CHAPTER-1 INTRODUCTION

CHAPTER -1

INTRODUCTION

1.1 OUTLINE OF THE PROJECT 1

This is to know the perception level among investors and their expectations who invested in Bajaj Allianz or the level of customers 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 customers 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.

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

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.

1.1.3OBJECTIVES OF THE STUDY To identify the changing investment behaviour. 4

 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.

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. 5

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 respondents 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.

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

C HI-SQUARE TEST A chi-square test (also chi-squared or x2 test) 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 7

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.

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. 8

4. only limited number of question were asked.

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. 9

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 socalled 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 ones 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 consequences on the death or disability of the insured person. Life insurance needs to be a mandatory part of every persons 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.

11

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 ones 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 persons 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.

INSURANCE SECTOR REFORMS

12

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
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)

13

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.

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... 14

(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 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; 15

(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

COMPANY PROFILE

16

COMPANY PROFILE

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. 17

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. 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 18

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.

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.

19

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

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 A Unit Linked Plan UNITGAIN SP A Single Premium unit Linked Plan INVESTGAIN An Endowment Plan
20

RISK CARE Pure Term Plan TERM CARE term Plan with Return-ofPremium LIFETIME CARE Whole Life Plan

 CHILDGAIN Children's Policy

SAVE CARE ECONOMY SP Single Premium Endowment Plan

CASHGAIN Money Back Plan SWARNA VISHRANTI Retirement Plan UNITGAIN PLUS Unit Link plan with higher allocation

LOAN PROTECTOR A Mortgage Reducing term Insurance Plan KEYMAN INSURANCE A Promising Business Opportunity UNITGAIN PLUS SP A Single premium Unit 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 Guaranteed death benefit Choice of 5 investment funds with flexible investment management: you can change funds at any time. Attractive investment alternative to fixed interest securities. Provision for full/partial withdrawals any time after three full years premiums are paid. Unmatched flexibility- to match your changing needs. Cash option withdrawal Benefits Death Benefit

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 2-3 years Surrender Value after 1 year form commencement. Guaranteed Surrender Value 60% of the premiums excluding premiums for additional benefits and extra 5-6 years 2 full years premium payment premiums. 30% of premiums excluding first year premium and the premium 7 and above 3 full years premium payment
23

for

additional

benefits and extra premiums. 30% of premiums excluding

the first year premium and the premium for additional benefits premiums. and the extra

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. 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. 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

ii). Comprehensive Accident Protection These benefits provide comprehensive cover in case of an accident. It comprises of:

24

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 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.

25

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/halfyearly/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) 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 26

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 holders 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 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. 27

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

28

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 childs 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 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 29

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 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).

30

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

31

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 customers feelings of pleasure of disappointment resulting from comparing a products 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.

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 dont 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. 32

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 salespersons 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 customer satisfaction. The company and agents 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

33

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 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 34

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

CHAPTER-3

35

DATA ANALYSIS AND INTERPRETATION

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 Yes No. Of respondent 36 36 Percentage 72

No Total Inference:

14 50

28 100

Out of the 50 people interviewed nearly 72% people have taken insurance policy. Figure no.3.2.1

2. People having insurance policies of different company. Table No: 3.1.2(% of insured population in various companies) Insurance policy of different company LIC Bajaj Allianz ICICI pru TATA AIG Birla sun life Aviva Max Newyork Total 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 37 No. Of respondent 12 10 6 1 2 2 3 36 Percentage 32 28 17 3 6 6 8 100

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 3. Insurance policies as an investment alternative option. Table No: 3.1.3 Purpose of insurance Investment alternative Security option Total 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 No. Of respondent 11 39 50 Percentage 22 78 100

4. Investment preferences in various alternatives. Table No: 3.1.4 Investment Alternatives Shares Mutual funds Life insurance No. Of respondent 16 12 18 Percentage 22 78 100

38

Government bonds 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

5. Criteria for selecting an insurance company. Table No: 3.1.5 Various option Security Time span Market share Return All of above Total 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 No. Of respondent 15 5 2 8 20 50 Percentage 30 10 4 16 40 100

39

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

B. Data analysis for perception of people towards

insurance
1. Objective of investment in life insurance. Table no: 3.1.7 Objective of investment Protection Tax benefit Return Total Inference: No. Of respondents 29 13 8 50 Percentage 58 26 16 100

40

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 st m e nt

16%

Prot ec t ion Tax Benef it 58% Ret urn

26%

2. For respondents who perceive protection as their investment objective. Table no: 3.1.8 Type of plan Traditional plan Unit linked plan Term plan Health plan Pension plan Total 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. No. Of respondents 2 14 6 4 3 29 percentage 7 48 21 14 10 100

41

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
Pre fe r r e d Pla n
Tradit ional Plan Unit Linked Inc ent iv e Plan Term Plan 48% Healt h Plan Pension Plan

14%

10%

7%

21%

3. Time frame preferred (investment objective: protection) Table no: 3.1.9 Time frame 3-5 years 10-20 years 20 years and above Total 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. No. Of respondents 9 18 2 29 Percentage 31 62 7 100

42

Figure no: 3.2.9

Pr e fe r re d T ime Fr a me
3- 5 y ears 31% 10- 20 y ears 62% 20 y ears and abov e

7%

43

4. Percentage of total investment in life insurance (investment objective: protection) Table no. 3.1.10 % of investment in life insurance No. Of respondents Less than 10% 7 10-20% 16 20-40% 5 40-60% 1 60-80% 0 80-100% 0 Total 29 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 1020% 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

Percentage 24 56 17 3 0 0 100

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: 1. Type of plan preferred (investment objective: tax benefit) 44

Table no: 3.1.11 Type of plan Traditional plan Unit linked plan Term plan Health plan Pension plan Total 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 Term Plan 53% Healt h Plan Pension Plan

No. Of respondents 0 7 4 1 1 13

Percentage 0 53 31 8 8 100

8% 8%

31%

2. Time frame preferred (investment objective: tax benefit) Table no: 3.1.12 Time frame 3-5 years 10-20 years 20 years and above No. Of respondents 4 8 1 45 Percentage 31 61 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
Pre f e r r e d T ime Fr a me
3- 5 y ears 31% 10- 20 y ears 61% 20 y ears and abov e

8%

46

3. Percentage of total investment in life insurance (investment objective: tax benefit) Table no: 3.1.13 % of investment in life insurance Less than 10% 10-20% 20-40% 40-60% 60-80% 80-100% Total No. Of respondents 3 8 2 0 0 0 13 Percentage 23 62 15 0 0 0 100

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)

47

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

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 3-5 years 10-20 years 20 years and above Total Inference: 48 No. Of respondents 4 4 0 8 Percentage 50 50 0 100

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

49

3. Percentage of total investment in life insurance (investment objective : return). Table no: 3.1.16 % of investment in life insurance Less than 10% 10-20% 20-40% 40-60% 60-80% 80-100% Total No. Of respondents 1 4 3 0 0 0 8 Percentage 13 49 38 0 0 0 100

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 stm e nt in Lif e I nsur a nce

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

50

4.) Preferred Life Insurance Company. Table no: 3.1.17 Life insurance company Lic Icici prudential Max new York life Bajaj Allianz Hdfc std. Life Reliance life insurance Others Total No Of respondents 19 9 1 3 5 9 4 50 Percentage 38 18 2 6 10 18 8 100

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

8% 18%

51

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 Brand name Services Reference Time constraint High returns Product satisfaction Total Inference: The above table shows the various reasons why people invested in Bajaj Allianzs 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 products 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 2.) The plan follows the feature that is communicated. Table no: 3.1.19 Feature followed Yes No Total 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 52 No. Of respondents 40 10 50 Percentage 80 20 100 No. Of respondents 5 5 20 0 10 10 50 Percentage 10 10 40 0 20 20 100

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

53

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 Yes No Total 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 Allianzs services and 30% are not satisfied with Bajaj Allianzs services. The reason for dissatisfaction was lack of proper attention given to customers. Figure no: 3.2.21 No. Of respondents 35 15 50 Percentage 70 30 100

54

Se r vice sa t isf a ct ion

30% Yes No 70%

Personal details chart 5. Age distribution of respondents Table no: 3.1.22 Age 21-35 36-50 51-65 Above 66 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 55 No. Of respondents 39 8 3 0 Percentage 78 16 6 100

Age Dist r ibut ion of Re sponde nt s

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

16%

6. Occupation distribution of respondents Table no: 3.1.23 Occupation Profession Businessman Govt. Servant Employee Others Total No Of respondents 3 12 1 29 5 50 Percentage 6 24 2 58 10 100 Out of 50

Inference: The above table shows the occupation distribution of respondents.

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

56

Occupa t ion Dist r ibut ion of Re sponde nt s

10% 6% 24% 2% Prof ession Businessman Gov t . Serv ant 58% Employ ee Ot hers

7. Yearly income distribution of respondents. Table no: 3.1.24 Yearly income Less than 1 lac 1 to 2 lacs 2 to 3 lacs 3 to 4 lacs Total Inference 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 Percentage. Of respondents 9 29 9 3 50 Percentage 18 58 18 18 100

57

I ncome Dist ribut ion of Re sponde nts

6% 18%

18%

Less t han 1 lac 1 t o 2 lac s 2 t o 3 lac s

58%

3 t o 4 lac s

1) Chi-Square Test

Frequencies

income group Observed N less than 1lakh 1-2 lakh 2-3 lakh 3-4 lakh Total 9 29 9 3 50 Expected N 12.5 12.5 12.5 12.5 Residual -3.5 16.5 -3.5 -9.5

58

rank the following as per your preference to investment in a financial year: Observed N Shares mutual fund life insurance government bonds Total 18 16 13 3 50 Expected N 12.5 12.5 12.5 12.5 Residual 5.5 3.5 .5 -9.5

Test Statistics rank the following as per your preference to investment in income group Chi-Square Df Asymp. Sig. 30.960a 3 .000 a financial year: 10.640a 3 .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 Alternative hypothesis: H1 There are no significant differences between the factors Calculated value:-20 Expected value =12.5

59

2. Chi-Square Test

Frequencies

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

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

60

Test Statistics age group Chi-Square Df Asymp. Sig. 45.640a 2 .000 objective of investment 14.440a 2 .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

61

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. A) For respondents who perceive protection as their investment objective: 62

 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. 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 63

 Out of 8 respondents, 49% invest around 10-20%, 38% invest around 2040% 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% hdfc standard life insurance, 8% kotak life insurance and new prefer reliance life insurance, 10% prefer have chosen others category which include life.

India insurance, 6% prefer Bajaj Allianz and 2% prefer max New York

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 products 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 Allianzs services and 30% are not satisfied with Bajaj Allianzs services. The reason for dissatisfaction was lack of proper attention given to customers.

4.2 SUGGESTIONS

Among all the existing life insurance Companies in India Bajaj Allianz Product have an edge. 64

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. 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.

1.3 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 65

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.

ANNEXURES QUESTIONNAIRE GENERAL

66

NAME : ADDRESS: .. CONTACT NUMBER:.. MATIAL STATUS : 1. Age : 21-35 2.Occupation : Profession Employee businessman govt. Servant others __________ SINGLE 36-50 MARRIED 51-65 above 66

3. Yearly income : Less than 1 lac 3 to 4 lacs 1 to 2 lacs 4 lacs or more If yes, then of which 2 to 3 lacs

4. Do you have a life insurance policy? company/companies? yes no

5. Do you see insurance policies as an investment alternative or a option? yes no

security

6. Please rank the following as per your preference to investment in a financial year: 1.shares 3.life insurance scheme? 1.security 3.market share 67 2.time span 4. Return 5.all of the above 2. Mutual fund 4.government bonds

7. What is your criteria/criterion to select a particular insurance company and a

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 Childrens education/ marriage 4. Rank the parameters you would prefer before making investment in life insurance? Tax benefit return protection

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

6. For what time frame would you prefer to invest? 3-5 years 10-20 years 68 20 years and above

7. Indicate the approximate % of total investment in life insurance Less than 10% 40-60% 10-20% 60-80% 20-40% 80-100%

8. Indicate your preferred life insurance company LIC Bajaj Allianz Tata AIG ICICI Prudential met life Max New York life HDFC std. Life

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 Allianzs plan? Brand name Time constraint services high returns reference product satisfaction

3. What is the main feature that has made you invest in the plan? _____________________________________________________ 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 Allianzs services ? yes no 69

If no, why ? ___________________________________________

70

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 Publisher. Business Research Methods Cengage Learning

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

71