Professional Documents
Culture Documents
A project report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration of Sikkim Manipal University,INDIA.
ABC FOUNDATION
BB - 36,Salt lake City, Kolkata - 700064 Centre Code No: 01831 A PROJECT ON A STUDY ON BRAND IMAGE AND PERCEPTION OF LIFE INSURANCE COMPANIES WITH A SPECIAL REFERENCE TO BAJAJ ALLIANZ LIFE INSURANCE Sikkim Manipal University COMPANY LIMITED
SMU
Sikkim-Manipal University of Health, By Medical and technological Sciences Distance Education Wing Arunabha Syndicate House Chowdhury Manipal - 576104 A project report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration of Sikkim Manipal University,INDIA.
SMU
Sikkim Manipal University
Directorate of Distance education
S i kki m -Mani pal Uni versi t y o f He al t h, Medi cal and t e chnol ogi c al S ci ences Di st ance Educ at i on W i n g S yndi cat e House Mani pal - 576104
Arunabha Chowdhury
Arunabha Chowdhury
Internal Examiner
External Examiners
Arunabha Chowdhury
SMU
Sikkim Manipal University
Directorate of Distance education
Arunabha Chowdhury
This is to certify that Mr.ARUNABHA CHOWDHURY( Reg. - 510823664 ) MBA (Marketing) student of SIKKIM MANIPAL UNIVERSITY, SALTLAKE has successfully completed his two months project work From - 11th February 2010 To - 27th April 2010 with BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED , KOLKATA. We wish him good luck for his success. Authorized Signatory
Macmet House , 10B,O.C.Ganguli Sarani , 4th Floor , Kolkata - 700020 Tel : 033-30580878 / 7361 / 7362 , 30531588 / 89 Fax : 30580874 Regd. & Head office : GE Plaza ,Airport Road ,Yerawada ,Pune - 411006. Tel (+91 20) 66026777. Fax : (+91 20) 66026789 Customer Help Line : 020 - 3058 7888 Toll Free No. : 18002337272
Arunabha Chowdhury
Acknowledgement
one way and I take this opportunity to thank all of them .I would like to acknowledge my deep sense of gratitude to my project guide Mr.Debjyoti Dhar , who spend his valuable time in advising and providing me with constant encouragement and inspiration during the course of project work. I would like to thank Ms.Debapriya Barat to inspire and helping me through out this session. I am extremely thankful to the faculties,staff and library personnel of ABC for their kind co-operation and help in completing the project work. Last but not the least,I would like to thank my parents and friends as without their support the completion of the project would not have been possible.
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PREFACE The importance of an academic course would gain advantage and acceptance of the true form, only through practical experience. Hence it is quite necessary to put the theories into talk. It is rigidly accepted that the theory widens ones thinking horizons viz .Concepts of marketing philosophies, but practice indicates the modern marketing and used in variety of settings of products. This project programme is designed to give the manager the future of the corporate happenings and work culture. These real life situations are entirely different from the stimulated exercise enacted in an artificial environment inside the study programmers and designed, so that the manager to tomorrow do not feel ill case when the time comes to shoulder responsibilities. Practical exposure for the MBA students is very necessary because what they study in the classroom is not the reality. Situation in the market is unknown and very much unpredictable. So the practical experience is very much necessary this is made possible with the summer training project in Bajaj Allianz Life Insurance Co. in marketing related to search for it's brand image and perception of this brand. All organizations involves into business with some objective and one of the objectives is to endorse product or service which they produce. In my project study ,I tried to fid out the brand image and perception of this brand through questionnaire on behalf of Bajaj Allianz Life Insurance Co.
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TABLE OF CONTENTS
Contents Executive Summary
i) Introduction ii) Objective iii) Methodology iv) Analysis v) Conclusion vi) Recommendation
Page No. 10 11 12-14 15 16-20 21 22
23-47 23-33 24-26 27-33 34-47 35-37 38-39 40-41 42-47 48-116 48-116 49-60 61-63 64-66 67-92 93-94 95-96 97 98-109
Sector Profile
i) Insurance in India ii) Brief history of insurance sector in India iii) Insurance market in India iv) Life insurance market
PART - III
i) Appendix ii) Bibliography iii) References Thank You
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EX E C U T I V E S U M M A R Y
Monopoly of LIC has been broken to make Indian Insurance to change its face and pace to tap the market and to make the new challenges in it. Insurance in India is not about India only; it is an open sector for the private players .The name which you would see in Indian insurance market is something like: - BAJAJ (Indian company) + Allianz (foreign player),TATA(Indian company) + Aig (foreign player) and so many like them .Companies now are tapping a lot of ways to capture the market and hence adopting different ways to hold the large portion of the market .My project was to understand the brand image and perception possessing by the general people about the company which will help the company to increase it's market share and along with it meeting it's own targets to achieve the position of no.1 in respective field or segment of the market. My project study helped me a lot to complete my project in order to learn a lot of things of the corporate. .For this I developed a questionnaire and I did my survey in important location of north 24 parganas. Bajaj Group is one of the India's largest and most respected business groups .Bajaj Allianz Insurance Company is one of the leading insurance companies that provide both life insurance as well as general insurance .This pioneer company is a joint collaboration between the Allianz AG, and Bajaj Auto .They own the company in the ratio of 26:74. Bajaj Allianz Insurance Company is having different insurance policies. At the end of the project people will be knowledgeable about various insurance organizations and different products taking into considerations hundred sample sizes in north 24 parganas. Project is Study of insurance sector and competitiveness with the special reference to Bajaj Allianz Life Insurance Company Ltd. to get to know a questionnaire has been prepared which contains open ended and close ended questions .For collecting the data field survey method, personal interview technique has been used. Secondary data has been collected from the company .A quantitative technique like averages, percentages,range, two- way tables, has been applied as per the requirement.
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I) INTRODUCTION
Future is always uncertain and full of risk. It is not certain that what is going to happen tomorrow. Therefore a man i s always worried about security of property and life. Insurance is a means of meeting out loss caused by future risks and uncertainties. Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fi xed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event." According to Patterson Insurance is an agreement between two parties under which one party undertakes specified future ri sk of another party and compensates the loss from that risk on payment of some consideration known as premium payable by the later . Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual With the help of Insurance, large number of people exposed to a similar risk makes contributions to a common fund out of which the losses suffered by he unfortunate few, due to accidental events, are made good. Insurance is a tool by which losses of a small number are compensated out of funds collected from plenteous. Gradually as competi tion increased benefits ggiven by industry to i ts customers increased by leaps and bounds.Insurance is a basic form of risk management which provides protection against possible loss to life or physical assets.Person who seeks protection against such loss is termed as insured,and company that promises to honor claim, in case such loss is actually incurred by insured,is termed as Insurer.In order to get insurance,insured is required to pay to insurance company a certain amount called premium.
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II) OBJECTIVE
Main objective of the project is to find out the strategies of different Insurance agencies and evaluate them. Project is about to penetrate the competitors of Bajaj Allianz Life Insurance. Conclusion of this project can give an idea of strategies of different companies which may be helpful to the company.Now days all the insurance companies in India are trying to establish themselves in the competitive market .They are introducing innovative marketing strategies to survive in the market. Many other private companies are looking to enter in the Indian insurance market .so it is very essential to a company to innovate their marketing strategies in terms of Recruiting their advisors To make their advisors active Well educated and capable employee in the agency Marketing of their products Deployment of their products Targeting the right and potential customers Differentiating from other companies Future plan of the company This study consists of to find out the marketing strategies of different insurance companies which are the competitors of Bajaj Allianz Life Insurance. This research requires the interview of branch managers of different insurance companies and find out their branches are working in terms of above mentioned factors. To know the consumer responses about Bajaj Allianz life insurance policy. To know about the products of Bajaj Allianz Life Insurance. To know about the objections of people for not taking the
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Insurance policy. To know the need for Life Insurance. To know the benefits of Life Insurance. To know the market share of Bajaj Allianz Life Insurance in the Market.
An Overview
Insurance business is divided into four classes: Life Insurance business Fire Marine Miscellaneous Insurance. Life Insurers transact life insurance business; the rest is transacted by General Insurers. No composites are permitted as per law. The business of Insurance essentially means defraying risks attached to any activity over time (including life) and sharing the risks between various entities, both persons and organizations. Insurance companies (ICs) are important players in financial markets as they collect and invest large amounts of premium. Insurance products are multi purpose and offer the following benefits: Protection to the investors Accumulate savings Channelise savings into sectors needing huge long term investments. various actuary studies and models enable them to predict, relatively accurately, their expected cash outflows. liabilities of ics being long-term or contingent in nature, liquidity is excellent and their investments are also long-term in nature. since they offer more than the return on savings in the shape of life-cover to the investors, the rate of return guaranteed in their insurance policies is relatively low. consequently, the need to seek high rates of returns on their
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investments is also low. the risk-return trade off is heavily tilted in favor of risk. as a combined result of all this, investments of insurance companies have been largely in bonds floated by goi, psus, state governments, local bodies, corporate bodies and mortgages of long term nature. the last place where insurance companies are expected to be over-active is bourses .lately ics have ventured into pension schemes and mutual funds also. however, life insurance constitutes the major share of insurance business. life insurance depends upon the laws of mortality and there lies the difference between life and general insurance businesses. life has to extinguish sooner or later and the claim in respect of life is certain. in case of general insurance, however, there may never be a claim and the amount can never be ascertained in advance. hence, life insurance includes, besides covering the risk of early happening of an event, an element of savings also for the beneficiaries. pension business also derives from life insurance in as much as the pension outgo again depends upon the laws of mortality. the forays made by insurance companies in this area are, therefore, natural corollary of their business.
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III) METHODOLOGY
To know the consumer responses about Bajaj Allianz life insurance policy. To know about the products of Bajaj Allianz Life Insurance. To know about the objections of people for not taking the Insurance policy. To know the need for Life Insurance. To know the benefits of Life Insurance. To know the market share of Bajaj Allianz Life Insurance in the Market.
Limitations
Time limitation Research has been done only in district town Barasat. Companies did not disclose their secrets data and strategies. Possibility of Error in data collection. Possibility of Error in analysis of data due to small sample size.
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IV) ANALYSIS
FUNCTION OF INSURANCE
Provide protection: The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others.
Means of savings and investment:Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance. Source of earning foreign exchange:Insurance i s an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various ways. Risk free trade: Insurance promotes exports insurance, which makes the foreign trade free with the help of different types of policies under marine insurance cover. Insurance business is divided into four classes: Marine Insurance Fire Insurance Miscellaneous Insurance Life Insurance
MARINE INSURANCE:
A STUDY ON BRAND IMAGE AND PERCEPTION OF LIFE INSURANCE COMPANIES WITH A SPECIAL REFERENCE TO BAJAJ ALLIANZ LIFE INSURANCE COMPANY
FIRE INSURANCE:
The Fire Insurance is next important type of insurance. The owner of the factory or ship or a residential house may purchase a fire insurance policy on the payment of nominal premium, and i f unluckily the property is party or wholly destroyed by fire the insurance company will makes good such loss .Thus on payment of a very small sum, we are tremendous safety.
MISCELLLANEOUS INSURANCE:
Besides these fire insurance , marine insurance, & life insurance several other types of insurance have recently come into
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being eg. Motor Insurance, Crop insurance, Bad Debts Insurance, Sickness Insurance. The functions of these type of insurances are very clear form their names
LIFE INSURANCE:
Life insurance is a contract under which the insurer (Insurance Company) in Consideration of a premium paid undertakes to pay a fixed sum of money on the death of the insured or on the expiry of a specified period of time whichever is earlier. A person may insure his life or the life of a person in whom he i s financially interested so that a certain sum becomes payable by the insurance when death takes place or when the insured attains a certain age according to the terms of agreement In case of life insurance, the payment for life insurance policy is certain .The Event insured against is sure to happen only the time of its happening is not known. So life insurance is known as `Life Assurance`. The subject matter of insurance is life of human being. Life insurance provides risk coverage to the life of a person. On death of the person insurance offers protection against loss of income and compensate the titleholders of the policy. If the life of the bread winner of the family is insured his wife or children will be able to tide over the financial difficulty after his death.
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2) Login
A proposal which is complete i.e., duly filled with all necessary documents attached to it & accepted by the Branch ops, is called a Login
3) Reject
An Application gets rejected at the Branch Ops level due to necessary details not filled in the form or necessary documents not submitted is a Reject. It is then sent back to the Advisor for completion.
4) Issuance
Issuance means a policy that is issued to the Customer by Central Ops.
5) Decline Status
When a customer refuses to take a policy post login but before Issuance is called a Decline
6) Cancellation
When the cheque given by the customer bounces, it amounts to cancellation of the policy
7) Lapse
A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.
8) Free look
Post issuance of the policy, the policyholder has the option to turn down the policy within 15 days from the date of issuance. This period of 15 days is called Free look Period.
9) Surrender
When a customer wants to discontinue with the policy.
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V) CONCLUSION
Insurance companies have forgotten their traditional products . Companies are totally concentrating on selling ULIP products. Insurance companies are not doing enough market researches to know the potential of the market. To increase awareness in rural market Bajaj Life should do some activities in villages and small towns.
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VI) RECOMMENDATION
Through out the project work I have tried to my extent to learn more and more so that I enable myself to deliver the best services from my part. I always focused my services to full satisfaction whether it would for employer or for customer. So during this practical learning process whatever I have realized to improve the division of the company is as follows: Work in Semi urban market will have a lot of opportunity. Most of the Life Insurance companies are operating in the metros and big cities as per their present branch office locations . They can increase their market size,distributing various urban and semi-urban markets. The company can try to increase the morale and productivity. Premium and economical class of services should be launched by the company to serve the varied nature of customers. Service cum awareness camps should be run by the company in remote areas. Improvement in services through feedbacks from customers is recommended.
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PART I
COMPANY PROFILE
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Bajaj Finserv, the financial services arm of the Bajaj Group, posted a net profit of Rs 42 crore for the quarter ended June 30, 2009. It had posted a loss of Rs 36 crore in the corresponding period last year. The groups life insurance arm, Bajaj Allianz Life Insurance Company, was the biggest contributor to the firms income. Bajaj Allianz has posted a profit of Rs 68 crore in the June quarter. In the year-ago quarter, it had posted a loss of Rs 3 crore. Gross written premium for the quarter rose 40 per cent to Rs 2,001 crore as against Rs 1,847 crore in the corresponding period last year. Renewal premium, too, increased to Rs 1,423 crore as against Rs 1,018 crore in the quarter ended June 30, 2008. However, new business premium fell 42.28 per cent to Rs 577 crore.
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ALLIANZ GROUP
Allianz Group is one of the world's leading insurers and financial services providers.
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. At the top of the international group is the holding company, Allianz AG, with its head office in Munich.
Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of crore. 3rd largest Assets under Management (AUM) & largest Property and Casualty Insurance, Life and Health Insurance, Asset Management and Banking. ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654
amongst Insurance cos. - AUM of Rs.51, 96,959 crore. 12th largest corporation in the world 49.8 % of global business from Life Insurance Established in 1890, 110 yrs of Insurance expertise 70 countries, 173,750 employees worldwide
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BAJAJ GROUP
Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and threewheelers in India and one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous with quality & customer focus.
A STRONG INDIAN BRAND- HAMARA BAJAJ One of the largest 2 & 3 wheeler manufacturer in the world 21 million+ vehicles on the roads across the globe Managing funds of over Rs 4000 cr. Bajaj Auto finance one of the largest auto finance cos. in India Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03 It has joined hands with Allianz to provide the Indian consumers with a distinct option in terms of life insurance products. As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to offer Financial strength and stability to support the Insurance Business. A strong brand-equity. A good market reputation as a world class organization. An extensive distribution network.
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Mr. Rajesh Viswanathan,C.F.O. Bajaj Allianz Life Insurance Arunabha Chowdhury 31 Sikkim Manipal University
BOARD OF DIRECTORS:
Mr. Rahul Bajaj (Chairman) Dr. Werner Zedelius Mr. Sanjay Asher Mr. Niraj Bajaj Mr. Sanjiv Bajaj Mr. Heinz Dollberg Mr. Ranjit Gupta Mr. S. H. Khan Mr. Suraj Mehta Mr. Dietmar Raich Mr. Manu Tandon Mr. Kamesh Goyal (Alternate Director to Dr. Werner Zedelius)
Standard Chartered Bank Contact Number : 022 2492 8888 E-mail Address: customer.care@in.standardchartered.com
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Syndicate Bank Contact Number : 020 4026 742 E-mail Address: insurancediv@syndicatebank.net
Placement Sales and Services Ltd. Contact Number : 0487-2388666,2385922 Tele Fax - 2388666 E-mail Address: placementss@rediffmail.com Address: Regency Centre, Kalavary Road, West Fort, Thrissur 4 Kerala, India
Team Life Care Company(India) Ltd. Contact Number : 0427 - 2410707; 2420707; Tele Fax - 2421245 E-mail Address : www.teamlifecare.in
COSMOS Co-op BANK Ltd. Contact Number : 020 2488051 E-mail Address : info@cosmosbank.in
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SECTOR PROFILE
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I)
INSURANCE IN INDIA
Insurance in India started without any regulations in the nineteenth century. It was a typical story of a colonial era: a few British insurance companies dominating the market serving mostly large urban centers. After the independence, the Life Insurance Company was nationalized in 1956, and then the general insurance business was nationalized in 1972. Only in 1999 private insurance companies were allowed back into the business of insurance with a maximum of 26 per cent of foreign holding (World Bank Economic Review 2000). The entry of the State Bank of India with its proposal of bank assurance brings a new dynamics in the game. On July 14, 2000 Insurance Regulatory and Development Authority bill was passed to protect the interest of the policyholders from private and foreign players. The following companies are entitled to do insurance business in India. The private insurance joint ventures have collected the premium of Rs.1019.09 crore with the investment of just Rs.3, 000 crore in three years of liberalization. The private insurance players have significantly improving their market share when compared to 50 years Old Corporation (i.e.LIC). As per the figures compiled by IRDA, the Life Insurance Industry recorded a total premium underwritten of Rs. 10,707.96 crore for the period under review. Of this, private players contributed to Rs.1, 019.09 crore, accounting for 10 percent. Life Insurance Corporation of India (LIC), the public
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sector giant, continued to lead with a premium collection of Rs.9,688.87 crore, translating into a market share of 90 per cent. In terms of number of policies and schemes sold, private sector accounted for only 3.77per cent as compared to 96.23 per cent share of LIC (The Economic Times, 21 March, 2004). The ICICI Prudential topped among the private players in terms of premium collection. It recorded a premium of Rs. 364.9 crore and a market share of 25 per cent, followed by Birla Sun Life with a premium under- written Rs.170 crore and a market share of 15 percent, HDFC Standard with 132.7 crore and Max New York Life with Rs.76.8 crore with a market share of approximately 15 per cent each. Unlike their counterpart in the life insurance business, private non-life insurance companies have not yet started addressing the retail market. All is set to change in the coming years. Like in the banking sector, non-life insurance companies will soon have no choice but to focus on individual buyers. In case of private non-life insurance players, that their market share rose to 14.13 per cent, recording a growth of 70.75 per cent on an annual basis, while the market share of public sector stood at 85.87 per cent, registering a marginal growth of 6.34 per cent. The overall market has recorded a growth of 12.32 per cent by the end of January 2004. Among the private non-life insurance players, ICICI Lombard topped the list with a premium collection of Rs.403.62 crore in one year period with a market share of 3.05 per cent and with an annual 131.6 per cent, followed by Bajaj Allianz with a premium of
Rs.385.02 crore and 2.91 per cent market share and Tata AIG with
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300.49 crore premium and 2.27 per cent market share with an annual growth rate of 62.60 per cent. Among the public sector players, New India garnered a market share of 24.38 per cent, Rs.3,229.49 crore premium and an annual growth rate of 0.38 per cent, followed by National with a market share of 21.43 per cent, Rs.2,839.11 crore premium and an annual growth rate of 19.88 per cent, United India with a market share of 19.47 per cent (Rs.2,578.83 crore premium) and Oriental with a market share of 18.25 per cent, Rs.2,417.17 crore premium and an annual growth rate of 1.86 per cent. It is significant to note that HDFC Chubb and Cholamandalam have registered annual growth rates of 4030.26 per cent and 1101.20 per cent respectively, whereas New India has registered it as 0.38 per cent. If this trend continues, private insurer would dominate the public sector like New India Insurance Corporation. It is obviously reflect the insurance sector has facing the challenges with foreign counter parties as well as private counter parties and lot more opportunities are prevailing to penetrate the insurance business among the uncovered people and area of India. Further, it leads to economic development of the country. In this regard, it assumes greater significance to conduct debate among the inter- disciplinary persons.
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The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 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
formed by an Act of Parliament, viz LIC Act, 1956, with a 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. Some of the important milestones in the general insurance business in India are: 1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
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payments are treated as part of the fixed costs. Consequently they are treated as pass-through costs for tariff calculations. Premium rates of most general insurance policies come under the purview of the government appointed Tariff Advisory Commitee . For Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets the premium rates, for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the committee's guidelines; and projects above Rs 15 billion are subjected to reinsurance pricing. It is the last segment that has a number of additional products and competitive pricing. Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the premium. The other companies share the remaining risk and premium. The policies are renewed usually on an annual basis through the invitation of bids. Of late, with IPP projects fizzling out, the insurance companies are turning once again to old hands such as NTPC , NHPC and BSES for business.
RE-INSURANCE BUSINESS
Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which can be safely borne from their own funds. The balance risk is reinsured with other insurers. In effect, therefore, re-insurance is insurer's insurance. It forms the backbone of the insurance business. It helps to provide a better spread of risk in the international market, allows primary insurers to accept risks beyond their capacity, settle accumulated losses arising from catastrophic events and still maintain their financial stability. While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer. Currently, all insurance companies have to give 20 per cent of their reinsurance business to GIC. The aim is to ensure that GIC's role as the national reinsurer remains unhindered. However, GIC reinsures the amount further with international companies such as Swissre (Switzerland), Muniche (Germany), and Royale (UK). Reinsurance premiums have seen an exorbitant increase in recent years, following the rise in threat perceptions globally.
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transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen.
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Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatisation was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average. Buoyed by their quicker than expected success, nearly all private insurers are fastforwarding the second phase of their expansion plans. No doubt the aggressive stance of private insurers is already paying rich dividends. But a rejuvenated LIC is also trying to fight back to woo new customers.
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LIC (A) PRIVATE SECTOR HDFC STD LIFE MNYL ICICIPRU BSLI TATA AIG KOTAK LIFE SBI LIFE BAJAJ ALLIANZ METLIFE AMP SANMAR ING VYSYA AVIVA SAHARA LIFE TOTAL (B) TOTAL (A+B)
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361428.87
304436.88
480.77 436.37 970.63 170.06 392.76 200.67 960.89 382.28 157.18 110.71 241.22 144.95 142.48 4790.98 366219.85
44
305.43 241.85 658.45 140.38 220.65 133.43 367.84 221.91 120.18 98.69 75.28 144.65 143.29 2872.03 307308.91
Sikkim Manipal University
LIC (A) PRIVATE SECTOR HDFC STD LIFE MNYL ICICIPRU BSLI TATA AIG KOTAK LIFE SBI LIFE BAJAJ ALLIANZ METLIFE AMP SANMAR ING VYSYA AVIVA SAHARA LIFE TOTAL (B) TOTAL (A+B)
11462.03
9244.06
151.91 14.03 166.64 0.06 76.78 13.36 78.97 9.28 210 50.45 0 0 0.06 561.75 12033.78
101.68 2.11 127.59 0 39.79 7.54 15.41 3.81 0 9.83 0 0 0 307.77 9551.83
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LIC (A) PRIVATE SECTOR HDFC STD LIFE MNYL ICICIPRU BSLI TATA AIG KOTAK LIFE SBI LIFE BAJAJ ALLIANZ METLIFE AMP SANMAR ING VYSYA AVIVA SAHARA LIFE TOTAL (B) TOTAL (A+B)
42639.42
34068.32
0 7.25 0 0 14.7 2.05 10.77 1.27 2.52 0 0 2.85 0.02 41.43 42680.85
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LIC (A) PRIVATE SECTOR HDFC STD LIFE MNYL ICICIPRU BSLI TATA AIG KOTAK LIFE SBI LIFE BAJAJ ALLIANZ METLIFE AMP SANMAR ING VYSYA AVIVA SAHARA LIFE TOTAL (B) TOTAL (A+B)
2758.67
209.87
290.67 20.44 2337.16 1125.72 80.81 308.33 3.54 369.24 1.74 21.4 78.61 131.13 0 4768.77 7527.45
60.91 0 780.07 474.62 12.75 53.54 0 28.61 0 0 20.81 47.13 0 1478.43 1688.31
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PART II
PROJECT OVERVIEW
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I) INTRODUCTION
WINDS OF CHANGE :
Reforms have marked the entry of many of the global insurance majors into the Indian market in the form of joint ventures with Indian companies. Some of the keys names are AIG, New York Life, Allianz , Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry of new players has rejuvenated the erstwhile monopoly player LIC. Which has responded to the competition in an admirable fashion by launching new products and improving service standards.
Market Expansion :
There has been an overall expansion in the market. This has been possible due to improved awareness levels thanks to the large number of advertising campaigns launched by all the players. The scope for expansion is still unlimited as virtually all the players are concentrating on large cities and towns except by LIC to an extent there was no significant attempt to tap the rural markets
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Customer Service :
Not unexpectedly, this was one area that witnessed the most significant change with the entry of new players. There is an attempt to bring in international best practices in service and operational efficiency though use of latest technologies. Advice and need based selling is eme rging through much better trained sales force and advisors. There is improvement in response and turnaround times in specific areas such as delivery of first policy receipt, policy document, premium notice, final maturity payment,
settlement of claims etc. However, there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels.
Channels of Distribution : Till two years back, the only mode of distribution of life insurance products was through Agents. While agents continue to be the predominant distribution channel, today a number of innovative alternative channels are being offered to customers. Some of them are bancassurance, brokers, the internet and direct marketing. Though it is too early to predict, the wide spread of bank branch network in India could lead to bancassurance emerging as a significant distribution mechanism. The introduction of private players in the industry has added to the colors in the dull industry. The initiatives
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taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LIC. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in this s ector. The new players have improved the service quality of the insurance. As a result LIC down the years have seen the declining phase in its career. The market share was distributed among the private players. LIC market share has decreased from 95% (2002 03) to 82% (2004-05). The following companies has the market share of the life insurance industry.
Insurance Company Market Share(Fig.in%)
LIC ICICI Prudential Bajaj Allianz HDFC Standard Life SBI Life Birla Sun Life Max New York Life` TATA AIG Aviva OM Kotak Mahindra ING Vyasa Reliance MetLife
71.44 11.35 7.06 2.37 1.81 1.49 0.98 0.79 0.89 0.86 0.57 0.37 0.24
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DISTRIBUTION CHANNELS
Till date insurance agents still remain the main source through which insurance products are sold. The concept is very well established in the country like India but still the increasing use of other sources is imperative. It therefore makes sense to look at well balanced,
LIC has already well established and have an extensive distribution channel and presence. New players may find it expensive and time consuming to bring up a distribution channel to have an advantage.
At present the distribution channels that are available in the market are: Direct Selling Corporate Agents Group Selling Brokers and Cooperative Societies Bancassurance
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To make all these channels a success the companies have to be very alert and skillful to know how to use these channels in a proper way. Bancassurance is on of the most upcoming channels of distribution.
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PRODUCTS
Bajaj Allianz has launched different tupes of product to serve different market throughout the life insurance market of India.The recently operated products are here.
1) Unit Linked
Regular Premium
New Family Gain - II New UnitGain - II Family Assure - II Century Plus - III Unitgain Protection Plus - II Smart Investment Plan - II I gain - II Max Gain Assured Gain
Single Premium
Wealth Gain
2) WOMEN INSURANCE
Products for house wives
3) Group
Non Employer Employee Credit Shield Group Term Life (Non Employer employee)
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Employer Employee
Group Term Life (Employer employee) New Group Gratuity Care New Group Superannuation Care
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Group Suraksha Sarve Shakti Suraksha Group Loan Protecter Group Income Protection
Group Unitgain
Group Save Plus Group Term Life in liu of EDLI Group Leave Encashment Scheme Group Annuity Group Superannuation Gold Group Gratuity Gold
4) Pension
Annuity
Pension Gurantee
Retirement
Future Income Generator Swarna Vishranti Retirement Advantage RP Retirement Advantage SP Future Secure - II
5) HEALTH
Care First Health Care family Care First
6) MICRO INSURANCE
Alp Nivesh Yojana Jana Vikas Yojana Saral Suraksha Yojana
7) TRADITIONAL
Endowment
Invest Gain Save Care Economy SP Life Time Care
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Money Back
Cash Gain
8) Children Plan
Child Gain Yong Care II
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Allianz AG with over 110 years of experience in over 70countries and Bajaj Auto ,trusted for over 55 years in the Indian market, together are committed to offering you financial solutions that provide all the security you need for your family and yourself. Bajaj Allianz brings to you several innovative products , the details of which you can browse in this section.
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II) OBJECTIVE
About the project :
This project is mainly concentrating on the various perceptions that each customer has on private life insurance as well as on the value added service offered by BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD .As my project is all about perception and value added service,I have given a brief introduction about it.
Service marketing :
Service is an act of performing or offering that some thing extra which gives some benefits or value to the customers without the ownership of the physical products. Now a days of service is gaining importance due to increasing in demand from economic well being,changing life style of people and complexity of the products .Service differs from physical goods in certain characteristics such as intangibility ,heterogeneity and perishes ability,which makes them unique and poses a challange for marketers to make them separately from goods. This project is mainly concentrating on the perception of customers who have the policy in private life insurance companies and know about the value added service offered by the private life insurances companies.
Perception :
It may be define as the process by which an individual selects,organizes and interprets stimuli into a meaningful and coherent picture of the environment in which he lives.To a person, he perceives the reality,irrespective of the objective trust ,and his behavior is ditermined by his perception.
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The Target
Perception is affected by characteristics of the target.The people who are loud or very tall are or attractive are more likely to be noticed in a crowed .The target perceived based on its attributes such as motion,sound,size etc.
The situations
Time,location,climate,person's state of mind and other situational factors influencing his perception.
The Value Added Services Offered By The BALIC LTD. Electronic clearing system :
It is a system where the premium gets directly debited from the bank account on the due dates .This helps the customer to pay the insurance premium with out to the insurance company.
Financial advisors :
Advisos are the back is not just selling of the policies but listen to the customer like what they need,how much they can invest,which policy suits them and what kind of policy expect from us i.e. what kind of policies should be designed for them.
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Other services :
Customized products All the information about the companies and its products are available in companies website. Incase a customer wants to pay their premiums through cheque than they can draw them in favours of the insurance company in which he has the policy. Market information : customers can check their policy status through online. Claim settlement : Claim settlement in private life insurance company is faster than the other insurance company. For any queries customer can call to 24 hour help line number..
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III) METHODOLOGY
Research methodology is a way to systematically solve the research problem. Research methodology constitutes of research methods, selection criterion of research methods, used in context of research study and explanation of using of a particular method or technique so that research results are capable of being evaluated either by researcher himself or by others. Why a research study has been undertaken, how the research problem has been formulated, why data have been collected and what particular technique of analyzing data has been used and a best of similar other question are usually answered when we talk of Research methodology concerning a research problem or study. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and primary data has been collected by meeting with th e branch and agency manager of different insurance agencies and branches in Barasat . Data collection has been done through by giving structured questioner. Research has been done after existing policy holders,probable customers,branch managers or agency manager & agents. This study will be based on judgment sampling and this research is skewed to organization level. This is an exploratory type of research .And this research needs further study also research is a kind of pilot study. The area of the study related with informing different people about life insurance policies at Barasat in North 24 parganas .
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primarily through filling up of questionnaire. The sample for the research including different individuals of various age groups and having different professions and
qualifications. Data was collected through the interview of individuals. The questionnaire was containing questions regarding the personal details of individuals and then some light questions regarding their primary knowledge related to private insurance companies. Then there were questions related to their interest in being the Insurance Consultants of company.
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SECONDARY DATA
A large amount of secondary data has been collected from secondary sources. Some of the sources are: Reports on Insurance Sector of India. Articles from Newspapers and magazines. Various web sites of the insurance companies and related sites.
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IV) ANALYSIS
There are some features of analyzing data that need to be borne in mind when choosing the method for analyzing the research. The questionnaire were prepared to explore the pshychology of individuals about being associated with Bajaj Allianz's brand image and perception and to help the company grow by increasing its sales. Instead of testing a hypothesis, a qualitative analyst may demonstrate evidence showing that a theory, generalizing, or interpretation is plausible.
Various areas of Barasat and were covered in order to fill the questionnaire. I interacted with 100 individuals in order to know about their i nterest of being Insurance Consultants of Bajaj Allianz .
SAMPLE COMPOSITION
Youth Executives Serviceman Business persons
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SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given population. It refers to the techniques or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well be drawn from the population to be included in the sample i.e. the size of the sample. Sample design is determined before data are collected. Sample size has been taken by judgment sampling. Judgment sampling is a process in which the selection of a unit, from the population is based on the pre judgement.This research requires the survey of different insurance agencies in North 24 parganas . So research concentrates on the branch or agency manager of different insurance companies. So the selection of unit for this research has been judged by the researcher. Sample size for this research is 100 . During my study I have taken 100 prospects as the size of sample. The approach to the research is considered in this chapter, from the theoretical underpinning to the collection and analysis of the data. It begins with the extent of the research to provide the specific guidelines of studying. The next part is concerned with the method of the research that refers to the data collection and analyzing which is used in the research.
Sampling method :
The researcher had choice between probability and non probability sampling metho ds .In this study a simple non probability method namely convenience sampling was adopted. For my study I have selected Non -probability method in which I selected convincing sampling method .
Field work :
Survey was done in district town - Barasat .The data was collected over a period of ten weeks within the same area using well structured questionnaire .The
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Descriptive Research:
Market survey is one of the best example of descriptive research. This is a one shot research study at a given point of time, and consists of a sample of the population of interest. Its advantages are that it gives a good overall picture of the position at a given time. It can cover many variables of interest, and is not affected by the movements of elements in the sample, because other elements can be substituted for them.
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Overall Profession
Interpretation:
According to the study 32 % people are there who are service holder where as 68 % of people are businessman.
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Literacy level
Interpretation:
According to the study of literacy level,95 % of the respondents are graduate and even maximum of them want to go for further study where as 5 % are beyond graduate .According to their response,they do not want to be a graduate.
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Options
Display Door to door Exhibition Catalogue Price off
Response in %
40 14 16 20 10
Interpretation:
According to the study 40% insurance care consultants prefer display technique,20% insurance care consultants prefer catalogues, 16% to the exhibition, 14% to the door to door demo and 10% insurance care consultants prefer price off technique.
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Options
Display Door to door Exhibition Catalogue Price off
Response in %
18 36 18 16 12
Interpretation:
According to the study 36% insurance care consultants say door to door demo techniques giving good response, 18% insurance care consultants say to the display & exhibition, 16% to the catalogues & 12% say to the price off technique.
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Response in %
10 22 10 46 12
Interpretation:
According to the 46% insurance care consultants, catalogue technique is economically beneficial. 22% to the door-to-door demo and 12% insurance care consultants prefer price off technique.10% to the exhibition & display technique.
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Options
Display Door to door Exhibition Catalogue Price off
Response in %
22 38 10 16 14
Interpretation:
According to the study 38% insurance care consultants say display technique requires less time in sales promotion. 22% to the display technique, 16% insurance care consultants vote to the catalogues, 14% insurance care consultants vote to the 10% to the exhibition.
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Options
Display Door to door Exhibition Catalogue Price off
Response in %
18 30 10 34 8
Interpretation:
According to the study 34% insurance care consultants say that the catalogues is easily manageable, 30% to the door to door demo,18% insurance care consultants prefer display technique 10% to the exhibition, and 8% insurance care consultants say to the price off technique.
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Options
Display Door to door Exhibition Catalogue Price off
Response in %
14 12 12 22 40
Interpretation:
According to the study 40% insurance care consultants vote to the price off technique is require less knowledge to execute.22% insurance care consultants prefer catalogues, 14% to the display and 12% to the exhibition & door to door.
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Response in %
20 42 24 10 4
Interpretation:
According to the study 42% insurance care consultants vote to the door-to-door technique that it requires more knowledge to execute than others. 24% to the exhibition, 20% to the display technique, 10% insurance care consultants give vote to the catalogues and 4% insurance care consultants prefer price off technique.
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Response in %
46 40 14
Interpretation:
According to the study 46% insurance care consultants say yes that the price off are necessary for sales promotion. 40% say no,it is not requird and 14% were not interested not opine.
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Q.12) Do you think that sales promotion program that is presently undertaken by Bajaj Allianz are satisfactory?
Options
Yes No Can not say
Response in %
34 46 20
Interpretation :
According to the study 46% insurance care consultants say No, the sales promotion program that is presently undertaken by Bajaj Allianz are not satisfactory . 36% say Yes,it is satisfactory and 20% could not highlight their view on this point.
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Q.13) Should Bajaj Allianz take up new sales promotion programme? Options
Yes No Can not say
Response in %
72 22 6
Interpretation :
According to the study 72% insurance care consultants say yes Bajaj should take new ideas of sales promotion.22% consultants are not interested Bajaj to take new sales promotions.6% insurance care consultants did not put any opinion about it.
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Q.14) Do you know about the Bajaj Allianz Life Insurance companies?
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% of people
0 12 26 44 18
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Q.17) How much time you can provide easily besides your job hours?
% people
12 33 31 24
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Interpretation :
This question was asked to sales personnels.98 % sales personnel is having their own cell phones .2% sales personnel is still their who are not having their own cell phones.
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Q.20) Would you like to work in market/field and want to interact with people? Ans. The response of individuals is as fol lows :Yes- 65% No - 35%
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Q.21) Would you like to come our company office and spend your some time with our people in a seminar?
Ans. The response of people are as follows : Yes- 45% No- 55%
Interpretation :
This question was asked to existing and probable customers .Out of 100 respondents 45 respondents are ready to attend our seminer .55 respondents are not at all ready to attend this type of seminer or like so.
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Q.22) Do you want that a sales manager should approach you for agency? Ans. The responses of people are as follows : Yes- 64.3% No -35.7%
Interpretation :
The question was asked to the sales personnel .64.3 % sales personnel said that a sales manager should approach him / her for a agency .But 35.7 % sales personnel were negative .They said that they are not supposed to get offer for a agency.
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Q.23) How many sales personnel ,whose monthly income is as follows ,you know in your branch? Ans. The responses of people are as follows: MONTHLY INCOME 0-5000 5000-10000 10000-15000 15000-20000 20000 and above % of people 15 10 35 25 15
Interpretation :
The question was asked to the sales personnel .As per collected data 15 personnel comes into 0k 5k range ,where as 10 personnel falls in 5k 10k range.35 personnel are their whose monthly income is within 10k 15k and 25 personnel are their whose monthly income is within 15k 20k.15 sales personnel would be their whose monthly income is above even 20k.
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Maximum existing customers have chosen this company due to good brand image and holding policies through out the years.
Probable customers are generally interested in good product and want to invest in a long running reputed company like Bajaj Allianz instead of the recently introduced company.
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Retailers are getting good return from the products of this company and their business volume is also high than that of other companies.
Maximum retailers said that their sale is very much increased in the last years because of an excellent performance of the product. Insurance care consultants said that the employees are very much satisfied after getting opportunity to sell out the products because of its features related with risks of life and also because of quality of service provide by their company is very good.
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VI) SUGGESTION
Here are some suggestions, which may help to strengthen the firm further. The backbone of the company is the brand image of Bajaj Auto .So ,extensive advertisement ,publicity ,sales force and sales promotion is needed to take place in order to to keep this image continue. Many of the insurance care consultants of the Bajaj Allianz. has the lack of good communication skills and training. So training should be easy.
People must be made aware of the benefits of the policies of Bajaj Allianz.
The company should give personal attention to each customer. Proper assistance should be provided to the customer at the time of claim settlement.
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All the details about the company should be given to the customers.
The company must try to find new markets especially in the rural areas.
TOOLS USED
To know the response, I have used the questionnaire method. If one wishes to find what prospects think or know, the logical procedure is to ask them. This has led marketing researchers to use the questionnaire technique for collecting data more than any other method. In this method questionnaire were distributed to the respondents and they were asked to answer the questions in the questionnaire. The questionnaire were structured non disguised questionnaire because the question which the questionnaire contained, were arranged in a specific order besides every question asked were logical for the study, no question can be termed as irrelevant. The questionnaire was non-disguised because the questionnaire was constructed so that the objective is clear to the respondent. The respondents were aware of the objective. They knew why they were asked to fill the questionnaire.
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VIII) QUESTIONNAIRE
QUESTIONNAIRES FOR MARKET SURVEY
I am Arunabha Chowdhury , MBA fourth semester student of SIKKIM MANIPAL UNIVERSITY(Salt lake Branch ) currently doing my Project in BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED .As a part of my study,I am collecting information of the existing and probable customer,retailers and insurance care consultants perception on value added services provided by BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED,I kindly request you to fill the following questionnaires. NAME ........................................................................................................... ADDRESS ..................................................................................................... ........................................................................................................... CONTACT NO. ........................................................................................... DATE - ..............................................
( ) 25 to 35 years
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( ) 35 to 40 Years
( ) Above 45 years
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10) If you want to clarify any query to whom you will ask ?
( ) Advisor ( ) Customer care ( ) Company website ( ) Branch
Thank you for your co-operation & your answers would be kept secretly.
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I am Arunabha Chowdhury , MBA fourth semester student of SIKKIM MANIPAL UNIVERSITY(Salt lake Branch ) currently doing my Project in BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED .As a part of my study,I am collecting information of the existing and probable customer,retailers and insurance care consultants perception on value added services provided by BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED,I kindly request you to fill the following questionnaires. NAME ........................................................................................................... ADDRESS ..................................................................................................... ........................................................................................................... CONTACT NO. ........................................................................................... DATE - ..............................................
QUESTIONNAIRE
Q.1 To which A) Display C) Exhibition
C) Exhibition
D) Catalogue
Q.3 Which technique is economically beneficial? A) Display C) Exhibition B) Door to door demonstration D) Catalogue
Q.4 Which technique requires less time in sales promotion? A) Display C) Exhibition B) Door to door demonstration D) Catalogue
Q.5 Which technique is easily manageable? A) Display C) Exhibition B) Door to door demonstration D) Catalogue
Q.6 Which technique requires less knowledge to execute? A) Display C) Exhibition B) Door to door demonstration D) Catalogue
Q.7 Which technique requires more knowledge to execute? A) Display B) Door to door demonstration C) Exhibition D) Catalogue
Q.8 Price off and installment offers are necessary for sales promotion? A) Yes B) No C) Cant say
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Q.9 Do you think that sales promotion program that is presently undertaken by Bajaj Allianz. are satisfactory? A) Yes B) No C) Cant say
Q.10 Should Bajaj Allianz. take up new sales promotion program? A) Yes B) No C) Cant say
Thank you for your co-operation & your answers would be kept secretly
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QUESTIONNAIRE
( ) Finance
104
( ) Government
Sikkim Manipal University
( ) IT
( ) Others
( ) Ecs
Thank you for your co-operation & your answers would be kept secretly.
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QUESTIONNAIRE
B) Reference D) database
Q.2 which technique is giving good response from respondents? A) Advertisement C) E-mail B) Reference D) database
Q.4 Which technique requires less time to get response ? A) Advertisement D) database B) E-mail D) Handbill
Q.5 What percentage of respondents are interested in this job? A) 5-10 C) 20-30 B) 11-20 D) 30 and above
Q.6 How much is the expected monthly income of them? A) Less than 5K C) 10k-15k B) 5K-10k D) 15k-20k
Q.7 How long they are working in BAJAJ ? A) less than 6 months B) 6 months - 1year C) 1 year - 2 years D) 2 years and above
Q.8 what is the ratio of part timer and full timer in this company?
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A) 20 - 80 C) 40 - 60
B) 30 - 70 D) 50 - 50
Q.9 Do you think that sales promotion program that is presently undertaken by Bajaj Allianz. are satisfactory? A) Yes B) No C) Average
Q.10 Should Bajaj Allianz. take up new sales promotion program? A) Yes B) No C) Cant say
Thank you for your co-operation & your answers would be kept secretly
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IX) CONCLUSION
Based on the market survey, interviewing top level managers, expert opinion ,customer feedback from the sales force, data collection and analysis I can reach a conclusion that there is huge demand of life insurance policies in India and it is growing rapidly. It is mainly because increased rate of population and their interest in investment along with risk coverage of their life. Bajaj is very old and reputed company leading the insurance industry in India now. It may get better marketing opportunity if extend their product line , increase number of advertisement. It will be more effective if the company takes more initiatives to work in the urban sector. As per report of IRDA (Insurance Regulatory and Development Authority) there are a lot of companies in the industry who mare existing in this industry .Only a few of them (7 to12) are major markets players. Most vital conclusion is Insurance market largely depend on
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the economic development ,I can say that demand of Unit Linked Investment Policies are driving the major part of the insurance industry .As the economic growth is very high ,people wants to do invest mostly in insurance to get the tax rebate .Through this concept ,unit linked policies are going to lead all other life insurance products.
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X) Recommendation
1.
Insurance Companie's products so that they do not have any negative attitude of the company. 2. Bajaj is already having god brand image and loyalty in the
existing life insurance sector.As this sector is growing very rapidly,it should take initiative to keep it continue through advertisement and brand awareness programmes,mainly in urban area. 3. Bajaj Allianz Life Insurance Company should make social
gathering on its special accessions with local people so that people become more aware and understand the necessity of the products.. 4. Regular department meeting should be organized by
department so that every one of the organization can take part in the decision making process and they can discuss about their problems with each other and with management also. 5. The company should maintain the environment properly in
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order to have no negative impact on people in the market. 6. The company has to continue to evaluate their strategic and
flexible product development programs with the rapidly changing environment to cope up with the latest market scenario. 7. The company should plan for New Product Development ,so
the products suit the policy holders best. 8. There should be focus on advertisements through
T.V. or other Electronic Media. 9. Try to make Brand Image, with the help of Bajaj
Auto, more & more as it has a strong brand image in Indian market. 10. Make use of internet banking for increasing sales,
and also for promotion. 11. They should increase their Distribution Channels by more & more tie ups with the locals banks also, because they can help them to penetrate in Indian market easily. 12. There should be more incentives to ICs as they are the backbone of the company in order to increase sales they have to do more efforts than others.
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The SWOT ANALYSIS has been done on the basis data collection, expert opinions.
STRENGTH
Strong human resources Very strong and good brand image Peoples perception about the company is very strong Good product reputation all over India World class product concepts Proved through application Scope for R&D Huge product demand in the state. Efficient customer service Satisfied customers Rapid growing tendency
WEAKNESS
Small & limited customer base. Using best but old product design . Apparent charges of product is high.
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Long payback period. Slow in flow if cash because of market condition. Inability to utilize full work force. No. of product is limited. Antipathy to extend product line. Low investment tendency for R&D purpose.
OPPORTUNITY
Growing tendency in Indian Life Insurance Industry. Industrialization ratio is very high ,so demand of the product is
also high. Well designed policy creating new market. Urbanization policy of the country creating good business
opportunity for marketing . Impact of change life style also creating market. Increasing the advertisement it can built more brand image
THREAT
Multinational companies are capturing the existing market Cheaper product from the competitors. Need huge capital investment as payback period is long Company has to depend on IRDA rules. So there is no
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certainty how much initiatives it can take in a financial year. Difficult to compete with lot of multinational companies. Being a private company general people do not want to trust .
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PART III
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I) Appendix
The current millennium has unfolded new business rules. The most significant of them being that past history or experience in a given product market is no indicator of future success. Market leadership can not be taken for granted because customer loyalty does not exit. In an era of seamless markets, the customer today has a much wider choice. He / She do not have to adhere only to the local available brands /services. Over a period of time, wooing and cajoling the customer will only intensity. Today marketers have pulled out almost every weapon from their armory to retain and expand their brands and share in the consumers mind. Internet has today reduced the gap between different societies. This gap which was in account of physical distance. Information and knowledge has now become redundant. Today we are seeing the emergence of global society and universal value. One such universal value related to the concept of time. It is no more perceived as infinite , and hence time is an indicator of opportunity. An organization, competitiveness is greatly determined by its ability to respond within a time frame, determined by the market forces and not by its own competencies .The Hindu concept of time, which is eternal, and continuing, seems to loose its meaning in this era of information super highways. Another impact of the net revaluation is the new concept of value. More and more customers have and will come to expect global products and services at local prices. In other words, organizations cost structure will have to be globally competitive. Only then will customers get their value for money. Thus the mere fact that an organization is offering a premium quality product will not be a sufficient reason to motivate customers to buy it. Development of telecommunication will further contribute to the emergence of these universal concepts which will affect customers definition of time and value. Mobile telephone also has altered the concept of space time and location.
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The net is also linking to change the concept of nation state. It is that these statuses will not exist but their role will change. The governments of these countries will continue to play a role in maintaining their cultural diversity and sovereignty. They will cooperate with other societies in areas like security, taxation, censorship and ownership etc. one of the direct outcomes of this seamless global society therefore will be the culture of openness and transparency.
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II) BIBLIOGRAPHY
Books :
Research Methodology / Kothari C.R. - Wishwa Prakashan,1999 . Principles of Marketing / Kotler P. and Armstrong G. New Delhi, Prentice Hall of India , 2005. Marketing Management Analysis , Planning, Implementation and Control / Kotler P. - New Delhi , Prentice Hall of India , 1999. Marketing Management / Saxena Rajan - Tata McGra Hill , 1999. IRDA Guideline Books of SMU Business Journal
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III) References
Data collect from :
Official Documents available from BALIC Zonal Office Documents available from Industry Data Collected from different tied Banks Data Collected from IRDA Office Data Collected from Broking Agencies Customer feedback data collected from sales personnel
Websites:
www.quickmba.com www.bajajallianz.com
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