Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates – Allianz AG, one of the world’s largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufactures in the world.
Characterized by global presence with a local focus and driven by customer orientation to establish high earnings potential and financial strength, Bajaj Allianz Life Insurance Co. Ltd. was incorporated on 12th March, 2001. The company received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance business in India.
Bajaj Allianz Life Insurance :
Ø Is the fastest growing private life insurance company in India.
Ø Currently has over 3,00,000 satisfied customers.
Ø It is having customer care centres in 155 cities with 28000 Insurance consultant providing the finest customer service.
Ø One of India’s leading private life insurance companies.
Allianz Bajaj :
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 174000 employee’s. 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 :
Ø Property and Casualty Insurance.
Ø Life and Health Insurance.
Ø Asset Management and Banking.
Allianz AG – A Global Financial Powerhouse :
Ø Worldwide 2nd Gross Written Premiums – Rs. 446654 Cr.
Ø 3rd largest Assets Under Management (AUM) and largest amongst insurance cos. – AUM of Rs. 5196959 Cr.
Ø 12th largest corporation in the world
Ø 49.8% of global business from life insurance.
Ø Established in 1890, 110 yes of Insurance expertise
Ø 70 countries, 173750 employees worldwide.
Bajaj Group :
Bajaj Auto Ltd. the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand image and brand loyalty synonymous with quality and customer focus.
A Strong Indian Brand – Hamara Bajaj :
Ø 21 million – vehicles on the roads across the globe.
Ø One of the largest 2 and 3 wheeler manufacturer in the world.
Ø Managing funds of over Rs. 4000 Cr.
Ø Bajaj Auto finance one of the largest auto finance cos. In India.
Ø Rs. 4744 Cr. Tumover and Profits of 538 Cr. in 2002-03
Ø It has joined hands with Allianz to provide the Indian consumers with a distinct option in terms of life insurance products.
Ø As a promoter of Bajaj Allinz Life Insurance Co. Ltd. Bajaj Auto has the following to offer.
Ø Financial strength and stability to support the Insurance Business.
Ø A strong brand - equity.
Ø A good market reputation as a world class organization.
Ø An extensive distribution network.
Ø Adequate experience of running a large organization.
Bajaj Allianz General Insurance :
Bajaj Allianz is the fastest growing general insurance company in India.
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business (Including Health Insurance Business) in India. The company has an authorized and paid up capital of Rs. 110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany.
INTRODUCTION TO LIFE INSURANCE
Your family counts on you every day for financial support : food shelter, transportation, education and much more. Insurance provides you with that unique sense of security that no other from of investment provides. It gives you a sense of financial support especially during the time of crisis irrespective of the fluctuation in the stock market. Insurance provides for your career goals right from your childhood years.
Life insurance is all about making sure your family has adequate financial resources to make those plants and dreams come true. It provides financial protection to help your family or business to manage after your death.
Few of the life insurance policies are :
Whole life policies : Cover the insured for life. The insured does not receive money while he is alive, the nominee receives the sum assured plus bonus upon death of the insured.
Endowment policies : Cover the insured for a specific period. The insured receives money on survival of the team and it not covered thereafter.
Money back policies : the nominee receive money immediately on death of the insured. On survival the insured receives money at regular intervals during the term. These policies cost more than endowment with profit policies.
Annuities/Children’s policies : The nominee received a guaranteed amount of money at a pre-determined time and not immediately on death of the insured. On survival the insured receives money at the same pre determined time. These policies are best suited for planning children’s future education and marriage costs.
Pension scheme : Are policies that provide benefits to the insured only upon retirement. If the insured dies during the term of the policy, his nominee would receive the benefits either as a lump sum or as a pension every month.
Since a single policy cannot meet all the insurance objectives, one should have a port folio of policies covering all the needs.
CHAPTER – 2
PURPOSE AND NEED OF INSURANCE PURPOSE AND NEED OF INSURANCE
1. Assets are insured, because they are likely to be destroyed or made non functional, through an accident occurrence. Such possible occurrences are called perils. Fair, foods, breakdowns, lighting, earthquakes, etc. are perils. The damage these perils may cause the asset it the risk that the asset is exposed to.
2. The risk only means that there is a possible or loss or damage. It may or may not happen. There has to be an uncertainty about the risk. Insurance is done against the contingency that is may happen. Insurance is relevant only if there are uncertainties. If there is no uncertainty about the occurrences of an event, it cannot be insured against.
3. There are other mean of the term ‘risk’. To the ordinary man in the street ‘risk’ is also used to refer to the peril or loss-producing event. For example, it I said that fire insurance covers the risk of fire, explosion, cyclone, flood etc. again, it is used to refer to the property covered by insurance, for example, a timber construction is considered to be a bad ‘risk’ for fire insurance purpose. Here, the term ‘risk’ for fire insurance purpose. Here the term ‘risk’ refers to the subject matter of insurance.
4. Conceptually, the mechanism of insurance is very simple. People who are exposed to the same risks come together and agree that, if any one of the ‘members’ suffers a loss, the others will share the loss and make good to the person who lost. All people who sent goods by ship are exposed to the same risk related to water damage, ship are exposed to the same risk related to water damage, ship sinking, piracy, etc. Those owning factories are not exposed to different kinds of risks like, fire, hailstorms, earthquakes, lighting, burglary, etc. Like this different of risks can be identified and separate groups made, including those exposed to such risks. By this method, the risk is spread among the community and the likely big impact on one is reduced to smaller manageable impacts on all.
5. The manner in which the loss is to be shared can be determined before hand. It may be proportional to the likely loss that each person is likely to suffer, which is indicative of the benefit he would receive if the peril befell him. The share could be collected from members after the loss has occurred or the likely shares may be collected in advance. At the time of admission to the group. Insurance companies collect in advance and create a fund from which the losses are paid.
6. A human life is also an income-generating asset. This asset also can be lost through unexpectedly early death or made nonfunctional through sickness and disabilities caused by accidents. Accidents may or may not happen. Death will happen. But the timing is uncertain. If it happens around the time of one’s retirement, when it could be expected that the income will normally cease, the person concerned could have made some other arrangements to meet the continuing needs. But if it happens much earlier when the alternate arrangements are not in place, insurance is necessary to help those dependent on the income.
7. In the case of a human being, he may have made arrangements for his needs after his retirement. These would have been made on the basis of some expectations like he may live for another 15 years, or that his children will look after him. If any of these expectations do not become true, the original arrangement would become inadequate and there could be difficulties. Living too long can be as much a problem as to young. These are risks, which need to be safeguarded against. Insurance takes care.
8. Insurance does not protect the asset. It does not prevent its loss the due to the peril. The peril cannot be avoided, through insurance. The peril can sometimes be avoided, through better safety and damage control management. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on that asset. It compensates, may not be fully, the losses, only economic or financial losses can be compensated.
9. The concept of insurance has been extended beyond the coverage of tangible assets. Exporters run the risk of the importers in the other country defaulting as well as losses due to sudden changes in currency exchanges rates, economic policies or political disturbances. These risk are not insured. Doctors run the risk of being changes with negligence and subsequent liabilities for damages. The amounts in question can be fairly large, beyond the capacity of individuals to bear. These are insured. Thus, insurance is extended to intangibles. In some countries, the voice of a singer of the legs of a dancer may be insured, though the advantage of spread may not be available in these cases.
10. Satisfaction of economic needs requires generation of income of some source. If the property, which is the source of such income, were lost fully or partially, permanency or temporarily, the income too would stop. The purpose of insurance is to safeguard against such misfortunes by making good the losses of the unfortunate few, through the help of the fortunate many, who were exposed to the same risk but saved from the misfortune. Thus essence of insurance is to share losses and substitute certainty by uncertainty.
11. There are certain basic principles, which make it possible for insurance to remain popular and fair arrangements. The first is the fact that people are exposed to risks and that the consequences of such risk a difficult for any one individual to bear. In become bearable when the community shares the burden. The second is that no one person should be in a position to make the risk happen. In other words, none in the group should se fire to his assets and ask others to share the cost of damage. This would be taking unfair advantage of an arrangement put into place form the risks they are exposed to. The occurrence has to be random, accidental, and not the deliberate creation of the insured person.
HOW INSURANCE WORKS
People facing common risks come together and make their small contributions to a common fund. The contribution to be made by each person is determined on the assumption that while it may not be possible to say, on the basis of past experiences, how many persons, on a average, may suffer losses. The following two examples explain the above concept of insurance.
Example – I
In a village, there are 400 houses, each valued at Rs. 20000. Every year, one the average 4 houses gets burnt, resulting into a total loss of Rs. 80000. If all the 400 owners come together and contribute Rs. 200 each, the common fund would be Rs. 80000. this is enough to pay Rs. 20000 to each of the 4 owners whose houses got burnt. Thus the risk of 4 owners is spread over 400 houses – owners of the village.
Examples – II
There are 1000 persons who are all aged 580 and are healthy. It is expected that of these 10 persons may die during the year. If the economic value of the loss suffered by the family or each dying person is taken to be Rs. 20000 the total loss would work out to Rs. 200000, If each person of the group contributes Rs. 200. This would be enough to pay Rs. 20000 to the family of each of the ten persons who die. Thus 1000 persons share the risks in cases of 10 persons.
ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT
ü For economic developments, investments are necessary. Investments are made out of savings. A life insurance company is a major instrument for the mobilization of the savings of people, particularly form the middle and lower income groups. These savings channeled into investments for economic growth.
ü An insurance company’s strength lies in the fact that huge amounts are collected and pooled together. These amounts come by way of premiums. Every premium represents a risk that is covered by that premium. In effect therefore, these vast amounts represent pooling of risks. The funds are collected and help in trust of the benefit of the policyholders. The management of insurance companies are required to keep this aspect in mind and make all its decisions in ways that benefit the community. This applies also to its investments. That is why successful insurance company would not be found investing in speculative ventures. Their investment benefits the society as large.
ü The systems of insurance provides numerous direct and indirect benefits to the individual and his family as well as to industry and commerce and to the community and the nation as a whole. Who insure, both individuals and corporate, are directly benefited because they are protected from the consequences of the lost that may be caused by the accident or fortuitous event. Insurance, thus, in a sense protects the capital in industry and releases the capital for further expansion and development of business and industry.
ü The very existence of risk that is, uncertainty concerning the future, is a severe handicap in economic activities, insurance removes the fear, worry and anxiety associate with this future uncertainty and thus encourages free investment of capital in business enterprises and promotes efficient use of existing resources. Thus insurance encourages commercial and industrial development an thereby contributes to a vigorous economy and increased national productivity.
ü Present day organization of industry, commerce and trade depend entirely on insurance for their operation, Banks are financial institutions lend money to industrial and commercial undertakings only on the basis of the collateral security of insurance. No bank and financial institution would advance loans on property unless it is insured against loss or damage by insurable perils.
ü Insurance are closely associated with several agencies and institutions engaged in fire loss prevention, cargo loss prevention, industrial safety and road safety. Insurer have established the loss prevention association of India with the objectives of creating an awareness for the need for loss prevention and implementing loss prevention measurers in the various sector of the economy, thereby increasing productivity and saving national wealth. The Salvage corps of Loss Prevention Association of India work in close collaboration with the fire brigades in the event of fire losses. Whereas the main function of the fire brigades is to extinguish the fire, the function of the salvage corps is to save the property from further damage by water, smoke and heat and to take care of the salvage.
ü Before acceptance of risk, Insurers arrange survey and inspection of the property to be insured, by qualified engineers and other experts. The objective of this survey is not only to assess the risk purposes but also to suggest and recommend to the insured, various improvement in the risk, which will attract lower rates of premium and what is more important, reduce the loss potential. For example, burglary surveyors make recommendation in regard to security measures such as better locking systems, appointment of watchmen, etc. engineering surveys play a most useful part in accident prevention as valuable technical advice in provided in respect of plant and machinery.
ü Insurance ranks with export trade, shipping and banking services as earner of foreign exchange to the country. Indian insurers operate in more than 30 countries through agencies, branches and subsidiary/associated companies. These operations earn foreign exchange and represent invisible exports.
ü Cattle and other livestock as also equipment like pump sets etc. are important for rural economy. The various rural insurance schemes provide necessary financial protection against loss or damages.
CHAPTER – 3
PROJECT PROFILE PROJECT PROFILE
2.1 Title of the study
“Consumer Awareness and satisfaction about the various insurance plans provided by different Life Insurance Companies.”
2.2 Objectives of the study
1. To find out consumer’s awareness about private life insurance companies.
2. To rank out difference life insurance companies on the basis of customer preference.
3. To know that up to what extent a customer is satisfied with the company in which the has invested.
Significance of the study
Every research is conducted to fulfill certain objectives and these objectives in turn fulfill some purpose and are of significance for one or more than one partly these research is significant for :-
1) To the Researcher
This study the researcher a practical insight of various activities and functions of the Insurance company.
The researcher will also be able to develop on in depth knowledge of insurance sector.
The study is also required for the partial fulfillment of the requirement for the degree of M.B.A. as per the curriculum.
2) To the company
The study would help Allianze Bajaj to know the consumer’s awareness, perception and satisfaction level towards insurance plan.
3) To others
The study will be helpful to other students also who are interested to know all the detail about the insurance sector for further study regarding insurance plan.
2.6 Limitations of the study
Though tried to take care, to make the research work exhaustive, still the researcher could not rule out the presence of few and unavoidable flows in research.
The research was restricted to Udaipur city only, so it was difficult to generalize the interpretations would be make out of the findings.
The researcher has to depend upon the information provided by the respondents, which might be false as respondents are very reluctant in providing right information.
The conclusion arrived at are based on very less experience of the researcher in the field of insurance.
The time provided for the collection of data was a major constraint and increased size could give better result.
PLANS
Allianze Bajaj Child Care Plan
Tailor made to suit your children’s need-be it education marriage, etc.
Payment of premium limited till age 21 or age 24 of the child.
Payout begins at age 18, when money is required for entry into college. In case the maturity age is 21, the payouts are made at age 18, 19, 20 and 21. In case the maturity age is 24, the payouts are made at age 18, 20 and 24.
In case of death or accidental permanent total disability of the policyholder during the premium payment term, all future premiums are waived.
In addition, FIB that pays 1% of the sum assured per month (12% per annum) is paid till the end of the policy term to sustain the family and ensure that the education the child is not affected.
The start of life benefit is also available that pays an additional sum assured with the final payout, in case of death or accidental permanent total disability of the policyholder.
Allianze Bajaj Invest Gain Plan
Because life has a second chance.
It’s one of its kind participating savings cum protection plant that gives you a lump sum at the policy term.
The only savings pan that offers a FIB to sustain the regular income of the family.
On death or accidental permanent total disability, FIB pays a monthly income of 1% of sum assured (12% per annum) till the end of the policy term or at least for a period of 10 years.
This plan offers high protection, quadruple protection going up 4 times the basic sum assured.
Available as invest gain economy, gold (double cover), diamond (triple cover, platinum (quadruple cover) a host additional benefits to select from – FIB, CAP, CI, HCB.
Allianze Bajaj Risk Care Plan
A pure term insurance plan.
Offers financial security to your loved ones at very economical rates.
Offers you the option to pay premiums regularly or just ones and get covers for a period of your choice and an amount of your choice.
Allianze Bajaj Save Care Economy Single Premium Plan
A single premium investment plan for 10 years.
The plan participating in the profits of the company.
Offers good return; and high risk covers as a financial safety net to provide for unpredictable adversities.
Offers high liquidity.
Ideal for parking lump sum income like bonuses.
Allianze Bajaj Swarn Vishranti Plan
A plan that helps you plans for & enjoys your life after retirement.
The ideal plan to combine your retirement capita building and life insurance requirements.
It enjoy tax benefits under Section 80CCC(1)
You have the option to enhance your life cover and buy additional protection with the help of your term cover.
In addition you can choose from the following additional benefits : FIB, CAP, CI and HCB.
You have the option to take out 33% at vesting age. The balance will be used to purchase an immediate annuity to provide you with a regular income post retirement.
You have the option to purchase an immediate annuity from Allianze Bajaj or any provider at the time of vesting.
Allianze Bajaj Term Care Plan
A term insurance plan.
Premiums paid are returned at maturity.
Offers you the option to pay premium regularly or just once and get cover for a period of your choice and an amount of your choice.
Allianze Bajaj Life Time Care Plan
A whole of life plan that pays out maturity benefits at age 80.
Low cost savings plan that has limited premium payment options.
Your contribution grows by the way of compounded annual bonuses.
Ideal for young people to build a saving habit.
Available life time care economy (base package), life time care protect (protection in case of accidents), life time care health (protection incase of hospitalization and critical illness), life time care total (protection in case of accidents, hospitalization and critical illness).
Allianze Bajaj Cash Gain Plan
A unique participating money back plan.
Available in widest range of terms : 15, 20, 25, 30 years.
A cash payout is made every 1/5th of the term, ensuring that your receive money more frequency in this plan.
75% of the sum assured is paid out in the first four cash payouts. 50% of the sum assured is paid on maturity, taking guaranteed payouts to 125% of the sum assured.
In addition, you will receive the compounded reversionary bonuses declared by the company at maturity (non guaranteed)
This is the only money back plan that offers quadruple protection going up 4 times the basic sum assured.
Available as cash gain economy, gold (double cover), diamond (triple cover), platinum (quadruple cover).
The only money back plan that offers a family income benefit to sustain the regular income of the family.
On death or accidental permanent total disability, FIB pays a monthly income of 1% of sum assured (12% per annum) till the end of the policy term or at least for a period of 10 years.
A host of additional benefits to select from- FIB, CAP, CI, HCB.
THE SELLING PROCESS
Selling process which is complex communication and learning process for sales personal and the prospective customer. A variety of analytical and administrative duties are important component of it.
STEPS IN SELLING PROCESS
(1) Processing
1. Prospecting
(i) Identify and potential
(ii) Quality customer
2. Preparing
(i) Pre approach call planning
3. Presentation
(i) Approach demonstration
4. Handing Objections
5. Closing
6. Follow up
(1) Prospecting
The Selling process begins with prospecting or finding qualified potential customers. Prospecting involves two major activities.
(a) Identifying potential customers also known as prospects
(b) Qualifying them in order to determine if they are valid prospects.
(A) Identifying Prospects : Few techniques and sources for finding prospects are discussed below :-
Present Customer :- Sales persons existing satisfied customers. It is much easier to sell additional gods and services to existing customers than to attract new customers.
Endless Chain :- In this method consumer’s use satisfied customers as source of referrals, sales representatives ask current customers for names of friends or business associates who might need similar product or services.
Centre of Influence :- A centre of Influence, a person with information about other or influence over them that can help a sales person identify good prospects.
Spotters :- Spotters are usually ‘sales trainees’ who help sales person identifying prospects, this saving time and qualifying sales lead.
Cold Call :- Involves Knocking on doors. The sales person makes contact with a potential customers, introduces himself or herself, and as per if there is a use for product or service.
Directories :- Telephone directory is most obvious one.
Mailing lists :- Specialized companies compile lists of individuals and organizations for direct mail advertisers.
(B) Qualifying Prospects
Once the sales person has identified, potential customers, he or she must qualify them to determine, if they are valid prospects. One approach to qualifying often called MAN (money, Authority, Need) approach.
(2) Preparation :- This stage involves two key activities per approach and call planning.
(a) Pre-approach :- This step includes all the information gathering activities necessary to learn relevant facts about the prospects and his or her needs and situations.
(b) Call Planning :- Involves a specific planning sequence. The sales person defines the objective of the call, devise a selling strategy to achieve this objective, and makes the appointments.
(3) Presentation :- Objectives is to explain how the product meets the special needs of the consumers.
Sales Presentation is classified into five different categories:-
SALES PRESENTATION
(1) Fully Automated
(i) Film or slide presentation
(2) Semi Automated
(i) Brochures or Literatures
(3) Memorized
(i) Company message
(4) Organized
(i) Outline or checklist
(5) Unstructured
(i) Explore the problems
Sales presentations comprises of two distinct activities approach and demonstration :-
(a) Approach :- Four basis approach are
APPROACH
(1) Introductory approach
(2) Product approach
(3) Consumer Benefit approach
(4) Referral approach
(b) Demonstration :- The demonstration is the care of the selling process. The sales person actually transmits the information and attempts to persuade prospect through product demonstration to make a customer.
(4) Handling Objection :- Sales resistance takes the form of an objections classified as started or hidden.
State their objections to a proposition openly and give the sales person a chance to ans. Them Hidden objection keep the prospect talking by asking probing question
Hidden the insights gained through experience in selling the product, combined with a knowledge of the prospect situation, to perceive the hidden objection.
(5) Closing :- Few effective closing techniques, action technique, gifts close technique, yes close technique, direct close technique.
(6) Follow Up :- After sales activities are important part of the whole selling process effective sales follow-up reduces the buyers doubt about the product or Services and improves the chance that the person will buy again in future.
CHAPTER – 4
RESEARCH METHODOLOGY RESEARCH METHODOLOGY
Research Methodology is the backbone of any research undertaken.
The whole study was basically based on collection of data from primary sources but secondary sources were also used.
Research methodology deals with the efficient plan and decisions on sources of gathering the needed on data, Research Instrument to be used, Research design, Contact method, Analysis and Interpretation.
Methodology has been extensively discussed under the heading given below on the following :-
Research Design
Collection of Data
Research Instrument and contact method Sampling plan
Field work
Research Design
Research Design is the overall description of all the steps thought which the projects has proceed form the setting of objectives to the writing of the project report.
Below is given the various steps in brief of the research design for the project.
Research Objective
The Research is designed to assess the satisfaction level of customer.
To Generate awareness of the different plans of the Baja Allianze.
Find out the purpose / need of keyman cover.
To Generate awareness of the keyman insurance.
To find the inclination of the consumer towards a different Pvt. Life Insurance source of this gathering the information required for reaching the objectives of this project.
The questionnaire deals with all types of questions necessary together information required for the project information gathered from the consumer was the entirely the primary data. Both primary and secondary data were used for tabulation and analysis of the information to obtain results.
Data Sources
Data was gathered through primary and secondary data.
Primary Sources : It consists of original information gathered for the specific purpose the data is generally collected by survey. Primary sources were preferred because of its relevance to the issue to have a focused approach due emphasis was given to obtain accurate information from the respondent.
Secondary Data : It consists of information that already exists having been collected for another purpose. With the help of secondary data collected from various magazines, newspapers and trade Journals, market patterns.
RESEARCH INSRUMENT AND CONTACT METHOD
Survey method was used to collect the primary data on various parameters by way of personal interviews supported by a well structured questionnaire. Questionnaire is enclosed in last.
Sampling Plan
This calls for 2 decisions :
Sample unit : Who are to be surveyed.
Sample size : How many are to be surveyed
Going by the sampling objectives of the study there was all those sales team manager, C.A., Tax consultant, ICC etc. which are considered to be a sample unit and together constitute universe. Respondents were incorporated in he study on the basis of simple random sampling technique.
FIELDS WORK
Mainly the company’s agent is doing their field work.
S.T. M. (sales team managers) recruit the agents and agents work is that, they give fixed % of Business to S.T.M. and this Business basically work for the personal selling and agents receives that, fixed % of commission on it.
CHART SHOWING % OF INCOME SPEND
No. of Respondents
Family Budget
60
Saving & Investment
20
Life Insurance
10
Others
10
Most of the income of any family is spent on family Budget, which is 60% of total income and second place family spent its income on Saving and Investment, i.e. 20% of total income and at last income spent in. Life Insurance and other. This is 10% of total income which shows that downward and graph towards the insurance ……
CHART SHOWING SATISFACTION % OF INVESTMENT
No. of Respondents
Highly Satisfied
30
Moderately Satisfied
50
Dissatisfied
20
We found that the maximum person is moderately satisfied with the company, in which they invested. This ratio is 50% of the total investment. And at the secondly, we have interpreted that highly satisfy people, of while they invested. This is 30% of the total investment and finally the people invested in their company that, they dissatisfy. This is 20% of they total invested. People are dissatisfied, because the reason that the company brand image is not very good. And some time agent could not full fill their work or target in time.
CHART SHOWING THE STUDY OF AWARENESS AMONG CUSTOMERS
No. of Respondents
Media
30
Personal Contact
50
Brand Image
20
When again an imaginary situation was given to the persons that which think can change your decision regarding investment in Pvt. LIC 50% people said that personal contact can affect the investment decision, 30% person went to media 20% said to that brand image effect there decision.
CHART SHOWING INVESTMENT IN THE COMPANY
No. of Respondents
Yes
70
No
30
70% of the people said yes because they are aware of IRDA and they know the IRDA is regulating body of govt.
30% of people said not sure as they had take policy either from their friends or relative. As by investing the funds in this company one gets fully satisfied by using the various benefits provided by the company and with stops us to (go) divert to any other company for investment.
CHART SHOWING THAT % OF NEW COMPANY ARE BETTER THAN PRESENT COMPANY
No. of Respondents
Withdraw Policy
5
Make New Investment
80
Leave it such
15
When an ideal imaginary condition had been given to the persons about private LIC that it would be the better option for them. 80% of them were interested in choosing the option of new investment, and 15% wanted to leave the old policies as such but 5% people wanted to withdraw current policy.
CHART SHOWING % OF INVESTMENT DECISION WITH FAMILY SUPPORT
No. of Respondents
No
10
Fully
70
As per Conditions
20
It has been clear in Graph that maximum people take decision of investment with there fully support of their family this is 70% because is meant for their beloved ones, and other people took decision of investment as per condition. That is 20% and finally 10% such people they took decision won.
GRAPH SHOWING ORDER OF PREFERENCE OF PRIVATE LIFE INSURANCE COMPANY
No. of Respondents
Bajaj Allianz
20
ICICI Prudential
10
Aviva
3
Max New York
6
Birla Sun Life
5
Om Kotak
5
TATA AIG
1
HDFC Life Standard
5
LIC
45
It has been clear in the graph that LIC is the leading company in the market and 45% of the respondents wants to invest their money in LIC in order to have security of funds and rest of the % of respondents go for private life insurance company.
CHART SHOWING % OF DECISION AFFECTED
No. of Respondents
Yes
70
No
10
Not Sure
20
We found that 20% of total said that they are not sure about their company in which they invested because they did not have sufficient knowledge of the products, 70% of them said that yes because they enjoyed the benefits of Bajaj Allianz but only 105 person went to negative side.
FACTS AND FINDINGS
Responses
No. of Respondents
Agree
97
Indifferent
3
Disagree
0
INSURANCE PROVIDES LIFE LONG BENEFITS
AWARENESS ABOUT THE PRIVATE LIFE INSURANCE COMPANIES
Responses
No. of Respondents
Yes
39
No
61
AWARENESS ABOUT PRIVATE LIFE INSURANCE COMPANIES
REMEMBERING POWER OF THE RESPONDENTS ABOUT THE PRIVATE LIFE INSURANCE COMPANIES
Responses
No. of Respondents
ICICI Prudential
33
Bajaj Allianz
29
Birla Sun Life
21
TATA AIG
19
Max New York
11
HDFC Life Standard
10
OM Kotak
8
Aviva
5
AMP Sanmar
1
Vyasya
1
REMEMBERING POWER
AWARENESS ABOUT THE FIRST PRIVATE LIFE INSURANCE COMPANY CAME IN UDAIPUR CITY
Responses
No. of Respondents
Yes
21
No
79
Responses
No. of Respondents
Bajaj Allianz
12
ICICI Prudential
6
TATA AIG
3
AWARENESS ABOUT THE FIRST PRIVATE LIFE INSURANCE COMPANY
ARE YOU INSURED
Responses
No. of Respondents
Yes
53
No
47
RESPONDENTS INSURED
FACTORS FOR TAKING POLICY
FACTORS FOR TAKING INSURANCE POLICY
Respondents came to know about any new policy of the life insurance from
Responses
No. of Respondents
Video Media
23
Newspaper
17
Friends and Relatives
11
Word of mouth
7
Insurance Consultant
42
Other
0
RESPONDENTS SATISFACTION WITH THE COMPANY IN WHICH THEY HAVE INVESTED
Responses
No. of Respondents
Highly Satisfied
16
Moderately Satisfied
4
Can’t say
77
Dissatisfied
3
Highly Dissatisfied
0
RESPONDENTS GET KNOWLEDGE ABOUT INSURANCE POLICY FROM
RESPONDENTS GET KNOWLEDGE ABOUT INSURANCE POLICY FROM
RESPONDENTS PREFERENCE FOR THE OTHER’S TO INVEST IN THE COMPANY IN WHICH THEY HAVE INVESTED
Responses
No. of Respondents
Yes
16
No
7
Can’t sary
77
RESPONDENTS PREFERENCE FOR THE OTHER’S TO INVEST IN THE COMPANY
RESPONDENT’S ORDER OF PREFERENCE REGARDING LIFE INSURANCE COMPANIES
Company Name
Rank I
Rank II
Rank III
Rank IV
LIC of India
29
1
2
7
ICICI Prudential
5
24
6
4
Bajaj Allianz
3
7
27
2
Birla Sun Life
1
3
4
2
TATA AIG
1
2
5
0
RESPONDENTS PREFERENCE FOR THE OTHER’S TO INVEST IN THE COMPANY
RESPONDENTS AWARENESS ABOUT THE BAJAJ ALLIANZ LIFE INSURANCE COMPANY
Responses
No. of Respondents
Yes
23
No
71
AWARENESS ABOUT THE BAJAJ ALLIANZ LIFE INSURANCE COMPANY
AWARENESS ABOUT THE COMPANY
RESPONDENTS RESPONSE IF NEW/EXISTING COMPANY WILL OFFER MORE THAN THE PRESENTLY INVESTED?
Responses
No. of Respondents
Withdraw Policy
7
Make New Investment
6
Leave it Such as
10
Can’t say
77
Other
0
RESPONDENTS WHO MANT TO PURCHASE THE PLAN
IF NEW COMPANY COMES
RESPONDENTS RESPONSE IF NEW COMPANY COMES
ANALYSIS
1) In the survey when the respondents were asked what insurance provides life long benefits then the following results were obtained :
Responses
No. of Respondents
Agree
97
Indifferent
3
Disagree
None
97% of the respondents were agreed about this statement and 3 % of respondents said that they are indifferent about this fact.
2) When the respondents were asked hat they are aware about the Private Life Insurance Companies or not then the following results were obtained
Responses
No. of Respondents
Yes
39
No
61
39% of the respondents said that they aware about the private life insurance companies, and 61% of the respondents said that they are not aware about the Private Life insurance companies.
3) When the respondents were asked to remember some names of the Private Life Insurance Companies then the following results were obtained
Sr. No.
Responses
No. of Respondents
1
ICICI Prudential
39
2
Bajaj Allianze
29
3
Birla Sun Life
21
4
TATA AIG
19
5
Max New York
11
6
HDFC Life Standard
10
7
OM Kotak
8
8
AVIVA
5
9
AMP Sanmar
1
10
VYASYA
1
33 of the respondents remembered ICICI Prudential,29 responded Bajaj Allianze, 10 responded HDFC Life Standard, 21 responded Birla Sun Life, 19 responded TATA AIG, 8 responded OM Kotak and 11 responded Max New York.
4) When the respondents were asked to remember the first private life Insurance company came in Udaipur City then the following results were obtained
Responses
No. of Respondents
Yes
21
No
79
21% of the respondents said that they are aware about it. Rest 79% responded that they were not having knowledge about it.
Responses
No. of Respondents
Bajaj Allianze
12
ICICI Prudential
6
TATA AIG
3
Out of 21, 12 of the respondents responded Bajaj Alliaze, responded ICICI Prudential and 3 responded TATA AIG. Only 12 of the respondents have the perfect knowledge.
5) When the respondents were asked are they insured then the following results were obtained
Responses
No. of Respondents
Yes
53
No
47
53% of the respondents were having life insurance policy and rest al 47% of respondents were not insured.
6) When the respondents were asked are they aware about the plan provided by different life insurance companies then the following results were obtained.
Responses
No. of Respondents
Yes
26
No
74
26% of the respondents were having knowledge about plant and rest 74% were not aware about the plans.
7) When the respondents were asked, are they having any of the plans provided by different life insurance companies then the following results were obtained.
Responses
No. of Respondents
Yes
23
No
77
23% of the respondents were having the plans and rest 77% were not having any plan.
Out of 23 respondents who were having the plans, 74% of the respondents.
Were having the policy from LIC of India, 9% from Bajaj Allianze and ICICI Prudential and 4% from Biral Sun Life and TATA AIG.
8) When the respondents were asked about the Factors taken into consideration before taking any policy from the Life Insurance Company then he following results were obtained.
Responses
No. of Respondents
Agent’s Influence
10
Company’s Brand Image
73
Company’s Product
17
Other’s
None
Other of total responses 73% of the respondents responded company’s brand image as the prominent factor, 17% responded company’s product, and 10% responded agent’s influence as the prominent factor before taking any policy of life insurance.
9) When the respondents were asked about how they come to know about any new policy of the life insurance then the following responses were obtained.
Responses
No. of Respondents
Video Media
23
Newspaper
17
Friends and Relatives
11
Word of mouth
7
Insurance Consultant
42
Other
None
42% of the respondents responded insurance consultant, 23% Video Media, 17%
Newspaper, 11% Friends and Relative and 7% responded word of mouth.
Company name
LIC of India
Bajaj Allianz
ICICI Prudential
Birla Sun Life
TATA AIG
Video Media
4
-
1
-
-
Newspaper
2
-
-
-
-
Friend and Relatives
1
-
-
-
-
Word of mouth
-
-
-
-
-
Insurance Consultant
10
2
1
1
1
For LIC of India 10% responded insurance Consultant, 4% Vidoe media, 2% Newpaper and 1% get knowledge from Friends and relatives. for all other companies respondents responded insurance consultant as the main factor for getting knowledge about any new policy of the life insurance.
10) When the responded were asked about are they satisfied with the company in which they have invested then the following responses were obtained.
Responses
No. of Respondents
Highly Satisfied
16
Moderately Satisfied
4
Can’t Say
77
Dissatisfied
3
Highly Dissatisfied
0
16% of the respondents said that they are highly satisfied, 4% moderately satisfied and 3% said that they are dissatisfied.
Company name
Highly Satisfied
Moderately Satisfied
Dissatisfied
Highly dissatisfied
LIC of India
10
4
3
-
Bajaj Allianz
2
-
-
-
ICICI Prudential
2
-
-
-
Birla Sun Life
1
-
-
-
TATA AIG
1
-
-
-
For LIC of India 10 responded that they are highly satisfied, 4 Moderately satisfied, 3 said that they are dissatisfied with the company.
All the respondents who were having policy except. LIC were highly satisfied with the company in which they have invested.
11) When the respondents were asked about would they prefer the other’s to invest in the company in which they have invested then the following responses were obtained.
Responses
No. of Respondents
Yes
16
No
7
Cant’ Say
77
16% of the respondents said that they prefer the other’s to invest in the company in which they have invested and 7% of the respondents said no.
Company
No. of Respondents
Yes
No
LIC of India
10
7
Bajaj Allianz
2
-
ICICI Prudential
2
-
Birla Sun Life
1
-
TATA AIG
1
-
10 respondents of LIC of India, 2 of Bajaj Allianz, 2 of ICICI Prudential, 1 of Birla Sun Life and 1 respondent of TATA AIG respondent that they prefer others to invest in the company in which they have invested. 7 respondents of the LIC who are not satisfied with the company said no for the same.
12) When the respondents were asked to rank the different life insurance companies
Then the following responses were obtained
Company name
Rank I
Rank II
Rank III
Rank IV
LIC of India
29
1
2
7
Bajaj Allianz
5
24
6
4
ICICI Prudential
3
7
27
2
Birla Sun Life
1
3
4
2
TATA AIG
1
2
5
-
29 respondents Rank LIC of India as the first, 24 responded ICICI prudential second, 27 responded Bajaj Allianz as third rank and Birla Sul Life was holding fourth Rank.
13) When the respondents were asked that were they Aware about the Bajaj Allianz Life Insurance Company then the following responses were obtained.
Responses
No. of Respondents
Yes
29
No
71
29 of the respondents said they are aware of the company and 71 of the respondents were not aware of the company.
Influence for the company is
Responses
No. of Respondents
Magazines
2
TV
-
Newspaper
-
Internet
7
Insurance Consultant
18
Friends and relatives
2
Other
-
When the respondents were asked about the influence then out of 29, 18, responded influencer was insurance consultant, 7 responded internet, 2 responded magazines and 2 responded friends and relatives as the influencer.
14) When the respondents were asked that were they aware abouth the insurance plan of the Bajaj Allianz life insurance company then the following responses were obtained.
Responses
No. of Respondents
Yes
13
No
87
13% of the respondents responded that they aware about the insurance plan of the Bajaj Allianze life insurance company and rest 87% were not aware about it.
* When the respondents were asked that were they have insurance plan of Bajaj Allianz life insurance company then the following responses were obtained.
Responses
No. of Respondents
Yes
2
No
98
2% of the respondents responded that they have he plan of the company and rest 98% were not having it.
* When the respondents were asked that were they like to get knowledge about the insurance plan of Bajaj Allianz life insurance then the following responses were obtained.
Responses
No. of Respondents
Yes
48
No
52
48% of the respondents responded that they wanted to get knowledge about the insurance plan of the company rest 52% were not interested to get knowledge about it.
* When the respondents were asked that were they like to purchase it or not the following responses were obtained.
Responses
No. of Respondents
Yes
8
No
92
8% of the respondents responded that they like to purchase it and rest 92% were not interested to purchase it.
15) When the respondents were asked that if new/existing company will better then the presently invested company then the following responses were obtained.
Responses
No. of Respondents
Withdraw Policy
7
Make New Investment
6
Leave it such as
10
Can’t say
77
Other
-
10% of the respondents said that leave it such as, 7% responded they withdraw policy, 6% will make new investment.
Company name
Withdraw Policy
Make New Investment
Leave it such as
LIC of India
7
3
7
Bajaj Allianz
-
-
2
ICICI Prudential
-
1
1
Birla Sun Life
-
1
-
TATA AIG
-
1
-
7% respondents of LIC of India were only found who withdraw policy. 7% respondents of LIC of India, 2% of Bajaj Allianz and 1% of ICICI Prudential said that they would be consistent with the company’s policy.
CHAPTER - 5
SWOT ANALYSIS SWOT ANALYSIS
Swot analysis shows the company’s existing position. It gives information of the company in totality.
Every think has two aspects, positive and negative aspects. To overcome the threat and weakness, there are certain opportunities also available to the company to develop itself.
Strength :
ü Company believes in motivating the workers. So that best outcome can come from them.
ü The products of the company covers all types of risks.
ü The company has strong all well qualified team.
ü The company is having both traditional and non traditional products.
Weakness :
ü The company transfers the sum assured more than 5 lakh to the head office for issuing the policy.
ü Company believes in either perform or perish.
ü Employer’s turnover ration is higher than others.
Opportunity :
ü The company follows aggressive approach to capture the market.
ü The company can provide more riders.
ü The company can make its products as less costly as it can.
ü Company can try to enter those sectors, which are yet left.
Threats :
ü There is cut throat competition in the market.
ü Many new private players come into the market and apply their own monopoly.
INTERPRETATIONS
1. LIC of India come out as the most preferred insurance company where most of the investors like to spent money. It is followed by Bajaj Allianz, ICICI Prudential, Birla Sun Life and TATA AIG.
2. As the data shows that the moist of the respondents were agreed with the fact that “Insurance provides life long benefits”.
3. It is clear from the data that awareness about the insurance sector is very low. Peoples really do not aware about the private life insurance companies.
4. LIC of India, ICICI Prudential were the mostly remembered by the respondents. After that Bajaj Allianz, Birl Sun Life and TATA AIG were come in queue in remembrance.
5. Awareness about the first private company came in Udaipur City is very low.
6. It was found that only half of the respondents were having the policy of the life insurance. So it shows that peoples do not really invest in the insurance sector.
7. It was found that mostly people were having the policy of insurance from “LIC of India”, which has covered 90% of the market share. After that Bajaj Allianz and ICICI Prudential were competing with each other. Birla Sun Life and TATA AIG were unable to realize their presence.
8. As the data shows only one forth of the respondents were having the knowledge about the plants and also purchased it.
9. Company’s brand image come out as the most prominent factors taken into consideration before taking any policy from life insurance company. After that company product and company agents influence were consideration by the respondents.
10. Insurance consultant was found that most influencing factor for the customers of the life insurance policy. Videor Media, Newspaper and Friends and Relative were other prominent influencing factors.
11. Some Policy holder of the LIC were not satisfied with it. That’s why they were ready to leave the policy if any other company is better then it. For other companies all the customers of their company were satisfied, consistent, as well as they also suggest the other’s to invest in the same company in which they have invested.
12. Only one third of the respondents were aware of the Bajaj Allianz life insurance company, it shows that awareness about this company to the general public is very low.
13. Respondents were aware of Bajaj Allinz company mostly by the insurance consultant after interest and found the influencing factors for the respondents.
14. Less than 15% of the respondents were having the knowledge about the plan of Bajaj Allianz and only two have purchased it. But the people were ready to get knowledge about the plan of the company so that if they like it then they can purchase it.
CHAPTER - 6
CONCLUSION & SUGGESTIONS
CONCLUSION
Four most preferred life insurance companies :
ü As it can LIC of India was found to be as first ranked among all the insurance companies.
ü ICICI Prudential has second rank in consumer’s preference map.
ü Bajaj Allianz has got third rank, closely compositing for the second position and Birla Sun life has got fourth rank on consumer’s.
LIC of India was only found which has covered most of the market share.
Respondents were agreed with the fact that insurance provides life long benefits. So they are accepting that one should have policy of life insurance.
The private life insurance companies have to struggle very much to capture more shares of the market.
People mainly consider company’s brand image before taking any policy of life insurance from any company.
Insurance consultant were found the most influencing factor for the customers of the life insurance policy, because they are the main weapon of the company who can boots up the sales by providing best knowledge about the policy at the right time to the people.
Respondents were not having the knowledge about the insurance plan of Bajaj Allianz, but the respondent were ready to get knowledge about the insurance plan of the company so that if they life it. Then they can purchase it.
Satisfaction level of the private life insurance companies was much more than the LIC of India, so it is the clear indication for them to grown up.
The major competitor of the Bajaj Allianz company is ICICI Prudentaial and Birla Sul Life.
SUGGESTIONS
In order to survive in this area of cutthroat’s competition, it is very important for an organization to give the best to its customer. On the basis of the study conducted, the research has made a humble attempt to forward some suggestions to Bajaj Allianz life insurance Co. Ltd. Udaipur Branch :
Respondents were not having the knowledge about the insurance plan of Bajaj Allianz, but the respondent were ready to get knowledge about the Bajaj Allianz, but the respondent were ready to get knowledge about the plan of company sop the company should take legal action towards this side so that people may be aware about the plans of the company.
As it came out from data that the company is not spending much on the video media, so the company should take legal action to aware people about the company and the plans through the TV ads. It should also use more hoardings and wall painting to aware people about the company.
Company should also train its consultant to give the exact knowledge about the policy at the right time. The consultants should be regular in touch with the existing customers as well as they should be regular in to boost up the sales by getting new customers.
Number of insurance consultant is less to boost the sales of the policies, so the company should think about it.
Company should also organize training camp for the consultant for new policies so they can satisfy most in providing knowledge to the people.
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