SUMMER TRAINING REPORT ON
BRAND AWARENESS OF BHARTI AXA LIFE INSURANCE SUBMITTED TO UTTARAKHAND TECHNICAL UNIVERSITY REQUIRED IN PARTIAL FULLFILLMENT FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (2008-2010)
SUPERVISED BY: Mr. RAHUL KUCHHAL
SUBMITTED BY: SACHIN KUMAR
BEEHIVE COLLEGE OF MANAGEMENT AND TECHNOLOGY TECHNOLOGY DEHRADUN
CERTIFICATE
This is to certify that Mr. Sachin Kumar student of MBA (2008-2010) Batch, Beehive College of Management and Technology, Dehradun has successfully comp comple lete ted d his his Proj Projec ectt titl titled ed “Bra “Brand nd Awar Awaren enes esss of Bh Bhar arti ti Axa Axa Life Life Insurance” under my guidance and supervision.
I wish him commendable effort and success.
Date
Supervised By Mr. Rahul Kuchhal
ACKNOWLEDGEMENT
I am immensely thankful to God who provides me the health & ability to withstand the problem coming in my way.
I am thankful to Mr. Rahul Kuchhal Faculty of MBA Dept, Beehive College Dehradun un for his encour encourage agemen mentt and of Manage Managemen mentt and Tec Techno hnolog logy, y, Dehrad providing other assistances whenever required.
Than Th anks ks are are also also du duee to vari variou ouss empl employ oyee eess for for thei theirr co-o co-ope pera rati tion on du duri ring ng research.
CONTENTS
PAGE NO. OBJECTIVE
5
INTRODUCTION
6
COMPANY PROFILE
20
PLANS
24
RESEARCH METHODOLOGY
47
DATA ANALYSIS AND INTERPRETATION
50
CONCLUSION
60
RECOMMENDATIONS
61
BIBLIOGRAPHY
62
ANNEXURE
63
OBJECTIVE OF THE STUDY
A). To compare compare the the product product of Bharti Axa with with other companies. B). To study the market share of Bharti Axa. C). To find find out the customer customer opinion about about Bharti Bharti Axa.
INTRODUCTION
Ask anyone what his or her greatest fear is and the answer would come up with almost universal that is death. More than the fact that we will no longer be able to pursue our passion and aspiration after we have passed away is the feat that we would no longer be therefore the people we so dearly cherish. Thankfully, there is life insurance insurance to somewhat somewhat guarantee guarantee our love ones some initial initial from of sustenance in the event of our passing. A life insurance would ensure that our loved ones would receive some resources that would help cushion the pain of our loss. The amount depends on some factors, but resources are resources and they would go along, long way and making sure that the people dearest to us would be well taken cared of after our eventual death.
What is insurance? Insurance is one of life's necessities and probably the least-understood financial product. Insurance reimburses people for covered losses in the event of an unfortunate occurrence such as an illness, accident, or death. At the same time, it can encourage prevention and safety measures, provide investment capital, lend money, and help to reduce anxiety for society at large. As a mechanism against loss of income and a means of safeguarding assets, many Indians have insurance in one form or another. These coverages may include public coverage, such as disability insurance, a health care policy from an employer, or personal insurance to protect property such as homes, computers and cars.
Unders Understan tandin ding g life life insura insurance nce become becomess easier easier when when one realiz realizes es that that insurance was a concept developed to transfer a person's risks to another party, thereby protecting the insured person in the event of any calamity. Until something happens, such as a car accident, an illness, or the death of a loved one, paying for insurance may seem like buying something you'll never use. But even if you never submit a claim, insurance is an investment in your future, as important as pensions and personal investments.
BENEFITS OF LIFE INSURANCE INSURANCE Depending on its usage, life insurance gives various benefits. They are as follows: •
Income for Family
Life insurance proceeds ensure a source of financial security for your family to meet its household and living expenses. •
Pay of Debts
On the the un unfo fort rtun unat atee deat death h of the the insu insure red, d, the the proc procee eeds ds from from a life life insu insura ranc ncee po poli licy cy can can be used used to meet meet ou outs tsta tand ndin ing g debt debtss such such as mortgages, car loans or charge account balances. •
Provide Educational Funding For Children
The cash value of a whole life insurance policy can be used to help accumulate funds for the higher education of insured’s children. •
Equalize Inheritance Inheritance
When an asset such as the family business passes on to family members who are active in it, life insurance proceeds can be used to provide equal assets to other family members Apart from these there are also Investment advantages to the Insurance. While most investment options make a person’s money work harder, they are no substitutes to life insurance. That's because when a person takes up a life insurance policy, he enjoy the twin benefit of risk protection as well as returns on savings.
•
Life insurance enables a person to enjoy savings that guarantee full protection against the risk of death of the insured. These long-term
savings are made in an easy and hassle-free manner because of low and convenient installments (or premiums). •
Life insurance also encourages 'forced thrift'. This means that the insured is made to pay his/her premiums by saving his/her money, which he/she might not do in the regular course of life.
•
Some life insurance policies often allow insured to take loans against his policy, should he require money to meet any unforeseen expenditure. What's more, some life insurance policies also allow saving on taxes.
BENEFITS OF TAKING POLICY
1. Protection: Saving through life insurance guarantee financial protection
against risk of death of the policyholder. In life insurance, on death, the full assured is payable (with bonuses whenever applicable) whereas in other saving schemes, only the amount saved (with interest is payable).
2. Aid to thrift: Life insurance encourages ‘thrift’. Long term saving can be
made in a relatively ‘painless’ manner because of the easy installment facility (premi (premiums ums can be paid paid throug through h monthl monthly, y, quarte quarterly rly,, halfhalf-yea yearly rly or yearly yearly installment). The salary saving schemes properly known as SSS provides a convenient method of paying premium each month through deduction from one’s salary.
3. Liquidity: loans can be raised on endowment type and whole life policies as per policy conditions on the sole security of a policy, which has acquired a paid-up value. Besides, a life insurance is also generally accepted as security for even a commercial loan/housing loan.
4. Tax Relief: Tax relief in income tax is available for amounts paid by way of premium for life insurance subject to the income tax rules in force. Assesses can avail themselves of provisions in the law for tax relief. In such cases the assured in affect pays a lower premium for his insurance than he would have to pay otherwis e.
5.Money When You Need It: A suitable insurance plan or a combination of different plans can be taken to need specific needs that are likely to arise in future, such as children’s education, start-in-life or marriage provision or even periodical needs for cash over a predetermined stretch of time. Alternatively, policy money can be so arranged to be made available at the time of one’s retirement from service to be used for any specific purpose, such as for the purchase of a house or for other investment.
HOW DOES INSURANCE FUNCTION?
The function of insurance is to protect a person against losses he can't affo afford rd.. Th This is is do done ne by tran transf sfer erri ring ng the the risk riskss of a pers person on,, bu busi sine ness ss,, or organization -- the "insured" -- to an insurance company, or "insurer." The insurer insurer then reimburses reimburses the insured insured for "covered" "covered" losses -- i.e., those losses it pays for under the policy’s term. As the insurance consumer, one has to pay an amount of money, called a premium, to the insurer to transfer the risk. The insurer pools all its premiums into a large fund, and when a policyholder has a loss, the insurer draws funds from the pool to pay for the loss. Life is full of unexpected events that can create large financial losses. For example, whenever you drive, it is possible that you may have a costly accident. Risks affect you by causing worry about poten potentia tiall loss loss and how to deal deal with with the conseq consequen uences ces.. Insura Insurance nce reduc reduces es anxiety over a possible loss and absorbs the financial brunt of its consequences
EVOLUTION OF INSURANCE
One of the earliest forms of life insurance existed during the Greek and Roman times when following an individual's death, all surviving members made contributions for the burial services. It was only much later, in the 17th century, when a formal form of life insurance was introduced. This was under the Tontine Annuity System wherein associations of individuals were formed and a fund was created by equal contributions from each member. This sum was invested, and at the end of each year, the dividend was distributed among the surviving members. In all of this, the last remaining survivor received the entire amount of the principal. With the passage of time, life insurance has evolved into being an easy and affordable means of providing financial security for the insured and his/her family, in the event of the death of the insured or his/her inability to earn due to physical disabilities.
INSURANCE IN INDIA
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 two centuries.
A brief history of the Insurance sector
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 19 28:: Th Thee Indi Indian an Insu Insura ranc ncee Comp Compan anie iess Act Act enac enacte ted d to enab enable le the the government to collect statistical information about both life and non-life insurance businesses.
•
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.
•
1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
INSURANCE SECTOR REFORMS In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor Mr. R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…” In 1994, the comm commit itte teee subm submit itte ted d the the repo report rt and and some some of the the key key reco recomm mmen enda dati tion onss included:
•
Structure o
Government stake in the insurance Companies to be brought down to 50%
o
Gove Govern rnme ment nt shou should ld take take ov over er the the ho hold ldin ings gs of GIC GIC and and its its subsid subsidiar iaries ies so that that these these subsid subsidiar iaries ies can act as indepe independe ndent nt corporations
o
All the insurance companies should be given greater freedom to operate
•
Competition
o
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry
o
No Company should deal in both Life and General Insurance through a single entity
o
Fore Foreig ign n comp compan anie iess may may be allo allowe wed d to ente enterr the the indu indust stry ry in collaboration with the domestic companies
o
Postal Life Insurance should be allowed to operate in the rural market
o
Only one State Level Life Insurance Company should be allowed to operate in each state
•
Regulatory Body o
The Insurance Act should be changed
o
An Insurance Regulatory body should be set up
o
Cont Contro roll ller er of Insu Insura ranc ncee (Cur (Curre rent ntly ly a part part from from the the Fina Financ ncee Ministry) should be made independent
•
Investments
o
Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%
o
GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time)
•
Customer Service
o
LIC should pay interest on delays in payments beyond 30 days
o
Insurance companies must be encouraged to set up unit linked pension plans
o
Computerization of operations and updating of technology to be carried out in the insurance industry
The committee emphasized that in order to improve the customer services and incr increa ease se the the cove covera rage ge of the the insu insura ranc ncee indu indust stry ry shou should ld be op open ened ed up to competition. But at the same time, the committee felt the need to exercise caut cautio ion n as any any fail failur uree on the the part part of new new play player erss coul could d ruin ruin the the pu publ blic ic confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.
THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDA’s online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products.
Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.
Current situation
While While other other nation nationss have have witnes witnessed sed fierce fierce compet competiti ition on in their their insura insurance nce sectors, India’s historical situation has resulted in lack of momentum and hence penetration. This has left a majority of the population uninsured. This is the potential that insurers will tap and as a result, the sector will explode into a hot cauldron of companies fighting for a share of the consumer’s wallet. Entry of private players has broken the monopoly of LIC in the insurance sector. But even though the market share of LIC reduces, it will still retain its number one position for several years. Going forward, the private sector is expected to garner approximately 25 per cent market share. The winners in this game will undoubtedly be the customers who will receive superior products & services, and of course, the nation’s treasury. The opening of the insurance sector will therefore result in a healthier economy.
As a percentage of GDP, Life Insurance is just about 1.4 percent. So, the challenge is to increase both average amounts for which each person gets insured as well as to increase the overall coverage of insurance across the population. The insurance sector is likely to grow to about $ 35 billion dollars by 2008 from the current $7.2 billion.
Two things that stand out in Indian Insurance Industry are that of the low awareness of insurance need amongst the Indian consumer and therefore low penetrati penetration on in the market. market. Second Second is that of the absence absence of a range of suitable products available for the consumers to suit his needs.
Now Let us have a look how Private Players “ICICI Prudential” & “Birla Sunlife Insurance” has performed in the Indian Life Insurance market and what strategies have they followed to become the Number two and number three in the market respectively with a sizeable market share just in the span of two years.
COMPANY PROFILE OF BHARTI AXA
Bharti AXA Life Insurance is a joint venture between Bharti, one of India’s
leading business groups with interests in telecom, agri business and retail, and AXA, world leader in financial protection and wealth management. The joint venture company has a 74% stake from Bharti and 26% stake of AXA. The company launched national operations in December 2006. Today, we have over 8000 employees across over 12 states in the country and a national foot footpr prin intt of dist distri ribu buto tors rs trai traine ned d to prov provid idee qu qual alit ity y fina financ ncia iall advi advice ce and and insurance solutions to the large Indian customer base.
As we further expand our presence across the country with a large network of distributors, we continue to provide innovative product and service offerings to cate caterr to spec specif ific ic insu insura ranc ncee and and weal wealth th mana manage geme ment nt need needss of cust custom omer ers. s. Whatever your plans in life, you can be confident that Bharti AXA Life will offer the right financial solutions to help you achieve them. The vision of Bharti Bharti AXA Life Insurance Insurance Company Company Limited is to become the pre prefe ferr rred ed life life insu insura ranc ncee comp compan any y in Indi India. a. Th This is visi vision on exte extend ndss to ou our r recruitment philosophy as well. Both the Bharti Group in India and AXA globally enjoy the status of being a very employee focused organization.
At Bhar Bharti ti AXA AXA Life Life Insu Insura ranc nce, e, we are are dete determ rmin ined ed to achi achiev evee ou ourr visi vision on thro throug ugh h tale talent nt who who are are empo empowe were red, d, focu focuse sed d on cust custom omer er serv servic ice, e, and and champions of strategic and operational excellence.
The guiding Human Resources principles at Bharti AXA are : •
Clearly define scope of responsibilities and empower people to deliver
•
Provide people with the means to develop their competencies
•
Consider individual training and development a priority investment
•
Build organizations that are conducive to teamwork and that involve everyone
•
Promote ongoing dialogue between managers and the people who report to them
•
Make cultural difference a key source of strength
VISION To be a leader and the preferred company for financial protection and wealth management in India
VALUES •
Professionalism
•
Innovation
•
Team Spirit
•
Pragmatism
•
Integrity
Strategy •
To achieve a top 5 market position in India through a multi-distribution, multi-product platform
•
To adapt AXA's best practice blueprints as a sound platform for profitable growth
•
To leverage Bharti's local knowledge, infrastructure and customer base
•
To deliver high levels of shareholder return
•
To build long term value with our business partners by enhancing the proposition to their customers
•
To be the employer of choice to attract and retain the best talent in India
•
To be recognised as being close and qualified by our customers
Strategic differentiators differentiators •
Strong partner Bharti - provides access to customer base of more than 20 million
•
Multi channel execution capability
•
Current Asia product range which is a strong match to products sold to the mass and mass affluent
•
Global scale providing cost effective and speedy re-use of systems, products and business capability
PLANS
INDIVIDUAL PLANS OF BHARTI AXA BHARTI AXA LIFE GUARANTEE BUILDER A Unit Linked Guarantee Plan Guarantee Builder provides you with a comfort factor on your investments and you can be sure that this comfort factor keeps building year-on-year. year-on-year. It's a solid investment plan that lets you achieve your long-term goals by investing in a mix of debt and equities, while providing a Guaranteed Maturity Value over 15 years. What's more, you need not worry about your family's security as it has a strong life insurance protection embedded. . Guarantee Builder provides you with a comfort factor on your investments and you can be sure that this comfort factor keeps building year-on-year. It's a solid investment plan that lets you achieve your long-term goals by investing in a mix of debt and equities, while providing a Guaranteed Maturity Value over 15 years. What's more, you need not worry about your family's security as it has a strong life insurance protection embedded.
Key Benefits: •
Ensure solid protection for your family through a Death Benefit that offers Sum Assured PLUS Fund Value
•
Get the comfort of a Guaranteed Maturity Value (GMV) which means atleast your investment premiums are returned at maturity.
•
Get the power of Builder, which means that you can expect your GMV to potentially increase by 1% each year till it reaches 115% by the time Guarantee is applicable.
•
The new Build n Protect Fund ensures not only safety to your investments, but also provide you the springboard for growth of your investments over the long-term by allocating upto 40% in large-cap stocks.
•
Get tax benefits on the premiums paid and benefits received as per the prevailing tax laws.
BHARTI AXA LIFE BRIGHT STARS A Unit Linked Child product. Bharti AXA Life Bright Stars provides a launch pad for your child’s bright futu future re.. What What else else,, You You also also have have Jump Jumpst star artt bene benefi fitt whic which h is paid paid ou outt at maturity along with Policy Fund Value, which enables your child to explore more career options. Bharti AXA Life Bright Stars provides a launch pad for your child’s bright futu future re.. What What else else,, You You also also have have Jump Jumpst star artt bene benefi fitt whic which h is paid paid ou outt at maturity along with Policy Fund Value, which enables your child to explore more career options.
Key Benefits: •
Get 360` protection in securing your child’s future. o
Payment of sum assured immediately on death;
o
Payment of future premiums by the company till maturity;
o
Get Policy Fund Value along with Jumpstart benefit at maturity.
•
A Jumpstart benefit to boost your maturity proceeds.
•
A flexible Policy which adjusts to your financial needs by giving you various options like top ups, choice of investment funds, switch, withdrawals, cover continuance option, decrease in premium and more.
•
Choice of 5 policy terms to match your financial goals.
•
Get tax benefits on the premiums paid and benefits received as per the prevailing tax laws.
Bharti AXA Life Spot Suraksha Spot Suraksha helps you create a pool of wealth to meet your long-term needs, with an added advantage of simplified buying process Spot Suraksha helps you create a pool of wealth to meet your long-term needs, with an added advantage of simplified buying process Key Benefits: •
Easy to buy Investment solution - with a simplified proposal form, no medical examinations & you are insured on the spot with the issuance of a cover note!!
•
130% of first year premium is returned as Guaranteed Special Addition on death or on Maturity.
•
Allocation rates 100% from year 2 onwards!
•
3 investment fund options as per your investment preferences & the facility to switch amongst the investment funds as per your investment objectives.
•
Flexibility of partial withdrawals after fifth Policy Year, cover continuance option after seven policy years
•
Tax benefits under section 80C and 10(10D) of Income Tax Act.
BHARTI AXA DREAM LIFE PENSION A Unit Linked Pension Product Dream Life Pension, Bharti AXA Life Insurance's unique pension product ensures that your retirement life is your Dream Life. Live your Dreams! Be Life Confident. Dream Life Pension, Bharti AXA Life Insurance’s unique pension product ensures that your retirement life is your Dream Life. Live your Dreams! Be Life Confident.!
Key Benefits: •
Unmatched flexibility for retirement wealth creation o
Pay one time lump sum or regular premiums
o
At the inception systematically increase your premiums by 5 % or 8% each year with the Accumulator Option
o
Increase/decrease premiums any time after the 2nd policy year
o
Add top up premiums any number of times after the 1st policy year
•
Dream Life Pension enhances your retirement kitty by providing special addition, starting from the end of 10th policy year
•
Change your planned retirement age any time during the policy term
•
Obtain tax benefits as per the prevailing tax laws on the premiums paid and the benefits received under the policy.
BHARTI AXA LIFE ASPIRELIFE Unit Linked Endowment Product. Aspire Life helps you create a pool of wealth to meet your long-term needs, while also providing you adequate protection in case the need arises. Aspire Life helps you create a pool of wealth to meet your long-term needs, while also providing you adequate protection in case the need arises. Now you can be confident of your long term financial goals turning into reality. Be Life Confident. Key Benefits: •
Allocation rates as high as 100% i.e. no allocation charges for premiums greater than or equal to Rs.50,000 on your investment in the unit-linked fund from year 2 - to maximize your investment returns.
•
Up to 175% of the first year premium paid by you is returned as Guaranteed Special Addition, at maturity of the policy or on unfortunate event of death of the Life Insured.
•
3 investment fund options as per your investment preferences.
•
Flexibility of partial withdrawals after fifth Policy Year, premium holiday option after seven policy years and facility to switch amongst the investment funds as per your investment objectives.
•
Protection benefit which provides high Sum Assured for longer policy terms.
•
Tax benefits under section 80C and 10(10D) of Income Tax Act
BHARTI AXA LIFE INVESTCONFIDENT INVESTCONFIDENT
Unit Linked Single Premium Product. You have always strived hard to achieve the best for you and your loved ones, so when it comes to making an investment decision, we know that you would expect the best from it too. You have always strived hard to achieve the best for you and your loved ones, so when it comes to making an investment decision, we know that you would expect the best from it too. Presenting InvestConfident, InvestConfident, a unique single premium, unit linked investment and protection product which not only strives to maximise your investment returns but also gives you an enhanced flexibility to suit it according to your protection needs, because we at Bharti AXA Life Insurance,believe that your hard earned money deserves nothing but the best. Now, be confident of choosing the best financial solution for your investment and life insurance needs. Be Life Confident.
Key Benefits: •
Convenient single premium product with policy benefit period till the age of 70.
•
Unique special additions starting from the end of 5th policy year and thereafter at the end of every 5 years till the maturity date.
•
3 investment fund options as per your investment preferences.
•
Basic Sum Assured of five times the single premium.
•
Unique option of investing additional amount at your convenience through Top Up Premiums.
•
Flexibility of partial withdrawals after the third Policy Year
•
Additional benefit of Rs.5,00,000 in the event of death due to an accident.
•
Tax benefits under section 80C and 10(10D) of Income Tax Act.
Why should you buy InvestConfident?
InvestConfident is a suitable product for lump sum investment needs. You can enhance your investment and protection needs by adding money as much as the initial lump sum amount every year through top ups. Being a unit-linked plan, it also suits your requirement of deriving potentially higher returns by assuming the appropriate risks. InvestConfident offers you flexibility, loyalty and convenience and gives your investments a premier treatment.
BHARTI AXA LIFE WEALTHCONFIDENT WEALTHCONFIDENT A unit-linked investment cum protection policy. Your wealth, your status ensures that you get preferential status wherever you go. So why shouldn't your money get the same? Your wealth, your status ensures that you get preferential status wherever you go. So why shouldn't your money get the same? WealthConfident, a unit-linked investment cum protection product, with its
limi limite ted d peri period od prem premiu ium m paym paymen entt faci facili lity ty of 5 year years, s, prem premiu ium m paym paymen entt flexibility, higher allocation of your premium for investment, unique special additions and life insurance benefit, not only makes your money grow but also provides your investment the special treatment that it deserves. "Be conf confid iden entt of prov provid idin ing g yo your ur inve invest stme ment ntss the the righ rightt mix mix of grow growth th,, flexibility and loyalty benefits. Live confident with WealthConfident." WealthConfident." Key Benefits: •
Pay premium for five years, while your policy continues for ten years.
•
Higher allocation of your premium up to 88% for investment.
•
Special additions of units added every year from 6th Year for incremental wealth creation.
•
Choose from four different investment funds to meet your financial objectives.
•
Five times the life cover of your annual premium.
•
Tax benefit under 80C and 10(10D).
Why should you buy this plan?
WealthConfident is a suitable product for you, if your key objective is to potentially maximize your wealth to fulfill your future financial objectives such as child's higher education, building a retirement kitty, asset creation, etc. The limited premium payment term of 5 years for a 10 year policy, also suits your requirements of premium payment flexibility. Being a unit-linked plan, it also suits your requirement of earning potentially higher returns by assuming the appropriate risks.
BHARTI AXA LIFE FUTURECONFIDENT A unit-linked policy which offers comprehensive protection along with wealth creation in the long term. Imagine this, 12 years from now, your son will go for his MBA degree, or 15 years from now, you will have to find a suitable suitable son-in-law, son-in-law, or 20 years from now, you will require money, to spend a happily retired life. For your long-term financial milestones, our endeavour at Bharti AXA Life Insurance is to provide you with suitable long-term financial solution. "FutureConfident is a complete financial solution that serves you in building wealt ealth h
for
you ourr
lon ong g-te -term
need needss,
butt bu
most ost
impor mporttant antly, ly,
provi rovide dess
comprehensive financial protection to your loved ones, against all odds." Now be confident of a solution that works for your long-term needs to make your future confident. Be Life Confident.
Key Benefits: •
Life insurance benefit of up to 420 times the monthly premium.
•
Comprehensive overall protection through "Protection Enhancers" in the form of riders.
•
Wealth creation for your long term financial needs.
•
Special additions at regular intervals, starting from 7th year, to enhance your wealth.
•
Four different investment funds to meet your financial objectives.
•
Tax benefit under 80C and 10(10D).
Why should you buy this plan? FutureConfident is a suitable product for you, if your objective is long-term targeted wealth creation over 15-20 years, either for your own retirement or for your children's future, while at the same time providing your family a comprehensive protection against unfortunate incidences in life. Being a unit-linked plan, it also suits your requirement of deriving potentially higher returns by assuming the appropriate risks.
Bharti AXA Life Future Confident A unit-linked product which offers enhanced protection along with wealth creation in the long term.Imagine this, 12 years from now, your son will go for his MBA degree, or 15 years from now, you will have to find a suitable son-inlaw, or 20 years from now, you will require money, to spend a happily retired life. When financial protection alongwith the wealth creation for long-term needs is your key financial objective, you need a solution that provides that extra protection for your loved ones, while creating wealth for your long-term goals.FutureConfident goals.FutureConfident II is a complete financial solution that serves you in building wealth for your long-term needs, but most importantly, provides comprehensive financial protection to your loved ones, against all odds." Now be confident of a solution that works for your long-term needs to make your future confident. Be Life Confident.
Key Benefits: Build Wealth for your long term financial needs with enhanced financial protection. •
Sum assured up to 420 times the monthly premium.
•
Life insurance benefit as Sum assured PLUS Policy fund value.
•
Four different investment funds to meet your financial objectives.
•
Comprehensive overall protection through "Protection Enhancers" in the form of riders.
•
Special additions at regular intervals, starting from the end of 7th year, to enhance your wealth.
•
Tax benefit under sections 80C and 10(10D) of Income Tax Act.
Why should you buy this plan? FutureConfident II is a suitable product for you, if your objective is long term targeted wealth creation over 15-20 years, either for your own retirement or for your children's future, while at the same time providing your family a enhanced protection against unfortunate incidences in life.
Bharti AXA Life Save Confident Traditional money back insurance product for long term savings. Your changing lifestages decide your financial milestone planning. When you foresee intermittent financial requirements in the years to come, like regular expenses related to your child’s education, liquidity becomes a key aspect of your planning along with long term savings, and protection for your family. Imagine this, 12 years from now, your son will go for his MBA degree, or 15 years from now, you will have to find a suitable suitable son-in-law, son-in-law, or 20 years from now, you will require money, to spend a happily retired life. When financial protection alongwith the wealth creation for long-term needs is your key financial objective, you need a solution that provides that extra protection for your loved ones, while creating wealth for your long-term goals. "FutureConfident II is a complete financial solution that serves you in building wealt ealth h
for
you ourr
lon ong g-te -term
need needss,
butt bu
most ost
impor mporttant antly, ly,
provi rovide dess
comprehensive financial protection to your loved ones, against all odds." Now be confident of a solution that works for your long-term needs to make your future confident. Be Life Confident.
Key Benefits: •
Build Wealth for your long term financial needs with enhanced financial protection.
•
Sum assured up to 420 times the monthly premium.
•
Life insurance benefit as Sum assured PLUS Policy fund value.
•
Four different investment funds to meet your financial objectives.
•
Comprehensive overall protection through "Protection Enhancers" in the form of riders.
•
Special additions at regular intervals, starting from the end of 7th year, to enhance your wealth.
•
Tax benefit under sections 80C and 10(10D) of Income Tax Act.
Why should you buy this plan? FutureConfident II is a suitable product for you, if your objective is long term targeted wealth creation over 15-20 years, either for your own retirement or for your yo ur chil childr dren en's 's futu future re,, whil whilee at the the same same time time prov provid idin ing g yo your ur fami family ly a enhanced protection against unfortunate incidences in life.
Being a unit-linked plan, it also suits your requirement of deriving potentially higher returns by assuming the appropriate risks.
BHARTI AXA LIFE SECURE CONFIDENT A Long Term Life Insurance. All All of us desi desire re to maxi maximi mise se the the happ happin ines esss for for ou ourr fami family ly at all all time times, s, irrespective of the circumstances. The thought of unfortunate events befalling us may cause us anxiety about providing a secured happiness to our loved ones. All of us desire to maximise the happiness for our family at all times, irrespective of the
circumstances. The thought of unfortunate events befalling us may cause us anxiety about providing a secured happiness to our loved ones. Insurance can help help you ease ease you yourr worrie worries. s. Now, Now, Bharti Bharti AXA Life Life Insura Insurance nce Compan Company y Limited presents SecureConfident, a simple long-term life insurance product that aims to ensure that the dreams that you aspired for your family in your lifetime, don’t remain unfulfilled by the financial void which might get created due to unfortunate event of death. Now be confident of the happiness of your loved ones at all times, irrespective of the circumstances. Be life confident.
Key Benefits: •
Term Assurance for 5,10,15,20,25 years.
•
Financial protection against unfortunate event of death at an affordable cost.
•
Comprehensive overall protection with help of riders.
•
Tax benefit under section 80C and 10(10D) of Income Tax Act.
Why should you buy SecureConfident? SecureConfident is suitable to you, if your objective is to protect your family against any financial loss caused due to unfortunate death, disability or critical illnesses, which may deprive them of a secured future.
GROUP PLANS BHARTI AXA LIFE - CREDITSECURE CREDITSECURE Bharti AXA Life CreditSecure is a group product, offering life insurance coverage to customers of financial institutions who have availed of a loan. CreditSecure is comprehensive solution that helps protect your customer’s assets and savings in the unfortunate event of death.
Bharti AXA Life - Sanjeevani
Sanjeevani is a single premium group term life insurance product, offering protection to your family.
Bharti AXA Life - Swasthya Sanjeevani
Swasthya Sanjeevani is a single premium group critical illness product, providing comprehensive protection against 6 critical illnesses.
Bharti AXA Life - Sanjeevani
Sanjeevani is a single premium group term life insurance product, offering protection to your family.
Bharti AXA Life Mortgage Credit Shield
Mortgage Credit Shield is a Group Product that provides coverage to people who have availed of a Mortgage\ Home loan\ Home equity loan from an Institution/Bank.
Bharti AXA Life Credit Shield
Credit Shield is a Group Product that provides coverage to people who have availed of a loan for 1 to 5 years from Group Policyholder.
Bharti AXA Life Life Shield
Life Shield is a single premium group term life insurance product.
BHARTI AXA AIMS AT 5 PERCENT MARKET SHARE IN LIFE INSURANCE Bharti AXA plans on expanding its wings in the fast growing life insurance market. It has forecasted a 5 percent market share holding by the end of 2012. One of the prima primary ry reason reasonss for for this this aggres aggressiv sivee expans expansion ion strate strategy gy of the company is the huge potential and largely untapped insurance market. India India is the fifth fifth larges largestt life life insura insurance nce marke markett in the emergi emerging ng insura insurance nce econom economies ies global globally ly and is growin growing g at 32-34 32-34% % annual annually. ly. This This impres impressiv sivee growth in the market has been driven by liberalization, with new player’s significantly enhancing product awareness and promoting consumer education and information. Total life insurance premium in India is projected to grow Rs 1,230,000 Crore by 2010-11. The current market is worth 50,000 crores. Bharti AXA Life insu insura ranc nce, e, whic which h is a join jointt vent ventur uree comp compan any y betw betwee een n Indi India' a'ss lead leadin ing g conglomer conglomerate, ate, the Bharti Bharti Group and France-b France-based ased financial financial protection protection and wealth management service provider-AXA, has currently a modest share of 1 percent in the market. Bharti-Axa’s key strategy is to leverage on the wide reach of Bharti Operations by aligning with Bharti Airtel distribution points, corporate agents and brokers. Bharti Axa has set-up virtual branches to distribute policies using the retail and telecom outlets of the Bharti Group. Bharti-Axa envisions virtual branches as a key strategy and has currently 25 percent revenues from the same.
Chief Chief actuar actuary y at Bharti Bharti AXA GLN Sarma Sarma says. says. “Capit “Capital al constr constrain aints ts have have prevented us from being overly aggressive. We would like to retain what we have and consolidate our position.” The company is also not planning any big advertising campaigns and instead, has chosen to communicate with customers through phone calls, text messages and emails. Sarma agrees that product distribution and building channels has been a problem for Bharti AXA because the company does not have a parent bank to fall back on. “Also, many banks have have turn turned ed into into insu insura ranc ncee prod produc uctt manu manufa fact ctur urer erss from from mere mere insu insura ranc ncee distributors. This makes them our competitors ruling out the possibility of a distribution deal with them,” he says. However, despite the capital constraints, Bharti-Axa is all set to infuse another 100 10 0 Cror Croree in the the four fourth th qu quar arte ter. r. Apar Apartt from from this this,, the the comp compan any y is on an aggressive hiring spree with its plans to beef up the sales force to 45,000 from the present 30,000. The current product portfolio of Bharti-Axa is that of eight life insurance products. This includes six ULIP products. The company’s CFO, V Srinivasan, commented that Bharti-Axa’s key strategy would be to focus strongly on ULIP products. More on current happenings in Business and marketing visit My Blog on the latest trends in Marketing
RESEARCH METHODOLOGY
PROBLEM FORMULATION
The problem is that there is rising competition between Bharti Axa and other companies. Bharti Axa Insurance is also providing better services inspite of that Bharti Axa Insurance is having a greater market share.
RESEARCH DESIGN
The presen presentt invest investiga igatio tion n is descrip descriptiv tivee type type of study study un under dertak taken en to estimate the the product product strategy strategy of Bharti Axa. Axa. The present study study identifies identifies views of customers & analysis of Bharti Axa.
SOURCE OF DATA COLLECTION:
A) PRIMARY DATA
B) SECONDARY DATA
DATA COLLECTION METHOD
PRIMARY DATA
The primary data to be selected was based upon the response of the resp respon onde dent ntss to the the qu ques esti tion onna nair iree desi design gned ed,, the the qu ques esti tion onna nair iree was was developed for Primary Data Collection. The questionnaire consists of closed ended questions.
A part of Questionnaire was targeted to know the personal details of the respondents. Another part comprised of the questionnaire and will consist of closed ended questions with every question having its own importance and meaning.
SECONDARY DATA
The secondary data was collected by referring through web sites, and the final data was analyzed systematically to achieve the desired result.
SAMPLE SIZE
For the purpose of analysis a sample size of respondents was selected. The target group of the respondent was above years. The sample taken was 50.
LIMITATION OF THE STUDY
•
The response of the consumer was negative no body was ready to fill the forms.
•
The study was conducted in Dehradun, for more accurate result this study should simultaneously run in number of cities.
•
Lack of time.
DATA ANALYSIS AND INTERPRETATION 1.
Out of the following, you have an insurance policy of?
INTERPRETATION
The above graph suggest that 60% people people are insured with with LIC, 2% people are insured with Aviva, 8% are insured with HDFC Standard life Insurance, 10% insured insured with ICICI prudenti prudential, al, 6% are insured insured with Bajaj Allianz, Allianz, 12% are insured with Bharti Axa and and 4% have no policy. policy.
2 Which Bharti Axa Scheme does does you have? have?
No of Peoples Have BSLI Plan
Health, 10% Retierment , 22%
Health Retierment Life
Life, 68%
INTERPRETATION
On the basis of above analysis it has been concluded that around 68% of the policy holders are having life plan, 22% of them are having Retirement plan and rest of them are having the health plan.
3 Are you satisfied with the Insurance plan you have? No. of people peo ple satisfied satisfied w ith the pla
28% Yes No 72%
INTERPRETATION
On the basis of the analysis it has been concluded that around 72%of the people are satisfied with plan they and rest if them are not satisfied.
4 Are you satisfied with the services provided by the company regarding new plans and schemes?
No . of peo ple satisfi satisfied w ith ith t services services provided by the co mp
18 % Y es No 82% 82 %
INTERPRETATION On the basis of the above analysis it has been concluded that around 82% of the policy holders are satisfied with the services provided by the company and rest of them are not satisfied.
5 Are you interested to make more investments in Bharti Axa?
No. of Peoples want to more investm investment in BSLI
33% Yes No 67%
INTERPRETATION On the basis of the above analysis it has been concluded that around 67% of the policyholders are interested to make more investments in Bharti Axa and rest of them are not interested.
6.
What do you look for, while opting for a life insurance policy?
45 %
40 %
40 % 35 %
30 %
30 %
Income Secur
25 %
Tax S avings avings
2 0%
20 %
Old age benef
15 %
1 0%
Savings
10 % 5% 0% Income Tax S avings avings Old age Security benefits
Savings
INTERPRETATION
The above graph suggest that 40% people thinks about income security, 20% looks for for tax saving, saving, 30% looks looks for old age benefits benefits and 10% thinks thinks about savings.
7.
At any point of policy period, have you ever claimed your policy?
90%
80%
80% 70% 60% 50%
Yes
40%
No
30%
20%
20% 10% 0% Y es
No
INTERPRETATION
The above graph suggest that 80% people have not claimed the policy and 20% people have claimed their policy.
8.
Do you think Insurance is superior to other forms of saving?
80% 70% 70% 60% 50% Yes 40% 30%
No
30% 20% 10% 0% Y es
No
INTERPRETATION
The above graph suggest that 70% people thinks Insurance is superior then other forms of saving and 30% people thinks that insurance is not superior then other forms of saving.
9.
Have you ever insured with Bharti Axa Insurance?
100%
88 %
90 % 80 % 70 % 60 %
Y es
50 %
No
40 % 30 % 20 %
12 %
10 % 0% Y es
No
INTERPRETATION
The above graph suggest suggest that that 88% people people are not insure insured d with with Bharti Bharti Axa insurance and 12% people are insured with Bharti Axa insurance corporation.
10.
What is reason for insuring with Bharti Axa?
80%
67%
60% 33%
40%
G ood will of company G o o d r e t u rn rn investment
20% 0% G o o d w i lll l o f t hGeo o d r e t u rn rn o n company investment
INTERPRETATION
The above graph suggest that 67% people considered the good will of the company and 33% people considered the good return on investment.
CONCLUSION
1.
The insurance holders are satisfied with Bharti Axa Insurance.
2.
The customer said the Bharti Axa is more successful in long run.
3.
The customers are not well known about Bharti Axa Insurance in comparison to it competitor.
RECOMMENDATIONS
The company is having second position in private insurance sector so its main motive is to become number one insurance company the company will reach to its motive by following measures-
•
Company should increase its advertisement so the customers aware about the company.
•
To open the branch office of Bharti Axa Insurance to cover all the customer.
•
More schemes should offered by the company c ompany to customer.
•
To provide best services to the customer.
REFERENCES
Books: •
Kotler Kotler,, Philli Phillip, p, (2006) (2006),, “Mark “Marketi eting ng Manage Managemen ment”, t”, 12th Edition, Pearson Education, Singapore.
•
Sharma, D.D., (1995), “Marketing Research”, 3 rd Edition, Sultan Chand & Sons, New Delhi.
•
Kothari C.R. (1990), “Research Methodology”, Wishwa Prakashan, PP. 72-83. Partner Chlorophyll Chlorophyll Brand Communications Communications
Websites: •
www.bhartiaxa.com
QUESTIONNAIRE
Question-1:
Out of the following, you have an insurance policy of (put tick
mark) 1) LIC [ ]
3) HDFC Standard Life [ ]
3) ICICI PRU [ ]
4) Bajaj Allianz [ ]
5) Bharti Axa [ ]
6) No Policy [ ]
Question2: Which Birla Sun Life Scheme does you have?
(a) Life
(b) Retirement
(c) Health
Question-3: Are you satisfied with the Insurance plan you have?
(a) Yes
(b) No
Question-4: Are you satisfied with the services provided by the company
regarding new plans and schemes? (a) Yes (b) No Question-5:
(a) Yes
Are you interested to make more investments in Birla Sun Life ? (b) No
Question-6 : What do you look for, while opting for a life insurance policy?
1) Income security
2) Tax savings
3) Old age benefits
4) Savings
Question-7 : At any point of policy period, have you ever claimed your
policy? 1) Yes
2) No
Question-8: Question-8: Do you think Insurance is super is to other other forms of
saving? 1) Yes
2) No
Question-9: Question-9: Have you ever insured with Bharti Axa Insurance?
1) Yes
2) No
Question-10: What is reason for insuring with Bharti Axa?
1) Goodwill of the company
2) Good return on investment
