CHAPTER-1

INTRODUCTION

CHAPTER -1

INTRODUCTION

1
1.1 OUTLINE OF THE PROJECT
This is to know the perception level among investors and their expectations who
invested in Bajaj Allianz or the level of customer’s benefits and services provided by the
Bajaj Allianz.
In the present competitive environment it is very crucial to every business from to
ensure perception of its customers. According to one survey it was found that it costs five
times more to attract a new customer than to retain an existing customer. So with all these
parameters taking into considerations one can say that it is very important to provide
goods and services that satisfy customers needs or wants irrespective of the industry or
scale of the business in which a firm is operating.
Here the main purpose of the survey is to know about the various factors which
benefit the customer’s needs and to know how is ensuring its customers perception.
The expectation of customer is vary from one customer to the other customer. For
example Some customer are only concerned about the returns that they are getting in a
fund but at the Same time there are some other customer who are very specific about the
location , ambience and front line employees’ interaction and some other parameters. It
is very difficult to any business firm to satisfy all the expectations of all customers but
there are some common factors that are essential to fulfils.
The objective of the project is given as below. The detail of the survey such as the
source of Data, the sample size taken and the method of analysis are all given briefly in
the methodologies. There are some constraints throughout the project, which are given
clearly in the limitations.

2
1.1.1 NEED/ IMPORTANCE
The project “study on perception of investors towards insurance” in mumbai was help to
both the company as well as to us.
 First thing the project was important for getting knowledge about
organization and for completion of course.
 For getting broad idea about the market.
 It helped to increase the skills of marketing.

1.1.2 PROBLEM DEFINITION

 Company has not gone for awareness program.

 The market has not increased in the way that it was expected
 The advertisement have not created an impact on the customers

3
1.1.4 SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large
number of new players have entered the market and are vying to gain market share in this
rapidly improving market. The study deals with in focus and the various segments that it
caters to. The study then goes on to evaluate and analyze the findings so as to present a
clear picture of trends in the Insurance sector.

By selecting consistently 100 samples and conducted the study in mumbai. This is
based on the customers of the Bajaj Allianz in mumbai. The study mainly concentrates on
the customer benefits . The scope of the study also focuses about the preferences rating
by the “Bajaj Allianz”, perception and customers further requirements of any other
services.

The study was conducted to know the customer behavior of the investors and to
analyze the views of the customers based on a questionnaire which was designed to get
the meaningful information so that identifying the market expectation would be carried
out the primary information.

4
1.1.3OBJECTIVES OF THE STUDY
 To identify the changing investment behaviour.
 To find out the opportunities and limitations of Insurance policies and insurance
sector.
 To know whether the service offered by the company is satisfied the needs of all
groups of people.
 The other benefits offered by the company is satisfied the customers.
 To find out the benefits preferred by the customers.
 To know about their views about the company and to assess to their views.

5
1.1.5 RESEARCH DESIGN AND SAMPLING DESIGN
A research design is the arrangement of condition for collection and analysis of
data in a manager that aims to the research purpose with economy in procedure.
It stands for advance planning of the method to be adopted for collecting the
relevant data and technique to be used in the analysis, keeping in view the objectives of
the research and availability of the respondent’s time and money.
With this as a base descriptive research design, which includes surveys and facts
findings enquires of different kinds .The major purpose of descriptive research is for
descriptive of state affair, as it exists at present
POPULATION
The population consists of customers of Bajaj Allianz and other general people,
Mumbai
SAMPLE SIZE
The sample size 100 customer
SAMPLING METHOD
The sampling used is random sampling: - A random sample is one chosen by a
method involving an unpredictable component. Random sampling can also refer to taking
a number of independent observations from the same probability distribution, without
involving any real population. The sample usually is not a representative of the
population from which it was drawn— this random variation in the results is known
as sampling error. In the case of random samples, mathematical theory is available to
assess the sampling error. Thus, estimates obtained from random samples can be
accompanied by measures of the uncertainty associated with the estimate.
A simple random sample is selected so that all samples of the same size have an equal
chance of being selected from the population.

6
METHODS OF DATA COLLECTION

Primary Method

Primary data are those which are collected fresh and for the first time and thus
happen to be original in character. It is always advised to use primary data whenever
possible. . They are also known as first handed data. Data were collected through
personal investigation with the help of Questionnaire

SECONDARY DATA
Data was also collected from the web pages of the organization, magazines and
also from the management books.

TOOLS FOR ANALYSIS

The data collected was analyzed using tools such as,
 Simple percentage analysis
 Chi –square test

SIMPLE PERCENTAGE ANALYSIS

Percentages are often used in data presentation for simply numbers ,reducing all
of them to 10 -100 ranges .though the use if the percentages the data are reduced into
standard form with base equal to 100 which in fact facilities easy relative comparison it
can be calculated as follows
PERCENTAGE =no of response
_____________________*100
Total no of the respondents

7
C HI-SQUARE TEST
A chi-square test (also chi-squared or x 2test) is any statistical hypothesis test in
which the test statistic has a chi-square distribution when the null hypothesis is true, or
any in which the probability distribution of the test statistic (assuming the null hypothesis
is true) can be made to approximate a chi-square distribution as closely as desired by
making the sample size large enough. A chi-square goodness of fit test is used to test
whether a frequency distribution fits a specific distribution.

8
1.1.6 LIMITATIONS OF THE STUDY

The following were the limitations that were there during the course of the study:
1. Limited time period.
2. Less number of respondents.
3. Biasness of the respondents.
4. only limited number of question were asked.

9
 1.1.7 CHAPTERISATION
The present study is reported through five chapters.
The first chapter deals with introduction, objective of the study, scope of the study,
coverage of the study, methodology, sampling data, and limitation of the study, literature
of review.
The second chapter enclosed with Data Analysis and Interpretation.
The third chapter enclosed with summary and conclusion.

10
 1.2THE HISTORY OF INDIAN INSURANCE INDUSTRY

Life Insurance

In 1818 the British established the first insurance company in India in Calcutta,
the Oriental Life Insurance Company. First attempts at regulation of the industry were
made with the introduction of the Indian Life Assurance Companies Act in 1912. A
number of amendments to this Act were made until the Insurance Act was drawn up in
1938. Noteworthy features in the Act were the power given to the Government to collect
statistical information about the insured and the high level of protection the Act gave to
the public through regulation and control. When the Act was changed in 1950, this meant
far reaching changes in the industry. The extra requirements included a statutory
requirement of a certain level of equity capital, a ceiling on share holdings in such
companies to prevent dominant control (to protect the public from any adversarial
policies from one single party), stricter control on investments and, generally, much
tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance
companies. Business was heavily concentrated in urban areas and targeted the higher
echelons of society. “Unethical practices adopted by some of the players against the
interests of the consumers” then led the Indian government to nationalize the industry. In
September 1956, nationalization was completed, merging all these companies into the so-
called Life Insurance Corporation (LIC). It was felt that “nationalization has lent the
industry fairness, solidity, growth and reach.”

Meaning and Definition of Life Insurance

Meaning
Life insurance covers the risk that exists in one’s life. These risks may arise due to
accident, illness or natural causes like fire, flood, and earthquake. Life insurance aims to
protect the family of the life insured so that they may not suffer from financial

11
consequences on the death or disability of the insured person. Life insurance needs to be
a mandatory part of every person’s life. Life insurance is a contract that pledges payment
of an amount to the person assured (or his nominee) on the happening of the event
insured against.
Life insurance is a very popular form of insurance. It ensures the life of an individual and
gives financial protection to the members of the family of the policyholder.
It is different from other types of insurance in various ways. It not only gives protection
but it is a method of compulsory saving. This insurance provides protection to the family
at the premature death or gives adequate amount at the old age when the earning
capacities are reduced.
The contract is valid for payment of the insured amount during:
 The date of maturity, or
 Specified dates at periodic intervals, or
 Unfortunate death, if it occurs earlier.

 Life insurance covers the risk that exists in one’s life. These risks may
arise due to *accident, illness or natural causes like fire, flood, earthquake.
Life insurance aims to protect the family of the life insured so that they
may not suffer from financial consequences on the death or disability of
the insured person. Life insurance needs to be a mandatory part of every
person’s life. Life insurance is a contract that pledges payment of an
amount to the person assured (or his nominee) on the happening of the
event insured against.
 Life insurance is a very popular form of insurance. It ensures the life
of an individual and gives financial protection to the members of the
family of the policyholder.

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INSURANCE SECTOR REFORMS

Prior to liberalization of Insurance industry, Life insurance

was monopoly of LIC.

In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor
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 committee submitted
the report and some of the key recommendations included:

Structure
Government stake in the insurance Companies to be brought down to 50%. Government
should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act
as independent corporations.

Competition
Private Companies with a minimum paid up capital of Rs.1 billion should be allowed to
enter the sector. No Company should deal in both Life and General Insurance through a
single entity. Foreign companies may be allowed to enter the industry in collaboration
with the domestic companies.

Regulatory Body

13
The Insurance Act should be changed. An Insurance Regulatory body should be set up.
Controller of Insurance- a part of the Finance Ministry- should be made independent

Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced from
75% to 50%. 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
LIC should pay interest on delays in payments beyond 30 days. Insurance companies
must be encouraged to set up unit linked pension plans. Computerization of operations
and updating of technology is to be carried out in the insurance industry.

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INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA):-

Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously such to its schedule of framing regulations and registering the
private sector insurance companies. The other decision taken simultaneously to provide
the supporting systems to the insurance sector and in particular the life insurance
companies was the launch of the IRDA online service for issue and renewal of licenses to
agents.

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA...

(1) Subject to the provisions of this Act and any other law for the time being
in force, the Authority shall have the duty to regulate, promote and ensure
orderly growth of the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the
powers and functions of the Authority shall include,
(a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend
or cancel such registration;
(b) protection of the interests of the policy holders in matters concerning assigning of
policy, nomination by policy holders, insurable interest, settlement of insurance claim,
surrender value of policy and other terms and conditions of contracts of insurance;
(c) Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;
(d) Specifying the code of conduct for surveyors and loss assessors;
(e) Promoting efficiency in the conduct of insurance business;
(f) Promoting and regulating professional organisations connected with the insurance and

15
re-insurance business;
(g) Levying fees and other charges for carrying out the purposes of this Act;
(h) Calling for information from, undertaking inspection of, conducting enquiries and
investigations including audit of the insurers, intermediaries, insurance intermediaries
and other organisations connected with the insurance business;
(i) control and regulation of the rates, advantages, terms and conditions that may be
offered by insurers in respect of general insurance business not so controlled and
regulated by the Tariff Advisory Committee under section 64U of the Insurance Act,
1938 (4 of 1938);
(j) Specifying the form and manner in which books of account shall be maintained and
statement of accounts shall be rendered by insurers and other insurance intermediaries;
(k) Regulating investment of funds by insurance companies;
(l) Regulating maintenance of margin of solvency;
(m) Adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
(n) Supervising the functioning of the Tariff Advisory Committee;
(o) Specifying the percentage of premium income of the insurer to finance schemes for
promoting and regulating professional organisations referred to in clause
(p) Specifying the percentage of life insurance business and general insurance business to
be undertaken by the insurer in the rural or social sector; and
(q) Exercising such other powers as may be prescribed

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COMPANY PROFILE

COMPANY PROFILE

17
1.3 COMPANY PROFILE

BAJAJ ALLIANZ

BAJAJ Allianz Life Insurance Company is a joint venture between two leading
conglomerates, Bajaj Auto Limited, one of largest manufactures of motorcycles and
scooters in the world, and Allianz AG of Germany one of the largest insurance
companies. Bajaj Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001.
The company received the Insurance Regulatory and Development Authority (IRDA)
certificate of Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance
business in India.
Bajaj Allianz Shareholder Capital Base stands at Rs. 500 crore with Bajaj Auto
Limited and Allianz AG of Germany holding 74% and 26% stake respectively. It is the
largest private player in the Insurance Industry in India with a market share of around
34% amongst the private companies and second to LIC. The total market share of Bajaj
Allianz as of 31st March 2006 is at 12%.
During the financial year 2008-2009, Bajaj Allianz has sold over 35 lakh policies and
collected about Rs. 44330 crore as premium income. Whopping growth of 216% for the
FY 2007-08, Assets under management of Rs. 33240 Crore. It has paid up Rs 925 crores
with IRDA as a caution deposit. Bajaj Allianz has insured lives for sum assure of over Rs
8500 crore.

Bajaj Auto Limited

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest
manufacturer of two-wheelers and three-wheelers in India and one of the largest in the
world.
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 A household name in India, Bajaj Auto has a strong brand image & brand loyalty
synonymous with quality & customer focus. With over 15,000 employees, the company
is a Rs. 4000 crore auto giant, is the largest 2/3-wheeler manufacturer in India and the 4th
largest in the world. AAA rated by Crisil, Bajaj Auto has been in operation for over 55
years. It has joined hands with Allianz to provide the Indian consumers with a distinct
option in terms of life insurance products.
As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the
following to offer -

 A strong brand-equity.
 A good market reputation as a world class organization.
 An extensive distribution network.
 Adequate experience of running a large organization.
 A 10 million strong base of retail customers using Bajaj products.
 Advanced Information Technology in extensive use.
 Experience in the financial services industry through Bajaj Auto

Allianz AG

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost
174,000 employees. At the top of the international group is the holding company, Allianz
AG, with its head office in Munich.

Allianz 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.

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ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE

 Worldwide 2nd by Gross Written Premiums - Rs.4,46,654 cr.

 3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. -
AUM of Rs.51,96,959 cr.

 12th largest corporation in the world

 49.8 % of global business from Life Insurance

 Established in 1890, 110 yrs of Insurance expertise

FINANCIAL ASPECT OF BAJAJALLIANZ

 Worldwide Number One by gross Written Premiums.

 The largest asset manager in the world-Managing assts more than a million
US $ [Rs. 50,06,670 Corers (USD 1028 billion]
 One of Europe's most highly valued stock corporations
 Net income in excess of Rs 5844 Corers

20
1.4)PRODUCTS OF BAJAJ ALLIANZ
 INDIVIDUAL PLANS
1.4)PRODUCT OF BAJAJ ALLIANZ
 INDIVIDUAL PLANS
 GROUP PLANS
 INSURANCE FOR NRI's
 SPECIAL PLANS

Individual Plans
 UNITGAIN  RISK CARE
A Unit Linked Plan Pure Term Plan
 UNITGAIN SP  TERM CARE
A Single Premium unit Linked term Plan with Return-of-
Plan Premium
 INVESTGAIN  LIFETIME CARE
An Endowment Plan Whole Life Plan
 CHILDGAIN  SAVE CARE ECONOMY SP
Children's Policy Single Premium Endowment
Plan

 CASHGAIN  LOAN PROTECTOR

Money Back Plan A Mortgage Reducing term
Insurance Plan
 SWARNA VISHRANTI  KEYMAN INSURANCE
Retirement Plan A Promising Business
Opportunity
 UNITGAIN PLUS  UNITGAIN PLUS SP
Unit Link plan with higher A Single premium Unit
allocation Linked Plan

21
  The "Bajaj Allianz Unit Gain SP Plan

The Bajaj Allianz Unit Gain SP comes with a host of features to allow you to have the
best of all worlds-Protection and Investment with flexibility.
Some of the key features of this plan are:
Key Features Benefits
 Guaranteed death benefit  Death Benefit
 Choice of 5 investment funds
with flexible investment
management: you can change
funds at any time.
 Attractive investment alternative  Cash withdrawal
to fixed interest securities. option
 Provision for full/partial
withdrawals any time after three
full years premiums are paid.
 Unmatched flexibility- to match
your changing needs.

i) Monthly mode is available under salary savings scheme only

More value for money-our attractive High Sum Assured Rebate

Allianz Bajaj offers an attractive premium discount structure, where you
can have a discount of at least Rs. 84* on the annual premium for every additional
Rs. 10000 Sum Assured purchased over and above the minimum sum Assured of
Rs. 50000.

22
ii) Limited Premium Payment Terms- For Your Convenience
You do not have to pay premiums for the full term of the policy. This plan
provides you with a range of limited premium payment terms for you to finish
obligation as fast as possible and enjoy the benefits of life cover without any
worry thereafter.

iii) Advantage Women

There will be a premium discount for female policyholder in the package.
Basic premium payable will be equivalent to the premium for a two-year younger
male policyholder for the base policy only.

IV) Tax Benefits as per current tax laws

Premiums paid are eligible for Tax Exemption under Section 88 of the
Income Tax Act. Maturity and death proceeds are Tax Free under Section 10
(10D) of the Income Tax Act. The premiums for the Critical illness Benefits and
the Hospital Cash Benefit will be eligible for Tax Exemption under Section 80 (D)
of the Income Tax Act.

V) Surrender Values

Premium Term Surrender Value after Guaranteed Surrender Value

2-3 years 1 year form commencement. 60% of the premiums
excluding premiums for
additional benefits and extra
premiums.
5-6 years 2 full years premium payment 30% of premiums excluding
first year premium and the
premium for additional
benefits and extra premiums.

23
 7 and above 3 full years premium payment 30% of premiums excluding
the first year premium and
the premium for additional
benefits and the extra
premiums.

B) CASH GAIN (MONEY BACK)

Bajaj Allianz Cash gain is a plan that offers a host of additional benefits you may
choose to develop a sound financial portfolio for your family. Among the many unique
benefits, the most significant is the Family Income Benefit (FIB) that sustains the family
by compensating the loss of regular income due to death or permanent disability.
 Bajaj Allianz Cash gain Economy: The basic package
 Bajaj Allianz Cash gain Gold: With double protection
 Bajaj Allianz Cash gain Diamond: With triple protection
 Bajaj Allianz Cash gain Platinum; With quadruple protection


C) Additional Protection for you and your family

You have the option to add the following additional benefits, providing total
protection against uncertainties.
i). Family Income Benefit (FIB) - The Ultimate Protection- For Your Loved Ones
. In case of death or accidental total permanent disability, a guaranteed monthly income
of 1% of the sum assured (12% per annum) is paid till the end of the policy term or at
least for a period of 10 years, whichever is higher. Moreover, all future premiums are
waived.

ii). Comprehensive Accident Protection

24
 These benefits provide comprehensive cover in case of an accident. It comprises
of:

iii). Accidental Death Benefit

Accidental Death Benefit pays an amount equal to the Sum Assured.
(Subject to a maximum of Rs. 50, 00,000/- under all policies with Bajaj Allianz taken
together) after the permanent loss of income

iv). Waiver or premium Benefit

It waives off all future premiums while keeping the valuable life insurance cover
alive.

v) Critical Illness Benefit (CI)

You have the flexibility of choosing Critical Illness cover up to the basic Sum Assured
selected by you (Minimum Rs. 50,000).

vi). Hospital Cash Benefit (HC)

. Bajaj Allianz Hospital Cash Benefit reduces financial burden of paying the hospital bills
.
vii) Flexibility in Coverage
You have the flexibility to change your package and move to a package that provides
lower protection at each policy anniversary (premiums would be adjusted accordingly).
"Comprehensive Accident Protection" can be included and excluded at each policy
anniversary. Family Income Benefit, Critical Illness Benefit and Hospital Cash Benefit
can be taken at inception only. FIB, CI & HC can be reduced or excluded subsequently at
any policy anniversary. Once reduced or excluded, they cannot be increased or included
subsequently.

Bajaj Allianz Swarna Vishranti

25
 The plan works in two parts- the deferment period and the annuity period, the
plan provides valuable life cover and builds up the funds required to purchase the
immediate annuity. The deferment period ends at the vesting date. You are free to choose
your age of retirement (vesting date) between 45 and 70 years.
Since the Bajaj Allianz Swarna Vishranti plan participates in the profits of the
company, the Sum Assured grows with time through the bonuses declared by the
company.

D) The "Bajaj Allianz Swarna Raksha"( RETIREMENT PLAN)

Bajaj Allianz Swarna Raksha, ensures a regular income after retirement. The plan
offers a life annuity with Return of Capital.
How does Bajaj Allianz Swarna Raksha work?
All you have to do is pay a lump sum amount to Bajaj Allianz Life Insurance
Company, and the annuity payments will start after expiry of monthly/quarterly/half-
yearly/yearly interval corresponding to the payment mode selected by you. Here annuity
is payable for life, so you do not have to worry about your income stopping at any stage.
What more, under the return of capital option, the amount used to purchase the annuity is
paid to the nominee on the death of the annuitant.

The benefits on Vesting Date (the date you choose to retire)

26
 1. The Account Value as on the vesting date will be used to purchase an
immediate annuity. The immediate annuity will be purchased at rates prevailing
at that point of time.
2. Option to take lump sum: You have the option to take upto 1/3rd of the account
value on the vesting date as a lump sum. This amount would be tax free in your
hand, as per current tax laws. The balance amount will be used to purchase an
immediate annuity.
3. Open market Option: You have the option to purchase an immediate annuity
from Bajaj Allianz or from any other company. If the immediate annuity is
purchased form Bajaj Allianz, the amount available for purchase of the annuity
will be marked up by 2%.
4. The minimum installment of annuity from Bajaj Allianz is Rs. 1000/- The
annuity frequency may be changed to make each installment more than the
minimum requirement. If it still below the minimum, the Account Value may be
utilised to purchase an immediate annuity from any other company in the open
market as per your choice, or paid in lump sum, is permissible, subject to the
prevailing tax laws.

Assurance-for your family

In the event of death during the deferment period, the policy holder’s spouse will
have the option to take the Account Value as a lump sum or purchase an annuity to
get regular income for life. For the immediate annuity, also the beneficiary will have
the Open Market Option as well. The immediate annuity from Bajaj Allianz will be
available only if the spouse is above 45. If age were below 45, the Account Value
would be paid out

OTHER BENEFITS

27
a. Additional Protection for You and Your Family:

You have the option to add the following four additional benefits, providing total
protection against uncertainties.
 Accidental Death Benefit.
 Accidental Permanent Total/Partial Disablement Benefit.
 Critical Illness Benefit (CI).
 Hospital Cash Benefit (HC).

b. Surrender value

This policy acquires a surrender value after 3 complete years of the policy, provided
the 1st 3 years’ premiums are paid. The Surrender Value is 100% of the value of
investments.

c. Tax Benefits

Value of Units cancelled for Critical Illness and Hospital Cash Benefit is eligible
for tax relief under Section 80(D). Death Benefit and Withdrawals (partial or full)
is tax free under section 10(10) D of the Income Tax Act, if the premiums paid in
any year does not exceed 20% of the Sum Assured or Fund Value, whichever is
higher. Incase of change in any tax laws relevant to the policyholder or the fund
performance, the same will be applied as per regulations prevailing at the point of
time.

AGE LIMITS

28
Age at entry:
Minimum age of entry: 0 years (Completed years)
Maximum age of entry: 60 years (Completed years)

4.3) CHILD CARE

Taking care of a child is perhaps the most important job a parent can have. It is but
natural that you would like to give your child your best, and therefore, this is the time
when careful financial planning can help you fulfill the aspirations that you have for your
children. The Bajaj Allianz “Child Care” Solutions help you to enjoy the joys of
parenthood responsibly, with the reassurance of a secure future for your child.
CHILD CARE PLAN OFFERS
Child Care plan is a children money back plan with profit. Bajaj Allianz Child Care
offers a wide array of solutions that allows you to plan for your child’s future by
providing you with as many as 4 distinct and unique options.

1. Child Care 21
2. Child Care 24
3. Child Care 21 Plus
4. Child Care 24 Plus

29
START OF LIFE BENEFIT

This is a unique feature of Bajaj Allianz “Child Care” 21 Plus & 24 Plus. These packages
offer you the choice of providing a unique Start of Life Benefit for your child. For a
nominal amount, an additional Sum Assured subject to a maximum limit of Rs.10 Lacks
will become payable to enable the child start hi/her professional life smoothly, in case of
an unfortunate death or Accidental Permanent Total Disability of the Policy holder during
the term of the policy. This benefit will not be available in the event of accidental
permanent total disability after age 65 of the policy holder.

IN-BUILT BENEFITS

A) PREMIUM WAIVER BENEFIT:

In case of death or Accidental Total Permanent Disability of the policyholder
during the premium payment term, all future premium payments are waived. This
benefit will not be available in the event of accidental permanent total disability after
age 65 of the policy holder.

B) FAMILY INCOME BENEFIT:

In case of death or accidental total permanent disability of the policy holder during
the term of the policy, a monthly income benefit of 1% of the sum assured (12% per
annum) becomes payable till the end of the policy term (subject to a maximum of Rs.
1,20,000 per annum). This benefit will not be available in the event of accidental
permanent total disability after age 65 of the policy holder.

C) OPTION TO PURCHASE FURTHER INSURANCE AT MATURITY:

For ensuring continuity of the valuable insurance protection that the child was
enjoying, we offer the child and option to purchase a with profits endowment or an
equivalent plan from Bajaj Allianz Life Insurance Company for twice the amount of

30
face value of this policy, without any medical examination, on the premium rates
prevailing at that time. (The application must be made at least 6 months prior to
maturity of this policy).

31
 CHAPTER 2

2 .REVIEW OF LITERATURE
For the present study, the following literatures are being reviewed.
The title of Article is “does customer satisfaction lead to profitability”?
Author (s): Timothy L. Keiningham, Tiffany Perkins –Munn, Lerzan Aksoy , demitry
Estrin
Journal: Managing Group Publishing Limited
Purpose- Many researchers have proposed a virtuous chain of effect from improved
Customer satisfaction to profits. In particular, satisfaction is thought to improve share-Of
–spending, which in turn leads to higher customer revenue and customer profitability.
This paper aims to examine these proposal linkages using data from the institution
securities Industry.
In the present scenario companies are facing their toughest competition ever. It is Very
necessary for any companies to change their philosophy from product and sales
Philosophy to a marketing philosophy. All the companies are required to win their
customer and outperform their competitors; this can be done by doing a better job of
meeting or exceeding customer expectations.
In general customer satisfaction is a customer’s feelings of pleasure of disappointment
resulting from comparing a product’s perceived performance in relation to his or her
Expectations. If the performance falls short of expectation, customer is dissatisfied, if the
performance match the expectations, the customer is satisfied and if it exceeds then he is
delighted .there is a huge link between customer satisfaction and customer loyalty.
Suppose if he is not satisfied then he will shift to another vendor, if he is satisfied then he
may shift to another vendor if his offer is better and he will remain loyal when he is
delighted and fully satisfied. Customer builds their expectation only by their past buying
experience, friends’ and associates advice, and marketers and competition information
and promises. So the companies need to raise expectation and delivering to match. So it
is understood that customer will buy from the they see as offering the highest perceived
value.

32
Insurance is an important decision for any family member. Depending if its health, life,
or home owner, it is still a major choice to be made. When a person visit the doctor and
he will pay for co-pay, his health insurance is paying for the rest. If something would
happen to the person with the most income, life insurance would help to cover this.   Or
say when a person at work and his home burns down, homeowners insurance would get it
to be covered. Insurance is an essential part of everyday life because don’t know what is
going to happen at any time of the day. There are many of types of insurance companies
all around the world. You probably have some in the hometown, or see commercials day.
      One domestically owned insurance company is the Home Mutual Insurance
Company. It is a mutual insurance company licensed in the state of Indiana with another
subside agency called, German Mutual Insurance Agency, which holds offices in Indiana
and New Albany.   The Home Mutual Insurance Company was formed by a group of
citizens in 1876 in the city of Tell City, Indiana.   Since that time, they have grown and
currently have 13 people and have 2 offices located in south-western Indiana. In the year
2008 they celebrated their 132nd anniversary as a company.

It has been observed that insurance agents should constantly monitor the level of
satisfaction among his/her customers to keep themselves close to the customers for
fulfilling their needs (Joseph et al., 2003). Ennew et al. (1993) indicated that a
comparison of mean scores on the importance of service attributes provides a very
effective method of measuring the ability of services to meet the needs of the customers.
Perceived service quality has a significant effect on the attitude towards obtaining
insurance (Arora and Stoner, 1996). Moreover, the degree of success in the
implementation of enterprise mobilization in the life insurance industry is positively
correlated to the management performance of external aspects like providing increased
customer satisfaction (Luarn etal., 2003). Customer satisfaction and the salesperson’s
relation orientation significantly influences the future business opportunities and as the
salespersons are able to enhance their relationships with the clients, clients are more
satisfied and are more willing to trust, and thus secures the long-term demand for the
services (Tam and Wong, 2001). Hellieret al. (2003) found that in insurance purchase
brand preference is an intervening factor between customer satisfactions and repurchase
intention and the main factor influencing the brand preference is the perceived value and

33
customer satisfaction. The company and agent’s service quality as well as
recommendations of friends are factors that significantly affect decisions of purchasing
life insurance policies (Chow-Chua and Lim, 2000). Stafford et al. (1998) in a study on
auto-casualty industry proved that reliability is consistently the most important
determinant of both perceived service quality and feelings of satisfaction among
customers engaged in auto-insurance claims. No such study has been carried out in the
area of life insurance. Given the importance of the life insurance industry in India in
terms of increasing market size, growing competition and the share of the total insurance
premium market, this paper attempts to identify the service quality dimensions which
contribute to the maximum customer satisfaction in the life insurance industry of India 

DEFINED BY CHURCHILL (2006)

This literature review provides an overview of the current state of research on micro
insurance identifies key knowledge gaps and develops a conceptual framework to inform
and organize the research agenda of the Micro insurance Facility in the area of impact
evaluation, demand and supply issues. For the purpose of this review, micro insurance is
defined in line with Churchill (2006) as an insurance that (i) operates by risk-pooling (ii)
is financed through regular premiums and is (iii) tailored to the poor who would
otherwise not be able to take out insurance. The main focus of the literature review is on
voluntary insurance1. Other ways through which individuals or the public sector can
insure against risks, such as precautionary savings, access to credit or through public
safety nets are therefore not treated in detail in this review. However, this leads already to
one key omission in the existing literature: generally, the benefits of micro insurance are
not compared to alternative mechanisms that may provide insurance like benefits,
possibly in a more cost-effective way, such as micro savings, consumer or emergency
credit, and public safety nets. This paper is divided into four parts. The first section offers
a general framework to understand the link between risk and poverty, allowing us to
carve out a clear place for insurance activities as part of poverty eradication efforts. It
also summarises some of the key findings related to the work on risk and its
consequences for households, communities and firms. Part two deals with evaluating the
impact of micro insurance and develops a general conceptual framework for impact

34
analysis applicable to various types of insurances. It reviews some of the (few) papers
that have been able to assess the overall impact of insurance on welfare outcomes. Part
three reviews demand side issues is there a demand for insurance, and what (if anything)
constrains this demand to be reflected in actual uptake of insurance products. Areas
considered relate to the actual cost and pricing of micro insurance, the credibility of the
provider, and the issue of information and knowledge about risk and insurance. Part four
reviews key supply side challenges, such as effective product development, pricing,
marketing and sale, institutional models and delivery channels as well as technology
options. An overview of studies reviewing a range of micro insurance programmes is
presented in the Annex. It is important to highlight that, while different insurance
products are discussed at the same time, readers should keep in mind major differences
between health insurance and other types of insurance such as life, property or rainfall
insurance. The latter products can typically be seen as only dependent on the appropriate
functioning and management of the insurance system itself. The impact on clients will
depend on whether incomes, assets or other outcomes are better protected with the
product rather than without. Health insurance is more complicated. The impact of health
insurance is most appropriately assessed in terms of health, but this is directly dependent
on the strength and weaknesses of the health care provision, and not just the financial side
of the insurance scheme. For example, factors such as the structure of health service
delivery system, its financing, monitoring and regulation play a crucial role in
determining health insurance performance

35
 CHAPTER-3

DATA ANALYSIS AND

INTERPRETATION

36
 CHAPTER 3
A. FINDINGS AND ANALYSIS FROM GENERAL PEOPLE
1. People having insurance policies.

Table No: 3.1.1 (People having insurance policies)

Insurance policy holder No. Of respondent Percentage
Yes 36 72
No 14 28
Total 50 100

Inference:
Out of the 50 people interviewed nearly 72% people have taken insurance policy.

Figure no.3.2.1

PEOPLE HAVING INSURANCE POLICIES

28%

Yes
No
72%

37
2. People having insurance policies of different company.

Table No: 3.1.2(% of insured population in various companies)

Insurance policy of No. Of respondent Percentage
different company
LIC 12 32
Bajaj Allianz 10 28
ICICI pru 6 17
TATA AIG 1 3
Birla sun life 2 6
Aviva 2 6
Max Newyork 3 8
Total 36 100

Inference:
Out of the 50 insurable people interviewed nearly 72% people have taken insurance
policy. Out of this population being interviewed nearly 32 % had LIC policy, 28 % had
BAJAJ Allianz, followed by ICICI Pru. (17 %), Max New York Life (8 %) , TATA
AIG(3%), Birla Sun Life (6%), Aviva and HDFC having 6% shares each in the
interviewed population.
Figure no.3.2.2

% OF INSURED POPULATION IN VARIOUS COMPANIES

Bajaj Allianz

LIC
6%
3% 6% Max Newyork
28%

17%
ICICI Pru

TATA AIG
8%
Birla sun life
33%

AVIVA

38
3. Insurance policies as an investment alternative option.

Table No: 3.1.3

Purpose of insurance No. Of respondent Percentage
Investment alternative 11 22
Security option 39 78
Total 50 100

Inference:
Out of the 50 people interviewed 78 % people term/see insurance policy as a security
option while only 22 % see it as an investment option.

Figure No: 3.2.3

PURPOSE OF INSURANCE

22%
Investment Alternative

78% Security Option

39
4. Investment preferences in various alternatives.

Table No: 3.1.4

Investment Alternatives No. Of respondent Percentage
Shares 16 22
Mutual funds 12 78
Life insurance 18 100
Government bonds 4
Total

Inference:
Out of 50 being interviewed, 18 people invest in life insurance policies, 16 people invest
in shares, 12 people invest in mutual funds and 4 people invest in government bonds.

Figure No: 3.2.4

INVESTMENT PREFERENCES IN VARIOUS ALTERNATIVES

20
18
16
14
12
(No. of people)

10
8
6
4
2
0
Shares Mutual Funds Life insurance Government
Bonds

(Investment alternatives)

40
5. Criteria for selecting an insurance company.

Table No: 3.1.5

Various option No. Of respondent Percentage
Security 15 30
Time span 5 10
Market share 2 4
Return 8 16
All of above 20 40
Total 50 100

Inference:
Out of 50 people being interviewed, 15 people select an insurance company on the
criterion of security, 5 people select an insurance company on the criterion of time span,
2 people select an insurance company on the criterion of market share, 8 people select an
insurance company on the basis of return and 20 people select an insurance company on
the basis of all the above mentioned reasons.

Figure No: 3.2.5

CRITERIA FOR SELECTING AN INSURANCE

COMPANY

20
20
15
15
8
10
5
5 2

0
Security Time span Market share Return All of the
above

41
6. Perception of people about safetyness : lic vs pvt. Life insurance companies.
Table no: 3.1.6
Perception of people No. Of respondent Percentage
about safetyness
Yes 19 38
No 31 62
Total 50 100

Inference:
Out of 50 people being interviewed, 62 % of people do not find private life insurance
companies to be safe for buying a life insurance policy whereas 38 % people find them
safe for buying a life insurance policy from a private life insurance company.

Figure no: 3.2.6

Yes
38%

Yes No
No
62%

42
 B. Data analysis for perception of people
towards insurance

1. Objective of investment in life insurance.

Table no: 3.1.7

Objective of investment No. Of respondents Percentage
Protection 29 58
Tax benefit 13 26
Return 8 16
Total 50 100

Inference:
The above table shows the basic investment objective of the respondents. Out of 50
respondents, 58% perceive protection as their investment objective, 26% perceive tax
benefit and the remaining 16% perceive return as their investment objective. This shows
that maximum no. Of people perceive insurance as protection tool rather than investment
tool, which shows that there is growing awareness of real benefit of insurance.

Figure no.3.2.7

Obje ct ive of I nve stm e nt

16%
Prot ec t ion
Tax Benef it
26% 58% Ret urn

43
2. For respondents who perceive protection as their investment objective.

Table no: 3.1.8

Type of plan No. Of respondents percentage
Traditional plan 2 7
Unit linked plan 14 48
Term plan 6 21
Health plan 4 14
Pension plan 3 10
Total 29 100

Inference:
The above table shows the type of plan preferred. Out of 29 respondents who perceive
protection as their investment objective, 48% prefer unit linked incentive plan.
The remaining are divided into : 21% who prefer term plan, 14% who prefer health plan,
10% who prefer pension plan and 7% who prefer traditional plan. This shows that people
who perceive protection as their investment objective prefer unit linked incentive plan
more than other plans.

Figure no.3.2.8

Pr e f e r r e d Pla n
Tradit ional Plan

Unit Linked
10% 7% I nc ent iv e Plan
14%
Term Plan

21% 48% Healt h Plan

Pension Plan

3. Time frame preferred (investment objective: protection)

Table no: 3.1.9

44
 Time frame No. Of respondents Percentage
3-5 years 9 31
10-20 years 18 62
20 years and above 2 7
Total 29 100

Inference:
The above table shows the preferred time frame of investors. Out of 29 respondents who
perceive protection as their investment objective, 62% investors invest for a time frame
of 10-20 years. 31% investors prefer to invest for a time frame of 3-5 years and 7%
prefer to invest for a time frame of more than 20 years. This shows that people who
perceive protection as their investment objective prefer a time frame of 10-20 years for
investment.

Figure no: 3.2.9

Pr e f e r r e d T im e Fr a m e

3- 5 y ears
7%
31%
10- 20 y ears

62% 20 y ears and

abov e

45
4. Percentage of total investment in life insurance (investment objective: protection)

Table no. 3.1.10

% of investment in life insurance No. Of respondents Percentage
Less than 10% 7 24
10-20% 16 56
20-40% 5 17
40-60% 1 3
60-80% 0 0
80-100% 0 0
Total 29 100

Inference:
The above table shows the percentage of total investment in life insurance. Out of 29
respondents who perceive protection as their investment objective, 56% invest around 10-
20% of their total investment in life insurance. 24% respondents invest less than 10%,
17% of them invest around 20-40% and 3% of them invest around 40-60% of their total
investment in life insurance.

Figure no: 3.2.10

% I nve st m e nt in Lif e I nsur a nce

17% 3% 24% Less t han 10%

10- 20%
20- 40%
56% 40- 60%

B) For respondents who perceive tax benefit as their investment objective:

46
1. Type of plan preferred (investment objective: tax benefit)

Table no: 3.1.11

Type of plan No. Of respondents Percentage
Traditional plan 0 0
Unit linked plan 7 53
Term plan 4 31
Health plan 1 8
Pension plan 1 8
Total 13 100

Inference:
The above table shows the type of plan preferred by investors who perceive tax benefit as
their investment objective. Out of 13 respondents, maximum no. Of people prefer unit
linked incentive plan i.e. 53%. 31% investors prefer term plan, 8% investors prefer
health plan and 8% investors prefer pension plan.

Figure no: 3.2.11

Pr e f e r r e d Pla n

Unit Linked
I nc ent iv e Plan
8% 8% Term Plan

53% Healt h Plan

31%

Pension Plan

2. Time frame preferred (investment objective: tax benefit)

Table no: 3.1.12

Time frame No. Of respondents Percentage

47
 3-5 years 4 31
10-20 years 8 61
20 years and above 1 8
Total 13 100

Inference:
The above table shows the preferred time frame of investment for respondents who
perceive tax benefit as their investment objective. Out of 13 respondents, 61% investors
prefer 10-20 years of time frame for investment. 31% investors prefer 3-5 years of time
frame and 8% prefer more than 20 years of time frame for investment.

Figure no: 3.2.12

Pr e f e r r e d T im e Fr a m e

3- 5 y ears
8%
31%
10- 20 y ears

61% 20 y ears and

abov e

48
3. Percentage of total investment in life insurance (investment objective: tax benefit)

Table no: 3.1.13

% of investment in life insurance No. Of respondents Percentage
Less than 10% 3 23
10-20% 8 62
20-40% 2 15
40-60% 0 0
60-80% 0 0
80-100% 0 0
Total 13 100

Inference:
The above table shows the percentage of total investment in life insurance for investors
who perceive tax benefit as their investment objective. Out of 13 respondents, 62%
investors prefer to invest around 10-20% of their total investment in life insurance. 23%
investors prefer less than 10% investment and 15% prefer 20-40% of their total
investment in life insurance.

Figure no: 3.2.13

% I nve st m e nt in Lif e I nsur a nce

15% 23%
Less t han 10%
10- 20%
20- 40%
62%

For respondents who perceive return as their investment objective :

1. Type of plan preferred (investment objective : return)

49
 Table no: 3.1.14
Type of plan No. Of respondents Percentage
Traditional plan 0 0
Unit linked plan 8 100
Term plan 0 0
Health plan 0 0
Pension plan 0 0
Total 8 100

Inference:
The above table shows the preferred plan of investors who perceive return as their
investment objective. Out of 8 respondents, all of them preferred to invest in unit linked
incentive plan.

Figure no: 3.2.14

Pr e f e r r e d Pla n

Unit Linked
I nc ent iv e Plan
100%

2. Time frame preferred (investment objective: return)

Table no: 3.1.15
Time frame No. Of respondents Percentage
3-5 years 4 50
10-20 years 4 50
20 years and above 0 0

50
 Total 8 100

Inference:
The above table shows the preferred time frame of investment for people who perceive
return as their investment objective. Out of 8 respondents, 50% prefer to invest for a time
frame of 3-5 years i.e. Short term investment and 50% of them prefer to invest for a time
frame of 10-20 years i.e. Long term investment

Figure no: 3.2.15

Pr e f e r r e d T im e Fr a m e

3- 5 y ears
50% 50% 10- 20 y ears

51
3. Percentage of total investment in life insurance (investment objective : return).

Table no: 3.1.16

% of investment in life insurance No. Of respondents Percentage
Less than 10% 1 13
10-20% 4 49
20-40% 3 38
40-60% 0 0
60-80% 0 0
80-100% 0 0
Total 8 100

Inference:
The above table shows the percentage of total investment in life insurance for investors
who perceive return as their investment objective. Out of 8 respondents, 49% invest
around 10-20%, 38% invest around 20-40% and 13% invest less than 10% of their total
investment in life insurance

Figure no: 3.2.16

% I nve st m e nt in Lif e I nsur a nce

13%
38% Less t han 10%
10- 20%
20- 40%
49%

52
4.) Preferred Life Insurance Company.

Table no: 3.1.17

Life insurance company No Of respondents Percentage
Lic 19 38
Icici prudential 9 18
Max new York life 1 2
Bajaj Allianz 3 6
Hdfc std. Life 5 10
Reliance life insurance 9 18
Others 4 8
Total 50 100

Inference:
The above table shows the preferred life insurance company of investors. Out of 50
respondents, 38% prefer Lic, 18% prefer Icici prudential, 18% prefer reliance life
insurance, 10% prefer hdfc standard life insurance, 8% have chosen others category
which include kotak life insurance and new India insurance, 6% prefer Bajaj Allianz and
2% prefer max New York life

Figure no: 3.2.17

Pr e f e r r e d Life I nsur a nce Com pa ny

LIC
8%
ICICI Prudent ial
18% 38% Max New Yo rk Life
Baj aj Allianz
10% HDFC St d. Life
6% Reliance Life Insurance
18%
Ot hers
2%

53
 B) Data analysis for effectiveness of communication strategy of Bajaj
Allianz

1. Reason for investment in Bajaj Allianz

Table no: 3.1.18

Reason for investment No. Of respondents Percentage
Brand name 5 10
Services 5 10
Reference 20 40
Time constraint 0 0
High returns 10 20
Product satisfaction 10 20
Total 50 100

Inference:
The above table shows the various reasons why people invested in Bajaj Allianz’s plan.
Out of the 50 respondents, 40% invested on the basis of reference, 20% invested on the
basis of high returns provided by the company, 20% invested because they were satisfied
with the product’s features, 10% invested due to brand name and 10% invested due to the
services provided by Bajaj Allianz Figure no: 3.2.18
Figure no: 3.2.18

Reason for investment in Bajaj Allianz

40%
30%
20%
Reason for investment in
10% Bajaj Allianz
0%
e ice ce ts rn n
na
m rv r en r ain retu ctio
e fe t a
d S s sf
an Re on igh ati
Br e c H
ct
s
Tim o du
pr

2.) The plan follows the feature that is communicated.

54
Table no: 3.1.19
Feature followed No. Of respondents Percentage
Yes 40 80
No 10 20
Total 50 100

Inference:
The above table shows whether the plan that was bought by the customers follow the
feature that was communicated to them. Out of 50 respondents, 80% believes that the
plan follows the feature that is communicated to them and 20% believes that the plan
does not follow feature that is communicated to them

Figure no: 3.2.19

Fe a t ur e Follow e d

20%

Yes
No

80%

3. Plan satisfying requirement of customer.

Table no: 3.1.20

55
 Requirement satisfied No. Of respondents Percentage
Yes 45 90
No 5 10
Total 50 100

Inference:
The above table shows whether the plan bought by the customers satisfy their
requirements or not. Out of the 50 respondents, 90% believes that the plan suits their
requirement and 10% believes that the plan does not suit their requirement.

Figure no: 3.2.20

Re quir e m e nt sa t isf ie d

10%

Yes
No

90%

4. Service satisfaction of Bajaj Allianz

Table no: 3.1.21

Service satisfaction No. Of respondents Percentage

56
 Yes 35 70
No 15 30
Total 50 100

Inference:
The above table shows whether the customers of Bajaj Allianz are satisfied with their
services or not. Out of 50 respondents, 70% are satisfied with Bajaj Allianz’s services
and 30% are not satisfied with Bajaj Allianz’s services. The reason for dissatisfaction
was lack of proper attention given to customers.

Figure no: 3.2.21

Se r vice sa tisfa ct ion

30%
Yes
No
70%

Personal details chart

5. Age distribution of respondents

Table no: 3.1.22

57
 Age No. Of respondents Percentage
21-35 39 78
36-50 8 16
51-65 3 6
Above 66 0 100

Inference:
The above table shows the age distribution of respondents. Out of 50 respondents 78%
fall under the age category of 21-35 years, 16% fall under the age category of 36-50 years
and 6% fall under the age category of 51-65 years.

Figure no: 3.2.22

Age Dist r ibution of Re sponde nts

6%
16%
21- 35
36- 50
51- 65
78%

6. Occupation distribution of respondents

Table no: 3.1.23

Occupation No Of respondents Percentage
Profession 3 6
Businessman 12 24
Govt. Servant 1 2
Employee 29 58

58
 Others 5 10
Total 50 100

Inference:
The above table shows the occupation distribution of respondents. Out of 50
respondents, 58% fall under employee category, 24% fall under businessman category,
10% fall under others category which includes housewives, 6% fall under profession
category and 2% fall under govt. Servant category.

Figure no: 3.2.23

Occupa t ion Distr ibut ion of

Re sponde nt s

10% 6% Prof ession

24% Businessman
Gov t . Serv ant
2% Employ ee
58%
Ot hers

7. Yearly income distribution of respondents.

Table no: 3.1.24

Yearly income Percentage. Of respondents Percentage
Less than 1 lac 9 18
1 to 2 lacs 29 58
2 to 3 lacs 9 18
3 to 4 lacs 3 18
Total 50 100

Inference

59
The above table shows the income distribution of respondents. Out of 50 respondents,
58% earn income around 1 to 2 lacs, 18% earn income around 2 to 3 lacs, 18% earn
income less than 1 lac and 6% earn income around 3 to 4 lacs.

Figure no: 3.2.24

I ncom e Dist r ibut ion of

Re sponde nt s

6% 18% Less t han 1 lac

18%
1 t o 2 lac s
2 t o 3 lac s
58% 3 t o 4 lac s

1) Chi-Square Test

Frequencies

60
 income group

Observed N Expected N Residual

less than 1lakh 9 12.5 -3.5

1-2 lakh 29 12.5 16.5

2-3 lakh 9 12.5 -3.5

3-4 lakh 3 12.5 -9.5

Total 50

rank the following as per your preference to investment in a

financial year:

Observed N Expected N Residual

Shares 18 12.5 5.5

mutual fund 16 12.5 3.5

life insurance 13 12.5 .5

government bonds 3 12.5 -9.5

Total 50

Test Statistics

rank the
following as per
your preference
to investment in
income group a financial year:

Chi-Square 30.960a 10.640a

Df 3 3

Asymp. Sig. .000 .014

a. 0 cells (.0%) have expected frequencies less

than 5. The minimum expected cell frequency is
12.5.

Null hypothesis: H0
There are significant differences between the factors

61
Alternative hypothesis: H1
There are no significant differences between the factors
Calculated value:-20
Expected value =12.5

62
2. Chi-Square Test

Frequencies

age group
Observed N Expected N Residual
1 39 16.7 22.3
2 8 16.7 -8.7
3 3 16.7 -13.7
Total 50

objective of investment
Observed N Expected N Residual
protection 29 16.7 12.3
tax benefit 13 16.7 -3.7
return 8 16.7 -8.7
Total 50

63
 Test Statistics
objective of
age group investment
Chi-Square 45.640a 14.440a
Df 2 2
Asymp. Sig. .000 .001
a. 0 cells (.0%) have expected
frequencies less than 5. The minimum
expected cell frequency is 16.7.

Null hypothesis: H0
There are significant differences between the factors
Alternative hypothesis: H1
There are no significant differences between the factors
Calculated value:-14.4
Expected value =16.7

64
 CHAPTER-4
FINDINGS AND SUGGESTIONS
4.1 FINDINGS

(1) Finding from general people:

 Out of the 50 people interviewed nearly 72% people have taken insurance
policy.
 Out of this population being interviewed nearly 32 % had LIC policy, 28
% had BAJAJ Allianz, followed by ICICI Pru. (17 %), Max New York
Life (8 %), TATA AIG (3%), Birla Sun Life (6%), Aviva and HDFC
having 6% share each in the interviewed population.
 Out of the 50 people interviewed 78 % people term/see insurance policy as a
security option while only 22 % see it as an investment option.
 Out of 50 being interviewed, 18 people invest in life insurance policies, 16 people
invest in shares, 12 people invest in mutual funds and 4 people invest in
government bonds.
 Out of 50 people being interviewed, 62 % of people do not find private life
insurance companies to be safe for buying a life insurance policy whereas 38 %
people find them safe for buying a life insurance policy from a private life
insurance company.

(2) Perception of people towards insurance.

 Out of 50 respondents, 58% perceive protection as their investment

objective, 26% perceive tax benefit and the remaining 16% perceive return
as their investment objective. This shows that maximum no. Of people
perceive insurance as protection tool rather than investment tool, which
shows that there is growing awareness of real benefit of insurance.

65
A) For respondents who perceive protection as their investment objective:
 Out of 29 respondents who perceive protection as their investment
objective, 48% prefer unit linked incentive plan. The remaining are
divided into : 21% who prefer term plan, 14% who prefer health plan,
10% who prefer pension plan and 7% who prefer traditional plan. This
shows that people who perceive protection as their investment objective
prefer unit linked incentive plan more than other plans.
 Out of 29 respondents who perceive protection as their investment
objective, 56% invest around 10-20% of their total investment in life
insurance. 24% respondents invest less than 10%, 17% of them invest
around 20-40% and 3% of them invest around 40-60% of their total
investment in life insurance.

B) For respondents who perceive tax benefit as their investment objective :

 Out of 13 respondents, maximum no. of people prefers unit linked

incentive plan i.e. 53%. 31% investors prefer term plan, 8% investors
prefer health plan and 8% investors prefer pension plan.
 Out of 13 respondents, 61% investors prefer 10-20 years of time frame for
investment. 31% investors prefer 3-5 years of time frame and 8% prefer
more than 20 years of time frame for investment.
 Out of 13 respondents, 62% investors prefer to invest around 10-20% of
their total investment in life insurance. 23% investors prefer less than
10% investment and 15% prefer 20-40% of their total investment in life
insurance.

For respondents who perceive return as their investment objective :

 Out of 8 respondents, all of them preferred to invest in unit linked

incentive plan.

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  Out of 8 respondents, 50% prefer to invest for a time frame of 3-5 years
i.e. Short term investment and 50% of them prefer to invest for a time
frame of 10-20 years i.e. Long term investment
 Out of 8 respondents, 49% invest around 10-20%, 38% invest around 20-
40% and 13% invest less than 10% of their total investment in life
insurance
 Out of 50 respondents, 38% prefer Lic, 18% prefer Icici prudential, 18%
prefer reliance life insurance, 10% prefer hdfc standard life insurance, 8%
have chosen others category which include kotak life insurance and new
India insurance, 6% prefer Bajaj Allianz and 2% prefer max New York
life.

3) Findings for effectiveness of communication strategy of Bajaj Allianz.

 Out of the 50 respondents, 40% invested on the basis of reference, 20%
invested on the basis of high returns provided by the company, 20%
invested because they were satisfied with the product’s features, 10%
invested due to brand name and 10% invested due to the services provided
by Bajaj Allianz
 Out of 50 respondents, 80% believes that the plan follows the feature that
is communicated to them and 20% believes that the plan does not follow
feature that is communicated to them
 Out of the 50 respondents, 90% believes that the plan suits their
requirement and 10% believes that the plan does not suit their requirement
 Out of 50 respondents, 70% are satisfied with Bajaj Allianz’s services and
30% are not satisfied with Bajaj Allianz’s services. The reason for
dissatisfaction was lack of proper attention given to customers.

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 4.2 SUGGESTIONS

Among all the existing life insurance Companies in India Bajaj Allianz Product
have an edge.
But according to observation the company can look forward to following
suggestions:-
 Company can launch a investment plan specially designed for students in which
they can invest small amount (eg-:500 to 1000)
 Company can design some products exclusively for rural areas keeping is mind
the rural conditions.
 Locking period should be reduce which can attract more investors .
 It can distribute discount coupons to its prime customers on special Occasions,
this will keep the customer happy and satisfied.
o Since the company has a tie up with Bajaj Auto, syndicate Bank Standard
Charted Bank It can plan out some schemes with the banks that are
beneficiary for the customers. (Like being the customer of Bajaj Allianz
they can avail some benefit of Bajaj Auto. Standard charted bank, and
syndicate Bank.).
 Company can start attractive schemes for insurance consultants like salary for top
performers.

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 4.3 CONCLUSION

The research project titled as “A STUDY ON PERCEPTION OF INVESTOR

TOWARDS INSURANCE AT BAJAJ ALLIANZ” enabled to understand the
competition among the various life insurance companies which have entered Indian
market of life insurance after 2000 when private life insurance companies were allowed
to enter the Life insurance sector in India. BAJAJ Allianz is one of the companies in the
private sector which are doing exceptionally good in this sector due to their policies to
which people find very attracting according to their needs. When people were
interviewed about the first preference among the private life insurance companies nearly
46% replied for BAJAJ Allianz, this clearly indicates that BAJAJ Allianz is quite a
household name. The reasons for this are many like it is a company with very strong
brand names: BAJAJ Auto Limited which is the no. 1 Automotive Manufacturer in India
also Allianz AG is 3rd largest life insurance company in the world. The market share of
BAJAJ Allianz also around 34% among private life insurance companies which is quite
high among private life insurance companies. It is only second to LIC in the life
insurance sector.

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 ANNEXURES

QUESTIONNAIRE

GENERAL

NAME : ……………………………………………………………

ADDRESS: ………………………………………………………..

CONTACT NUMBER:……………………………………………..

MATIAL STATUS : SINGLE MARRIED

1. Age : □ 21-35 □ 36-50 □ 51-65 □ above 66

2.Occupation :
□ Profession □ businessman □ govt. Servant
□ Employee □ others __________

3. Yearly income :
□ Less than 1 lac □ 1 to 2 lacs □ 2 to 3 lacs
□ 3 to 4 lacs □ 4 lacs or more

4. Do you have a life insurance policy? If yes, then of which

company/companies?
□ yes □ no

5. Do you see insurance policies as an investment alternative or a security

option?

□ yes □ no

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 6. Please rank the following as per your preference to investment in a financial
year:
1.shares 2. Mutual fund
3.life insurance 4.government bonds
7. What is your criteria/criterion to select a particular insurance company and a
scheme?
1.security 2.time span
3.market share 4. Return 5.all of the above

8. Do you think that private life insurance companies are as safe as LIC for taking
a policy?

□ yes □ no

Part A: perception of people towards insurance

1. Are you aware of life insurance?

□ yes □ no

2. Have you ever invested in life insurance?

□ yes □ no
If yes, through which company ____________________

3. Which of the following parameters has lead you to investment?

□ Tax benefit
□ protecting income against disability/ sickness/ illness
□ protecting your family against premature death
□ Plan for retirement
□ Wealth creation
□ Children’s education/ marriage
4. Rank the parameters you would prefer before making investment in life

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 insurance?
□ Tax benefit □ return □ protection

5. Which type of plan would you prefer while making the investment?
□ Traditional plan □ unit linked plan □ term plan
□ Health plan □ pension plan

6. For what time frame would you prefer to invest?

□ 3-5 years □ 10-20 years □ 20 years and above

7. Indicate the approximate % of total investment in life insurance

□ Less than 10% □ 10-20% □ 20-40%
□ 40-60% □ 60-80% □ 80-100%

8. Indicate your preferred life insurance company

□ LIC □ ICICI Prudential □ Max New York life
□ Bajaj Allianz □ met life □ HDFC std. Life
□ Tata AIG □ reliance life insurance
□ Others _________________

Part B: effectiveness of communication strategy of Bajaj Allianz

1. In which plan have you invested?

_____________________________________________________

2. What made you invest in Bajaj Allianz’s plan?

□ Brand name □ services □ reference
□ Time constraint □ high returns □ product satisfaction

3. What is the main feature that has made you invest in the plan?
_____________________________________________________

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4. Does the plan follow the feature that is communicated to you?
□ yes □ no
If no, why ? ___________________________________________

5. Does the plan satisfy your requirement?

□ yes □ no

6. Are you satisfied with Bajaj Allianz’s services ?

□ yes □ no
If no, why ? ___________________________________________

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 BIBLIOGRAPHY

Books
 KOTHARI, C.R.. (Revised Second Edition, 2007) “RESEARCH
METHODOLOGY (Method and Techniques)” New Age International (P) Ltd,
Publishers, New Delhi.

 MARKETING MANAGEMENT( A South Asian Perspective) 13th edition 2009

by Philip Kotler,Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha

 K T Shah “Insurance” Hesperides Press, Publisher.

 William G Zikmund “Business Research Methods” Cengage Learning

Publisher.

Websites
www.bajajallianz.com
www.businessworldonline.com
www.google.com

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