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A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan
A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan
A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan
The project report on A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan in Hubli city. I through under took the project by the help of BAJAJ ALLIANZ Life Insurance Ltd. Sales team manager Chandru. A.Kallanagoudar Objectives: 1. To study the awareness level of Bajaj Allianz ULIPs with view to recommend measure to improve market share. 2. To find vital communication media. 3. To know the factors that influence investors while taking investment decisions. 4. To find potential market for ULIPs. Scope of the study: The research was undertaken to gather information from the respondent to know exactly how many people aware of ULIPs in Hubli city and the study is restricted within the city. One of the fast growing city in Karnataka and represents huge market for scope with more than 90 lakhs people. Hubli is one of the commercial areas .
A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan
Not single work is exception to the limitations every work has got its own limitations, so due to time constraint my study confines only to Hubli city and it is not possible to make extensive study. It is assumed that the sample selected represents entire population.
RESEARCH METHODOLOGY
Data source
: :
Personal interview
A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan
Sample unit
: :
INDEX
PARTICULAR Page no
Chapter-I
1) Introduction 2) Literature Review 3) Statement of the problem 4) Purpose of the study 5) Scope of the study 6) Objectives of study
09 18 19 19 26 27
Chapter-II
1) Organization Profile 2) Organization Chart 29 62 5
A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan
Chapter-III
1) Result & discussion with graphs & charts. 68 2) Summary, conclusion, & a proposed action plan with resource requirements and projected benefits to the organization. 84
Chapter-IV
1) Appendix Questionnaire Weekly Reports 2) Bibliography 92 88
A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan
A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan
Industry overview
A brief history of the Insurance sector The business of life insurance in India in its existing form started in India in the year: 1818 With the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both
A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan
For years thereafter, insurance remained a monopoly of the public sector. It was only after seven years of deliberation and debate - after the RN Malhotra Committee report of 1994 became the first serious document calling for the re-opening up of the insurance sector to private players -that the sector was finally opened up to private players in 2001.
The Insurance Regulatory & Development Authority, an autonomous insurance regulator set up in 2000, has extensive powers to oversee the insurance business and regulate in a manner that will safeguard the A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan 9
Due to immense growth in the insurance sectors the regulations were introduced. In 1993,Malhotra Committee headed by former Finance Secretary and RBI Governor was formed to evaluate the Indian insurance industry and give its recommendations. After this committee the regulatory body for insurance sector was formed with the name of IRDA.
A study on customer awareness to enhance market share of Bajaj 10 Allianz Unit Link Insurance Plan
Section 14 IRDA Act, 1999 lays down the duties, powers and functions of IRDA 1. The Authority has the duty to regulate, promote and ensure orderly growth of the Insurance business and re- insurance business. 2. This Include a) Issue to the applicant a certificate of registration, renew, modify, Withdraw, suspend or cancel such registration. b) Protection of interests of the policy holders in matter concerning assigning of policy, nomination by policyholders, insurable interest, settlement of insurance claim, surrender value of policy and condition of contracts of insurance. c) Specifying the code of conduct and practical training for intermediary or insurance intermediaries and agents 3. Specifying the code of conduct for surveyors and loss assessors.
4. Promoting efficiency in the conduct of insurance business.
5. Promoting and regulating professional organization connected with insurance and reinsurance business. 6. Levying this act. 7. Calling from information from, undertaking inspection of, fees and other charges for carrying out the purposes of
conducting enquiries and investigation including audit of the insurers, intermediaries and other organization connected with the A study on customer awareness to enhance market share of Bajaj 11 Allianz Unit Link Insurance Plan
or insurance intermediaries. 13. 14. Supervising the functioning of the Tariff Advisory Committee. Specifying the % of Premium, Income of the insurer to finance
schemes for promoting and regulating professional organizations 15. Specifying the % of Life Insurance Business and general
The IRDA since its incorporation as a statutory body has been framing Regulations and registering the private sector insurance companies. IRDA being an Independent statutory body has put a framework of globally compatible regulations.
A study on customer awareness to enhance market share of Bajaj 12 Allianz Unit Link Insurance Plan
INSURANCE COMPANIES: In the private sector 12 life insurance and 6 general insurance companies
have been registered.
LIFE INSURERS
An Act of Parliament, viz., Life Insurance Corporation Act, formed Life Insurance Corporation of India (LIC) in September 1956, with capital contribution from the Government of India.
The objective was: to conduct the business with the utmost economy, in a spirit of trusteeship; to charge premium no higher than warranted by A study on customer awareness to enhance market share of Bajaj 13 Allianz Unit Link Insurance Plan
Since nationalization, LIC has built up a vast network of 2,048 branches, 100 divisions and 7 zonal offices spread over the country. The Life Insurance Corporation of India also transacts business abroad and has offices in Fiji, Mauritius and United Kingdom.
PRIVATISATION: There were various reasons given by the government to nationalize the insurance sector was to take insurance to the mass, facilitate the flow of long term funds (which insurance companies, by virtue of the business they are in, have ready access to) into development of infrastructure in the country, and safe guard the interest of the policy holders. Towards this end, state insurers did develop the insurance sector, though most A study on customer awareness to enhance market share of Bajaj 14 Allianz Unit Link Insurance Plan
A study on customer awareness to enhance market share of Bajaj 15 Allianz Unit Link Insurance Plan
LIFE INSURANCE COMPANIES IN INDIA & THEIR MARKET SHARE (as per march-06):
INDIAN PROMOTER Bajaj Auto FOREIGN PROMOTER Allianz AG Germany Bajaj Allianz Life Insurance ICICI Prudential USA ICICI Prudential Life Insurance HDFC Standard Life UK HDFC Standard Life Insurance SBI Cardif (arm of BNP paribas) Aditya Birla Group TATA USA Sun Life Canada Birla Sun Life Insurance birlasunlife.co m tata_aig.com 1.3 1.9 Canada SBI Life Insurance sbilife.co.in 2.3 hdfcinsurance .com 2.9 bajajallianz.co .in iciciprulife.co m 7.35 COUNTRY INSURER WEBSITE MARKET SHARE 7.56
A study on customer awareness to enhance market share of Bajaj 16 Allianz Unit Link Insurance Plan
A study on customer awareness to enhance market share of Bajaj 17 Allianz Unit Link Insurance Plan
Literature Review: The project report on A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan in Hubli. I through under took the project by the help of BAJAJ ALLIANZ Life Insurance Ltd. Sales team manager Chandru. A.Kallanagoudar
Body of the Report: Primary data was collected by administration questionnaire of 100 customers. The questionnaire was specially framed to meet the requirement of the survey and the following details. Direct contact was made with the respondents through random sample to collect the needful information with reference to our objective as per to meet the survey requirement.
Interview technique:
A study on customer awareness to enhance market share of Bajaj 18 Allianz Unit Link Insurance Plan
Conclusion & Recommendation: Analysis was based on the result of the research conducted and the recommendations are based on the analysis.
Limitation : The major limitation of the project was time frame. STATEMENT OF THE PROBLEM A study on customer awareness to enhance market share of Bajaj Allianz Unit Linked Insurance Products.
Management Problem: In the project the management problem is the ULIPs is new in the market & the lot of people are dont know about the ULIPs the management wants the improve market share of ULIPs.
A study on customer awareness to enhance market share of Bajaj 19 Allianz Unit Link Insurance Plan
1.Insurace cover plus savings: ULIP serve the purpose of providing life insurance combined with savings at market-linked returns. To that extent, ULIPs can be termed as a two-in-one plan in terms of giving an individual the twin benefits of life insurance plus savings. This is unlike comparable instruments like a mutual fund for instance, which does not offer a life cover.
2.Multiple investment options: ULIP offer a lot more variety than traditional life insurance plans. So there are multiple options at the individual's disposal. . ULIPs generally come in three broad variants: Aggressive ULIPs (which can typically invest 80%-100% in equities, balance in debt)
A study on customer awareness to enhance market share of Bajaj 20 Allianz Unit Link Insurance Plan
Although this is how the ULIP options are generally designed, the exact debt/equity allocations may vary across insurance companies. Individuals can opt for a variant based on their risk profile. For example, a 30-Yr old individual looking at buying a life insurance plan that also helps him build a corpus for retirement can consider investing in the Balanced or even the Aggressive ULIP. Likewise, a risk-averse individual who is not comfortable with a high equity allocation can opt for the Conservative ULIP.
3.Flexibility Mutual Funds also offer hybrid/balanced schemes that allow an individual to select a plan according to his risk profile. The difference lies in the flexibility that ULIPs afford the individual. Individuals can switch between the ULIP variants outlined above to capitalize on investment opportunities across the equity and debt markets. Some insurance companies allow a certain number of `free' switches. This is an important feature that allows the informed individual/investor to benefit from the vagaries of stock/debt markets. For instance, when stock markets were on the brink of 7,000 points (Sensex), the informed investor could have shifted his assets from an Aggressive ULIP to a low-risk Conservative ULIP.
A study on customer awareness to enhance market share of Bajaj 21 Allianz Unit Link Insurance Plan
4. Works like an SIP: Rupee cost-averaging is another important benefit associated with ULIPs. With an SIP, individuals invest their monies regularly over time intervals of a month/quarter and don't have to worry about `timing' the stock markets. As a matter of fact, even the annual premium in a ULIP works on the rupee cost-averaging principle. An added benefit with ULIPs is that individuals can also invest a one-time amount in the ULIP either to benefit from opportunities in the stock markets or if they have an investible surplus in a particular year that they wish to put aside for the future.
The chart below shows how ULIP can meet multiple needs at different life stages.
Integrated Financial Planning Starting a job, Single individual Recently married, no kids Married, with kids
A study on customer awareness to enhance market share of Bajaj 22 Allianz Unit Link Insurance Plan
protection, still protection, still high on asset creation high on asset creation but steadier options, increase savings for child
Increase death Increase death benefit, choose benefit, choose growth/balanc balanced option for asset creation. Choose riders for enhanced protection. Use top-ups to increase your accumulation
A study on customer awareness to enhance market share of Bajaj 23 Allianz Unit Link Insurance Plan
Kids going to school, college Higher Protection, high on asset creation but steadier options, liquidity for education expenses Withdrawal from the account for the education expenses of the child
Higher studies for child, marriage Lump sum money for education, marriage. Facility to stop premium for 2-3 yrs for these extra expenses
Children independent, nearing the golden years Safe accumulation for the golden yrs.Considerably lower life insurance as the dependencies have decreased
Withdrawal from the account for higher education/marriage expenses of the child. Premium holiday-to stop premium for a period
Decrease the death benefit-reduce it to the minimum possible. Choose the income investment option. Top-ups form the accumulation (with
without lapsing the policy reduced expenses) for the golden yrs cash accumulation
A study on customer awareness to enhance market share of Bajaj 24 Allianz Unit Link Insurance Plan
Limitation:
1. It is prudent to make equity-oriented investments based on an established track record of at least three years over different market cycles. ULIPs may not fulfill this criterion in near future.
2. Insurance and savings are two different goals and it is better to address them separately rather than bundle them into a single product. A combination of a term plan and a mutual fund could give better results over the long term.
3.The free hand given to ULIPs might prove risky if the timing of exit happens to coincide with a bearish market phase, because of the inherently high equity component of these schemes.
A study on customer awareness to enhance market share of Bajaj 25 Allianz Unit Link Insurance Plan
The charges are higher for a linked plan than a non-linked plan, as the former require lot more servicing than the latter, such as regular disclosure of investments, switches, re-direction of premiums, withdrawals, and so on. Insurance companies have the discretion to structure their expenses structure whereas a mutual fund does not have that luxury. The expense ratios in their case cannot exceed 2.5 per cent for an equity plan and 2.25 per cent for a debt plan respectively. The lack of regulation on the expense front works to the detriment of investors in ULIPs.
5. The front-loading of charges does have an impact on overall returns as investors lose out on the compounding benefit. Insurance companies explain that charges get evened out over a long term. Thus investors are forced to stay with the plan for a longer tenure to even out the effect of initial charges as the shorter the tenure, the lower will be the investor real A study on customer awareness to enhance market share of Bajaj 26 Allianz Unit Link Insurance Plan
6. In effect, when investor lock in their money in a ULIP, despite the promise of flexibility and liquidity, investor will stuck with one fund management style. This is all the more reason to look for an established track record before committing investor hard-earned money.
7. Investor life cover charges would depend on the accumulation in investor investment account. As accumulation increases, the amount at risk for the insurance company decreases. However, with increasing age, the cost per Rs 1,000 sum assured increases, effectively increasing policy holder overall insurance costs.
8. It would deal with the fact that expenses on ULIPs were on the higher side in the initial years and therefore; the exit option would hardly prove to be beneficial for the investors.
9. ULIP face tough competition from mutual funds, which are short-term instruments. Hence, a liquidity option makes ULIPs as attractive but because of the high front-end charges on policy, investor may not be left with much to withdraw at the end of 3 years. A study on customer awareness to enhance market share of Bajaj 27 Allianz Unit Link Insurance Plan
Scope of the study: The research was undertaken to gather information from the respondent to know exactly how many people aware of ULIPs in Hubli city and the study is restricted within the city.
The reason for confining the scope of the research in Hubli were. 2) One of the fast growing city in Karnataka and represents huge market for scope with more than 90 lakhs people. 3) Hubli is one of the commercial areas . 4) It is a place where the small and large industries are located .with the more increase population and there style more people are conscious about the their lives.
Objectives: 1. To study the awareness level of Bajaj Allianz ULIPs with view to recommend measure to improve market share. 2. To find vital communication media.
A study on customer awareness to enhance market share of Bajaj 28 Allianz Unit Link Insurance Plan
A study on customer awareness to enhance market share of Bajaj 29 Allianz Unit Link Insurance Plan
1. ORGANISATION PROFILE:
Bajaj Group
A STRONG INDIAN BRAND- HAMARA BAJAJ One of the Largest 2 & 3 wheeler manufacturer in the world . 21 million + vehicles on the roads across the globe managing funds of over Rs5200crore
A study on customer awareness to enhance market share of Bajaj 30 Allianz Unit Link Insurance Plan
Allianz Group
Allianz Group is one of the world's leading insurers and financial services providers Founded in 1890 in Berlin,
Allianz is one of the leading global insurance companies headquartered in Munich, Germany . A study on customer awareness to enhance market share of Bajaj 31 Allianz Unit Link Insurance Plan
World largest insurance company by revenue 520353cr worldwide 2nd gross written premium 477930cr 3rd largest assets under management(AUM) and largest insurance companies AUM of Rs9594200cr. 11th largest corporation in the world
50% global business from life insurance close to 60 million lives insured globally. Allianz shares are treated at the 5 leading international stock exchanges: Frankfurt. London . A study on customer awareness to enhance market share of Bajaj 32 Allianz Unit Link Insurance Plan
A study on customer awareness to enhance market share of Bajaj 33 Allianz Unit Link Insurance Plan
A study on customer awareness to enhance market share of Bajaj 34 Allianz Unit Link Insurance Plan
Bajaj Allianz life Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany.
No.1 Pvt Life Insurer FY 2006-06. Leading by Rs. 78 Cr. No.1 Pvt Life Insurer in Retail Business. Leading by Rs. 339 Cr.
Whopping growth of 216% for the FY 2005-06 Have sold over 13,00,000 policies to satisfied customers
A study on customer awareness to enhance market share of Bajaj 35 Allianz Unit Link Insurance Plan
Assets under management Rs 3,324 cr. Shareholder capital base of Rs 500 cr.
Company punch line A study on customer awareness to enhance market share of Bajaj 36 Allianz Unit Link Insurance Plan
Mission: As a responsible customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money.
Why Bajaj Allianz Life Insurance: The Bajaj Allianz Difference Business strategy aligned to clients needs and trends in Indian and global economy / industry. Internationally experienced core team, majority with local background. Fast, decentralized decision-making. Long-term commitment to market and clients.
Shareholder in Bajaj Allianz life insurance company: A study on customer awareness to enhance market share of Bajaj 37 Allianz Unit Link Insurance Plan
CHANNEL PARTNERS
Bancassurance Vantage
A study on customer awareness to enhance market share of Bajaj 38 Allianz Unit Link Insurance Plan
INTRODUCTION TO ULIP
ULIP came into play in the 1960s and became very popular in Western Europe and Americas. The reason that is attributed to the wide spread popularity of ULIP is because of the transparency and the flexibility which it offers. As times progressed the plans were also successfully mapped along with life insurance need to retirement planning. In todays times, ULIP provides solutions for insurance planning, financial needs, financial planning for childrens future and retirement planning. Features of ULIP distinguish itself through the multiple benefits that it provides to the consumer. The plan is a one-stop solution providing: Life protection Investment and Savings Flexibility- Adjustable Life Cover- Investment Options Transparency Options to take additional cover against- Death due to accident- Disability- Critical Illness- Surgeries Liquidity.
ULIP distinguishes itself through the multiple benefits it provides to the policyholders. These plans are designed with a view to help the customers to utilize the market opportunities by investing in the share A study on customer awareness to enhance market share of Bajaj 39 Allianz Unit Link Insurance Plan
Meaning
It is a plan, which provides Life Insurance, and here policy value at any time varies according to the value of the underlying asset at that time. It is a plan that provides the client with the benefit of protection and flexibility.
An ULIP plan works as a one-stop advantage for the policyholder. It gives the policyholder a wholesome advantage of integrated financial planning.
STRUCTURE OF ULIP: -
ULIP
CONTRIBUTION
LESS- CHARGES
A study on INVESTMENT customer awareness to enhance market share of Bajaj 40 LIFE COVER AllianzAS Unit Link Insurance Plan REPRESENTED NAV
NAV CONCEPT
It exhibits the value (or the price) that one has for his investment or one will have to pay for his investment.
As, the investment made by different people are different, the value (or the price) is the expressed in per unit terms. It helps in knowing the value of Insurance at any point of time.
UNIT Value = (Total market Value of all assets invested less expenses related to Investment management / Total no. of outstanding units)
Factors affecting NAV: Market Value of investment portfolio, Number of Units, Expenses and Investment Income. A study on customer awareness to enhance market share of Bajaj 41 Allianz Unit Link Insurance Plan
Ex: If 2,00,000 /- has been accumulated in the equity fund and the no. of units issued is 10,000 /- then the NAV of the equity fund is: -
2,00,000 / 10,000 = Rs 20 / -
As the equity market develop the fund grows from 2,00,000 / - to 220,000/Now the NAV = 2,20,000 / 10,000 = Rs 22 / If among these 10,000 units the policyholder has 5000 units then the value of investment as of now is Rs 1,10,000. Thus a unit linked plan actually tells, what is the value of the fund .BASIC FEATURES OF ULIP
1. Life protection 2. Investment and savings 3. Flexibility 4. Transparency 5. Added Benefits a) Death due to accident b) Any kind of disability c) Critical illness d) Surgeries 6. Liquidity 7. Tax Planning 8. Adjustable Life Cover 9. - Investment Options
A study on customer awareness to enhance market share of Bajaj 42 Allianz Unit Link Insurance Plan
1) LIFE PROTECTION
A study on customer awareness to enhance market share of Bajaj 43 Allianz Unit Link Insurance Plan
The graph shows the various needs of the customer at different point of time, individuals needs differ and his need for life protection fluctuates. ULIP satisfies the varying needs of the customer providing him with more and more protection as and
when he requires, by allowing the policyholder to increase or decrease the death benefit. It is usually multiple of the contribution being paid, which ensure that the contribution is adequate enough to provide life protection. And is also able to maintain a sem balance between protection and savings.
ULIP provides the client with option of investing as per his risk appetite and gets returns accordingly. These various options available for an individual to make investment in comparatively high risks instruments and get high returns. Below shown is a graph illustrating the various investment options for a client.
A study on customer awareness to enhance market share of Bajaj 44 Allianz Unit Link Insurance Plan
Risk
Example 1: Here are four types of funds in which a client can invest. In each case the risk goes on increasing with the type of fund. The client has an option to shift as the risk and return orientation changes (Switch).
3) FLEXIBILITY
The client has an option to choose the amount of sum assured and the premium amount he is capable of paying. In case of certain plans of ULIP the client is allowed to choose the premium.
A study on customer awareness to enhance market share of Bajaj 45 Allianz Unit Link Insurance Plan
As life cycle changes of a client he passes through various risks and responsibilities. He can increase or decrease the death benefit accordingly.
If the client is unable to pay the same amount of premium he can decrease the death benefit with certain conditions applying according to the particular plans. c) Premium holiday
After paying the premium regularly for 3 years from the starting date of the policy the client can take a premium holiday if he is unable to pay a particular premium due. On returning from the premium holiday the client can pay the previous premiums if he desires or continue from that date. d) Choice of fund.
A study on customer awareness to enhance market share of Bajaj 46 Allianz Unit Link Insurance Plan
Maximiser High growth and High (Growth) capital appreciation over a long terms
Balancer
(balanced) appreciation and study over terms Preserver Equal balance of Low capital appreciation and study returns over a long term Protector (Income) Study a returns long
instrument:
e) Switch between the funds The policyholder has a choice two reallocate the premium paid by him on every premium policy anniversary. He can switch between the above four funds to avail the advantages A study on customer awareness to enhance market share of Bajaj 47 Allianz Unit Link Insurance Plan
Some times the client may have surplus amount after his expenses. ULIP allows him to save that amount by investing in the insurance he can avail the benefit of top up by paying extra premium, which will be invested in the share market by the insurer company. The client gets expert fund
management. The policyholder is allowed to do as many top ups in the tenure of plan.
g) Premium redirection
The policyholder is allowed to reallocate the premium paid each time to different fund structure. Thus whenever the premium is due (As per the premium payment mode), he can redirect the current premium into different asset allocations than the previous time. This helps the policyholder to optimize the funds in accordance to market with out using the switch option.
e) Assignment option
The policyholder can assign the policy to any of the nominees or any bank in case he has taken a loan on the title of the policy. Unfortunately if something happens to the policyholder then the insurer will repay the loan taken by the client to the extent of premium paid.
4) Transparency A study on customer awareness to enhance market share of Bajaj 48 Allianz Unit Link Insurance Plan
ULIP products are transparent in terms of, the policyholder is aware of where his contribution is being allocated. The policyholder is aware of the various charges charged to him. The Various charges of the ULIP are: a) Contribution related Charges- Running expenses of the policy b) Administrative Charges- Issuance cost, distribution costs etc c) Fund Management Fee- cost of being and selling the various financial instruments for various funds. d) Mortality Charges: cost of providing life protection. e) Rider charges: cost of other protection charges. f) Surrender charges: cost to cover initial expenses. g) Bid offer charges: difference between the offer price of units and the selling price i.e. bid price of units. It covers the cost of selling the policy. h) Transaction specific charges: cost of changing funds, toping up the investment component or withdrawals Daily NAV: A feature that lets us know on a daily bases, how the money in insurance plan is growing.
5) ADDED BENEFITS
To get extra protection ULIP provides the advantage of rider attachments. a. Death due to accident (ADBR) b. Disability (ABR) c. Critical Illness (CIBR) d. Surgeries (MSAR) (Now discontinued) 6) LIQUIDITY
policyholder the
A study on customer awareness to enhance market share of Bajaj 49 Allianz Unit Link Insurance Plan
7) TAX PLANNING
This is another feature of ULIP that motives the policyholder to invest in the insurance plans. They usually invest to avail the tax benefit. Regulation in India allows tax benefits in the contribution paid under section 88, contribution paid for health riders critical illness and major surgical is allowed tax benefits under section 80D, as per the prevailing tax laws.
Maturity benefits are tax free under section 10(10) D, provided life come is at least 5 times of the annual contribution paid. Death benefit is tax free under section 10(10) d. With so many tax benefits available in one instrument ULIP tends to be an intelligent tax-planning tool. Working of a ULIP Plan Life rime regular Premium Allocated Part of the Premium Premium towards A study on customer awareness to enhance market share of Bajaj 50 Allianz Unit Link Insurance Plan This goes Allotment of Insurance to the
For Example A client put in regular contribution of Rs.20, 000 /-. From this amount a % is deducted as contribution. Therefore if the contribution related expense is 40% - Rs.8000/- will be deducted as contribution charges. The amount that is now available is Rs.20000-8000=12000/-
Now, if the client who is available is aged 30 years were to take a life cover of 500,000/- then mortality (1.50/- per thousand at the age of 30) charge of 750 /- will be deducted. This amount will provide life cover to the policy. The remaining amount of 11250/- will be invested in any one of them or all of them.
The Investment is shown in terms of units. Thus if client invests in debt fund and the NAV of the debt fund is Rs. 15/-(market price) then the no. of units that the client will get is 11,250/15=750. For this
A study on customer awareness to enhance market share of Bajaj 51 Allianz Unit Link Insurance Plan
Are ULIPs similar to mutual funds?. In structure, yes; in objective, no. Because of the high first-year charges, mutual funds are a better option if you have a five-year horizon. But if you have a horizon of 10 years or more , then ULIPs have an edge. To explain this further a ULIP has high first year charges towards acquisition (including agents commissions). As a result, they find it difficult to outperform mutual funds in the five years. But in the long term, ULIP managers have advantages over mutual funds managers. Since policyholder premium come at regular intervals, investments can be planned out more evenly. Mutual fund managers cannot take a similar long term view because they have bulk investors who can move money in and out of schemes at short notice. Which is better, unit-linked or Traditional plan? The two strong arguments in favor of unit-linked plans are that the investor knows exactly what is happening to his money and two ,it allows the investor to choose the assets into which he wants his funds invested.
A study on customer awareness to enhance market share of Bajaj 52 Allianz Unit Link Insurance Plan
Why do insurers prefer ULIPs? A study on customer awareness to enhance market share of Bajaj 53 Allianz Unit Link Insurance Plan
one also believes that current market values (stock valuations ) are relatively low. So if you are opting for a plan that invests primarily in equity , the buzzing market could lead to windfall returns. However , should the buzz die down , investors could be left stung.
A study on customer awareness to enhance market share of Bajaj 55 Allianz Unit Link Insurance Plan
Allianz Bajaj launches its first unit linked policy. Allianz Bajaj Life Insurance Company has launched Unit Gain , the companys first unit linked policy. Unit Gain allows customers to combine the benefits of life insurance with higher investment returns from equity and debt markets. Unit Gain was launched with a choice of four funds to the customer- equity, debt, balanced and cash funds. The cash funds comes with the guarantee that the value of units in the fund will not go down. Unit Gain is one of the most flexible unit linked plans in the market, and allows the customer to change the sum assured during the term of the policy to match their changing life insurance requirements. Also the A study on customer awareness to enhance market share of Bajaj 56 Allianz Unit Link Insurance Plan
Bajaj Allianz ULIPS products: 1) Unit Gain Regular Premium: The Bajaj Allianz unit comes with a host of features to allow you to have the best of all words protection and investment with flexibility like never before. Some of the features of this plan are: Guaranteed death benefits. Choice of 6 investment funds with flexible investment management you can change funds at any time. Attractive investment alternative to fixed investment securities. Provision for full/partial withdrawal any time after 3 full years premiums are paid. Unmatched flexibility to match tour charging needs.
A study on customer awareness to enhance market share of Bajaj 57 Allianz Unit Link Insurance Plan
Age Group Y
0-30
31-35
36-40
41-45
46-55
56-60
125
105
75
55
30
20
Important details of Bajaj allianz unit gain RP plan Minimum age at entry: 0(risk commences at age 7, and ceases after age 70) Maximum age at entry :60 The minimum age at entry for all additional benefits is 18 years. The maximum age at entry for all additional benefits is 50 years.
A study on customer awareness to enhance market share of Bajaj 58 Allianz Unit Link Insurance Plan
Important details of the Bajaj allianz unit gain SP plan:Minimum age at entry :0(risk commences at age 7, and ceases after age 70) Maximum age at entry :67 Minimum single premium :Rs .25000. Minimum top-up :Rs 10000.
3) Unit Gain Plus Regular Plan: The Bajaj allianz unit gain plus RP comes with a host of features to allow you to have the best of all words protection and investment with flexibility like never before. Some of the key feature of this plan are A study on customer awareness to enhance market share of Bajaj 60 Allianz Unit Link Insurance Plan
How does the plan work? The premium paid are invested in a fund or funds of your choice (depending on the allocation rate) and units are allocated depending on the price of the units for the fund or funds. The insurance cover and administration charges are deducted through cancellation of units. The fund management charge is prices in the unit value. Minimum sum assured = 5 times the annual premium. Maximum sum assured = y times the annual premium where y will be as per the following table.
Age Group Y
0-30
31-35
36-40
41-45
46-55
56-60
125
90
60
40
20
15
A study on customer awareness to enhance market share of Bajaj 61 Allianz Unit Link Insurance Plan
4) Unit Gain Plus Single Premium Plan: The bajaj allianz unit gain plus Sp comes with a host of feature to allow you to have the best of all words protection and investment with flexibility like never before. Some of the key feature of this plan are Convenient single premium payment, with option to pay top-ups later. 98% of the single or top-ups are allocated. Guaranteed death benefit. Choice of five investment funds with flexible investment management you can change funds at any time. Attractive investment alternative to fixed interest securities. Unmatched flexibility to match your changing needs. Provision for full or partial withdrawal any time after the single premium is paid. A study on customer awareness to enhance market share of Bajaj 62 Allianz Unit Link Insurance Plan
How does the plan works ? 98% of the single premium is invested in a funds or funds of your choice and units allocated depending on the price of units for the fund or funds . The value of your policy is the total value of units that you hold in the fund or funds. The insurance cover and fund administration charges are deducted through cancellation of units. The funds management charge is priced in the unit value. Minimum assured =1.01 times the single premium. Maximum sum assured = y times the single premium where y will be as the following table. Age Group Y 45 35 20 10 5 1.5 0-30 31-35 36-40 41-45 46-60 61-69
Important details of the Bajaj Allianz Unit Gain Plus SP Plan Minimum age at entry :0(Risk commence at age 7,and ceases after age 70) Maximum age at entry :69 Minimum single premium :Rs. 25000. Minimum top-up :Rs .5000.
A study on customer awareness to enhance market share of Bajaj 63 Allianz Unit Link Insurance Plan
5)Unit Gain Life Pension plan: With Bajaj Allianz ,you can take control of your future and ensure a retirement you can look forward to. This plan has been be signed to take of your retirement and insurance needs, there by providing you with a comprehensive solution for life time. There are two packages choose from: 1. Unit gain life pension regular premium. 2. Unit gain life pension single premium. Defending on the amount of premium you want to pay, you choose sum assure as per the condition given below: 1. Minimum sum assured =5 times annual/1.01 times single premium. 2. maximum sum assured =y times the annual/single premium where y will be as per the following table:
A study on customer awareness to enhance market share of Bajaj 64 Allianz Unit Link Insurance Plan
How does the Bajaj Allianz Unit Gain Life Pension Plan Work? The premium paid are invested in funds of your choice (depending on the allocation rate) and unit are allocated depending on the price of unit for the fund or funds. The value of your policy is the total value of units that hold in the fund or funds. The insurance cover and administration charges are deducted through cancellation of units. The fund management charge is priced in the unit value. Important details of the Bajaj Allianz Unit Gain Life Pension Plan: Minimum Age of entry Deferment period Age at vesting 18 5 45 Maximum 65 40 70
A study on customer awareness to enhance market share of Bajaj 65 Allianz Unit Link Insurance Plan
6) Unit Gain Easy Pension Plan: With bajaj allianz , you can take control of your future and ensure a retirement you can look for word to. There are two packages to choose form: 1. Unit gain easy pension regular premium. 2. Unit gain easy pension single premium.
How does the Bajaj Allianz Unit Gain Easy Pension Plan works? The premium paid are invested in a fund/funds of your choice (depending on the allocation rate) and units are allocated depending on the price of units for fund/funds. The value of your policy is the total value of units that you hold in the fund/funds. The administration are deducted through cancellation of units. The fund management is priced in the units value.
Maximum 65 40 70
A study on customer awareness to enhance market share of Bajaj 66 Allianz Unit Link Insurance Plan
ORGANISATION CHART
2.ORGANISATION CHART Bajaj Allianz Life Bajaj Allianz Life Insurance Company
Insurance
Agency Channel
Bancassurance
A study on customer awareness to enhance market shareChannel of Bajaj 67 Allianz Unit Link Insurance Plan
Branches Standard Chartered Bank Group Employee Benefit
CHANNEL
BANC ASSURANCE
CORPORATE
ZONAL SENIOR customer awareness to enhance market share of Bajaj 68 A study on MANAGER Allianz Unit Link Insurance Plan
3. SAMPLING:
Sampling: we are taken random sample Sample size: 100 consumers Sample unit: collection of data was made from customer that is respondents
4. RESEARCH DESIGN:
A study on customer awareness to enhance market share of Bajaj 69 Allianz Unit Link Insurance Plan
5. DATA COLLECTION METHODS: a) Primary data : A structural interview schedule/ questionnaire was used as a tool for primary data collection from respondent. b) Secondary data: Books Journals, magazines and websites.
6.MEASURING TOOLS:
S/no Q1 1 D 2 C 3 D 4 C
Q2 H E G H
Q3 A D D D
Q4 A A A A
Q5 A A A A
Q6 A B C D
Q7 D B C C
Q8 E D D C
Q9 D B
A study on customer awareness to enhance market share of Bajaj 70 Allianz Unit Link Insurance Plan
A B A A A A C A A B B D A B B B B D C
A B C A E B C D C C C C C D C C D C B E
C C C B B B A B B B A A B D A D A C B B B C
C D C A A
A A A A A A B B D B B A C C B A A A
C D
D A
D E A
A B
B B A C
A D D A C
E E
B B E C
A A B A
A study on customer awareness to enhance market share of Bajaj 71 Allianz Unit Link Insurance Plan
A A A B B A B A A
D A C A A A A A A A A B C A C B B A A C C A A C A A A A
A A A A A B A B C
B B B A A A B
B A D D C B B
A C C E B D A
A B C B B C
A study on customer awareness to enhance market share of Bajaj 72 Allianz Unit Link Insurance Plan
A D D
B A B
A D D A D
E C
A study on customer awareness to enhance market share of Bajaj 73 Allianz Unit Link Insurance Plan
1.What is your ratio of saving of the total income? a) More then 60% c) 50% - 25% b) 60% - 50% d) Less then 25%
A study on customer awareness to enhance market share of Bajaj 74 Allianz Unit Link Insurance Plan
Interpretation: From the above graph it is clear that 9% of people saving more than 60%, 13% of people saving less than 60%, 31% of people saving less than 50%, 47% of people saving less than 25%.
2.Your saving consist of. a) Post office c) Shares e) Life insurance g) Mutual fund b) Bank F . D d) Land / Building f) Gold h) All the above
Post Office
10%
A study on customer awareness to enhance market share of Bajaj 75 Allianz Unit Link Insurance Plan
Interpretation: From the above graph it is clear that, 10% of people saving in post office, 20% of people savings in Bank FD, 8% of people savings in shares, 13% of people saving consist land and building, 23% of people savings in Life Insurance, 5% of people saving consist in gold,8% of people saving in Mutual Fund, 13% of people saving consist all the above option. A study on customer awareness to enhance market share of Bajaj 76 Allianz Unit Link Insurance Plan
3. What factor consist while making the policy. a) Returns c) Liquidity e) All the above
Returns safety Liquidity Risk cover All the above Total 20% 29% 8% 19% 24% 100
Interpretation:
From the above graph
of people wants safety,8% of people wants liquidity, 19% of people wants risk cover, 24% of people wants all the above option.
A study on customer awareness to enhance market share of Bajaj 77 Allianz Unit Link Insurance Plan
Yes No Total
Interpretation:
From the above graph
A study on customer awareness to enhance market share of Bajaj 78 Allianz Unit Link Insurance Plan
Yes No Total
Interpretation: Above graph 55% of respondents are aware of ULIP,45% of respondents are not aware of ULIP.
6. In which company you have invested your money? a) LIC b) Bajaj Allianz
A study on customer awareness to enhance market share of Bajaj 79 Allianz Unit Link Insurance Plan
Interpretation: Above graph shows 42% respondents invested their money in LIC, 17% in Bajaj Allianz,8% in ICICI prudential, 9% in others and 24% of respondents are not responded well.
A study on customer awareness to enhance market share of Bajaj 80 Allianz Unit Link Insurance Plan
7. How do you come to know ULIP? a) Friends c) Newspapers/Magazines e) Others . b) Agents d) Banks
A study on customer awareness to enhance market share of Bajaj 81 Allianz Unit Link Insurance Plan
8. Which plan you have taken? a) Endowment c) Term Plan e) All the above
Endowment Money Back Term Plan ULIP All the above BLANK Total 17% 29% 16% 8% 4% 27% 100%
A study on customer awareness to enhance market share of Bajaj 82 Allianz Unit Link Insurance Plan
Interpretation: The above graph shows that 17% of respondents have taken Endowment policy,29% of respondents have taken money back policy,16% of respondents have taken term plan,8% of respondents have taken ULIP,4% of respondents have taken others, 27% of respondents not taken.
A study on customer awareness to enhance market share of Bajaj 83 Allianz Unit Link Insurance Plan
Higher returns Life cover Liquidity All the above Blank Total
4% 1% 2% 2% 91% 100%
Interpretation: The above graph shows that 4% respondents wants Higher returns,1% liquidity, 2% life cover, 2% all the above and 91% of respondents are not responded well.
10. What is the premium you are paying per annum? A study on customer awareness to enhance market share of Bajaj 84 Allianz Unit Link Insurance Plan
b) 10000-25000 d) 50000-100000
Interpretation: The above graph shows that the 38% of respondents paying premium per annum less than 10,000, 17% respondents paying per annum between 10,000- 25,000, 11% respondents paying per annum between A study on customer awareness to enhance market share of Bajaj 85 Allianz Unit Link Insurance Plan
1. What will influence your Financial Planning? a) Discussion with Family Member b) Tax Consultant/ C. A
c) Insurance consultant /Agents d) Finance Magazines. e) Web site of insurance or Finance company. f) Any other Specify .
Discussion with FM Tax consultant/CA IC /Agents Finance Magazine Websites Others Total
A study on customer awareness to enhance market share of Bajaj 86 Allianz Unit Link Insurance Plan
Interpretation: The above graph factors influencing financial planning 47% influencing discussion with family members, 22% tax consultant/CA, 7% Insurance Consultant/ Agents,14% through finance magazines, 1% through web sites of insurance/ Finance Company,9%through others.
A study on customer awareness to enhance market share of Bajaj 87 Allianz Unit Link Insurance Plan
A B
52% 48%
Interpretation: The above graph 52% respondents are interested investing money on ULIPs in future, 48% respondents are not interested to invest money in ULIPs.
A study on customer awareness to enhance market share of Bajaj 88 Allianz Unit Link Insurance Plan
13.
If no why?
Interpretation:
A study on customer awareness to enhance market share of Bajaj 89 Allianz Unit Link Insurance Plan
As our research we found that 55% of people are aware of ULIPs and 45% of respondent are not aware of ULIPs so company has to give more advertisement about the ULIPs . Through Friends 17% of people are come to know about the ULIPs ,through Agents 18%, 15% through Newspaper / Magazine , 8% through Banks, Others 7% of respondent are come to know 35% of people are not aware of ULIPs so compare to all agents are playing important role & company has to increase more number of agents. 52% of respondent are interested to invest money in ULIPs and 48% of respondent are not interested to invest money in ULIPs so 52% is a potential customer so company can utilize that opportunity.
A study on customer awareness to enhance market share of Bajaj 90 Allianz Unit Link Insurance Plan
LIMITATIONS
The limitation of the project was that the study and the survey were conducted in Hubli city only, the analysis and
The time was not enough to study the vast and growing Life insurance sector in Hubli city
Conclusion :
From the over all project and market survey it is clear that Bajaj Allianz Life Insurance Co .Ltd is doing well but most of the people are not aware of ULIPs .
But in the present threading competition they should do more then the present efforts in the following fields.
A study on customer awareness to enhance market share of Bajaj 91 Allianz Unit Link Insurance Plan
Recommendations
Most of the respondents are not aware of Unit Linked Insurance Plan so company has to give more advertisement about the ULIPs. 45% of respondents are not aware, which should be increased by different medias like TV, Magazines, & News Paper.
The company has to provide proper training or marketing skills to improve the marketability of products. Complete information should be provided regularly to the advisor as well as to the investor.
Bajaj Allianz Co
schemes to meet the requirement of every investor Company has to conduct meeting of their agents periodically to access the results and progress of the agents efforts.
A study on customer awareness to enhance market share of Bajaj 92 Allianz Unit Link Insurance Plan
A study on customer awareness to enhance market share of Bajaj 93 Allianz Unit Link Insurance Plan
Dear Sir / Madam, I am pleased to introduce myself as MBA student of PES&T s Belgaum Institute Of Management Studies (MBA) Belgaum . As a part of curriculum I have undertaken a research study on Customer Awareness Level To Improve Market Share Of ULIP. The information provided by you will be kept confidential & used for academic purpose only .
QUESTIONNAIRE
1.What is your ratio of saving of the total income? a) More then 60% c) 50% - 25% b) 60% - 50% d) Less then 25%
A study on customer awareness to enhance market share of Bajaj 94 Allianz Unit Link Insurance Plan
3. What factor consist while making the policy. a) Returns c) Liquidity e) All the above 4. Have you invested money in life insurance? a) Yes b) No b) Safety d) Risk cover
6. In which company you have invested your money? a) LIC c) ICICI b) Bajaj Allianz [ .
d) Others
7. How do you come to know ULIP? a) Friends c) Newspapers/Magazines e) Others . b) Agents d) Banks
A study on customer awareness to enhance market share of Bajaj 95 Allianz Unit Link Insurance Plan
8. Which plan you have taken? a) Endowment c) Term Plan e) Any others, Specify b) Money Back d) ULIP .
9. Why you have chosen ULIP? a) Higher Returns c) Life cover b) Liquidity d)All the above
10. What is the premium you are paying per annum? a) 10000 c) 25000-50000 b) 10000-25000 d) 50000-100000
11. What will influence your Financial Planning? a) Discussion with Family Member b) Tax Consultant/ C. A
c) Insurance consultant /Agents d) Finance Magazines. e) Web site of insurance or Finance company. f) Any other Specify .
12.In future are you interested investing money on ULIP? A study on customer awareness to enhance market share of Bajaj 96 Allianz Unit Link Insurance Plan
. :
THANK YOU
BIBLIOGRAPHY
Materials :
A study on customer awareness to enhance market share of Bajaj 98 Allianz Unit Link Insurance Plan
A study on customer awareness to enhance market share of Bajaj 99 Allianz Unit Link Insurance Plan