pavan paliwauyl

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PROJECT REPORT

ON

Comparative analysis of the LIC & Bajaj AllainzLife Insurance products with reference to

customer

SUBMITTED IN THE PARTIAL FULFILLMENT OF THEREQUIREMENT OF

MBA PROGRAMME

2011-2012

DEPARTMENT OF MANAGEMENT STUDIES

SHRINATH JI INSTITUTION OF TECHNOLOGY &ENGINEERING

SUBMITTED BY : SUBMITTED TO:

PAWAN PALIWAL

ASHUTOSH DAGA

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PREFACE

For a management student theoretical knowledge as well

as practical orientation expose one self experiences, one can

again be mastering it is best possible time, MBA curriculum has

been finding tuned in such a way that a student not apply the

theoretical knowledge but also gain in a practical since. These

electives can be attend through application of theory tools

concepts and techniques of managements.

Balanced theoretical and practical knowledge are essential

for every MBA student. Sometime I felt that theoretical

knowledge is not enough on the field, so practical Knowledge is

more important than theoretical.

As a student of MBA, I have undergone a practical training

at Bajaj Allianz life insuranceCompany of Udaipurand the

objective of the research is to compare the companys credibility

with other insurance companies prevailing in the market and to

study companys plan.

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ACKNOWLEDGEMENT

It gives me an immense pleasures to acknowledgmentgratefully that debt of all those persons who have been kind

enough for rending there helps and valuable guidance in the

preparation ofBAJAJ ALLIANZ.

This assistance was offered to me in different form like

dissemination of information regarding activities in the Insurance

in which proved helpful in completing this project report.

I shall always be indebted for giving me opportunity to

undergo this summer training in such a prestigious and

professional organization and also for their immense contribution

towards execution and completion of this project.

I am thankful especially ASHUTOSH DAGA SIR, for their

guidance support in accomplishing this summer training

successfully.

Last but not least, I am thankful to God, my parents and all

those who supported & encouraged me.

(PAWAN PALIWAL)

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CONTENTS

1 INTORODUCTION OF THE COMPANY 01-05

2 INSURANCE 06-07

3 OBJECTIVE OF STUDY & RESEARCH

METHODOLOGY 08-18

4 PLANS OF COMPANY 19-22

4 PRODUCTS OF THE COMPANY 23-29

5 COMPARISION OF THE PLAN 30-32

6 MARKET SHARE OF THE COMPANY 33-34

7 FINDING & ANALYSIS 35-47

8 CONCLUSION, SUGGESTION &

LIMITATIONS 48-51

9 BIBLIOGRAPHY 51-52

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CHAPTER 1

INTRODUCTION OF BAJAJ ALLIANZ

THE COMPANY

Bajaj Allianz Life Insurance Company is a joint venture

between two leading conglomerates, Bajaj Auto Limited, one of

largest manufactures of motorcycles and scooters in the world,

and Allianz AG of Germany one of the largest insurance

companies. Bajaj Allianz Life Insurance Co. Ltd. was incorporated

on 12th March 2001. The company received the Insurance

Regulatory and Development Authority (IRDA) certificate of

Registration (R3) No 116 on 3rd August 2001 to conduct Life

Insurance business in India.

Bajaj Allianz Shareholder Capital Base stands at Rs. 500

crore with Bajaj Auto Limited and Allianz AG of Germany holding

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

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

amongst the private companies and second to LIC. The total

market share of Bajaj Allianz as of 31st March 2012 is at 12%.

During the financial year 2011-2012, Bajaj Allianz has sold

over 15 lakh policies and collected about Rs. 4543 crore as

premium income. Whopping growth of 216% for the FY 2011-12,

Assets under management of Rs. 3524 crore. It has paid up Rs

950 crores with IRDA as a caution deposit. Bajaj Allianz has

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insured lives for sum assure of over Rs 8500 crore.

CHAPTER 2

INSURANCE

Insurance is an integral part of everyones life in present

scenario. Insurance or assurance is a device for indemnifying or

guaranteeing an individual against loss. Reimbursement is made

from a fund to which many individuals exposed to the same risk

have contributed certain specified amounts, called PREMIUMS.

Payments for an individual loss, divided among many, do not fall

heavily upon the actual loser. The essence of the contract of

insurance, called a POLICY is mutuality.

The entity that is transferring the risk, which may be an

individual or association of any type, including a government or

government agency-, is called INSURED. The entity accepting

the risk is called the INSURER. The agreement between the two

by which the risk is transferred is called the POLICY. This is a

legal contract that sets out exactly the terms and conditions of the

coverage. The fee paid by the insured to the insurer for assuming

the risk is called PREMIUM. This is usually determined by the

insurer to fund estimated future claims paid, administrative costs

and profits.

The major operations of an insurance company are

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underwriting, the determination of which risks the insurer can take

on; and rate making, the decisions regarding necessary prices for

such risks. The underwriter is responsible for guarding against

adverse selection, wherein there is excessive coverage of high risk

candidates in proportion to the coverage of low risk candidates. In

preventing adverse selection, the underwriter must consider

physical, psychological, and moral hazards in relation to

applicants. Physical hazards include those dangers, which

surround the individual or property, jeopardizing the well being of

the insured. The amount of the premium is determined by the

operation of the law of averages as calculated by the actuaries. By

investing premium payments in a wide range of revenue-producing

projects, insurance companies have become major suppliers of

capital and they rank among the nations largest institutional

investors.

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LIFEINSURANCEIN INDIA

In India, insurance started with life insurance. It was the early

19th Century. It started with English Companies like. "The

European the Albert". The first Indian insurance company was the

Bombay Mutual Assurance Society Ltd. formed in 1870.

Nationalization of life insurance in India

In 1956, Life insurance business was nationalized and LIC of

India came into being on 01.09.1956. The government took over

the business of 245 companies. Relevant laws were amended in

1999 and LIC's monopoly right to transact life insurance business

in India came to end.

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CHAPTER 3

OBJECTIVES ANDRESEARCH METHODOLOGY

OBJECTIVES

To understand the new unit gain plan and child care plan.

Comparative analysis of the life insurance products available

in the market which is done by the help of following:-

Research methodology used : Primary data collected by

visiting the leading life insurance companies like LIC, ICICI

Prudential, Aviva, Birla Sun Life Insurance, HDFC Standard

Life, Tata AIG Educare, OM KOTAK Mahindra.

Data Collection:

Questionnaires filled by various income groups.

Internet (by searching about the investment plans of other

companies).

Action plan:

Firstly, collecting information from newspapers &

magazines like Economic Times, Financial Express, Business

India, The Times of India, and Internet.

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Secondly, getting the questionnaires filled (about 50) to find

out which company they prefer for life insurance policies, what are

the specific features of their policies, whether they treat insurance

as an investment option or a security option.

Finally, analyzing the data collected and comparing the

insurance companies to show the market credibility of BAJAJ

Allianz among other private life insurance companies.

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RESEARCH: AN INTRODUCTION

Research is defined as human activity based on intellectual

application in the investigation of matter. The primary aim for

applied research is discovering, interpreting, and the development

of methods and systems for the advancement of human

knowledge on a wide variety of scientific matters of our world and

the universe. Research can use the scientific method, but need not

do so.

The word research derives from the French recherch, from

recherch, to search closely where"chercher"means "to search";

its literal meaning is 'to investigate thoroughly'.

Definition of Research

Research is an ORGANIZED and SYSTEMATIC

way of FINDING ANSWERS to QUESTIONS.

SYSTEMATIC because there is a definite set of procedures

and steps which you will follow. There are certain things in the

research process which are always done in order to get the most

accurate results.

ORGANIZED in that there is a structure or method in going

about doing research. It is a planned procedure, not a

spontaneous one. It is focused and limited to a specific scope.

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FINDING ANSWERS is the end of all research. Whether it is

the answer to a hypothesis or even a simple question, research is

successful when we find answers. Sometimes the answer is no,

but it is still an answer.

QUESTIONS are central to research. If there is no question,

then the answer is of no use. Research is focused on relevant,

useful, and important questions. Without a question, research has

no focus, drive, or purpose.

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OBJECTIVE OF RESEARCH

The purpose of research is to discover answer to questionthrough the application of scientific procedures .the main aim of

research is to find out the truth which is hidden and which has not

been discovered as yet. Though each research study has its own

specific purpose, we may think of research objective as falling into

a number of following broad groupings:-

1. To gain familiarity with a phenomenon or to achieve new

insights into it (studies with this object in view are term as

exploratory or formulative research studies).

2. To portray accurately the characteristics of a particular

individual, situation or a group (studies with this object in view

are known as descriptive research studies).

3. To determine the frequency with which something occurs or

with which it is associated with something else (studies with this

object in view are known as diagnostic research studies).

4. To test a hypothesis of a casual relationship between variables

(such studies are known as hypothesis-testing researchstudies).

Types of research:-

1. Descriptive vs. analytical.

2. Applied vs. fundamental.

3. Quantitative vs. qualitative.

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4. Conceptual vs. empirical.

Research methods

Exploratory research, which structures and identifies new

problems.

Constructive research, which develops solutions to a

problem

Empirical research, which tests the feasibility of a solution

using empirical evidence

Research can also fall into two distinct types:

Primary research

Secondary research

Research methods used by scholars include:

Action research

Case study

Classification

Delphi method

Experience and intuition

Experiments

Interviews

Mathematical models

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Participant observation

Questionnaires

Simulation

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RESEARCH APPROACHES

There are two basics approaches of research approaches

viz: Quantitative approach and qualitative approach.

1. Quantitative approach : -

It involves generation of data in quantitative form which can

be subjected you rigorous quantitative analysis in a formal and

rigid fashion. This approach can be further classified into:-

(a) Inferential approach.

(b) Experimental approach.

(C) Simulation approach.

2. Qualitative approach :-

It is concerned with subjective assessment of attitudes,

opinions and behavior. Research in such a situation is a function of

researchers insights and impressions. Such an approach to

research generates results either in non- quantitative form or in the

form which are not subjected to rigorous quantitative analysis.

Generally the techniques of focus group interviews, projective

techniques and depth interviews are used.

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RESEARCH PROCESS

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Bajaj Auto Limited

Bajaj Auto Ltd, the flagship company of the Rs. 8000 croreBajaj group is the largest manufacturer of two-wheelers and three-

wheelers in India and one of the largest in the world.

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

image & brand loyalty synonymous with quality & customer focus.

With over 15,000 employees, the company is a Rs. 4000 crore

auto giant, is the largest 2/3-wheeler manufacturer in India and the

4th largest in the world. AAA rated by Crisil, Bajaj Auto has been in

operation for over 55 years. It has joined hands with Allianz to

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

insurance products.

As a promoter of Bajaj Allianz Life Insurance Co. Ltd., BajajAuto has the following to offer -

1. Financial strength and stability to support the Insurance

Business.

2. A strong brand-equity.

3. A good market reputation as a world class organization.

4. An extensive distribution network.

5. Adequate experience of running a large organization.

6. A 10 million strong base of retail customers using Bajaj

products.

7. Advanced Information Technology in extensive use.

8. Experience in the financial services industry through Bajaj

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Auto Finance Ltd.

Allianz AG

Founded in 1890 in Berlin, Allianz is now present in over 70

countries with almost 174,000 employees. At the top of the

international group is the holding company, Allianz AG, with its

head office in Munich.

Allianz AG is in the business of General (Property &

Casualty) Insurance; Life & Health Insurance and Asset

Management and has been in operation for over 110 years. Allianz

is one of the largest global composite insurers with operations in

over 70 countries. Further, the Group provides Risk Management

and Loss Prevention Services. Allianz has insured most of the

world's largest infrastructure projects (including Hong Kong Airport

and Channel Tunnel between UK and France), further Allianz

insures the majority of the fortune 500 companies, besides being a

large industrial insurer, Allianz has a substantial portfolio in the

commercial and personal lines sector, using a wide variety of

innovative distribution channels.

ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE

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

3rd largest Assets under Management (AUM) & largest

amongst Insurance cos. - AUM of Rs.51, 96,959 cr.

12th largest corporation in the world

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49.8 % of global business from Life Insurance

Established in 1890, 110 yrs of Insurance expertise

Achievements

Bajaj Allianz have till date got the competitive pricing and

quick, honest response and has earned the customers trust and

the leadership in the market place of general insurance.

The advantageous benefits of Bajaj Allianz

The main advantage of Bajaj Allianz is the overall global

expertise which it has and the market experience the company has

achieved ion order to gain the trust of the members.

The added advantage of Bajaj Allianz is that it has a well

knowledge of the local market and has gained the added benefit

through its alliance experience.

The Bajaj Allianz offers the best services and the best in the

industry innovative insurance packages to match the individual

needs.

According to the customer talk the claims period is very

much less when compared to the other insurance companies

which are prevailing in India.

Benefits offered by a health guard policy

The Bajaj Allianz general insurance policy offers the best in

the market as it covers the most expensive medical care through

its healthy guard policy. The health guard policy offered by the

Bajaj Allianz group also covers the costs incurred during the pre

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and post hospitalization resulting from serious accident and illness

and also covers the emergency ambulance service up to a limit of

1050 Rs.

CHAPTER 4

PLANS OF THE COMPANY

New Unit Gain Plus

It is a unit linked plan of Bajaj Allianz that takes care of a

persons wealth by providing flexibilities in savings and

investments and options for protection needs.

HOW TO GET STARTED

This gets started by opening an account with a minimum

premium of :

Rs 15000/- p.a. for annual mode.

Rs 7500/- p.a. for half-yearly mode.

Rs 5000/- p.a. for quarterly mode.

HOW DOES THE 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

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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 Charge and Fund

Management Charge are priced in the unit value

BENEFITS

DEATH BENEFIT :

In case of unfortunate death the beneficiaries are entitled to

the Sum Assured less withdrawals or the bid price of units,

whichever is higher. If the age of the life assured is less than 7 or

above 70, then the bid price of the units is paid.

LIQUIDITY OPTION :

There is no maturity date for this plan. . Anytime afterpayment of 3 full years premiums, you may withdraw the money,

depending on your requirements, through partial or complete

surrender of units.

Additional Protection for You and Your Family :

You have the option to add the following four additional

benefits, providing total protection against uncertainties.

Accidental Death Benefit.

Accidental Permanent Total/Partial Disablement

Benefit.

Critical Illness Benefit (CI).

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Hospital Cash Benefit (HC).

AGE LIMITSAge at entry :

Minimum age of entry: 0 years (Completed years)

Maximum age of entry: 60 years (Completed years)

CHILD CARE PLAN

Taking care of a child is perhaps the most important job a

parent can have. It is but natural that you would like to give your

child your best, and therefore, this is the time when careful

financial planning can help you fulfill the aspirations that you have

for your children. The Bajaj Allianz Child Care Solutions help you

to enjoy the joys of parenthood responsibly, with the reassurance

of a secure future for your child.

CHILD CARE PLAN OFFERS

Child Care plan is a children money back plan with profit. Bajaj

Allianz Child Care offers a wide array of solutions that allows you

to plan for your childs future by providing you with as many as 4

distinct and unique options.

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Child Care 21

Child Care 24

Child Care 21 Plus

Child Care 24 Plus

START OF LIFE BENEFIT

This is a unique feature of Bajaj Allianz Child Care 21 Plus

& 24 Plus. These packages offer you the choice of providing a

unique Start of Life Benefit for your child. For a nominal amount,

an additional Sum Assured subject to a maximum limit of Rs.10

Lacks will become payable to enable the child start hi/her

professional life smoothly, in case of an unfortunate death or

Accidental Permanent Total Disability of the Policy holder during

the term of the policy. This benefit will not be available in the event

of accidental permanent total disability after age 65 of the policy

holder.

IN-BUILT BENEFITS

A) PREMIUM WAIVER BENEFIT:

In case of death or Accidental Total Permanent Disability of

the policyholder during the premium payment term, all future

premium payments are waived. This benefit will not be available in

the event of accidental permanent total disability after age 65 of

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the policy holder.

B) FAMILY INCOME BENEFIT:

In case of death or accidental total permanent disability of the

policy holder during the term of the policy, a monthly income

benefit of 1% of the sum assured (12% per annum) becomes

payable till the end of the policy term (subject to a maximum of Rs.

1,20,000 per annum). This benefit will not be available in the event

of accidental permanent total disability after age 65 of the

policyholder

C) OPTION TO PURCHASE FURTHER INSURANCE AT

MATURITY:

For ensuring continuity of the valuable insurance protection

that the child was enjoying, we offer the child and option to

purchase a with profits endowment or an equivalent plan from

Bajaj Allianz Life Insurance Company for twice the amount of face

value of this policy, without any medical examination, on the

premium rates prevailing at that time. (The application must be

made at least 6 months prior to maturity of this policy).

PAYOUT STRUCTURE

For Child Care 21 and Child Care 21 Plus: The minimumguaranteed payouts are as follows:

Policy Anniversary following

completion of Age 18 19 20 21

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Payout as % of sum Assured 20% + AccruedBonuses

25% 25% 35%

For Child Care 24 and Child Care 24 Plus: The minimum

guaranteed payouts are as follows:

Policy Anniversary followingcompletion of Age 18 20 22 24

Payout as % of Sum Assured 25% + AccruedBonuses 25% 25% 40%*

* Refers to probable increase in payout based on higher

interest during the payout period.

DEATH PAYOUT

In the event of unfortunate death of the child during the

policy terms, the payouts shall be as under

AgePayout

Below 7 years Premiums paid will be refunded without interest and thepolicy will terminate.

Above 7 years andbelow 18 years Sum assured with accrued bonuses will be paid and the

policy will terminate.

Above 18 years andbelow 24 years

Outstanding payouts will be paid as one lump sum and thepolicy will terminate.

HOW TO GET STARTED

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This gets started by opening an account with a minimum

premium of:

Rs.5000/- p.a. for annual mode.

Rs 2500/- p.a. for half-yearly mode.

Rs 2000/- p.a. for quarterly mode.

Rs.700/- p.a. for monthly mode.

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AGE LIMITS

Eligibility Conditions Child Care 21 and ChildCare 21 Plus

Child Care 24 and ChildCare 24 Plus

Minimum age of thepolicyholder 20 20

Maximum age of policyholder50 50

Minimum age of child0 0

Maximum age of child13 13

Minimum PremiumRs.4850 Rs.4850

Minimum Premium PaymentTerm 5 5

Maximum Premium PaymentTerm 18 18

Maximum age of child at

maturity 21 24

Maximum Sum AssuredRs. 50,00000 Rs. 50,00000

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CHAPTER 5

COMPARISION OF PLANS

NEW UNIT GAIN PLUS Vs LIFE TIME (ICICI Pru.)

FEATURES NEW UNIT GAIN PLUS LIFE TIME

Age 0-60 Years 0-60 Years

Term Choice rests with aminimum period of

payment of 3 years.

Choice rests with a minimum periodof payment of 3 years.

Sum Assured

Minimum Sum Assured is 5times the premium paid.Maximum Sum Assured isas per the limits set per agebands.

Choice of choosing the sumassured subject to a minimum sumassured of Rs. 1 Lakh.

SurvivalBenefit

Value of fund at Bid Price. Value of units (3rd year onwards)

Death Benefit

Higher the Sum Assured orvalue of units. However, thevalue of units will treated asdeath benefit if the LifeAssured is > 7 years or 7 years or < 70years.

WithdrawalBenefit

Partial or completewithdrawals at bid price

after 3rd year.

Partial or complete withdrawal areavailable from 3rd year onwards.

Contribution Minimum: Rs. 15,000 p.a Rs. 18,000 p.a.

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NEW UNIT GAIN PLUS Vs AVIVA LIFE LONG

FEATURES NEW UNIT GAIN PLUS AVIVA LIFE LONG

Age 0-60 Years 18-60 Years

Term Choice rests with a minimum periodof payment of 3 years.

Choice rests withinvestor ,he needs tospecify at the time ofpurchasing policy.

Sum Assured Minimum sum assured is 5 times thepremium paid. Maximum sum

assured is as per the limits set perage bands.

The investor has to choosethe death benefit from 3

levels (minimum, standardand maximum).

SurvivalBenefit

Value of Fund at Bid Price. Unit value(after adjustmentof 5% bid offer price).

Death Benefit Higher the Sum Assured or value ofunits. However, the value of units willtreat as death benefit if the LifeAssured is > 7 years or < 70 years.

Higher of fund value orSum Assured. However,the value of units will betreated as death benefit ifthe Life Assured is > 7years.

WithdrawalBenefit

Partial or complete withdrawals atbid price after3rd year.

Partial or completewithdrawal after 3rd year

after adjusting for 5% bid-offer spread. Minimum

withdrawal is Rs. 5,000.

Contribution Minimum: Rs . 15,000 p.a Not specified.

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CHILD CARE Vs SMART KID (ICICI Pru.)

FEATURES CHILD CARE SMART KID

Plan Type Anticipated Endowment. Anticipated Endowment.

Min Max Term Matures when the child reaches theage of 21 or 24. Premium paid till childreaches age 18.

Matures between 22-25years of child. Term is 10-25 tears.

Min Max Age of Child 1-13 Years. 0-12 Years.

Min Max Age of Parent 20-50 Years. 20-60 Years.

Payment Modes All regular premiums. All regular premiums.

Life Assured Child is insured. But premiumwaiver rider available for parent.

Parent.

Beneficiary Child Child.

CHILD CARE Vs HDFC CHILD PLAN

FEATURES CHILD CARE HDFC CHILD PLAN

Plan Type Anticipated Endowment. Endowment.

Min Max Term Matures when the childreaches the age of 21 or 24Premium paid till child reaches age 18.

10-25 Years.

Min Max Age ofChild

0-13 Years. _

Min Max Age ofParent

20-50 Years. 18-60 Years.

Payment Modes All regular premiums. All regular premiums.

Life Assured Child is insured. But premium waiver rideravailable for parent.

Parent.

Beneficiary Child. Child.

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CHAPTER 6

MARKET SHARE OF BAJAJ ALLIANZ IN LIFE

INSURANCE COMPANIES IN INDIA

COMPANIES % OF SHARE

1. BAJAJ ALLIANZ 34

2. HDFC STANDARD 7

3. ICICI PRU 20.8

4. TATA AIG 6

5. BIRLA SUNLIFE 6.5

6. MAX NEW YORK LIFE 6.2

7. OM KOTAK 5.7

8. AVIVA 3.7

9. ING VYASA 3.5

10.STATE BANK OF INDIA LIFE 4.1

11. METLIFE 1.1

12. AMP SAMNAR 1.2

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TOTAL MARKET SIZE: INR 205 BILLION

FINDING AND ANALYSIS OF PROJECT

The project titled, as MARKET CREDIBILITY OF BAJAJ

ALLIANZ AMONG OTHER PRIVATE LIFE INSURANCE

COMPANIES required research to be done. The market credibility

required the collection of Primary Data as well as the Secondary

data. The credibility literally means the market value and the

market positioning of a particular brand or a company among its

competitors. BAJAJ Allianz is one of the private life insurance

companies, which came into existence in 2001. Market credibility

can be checked by seeing the awareness of people about a

particular company and its share in the market. Comparing the

products of term policies as well as the endowment policies

Primary data :

Questionnaire filled by people who was interviewed.

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Data :

(i) Data collected for companies from various sitesavailable of the life insurance companies.

(ii) Data collected from newspapers and the various policies of

BAJAJ Allianz and other private life insurance companies.

Sample size : Fifty (50)

Analysis tools : Pie Charts, Bar Charts.

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CHAPTER 7

(A) FINDINGS OF PROJECT

There were about 8 questions in the questionnaire on the

basis of which the findings were done and the analysis was made.

The responses to the questions in the questionnaire are presented

in the form of statistical tools such as pie charts and bar charts.

There were 50 people being interviewed from different income

groups and age groups.

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1. Do you have a life insurance policy? If yes, then of which

company/companies?

PEOPLE HAVING INSURANCE POLICIES

72%

28%

Yes

No

% OF INSURED POPULATION IN VARIOUS

COMPANIES

28%

32%

8%

17%

3%6%

6%0% Bajaj Allianz

LIC

Max Newyork

ICICI PruTATA AIG

Birla sun life

AVIVA

Out of the 50 insurable people interviewed nearly 72% people have

taken insurance policy. Out of this population being interviewed nearly 32 %

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had LIC policy, 28 % had BAJAJ Allianz, followed by ICICI Pru. (17 %), Max New

York Life (8 %) , TATA AIG(3%), Birla Sun Life (6%), Aviva and HDFC having 6%

shares each in the interviewed population.

2. Do you see insurance policies as an investment alternative

or a security option?

Out of the 50 people interviewed 78 % people term/see

insurance policy as a security option while only 22 % see it as aninvestment option.

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3. Please rank the following as per your preference to

investment in a financial year:

Out of 50 being interviewed, 18 people invest in life

insurance policies, 16 people invest in shares, 12 people invest in

mutual funds and 4 people invest in government bonds.

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4. What is your criteria/criterion to select a particular insurance

company and a scheme?

Out of 50 people being interviewed, 15 people select an

insurance company on the criterion of security, 5 people select an

insurance company on the criterion of time span, 2 people select

an insurance company on the criterion of market share, 8 people

select an insurance company on the basis of return and 20 people

select an insurance company on the basis of all the abovementioned reasons.

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5. Rank the life insurance companies in the order of preference:

FIRST PREFERENCE OF PEOPLE AMONG PVT. LIFE

INSURANCE COMPANIES

46%

24%

14%

16%

BAJ AJ Allianz

ICICI Prudential

Max Newyork

HDFC

Out of 50 people interviewed, 46% had BAJAJ Allianz as their

first preference for a pvt. Life insurance company followed by ICICI

Prudential having 24 % preference followed by HDFC Life

insurance having 16% market share and lastly Max New York Life

Insurance.

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6. Do you think that private life insurance companies are as safe

as LIC for taking a policy?

Out of 50 people being interviewed, 62 % of people do not

find private life insurance companies to be safe for buying a life

insurance policy whereas 38 % people find them safe for buying a

life insurance policy from a private life insurance company.

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7. BAJAJ Allianz is quite a famous company because:

Out of 50 people interviewed, 16 % people perceive policies

of BAJAJ Allianz make it a famous company while 20% think it is

due to the parent companies, 24% take it as marketing and

advertising strategies which appeal to the mass population while

40 % think it is all due to the above mentioned reasons that BAJAJ

ALLIANZ is a famous company.

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8. Are you satisfied with your existing policy/policies?

Out of 50 interviewed, 69% of the people were satisfied with

their life insurance policies while only 31% of people were not

satisfied.

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(B) ANALYSIS OF PROJECT

Analysis of a research project is based on the primary data

which is being collected from various sources to take out some

conclusions of the research study being taken. In my project my

purpose was to find the market credibility of BAJAJ Allianz among

various other private life insurance companies. For this a

population of 50 people was being interviewed having different

lifestyles, different incomes, different occupations yet the point

which was kept in mind was that this interviewed population was

insurable.

The questionnaire filled up by people revealed that nearly

36 people i.e. about 72% people have life insurance policies. This

is due to the fact that people now have started realizing that life is

very uncertain and it is advisable to have a life insurance policy.

Nearly, 24 % people had LIC policy and 20% people have BAJAJ

Allianz as their life insurance policy. The reason that people have

more LIC policy is that it is an old company for life insurance and

secondly it is a government-controlled organization.

Secondly,when enquired about the perception of people

about insurance policies, nearly 39 people i.e. about 78% people

see it as a security option for their families financially so that if

they are not alive some day, their family does not go in vain.

While 11 people i.e. about 22% people see it an investment

option to save taxes and get returns.

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Thirdly, when asked about their investments in various

alternatives, 18 people gave life insurance policies their first

preference for investment whereas 16 gave shares as their first

preference followed by mutual funds (12) and lastly government

bonds. This clearly shows that people are risk averse to a large

extent as largest numbers of people like to invest in life insurance

policies to make sure that there is security.

Fourthly, when they were asked about the criterion of

choosing a life insurance company 15 people replied that they

see the security point of view to buy a life insurance company. 5

people chose time span as the criteria to choose a life insurance

company. 2 people chose the market share of the company as

the preferred criteria of choosing the life insurance company. 8

people chose the returns of life insurance companies as the

criteria for choosing a life insurance company.

Nearly, 20 people chose all the above mentioned

reasons to choose a life insurance company. When the

sample population was interviewed about their 1st preference

among the Pvt. Players, nearly 46% people chose BAJAJ Allianzas the 1st insurance company, 24% people chose ICICI Prudential

as the 1st preference, and 16% chose HDFC as the 1st insurance

company and 14% people chose Birla Sun life as the 1st preferred

company. When sample size was asked about safetyness of an

insurance policy as compared to LIC policy nearly 62 % people

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replied that they do not find private life insurance companies as

safe as LIC, this is due to the fact that LIC had monopoly into life

insurance till 2000. Only after 2000, private companies have

come in the field of Life Insurance Company.

Proceeding further, when sample population was asked to

recognize the punch line of BAJAJ Allianz nearly 60 % of the

population was able to recognize the punch line of BAJAJ Allianz

which clearly indicates that BAJAJ Allianz is a well known life

insurance company among the people. Followed by it, when

sample size was interviewed about the reasons of famousness of

BAJAJ Allianz 16% of people chose its policies as the reason for

its famousness, 20% people chose its parent companies as the

reason for its popularity, 24% agreed for its marketing and

advertising strategies to be the prime cause of its popularity

among masses.

Whereas 40% population agreed to all of the above

mentioned reasons to be causes of the popularity of BAJAJ

Allianz. When asked about the satisfaction with the existing

insurance policies nearly 69% people said that they are satisfiedwith their policy whereas only 31% people were not satisfied with

their policy. They wanted the additional features of transparency

about the returns after when they have stopped paying the

premiums. Also they wanted higher rate of returns at the end of

payment of premiums.The questionnaire being filled by the

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people clearly indicated that BAJAJ Allianz has a better standing

in the field of life insurance in India among other private life

insurance companies. As we all know that India provides a great

potential for all the life insurance companies to grow provided

they adopt the right kind of marketing & distribution strategy.

Although BAJAJ Allianz is a market leader among the private life

insurance companies but it is way behind LIC because LIC is a

government organization and also it is a much older life

insurance company.

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CHAPTER 8

CONCLUSION, LIMITATIONS AND SUGGESTIONS

CONCLUSION

The research project titled as MARKET CREDIBILITY OF

BAJAJ ALLIANZ AMONG OTHER LIFE INSURANCE

COMPANIES enabled to understand the competition among the

various life insurance companies, which have entered Indian

market of life insurance after 2000 when private life insurance

companies were allowed to enter the Life insurance sector in

India.

BAJAJ Allianz is one of the companies in the private sector

which are doing exceptionally good in this sector due to their

policies to which people find very attracting according to their

needs. When people were interviewed about the first preference

among the private life insurance companies nearly 46% replied

for BAJAJ Allianz, this clearly indicates that BAJAJ Allianz is quite

a household name.

The reasons for this are many like it is a company with very

strong brand names : BAJAJ Auto Limited which is the no. 1

Automotive Manufacturer in India also Allianz AG is 3 rd largest life

insurance company in the world. The market share of BAJAJ

Allianz also around 34% among private life insurance companies

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which is quite high among private life insurance companies. It is

only second to LIC in the life insurance sector.

But if there are people accepting BAJAJ Allianz, there are

people who are still hesitant to take up private insurance

companys policy this is due to the fact that LIC is a government

organization. It can be seen from the study that people have

started recognizing BAJAJ Allianz as a life insurance and hence it

will grow at a much faster pace in the future.

LIMITATIONS

Following were the difficulties faced during the completion of

project:

1. Non-filling up of certain questions of the questionnaire, which

led to the cancellation of that particular questionnaire.

2. Non-understanding of certain parameters in the questionnaire.

3. Taking a sample size of 50 people does not reflect the mindset

of all kinds of people from different backgrounds, different age

groups and income groups.

4. Again research study of 2 months is a time constraint and

covering whole of Nathdwara population by taking a sample

size of 50 is not feasible.

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SUGGESTIONS

BAJAJ ALLIANZ, in the present scenario is growing at an

aggressive pace. The company does a lot of survey & analysis in

the market to discover customers needs & expectations & tries

to improvise on its existing market linked plans along with

insurance policies. In addition to this , the company from time to

time keeps on introducing various new policies & tailor made

plans exclusively to cater peoples financial needs.

This has enabled BAJAJ Allianz to become market leader

in the sector of insurance & investment companies since 2001

when it came into existence.

Since, now many other companies are joining the field of

insurance & investments, it will be necessary for BAJAJ Allianz to

vigorously pursue & update its survey & analysis policy to remain

market leader.

Simultaneously, it should discover & rediscover its strength

by introducing new plans better suited to the people at large. India

is a very big market & it can provide sustenance to all the

companies in the field of insurance & investments but to remain

one of the leading companies, BAJAJ Allianz has to adopt new

strategies earlier than others. This could include widening the

distribution networks to all parts of the country & catering to every

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income group.

Furthermore, it can improvise on its advertisements &

promotion campaigns by becoming more appealing & making them

touches the hearts of millions & billions of Indians who are the hot

prospects. Lastly, the students in the professional courses,

apprentices, trainees may be good targets to approach in times

ahead.

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CHAPTER 9

BIBLIOGRAPHY

Philip Kotlar, Marketing Management, New Delhi, Pearson

Education (P) Ltd., Indian Branch, 2004.

C.R. Kothari, research Methodology, New Delhi, New Age

International (P) Ltd.

WEBSITES

www.bajajallianzlife.co.in

www.icici.com

www.lic.gov.in

www.hdfc.com

www.kotak.com

www.birlasunlife.com

www.aviva.com
http://www.bajajallianzlife.co.in/http://www.icici.com/http://www.lic.gov.in/http://www.hdfc.com/http://www.kotak.com/http://www.birlasunlife.com/http://www.aviva.com/http://www.bajajallianzlife.co.in/http://www.icici.com/http://www.lic.gov.in/http://www.hdfc.com/http://www.kotak.com/http://www.birlasunlife.com/http://www.aviva.com/

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