CHAPTER I

INTRODUCTION

The risk/return relationship is a fundamental concept in not only financial analysis, but in

every aspect of life. If decisions are to lead to benefit maximization, it is necessary that

individuals/institutions consider the combined influence on expected (future) return or

benefit as well as on risk/cost. Return expresses the amount which an investor actually

earned on an investment during a certain period. Return includes the interest, dividend

and capital gains; while risk represents the uncertainty associated with a particular task.

In financial terms, risk is the chance or probability that a certain investment may or may

not deliver the actual/expected returns.

The risk and return trade off says that the potential return rises with an increase in risk. It

is important for an investor to decide on a balance between the desire for the lowest

possible risk and highest possible return.

OBJECTIVES:

1) To maximise the return by creating balance of risk.

2) To study the risk involved in the investment

3) To make comparative study of risk and return of different insurance products

SCOPE OF THE STUDY

The scope of the study is limited to only insurance & no other financial instruments were

considered .The study will help us to know the perception of customers about insurance

policies. The various risks involves in buying an insurance policy and how to tackle it. It

will also help us to get a basic knowledge about need analysis calculation and its

requirement.

Methodology:

The case study method is selected as the data is collected and analyzed by taking existing

cases (project). The overall method of risk return matrix followed at Bharti Axa is studied

by taking few existing cases of Bharti Axa.

Research Design :

Causal research: Research design in which the major emphasis is on determining cause-

and- effect relationships.

Descriptive research : Research design in which the major emphasis is on determining the

frequency with which something occurs or the extent to which two variables co vary.

Primary data:

Primary data is the one which is collected specifically for the purpose of the project, and

can be obtained from various people working in the organization. For this study the

primary data was collected from following sources.

Questionnaires

Discussion with manager.

Secondary data:

It refers to the statistical material which is not originated by the investigator himself but

obtained from someone else's records, or when Primary data is utilized for any other

purpose at some subsequent enquiry it is termed as Secondary data. However, it plays a

significant role in the project. For this study the secondary data was collected from the

following sources.

Books related to risk management and insurance

Websites related to risk management and insurance

LITERATURE REVIEW

Title: INTERNATIONALOF INSURANCE AND RISK

Author: Prof. Boston D. Ionel

Publication: Journal of the Academy of insurance, Volume 27, Issue 2, pp 226-240

Abstract: This paper was published by International Scholars Journals. The mission

of International Journal of Insurance and Risk is to significantly broaden the knowledge

base of its readers and in this sense , the journal shall focus on only those papers that fall

within its scope.

Title: Information Security Risk Analysis,

Author: Thomas R. Peltier

Publication: Volume 17, Issue 8, pages 613–632, October 1996

Abstract: Thomas says, the internet has changed the way we purchase many items and

life insurance is no exception. The trend towards term life becoming a commodity was

already starting but the internet gave it the final push over the cliff. What fell was

life insurance rates and this has generally been good news for life insurance shoppers. In

spite of the slogans, sayings, and product statements made by life insurance companies,

there has been a constant move towards commoditization in this industry.

Title: “Information Security Risk Assessment: Practices of Leading

Organizations”

Author: Sun Tzu

Publication: A book on risk assessment , Vol. 48, No. 3, summer, 1984

Abstract: Term life insurance helps cover your financial responsibilities if you die. With

term life insurance, your beneficiaries receive no payout if you live past your policy's

term. Think of it like car insurance--if you're in an accident, the insurance covers medical

care, car repair or replacement, and so on while your policy is in effect. Same with term

life insurance--if something happens to you, your policy provides your family with

money when they need it most. But if nothing happens to you, the insurance company

simply keeps the money you paid--it's the price you pay for protection and peace of mind.

But--here's the good part--the price of term life is lower than permanent. Much, much

lower!

Title : “Services of Insurance Plans”

Author : Peter john

Publication : A book on insurance plan by bharti axa , Vol. 4 Issue: 2, pp.13 – 24

Abstract : Peter john says, Insurance plans provides the individuals and groups to

empower their insurances whether they may be small or large group terms. Individual

heath insurance would suit people who want their own policy benefits. Good Health

Quotes offer a variety of group health insurance plans. Normally group health insurance

plans cost less than the individual plan, because there a more people in a group, the

buying power of the group increases. The group health insurance also provides you with

certain extra benefits.

LIMITATIONS

• The study is limited due to constraint of time and information available

• Possibility of error in data collection because many of respondent may have not

given actual answers of questionnaire.

• This project only talks about risk analysis of life insurance products but there are

some other non life insurance products where risk analysis can be done.

The study had done only on 100 respondents.

CHAPTER II

INDUSTRY AND COMPANY PROFILE :

INDUSTRY PROFILE

Insurance is a contract between the insurance company (insurer) and the policyholder

(insured). In return for a consideration (the premium), the insurance company promises to

pay a specified amount to the insured on the happening of a specific event. We all need

insurance because it not only transfer the risk but also have other benefits like tax saving.

The first Indian insurance company was formed in the year 1818 which was oriental life

insurance company and the Indian life assurance company’s act 1912 was the first

statutory measure to regulate life business which was finally amended in the year 1938.

In the year 1999 Insurance Regulatory and Development Authority (IRDA) was

constituted as an autonomous body to regulate all the insurance companies in India which

came in power in the year April 2000. Under the current regulation a foreign companies

cannot have more than 26% of stake in joint venture.

Top five companies in world in 2013

Japan post Insurance

AXA

Allianz

Met life

Prudential Financial

History of Indian Insurance Industry

Before 1950:

In 1818, Oriental Insurance company becomes the 1st company to start life

insurance business in India.

The Indian Life Assurance Companies Act, 1912 was the first statutory measure

to regulate life business.

In 1914, the Government of India started publishing returns of Insurance

Companies in India.

In 1928, the Indian Insurance Companies Act was enacted.

In 1938, the earlier legislation was consolidated and amended by the Insurance

Act.

1950-1999

The Insurance Amendment Act of 1950 abolished Principal agencies.

In 1956, an ordinance was passed to nationalize the Life Insurance sector and LIC

was formed.

Post 1999

In 2000, IRDA Act 1999 came into existence and exclusive business rights of LIC

got abolished.

Life Insurance Industry in India

List of Life Insurance Companies in India

Sr. No. Reg. No. Name of the Company

1 512 Life Insurance Corporation of India

2 101 HDFC Standard Life Insurance Company Ltd.

3 104 Max Life Insurance Co. Ltd.

4 105 ICICI Prudential Life Insurance Company Ltd.

5 107 Kotak Mahindra Old Mutual Life Insurance Limited

6 109 Birla Sun Life Insurance Company Ltd.

7 110 Tata AIA Life Insurance Company Ltd.

8 111 SBI Life Insurance Company Limited .

9 114 ING Vysya Life Insurance Company Private Limited

10 116 Bajaj Allianz Life Insurance Company Limited

11 117 Metlife India Insurance Company Ltd.

12 121 Reliance Life Insurance Company Limited.

13 122 Aviva Life Insurance Co. India Ltd.

14 127 Sahara India Insurance Company Ltd.

15 128 Shriram Life Insurance Company Ltd.

16 130 Bharti AXA Life Insurance Company Ltd.

17 133 Future Generali India Life Insurance Company Limited

18 135 IDBI Federal Life Insurance Company Ltd.

19 136 Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

20 138 AegonReligare Life Insurance Company Ltd.

Insurance Regulatory and Development Authority (IRDA)

Reforms in the insurance sector were initiated with the passage of the IRDA Bill in the

parliament in December 1999.The IRDA since its corporation as statutory body in April

2000 has fastidiously stuck to its schedule of framing regulations and registering the

private sector insurance companies.

The other decision taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies were the launch of the

IRDA’s online service for issue and renewal of license to agents.

The approval of institutions for institutions for imparting training to agents has also

ensured that the insurance companies would have trained work force of insurance agents

in place to sell their products, which are expected to be introduced by early next year.

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

globally compatible regulations. In the private sector 12 life insurance and 6 general

insurance companies has been registered.

Insurance sector in India

1818 saw the advent of life insurance business in India with the establishment of the

Oriental Life Insurance Company in Calcutta but in 1968, the Insurance Act was

amended to regulate investments and set minimum solvency margins. But actually grow

in the insurance sector in India begun from the year 2000 with the formation on IRDA.

IRDA is a regulatory body to manage working of all the insurance company in India.

Foreign companies were allowed ownership of up to 26% and invest in insurance policies

in India. The insurance sector is a colossal one and is growing at a speedy rate of 15-

20%. Together with banking services, insurance services add about 7% to the country’s

GDP.

The various data which is represents the market share of top five insurance companies in

India

6.25%6.02%

3.32%2.14%

68.70%

Sales ICICI PrudentialSBI LifeHDFC StandardBajaj AllianzLic

Most of the Indian population are without life insurance cover and still a huge amount of

growth is possible in Indian environment. At present people do not prefer to invest their

saving in insurance policies but it is expected to change in future.

COMPANY PROFILE

The AXA Group

AXA group was originally founded in 1816 as Mutuelle de L'assurancecontreL'incendie

(The AncienneMutuelle). Headquartered in Paris, the group was re christened as AXA in

1985.

AXA is a world leader in financial protection and wealth management, with major

operations in Western Europe, North America and the Asia/ Pacific area. AXA services

102 million customers throughout the world. In total the AXA group has approximately

160,000 employees and distributors, working in around 50 countries. The AXA group

reported total revenue for the first half of 2013 of 37.8 billion. AXA group has a strong,

long standing history. The group can trace its roots right back to the 18th century. After a

successions of mergers, acquisitions and name changes involving some of the leading

insurance companies in the UK and around the world.

AXA Credit Rating

Agency Rating Last Update

Standard & Poor’s AA- 27/01/2012

Moody’s Aa3 16/02/2012

Fitch AA- 03/11/2011

AXA has earned high marks by independent companies that rate insurance companies for

their financial strength, stability and ability to meet the obligations to its policyholders.

Bharti Enterprises

Bharti Enterprises is one of India’s leading business groups since 1976, with operations

in over 21 countries across the globe with interests in telecom, financial services, retail,

fresh and processed foods, and real estate.

Bharti Enterprises is a pioneer in telecom sector and the group is widening its horizons by

entering new business areas such as insurance and retail. Bharti Enterprises has created a

vantage position for itself in the global telecommunications sector. BhartiAirtel Limited

occupies good status in mobile telephony in India while its brand 'Beetel' is the largest

manufacturer and exporter of world class telecom terminals.

Founder of Bharti Group is Sunil Mittal. In 1983, Sunil Mittal entered into an agreement

with Germany's Siemens to manufacture the company's push-button telephone models for

the Indian market. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited

(BTL) and his company became the first in India to offer push-button telephones,

establishing the basis of Bharti Enterprises. This first-mover advantage allowed Sunil

Mittal to expand his manufacturing capacity elsewhere in the telecommunications

market. By the early 1990s, Sunil Mittal had also launched the country's first fax

machines and its first cordless telephones. In 1992, Sunil Mittal won a bid to build a

cellular phone network in Delhi. In 1995, Sunil Mittal incorporated the cellular

operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular

service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control

of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In

2000, Bharti acquired control of Sky cell Communications, in Chennai.

Bharti Group Facts

1) Bharti Group Operates In 21 Countries across the globe.

2) Bharti Group has 19 different companies

3) Airtel was founded in Year 1995

4) Airtel is 5th largest telecom company worldwide

5) In India, Airtel holds 30% Market share

6) Airtel has a revenue of $ 7.8 billion.

Bharti AXA life insurance Ltd:

Bharti AXA Life Insurance is a joint venture between Bharti, India's leading private

telecom company and AXA, world leader in financial protection and wealth

management. Their philosophy is to build around the promise of making people "Life

Confident"...

Bharti Enterprises and AXA Asia Pacific Holdings Limited (AXA) signed an agreement

to establish a joint venture named Bharti AXA Life Insurance Company Limited to carry

on life insurance business in India.

August 26, 2005, New Delhi : Bharti Enterprises and AXA Asia Pacific Holdings

Limited (AXA) signed an agreement to establish a joint venture named Bharti AXA Life

Insurance Company Limited to carry on life insurance business in India. Under the

agreement AXA has a 26% equity interest in the joint venture, while Bharti holds the

balance. AXA, a global leader in insurance business, enabled the company to have access

to AXA’s global life insurance and asset management expertise. Bharti brought its strong

local market knowledge, reputation and India-wide retail presence.

“The insurance sector in India provides a mega opportunity for private players like

BhartiAxa Despite the strong growth witnessed by the sector in the recent years, nearly

80% of the Indian population is without life insurance coverage. This joint venture is an

opportunity for AXA to enter the Indian life insurance market, one of the most attractive

emerging insurance markets. India is a fast growing economy and a huge market with

more than 1.1 billion people. This coupled with a large middle class and increasing

income levels will drive growth in the insurance market. Bharti is a well-established and

financially strong group whose capabilities and network will be of significant value to the

joint venture. The joint venture commenced business in the first half of 2006, subject to

IRDA, FIPB and other statutory approvals.

Bharti AXA Life Leadership :

MMmRole Name Chairman Mr. RakeshBharti Mittal

A Perfect Blend

74% 26%

MD & Chief Executive Officer Mr. Nitin Chopra

Chief Appointed Actuary Mr. Rajeev Kumar

Chief Underwriter Mr. A. S. Rajesh

Chief Operating Officer Ms. JyotiPunja

Chief Investment Officer Mr. Sandeep Nanda

Chief Finance Officer Mr. AlokRoongta

Chief Human Resource Officer Mr. UlhasDeshpande

Head of Agency Mr. APS Bhalla

Bharti AXA Life Distribution Model

Achievements of Bharti AXA Life :

Pioneer in introducing cutting edge product categories in Indian Life Insurance

industry.

Bharti AXA Life

Agency Distribution

Direct Distribution

Corporate Agency & Broker & Group

Strategic Initiatives

Agency Partner

Managing

Partner

Corporate Employee Channel

Introduced 48 hrs TAT in fund value settlement for ULIP plans in Indian Life

Insurance industry.

Introduced 48hrs release of family care benefit in eProtect plan.

Unmatchable support to its sales force through 24/7 dedicated Life Advisors

connect centre.

One of its kind life stage based training value proposition in the industry through

“Bharti AXA Life Learning University”.

One amongst the best in terms of brand recall, achieved after the 48 hrs branding

campaign in 2010.

High customer service standards through facilities like dedicated customer self

service portal.

Insurance Products:

The Insurance market is broadly divided into two categories Life Insurance and Non

Life Insurance. Life Insurance covers risks related to human lives. All other risks are

covered under Non-Life Insurance or General Insurance.

Non Life Insurance Market

The non- life insurance market is further divided into sub-categories

It is a continuously developing market with new products being introduced from time to

time as society has a need for them. Insurance is given by the company to the movable

and Immovable properties of the insurer, this takes place when two parties comes into the

contract .

Life Insurance Market

Non life Insurance market

Fire insurance Marine Insurance Miscellaneous

Motor Insurance

Property Insurance

Liability Insurance

Health Insurance

Travel Insurance

The main products offered under life insurance are shown below

The business of insurance takes place when insurer pays for the premium and that

company generates the policy henceforth the risk are covered by the company in case of

uncertainity.

VISION, MISSION AND QUALITY POLICY

VISION :

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

management in India “

MISSION :

To contribute to the socio economic objectives of the nation by being vibrant and viable

organization catering to the growing insurance needs of the community. Towards this end

we will strive for effective management of business operations.

QUALITY POLICY :

Main life Insurance products

Term insurance

plans

Endowment insurance

plans

Whole life Insurance

Pension and savings plans

Unit Linked Insurance

plans

Bharti axa life strives to be the preferred company in financial protection and wealth

management in India through its commitment to Quality , Dedication to customers and

Continual Improvement in every aspect of business and customer relations.

PRODUCTS AND SERVICES PROFILE :

The products of bhartiaxa Insurance Company limited are as follows

Protection Plans :

• Bharti AXA Life eProtect

• Bharti AXA Life Elite Secure

• Bharti AXA Life Family Income Secure

• Bharti AXA Life Premium Waiver Rider

Wealth Creation With Protection Bharti AXA Life Guaranteed Plans

– Bharti AXA Life Flexi Save

– Bharti AXA Life Monthly Income Plan

– Bharti AXA Life AajeevanSampatti

Health Plans:

• Bharti AXA Life Triple Health Insurance Plan

• Bharti AXA Life Hospi Cash Benefit Rider

Features of products :

Bharti AXA Life e-Protect

• Plan which protects your family.

• A Unique {Family Care} Benefit.

• Reward for Non-Smokers.

• Hassle FREE Process.

• Tax [Benefits].

Bharti AXA Life AajeevanSampatti

Lifelong Benefits.

• DISCOUNT on opting Higher Sum Assured

• Guaranteed {Payouts} Benefit.

• Cash Bonuses.

• Tax [Benefits].

Bharti AXA Life Triple Health Insurance Plan

Claim for up to a maximum of three times

• Waiver of Premium

• Sum Assured on critical illness

• Maturity [Benefit]

• Death [Benefit]

• Tax [Benefits]

Bharti AXA Life Triple Health Insurance Plan

• Claim for up to a maximum of three times

• Waiver of Premium

• Sum Assured on critical illness

• Maturity [Benefit]

Health Insurance Plan - Easy Health Plan

• Extremely affordable protection.

• Easy health covers you with a single premium at one go for 3 years.

• Daily Hospital Cash Benefit options.

• Get additional protection in case of hospitalization due to an accident and for

hospitalization in an ICU.

• Get Well Soon benefit for continuous hospitalization of 7 days or more

• Tax benefits

AREAS OF OPERATION :

International presence :

• Bhartiaxa insurance company operates in France and has a run –off account in

Paris.

• Overseas premium of 259.19 crores in 2012-2013

Domestic presence :

Four regional offices were opened during FY 2011-2012 in Raipur, Vizag and

Guwahati taking the total organization strength to 26 regional offices and 145 divisional

offices and 256 branch offices and 84 Extension counters.

Regional Office in Karnataka state :

Bhartiaxa life Insurance Company LTD.

#15,Upper Ground floor,Corporate court,Infantry road,Bangalore-560001

Ownership pattern :

The Bhart iaxa Insurance company limited is fully owned by government of India public

sector undertaking unit. Major share holders and shares are held under government of

India.

INFRASTRUCTURE FACILITY :

The year 2008-09 was another eventful year for the Informational Technology

department. The biggest achievement during this financial year was the complete roll out

of core software (ONLIAS) across the country in all offices and extension counters. It is

now possible for customers to make payment of their premium and also lodging of their

claims at any offices. This has enabled concurrent users across all offices, access to a

centralized system making it one of the largest centralised installations of core insurance

applications processing over one crore policy documents and over six lakhs claim per

annum.

Other projects during the Year :

INLIAS Support – Functioning of Helpdesk

Provides support from 8.00 AM to 6.00 PM on all working days and from 10.00 AM to

4.00 PM on Holidays.The results of the helpdesk have been extremely encouraging and

the call resolution rate works out to cover 99 % at any point of time.

Web Portal :

Portal will extend the reach of core insurance application to various segments like

potential customers , Agents, Brokers etc.Portal also provides for a full fledged grievance

resolution module integrated with the required workflow.

Office Renovation :

To attract customers.

To optimise use of premises.

COMPETITORS INFORMATION :

There are 3 public sector life insurance companies in race with the 16 private life

insurance companies.

The paid up capital of each public sector life Insurance company is Rs.100 crore.

Private companies with a minimum paid up capital of Rs 1billion should be

allowed to enter the industry.

No company should deal with both life and general insurance product through a

single entity

Foreign companies may be allowed to enter the industry in collaboration with the

domestic companies and their share should not exceed 26 % as on date.

Major competitors :

Public Sector Companies :

National Insurance Company Limited

New India Assurance Company Limited

United India Insurance Company Limited

Private Sector Companies :

LIC , ING VYSYA ,BIRLA SUN LIFE ,BAJAJ ALLIANZ , MAX NEW YORK ,

KOTAK MAHINDRA ,AVIVA etc

Achievements and Awards :

2014 :

IES Award: Excellence Award by the Institute of Economic Studies

Bharti AXA General Insurance was awarded the Excellence award by the Institute of

Economic Studies in March 2014. This award cuts across industries and is not restricted

to the finance sector.

BFSI: Best Insurance Company in the Private Sector - General 2014

Bharti AXA General Insurance was proclaimed the 'Best Insurance Company in the

Private Sector - General' by the World HRD Congress at the BFSI Awards, 2014.

2013 :

Finnoviti: Editor's choice award for service innovation 2013

Bharti AXA General Insurance was awarded the 'Editor's Choice Awards for Service

Innovation', at Banking Frontier's Finnoviti 2013.

Outstanding Performance in Insurance Category Award 2013

Bharti AXA General Insurance received "Outstanding Performance in Insurance

Category for 2013" award at the Hyundai's CCS Vendor Conclave 2013.

FUTURE GROWTH AND PROSPECTS :

Expansion :

Bharti AXA is one of the insurance companies in India showing competitive plans to

expand and start enterprises throughout the country in a short time. The company is

setting a robust architecture to suit various segments of the Indian population. Bharti

AXA plans to roll and expand as it has other connected products such as future confident

and wealth confident products. Bharti AXA is trying to prove its sales effectively

emphasizing its telecommunications experience. Bharti is planning to get partnership in

global insurance.

Benefits

Bharti AXA came into limelight in 2006 November and revealed its interest in insurance.

The company is gaining popularity and being a joint business venture of Bharti and AXA

it is working and already becoming famous in India for various avenues. The tie up of

companies came up with new prospects and the success graph is commendable of Bharti

AXA as within the short time period it has made its mark in the life insurance company

and has spread its name in the Indian market. It globally has 4000 main branches that

reveal fast growth. Owing to its reliable policies, more and more people are connected

and connecting to Bharti AXA by opting to various life insurance plans as per their need.

Mckinsey’s 7s FRAME WORKThe 7s model is better known as Mckinsey’s 7s.This is because the two persons ,who

developed this model Tom peter and Robert Waterman, have been consulted at Mckinsey

and company at that time .They published their 7-s model in their article “structure not an

organization in “ 1980 and in their books “the art of Japanese management in 1981 and in

search of excellence in 1982”

Mckinsey’s 7s frame work of Bharti Axa Insurance

company Ltd

STRUCTURE :

A structure defines how activities such as task allocation, coordination and supervision

are directed towards the achievement of organizational aims.It can also be considered as

the viewing glass or perspective through which individuals see their organization and its

environment.

SYSTEM :

It means a set of protocols which are identified to carry out the activities in a prescribed

manner. This should be carried by the organization in all situations; system differs from

organization to organization. There are various systems like performance management

system, production systems. Here let we see the performance management system.

Performance management system :

Considering the boom in the Insurance segment and growth possibilities it offered, Bharti

AXA required a HRMS solution that would support fast expansion of business and be

implemented quickly. The solution also had to be flexible in order to accommodate

certain specific processes followed by the company.

The HRMS solution should support single Employee database access and support

uniform processes across locations. The system is to be capable of rolling out

Performance Appraisal with a quick turnaround time.

The Adrenalin Solution :

The solution offered by Adrenalin was an enterprise HRMS suite, which was used to

capture employee information, with access to all employees through self service. The

solution also included Performance Management system, Attendance integrated with

leave management, Claims and Reimbursement and a standardized Separation module.

Benefits :

The benefits realized by Bharti AXA are as follows:-

Access to distributed employee and HR (process owners) base with role based

access control

Better data management enabling quick access to data by process owners. Also,

eliminating manual documentation.

Accurate capture of attendance and leave data of all employees resulting in

accurate payroll and cost savings

STYLE :

Within the framework of 7s model style refers to patterns of actions,the way

management behaves and collectively spends its time to achieve organization

goals.Bhartiaxa follow

Transactional :

Managers using the transactional leadership style receive certain tasks to perform

and provide rewards or punishments to team members based on performance

results. Managers and team members set predetermined goals together, and

employees agree to follow the direction and leadership of the manager to

accomplish those goals. The manager possesses power to review results and train

or correct employees when team members fail to meet goals. Employees receive

rewards, such as bonuses, when they accomplish goals.

Transformational :

The transformational leadership style depends on high levels of communication

from management to meet goals. Leaders motivate employees and enhance

productivity and efficiency through communication and high visibility. This style

of leadership requires the involvement of management to meet goals. Leaders

focus on the big picture within an organization and delegate smaller tasks to the

team to accomplish goals.

STAFF :

It refers to the quality of people in the enterprise and the socialization into

organization culture. Traditionally staff is not treated in the above two

ways .Firstly, there will be appraisal systems,payscale & formal training,

secondly,the employee morale,attitude,motivation and behaviour are considered.

In Bharti axa Insurance staff are handled in a nice & in a humanly manner.

Employee recruitment policy and training is laid by head office and employees

recruitment at certain level is also done at regional offices.Currently there are 250

employees in our branch.

SKILLS :

Skills refers to core competencies of the company as well as that of its staff. It is the

ability that a person requires to perform the tasks in the company.The skills differ from

person to person, and also it is based on the work.In present situation there is more

importance for multi skilled persons. Skills refer to distinctive capabilities of personnel or

the organizations as a whole. Skills are that for which the staff will develop appropriate

new skills in the setting of a learning environment.

Steps taken to impart necessary skills :

Human Resource Department is responsible for arranging and coordinating the

training programs to be conducted in the organization. The basic objective is to upgrade

and improve the available skills and to train the human resource in specific skills areas in

tandem with the demanding service standards, latest technologies and management

principles.The HOD’s by providing the information on programs conducted by the

institutes .

On the job training :

All the newly recruited employees will be trained and the existing employees are on

continuous traing programs by the qualified staff of the company’s training centres.

Off the job training :

Regional training centres are working to their maximum capacity while imparting

foundation training programs.Pre-promotion training for SC/ST employees apart from

routine ,technical and IT programs.Mandatory Foundation Training course to impart

employees were conducted at selected Regional Training Centres

STRATEGY :

Company strategy is a term that is used to describe the combination of policies,

processes, and procedures that are employed to help a company operate according to

its mission statement and achieve its short-term and long-term goals

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

multi-product platform

To adapt AXA's best practice blueprints as a sound platform for efficient and 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

SHARED VALUES :

Shared value is a management strategy focused on companies creating measurable

business value by identifying and addressing social problems that intersect with their

business. The shared value framework creates new opportunities for companies, civil

society organizations, and governments to leverage the power of market-based

competition in addressing social problems.

Shared values Include :

Professionalism

Team Spirit

Innovation

Integrity

.

SWOT ANALYSIS :

The overall evaluation of company’s Strength , Weakness ,Opportunities , Threats is

called SWOT analysis .

Internal Environment analysis ( Strengths / Weakness Analysis)

Each business needs to evaluate its internal strengths and weakness.By that internal

strength they can overcome their weakness and threats and utilize the stepping

opportunities.Clearly,the business does not have to correct all its weakness, nor should it

gloat about all its strengths.The question that arises it whether the business should limit

itself to those opportunities where it possesses the required strengths or whether it should

consider better opportunities where it might have to acquire or develop certain strengths.

External Environment Analysis (Opportunities and Threats Analysis)

In general a business unit has to monitor key macro environment forces and significant

microenvironment that affect marketing intelligence system to track trends and important

developments. For each trend or development, management needs to identify the

associates opportunities and threats.

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

Higher market share growth.

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.

Lower believability than Lic

Strong competition from other players

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 lakh policies per year with sum assured of nearly Rs 58000

cores.

Higher awareness of insurance products attracts customers to use insurance

services and products.

Higher foreign investment in insurance has increased technological development

and branch expansion etc.

Prospective customers has provided opportunity for the company to increase their

operation to a wider customer base.

THREATS

Higher premium rates to the agents is one of disadvantages to company

Higher inflation rate can affect the cost for the company in providing services

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

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

Financial Statement :

Form L-2-A-PLBharti AXA Life Insurance Company Limited

Profit & Loss Account for Quarter Ended 30 June, 2013

Shareholders’ Account (Non-Technical Account)   

(Rs.'000)

ParticularsFor the Quarter Ended For the Quarter Ended

30 June, 2013 30 June, 2012 

     

Amounts transferred from Policyholders' Account (Technical Account) (612,582) (589,713)Income from Investments

   

(a) Interest, Dividends and Rent – Gross 25,426 33,915(b) Profit on Sale/Redemption of Investments 6,282 6,214(c) (Loss on Sale/ Redemption of Investments) (2,264) (3)Other Income - -Total (A) (583,138) (549,587)

Expense other than those directly related to the insurance business 2,366 8,985Bad debts written off - -Provisions (Other than Taxation)

   

(a) For Diminution in the value of investments (net) - -(b) Provision for Doubtful Debts - -(c) Others - -Contribution to the Policyholders Account (Technical Account) - -Total (B) 2,366 8,985

Profit/ (Loss) before Taxation (585,504) (558,572)Provision for Taxation - -Profit / (Loss) after Taxation (585,504) (558,572)

Appropriations   

(a) Balance at the beginning of the period (18,675,893) (17,482,991)(b) Interim dividends paid during the period - -(c) Proposed Final Dividend - -(d) Dividend Distribution on Tax - -(e) Transfer to Reserves/Other Accounts - -     

Profit/ (Loss) carried to the Balance Sheet (19,261,396) (18,041,563)

Earnings Per Share (in Rs.)   

(Face Value Rs.10 Per share)   

Basic and Diluted (0.21) (0.26)

     

Bharti AXA Life Insurance Company Limited

Balance Sheet as at 30 June, 2013

     

(Rs.'000)

Particulars ScheduleAs at 30 June As at 30 June

2013 2012   

       

Sources of Funds     

Shareholders' Funds:     

Share Capital L-8 & L-9 18,457,010 17,186,510Share Application Money Pending Allotment

 

- 300,000Reserves and Surplus L-10 1,939,442 1,859,942Credit/(Debit) Fair Value Change Account (Net)

 

(19,109) (2,967)       

Sub-Total 

20,377,343 19,343,485

Borrowings L-11 - -Policyholders' Funds:

     

Credit/(Debit) Fair Value Change Account (Net) 

(47,666) (3,934)Policy Liabilities

 

2,449,533 1,284,231Insurance Reserves

 

- -Provision for Linked Liabilities

 

16,927,745 15,964,601

       

Sub-Total 

19,329,612 17,244,898Funds for Future Appropriations

 

201,814 116,326Discontinuance Fund on account of non payment of premium

 

740,073 218,550Discontinuance Fund others

 

- -Total

 

40,648,842 36,923,259

Application of Funds     

Investments     

Shareholders’ L-12 1,259,216 1,606,952Policyholders’ L-13 2,431,212 1,283,218Assets Held to Cover Linked Liabilities L-14 17,667,818 16,183,151

Loans L-15 - -

Fixed Assets L-16 85,371 108,517

Current Assets     

Cash and Bank Balances L-17 204,254 156,866Advances and Other Assets L-18 1,098,289 1,068,365

Sub-Total (A) 

1,302,543 1,225,231

Current Liabilities L-19 1,277,063 1,467,125Provisions L-20 81,652 58,249

   

1,358,715 1,525,374

       

Net Current Assets (C) = (A – B) 

(56,172) (300,143)

Miscellaneous Expenditure L-21 - -(To the extent not written off or adjusted)

     

Debit Balance of Profit and Loss Account 

19,261,397 18,041,564       

Total 

40,648,842 36,923,259

       

CHAPTER III

THEORETICAL BACKGROUND OF THE STUDY

Risk

A person carries various types of risk in his life term and it can be classified in many

ways. But first we need to understand the meaning of risk. It is difficult to give the exact

definition of risk but it can be defined in the respect of insurance sector as the

possibilities of unfavourable event happing like death or physical damage.

The various types of the risks are following:

Market risk

Interest rate risk

Inflation risk

Political risk

Financial risk

Pure risk

Particular risk

Out of all these risk the insurable risk are following:

Financial risk: The outcome of risk which can be measured in financial term like

loss of life etc.

Pure risk: Pure risks are those risks where there is no possibility of making a

profit.

Particular risk: Exposure to loss from a situation associated with

specific individual events, such as a break-in, fire, or robbery. Particular risk are

usually insurable.

Risk analysis

As there are different types of in insurance police in the market it becomes difficult for a

customer to understand the actual value of its life i.e. Human Life Value. Before

buyingan insurance police a person should to knowing the purpose for which he is buying

the insurance and how to analyse its value.It might be confusing for many that for what

value they should buy an insurance policies i.e. how they are worth for.

AXA Life AajeevanSampatti+

Is there a plan that secures me for life and provides guaranteed payouts?

Life CoverUp to 100 years.

A plan that offers dual advantage of guaranteed* annual payouts and protection up to age

100 years

Limited Pay Period:

You may choose a Premium Payment Term of 10 years or 15 years at inception of your

Policy.

Guaranteed Annual Payouts:

This plan assures Guaranteed Annual Payouts until Maturity (except in the policy year

coinciding with maturity). Once you complete the 10th Policy year, you will start

receiving an annual payout until maturity or death of Life Insured, whichever is earlier,

subject to policy being in-force.

Cash Bonuses:

This Policy also offers non-guaranteed cash bonuses subject to the policy being in-force.

The Policy participates in the performance of the participating insurance fund and surplus

is distributed as bonus. This non-guaranteed benefit (as percentage of Sum Assured on

Maturity) is paid out as a cash bonus every year starting from the 6th Policy year, until

maturity or death, whichever is earlier. No bonuses shall be payable in the first 5 policy

years.

Life Insurance benefit:

Your coverage under the Policy will continue until you reach the age of either 100 or 85

years as per the Policy term selected. In case of unfortunate event of loss of life of Life

Insured (applicable even in case of minor lives), subject to the Policy being in-force, the

Sum Assured payable on death will be higher of:

a) Sum Assured on Maturity OR

b) 11 times Annualised Premium OR

The death benefit payable shall be higher of Sum Assured payable on death or 105% of

all premiums paid (excluding an underwriting extra premium). In case of death during the

Grace period, the Death Benefit after deducting the unpaid due premium shall be paid..

Bharti AXA Life Monthly Income Plan+

A Plan that offers guaranteed* Monthly Income withthe upside of non-guaranteed bonuses

Annual Reversionary Bonuses:

This policy participates in the performance of the participating insurance fund and

surplus is distributed as bonuses. The actual bonus rate declared by the Company is

dependent on the performance of the participating insurance fund. Non-Guaranteed

Bonuses are vested from end of 1st policy year onwards and are payable at Maturity or on

death,whichever is earlier, subject to the policy being in force. Apart from this, Bharti

AXA Life Monthly Income Plan+ is a Limited premium payment, traditional

participating plan. You pay premiums for the chosen PremiumPayment Term. At the end

of the premium payment term, you start receiving your Guaranteed Monthly Income until

Maturity. On Maturity, you receiveNon-Guaranteed accrued Annual Reversionary

bonuses and Non-Guaranteed Terminal bonus.

The Death Benefit:The Death Benefit payable will be the higher of thefollowing, subject

to the policy being in force:

a) The Sum Assured on Death Plus Non Guaranteed simple reversionary bonuses and non

guaranteed terminal bonus paid as a lump sum Or

b) 105% of all premiums paid (excluding underwriting extra).

Bharti AXA Life Secure Savings Plan

A plan that provides the twin benefits of guaranteed* additions and comprehensive

protection for your family

Maturity Benefit:

On Maturity after 15 or 20 years you will get:-

■ 100% of Sum Assured; plus

■ Guaranteed Additions

Death Benefit:

In the unfortunate event of death of life insured, provided all due Premiums, till the date

of death have been paid, the nominee shall receive Higher of

■ Basic Sum Assured plus Guaranteed Additions on Premiums paid OR

■ 10 times the base Annualised Premium OR

■ 105% of Premiums paid till date of death (excluding any extra Premium)

Annualised Premium does not include modal factors or underwriting extra

Bharti AXA Life Premium Waiver Rider

A rider that enables your family to enjoy the benefits ofthe base policy by waiving off the

premiums, in case of an unfortunate event.

Bharti AXA Life Premium Waiver Rider offers financial protection in case of death of

the Life Insured.

Financial Protection for your loved ones:

On death of the Policyholder, 100% of all the future base premiums at the original /

current level when due towards the policy will be paid and the rider will cease to exist.

Policyholder & the Life Insured under the base policy should be different.

Paying Rider Premium:

The Life Insured will have to pay the Rider Premium for the Premium Waiver Rider as

per the applicable Rider Premium rates. The Rider term will be the same as the premium

payment term of the base Policy and the rider premium will be paid in the same mode as

the premium for the base Policy. The Rider Premium payable by you would depend on

the age at entry, gender of the Life Insured and the term chosen.

Bharti AXA Life Secure income Plan

A plan that provides the twin benefits of guaranteed* additions and comprehensive

protection for your family. A traditional non participating non linked endowment life

insurance plan Down payment for your dream house. Better education for your children.

A secure post retirement period. Planning your life stages and assigning financial goals to

them is imperative. You should be prepared for the demands that every life stage brings

with it, by saving regularly. Along with this, you need to protect your family and loved

ones against any eventuality.

For Example:

If you choose a policy term of 20 years and an Annualised Premium of 20,000, then the

Guaranteed Addition percentage will be 10% (as given intable above) and the Guaranteed

Additions will be calculated as follows :

Guaranteed Additions at Maturity = 10%* (20,000 + 40,000 + 60,000+…..

+ 4, 00,000) = 4, 20,000

CHAPTER IV

ANALYSIS AND INTERPRETATION OF DATA

DATA ANALYSIS:

1. Returns are calculated by taking the Net Present Value From April 2012 to April 2013

ASSUMPTIONS:

1. An investor wants to invest an amount of rupees 5000 every month in life insurance

product of Aajeevan sampatti of Bharti Axa

2. He is willing to invest only Aajeevan sampatti.

Investor’s amount will be invested in aajeevan sampatti of that company after paying the

company charges. After payment of charges, the remaining amount (contribution) will be

invested in equity fund and it will be converted into units by dividing the contribution by

the respective day’s NPV. Charges differ from company to company. After deducting all

those charges annually fund management charges is deducted by cancellation of units.

After the lock in period, investor can do partial withdrawal or whole withdrawal. The

returns of the investor is calculated by finding the total number of units and multiply it

with the NPV value on the day of withdrawal to find the total value. Then the invested

amount is deducted from the total value and the result is divided by the total investment.

To find out the return multiply with 100.

Risk assessment

Then we also calculated risk involved in each type of life insurance plan based on their

return or NPV .

The NPV on 1-4-2012 and the NPV on 1-04-2013.

Volatility is calculated as under:-

Highest NPV during the period – Lowest NPV during the given

Volatility = ---------------------------------------------------------------------------

Highest NPV during the period

Table 1: Net present value of AAjeevan sampatti for the year 2012-13

Month NPVAPRIL 2012 23.4790

MAY 2012 23.3460

JUN 2012 21.9805

JULY 2012 21.9125

AUGUST 2012 22.324

SEPTEMBER 2012 21.7975

OCTOBER 2012 20.1290

NOVEMBER 2012 19.8400

DECEMBER 2012 19.9140

JANUARY 2013 19.8000

FEBRUARY 2013 19.6675

MARCH 2013 19.4175

APRIL 2013 20.7340

Graph 1: showing NPV of Aajeevan sampatti of Bharti Axa life insurance company for the year 2012-13

Apr-12

May-12

Jun-12Jul-1

2

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

0

5

10

15

20

25

Bharti axa LIFE INSURANCE

Month

NpV

INTERPRETATION:

In the month April 2012 the NPV of the company was 23.4790 then in the month of Jun

2012 NPV of the company suddenly decreased to 21.9805 which is less compare to the

NPV in the month April and later on in the month of August the value of the NPV

increased to 22.324 later on it went on decreasing due do market slowdown till march

2013 .Due to decrease in the value of the NPV the Risk comes to 17.2984 and Returns

comes to 39.4156%

Analysis Bharti Axa life insurance company ltd.

Table 1.1 Aajeevan sampatti Purchased by investor of Bharti Axa life insurance co.

Month NPV Premium Contribution in %

Monthly Charges

Contribution

RevenueRs.

Apr-12 23.4790 5000 73 15 3635 154.8192

May-12 23.3460 5000 73 15 3635 155.7012

Jun-12 21.9805 5000 73 15 3635 165.3739

Jul-12 21.9125 5000 73 15 3635 165.8871

Aug-12 22.324 5000 73 15 3635 162.8292

Sep-12 21.7975 5000 73 15 3635 166.7922

Oct-12 20.1290 5000 73 15 3635 180.8852

Nov-12 19.8400 5000 73 15 3635 183.2157

Dec-12 19.9140 5000 73 15 3635 182.5349

Jan-13 19.8000 5000 73 15 3635 183.5859

Feb-13 19.6675 5000 73 15 3635 184.8227

Mar-13 19.4175 5000 73 15 3635 187.2023

Apr-13 20.7340 5000 73 15 3635 175.3159

Total revenue 2248.6354

Revenue Value

46623.2064

Investment 65000

Returns 39.4156

Calculation of Returns

Returns = (Total investment – Total revenue value / Total revenue value ) 100

= (65000 – 46623.2064 /46623.2064) 100

= 39.4156

Risk Calculation

Risk =( Highest Net Present Value – lowest Net Present Value / Highest Net Present

Value )100

= (23.479 – 19.4175 / 23.479) 100

= 17.2984%

TABLE 2: NPV OF MONTHLY INCOME PLAN OF BHARTI AXA FOR THE

YEAR 2012-13

Month NPV

APRIL 2012 56.3500

MAY 2012 56.6050

JUN 2012 48.9250

JULY 2012 48.8700

AUGUEST 2012 51.4450

SEPTEMBER 2012 49.1450

OCTOBER 2012 39.4450

NOVEMBER 2012 35.6850

DECEMBER 2012 36.4000

JANUARY 2013 34.8450

FEBRUARY 2013 34.2650

MARCH 2013 33.4050

APRIL 2014 39.9150

GRAPH 2: NPV OF Bharti axa life insurance company \

Apr-12

May-12

Jun-12Jul-1

2

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

0

10

20

30

40

50

60

Bharti Axa Monthly income plan

Month

NAV

INTERPRETATION:

Bharti axa has highest net present value compare to all other company its net

present value in the month of April 2012 was 56.350 and the value is changed slightly in

the month on may 2012 then in the month of Jun 2012 NPV of the company is decreased

by 7.68 so in the month of Jun the NPV of the company was 48.9250 which went on

decreasing till July to 51.4450 but then its decreased due to loss in the funds then its went

on decreasing till April 2013 now the present net present value in the month of April is

39.9150.

Due to the decrease in the net present value of the company the percentage change

in the NPV is increased to 40.9858% which is high risk compare to other company and

the return of the company is 44.5986% which is High compare to Bharti Axa life

insurance company

Table 2.1: Monthly income Plan Purchased by the investor of Bharti Axa life insurance

Month NPV Premium Contribution in %

Monthly charges

Contribution Revenue Rs.

Apr-12 56.3500 5000 73 15 3535 64.5075

May-12 56.6050 5000 73 15 3635 64.2169

Jun-12 48.9250 5000 73 15 3635 74.2974

Jul-12 48.8700 5000 73 15 3635 74.3810

Aug-12 51.4450 5000 73 15 3635 70.6580

Sep-12 49.1450 5000 73 15 3635 73.9648

Oct-12 39.4450 5000 73 15 3635 92.1536

Nov-12 35.6850 5000 73 15 3635 101.8635

Dec-12 36.4000 5000 73 15 3635 99.8626

Jan-13 34.8450 5000 73 15 3635 104.3191

Feb-13 34.2650 5000 73 15 3635 106.0849

Mar-13 33.4050 5000 73 15 3635 108.8160

Apr-13 39.9150 5000 73 15 3635 91.0685

Total Unit 1126.1938

Unit value 44952.0255

Investment 65000

Returns 44.5986

Returns = (65000 – 44952.0255 / 44952.0255) 100 = 44.5986

Risk = (56.605 – 33.405 / 56.605)100 = 40.9858 %

Analysis Bharti Axa Secure savings plan.

Table 3 : NPV of Bharti Axa Secure savings Plan .

Month NPV as on 2012-13

Apr-12 18.0499

May-12 17.7124

Jun-12 17.5374

Jul-12 18.1797

Aug-12 17.9632

Sep-12 15.9740

Oct-12 15.7968

Nov-12 15.6908

Dec-12 15.5100

Jan-13 15.4479

Feb-13 15.1516

Mar-13 15.1597

Apr-13 16.4646

Graph 3: NPV of BHARTI AXA.

Apr-12

May-12

Jun-12Jul-1

2

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

13.5

14.5

15.5

16.5

17.5

18.5

bharti Axa Secure Savings Plan

MONTH

NPV

INTERPRETATION:

The Net present value of the Bharti Axa life insurance company was less compare to

Bajaj Allianz and LIC of India its NPV start for 18.0499 in the month of April 2012 and

it went on decreasing till July in the month of July the Net present value came to normal

value which is 18.1797 slightly increased compare to previous month and then it went on

decreasing due to Market less productivity because of less productivity net present value

of the company decreased till the month of April 2013 so the present NPV of the

company is 16.4646

Returns of the company is less compared to Bajaj Allianz and LIC the returns of the

company is 37.2856 and the risk involved in the returns is 16.6565 which is Half of the

Returns

Table 3.: Secure savings plan Purchased by investor of Bharti axa

Month NPV Premium Contribution in %

Monthly charges

Contribution Revenue Rs

Apr-12 18.0499 5000 73 15 3535 201.3862

May-12 17.7124 5000 73 15 3635 205.2235

Jun-12 17.5374 5000 73 15 3635 207.2713

Jul-12 18.1797 5000 73 15 3635 199.9483

Aug-12 17.9632 5000 73 15 3635 202.3582

Sep-12 15.9740 5000 73 15 3635 227.5573

Oct-12 15.7968 5000 73 15 3635 230.1099

Nov-12 15.6908 5000 73 15 3635 231.6644

Dec-12 15.5100 5000 73 15 3635 234.3649

Jan-13 15.4479 5000 73 15 3635 235.3071

Feb-13 15.1516 5000 73 15 3635 239.9087

Mar-13 15.1597 5000 73 15 3635 239.7805

Apr-13 16.4646 5000 73 15 3635 220.7767

Total Unit 2875.6570

Unit value 47346.5422

Investment 65000

Returns 37.2856

Calculation of Returns = (65000 - 47346.5422 / 47346.5422) 100 = 37.2856Calculation of Risk = (18.1797 – 15.1516 / 18.1797 ) 100 = 16.6565

ANALYSIS OF life premium waiver raider of Bharti Axa

TABLE 4: NPV OF Bharti Axa Life premium waiver Raider

Month NPV as on 2012-13Apr-12 22.2400

May-12 22.1735

Jun-12 21.0585

Jul-12 21.0290

Aug-12 21.4950

Sep-12 21.1155

Oct-12 19.5505

Nov-12 19.3775

Dec-12 19.6165

Jan-13 19.613

Feb-13 19.5395

Mar-13 19.4795

Apr-13 20.5715

Graph 4: NPV OF life premium waiver raider of Bharti Axa

Apr-12

May-12

Jun-12Jul-1

2

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

16

20

24

bharti axa life premium waiver raider

Month

NAV

INTERPRETATION

Bharti axa NPV at the begging is 22.2400 and in the next month its slightly reduced and

it went on reducing till the month of March 2013 in the month of March 2013 the NPV is

19.4797 then in the next month its value is increased by 20.5715 which is positive sign

for the company and the returns of the company is 36.9065 and risk involved in the

returns is 12.4258

TABLE 4.1 : life premium waiver raider Purchased by investors of Bharti Axa

Month NPV Premium Contribution in %

Monthly charges

Premium Revenue Rs

Apr-12 22.2400 5000 73 15 3635 163.442

May-12 22.1735 5000 73 15 3635 163.9344

Jun-12 21.0585 5000 73 15 3635 172.6144

Jul-12 21.0290 5000 73 15 3635 172.8565

Aug-12 21.4950 5000 73 15 3635 169.1091

Sep-12 21.1155 5000 73 15 3635 172.1485

Oct-12 19.5505 5000 73 15 3635 185.9287

Nov-12 19.3775 5000 73 15 3635 187.5887

Dec-12 19.6165 5000 73 15 3635 185.3032

Jan-13 19.613 5000 73 15 3635 185.3363

Feb-13 19.5395 5000 73 15 3635 186.0334

Mar-13 19.4795 5000 73 15 3635 186.6352

Apr-13 20.5715 5000 73 15 3635 176.7008

Total Unit 2307.9334Unit value 47477.6519Investment 65000Returns 36.9065

Calculation of Returns = (65000 - 47477.6519 / 47477.6519) 100 = 36.9065

Calculation of Risk

= (22.24 – 19.4765 / 22.24) 100 = 12.4258 %

ANALYSIS OF BHARTI AXA LIFE INSURANCE COMPANY Life secure income plan

TABLE 5: NPV OF Bharti Axa life secure Income plan

MONTH NPV AS ON 2012-13

Apr-12 18.4099May-12 17.7124Jun-12 17.5374Jul-12 18.1797Aug-12 17.9632Sep-12 15.9740Oct-12 15.7968Nov-12 15.6706Dec-12 15.5100Jan-13 15.4479Feb-13 15.1516Mar-13 16.1597Apr-13 16.4646

GRAPH 5 : NPV OF life secure income plan

Apr-12

May-12

Jun-12Jul-1

2

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

05

101520

Bharti Axa life secure income plan

NAV

Month

NAV

INTERPRETATION:

Net present value of the company was 18.4099 in the month of April 2012 which is equal

to HDFC Standard life insurance company later on its went of decreasing till the date

July 2012 in the month of July NPV raised to 18.1797 after that the NPV went on

decreasing till March 2013 now the opening NPV of the company is 16.4646 in the

month April 2013.

Month NPV Premium Contribution in %

Monthly charges

Premium Revenue Rs

Apr-12 18.4099 5000 73 15 3635 197.4481May-12 17.7124 5000 73 15 3635 205.2235

Jun-12 17.5374 5000 73 15 3635 207.2713

Jul-12 18.1797 5000 73 15 3635 199.9483

Aug-12 17.9632 5000 73 15 3635 202.3582

Sep-12 15.9740 5000 73 15 3635 227.5573

Oct-12 15.7968 5000 73 15 3635 230.1099Nov-12 15.6706 5000 73 15 3635 319.0688

Dec-12 15.5100 5000 73 15 3635 234.3649

Jan-13 15.4479 5000 73 15 3635 235.3071

Feb-13 15.1516 5000 73 15 3635 239.9087Mar-13 16.1597 5000 73 15 3635 224.9423

Apr-13 16.4646 5000 73 15 3635 220.7767

Total Unit 2944.2851

Unit value 48476.4765Investment 65000

Returns 34.0857

Table 5.1: Life secure Income plan Purchased by Investors of bharti axa

Calculation of Returns

= (65000 - 48476.4765/ 48476.4765) 100 = 34.0857

Calculation of Risk = (18.4099 – 15.5100 / 18.4099) 100 = 15.7519%

Risk Return analysis of Bharti AXA Products

QUESTIONARIES:

1) Table showing the age of respondents

Age below 20 years 25

20 – 40 years 45

40 – 60 years 15

60 – 80 years 15

age

< 20 yers20 - 40 years40 - 60 years60 - 80 years

Interpretation:

The above table shows that out of 100 respondents 20 respondents are below the age 20 and 45

are between 20 – 40.

Page 54

Risk Return analysis of Bharti AXA Products

Question 2:

2) Table showing the respondent concern in buying insurance product.

Child education 25

Retirement 15

Childs marriage 25

Medical illness 35

concern

childs educationretirementchilds marriagemedical illness

Interpretation:

The above graph shows that respondents prefer to go for medical illness which is 35 % and they

prefer least for retirement which is 15 %

Question 3 :

Table shows factor which they will concern about when purchasing a product?

Page 55

Risk Return analysis of Bharti AXA Products

Allocation 45Fund management 20Fund administration 15All of the above 20

factor

allocationfund managementfund administrationall of the above

Interpretation:

Graph shows that 45 % prefer to go for allocation and they they prefer lest for fund

administration .

Question 4:

Table showing the respondents opinion of bharti axa product compare to other insurance

company product.

Page 56

Risk Return analysis of Bharti AXA Products

Bharti axa 8

Other insurance products 92

opinion

bharti axaothers

Interpretation:

Out of 100 respondents 8 % prefer bharti axa because of new in the insurance industry and 92 %

go for other products

Page 57

Risk Return analysis of Bharti AXA Products

CHAPTER V

SUMMARY OF FINDINGS, CONCLUSIONS,RECOMMENDATIONS

.

FINDINGS

Based on the data which is presented in Chapter 3 and the personal interviews of few

respondents from the whole sample size here are the results which are drawn from the

interpretation of data:

Majority of people recognized the Bharti AXA Life Insurance and recalled its

advertisement but still there is a lot of scope of improvement, and the brand name of

BHARTI associated with Bharti AXA Life Insurance gives customers more trust and I

found out that many respondents were even not aware that Bharti AXA Life Insurance is

a BHARTI product.

People perceive insurance as necessity and still a very large segment of middle class

segment customers is to be tapped i.e. there is a large scope of expansion for companies.

Among all the factors that initiate the customer to an insurance policy respondents have given

the top priority followed by features.

The findings drawn during the project are as follows:

Most of the customers prefer to go for protection plans instead of going for other plans.

Most customers aims at getting much return for their insurance with less risk

Customers prefer to go for Aajeevan sampatti because in this plan the risk is less and

return is more...

Bharti axa company gets much of the customers who prefer to go for Aajeevan sampatti

and Monthly income plan where there are more returns compare to other products

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Risk Return analysis of Bharti AXA Products

CONCLUSION

Based on the findings it can be said that there is a very bad response from the survey this survey

shows that in the present scenario Bharti AXA life is very far away from his competitors. But

there are lots of scope of growth in insurance market due to rising level of disposable income of

individuals and unsecure future of customers and in addition to these factors the present climatic

condition have made a perception among customers that insurance are necessity products just as

bank account and loan or any financial scheme etc.

Bharti AXA Life in this scenario, has a fair image in the minds of customers, though some

customers think that Bharti AXA Life was primarily concentrating on high class people and now

they are concentrating on every level of market or mass market, but they still have a trust over

the brand name of Bharti, and if it continuously upgrades its products and services then it can

surely become the successful insurance policy provider company.

Insurance sector in India is growing at a very high rate and it is expected to grow more in future.

This study had made an attempt to understand the various risk involves in investing in insurance

an how to manage those risk.

I observed that most of the people buy an insurance police under someone’s influence and not

according to their requirement. Also there is a very low awareness about need analysis

calculation. Many people do not pay their premium as they did not purchase their policies

according to their requirement. Customer satisfaction plays a very important role in increasing

the market share of the company and it is very hard to get.

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Risk Return analysis of Bharti AXA Products

RECOMMENDATION

In the 2 years of existence in the market it has created a sensation by introducing its most

profitable Unit-Linked Plans and products. The insurer needs to concentrate to make its products

and company much more aware among the public to change the mindset of the people and attract

them towards insurance sector. This can make the recruitment of the potential advisors very well.

To create the awareness among the people,

Customers should be made more aware of need analysis as there is low awareness level

among them.

Insurance companies should take more effort in spreading awareness about need analysis

calculation.

Insurance companies should also give training to their advisors to explain about need

analysis calculation to customer properly as customer how do need analysis are more

satisfied with their policies.

Insurance companies should have a reasonable premium rate as most of the customers

prefer so.

Insurance companies must advise the customers to go for the best products which suits

them based on their income level, which is beneficial for both of them

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Risk Return analysis of Bharti AXA Products

BIBLIOGRAPHY

Options and Futures – Vohra and Bagri , Second Edition , Tata Mcgrill Publication.

Research Methodology- C.R Kothari, edition-2004, reprint 2006 Publisher – New Age International (P) Ltd, publishers Methods of Data Collection, page no- 95 Sampling Fundamentals, page no- 152.

Catalogues of Bharti AXA products.

WEBSITES

• www.irdaindia.org

• www.bharti-axalife.com

• www.wikipedia.org

• www.iirm.in

• www.selling-well.com

• www.insurancejournal.com

Annexure Page 61

Risk Return analysis of Bharti AXA Products

NAME…………………………………..

1) AGE;

a) Below to 20 years [ ]

b) 20-40 years [ ]

c) 40-60 years [ ]

d) Above to 60 years [ ]

2) GENDER;

a) Male [ ]

b) Female [ ]

3) OCCUPATION;

a) Govt. Employee [ ]

b) Private Employee [ ]

c) Self Employee [ ]

d) Other [ ]

4) DO YOU LIVE IN JOINT FAMILY?

a) Yes [ ]

b) No [ ]

5) HOW MANY FAMILY MEMBERS ARE THERE IN YOUR FAMILY?

a) 2-4 [ ]

b) 4-6 [ ]

c) Above 6 [ ]

6) WHICH IS YOUR BIGGEST CONCERN FOR FUTURE?

a) Child education [ ]

b) Retirement [ ]

c) Child’s marriage [ ]

d) Medical illness [ ]

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Risk Return analysis of Bharti AXA Products

7) DO YOU HAVE ANY LIFE INSURANCE POLICY?

a) Yes [ ]

b) No [ ]

8) IF YES, IN WHICH COMPANY AND WHICH PRODUCT?

……………………………………………………………………………

9) DO YOU LOOK AFTER COMPETITION WHEN YOU PURCHASE

PRODUCT?

a) Yes [ ]

b) No [ ]

10) WHICH FACTOR OF THE FOLLOWING YOU WILL BE CONCERN ABOUT

WHILE YOU ARE PURCHASING A PRODUCT?

a) Allocation [ ]

b) Fund management [ ]

c) Fund administration [ ]

d) All of the above [ ]

THANK YOU! FOR YOUR TIME!

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