are basically two functions
that make it work. There's a mortality function and a cash function. The mortality function
would
be the classical notion of pooling risk where the premiums paid by everybody else would
cover the death benefit for the one or two who will die for a given period of time. The cash
function inherent in all life insurance says that if a person is to reach age 95 to 100 (the age
varies depending on state and company), then the policy matures and endows the face value
of the policy. Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of them
live to age 95, then the mortality function alone will not be able to cover the cash function. So
in order to cover the cash function, a minimum rate of investment return on the premiums
will be required in the event that a policy matures. Universal life policies guarantee, to some
extent, the death proceeds, but not the cash function - thus the flexible premiums and interest
returns. If interest rates are high, then the dividends help reduce premiums. If interest rates
are low, then the customer would have to pay additional premiums in order to keep the policy
in force. When interest rates are above the minimum required, then the customer has the
flexibility to pay less as investment returns cover the remainder to keep the policy in force.
The universal life policy addresses the perceived disadvantages of whole life. Premiums are
flexible. The internal rate of return is usually higher because it moves with the financial
markets. Mortality costs and administrative charges are known. And cash value may be
considered more easily attainable because the owner can discontinue premiums if the cash
value allows it. And universal life has a more flexible death benefit because the owner can
select one of two death benefit options, Option A and Option B.
Option A pays the face amount at death as it's designed to have the cash value equal the death
benefit at age 95. Option B pays the face amount plus the cash value, as it's designed to
increase the net death benefit as cash values accumulate. Option B does carry with it a caveat.
This caveat is that in order for the policy to keep its tax favored life insurance status, it must
stay within a corridor specified by state and federal laws that prevent abuses such as attaching
a million dollars in cash value to a two dollar insurance policy. The interesting part about this
corridor is that for those people who can make it to age 95-100, this corridor requirement
goes away and your cash value can equal exactly the face amount of insurance. If this
corridor is ever violated, then the universal life policy will be treated as, and in effect turn
into, a Modified Endowment Contract (or more commonly referred to as a MEC).

But universal life has its own disadvantages which stem primarily from this flexibility. The
policy lacks the fundamental guarantee that the policy will be in force unless sufficient
premiums have been paid and cash values are not guaranteed.

Universal life policies are sometimes erroneously referred to as self-sustaining policies. In the
1980s, when interest rates were high, the cash value accumulated at a more accelerated rate,
and universal life coverage was often sold by agents as a policy that could be self-paying.
Many policies did sustain themselves for a prolonged period, but the combination of lower
interest rates and an increasing cost of insurance as the insured ages meant that for many
policies, the cash option was diminished or depleted.

Variable universal life Insurance (VUL) is not the same as universal life, even though they
both have cash values attached to them. These differences are in how the cash accounts are
managed; thus having a great effect on how they are treated for taxation. The cash account
within a VUL is held in the insurer's "separate account" (generally in mutual funds, managed
by a fund manager).
 a) Limited-pay
Another type of permanent insurance is Limited-pay life insurance, in which all the premiums
are paid over a specified period after which no additional premiums are due to keep the
policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65.

b) Endowments
Endowments are policies in which the cash value built up inside the policy, equals the death
benefit (face amount) at a certain age. The age this commences is known as the endowment
age. Endowments are considerably more expensive (in terms of annual premiums) than either
whole life or universal life because the premium paying period is shortened and the
endowment date is earlier. In the United States, the Technical Corrections Act of 1988
tightened the rules on tax shelters (creating modified endowments). These follow tax rules as
annuities and IRAs do.
Endowment Insurance is paid out whether the insured lives or dies, after a specific period
(e.g. 15 years) or a specific age (e.g. 65).

c) Accidental death
Accidental death is a limited life insurance that is designed to cover the insured when they
pass away due to an accident. Accidents include anything from an injury, but do not typically
cover any deaths resulting from health problems or suicide. Because they only cover
accidents, these policies are much less expensive than other life insurances.

It is also very commonly offered as "accidental death and dismemberment insurance", also
known as an AD&D policy. In an AD&D policy, benefits are available not only for accidental
death, but also for loss of limbs or bodily functions such as sight and hearing, etc.

Accidental death and AD&D policies very rarely pay a benefit; either the cause of death is
not covered, or the coverage is not maintained after the accident until death occurs. To be
aware of what coverage they have, an insured should always review their policy for what it
covers and what it excludes. Often, it does not cover an insured who puts themselves at risk
in activities such as: parachuting, flying an airplane, professional sports, or involvement in a
war (military or not). Also, some insurers will exclude death and injury caused by proximate
causes due to (but not limited to) racing on wheels and mountaineering. Accidental death
benefits can also be added to a standard life insurance policy as a rider. If this rider is
purchased, the policy will generally pay double the face amount if the insured dies due to an
accident. This used to be commonly referred to as a double indemnity coverage. In some
cases, some companies may even offer a triple indemnity cover.

Related life insurance products

Riders are modifications to the insurance policy added at the same time the policy is issued.
These riders change the basic policy to provide some feature desired by the policy owner. A
common rider is accidental death, which used to be commonly referred to as "double
indemnity", which pays twice the amount of the policy face value if death results from
accidental causes, as if both a full coverage policy and an accidental death policy were in
effect on the insured. Another common rider is premium waiver, which waives future
premiums if the insured becomes disabled.

Joint life insurance is either a term or permanent policy insuring two or more lives with the
proceeds payable on the first death.

Survivorship life or second-to-die life is a whole life policy insuring two lives with the
proceeds payable on the second (later) death.

Single premium whole life is a policy with only one premium which is payable at the time
the policy is issued.

Modified whole life is a whole life policy that charges smaller premiums for a specified
period of time after which the premiums increase for the remainder of the policy.

Group life insurance is term insurance covering a group of people, usually employees of a
company or members of a union or association. Individual proof of insurability is not
normally a consideration in the underwriting. Rather, the underwriter considers the size and
turnover of the group, and the financial strength of the group. Contract provisions will
attempt to exclude the possibility of adverse selection. Group life insurance often has a
provision that a member exiting the group has the right to buy individual insurance coverage.

Senior and preneed products

Insurance companies have in recent years developed products to offer to niche markets, most
notably targeting the senior market to address needs of an aging population. Many companies
offer policies tailored to the needs of senior applicants. These are often low to moderate face
value whole life insurance policies, to allow a senior citizen purchasing insurance at an older
issue age an opportunity to buy affordable insurance. This may also be marketed as final
expense insurance, and an agent or company may suggest (but not require) that the policy
proceeds could be used for end-of-life expenses.

Preneed (or prepaid) insurance policies are whole life policies that, although available at any
age, are usually offered to older applicants as well. This type of insurance is designed
specifically to cover funeral expenses when the insured person dies. In many cases, the
applicant signs a prefunded funeral arrangement with a funeral home at the time the policy is
applied for. The death proceeds are then guaranteed to be directed first to the funeral services
provider for payment of services rendered. Most contracts dictate that any excess proceeds
will go either to the insured's estate or a designated beneficiary.

These products are sometimes assigned into a trust at the time of issue, or shortly after issue.
The policies are irrevocably assigned to the trust, and the trust becomes the owner. Since a
whole life policy has a cash value component, and a loan provision, it may be considered an
asset; assigning the policy to a trust means that it can no longer be considered an asset for that
individual. This can impact an individual's ability to qualify for Medicare or Medicaid.

Investment policies

With-profits policies
Some policies allow the policyholder to participate in the profits of the insurance company
these are with-profits policies. Other policies have no rights to participate in the profits of the
company, these are non-profit policies. With-profits policies are used as a form of collective
investment to achieve capital growth. Other policies offer a guaranteed return not dependent
on the company's underlying investment performance; these are often referred to as without-
profit policies which may be construed as a misnomer.
Insurance/Investment Bonds
Pensions
Pensions are a form of life assurance. However, whilst basic life assurance, permanent health
insurance and non-pensions annuity business includes an amount of mortality or morbidity
risk for the insurer, for pensions there is a longevity risk. A pension fund will be built up
throughout a person's working life. When the person retires, the pension will become in
payment, and at some stage the pensioner will buy an annuity contract, which will guarantee
a certain pay-out each month until death.

Annuities
An annuity is a contract with an insurance company whereby the purchaser pays an initial
premium or premiums into a tax-deferred account, which pays out a sum at pre-determined
intervals. There are two periods: the accumulation (when payments are paid into the account)
and the annuitization (when the insurance company pays out). For example, a policy holder
may pay £10,000, and in return receive £150 each month until he dies; or £1,000 for each of
14 years or death benefits if he dies before the full term of the annuity has elapsed. Tax
penalties and insurance company surrender charges may apply to premature withdrawals (if
indeed these are allowed; in most markets outside the U.S. the policy owner has no right to
end the contract prematurely).

PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE CO. LTD.

Bajaj Allianz Life Insurance Co. Ltd. has a wide range of insurance products offered to
customers. So is the tagline of BALIC says “ Jaisi jaroorat waisa insurance” and “ Jiyo
Befikar”.

Bajaj Allianz, realize that people seek an insurer who they can trust their hard earned money
with. Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto,
trusted for over 55 years in the Indian market, together are committed to offering you
financial solutions that provide all the security you need for your family and yourself.

Bajaj Allianz brings to you several innovative products, the details of which are…

INDIVIDUAL PLANS

Innovative Plans for Individual Life Insurance needs

GROUP PLANS

Competitive Plans for Group Life Insurance Needs

INSURANCE FOR NRI’S

Special NRI Offers

Individual Plans: -

Traditional Plans : Following are the traditional plans offered by Bajaj Allianz Life
Insurance

Endowment Plan

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 companies profits. It is a high
risk but has easy liquidity and high returns.

4. Invest Gain : This plan offers a combination of benefits that help develop a financial
portfolio for your family. At a small extra cost you get 4 times life cover. Also you have an
option of limited premium payment.

Money Back Plan

Money back plans are Traditional Insurance plans that provide the investor with returns at
regular stages of life.A money back plan which guarantees 5 easy payouts giving upto 125%
+ bonuses. Also 4 times a life cover.

Cash Gain

A money back plan which guarantees 125% payout + bonuses.

Quadruple life cover. 5 easy payouts which give upto 125% + bonuses.

Additional Benefits:

 Accidental Death Benefit and Disability Benefit.

 Critical Illness Benefit and Hospital Cash Benefit.
 Family Income Benefit: In case of death or accidental total permanent disability of
insured, all future premiums are waived and 1% of the sum assured is paid monthly

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 comes
with a lowest cost for a Life Insurance cover. With regular premium plan you get additional
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 either 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)

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 upto 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 may have.

• The only Unit linked insurance plan with ethical equity fund.
• Suits religious investment guidelines as well.

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.

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.
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)

Annuity

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

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 upto 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 h elps 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.

SWARNA RAKSHA- ROC

A fixed annuity for life will be payable, and on death of the annuitant, the nominee will be
entitled to receive an amount that is equal to the lump sum used to purchase the annuity.

Women Insurance Plans

MAHILA GAIN RIDER

Housewives need to safeguard their financial independence.The unique plan that takes care of
you and your loved ones and provides benefits like

• Critical Illness Benefit

• Reconstructive Surgery Benefit for Breast(s) due to Breast Cancer
• Congenital Disability Benefit
• Complications of Pregnancy Benefit.
.
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.

A. Children Plan

Ever wondered why you need an insurance policy for your child?

As a parent, you always dream the best for your child including marriage, higher education,
or that hand holding for a start in life. Whether you are there to see your child grow up and
settled or not, your child feels your love in the financial support arranged by you through our
wide range of Children's insurance policies taking him from one milestone to another.

Saving early and saving regularly for your child helps combat inflation and ensures higher
yields. If you take an insurance policy for your child you can take advantage of lower
premium rates and ensure that your children remain covered throughout adult hood, at a
much lower rate. This also instills a saving-habit in your children at a young age developing
them as and when the policy vests in them.

Child Gain

 Common features in the 4 Options of Bajaj Allianz ‘ChildGain’ Plan

 Limited Premium Payment Term which means that the premiums are payable till your
child attains age 18 years.
 Your contributions grow by the way of compounded annual bonuses, which will be
  paid to you with the first guaranteed payout (policy anniversary following age 18 of
your child), for in-force policies. In addition to the annual bonuses, a terminal bonus
may also be paid.
 You are eligible for Tax Benefits under Section 80C and Section 10(10)D of the
Income Tax Act.
 Assuring Your Child’s Future: In an uncertain world, the prime interest of your child
cannot be jeopardized in any way. Which is why we have built in some added benefits
in all our plans to protect the interests of your child’s future, by counter insuring you -
the policyholder.

Health Plans

Bajaj Allianz Life Insurance we offer unique hospitalisation-cum-insurance plan that takes
care of your hospitalization bills and also provides crucial financial support to your
dependents in case of your unfortunate death. .
Our health insurance plans offer a sound protection to safe guard your family from any
medical emergencies and will make sure that financial problems are least of your worries in
trying to get yourself treated. .
We offer cash less Mediclaim facility across 2000 hospitals in over 300 towns and provide
best treatment in the finest hospitals with our health insurance products.

HEALTH CARE
This is a three-year health insurance plan, providing comprehensive health cover with life
insurance benefit. You can choose the amount of cover for each benefit separately in
multiples of the minimum cover amount, subject to a maximum multiple of 10.

A 6- in-1 health insurance plan that offers:

 Life Cover
 Hospital Cash benefit
 Surgical benefit
 Post Hospitalisation Benefit
 Critical Illness Cover
  Accidental Permanent Total / Partial Disability (APT/PD) along
with a cash less card facility makes it an excellent product as the
benefits under this plan can be taken in addition to any other health
insurance plan.

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

Group Plans: -

GROUP SUPERANNUATION SCHEME

Assure your Employees a financially secured; stable and independent post retirement life.

Group Superannuation Scheme will be established under an irrevocable trust, with trustees
appointed by Company taking care of the administration.

GROUP CREDIT SHIELD

Available for Employer- Employee Groups and Non Employer- Employee Groups.

This scheme insures the loan amount outstanding in the account in case of premature death or
disability...

GROUP TERM LIFE

Available for Employer- Employee Groups and Non Employer- Employee Groups.

This scheme covers the members of an organization against the risk of premature death or
disability...
GROUP TERM LIFE
In lieu of EDLI (Employees Deposit Linked Insurance Scheme)

This scheme is a better alternative to the Employees Deposit Linked Insurance Scheme, 1976,
under Sec 17 (2) of the Employees Provident Fund and Miscellaneous Provisions Act...

GROUP GRATUITY CARE

Giving your Employees and their families the heartening reassurance of your care and
financial security

Group Gratuity Care is a Multi Featured Employee Welfare Scheme, which addresses your
Gratuity liability with flexibility like never before.

Micro Insurance Plans

1. 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.

New Products Launched

Family Assure
Fortune Plus
Capital Shield
Century Plus II

ADDITIONAL BENEFITS (Additional protection for you & your family):

Bajaj Allianz offers the flexibility to enhance basic insurance policy by attaching additional
benefits that give more protection to you and your family. You can choose to take all or some
of the additional benefits. Bajaj Allianz allows you to redesign your life insurance coverage
to suit your needs, providing total protection against these uncertainties.

Additional Benefit Riders:

UL Accidental Death Benefit.

UL Critical Illness benefit.
UL Hospital Cash Benefit.
UL Family Income Benefit.
UL Waiver of Premium benefit

Insurance for NRI's

You can now easily steer your savings from overseas to conveniently meet your family's
needs - now and in the future.
All Indians have an underlying need to feel secure, to care for the loved ones and to provide
for old age. The need is felt more when you are away from your Homeland. But being away
from India doesn't mean you have to compromise on the safety and security of your loved
ones.
In fact, you can now easily steer your savings from overseas to conveniently meet your
family's needs - now and in the future.

Bajaj Allianz understands your need. The need to do something fruitful for your loved ones.
The urge to let them know that you care. That's why we introduced the NRI Insurance
services. Now, you can invest your hard earned money in India and in the bargain ensure
your family's future.

CARE SOLUTIONS FOR NRI,s: Bajaj Allianz offers a large suit of products to cater every
insurance need that you have. Our care solutions include:

1. Invest Gain - Our 'With Profits Endowment Plan’.

2. Cash Gain - Our 'With Profits Money Back Plan'.
3. Child Gain - Our 'With Profits Money Back Plan' for children.
4. Lifetime Care - Our 'With Profits Whole of Life Plan'.
5. Swarna Vishranti - Our 'With Profits Differed Annuity Plan'.
6. Unit Gain - Our 'Unit Linked Whole of Life Plan'.

COUNTRY WIDE NETWORK: -

Agency Channel: -
Currently company over 570 offices- Branches & Satellites, with “Hub & Spoke” structure.

Bancassurance: -
The company has some 3 banks; 12 co-operative banks, & 7 Regional Rural Banks tie-ups,
which are managed by the Bancassurance team.
Alternate Channels: -

The focus area are Corporate Agency, Franchisee, Broker, NRI business, Small cooperative
banks; Group business & Rural and Social Business.

Focused Sales Network

Focused Sales Network

Key Achievements in FY 2005-06 (Acc. to IRDA & Bajaj Allianz report): -

• No.1 Pvt Life Insurer FY 2005-06, Leading by Rs. 78 Cr

• No.1 Pvt Life Insurer in Retail Business, Leading by Rs. 339 Cr

• Whopping growth of 216% for the FY 2005-06

• Have sold over 13, 00,000 policies to satisfied customers

• Is backed by a network of 550 offices spanning the country

• Accelerated Growth

• Assets under management Rs 3,324 cr

• Shareholder capital base of Rs 500 cr

YEARLY PERFORMANCE OF BAJAJ ALLIANZ

Fiscal Year No of policies sold in FY GWP in FY

2001-2002 (6mths) 21,376 Rs 7 cr

2002-2003 1, 15,965 Rs 69 cr
2003-2004 1, 86,443 Rs 221 cr
INDUSTRY MARKET SHARE (LIC & PVT)
2004-2005 2, 88,189 Rs 1002 cr
2005-2006 7, 81,685 Rs 3134 cr

7% 8%
9%
2%
3%

71%

Bajaj Allianz Life LIC

HDFC Standard Life Birla Sunlife
ICICI Prudential Others
Bajaj Allianz Life market share is at second place with 8% behind that of LIC market
share 71%.
ICICI Prudential is third with 7%.
Others with 9% including SBI Life, ING Vysya, Tata AIG etc; followed by Birla
Sunlife, HDFC Standard Life among whole insurance sector (Govt & Pvt.).

MARKET SHARE IN PVT SECTOR

25.7,
31.2,
26%
30%

10, 10%
6.6, 7%

26.5,
27%
ICICI Prudential HDFC Standard Life
Bajaj Allianz Life Birla Sunlife
Others
Bajaj Allianz Life market share is highest with 27%.
ICICI Prudential is second with 26%.
HDFC Standard Life is third with 10%.
Birla Sunlife is with 7%.
Others are including SBI life, Tata AIG, ING Vysya, Aviva, etc with 30% among
private insurance sector.

RESEARCH OBJECTIVES

1) To know the consumer responses about Bajaj Allianz life insurance policy.

2) To know about the products of Bajaj Allianz Life Insurance.

3) To know about the objections of people for not taking the Insurance policy.

4) To know the need for Life Insurance.

5) To know the benefits of Life Insurance.
6) To know the market share of Bajaj Allianz Life Insurance in the Market.

RESEARCH METHODOLOGY:
According to Clifford woody “Research comprises of designing and redesigning problems,
forecasting hypothesis, collecting, organizing, and evaluation of data, making deductions and
research conclusion at last carefully testing conclusion to determine whether they fit the
formulating hypothesis. Research methodology is a way to systematically solve the research
problem. Why a research study has been undertaken, how the research problem has been
formulated, why data have been collected and what particular technique of analyzing data has
been used and a best of similar other question are usually answered when we talk of Research
methodology concerning a research problem or study. The main aim of research is to find out
the truth which is hidden and which has not been discovered as yet.

The area of the study related with informing different people about life insurance policies in
the region of jhansi.
RESEARCH DESIGN:
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.

DESCRIPTIVE RESEARCH DESIGN:

The research design adopted in this study is DESCRIPTIVE RESEARCH DESIGN. A
descriptive research design is the one that description of the state of affairs as it exists at
present. It includes survey and fact finding enquiries of different kinds. The researcher has no
control over the variables. The researcher used this research design to find out the
respondents attitude and opinion about policies offered by Bajaj Allianz.
SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given population. It refers to
the techniques or the procedure the researcher would adopt in selecting items for the sample.
Sample design may as well be drawn from the population to be included in the sample i.e. the
size of the sample. Sample design is determined before data are collected.
During my study I have taken 50 prospects as the size of sample.

CONVENIENCE SAMPLING:

The researcher adopted convenience sampling. It is the non probability sampling is that
sampling procedures does not any basis for estimating the probability that each item in the
population has of included in the sample. The researcher selects the people according to their
convenient.

SAMPLE SIZE:
A sample of 50 people was taken for the survey. The required data collected through
questionnaire.

SAMPLING AREA:
The sampling unit may be a Geographical one such as state, District, Village etc., The
geographical sampling unit under study has covered the area of jhansi city.
TOOLS USED

To know the response, I have used the questionnaire method. If one wishes to find what
prospects think or know, the logical procedure is to ask them. This has led marketing
researchers to use the questionnaire technique for collecting data more than any other
method.

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.

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 were asked to fill the questionnaire.

With the help of following techniques, which are used by Bajaj Allianz I have analyzed that
the how techniques of sales promotion are useful

Questionnaire used was as follows:

Name:
Address:
Contact number:
Age:
1) Whether you are Married or Unmarried? (.M for married, U for Unmarried) :

2) What is your Educational Qualification?

3) What is your Profession?

4) How many People depend on you?

5) What is your Annual Income?

6) Which vehicle you own?

 7) What are the recent developments in your family?

 New House

 New Baby

 New Car

8) Where do you invest money?

 Savings Bank Account

 Insurance Policies

 Shares

 Mutual Fund

 Real Estate

DATA COLLECTION

PRIMARY DATA SOURCES

 Through interaction with insurance care consultant
 Through questionnaires filled from the insurance care consultant.

SECONDARY DATA SOURCES:

 Through internet, various official sites of the companies.
 Through pamphlets and brochures of the companies.
 Journals & Magazine
LIMITATIONS OF THE STUDY

Following limitations were faced during the study:

1. While designing the questionnaire it was kept in mind to gather more and more
information from each target person. For the neither present nor descriptive questions
could have served the purpose. Therefore the questionnaire contained in the open-
ended questions.
2. The study was conducted in Bajaj Allianz in Jhansi city, which has 30 to 50 insurance
prospects only. The sample size was of 50 insurance care consultants only so that
accuracy of data so collected could be absurd covered by circulation of questionnaire.
3. The accuracy of indications given by the respondents may not be consider adequate as
whether the language used in the questionnaire is understood by the respondent
cannot be taken for granted.
4. The study is based on the information gathered from the insurance care consultants.
Therefore in such case it is possible that the information supplied might be biased
because the insurance care consultant might have shown partiality towards their
insurance policies.
5. Since the survey was limited to 50 insurance prospects it is rather difficult to give a
precise conclusion but I have tried to the best of my capability to give the conclusion
on a comprehensive manner.
6. Survey is restricted only at Jhansi city.
7. Getting correct information from the customers is very difficult due to their inherent
problems and busy schedule.
8. The time of study only limited up to 45 days.
9. The study is based on a sample size and hence the findings cannot be generalized.

 The survey may not give the whole scenario of Indian market

 The views of respondents are likely to change as human nature is very dynamic.
 The result figure may be biased since the subjects/investors may provide wrong
information

RESULT 
  Most of investors not fully aware about Life insurance policies and their advantage.

 It was found most of the investor prefer, less risk taking saving scheme or fixed
deposits.

 Some of the people, who were related to rural area, did not know about facility for
investment of money in Life Insurance Policy schemes.

 The proportion of investor and non-investor 20% & 80%.

   The investors were interested more in Policies of LIC because it is a Government

body.

 Some of the investors were pleased to know about New FamilyGain and said that it is
a very good plan and is very much affordable by middle class people.

SCOPE OF THE STUDY

1. The study helps to determine the market potential for various policies offered by Bajaj
Allianz.
2. It helps the company to adopt suitable marketing strategy to comply with the market
potential determined from the study.
3. It helps the managers and agents to understand the customer’s perception towards
insurance policies from the study.
4. It helps the managers to find out the suitable media to advertise. The survey was
undertaken among 50 respondents with a view to analysis various above mention
factors, to provide valuable and vital suggestion for the company.
CONCLUSION
With the growth of Indian insurance market, the market experience more and more product
development catering to particular segments of the market there by allowing the companies to
develop better relationship with their own customer

Today the customer wants products tailor made to their needs. To fulfill this need, companies
are launching products which can hit the customers need. for e.g.; the cost of education is
rising day by day so to cater this high cost of education companies have launched child gain
programs which provide money when it is needed the most i.e. in the age between 18 to 24
.Earlier product did not have riders but now all the product are equipped with attractive riders
like critical illness benefit, accidental death benefit, hospital cash benefit, waiver of premium
benefit and many more. There is flexibility in the plans which allows the customer to increase
or decrease the amount of investment .To create a space in the consumer’s minds the
insurance companies have maximized their innovation skills for e.g.: Invest Plus which is a
traditional plan but is offering most of the flexibility features of ULIP plans with guaranteed
percentage of return without bearing the risk of stock market.
Earlier people use to associate insurance policy with death but now they buy insurance as a
investment instrument .e.g. unit link products which give maximum retunes.
The environment has become more competitive and sensitive to the demands of the market
The customers have become the driving force and the companies have recognized the role of
the customer in their business planning and decision making.

The emerging scenario provides the consumers with choice of insurance, wider range of new
& innovative products also competitive pricing of products and services.
As the industry is growing there is large opportunity for employment also for e.g. Insurance
consultancy can be a great career opportunity since less time has to be devoted it can always
be a part time job .The growth opportunities are high because of the large untapped market.

This study has helped the Bajaj Allianz to identify the market potential in Raipur city, which
is the primary purpose of the study. In this study the attempt has been made to know the
preference given by the respondents towards ULIP and the factors influencing the customer’s
needs and satisfaction level of particular plan. As BALIC has good brand awareness and
fastest growing private life insurance company in India, I would like to conclude the study by
suggesting that the ULIP is one of the best products which is offering by the company for the
customers to get good returns with covering life risk and providing the facility of short term
investment.

Hence large number of respondents has no idea to take up the ULIP policies in future so the
Bajaj Allianz has a huge market potential to sell their product in Raipur City.

Swot analysis of bajaj allianz

Strengths
 Bajaj Allianz is the fastest growing private life insurance company in India , with a
growth rate of 380%.
 Bajaj Allianz Life market share is at second place with only 8% behind that of LIC
market share 71%.
 Bajaj Allianz Life market share is highest with 27%. Which is highest than any other
private player.
 Ranked no-2 among private life insurance companies in India
 Is backed by a network of 550 offices spanning the country

Weaknesses
 No proper retention strategy it means once the employee is experienced he likes to
have more comforts, so team management has to understand this weakness as early as
possible and try to satisfy them.
 Yet to open branches in semi-urban and rural sectors. It failed hear also, they have to
create awareness about insurance in rural and semi- urban people, since 70% of Indian
people exist in villages, so it's an important thing to be consider to expand their
business.
 weak infrastructure – particularly transport and communications – in the smaller
cities.
  It is also facing a challenge in terms of banking channels, particularly for customers
who bank with cooperative banks, where delays in clearing cheques are inevitable.

Opportunities
 Tied agencies comprise the biggest channel (68%) of new business acquisitions for
Bajaj Allianz. Banc assurance (27%) is the other significant channel of growth for the
company.
 Can tap rural as well as urban market.
 Innovation in products.
 To expand overseas market.

Threats

 Too many entry of private players

 Less awareness among people

SUGGESTIONS & RECOMMENDATIONS 

 

Through out the project work I have tried to my extent to learn more and more so that I
enable myself to deliver the best services from my part. I always focused my services to full
satisfaction whether it would for employer or for customer. So during this practical learning
process whatever I have realized to improve the division of the company is as follows: 

 Tapping the up coming market - Semi Urban Market as there is a lot of opportunity.
Most of the Life Insurance companies are operating in the metros and big cities as per
their present branch office locations. If they have to increase their market size they
have to open more distribution centers at the various urban and semi-urban markets. 

 The company always should have proper communication with its front office as well
as back office workers to increase the morale and productivity.
  The company should always have proper planning for gifts/incentives for employees
on various occasions or on competitions

 Premium and economical class of services should be launched by the company to

serve the varied nature of customers.

 Service cum awareness camps should be run by the company in remote areas.

  . Distribution channel needs more strength.

 

. Improvement in services through feedbacks from customers is recommended.

 The Bajaj Allianz should focus forwards more number of females to take policies for
their children.
 The Bajaj Allianz should concentrate the age group of 18- 30, who are considered as a
prospect to take insurance policies.
 The company should focused on the following services :
A. Claim settlement
B. Pending documents, etc…
 The agent must have to update knowledge about their products and services day to
day.
 The agents should have the knowledge about the competitor’s product also.
.
 The agents must have healthy relationship with the customers after the policy has
been logined.
 The study shows most of the customers holds only one policy so the advisers can
select and promote the customers who can offered more than one policy.
 Few respondents are not ready to recommend the Bajaj Allianz products to others so
the company wants to train the adviser up to the expectation level of customers and
make the advisers to collect the feedback from the customers and they wants to
overcome the problems if any.
BIBLIOGRAPHY

www.bajajallianzlife.co.in

www.en.wikipedia.org

www.google.com

Insurance Principles and Practice- By Noorul Hasan