bajaj aliance insurance
TRANSCRIPT
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Submitted to Bangalore University as per the
partial fulfillment of the requirement for the award
of
“Master of Business Administration”
Submitted By
MOHAMMED LIYAKHATH PASHA
( 04ACCM6044 )
BANGALORE – 560 027
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I wish to take this opportunity to express my heartful thanks to our
beloved principal Mrs. A ANURADHA, Al Ameen Institute of Management
Studies Bangalore, for her valuable guidance, suggestions and
encouragement for completing the internship training.
It is my privilege to thank Mr. NAGESH NAYAK the Sales Team
Manager of BAJAJ ALLIANZ for his valuable suggestions, guidance,
encouragement, and providing me the necessary study materials & other
information through out my study inspite of his busy schedule.
I also express my sincere thanks to faculty members Mr.FILJI
CHERIAN, Mrs. VEDHA BALAJI and Mr.VINAYAK BHAT for their
valuable suggestions, guidance and moral support through out my study.
Last but not least I would like to thank my parents and all my friends who
have helped directly and indirectly to complete this project.
Date:
Place: Bangalore MOHD LIYAKHATH PASHA
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CERTIFICATE
This is to certify that Mr. MOHAMMED LIYAKHATH PASHA of 3rd
Sem MBA has successfully under gone the internship training for 6 to 8
weeks in BAJAJ ALLIANZ Life Insurance Company limited and
submitted a report entitled “An Over All Organizational Study of
BAJAJ ALLIANZ Life Insurance Company Limited” under the
valuable guidance of Mr. Filji Cherian, the faculty member.
We wish him all the best for his future endeavor.
Mr. Filji Cherian Mrs. B A Anuradha
( Internal Guide ) ( Principal )
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DECLARATION
I here by state that this Internship Report entitled “An Overall
Organization Study Of Bajaj Allianz Life Insurance Company Ltd,
Bangalore, Karnataka” submitted to Bangalore university in partial
fulfillment of the requirement for the award of the “Degree Of Master Of
Business Administration” is a record of original work done by me under
the supervision and guidance of Mrs. B A Anuradha, Principal Al-Ameen
Institute Of Management Studies, Bangalore and not submitted for the award
of any other Degree/Diploma or similar prizes.
PLACE: Bangalore
DATE: MOHAMMED LIYAKHATH PASHA
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CONTENTS
Chapter Nos Chapter Names Page Nos
1 Project Design And Study 01
2 Insurance Sector 05
3 Company Profile 12
4 Insurance Plans of Bajaj Allianz Life
Insurance Company LTD
19
5 Human Resource Management 37
6 Sales And Marketing 40
7 SWOT Analysis of Bajaj Allianz 47
8 Problems and Solutions 49
9 Suggestions And Recommendations 53
10 Bibliography 57
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Introduction
Location of study
Need for the study
Objectives of study
Methodology of study
Limitations of the study
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INTRODUCTION
Organizations have become increasingly complex in which the students of
management need to keep abreast of current best practice, legal requirements and
likely trends, This study set out to give an overview of some departments at BAJAJ
ALLIANZ that are relevant to the effective management study.
Location of the study:
The organizational study was undergone at BAJAJ ALLIANZ Life Insurance co.
ltd. Bangalore – 560047 and the duration was of 6 weeks, that is first week of July
to second week of August 2005.
Need for the study:
Being a post graduate student of business administration (MBA), it is essential to
undergo the internship training of 6 weeks in any organization. This is to fulfill the
requirements prescribed by the Bangalore University for awarding the MBA degree.
Further it was a personal interest to choose BAJAJ ALLIANZ Life Insurance for the
study and get an exposure from various departments of the organization.
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Objectives of the study:
To be familiar with working of the said organization.
To understand various function of the organization namely marketing sales
human resource and operations.
To analyze the market position of the said organization.
To study how the theoretical knowledge is made use of in real life.
To identify the strength and weaknesses.
To study acceptance levels of the people towards insurance.
To study the competition and their performance in the insurance industry.
To study the organizational structure.
Methodology of the study
The study is entirely based on the primary data as well as secondary data
The primary data was collected by ‘unstructured interview’ method, which seem to be much appropriate for the study, which is much sensitive in nature. The questions
to the respondents were not fixed and preplanned but being aware of the required
data; questions were posed to the respondents in the unstructured manner keeping in
view to obtain the required data. The responses were quite exhaustive.
The secondary data was collected from the source available like broachers
literatures etc…, and also by visiting the web sites like www.irdaiandia.com,
www.bajajallianz.co.in and www.google.com
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Limitations of the study:
The study on any organization is not complete with out studying the
functional responsibilities of various departments as a whole. Our study is restricted
to a few departments, primarily and specifically the study is with respect to
MARKETING AND SALES. Other departments were not focused much because of
the time factor. We shall always strive and make an effort to bring about more
information of other departments in future, whenever and wherever there’s an
opportunity.
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A brief introduction
Various policies available
Insurance companies existed in the Indian market
Players likely to enter
General LIC’S
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INSURANCE: A BRIEF INTRODUCTION
What Is Life Insurance & what are the benefits of it?
Life Insurance deals with the financial losses incurred incase of Death, Disability,
Disease, and Destitution. It is the only financial product that gives three benefits i.e.
Tax benefit, Protection and Investment. Life Insurance is a contract that guarantees
payment of a stated amount of money to the policyholder on the occurrence of a
stated event. It pays a contracted amount of money on death of the policyholder or
on his survival of a stated period of time. Under some contracts the sum assured is
paid to the policy owner to take care of his old age, children’s education, and
marriage. Insurance can also be used for saving tax or repayment of a loan. Taking
care of all these needs, insurance is one of the easiest and most affordable financial
tools.
Why do I need Life Insurance?
To protect your family and dependants in case of unexpected or premature death or
disability, thus brings about social security.
How much Life Insurance do I need?
Your Life insurance amount depends on your needs, your present financial
circumstances and the objectives you are trying to achieve. Most financial advisors
recommend 5 to 10 times your gross annual income.
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Who Can Buy The Life Insurance?
1) A Person Of India or Foreign Resident (Subject to Certain Restrictions)
2) A Person Who Has Got An Income Is Prospect For Life Insurance.
3) A Person Who Is Sound in Mind and Normal in Health.
4) As Per as Age is Concerned There is No Limit. A Child who is Less Than a
Year Can also be insured. But Risk is not Covered Up to 7 Years. This is a
Universal Concept For All Insurance Companies.
5) Minimum Age of Entry is 0 Year and Maximum is 69 Years.
6) For Additional Benefits Minimum Age of Entry (Rider Benefit) is 18 Years
Maximum Age Is 50 Years.
HOW PREMIUM IS CALCULATED?
Male Premium: Is Taken As Per Last Birth Day or Near Birthday.
Female Premium: Is Charged Less Compared to Male Premium. Bajaj Allianz is
the Only Company to Charge Less Premium Compared to Other Companies.
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What are the various policies available?
The various policies available are TERM, WHOLE LIFE, ENDOWMENT &PENSION, MONEY BACK.
TERM:
Term Policies are comparatively short term policies where the sum assured is paid
to the beneficiaries only upon the death of the insured person within the term period.
WHOLE LIFE:
Whole of Life Insurance Policies are Life Long Policies where the premiums are
low. The assured sum is paid (to the beneficiary) when the insured person dies or on
a pre specified date (to the policy holder).
ENDOWMENT:
Endowment Policies are recommended for people who require money at a pre-
specified point in time or at regular intervals and are willing to pay higher
premiums. The Sum assured is also paid to the beneficiary in case of death of the
policyholder before the specified term.
PENSION:
Pension Plans provide for immediate or deferred pension for life to the insured
person or to the beneficiary.
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INSURANCE COMPANIES EXISTING IN THE INDIAN MARKET:
LIC: Life Insurance Corporation of India Ltd.(this is completely owned by
govt of India)
BAJAJ ALLIANZ LIFE INSURANCE COMPANY: ( A joint venture
between BAJAJ auto and ALLIANZ AG German based life insurance
company)
ICICI PRUDENTIAL LIFE INSURANCE : ( A joint venture between
ICICI bank & PRUDENTIAL of UK)
OM KOTAK MAHINDRA: ( A joint venture with OLD MUTUAL OF
SOUTH AFRICA & KOTAK MAHINDRA BANK )
BIRLA SUNLIFE: (A joint venture between ADITYA BIRLA group of
companies & SUNLIFE of CANADA )
TATA AIG: (A joint venture between the TATA group and US based
company AIG )
MAX NEWYORK LIFE: (A joint venture between MAX & NEWYORK
LIFE a US based company )
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METLIFE: ( A joint venture between METRO POLITAN LIFE
INSURANCE company (US based) & Jammu & Kashmir Bank )
AVIVA: (A joint venture between DABUR & CGU, commonly known asAVIVA )
ING VYSYA: ( A joint venture between International Netherland Group –
ING a Dutch based company & VYSYA Bank limited )
SBI LIFE: (A joint venture between SBI Bank & CARDIFF Life
Insurance )
Note: Rule for Joint Venture Indian Company Should Have To Invest 76% or
More and Foreign Company Must Need Have an Investment Of 24 %
PLAYERS LIKELY TO ENTER IN THE INSURANCE MARKET:
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• Sahara Group
• AXA From France
• Reliance
GENERAL INSURANCE COMPANIES:
Four Major Companies Which Are Completely Owned By Govt Of India Are:
1. National Insurance Company Limited.
2. New India Assurance Company Ltd.
3. Oriental Insurance Company Ltd.
4. United India Insurance Company Ltd.
Private General Insurance Companies:
1. Bajaj Allianz GIC.
2. ICICI Lombard.
3. Tata AIG.
4. Royal Sundarum.
5. Cholamandalum.
6. Iffco Tokyo GIC.
7. Reliance GIC.
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About Bajaj Auto
About Allianz AG
Brief History About Bajaj Allianz
Vision of Bajaj Allianz
Core Values
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COMPANY PROFILE
BAJAJ AUTO:
One of the largest 2 & 3 wheeler manufacturer in the world
21 million + vehicles on the road across the globe
Managing funds of over 4,000 Cr.
Bajaj Auto finance, one of the largest auto finance companies in India
Rs. 4,744 Cr.Turnover & Profits of Rs. 538Cr. In 2002-03.
ALLIANZ AG:
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World’s largest insurance company by revenue –Rs 5,24, 400 Cr ( US $ 114
Billion )
World wide 2nd by GWP- Rs.4,46,654 Cr (Euro 85 billion )
3rd largest Asset under management (AUM ) & largest among insurance
companies. AUM of Rs 51,96,959 Cr. ( Euro 996 billion )
11th largest corporation in the world
50% global business from life insurance , close to 60 million lives insured
globally
established in 1890,115 years of insurance expertise
More than 70 countries 1,73,750 employees worldwide
Insurance almost half of the Fortune 500 companies.
BRIEF HISTORY OF BAJAJ ALLIANZ
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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. Allianz
AG is a leading insurance conglomerate globally and the largest asset manager in
the world, managing assets worth 4989 billion Euros (Rs 49,84,560 crores).At Bajaj
Allianz, we realize that you seek an insurer you can trust your hard earned money
with. Allianz AG has more than113 years of financial experience in over 70
countries and Bajaj Auto, trusted for over 55 years in the Indian market, are
committed to offering you financial solutions that provide all the security you need
for your family and yourself.
At Bajaj Allianz, customers delight is our guiding principle. Ensuring world
class solutions by offering you customized products with transparent benefits
supported by the best technology is our business philosophy.
Bajaj Allianz Life Insurance
• Is the fastest growing private life insurance company in India.
• Currently has over 3, 00,000 satisfied customers.
• There are 155 customer care centers
.
Over 6,00,000 satisfied customers
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1000 Cr. GWP, 380% growth for Bajaj Allianz Life strengthens No. 2
position with Rs.248 cr. Lead
The fastest growing and one of the leading life insurers in the country
Accelerated Growth
Financial year No. of policies GWP in FY
2001-02 (6 months) 21,376 Rs. 07 cr.
2002-03 1,15,965 Rs 69 cr.2003-04 1,86,443 Rs 221 cr.
2004-05 2,88,191 Rs 1000 cr.
Pan India network
Wide range of products to suit your needs
Decentralized organizational structure for better coordination and service
All customer care centers (CCC,s ) networked with state of art IT systems
Highest standard of customer service & simplified claims process in the
industry.
One of India's leading private life insurance companies:
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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
VISION OF BAJAJ ALLIANZ:
“To be the best Insurance Company in India to buy from, work for &
invest in.”
CORE VALUES OF BAJAJ ALLIANZ:
• Customer delight the guiding principle
• Ensuring world class solutions & services
• Offering customized products
• Transparent Benefits
SHARED VALUES OF BAJAJ ALLIANZ:
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ALLIANZ BAJAJ WILL BE:
Be a winning team
Have a passion for excellence and avoid bureaucracy
Be empowered, have the to take decisions quickly and accountable
Be driven to achieve results, to deliver
Be professional and social committed
Be open to ideas ,sharing ,transparent and trusting
Focus everything we do on our customers
Make A Z Bj a “great place to work”
Have a sense of humour.
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Conventional/Traditional Insurance Plans
ULIPS (Unit Linked Insurance Plans )
CONVENTIONAL/TRADITIONAL INSURANCE PLANS:
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Invest Gain – An Endowment Plan
This saving plan combines your protection (up to quadruple cover) with a
unique family income benefit.
Cash Gain – Money Back Plan
Only money back plan that offers quadruple protection going up to four
times the basic sum assured and family income benefits.
Life Long Gain
“Regular income for you and the added benefit of providing for your loved
ones too”. A plan which provides you wholly life protection with only 10 or
15 years of premium contribution and guaranteed survival benefits.
Protector – A Mortgage Reducing Term Insurance Plan
Perfect plan to protect the family from the repayment liability of outstanding
loans, in the unfortunate case of death of the loanee.
Child Gain – Children Policy
Right providing for your child’s education to securing a bright future, tailor
made to suit your child’s needs, covers it all.
Swarn Vishranti – Retirement Plan
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In addition to life insurance and attractive tax benefits this plan enables you
to make adequate provisions for your post retirement years as well.
Risk Care- Pure Term PlanA comprehensive plan which enables you to provide financial security to
your loved ones at the lowest possible cost. The only term plan in the market
to give hospital cash benefit option and the facility to cover two lives.
Life Time Care – Whole Life Plan
Whole life provides survival benefits at the age of 80, thereby making sure
you are secure at a time when you need it the most.
Save Care Economy SP –Single Premium Endowment Plan
A single premium investment plan for 10 years which provides life cover
along with growth in savings.
Term Care –Term Plan With Return –Of –Premium
An economic way of providing life cover, this plan also ensures the return of
all premiums at the time of maturity.
Keyman Insurance-A Promising Business Opportunity
Keyman insurance is a life insurance cover under a suitable plan, insuring
your business against unfortunate loss of key people.
Unit Gain Easy Pension-Choice Of Regular Premium And Single
Premium
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A premium investment liked deferred annuity policy. A plan which helps you
to take control of your future and ensures better retirement benefits.
Unit Gain Life Pension-Choice Of Regular Premium And SinglePremium
Designed to take care of your retirement and insurance needs by providing a
comprehensive solution for a life time.
Swarna Raksha I-Immediate Annuity
o Life Annuity: A fixed annuity for life will be payable as per the
mode selected. The annuitant has to produce an existence certificate at
least 15 days prior to the policy anniversary date every year. The
annuity is payable up to the end of the policy year on which the death
of the annuitant occurs.
o Life Annuity Guaranteed For 5,10,15,20 Years: A fixed annuity
for life will be payable, guaranteed for the chosen period
(5/10/15/20years).The annuitant has to produce an existence
certificate at least 15 days prior to the policy anniversary date every
year.
o Life Annuity with Return of Purchase Price: A fixed annuity for
life will be payable. The annuitant has to produce an existence
certificate at least 15 days prior to the policy anniversary date.
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o Life Annuity With Joint Life Last Survivor: A fixed annuity for
life will be payable as per the mode selected. The annuitant has to
produce an existence certificate at least 15 days prior to the policyanniversary date
every year. The annuity is payable up to the date of death of the last
survivor annuitant.
NRI Insurance-All Our Life Plans Are Available To NRIs
GROUP LIFE PLANS:
Group credit care –employer
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Group term life –employer
Group term life scheme in lieu of EDLI(employees deposit linked
insurance
Scheme 1976)
Bajaj Allianz group gratuity care
Bajaj Allianz group superannuation care
UNIT LINKED INSURANCE PLANS (ULIP):
Different types of schemes In Unit Gain Insurance Plan (ULIP) are as follows:
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Unit Gain
Unit Gain Single Premium
Unit Gain Plus
Unit Gain Plus Single Premium
Unit Gain Life Pension
Unit Gain Easy Pension
Life Long Gain
In ULIP the Policy Holder himself has to desire regarding the
o Premium Payment Terms
o Benefit Terms
By nature ULIP is very flexible and therefore Market Risk is associated with theULIP
(In ULIP minimum premium payment period is three years and maximum is 20years)
FUNDS AVAILABLE IN ULIP:
1. Equity fund ( EQUITY PLUS / GAIN )
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2. Equity Index
3. Mid Cap Fund ( Mid cap plus )
4. Balanced Fund ( Balanced plus )
5. Cash Fund ( Cash plus )
6. Debt Fund ( Debt plus )
NOTE: We taking NSE and NIFTY index. BSE is not considered
UNIT GAIN / UNIT GAIN PLUS:
Introduction:
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The thumb rule for buying insurance is that your insurance needs are minimal in
your earning years they increase with added responsibilities (Marriage, Children,
Loans, Etc.) and taper off by the time you retire. It is difficult to find a single
insurance plan that can take care of all the changing requirements in life - additional protection, more money to invest, sudden requirement of cash. With Bajaj Allianz
Unit Gain, you can invest in one life insurance plan that can take care of all your
changing requirements throughout your life. Bajaj Allianz Unit Gain offers the
unique options of combining the protection of life insurance with the attractive
prospects of investing in securities. You can choose the investment fund you want to
invest your money, providing you with an opportunity to have direct stake in the
performance of financial markets. You also benefit from attractive tax advantages
and can protect your loved ones against unfortunate events.
What are the key features of Unit Gain Plan?
Bajaj Allianz Unit Gain comes with host of features to allow you to have the best of
all worlds - Protection and Investments with flexibility like never before.
Some of the key features of this plan are:
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Guaranteed death benefit.
Choice of investing the funds.
Attractive investment alternative to fixed- interest securities.
Provision for full/partial withdrawals any time after three full years
premium are paid.
Unmatched flexibility - to match your changing needs.
How Does the Unit Gain Plan Work?
The premiums paid are invested in fund/funds of your choice (depending on
the allocation rate) & units are allocated depending on the price of units for the
fund/funds. The value of your policy is the total value of units that you hold in the
fund/funds. The insurance cover charges are deducted through monthly cancellation
of units. The fund Administration Charges and Fund Management Charges are
priced in the unit value.
- Minimum Sum Assured = 5 times the annual premium.- Maximum Sum Assured = y times the annual premium where y will be as per the
following table:
UNIT GAIN
Age group 0-30 31-35 36-40 41-45 46-55 56-60
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Y 125 105 75 55 30 20
UNIT GAIN PLUS
Age group 0-30 31-35 36-40 41-45 46-55 56-60
Y 125 90 60 40 20 15
What are the benefits of it?
Death Benefit.
Cash Withdrawal Options.
Investment Options.
Increase in Regular Premium Payment and Top-Ups.
Tax Benefits.
Additional Protection for you and your family.
Premium Holiday.
Switching between funds.
INVESTMENT OPTIONS:
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Bajaj Allianz offers you a choice of 4 funds. You can choose to invest fully in any
one fund or allocate your premiums into the various funds in a proportion that suits
your investments needs. All the funds will be managed by the asset managers of
Bajaj Allianz.
The five funds offered are as under:
a) Equity Fund: This fund provides the scope of high appreciation over a long
term. The fund will primarily invest in equities and is expected to match returns
given by NSE NIFTY. This fund will invest at least 90% in equities and maximum
10% in cash.
b) Equity Gain Fund: the investment objective of this fund is to provide capital
appreciation through investment in selected equity stocks that have the potential for
high capital appreciation. This fund will invest at least 85% in equities and
maximum 15% in debt and cash instruments.
c) Debt Fund: This fund provides the scope for steady returns at low risk through
investments in high quality fixed income securities. This fund will be invested fully
in debt instruments.
d) Balanced Fund: The balanced is primarily for those who prefer mix of steady
returns and growth. The balanced fund will invest 30% to 50% in the equity fund
and 50% to 70% in the debt fund.
e) Cash Fund: The cash fund will invest conservatively in money market & short
term investments to ensure that return on investments shall never be negative. 100%
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of this fund will be invested in money market instruments. The price of the units in
this fund will never to go down.
What is Premium Allocation?
A certain percentage of the prevailing premium will be allocated to purchase units at
the prevailing purchase price. The allocation rates would be as follows:
UNIT GAIN UNIT GAIN PLUS
YEAR ALLOCATION (%) YEAR ALLOCATION (%)
1 30 1 76
2 98 2 97
3 99 3 97
4th yr.onwords 100 4th yr.onwords 97
The allocation of top-ups would be 100% of the premium paid in UNIT GAIN
& 98% in UNIT GAIN PLUS.
Increase in Regular Premium Payment and Top-Ups:
The policyholder will have the option to increase the regular premium amount at
any time. The additional single premium would be treated as a single premium top-
up every year. The policyholder will also have the option to increase the amount
invested through top-ups.
Switching between funds:
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Policyholder can switch units from one fund to another. The amount switched
should be in multiples of 1000, and the minimum switching amount is Rs. 5000 or
the fund value which ever is lower. Three free switches would be allowed every
year. Subsequent switches would be charged @ 1% of the switch amount or Rs. 100whichever is higher.
What is age at entry for Unit Gain plan?
Minimum age at entry: 0 (Risk commences at the age 7, and ceases after 70)
Maximum age at entry: 60
The minimum age at entry for all additional benefits is 18 years.
The maximum age at entry for all additional benefits is 50 years.
All additional benefits are available till age 65.
What is Bid Offer Spread?
Bid offer spread is 5% in case of Bajaj Allianz. The difference between the offer
and the bid price takes into account an initial management charge that is 5% of the
offer price. Premiums paid by the policyholder will buy units at the current offer
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price and units will be cashed at the current bid price of the units. This is applicable
in UNIT GAIN. In UNIT GAIN PLUS, there is no Bid offer spread.
What are the different funds?
Equity Fund - Investment is in NSE ( National Stock Exchange ) NIFTY
i.e. top 50 companies.
Debt Fund - Investment is in Govt. Bonds for e.g. IDBI Bonds, Mutual
Funds etc.
Balance Fund - Investment is in Govt. and Private Companies.
Cash Fund - Investment is in Call Money Market ( operates on the need for
cash on hourly basis).
Tax Benefits
Contribution other than value of units cancelled for Critical Illness and Hospital
Cash eligible for tax relief under Sec 80c of IT Act, as of now.
Value of Units cancelled for Critical Illness and Hospital Cash Benefit is eligible for
tax relief under Section 80(D).
Death Benefit and Withdrawals (partial or full) is tax free under section 10(10) D of
the Income Tax Act, if the premiums paid in any year does not exceed 20% of the
Sum Assured or Fund Value, whichever is higher.
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Incase of change in any tax laws relevant to the policyholder or the fund
performance, the same will be applied as per regulations prevailing at the point of
time.
UNIT GAIN SP / UNIT GAIN PLUS SP:
Introduction: Bajaj Allianz Unit Gain SP offers the unique option of combining the protection of
life insurance with the attractive prospects of investing in securities. You can choose
the investment funds you want to invest your money, providing you with an
opportunity to have a direct stake in the performance of the financial markets. You
also benefit from attractive tax advantages and can protect your loved ones against
unfortunate events.
What are the key features of this plan?
Convenient single premium payment, with option to pay top-ups later.
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100% of the single premium/top-ups are allocated in Unit Gain SP& 98% in
Unit Gain Plus SP.
Guaranteed death benefit.
Choice of investment funds with flexible investment management: you can
switch between funds at any time.
Attractive investment alternative to fixed-interest securities.
Provision for full/partial withdrawals any time after the single premium is
paid.
Unmatched flexibility to match your changing needs.
What is the minimum amount to be invested?
The minimum amount to be invested is Rs.25000/-
What is the minimum Top-Up?
The minimum Top-Up is Rs.10000/-
What is the age limit for this policy?
Minimum age at entry is: 0 (Risk commences at age 7, and ceases after age 70)
Maximum age at entry is: 67-Unit Gain SP and 69 for Unit Gain Plus SP.
What are the tax benefits under this plan?
Death benefit is tax free.
Tax benefits are available under Sec 80c and Sec 10(10) D, as per the prevailing IT
Laws,
If the single premium/top up paid in any year is less than 20% of the Sum Assured.
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What is the sum assured?
Minimum Sum Assured = 1.01 times the single premium.
Maximum Sum Assured = y times the single premium where y will be as per the
following table.
UNIT GAIN SP
Age group 0-30 31-35 36-40 41-45 46-60 61-69
Y 45 35 20 10 5 1.5
UNIT GAIN PLUS SP
Age group 0-30 31-35 36-40 41-45 46-60 61-67
Y 45 40 25 15 5 1.01
Introduction
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Definition
Functions
HUMAN RESOURCE MANAGEMENT
Introduction:
Human Resource Management (HRM) is a management function that helps
manager’s recruit, select, train and develops members for an organization.
Obviously, HRM is concerned wit the people’s dimensions in organization.
DEFINITION OF HRM
“ HRM is concerned with the planning, organizing, directing and controlling
of the procurement, development, compensation, integration maintenance and
separation of human resources to the end that individual, organizational, and social
objectives are accomplished .”
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FUNCTIONS:
1) Determining the human resources needs of the company.
2) Recruiting, selection, placement and Replacement.
3) Developing and maintaining an effective communication system.
4) Establishing a regular system of Evaluation and performance appraisal.
5) To maintain smooth scanning of the organization.
6) The main objective of the personnel department is to maintain the
discipline of every individual whether workman / staff supervisory
managerial.
7) To look of the welfare activities of the employees, first aid facility is
maintained in every department there is first aid box where in medicines will
be kept for their utilization under the control of section supervisor.
8) As regard provident fund of the employers the connected records are
maintained with the government bodies as well as in the organization and
periodical returns are submitted.
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Introduction
Channels Of Marketing
Group & Alternative Channel
Group & HNI &
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Agency Channel
Hierarchies In Marketing And Sales
SALES AND MARKETING
“Marketing is the process of identifying needs and wants of the
customers and translating that wants into products and services which will
satisfy his needs and delight him as a customer but also helps to the
organization to achieve its goals”.
A complexity of management decision making has greatly increased during recent
years through out the world. This is especially true with respect to the marketing
activity. Marketing activities are an interface between the firm and changing
character of most markets (example: population, growth raising incomes and shift in
the aged composition ).
Most management groups are far removed from their customers the individual who
in the final analysis, determine the success or failures. A complicated system of
branch officers, wholesalers and retailers operates between the manager and the
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widely scattered customers. Consequently, the executive who must make marketing
decisions has no direct contact with the actual or the prospective customers.
Coming to the selling of insurance it’s tough but challenging. Basically humanneeds and analysis is done. To understand and fact find one should possess good
communication skills and a zeal for success.
Normal insurance rule is 50:04:01
50 Calls
4 Appointments
1 Buy insurance
CHANNELS OF MARKETING:
Group and Alternate Channel
Group and HNI (High Net worth Individual )
Bank Assurance
Agency Channel
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Group And Alternative Channel :
Vice President
Associate Vice President
Area Manager
Deputy Area Manager
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Relationship Managers
Junior Relationship Manager
Senior Insurance Service Executive
Insurance Service Executive
Insurance Service Representative
Group and HNI :
Vice President
Associate Vice President
Area Manager
Deputy Area Manager
Relationship Managers
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Junior Relationship Manager
Senior Insurance Service Executive
Insurance Service Executive
Insurance Service Representative
Bank Assurance :
• Standard Chartered Bank
• Syndicate Bank
• Centurion Bank
Agency Channel :
South zone
ZONAL MANAGERS
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CHIEF MANAGERS
SENIOR BRANCH MANAGERS
ASSISTANT BRANCH MANAGERS
SALES TEAM MANAGER
SATELLITE BRANCHMANAGERS
INSURANCE CONSULTANTS
SALES TEAM MANAGERS
INSURANCE CONSULTANTS
Hierarchies In Marketing And Sales :
CHAIRMAN
C E O
H R MANAGER
HEAD OF SALES AND MARKETING
ZONAL MANAGERS
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CHIEF MANAGERS
SENIOR BRANCH MANAGERS
ASSISTANT BRANCH MANAGERS
SALES TEAM MANAGER
SATELLITE BRANCHMANAGERS
INSURANCE CONSULTANTS
SALES TEAM MANAGERS
INSURANCE CONSULTANTS
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SWOT ANALYSIS OF BAJAJ ALLIANZ
Strengths:
1. Commitment to total customer satisfaction
2. Wide range of quality products
3. Excellent infrastructure
4. A strong unity among its employees.
5. Highly computerized
6. Giving importance to each and every age group
Weaknesses:
1. Lack of proper advertisement.
2. Not much of branches in Bangalore like other life insurance companies
Opportunity:
1. The company is planning to open new branches in the Bangalore city.
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2 Increasing the insurance consultants and start more of mobile servicing.
Threats:
Cut throat competition from other insurance companies and also from
foreign players.
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Problems Identified – Insurance Sector:-
Life Insurance deals with the financial losses incurred incase of Death,
Disability, Disease, and Destitution. It is the only financial product that gives three
benefits i.e. Tax benefit, Protection and Investment. Life Insurance is a contract that
guarantees payment of a stated amount of money to the policyholder on the
occurrence of a stated event. It pays a contracted amount of money on death of the
policyholder or on his survival of a stated period of time. Under some contracts the
sum assured is paid to the policy owner to take care of his old age, children’s
education, and marriage. Insurance can also be used for saving tax or repayment of a
loan. Taking care of all these needs, insurance is one of the easiest and most
affordable financial tools.
During my study in BAJAJ ALLIANZ Life Insurance Company limited I had
identified the following problems which the insurance sector is facing. They are as
follows:-
1) Awareness Level :
If we look in to the awareness level of the insurance companies,
we see that LIC has 100% awareness in the market. People associate insurance
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to LIC. It has become a generic brand. So it has become a challenging task for
the private life insurance companies.
2) Lack Of Agent Services : During my study in bajaj allianz I found that agents spoke about
only those policies which give them maximum commission.
3) Insurance Coverage:
In India till now only 20% of the population is covered under
insurance while the remaining is yet to be insured. As insurance sector has been
opened up, the monopoly of government companies has broken and many new
private players have entered in to the insurance sector thus the sector has become
highly competitive with full of challenges.
4) Branches:
If we compare to other private life insurance companies, Bajaj
Allianz Life Insurance Company has its only one branch in the Bangalore.
Solutions of The Above Problems:
1) Spread Insurance Awareness:As we see that people associate life insurance to LIC only, so
these private sector companies have to work hard to remove this concept from
the minds of the people. There is urgent need to highlight the benefits of
insurance products to the majority of population.
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2) Agents Services: The agent has to spoke not only those policies which gives
them maximum commission but also some other policies which are very
important from the point of company and to general public.
3) To Increase The Percentage Of Insurance Coverage:
As we that at present only 20% of the population is covered under
insurance. So it has become a necessary evil for the private life insurance
companies to increase this ratio as the competition is growing in the market.
4) To Open New Branches:
As almost all the companies are having more than one branch in
Bangalore it suggested to the company to consider on this point.
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The benefits of computerization should be wide spread to all the departments
The information in the website should be updated in a regular basis
A special workshop needed to be organized for developing the personality of
the employees , at the initial stage, later stage and to be spread to all workers
in the organization
A system of self appraisal should be carried out instead of manager expresses
his or her view on the employees standing in the organization. This system
makes the employees to understand where he stands in the organization, the
management can easily evaluate the past performance of employees based on
self appraisal data by given by the employee.
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As almost all the companies are having more than one branch in Bangalore it
suggested to the company to consider on this point.
There is news that insurance companies from foreign countries are entering
in the Indian market, therefore they should be careful in deciding their plans.
Key Innovative End Products: The new entrants would survive for a long
period by adopting two prolonged strategies. First is to introduce innovative
products offering a right mix of flexibility/ risk/return depending which will
suit the appetite (needs ) of the customer and secondly, they would target
specific niches, which are poorly served or not served at all.
Customer Service: The opening of insurance in India and the subsequent
entry of private players in the market broke down the entire approach to the
customer service. The focus is now on offering quality products supported by
rigorous service benchmarks across the life of the product. This is one area
where all the players have to concentrate. Since customers satisfaction can
only drive the demand of the individual products.
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Conclusion:
Insurance is not a sophisticated industry, which may require the involvement
of multinationals in order to obtain the latest technology. If we are keen on
following the latest trends in the insurance business, we could directly employ
some of the foreign experts at a pittance of cost rather than letting Indian money
and capital be secreted abroad and there by depriving the country of vast
investible funds-on false slogans on the benefit of globalization.
The Indian insurance industry is still in its embryonic stage but has the
potential to grow in to one of largest markets in the world within the foreseeable
future. The Indian insurance sector is witnessing tremendous improvements in
market expansion, product development, and customer service and distribution
channels. The new players have taken their work seriously and steadily in
increasing their market share.
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BIBLIOG
RAPHY:
Broachers of the company
Marketing Management :Philips Kotler
Human Resource Management :Ashwatappa
Website: www.irdaindia.com