a study on customer awareness bajaj allianz

8/13/2019 a study on customer awareness bajaj allianz

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EXECUTIVE SUMMARY

The project report on A study on Customer Awareness To Enhance Market Share

Of Bajaj Allianz nit !ink "nsurance #lan$ in %u&li city' " throu(h under took the project

&y the help of BA)A) A!!"A*+ !ife "nsurance !td' Sales team mana(er Chandru'

A',allana(oudar

Objectives:

-' To study the awareness le.el of Bajaj Allianz !"#s with .iew to

recommend measure to impro.e market share'

/' To find .ital communication media'

0' To know the factors that influence in.estors while takin( in.estment

decisions'

1' To find potential market for !"#s'

Scope of the study:The research was undertaken to (ather information from the

respondent to know e2actly how many people aware of !"#s in

%u&li city and the study is restricted within the city'

One of the fast (rowin( city in ,arnataka and represents hu(e

market for scope with more than 34 lakhs people'

%u&li is one of the commercial areas '

"t is a place where the small and lar(e industries are located 'with

the more increase population and there style more people are

conscious a&out the their li.es'

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LIMITATIO S O! T"E STU#Y

*ot sin(le work is e2ception to the limitations e.ery work has (ot its own

limitations5 so due to time constraint my study confines only to %u&li city and it is not

possi&le to make e2tensi.e study' "t is assumed that the sample selected represents entire

population'

RESEARC" MET"O#OLO$Y

#%t% sou&ce :'&i(%&y )!i*ed Su&vey+

Seco,d%&y d%t% )i,te&,%*+

A&e% of Rese%&ch : "ub*i cityRese%&ch i,st&u(e,t : -uestio,,%i&esS%(p*e p*%, : 'e&so,%* i,te&vie.

S%(p*e u,it :/usi,ess(%,0s1 jobho*de&s1

p&ofessio,%*s etc2S%(p*i,3 (ethod : R%,do( s%(p*i,3S%(p*e si4e : 566 custo(e&s

I #EX

'ARTICULAR '%3e ,o

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Chapter-I

5+ I,t&oductio, 67

8+ Lite&%tu&e Revie. 59

+ St%te(e,t of the p&ob*e( 57

;+ 'u&pose of the study 57

Chapter-II

5+ O&3%,i4%tio, '&ofi*e 87

8+ O&3%,i4%tio, Ch%&t =8

+ S%(p*i,3 =;

;+ Rese%&ch #esi3, =;


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Bee *y Repo&ts

8+ /ib*io3&%phy 78

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I,dust&y ove&vie.

A &rief history of the "nsurance sector

The &usiness of life insurance in "ndia in its e2istin( form started in "ndia in the year6 7

BABASAB #AT"! 8


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-9-

9

:ith the esta&lishment of the Oriental !ife "nsurance Company in

Calcutta' Some of the important milestones in the life insurance

&usiness in "ndia are6

-3-

/

The "ndian !ife Assurance Companies Act enacted as the first statute to

re(ulate the life insurance &usiness'-3/

9

The "ndian "nsurance Companies Act enacted to ena&le the (o.ernment

to collect statistical information a&out &oth life and non7life insurance

&usinesses-30

9

Earlier le(islation consolidated and amended to &y the "nsurance Act

with the o&jecti.e of protectin( the interests of the insurin( pu&lic

-38;

By the mid7-384s5 there were around -


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The "nsurance ?e(ulatory @ e.elopment Authority5 an autonomous insurance re(ulator

set up in /4445 has e2tensi.e powers to o.ersee the insurance &usiness and re(ulate in a

manner that will safe(uard the interests of the insured'

I SURA CE SECTOR RE!ORMS

ue to immense (rowth in the insurance sectors the re(ulations were introduced' "n

-3305Malhotra Committee headed &y former >inance Secretary and ?B" o.ernor was

formed to e.aluate the "ndian insurance industry and (i.e its recommendations' After this

committee the re(ulatory &ody for insurance sector was formed with the name of "? A'

I SURA CE RE$ULATORY A # #EVELO'ME T AUT"ORITY

)IR#A+

"? A has &een formed as an authority to protect the interests of insurance policies5 to

re(ulate5 promote and ensure orderly (rowth of insurance "ndustry and for matters

connected therewith of incidental thereto'

Composition of Authority under "? A Act5 -333

As per the section 1 of "? A Act of -3335 The Authority is a ten7mem&er team

consistin( of''

- A Chairman

/ 8 :hole team Mem&ers

0 1 part time mem&ers

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Duties, Powers and Functions of IRDA

Section -1 "? A Act5 -333 lays down the duties5 powers and functions of "? A

-' The Authority has the duty to re(ulate5 promote and ensure orderly (rowth of the

"nsurance &usiness and re7 insurance &usiness'

/' This "nclude 7

a "ssue to the applicant a certificate of re(istration5 renew5 modify ,

:ithdraw5 suspend or cancel such re(istration'

& #rotection of interests of the policy holders in matter concernin( assi(nin(

of policy5 nomination &y policyholders5 insura&le interest5 settlement of

insurance claim5 surrender .alue of policy and condition of contracts of

insurance'

c Specifyin( the code of conduct and practical trainin( for intermediary or

insurance intermediaries and a(ents

0' Specifyin( the code of conduct for sur.eyors and loss assessors'

1' #romotin( efficiency in the conduct of insurance &usiness'

8' #romotin( and re(ulatin( professional or(anization connected with insurance and

reinsurance &usiness'

;' !e.yin( fees and other char(es for carryin( out the purposes of this act'


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-4' ?e(ulatin( in.estment of funds &y insurance companies'

--' ?e(ulatin( maintenance of mar(in of sol.ency'

-/' Adjudication of disputes &etween "nsurers and intermediaries or insurance

intermediaries'

-0' Super.isin( the functionin( of the Tariff Ad.isory Committee'

-1' Specifyin( the of #remium5 "ncome of the insurer to finance schemes for

promotin( and re(ulatin( professional or(anizations

-8' Specifyin( the of !ife "nsurance Business and (eneral "nsurance Business to &e

undertaken &y the "nsurer in the rural or social sector'

The "? A since its incorporation as a statutory &ody has &een framin(

?e(ulations and re(isterin( the pri.ate sector insurance companies' "? A &ein( an

"ndependent statutory &ody has put a framework of (lo&ally compati&le re(ulations'

I,di%, I,su&%,ce Secto&

The "nsurance sector in "ndia (o.erned &y "nsurance Act5 -3095 the !ife "nsurance

Corporation Act5 -38; and eneral "nsurance Business F*ationalization Act5 -3


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ha.e &een re(istered'

LI!E I SURERS

'ub*ic Secto&

!ife "nsurance Corporation of "ndia

LIFE INSURANCE CORPORATION OF INDIA (LIC)

An Act of #arliament5 .iz'5 !ife "nsurance Corporation Act5 formed !ife "nsurance

Corporation of "ndia F!"C in Septem&er -38;5 with capital contri&ution from the

o.ernment of "ndia'

The objective .%s 6 to conduct the &usiness with the utmost economy5 in a spirit of

trusteeshipG to char(e premium no hi(her than warranted &y strict actuarial

considerationsG to in.est the funds for o&tainin( ma2imum yield for the policy holders

consistent with safety of the capitalG to render prompt and efficient ser.ice to policy

holders5 there&y makin( insurance widely popular'

Since nationalization5 !"C has &uilt up a .ast network of /5419 &ranches5 -44 di.isionsand < zonal offices spread o.er the country' The !ife "nsurance Corporation of "ndia also

transacts &usiness a&road and has offices in >iji5 Mauritius and nited ,in(dom'

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CURRE T SCE ARIO O! T"E I SURA CE I #USTRY

"nno.ati.e products and a((ressi.e distri&ution ha.e &ecome the say of the day' "ndians5

ha.e always seen life insurance as a ta2 sa.in( de.ice5 are now suddenly turnin( to the

pri.ate sector that are pro.idin( them new products and .ariety for their choice'

'RIVATISATIO :

There were .arious reasons (i.en &y the (o.ernment to nationalize the insurance

sector was to take insurance to the mass5 facilitate the flow of lon( term funds Fwhich

insurance companies5 &y .irtue of the &usiness they are in5 ha.e ready access to into

de.elopment of infrastructure in the country5 and safe (uard the interest of the policy

holders' Towards this end5 state insurers did de.elop the insurance sector5 thou(h most

e2perts &elie.e that these monopolies could ha.e done much5 much more'

"n the early nineties is5 the (o.ernment went on a reforms &in(e and started loosin(

controls on "ndian industry' "n -330 the (o.ernment appointed the Malhotra committee

headed former ?B" (o.ernor ?'*'Malhotra5 to draw up a &lue print for insurance sector

reforms' The panel su&mitted its report a year later5 recommendin( pri.atization5 &acked

&y stiff entry (uidelines and strin(ent re(ulations5 so as to a.oid repeat per

nationalization free for all'

The insurance re(ulatory and de.elopment authority F"? A was founded to

re(ulate the sector and o.er see the process of pri.atization' "n /4445 the "? A started

(i.in( out licenses5 and a year later5 the first of the pri.ate players started operation' The

wheel had come full circle'

BABASAB #AT"! --


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nder state control5 the insurance sector5 &oth life and non7life 5(rew steadily'

Still5 "ndians are not adeDuately insured and la( &ehind most countries' Total insurance

penetration Finsurance premium as a percenta(e of (ross domestic product is dismal

when compared to its economic standin(' )ust / of the population has some of life

insurance'

LI!E I SURA CE COM'A IES I I #IA ? T"EIRMARDET S"ARE )%s pe& (%&ch 6=+:

I #IA

'ROMOTER

!OREI$

'ROMOTER

COU TRY I SURER BE/SITE MARDET

S"ARE/%j%j Auto A**i%,4 A$ $e&(%,y /%j%j A**i%,4

Life I,su&%,ce

b%j%j%**i%,42co2i, >2


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'&ude,ti%* Life

I,su&%,ce"#!C St%,d%&d Life UD "#!C St%,d%&d

Life I,su&%,ce

hdfci,su&%,ce2co

(

827

S/I C%&dif )%&( of

/ ' p%&ib%s+

C%,%d% S/I Life

I,su&%,ce

sbi*ife2co2i, 82

Adity% /i&*%

$&oup

Su, Life C%,%d% /i&*% Su, Life

I,su&%,ce

bi&*%su,*ife2co( 527

TATA A(e&ic%,

I,te&,%tio,%*

$&oup

USA T%t% AI$ Life

I,su&%,ce

t%t%F%i32co( 52

M% I,di% e. Yo& *ife USA M% e. Yo&

*ife i,su&%,ce

M% ,e.yo& *ife2

co(

528

#%bu& I,di% Aviv% '*c USA Aviv% Life

I,su&%,ce

%viv%i,di%2co( 525

Dot%

M%hi,d&%

fi,%,ce

O*d Mutu%*

'*c

Aust&%*i% Dot% M%hi,d&%

O*d Mutu%*

!u,ds

O( ot% (%hi,d

&%2co(

525

Vysy% /%, I $ $&oup ethe&*%,ds I $Vysy% Life

I,su&%,ce

i,3vysy%*ife2co( 629

Re*i%,ce A(p S%,(%& Aust&%*i% Re*i%,ce *ife

i,su&%,ce

Re*i%,cei,di%2co

(

6252;

BABASAB #AT"! -0


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Lite&%tu&e Revie.:

The project report on A study on customer awareness to enhance market share of

Bajaj Allianz nit !ink "nsurance #lan$ in %u&li' " throu(h under took the project &y the

help of BA)A) A!!"A*+ !ife "nsurance !td' Sales team mana(er Chandru'

A',allana(oudar

/ody of the Repo&t 6

#rimary data was collected &y administration Duestionnaire of -44 customers' The

Duestionnaire was specially framed to meet the reDuirement of the sur.ey and the

followin( details'

irect contact was made with the respondents throu(h random sample to collect

the needful information with reference to our o&jecti.e as per to meet the sur.ey

reDuirement'

BABASAB #AT"! -1


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I,te&vie. tech,i@ue:

irect personal inter.iew was conducted throu(hout project usin( direct structured

and self7administrati.e Duestionnaire'

Co,c*usio, ? Reco((e,d%tio,:

Analysis was &ased on the result of the research conducted and the

recommendations are &ased on the analysis'

Li(it%tio, :

The major limitation of the project was time frame'

STATEME T O! T"E 'RO/LEM

HA study o, custo(e& %.%&e,ess to e,h%,ce (%& et sh%&e of /%j%j A**i%,4

U,it Li, ed I,su&%,ce '&oducts 2

M%,%3e(e,t '&ob*e( 6

"n the project the mana(ement pro&lem is the !"#Hs is new in the market @ the lot of

people are donHt know a&out the !"#Hs the mana(ement wants the impro.e market share

of !"#Hs'

Adv%,t%3es of i,vesti,3 i, ULI':

BABASAB #AT"! -8


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!"#s ha.e &een sellin( like pro.er&ial Ihot cakes= in the recent past and they are likely

to continue to outsell their plain .anilla counterparts (oin( ahead' So what is it that

makes !"#s so attracti.e to the indi.idual is5 as follows

-' I,su&%ce cove& p*us s%vi,3s 6 !"# ser.e the purpose of pro.idin( life insurance

com&ined with sa.in(s at market7linked returns' To that e2tent5 !"#s can &e termed as a

two7in7one plan in terms of (i.in( an indi.idual the twin &enefits of life insurance plus

sa.in(s' This is unlike compara&le instruments like a mutual fund for instance5 which

does not offer a life co.er'

/' Mu*tip*e i,vest(e,t optio,s 6 !"# offer a lot more .ariety than traditional life

insurance plans' So there are multiple options at the indi.idual=s disposal' ' !"#s

(enerally come in three &road .ariants6

A((ressi.e !"#s Fwhich can typically in.est 94 7-44 in eDuities5 &alance in

de&t

Balanced !"#s Fcan typically in.est around 14 7;4 in eDuities

Conser.ati.e !"#s Fcan typically in.est up to /4 in eDuities

BABASAB #AT"! -;


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Althou(h this is how the !"# options are (enerally desi(ned5 the e2act de&tJeDuity

allocations may .ary across insurance companies' "ndi.iduals can opt for a .ariant &ased

on their risk profile' >or e2ample5 a 047Kr old indi.idual lookin( at &uyin( a life

insurance plan that also helps him &uild a corpus for retirement can consider in.estin( in

the Balanced or e.en the A((ressi.e !"#' !ikewise5 a risk7a.erse indi.idual who is not

comforta&le with a hi(h eDuity allocation can opt for the Conser.ati.e !"#'

02!*e ibi*ity

Mutual >unds also offer hy&ridJ&alanced schemes that allow an indi.idual to select a plan

accordin( to his risk profile' The difference lies in the fle2i&ility that !"#s afford the

indi.idual' "ndi.iduals can switch &etween the !"# .ariants outlined a&o.e to capitalize

on in.estment opportunities across the eDuity and de&t markets' Some insurance

companies allow a certain num&er of Ifree= switches' This is an important feature that

allows the informed indi.idualJin.estor to &enefit from the .a(aries of stockJde&t

markets' >or instance5 when stock markets were on the &rink of


18/89

fact5 e.en the annual premium in a !"# works on the rupee cost7a.era(in( principle' An

added &enefit with !"#s is that indi.iduals can also in.est a one7time amount in the

!"# either to &enefit from opportunities in the stock markets or if they ha.e an

in.esti&le surplus in a particular year that they wish to put aside for the future'

The chart &elow shows how !"# can meet multiple needs at different life sta(es'

I,te3&%ted !i,%,ci%* '*%,,i,3

St%&ti,3 % job1

Si,3*e i,dividu%*

Rece,t*y (%&&ied1

,o ids

M%&&ied1 .ith

ids

You&

eed

!ow protection5

hi(h asset creation

and accumulation

?easona&le

protection5 still

hi(h on asset

creation

%i(her protection5

still hi(h on asset

creation &ut

steadier options5

increase sa.in(s for

child

!*e ibi*ity Choose low death

&enefit5 choose

(rowthJ&alanced

option for asset

creation

"ncrease death

&enefit5 choose

(rowthJ&alanced

option for asset

creation

"ncrease death

&enefit5 choose

&alanced option for

asset creation'

Choose riders for

enhanced

protection' se top7

ups to increase

BABASAB #AT"! -9


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your accumulation

Dids 3oi,3 to

schoo*1 co**e3e

"i3he& studies fo& chi*d1

(%&&i%3e

Chi*d&e, i,depe,de,t1 ,e%&i,3

the 3o*de, ye%&s%i(her #rotection5

hi(h on asset

creation &ut

steadier options5

liDuidity for

education e2penses

!ump sum money for

education5 marria(e' >acility to

stop premium for /70 yrs for

these e2tra e2penses

Safe accumulation for the (olden

yrs'Considera&ly lower life

insurance as the dependencies

ha.e decreased

BABASAB #AT"! -3


20/89

:ithdrawal from

the account for the

education e2penses

of the child

:ithdrawal from the account

for hi(her educationJmarria(e

e2penses of the child' #remium

holiday7to stop premium for a

period without lapsin( the

policy

ecrease the death &enefit7

reduce it to the minimum

possi&le' Choose the income

in.estment option' Top7ups form

the accumulation Fwith reduced

e2penses for the (olden yrs cash

accumulation

Because of their fle2i&ility to adjust to different life sta(e needs5 !"#s fit in .ery well

with financial plannin( efforts'

Li(it%tio,:

-' "t is prudent to make eDuity7oriented in.estments &ased on an esta&lished track record

of at least three years o.er different market cycles' !"#s may not fulfill this criterion in

near future'

/' "nsurance and sa.in(s are two different (oals and it is &etter to address them separately

rather than &undle them into a sin(le product' A com&ination of a term plan and a mutual

BABASAB #AT"! /4


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fund could (i.e &etter results o.er the lon( term'

0'The free hand (i.en to !"#s mi(ht pro.e risky if the timin( of e2it happens to

coincide with a &earish market phase5 &ecause of the inherently hi(h eDuity component of

these schemes'

1' An initial allocation char(e is deducted from in.estor premiums for sellin(5 marketin(

and &roker commissions' These char(es could &e as hi(h as ;8 per cent of the first year

premiums' #remium allocation char(es are usually .ery hi(h F87;8 per cent in the firstcouple of years5 &ut taper off later' The hi(h initial char(es mainly (o towards fundin(

a(ent commissions5 which could &e as hi(h as 14 per cent of the initial premium as per

"? A re(ulations'

The char(es are hi(her for a linked plan than a non7linked plan5 as the former reDuire lot

more ser.icin( than the latter5 such as re(ular disclosure of in.estments5 switches5 re7

direction of premiums5 withdrawals5 and so on' "nsurance companies ha.e the discretion

to structure their e2penses structure whereas a mutual fund does not ha.e that lu2ury' The

e2pense ratios in their case cannot e2ceed /'8 per cent for an eDuity plan and /'/8 per

cent for a de&t plan respecti.ely' The lack of re(ulation on the e2pense front works to the

detriment of in.estors in !"#s'

8' The front7loadin( of char(es does ha.e an impact on o.erall returns as in.estors lose

out on the compoundin( &enefit' "nsurance companies e2plain that char(es (et e.ened

BABASAB #AT"! /-


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out o.er a lon( term' Thus in.estors are forced to stay with the plan for a lon(er tenure to

e.en out the effect of initial char(es as the shorter the tenure5 the lower will &e the

in.estor real returns'

;' "n effect5 when in.estor lock in their money in a !"#5 despite the promise of

fle2i&ility and liDuidity5 in.estor will stuck with one fund mana(ement style' This is all

the more reason to look for an esta&lished track record &efore committin( in.estor hard7

earned money'


23/89

Scope of the study:

The research was undertaken to (ather information from the respondent to know

e2actly how many people aware of !"#s in %u&li city and the study is restricted within

the city'

The reason for confinin( the scope of the research in %u&li were'

/ One of the fast (rowin( city in ,arnataka and represents hu(e market for scope

with more than 34 lakhs people'0 %u&li is one of the commercial areas '

1 "t is a place where the small and lar(e industries are located 'with the more

increase population and there style more people are conscious a&out the their

li.es'

Objectives:

-' To study the awareness le.el of Bajaj Allianz !"#s with .iew to

recommend measure to impro.e market share'

/' To find .ital communication media'

0' To know the factors that influence in.estors while takin( in.estment

decisions'

BABASAB #AT"! /0


24/89

1' To find potential market for !"#s'

BABASAB #AT"! /1


25/89

52 OR$A ISATIO 'RO!ILE:

/%j%j $&oup

A STRO $ I #IA /RA # "AMARA /AGAGOne of the !ar(est / @ 0 wheeler manufacturer in the world '

/- million L .ehicles on the roads across the (lo&e

mana(in( funds of o.er ?s8/44crore

BABASAB #AT"! /8


26/89

Bajaj Auto finance one of the lar(est auto finance companies in "ndia ?s8301cr

turno.er and profits after ta2 of


27/89

Esta&lished in -934 5more than --4 years of e2perience in insurance'

Allianz has o.er rankfurt'

!ondon '

#aris'

+urich'

*ew Kork'

BABASAB #AT"! /


28/89

"nsurance to almost half of the >ortune 844 companies'

/%j%j A**i%,4 *ife I,su&%,ce

BABASAB #AT"! /9


29/89

Bajaj Allianz life Insurance Company Limited is a joint venture between Bajaj

Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise

BABASAB #AT"! /3


30/89

stability and stren!th.

Bajaj Allianz General Insurance received the Insurance "e!ulatory and

#evelopment Authority $I"#A% certificate of "e!istration $"&% on 'ay (nd ())* to

conduct General Insurance business $includin! +ealth Insurance business% in India.

,he Company has an authorized and paid up capital of "s **) crores. Bajaj Auto

holds - / and the remainin! (0/ is held by Allianz AG Germany.

Key Achievements in FY 2005-06 :

*o'- #.t !ife "nsurer >K /44;74;' !eadin( &y ?s'


31/89

Co(p%,y pu,ch *i,e

Missio,:

BABASAB #AT"! 0-


32/89

As a responsi&le customer focused market leader5 we will stri.e to understand

the insurance needs of the consumers and translate it into afforda&le products that deli.er

.alue for money'

Bhy /%j%j A**i%,4 Life I,su&%,ce:

The Bajaj Allianz ifference

Business strate(y ali(ned to clientsH needs and trends in "ndian and (lo&al

economy J industry'

"nternationally e2perienced core team5 majority with local &ack(round'

>ast5 decentralized decision7makin('

!on(7term commitment to market and clients'

Sh%&eho*de& i, /%j%j A**i%,4 *ife i,su&%,ce co(p%,y 6

/%j%j Auto Li(ited

Bajaj Auto !imited is the lar(est manufacturer of two and three Nwheelers in "ndia and

also one of the lar(est manufacturers in the world' Bajaj Auto has &een in operation for

o.er 88 years' As a promoter of Bajaj Allianz eneral "nsurance Company !td'5 Bajaj

Auto has the followin( to offer'

ast distri&ution network'

,nowled(e of "ndian consumers'

>inancial stren(th and sta&ility to support the insurance &usiness'

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C"A EL 'ART ERS

Bancassurance 8anta!e

BABASAB #AT"! 00
http://www.allianzbajaj.co.in/corporateweb/channel/ba/index.htmlhttp://www.allianzbajaj.co.in/corporateweb/channel/ba/index.html


34/89

*"T !"*,E "*S ?A*CE #!A* O? MA?,ET !"*,E

"*S ?A*CE #!A* F !"# '

INTRODUCTION TO ULIP

!"# came into play in the -3;4s and &ecame .ery popular in :estern Europe and

Americas' The reason that is attri&uted to the wide spread popularity of !"# is &ecause

of the transparency and the fle2i&ility which it offers' As times pro(ressed the plans were

also successfully mapped alon( with life insurance need to retirement plannin(' "n

todayHs times5 !"# pro.ides solutions for insurance plannin(5 financial needs5 financial

plannin( for childrenHs future and retirement plannin(' >eatures of !"# distin(uish

itself throu(h the multiple &enefits that it pro.ides to the consumer' The plan is a one7

stop solution pro.idin(6 !ife protectionP "n.estment and Sa.in(sP >le2i&ility7 Adjusta&le

!ife Co.er7 "n.estment OptionsP TransparencyP Options to take additional co.er a(ainst7

eath due to accident7 isa&ility7 Critical "llness7 Sur(eriesP !iDuidity'

!"# distin(uishes itself throu(h the multiple &enefits it pro.ides to the policyholders'

These plans are desi(ned with a .iew to help the customers to utilize the market

opportunities &y in.estin( in the share market5 capital market and at the same time ha.e

the facility of eath Benefit and Maturity Benefit'

BABASAB #AT"! 01


35/89

Me%,i,3

"t is a plan5 which pro.ides !ife "nsurance5 and here policy .alue at any time .aries

accordin( to the .alue of the underlyin( asset at that time 2

"t is a plan that pro.ides the client with the &enefit of protection and fle2i&ility'

An !"# plan works as a one7stop ad.anta(e for the policyholder' "t (i.es the

policyholder a wholesome ad.anta(e of inte(rated financial plannin('

STRUCTURE O! ULI':

!"#

BABASAB #AT"! 08

CO*T?"B T"O*CO*T?"B T"O*

!ESS7 C%A? ES!ESS7 C%A? ES

!">E CO E? !">E CO E? "* ESTME*T?E#?ESE*TE AS

*A

"* ESTME*T?E#?ESE*TE AS

*A


36/89

*A CO*CE#T

"t e2hi&its the .alue For the price that one has for his in.estment or one will ha.e to pay

for his in.estment'

As5 the in.estment made &y different people are different5 the .alue For the price is the

e2pressed in per unit terms' "t helps in knowin( the .alue of "nsurance at any point of

time'

Technical Calculation of *A 6 7

*"T alue Q FTotal market alue of all assets in.ested less e2penses related

to "n.estment mana(ement J Total no' of outstandin( units

>actors affectin( *A 6

Market alue of in.estment portfolio5 *um&er of nits5 E2penses and "n.estment

"ncome'

E26 "f /5445444 J7 has &een accumulated in the eDuity fund and the no' of units issued is

-45444 J7 then the *A of the eDuity fund is6 7

/5445444 J -45444 Q ?s /4 J 7

As the eDuity market de.elop the fund (rows from /5445444 J 7 to //45444J7

*ow the *A Q /5/45444 J -45444 Q ?s // J 7

"f amon( these -45444 units the policyholder has 8444 units then the .alue of in.estment

as of now is ?s -5-45444'

Thus a unit linked plan actually tells5 what is the .alue of the fund

BABASAB #AT"! 0;


37/89

' /ASIC !EATURES O! ULI'

-' !ife protection

/' "n.estment and sa.in(s

0' >le2i&ility

1' Transparency

8' Added Benefits

a eath due to accident

& Any kind of disa&ility

c Critical illness

d Sur(eries;' !iDuidity


38/89

5+ LI!E 'ROTECTIO

StartWorking

Start aFamily

ChildrenEstablishing Career

Retirement Time

The (raph shows the .arious needs of the customer at different point of time5

indi.iduals needs differ and his need for life protection fluctuates' !"# satisfies

the .aryin( needs of the customer pro.idin( him with more and more

protection as and when he reDuires5 &y allowin( the policyholder to increase or

decrease the death &enefit'

"t is usually multiple of the contri&ution &ein( paid5 which ensure that thecontri&ution is adeDuate enou(h to pro.ide life protection' And is also a&le to

maintain a sem &alance &etween protection and sa.in(s'

BABASAB #AT"! 09


39/89

8+ I VESTME TS A # SAVI $S

!"# pro.ides the client with option of in.estin( as per his risk appetite and (ets

returns accordin(ly' These .arious options a.aila&le for an indi.idual to make

in.estment in comparati.ely hi(h risks instruments and (et hi(h returns' Below

shown is a (raph illustratin( the .arious in.estment options for a client'

Shorttermdebt

funds

Debtfunds

Balanced funds

Equityfunds

?isk

E2ample -6 %ere are four types of funds in which a client can in.est' "n each casethe risk (oes on increasin( with the type of fund' The client has an option to shift

as the risk and return orientation chan(es FSwitch '

+ !LEXI/ILITY

BABASAB #AT"! 03


40/89

The client has an option to choose the amount of sum assured and the premium

amount he is capa&le of payin(' "n case of certain plans of !"# the client is

allowed to choose the premium'

E(6 !ifetime and !ifetime " the client has a fle2i&ility to decide the life co.er

accordin( to his financial needs5 independent of premium selected'

>ollowin( points enumerate the fle2i&ility feature of !"#

%+ I,c&e%se i, de%th be,efit2

As life cycle chan(es of a client he passes throu(h .arious risks and

responsi&ilities' %e can increase or decrease the death &enefit accordin(ly'

b+ #ec&e%se i, de%th be,efit2

"f the client is una&le to pay the same amount of premium he can decrease

the death &enefit with certain conditions applyin( accordin( to the

particular plans'

c+ '&e(iu( ho*id%y

After payin( the premium re(ularly for 0 years from the startin( date of

the policy the client can take a premium holiday if he is una&le to pay a

particular premium due' On returnin( from the premium holiday the client

can pay the pre.ious premiums if he desires or continue from that date'

d+ Choice of fu,d2

BABASAB #AT"! 14


41/89

There are four kinds of funds a.aila&le for a client of !"#' %e has an

option to switch &etween these four funds' %e can either choose only one

or in.est in all four dependin( on his risk tolerance'

#lan #lan o&jecti.e ?isk "n.estment patternMa2imiser

F rowth

%i(h (rowth and

capital appreciation

o.er a lon( terms

%i(h EDuity and eDuity

related securities6 Ma2

34 5 e&t5 money

market and cash6 Min

-4Balancer

F&alanced

Balance of capital

appreciation and

study returns o.er a

lon( terms

A.era(e EDuity and eDuity

related securities6 Ma2

14 5 e&t5 money

market and cash6 Min

;4#reser.er EDual &alance of

capital appreciation

and study returns

o.er a lon( term

!ow e&t instrument6 Ma2

84

Money market and

cash6 Min 84#rotector

F"ncome

Study returns o.er a

lon( term'

Moderate e&t instrument6 Ma2

-44

Money market and

cash6 Ma2 /8

e S.itch bet.ee, the fu,ds

The policyholder has a choice two reallocate the premium paid &y him on

e.ery premium policy anni.ersary' %e can switch &etween the a&o.e four

funds to a.ail the ad.anta(es of market fluctuations'

f+ Top ups

BABASAB #AT"! 1-


42/89

Some times the client may ha.e surplus amount after his e2penses' !"#

allows him to sa.e that amount &y in.estin( in the insurance he can a.ail

the &enefit of top up &y payin( e2tra premium5 which will &e in.ested in

the share market &y the insurer company' The client (ets e2pert fund

mana(ement' The policyholder is allowed to do as many top ups in the

tenure of plan'

3+ '&e(iu( &edi&ectio,

The policyholder is allowed to reallocate the premium paid each time to

different fund structure' Thus whene.er the premium is due FAs per the

premium payment mode 5 he can redirect the current premium intodifferent asset allocations than the pre.ious time' This helps the

policyholder to optimize the funds in accordance to market with out usin(

the switch option'

e+ Assi3,(e,t optio,

The policyholder can assi(n the policy to any of the nominees or any &ank in

case he has taken a loan on the title of the policy' nfortunately if somethin(

happens to the policyholder then the insurer will repay the loan taken &y the

client to the e2tent of premium paid'

1 T&%,sp%&e,cy

!"# products are transparent in terms of5 the policyholder is aware of where his

contri&ution is &ein( allocated' The policyholder is aware of the .arious char(es

char(ed to him'

The arious char(es of the !"# are6 7

a Contri&ution related Char(es7 ?unnin( e2penses of the policy

& Administrati.e Char(es7 "ssuance cost5 distri&ution costs etc

BABASAB #AT"! 1/


43/89

c >und Mana(ement >ee7 cost of &ein( and sellin( the .arious financial

instruments for .arious funds'

d Mortality Char(es6 cost of pro.idin( life protection'

e ?ider char(es6 cost of other protection char(es'

f Surrender char(es6 cost to co.er initial e2penses'

( Bid offer char(es6 difference &etween the offer price of units and the sellin(

price i'e' &id price of units' "t co.ers the cost of sellin( the policy'

h Transaction specific char(es6 cost of chan(in( funds5 topin( up the in.estment

component or withdrawals

aily *A 6 A feature that lets us know on a daily &ases5 how the money in

insurance plan is (rowin('


44/89

>+ TAX 'LA I $

This is another feature of !"# that moti.es the policyholder to in.est in the

insurance plans' They usually in.est to a.ail the ta2 &enefit' ?e(ulation in "ndia

allows ta2 &enefits in the contri&ution paid under section 995 contri&ution paid for

health riders critical illness and major sur(ical is allowed ta2 &enefits under

section 94 5 as per the pre.ailin( ta2 laws'

Maturity &enefits are ta2 free under section -4F-4 5 pro.ided life come is at

least 8 times of the annual contri&ution paid'

eath &enefit is ta2 free under section -4F-4 d':ith so many ta2 &enefits a.aila&le in one instrument !"# tends to &e an

intelli(ent ta27plannin( tool'

Bo& i,3 of % ULI' '*%,

BABASAB #AT"! 11

ife rime regular !remiumife rime regular !remium

"llocated!remium

"llocated!remium

!art of the !remiumto#ards the $olicyE%$enses

!art of the !remiumto#ards the $olicy

E%$enses

"llotment of &nits "llotment of &nits 'nsuranceCharges

'nsuranceCharges

This goesto the!rotectiona(c to$ro)ideagainstthe *DEffect

This goesto the!rotectiona(c to$ro)ideagainstthe *DEffect

+arious'n)estment$tions- Facilityof #ithdra#alsand in)estingback in the'n)estment

+arious'n)estment$tions- Facilityof #ithdra#alsand in)estingback in the'n)estment

&nits that build u$ thein)estment )alue

&nits that build u$ thein)estment )alue


45/89

>or E2ample

A client put in re(ular contri&ution of ?s'/45 444 J7' >rom this amount a is deducted as

contri&ution'

Therefore if the contri&ution related e2pense is 14 7 ?s'9444J7 will &e deducted as

contri&ution char(es'

The amount that is now a.aila&le is ?s'/444479444Q-/444J7

*ow5 if the client who is a.aila&le is a(ed 04 years were to take a life co.er of 8445444J7

then mortality F-'84J7 per thousand at the a(e of 04 char(e of


46/89

Mutual fund mana(ers cannot take a similar lon( term .iew &ecause they ha.e

&ulk in.estors who can mo.e money in and out of schemes at short notice'

Bhich is bette&1 u,it *i, ed o& T&%ditio,%* p*%,0K

The two stron( ar(uments in fa.or of unit7linked plans are that Nthe in.estor

knows e2actly what is happenin( to his money and two 5it allows the in.estor to

choose the assets into which he wants his funds in.ested'

A traditional Rwith profits5H on the other hands5 is a &lack &o2 and a policyholder

has little knowled(e of what is happenin(' An in.estor in a !"# knows how much

he is payin( towards mortality5 mana(ement and administration char(es'%e also knows where the insurance company has in.ested the money' The in.estor

(ets e2actly the same returns that the fund earns5 &ut he also &ears the in.estment

risk' The transparency makes the product more competiti.e 'So if you are willin( to

&are the in.estment risk in order to (enerate a hi(her return on your retirement funds5

!"#s are for you'

Traditional Rwith profitsH policies too in.est in the market and (enerate the same

?eturns pre.ailin( in the marker' But here the insurance company e.ens out returns

to ensure that policyholders do not lose money in a &ad year' "n that sense they are

safer' !"#s also offer fle2i&ility' >or instance5 a policyholder can ask the insurance

Company to liDuidate units in his account to meet the mortality char(es if he is una&le

to pay any premium installment'

This eats into his sa.in(s5 &ut ensures that the policy will continue to co.er his

life'

BABASAB #AT"! 1;


47/89

Bhy do i,su&e&s p&efe& ULI'sK

"nsurers lo.e !"#s for se.eral reasons' Most important of all5 insurers can

sell these policies with less capital of their own than what would &e reDuired if they

sold traditional policies'

"n traditional Rwith profitsH policies5 the insurance company &ears the

in.estment risk to the e2tent of the assured amount '"n !"#s5 the policyholder &ears

most of the in.estment risk'

Since !"#s are de.ised to mo&ilize sa.in(s5 they (i.e insurance companies anopportunity to (et a lar(e chunk of the asset mana(ement &usiness5 which has &een

traditionally dominated &y mutual funds'

A&e u,it *i, ed i,su&%,ce p*%,s 3oodK

Most insurers in the year /441 ha.e started offerin( at least a few unit7linked

plans ' nit7linked life insurance products are those where the &enefits are e2pressed

in terms of num&er of units and unit price' They can &e .iewed as a com&ination of

insurance and mutual funds'

The num&er of units that a customer would (et would depend on the unit price

when he pays his premium' The daily unit price is &ased on the market .alue of the

underlyin( assets FeDuities5 &onds5 (o.ernment securities5 etc and computed from the

net asset .alue'

The ad.anta(e of unit Nlinked plans is that they arte simple5 clear5 and easy to

understand' Bein( transparent the policyholder (ets the entire upside on the

BABASAB #AT"! 1


48/89

performance of his fund 'Besides all the ad.anta(es they offer to the customers5 unit7

linked plans also lead to an efficient utilization of capital'

nit Nlinked products are e2empted from ta2 and they pro.ide life insurance'

"n.estor welcome these products as they pro.ide capital appreciation e.en as the

yields on (o.ernment securities ha.e fallen &elow ; percent 5 which has made the

insurers slash payouts'

Accordin( to the "? A5 a company offerin( unit7linked plans must (i.e the

in.estor an option to choose amon( de&t5 &alanced and eDuity funds' "f you opt for a

unit7linked endowment policy5 you can choose to in.est your premiums in de&t5 &alanced or eDuity plans'

"f you choose a de&t plan5 the majority of your premiums will (et in.ested in

de&t securities like (ilts and &onds' "f you choose eDuity5 then a major portion of your

premiums will &e in.ested in the eDuity market' The plan you choose would depend

on your risk profile and your in.estment needs'

The ideal time to &uy a unit7linked plan is when one can e2pect lon( term

(rowth ahead ' This is especially so if one also &elie.es that current market .alues

Fstock .aluations are relati.ely low'

So if you are optin( for a plan that in.ests primarily in eDuity 5 the &uzzin( market

could lead to windfall returns' %owe.er 5 should the &uzz die down 5 in.estors could &e

left stun('

"f one in.ests in a unit7linked pension plan early on 5 say when one is /85 one

can afford to take the risk associated with eDuities 5 at least in the planHs initial sta(es'

%owe.er 5as one approaches retirement the Duantum of returns should &e su&ordinated to

BABASAB #AT"! 19


49/89

capital preser.ation' At this sta(e 5 in.estin( in plan that has an eDuity tilt may not &e a

(ood idea'

Considerin( that unit7linked plans are relati.ely new launches5 their short history

does not permit an assessment of how they will perform in different phases of the stock

market' E.en if one .iews insurance as a lon( term commitment5 in.estments &ased on

performance o.er such a short time span may not &e appropriate'

A**i%,4 /%j%j *%u,ches its fi&st u,it *i, ed po*icy '

Allianz Bajaj !ife "nsurance Company has launched nit ain 5 the companyHsfirst unit linked policy' nit ain allows customers to com&ine the &enefits of life

insurance with hi(her in.estment returns from eDuity and de&t markets'

nit ain was launched with a choice of four funds to the customer7 eDuity5

de&t5 &alanced and cash funds' The cash funds comes with the (uarantee that the .alue of

units in the fund will not (o down'

nit ain is one of the most fle2i&le unit linked plans in the market5 and allows the

customer to chan(e the sum assured durin( the term of the policy to match their chan(in(

life insurance reDuirements' Also the plan offers a premium holiday feature5 where the

policy is kept in7force e.en when premiums are not paid as lon( as there are enou(h units

to co.er char(es'

The policy pro.ides customers fle2i&ility in payin( additional premium throu(h

sin(le premium top7ups5 as well as in increasin( the le.el of re(ular premium in later

years Falon( with increase in income ' "n addition5 the facility of cash withdrawals allows

the Bajaj Allianz !"#HS products'

BABASAB #AT"! 13


50/89

/%j%j A**i%,4 ULI'0S p&oducts:

- U,it $%i, Re3u*%& '&e(iu(:

The Bajaj Allianz unit comes with a host of features to allow you to ha.e the &est

of all words Nprotection and in.estment with fle2i&ility like ne.er &efore'

So(e of the fe%tu&es of this p*%, %&e:

uaranteed death &enefits'

Choice of ; in.estment funds with fle2i&le in.estment mana(ement you can chan(e

funds at any time'

Attracti.e in.estment alternati.e to fi2ed in.estment securities'

#ro.ision for fullJpartial withdrawal any time after 0 full years premiums are paid'

nmatched fle2i&ility Nto match tour char(in( needs'

"o. does the p*%, .o& :

The premiums paid are in.ested in fundJfunds of your choice Fdependin( on the

allocation rate @unit are allocated dependin( on the price of units for the fundJfunds'

The .alue of your policy is the .alue of units that you hold in the fundJfunds' The

insurance co.er char(es are deducted throu(h monthly cancellation of units ' The funds

administration char(e and fund mana(ement char(e are priced in the unit .alue'

Minimum sum assuredQ 8 times the annual premium'

Ma2imum sum assured Qy times the annual premium where y will &e as per the

followin( ta&le'

BABASAB #AT"! 84


51/89

A3e

$&oup

6 6 5 < = ;6 ;5 ;< ;=


52/89

"o. does the p*%, .o& sK

-44 of the sin(le premium is in.ested in a fundJfunds' The .alue of your choice

and unit are allocated dependin( on the price of units for the fundJfunds the .alue of your

policy is the total .alue of units that you hold in the fundJfunds ' The insurance co.er

chan(es are deducted throu(h monthly cancellation of units' The funds administration

char(e and fund mana(ement char(e are pried in the unit .alue'

Minimum sum assured Q-'4- times the sin(le premium'

Ma2imum sum assures Qy times the sin(le premium where y will &e as per the

followin( ta&le'

A3e

$&oup

6 6 5 < = ;6 ;5 ;< ;= =6 =5 =>

Y ;< ;6 8< 5< < 5265

I(po&t%,t det%i*s of the H/%j%j %**i%,4 u,it 3%i, S' p*%,:

Minimum a(e at entry 64Frisk commences at a(e


53/89

So(e of the ey fe%tu&e of this p*%, %&e

uaranteed death &enefit'

Choice of si2 in.estment funds with fle2i&le in.estment mana(ement you can

chan(e funds at any time '

Attracti.e in.estment alternati.e to fi2ed Ninterest securities'

#ro.ision for fullJpartial withdrawals any time after 0 full years premium are paid

nmatched fle2i&ility Nto match chan(in( needs'

"o. does the p*%, .o& K

The premium paid are in.ested in a fund or funds of your choice Fdependin(

on the allocation rate and units are allocated dependin( on the price of the units for

the fund or funds'

The insurance co.er and administration char(es are deducted throu(h cancellation of

units' The fund mana(ement char(e is prices in the unit .alue'

Minimum sum assured Q 8 times the annual premium'

Ma2imum sum assured Q y times the annual premium where y will &e as per

the followin( ta&le'

A(e

roup

4704 0-708 0;714 1-718 1;788 8;7;4

K -/8 34 ;4 14 /4 -8

Important details of the /%j%j A**i%,4 U,it $%i, '*us R' plan

Minimum a(e at entry 64F?isk commences at a(e < and ceases after a(e


54/89

Ma2imum a(e at entry 6;4

Minimum a(e at entry for all additional &enefits is -9 years'

The ma2imum a(e at entry for additional &enefits is 84 years'

A** additional &enefits are a.aila&le till a(e ;8'

;+ U,it $%i, '*us Si,3*e '&e(iu( '*%,:

The &ajaj allianz unit (ain plus Sp comes with a host of feature to allow you to

ha.e the &est of all words N protection and in.estment with fle2i&ility like ne.er &efore'

So(e of the ey fe%tu&e of this p*%, %&e

Con.enient sin(le premium payment5 with option to pay top7ups later'

39 of the sin(le or top7ups are allocated'

uaranteed death &enefit'

Choice of fi.e in.estment funds with fle2i&le in.estment mana(ement you can

chan(e funds at any time'

Attracti.e in.estment alternati.e to fi2ed Ninterest securities'

nmatched fle2i&ility N to match your chan(in( needs'

#ro.ision for full or partial withdrawal any time after the sin(le premium is paid'

"o. does the p*%, .o& s K

39 of the sin(le premium is in.ested in a funds or funds of your choice and

units allocated dependin( on the price of units for the fund or funds ' The .alue of

your policy is the total .alue of units that you hold in the fund or funds' The insurance

BABASAB #AT"! 81


55/89

co.er and fund administration char(es are deducted throu(h cancellation of units' The

funds mana(ement char(e is priced in the unit .alue'

Minimum assured Q-'4- times the sin(le premium'

Ma2imum sum assured Q y times the sin(le premium where y will &e as the

followin( ta&le'

A3e

$&oup

6 6 5 < = ;6 ;5 ;< ;= =6 =5 =7

Y ;< < 86 56 < 52ieldwork was carried out to collect

the necessary data Fthrou(h schedule Duestions Jpersonal inter.iew '


62/89

5; # / / / / A A5< # $ # A A A C C A / C5= # E / A / A A / A A A5> # E A A / A E / A A / #59 C C E A A A / / A / C57 C C E A A C C A A ! / A86 C / / / / A / A A / A85 C / C A A A # / A A A88 / " E A A / C / A A A8 # " E A A / C A / A / C8; # E E A A # C A / A A8< # E / A A A C / # C / #8= # " E A A / C # # / # A8> C E E A A / # A / A A

89 A " A A A / C # A A / A87 # E # A A / C A C ! / #6 # E E A / # C C # / E5 A $ E A A C # / / A A8 # E A / / ! / A

C A / A A C / A A A; # E E A A A / / A A A< # C # A A / E C A ! A= # / / / / / A> # ! / / / A / /

9 # E # A / A / A / A7 # / / A / # E / A / / /;6 # / A / / A / A;5 # / / / A # E E / C A;8 # ! A A / A C A A / C; # ! E / / C ! A;; # E / A A A E # C A A / A;< # " C A / C E / C ! / C;= A " E A / A A A C / #;> / / # / / # / A;9 C $ E A A # A / A # A;7 / # / A / A A A A / A


63/89


64/89

7= C " E A A C / # A # / A7> # E A A / A A A A / #79 # E # A / # / A C / A77 C $ # A A A E / A / / #

566 / C A A A # C / A # A

BABASAB #AT"! ;1


65/89

52Bh%t is you& &%tio of s%vi,3 of the tot%* i,co(eK

%+ Mo&e the, =6 b+ =6


66/89

769*6

*96

rom the a&o.e (raph it is clear that 3 of people sa.in( more than

;4 5 -0 of people sa.in( less than ;4 5 0- of people sa.in( less than 84 5 1< of

people sa.in( less than /8 '

82You& s%vi,3 co,sist of2

%+ 'ost office b+ /%, ! 2 #

c+ Sh%&es d+ L%,d N /ui*di,3

e+ Life i,su&%,ce f+ $o*d

3+ Mutu%* fu,d h+ A** the %bove

!ost ffice 956Bank FD :56Shares >6and ? Building 9*6ife 'nsurance :*60old 86

BABASAB #AT"! ;;


67/89

@utual Fund >6 "ll the abo)e 9*6Total 955

956

:56

>6

9*6

:*6

86

>6

9*6

56

86

956

986

:56

:86

CUSTO ERRESPONSE

!ostffice

Shares ife'nsurance

@utualFund

SA!IN" CONSIST

Series9

"nterpretation6

>rom the a&o.e (raph it is clear that5 -4 of people sa.in( in post office5 /4 of

people sa.in(s in Bank > 5 9 of people sa.in(s in shares5 -0 of people sa.in(

consist land and &uildin(5 /0 of people sa.in(s in !ife "nsurance5 8 of people sa.in(

consist in (old59 of people sa.in( in Mutual >und5 -0 of people sa.in( consist all the

a&o.e option'

2 Bh%t f%cto& co,sist .hi*e (% i,3 the po*icy2

%+ Retu&,s b+ S%fety

BABASAB #AT"! ;


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c+ Li@uidity d+ Ris cove&

e+ A** the %bove

Returns :56safety :76iquidity >6Risk co)er 976

"ll the abo)e :6

976

:


69/89

Aes =86o :86Total 955

=86

:86

56956:56

*5656

CUSTO ER

RESPONSE

Aes o

ONE& IN!ESTED IN LIFE INSURANCE

Series9

"nterpretation6

>rom the a&o.e (raph it is clear that


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Aes 886o 6T ERS 76B " :


71/89

T T" 9556

PEOPLE IN!ESTED T$EIR ONE& IN

DIFFERENT CO PANIES

6

76

:


72/89

e+ Othe&s 2

Friends 9=6 "gents 9>6

e#s$a$er(maga/ines 986Banks >6thers =6Blank *86Total 9556

$O# PEOPLE %NO# T$E ULIP'S

9=6

9>6

986>6

=6

*86Friends

"gents

e#s$a$er(mag/ines

Banks

,thers

Blank

"nterpretation6

The a&o.e (raph shows that -< of respondents know the !"#S throu(h friends5-9

of respondents throu(h A(ents5-8 of respondents throu(h *ews paper and Ma(azines5

9 of respondents know throu(h &anks5 < of respondents know throu(h others and

08 of respondents are not respondents well'

BABASAB #AT"!


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92 Bhich p*%, you h%ve t% e,K

%+ E,do.(e,t b+ Mo,ey /%c

c+ Te&( '*%, d+ ULI'

e+ A** the %boveEndo#ment 9=6@oney Back :76

Term !lan 946& '! >6

"ll the abo)e


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9=6

:76

946

>6


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igher returns


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C 996D *6B " *96

*>6

9=6996

*6

*96

5686

956986:56

:86*56*86


77/89

52 Bh%t .i** i,f*ue,ce you& !i,%,ci%* '*%,,i,3K

%+ #iscussio, .ith !%(i*y Me(be&

b+ T% Co,su*t%,tN C2 A

c+ I,su&%,ce co,su*t%,t NA3e,ts

d+ !i,%,ce M%3%4i,es2

e+ Beb site of i,su&%,ce o& !i,%,ce co(p%,y2

f+ A,y othe& Specify 2

Discussion #ith F@


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The a&o.e (raph factors influencin( financial plannin( 1< influencin( discussion

with family mem&ers5 // ta2 consultantJCA5 < "nsurance ConsultantJ A(ents5-1

throu(h finance ma(azines5 - throu(h we& sites of insuranceJ >inance

Company53 throu(h others'

582I, futu&e %&e you i,te&ested i,vesti,3 (o,ey o, ULI'K

%+ Yes b+ o

" 8:6B 6

BABASAB #AT"!


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8:6

6


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IN FUTURE PEOPLE DONT #ANT TO IN!EST

T$EIR ONE&

:*6

46

>6

9:6

896

"BCD

B "

"nterpretation6 The a&o.e (raph /0 of respondents are no interested5 ; lack of ad.ertisement5 9

&usy schedule5 -/ of respondent says others and 8- of respondents are not responded

well'

!i,di,3s

Th&ou3h %** this su&vey %,d %,%*y4i,3 .h%t .e fou,d is th%t

"n the sur.ey it was found that 1< of the respondents are sa.in( less

than /8 income this indicates that nearly half of respondent in hu&li

city are comin( under middle class'

BABASAB #AT"! 94


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As our research we found that 88 of people are aware of !"#Hs and

18 of respondent are not aware of !"#Hs so company has to (i.e

more ad.ertisement a&out the !"#Hs '

Throu(h >riends -< of people are come to know a&out the !"#Hs

5throu(h A(ents -9 5 -8 throu(h *ewspaper J Ma(azine 5 9

throu(h Banks5 Others < of respondent are come to know 08 of

people are not aware of !"#Hs so compare to all a(ents are playin(

important role @ company has to increase more num&er of a(ents'

8/ of respondent are interested to in.est money in !"#Hs and 19 of

respondent are not interested to in.est money in !"#Hs so 8/ is a

potential customer so company can utilize that opportunity'

1/ of respondent are in.ested their money in !"C5 -< in Bajaj

Allianz5 9 in "C"C" #rudential 5 3 in others and /1 of people not at

in.ested'

/0 of respondent are not interested to in.est their money in !"#s 5

; lack of ad.ertisement5 9 &usy schedule5-/ of respondents said

others and &lank 8- '

LI ITATIONS

The limitation of the project was that the study and the sur.ey were conducted

in %u&li city only5 the analysis and recommendations may not &e fully

applica&le to other cities'

BABASAB #AT"! 9-


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The time was not enou(h to study the .ast and (rowin( !ife insurance sector in

%u&li city

Co,c*usio, :

>rom the o.er all project and market sur.ey it is clear that Bajaj Allianz !ife "nsurance

Co '!td is doin( well &ut most of the people are not aware of !"#Hs '

But in the present threadin( competition they should do more then the present efforts in

the followin( fields'

-' Ad.ertisin( campai(n'

/' Trade promotion acti.ity'

Reco endations

Most of the respondents are not aware of nit !inked

"nsurance #lan so

company has to (i.e more ad.ertisement a&out the !"#Hs'

18 of respondents are not aware5 which should &e increased

&y different medias like T 5 Ma(azines5 @ *ews #aper'

The company has to pro.ide proper trainin( or marketin( skills to

impro.e the marketa&ility of products'

Complete information should &e pro.ided re(ularly to the ad.isor as well as to the

in.estor'

BABASAB #AT"! 9/


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Bajaj Allianz Co should come out with more and more inno.ati.e schemes to

meet the reDuirement of e.ery in.estor

Company has to conduct meetin( of their a(ents periodically to access the results

and pro(ress of the a(ents efforts'

BABASAB #AT"! 90


84/89

BABASAB #AT"! 91


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-UESTIO AIRE

#e%& Si& N M%d%(1

52Bh%t is you& &%tio of s%vi,3 of the tot%* i,co(eK

%+ Mo&e the, =6 b+ =6


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=2 I, .hich co(p%,y you h%ve i,vested you& (o,eyK

%+ LIC b+ /%j%j A**i%,4 P

c+ ICICI d+ Othe&s 2

>2 "o. do you co(e to ,o. ULI'K

%+ !&ie,ds b+ A3e,ts

c+ e.sp%pe&sNM%3%4i,es d+ /%, s

e+ Othe&s 2

92 Bhich p*%, you h%ve t% e,K

%+ E,do.(e,t b+ Mo,ey /%c

c+ Te&( '*%, d+ ULI'

e+ A,y othe&s1 Specify 2

72 Bhy you h%ve chose, ULI'K

%+ "i3he& Retu&,s b+ Li@uidity

c+ Life cove& d+A** the %bove

562 Bh%t is the p&e(iu( you %&e p%yi,3 pe& %,,u(K

%+ 56666 b+ 56666 8


87/89

552 Bh%t .i** i,f*ue,ce you& !i,%,ci%* '*%,,i,3K

%+ #iscussio, .ith !%(i*y Me(be&

b+ T% Co,su*t%,tN C2 A

c+ I,su&%,ce co,su*t%,t NA3e,ts

d+ !i,%,ce M%3%4i,es2

e+ Beb site of i,su&%,ce o& !i,%,ce co(p%,y2

f+ A,y othe& Specify 2

582I, futu&e %&e you i,te&ested i,vesti,3 (o,ey o, ULI'K

%+ Yes b+ o

5 2 If ,o .hyK

%+ o I,te&est2

b+ L%c of Adve&tise(e,t2

c+ /usy schedu*e2

d+ Othe&s 2

#lease pro.ide the &elow mentioned information6

%(e : 2

Add&ess : 2

BABASAB #AT"! 9


88/89

2

Co,t%ct o : 2

A3e : 2

$e,de& : 2

I,co(e : 2

Occup%tio, : 2

T"A D YOU

/I/LIO$RA'"Y

BABASAB #AT"! 99


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Marketin( ?esearch 6 %awkins @ Tull'

:e&sites 6 www'(oo(le'com

www'&ajajallianz'co'in

Materials 6 )ournals @ Ma(azines

*ewspaper 6 Economic Times'

Business !ine'
http://www.google.com/http://www.bajajallianz.co.in/http://www.google.com/http://www.bajajallianz.co.in/

a study on customer awareness bajaj allianz

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