Comparative Analysis of Bajaj Allianz Lic With Others Life Insurance Companies
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Transcript of Comparative Analysis of Bajaj Allianz Lic With Others Life Insurance Companies
“COMPARATIVE ANALYSIS OF INSURANCE PRODUCTS OF BAJAJ ALLIANZ LIFE
INSURANCE CO. LTD. WITH OTHER LIFE INSURANCE COMPANIES”
INDEX
S.No. Particulars .
1. Acknowledgement
2. Introduction
3. Need for Life insurance
4. Company Profile
5. Product Profile
6. Comparative analysis
7. Research Methodology
8. Suggestions
9. SWOT Analysis
10. Suggestions
11. Conclusion
12. Appendix
13. Data Analysis
14. Bibliography
INTRODUCTION
Our Plans Arm You For Tomorrow... At Bajaj allianz Life, there is nothing we
hold higher than life itself. We therefore view our plans not as tax saving devices
but as a means to add protection to life. We believe in enhancing the very quality
of life, in addition to safeguarding your security. Our products are designed in a
way that helps you bear heavy expenses while building your home or providing
for your children's education and marriage. We make sure your post retirement
years are carefree and secure, ensuring your family and loved ones are protected
against financial difficulties in the event of a premature death. Depending on
your personal needs, priorities and individual responsibilities, you can go for a
Protection, Saving or Investment plan. If you are not sure of which plan would
suit you best, you could use the Life Maker, an application we developed for that
very purpose
WHY DO I NEED LIFE INSURANCE?
That’s a common question. Why would you need Insurance? Simply put, Life
brings with it many surprises, some pleasant and some not so and a Life Insurance
Plan ensures that you are better prepared to face uncertainties. How? In a number
of ways:
Protection
You need life insurance to be there and protect the people you love, making sure
that your family has a means to look after itself after you are gone. It is a
thoughtful business concept designed to protect the economic value of a human
life for the benefit of those financially dependent on him. That’s a good reason.
Supposing you suffer an injury that keeps you from earning? Would you like to
be a financial burden on your family, already losing out on your salary? With a
life insurance policy, you are protected. Your family is protected.
Retirement
Life insurance makes sure that you have regular income after you retire and also
helps you maintain your standard of living. It can ensure that your post-retirement
years are spent in peace and comfort.
Savings and Investments
Insurance is a means to Save and Invest. Your periodic premiums are like Savings
and you are assured of a lump sum amount on maturity. A policy can come in
really handy at the time of your child’s education or marriage! Besides, it can be
used as supplemental retirement income!
Tax Benefits
Life insurance is one of the best tax saving options today. Your tax can be saved
twice on a life insurance policy-once when you pay your premiums and once
when you receive maturity benefits. Money saved is money earned!
Superior Technology
In order to ensure speedy and accurate processing of your needs, we have
established world class technology, with renowned insurance software, which
networks all our offices and intermediaries
Using the Web, policies can be issued from any office across the country for retail
products
Unique, user friendly software developed to make the process of issue of policies
and
claims settlement simpler (e.g. online insurance of marine policy certificate)
Unique Forms of Risk Cover
Film insurance
Event management cover
Sports & Entertainment Insurance Package
Risk Management- Our Expertise
Our service methodology is tried, tested and Proven the world over and involves:
Risk identification: Inspections
Risk analysis: Portfolio review and gap analysis
Risk retention
Risk Transfer: To an insurer as well as reinsurer (as required)
Creation of need based products
Ongoing dialogue
COMPANY PROFILE
Bajaj Allianz Lifel Insurance Company Limited
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, stability and
strength.
Bajaj Allianz Life Insurance received the Insurance Regulatory and Development
Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct Life
Insurance business (including Health Insurance business) in India. The Company has an
authorized and paid up capital of Rs 147 crores. Bajaj Auto holds 74% and the remaining
26% is held by Allianz, AG, Germany.
In its first year of operations, the company has acquired the No. 1 status among the
private non-life insurers. As on 31st March 2006 Bajaj Allianz Life Insurance
maintained its leadership position by garnering the premium income of Rs.1285 crore.
Bajaj Allianz has made a profit after tax of Rs.52 crores.
Bajaj Allianz today has a network presence in over 100 towns spread across the length
and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all
the offices are interconnected with the Head Office at Pune.
In the first half of the current financial year, 2006-07, Bajaj Allianz garnered a premium
income of Rs. 842 crores, achieving a growth of 35% and Net profits rose to Rs.27
Crores.
Vision
• To be the first choice insurer for customers
• To be the preferred employer for staff in the insurance industry.
• To be the number one insurer for creating shareholder value
Mission
As a responsible, customer focused market leader, we will strive to understand the
insurance needs of the consumers and translate it into affordable products that deliver
value for money.
A Partnership Based on Synergy
Bajaj Allianz Life Insurance Company offers technical excellence in all areas of Life and
Health Insurance as well as Risk Management. This partnership successfully combines
Bajaj Auto's in-depth understanding of the local market and extensive distribution
network with the global experience and technical expertise of the Allianz Group. As a
registered Indian Insurance Company and a capital base of Rs. 147 crores, the company is
Achievements
Bajaj Allianz has received ,"iAAA rating, by ICRA Limited, an associate of
Moody's Investors Services, for Claims Paying Ability.This rating indicates
highest claims paying ability and a fundamentally strong position.
Indias Most Respected Companies The Business World's Most Respected
Companies survey 2006 ,has ranked "Bajaj Allianz Life Insurance, No.2 this year,
in the insurance sector.
Bajaj Auto Limited
Bajaj Auto Limited is the largest manufacturer of two and three-wheelers in India and
also one of the largest manufacturers in the world. Bajaj Auto has been in operation for
over 55 years. As a promoter of Bajaj Allianz Life Insurance Company Ltd., Bajaj Auto
has the following to offer:
• Vast distribution network.
• Knowledge of Indian consumers.
• Financial strength and stability to support the insurance business.
• Visit Bajaj Auto's Website www.bajajauto.com
Allianz AG, Germany
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 Hongkong 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 has the following to offer Bajaj Allianz Life Insurance Company Ltd. :
• Set up and running of Life insurance operations
• New and improved international products
• One of the world's leading insurance companies
• More than 700 subsidiaries and 2 lac employees in over 70 countries worldwide
• Provides insurance to almost half the Fortune 500 companies
• Technology
Visit Allianz AG website www.allianz.com
Other similar businesses
The promoters have also incorporated a Life insurance Company in India, called Bajaj
Allianz General Insurance Company Limited to provide life insurance solutions.
Visit Bajaj Allianz General Insurance Website www.bajajallianz.co.in
The Bajaj Allianz Difference
• Business strategy aligned to clients' needs and trends in Indian and global economy /
industry
• Internationally experienced core team, majority with local background
• Fast, decentralised decision making
• Long-term commitment to market and clients
Trust
At Bajaj Allianz, we realise that you seek an insurer whom you can trust. Bajaj Auto
Limited is trusted name for over 55 years in the Indian market and Allianz AG has over
110 years of global experience in financial services. Together we are committed to
provide you with time tested and trusted financial solutions that provide you all the
security you need for your investments.
Underwriting Philosophy
Our underwriting philosophy focuses on :
Understanding the customer's needs
Underwriting what we understand
Meeting the customer's requirements
Ensuring optimal coverage at lowest cost
Claims Philosophy
The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims
processing. We pride ourselves on a friendly and open approach. We are focused towards
providing you a hassle free and speedy claims processing.
Claims philosophy is to :
• Be flexible and settle fast
• Ensure no claim file to be seen by more than 3 people
• Check processes regularly against the global Allianz OPEX (Operational Excellence)
methodology Sold over 1 million since inception.
Customer Orientation
At Bajaj Allianz, our guiding principles are customer service and client satisfaction. All
our efforts are directed towards understanding the culture, social environment and
individual insurance requirements - so that we can cater to all your varied needs.
Experienced and Expert Servicing Team
We are driven by a team of experienced people who understand Indian risks and are
supported by the necessary international expertise required to analyse and assess them.
Service engineers located in every major city .
PRODUCT PROFILE
PRODUCT PROFILE
What are these plans? Protection plans safeguard your income and your family’s financial
future in case you are not around. They shield you from heavy economic loss and reduce
the impact of financial risk on you and those dependent on you. Conquering Life Saving
plans act as a compulsory savings instrument for families when the premium is paid
regularly. They work as long-term savings, enhanced by tax benefits, which give you the
financial strength to achieve your life goals. Capital unit gain ,Child gain , .
Investment plans act as wealth creation instruments helping to create big estates for the
family. It is a long-term investment, free from the risk of market swings. At the end of the
term, you or your family can enjoy added returns on investment. Powering Life, One
Life .
Retirement plans can ensure that your post-retirement years are spent in peace and
comfort. They make sure that you have regular income after you retire and also helps you
maintain your standard of living.
(c) CAPITAL UNIT GAIN
Guaranteed Maturity Benefits (Payments in Case of Death and at on
Maturity).
Flexible maturity benefits option
Build in Wavier of Premium Benefit
ELIGIBILITY :
Minimum entry age : 18 years,
Maximum Entry age – 55 year,
Maximum maturity age : 65 years.
TERMS :
10 – 20 years.
* CHILD GAIN PLAN
1. Regular Cash Returns
2. The Cash Bonus Advantage
3. Money back plan with loan facility
ELIGIBILITY :
Minimum entry age : 12 years,
Maximum Entry age – 49 year,
Maximum maturity age : 65 years.
TERMS :
16 years
20 years
24 years.
* POWERING LIFE
1. Safe investment with high Tax – free returns.
2. Customizable premium payment term
3. Enhancing life cover
ELIGIBILITY :
Minimum entry age : 18 years,
Maximum Entry age – 60 year,
Maximum maturity age : 70 years.
TERMS :
10 years
15 years
20 years.
COMPARATIVE ANALYSIS OFINSURANCE
PRODUCTS OF BAJAJ ALLIANZ LIFEINSURANCE CO. LTD. WITH OTHER LIFE
INSURANCE COMPANIES
Features\Companies Bajaj Allianz ICICI Prudential
Birla Sun Life
Tata AIG
Plan Name Capital Unit Gain
Life Teme Super
New Classic Life Premier
Invest Assure ll
Min/ Max Age at entry
0 (risk commences at age 7)- 60
0/65 30 days to 30 yrs for whole life plan, 40 for 30 yrs term, 50 for 20 yrs term and so on.
30 days to 45/55/60 yrs (depending on term)
Max Age at maturity 70 75 70 yeats. 15,20,30Min/Max Premium 10,000/No limit 18,000/No
LimitMin Annual prem of Rs. 25000
Premium Type Regular Regular Limited (up to 5 yrs) or Regular as per term of the plan
Regular
Min/ Max Sum Assured
Min 0.5* term* AP, max y* AP where y for base cover or base cover with Accidental death &/or TPD rider is0- 30 31-35 36-40 41-45 46-55 56-60 100 85 70 50 30 20Y for base cover with any other rider or with more than one rider MAX (5,0.5* policy Term)
Min SA = 0.5 *term* Annualised premium, s.t. min of 100,000
Min SA 2 lacs.Max SA No limit
SA is a multiple of AP. Multiple depends on entry age and term of the policy and policy holder gets a choice
Death Benefit Before Age 7 – Degular premium F. V & Top-Up FV. To be set off by partial withdrawals as
SA net of permissible withdrawals or FV whicherer is higher. Before age 7
Before age 5 only FV Btwn age 5 & 60 – higher of FV or SA less withdrawals in last 2 yrs
SA less permissible withdrawals or FV whichever is higher.
mandated. it is the FV. prior to date of death.After age 60 – higher of FV or SA less all withdrawals m,ade after age 58.
Flexiblity in Death Benefits
None None NA Increase allowed subject to U/W.
Maturity Benefit Fund Value Fund Value, settlement option
Fund Value Fund Value
Partial Withdrawals After 3 years. Min Rs 5000. Min FV 1.5 annual premium have to maintain. Provided age attainrd age attained is 18 yrs.
After 3 years. Min Rs 2000.
After 3 years or LA attaining majority, whichever is later. Min Rs 10,0 00; Min FV Rs 25,000.
After 3 years . Min Rs 10,000. 4 withdrawals allowed per yr. Min FV 1 annual premium. Surrender charges applicable.
Full Surrender Any time after 3 yrs. S.t. Surrender charges applicable only on the capital units. 1-(1/1.05)^N, N=Lower of outstanding policy term or 20 yrs
After 3 yrs. Charges after 3 & 4,yrs are at 2% & 1%resp. No charges from yr 5 onwards.
Charges applicable in the first 6 years.
Anytime after 3 yrs . Charges 100% firs 3 yr reducing thereafter. No charges after 6 yrs (20,30) & 5 yrs (15).
Features\ Companies
Bajaj Allianz Aviva HDFC Standerd
SBI Life
Plan Name Capital Unit Gain Easy Life Plus Endowment plus
Horizon ii
aMin/Max Age at entry
0 (risk commences at age 7)- 60
18-50 18-65,55 with riders
0-60
Max Age ar maturity
70 60 75 without riders, 65 otherwise
70
Min/Max Term
10, theron customer selectable term, For minor(18-entry age)
10,15,20,25 10-30 10/40(for minor lives min term is 10 or 18- entry age)
Min Max Premium
10,000/No limit 6000/50000 Rs 10,000 12,000/100,000
Premium Type
Regular Reguler Regular; Over the term of the plan
Regular; Over the term of the plan
Min/Max Sum Assured
Min 0.5*term*AP, max y*AP where y for base cover or base cover with Accidental death &/or TPD rider is 0-30 31-35 36-40 41-45 46-55 56-60100 85 70 50 30 20Y for base cover with any sther rider or with more than one rider Max (5, 0.5* policy Term)
10*AP for 10, 15 & 20 yr
terms. 12.5* AP for 25 yr term
Min Term term*0.5*APMax up to 40* AP
1.2 lakh/10 lakh
Death Benefit
Before age 7- Regular Premium F. V. & Top-Up F. v. if any Above7: Higher of SA or FV.
In yr 1, 110% of AP or FV
whichever s higher; From yr
2 onwards, higher of Fund Value & SA. In
case of
SA- withdrawals in last 2 years plus FV whichever is higher.
FV+SA, for age below 7, FV only
To be set off by partial withdrawals as mandated.
Accidental death, higher of
SA & FV+addtnl
SAFlexibility in Death Benefits
None None Increase or decrease in sum assured is not allowed.
Increase/decrease in SA not
Maturity Benefit
Fund Value Fund Value; settlement
option
Fund Value
Partial Withdrawals
After 3 years. Min Rs 5000. Min FV 1.5 annual premium have to maintain. Provided age attained is 18 yrs.
Allowed after 3 yrs
After 3 years. Min Rs 10,000. Withdrawal is allowed till FV after charges is greater than equal to annual premium under the plan.
After 3 yrs. Two withdrawals in a year is free. Charges 1% on withdrawal amount.
Full Surrender
Any time after 3 yrs. S.t.Surrender charges applicable only on the capital units. 1-(1/1.05)^N,N=Lower of outstanding policy term or 20 yrs
1-(1/1.05^N)*valu
e of initial units,at the unit price,on the date
of surrender
1-{1/1+x)}^N]*Value of accumulation units, at their unit price,on the date of surrender. The variable x varies with the number of completed years premiums paid at the date of surrender:
After 3 years 100% FV. Before 3 urs nothing is payable.
After 3 yrs, provided at least 1 premium has been paid. 1% yr 4 onwards (on SV).
Features\Companies Bajaj Allianz ICICI Prudential
Birla Sun Life Kotak
Plan Name Capital Unit Gain
Life Time Plus Flixi Save plus
Safe Investment plan ll
Min/Max Age at entry
0 (risk commences at age 7)- 60
0/65 30 days to 60 years
0-65
Max Age at maturity
70 75 75 yrs 75
Min/max Term 10,thereon customer selectable term, For minor(18-entry age)
10-30 yrs 10 to 0 years 10-30
Min Max Premium 10,000/No limit
20000/300000 10,000/No Limit For regular prem, 50,000 for ltd. Pay
Premium Type Regular RP Single or regular
Regular & Limited payment; 3,5,6,7,10,15 & over term
Min/Max Sum Assured
Min 0.5*term* AP where y for base ckover or base cover with Accidental death &/or TPD rider is 0-30 31-35 36-40 41-45
Min SA= 0.5*term Annualised premium
Min SA-For SP plan 125% of the SA,2 lacs for term upto age 70 and 100,000 otherwise. Max SA-No limit
Greater of 5*AP or 0.5*Term*AP
46-55 56-60100 85 70 50 30 20Y for base cover with any other rider or with more than one rider MAX
(5,0.5*Policy Term
Death Benefit Before Age 7-Regular Premium F.V. & Top-Up F.V. if any Above 7: Higher of SA or FV. To be set off by partial withdrawals as mancatem.
SA + FV,only FV before age 7
Higher of FV,jGFV or SA less withdrawals made in last 2 years. Up to age 60.After age 60,higher of FV GFV,SA less withdrawals made after age 58. Before age 1 year, only FV
SA less withdrawals made in last 2 years prior to death, or FV which ever is higher + funds in Supp A/C(top-up account)DB to be set off by partial withdrawals made 2 yrs prior to death before age 60 and by all partial withdrawals made after age 58
Flexibility in Death Benefits
None Decrease in SA is allowed but not increase.
Increase in SA from 6th policy year, once in 5 years, min SA increase Rs.50,000.
Increase or decrease in sum assured is not allowed.
Maturity Benefit Fund Value FV; with settlement option
Higher of FV of GFV
Guaranteed maturity value
Partial Withdrawals After 3 Years Min Rs. 5000. Min FV 1.5 annual premium have to maintain. Provided age attained is 18 yrs.
After 3 years Min Rs. 2000
After 3 Years in a year 2 withdrawls are free of charge.
Allowed only from top-up account anytime after 3rd yr. Thereafter charges are 3% in yr 4, 2%, yr 5,1% in yr 6 and 0% in yr 7 onwards.
Full Surrender Any time after 3 years S.T.
After : 3 yrs. Charges after
If surrendered in first 3
Allowed only from top-up
surrender charges applicable only on the capital units 1-(1/1.05)^ N, N= Lower of outstanding policy term r 20 yrs
3,4,5 & 6 yrs are at 8%, 6%, 4% & 2% resp. No. charges from yr 7 onwards.
years, SV paid out after 3 years. No charges.
account, anytime after 3rd yr. Thereafter charges are 3% in yr 4, 2% in yr 5, 1% in yr 6 and 0% in yr 7 onwards.
FEATURE COMPARISON OF UNIT LINKED PLANS : ELIGIBILITY & BENEFITS
Features / Companies Bajaj Allianz Bajaj AllianzPlan Name Capital Unit Gain New Secure FirstMin/Max Age of entry 0 (risk commences at age
7 ) – 600 (risk commences at age 7 ) – 60
Max Age at maturity 70 70Min / Max Term 10, thereon customer
selectable term, for minor (18 entry age)
Max life cover till age 70
Term, For minor(18-entry age)
Min Max Premium 10,000/No limit RegularPrimium Type Regular RegularMin/Max Sum Assured Min 0.5*term*aP, max
y*AP where y for base cover or base cover with Accidental death &/or TPD rider is
0- 30 31 – 35 36 -40 41 -45 46- 55 56- 60
100 85 70 50 30 20 y for base cover with any other rider or with mor than one ride Max (5,0.5* policy Term)
Minmum SA = 2.5 times Annualised premium, OR 0.25* Term* Annualised premium, whichever is higher.Maximum SA= y times the annualized premium where y will be as per the following table:0-35:20; 36-40: 15;41-55: 10;56-60: 5;60-65:2.5
Death Benefit Before Age 7- Regular premium F.V. & Top-Up F.V. if any Above 7: Higher of SA or FV. To be set off by partial withdrawals as mandated.
DB is Twice the SA plus the Fund Value. Before age 7 it is the FV
Flexibility in Death Benefits
None No
Maturity Benefit Fund Value Fund Value; with settlement option
Partial Withdrawals After 3 years. Min Rs 5000. Min FV 1.5 annual premium have to maintain. Provided age attained is 18 yrs.
After 3 years. Min Rs 1000.Min FV 1 annual premium. Top-Ups to have a lock-in of 3 yrs.
Full Surrender Any time after 3 yrs. S.t. Surrender charges applicable only on the capital units.1-(1/1.05)^N,N= Kower of outstanding policy term or 20 yrs
Before 3 yrs 100% surrender penalty. After three years: Surrender charges 4th Year: 10%;5th
year: 2%; 6th year onwards: No Charge.
Features\Companies Bajaj Allianz ICICI Prudential Birla Sun Life Tata AIGPlan Name CapitslUnit Gain Life Time Super New Classic
Life PremierInvest Assure ll
Investment Funds 5 Funds 1)Equity Indes Fund ll 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Caap Fund
4 Funds :1) Maximiser2)Balancer3)Protector4) Protector
6 F1) Assure2) Protector3) Builder4) Enhancer5) Creator6) Magnifier
5 Funds1. Equity2. Income3. Liquid4. Aggressive Growth5. Stable Growth
Equity Min Limit : 85%for equity index fund II and 80% equity growth and accelerator Mid cap
Min Limit : 75% for maximiser; max 40% for balancer,
Max Limit : 90% for Magnifier; 50% for creator; 35% for enhancer; 20% for builder; 10% for protector;
0-100% for equity; 50-80% for aggressive growth; 30-50% for stable growth;
Debt Min Limit : 80% for bond fund
Max Limit ; 25% for maximiser; Min 60% for balancer, 100% for protector; max 50% for preserver;
Max limit : 25% for magnifier; 30% for creator; 30% for enhancer; 30% for builder; 30% for protector ; 50% for assure
0-100% for income; 20-50 % for aggressive growth ; 50-70 % for stable growth; 0-20% for liquid.
Money market Max limit : 20% for Bond fund, equity growth fund, accelerator madcap fund; 15% for equity index fund II, 100% for liquid fund.
Max Limit: 25% for maximiser; min 60% for balancer, 100% for protector; min 50% for preserver;
Max Limit; 20% for all;
0-120% for short term fixed income
Infrastructure None Max Limit : 25% for protector; builder; enhancer
None
Switch 3 free switches 4 free switch amt 2 free switch; 4 free switches
is 2000 p.a.Premium redirection
Allowed Not allowed Allowed; 2 free allocation in a year
2 free premium redirections. Subsequent redirections to be charged at 1000 per redirection.
Increase or decrease in regular premium
Allowed , s.t. limites
Not allowed Not allowed Na
Premium Holiday Cover continuance available
Available Available; Available.
Bonus Units None At 4% annual premium paid every 4th rs. Starting from 4th
yr.
Loyality addition on 10th PA and on every th policy anniversary thereafter. The LA will be 2% of your average policy fund in the last 60 months
Not available.
Guarantee component
None Bonus Units Loyality additions as given above
None
Feature Comparison of Unit Linked Plans : Investment Funds & FlexibilityFeatures\Companies Bajaj Allianz Aviva HDFC
StandardSBI Life
Plan Name Capital Unit Gain Easy Life Plus Endowment Plus
Horizon II
Investment Funds 5 Funds 1)Equity Indes Fund II 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Caap Fund
2 Funds : 1) With Profit Funds; 2)Unit linked Fund a ) Protector Fundb) Growth Fund;c) Balanced Fund;Option to put 100% in either fund
6 Funds1) Liquid Fund. 2) Secure Managed Fund.3) Defensive Managed Fund; 4) Balanced Managed Fund;5) Equity Managed Fund 6) Growth Fund;
2 Funds (Composite)1. Dynamic 2. Growth(Automatic Asset Allocaiton
Equity Min Limit : 85%for equity index fund II and 80% equity growth and accelerator Mid cap
Min Limit : 20% for with profit funds and protector; 45% for balanced; 30-85% for growth
Max Limit : 30% for Defensive; 60% for balanced; 100% for growth and equity managed
Max limit : 100%
Debt Min Limit : 80% for bond fund
70-100% for with profit and 60-100% for protector; 50-90% for balanced; 0-50% for growth;
85% for defensive; 70% for balanced; 40% for equity
Max Limit : 100%
Money market Max limit : 20% for Bond fund, equity growth fund, accelerator madcap fund; 15% for equity index fund II, 100% for liquid fund.
0-10% for with profit and balanced; 0-20% for protector and growth .
100% for liquid funds
Max Limit : 100%
Infrastructure None None None
Switch 3 free switches 2 free switch Allowed Automatic Asset allocation
Premium redirection
Allowed Not allowed Allowed Not allowed
Increase or decrease in regular premium
Allowed , s.t. limites
Not allowed Increase / decrease is allowed. Decrease is allowed after 3 yrs of premium payment and FV atleast Rs. 15,000.
Not allowed
Premium Holiday Cover continuance available
Available Available Available.
Bonus Units None None Loyalty units every year 0.10% every year as long as policy is in force.
None
Guarantee component
None None None None
Features\Companies Bajaj Allianz ICICI Prudential
Birla Sun Life Kotak
Plan Name Capital Unit Gain Life Time Super
Flexi save plus Save Investment Plan II
Investment Funds 5 Funds 1)Equity Indes Fund ll 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Caap Fund
4 Funds :1) Maximiser ii2)Balancer ii3)Protector ii4) Preserver
3 Funds 1) Protector2) Builder3) Enhancer
6 Funds1. Money Market2. Gilt3. Bond4. Balanced 5. Growth6. Floating Rate Fund.
Equity Min Limit : 85%for equity index fund II and 80% equity growth and accelerator Mid cap
Min Limit : 75% for maximiser ii; max 40% for balancer ii.
Max Limit : 10% for protector; 20% for builder, 35% for enhancer;
Max Limit; 60% for balanced and 80% for growth;
Debt Min Limit : 80% for bond fund
Max Limit ; 25% for maximiser ii; Min 60% for balancer ii, 100% for protector ii; max 50% for preserver;
Max limit : 30% for all 3 funds.
100% for Gilt; Bond; Floating rate, 70% in balanced; 60% for growth.
Money market Max limit : 20% for Bond fund, equity growth fund, accelerator madcap fund; 15% for equity index fund II, 100% for liquid fund.
Max Limit: 25% for maximiser ii; min 60% for balancer ii, 100% for protector; min 50% for preserver;
Max Limit; 20% for all;
100% for money mkt; 20% for gilit, bond, floating rate, balanced and growth.
Infrastructure None Max Limit : 25% for all.
70% for balanced and 60% for growth.
Top-Ups Min Rs. 5000; Max unlimited, choice of multiplier for top
None Min 5000, max 50,000 or annula prem. Additional SA on top-ups
Min Rs. 10,000.
ups beyond 25% of RP.
Switch 3 free switches 4 free switch amt is 2000
2 free switch; Rs. 100 thereafter.
Allowed No. charges. (bid/offer spread).
Premium redirection
Allowed Not allowed Not allowed Allowed No charges. (bid/offer spred)
Increase or decrease in regular premium
Allowed , s.t. limites
Can increase or decrease annual premium pnly on policy anniversary. Dose not after SA
Increase/decrease not allowed
Increase/decrease not allowed
Premium Holiday Cover Continuance Available
Available Available Available
Bonus Units None At 5% annual premium paid every 4th yr.
None None
Guarantee component
None Bonus units are guaranteed
3%return on net investible premium
SA guaranteed at maturity
Features / Companies Bajaj Allianz Bajaj AllianzPlan Name Capital Unit Gain New Secure FirstInvestment Funds 5 Funds
1)Equity Index Fund ll 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Cap Fund
4 Funds :1) Nifty Index Fund 2)Balancer Fund3)Income Fund4) Equity Growth Fund
Equity Min Limit : 85%for equity index fund II and 80% equity growth and accelerator Mid cap
Min Limit: 85% for Nifty Index & 80% Equity Growth
Debt Min Limit : 80% for bond fund
Min Limit: 80% for Income fund
Money market Max limit : 20% for Bond fund, equity growth fund, accelerator madcap fund; 15% for equity index fund II, 100% for liquid fund.
Max Limit: 20% for Income Fund, Equity Growth Fund, 15% for Nifty Index Fund
InfrastructureTop-Ups Min Rs 5000; Max
unlimited, choice of multiplier for top-ups
Min Rs 5000;Max cumulative top-up to be within 25% of max cumulative RP
Switch 3 free swithches 3 free switchesPremium Redirection Allowed AllowedIncrease or decrease in regular premium
Allowed , s.t. limits Not allowed.
Premium Holiday Cover Continuance Available
Available.
Bonus Units None Not availableGuarantee component None None
Features\Companies Bajaj Allianz ICICI Prudential
Birla Sun Life Tata AIG
Plan Name Capital Unit Gain
Life Time Super
Classic Life Premier
Invest Assure ll
Policy Charges Ra.10,000-199,999 5.00%Rs.200,000-9,99,999 4.00%>= 10,00,000 3.00%
For AP less than 50000,20 % in yr 1,7.5% in yr 2,4% from yr 3 onwards. For AP 50000 and above, 18% in yr 1,7.5% in yr 2,4% from yr 3 onwards
Yr 1: 13;4% yr 2 & 3 onwards; 2% thereafter
Depends on Term of plan and Entry age of policyholder. Charge is at uniform 1% from the 3rd yr.
Charges on Top-Ups
2% n.a. 2% of top-ups 1.5%
Admin Charges Rs. 600 per annum inflating at 5% per annum
Rs 60 per month + 2/000 SA in yr 1
Rs 38 per month inflating at 5% p.a.There would be an additional premium holiday charge of 3% during reveval period of 5 yrs. And 1.5% after that (if policyholder requests for premimum holiday)
Add switching charge
Rs 100 or 5% switch amount whichever is lower.
Rs 100 per switch
Rs 100 or 0.25% of switch amount whichever is higher.
Rs. 250
Premium redirection charge
None None Rs 100; Rs 1000
Other Charges 5% per annum of the Capital Units during
None None 3% of the Regular premium for
the policy term subject to maximum of 20 years (Initial Mgmt Charge)
the first 5 years(Premium Holiday Charge)
Fund Management Charge
Equity Growth Fund 1.75%Equit Indes Fund ll 1.25%Bond Fund 0.95% Liquid Fund 0.95%Accelerator Mid Cap Fund 1.75%
Miximiser: 2.25%Balancer: 2.25%Protector: 1.5%Preserver: 0.75%
1% for Protector; Buider; Enhancer;1.25% for Creator;Magnifier;
Equity: 1.75%; Aggressive Growth: 1.6% Stable Growth: 1.4%; Income: 1.25%; Short term Fixed Income: 0.90%
Features\Companies Bajaj Allianz Aviva HDFC Standard SBI LifePlan Name Capital Unit
GainEasy Life Plus
Endowment Plus Horizon ii
Policy Charges Ra.10,000-199,999 5.00%Rs.200,000-9,99,999 4.00%>= 10,00,000 3.00%
AP less than 7500 for annual & half yrly modes 7%, for other modes,8%AP 7500-9999 for annual & half yrly modes, 7%AP more than 10000 for annual & half yrly modes 5%, for other modes, 6%
Year1-60% for prem amount upto 2 lacs, 40% upto 5 lacs prem, 30% upto 10 lacs, 20 lacs and above. Top-up 2.5%Year 2 onwards 1%.
15% in yr 1;10% in yrs 2 & 3; 5% thereafter.
Charges on Top-Ups
2% n.a. 1% 1%
Admin Charges Rs. 600 per annum inflating at 5% per annum
Rs 41 per month inflating at 5% p.a.
Rs 20 per month Rs 70 per month
Add switching charge
Rs 100 or 5% switch amount whichever is lower.
0.5 of the switch amount or Rs 500 whichever is lower
24 switches free in a policy year and after thar 100 per switch
None
Primium allocation charge
None None None None
Other Charges 5% per annum of the Capital Units during the policy term subject to maximum of 20 years (Initial Mgmt Charge)
5% per annum of the Initial Units during the policy term (Initial Mgmt Charge)
After 6 partial withdrawals in a policy year will be [email protected] Charge@Rs 250
First 2 withdrawals free. Fee of 1% is leveed on subsequent withdrawals
Fund Management Charge
Equity Growth Fund 1.75%Equit Index Fund ll 1.25%Bond Fund 0.95% Liquid Fund 0.95%Accelerator MidL Cap Fund 1.75%
Regular FM charges 1% on with profits and protector fund; 1.5% on growth fund
0.8% for all funds
1.5% for Equity; 1.0% for Bond; 0.25% for Money market
Features\Companies Bajaj Allianz ICICI Prudential
Birla Sun Life Kotak
Plan Name Capital Unit Gain
Life Time Plus Flexi save plus Safe Investment Plan II
Policy Charges Ra.10,000-199,999 5.00%Rs.200,000-9,99,999 4.00%>= 10,00,000 3.00%
25% in yr 1&2.3% in yr 3 & 4.1% from yr 5 onwards
65% in Yr 1 for regular pay; 7.5% in yr 2 & 3; 5% from yr 4 onwsrds. For regular prem plans.For SP – 3%
14% in yr 1; 3.5% from yr 2 onwards
Charges on Top-Ups
2% n.a. 2% 2.5%
Admin Charges Rs. 600 per annum inflating at 5% per annum
Rs 60 per month
Rs 22 per month. Annual charge of Rs 2.88/000 FA in first 10 yrs (2nd yr 15. 24) and it will increase thereafter.
7% of AP for premium up to Rs 20.000 in Yr 1 and 4% thereafter. For premium above 20,000 it is 3% in yr 1 and 2% thereafter.
Add switching charge
Rs 100 or 5% switch amount whichever is lower.
Rs 100 Rs 100 & Floating Rate 0.22%; Balanced
Primium allocation charge
None None None 0.50%; Growth 0.58%
Other Charges 5% per annum of the Capital Units during the policy term subject to maximum of 20 years (Initial Mgmt Charge)
One partial withdrawsl in a policy year would be free. All subsequent partial withdrawals in that policy year would be charged at Rs. 100 per withdrawsl.
2 Partial Withdrawals are free of charge, For every additional Partial Withdrawal, a charge equal to Rs. 100 subject to a maximum charge of Rs. 500 will be
First 2 withdrawals are free. Subsequent withdrawals are charged Rs. 500.
levied Fund Management Charge
Equity Growth Fund 1.75%Equit Index Fund ll 1.25%Bond Fund 0.95% Liquid Fund 0.95%Accelerator MidL Cap Fund 1.75%
Maximiser ii: 1.5%; Balancer ii: 1% Protector ii: 0.75% Preserver: 0.75%
1% for all 3 funds
None (Bid/offer Spread)
Features / Companies
Bajaj Allianz Bajaj Allianz
Plan Name Capital Unit Gain
New Secure First
Policy Charges Ra.10,000-199,999 5.00%Rs.200,000-9,99,999 4.00%>= 10,00,000 3.00%
Year Silver Gold Platinum
1 30% 50% 76%2 Onwards 94% 95% 97%
Charges on Top-Ups
2% 2% of top-ups
Admin Charges Rs. 600 per annum inflating at 5% per annum
Rs 30 per month, inflating at 5% annually
Add switching charge
Rs 100 or 5% switch amount whichever is lower.
Rs 100 or 5% of switch amount whichever is sower.
Premium redirection charge
None None.
Other Charges 5% per annum of the Capital Units during the policy term subject to maximum of 20 years (Initial Mgmt Charge)
None
Fund Equity Growth Equity Growth: 1.75%
Management Charge
Fund 1.75%Equit Index Fund ll 1.25%Bond Fund 0.95% Liquid Fund 0.95%Accelerator MidL Cap Fund 1.75%
Income: 0.95%Nifty Index 1.25%Balancer: as per mix
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
a) Research Objective
b) Research Design
c) Research Study
d) Sampling
e) Collection of Data
f) Data Source
g) Data Collection Method
h) Field work
i) Limitations of Survey
RESEARCH OBJECTIVE
The aim of this research is to study the awareness about Insurance in Dehradun.
To find how many people prefer Insurance.
The study also involves through field research of various people
preference of Insurance over other system.
The study also focus on recalling the name of some l Insurance
companies.
The study reveals whether advertisements are used to market directly
some Insurance.
The study rank the reasons in term of their importance for less popularity
of Insurance.
To find the number of ways to rise awareness about insurance in the
society.
RESEARCH DESIGN
RESEARCH DESIGN
Research design is a conceptual structure with in which research is conducted. It
constitutes the blue print for the collection, measurement and the analysis of the data.
Research design consists of :-
a) A clear statement of research problem.
b) Procedure and techniques to be used for getting information.
c) Number of Respondents to be studied.
d) Method to be used in processing and analyzing data.
Research Design is needed because it facilitates the smooth sailing of the various
research operations, there by making research as efficient as possible yielding
maximum information with expenditure of effort, time and money. Research design
gives proper and structured way by which research becomes very smother and gives
accurate information.
RESEARCH STUDY
Data collection source : Primary Data
Data collection method : Survey method
Data collection : Questionnaire
SAMP LING
Sampling Unit : Customers
Sample Size : 100
Sampling Procedure : Random Sample
COLLECTION OF DATA
The study conducted mainly on the basis of primary data. Primary data are those
which are collected fresh i.e. for the first time, and thus happen to be original in
character.
The main aim of collecting data is to search new ideas and give an incentive to
environment. Primary data can be collected from primary sources. Primary sources
may consists of customers.
We have contacted all of the above for the collection of data, and had covered the
whole Dehradun region.
DATA SOURCE
The data used in the project is mainly primary in nature. This information had been
collected from personal interviews. Further data is secondary in nature. It is collected
through company’s literature and internet.
More information and data is collected through discussion with Mr. Rajendra
Prasad (Sales Managaer) and other members of the company.
DATA COLLECTION METHOD
The method of collecting the data is basically the field survey. Thus this survey is
descriptive in nature. I have divided my data collection in two segments which are as
follows :
1) Government Institution.
2) Individuals.
3) Shopkeepers
4) Students
FIELD WORK
The questionnaire administering covered a period of 30 days.
During the survey I had covered all prospective educated users and an appropriate
data was collected through filling questionnaire by the appropriate person.
LIMITATIONS
LIMITATIONS OF SURVEY
The following are the limitations :
1. The findings are based on the response of 100 educated persons mostly
younger and may it happen that their views may vary with educated persons
or aged persons.
2. Some times due to lack of respondents support it has become difficult to get
required information.
3. In our survey some people were not easily ready to fill the questionnaire.
4. Some respondents might have provided biased or incorrect answers.
5. Due to lack of training we are not able to convey the customer properly.
6. Since the time period is very less to find out the market position of the
company.
7. Sometimes customer are not ready to cooperate to us.
SWOT ANALYSIS
SWOT ANALYSIS
SWOT is best appreciated in the context of marketing analysis and strategy
formulation. Together a consideration of the environment, the sources, values,
expectations and objectives provides the basis for marketing analysis, so as to
arrive at a view of the organizations strategic situation. It helps to form a basis for
deciding on the extent to which a change in the strategy is necessary .
SWOT – STANDS FOR :
S - Stands for “Strength”
W - Stands for “Weakness”
O - Stands for “Opportunity”
T - Stands for “Threats”
SWOT ANALYSIS OF INSURANCE INDUSTRY
STRENGTHS
o Bajaj Allianz is one of the biggest insurance company in the world in
Insurance sector.
o It gives more benefits then others.
o You can pay your premium from any where in the country.
o It provides fully medical checkup of the customer.
o It provides waver of premium in some policy.
o It provides rider benefits in all the policies.
o If you have any claim or you will get sum assured with in seven days.
WEAKNESS
o It has branches in very few cities in India.
o There is no proper advertisement on electronic media in In
o Maximum customer are still loyal to other brands .
o Bajaj Allianz spends less on advertisement as compare to others.
OPPORTUNITIES
o The insurance sector is growing rapidly.
o Bajaj Allianz to make those policies which will satisfied the need of
customer.
o Dehradun city is growing at a very fast rate and the people are
educated so company should focus in Dehradun region.
.
o THREATS
o LIC, ICICI are continuously doing their research and development
toward there policies .
Others private companies focusing advertisement in print media,
electronic media so company must go for the same.
SUGGESTIONS
SUGGESTIONS
1. Brand image play important role. Companies should develop their brand
image.
2. Company should distribute literature and information for better customer
education .
3. Making people aware about benefits of insurance.
4. Increasing the number of qualified advisor to help the people and suggest
them to buy insurance.
5. Company provide easy mediclam to customers.
6. Company must increase investment on T.V. it has become more effective and
catchy.
7. Special training should be organize to educate the customer about their
flexible policies.
8. As benefit is the major factor company should highlight “INVESTMENT
SCHEME” in there advertisement. .
CONCLUSION
CONCLUSION
After analyzing the Dehradun Market. I came to know that this market is having
lots potential customer. So company should make such product which will be able
to satisfy different customer group.
As the people of Dehradun are educated and read news paper, watch T.V.
commercial so company should make aware their different insurance scheme.
\
APPENDIX
QUESTIONNAIRE
Name : _______________________ Age _____________Address:______________________ Ph. No.____________Employee/ Businessman__________ Designation :___________
Q.1 Do you have insurance
(a) Yes (b) No
Q.2 In which company you have insurance ?
(a) LIC (b) ICICI Pru.(c) BAJAJ ALLIANZ (d) UNIT TRUST OF INDIA.(e) ING VYSYA LIFE (f) OTHERS.
Q.3 Which type of insurance you have ?
(a) Life Insurance (b) Investment.(c) Others
Q.4 Why do you purchase insurance ?
(a) Tax saving (b) Future Protection .(c) Any other Reason
Q.5 Why do you prefer Bajaj Allianz Life insurance ?.
(a) Provide more benefits (b) High Interest Rate(c) Other Benefits.
Q.6 Do you think Bajaj Allianz give more benefits in comparison to others?
(a) Highly Satisfied (b) Satisfied(c) Average (d) Poor(e) Not satisfied
Q.7 Do you think Bajaj Allianz Life insurance policies are flexible?(a) Yes (b) No(c) Can’t Say.
Q.8 Do you think Bajaj Allianz Life provide easy Mediclaim ?
(a) Yes (b) No(c) Can’t Say.
Q.9 Have you planned to buy insurance ?
(a) Yes (b) No(c) Can’t Say.
Q.10 What factor do you consider while purchasing insurance ?
(a) Brand image (b) Security(c) Premium.
Q.11 From where do you know about Bajaj Allianz?
(a) Advertisement (b) Holdings(c) Friends (d) Others
DATE :
PLACE : SIGNATURE
THANKS
DATA ANALYSIS
Q.1 Do you have insurance
Yes85%
No15%
Yes
No
Q.2 In which company you have life insurance ?
45
1317
10
15
0
5
10
15
20
25
30
35
40
45
50
LIC ICICI Pru UTI IVL OthersBajaj Allianz
Q.3 Which type of insurance you have ?
Life Insurance General insurance
S1
Life Insurance,
70 General insurance, 30
Q.4 Why do you purchase insurance?
30
60
10
0
10
20
30
40
50
60
70
Tax Saving Future Protection Any other Reason
Q.5 Why do you prefer Bajaj Allianz Life insurance?
60
30
10
0
10
20
30
40
50
60
70
Provide MoreBenefit
Easy Return Other Benefits
Q.6 Do you think Bajaj Allianz give more benefits in comparison to others?
40
30
20
64
0
5
10
15
20
25
30
35
40
45
HighlySatisfied
Satisfied Average Poor NotSatisfied
Q.7 Do you think Bajaj Allianz Life insurance policies are flexible?
70
20
10
0
10
20
30
40
50
60
70
80
Yes No Can't Say
Q.8 Do you think Bajaj Allianz Life provide easy Mediclaim ??
40
35
25
0
5
10
15
20
25
30
35
40
45
Brand Image Security Premium
Q.9 Have you planned to buy insurance ?
No6%
Yes80%
Can't Say14%
Q.10 What factor do you consider while purchasing insurance ?
40
35
25
0
5
10
15
20
25
30
35
40
45
Brand Image Security Premium
Q.11 From where do you know about Bajaj Allianz?
30
20 20
30
0
5
10
15
20
25
30
35
Advertisement Holdings Friends Others
FINDINGS
1. Bajaj Allianz is still expanding its market share in Dehradun.
2. LIC & ICICI Prud. is a major competitor of Bajaj Allianz.
3. Customers are more satisfied with the policy of Bajaj Allianz in comparison to the
other competitors.
4. Future prospects of Bajaj Allianz is excellent in Dehradun market .
5. Customer awareness about Bajaj Allianz in the market is moderate.
6. Most people purchase insurance on the brand image.
7. Mostly people purchase insurance for future protection. But they also purchase it
to save their taxes.
8. Mostly people are insured in Dehradun region.
FINDINGS
1. Bajaj Allianz is still expanding its market share in Dehradun.
2. LIC & ICICI Prud. is a major competitor of Bajaj Allianz.
3. Customers are more satisfied with the policy of Bajaj Allianz in comparison to the
other competitors.
4. Future prospects of Bajaj Allianz is excellent in Dehradun market .
5. Customer awareness about Bajaj Allianz in the market is moderate.
6. Most people purchase insurance on the brand image.
7. Mostly people purchase insurance for future protection. But they also purchase it
to save their taxes.
8. Mostly people are insured in Dehradun region.