INDUSTRY PROFILE
WHAT IS INSURANCE
The business of insurance is related to the protection of the ECONOMIC VALUES OF
ASSETS. Every asset has a value. The asset would have been created through the efforts of the
owner. The asset would have been created through the efforts of the owner. The asset is valuable
to the owner, because he expects to get some benefits form it. It is a benefit because it meets
some of his needs. The benefit may be an income or in some other form. In the case of a factory
or a cow, the product generated by it is sold and income is generated. In the case of a motor car,
it provides comfort and convenience in transportation. There is no direct income. Both are assets
and provide benefits.
Every asset is expected to last for a certain period of time during which it will provide the
benefits. After that, the benefit may not be available.
There is a life-time for a machine in factory or a cow or a motor car. None of them will last for
ever. The owner is aware of this and he can so manage his affairs that by the end of that period or
life-time, a substitute is made available. Thus he makes sure that the benefit is not lost. However,
the asset may get lost earlier. An accident or some other unfortunate event may destroy it or
make it incapable of giving the benefits. An epidemic may kill the cow suddenly. In that case,
the owner and those enjoying the benefits therefore, would be deprived of the benefits. The
planned substitute would not have been ready. There is an adverse or unpleasant situation.
Insurance is a mechanism that helps to reduce the effects of such adverse situations. It promises
to pay to the owner or beneficiary of the asset, a certain sum if the loss occurs.
Bharti – Axa Life Insurance
HISTORY OF INSURANCE
Insurance has been known to exist in some form or other since 3000 BC. The Chinese
traders, traveling treacherous river rapids would distribute their goods among several
vessels, so that the loss form any one vessel being lost, would be partial and shared, and
not total. The Babylonian traders would agree to pay additional sums to lenders, as the
price for writing off the loans, in case of the shipment being stolen. The inhabitants of
Rhodes adopted the principle of general average of ‘general average’, whereby, if goods
are shipped together, the owners would bear the losses in proportion, if loss occurs, due
to jettisoning during distress. {Captains of ships caught in storms, would throw away
some of the cargo to reduce the weight and restore balance. Such throwing away is called
jettisoning} The Greeks had started benevolent societies in the late 7 th century AD, to
take care of the funeral and families of members ho died. The great fire of London in
1666,in which more than 13000 house were lost, gave a boost to insurance and the first
fire insurance company, called the fire office, was started in 1680.
The origins of insurance business as in vogue at present, is traced to the Lloyd’s Coffee
House in London. Traders, who used to gather in the Lloyd’s coffee house in London,
agreed to share the losses to their goods while being carried by ships. The losses used to
occur because of pirates who robbed on the high seas of because of bad weather spoiling
the goods or sinking the ship. In India, insurance began in 1818 with life insurance being
transacted by an English company, the Oriental Life Insurance Co. in 1870 in Mumbai.
This was followed by the Bharat Insurance co. in 1896 in Delhi, the Empire of India in
1897 in Mumbai, The United India in Chennai, the National, the National Indian and
Hindustan Cooperative in Kolkata.
Later, were established the cooperative Assurance in Lahore, the Bombay Life (originally
called the swadeshi life), the India Mercantile, the new India and the Jupiter in Mumbai
and the Lakshmi in New Delhi. These were all Indian companies started as a result of the
Page 2
Bharti – Axa Life Insurance
swadeshi movement in the early 1900s. By the year 1956, when life insurance business
was nationalized and the life Insurance Corporation of India (LIC) was formed on1st
September 1956, there were 170 companies and 75 provident fund societies transacting
life business in India. After the amendments to the relevant laws in 1999, the L.I.C. did
not have the exclusive privilege of doing life insurance business in India. By 31.8.2007,
sixteen new life insurers had been registered and were transacting life insurance business
in India.
The History of Insurance in India
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.
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.
Page 3
Bharti – Axa Life Insurance
Life Insurance a Basic Need
Life insurance is a contract providing for payment of a sum of money to the person assured or,
failing him, to the person entitled to receive the same, on the happening of certain event.
A family is generally dependent for its food, clothing and shelter on the income brought in at
regular intervals by the bread winner of the family. So long as the he lives and the income is
received steadily, that family is secure; but should death suddenly intervene the family may be
left in a very difficult situation and sometimes, in stark poverty.
Uncertainty of death is inherent in human life. It is this uncertainty that is risk, which gives rise
to the necessity for some form of protection against the financial loss arising from death;
insurance substitutes this uncertainty by certainty.
Few Advantages of Life Insurance.
1. It is superior to an ordinary savings plans:
This is so because unlike other saving plans, it affords full protection against risk of death. In
case of death, the full sum assured is made available under a life assurance policy; whereas under
other savings schemes the total accumulated savings alone will be available. The latter will be
considerably less than the sum assured, if death occurs during early years.
2. Insurance encourages and forces thrift:
A savings deposit can be too easily withdrawn. Many may not be able to resist the temptation of
using the balance for some less worthy purpose. On the other hand, the payment of life insurance
premiums becomes a habit and comes to be viewed wit the same seriousness as the payment of
interest on a mortgage. Thus insurance, in effect brings about compulsory saving.
Page 4
Bharti – Axa Life Insurance
3. Easy settlement and protection against creditors:
The life assured can name a person or persons to whom the policy moneys would be payable in
the event of his death. The proceeds of a life insurance policy can be protected against.The
claims of the creditors of the life assured by effecting a valid assignment of the policy. A married
women’s property act policy constitutes a trust in favor of the wife and children and no separate
assignment is necessary. The beneficiaries are fully protected from creditors except to the extent
of any interest in the policy retained by the assured.
.
4. Administering the legacy for beneficiaries:
It often happens that a provision which a husband or father has made through insurance is
quickly lost through speculative or unwise investment or by unnecessary expenditure on
luxuries. These contingencies can be provided against in the case of insurance. The policyholder
can arrange that in the in the event of his death the beneficiary should receive, instead of a single
sum (a). payment of the net claim amount by equal installments over a specified period of years,
or (b).payment of the claim amount by smaller monthly installments over the selected period
followed by a lump sum at the end thereof.
5. Ready marketability and suitability for quick borrowings:
After an initial period, if the policy holder finds himself unable to continue payment of premiums
he can surrender the policy for a cash sum. Alternatively he can tide over a temporary difficulty
by taking loan on the sole security of the policy without delay. Further a life insurance policy is
sometimes acceptable as security for a commercial loan.
Page 5
Bharti – Axa Life Insurance
6. Tax relief:
For computing income tax (especially in India the Indian income tax act) follows deduction from
income tax payable, a certain percentage of a portion of the taxable income of individuals which
is diverted to payment of insurance premiums. When this tax relief is taken into account it will
be found that the assured is n effect paying a lower premium for his insurance.
How Insurance Works
The mechanism of insurance is very simple. People who are exposed to the same risks come
together and agree that, if any one of the members suffers a loss, the others will share the loss
and make good to the person who lost. All people who send goods by ship are exposed to the
same risk related to water damage, ship sinking, piracy, etc. those owning factories are not
exposed to these risks, but they are exposed to different kinds of risks like, fire, hailstorms,
earthquakes, lightening, burglary, etc. like this, different kinds of risks can be identified and
separate groups, made including those exposed to such risks. By this method, the risk is spread
among the community and the likely big impact on one is reduced to smaller manageable
impacts on all.
If a Jumbo Jet with more than 350 passenger’s crashes, the loss would run into several crores of
rupees. No airline would be able to bear such a loss. It is unlikely that many Jumbo Jets will
crash at the same time. If 100 airline companies flying Jumbo Jets, come together into an
insurance pool, whenever one of the jumbo jets in the pool crashes, the loss to be borne by each
airline would come down to a few lakhs of rupees. Thus, insurance is a business ‘sharing’.
Page 6
Bharti – Axa Life Insurance
Role of Insurance in Economic Development
For economic development, investments are necessary. Investments are made out of
savings. A life insurance company is a major instrument for the mobilization of savings
of people, particularly from the middle and lower income groups. These savings are
channeled into investments for economic growth.
An insurance company’s strength lies in the fact that huge amounts come by way of
premiums. Every premium represents a risk that is covered by that premium. In effect,
therefore, these vast amounts represent pooling of risks. The funds are collected and held
in trust for the benefit of the policyholders.
The management of insurance companies is required to keep this aspect in mind and
make all its decisions in ways that benefit the community. This applies also to its
investments. This is why successful insurance companies would not be found investing in
speculative ventures. Their investments benefit the society at large.
The system of insurance provides numerous direct and indirect benefits to the individual
and his family as well as to industry and commerce and to the community and the nation
as a whole. Those who insure, both individuals and corporate, are directly benefited
because they are protected from the consequences of the loss that may be caused by the
accident or fortuitous event. Insurance, thus, in a sense protects the capital in industry and
releases the capital for further expansion and development of business and industry.
The every existence of risk that is, uncertainty concerning the future, is a severe
handicaps in economic activities. Insurance removes the fear, worry and anxiety
associated with this future uncertainty and thus encourages free investment of capital in
business enterprises and promotes efficient use of existing resources.
Page 7
Bharti – Axa Life Insurance
Thus insurance encourages commercial and industrial development and there by
contributes to a vigorous economy and increased national productivity.
Present day organization of industry, commerce and trade depend entirely on insurance
for their operation, banks and financial institutions lend money to industrial and
commercial undertakings only on the basis of the collateral security of insurance. No
bank or financial institution would advance loans on property unless it is insured against
loss or damage by insurable perils.
Insurers are closely associated with several agencies and institutions engaged in fire loss
prevention, cargo loss prevention, cargo loss prevention, industrial safety and road safety.
Before acceptance of a risk, insurers arrange survey and inspection of the property to be
insured, by qualified engineers and other experts.
The object of these surveys is not only to assess the risk for rating purposes but also to
suggest and recommend to the insured, various improvements in the risk, which will
attract lower rates of premium and what is more important , reduce the loss potential. For
example, burglary surveyors make recommendation in regard to security measures such
as better locking system, appointment of Watchman, etc. Engineering surveys play a
most useful part in accident prevention as valuable technical advice is provided in respect
of plant and machinery.
Insurance ranks with export trade, shipping and banking services as earner of foreign
exchange to the country. It helps to earn foreign exchange and represent invisible exports.
Page 8
Bharti – Axa Life Insurance
List of Insurance Companies Listed in Different Years
List of Life Insurance Companies
S.No. Registration
Number Date of Reg. Name of the Company
1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.
2 104 15.11.2000 Max New York Life Insurance Co. Ltd.
3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.
4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited
5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance Company Limited .
8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited
9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited
10 117 06.08.2001 Metlife India Insurance Company Ltd.
11 133 04.09.2007 Future Generali India Life Insurance Company Limited
Page 9
Bharti – Axa Life Insurance
12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.
13 102 23.10.2000 Royal Sundaram Alliance Insurance Company Limited
14 103 23.10.2000 Reliance General Insurance Company Limited.
15 106 04.12.2000 IFFCO Tokio General Insurance Co. Ltd
16 108 22.01.2001 TATA AIG General Insurance Company Ltd.
17 113 02.05.2001 Bajaj Allianz General Insurance Company Limited
18 115 03.08.2001 ICICI Lombard General Insurance Company Limited.
19 131 03.08.2007 Apollo DKV Insurance Company Limited
20 132 04.09.2007 Future Generali India Insurance Company Limited
21 134 16.11.2007 Universal Sompo General Insurance Company Ltd.
22 121 03.01.2002 Reliance Life Insurance company Ltd.
23 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.
Page 10
Bharti – Axa Life Insurance
24 127 06.02.2004 Sahara India Insurance Company Ltd.
25 128 17.11.2005 Shriram Life Insurance Company Ltd.
26 130 14.07.2006 Bharti AXA Life Insurance Company Ltd.
27 133 04.09.2007 Future general Indai life Insurance Co.Ltd
28 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.
29 136 08.05.2008 Canara HSBC Oriental Bank of Commerce Life
Insurance Company Ltd.
30 138 27.06.2008 Aegon Religare Life Insurance Company Ltd.
31 140 27.06.2008 DLF Pramerica Life Insurance Company Ltd.
List of General Insurance Companies
1 123 15.07.2002 Cholamandalam General Insurance Company Ltd.
2. 124 27.08.2002 Export Credit Guarantee Corporation Ltd.
3. 125 27.08.2002 HDFC-Chubb General Insurance Co. Ltd.
1 139 27.06.2008 Bharti Axa General Insurance Company Ltd.
2 141 15.12.2008 Raheja QBE General Insurance Co. Ltd
Page 11
Bharti – Axa Life Insurance
Chapter 2
COMPANY PROFILE
History of Bharti AXA Life Insurance
Bharti AXA Life Insurance is a joint venture between Bharti, one of India’s leading business
groups with interests in telecom, agri business and retail, and AXA, world leader in financial
protection and wealth management. The joint venture company has a 74% stake from Bharti and
26%stake of AXA.
The company launched national operations in December 2006. Today, company have over 8000
employees across over 12 states in the country and a national footprint of distributors trained to
provide quality financial advice and insurance solutions to the large Indian customer base. Open
first branch office in Hyderabad. Introduces 2 unit linked products- “future confident’ and
‘wealth confident’
As we further expand our presence across the country with a large network of distributors, we
continue to provide innovative product and service offerings to cater to specific insurance and
wealth management needs of customers. Whatever your plans in life, you can be confident that
Bharti AXA Life will offer the right financial solutions to help you achieve them.
Bharti-AXA perform over following cities
Hyderabad
Mumbai
Delhi
Bangalore
Kolkata
Chennai
Ahmedabad
Ludhiana
Page 12
Bharti – Axa Life Insurance
Lucknow
Surat
Kochi
Indoor
Chandigarh
Vadodra
Bhubneshwar
Jaipur
Mohali
Vision
To be a leader and the preferred company for financial protection and wealth management in
India
Page 13
values
professionalism
InnovationTeam Spirit
Pragmatism Integrity
Bharti – Axa Life Insurance
Strategy
To achieve a top 5 market position in India through a multi-distribution, multi-product
platform
To adapt AXA's best practice blueprints as a sound platform for profitable growth
To leverage Bharti's local knowledge, infrastructure and customer base
To deliver high levels of shareholder return
To build long term value with our business partners by enhancing the proposition to their
customers
To be the employer of choice to attract and retain the best talent in India
To be recognised as being close and qualified by our customers
Bharti Group
Bharti Airtel Ltd
Bharti Airtel Ltd is one of Asia's leading telecommunications service provider. The Company is
India’s largest integrated telecom company in terms of customer base and offers Mobile
Services, Fixed Line services, Broadband & IPTV, DTH, Long Distance and Enterprise services.
Airtel also offers mobile services in Sri Lanka on a state-of-the art 3.5 G network.
Bharti TeleTech Ltd
Bharti Teletech is India’s leading telecom & allied products company. It is one of the largest
manufacturers of landline telephones in the world. With a strong distribution network across the
country, the company is also the primary distributor of IT and Telecom products from
interntional brands such as Motorola, Blackberry, Thomson, Polycom, Transcend, and Logitech.
Page 14
Bharti – Axa Life Insurance
Telecom Seychelles Ltd
A subsidiary of Bharti, Telecom Seychelles Ltd provides comprehensive telecom services
including 3G mobile services in Seychelles, under the ‘Airtel’ brand.
Comviva Technologies Ltd
Comviva is the leading provider of integrated VAS solutions for mobile operators in emerging
markets. Among the top 3 global providers of integrated VAS solutions in rapidly growing
markets, Comviva has deployed solutions for over 100 mobile operator customers in over 80
countries worldwide.
FieldFresh Foods Pvt. Ltd.
FieldFresh Foods Pvt. Ltd., is a venture between Bharti Enterprises and Del Monte Pacific
Limited, to offer fresh and processed fruits and vegetables in the domestic as well as
international markets, including Europe and the Middle East.
Bharti Retail Pvt Ltd
Bharti Retail is a wholly owned subsidiary of Bharti Enterprises. Bharti Retail operates a chain
of multiple format stores that offer consumers affordable prices, great quality and wider choice.
Page 15
Bharti – Axa Life Insurance
The company’s neighbourhood format stores operate under the "Easyday" brand and the compact
hypermarket format under the “Easyday market” brand.
Bharti AXA General Insurance Company
Bharti AXA General Insurance is a joint venture between Bharti Enterprises and AXA, world
leader in financial protection and wealth management. The company was incorporated in July
2007 and offers a full suite of general insurance solutions to meet the needs of businesses and
individuals alike.
Bharti AXA Life Insurance Company
Bharti AXA Life Insurance Company Ltd is a joint venture between Bharti Enterprises and
AXA, world leader in financial protection and wealth management. The company offers a range
of life insurance and wealth management products with an endeavour to help customers lead a
confident life.
Bharti AXA Investment Managers Pvt. Ltd.
Bharti AXA Investment Managers Pvt. Ltd., an asset management company in India, is a joint
venture between Bharti Enterprises, AXA Investment Managers (AXA IM) and AXA Asia
Pacific Holdings (AXA APH).
Page 16
Bharti – Axa Life Insurance
Centum Learning Limited
Centum Learning Limited provides end-to-end learning and skill-building solutions to several
large corporates. It provides solutions that impact business performance through enhanced
employee productivity, customer profitability and effective talent transformation.
Jersey Airtel Ltd
Jersey Airtel, a subsidiary of Bharti, offers world-class mobile services in Jersey (Channel
Islands) over its full 2G, 3G and HSDPA enhanced network. The Company brings market-
leading products and services to its customers under Airtel-Vodafone brand.
Bharti Foundation
Bharti Foundation was set up in 2000, with the vision, “To help underprivileged children and
young people of our country realize their potential”. It aims to create and support programs that
bring about sustainable changes through education and the use of technology and information.
Bharti Realty
Page 17
Bharti – Axa Life Insurance
Bharti Realty Limited is a young, vibrant and dynamic realty company with expanding interests
in commercial, retail and residential real estate. Bharti Realty aims to be amongst the most
admired real estate players in India and aspires to attain highest degree of customer trust through
superior product design and maintaining an uncompromising stand towards environmental
responsibility, ethics and safety
Bharti Infratel
Bharti Infratel, a wholly owned subsidiary of Bharti Airtel, provides passive infrastructure
services on a non-discriminatory basis to all telecom operators in India. Bharti Infratel also holds
approximately 42% stake in Indus Towers, a joint venture between Bharti, Vodafone and Idea to
offer passive infrastructure services.
Bharti Enterprises
Bharti Airtel Ltd:
Bharti Airtel Ltd is India’s leading provider of telecommunications service. The company has 4
distinct Business divisions- mobile and telephone services, broadband services, long distance
services and enterprise services,
Bharti Teletech Ltd
Bharti Teletech Ltd manufactures and exports world-class telecom equipment under the brand
‘Beetel’.
Telecom Seychelles Ltd
Telecom Seychelles ltd provides telecom services in Seychelles, under the brand ‘Airtel’.
Bharti AXA Life Insurance
Page 18
Bharti – Axa Life Insurance
Bharti AXA Life Insurance is a joint venture between Bharti, one of India’s leading business
groups with interests in telecom, agri business and retail, and AXA, world leader in financial
protection and wealth management. The joint venture company has a 74% stake from Bharti and
26%stake of AXA.
Bharti Telesoft Ltd
Bharti Telesoft Ltd delivers best-in-class,
Revenue-critical Vas products and service to telecom carriers,
Tele Tech Service Ltd
Tele Tech Service (India) Ltd is Joint venture with Tele Tech Inc., U.S.A. It offers a range of
Customer Management Services.
Field Fresh Foods Pvt Ltd
Field Fresh Foods Pvt Ltd is Bharti’s Venture with EL Rothschild Group owned ELRO holding
India Ltd., to export fresh Agricltural products exclusively to markets in Europe and USA.
AXA
AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse
geographically, with major operations in Western Europe, North America and the Asia/Pacific
area. AXA had Euro 1,315 billion in assets under management as of December 31, 2006. For full
year 2006, IFRS revenues amounted to Euro 79 billion, IFRS underlying earnings amounted to
Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million.
The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock
Exchange. The AXA American Depository Share is also listed on the NYSE under the ticker
symbol AXA.
Page 19
Bharti – Axa Life Insurance
AXA Asia Pacific Holdings
AXA Asia Pacific Holdings Ltd (AXA APH) is listed on the Australian stock exchange and is
52.3% owned by AXA SA. AXA APH is responsible for AXA SA’s life insurance and wealth
management businesses in the Asia-Pacific region. It has operations in Australia, New Zealand,
Hong Kong, Singapore, Indonesia, Philippines, Thailand, China, India and Malaysia. AXA APH
had A$106.4 billion in total funds under management and administration at 30 June 2007 and
reported a profit after tax before non-recurring items of A$374.0 million for the six months
ended 30 June 2007.
Products of Bharti-AXA Life Insurance
Bright stars
This is a regular premium unit-linked insurance policy, which, which offers you the twin
benefits of protecting your loved ones and creating wealth for them over the desired period.
As a caring parent, you want only the best for your child. As your child grows, his aspirations
will grow too and so will your responsibilities. Whether it’s higher studies abroad, a grand
wedding or a comfortable home … you can now ensure that your child is always one step
ahead
You can fulfill all the dreams you have for your child, and give him what he deserves. A
bright future!
The plan also offers the flexibility to make modifications, depending on the changing needs of
your child. As his dreams grow, the plan will grow too… so financial hurdles will never come
in the way of his growing dreams! With Bharti AXA Life Bright Stars,
Page 20
Bharti – Axa Life Insurance
Spot suraksha
Introduction
Spot Suraksha is a unit liked insurance product, which offers you an instant insurance protection
and benefit of wealth creation in the long-term.
Main Advantages of Spot Suraksha
Understand the product:(Read and understand the product brochure)
Answering the simple health related questions, Sign up the simple application form, submit
photograph, proofs for identity, address and age.
A cover note is issued to policy holder and insurance cover starts instantly.
100% allocation of premium- Full allocation of premium to the Investment Fund, according to
policy holder choice from 2nd year onwards.
Page 21
Parameter Eligibility
Minimum age at entry 18 years
Maximum age at entry 70 years minus policy benefit period chosen.
E.G: for policy benefit period of 17 years, the
maximum age at entry is 53 years.
Maximum age at maturity 70 years
Minimum premium Rs.15,000 p.a. for annual & semi-annual modes
Rs18,000 p.a for monthly mode
Premium modes Annual, semi-annual and monthly
Policy benefit periods available 7 years,10 years,15 years, 17 years and 20 years
Minimum top-up premium Rs. 2,500
Bharti – Axa Life Insurance
A guaranteed special addition equal to 130% of annualized premium in the first policy year is
added in the policy fund at maturity or death, which is earli
PARAMETER ELIGIBILITY
Minimum age at entry 5 years
Maximum age at entry 55 years
Maximum age at maturity 70 years
Minimum premium Rs. 12,000 p.a
Premium Modes Annual, Semi-annual and monthly
Policy term 15 years
Minimum top up premium Rs. 5,000
Dream life pension
Let you live your retired life king-size
This plan is made for old persons and to make them self independent and live a life of dignity
and self-respect. Today you are busy climbing the ladder of success and realizing your dreams.
Today, time is with you. Just take a moment and think.
The bharti AXA Life Dream life pension gives you:
A post retirement income for life.
Policy holder choose the age at which he/she would like to retire (vesting age), which
determines your premium paying term. Alternatively you can opt for single premium
payment.
PARAMETER ELIGIBILITY
Minimum age at entry 18 years
Page 22
Bharti – Axa Life Insurance
Maximum age at entry 70 years
Minimum age at vesting
Maximum age at vesting
45 years
80 years
Premium modes Single pay, yearly, Half-
yearly ,Quarterly and monthly
Minimum premium Annual Regular Premium:
Rs.12, 000p.a.
Minimum policy term 10 years
Minimum top-up premium Rs.2, 500 and no maximum limit on top-
up premium and top up allowed only
after first policy year.
MERIT PLUS
This is a regular premium unit-linked insurance policy which offers you the twin benefits of
protection against financial loss in the unfortunate event of the death and helping you to create
wealth systematically over the long-term. Hence this product is suitable for your long-term
objective like retirement planning, children’s future and giving a total protection to you and your
family.
PARAMETER ELIGIBILITY
Minimum age at entry 0 year
Maximum age at entry 60 years (For death benefit option A)
55 years (For death benefit option b)
Maturity age 80 years (for death benefit option A)
Page 23
Bharti – Axa Life Insurance
75 years (for death benefit option B)
Policy benefit period 80 year less age at entry (for death
benefit option A)
75 years less age at entry (For death
benefit option B)
Premium payable period Yearly, Half-Yearly And Monthly
Minimum premium Rs.10,000
Minimum Top-up premium 500
Benefits of Bharti AXA Life merit plus
In merit plus the policy holder must have to choice one option out of the two.
1.Sum assured(less all partial withdrawals made form the basic policy fund during the 12 months
prior to the date of death of life assured) or the policy Fund Value as on the date of intimation of
death, which is higher, will be paid.
2.The sum of sum assured and the policy fund value as on the date of intimation of death will be
paid.
Future confident
Future confident is a suitable product for you, if your objective is long-term targeted wealth
creation over 15-20 year, either for your own retirement or for your children’s future, while at
the same time providing your family enhance financial protection.
PARAMETER ELIGIBILITY
Minimum age at entry 0 year
Page 24
Bharti – Axa Life Insurance
Maximum age at entry 60 years
Maturity age 70 years
Policy benefit period 70 year less age at entry
Premium payable period Yearly, Half-Yearly, quarterly and
Monthly
Minimum premium Rs.10,000 for yearly, 5,000 for half-yearly
2,500 for quarterly and Rs.834 for
monthly premium
Minimum Top-up premium 500
Secure Confidence
Provide complete financial protection to your family, even when you are not there.
Secure confident is suitable to you if your objective is to protect your family against any
financial loss caused due to unfortunate death, disability due to an accident or critical illnesses
which may deprive them of a secured future.
Parameter Eligibility
Minimum age at entry 18 years
Maximum age at entry 55 years
Minimum sum assured Rs.5 ,00,000
Minimum premium RS.1,500 for yearly,Rs.780 for half-yearly,
Rs.405 for quarterly and Rs.135 for
monthly premium
Policy benefit period 5,10,15,20 and 25 years
Maximum age at maturity. 60 years
Premium paying term Equal to the policy benefit period.
On death On survival
A sum assured is paid to the policy holder The policy shall be terminated and no
Page 25
Bharti – Axa Life Insurance
or nominee and the policy shall be
terminated.
monies shall be payable to the policy
holder.
Strategic differentiators
Strong partner Bharti - provides access to customer base of more than 20 million
Multi channel execution capability
Current Asia product range which is a strong match to products sold to the mass and mass
affluent
Global scale providing cost effective and speedy re-use of systems, products and business
capability
Strong AXA and Bharti brands which can be leveraged to attract and retain a high quality
management team.
SWOT ANALYSIS OF BHARTI AXA
Strengths
Use of brand affinity of Airtel to promote insurance sales.
Bharti brought its strong local market knowledge, reputation and India.
Associated with AXA world leader in financial protection and wealth management, ranked
No 13 in the Fortune 500 list of global companies and has enabled the company to have
access to AXA’s global life insurance and asset management expertise.
Strong partner Bharti - provides access to customer base of more than 20 million
Weakness
Late entrant in the insurance sector
Thin distribution network all over the nation
Very less number of product offering in comparison to its competitors
Lack of confidence among the customers as parent company does not have a financial
background.
Opportunities
Strong growth of unit linked market at the mass affluent end.
Page 26
Bharti – Axa Life Insurance
Potentially with 20% insurance cross sale only to new telecom customers, this network can
yield 48 lac policies per year with sum assured of nearly Rs 58000 crores.
Threats
Many more companies are lining up to enter into Indian Insurance Industry.
Consumer’s preference is still more towards public sector insurance companies.
Page 27
Bharti – Axa Life Insurance
Introduction of the process of recruitment and selection of agent
Vision
To be a leader and the preferred company for financial protection and wealth
management in India
Strategy
To achieve a top 5 market position in India through a multi-distribution, multi-product
platform. To adapt AXA's best practice blueprints as a sound platform for profitable growth.
To leverage Bharti's local knowledge, infrastructure and customer base. To deliver high levels
of shareholder return. To build long term value with our business partners by enhancing the
Page 28
Bharti – Axa Life Insurance
proposition to their customers. To be the employer of choice to attract and retain the best
talent in India. To be recognized as being close and qualified by our customers
CHAPTER 3
RESEARCH OBJECTIVE
To understand the behavior dynamics and need state.
To develop value-based offerings and services to re design their own product.
To determine the strategies for customer retention and expansion.
RESEARCH METHODOLOGY
Research methodology is the way to systematically solve the problem. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them. Thus, When we talk about research methodology we not
only talk of the research methods but also consider the logic behind the methods we used in
the context of our research study and explain why we are using a particular method or
technique and why we are not using others so that
research results are capable of being evaluated either by the researcher himself or by others.
Methodology:
An exploratory research was carried out to understand the behavior dynamics and need states
and also understands the messages and experience the consumer is exposed to both from
within the product/service category as well as across categories. Both qualitative and
quantitative techniques are applicable although exploration relies more heavily qualitative
techniques. Correlation is used to find out the relation between various variables.
RESEARCH DESIGN
Sample size:
Page 29
Bharti – Axa Life Insurance
As the research is based on study to exhibit relation between life cycle stage of an
individual and the type of insurance policy required at different stages, a stratified
sampling technique was adopted and a sample size of 80 individuals were taken.
The survey has been conducted within the geographic area of Meerut. The time period
for which survey has been undertaken is June- July 2009.
Sampling techniques:
A stratified sampling technique was adopted because of the nature of the study and for
higher statistical efficiency requirement to come to an analysis. The sample was carefully
drafted. A lot of care was taken and 20 samples from each age group were taken. There are
total 80 Questionnaire.
The age groups discussed in the study are 21-30, 31-40, 41-50 and 51-60. The sample was
designed in the above stated manner to make the analysis easier. Open ended and close
ended questions are used in the questionnaire.
DATA COLLECTION
Primary data:
A questionnaire was drafted which included sample rating scales like simple category
scale, multiple- choice single-response scale, multiple- choice multiple- response scale ,
multiple- rating list scale, and constant sum scale, and open ended questions.
The questionnaire contains 12 questions which helps us to analyze the dependence of
type of insurance policy required on the life cycle stage of the individual.
It will also clearly show the customers perception towards insurance compared with the
other investment options and financial instruments, and as to how we can make it better.
Secondary data:
Page 30
Bharti – Axa Life Insurance
The secondary data was collected through the web sites of different organizations, news
papers. The secondary data is collected through the Websites related to insurance sectors,
Journals & Books on Research Methodology.
CHAPTER 4
SCOPE OF STUDY
Geographic area: This research has been conducted in Meerut region.
Duration: It took two months to complete.
Characteristics of respondent: People between the age of 21 to 61, both male and female.
LIMITATIONS
Project was undertaken in the Meerut region only .So it might not be a true Representation
of the views of the insured of other places.
The project is based on survey of population related to Bharti Axa only.
The time factor; I have limited time to conduct our survey and to meet the people
according to the sample size.
All the responses taken are personal opinions & perception of the respondents that are
subjective.
The area covered was too large in a time of 8 weeks.
Page 31
Bharti – Axa Life Insurance
CHAPTER 5
DATA ANALYSIS & INTERPRETATION
Table-1
Why would you take a life insurance policy
Cover futu
re ca
sh needs
Tax benefit
Investment i
nstrument
Angle of mercy
As a hedge against
old02468
1012141618
21-30
31-40
41-50
51-60
Page 32
21-30 31-40 41-50 51-60
Cover future cash
needs 12 17 6 2
Tax benefit 8 12 14 7
Investment
instrument 3 10 6 3
Angle of mercy 10 15 15 7
As a hedge against
old 2 5 14 17
Bharti – Axa Life Insurance
Table-2
Need at different stages while taking a policy
21-30 31-40 41-50 51-600
2
4
6
8
10
12
14
16
18
asset building needs
old age need
children need
family need
Page 33
21-30 31-40 41-50 51-60
asset building
needs
4 10 13 7
old age need 2 5 12 17
children need 8 15 7 3
family need 7 16 15 15
Bharti – Axa Life Insurance
Table-3
Attitude towards investment instruments at different life stages
Insurance policy Mutual funds Shares0
2
4
6
8
10
12
20-30
30-40
40-50
50-60
Page 34
21-30 31-40 41-50 51-60
Insurance
policy
2 7 9 7
Mutual
funds
7 6 7 10
Shares 11 7 4 3
Bharti – Axa Life Insurance
Table-4
Numbers of policies hold by different life stages
0 Policies
0-3 Policies
3-5 Policies
5 and above
0 2 4 6 8 10 12 14
51-60
41-50
31-40
21-30
21-30 31-40 41-50 51-60
0 Policies 12 6 2 0
0-3 Policies 5 5 8 2
3-5 Policies 1 3 7 9
5 and
above
2 3 5 10
Page 35
Bharti – Axa Life Insurance
Table-5
Flexil
ityib
Diversi
fication
Secu
rity
Return
on inve
stment
Requirement o
f funds
Transp
arency
Liquidity
Control o
ver fi
nancia
l futu
re0
10
20
30
40
50
60
1 2
3 4
5
1 2 3 4 5
Flexibility 32 48 20 0 0
Page 36
Bharti – Axa Life Insurance
Diversification 53 34 13 0 0
Security 0 0 26 43 31
Return on
investment
16 22 28 19 15
Requirement of
funds
21 27 33 13 6
Transparency 7 18 21 35 14
Liquidity 42 32 13 7 4
Control over
financial future
0 8 23 37 32
TABLE- 6
Suitable medium to gain knowledge of different financial instrument
RELATIONSHIP BETWEEN THE VARIABLES
In table- 5, Correlation is applied to find out the level of correlation between different
variables. The various variables are as follows:
a) Flexibility
b) Diversification
Page 37
21-30 31-40 41-50 51-60
Personal reference 17 10 7 15
Financial advisor 0 10 10 5
Telephonic 0 0 0 0
Advertising (T.V.,
Newspaper 3 0 3 0
Bharti – Axa Life Insurance
c) Security
d) Return on investment
e) Requirements of funds
f) Transparency
g) Liquidity
h) Control over financial future
Correlations are shown in the Graph below:-
-1
-0.6
-0.2
0.2
0.6
1
Correlation
Correlation
Highly Correlated variables are:
Flexibility & Diversification
Flexibility & Return on investment
Security & Transparency
Return on investment & Requirement of funds
Less Correlated variables are:
Flexibility & security
Diversification & Security
Transparency & liquidity
Page 38
Bharti – Axa Life Insurance
Liquidity & Control over financial future
Control over financial future & Diversification
On the basis of correlation between various variables, interpretation can be done that:
1) The highly correlated variables are dependent on each other. They have a direct effect on
each other. If one variable will increase another variable will also automatically increase.
2) The less correlated variables have an inverse effect on each other. If one variable will
increase then another will automatically decrease.
CHAPTER 6
FINDINGS AND ANALYSIS
On age group 21-30
After analyzing the findings derived from the questionnaire we come across to some
interesting facts.
60% of the respondents from the age group 21-30 do not hold any life insurance policy at
all and also none of them hold more than 5 policies. (Table-4)
Page 39
Bharti – Axa Life Insurance
This age group is more attracted towards share market with 55% and mutual funds with
35%. (Table-3)
The various needs at this age group are very low. (Table-2)
This may be due to various reasons.
The primary reason being maximum percentage of this age group are not married and do
not have children so do not have any kind of a responsibility towards family.
Secondly most of them are still parasites and dependent on their parents for living. A small
extent is working but do not have sufficient fund to take a life insurance policy.
They have high risk takers and want to earn quick money so are more interested in the
share market.
They have a notion that they will live long and no unavoidable circumstances can hamper
their life.
On age group 31-40
Again moving towards the age group 31-40 we can observe that 40% of the respondents
hold 3-5 policies and 25% have 0-3 policies and 10% have more than 5 policies. (Table-4)
From table-3 we can analyze that the number of people favoring insurance over other
investment instruments have increased.
Table-2 exhibits that the various needs have also increased to a great extent. The major
needs in this age group have been children need and family need. Asset building need has
also shown a tremendous increase.
There has been a growth of about 100% in each need in this age group.
The reasons for these shifts may be:
The mass populations in this age group are married and even have a child or two. They
now being the bread earners for their family have a sense of responsibility towards them.
People at this stage generally start earning a good living and can afford to invest in policies
Since they are earning well so they can invest in policies to save tax to some extent.
Page 40
Bharti – Axa Life Insurance
On age group 41-50
Now in age group 41-50, 45% have over 5 policies and 35% have 3-5 policies. (Table-4)
Table-3 clearly shows that there has been a shift of interest from other financial instrument
to insurance. About 45% believe investing in insurance.
There has been a 140% increase in the old age policy need as compared to age group 31-
40.
( table-2)
About 50% fall in the children need policies can be observed.(Table-2)
This may be for the following reason:
The offspring’s are already grown up and investment for their benefit has already been
made in the previous stage.
They start thinking about their old age and after retirement financial solution.
On age group 51-60
In the age group 51-60, 50% of them hold more than 5 policies. (Table-4)
The primary needs being old age and family need and critical illness.
Children need has fallen by 80%.(table-2)
The asset building need has fallen by 50% from the previous age group
This age group least wants to invest into shares
The various reasons may be:
He wants to secure his financial future when he retires from his job or takes leave from his
business so that he is self dependent.
Their children are already grown up and self dependent with their own family.
They want to secure themselves towards any kind of critical illness.
The risk taking ability decreases and want safe and secure returns
SUMMARY
Page 41
Bharti – Axa Life Insurance
The age group 41-50 takes most of the insurance policies
Requirement of Old age need policies increase in number with the increasing age.
The age groups 31-40 and 41-50 are most interested in asset building needs and family
needs.
The age group 31-40 is most interested in children need and family need and maximum in
covering future cash needs.
The age groups 31-40 and 41-50 also take insurance to take the benefit of tax relaxation.
Comparing the amount of investment different age groups would like to make in different
financial instruments i.e. mutual funds insurance policy and shares, given 100000/-. The
mean value of all the respondents in different age group were taken
21-30 31-40 41-50 51-60
Insurance 10000 35000 45000 35000
Mutual funds 35000 30000 35000 50000
Shares 55000 35000 20000 15000
47% of the respondents like to take decision on various financial instruments by consulting
a financial advisor.
37% of the respondents feel personal reference most reliable source to take an investment
decision
A very large proportion of the respondents perceive insurance to be less flexible compared
to mutual funds and shares.
They also feel it gives the least scope to diversify.
They are also not satisfied with the liquidity aspect of insurance.
Insurance scores high on attributes like security and control over financial future and
scores average on attributes like requirement of fund, rate of return and transparency.
Page 42
Bharti – Axa Life Insurance
CHAPTER 7
SUGGESTIONS
To retain customer, company should design such insurance policies that contain the
composition of the features having high correlation. Due to this, customer will attract more
towards insurance rather than other investment.
A few of the innovations should be based on specific needs at certain life stages.
Consumers are often migrated to these newer policies. The Critical Illness Plan should be
introduced as a response to a stated need of consumers. The differentiator here is clearly
different in the number of illnesses it includes
Unlike other categories, customer retention in the insurance business has not yet been
under serious consideration. Insurance as an industry till date has adopted a strategy of
“one time customer”, and is the same with Bharti Axa, but the concept should be revised
and “life time customer” Strategy should be adopted for long term sustainability and
growth of the company.
Page 43
Bharti – Axa Life Insurance
The company has to begin a huge database monitoring exercise with annual statements /
mailers to the customers and updating their databases. This can also be used for cross
selling of different policies at different life stage of the customer
CHAPTER 8
APPENDIX
BIBLIOGRAPHY
Times of India
Skees, J., Hazell, P., Miranda, M.. 1999. New Approaches to Crop Yield Insurance in
Developing Countries.
Business Research Methods, Cooper & Schindler
S. Balchandran, IRDA, IC-33 LIFE INSURANCE
Financial Express
Page 44
Bharti – Axa Life Insurance
Business Today
WEBSITE REFERENCE
http://www.irdaindia.org/
http://www.licindia.com/
http://www.bharti-axalife.com/
http://www.lifeinscouncil.org/
www.iinvestor.com
www.google.com
www.insure.com
www.financialexpress.com
ANNEXURE
Name: __________________________________Occupation:_________________
Address: _______________________________
Page 45
Bharti – Axa Life Insurance
Age: 21-30 31-40 41-50 51-60
Gender: Male Female
Income: 1.5-3 3-5 5-10 10 above
1) Do you hold a life insurance policy?
Yes
No
2) If no, why have you not taken any life insurance policy?
Not aware
I don’t require it
Have other investment options
Lack of fund
Planning in near future
3) Now being aware of life insurance why would you take a life insurance policy?
(Can give multiple choices)
To cover Future cash needs
Tax benefit
As an investment instrument
As an angel of mercy
As a hedge against old age
4) If yes how many life insurance policies do you hold at present?
___________
5) If yes what was your main concern for taking a life insurance policy?
Investment
Tax benefit
Purely insurance
6) What were your needs when you had taken life insurance policies? (Can tick multiple choices)
Page 46
Bharti – Axa Life Insurance
Family need
Children need
Old age need
Asset building need
Assuming that life insurance policy is purely an investment option please answer the
following questions
7) If you hold a policy please rate the benefits in insurance policy compared to investing in
shares market and mutual funds on scale of 1-5 (where 1 being the least and 5 being the
most?)
Flexibility 1 2 3 4 5
Diversification 1 2 3 4 5
Security 1 2 3 4 5
Return on investment 1 2 3 4 5
Requirement of funds 1 2 3 4 5
Transparency 1 2 3 4 5
Liquidity 1 2 3 4 5
Control over financial future 1 2 3 4 5
8) Given a certain amt of money where would you invest, assuming that insurance is purely
an investment option?
Life insurance
Mutual funds
Share market
9) Suppose you have 100000/- of rupees in spare, how much would you invest in the
investment options state below?
Life insurance __________
Mutual funds __________
Share market __________
Page 47
Bharti – Axa Life Insurance
10) What would be the reason for above decision? (30 Words Max)
11) Which medium do you find more suitable to gain knowledge about different financial
instruments?
Personal reference
Financial advisors
Telephonic
Advertisement (T.V, newspaper)
12) Please give a few suggestions as to how we can make life insurance a better investment
option compared to mutual funds and share market
BIBLIOGRAPHY
S. Balachandran, (2009), IC-33 Life Insurance, Shri S.J Gidwani Publishers, Mumbai
www.irdaindia.org
www.bhart-axalife.com
www.wikipedia.org
www.ibef.org
Page 48
Bharti – Axa Life Insurance
The opportunity
About 2/3 of the Indian population is ‘insurable” High % of population is uninsured or
underinsurance.
We Indian are “natural savers” Indians save the maximum in the world.
Those ‘insured’ are ‘underinsured’.
Page 49