Summer internship in report.docx 1

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Summer internship in report

submitted in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

FROM

MANONMANIAM SUNDARANAR UNIVERSITY

Submitted by

DILIP KUMAR

09AM50036

Under the guid Ms. Sujatha S. Patil

LL.B (Hons) LL.M, PGD Cyber Law, (Ph.D)

Lecturer

MANONMANIAM SUNDARANAR UNIVERSITY

Tirunelveli -627 012

Month & year

Dec 2010

DAYANANDSAGAR BUSINESS ACEDEMY, BANGALORE


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CERTIFICATE OF GUIDE

This is to certify that the Internship report Dilip kumar is a bonafide work of ,

Enrolment No.09AM50036 for the partial fulfi llment of the requirements for the award

of the degree of Masters of Business administration from Manonmaniam Sundaranar

University under my guidance during the year dec 2010. This work is original and not

submitted earlier for the award of any degree/diploma elsewhere.

SIGNATURE OF THE GUIDE SIGNATURE OF THE DIRECTOR

Ms. Sujatha S. Patil DR. H.A SHANKARANARAYANA

LL.B (Hons) LL.M, PGD SAGAR BUSINESS ACADEMY

Cyber Law, (Ph.D) Lecturer


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DECLARATION BY THE CANDIDATE

I Dilip kumar hereby declare that the summer training report submitted to

Manonmaniam Sundaranar University in partial fulfillment of the requirements for the

award of Masters of Business administration is a record of original work done by me

under the supervision and guidance of Mrs. Sujatha S. patil

Place: BANGALORE

Date: 15 DEC 2010

Enrolment No. 09AM50036

Signature of the Candidate


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ACKNOWLEDGEMENT

No man is indispensable but there are certain mortal without whom the quality worksuffers their guidance becomes important in acquiring quality results.

. I am grateful my BM. Mr.Akhilesh Kr. singh who has given more guidance about SIP.I am grateful to my Director Dr. H A Shankaranarayana who has given me this opportunity toprepare this project and provided her valuable guidance. I am also grateful to my guid Mrs.Sujatha S. Patil who has given more guidance about SIP.I am also grateful my companyrelationship manager Mr. Sashi Mishra and company guide Mr. Subhash Kr.Singh who hasprovided all the necessary information required to prepare this report. I am also grateful to

my parents and friends who inspired me to put my best efforts.


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CONTANTS

SL. No PARTICULARS PAGE NO.

1 Introduction 1- 15

2 Profile of the organization 16 40

3 Discussion on training 41 45

4 Summary 46 48

5 Bibliography 53 54

6 Annexure 49 - 52


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CHAPTER: 1

INTRODUCTION

1.1 INTRODUCTION ABOUT THE SECTORE

1.2 GENERAL INTRODUCTION ABOUT THE COMPANY

1.3 INDUSTRY PROFILE.

A. GROWTH AND PRESENT STATUS OF THE INDUSTRY.

B. FUTURE OF THE INDUSTRY.


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1.1 INTRODUCTION ABOUT THE SECTORE

y Financial Sector:

India has presently entered a high-growth phase of 8-9 per cent per annum, from an

intermediate phase of 6 per cent since the early 1990s. The growth rate of real GDP

averaged 8.6 per cent for the four-year period ending 2006-07; if one considers the

last two years, the growth rates are even higher at over 9 per cent. There are strong

signs that the growth rates will remain at elevated levels for several years to come.

This strengthening of economic activity has been supported by higher rates of

savings and investment. While the Financial Sector reforms helped strengthening

institutions, developing markets and promoting greater integration with the rest of the

world, the recent growth phase suggests that if the present growth rates are to be

sustained, the financial sector will have to intermediate larger and increasing volume

of funds than is presently the case. It must acquire further sophistication to address

the new dimensions of risks.

It is widely recognized that financial intermediation is essential to the promotion of

both extensive and intensive growth. Efficient intermediation o f funds from savers to

users enables the productive application of available resources. The greater the

efficiency of the financial system in such resource generation and allocation, the

higher is its likely contribution to economic growth. Improved allocative efficiency

creates a virtuous cycle of higher real rates of return and increasing savings,

resulting, in turn, in higher resource generation. Thus, development of the

financialsystem is essential to sustaining higher economic growth.


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It is useful to briefly recall the nature of the Indian banking sectorat the time of

initiation of financial sectorreform in India in the early 1990s. This would facilitate a

greater clarity of the rationale and basis of reforms. The Indian financial system in

the pre-reform period, i.e., up to the end of 1980s, essentially catered to the needs of

planned development in a mixed economy framework where the government sector

had a domineering role in economic activity. The strategy of planned economic

development required huge development expenditures, which was met thorough

thedominance of government ownership of banks, automatic monetization of fiscal

deficit and subjecting the banking sector to large pre-emption both in terms of the

statutory holding of Government securities (statutory liquidity ratio, or SLR) and

administrative direction of credit to preferred sectors. Furthermore, a complex

structure of administered interest rates prevailed, guided more by social priorities,

necessitating cross-subsidization to sustain commercial viability of institutions.

These not only distorted the interest rate mechanism but also adversely

affectedfinancial market development. All the signs of financialrepression were

found in the system.

There is perhaps an element of commonality in terms of such a repressed regime

in the financial sectorof many emerging market economies at that time. The decline

of the Bretton Woods system in the 1970s provided a trigger for financial

liberalization in both advanced and emerging mar kets. Several countries adopted a

big bang approach to liberalization, while others pursued a more cautious or

gradualist approach. The East Asian crises in the late 1990s provided graphic

testimony as to how faulty sequencing and inadequate attention to institutional

strengthening could significantly derail the growth process, even for countries with

otherwise sound macroeconomic fundamentals.


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India, in this context, has pursued a relatively more gradualist approach to

liberalization. The bar was gradually raised. Each year the Central Bank slowly, in

a manner of speaking, tightened the screws. Nevertheless, the transition to a

regime of prudential norms and free interest rates had its own traumatic effect. It

must be said to the credit of our financial system that these changes were absorbed

and the system has emerged stronger for this reason.

1.2: GENERAL INTRODUCTION ABOUT THE COMPANY

HISTORY OF LIFE INSURENCE

Risk protection has been a primary goal of humans

and institutions throughout history. Protecting against risk is what

insurance is all about. Over 5000 years ago, in China,

insurance was seen as a preventative measure

against piracy on the sea. Piracy, in fact, was so

prevalent, that as a way of spreading the risk, a

number of ships would carry a portion of another

ship's cargo so that if one ship was captured, theentire shipment would not be lost.

In another part of the world, nearly 4,500 years ago, in the

ancient land of

Babylonia, traders used to bear risk of the caravan trade by

giving loans thatN

had to be later repaid with interest when the goods arrived

safely. In 2100

BC, the Code of Hammurabi granted legal status to the

practice. It

formalized concepts of bottomry referring to vesselbottoms and

respondentia referring to cargo. These provided the

underpinning for

marine insurance contracts. Such contracts contained three

elements: a loanon the vessel, cargo, or freight; an interest rate; and a

surcharge to cover thepossibility of loss. In effect, ship owners were the insured

and lenders were

the underwriters.


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Life insurance came about a little later in ancient Rome,

where burial clubs

were formed to cover the funeral expenses of its members,

as well as help

survivors monetarily. With Rome's fall, around 450 A.D., most

of the

concepts of insurance were abandoned, but aspects of it did

continue through

the Middle Ages, particularly with merchant and artisan

guilds. These

provided forms of member insurance covering risks like fire,

flood, theft,

disability, death, and even imprisonment.

During the feudal period, early forms of insurance ebbed

with the decline

of travel and long-distance trade. But during the 14th to 16th

centuries,

transportation, commerce, and insurance would againreemerge.

Insurance in India can be traced back to the Vedas. For

instance, Yogakshema, the name of Life Insurance Corporation of

India's corporate

headquarters is derived from the Rig Veda. The term

suggests that a form of

"community insurance" was prevalent around 1000 BC and

practiced by the

Aryans.

And similar to ancient Rome, burial societies were formed in

the Buddhistperiod to help families build houses, and to protect widows

and children.

Modern Insurance

Illegal almost everywhere else in Europe, life insurance in

England was

vigorously promoted in the three decades following the

Glorious Revolution

of 1688. The type of insurance we see today owes its roots

to 17th century


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England. Lloyd's of London, or as they were known then,

Lloyd's Coffee

House, was the location where merchants, ship owners and

underwriters met

to discuss and transact business deals.

While serving as a means of risk-avoidance, life insurance

also appealed

strongly to the gambling instincts of England's burgeoning

middle class.

Gambling was so rampant, in fact, that when newspapers

published names of

prominent people who were seriously ill, bets were placed at

Lloyds on

their anticipated dates of death. Reacting against such

practices, 79 merchant

underwriters broke away in 1769 and two years later formed

a New LloydsCoffee House that became known as the real Lloyds.

Making wagers on

people's deaths ceased in 1774 when parliament forbade the

practice.

Insurance moves to America

The U.S. insurance industry was built on the British model.

The year 1735

saw the birth of the first insurance company in the American

colonies in

Charleston, SC. The Presbyterian Synod of Philadelphia in

1759, sponsored

the first life insurance corporation in America for the benefit

of ministers

and their dependents. And the first life insurance policy for

the general

public in the United States was issued, in Philadelphia, on

May 22, 1761.

But it wasn't until 80 years later (after 1840), that life

insurance really took

off in a big way. The key to its success was reducing the

opposition fromreligious groups.

In 1835, the infamous New York fire drew people's attention

to the need to

provide for sudden and large losses. Two years later,

Massachusetts became

the first state to require companies by law to maintain such

reserves. The


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great Chicago fire of 1871 further emphasized how fires can

cause huge

losses in densely populated modern cities. The practice of

reinsurance,

wherein the risks are spread among several companies, was

devised

specifically for such situations.

With the creation of the automobile, public liability

insurance, which first

made its appearance in the 1880s, gained importance and

acceptance?

More advancement was made to insurance during the

process of industrialization. In 1897, the British government passed the

Workmen's

Compensation Act, which made it mandatory for a company

to insure its

employees against industrial accidents.

During the 19th century, many societies were founded toinsure the life and

health of their members, while fraternal orders provided low-

cost, members only insurance. Even today, such fraternal

orders continue to provide

Insurance coverage to members, as do most labour

organizations. Many

employers sponsor group insurance policies for their

employees, providing

not just life insurance, but sickness and accident benefits

and old-age

pensions. Employees contribute a certain percentage of thepremium for

these policies.

Final Thoughts

Even though the American insurance industry was greatly

influenced by

Britain, the US market developed somewhat differently from

that of the

United Kingdom. Contributing to that was America's size;

land diversity

and the overwhelming desire to be independent. As America

moved from a

colonial outpost to an independent force, from a farming

country to an

Industrial nation, the insurance business developed from a

small number of

companies to a large industry.

Insurance became more sophisticated, offering new types of


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coverage and

diversified services for an increasingly complex country

MEANING OF LIFE INSURENCE

There are three parties in a life insurance

transaction: the insurer, the insured, and the owner

of the policy (policyholder), although the owner and

the insured are often the same person.

Another important person involved in a life insurance

policy is the

beneficiary. The beneficiary is the person or persons

who will receive the policy proceeds upon the death

of the insured.

Life insurance may be divided into two basic classes

term and permanent.

Term life insurance provides for life insurance

coverage for a

specified term of years for a specified premium. The

policy does not

accumulate cash value.

Permanent life insurance is life insurance that

remains in force until the policy matures, unless the

owner fails to pay the premium when it is due.

Whole life insurance provides for a level premium,

and a cash value table included in the policy

guaranteed by the company. The primary advantagesof whole life are guaranteed death benefits,

guaranteed cash values, fixed and known annual

premiums, mortality and expense charges will not

reduce the cash value

shown in the policy.

Universal life insurance (UL) is a relatively new

insurance product intended to provide permanent

insurance coverage with greater flexibility in

premium payment and the potential for a higher

internal rate of return. A universal life policy includes

a cash account.

If you want insurance protection only, and not a

savings and investment product, buy a term life


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insurance policy.

If you want to buy a whole life, universal life, or other

cash value policy, plan to hold it for at least 15 years.

Canceling these policies after only a few years can

more than double your Life insurance costs.

NEED FOR LIFE INSURANCE

You need Life Insurance because typically the need for income

continues for those who are financially dependent on you, but there

is no guarantee of your ability to earn consistently and for the rest

of your life. Life insurance can help you safeguard the financial

needs of your family.

This need has become even more important due to steady

disintegration of the prevalent joint family system, and emergence

of nuclear families. The need to protect your family's ever growingneeds is why you need Life Insurance.

Why Do I Need Life Insurance?

Thats 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. Thats 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.


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INSURANCE MARKET IN INDIA

NON-LIFE INSURANCE MARKET

In December 2000, the GIC subsidiaries were restructured as independent insurance

companies. At the same time, GIC was converted into a national reinsurer. In July 2002,

Parliamant passed a bill, delinking the four subsidiaries from GIC.

Presently there are 15 general insurance companies with 4 public sector companies and 11

private insurers. Although the public sector companies still dominate the general insurance

business, the private players are slowly gaining a foothold. According to estimates, private

insurance companies have a 10 percent share of the market, up from 4 percent in 2001. In the

first half of 2002, the private companies booked premiums worth Rs 6.34 billion. Most of the

new entrants reported losses in the first year of their operation in 2001.

With a large capital outlay and long gestation periods, infrastructure projects are fraught with

a multitude of risks throughout the development, construction and operation stages. These

include risks associated with project implementaion, including geological risks, maintenance,

commercial and political risks. Without covering these risks the financial institutions are not

willing to commit funds to the sector, especially because the financing of most private

projects is on a limited or non- recourse basis.

Insurance companies not only provide risk cover to infrastructure projects, they also

contribute long-term funds. In fact, insurance companies are an ideal source of long term debt

and equity for infrastructure projects. With long term liability, they get a good asset- liability

match by investing their funds in such projects.

RE-INSURANCE BUSINESS

Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them,

which can be safely borne from their own funds. The balance risk is re- insured with other

insurers. In effect, therefore, re-insurance is insurer's insurance. It forms the backbone of the

insurance business. It helps to provide a better spread of risk in the international market,


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all pri ary i rers t accept risks beyond t eir capacity, settle accumulated losses

arising from catastrophic events and still maintain their financial sWhile GIC s subsidiaries look after generalinsurance, GICitself has been the major

reinsurer. Currently, allinsurance companies have to give 20 per cent oftheir reinsurancebusiness to GIC. The aim is to ensure that GIC s role as the national reinsurer remains

unhindered. However, GIC reinsures the amount further with international companies such asSwissre (Swit erland), Munichre (Germany), and Royale (UK). Reinsurance premiums have

seen an exorbitantincrease in recent years, following the rise in threat perceptions globally.

LIFE INSUR NCE M RKET

The Life Insurance marketin India is an underdeveloped marketthat was only tapped by the

state owned LICtillthe entry of private insurers. The penetration oflife insurance products

was 19 percent ofthe total 400 million ofthe insurable population. The state owned LIC sold

insurance as a tax instrument, not as a product giving protection. Most customers were under-

insured with no flexibility ortransparency in the products. With the entry ofthe private

insurers the rules ofthe game have changed.The 12 private insurers in the life insurance market have already grabbed nearly 9percent ofthe marketin terms of premium income. The new business premiums of

the 12 private players has tripled to Rs 1000 crore in 2002- 03 overlast year.

Meanwhile, state owned LIC s new premium business has fallen.Innovative products, smart marketing and aggressive distribution. That s thetriple whammy

combination that has enabled fledgling private insurance companies to sign up Indiancustomers fasterthan anyone ever expected. Indians, who have always seen life insurance as

a tax saving device, are now suddenly turning to the private sector and snapping up the new

innovative products on offer.The growing popularity ofthe private insurers shows in other ways. They are coining money

in new niches thatthey have introduced. The state owned companies still dominate segments

like endowments and money back policies. Butin the annuity or pension products business,

the private insurers have already wrested over 33 percent ofthe market. And in the popular

unit-linked insurance schemes they have a virtual monopoly, with over 90 percent ofthe

customers.

The private insurers also seem to be scoring big in other ways- they are persuading people to

take out bigger policies. Forinstance, the average si e of a life insurance policy before

privatisation was around Rs 50,000. That has risen to aboutRs 80,000. Butthe private

insurers are ahead in this game and the average si e oftheir policies is around Rs 1.1 lakh to

Rs 1.2 lakh- way biggerthan the industry averag.

Buoyed by their quickerthan expected success, nearly all private insurers are fast- forwardingthe second phase oftheir expansion plans. No doubtthe aggressive stance of private insurers

is already paying rich dividends. But a rejuvenated LICis also trying to fight backto woo

new customers.


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1.3 INDUSTRY PROFILE:

A. GROWTH & PROSPECTS OF THE INDUSTRY:-The growth of financial sector in India at present is nearly 8.5% per

year. The rise in the growth rate suggests the growth of the economy. The financial

policies and the monetary policies are able to sustain a stable growth rate. The

reforms pertaining to the monetary policies and the macroeconomic policies over

the last few years have influenced the Indian economy to the core. The major step

towards opening up of the financial market further was the nullification of the

regulations restricting the growth of the financial sector in India. To maintain such a growth

for a long term the inflation has to come down further.

The financial sector in India had an overall growth of 15%, which has exhibited

stability over the last few years although several other markets across the Asian

region were going through turmoil. The development of the system pertaining to the

financial sector was the key to the growth of the same. With the opening of the

financial market variety of products and services were introduced to suit the need of

the customer. The Reserve Bank of India (RBI) played a dynamic role in the growth

of the financial sector of India.

The growth of financial sector in India was due to the development in sectors.

Growth of the banking sector in India:

The banking system in India is the most extensive. The total asset value

of the entire banking sector in India is nearly US$ 270 billion. The total deposits are

nearly US$ 220 billion. Banking sector in India has been transformed completel y.


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Presently the latest inclusions such as Internet banking and Core banking have

made banking operations more users friendly and easy.

Growth of the Capital Market in India:

y The ratio of the transaction was increased with the share ratio and deposit

system.

y The removal of the pliable but ill -used forward trading mechanism.

y The introduction of infotech systems in the National Stock Exchange (NSE) in

order to cater to the various investors in different locations.

y Privatization of stock exchanges.

Growth in the Insurance sector in India:

y With the opening of the market, foreign and private Indian players are keen to

convert untapped market potential into opportun ities by providing tailor-made

products.

y The insurance market is filled up with new players which has led to the

introduction of several innovative insurance based products, value add-ons, and

services

Many foreign companies have also entered the arena such as Tokio Marine,

Aviva,

Allianz, Lombard General, AMP, New York Life, Standard Life, AIG, and Sun

Life.

y The competition among the companies has led to aggressive marketing and

distribution techniques.

The active part of the Insurance Regulatory and Development Authority (IRDA) as a


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regulatory body has provided to the development of the sector.

Growth of the Venture Capital market in India:

y

The venture capital sector in India is one of the most active in the financial

sector

y inspired of the hindrances by the external set up.

y Presently in India there are around 34 national and 2 international SEBI

registered venture capital funds.

B. FETURE OF THE COMPANY

The finance ministry has a new incumbent and the hope all round seems to be

that he will try and improve the feel good factor. While wishing the new finance

minister the best in his Endeavour, I would request him to resist the temptation

of tinkering with the financial system or key organizations in it with a view to

merely creating an illusion of economic well being. The tendency to make

marginal changes in a random manner is pervasive in this country resulting in

creating incomplete systems and inchoate organizations. The financial sector is

a case in point with a large number of knee-jerk reactions to scams or systemic

failures. It is important to understand that sometimes inaction may be better

than thoughtless hasty action. This applies as much to organizational change as

it does to sector level changes.

The financial sector has witnessed changes in many respects. Banking has

seen many changes in the last two decades, as has the mutual fund business.

During the first three decades after independence, the financial sector and

changes in it were largely dominated by SBI, IDBI, IF CI, UTI, ICICI, and LIC but


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the last two decades saw a significant contribution by many other players,

smaller in size, but faster on their feet. Each one of these large players was

created with very specific mandates, but with sector-wide responsibilities. For

example formation of SBI was the result of the Rural Credit Survey Committee

recommendation to create an entity that among other things would help the

government in stimulating banking in the entire country. Similarly, the UTI was

created in 1964 with the explicit objective of stimulating investment in the stock

market. In other words, these organizations were created with specific purposes

and a vision for the future. They have significantly served the purposes that

drove them all these years, and delivered on the agenda set for them. The

present day financial sector has been built on the achievements of these

organizations. However, in the last few years, we see organizations like SBI and

UTI endeavoring to compete with every player in the market. As a

consequence, these organizations are trying to become everything to

everybody. The negative image associated with a public enterprise has only

added to their attempt to emulate private enterprise behavior. Survival has

become the objective of these pioneers. In sum, these organizations are fast

losing their initial identity without gaining.


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CHAPTER: 2

PROFILE OF THE ORGANIZATION

2.1 ORIGIN OF THE ORGANIZATION

2.2 GROWTH OF THE ORGANIZATION

2.3 FUNCTIONAL DEPARTMENT OF THE ORGANIZATION

2.4 ORGANIZATION STRUCTURE AND CHART

2.5 PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION

2.6 FINANCIAL STATUS OF THE ORGANIZATION


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2.1 ORIGIN OF THE ORGANIZATION

BAJAJ ALLIANZ, is a comprehensive financial services and solution provider

providing customers with access to Equity, Equity and Commodity Derivatives,

Portfolio Management Services, Mutual Funds, IPOs, Life and General Insurance

and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and

Money Changing services.

BAJAJ ALLIANZ, which started Company in 2001, is adding about 2,000 to 2,500

customers every day. It currently has about 1.65 lakh customers. And the traded

volumes have crossed about Rs 1,200 crore.

If we see the market share Bajaj allianz has competitors likes ICICI Direct, Kotak,

besides others, Mr. KAMESH GOYAL says, We havent entered this business to

take a share in this market. We are going to expand the market.

The number of investors in mutual funds is about 45 million going by the folios. The

number of individual bank accounts in the country is about 370 million. But the

number of demat accounts has stagnated around 7 million for the past decade.

INTRODUCTION ABOUT THE COMPANY:

Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance

Company and Bajaj Finserv. (recently demerged from Bajaj Auto.)

Allianz SE is a leading insurance conglomerate globally and one of the

largest asset managers in the world, managing assets worth over a Trillion


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(Over INR. 55, 00,000 Crores). Allianz SE has over 115 years of financial

experience and is present in over 70 countries around the world.

At Bajaj Allianz Life Insurance, customer delight is our guiding principle.

Our business philosophy is to ensure excellent insurance and investment

It started in 2001.

Financial services arm's profit rises to Rs 42 croreBS Reporter / Mumbai July 16, 2009, 0:40 IST

Bajaj Finserv, the financial services arm of the Bajaj Group, posted a net

profit of Rs 42 crore for the quarter ended June 30, 2009. It had posted a loss

of Rs 36 crore in the corresponding period last year.

The groups life insurance arm, Bajaj Allianz Life Insurance Company, was

the biggest contributor to the firms income. Bajaj Allianz has posted a profit

of Rs 68 crore in the June quarter. In the year-ago quarter, it had posted a

loss of Rs 3 crore.

BAJAJ GROUP

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest

manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.

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

loyalty synonymous with quality & customer focus

A STRONG INDIAN BRAND- HAMARA BAJAJ

One of the largest 2 & 3 wheeler manufacturer in the world

21 million+ vehicles on the roads across the globe

Managing funds of over Rs 4000 cr.


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Bajaj Auto finance one of the largest auto finance cos. in India

Rs. 9,634 Cr. Turnover & Profits of 964 Cr. in 2009-10

It has joined hands with Allianz to provide the Indian consumers with

a distinct option in terms of life insurance products.

As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto

has the following to offer -

Financial strength and stability to support the Insurance Business.

2.2: GROWTH OF THE ORGANIZATION:The growth of the company is driven by 8 success sutras adopted by it

namelytrust, integrity, dedication, commitment, enterprise, hard work and team play,

learning and innovation, empathy and humility . These are the values that bind

growth of Bajaj Allianz.

Bajaj allianzgenerated revenues of Rs.43 billion (US$ 862 million) for

the year March 31, 2010 as against Rs.30 billion of the corresponding previous

period, an increase of 56%. It also achieved net profit of Rs.534 million (US$ 10

million) for the same period, as against a net profit of Rs.2 million for the

corresponding previous period.

Bajaj allianz is amongst the leading mutual fund distributors of the

country distributing products of 20 AMCs. It is the largest private sector partner for

Western Union Money Transfer in India.

The Rs 259 crore online broking and distribution major, Bajaj allianz, is the first


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mover in deploying technology tools across its operations. Having all of its

operations automated with tightly controlled risk management, Bajaj allianz

managing director kamesh goyaland Sr. Niraj Bajaj intends to give the best IT

experience to all of its business users.

2%-,&7,9(

To achieve & sustain market leadership, Bajaj allianz shall aim for

complete customer satisfaction, by combining its human and technological

resources, to provide world class quality services. In the process Bajaj allianz shall

strive to meet and exceed customer's satisfaction and set industry standards.

0LVVLRQ

The mission of the company is to be a leading and preferred service

provider to our customers, and we aim to achieve this leadership position by

building an innovative, enterprising, and technology driven organization which will

set the highest standards of service and business ethics.

To attain global best practices and become a world-class financial services

enterprise guided by its purpose to move towards greater degree of sophistication

and maturity.

To work with vigor, dedication and innovation to achieve excellence in service,

quality, reliability, safety and customer care as the ultimate goal.

To earn the trust and confidence of all stakeholders, exceeding their

expectations and make the Company a respected household name.


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To consistently achieve high growth with the highest levels of productivity.

To be a technology driven, efficient and financially sound organisation.

To contribute towards community development and nation building.

To be a responsible corporate citizen nurturing human values and concern for

society, the environment and above all the people.

To promote a work culture that fosters individual growth, team spirit and

creativity to overcome challenges and attain goals.

To encourage ideas, talent and value systems.

To uphold the guiding principles of trust, integrity and transparency in all

aspects of interactions and dealings.

2.3 FUNCTIONAL DEPERTMENTS OF THE


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ORGANIZATION

Functional area of Bajaj Allianz is very vast, explanation of about those departments

are

As fallow.

Marketing department:

Marketing is the delivery of customer satisfaction at a profit. Marketing,

any other business function deals with customer. Creating customer value and

satisfaction are the heart of the modern marketing. Therefore two fold goal

marketing is to attract new customers by promising superiors value and to keep

current customers by delivering satisfaction.

Marketing touches all of us in everyday of our lives. The marketing

system makes everything easy and simple. Marketing is human activity directed at

satisfying needs and wants through exchange process. It delivers a standard of living

BAJAJALLIANZ

Finance department

Marketing

department

Sales

&distribution

department

HR

department

administration

department


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a comfortable life that should been inconceivable to our ancestors. I ts only through

we enjoy products, which were considered luxuries. It creates wants for better

standard of living Marketing highlights.

Understanding consumer needs and wants.

Value satisfaction and quality.

Products and services.

Exchange, transfer and relationship.

.HUMAN RESOURCE DEPARTMENT :

In business, the value of any function (marketing, finance, HR) lies in

the bottom line. Greater productivity, higher quality, better customer service, good

industrial relations and lower costs are the factors that typically contribute to higher

profits. These factors can be improved by innovative and effective HR practices.

Traditionally, business would account for HR functions as cost center. Today when

we are talking about value addition from every process and function, HR is viewed

as an investment that can lead to future gains. The success of organization

depends on the value addition of the inputs they use. The innovativeness in HR will

have to be more strategic and proactive. The magnitude can be measured with

respect to business results, which can happen only when proper HR practices act

as catalyst in business operations. Thus, HRs ultimate goal is to link the external

human requirements with the internal human capabilities, there by optimizing the

utility of both. Several implications follow from this premise like:


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The HR goal is not to make employees happy or satisfied at work; rather to

make those employees happy who are happy making external customers happy.

HR adds considerable value when it creates a customer focused corporate

culture.

HR professional must be highly knowledgeable about the market place for

capital, products and services

HR must not only be knowledgeable of specific customer issues, but also of

key aspects of the macro-societal environment such as:

o Changing values.

o Major problems and the challenges, which are shared by the large segments

of the population.

o Structures of inter-personal relationship that influence buying process.

.FINANCIAL DEPARTMENT :

Finance is the life blood of the organization it is one of the main

departments in the company. To run any organization it should have sufficient fund

and it should carry the cost as minimum as possible. The company may arrange

required finance by the way of the equity fund or by way of debt fund. Whatever it

may be the ultimate goal of the finance department is to maximize that value of the

firm to its equity shareholders. It means the goal of the firm is to maximize the

market value of its equity shares. If finance is to play general management ride in


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the organization, the financial department must be an excellent team who are

constructively involved in operations, marketing and companys overall strategy.

5HVSRQVLELOLWLHVRI)LQDQFH'HSDUWPHQW

1. To provide account and complete systematic information of financial activities

2. To maintain all the books of account and other financial documents

3. To prepare periodic financial statements have the company like Profit & Loss

account and Balance Sheet.

In the present day economy, finance is defined as the provision of

money at the time when it is required. Every enterprise, where big, medium or small

needs finance to carry on its operations and to achieve its targets. In fact finance is

so indispensable today that it is rightly said that is the lifeblood of an enterprise

without adequate finance; no enterprise can possibly accomplish its objectives.

Accounts department is responsible for passing the bills and to make

the payment through cheque or cash to the parties. Reliance Money maintains

double entry system of book keeping. The complete accounting system is

computerized and centralized.

7KH)RXU0DLQ)XQFWLRQVRI)LQDQFH'HSDUWPHQW

a) Financial decision

b) Investment decision

c) Dividend decision

d) Capital structure decision.


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Administration:

Administrators are basically facilitators of the company. They take care

of all the facilitating activities of all the departments. They help in coordinating

different activities in an organization from selecting the location of the outlet to

providing necessary infrastructure and maintaining the same.

MainActivities ofAdministration Department:

y Selecting the location.

y Providing with the required infrastructures like computers, furniture, fittings &

fixtures, air conditioners, etc.,

y Providing the storage facility.

y Looking after Marketing, Branding, Legal, Sales and Distribution, payment of

salaries and other payments required for the functioning of day to day activities.

2.4: ORGANISATIONAL STRUCTURE


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&CHART:

The organizational charts are the important tools for providing information on

organization relationships and activities. In the words of J.Betty An Organization

chart is diagrammatic representation of the framework or structure of an

organization. According to Henry.H.Albens An organization chart portrays

managerial positions and relationships in a company or department unit.

An analysis of the above definitions indicates that organization have the following

content:-

Ranks, names, titles and the lines of command, various authorities from top to

bottom of the organization.

Authority and responsibility of various authorities.

Relationships between different authorities.

Kinds of relationships prevailing in the organization.

Three types of charts are commonly followed by the business concern. They are:-

A. From top to bottom

B. From left to right, and

C. Circular.

1) From top to bottom:-

In the top to bottom method, at the top level, the highest person or position is placed

and after that the next highest of this process is continued to the lowest level.


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2) From left to right:-

In the left to right type, the highest position is shown at the extreme left and those

with lesser authority move towards the right.

3) Circular:-

In this Circular form, the highest position is shown in the centre and the lowest

position at the out most circles.

An organizational chart of a company usually shows the managers and sub -

workers who make up an organization. It also shows the relationships between the

organization's staff members which can be one of the following:

Organization chart

2.5 PRODUCTAND SERVICE PROFILE:

Branch

manager

HR

Manager

Finance

Manager

Customer

Marketing

Manager


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3URGXFWVDQG6HUYLFHV2IIHUHGE\5HOLDQFH0RQH\

BAJAJ ALLIANZ provides a comprehensive platform, offering an investment

avenue for a wide range of asset classes. Its Endeavour is to change the way India

transacts in financial markets and avails financial services. BAJAJ ALLIANZ currently offers

its services in Broking and Distribution of Financial Services and Products like:

INDIVIDUAL PRODUCTS

1. UNITGAINA Unit Linked Plan

2. RISK CAREPure Term Plan

3. TERM CARETerm Plan with Return-of-Premium

4. INVESTGAIN

An Endowment Plan

5 LIFETIME CAREWhole Life Plan

6 CHILDGAINChildren's Policy

7 LOAN PROTECTORA Mortgage Reducing Term InsurancePlan

8 CASHGAINMoney Back Plan

9 KEYMAN INSURANCEA Promising Business Opportunity

10 SWARNA VISHRANTIRetirement Plan

11 UNITGAIN PLUSUnit Link plan with higher allocation

12 LIFELONG GAIN PLANA lifetime of security for your family


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13 RIDERS UNITGAIN PLUS

While the basic life insurance

14 MAHILAGAIN RIDERThe unique plan that takes care of you and

your loved ones.

15 UNITGAIN EASY PENSIONA Plan that enables you retire with

laughter lines.... not worry lines

16 SWARNA RAKSHA-ROCA plan that provids you with regular

income... for life.

17 HEALTHCAREThis is a three-year health insurance plan,with life insurance benefit.

18 UG PREMIERUpfront Allocation of 105% of singlepremium on day 1

GROUP PLANS

GROUP CREDIT SHIELD

GROUP TERM LIFE

GROUP TERM LIFE SCHEME

GROUP SUPERANNUATION SCHEME

GROUP GRATUITY CARE SCHEME

Insurance For NRI


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All Indians have an underlying need to feel secure, to care for the loved ones and to

provide for old age. The need is felt more when you are away from your Homeland. But being

away from India doesn't mean you have to compromise on the safety and security of your loved

ones.n fact, you can now easily steer your savings from overseas to conveniently meet

your family's needs - now and in the future.

Bajaj Allianz understand your need. The need to do something fruitful for your loved ones.. The

urge to let them know that you care. That's why Bajaj Allianz introduced the NRI Insurance

services. Now, you can invest your hard earned money in India and in the bargain ensure your

family's future.

InvestGain - 'With Profits Endowment Plan'.

CashGain - 'With Profits Money Back Plan'.

ChildGain - 'With Profits Money Back Plan' for children.

Lifetime Care - 'With Profits Whole of Life Plan'.

Swarna Vishranti - 'With Profits Differed Annuity Plan'.

1. INSTRUMENT OF LIFE INSURANCE AND PANSION FUNDS AND

UNIT LINKED PLAN?

. The graph are as follow.


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1) WHICH TECHNIQUE OF LIFE INSURANCE IN PENSION FUNDS-UNIT

LINKED PLAN?

OPTION RESPONSE IN %

DISPLAY 23%

DOOR TO DOOR 32%

EXHIBITION 10%

CATALOGUE 16%

PRICE OFF 14%

2) WHICH TECHNIQ REQURE LESS TIME IN SALES PROMOTION .

OPTION RESPONSE IN %

0

5

10

15

20

25

30

35RESPONSE IN %

RESPONSE IN %


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DISPLAY 23%

DOOR TO DOOR 35%

EXHIBITION 12%

CATALOGUE 15%

PRICE OFF

0%

5%

10%

15%

20%

25%

30%

35%

40%

DISPLAY DOOR TO

DOOR

EXHIBITION CATALOGUE PRICE OFF

RESPONSE IN %

RESPONSE IN %


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,32

IPO Distribution: Bajaj allianz distributes all IPOs (Book Building as well as

Fixed Priced) pan India through its distribution channel (Online + Offline) and helps get IPO

Investment benefits by providing end to end assistance

Online: Investors need not worry about fillin g up IPO application forms,

drawing cheques and standing in long queues to submit the forms. They can apply for IPOs

online at the click of a button wit h a minute through bajaj allianz .com

Offline: If the investor does not have ac cess to internet. Bajaj al lianz would

help apply for IPOs offline through a network of branches and business partners.

ValueAdded Services:

Live news from Reuters and Dow Jones.

Research and market call and SMS.

Reuters chatting tools.

Comprehensive Portfolio.

Expert views.

Market updates on Mobile.


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2.6: FINANCIL STATUS OF THE COMPANY:

# Financial Status of Bajaj Allianz 2009-201 are as fallow

ACCELERATED GROATH

Fiscal year No of policies year New Business in FY

2001- 2002 2137 Rs.7Cr

2002- 2003 115365 Rs.63.3 Cr

2003- 2004 186443 Rs.180 Cr

2004- 2005 288189 Rs.857 C r

2005- 2006 781685 Rs.2717 Cr

2006- 2007 2079217 Rs.4302 Cr

2007- 2008 37447421 Rs.6674 Cr

2008- 2009 66347456 Rs.8564 Cr

2009-2010 74379046 Rs.12398Cr


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PATTERN OF SHARE HOLDRING

Share holder Current year Previous year

No.of

share

% of

holdring

No.of

share

% of

share

PROMOTERS

INDIA

Bajaj finsarv Ltd

FOREIGN

Allianz SE

111524666

39184340

74

26

111524660.

39,184340

74

26

Total 15070900

100 150709000 100


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SHARE CAPITAL OF 31ST

MARCH 2010 OF BAJAJ ALLIANZ

(Amount in Rs 000)

PARTICULARS CURRENT YEAR PREVIOUS YEAR

Authorise capital

200000000 Equity

share of Rs10/each

Issue , subscribedcalled and paid-up

capital equity share of

10/ each

150, 709000 (previous

year 150709000)

capital share of 10%

each

Less: preliminaryexpense

2000000

1507090

2000000

1507090

Total 1507090 1507090


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FOR LINKED BUSINESS

CURRENT YEAR PREVIOUS YEAR

PERIOD NO.OF CLAIM AMOUNT

INVOLVED

NO. OF CLAIM AMOUNT

INVOLVED

Less then 3o

days

1208 1413.46 336 663.40

30 days to 6

months

1220 1860.87 223 649.88

6 months to 1year

248 149.12 117 214.86

1 year to 5

years

260 528.39 116 175.41

5 years and

above

2 10 0 0.00

Total for the

period

2938 4461.85 786 1,703.55


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INVESMENT OF LIFE INSURANCE IN LIFE FUND

(Rs in crore)

2009 2010

PUBLIC SECTOR

LIC (A) 15350 Cr 17428 Cr

PRIVATE SECTOR

HDFC STD LIFE 8537 Cr 9037 Cr

MNYL 2314 Cr 2432 Cr

ICICI PRU 7524 Cr 7740 Cr

BSIL 1263 Cr 1305 Cr

TATA AIG 6971 Cr 7102 Cr

KOTAK LIFE 3530 Cr 3685 Cr

SBI LIFE 8745 Cr 8956 Cr

BAJAJ ALLIANZ 9520 Cr 9775 Cr

METLIFE 3415 Cr 3502 Cr

AMP SANMAR 2143 Cr 2205 Cr

ING VYSYA 4132 Cr 4250 Cr

AVIVA 3741 Cr 3821 Cr

SAHARA LIFE 7932 Cr 8075 Cr

TOTAL(B) 62628 Cr 71885 Cr

TOTAL(A+B) 77978 Cr 89313 Cr


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CHAPTER: 3

DISCUSSIONS

ON

TRAINING

3.1 WORK PROFILE(ROLE & RESPONSIBILITIES)

3.2 DESCRIPTION OF LIVE EXPERIENCE


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3.1: WORK PROFILE (ROLE & RESPONSIBILITIES):

7


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52/($1'5(63216,%,/,7,(6

During the period as a trainee of the Bajaj Allianz I have handled lots of roles and

responsibilities. This helped me to understand about the job.

Roles and Responsibilities during my project time as follows

Introduction of theBajajAllianz Here I learnt when Bajaj Allianz was introduced

in the Indian financial sector. Here my role was to understand abo ut the product of

Bajaj Allianz which they deal with the customers. Bajaj Allianz is a Financial sector,

and insurance is a service based product, so I have taken some knowle dge how the

new concept of insurance working out in the market.

y Customer needs analysis Customers need analysis is the main key to

achieve Target market.

Demat Account is the door to enter in the share market to buy shares. Here I learnt

on what basis and through how Bajaj Allianz processed their Demat Account.

Knowledge about theMutual Fund Mutual Fund is a investment instrument, I

have learnt how Mutual Fund works out in the market and how portfolio manager do

their works to manage a mutual fund.

y Knowledge about the trading through Demat Account On the basis of

demat Account, how a customer can do trading and how it works out in

dematerialized form.

WealthManagement Wealth Management is the crucial part of a management

system, Wealth managers use to care take the wealth level of a company. Here our

role was, how wealth managers are working in the wealth management and what all


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criteria they are picking to make it effective.

y Fillingprocess of Demat application Form Demat application is one of the

longest application form, and it consist of bank account, trading account and demat

account and its filling process needs same documents. Those are 2 copy of photo,

PAN card, Address Proof, And Cheque or Demand Draft.

Concept ofPortfolio Management System Portfolio Management System (PMS)

is a management system where investors just invest their money and then Portfolio

managers, Research Analysist, Relationship Managers they take that investors fund

and separate them into different folio to get bi g return.

And along with those above roles I have attended some of special

training sessions in Bajaj Allianz itself. Those makes me understandable what all

are the instruments of Financial Sector and how they works o ut through the financial

sector

3.2: DESCRIPTION OFLIVE EXPERIENCE:

After entering in this organization I have gained lots of experiences about the

Market Approach, Products of the Insurance Companies, Mutual Fund Companies;

etc.At the time of doing work over the organization, I experienced how all corporate

works use to handle inside and outside of the organization.Here I experienced how

all Function Departments are inter connected and one for other.

Along with my works I experienced how to approach about a product in front of a

customer and market. During my training session I have attended some


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appointments with clients which help me to understand the customers need.

y What all promotional activities are done in the financial sector.

y Here I experienced how a financial sector can run their market entire of the huge

competition based market system; etc.

y Most of investors not fully aware about Life insurance policies and their advantage.y It was found most of the investor prefer, less risk taking saving scheme or fixed deposits.y Some of the people, who were related to rural area, did not know about facility for

investment of money in Life Insurance Policy schemes.

y The proportion of investor and non-investor 20% & 80%.. The investors were interested more in Policies of LIC because it is a Government body.

. Some of the investors were pleased to know about New FamilyGain

and said that it is a very good plan and is very much affordable by

middle class people.

AREA OF STUDY

The area of the study related with getting correct information of life insurance policies of

different peoples in the region of Bihar.

SAMPLE DESIGN

y

A sample design is a definite plan for obtaining a sample from a given population. It refersto the techniques or the procedure the researcher would adopt in selecting items for the

sample. Sample design may as well be drawn from the population to be included in the

sample i.e. the size of the sample. Sample design is determined before data are collected.

y During my study I have taken 50 insurance care consultants as the size ofsample.


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CHAPTER: 4

SUMMARY

&

CONCLUSION


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4.1: EXECUTIVE SUMMARY

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz SE, one of the world's largest insurance companies, andBajaj Finserv. Allianz SE is a leading insurance corporation

globally and one of the largest asset managers in the world, that

manage assets worth over a Trillion. With over 115 years of

financial experience, Allianz SE is present in over 70 countries

around the world. Bajaj Allianz is into both life insurance and

general insurance. Today, Bajaj Allianz is one of India's leading

and fastest growing insurance companies. Currently, it has

presence in more than 550 locations with over 60,000 Insurance

Consultants.

In June 2009, Bajaj Allianz entered into partnership with Thomas Cook India toprovide travel finance. Bajaj Allianz Life Insurance ensures excellent insurance

and investment solutions by offering customized products, supported by the best

technology.

A comprehensive list of policies and products offered by Bajaj

Allianz Life Insurance Co. Ltd. is as follows:

/($51,1*(;3(5,(1&(

During theperiod asa trainee of theBajajallianz Ihavehandled lots of roles

and responsibilities. Thishelped me to understand about thejob.

In Operations:

y Clarifying the queries of the customers that are raised and providing them

giving the appropriate solution for them.

y Tracking all the Inwards to the Branch pertaining to the Customer.

y Keeping track of the changes required in each application.


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y Reporting faulty application and proceeding with the cleared application.

In Marketing:

y Understanding all the available products in each category

y Understanding the competitors products so as to differentiate about the

company from others to the customer.

y Understanding the needs and requirements of the customers.

y Following up the customers until the order is closed.

y Getting up contacts from the customer to work upon the similar activity.

y

Working with the executives to achieve the individual and the group target

given by the Organization.


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APPENDIX

&

ANNEXURE


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QUESTIONNAIRE:

I DILIP KUMAR 3rd SEM, MBA am the student of DAYANANDA SAGAR

BUSINESS ACADIMY, Bangalore conducting a survey to know your p erception

towards Bajaj Allianz. Kindly extent your cooperation in filling this questionnaire and

enable me to do this project work successfully.

Questionnaire used was as follows :

Name: ______________________________ Age: _____________

Occupation: __________________________ Gender: __________

ApproximateMonthly Income: _________________________________

1. On what basis do you allocate a portfolio to your investor?

1. Based on Interest of the investor.

2. Based on Type of the investor we can classify as.

y Aggressive

y Conservative

y Moderate

y Moderate Aggressiv

y Moderately Conservative


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2. How do you evaluate your instruments?

y Equity Price Earnings Ratio

y MF- NAV

y Debentures- Interest Rate

y Bank deposit Interest Rate

y Public Provident Fund- Interest Rate

y Gold and Silver - Market Price

y Real Estate- Market Price

y Commodities- Market Price

3. Do you use any base model for constructing a portfolio? If Yes? What model

do you use? If no, why you have not used?

No. the portfolio managers dont use any model while constructing a portfolio

as they are theoretically sound but are not practically applicable.

4. What analysis do you carry out before constructing a portfolio?

y Need based analysis

y Tech analysis

y Fundamental analysis

y

Risk return analysis

y Sectoral analysis of the stock

5. Which technique requires more knowledge to execute?y Display

y Door to door demonstration


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y Exhibition

y Catalogue

y Price-off

6. Price off and installment offers are necessary for sales promotion?y Yes

y No

y Cant say

7. Do you think that sales promotion program that is presently undertaken

byBajaj Allianz. are satisfactory?

y Yes

y No

y Cant say

8. Should Bajaj Allianz. take up new sales promotion program?y Yes

y No

y Cant say

9. Where do you invest money?

y savings Bank Account

y Insurance Policies

y Share

y Mutual Fund


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BIBLIOGRAPH


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WEBSITE:

www.bajajallianz.com

www.moneycontrol.com

www.irda.com

www.google.com

REFERENCE BOOKS:

1. Kothari C.R (1999) research methodology, wishwa prakashan

2. Investment analysis potfolio manegetment by prashad chandra

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