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SIP Report /Sterling Institute of Management studies, Navi Mumbai 1
The opening up of Insurance sector was a part of the on-going liberalization in the financial
sector of India. The changing face of the financial sector and the entry of several companies in
the field of life and non-life Insurance segment are one of the key results of these
liberalization efforts. Insurance business by way of generating premium income adds
significantly to be the GDP. Over the past three years, more than thirty companies have
expressed interest in doing business in India. The IRDA (Insurance Regulatory Development
Authority) is the regulatory authority, which looks over all related aspects of the insurance
business. The provisions of the IRDA bill acknowledge many issues related to insurance
sector. The IRDA bill provides guidance for three levels of players - Insurance Company,
Insurance brokers and Insurance agent. Life Insurance sector is one of the key areas where
enormous business potential exists. In India currently the life insurance premium as a
percentage of GDP is 1.3 % against, 5.2 per cent in the US.
Meaning of insurance
Insurance can be defined as a legal contract between two parties whereby one party calledinsurer undertakes to pay a fixed amount of money on the happening of a particular event,
which may be certain or uncertain. The other party called insured pays in exchange a fixed
sum known as premium.
Insurance is desired to safeguard oneself and ones family against possible losses on account
of risks and perils. It provides financial compensation for the losses suffered due to the
happening of any unforeseen events.
INDUSTRY OVERVIEW
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History of life insurance
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, the entire 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 that 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 bottom referring to vessel bottoms and respondent
referring to cargo. These provided the underpinning for marine insurance contracts. Such
contracts contained three elements: a loan on the vessel, cargo, or freight; an interest rate; and
a surcharge to cover the possibility of loss. In effect, ship owners were the insured and lenders
were the underwriters.
Life insurance came about a little later in ancient Rome, where burial club 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. The security
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 again reemerge Insurance in India can be traced back to the Vedas. Forinstance,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 Buddhist period to help families build houses, and
to protect widows and children
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 3
Insurance companies in INDIA
Name of the company Nature of Holding
Allianz Bajaj Life Insurance Co Private
Aviva Life Insurance Private
Birla Sun Life Insurance Co Private
HDFC Standard Life Insurance Co Private
ICICI Prudential Life Insurance Co Private
ING Vysya Life Insurance Co. Private
Life Insurance Corporation of India Public
Max New York Life Insurance Co. Private
MetLife Insurance Co. Private
Om Kotak Mahindra Life Insurance Private
Reliance insurance Private
SBI Life Insurance Co Private
TATA- AIG Life Insurance Company Private
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NAME OF THE PLAYERAND MARKET SHARE (%)
Graph no.1(market share)
Name of the Player Market share (%)
LIFE INSURANCE CORPORATION OF INDIA 82.3
ICICI PRUDENTIAL 5.63
BIRLA SUN LIFE 2.56
BAJAJ ALLIANZ 2.03
SBI LIFE INSURANCE 1.80
HDFC STANDARD 1.36
TATA AIG 1.29
MAX NEW YARK 0.90
AVIVA 0.79
OM KOTAK MAHINDRA 0.51
ING VYSYA 0.37
MET LIFE 0.21
Series 1
MET LIFE
ING VYSYA
MO KOTAK MAHINDRA
AVIVA
MAX NEW YORK
TATA AIG
HDFC STANDARD
SBI LIFE INSURANCE
BAJAJ ALLIANZ
BIRLA SUN LIFE
ICICI PRUDENTIAL
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 5
Industry statistics
The health portfolio continues to grow at a healthy pace. As per statistics released by the
Insurance Regulatory and Development Authority (IRDA), the industry recorded 33.1 per cent
growth in health insurance premiums collected in FY2010-11, with most non-life insurance
companies recording double-digit growth rates in the health segment.
An indication of growing maturity of the industry is the upward revision in the premium rates
by all players to make up for the high claims ratio, especially in the group health segment, and
the double digit medical cost inflation. Further premium increases are expected in the year. In
order to contain costs, some employers have withdrawn insurance benefits for elderly parents
under group cover, or introduced co-payment arrangements for meeting parental claims;
some have introduced sub-limits on expense categories while others have scrapped maternity
cover. The IRDA Chairman has also indicated that policyholders may gradually have to pay
more for health insurance in a market driven industry.
At the same time, the overall service levels and customer management standards are
improving. The cashless claim facility is making a gradual comeback. The key development
this year is going to be the health insurance portability, which is expected to offer more
convenience to customers and make the industry more competitive.
Industry Performance For The Year Ended 31March 2011 (table no.1)
((
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Mission of the Company
India has 130crore population but only 16 crore people are insured till now. Still
86 crorePeople are yet to be insured. Also in broader perspective, company
wants to make every person get benefited through investing in Bajaj Allianz Life
Insurance.
The Company is focusing on improving employee productivity, policy
persistency, operational processes and service le
Vision of the Company
1) To be the first choice insurer for customers.
2) To be the preferred employer for staff in Insurance industry.
3) To be the number one insurer for creating shareholder value
4) To aspire to be a world class organization.
5) To encourage organizational transparency.
6) To value integrity.
COMPANY OVERVIEW
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History
ALLIANZ AG JOINED FORCES WITH BAJAJ Auto Ltd. to offer both general and life
insurance products. Allianzs joint venture partner is Bajaj Auto, a respected Indian
conglomerate with a strong market presence and an excellent distribution network. Their two
joint ventures are Bajaj Allianz for General Insurance and Bajaj Allianz for Life Insurance
Bajaj Auto Ltd. founded in 1942 by (Late) ShriJamnalal Bajaj, is Indias largest two & three -
wheeler Manufacturer & Exporter producing 1.2 million units, with Market Capitalization of
Rs.8000Crore. Bajaj Auto has an existing network of over 375 dealers across India & a
Distributor network in 60 cities.
Allianz AG is a Leading Global Insurance company Headquartered in Munch, Germany,
established in 1890, with a Global network extends to over 73 countries across Europe, South
& Northern America, and Africa& Middle East, Asia pacific, with over 700 subsidiaries &
119,000 employees Worldwide. At current level company have assets under management of
USD 1000 billion, with global ratings-AA+-Standard & Poors.
Allianz links with India started in the 1919s. Allianz first arrived in India in 1928 when it
opened a branch in Delhi. In September 2001, Bajaj Allianz received the license from the
IRDA to start selling life products.
Bajaj Allianz Life Insurance Company Limited takes this opportunity to welcome you our
commitment to meet the needs of customer through quality products, dependable service and
ethical business standards. Trusted over decades, both Allianz AG and Bajaj Auto have
experienced substantial growth in demanding environment.
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Organization Structure
Organization structure of BAJA ALLIANZ LIFE INSURANCE is as follows,
CEO
HOD Sales
Zonal Manager
RegionalManager
Senior BranchManager
Branch Manager
assistant BranchManager
Sales Manager
Assistant salesManager
Agents/Insurance
Consultants
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CSR activity
The CSR activities of Bajaj Group are guided by the vision and philosophy of its Founding
Father, ShriJamnalal Bajaj, who embodied the concept of Trusteeship in business and laid
thefoundation for its ethical, and value-based and transparent functioning. The core elements
of CSR activities include ethical functioning, respect for all stake-holders, protection of
human rights and care for the environment. Bajaj Group generally implements the above
initiatives through its Employees Welfare Funds and Group NGOs / Trusts / Charitable
Bodies operating at various locations in the country. It also enlists the help of non-Group
NGOs, Local Authorities, Business Associations, Social & Philanthropic Organisations of
repute and Civil Society, wherever deemed necessary. Some of the major initiatives taken up
/continued during the year under review are summarized below:- A. Through Group Trusts
1. Jamnalal Bajaj Foundation (JBF Foundation)
Awards
The Foundation gives 4 Awards annually - each of the value of ` 5 lakh. Of these, three are
given to individuals in India for outstanding contribution in the fields of constructive work on
Gandhian lines, application of science and technology for rural development and uplift and
welfare of women and children. The fourth one is an International Award - given to
individuals other than Indian citizens from foreign countries for their contribution to the
promotion of Gandhian values outside India.
Financial Assistance
During the year, financial assistance was provided to wives and families of farmers, who have
committed suicide in WardhaDistrict for their subsistence and also for educational assistance
to their children.
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Rural Development
The Foundation has been undertaking rural development workin select villages of Wardha
District, Maharashtra (since 1987) and in Shikohabad, Dist. Firozabad, U.P. (since 1992). The
activities are undertaken on the basis of the need of the local people. Special emphasis is given
on health, family welfare, and immunization, supply of potable drinking water, sanitation and
alternative source of renewable energy.
Community Awareness Campaign & Health Camp
The Foundation carried out people-to-people base awareness programmes about population
control, usage of toilet, health hygiene etc. and organized health camps for women and
handicapped persons.
2. Jankidevi Bajaj Gram VikasSanstha (JBGVS)
Rural and Community Development Activities and Empowerment of
Womenempowerment.
Education
Economic development
Environmental development
Social development
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Product
At present, Bajaj Allianz is offering seven life insurance products, namely Invest gain(an
Endowment plan), Cash gain(Money Back plan), Lifetime Care(A Whole life plan), Risk
Care(Pure Term Insurance plan), Term Care(Term plan with return of premium), Child
gain(Children plan) and SwarnaVishranti(Deferred Pension Plan) Unit gain & Loan protector.
All these plans are available in combinations with additional benefits packages to match every
individuals need.
For each plan category, an individual can choose from among four benefit packages
namely,
Economy: Basic plan, with no additional benefits
Protect: Basic plan along with cover against accidental risk- Accidental Death Benefit,
Accidental Permanent Total/Partial Disability Benefit, Waiver of Premium.
Health: Basic plan along with cover against health related risks- Critical Illness,
Hospital Cash Benefit.
Total: Basic plan with cover against both accidental and health related risks i.e. Both
Protect & Health Pack.
These packages are structured keeping in mind the varying needs of insurance and the value-
add that to match the flexibility for the policyholder. These benefits can be attached to all
plans offered by Bajaj Allianz Life.
Bajaj Allianz Life Insurance Co Ltd is a unique joint venture among the global giants Allianz
Group (AG) and Bajaj Auto. Allianz AG's world ranking establishes it among the top
insurance companies in the world. Bajaj is the biggest two and three wheeler manufacturer in
the world. Bajaj Allianz Life Insurance Company boasts of a nationwide presence with 876
offices and over 4 million satisfied customers. The various insurance products include .
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Individuals Plans
Unit Gain Insurances
Term Care Plans
Lifetime Care Insurance Policy
Business Insurance Policies
Savings And Security Policies For You And Your Family
Rural Insurance Plan
Healthcare Insurance
Financial Insurance
Pension Plus
Retirement Plans
Children's Policies
Endowment Plans and many more.
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Group Insurance Schemes
Insurance For Employee-Employer Groups
Insurance For Non-Employer - Employee Groups
Employees Deposit Linked Insurance
New Group Superannuation Scheme
New Group Gratuity Care Scheme
Special Insurance Policies for NRI's
Investgain Endowment Plan
Cashgain Money Back Plan
Childgain Kids Special Plan
SwarnaVishranthi
Bajaj Allianz India offers convenientpremium payment and receipt options.
The payments can be direct through
cheques, DD's or directly from your
accounts or through credit card. The
premiums can also be paid online. The
insurance policy holders who also
have an account with Standard Chartered Bank can avail the direct debit mandate facility.
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 14
SWOT
STRENGTHS:
I. Financial Acumen - Holds a stable and diversified portfolio and has received some of
the highest ratings in financial strength from industrys independent rating agencies.
II. Disciplined fund management - Years of experience in asset management, and a
strong track record in managing funds
III. Innovativeness- Known for being an innovator in providing world-class pragmatic
financial solutions, with a constant focus on customization and flexibility
IV. Unrelenting Customer Focus - A highly committed sales force, with customer
satisfaction as the key driving force - a major differentiator
V. Transparency in Services - Daily declaration of fund performances, regular
performance benchmarking, well regulated asset management, and monthly newsletter
on market updates
WEAKNESSES:
Industry in nascent stage.
Rural areas still not covered.
Not very known among Indian population.
Lack of credibility among the people because bajaj being a private player.
Premiums are high as compared to its competitors.
Very few branches in the country.
Products:.
Plan does not offer any guarantee or assured return.
Product profile is not very comprehensive.
Mortality, management and administrative charges are sky scrapping as
compared to its competitors.
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OPPORTUNITIES
Liberalization of Indian economy.
As the industry is growing the whole market is virgin.
The whole private sector is opened to be trapped even though the competition is fierce
from government owned insurance companies.
Its a volume business that is even if the company has few good corporate the turnover
cease to increase by manifold.
Products:
Preserver funds look good due to comfortable liquidity in the economy andthere is little chance hike in short-term rate by RBI.
Finance minister unveiled a budget favoring consumer spending, boosting
demand and therefore higher economic growth.
THREATS
The government players will become aggressive thus growth is going to be tough.
Entry of other players is not ruled out.
Apprehension towards bajaj being a private life insurance company..
Products:
Past performance of these plans is not indicative of the future performance of the plan.
The sum invested in the funds is subject to market risks and there can be no
assurance that the objective of plan will be achieved.
All benefits payable under the policy are subject to tax laws and other financial
enactment, as they exist from time to time.
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Advisors are the backbone of any life insurance company. They play the most important and
key role for company to cashing the revenue through selling the insurance policies.Some years
ago Advisors were known as Agents. In India, ever since the insurance industry has opened
up, opportunities for insurance companies have become limitless. To tap this opportunity, they
require insurance agents because agents are one of the most significant modes of bringing in
much-needed business to the company.
Bajaj Allianz Life Insurance, you will not merely be an insurance agentyou will be a
insurance consultant. You will have an important role to play because you have to give
valuable advice to prospective customers about their financial planning.
The candidate who wants to work as insurance consultant must fulfill following requirements:
1. Age above 18 years
2. 12th pass in case of urban area or 10th pass in case of rural area.
After fulfilling the requirement candidate have to give an exam of IRDA THE INSURANCE
REGULATORY AND DEVELOPMENT AUTHORITY.
The candidates who pass in examination award a license from IRDA to work as an insurance
agent.
RECRUITMENT OF ADVISOR
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The organization must decide about the homogeneous group which will constitute the market
for the said product. The process of deciding about the particular part of the total market
which is primary target for a given product is called the process of market segmentation. Most
of the organizations normally market a number of products and, therefore, have to decide
about the market segments for each one of their products. Moreover any one of such articles
or products manufactured by the organization may have different users in the eyes of the
consumers and may, thus, be marketed differently to different market segments. Market
segmentation can also be made on the basis of some important characteristics of consumer
groups such as their requirements, buying habits, etc. thus a market segment does not denote a
group of people having, say, common age or income or staying in a given area but is deemed
to be constituted of persons to whom a particular product appeals for the fulfillment of a
similar need and who are amenable to similar communication or promotional appeals.
Market segmentation for consumer goods and services can be made on the basis of
either consumer goods or services can be made on the basis of either consumer characteristics
or consumer characteristics or consumer responses.
Multi attribute Grid to help identify the Target Market for life insurance
Higher
Middle
Low
Wage Agriculturists Traders Professionals
Grid shows income level and Profession of consumers
After identifying the target market segments in a suitable manner, an organization should
formulate appropriate specialty tailored marketing programs suited to the identified needs of
different markets being served or proposed to be served.
MARKET SEGMENTATION
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Research topic of my summer internship project is Identifying the cause of
dominance of life insurance Corporation in rural and urban area. The
maximum market share in insurance industry is with LIC. So my duty is to study the mentality
of consumer and insurance advisor in rural as well as urban place regarding insurance
industry. My research is to provide the information on mentality of consumer during buying
the insurance policy.
In the research I studied on following points:
1) Private players Versus LIC.
2) Buying behavior of consumers.
3) Efficiency of insurance adviser of Bajaj Allianz lifeinsuance.
4) Motivation in organization.
5) Awareness of people regarding insurance in rural areas.
RESEARCH TOPIC
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Gjertsen, Lee Ann (2002). Insurance Agents Thrift Seeks OK to Widen Reach. The
American Banker, May 13, 2002.
Insurance agents of New Jersey, Connecticut and Massachusetts founded an association as
Independent Insurance Agents and Brokers and have applied for a charter for an association
savings bank. The bank products are to be sold by the independent insurance agents that own
their own agencies. The bank is to be named Insurance Bank.
McDaniel, David (1995): Agents worst nightmare: Banks are gaining the edge to sell
insurance in a big way. Bests Review [Property/Casualty], Vol. 96, 2, June, 28-33.
The article explains that insurance agents are afraid of banks cutting into their business as they
have in Europe where banks are far more efficient than agents. The article lays out how to
make the proposed legislation ineffective, by warning of unsubstantiated tie-ins and bank
coercion, proposing 10-day waiting periods, state legislation, and tough fire walls.
Satish Bhatt (2004) financial advisor Bangalore. Agents are the back bone for the success of
any insurance company, the network of efficient agent across the country determines the sales
volume of company.
The article explain the importance of insurance agent which are deeply penetrate in the
population, more the number of insurance agents more sales will be generated.
SagarikaSaxena (2005) People have more confident on government run organization in
insurance sector rather than private one.
Article explains the reasons why LIC enjoy monopolistic market in some regions, instead of
many private players are in market.
Sanjay Mishra (2005) Sales Manager Bajaj Allianz Life Insurance, Pune. Marketing
strategies adopted by Bajaj Allianz Life Insurance has a fruitful result at the year ended 2004
to 2005
LITERATURE REVIEW
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The article shows the data which shows the percentage increase in sales volume of Bajaj
Allianz Life Insurance due to attractive marketing through digital and print media.
Komal ShahStudent of Amity University makes a research on The buying behavior of
consumers in case of insurance.
Many people show their interest to buy the insurance from LIC because it is one of the oldest
layer in insurance industry and governing body is relates with central Government. For the
existence of LIC in the market for so long time people have blind faith on it, so for other
insurance companies it is very difficult to find place in the market.
Sameer Sindher student of D.A.Vcollege Chandigarh make an market research on the title of
A study of strategy and functioning of field force in Bajaj Allianz life insurance.
According to him sales promotion process was very much satisfying. The company
image in market is good because Bajaj motors which is one of the oldest player in
automobile industry. People know about the company. Brand name helps Bajaj Allianz
life insurance to penetrate in the market.
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Consumers are prefers life insurance policy or Investment option from LIC.
All the insurance consultants are satisfied with companys policies.
The acceptation of consumer from the insurance policy or investment.
Activeness of insurance consultants during attaining the customer.
Perception of consumers toward Bajaj Allianz Life Insurance.
Efficiency of staff toward achieving the sales target.
Consumer trust more on LIC than the private players.
Insurance consultants use right technique while approaching the customer.
Motivation level in staff.
Research Problem
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The objective of the study was to gain maximum information about the life insurance products
offered by various insurers and gain an insight into the prevailing market conditions. For this
purpose, I met the sales managers and agents of various life insurance companies. I
interviewed them extensively to have thorough knowledge of the products offered by them to
help me in making a comparative study of the products.
The market survey attempted to acquire maximum information about the life insurance
status of the people in GADCHIROLI. An attempt was made to cover a mix of people from
various income groups and occupations. Only insurable individuals were interviewed, i.e.
earning individuals in the age group of 20-45 years. A fair mix of both male & female
occupation was included.
The research attempted to find out the preference of the people towards a particular
type of insurance policy. It was also attempted to find out the preference of people towards a
particular insurer. The objective of the research was to enable me to compile the data collected
and help me in a valid interpretation. It was also attempted to analyze and interpret the data tofind out the market potential of life insurance.
Tools used in study
Methodology is of vital importance in any project report. Here the study aims finding
consumer preference and also a comparable analysis of the Life Insurance Products of various
insurance companies in GADCHIROLI.
For gathering information about the life insurance policies offered by the insurers I
used the methods of interviews & discussion. I met the Sales Managers and agents of various
life insurance companies & gathered the information about the policies offered by them. I
inquired about their plans their selling methodology.
The market survey of the individual was done with the help of a questionnaire prepared by
me. I met individuals at their offices and interviewed them extensively- about their market
preference. Observation Technology was also used to understand the facts in their full gambit
Research Objectives
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Consumer may not aware about the private players in insurance sector.
Consumer may not aware about the products of Bajaj Allianz Life Insurance.
Consumers are May or may not know about the ULIP (Unit Linked Insurance Plan).
Consumer may prefer policy from LIC rather than Bajaj Allianz life insurance.
Consumer may think that investing or buying policy from private players i.e. Bajaj
Allianz Life insurance may cause loss or do not give accepted benefits from claims.
Insurance consultants are May not fully aware about the policies offered by Bajaj
Allianz Life Insurance.
Insurance consultants may not able to fully convey the product information to
customers.
Sales promotion of Bajaj Allianz Life Insurance may not satisfactory.
Sales technique adopted by Insurance Consultant may not proper.
Consumer may have more interest in investing his money in Fixed Deposits
RESEARCH HYPOTHESIS
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Research design
The research design for the comparative study is ofexploratory type and the focus is given to
discover the possible measures, by detailed analysis, for the company which would be helpful
up to some extent to retain a good position in the competitive market. The research design is
not formal and rigid one as the focus depends upon the availability of new ideas and
relationship among variables.
Sampling
As per the sampling procedure is concerned, the finite universe is taken into consideration.
Two type of survey are done in project one is internal and second is external. Internal survey
includes discussion and questionnaire with insurance advisors.50 insurance advisors take as a
sample during the survey.
In Secondary survey sampling units include- businessmen, government employees, and
private employees bounded Gadchiroli only.
The sampling is based upon probability sampling methods. The reason is- it is the only
sampling method that provides essentially unbiased estimates having measurable precision.
The sample size was 50
Data collection
Primary data sources
Through interaction with insurance care consultant
Through questionnaires filled from the insurance care consultant.
Through interaction with customers, public.
Surveys
Questionnaire filled from the customers.
RESEARCH METHODOLOGY
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Analysis of primary data(Internal)
(Based on survey conducted for 50 insurance care consultants)
Q.1 Which technique of sales promotion you prefer?
Options Response in %
Display 40%
Door to Door Demo 14%
Exhibition 16%
Catalogue 20%
Price Off 10%
Interpretation:
According to the study 40% insurance care consultants prefer display technique,20%
insurance care consultants prefer catalogues, 16% to the exhibition, 14% to the door to door
demo and 10% insurance care consultants prefer price off technique.
0%
5%
10%
15%
20%
25%
30%
35%
40%
Display Door to DoorDemo
Exhibition Catalogue Price Off
DATA ANALYSIS AND INTERPRETATION
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Q.2 Which technique is giving good response from customers?
Options Response in %
Display 18%
Door to Door Demo 36%
Exhibition 18%
Catalogue 16%
Price Off 12%
Interpretation:
According to the study 36% insurance care consultants say door to door demo techniques
giving good response, 18% insurance care consultants say to the display & exhibition, 16% to
the catalogues & 12% say to the price off technique.
0%
5%
10%
15%
20%
25%
30%
35%
40%
Display Door to DoorDemo
Exhibition Catalogue Price Off
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 27
Q.3 Which technique is economically beneficial?
Options Response in %
Display 10%
Door to Door Demo 22%
Exhibition 10%
Catalogue 46%
Price Off 12%
Interpretation:
According to the 46% insurance care consultants, catalogue technique is economically
beneficial. 22% to the door-to-door demo and 12% insurance care consultants prefer price off
technique.10% to the exhibition & display technique.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Display Door to DoorDemo
Exhibition Catalogue Price Off
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 28
Q.4 Which technique requires less time in sales promotion?
Options Response in %
Display 22%
Door to Door Demo 38%
Exhibition 10%
Catalogue 16%
Price Off 14%
Interpretation:
According to the study 38% insurance care consultants say display technique requires less
time in sales promotion. 22% to the display technique, 16% insurance care consultants vote to
the catalogues, 14% insurance care consultants vote to the 10% to the exhibition.
0%
5%
10%
15%
20%
25%
30%
35%
40%
Display Door to DoorDemo
Exhibition Catalogue Price Off
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 29
Q5 Which technique is easily manageable?
Options Response in %
Display 18%
Door to Door Demo 30%
Exhibition 10%
Catalogue 34%
Price Off 8%
Interpretation:
According to the study 34% insurance care consultants say that the catalogues is easily
manageable, 30% to the door to door demo,18% insurance care consultants prefer display
technique 10% to the exhibition, and 8% insurance care consultants say to the price off
technique.
0%
5%
10%
15%
20%
25%
30%
35%
Display Door to DoorDemo
Exhibition Catalogue Price Off
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 30
Q.6 Which technique requires less knowledge to execute?
Options Response in %
Display 14%
Door to Door Demo 12%
Exhibition 12%
Catalogue 22%
Price Off 40%
Interpretation:
According to the study 40% insurance care consultants vote to the price off technique is
require less knowledge to execute.22% insurance care consultants prefer catalogues, 14% to
the display and 12% to the exhibition & door to door.
0%
5%
10%
15%
20%
25%
30%
35%
40%
Display Door to DoorDemo
Exhibition Catalogue Price Off
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 31
Q.7 Which technique requires more knowledge to execute?
Options Response in %
Display 20%
Door to Door Demo 42%
Exhibition 24%
Catalogue 10%
Price Off 4%
Interpretation:
According to the study 42% insurance care consultants vote to the door-to-door technique that
it requires more knowledge to execute than others. 24% to the exhibition, 20% to the display
technique, 10% insurance care consultants give vote to the catalogues and 4% insurance care
consultants prefer price off technique.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Display Door to DoorDemo
Exhibition Catalogue Price Off
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 32
Q.8 Price off are necessary for sales promotion?
Options Responses in %
Yes 46%
No 40%
Cant say 14%
Interpretation:
According to the study 46% insurance care consultants say yes that the price off are necessary
for sales promotion. 40% say no and 14% say cant say.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Yes No Cant say
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 33
Q.9 Do you think that sales promotion program that is presently undertaken by Bajaj
Allianz are satisfactory?
Options Responses in %
Yes 34%
No 46%
Cant say 20%
Interpretation:
According to the study 46% insurance care consultants say No that the sales promotion
program that is presently undertaken by Bajaj Allianz are satisfactorily 36% say Yes and 20%
say cant say.
Q.10 Should Bajaj Allianz take up new sales promotion program?
Options Responses in %
Yes 72%
No 22%
Cant say 6%
Interpretation :
According to the study 72% insurance care consultants say yes installment offers are 22% say
no and 6% say cant say.
0%5%
10%15%20%25%30%35%40%45%
50%
Yes No Cant say
0%
10%
20%
30%
40%
50%
60%
70%
80%
Yes No Cant say
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 34
1 2
3 4
1 2
3 4
ANALYSIS OF PRIMARY DATA (External)
Q1. What is your Annual income? (In lakhs)
(1) 5
INTERPRETATION
(1) 5 - 30%
Q2. Where do you want to invest your surplus money?
(1) Fixed deposit
(2) Mutual funds(3) Stocks
(4 Real Estate
INTERPRETATION
(1) Fixed deposit 40%
(2) Mutual funds 30%
(3) Stocks 10%
(4 Real Estate 20%
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 35
1 2
3 4
1
2
3
4
Q3. What benefits do you want from your Investments?
(1) Savings
(2) High returns
(3) Tax rebates
(4) Risk cover
INTERPRETATION
(1) Savings 40%
(2) High returns 35%
(3) Tax rebates 15%
(4) Risk cover 10%
Q4. What do you expect from the life insurance companies?
(1) High return
(2) Liquidity
(3) Security
(4) Low premium
INTERPRETATION
(1) High return 20%
(2) Liquidity 15%
(3) Security 50%
(4) Low premium 15%
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 36
1
2
3
4
Q5. Do you know about the product of these Companies?
(1) LIC
(2) ICICI
(3) TATA AIG(4) BIRLA
(5) OMKM
(6) HDFC
(7) Bajaj Allianz
INTERPRETATION
(1)YES 75 (2) NO 25
Q6. At what age have have you taken Life Insurance Policy?
(1) 2030
(2) 3140
(3) 4150
(4) Above 50
INTERPRETATION
0
(1) 2030 10%
(2) 3140 15%
(3) 4150 35%
(4) Above 50 40%
1
2
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 37
1
2
3
4
1
2
Q7. What is your occupation group?
(1) Government Employee
(2) Private Employee
(3) Business Professional
(4) Others
INTERPRETATION
(1) Government Employee40%
(2) Private Employee 35%
(3) Business Professional 15%
(4) Others10%
Q8. Are you aware about ULIP?
(1) Yes(2) No
INTERPRETATION
(1) Yes 40%
(2) No 60%
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 38
1
2
3
4
1
2
3
Q9. Which companys ULIP have you taken?
(1) ICICI Prudential
(2) HDFC Standard Life
(3) KLI
(4) BAJAJ
INTERPRETATION
(1) ICICI Prudential 30%
(2) HDFC Standard Life 30%
(3) KLI 20%
(4) BAJAJ 20%
Q10. Are you interested in investing in BAJAJ?
(1) Interested
(2) Semi-interested
(3) Not-interested
INTERPRETATION
(1) Interested 40%
(2)Semi-interested35%
(3) Not-interested 25%
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 39
Throughout the project work I have tried to my extent to learn more and more so that I
enable myself to deliver the best services from my part. I always focused my services to full
satisfaction whether it would for employer or for customer. So during this practical learning
process whatever I have realized to improve the division of the company is as follows:
Tapping the upcoming market - Semi Urban Market as there is a lot of opportunity. Most of
the Life Insurance companies are operating in the metros and big cities as per their present
branch office locations. If they have to increase their market size they have to open moredistribution centers at the various urban and semi-urban markets.
The company always should have proper communication with its front office as well
as back office workers to increase the morale and productivity.
The company should always have proper planning for gifts/incentives for employees
on various occasions or on competitions.
Premium and economical class of services should be launched by the company to
serve the varied nature of customers.
Service awareness camps should be run by the company in remote areas.
Distribution channel needs more strength.
Improvement in services through feedbacks from customers is recommended.
RECOMMENDATIONS AND SUGGESTION
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 40
LIC has played a major role in the field of insurance, while Bajaj Allianz and other
private players stay behind it.
In making strong public base by advertisement LIC is not behind anyone in the race
despite private players are generally supposed to deliver comparatively more
advertisements.
A majority of private employees, government employees, and businessmen are
insured with LIC which is a tough challenge for private players especially Bajaj Allianz
and other private players. Majority of people still trust a lot in LIC despite its gradually loosening grip over the
insurance market. They hope it will recapture the market share lost by it.
Majority of people would like to get insured with LIC despite of the fact that private
players like Bajaj Allianz and ICICI Prudential are equipped with a lot of beneficial
products, not less than LIC. Its really a matter of consideration.
Talking about private players, majority of people hope and are confident for the
comparatively brighter future of Bajaj Allianz than any other private player, which is a
good indication and response for the company.
When the insurance care consultant is asked why they are dealing in this particular
insurance policies (product) they mostly stressed on companys image. They also said
that all income and age group of customers are attracted towards their product but
buyers are mainly from higher and middle-income group
I have come to know about the importance of marketing especially with regard to
Sales Promotion on the most renowned organization like Bajaj Allianz. Especially
because of emergence of many competitor with excellence in services & competitive
product. The base of this chapter conclusion is on the data analysis or what we say
findings.
.
OBSERVATION AND FINDINGS
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 41
Most of investors not fully aware about Life insurance policies and their advantage.
It was found most of the investor prefer, less risk taking saving scheme or fixed
deposits.
Some of the people, who were related to rural area, did not know about facility for
investment of money in Life Insurance Policy schemes.
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 Family Gain and said that it is
a very good plan and is very much affordable by middle class people.
Marketing strategies adopted by Bajaj Allianz Life Insurance are good In rural areas.
CONCLUSIONS
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 42
Following limitations were faced during the study:
1. While designing the questionnaire it was kept in mind to gather more and more
information from each target person. For the neither present nor descriptive questions
could have served the purpose. Therefore the questionnaire contained in the open-
ended questions.
2. The study was conducted in Bajaj Allianz in GADCHIROLI city, which has 127 to
170 insurance care consultants only. The sample size was of 50 insurance care
consultants only so that accuracy of data so collected could be absurd covered by
circulation of questionnaire.
3. The accuracy of indications given by the respondents may not be consider adequate as
whether the language used in the questionnaire is understood by the respondent cannot
be taken for granted.
4. The study is based on the information gathered from the insurance care consultants.
Therefore in such case it is possible that the information supplied might be biased
because the insurance care consultant might have shown partiality towards their
insurance policies.
5. Since the survey was limited to 60 insurance care consultants it is rather difficult to
give a precise conclusion but I have tried to the best of my capability to give the
conclusion on a comprehensive manner.
Limitations of the Study
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 43
Through all the research I have made in my Summer Internship program I have found that the
consumers from rural areas are not fully aware about the products offer by Bajaj Allianz life
insurance so the Bajaj Allianz life Insurance use this information while formulating the sales
strategy for rural areas.
Buying behavior of consumer is mainly depending on economic, social and occupation of
consumer. So when insurance consultant approach customer he must aware or know about the
background of customer in the sense he will attain the customer with right policies and
investment options.
The data collected from internal survey i.e. questioner made with insurance consultants gives
views and opinions, company use this information while training the new and old one and to
motivate the insurance consultants.
The data collected from external survey i.e. questioner made with peoples explain the
behavior, needs, thinking, awareness of product. This information is useful to company while
segmenting, targeting the consumers.
Implication of the Project for the Company
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Web sites:
www.bajajallianz.com
www.indiainfoline.com
www.insurance.ind.in
www.irda.com
www.Marketresearch.com
BOOKS:
Sales Management by S.L Gupta.
Life insurance by Mc. GILL.
Research Methodology Kothari C.R.
BIBLIOGRAPHY
http://www.bajajallianz.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.bajajallianz.com/8/4/2019 Recruitment of Advisors and Sales of Financial Products Through Them and Collection of Desirable Premium
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SIP Report /Sterling Institute of Management studies, Navi Mumbai 45
General information
1. Name:_________________________________________
2. Address:-_______________________________________________
_______________________________________________
Phone No.__________________
3. Age:______
4. Gender: M/F
5. Marital Status: Married/Single.
6. Educational Qualification:
Matriculate/Intermediate/Graduate/P.G./Any other
7. Occupation: Govt.Service/Private Service/Self Employed.
8. Income per month:
17500
10. Family size (if married)
a) Spouse: Working/Housewife
If working, where?
b) No. of children & their age
c) Any other dependants:
ANNEXTURE
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Research specific information
1.Doyou have any Insurance policy? Yes/No
a) If yes,then what type of policy and from which insurer?
b) What was your purpose of taking that policy?
Risk coverage/Savings/Investment/Tax rebate/Special event Management
c) If no, then dont you feel the need of taking a policy?
2. Are you planning to take a life insurance policy in near future? Yes/No
a) If yes, please specify the type of the policy.
Term/Endowment/Whole life/Money back/Child care/Pension
b) While taking a policy, what are the essential features you will keep in
mind?
Risk coverage/Tax benefit/savings/Loan coverage/Premium charged
3. Have you heard about Bajaj Allianz Life Insurance Co. Ltd.Yes/No
4. Which of the Bajaj Allianz policies have you heard about?
Lifetime Care/Invest Gain/Child Care/Cash Care/Risk Care/Term Care/
SwarnaVishranti
5. Have you subscribed to any of these?Yes / No
6. If yes, which one?
Policy term/Policy cover/Riders (if any)
7. Are you satisfied with the Bajaj Allianz Policy Yes / No
Date: Signature: