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SUMMER TRAINING PROJECT REPORT
ON
PRODUCT ANALYSISAT
BAJAJ ALLIANZ LIFE INSURANCE
Submitted fort the partial fulfillment of the Award
Of
Bachelor of Business Administration Degree
From
Ch. Charan Singh university, meerut
(Session 2010-2011)
Submitted To: Submitted By: Mrs. KalpanaFaculty, Management
Mehnaz Chauhan
Roll. No.9183535
BBAVIth
Sem.
Department of Management
INSTITUTE OF INFORMATICS & MANAGEMENT SCIENCES, MEERUT
Anuyogi Puram, Near Medical College, Garh Road, Meerut – 250004
Tel. : 2760396, Fax : (0121) 2765023, e-mail: [email protected]
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CERTIFICATE
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DECLARATION
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EEXXEECCUUTTIIVVEE SSUUMMMMEERRYY
India is the largest democracy in the world having a population more than one billion. It is 5th
largest in the world in terms of purchasing power parity (PPP). India GDP growth rate is over 6
percent per year on average for the last decade and saving rate is around 26 percent of GDP.
With largest number of life insurance policies in force in the world, Insurance happens to be a
mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and
presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per
cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds
available with LIC for investments are 8 per cent of GDP.
Yet, nearly 80 per cent of Indian populations are without life insurance cover, health insurance
and non-life insurance continue to be below international standards. And this part of the
population is also subject to weak social security and pension systems with hardly any old age
income security. This itself is an indicator that growth potential for the insurance sector is
immense.
A well-developed and evolved insurance sector is needed for economic development as it
provides long term funds for infrastructure development and at the same time strengthens the risk
taking ability. It is estimated that over the next ten years India would require investments of the
order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in
infrastructure development to sustain economic growth of the country.
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 implementation, including geological risks, maintenance,
commercial and political risks. Without covering these risks the financial institutions are not
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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.
IRDA regulations require insurance companies to invest not less than 15 percent of their funds in
infrastructure and social sectors. International Insurance companies also invest their funds in
such projects.
Insurance is a federal subject in India. There are two legislations that govern the sector- The
Insurance Act- 1938 and the IRDA Act- 1999.
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ACKNOWLEDGEMENT
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Table of Contents
Certificate
Declaration
Executive Summary
Acknowledgement
Chapter- 1 Introduction
Chapter -2 Company profile
Chapter -3
3.1 Objectives of the project
3.2 Importance and scope of the project
Chapter-4 Literature Review
Chapter-5 Research Methodology
5.1 Research Design
5.2 Data Collection
5.3 Limitations
Chapter-6 Data analysis and interpretation
Chapter-7
7.1 Findings
7.2 Conclusion
7.3 Recommendations & Suggestions
08. Appendices
09. Bibliography
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CCHHAAPPTTEERR 11
IINNTTRROODDUUCCTTIIOONN
In today’s competitive world insurance is the most growing and developing sector with more
and more private companies entering the insurance sector which are making a hub for investors
as insurance sector has the maximum growth as compared to any other fields. This growth
potential attracted me to enter into this sector and BAJAJ ALLIANZ LIFE INSURANCE has
given and opportunity to work and get to know the working of this sector and growth prospects
of agents as a advisors and their earning patterns as well as what are the problems which an
advisor faces and what are the reasons for not receiving the commission on time in addition how
their query gets resolved in BAJAJ ALLIANZ. An Advisor is the main and elementary level in
the field of insurance that comes in contact with both investors and a company or they can be
said as a mediator between insurers and insured and he is the one who brings business and the
only one who helps customers to choose the right plan for his investment. As they add so much
value to the insurance business services and brings benefits to the employers they get in return is
the commission so the main motive behind the study is to see how advisors get differently paid
for different plans sold and how the commission is prepared at head office and its disbursement
process as well as to see what are the problems and queries they raise for not receiving the
commission due to them and to see various other reasons for problems in commission
disbursement.
This study is one of its kind which looks at the insights of the working of the BAJAJ ALLIANZ
in making commissions of its advisors agents and to look at their full process starting from
making commission for advisors to its disbursement and query resolution about the commission.
The scope of such study is to see working of insurance company and how insurance company
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benefit and perks they give their advisors in return of the business and services brought in by
them to the company for their various plans.
To look for details and to collect data for my project I worked in Kanpur Branch Office to gather
full information about the system and working of whole UP region and found out the facts about
various processes adopted by Bajaj Allianz to pay its advisors and the time period taken for this
study are 2 months.
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CCHHAAPPTTEERR 22
PPRROOFFIILLEE OOFF TTHHEE CCOOMMPPAANNYY
COMPANY NAME: BAJAJ ALLIANZ LIFE INSURANCE
COMPANY LIMITED
HEAD OFFICE: GE PLAZA, AIRPORT ROAD
YERAWADA, PUNE
(MAHARASHTRA)
Tel(+91 20)66026777
BRANCH OFFICE: BAJAJ ALLIANZ LIFE INSURANCE
133 University Road
Meerut
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Introduction of the company
Bajaj Allianz Life Insurance Co. is a union between Allianz SE one of the world’s largest life
insurance Co. and Bajaj Auto one of the biggest 2 & 3 wheeler manufactures in the world
Allianz SE is a leading Insurance conglomerate globally and one of the largest asset managers in
the world. Managing asset , worth over a trillion Euros(over Rs.55,00,000 crors ). Allianz SE has
over 115 years of financial experience in over 70 countries.
Bajaj Auto is one of the most trusted manufacturer INDIAN AUTO for ever 55 years. At Bajaj
Allianz customer delight is over guiding principle ensuring world class solution by offering
customized products with transparent benefit, supported by best technology i.s over business
philosophy.
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VViissiioonn && MMiissssiioonn
VViissiioonn
Empowering everyone live their dreams.
MMiissssiioonn
Create unmatched value for everyone through dependable, effective, transparent and profitable
life insurance and pension plans. (jaise jarurat vaisa insurance)
OOuurr GGooaall
Bajaj Allianz Life Insurance would strive hard to achieve the 3 goals mentioned below:
Emerge as transnational Life Insurer of global scale and standard
Create best value for Customers, Shareholders and all Stake holders
Achieve impeccable reputation and credentials through best business practices
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.
Current performance of company
CCOOMMPPEETTIITTOORRSS
Competitors in the country
Private
Reliance Life Insurance Company Limited
Birla Sun-Life Insurance Company Limited
HDFC Standard Life Insurance Co. Limited
ICICI Prudential Life Insurance Co. Limited
ING Vysya Life Insurance Company Limited
Max New York Life Insurance Co. Limited
MetLife Insurance Company Limited
Om Kotak Mahindra Life Insurance Co. Ltd.
SBI Life Insurance Company Limited
TATA AIG Life Insurance Company Limited
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AMP Sanmar Assurance Company Limited
Dabur CGU Life Insurance Co. Pvt. Limited
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MMaarrkkeett SShhaarree OOf f CCoommppaanniieess
SSSSSSSSDASDFSADFDGDSDGDFDGDXFDGDFSHSFASG
SOURCE:- Based on Market Survey (Sample size 100)
MARKET SHARE
LIC
60%
BAJAJ ALLIANZ
23%
OTHERS
17%
LIC BAJAJ ALLIANZ OTHERS
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Trade policies of Bajaj Allianz life insurance
To satisfy its customer’s need
To be best in the market
To provide benefits which others are not providing
To satisfy the work force of the company.
Different plans which company is providing to its customers.
Bajaj Allianz Life Insurance is here with Solutions for Individuals, a series of plans that will help
you make wise investments, protect your f amily, secure your child’s future and even chalk out a
plan for your retirement.
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PPRROODDUUCCTT AANNAALLYYSSIISS AANNDD
AATTTTRRAACCTTIIVVEE FFEEAATTUURREESS OOFF TTHHEE CCOOMMPPAANNYY
Bajaj Allianz life insurance industry is one of the leading brand names in the market as
well as in the insurance sector.
Bajaj Allianz life insurance offers you products that fulfill your savings and protection
needs. The aim of Bajaj Allianz life insurance is to emerge as a transnational Life Insurer
of global scale and standard.
There are many attractive features of the company which can be easily estimated by the
attractive product plans, by different policies, which the company has adopted, by the
salary packages they are offering to the employees and many more things.
1) Products plans-:
Life is unpredictable, but in face of adversity, our responsibilities towards our parents,
children and loved ones need not to be compromised. Insurance planning equips we to
smooth out the uncertainties and adversities that life might send our way, so that the best
that life has to offer, secure in the knowledge that our beloved ones are well provided for.
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Reliance Life Insurance offers a range of innovative, customer-centric products that meet the
needs of customers at every life stage. Its products can be enhanced with up to riders to create a
customized solution for each policyholder.
These Products are divided into two parts basically:
Traditional Plan
ULIP (Unit Linked Insurance Plan)
U U L L I I P P
((UUnniitt lliinnkkeedd IInnssuurraannccee PPllaann))
Unit linked guidelines were notified by IRDA on 21st
December 2005. The main intent of the
guidelines was to ensure that they lead to greater transparency and understanding of these
products among the insured, especially since the investment risk is borne by the policyholder. It
is the endeavor of IRDA to enable the buyer to make the most informed decision possible when
planning for financial security.
ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life insurance policy
which provides a combination of risk cover and investment. The dynamics of the capital market
have a direct bearing on the performance of the ULIPs. In a unit linked policy, the investment
risk is generally borne by the investor.
The allocated (invested) portions of the premiums after deducting for all the charges and
premium for risk cover under all policies in a particular fund as chosen by the policy holders are
pooled together to form a Unit fund. Unit is a component of the Fund in a Unit Linked Policy.
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FFuunnddss oof f UULLIIPP
General Descriptions Nature of Investment Risk Category
Equity Funds
Primarily invested in
company stock with the
general aim of capital
appreciation Medium to high
Income,
Fixed
Interest Rates
And Bond Funds
Invested in corporate
bonds, government
securities and other fixed
income instrument Medium
Cash Funds
Sometimes known as
money market funds-
invested in cash, bank
deposits and money market
instrument Low
Balanced Funds
Combining equityinvestment with fixed
interest instrument High
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CChhaarrggeess,, f f eeeess aanndd ddeedduuccttiioonnss iinn aa UULLIIPP
ULIPs offered by different insurers have varying charge structures. Broadly, the different types
of fees and charges are given below. However, it may be noted that insurers have the right to
revise fees and charges over a period.
Premium Allocation Charges
This is a percentage of the premium appropriated towards charges before allocating the units
under the policy. This charge normally includes initial and renewal expenses apart from
commission expenses.
Mortality Charges
These are charges to provide for the cost of insurance coverage under the plan. Mortality charges
depend on number of factors such as age, amount of coverage, state of health etc
Fund Management Fees
These are fees levied for management of the funds and are deducted before arriving at the Net
Asset Value (NAV).
Policy/ Administration Charges
These are the fees for administration of the plan and levied by cancellation of units. This could
be flat throughout the policy term or vary at a pre-determined rate.
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Surrender Charges
A surrender charge may be deducted for premature partial or full encashment of units wherever
applicable, as mentioned in the policy conditions.
Fund Switching Charge
Generally a limited number of fund switches may be allowed each year without charge, with
subsequent switches, subject to a charge.
Service Tax Deductions
Before allotment of the units the applicable service tax is deducted from the risk portion of the
premium.
Investors may note, that the portion of the premium after deducting for all charges and premium
for risk cover is utilized for purchasing units.
Net Asset Value (NAV)
NAV is the value of each unit of the fund on a given day. The NAV of each fund is displayed on
the website of the respective insurers.
SSWWIITTCCHH
“SWITCH” option provides for shifting the investments in a policy from one fund to another
provided the feature is available in the product. While a specified number of switches are
generally effected free of cost, a fee is charged for switches made beyond the specified number.
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What happens if payment of premiums is discontinued?
a) Discontinuance within three years of commencement – If all the
premiums have not been paid for at least three consecutive years from inception, the insurance
cover shall cease immediately. Insurers may give an opportunity for revival within the period
allowed; if the policy is not revived within that period, surrender value shall be paid at the end of
third policy anniversary or at the end of the period allowed for revival, whichever is later.
b) Discontinuance after three years of commencement –
At the end of the period allowed for revival, the contract shall be terminated by paying the
surrender value. The insurer may offer to continue the insurance cover, if so opted for by the
policy holder, levying appropriate charges until the fund value is not less than one full year’s
premium. When the fund value reaches an amount equivalent to one full year’s premium, the
contract shall be terminated by paying the fund value.
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TThheerree aarree nnuummbbeerr oof f pprroodduuccttss iinn wwhhiicchh BBaa j jaa j j AAlllliiaannzz ddeeaallss.. TThheessee pprroodduuccttss aarree bbaasseedd oonn
ccuussttoommeerrss nneeeedd && rreeqquuiirreemmeennttss.. TThhee tteerrmm && ccoonnddiittiioonnss oof f tthhee pprroodduuccttss aarree vveerryy eeaassyy ssoo tthhaatt
ccuussttoommeerr ccaann uunnddeerrssttaanndd tthhee mmeeaanniinngg oof f iitt vveerryy eeaassiillyy.. TThheessee pprroodduuccttss aarree eennuummeerraatteedd bbeellooww::--
Unit Linked
● Regular Premium
NNeeww UUnniitt GGaaiinn
NNeeww UUnniitt GGaaiinn ++GGoolldd
●Single Premium
NNeeww UUnniitt GGaaiinn ++ SSPP
NNeeww UUnniitt GGaaiinn PPrreemmiieerr SSPP
CCeennttuurryy PPlluuss
Pension Annuity ►
PPeennssiioonn GGuuaarraanntteeee
Retirement
FFuuttuurree IInnccoommee GGeenneerraattoorr
SSwwaarrnn VViisshhrraannttii
Traditional Endowment
LLiif f ee TTiimmee CCaarree
SSuuppeerr SSaavveerr
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Money Back
CCaasshh GGaaiinn
Term Plan
NNeeww RRiisskk CCaarree
TTeerrmm CCaarree
Women Care
WWoorrkkiinngg WWoommeenn
HHoouussee WWiivveess
Health
HHeeaalltthh CCaarree
CCaarree FFiirrsstt
FFaammiillyy CCaarree FFiirrsstt
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Children Plan
CChhiilldd GGaaiinn
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BBaa j jaa j j AAlllliiaannzz EEnnddoowwmmeenntt PPllaann
It takes a lot for a dream to become a reality, and money is surely an important part of it.
Reliance Endowment Plan gives you just the financial independence to realize your dreams in
the future. It lets you decide how much you would like to set as your Sum Assured based on your
current financial position and your expected future expenses.
Key Features-
On maturity receive Sum Assured plus bonus
Wealth creation through bonus additions
More value for investor’s money by way of high Sum Assured rebate
Increase investor’s insurance protection by adding term cover
Choose to pay regular or single premium
Choose to add the benefit of two Riders – Critical Illness Rider and Accidental
Death Benefit and Total and Permanent Disablement Rider
Choose to avail of a Policy Loan after three full years of premium payment
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SSWWOOTT AANNAALLYYSSIISS
SSTTRREENNGGTTHH OOFF TTHHEE CCOOMMPPAANNYY
11.. TTeecchhnnoollooggiiccaall
22.. EEccoonnoommiiccaall
WWEEAAKKNNEESSSS OOFF TTHHEE CCOOMMPPAANNYY
11.. DDiidd nnoott ccoovveerr rruurraall aarreeaass..
OOPPPPOORRTTUUNNIITTIIEESS OOFF TTHHEE CCOOMMPPAANNYY
11.. TThheerree aarree ooppppoorrttuunniittiieess ttoo llaauunncchh vvaarriioouuss ppoolliicciieess wwhhiicchh aarree rreelleevvaanntt ttoo rruurraall aass
wweellll aass uurrbbaann aarreeaass aallll oovveerr IInnddiiaa..
22.. CCoommppaannyy ccaann eeaarrnn mmoorree pprroof f iitt f f rroomm vvaarriioouuss ppoolliicciieess..
TTHHRREEAATTSS OOFF TTHHEE CCOOMMPPAANNYY
11.. EExxiissttiinngg ccoommppeettiittoorrss..
22.. NNeeww ccoommiinngg eennttrraaiinnttss..
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CHAPTER 3
33..11 OOBBJJEECCTTIIVVEESS OOFF TTHHEE SSTTUUDDYY
1. To Analysis the insurance products of Bajaj Allianz
2. To Analysis the products that they meet with customers
requirements or not.
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CHAPTER 4
LITERATURE REVIEW
Life insurance (Life Assurance in British English) is a type of insurance. As in all insurance, the
insured transfers a risk to the insurer. The insured pays a premium and receives a policy in
exchange. The risk assumed by the insurer is the risk of death of the insured.
How life insurance works
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. For
example, if John Smith buys a policy on his own life, he is both the owner and the insured. But if
Mary Smith, his wife, buys a policy on John's life, she is the owner and he is the insured. The
owner of the policy is called the grantee (he or she will be the person who will pay for the
policy). Another important person involved is the beneficiary. The beneficiary is the person or
persons who will receive the policy proceeds upon the death of the insured. The beneficiary is
not a party to the policy, but is designated by the owner, who may change the beneficiary unless
the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that
beneficiary must agree to changes in beneficiary, policy assignment, or borrowing of cash value.
The policy, like all insurance policies, is a legal contract specifying the terms and conditions of
the risk assumed. Special provisions apply, including a suicide clause wherein the policy
becomes null if the insured commits suicide within a specified time for the policy date (usually
two years). Any misrepresentation by the owner or insured on the application is also grounds for
nullification. Most contracts have a contestability period, also usually a two-year period; if the
insured dies within this period, the insurer has a legal right to contest the claim and request
additional information before deciding to pay or deny the claim.
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The face amount of the policy is normally the amount paid when the policy matures, although
policies can provide for greater or lesser amounts. The policy matures when the insured dies or
reaches a specified age. The most common reason to buy a life insurance policy is to protect the
financial interests of the owner of the policy in the event of the insured's demise. The insurance
proceeds would pay for funeral and other death costs or be invested to provide income replacing
the deceased's wages. Other reasons include estate planning and retirement. The owner (if not the
insured) must have an insurable interest in the insured, i.e. a legitimate reason for insuring
another person’s life. The insurer (the life insurance company) calculates the policy prices with
an intent to recover claims to be paid and administrative costs, and to make a profit. The cost of
insurance is determined using mortality tables calculated by actuaries. Actuaries are
professionals who use actuarial science which is based in mathematics (primarily probability and
statistics). Mortality tables are statistically based tables showing average life expectancies. The
three main variables in a mortality table are age, gender, and use of tobacco. The mortality tables
provide a baseline for the cost of insurance. In practice, these mortality tables are used in
conjunction with the health and family history of the individual applying for a policy in order to
determine premiums and insurability. The current mortality table being used by life insurance
companies in the United States and their regulators was calculated during the 1980s. There is
currently a measure being pushed to update the mortality tables by 2008.
The current mortality table assumes that roughly 2 in 1,000 people aged 25 will die during the
term of coverage. This number rises roughly quadratic ally to about 25 in 1,000 people for those
aged 65. So in a group of one thousand 25 year old males with a $100,000 policy, a life
insurance company would have to, at the minimum, collect $200 a year from each of the
thousand people to cover the expected claims. The insurance company receives the premiums
from the policy owner and invests them to create a pool of money from which to pay claims, and
finance the insurance company's operations. Contrary to popular belief, the majority of the
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money that insurance companies make comes directly from premiums paid, as money gained
through investment of premiums will never, in even the most ideal market conditions, vest
enough money per year to pay out claims. Rates charged for life insurance increase with the
insured's age because, statistically, a people are more likely to die as they get older.
Since adverse selection can have a negative impact on the financial results of the insurer, the
insurer investigates each proposed insured (unless the policy is below a company-established
minimum amount) beginning with the application, which becomes part of the policy. Group
Insurance policies are an exception. This investigation and resulting evaluation of the risk is
called underwriting. Health and lifestyle questions are asked, and the answers are dutifully
recorded. Certain responses by the insured will be given further investigation. Life insurance
companies in the United States support The Medical Information Bureau, which is a
clearinghouse of medical information on all persons who have ever applied for life insurance. As
part of the application, the insurer receives permission to obtain information from the proposed
insured's physicians. Life insurance companies are never required by law to underwrite or to
provide coverage on anyone. They alone determine insurability, and some people, for their own
health or lifestyle reasons, are uninsurable. The policy can be declined (turned down) or rated.
Rating means increasing the premiums to provide for additional risks relative to that particular
insured.
Many companies use four general health categories for those evaluated for a life insurance
policy. These categories are Preferred Best, Preferred, Standard, and Tobacco. Preferred Best
means that the proposed insured has no adverse medical history, is not under medication for any
condition, and his family (immediate and extended) have no history of early cancer, diabetes, or
other conditions. Preferred is like Preferred Best, but it allows that the proposed insured is
currently under medication for the condition and may have some family history. Most people are
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in the Standard category. Profession, travel, and lifestyle also factor into not only which category
the proposed insured falls, but also whether the proposed insured will be denied a policy. For
example, a person who would otherwise be in the Preferred Best category will be denied a policy
if he or she travels to a high risk country.
Upon the death of the insured, the insurer will require acceptable proof of death before paying
the claim. The normal minimum proof is a death certificate and the insurer's claim form
completed, signed, and often notarized. If the insured's death was suspicious and the policy
amount warrants it, the insurer may investigate the circumstances surrounding the death, before
deciding whether there is a legal obligation to pay the claim. Proceeds from the policy may be
paid in a lump sum or as an annuity paid over time in regular recurring payments for either for
the life of a specified person or a specified time period.
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BBRRIIEEFF HHIISSTTOORRYY OOFF TTHHEE IINNSSUURRAANNCCEE SSEECCTTOORR
What is Insurance?
Insurance is a contract between two parties whereby one party called insurer undertakes in
exchange for a fixed sum called premiums, to pay the other party happening of a certain event.
Insurance is a protection against a financial loss arising on the happening of an unexpected event.
Insurance Companies collect premium to provide for this protection. A loss is paid out of this
premium collected from the insuring public. The insurance Company act as a trustee to the
amount collected through premium.
Insurance is generally classified in three main categories, (i) Life Insurance, (ii) Health insurance
and (iii) General Insurance
To get insurance an individual or an organisation can approach to an insurance Company
directly, through Insurance Agent of the concerned company or through Intermediaries.
Benefits of Insurance
1. Safeguards oneself and one's family for future requirements
2. Peace of mind-in case of financial loss.
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3. Encourage saving.
4. Tax rebate.
5. Protection from the claim made by creditors.
6. Security against a personal loan, housing loan or other types of loan.
7. Provide a protection cover to industries, agriculture, women and child
Reasons for buying insurance
Insurance Buys Time and Money
People like to refer to insurance as time insurance, the reason being that insurance proceeds are
paid to the insured's beneficiaries in case of death or on the maturity of the policy. The money
proffered by insurance helps buy time to adjust to the change of circumstances. Insurance
provides large amounts of cash that will keep the lifestyle for the survivors the way it was before
the insured's death.
Insurance Offers Peace of Mind
For the person who buys an insurance policy, it offers absolute and complete peace of mind. He
or she knows that the decision made by him will provide sound benefits in the future, whether or
not the individual may live to see it. The life insurance policy will subsequently prove this in the
future if and when funds are needed. This is the guarantee of the insurance contract.
Multiple Applications
The future is uncertain for each and every one. No one knows how long he or she will live. The
investment benefit is paid to the insured's beneficiaries after his death or it can be used during the
life as well. Life insurance policy owners can turn to the cash value of the policy in case of a
financial emergency when all avenues are either blocked or denied. They know that they can
avail of loans based on their insurance policies. Insurance policy owners can use the cash value
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of their policies to meet their long-term financial needs as well. They may have purposefully
invested in insurance to use the cash in the policy for their children's future marriage expenses or
higher education fees.
Enduring Elasticity
Since life insurance is flexible enough to serve several needs, the insured can keep several long-
term goals in mind once he or she invests in the insurance plan. The cash value of the policy can
be allocated towards augmenting the monthly income during the retirement years. Leisure years
should be turned into pleasure years. Permanent life insurance is designed on the concepts of
long-term flexibility.
Financial Security
The insurance policy offers contractual guarantees to people looking for peace of mind when
they buy life insurance. Life insurance offers complete financial security. The purchase of life
insurance demonstrates concern for a family's future financial well being.
Regard for Family
The purchase of life insurance clearly displays care and concern for the people the policy owner
loves.
Insurance is Safer
No financial institution can do what life insurance does. No industry can back its products with
reserves and surplus as sound as those of the insurance industry. The proof of strength and safety
that insurance companies have ensured even under the most adverse of conditions is a matter of
pride for the entire insurance industry. For generation after generation, life insurance has been
acclaimed as the very benchmark of security against which the other industries are measured.
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History
The history of life insurance in India dates back to 1818 when it was conceived as a means to
provide for English Widows. Interestingly in those days a higher premium was charged for
Indian lives than the non-Indian lives as Indian lives were considered more riskier for coverage.
The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company
to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company
was established in 1880.
Insurance regulation formally began in India with the passing of the Life Insurance Companies
Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied
insurance business in India. By 1938 there were 176 insurance companies. The first
comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict
State Control over insurance business. The insurance business grew at a faster pace after
independence. Indian companies strengthened their hold on this business but despite the growth
that was witnessed, insurance remained an urban phenomenon.
The Government of India in 1956, brought together over 240 private life insurers and provident
societies under one nationalised monopoly corporation and LIC was born. Nationalisation was
justified on the grounds that it would create much needed funds for rapid industrialization. This
was in conformity with the Government's chosen path of State lead planning and development.
The first general insurance company- Triton Insurance Company Limited, was established in
1850. Till the end of nineteenth century insurance business was almost entirely in the hands of
overseas companies. . In 1957 the General Insurance Council a wing of Insurance Association of
India formed a code of conduct. In 1961 an insurance act was passed to form General Insurance
Company Ltd. which was amended in 1968. General Insurance business was nationalised with
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effect from 1.1.73 by the General Insurance Business Act. from 1973, The General Insurance
Company (GIC) as a holding company divided in four subsidiaries as: National Insurance
Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd.
and The United Assurance Company Ltd.
Insurance sector reforms
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N.
Malhotra, was formed to evaluate the Indian insurance industry and recommend its future
direction. The Malhotra committee was set up with the objective of complementing the reforms
initiated in the financial sector.
The reforms were aimed at “creating a more efficient and competitive financial system suitable
for the requirements of the economy keeping in mind the structural changes currently underway
and recognising that insurance is an important part of the overall financial system where it was
necessary to address the need for similar reforms…”
In 1994, the committee submitted the report and some of the key recommendations included:
i) Structure
Government stake in the insurance Companies to be brought down to 50%
Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations
All the insurance companies should be given greater freedom to operate
ii) Competition
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter
the industry
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No Company should deal in both Life and General Insurance through a single entity
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies
Postal Life Insurance should be allowed to operate in the rural market
Only one State Level Life Insurance Company should be allowed to operate in each state
iii) Regulatory Body
The Insurance Act should be changed
An Insurance Regulatory body should be set up
Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent.
iv) Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced from
75% to 50%
GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time)
v) Customer Service
LIC should pay interest on delays in payments beyond 30 days
Insurance companies must be encouraged to set up unit linked pension plans
Computerisation of operations and updating of technology to be carried out in the
insurance industry The committee emphasised that in order to improve the customer
services and increase the coverage of the insurance industry should be opened up to
competition. But at the same time, the committee felt the need to exercise caution as any
failure on the part of new players could ruin the public confidence in the industry. Hence,
it was decided to allow competition in a limited way by stipulating the minimum capital
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requirement of Rs.100 crores. The committee felt the need to provide greater autonomy
to insurance companies in order to improve their performance and enable them to act as
independent companies with economic motives. For this purpose, it had proposed setting
up an independent regulatory body.
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The Insurance Regulatory and Development Authority
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament
in December 1999. The IRDA since its incorporation as a statutory body inApril 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private sector
insurance companies.The other decisions taken simultaneously to provide the supporting systems
to the insurance sector and in particular the life insurance companies was the launch of the
IRDA’s online service for issue and renewal of licenses to agents.The approval of institutions for
imparting training to agents has also ensured that the insurance companies would have a trained
workforce of insurance agents in place to sell their products, which are expected to be
introduced by early next year.Since being set up as an independent statutory body the IRDA has
put in a framework of globally compatible regulations. In the private sector 12 life insurance and
6 general insurance companies have been registered.
Present Scenario
The Government of India liberalised the insurance sector in March 2000 with the passage of the
Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for
private players and allowing foreign players to enter the market with some limits on direct
foreign ownership. Under the current guidelines, there is a 26 percent equity cap for foreign
partners in an insurance company. There is a proposal to increase this limit to 49 percent.
Premium rates of most general insurance policies come under the purview of the government
appointed Tariff Advisory Commitee.
The opening up of the sector is likely to lead to greater spread and deepening of insurance in
India and this may also include restructuring and revitalizing of the public sector companies. A
host of private Insurance companies operating in both life and non-life segments have started
selling their insurance policies since 2001.
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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 re-insurer. In July 2002, Parliamant passed
a bill, delinking the four subsidiaries from GIC.
Presently there are 12 general insurance companies with 4 public sector companies and 8 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.
Insurance costs constitute roughly around 1.2- 2 percent of the total project costs. Under the
existing norms, insurance premium payments are treated as part of the fixed costs. Consequently
they are treated as pass-through costs for tariff calculations.
For Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets the premium rates,
for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the
committee's guidelines; and projects above Rs 15 billion are subjected to re-insurance pricing. It
is the last segment that has a number of additional products and competitive pricing.
Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead,
shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the
premium. The other companies share the remaining risk and premium. The policies are renewed
usually on an annual basis through the invitation of bids.
Of late, with IPP projects fizzling out, the insurance companies are turning once again to old
hands such as NTPC, NHPC and BSES for business.
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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, allows primary
insurers to accept risks beyond their capacity, settle accumulated losses arising from catastrophic
events and still maintain their financial stability.
While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer.
Currently, all insurance companies have to give 20 per cent of their reinsurance business 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 as Swissre (Switzerland),
Munichre (Germany), and Royale (UK). Reinsurance premiums have seen an exorbitant increase
in recent years, following the rise in threat perceptions globally.
Life Insurance Market
The Life Insurance market in India is an underdeveloped market that was only tapped by the
state owned LIC till the entry of private insurers. The penetration of life insurance products was
19 percent of the total 400 million of the 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 or transparency in the products. With the entry of the private insurers
the rules of the game have changed.
The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the
market in terms of premium income. The new business premiums of the 12 private players has
tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium
business has fallen.
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Innovative products, smart marketing and aggressive distribution. That's the triple whammy
combination that has enabled fledgling private insurance companies to sign up Indian customers
faster than 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 of the private insurers shows in other ways. They are coining money in
new niches that they have introduced. The state owned companies still dominate segments like
endowments and money back policies. But in the annuity or pension products business, the
private insurers have already wrested over 33 percent of the market. And in the popular unit-
linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers.
The private insurers also seem to be scoring big in other ways- they are persuading people to
take out bigger policies. For instance, the avaerage size of a life insurance policy before
privatisation was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers
are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh-
way bigger than the industry average.The business of life insurance in India in its existing form
started in India in the year 1818 with the establishment of the Oriental Life Insurance Company
in Calcutta.
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
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1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British.
MMAAJJOORR PPOOLLIICCYY CCHHAANNGGEE
Insurance sector has been opened up for competition from Indian private insurance companies
with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act).
As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority
(IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy
and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999
paved the way for the entry of private players into the insurance market, which was hitherto the
exclusive privilege of public sector insurance companies/ corporations. Under the new
dispensation, Indian insurance companies in private sector were permitted to operate in India
with the following conditions:
Company is formed and registered under the Companies Act, 1956.
The aggregate holdings of equity shares by a foreign company, either by itself or through
its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of
such Indian insurance company;
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The company's sole purpose is to carry on life insurance business or general insurance
business or reinsurance business.
The minimum paid up equity capital for life or general insurance business is Rs.100
crores.
The minimum paid up equity capital for carrying on reinsurance business has been
prescribed as Rs.200 crores.
The Authority has notified 27 Regulations on various issues, which include Registration of
Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers
to Rural and Social sector, Investment and Accounting Procedure, Protection of policyholders'
interest etc. Applications were invited by the Authority with effect from 15 August 2000 for
issue of the Certificate of Registration to both life and non-life insurers. The Authority has its
Head Quarter at Hyderabad.
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The Insurance Sector In India
IInnddiiaa aatt aa ggllaannccee
►Population: 1 Billion
►Economy: 5th largest in the world in terms of Purchasing Power
Parity.
►GDP growth Rate: Over 6% per year on an average for the last decade.
►Savings Rate: Around 26% of GDP
►Estimated middle class population: 300 Million
►Insured population: 70 million only
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PPRRIIVVAATTEE OORR PPUUBBLLIICC – –
II AAmm TThheerree EEvveerryywwhheerree
Insurance in India has been divided into two sectors-:
PRIVATE
PUBLIC
COMPANIES PROVIDING LIFE INSURANCE BENEFITS
PUBLIC
Life Insurance Corporation of India
PRIVATE
Bajaj Allianz Life Insurance Company Limited
Birla Sun-Life Insurance Company Limited
HDFC Standard Life Insurance Co. Limited
ICICI Prudential Life Insurance Co. Limited
ING Vysya Life Insurance Company Limited
Max New York Life Insurance Co. Limited
MetLife Insurance Company Limited
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Om Kotak Mahindra Life Insurance Co. Ltd.
SBI Life Insurance Company Limited
TATA AIG Life Insurance Company Limited
AMP Sanmar Assurance Company Limited
Dabur CGU Life Insurance Co. Pvt. Limited
Reliance Life Insurance Company Limited
GENERAL INSURERS
Public Sector
National Insurance Company Limited
New India Assurance Company Limited
Oriental Insurance Company Limited
United India Insurance Company Limited
Private Sector
Bajaj Allianz General Insurance Co. Limited
ICICI Lombard General Insurance Co. Ltd.
IFFCO-Tokio General Insurance Co. Ltd.
Reliance General Insurance Co. Limited
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Royal Sundaram Alliance Insurance Co. Ltd.
TATA AIG General Insurance Co. Limited
Cholamandalam General Insurance Co. Ltd.
Export Credit Guarantee Corporation
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LLiif f ee iinnssuurraannccee
Life Insurance is a kind of agreement made among the owner of the policy and the insurer, which
says that the issuer would pay a sealed amount of money after the death of the policyholder. In
return, the policy payer would have to pay a specified amount of money, known as premium
regularly. The Life Insurance covers both natural death and accidental death.
There are many kinds of Life Insurance Policies in the Market. Some of them are:
Temporary Life Insurance: Temporary Life Insurance Policy offers Life Insurance coverage
for a limited period of time. Temporary Life Insurance premium buys protection for nothing else
but death.
Permanent Life Insurance: Permanent Life Insurance is a kind of insurance that stays valid
until the policy gains maturity or the policy holder fails to pay the premium within due date. The
permanent Life Insurance can be of three types: Whole Life, Universal Life and Endowment.
Accidental Death Life Insurance: Accidental Death Life Insurance is a limited policy, which is
decorated to cover the Life Insurance policy holder at the time of his death due to some
accidents. This also offers protection to those who loose his or her body parts by an accident.
For today’s fast paced life it is essential to have a Life Insurance Policy for everyone.
To know more about Life Insurance one should know the following topics:
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Life Insurance Policies
Life Insurance Policies has an important role in ones life. These policies cover losses that
arise from the loss of one's life. Find various life insurance policies.
Life Insurance Companies
Life Insurance Companies renders various life insurance products and ultimately protects
from the risk associated to life.
Life Insurance Rates
Life Insurance Rates can be broadly categorized into Proffered Category, Preferred Plus
Category and Standard Category. Get detailed on the life insurance categories.
Insurance premium
Insurance Premium is the payment made by the policyholder to the insurance company on a
regular time span. This payment has to be made by the insured person until the maturity of the
insurance. Insurance Premium may vary from company to company along with the coverage
limit. Thus, while selecting an insurance policy one should be very careful and should compare
all the possible options through online website services. The customers are advised to compare
the quotes offered by the different insurance companies and select from the wide variety of
options available to them.
Insurance brokers play an important role in finding the appropriate insurance for the customer by
assessing and titrating the different insurances available in the market. The brokers or agents
calculate the premiums on the basis of the requirement particulars of the customer. The lowest
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quote offered by the insurance company is considered to be the most suitable one for the
customer.
The above mentioned work of insurance premium calculation now-a-days are also done by the
specialized websites doing the searching, comparing and calculating the insurance premium on
behalf of the customers.
The insurance premium generally increases with the increase in the risk perception of the
company about that person.
In case of medical insurance or med claim, the cost of premium is more for the smokers
than the non-smokers because the insurance company considers that the smoker
possesses a greater risk of health hazard than the non-smoker. Hence, the cost of
premium is directly proportional to the risk associated.
In case of the car insurance, the cost of premium is generally higher than an older one
because the insurance company considers that the younger driver is more prone to
accident than the latter.
In case of Life Insurance, the insurance company considers the aged person to be more
prone to death. Hence, it charges a higher premium than from him. However, when it
comes to a younger person seeking life insurance, then the premium charged from him is
less. The reason behind it is that in normal conditions a younger person stands more
chance in living a longer life span.
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IINNSSUURRAANNCCEE CCOOMMPPAANNIIEESS
Insurance Company is a financial company or institution, which does the work of selling
insurance policies of all types in order to hedge the risk of contingent future losses or damages or
hazards.
These possible risks are not certain to take place in the future because future is uncertain.
However, a person cannot take a wait-and-see approach because it would subject them to sheer
risk. If the casualty, damage, or loss does happen then the person without any insurance would
not get any compensation from the insurance company.
If a person buys an insurance against any future risk then in case of actual causation the
insurance company would compensate for the resulting financial loss.
Issuance of insurance by an insurance company is not a free affair. Rather the policyholder of
insurance is needed to pay a regular payment amount to the insurance company until its maturity.
This amount is repaid either in entirety or in part to the insurance holder in case of occurrence of
the hazard or casualty or loss. However, it has been observed that much insurance are not
claimed due to non-occurrence of the risk and thus the premiums paid by the policy holders
become the profit of the insurance company.
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Insurance companies offer insurances on the following categories:-
Life Insurance
Medical Insurance
Non-life or General Insurance
Non life or general insurance issuing companies can again be
classified under :-
Standard Insurance Company
This type of insurance companies generally issue insurances against commercial and
residential related risks, automobile related risks and the risks associated with businesses.
These are mainly standardized policies with minimum scope of customization in
accordance with personal needs of the customers. The characteristic features of this type
of companies include lower rate of premium and direct sales to the customer approach.
Excess Insurance Company
This type of insurance company is involved in insuring the risks, which are out of the
fold of the Standard Insurance companies. These insurances are given to those persons
who are not licensed insurers of the concerned state.
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CHAPTER 5
RESEARCH METHODOLOGY
1. For Financial Advisor acting the objective of the study
2. Designing the methods of data collection
3. Selecting the sample plan
4. Collecting the data
5. Processing and analyzing the data
6. Reporting the findings
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Process of research methodology
Sample Design
Data Collection
Data analysis
Reporting of Findings
Research Design
Objective of Study
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5.1 RESEARCH DESIGN:
Research Design specifies the methods and procedures for conducting a particular study. A
Research Design is the arrangement of conditions for collection and analysis of the data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
Research Design is broadly classified into three types as
Exploratory Research Design
Descriptive Research Design
Hypothesis testing Research Design
On the basis of the objective of study, the studies which are concerned with describing the
character tics of a particular individual, or of a group of individual under study comes under
Descriptive Research Design.
:
In this research design the objective of study is clearly defined and has accurate
method of measurement with a clear cut definition of population which is to be studied .
SAMPLING DESIGN:
A Sample Design is a definite plan for obtaining a sample from a given population. It refers to
the technique and the procedure adopted in selecting items for the sample. The main constitution
of the sampling design is as below-
1. Sampling Unit
2. Sample Size
3. Sampling Procedure
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SAMPLING UNIT:
A sampling framework i.e. developed for the target population that will be sampled i.e. who is to
be surveyed.
Customers
SAMPLE SIZE:
It is the substantial portion of the target population that are sampled to achieve reliable results.
Sample size = 110 respondents (Customer) at Meerut
SAMPLING PROCEDURE
The procedure to choose the respondents to obtain a representative sample, a non-probability
sampling technique is applied for the target – market.
Non-Probability Sampling
It is a purposive sampling which deliberately chooses the particular units of the universe for
constituting a sample on the basis that the small mass that they so select out of a huge one will be
typical or representative of the whole.
Judgment sampling:
To select population members who are good prospects for accurate information?
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5.2 DATA COLLECTION METHOD:
Usually company representative gave the data of those persons who are the big fish like
CA, CFS, ICWA, MBA, DOCTOR, GM etc. Besides all these I have used my own
database which consisted of Professor, high school and college teacher, agents in reputed
company like Peerless, Sahara,, New India Assurance Co. etc, Serviceman, retired person
from reputed organization etc.
After having all these I used to analyze the profile of those person and go forward to
meet them individual. In my case what I had proceed on
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55..33 LLIIMMIITTAATTIIOONNSS
While learning any thing new there are some limitations and this project is no exception.
Limitations while making projects
1. sometime problems were faced while collecting data.
2. as it was the first time experience of learning while working so it takes time to adjust.
Limitation of time
Time availability was one of the biggest limitations face due to shortage of time we had to
limit the work in its present form.
Other limitations
1. Since I did not have any previous experience so it may have led to discrepancies in the
report.
2. As the environment was very new to me so it takes some time to become friendly
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CHAPTER 6
DAATA ANALYSIS & INTERPRETATION
Are you aware of BAJAJ ALLIANZ and its products?
Yes 20
No 80
Ans. This graph represents that 20% people are aware about Bajaj Allianz whereas 80% people
are not aware of it.
20
80
010203040506070
8090
YES NO
AWARENESS ABOUT BAJAJ ALLIANJ
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2. Are you availing any insurance facility from any other insurance co.?
Yes [ ] No [ ]
Yes 83
No 17
Ans. This graph represents that 83% of people are availing insurance services whereas 17% of
people are not availing insurance services.
83
17
010
20
30
40
50
60
70
80
90
YES NO
AVAILING INSURANCE SERVICES
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3. What is the best part in others?
Policies 67
Services 23
Maturity period 2
Installment 8
Ans. According to this graph 67% people consider policy, 23% consider service, 2%consider
maturity and 8% consider instalment the best.
POLICY, 67
SERVICE , 23
MATURITY, 2
INSTALLMENT
, 8
0
10
20
30
40
5060
70
80
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4. What you prefer while invest in insurance?
Tax saving 45
Investment 20
Risk covers 30
Others 5
Ans. This graph represents that 43% of people prefer tax saving, 23% people prefer investment,
30% people prefer risk cover and 4%people prefer others while they invest in insurance.
TAX SAVING,
43
INVESTMENT,23
RISK COVER ,
30
OTHERS, 4
0
5
10
15
20
25
30
35
40
45
50
TAX SAVING INVESTMENT RISK COVER OTHERS
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5. Which product do you like most in Bajaj Allianz?
New unit gain 28
New unit gain gold 12
Century Plus 60
Ans. This graph shows that 28% people like new unit gain, 12% people like nug+gold and
60%people like century plus in Bajaj Allianz.
NEW UNIT
GAIN, 28
NUG+ GOLD,
12
CENTURY
PLUS, 60
0
10
20
30
40
50
60
70
NEW UNIT GAIN NUG+ GOLD CENTURY PLUS
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6. Does the insurance really meet with your requirements?
Yes 85
No 13
If no, why ……………………………
Ans. This graph shows that insurance really met the reruirements of 87% but it does not met the
requirements of 13%.
87
13
0
10
20
30
40
50
60
70
80
90
100
YES NO
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7. Which one is favorite investment area for you in long term?
Fix deposit 35
Insurance 25
Real Estate 32
Others 8
Ans. According to this graph 35% people like fixed deposit, 25% like insurance, 32%like real
estate and 8% like ohers as favourite invexstment area for long term.
FIXED
DEPOSIT , 35
INSURANCE ,
25
REAL ESTATE,
32
OTHERAS, 8
0
5
10
15
2025
30
35
40
FIXED
DEPOSIT
INSURANCE REAL ESTATE OTHERAS
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8. Where do you see Bajaj Allianz in insurance sector?
First 0 fourth 18
Second 23 Fifth 12
Third 47
Ans. This graph shows that 0% people ranked it first, 23% ranked it second, 47% ranked
it third, 18% ranked it fourth and 12% ranked it fifth according to position.
%age
0
2 3
4 7
1 8 1
2
0
10
20
30
40
50
first second third fourth fifth
%age
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C C H H A A P PT T E E R R 7 7
7 7 . .11 F F I I N N D D I I N N GGSS
o The project, which has been assigned, can be boon for any trainee who wants to
pursue his/her carrier as trainer.
o The training methods, which the department was using, were unique and were
very effective.
o The target which has been assigned to each trainee was not seems to be a burden
on them as for that they were trained by the trainers who had established a parent
child relationship rather than a trainer and trainee relationship.
o Regular evaluation of the performance always helps to make the learning more
effective.
o Motivation is the key to success for any trainer as when he/she motivates his/her
trainee then only the trainee will be able to learn more and more.
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77..22 CCoonncclluussiioonn
I have received following while working as a summer trainee in Bajaj Allianz life insurance in
accordance with the objective.
Insurance sector is a booming sector in today’s scenario. It is adding a major part to our Indian
economy. So one can think himself lucky if he/she get a chance while working within this sector.
As I got the golden opportunity working with the training department, I got to learn what
actually training means in the corporate world. I worked on the project SM mentoring. In this, I
learned how to train, mentor and enhance the skills and talents of the trainees.
The conclusion what I draw is that training is an important tool for learning and training
department is the only, by which we can get it. Training department is like the blood in the veins
of the company, which helps to develop the work force working there to attain a maintainable
position in the society.
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77..33 RREECCOOMMMMEENNDDAATTIIOONN && SSUUGGGGEESSTTIIOONN
-The training methods used should not only sound good but also they should have practicality in
them.
-The trainers should sometime adopt paternalistic approach
-The projects should be easy to understand and apply.
-The training procedures should be made keeping in mind that it should be suitable for all as all
come from different educational background.
-if the company is using an online training process for training the advisors then this should be
kept in the mind that whether all the facilities needed for that are available in the area or not.
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APPENDICES
QUESTIONNAIRE
1. PERSONAL PROFILE
NAME:
AGE:
PROFESSION:
ANNUAL INCOME: ……….. MARITAL STATUS: ………………...................
CONTACT ON; …………… ADDRESS: …………………………………………
2. Are you aware of BAJAJ ALLIANZ and its products?
Yes [ ] No [ ]
3. Are you availing any insurance facility from any other insurance co.?
Yes [ ] No [ ]
If Yes, in which . . . . . . . . . . . .
4. What is the best part in others?
Policies [ ] Services [ ] Maturity period [ ] Installment [ ]
5. What you prefer while invest in insurance?
Tax saving [ ] Investment [ ] Risk covers [ ] Others [ ]
6. Do you want to earn more money from insurance?
Yes [ ] No [ ]
7. Which product do you like most in Bajaj Allianz?
New unit gain [ ] New unit gain gold [ ] Century Plus [ ]
8. What changes you are looking for in insurance policies?
………………………………………………………………………………………………………
……………………………………………………………………………………………………..
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……………………………………………………………………………………………… .
9. Does the insurance really meet with your requirements?
Yes [ ] No [ ]
If no, why ……………………………
10. Which one is favorite investment area for you in long term?
Fix deposit [ ] Insurance [ ] Real Estate [ ] Others [ ]
11. Where do you see Bajaj Allianz in insurance sector?
First [ ] Second [ ] Third [ ] fourth [ ] Fifth [ ] Others [ ]
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BB I I BBLL I I OOG G RR A AP P H H Y Y
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Philip Kotler Marketing Management Edition- IVth 2004 Pg-187
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