A SUMMER TRAINING REPORT

IN

BHARTI-AXA

LIFE INSURANCE COMPANY

ON

TO STUDY CUSTOMER AWARENESS AND

SATISFACTION LEVEL FOR THE
INSURANCE POLICIES

Submitted to:
Ms. Seema walia
Submitted By:
Jyoti sharma
 ACKNOWLEDGEMENT

No man is indispensable but there are certain mortals without whom

the quality of work suffers. Their guidance becomes indispensable in
acquiring quality results.

My sincere thanks to my internal guide Mr Radha Krishnan Mangla

(Agency sales manager) Bharti-AXA, whose excellent guidance,
encouragement & patience has made possible the successful completion
of my project.

Last but not least, sincere thanks to the staff of Bharti-AXA, for their
ever willing help.

I am thankful to MISS SEEMA WALI (Internal guide) AMITY

BUSINESS SCHOOL for cheerfully and generously giving his time, advice
and efforts and also for sharing his experiences with me, which helped in
completion of my project.

JYOTI SHARMA

BBA 5TH SEMESTER

 PREFACE

During this project I fully realized this and come to know about the present
real world of insurance. Since it include all the activities involved in selling
insurance products directly to financial customers. I am pleased to know
about the customers’ wants and various activities in the real world of
insurance product.

The Subject of Study is A STUDY OF INSURANCE POLICIES AND

ACTIVITIES OF BHARTI-AXA LIFE INSURANCE. I have done this by
applying various tools like Tele calling, and through direct interaction with
customers.

The report contains first of all brief introduction about BHARTI-AXA Life
Insurance. Then it throws some light on the insurance policies and plans
provided by BHARTI-AXA Life Insurance.
 TABLE OF CONTENTS

1. Introduction to Industry
6
2. Introduction to Company 19
3. Research Methodology
37
a) Title justification 38
b) Objective 39
c) Scope of the study 39
d) Significance of the study 39
e) Research design: 40
f) Sampling Methodology 41
i. Sampling unit
ii. Sampling technique
iii. Sampling area
iv. Sample size
g) Limitation
4. Facts and Findings 42
5. Data Analysis and Interpretation 50
6. Recommendations
63
7. Conclusion
65
8. Bibliography 67
9. Annexure
69
a) Questionnaire
70

EXECUTIVE SUMMARY

This project was undertaken in BHARTI-AXA Life Insurance Company

for 6 weeks for partial fulfillment of graduation degree in Business
Management from AMITY BUSINESS SCHOOL,LUCKNOW. The main
objective of BHARTI-AXA Life Insurance in current scenario in life
Insurance Industry and through consumer feedback survey finds out the
customer perception about its brand image and their satisfaction level.

I was working under Mr. Radha Krishna Mangla, Agency Sales Manager
and my first job was to spend some time in the company and also study the
various insurance products in details in order to have knowledge of BHARTI-
AXA Life Insurance Company’s available products and plans. Then based on
this exercise I was told to prepare a questionnaire which would be used in
order to extract competitive information from the consumers available in the
market. This was a common exercise done by all summer trainees on the
same project and we collectively came up with a sample questionnaire and
also with the idea of having a feedback form too which would be filled by us
and would actually help in getting the information which we cannot directly
ask from the consumers but, could be found out through observation.

This idea was readily accepted by our mentor and then I had to conduct a
study based on that. After his approval, I made some changes and came up
with the final questionnaire and feedback form.

The survey was done very extensively. I had to cover large and large number
of people.

The experience of survey was very close to making an actual sales call
because many a times there were respondents who wanted to know their own
benefit from such a study and why they should give all this information. It
was a challenging task and required a lot of creativity which made the project
more exciting
Introduction to life Insurance

Life insurance offers a way to replace the loss of

income that occurs when someone dies (usually the person who produces the
majority of income in a family situation). It is a contract between you as the
insured person and the company or "carrier" that is providing the insurance. If
you die while the contract is in force, the insurance company pays a specified
sum of money free of income tax — "cash benefits" — to the person or
persons you name as beneficiaries.

• Life insurance - Purchase policy; the insurance company promises to pay a

lump sum at the time of the policy holder’s death, or sometimes while they
are still alive.
• Purpose of life insurance: Protect someone who depends on you from
financial loss related to your death.
• Other reasons are.
 To leave as part of your estate.
 To save money for retirement or for income or education for children.
 To make charitable bequests upon your death.
 To pay off a mortgage or debts at the time of death.

The Principle of Life Insurance

• Mortality tables provide odds on your dying, based on your age and
sex.
• Your premium is based on your life expectancy and the projections for
the payouts for persons who die.
Determining Your Life Insurance Needs –
Ask Yourself...
 Do you need life insurance?
– Do you have people you need to protect financially?
– Do you have a partner who works?
 What are your objectives for life insurance?
– How much money do you want to leave your dependents should
you die today?
– When do you want to retire, and what income do you think
you’ll need?
– How much will you be able to pay for your insurance program?

Buying Life Insurance

 When you buy life insurance, you want coverage that fits your needs
and your budget.

 Decide how much you need, for how long and what you can afford.

 Examine what kinds of policies are available to meet your needs and
pick the one that best suits you.

 Compare what different companies charge for the same kind of

policy and amount of insurance you want.

Finding a Low Cost Policy

 Do premiums or benefits vary from year to year?

  How much cash value builds under the policy?
 Are premiums, benefits or interest rates guaranteed or subject
 to change by the company?
 What is the effect of interest on money paid and received at
 different times on the policy?
Good Life Insurance
A good life insurance program does more than just replace the
loss of income that occurs if you die. It should also provide money to cover
the new costs that arise after your death — funeral expenses, taxes, probate
costs, the need for housekeepers and child care, and so on. And these cash
benefits should provide for your family's future needs as well, including
college education for your children and part or all of your spouse's retirement
needs. In almost all cases, your beneficiary can use the cash benefits in the
way he or she sees fit, without restriction.

Estimating Your Life Insurance Requirements

• The Easy Method

o Typically, you will need 70% of your salary for seven years while
your family adjusts.

• The DINK (dual income, no kids) Method

• The “Nonworking” Spouse Method

o Multiply the number of years until the youngest child reaches 18 by

$10,000.

• The “Family Need” Method

 o More thorough than the first three because it also considers
employer provided insurance, Social Security benefits, and income
and assets.

Two Types of Life Insurance Companies

1. Stock life insurance companies are owned by the shareholders.

– 95% are of this type.

– Sell non-participating policies.
– If you want to pay the same premium each year, choose a non-
participating policy with its guaranteed premiums.

2. Mutual life insurance companies

– Owned by the policyholders.

– 5% of policies are from this type of company.
– With participating policies the premiums are higher than non-
participating policies. However, part of the premium is refunded
to the policyholders annually. This is called the policy dividend.

LIST OF LIFE INSURERS (AS OF SEPT, 2006)

Apart from Life Insurance Corporation, the public sector life insurer, there are
14
other private sector life insurers, most of them joint ventures between Indian
groups and global insurance giants.

Life insurer in public sector

1. Life Insurance Corporation of India

Life insurers in private sector

1. Bajaj Allianz Life

2. Tata AIG Life
3. ICICI Prudential Life Insurance
4. HDFC Standard Life
5. Birla Sunlife
6. SBI Life Insurance
7. Kotak Mahindra Old Mutual Life Insurance
8. Aviva Life Insurance
9. Reliance Life Insurance Company Limited - Formerly known as AMP
10.Sanmar LIC
11.Metlife India Life Insurance
12.ING Vysya Life Insurance
13.Max Newyork Life Insurance
14.Sahara Life Insurance - Now they are not into business
15.Shriram Life Insurance
16.Bharti AXA Life Insurance Co Ltd

AGENTS Role
The main responsibility is to identify the prospective policy holder. To
convince him & make him understands Life Insurance. Thus, selling a life
insurance policy by helping him to enter into a contract with Life Insurance
Company.

Some of the Qualities we seek are:

• Self-motivation
• A master communicator
• A go-getter
• A graduate
What does an LIC agent do?
• They are mostly first contact and help individuals, families, and
businesses select insurance policies that provide the best protection for
their lives, health, and property.
• Insurance sales agents who work exclusively for one insurance
company are referred to as captive agents.
• Insurance sales agents, commonly referred to as “producers” in the
insurance industry, sell one or more types of insurance, such as
property and casualty, life, health, disability, and long-term care
• Life insurance agents specialize in selling policies that pay
beneficiaries when a policyholder dies.

People Involved in the Insurance Policy Sale

The People Involved In these processes are:-

1. Actuarial - An actuary is a business professional who deals with the

financial impact of risk and uncertainty. They are The People who
decide the premium to be paid on a policy based on various factors like
demographics and others. They Constitute .5% of the total people
involved.

2. Underwriters – They are the people involved in the checking of the

data mentioned by an individual in the policy. They also conduct a
health check. After this they offer various policies based on the
outcomes of these checks. They constitute 1.5% of the total people in
the process.
 3. Sales People – The Major chunk of people lies in the sales. They are
the people who have a direct contact with the actual customer and try to
convince them to purchase a policy explaining the various feature of
the policy. They constitute the most, that is 98% of the total people
involved in the process.

Rated Policy

Statement in which a life insurance applicant is charged a higher-than-

standard premium to reflect a unique impairment, occupation, or hobby, such
as a history of heart disease, a circus performer, or a sky diver.

• PAYMENT OPTIONS

Premium Payment Options Customers - Policy Renewals Options

Renewing an insurance policy has never been so easy. Choose from any of
the 10 options listed below to pay your premium. We will send the premium
receipt to your mailing address.
The
Ways of

making Premium Payments

MARKET PLUS PlAN

Is a unit linked pension scheme (ULIP) wherein the pension is payable after
a specified period.

Features:
1. Option to pay one time premium
2. Critical illness benefits minimum Rs 50,000 and the maximum Rs 10 lakh
3. Accident benefits from Rs 25,000 up to a maximum of Rs 50 lakh.
4. Switch from one type of fund to another up to four times a year.
5. Premium top up.
6. Policy can be taken with or without risk cover.
7. Net Asset Value (NAV) declared on a daily basis.

Benefits:
A) On Vesting:

On vesting of the policy, the Fund Value will be utilized to provide a pension
based on the then prevailing Annuity rates. An option to commute up to one
third of the payable benefit in a lump sum is available.

B) On Death:
In event of the unfortunate death of the policy holder the Fund Value along
with the Riders, if any, will be payable in a lump sum or as a pension.

Fund Types:
1.Bond Fund
2. Secured Fund
3. Balanced Fund
4. Growth Fund

Change In Fund Type (Switch)

The plan also allows a policy holder to switch from one type of fund to
another up to four times a year, free of charge.

Options:-
Three attractive benefits, viz. –
 • Life Cover

• Accident Benefit

• Critical Illness Benefit

are available as options or riders. Life option is available within certain

limits depending on the age at entry of the life assured. The other options are
available to all proposers who have opted for Life Cover. The quantum of the
risk covers can also be reduced; subject to the minimum limits, once a year. A
policy can be taken without any of the riders also.

Revival
An attractive feature of the plan is that provided the premiums have been paid
for a minimum period of three years, all the riders under the policy will
continue for a period of two years from the due date of first unpaid premium
by deduction of relevant charges from the policy fund. This period of two
years is called the “Revival Period”. Further, if premiums have been paid for
a minimum period of three years, revival can be effected merely by paying
the arrears of premium, within the Revival Period.

Payment of Premiums
Premiums can be paid in a lump sum (single premium) and also by monthly
(ECS), quarterly, half-yearly and yearly modes.

Payment Options
Payment at cash counter –
Online Payment Gateway is LIC’s initiative to provide you with on demand
service within a few clicks! You can now have many of the functionalities
that were available only at a branch office, online at your fingertips.

The payment gateway (PG) initiative is an important component of the offer.

It provides for real-time payment of renewal premium-dues through the
portal. This functionality is available only to registered customers who have
enrolled their policies.

You can pay LIC premiums using Net Banking accounts with any of the
following banks:-

• Bank of India
• Union Bank of India
• Punjab National Bank
• State Bank of India
• State Bank of Indore
• HDFC Bank
• ICICI Bank
• Axis Bank
• Citibank
• IDBI Bank
• Centurion Bank of Punjab (erstwhile Centurion Bank)
• Centurion Bank of Punjab (erstwhile Bank of Punjab)
• IndusInd Bank
• ABN AMRO Bank

NOTE: This facility is available for all non-ULIP policies.

Credit card payments are not accepted under this payment facility.

Payment through alternate channels:-

To pay your premiums through Internet, choose among any of the following service
providers:
Authorised Banks:-
• HDFC Bank
• ICICI Bank
• Bank of Punjab
• UTI Bank
• Federal Bank
• Corporation Bank
• Citibank

Authorized Service Providers (available only in select cities):-

• BillJunction.com
• BillDesk.com

TAX BENEFITS
Tax Benefits available for various Life Insurance plans.
The aggregate amount of deduction under all the relevant sections viz. section
80C, section 80CCC and section 80CCD shall not, exceed
Rs.1 Lakh

1) Deduction from Income for payment of Premium (Sec. 80C).

(a) Life Insurance premia:

The insurance premia paid for a policy is eligible for deduction. The
premium paid should not be in excess of 20% of capital sum assured.

(b) Contribution to Deferred Annuity Plans:

The premia paid for a Deferred Annuity; provided such contract does
not contain a provision to exercise an option by the insured to received
a cash payment in lieu of the payment of annuity is eligible for
deduction.

(c) Contribution to Pension/Annuity Plans:

Contribution to New Jeevan Dhara-I and New Jeevan Akshay-V
Schemes of LIC are qualified for rebate under this section.

2) Income tax exemption on Maturity/Death Claims proceeds under

Section 10(10D)
Al
l the benefits payable under a Life Insurance policy are tax free. However in
cases the premium paid in excess of 20% of the capital sum assured within a
year, benefits paid excess of premiums will be taxable. The benefits from a
key man Insurance policy and any sum received under Sec 80DD, Sub-
section (3) are also taxable.

3) Jeevan Nidhi Plan & New Jeevan Suraksha - I Plan (U/s. 80CCC)
Amounts paid from the taxable income to premiums of the above annuity
are deductible.

4) Deduction under section 80D

Medical Premium paid for a Health Insurance policy is deductible to the
extent of Rs. 15000 for an assessee and/or his family members’ policy/s. A
separate exemption to the extent of Rs. 15,000 for premiums paid for
an assessee’s parents is also available. If any one or both of the parents are
Senior citizens, then an enhanced exemption limit of Rs. 20,000 is available.
Section 80D also covers payment of premium exclusively for Critical Illness
Rider.

5) Jeevan Aadhar Plan (Sec.80DD)

Premium paid for LIC’s Jeevan Aadhar Plan (for the maintenance of an
handicapped dependent) is eligible for deduction from the total income to the
extent of Rs.50,000 and to the extent of Rs.75,000/- where handicapped
dependent is suffering from specified severe disability.

6) Exemption in respect of commutation of pension under Jeevan

Suraksha & Jeevan Nidhi Plans. (Section 10(10A):
A payment received by way of commutation of pension from Jeevan
Suraksha & Jeevan Nidhi Annuity plans is exempt from tax
 MARKETING LIFE INSURANCE
An Introduction To Life Insurance Marketing

Life Insurance Marketing is one of the most strenuous jobs for those who are
involved in the insurance marketing.. It is because of the ever lasting conflict
between the insurance companies which want to profit the most and the
insured person who wants to get as much compensation as possible from the
insurance company. Commissions for the Life Insurance companies are very
high and they seldom make profits out of the policies. Also the insurance
policy needs to be transparent so that the potential customer understands it
totally and should not feel that they have been treated unfairly by the
insurance company.

Reasons For Life Insurance Marketing

The Life insurance companies were paid very little premiums by young
children or healthy people and thus the scope for profit was very small and
those who paid high rates of premium were the older beings who died and the
Life insurance companies compensate for that. However nowadays the Life
insurance premiums are almost the same for an young adult and an old person
who just had a major operation.

As the Life Insurance Marketing Companies already deals with this type of
a scenario, what one can do is to change the public perception about the Life
insurance companies. One can connect himself or herself with companies
whose workers need a plan for Life Insurance. One can also go to crowded
places and advertise for the Life insurance company. The Life insurance
companies also offer fliers and hanging banners. One can also offer free Life
check in a reputed place to the insured for at least once. One should always
give the life insurance policy holders existing a chance to prefer the
marketing techniques that the insurance company is presenting. If the policy
holder does this at a regular basis then the company has a high chance of
succeeding.
This is making the competition much tougher for the Life insurance
companies as most of the companies offer similar types of premiums and
facilities. So it has become very important for the life insurance companies to
concentrate on Life Insurance Marketing and attract as many people as
possible towards their company.

The Life Insurance Companies prefer to go for Group Life Insurance for a
group of people from a particular company or a family so that they get a
group of customers and even if they compensate for some of them for various
reasons they usually make it up with other's premiums. They also get less
papers to control and also they provide better facilities for their clients. So to
promote this type of policy they need to have social and industrial
connections. Life Insurance market helps developing that. Even for other
policies like term life insurance and permanent life insurance one needs to be
aware of making people realize the profits of the policy by various means
provided by marketing agencies.

Life Insurance Marketing Strategies

• A very common way to promote a Life insurance company through

Life Insurance Marketing is to make the name of the company
familiar to others by means of television commercials, handling out
pamphlets, hanging banners in populated areas and by providing
exciting offers.

• Telephone marketing is another way of Life Insurance Marketing. One

can see the telephone companies send messages about various offers
and they even make phone calls. Web Insurance Marketing is another
good strategy to promote insurance policies. The pop ups that one sees
while using Internet are actually a very effective way of sending
messages across the potential insurance customers.

• One should listen to the existing Life Insurance Policy Holders as well
as the potential Life insurance policy holders and listen to what people
who actually matters have to say. One common problem that the
insured persons face is that the insurance companies do not inform its
clients about the hike in the premium rates. These things should be kept
in mind. Not only that, a client should be informed about everything
 related to his policy and the Life insurance company should keep the
transparency as much as possible.

• Community Life Insurance Marketing is another different way to get

promotion and a high recognition for the Life insurance company.
Eminent workers join local community institutions, such as Chamber of
Commerce, and by signing up there one can help out various projects
that take place. These kinds of activities and social works on behalf of
the Life insurance company helps the company to get free publicity as
their names are published in news paper and in media also. Doing
charity works also helps the Life insurance companies to come across
various people who act as volunteers and can act as their potential Life
insurance clients. People also like to deal with like minded people and
companies and this is how many deals are made.

• A Life Insurance Company should not charge different Life insurance

client different charges for the same policy. This kind of policy gives
the Life insurance policy holders the feeling that they are being treated
unfairly and also that the Life insurance companies are only looking for
profits and not the betterment of customer welfare.

• When a Life insurance claim is filed, especially for a very big hefty
amount, the Life insurance company should help out the policy holder
in processing out the paperwork. One should not let bureaucracy enter
and make it so difficult for the one making the claim so that he gives
his claim .This has always been a common tactic on the insurance
company's part to avoid paying claims claimed by the policy holder.
This though makes a short term profit for the company but it hurts in
the long run as the reputation of the company is hampered severely.

• People in this Life insurance industry should always try to keep in

constant contact with the existing customers as well. The competition
in the insurance market is so fierce today that no company wants to
loose out on a customer to another company. Clients who are not
contacted for a longer period of time normally fail to remain loyal to
the insurance company and look for a different Life insurance
company. The company can keep the records of the client's birthday
and days like anniversary and sent him or her small tokens of love or
loyalty at a regular basis. If the company can afford a little more it can
 send dinner coupons to the Life insurance policy holder. These things
play a major role and can be considered as an effective Life Insurance
Marketing strategy.

• May be the most crucial thing in insurance marketing is to always

speak about unity and honesty while dealing with a business. A Life
Insurance Holder can find so many frauds in various life insurance
companies today, that life insurance customers are going for products
and services which are trustworthy to them. Feeling safe is about
insurances and other things are most important as far as the insurance
holder is concerned. So, if a company remains loyal to its customers it
will itself do Life Insurance Marketing for itself.

INTRODUCTION

TO
 INDUSTRY

Introduction to Industry

Indian economy is in transition over the last ten years owing to the initiation
of major economic reforms affecting almost all sectors. The paradigm shift
from a mixed economic organization to a market oriented organization has
exposed all sectors to an intense competition. Insurance being one among the
players in the financial services sector. Indian insurance business is the most
significant one among them. The industry covers two dimensions viz. Life
insurance and General insurance. While Life Insurance Corporation (LIC) of
India is a financial intermediary which mobilizes people’s savings and invests
large amounts of premiums, the General Insurance Companies (GIC) does not
collect savings, yet they raise crores of rupees from premiums. General
insurance deals with exposure of risks to goods and property, whereas life
insurance is a way to meet the contingencies of physical death and economic
death. In case of premature death of the assured, the proceeds of policy are
paid to the beneficiaries and annuities protect the assured against economic
death when he lives too long to arrange for his necessities. In simple
language, insurance promises a compensation of monetary loss sustained by a
particular person, due to the damage or destruction of a particular piece of
property owned by him, provided it happens due to certain courses. In other
words, it is perfectly a simple promise to make good the loss.

PRIVATE PLAYERS IN THE MARKET

The new insurance companies used all channels of advertising from

newspapers and the television to insurance agents and direct mailers. The new
companies focused their campaigns primarily on building an image of
trustworthiness and reliability for themselves. Their advertisement focused on
insurance as an investment option and not a mere tax saving tool. Most of
these advertisements carried messages like the family’s happiness. It has been
more than 5 years since private insurance companies’ lunched operations in
India, which is depicted in the Table given below:
 PRIVATE PLAYERS IN THE INDIAN INSURANCE MARKET

Company Indian partner Foreign insurer Area

Birla Sunlife Aditya Birla Sunlife, Canada Life
Group
Om Kotak Kotak Mahindra Old Mutual, South Life
Finance Africa
Bharti-AXA Bharti Group AXA, SA Life

ICICI-Prudential ICICI Prudential, UK Life

Max New York Max India New York Life USA Life
Tata-AIG Tata group AIG USA Life & Non
Life
ING Vysya Vysya Bank ING Insurance, Life
Netherlands
Aviva Dabur CGU life, UK Life
Metlife India Jammu & Metlife, USA Life
Kashmir Bank
Bajaj Allianz Bajaj Auto Allianz Life

Type of Insurance

The global insurance industry helps policyholders to shield themselves

from potential risks, and covers everything from property protection to
vehicle, medical, health and life insurance.

The insurance industry is one of the most important financial services

industries in the world. There are two broad sub-divisions of the insurance
industry – the life insurance industry and the general insurance industry.

The life insurance industry has been established to help dependents survive
the loss of the family breadwinner. There are five main types of life
insurance:

1. Term Insurance. Insurance is provided for a specific term, such as 30

years. If the policyholder dies during that period in which he has taken up the
policy then a pre-specified amount of money is paid to the beneficiaries. If
they are still alive at the end of the period, no money is paid out. There is no
investment component.

2. Whole Life Insurance. A form of term insurance in which the policy is in

effect for the entire duration of the policyholder’s life, not for a specified
term.

3. Universal Life Insurance. Includes a cash account component. Any

monthly amount paid in that is above the minimum premium will be invested
and will grow in value during the term of the policy. At the end of the term
the surrender value is the size of the investment in the cash account, minus
any charges applicable, and this amount is paid to the policyholder. If the
policy holder dies during the term then the beneficiaries receive the death
benefits.

4. Variable Life Insurance. Similar to universal life insurance, except

that the cash account is managed by the policyholder, who can decide
where to invest the additional funds. They are normally invested into
mutual funds or unit trusts.

5. Endowment Policies. These are insurance policies in which a lump sum

is paid out at the end of the pre-specified term, or when the policyholder
dies if that is during the term of the policy. Traditional With Profit
Endowment Policies pay out a minimum specific sum, the sum assured.
This amount can be increased through investment performance. Since this
 policy type has additional benefits, it carries higher premium costs. The
general insurance industry consists of all the available forms of insurance,
other than life insurance. This includes a number of well known industries
such as vehicle insurance, , home and content insurance, disability
insurance, travel insurance, term insurance, medical insurance, dental
insurance, keyman insurance, renters insurance, farmer insurance and
general insurance.

Some very important terms in the context of the insurance industry are:

Insurance benefits- Insurance Benefits encompass the facilities associated

with buying of insurances. Insurance is mainly a instrument used by
consumers for hedging the future contingent risks related with life, health and
non-life general issues. Insurance benefits help the policy
holder or beneficiary in combating with the losses or hazards associated with
him/her.

Insurance broker-Insurance Broker is a person having specialized

knowledge in the field of finance who play the important intermediary role
between the customer and the insurance company.

Insurance policy-In insurance, the insurance policy is a contract (generally

a standard form contract) between the insurer and the insured, known as the
policyholder, which determines the claims which the insurer is legally required
to pay. In exchange for payment, known as the premium, the insurer pays for
damages to the insured which are caused by covered perils under the policy
language. Insurance contracts are designed to meet specific needs and thus
have many features not found in many other types of contracts. Since
insurance policies are standard forms, they feature boilerplate language which
is similar across a wide variety of different types of insurance policies.

The insurance policy is generally an integrated contract, meaning that it

includes all forms associated with the agreement between the insured and
insurer. In some cases, however, supplementary writings such as letters sent
after the final agreement can make the insurance policy a non-integrated
contract. One insurance textbook states that "courts consider all prior
negotiations or agreements ... every contractual term in the policy at the time
of delivery, as well as those written afterwards as policy riders and
endorsements ... with both parties' consent, are part of written policy". The
textbook also states that the policy must refer to all papers which are part of
the policy. Oral agreements are subject to the parol evidence rule, and may not
be considered part of the policy. Advertising materials and circulars are
typically not part of a policy.[2] Oral contracts pending the issuance of a
written policy can occur.

Insurance premium-Insurance Premium is the payment made by

the policy holder to the insurance company on a regular time span. This
payment has to be made by the insured person till the maturity of the
insurance. Insurance Premium may vary from company to company along
with the coverage limit. Thus, while selecting an insurance policy one should
be very careful and should compare all the possible options through online
website services. The customers are advised to compare the quotes offered by
the different insurance companies and select from the wide variety of
options available to them.

Insurance claim-Insurance Claim is the request of the

insured policy holder/beneficiary from the insurer/insurance issuing
company for financial reimbursement whenever he/she suffers a loss of the
insured property/life/health/etc. But the claim should be done in accordance
with the specifications of the insurance policy/contract.

Insurance agent-Generally Insurance Agents gives information of the

insurance products of companies. Insurance agents are employed by the
companies and the company gives necessary training to the agents.Insurance
agents are found both in the life insurance sector as well as non-life insurance
sector.

There are numerous countries with flourishing insurance industries of their

own. In Asia, countries like China, India, Indonesia, Kuwait, Japan,
There are numerous countries with flourishing insurance industries of their
own. In Asia, countries like China, India, Indonesia, Kuwait, Japan, Malaysia
and Vietnam have strong insurance industries.

The leading global insurance companies are:

• Zurich Financial Services,

• AXA
• Berkshire Hathaway/ Berkshire Hathaway Re
• Allianz
• Aviva
• ING Group
• Munich RE Group
• American International Group (AIG)
• Nippon Life Insurance
• Assicurazioni Generali
• PartnerRe
• State Farm Insurance Cos.
• ACE
• CNP Assurances
• Aegon
• Conseco
• Aflac
• Converium Holding
• Aioi Insurance
• Corporation Mapfre
• Allmerica Financial
• Endurance Specialty
• Ambac Finan
INTRODUCTION

TO

COMPANY
Introduction to Company

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, we

have over 5200 employees across over 12 states in the country. Our business
philosophy is built around the promise of making people "Life Confident".

As we expand our presence across the country to cater to your insurance and
wealth management needs with our product and service offerings, we
continue to bring 'life confidence' to customers spread across India. Whatever
your plans in life, you can be confident that Bharti AXA Life will offer the
right financial solutions to help you achieve them.
You would like to live your life and prepare for the future with complete
confidence. The vision of Bharti AXA Life Insurance Company Limited is to
become the preferred life insurance company in India. This vision extends to
our recruitment philosophy as well. Both the Bharti Group in India and AXA
globally enjoy the status of being a very employee focused organization.
At Bharti AXA Life Insurance, we are determined to achieve our vision
through talent who are empowered, focused on customer service, and
champions of strategic and operational excellence we at Bharti AXA Life
Insurance, design solutions which will protect you and your family and help
you realize your dreams.

zOur Endeavour is to bring to you products and services that help you lead a
confident life.

Bharti Enterprises is one of India’s leading business groups with interests in

telecom, agri business, insurance and retail. Bharti has been a pioneering
force in the telecom sector with many firsts and innovations to its credit.
Bharti Airtel Limited, a group company, is one of India’s leading private
sector providers of telecommunications services with an aggregate of 60
million customers, spanning mobile, fixed line, broadband and enterprise
services.

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.

AXA (Euronext: CS, NYSE: AXA) is a French global insurance

companies group headquartered in Paris. AXA is not the name of a single
company but a group of companies independently organized and operated
according to the regulations of many different countries.

The AXA group of companies are engaged in life, health and other forms
of insurance, as well as investment management. The AXA group operates
primarily in Western Europe, North America and the Asia Pacific region and the Middle
East.

The AXA Group encompasses five operating business segments: Life &
Savings, Property & Casualty, International Insurance (including
reinsurance), Asset Management and Other Financial Services.

AXA ranks as the 15th biggest company in the world (based on revenue) on
the 2006 Fortune Global 500 list.
The AXA Name:-
Despite being written in upper case, "AXA" is not an acronym, but was chosen
because its name can be pronounced easily by people who speak any
language. The selection criteria consisted of a short and snappy name to
convey vitality, a name that begins with the letter A so that it would appear
near the top of all lists, and something that could be pronounced easily in
every language, consistent with the group's desire for an international
presence. In 1985, Chairman and CEO Claude Bébéar chose the name AXA.

Operations

AXA in the United Kingdom

AXA trades in the United Kingdom as AXA Sun Life, AXA Insurance, AXA
Investment Managers and AXA PPP Healthcare. AXA PPP Healthcare was
created when AXA bought Guardian Royal Exchange (GRE), though it
subsequently sold the other parts of GRE to Aegon. The company also owns
the online insurer Swift cover, distribution business Bluefinand fund
managerArchitas. In January 2007 AXA was reorganised into "strategic
business units" (SBU's) aimed at competing within their specific markets.

AXA run its investment branch through AXA Investment Managers (IM).

AXA in the United States

The United States arm of AXA is AXA Equitable. AXA Equitable consists
of many subsidiaries; AXA Advisors, LLC, AXA Network, AXA Equitable Life
Insurance, Mutual of New York (MONY) (famous for the song "Mony Mony"

that the logo on its building inspired), US Financial Life, and AllianceBernstein.

On December 15 of 2006, AXA Advisors, LLC entered into agreements

with LPL (Linsco Private Ledger), the country's largest independent broker-
dealer. LPL agreed to provide brokerage, clearing and custody services on a
fully-disclosed basis. The terms of the agreements are five years, subject to
additional 24-month extensions. Services are expected to begin in August
2007.

Bharti group

Bharti Enterprises is a large Indian business conglomerate based in New Delhi,

India, operating primarily across India and in some other Countries like Sri
Lanka, Jersey, Seychelles. It was established by Sunil Mittal , one of the young and
dynamic businessmen of India. The company offers mobile services all over
India as well as in some foreign countries. The Airtel brand is the flagship
brand of Bharti.

The company was founded by Sunil Bharti Mittal along with two siblings in eary
1990s. The company was not so famous in India by its own name, rather its
brand names like Airtel and Beetel (PSTN Phone Sets) are household names in
India. The company underwent a brandreformation process and changed its
logo and corporate Image.

Bharti's primary industry is in the field of telecommunications via its subsidiary

companies Bharti Airtel (mobile telecommunications), Bharti Infratel(Passive

Telecom Infrastructure provider) and Bharti Teletech (wired telecommunication

services, Comviva Technologies and PSTNtelephone handsets).

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 service named Airtel Digital TV , Long Distance and Enterprise
services. Airtel also offers mobile services in Sri Lanka on a state-of-the art
3.5 G network.
Bharti Retail Ltd. is a wholly owned subsidiary of Bharti Enterprises. Bharti
Retail operates a chain of multiple format stores. The company’s
neighbourhood format stores operate under the "Easyday" brand and the
compact hypermarket format under the “Easyday market” brand. Recently the
company has become more involved in the food economic sectors, with a joint
partnership in the agricultural company FieldFresh .

Bharti Enterprises tied-up with Wal-Mart for opening a chain of retail stores all
over India. Though the retail chain store venture is yet to see the light, the two
companies, in August 2007, made a surprise statement that they have signed a
wholesale cash-and-carry deal. The companies would open 10 - 15 cash-and-
carry facilities over 7 years and would employ 5,000 people. Each store
would occupy 50,000-100,000 square feet.

The other retail companies of Bharti group are Bharti Retail (Holdings)
Private Limited and Bharti Retail Resources Private Limited.

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.

A subsidiary of Bharti, ’’’Telecom Seychelles Ltd.’’’ provides comprehensive

telecom services including 3G mobile services in Seychelles, under the ‘Airtel’
brand.
Comviva Technologies Limited is an India based organization providing VAS

solutions for mobile operators around the world. Comviva was formerly
known as Bharti Telesoft and took on the Comviva branding in April 2009.

Bharti Del Monte India Pvt. Ltd is a joint venture between Bharti enterprises
and DMPL India ltd(a subsidiary of Del Monte Pacific Ltd.). The company
offers fresh fruits & vegetables and processed foods & beverages in the
domestic as well as international markets. Bharti Retail Pvt. Ltd.

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.

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.

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).

Centum Learning Limited (formerly ’’’Bharti Learning Systems Limited’’’),

a wholly owned subsidiary of Bharti Enterprises, is a learning and
development organisation that specialises in the customer experience arena.

Jersey Airtel, a subsidiary of Bharti, offers mobile services in Jersey (Channel

Islands) over its full 2G, 3G and HSDPA enhanced network. The Company
brings products and services to its customers under Airtel-Vodafone brand.
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 Private Ltd. is the in-house Real Estate Arm for Bharti Group and
facilitates by extending support to the Group Companies for Identifying,
Developing and Maintaining Quality Real Estate in line with their Business
Models.

BHARTI-AXA

MISSION:

i. Customer service of highest order

ii. Value for money for customers
iii. Professionalism in carrying out business
iv. Innovative products to cater different needs of different customers
v. Use of technology to improve service standard

VISION:

To be a leader and the preferred company for financial protection and wealth
management in India.

VALUES:
 i. Professionalism
ii. Innovation
iii. Team Spirit
iv. Pragmatism
v. Integrity

STRATEGY:

i. To achieve a top 5 market position in India through a multi-

distribution, multi-product platform.
ii. To adapt AXA's best practice blueprints as a sound platform for
profitable growth.
iii. To leverage Bharti's local knowledge, infrastructure and customer base.
iv. To deliver high levels of shareholder return.
v. To build long term value with our business partners by enhancing the
proposition to their customers.
vi. To be the employer of choice to attract and retain the best talent in
India.
vii. To be recognized as being close and qualified by our customers.
 STRATEGIC DIFFERENTIATORS:

i. Strong partner Bharti provides access to customer base of more than

20 million
ii. Multi channel execution capability.
iii. Current Asia product range which is a strong match to products sold to
the mass and mass affluent.
iv. Global scale providing cost effective and speedy re-use of systems,
products and business capability.
v. Strong AXA and Bharti brands which can be leveraged to attract and
retain a high quality management team.

THE GUIDING HUMAN RESOURCES PRINCIPLES AT

BHARTI-AXA ARE:

i. Clearly define scope of responsibilities and empower people to deliver.

ii. Provide people with the means to develop their competencies.
iii. Consider individual training and development a priority investment.
iv. Build organizations that are conducive to teamwork and that involve
everyone.
v. Promote ongoing dialogue between managers and the people who report to
them.
STRATEGY ADOPTED

i. Structured sales processes

ii. Better understanding of customer needs and their assessment.
iii. Training was one of the biggest initiatives they undertook last year.
INDIVIDUAL PLANS

Bharti AXA Dream Life Pension

A Unit Linked Pension Product.

Dream Life Pension, Bharti AXA Life Insurance’s unique pension product
ensures that your retirement life is your Dream Life.

Live your Dreams! Be Life Confident.

Bharti AXA Life Aspire Life

Unit Linked Endowment Product.

Aspire Life helps you create a pool of wealth to meet your long-term needs,
while also providing you adequate protection in case the need arises.

Bharti AXA Life InvestConfident

Unit Linked Single Premium Product.

You have always strived hard to achieve the best for you and your loved ones,
so when it comes to making an investment decision, we know that you would
expect the best from it too.

Bharti AXA Life WealthConfident

A unit-linked investment cum protection policy.

Your wealth, your status ensures that you get preferential status wherever you
go. So why shouldn't your money get the same?

Bharti AXA Life FutureConfident I

A unit-linked policy which offers comprehensive protection along with

wealth creation in the long term.

Bharti AXA Life FutureConfident II

A unit-linked product which offers enhanced protection along with wealth

creation in the long term.

Bharti AXA Life SaveConfident

Traditional money back insurance product for long term savings.

Your changing life stages decide your financial milestone planning. When
you foresee intermittent financial requirements in the years to come, like
regular expenses related to your child’s education, liquidity becomes a key
aspect of your planning along with long term savings, and protection for your
family.

GROUP PLANS
Bharti AXA Life Mortgage Credit Shield
Mortgage Credit Shield is a Group Product that provides coverage to people

who have availed of a Mortgage\ Home loan\ Home equity loan from an

Institution/Bank.

Bharti AXA Life Credit Shield

Credit Shield is a Group Product that provides coverage to people who have

availed of a loan for 1 to 5 years from Group Policyholder.

Bharti AXA Life Life Shield

Life Shield is a single premium group term life insurance product.

 SWOT ANALYSIS OF THE
ORGANIZATION
Business firms undertake Swot analysis to understand the external and
internal environment. SWOT, which is the acronym for Strength, Weakness,
Opportunities and Threats, is also known as WOT-UP Analysis. Through
such an analysis strength and weakness existing within an organization can be
matched with the opportunities and threats operating the environment so that
an effective strategy can be formulated. An effective organization strategy,
therefore, is one that is capitalized on the opportunities and through the use of
strengths and neutralizes the threats maximizing the impact of weakness.

STRENGTH:

 Has sold 2 lakh policies.

 Brand power.

 Strong assets and infrastructure.

 Market share of 22.5%.

WEAKNESS:

 Industry in nascent stage.

 Awareness about private life insurance companies is very less.

 Still not very popular in rural market.

  Very few branches in the country.

OPPORTUNITY:

 Liberalization of Indian economy.

 Life Insurance sector opening up.

 Very small percentage of population insured in India One of best

products in the market.

 Global market opportunity.

THREAT:

 Lack of proper technical knowledge among the mass.

 Apprehension towards BHARTI-AXA being a private life insurance

company.

 LIC: very big player.

 Change in government policy may affect the growth and expansion of

the Insurance sector and the company.

 RESEARCH
METHODOLOGY
Research Methodology
Research comprise defining and redefining problems, formulating hypothesis
or suggested solutions; collecting, organizing and evaluating data; making
deductions and reaching conclusions; and at last carefully testing the
conclusions to determine whether they fit the formulating Hypothesis.

In short, the search for Knowledge through Objective and Systematic method
of finding solutions to a problem is Research.

TITLE

“TO STUDY CUSTOMERS AWARENESS AND SATISFACTION LEVEL FOR

INSURANCE POLICIES, WITH SPECIAL REFERENCE TO BHARTI-AXA LIFE
INSURANCE”

TITLE JUSTIFICATION

In today’s highly competitive, unpredictable and fast-changing

marketplace, organizations are challenged with improving
productivity and operational efficiency with ever-shrinking budgets.
Many executives find that running the enterprise consumes the bulk
of their energy. They lack the time and resources to manage non-
core, resource-intensive functions properly. BHARTI-AXA LIFE
INSURANCE is a huge Organization with an amazing repute and
Network; it is my esteemed pleasure to do my research work on
BHARTI-AXA LIFE INSURANCE.
RESEARCH OBJECTIVES

To find whether life insurance is still synonymous with L.I.C.

To know how many people take insurance as what it is meant for and not as
tax saving financial instrument.

To know whether people know fully about the benefits an insurance advisor
has

To know how many people are interested in becoming an insurance advisor?

To search for prospects who can become advisors and recruit and
select the best.

SCOPE OF THE STUDY

To study and analyze the customers in order to find out their

awareness power regarding various insurance policies prevailing in
the

market with special reference to Bharti-Axa Life Insurance and

rating the satisfaction level for the same.
SIGNIFICANCE OF THE STUDY

i. Significance to the Industry

The analysis and conclusions drawn by me during the course of my study can
serve as a guide to the industry people since a systematic analysis of facts has
been attempted by me.

ii. Significance for the Researcher

No professional curriculum is considered complete without work experience.
It is well evident that work experience is an indispensable part of every
professional course. In the same manner practical work in any organization is
must for each an every individual, who is undergoing management course.
Without the practical exposure one cannot consider himself as a qualified
capable manager. Entering in the organization is like stepping into altogether
a new world.

RESEARCH DESIGN

Type of Research: - Exploratory research

Exploratory Research includes Surveys and fact-finding enquiries of

different kinds. The main characteristic of this method is that the
researcher has no control over the variables; he can only report what
has happened or what is happening.

DATA SOURCES

There are two types of data.

i. PRIMARY DATA:
In this research the data is collected from respondents through questionnaire.

ii. SECONDARY DATA:

For the company information I had used secondary data like brochures, web
site of the company etc.

The Method used by me is Survey Method as the research done is

Exploratory Research.

SAMPLING METHODOLOGY

SAMPLING UNIT: -

The sample Unit taken by me is 100 people which consist of General

public of different age group, different gender and different profession.
SAMPLING AREA:-

I have covered a portion of residential area of Delhi city for the survey.

DATA ANALYSIS

AND

INTERPRETATION
Q1).State the Comparison of the distribution of occupation of the
respondents?

Ans.

Percentage of
Particulars
Occupation
Self- Employed 14%
Public Sector Employees 18%
Private Sector Employees 62%
Other 6%
 Bharti-AXA Life Insurance

others.
Self - employed 6%
14%

Emp.
Emp.
(Pubic.sector)
(Pvt.sector)
18%
62%

Interpretation –

It belonged to the employee in the private sector, 62 belong to the employee

in the private sector, 18 are self employed and 14 are in the other category.
All these 3 respondents are retired from there jobs.

Q2). Are you interested in products offered by the BHARTI-AXA LIFE

INSURANCE?

Ans.

Particulars Response Percentage

Yes 61%
No 22%
 Will think 17%

17%
Yes
22%
61% No
Will think

Interpretation –

The good thing is that atleast the corporate were quite eager to find out what
BHARTI-AXA has to offer whereas the major 39 % of the corporate were not
even interested in the products as they are quite satisfied by the LIC and they
are not in breaking their long relationship with them. The private players will
have to play a long battle in order to ensure that they are serious player in the
market.

Q3). Are you satisfied with your present insurer[Bharti AXA Life
AspireLife]?

Ans.
 Particulars Response Percentage
Yes 95%
No 5%

Interpretation –

Here is where the challenge is. Inevitably most of the players are very
satisfied with their present insurer which makes it tougher for the private
players to attract the corporate. The remaining 5 % are also not very
dissatisfied by the services but they are just open to new avenues and are
looking forward that private companies come with good offers so that they
may shift to them. Thus private players will have to be very proactive and in
this regard since LIC is the leader and BHARTI-AXA Life Insurance is
lagging behind its competitors in terms of competition.

Q4). What is people’s main concern while taking a insurance policy?

Ans .

Concern of People Response Percentage

Security 10%
Savings 70%
Tax 20%
SECURIT
TAX
Y
REBATE
10%
20%

SAVINGS
70%
Interpretation-

This pie diagram shows that People Investing more in Business for the
concern of Savings Mainly.

Q5). Where would you like to insure if given chance?

Ans.

Companies name Percentage of people

LIC 60%
ICICI 10%
BAJAJ ALLIANZ 5%
BHARTI-AXA 15%
SBI 8%
KOTAK MAHINDRA 2%

Percentage of people

8% 2% LIC
ICICI
15%
BA JAJ ALLIANZ
60%
BH ARTI-AXA
5%
SB I
10%
KO TAK MAHINDRA
Interpretation-

Thus we see that the companies are comfortable in having business with govt.
owned companies as they feel its safe & secure to have business with them
which is followed by SBI as it is the biggest bank.

Q6). Bharti AXA AspireLife satisfy your financial needs? (Please rate on the
scale of 1 to 10 with one being least satisfied)

Ans.

Response
Customers
(Ratings on scale 1-10)
I 26%
II 11%
III 21%
IV 5%
V 16%
VI 13%
VII 8%
 Response (Ratings on scale 1-10)

VII, 8%
I, 26% I
VI, 13%
II
III
IV
V, 16% V
II, 11%
VI
VII
IV, 5%
III, 21%

Interpretation-

The response of customers show that they are average satisfied and some are
also least satisfied after taking the insurance policy.

Q7). Opinion for the premiums paid for the various policies by the
customers?

Ans.

Satisfaction Levels Response Percentage

Very Low 9%
Low 10%
Moderate 11%
High 30%
Very High 40%
 Very Low Low Moderate High Very High

Very Low.
9%
Very Low. 10%
High.
40% Moderate
. 11%

High.
30%

Interpretation-

40%people are very highly satisfied, 30% of people are highly satisfied,11%
are moderate, 10% of people are low satisfied, 9% are very low satisfied.
Q8)How you come to know about this policy?

Ans.

Particulars Response Percentage

Advertisements 31%
Friends and Relatives 9%
Direct selling 26%
(i) and (ii) 4%
(ii) and (iii) 14%
(iii) and (i) 10%

Response Percentage

10% Advertisements
Friends and Relatives
31%
14% Direct selling
4% (i) and (ii)

9% (ii) and (iii)

26%
(iii) and (i)

Interpretation-
The average score received was calculated by adding the score given by each
respondent divided by the total number of respondent. Also it was noted that
in case of LIC there were total of 13 respondents who give rating of 5 or less
than 5 but the same in case of Bharti-AXA Life Insurance were only 3.It is
inferred that though the difference between the averages score obtained on the
satisfaction of financial needs is not much, the customers of Bharti-AXA Life
Insurance seemed to be satisfied.

Q9). Are there any incentives (tax benefits or Bonuses) associated with
insurance policy

Ans.

Particulars Response Percentage

Tax Benefits 60%
Bonuses 40%
Interpretation-

Responses show that customers prefer more of tax benefit rather than the
bonuses while taking insurance policy. That’s why the ratio of Tax benefit to
Bonus is 3:2.
Q10).Comparison of customer’s satisfaction level between LIC and Bharti-
AXA Life Insurance?

Ans.

LIC BHARTI-AXA
Particulars
in Percentage in Percentage
Highly Satisfied 56% 48%
Satisfied 14% 20%
Moderate 18% 12%
Unsatisfied 8% 8%
Highly Unsatisfied 4% 12%

LIC in Percentage

BHARTI-AXA in
Percentage

60%
50%
40%
30%
20%
10%
0%
1 2 3 4 5
Interpretation–

The customers of both the organizations hold positive perception towards the
incentive provided by them. This is very well visible from the total numbers
of “highly satisfied” and “satisfied” category, wherein close to 70% of the
customer interviewed for both the organizations have responded in these
categories.

Q11). Are you satisfied with the incentives associated with your policy?

Ans.

Satisfaction Level of
Level of Satisfaction (in %)
Customers
Highly Satisfied 30%
Satisfied 40%
Moderate 15%
Unsatisfied 5%
Highly Unsatisfied 10%
 40%
40%

35%
30%
30%

25%
Highly satisfied
Satisfied
20%
Moderate
15%
15% Unsatisfied

10% Highly Unsatisfied

10%
5%
5%

0%
Highly Satisfied Moderate Unsatisfied Highly
satisfied Unsatisfied

Interpretation-

It shows that the customers are moreover satisfied with the incentives plans
but to cater the needs of other company may have to look for other incentives.
Q12).What other plans or flexibility you expect from Insurance companies?

Ans.

Particulars Response Percentage

More Returns 30%
Complimentary Gifts 20%
Investment Pattern 50%

More returns

30%
Complementary
gifts
50%

20% Investment
Pattern

Interpretation-

Customers are keen for investment patterns over returns and complimentary
gifts.
 KEY FINDINGS

1. Private companies need to advertise more aggressively, especially in

rural areas.

2. More education about what insurance really is needs to be imparted.

3. Legal formalities in becoming an advisor should be minimum.

4. Companies should use and promote new channels of distribution.

5. Most people in rural areas know that private companies are operating in

insurance policies but life insurance is still synonymous with L.I.C. in

urban areas.

6. A lot of people are not yet clear about insurance as a financial

instrument. They mostly take it as a tax saving instrument.

7. Most of the people are aware about whom is an insurance advisor but

having little knowledge about the benefits to the advisors and people in

detail does also not know their earning.

8. As a result of this and a few other problems not many people are

interested in becoming an insurance advisor.

9. It is not difficult to find good profiles as Advisor, if Your Approach is

correct.

10.While recruiting these persons try to find out the problems, which they

are facing,

11.It is difficult to create interest in the people so try to find out their

likings.

12.Majority of people are not aware about the Privatization of Insurance

so give them a detailed knowledge about the companies and their

working environment
 LIMITATIONS

i. The geographical area was very much limited to residential

area & so the results are not particularly reflection of the
current behavior.
ii. Biases and non-cooperation of the respondents.
iii. Due to limited time period and constrained working hours for
most of the respondents, the answers at times were vague
enough to be ignored.
iv. People are not interested in giving personal opinion.
v. Most of the people in India take their policies in the period
preceding March(for tax saving purposes) & so the response to
initial contacts were not all encouraging and that has been the
primary reason in the inability to quantify the results large
enough so as to deduce any relevant outcomes.
 CONCLUSION
1. The current state of insurance distribution in India is still in flux. On
one hand, insurers are awaiting regulations to be approved for
brokerages and banc assurance to be truly launched. On the other hand
they are trying the corporate model of intermediaries in addition to the
traditional models in the market.
2. There is no right and wrong in all this. The success of marketing
insurance depends on understanding the social and cultural needs of
the target population, and matching the market segment with the
suitable intermediary segment.
3. In addition a major segment of the Indian population has low
disposable income, meaning that every penny won will be obtained
after a lot of persuasion and the expected value for money is high.
4. All intermediaries can't sell all lines of business profitably in all
markets. There should be clear demarcation in the marketing strategies
 of the company from this perspective. Clients should also receive price
differentials for using different channels. This is not a new concept, as
the Public sector Property Casualty companies are giving discounts in
lieu of agency commission. The channel composition should not be
homogeneous but should reflect the larger society.

For example,

i. Agents from different economic, social strata and different age and
gender.
ii. Bank assures ranging from multinational banks to micro credit lending
agencies.
iii. Brokers stretching from corporate to NGOs to milk co-operatives

These intermediaries need to be empowered with the right learning,

training and sales tools and technology enablers. Coupled with the right
product mix, this will help the insurers to survive and flourish in this
competitive market.
RECOMMENDATIONS

1. More emphasis should be on promotional activities.

2. Plenty of advertisement should be done through T.V, Newspaper and

Radio as these media’s are having maximum recall value.

3. Total financial planning and advice should be given to every customer.

4. More business opportunity seminars should be conducted to make

people aware of the offer given.
5. The company should quite frequently send their agent to the customer
so that they should be aware of the latest offer.

6. The company should attempt to open more and more of its branches in
the country so as to promote their product publicity.

7. Hierarchical management should be given preference. The central

officers should assume the role of policy making whilst financial,
administrative and operational authority to be delegated to zonal
offices.
8. Strengthen the role of branches as a single point of service and contact
for customers.
9. To overcome costly maintenance of organization and low returns, it
must improve productivity of employees and streamline systems and
procedures.

10.Training of agents and development officers to be reviewed and the

practice of indiscriminate recruitment to be stopped as inefficient and
untrained work force, high turnover of agents.
11.Insurance awareness of the company should be increased as low
insurance awareness among the general public results in excessive
lapse ratio of policies.

12.The company should upgrade their information support and adopt

meaningful computerization. Careful long-term planning along wit
cost-benefit analysis is needed.
 ANNEXURE

QUESTIONNAIRE
Q1. Do you have any life insurance policies?
 Yes No

If Yes: -

Name of the Company ________________

Name of the plan _________________

Annual Amount of premium _________________

Term of plan _________________

Are you satisfied with present insurer?

A) YES [ ] B) NO [ ]

Q2. Which are the main issues that you take into consideration while

Purchasing any life insurance policy?

A) Security [ ]

B) Returns [ ]

Tax saving

Others please specify_________

Q3. Are you aware of Unit Linked Insurance Plans offered by various
Companies in India?
 A) ICICI [] B) OM KOTAK MAHINDRA [
]

C) TATA AIG [] D) BAJAJ ALLIANZ

[]

E) LIC [] F) BIRLA SUNLIFE

[]

G) MAX NEW YORK [ ]

Q4. Do you have a life insurance policy from BHARTI-AXA Life

Insurance?

a) Yes [] b) No []

Q5. If yes, which policy have you taken?

_______________________________________________________

Q6. Does this policy satisfy your financial needs? (Please rate on the scale
of 1 to 10 with one being least satisfied)

_______________________________________________________
Q7. Please express your opinion for the premiums paid for the above
policy?

a) Very high []

b) High []

c) Moderate []

d) Low []

e) Very Low []

Q8. How do you come to know about this policy? (Please tick).

a) Advertisements []

b) Friends and relatives []

c) Direct selling agents [ ].

d) Others (please specify) _____________________.

Q9. Are there any incentives (tax benefits or Bonuses) associated with
this policy?
(Please give appropriate details about it).
______________________________________________________________
____________________________________________________________

Q10. Are you satisfied with the incentives associated with your policy?

a) Highly satisfied [ ].

b) Satisfied []

c) Moderate []

d) Unsatisfied []

e) Highly Unsatisfied [ ].

Q.11. If you are given a choice, which one you take:

a) ICICI [ ]
b) OM KOTAK MAHINDRA [ ]
c) TATA AIG [ ]
d) BAJAJ ALLIANZ [ ]
e) LIC [ ]
f) SBI [ ]
Q12. What other plans or flexibility you expect from Insurance
companies?

a) More returns []
b) Complementary gifts []
c) Investment Pattern []

BIBLIOGRAPHY

Websites

 http:// www.Bharti-AXAlife.com
 http://www.Bharti-AXA.com
 http://www.sebi.com

Magazines

 Mehra,Puja, “India Today (27th MAY’2006) – PAGE 43

 Sinha, Prabhakar, “The Times Of India” (16thMAY’2006) – PAGE 1
 “Brunch”(16th july 2006)
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