“COMPARATIVE ANALYSIS OF INSURANCE PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE CO. LTD. WITH OTHER LIFE INSURANCE COMPANIES”
INDEX S.No. Particulars 1.
Acknowledgement
2.
Introduction
3.
Need for Life insurance
4.
Company Profile
5.
Product Profile
6.
Comparative analysis
7.
Research Methodology
8.
Suggestions
9.
SWOT Analysis
10.
Suggestions
11.
Conclusion
12.
Appendix
13.
Data Analysis
14.
Bibliography
.
INTRODUCTION Our Plans Arm You For Tomorrow... At Bajaj allianz Life, there is nothing we hold higher than life itself. We therefore view our plans not as tax saving devices but as a means to add protection to life. We believe in enhancing the very quality of life, in addition to safeguarding your security. Our products are designed in a way that helps you bear heavy expenses while building your home or providing for your children's education and marriage. We make sure your post retirement years are carefree and secure, ensuring your family and loved ones are protected against financial difficulties in the event of a premature death. Depending on your personal needs, priorities and individual responsibilities, you can go for a Protection, Saving or Investment plan. If you are not sure of which plan would suit you best, you could use the Life Maker, an application we developed for that very purpose WHY DO I NEED LIFE INSURANCE?
That’s a common question. Why would you need Insurance? Simply put, Life brings with it many surprises, some pleasant and some not so and a Life Insurance Plan ensures that you are better prepared to face uncertainties. How? In a number of ways:
Protection You need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. It is a thoughtful business concept designed to protect the economic value of a human life for the benefit of those financially dependent on him. That’s a good reason. Supposing you suffer an injury that keeps you from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected.
Retirement Life insurance makes sure that you have regular income after you retire and also helps you maintain your standard of living. It can ensure that your post-retirement years are spent in peace and comfort.
Savings and Investments Insurance is a means to Save and Invest. Your periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy can come in really handy at the time of your child’s education or marriage! Besides, it can be used as supplemental retirement income!
Tax Benefits Life insurance is one of the best tax saving options today. Your tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned!
Superior Technology •
In order to ensure speedy and accurate processing of your needs, we have established world class technology, with renowned insurance software, which networks all our offices and intermediaries
•
Using the Web, policies can be issued from any office across the country for retail products
•
Unique, user friendly software developed to make the process of issue of policies and claims settlement simpler (e.g. online insurance of marine policy certificate)
Unique Forms of Risk Cover •
Film insurance
•
Event management cover
•
Sports & Entertainment Insurance Package
Risk Management- Our Expertise
Our service methodology is tried, tested and Proven the world over and involves:
•
Risk identification: Inspections
•
Risk analysis: Portfolio review and gap analysis
•
Risk retention
•
Risk Transfer: To an insurer as well as reinsurer (as required)
•
Creation of need based products
•
Ongoing dialogue
COMPANY PROFILE Bajaj Allianz Lifel Insurance Company Limited
Bajaj Allianz Life 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 Life Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct Life Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 147 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany. In its first year of operations, the company has acquired the No. 1 status among the private non-life insurers. As on 31st March 2006 Bajaj Allianz Life Insurance maintained its leadership position by garnering the premium income of Rs.1285 crore. Bajaj Allianz has made a profit after tax of Rs.52 crores. Bajaj Allianz today has a network presence in over 100 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune. In the first half of the current financial year, 2006-07, Bajaj Allianz garnered a premium income of Rs. 842 crores, achieving a growth of 35% and Net profits rose to Rs.27 Crores.
Vision • To be the first choice insurer for customers
• To be the preferred employer for staff in the insurance industry. • To be the number one insurer for creating shareholder value
Mission As a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money.
A Partnership Based on Synergy Bajaj Allianz Life Insurance Company offers technical excellence in all areas of Life and Health Insurance as well as Risk Management. This partnership successfully combines Bajaj Auto's in-depth understanding of the local market and extensive distribution network with the global experience and technical expertise of the Allianz Group. As a registered Indian Insurance Company and a capital base of Rs. 147 crores, the company is
Achievements •
Bajaj Allianz has received ,"iAAA rating, by ICRA Limited, an associate of Moody's Investors Services, for Claims Paying Ability.This rating indicates highest claims paying ability and a fundamentally strong position.
•
Indias Most Respected Companies The Business World's Most Respected Companies survey 2006 ,has ranked "Bajaj Allianz Life Insurance, No.2 this year, in the insurance sector.
Bajaj Auto Limited Bajaj Auto Limited is the largest manufacturer of two and three-wheelers in India and also one of the largest manufacturers in the world. Bajaj Auto has been in operation for over 55 years. As a promoter of Bajaj Allianz Life Insurance Company Ltd., Bajaj Auto has the following to offer: • Vast distribution network. • Knowledge of Indian consumers. • Financial strength and stability to support the insurance business. • Visit Bajaj Auto's Website www.bajajauto.com
Allianz AG, Germany
Allianz AG is in the business of General (Property & Casualty) Insurance; Life & Health Insurance and Asset Management and has been in operation for over 110 years. Allianz is one of the largest global composite insurers with operations in over 70 countries. Further, the Group provides Risk Management and Loss Prevention Services. Allianz has insured most of the world's largest infrastructure projects (including Hongkong Airport and Channel Tunnel between UK and France), further Allianz insures the majority of the fortune 500 companies, besides being a large industrial insurer, Allianz has a substantial portfolio in the commercial and personal lines sector, using a wide variety of innovative distribution channels.
Allianz AG has the following to offer Bajaj Allianz Life Insurance Company Ltd. :
• Set up and running of Life insurance operations • New and improved international products • One of the world's leading insurance companies • More than 700 subsidiaries and 2 lac employees in over 70 countries worldwide • Provides insurance to almost half the Fortune 500 companies • Technology Visit Allianz AG website www.allianz.com
Other similar businesses The promoters have also incorporated a Life insurance Company in India, called Bajaj Allianz General Insurance Company Limited to provide life insurance solutions. Visit Bajaj Allianz General Insurance Website www.bajajallianz.co.in
The Bajaj Allianz Difference
• Business strategy aligned to clients' needs and trends in Indian and global economy / industry
• Internationally experienced core team, majority with local background
• Fast, decentralised decision making
• Long-term commitment to market and clients
Trust
At Bajaj Allianz, we realise that you seek an insurer whom you can trust. Bajaj Auto Limited is trusted name for over 55 years in the Indian market and Allianz AG has over 110 years of global experience in financial services. Together we are committed to provide you with time tested and trusted financial solutions that provide you all the security you need for your investments.
Underwriting Philosophy
Our underwriting philosophy focuses on : •
Understanding the customer's needs
•
Underwriting what we understand
•
Meeting the customer's requirements
•
Ensuring optimal coverage at lowest cost
Claims Philosophy
The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims processing. We pride ourselves on a friendly and open approach. We are focused towards providing
you
a
hassle
free
and
speedy
claims
processing.
Claims philosophy is to : • Be flexible and settle fast • Ensure no claim file to be seen by more than 3 people • Check processes regularly against the global Allianz OPEX (Operational Excellence) methodology Sold over 1 million since inception.
Customer Orientation At Bajaj Allianz, our guiding principles are customer service and client satisfaction. All our efforts are directed towards understanding the culture, social environment and individual insurance requirements - so that we can cater to all your varied needs.
Experienced and Expert Servicing Team We are driven by a team of experienced people who understand Indian risks and are supported by the necessary international expertise required to analyse and assess them. Service engineers located in every major city .
PRODUCT PROFILE
PRODUCT PROFILE What are these plans? Protection plans safeguard your income and your family’s financial future in case you are not around. They shield you from heavy economic loss and reduce the impact of financial risk on you and those dependent on you. Conquering Life Saving plans act as a compulsory savings instrument for families when the premium is paid regularly. They work as long-term savings, enhanced by tax benefits, which give you the financial strength to achieve your life goals. Capital unit gain ,Child gain , . Investment plans act as wealth creation instruments helping to create big estates for the family. It is a long-term investment, free from the risk of market swings. At the end of the term, you or your family can enjoy added returns on investment. Powering Life, One Life . Retirement plans can ensure that your post-retirement years are spent in peace and comfort. They make sure that you have regular income after you retire and also helps you maintain your standard of living.
(c)
CAPITAL UNIT GAIN •
Guaranteed Maturity Benefits (Payments in Case of Death and at on Maturity).
•
Flexible maturity benefits option
•
Build in Wavier of Premium Benefit
ELIGIBILITY : •
Minimum entry age : 18 years,
•
Maximum Entry age – 55 year,
•
Maximum maturity age : 65 years.
TERMS : 10 – 20 years.
CHILD GAIN PLAN
* 1.
Regular Cash Returns
2.
The Cash Bonus Advantage
3.
Money back plan with loan facility
ELIGIBILITY : •
Minimum entry age : 12 years,
•
Maximum Entry age – 49 year,
•
Maximum maturity age : 65 years.
TERMS : 16 years 20 years 24 years.
*
POWERING LIFE 1.
Safe investment with high Tax – free returns.
2.
Customizable premium payment term
3.
Enhancing life cover
ELIGIBILITY : •
Minimum entry age : 18 years,
•
Maximum Entry age – 60 year,
•
Maximum maturity age : 70 years.
TERMS : 10 years 15 years 20 years.
COMPARATIVE ANALYSIS OF INSURANCE PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE CO. LTD. WITH OTHER LIFE INSURANCE COMPANIES
Features\Companies
Bajaj Allianz
Plan Name
Capital Unit Gain 0 (risk commences at age 7)- 60
Min/ Max Age at entry
Max Age at maturity Min/Max Premium
70 10,000/No limit
Premium Type
Regular
Min/ Max Sum Assured
Min 0.5* term* AP, max y* AP where y for base cover or base cover with Accidental death &/or TPD rider is 0- 30 31-35 3640 41-45 46-55 56-60 100 85 70 50 30 20 Y for base cover with any other rider or with more than one rider MAX (5,0.5* policy Term) Before Age 7 – Degular premium F. V & Top-Up FV. To be set off by partial
Death Benefit
ICICI Prudential Life Teme Super 0/65
Birla Sun Life New Classic Life Premier 30 days to 30 yrs for whole life plan, 40 for 30 yrs term, 50 for 20 yrs term and so on. 75 70 yeats. 18,000/No Min Annual Limit prem of Rs. 25000 Regular Limited (up to 5 yrs) or Regular as per term of the plan Min SA = Min SA 2 0.5 *term* lacs. Annualised Max SA No premium, s.t. limit min of 100,000
Tata AIG
SA net of permissible withdrawals or FV whicherer is higher.
SA less permissible withdrawals or FV whichever is higher.
Before age 5 only FV Btwn age 5 & 60 – higher of FV or SA less withdrawals
Invest Assure ll 30 days to 45/55/60 yrs (depending on term)
15,20,30
Regular
SA is a multiple of AP. Multiple depends on entry age and term of the policy and policy holder gets a choice
withdrawals as mandated.
Before age 7 it is the FV.
in last 2 yrs prior to date of death.After age 60 – higher of FV or SA less all withdrawals m,ade after age 58. NA
Flexiblity in Death Benefits
None
None
Maturity Benefit
Fund Value
Fund Value
Partial Withdrawals
After 3 years. Min Rs 5000. Min FV 1.5 annual premium have to maintain. Provided age attainrd age attained is 18 yrs.
Fund Value, settlement option After 3 years. Min Rs 2000.
Full Surrender
Any time after 3 yrs. S.t. Surrender charges applicable only on the capital units. 1(1/1.05)^N, N=Lower of outstanding policy term or 20 yrs
After 3 yrs. Charges after 3 & 4,yrs are at 2% & 1%resp. No charges from yr 5 onwards.
Charges applicable in the first 6 years.
After 3 years or LA attaining majority, whichever is later. Min Rs 10,0 00; Min FV Rs 25,000.
Increase allowed subject to U/W. Fund Value After 3 years . Min Rs 10,000. 4 withdrawals allowed per yr. Min FV 1 annual premium. Surrender charges applicable. Anytime after 3 yrs . Charges 100% firs 3 yr reducing thereafter. No charges after 6 yrs (20,30) & 5 yrs (15).
Features\ Companies Plan Name
Bajaj Allianz
Aviva
Capital Unit Gain
Easy Life Plus
aMin/Max Age at entry Max Age ar maturity
0 (risk commences at age 7)- 60 70
18-50
Min/Max Term
10, theron customer selectable term, For minor(18-entry age)
10,15,20,25
HDFC Standerd Endowment plus 18-65,55 with riders 75 without riders, 65 otherwise 10-30
Min Max Premium Premium Type
10,000/No limit
6000/50000
Rs 10,000
Min/Max Sum Assured
Min 0.5*term*AP, max y*AP where y for base cover or base cover with Accidental death &/or TPD rider is 0-30 31-35 36-40 41-45 46-55 56-60 100 85 70 50 30 20 Y for base cover with any sther rider or with more than one rider Max (5, 0.5* policy Term) Before age 7Regular Premium F. V. & Top-Up F. v. if any Above7: Higher of SA or FV.
Death Benefit
Regular
To be set off by partial withdrawals as mandated.
60
Reguler
SBI Life Horizon ii 0-60 70 10/40(for minor lives min term is 10 or 18- entry age) 12,000/100,000
Regular; Over the term of the plan 10*AP for 10, 15 Min Term & 20 yr terms. term*0.5*A 12.5* AP for 25 P yr term Max up to 40* AP
Regular; Over the term of the plan
In yr 1, 110% of AP or FV whichever s higher; From yr 2 onwards, higher of Fund Value & SA. In case of Accidental death, higher of SA & FV+addtnl SA
FV+SA, for age below 7, FV only
SAwithdrawals in last 2 years plus FV whichever is higher.
1.2 lakh/10 lakh
Flexibility in Death Benefits
None
Maturity Benefit Partial Withdrawal s
Fund Value
Full Surrender
None
Increase or decrease in sum assured is not allowed. Fund Value
Fund Value; settlement option After 3 years. Min Allowed after 3 After 3 Rs 5000. Min FV 1.5 yrs years. Min annual premium Rs 10,000. have to maintain. Withdrawal Provided age is allowed attained is 18 yrs. till FV after charges is greater than equal to annual premium under the plan. Any time after 3 yrs. 1After 3 years S.t.Surrender (1/1.05^N)*valu 100% FV. charges applicable e of initial Before 3 urs only on the capital units,at the unit nothing is units. 1price,on the date payable. (1/1.05)^N,N=Lowe of surrender r of outstanding policy term or 20 yrs 1-{1/1+x)}^N]* Value of accumulation units, at their unit price,on the date of surrender. The variable x varies with the number of completed years premiums paid at the date of surrender:
Increase/decrease in SA not
After 3 yrs. Two withdrawals in a year is free. Charges 1% on withdrawal amount.
After 3 yrs, provided at least 1 premium has been paid. 1% yr 4 onwards (on SV).
Features\Companies
Bajaj Allianz
ICICI Prudential Life Time Plus
Birla Sun Life
Kotak
Plan Name
Capital Unit Gain
Flixi Save plus
0/65
30 days to 60 years
Safe Investment plan ll 0-65
Min/Max Age at entry
0 (risk commences at age 7)- 60 70
75
75 yrs
75
10,thereon 10-30 yrs customer selectable term, For minor(18-entry age) 10,000/No 20000/300000 limit
10 to 0 years
10-30
Premium Type
Regular
RP
Single or regular
Min/Max Sum Assured
Min 0.5*term* AP where y for base ckover or base cover with Accidental death &/or TPD rider is 0-30 31-35 3640 41-45 46-55 56-60 100 85 70 50 30 20 Y for base cover with any other rider or with more than one rider MAX
Min SA= 0.5*term Annualised premium
Min SA-For SP plan 125% of the SA,2 lacs for term upto age 70 and 100,000 otherwise. Max SA-No limit
Max Age at maturity Min/max Term
Min Max Premium
10,000/No Limit For regular prem, 50,000 for ltd. Pay Regular & Limited payment; 3,5,6,7,10,15 & over term Greater of 5*AP or 0.5*Term*AP
Death Benefit
(5,0.5*Policy Term Before Age 7Regular Premium F.V. & Top-Up F.V. if any Above 7: Higher of SA or FV. To be set off by partial withdrawals as mancatem.
Flexibility in Death Benefits
None
Maturity Benefit
Fund Value
Partial Withdrawals
After 3 Years Min Rs. 5000. Min FV 1.5 annual premium have to maintain. Provided age attained is 18 yrs.
Full Surrender
Any time after 3 years S.T.
SA + FV,only FV before age 7
Higher of FV,jGFV or SA less withdrawals made in last 2 years. Up to age 60. After age 60,higher of FV GFV,SA less withdrawals made after age 58. Before age 1 year, only FV
SA less withdrawals made in last 2 years prior to death, or FV which ever is higher + funds in Supp A/C(top-up account) DB to be set off by partial withdrawals made 2 yrs prior to death before age 60 and by all partial withdrawals made after age 58 Decrease in SA Increase in SA Increase or is allowed but from 6th decrease in not increase. policy year, sum assured is once in 5 not allowed. years, min SA increase Rs.50,000. FV; with Higher of FV Guaranteed settlement of GFV maturity value option After 3 years After 3 Years Allowed only Min Rs. 2000 in a year 2 from top-up withdrawls are account free of charge. anytime after 3rd yr. Thereafter charges are 3% in yr 4, 2%, yr 5,1% in yr 6 and 0% in yr 7 onwards. After : 3 yrs. If surrendered Allowed only Charges after in first 3 from top-up
surrender charges applicable only on the capital units 1(1/1.05)^ N, N= Lower of outstanding policy term r 20 yrs
3,4,5 & 6 yrs are at 8%, 6%, 4% & 2% resp. No. charges from yr 7 onwards.
years, SV paid out after 3 years. No charges.
account, anytime after 3rd yr. Thereafter charges are 3% in yr 4, 2% in yr 5, 1% in yr 6 and 0% in yr 7 onwards.
FEATURE COMPARISON OF UNIT LINKED PLANS : ELIGIBILITY & BENEFITS Features / Companies Plan Name Min/Max Age of entry Max Age at maturity Min / Max Term
Min Max Premium Primium Type Min/Max Sum Assured
Death Benefit
Flexibility in Death Benefits Maturity Benefit Partial Withdrawals
Bajaj Allianz Capital Unit Gain 0 (risk commences at age 7 ) – 60 70 10, thereon customer selectable term, for minor (18 entry age) Term, For minor(18-entry age) 10,000/No limit Regular Min 0.5*term*aP, max y*AP where y for base cover or base cover with Accidental death &/or TPD rider is 0- 30 31 – 35 36 -40 41 -45 46- 55 56- 60 100 85 70 50 30 20 y for base cover with any other rider or with mor than one ride Max (5,0.5* policy Term) Before Age 7- Regular premium F.V. & Top-Up F.V. if any Above 7: Higher of SA or FV. To be set off by partial withdrawals as mandated. None Fund Value
Bajaj Allianz New Secure First 0 (risk commences at age 7 ) – 60 70 Max life cover till age 70
Regular Regular Minmum SA = 2.5 times Annualised premium, OR 0.25* Term* Annualised premium, whichever is higher. Maximum SA= y times the annualized premium where y will be as per the following table: 0-35:20; 36-40: 15;41-55: 10;56-60: 5;60-65:2.5 DB is Twice the SA plus the Fund Value. Before age 7 it is the FV
No Fund Value; with settlement option After 3 years. Min Rs 5000. After 3 years. Min Rs Min FV 1.5 annual premium 1000.Min FV 1 annual have to maintain. Provided premium. Top-Ups to have a age attained is 18 yrs. lock-in of 3 yrs.
Full Surrender
Any time after 3 yrs. S.t. Surrender charges applicable only on the capital units. 1-(1/1.05)^N,N= Kower of outstanding policy term or 20 yrs
Before 3 yrs 100% surrender penalty. After three years: Surrender charges 4th Year: 10%;5th year: 2%; 6th year onwards: No Charge.
Features\Companies Plan Name
Bajaj Allianz CapitslUnit Gain
ICICI Prudential Life Time Super
Investment Funds
5 Funds 1)Equity Indes Fund ll 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Caap Fund
4 Funds : 1) Maximiser 2)Balancer 3)Protector 4) Protector
Equity
Min Limit : 85%for equity index fund II and 80% equity growth and accelerator Mid cap
Min Limit : 75% for maximiser; max 40% for balancer,
Debt
Min Limit : 80% for Max Limit ; 25% bond fund for maximiser; Min 60% for balancer, 100% for protector; max 50% for preserver;
Money market
Max limit : 20% for Bond fund, equity growth fund, accelerator madcap fund; 15% for equity index fund II, 100% for liquid fund.
Infrastructure
Switch
Max Limit: 25% for maximiser; min 60% for balancer, 100% for protector; min 50% for preserver; None
3 free switches
Birla Sun Life New Classic Life Premier 6F 1) Assure 2) Protector 3) Builder 4) Enhancer 5) Creator 6) Magnifier Max Limit : 90% for Magnifier; 50% for creator; 35% for enhancer; 20% for builder; 10% for protector; Max limit : 25% for magnifier; 30% for creator; 30% for enhancer; 30% for builder; 30% for protector ; 50% for assure Max Limit; 20% for all;
Tata AIG Invest Assure ll 5 Funds 1. Equity 2. Income 3. Liquid 4. Aggressive Growth 5. Stable Growth 0-100% for equity; 50-80% for aggressive growth; 30-50% for stable growth;
0-100% for income; 20-50 % for aggressive growth ; 50-70 % for stable growth; 0-20% for liquid.
0-120% for short term fixed income
Max Limit : None 25% for protector; builder; enhancer 4 free switch amt 2 free switch; 4 free switches
Premium redirection Allowed
is 2000 Not allowed
Increase or decrease Allowed , s.t. Not allowed in regular premium limites Premium Holiday Cover continuance Available available Bonus Units None At 4% annual premium paid every 4th rs. Starting from 4th yr.
Guarantee component
None
Bonus Units
p.a. Allowed; 2 2 free premium free allocation redirections. in a year Subsequent redirections to be charged at 1000 per redirection. Not allowed Na Available;
Available.
Loyality Not available. addition on 10th PA and on every th policy anniversary thereafter. The LA will be 2% of your average policy fund in the last 60 months Loyality None additions as given above
Feature Comparison of Unit Linked Plans : Investment Funds & Flexibility Features\Companies Bajaj Allianz Aviva HDFC SBI Life Standard Plan Name Capital Unit Gain Easy Life Plus Endowment Horizon II Plus Investment Funds 5 Funds 1)Equity 2 Funds : 6 Funds 2 Funds Indes Fund II 2) 1) With Profit 1) Liquid (Composite) Bond Fund 3) Funds; Fund. 1. Dynamic Liquid Fund 4) 2)Unit linked 2) Secure 2. Growth Equity Growth Fund Managed (Automatic Fund 5) Accelerator a ) Protector Fund Fund. Asset Allocaiton Mid Caap Fund b) Growth Fund; 3) Defensive c) Balanced Fund; Managed Option to put Fund; 100% in either 4) Balanced fund Managed Fund; 5) Equity Managed Fund 6) Growth Fund; Equity Min Limit : 85%for Min Limit : 20% Max Limit : Max limit : equity index fund II for with profit 30% for 100% and 80% equity funds and Defensive; growth and protector; 45% for 60% for accelerator Mid cap balanced; 30-85% balanced; for growth 100% for growth and equity managed Debt Min Limit : 80% for 70-100% for with 85% for Max Limit : bond fund profit and 60- defensive; 100% 100% for 70% for protector; 50-90% balanced; 40% for balanced; 0- for equity 50% for growth; Money market Max limit : 20% for 0-10% for with 100% for Max Limit : Bond fund, equity profit and liquid funds 100% growth fund, balanced; 0-20% accelerator madcap for protector and fund; 15% for growth . equity index fund II, 100% for liquid fund. Infrastructure None None None
Switch
3 free switches
Premium redirection Allowed Increase or decrease Allowed in regular premium limites
Premium Holiday Bonus Units
Guarantee component
,
2 free switch Not allowed s.t. Not allowed
Cover continuance Available available None None
None
None
Allowed
Automatic Asset allocation Not allowed / Not allowed is
Allowed Increase decrease allowed. Decrease is allowed after 3 yrs of premium payment and FV atleast Rs. 15,000. Available Available. Loyalty units None every year 0.10% every year as long as policy is in force. None None
Features\Companies Plan Name
Bajaj Allianz Capital Unit Gain
ICICI Prudential Birla Sun Life Life Time Super Flexi save plus
Investment Funds
5 Funds 1)Equity Indes Fund ll 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Caap Fund Min Limit : 85%for equity index fund II and 80% equity growth and accelerator Mid cap Min Limit : 80% for bond fund
4 Funds : 1) Maximiser ii 2)Balancer ii 3)Protector ii 4) Preserver
Equity
Debt
Money market
Infrastructure Top-Ups
Max limit : 20% for Bond fund, equity growth fund, accelerator madcap fund; 15% for equity index fund II, 100% for liquid fund.
3 Funds 1) Protector 2) Builder 3) Enhancer
Min Limit : Max Limit : 10% 75% for for protector; maximiser ii; 20% for builder, max 40% for 35% for balancer ii. enhancer;
Kotak Save Investment Plan II 6 Funds 1. Money Market 2. Gilt 3. Bond 4. Balanced 5. Growth 6. Floating Rate Fund. Max Limit; 60% for balanced and 80% for growth;
Max Limit ; 25% for maximiser ii; Min 60% for balancer ii, 100% for protector ii; max 50% for preserver; Max Limit: 25% for maximiser ii; min 60% for balancer ii, 100% for protector; min 50% for preserver;
Max limit : 30% 100% for Gilt; for all 3 funds. Bond; Floating rate, 70% in balanced; 60% for growth.
None
Max Limit : 25% 70% for balanced for all. and 60% for growth. Min 5000, max Min Rs. 10,000. 50,000 or annula prem. Additional SA on top-ups beyond 25% of
Min Rs. 5000; None Max unlimited, choice of multiplier for top ups
Max Limit; 20% 100% for money for all; mkt; 20% for gilit, bond, floating rate, balanced and growth.
Switch
3 free switches
Premium redirection Allowed Increase or decrease Allowed , s.t. in regular premium limites
Premium Holiday Bonus Units Guarantee component
Cover Continuance Available None None
RP. 4 free switch 2 free switch; Rs. Allowed No. amt is 2000 100 thereafter. charges. (bid/offer spread). Not allowed Not allowed Allowed No charges. (bid/offer spred) Can increase or Increase/decrease Increase/decrease decrease annual not allowed not allowed premium pnly on policy anniversary. Dose not after SA Available Available Available At 5% annual None None premium paid every 4th yr. Bonus units are 3%return on net SA guaranteed at guaranteed investible maturity premium
Features / Companies Plan Name Investment Funds
Equity
Debt Money market
Infrastructure Top-Ups
Switch Premium Redirection Increase or decrease regular premium Premium Holiday Bonus Units Guarantee component
Bajaj Allianz Capital Unit Gain 5 Funds 1)Equity Index Fund ll 2) Bond Fund 3) Liquid Fund 4) Equity Growth Fund 5) Accelerator Mid Cap Fund Min Limit : 85%for equity index fund II and 80% equity growth and accelerator Mid cap Min Limit : 80% for bond fund Max limit : 20% for Bond fund, equity growth fund, accelerator madcap fund; 15% for equity index fund II, 100% for liquid fund. Min Rs 5000; unlimited, choice multiplier for top-ups 3 free swithches Allowed in Allowed , s.t. limits Cover Continuance Available None None
Bajaj Allianz New Secure First 4 Funds : 1) Nifty Index Fund 2)Balancer Fund 3)Income Fund 4) Equity Growth Fund Min Limit: 85% for Nifty Index & 80% Equity Growth Min Limit: 80% for Income fund Max Limit: 20% for Income Fund, Equity Growth Fund, 15% for Nifty Index Fund
Max Min Rs 5000;Max of cumulative top-up to be within 25% of max cumulative RP 3 free switches Allowed Not allowed. Available. Not available None
Features\Companies Plan Name Policy Charges
Charges on TopUps Admin Charges
Add switching charge
Bajaj Allianz
ICICI Prudential Capital Unit Life Time Gain Super Ra.10,000For AP less 199,999 than 50000,20 5.00% % in yr 1,7.5% Rs.200,000in yr 2,4% 9,99,999 from yr 3 4.00% onwards. For >= 10,00,000 AP 50000 and 3.00% above, 18% in yr 1,7.5% in yr 2,4% from yr 3 onwards 2% n.a.
Birla Sun Life
Tata AIG
Classic Life Premier Yr 1: 13; 4% yr 2 & 3 onwards; 2% thereafter
Invest Assure ll
2% of top-ups
1.5%
Rs. 600 per annum inflating at 5% per annum
Rs 60 per month + 2/000 SA in yr 1
Rs 100 or 5% Rs 100 per switch amount switch whichever is lower.
Rs 100 or 0.25% of switch amount whichever is higher. Rs 100;
Rs 38 per month inflating at 5% p.a. There would be an additional premium holiday charge of 3% during reveval period of 5 yrs. And 1.5% after that (if policyholder requests for premimum holiday) Rs. 250
Premium redirection None None charge Other Charges 5% per annum None of the Capital Units during the policy term subject to maximum of
None
Depends on Term of plan and Entry age of policyholder. Charge is at uniform 1% from the 3rd yr.
Rs 1000 3% of the Regular premium for the first 5 years(Premium Holiday
20 years (Initial Mgmt Charge)
Charge)
Fund Management Charge
Equity Growth Fund 1.75% Equit Indes Fund ll 1.25% Bond Fund 0.95% Liquid Fund 0.95% Accelerator Mid Cap Fund 1.75%
Miximiser: 2.25% Balancer: 2.25% Protector: 1.5% Preserver: 0.75%
1% for Protector; Buider; Enhancer; 1.25% for Creator; Magnifier;
Equity: 1.75%; Aggressive Growth: 1.6% Stable Growth: 1.4%; Income: 1.25%; Short term Fixed Income: 0.90%
Features\Companies Plan Name Policy Charges
Charges on TopUps Admin Charges
Add switching charge
Bajaj Allianz Capital Unit Gain Ra.10,000199,999 5.00% Rs.200,0009,99,999 4.00% >= 10,00,000 3.00%
2% Rs. 600 per annum inflating at 5% per annum Rs 100 or 5% switch amount whichever is lower.
Aviva Easy Life Plus AP less than 7500 for annual & half yrly modes 7%, for other modes,8% AP 75009999 for annual & half yrly modes, 7% AP more than 10000 for annual & half yrly modes 5%, for other modes, 6% n.a.
HDFC Standard Endowment Plus
SBI Life Horizon ii
Year1-60% for prem amount upto 2 lacs, 40% upto 5 lacs prem, 30% upto 10 lacs, 20 lacs and above. Top-up 2.5% Year 2 onwards 1%.
15% in yr 1;10% in yrs 2 & 3; 5% thereafter.
1%
1%
Rs 41 per month inflating at 5% p.a. 0.5 of the switch amount or Rs 500 whichever is lower None
Rs 20 per month
Rs 70 per month
24 switches free in a policy year and after thar 100 per switch
None
None
None First 2 withdrawals free. Fee of 1% is leveed on subsequent withdrawals
Primium allocation charge Other Charges
None 5% per annum of the Capital Units during the policy term subject to maximum of 20 years (Initial Mgmt Charge)
5% per annum of the Initial Units during the policy term (Initial Mgmt Charge)
After 6 partial withdrawals in a policy year will be
[email protected]. Revivas Charge@Rs 250
Fund Management
Equity
Regular FM
0.8% for all funds 1.5% for
Charge
Growth Fund 1.75% Equit Index Fund ll 1.25% Bond Fund 0.95% Liquid Fund 0.95% Accelerator MidL Cap Fund 1.75%
charges 1% on with profits and protector fund; 1.5% on growth fund
Equity; 1.0% for Bond; 0.25% for Money market
Features\Companies
Bajaj Allianz
Birla Sun Life
Kotak
Plan Name
Capital Gain
Flexi save plus
Safe Investment Plan II 14% in yr 1; 3.5% from yr 2 onwards
Policy Charges
ICICI Prudential Unit Life Time Plus
Ra.10,000199,999 5.00% Rs.200,0009,99,999 4.00% >= 10,00,000 3.00% Charges on Top-Ups 2% Admin Charges Rs. 600 per annum inflating at 5% per annum
Add switching charge Primium allocation charge Other Charges
Fund Management
25% in yr 1&2.3% in yr 3 & 4.1% from yr 5 onwards
n.a. Rs 60 per month
Rs 100 or 5% Rs 100 switch amount whichever is lower. None None
65% in Yr 1 for regular pay; 7.5% in yr 2 & 3; 5% from yr 4 onwsrds. For regular prem plans. For SP – 3% 2% Rs 22 per month. Annual charge of Rs 2.88/000 FA in first 10 yrs (2nd yr 15. 24) and it will increase thereafter. Rs 100
None
2.5% 7% of AP for premium up to Rs 20.000 in Yr 1 and 4% thereafter. For premium above 20,000 it is 3% in yr 1 and 2% thereafter. & Floating Rate 0.22%; Balanced
0.50%; Growth 0.58% 5% per annum One partial 2 Partial First 2 of the Capital withdrawsl in a Withdrawals are withdrawals Units during policy year free of charge, are free. the policy term would be free. For every Subsequent subject to All subsequent additional withdrawals maximum of partial Partial are charged 20 years withdrawals in Withdrawal, a Rs. 500. (Initial Mgmt that policy year charge equal to Charge) would be Rs. 100 subject charged at Rs. to a maximum 100 per charge of Rs. withdrawsl. 500 will be levied Equity Growth Maximiser ii: 1% for all 3 None
Charge
Features Companies Plan Name Policy Charges
Charges on Top-Ups Admin Charges
Add switching charge Premium redirection charge Other Charges
Fund Management Charge
Fund 1.75% Equit Index Fund ll 1.25% Bond Fund 0.95% Liquid Fund 0.95% Accelerator MidL Cap Fund 1.75% / Bajaj Allianz
1.5%; Balancer ii: 1% Protector ii: 0.75% Preserver: 0.75%
funds
(Bid/offer Spread)
Bajaj Allianz
Capital Unit New Secure First Gain Ra.10,000Year Silver 199,999 1 30% 5.00% 2 Onwards 94% Rs.200,0009,99,999 4.00% >= 10,00,000 3.00% 2% 2% of top-ups
Gold
Platinum
50% 95%
76% 97%
Rs. 600 per Rs 30 per month, inflating at 5% annually annum inflating at 5% per annum Rs 100 or 5% Rs 100 or 5% of switch amount whichever is sower. switch amount whichever is lower. None None. 5% per annum of the Capital Units during the policy term subject to maximum of 20 years (Initial Mgmt Charge) Equity Growth Fund 1.75% Equit Index
None
Equity Growth: 1.75% Income: 0.95% Nifty Index 1.25%
Fund ll 1.25% Balancer: as per mix Bond Fund 0.95% Liquid Fund 0.95% Accelerator MidL Cap Fund 1.75%
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
a)
Research Objective
b)
Research Design
c)
Research Study
d)
Sampling
e)
Collection of Data
f)
Data Source
g)
Data Collection Method
h)
Field work
i)
Limitations of Survey
RESEARCH OBJECTIVE
The aim of this research is to study the awareness about Insurance in Dehradun. •
To find how many people prefer Insurance.
•
The study also involves through field research of various people preference of Insurance over other system.
•
The study also focus on recalling the name of some l Insurance companies.
•
The study reveals whether advertisements are used to market directly some Insurance.
•
The study rank the reasons in term of their importance for less popularity of Insurance.
•
To find the number of ways to rise awareness about insurance in the society.
RESEARCH DESIGN
RESEARCH DESIGN
Research design is a conceptual structure with in which research is conducted. It constitutes the blue print for the collection, measurement and the analysis of the data. Research design consists of :a)
A clear statement of research problem.
b)
Procedure and techniques to be used for getting information.
c)
Number of Respondents to be studied.
d)
Method to be used in processing and analyzing data.
Research Design is needed because it facilitates the smooth sailing of the various research operations, there by making research as efficient as possible yielding maximum information with expenditure of effort, time and money. Research design gives proper and structured way by which research becomes very smother and gives accurate information.
RESEARCH STUDY
Data collection source
:
Primary Data
Data collection method
:
Survey method
Data collection
:
Questionnaire
SAMP LING
Sampling Unit
:
Customers
Sample Size
:
100
Sampling Procedure
:
Random Sample
COLLECTION OF DATA
The study conducted mainly on the basis of primary data. Primary data are those which are collected fresh i.e. for the first time, and thus happen to be original in character. The main aim of collecting data is to search new ideas and give an incentive to environment. Primary data can be collected from primary sources. Primary sources may consists of customers. We have contacted all of the above for the collection of data, and had covered the whole Dehradun region.
DATA SOURCE The data used in the project is mainly primary in nature. This information had been collected from personal interviews. Further data is secondary in nature. It is collected through company’s literature and internet. More information and data is collected through discussion with Prasad (Sales Managaer) and other members of the company.
Mr. Rajendra
DATA COLLECTION METHOD
The method of collecting the data is basically the field survey. Thus this survey is descriptive in nature. I have divided my data collection in two segments which are as follows : 1)
Government Institution.
2)
Individuals.
3)
Shopkeepers
4)
Students
FIELD WORK
The questionnaire administering covered a period of 30 days. During the survey I had covered all prospective educated users and an appropriate data was collected through filling questionnaire by the appropriate person.
LIMITATIONS
LIMITATIONS OF SURVEY
The following are the limitations : 1.
The findings are based on the response of 100 educated persons mostly younger and may it happen that their views may vary with educated persons or aged persons.
2.
Some times due to lack of respondents support it has become difficult to get required information.
3.
In our survey some people were not easily ready to fill the questionnaire.
4.
Some respondents might have provided biased or incorrect answers.
5.
Due to lack of training we are not able to convey the customer properly.
6.
Since the time period is very less to find out the market position of the company.
7.
Sometimes customer are not ready to cooperate to us.
SWOT ANALYSIS
SWOT ANALYSIS
SWOT is best appreciated in the context of marketing analysis and strategy formulation. Together a consideration of the environment, the sources, values, expectations and objectives provides the basis for marketing analysis, so as to arrive at a view of the organizations strategic situation. It helps to form a basis for deciding on the extent to which a change in the strategy is necessary . SWOT – STANDS FOR : S
-
Stands for “Strength”
W
-
Stands for “Weakness”
O
-
Stands for “Opportunity”
T
-
Stands for “Threats”
SWOT ANALYSIS OF INSURANCE INDUSTRY STRENGTHS o Bajaj Allianz is one of the biggest insurance company in the world in Insurance sector. o It gives more benefits then others. o You can pay your premium from any where in the country. o It provides fully medical checkup of the customer. o It provides waver of premium in some policy. o It provides rider benefits in all the policies. o If you have any claim or you will get sum assured with in seven days.
WEAKNESS o It has branches in very few cities in India. o There is no proper advertisement on electronic media in In o Maximum customer are still loyal to other brands . o Bajaj Allianz spends less on advertisement as compare to others.
OPPORTUNITIES o The insurance sector is growing rapidly. o Bajaj Allianz to make those policies which will satisfied the need of customer. o Dehradun city is growing at a very fast rate and the people are educated so company should focus in Dehradun region. .
o THREATS
o LIC, ICICI are continuously doing their research and development toward there policies . Others private companies focusing advertisement in print media, electronic media so company must go for the same.
SUGGESTIONS
SUGGESTIONS
1.
Brand image play important role. Companies should develop their brand image.
2.
Company should distribute literature and information for better customer education .
3.
Making people aware about benefits of insurance.
4.
Increasing the number of qualified advisor to help the people and suggest them to buy insurance.
5.
Company provide easy mediclam to customers.
6.
Company must increase investment on T.V. it has become more effective and catchy.
7.
Special training should be organize to educate the customer about their flexible policies.
8.
As benefit is the major factor company should highlight “INVESTMENT SCHEME” in there advertisement. .
CONCLUSION
CONCLUSION
After analyzing the Dehradun Market. I came to know that this market is having lots potential customer. So company should make such product which will be able to satisfy different customer group.
As the people of Dehradun are educated and read news paper, watch T.V. commercial so company should make aware their different insurance scheme.
\
APPENDIX
QUESTIONNAIRE Name : _______________________ Address:______________________ Employee/ Businessman__________ Q.1
Do you have insurance (a)
Q.2
(b) (d) (f)
ICICI Pru. UNIT TRUST OF INDIA. OTHERS.
Life Insurance Others
(b)
Investment.
Tax saving Any other Reason
(b)
Future Protection .
Provide more benefits (b) Other Benefits.
High Interest Rate
Do you think Bajaj Allianz give more benefits in comparison to others? (a) (c) (e)
Q.7
LIC BAJAJ ALLIANZ ING VYSYA LIFE
Why do you prefer Bajaj Allianz Life insurance ?. (a) (c)
Q.6
No
Why do you purchase insurance ? (a) (c)
Q.5
(b)
Which type of insurance you have ? (a) (c)
Q.4
Yes
In which company you have insurance ? (a) (c) (e)
Q.3
Age _____________ Ph. No.____________ Designation :___________
Highly Satisfied Average Not satisfied
(b) (d)
Satisfied Poor
Do you think Bajaj Allianz Life insurance policies are flexible? (a) Yes (b) No (c) Can’t Say.
Q.8
Do you think Bajaj Allianz Life provide easy Mediclaim ? (a) (c)
Q.9
No
Yes Can’t Say.
(b)
No
What factor do you consider while purchasing insurance ? (a) (c)
Q.11
(b)
Have you planned to buy insurance ? (a) (c)
Q.10
Yes Can’t Say.
Brand image Premium.
(b)
Security
From where do you know about Bajaj Allianz? (a) (c)
Advertisement Friends
(b) (d)
Holdings Others
DATE : PLACE :
SIGNATURE
THANKS
DATA ANALYSIS
Q.1
Do you have insurance
No 15% Yes No Yes 85%
Q.2
In which company you have life insurance ?
50 45
45
40 35 30 25 20
17 13
15
15 10
10 5 0 LIC
ICICI Pru
UTI
Bajaj IVL Allianz
Others
Q.3
Which type of insurance you have ?
Life Insurance, 70
General insurance, 30
S1
Life Insurance
General insurance
Q.4
Why do you purchase insurance?
70 60
60 50 40 30
30
20 10
10 0 Tax Saving
Future Protection Any other Reason
Q.5
Why do you prefer Bajaj Allianz Life insurance?
70 60
60
50 40 30
30 20
10
10 0 Provide More Benefit
Easy Return
Other Benefits
Q.6
Do you think Bajaj Allianz give more benefits in comparison to others?
45 40
40
35
30
30 25
20
20 15 10
6
5
4
0 Highly Satisfied
Satisfied
Average
Poor
Not Satisfied
Q.7
Do you think Bajaj Allianz Life insurance policies are flexible?
80 70
70
60 50 40 30
20
20
10
10 0 Yes
No
Can't Say
Q.8
Do you think Bajaj Allianz Life provide easy Mediclaim ??
45 40
40 35
35 30
25
25 20 15 10 5 0 Brand Image
Security
Premium
Q.9
Have you planned to buy insurance ?
Ca n 't S a y 14% No 6%
Y es 80%
Q.10
What factor do you consider while purchasing insurance ?
45 40
40 35
35 30
25
25 20 15 10 5 0 Brand Image
Security
Premium
Q.11
From where do you know about Bajaj Allianz?
35 30
30
30 25 20
20
Holdings
Friends
20 15 10 5 0 Advertisement
Others
FINDINGS 1.
Bajaj Allianz is still expanding its market share in Dehradun.
2.
LIC & ICICI Prud. is a major competitor of Bajaj Allianz.
3.
Customers are more satisfied with the policy of Bajaj Allianz in comparison to the other competitors.
4.
Future prospects of Bajaj Allianz is excellent in Dehradun market .
5.
Customer awareness about Bajaj Allianz in the market is moderate.
6.
Most people purchase insurance on the brand image.
7.
Mostly people purchase insurance for future protection. But they also purchase it to save their taxes.
8.
Mostly people are insured in Dehradun region.
FINDINGS 1.
Bajaj Allianz is still expanding its market share in Dehradun.
2.
LIC & ICICI Prud. is a major competitor of Bajaj Allianz.
3.
Customers are more satisfied with the policy of Bajaj Allianz in comparison to the other competitors.
4.
Future prospects of Bajaj Allianz is excellent in Dehradun market .
5.
Customer awareness about Bajaj Allianz in the market is moderate.
6.
Most people purchase insurance on the brand image.
7.
Mostly people purchase insurance for future protection. But they also purchase it to save their taxes.
8.
Mostly people are insured in Dehradun region.
