Bajaj Allance

Market Research on existing policies and study to device new policies in Insurance
1.1 - INTRODUCTION: Insurance was a concept developed to transfer persons risks to another party there by protecting the insured person in the event of any uncertainty. Life insurance is playing a vital role in mobilizing savings from the public, but the rate of mobilization is very low, compared to our population. After LPG, government requires long run funds for economic development, to avail this government invited private people to participate in this. It was flooded with applications from major international insurers & Indian corporate, each seeking to reach out to vast market. At present 14 insurance players are there in Indian market. 1.2 - OBJECTIVES: To identify interest of the peoples in private life insurance company. To study marketability of life insurance products. To study different life insurance policies and procedures and research the scope for newer types of policies. To study the customers interest and enlist their wants. To device policies leading to better catering of customers.
1.3 - NEED FOR THE STUDY: There is a considerable change in financial scenario of the nation due to LPG with regard to this insurance industry playing a very important role (in collecting savings from public). After LPG more number of private insurance companies have come to existence to compete with LIC. So there are 14 insurance companies facing stiff competition among them, in this view this study will help to develop suitable strategies and policies to improve insurance business.
Diksuchi Study Center, Davanagre.
1.4 - METHODOGY: Data base: The methodology entails systematic activities ranging from the source i.e., the primary data. The primary data is collected through a field survey method. Questionnaires are used; face-to-face interviews are carried out. Separate questionnaires were pre-tested with the acquaintance and friends and then final drafts were prepared. Both open ended and closed ended questionnaires were formed. Marketing officers of Insurance companies were interviewed personally and their opinions were recorded. Secondary data is also made use of viz., Economic Times, Business world, Business today magazines was of immense help. STATISTICAL TOOLS: Many graphs like pie charts, bar diagrams and tables have been depicted to analyze and interpret the data, and various statistical techniques were used. The data is collected by 2 methods:
1. 2.
Primary data Secondary data.
Primary data is collected through survey method i.e. by preparing questionnaire and interviewing persons directly and by interacting with the branch manager and other staff members. Secondary data, which is secondary in nature i.e. already, collected information. This secondary data is collected throughBooks Magazines, Journals. Internet & Published articles
1.5 - SAMPLING DESIGN: Sampling design is the sample size, which is taken for the purpose of study. It was selected form Davangere city & sample size is 40, which were chosen randomly. 1.6 - SCOPE OF THE STUDY: The scope of the study is the covered area for the purpose of study. The study is limited to Davangere city Bajaj Allianz life insurance. 1.7 - LIMITAION OF THE STUDY: Every study has one or the other limitations, which limits the study. The following are the limitations of the study: 1. The main limitation is the time factor.
2.
The study confined only to BajajAllianz private life insurance company Davangere city.
3. Sample size may give biased answers. 4. The sample selected represents the whole of the population.
2.1 Meaning and definition: Meaning: The business of insurance is related to the protection of the economic value of assets. Every asset has a value .The asset would have been created through the efforts of the owner, in the expectation that, either through the income generated there from or some other output. There is a normally expected lifetime for the asset during which time it is expected to perform. The owner aware of this can so manage his affairs that by the end of the lifetime, a substitute made available to ensure that the value or income is not lost. However, if the asset gets lost earlier, being destroyed or made nonfunctional, through an accident or other unfortunate event, the owner and those deriving benefits there from suffer. Insurance is a mechanism that helps to reduce such adverse consequences. Definition: In India, the Indian Contract Act, 1872 governs commercial contracts. Insurance is a specialized type of contract, in that, apart form the usual essentials of a valid contract, insurance contracts are subjected to additional principles viz. principle of utmost good faith and principle of insurable interest. These apply to both life and non-life classes of Insurance. Life insurance is the only instrument, which not only fulfills the need of savings but also guarantees the fulfillment of the savings plan. Life insurance provides a wide range of plans to meet the life cycle needs. The need of a person who desires to provide the family with a large sum on his death at a very low cost can be met by availing whole life assurance plan. The person who wants to have sum assured at his old age on maturity of the plan or wants to make the sum assured to be provided to his family on death can avail of endowment plan. The need of childrens education and marriage can be met by the insurance plan specially designed for marriage/education. The maturity benefits are paid by way of survival benefits in regular installments to meet the needs arising at various stages under money back plan. 2.2 - Purpose & Need of Insurance Diksuchi Study Center, Davanagre.
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Assets are insured, because they are likely to be destroyed or made nonfunctional, through an accidental occurrence. Such possible occurrences are called perils and there could be difficulties. Living too long can be as much a problem as dying too young. These risks which need to safeguard against. Insurance takes care. Insurance only tries to reduce the impact of the risk on the owner of the
asset and those who depend on that asset. It compensates, may not be fully, the losses. Only economic or financial losses can be compensated. There are certain basic principles, which make it possible for insurance to
remain popular and a fair arrangement. The first is the fact that people are exposed to risk and that the consequences of such risks are difficult for any one individual to bear. It becomes bearable when the community shares the Burdon. The second is that no one person should be in a position to make the happen. In other words, none in the group should set fire to his assets and ask others to share the costs of damage. This would be taking unfair advantage of an arrangement put into place to protect people from the risks they are exposed to. The occurrence has to be random, accidental, and not the deliberate creation of the insured person. 2.3 - Role of insurance in economic development: For economic developments, investments are necessary. Investments are made out of savings. A life insurance company is a major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are channeled into investment for economic growth. As on 31-3-2000, the total investment of the LIC exceeded 147,000 cores, of which more than Rs.84, 000 cores were directly in Government (both Sate and Centre) related securities, nearly Rs.12, 000 cores in the State Electricity Boards, Rs.16,000 cores in housing loans and Rs.3,000 cores in water supply and sewerage systems. Other investment included road transport, setting up of industrial estates and directly financing industry.
Investment in the corporate sector (shares, debentures and term loans) exceeded lives of the people and their economic well being. The LIC like other good life insurance company, has huge funds, accumulated through the small payments of premium of individuals, and is a powerful contributor for the economic development of the country. A life insurance companys strength lies in the fact that huge amounts are collected and pooled together. These amounts come by way of premiums. Every premium represents a risk that is covered by that premium. In effect, therefore, these vast amounts represent pooling of risks. The funds are collected and held in trust for the benefit of the policyholders. The management of life insurance companies is required to keep this aspect in mind and make all its decision in ways that benefit community. This applies companies would not be found investing in speculative ventures. Their investments, as in the case of the LIC benefit the society at large. In order to be amenable to statistical predictions, insurance risks must be handled must be handled on a large scale. There is, in statistics, a law of large numbers. When you toss a coin, the chance of ahead or tail coming up is half. If the coining is tossed 10 times, one cannot be sure that the head will come up 5 times. If the coin is tossed 1 million times, the number of heads will be closer to half a million proportionately than in the case of 10. The variation will be less as a percentage. So also, the larger the chances that the assumptions regarding the probability of the risk occurring, which is the basis of premium calculation will be realized in practice. 2.4 - Insurance Act 1938: In 1912, the Indian Life Insurance Companies Act and provident fund insurance societies Act 1912 was passed. This was the first comprehensive legislation in India to regulate the business of insurance. It has been observed that the provisions of Indian Companys Act did not meet the purpose. A further legislation was assed in 1928. However, a comprehensive legislation was passed in 1938. The Insurance Act 1938, aimed to consolidate and amend the law relating to the business of insurance came into force
with effect from 1st July 1939. Important changes were effected in 1950, whereby provisions were made for the abolition of the chief agents, special agents and principal agents, the expensed were sought to be limited, investments were controlled much more, the Insurance Association and Insurance Councils and also Tariff Advisory Committees were formed as a matter of self-regulation. After nationalization of the insurance business, the application of the Insurance Act to be nationalized LIC and the GIC and its subsidiaries was limited. Further amendments have been made in the Insurance Act, 1938, through the IRDA Act, 1999, in view of the new circumstances arising out of the opening up of the insurance industry in 2000.
2.5 - Insurance Regulatory and Development Authority Act 1999:
This Act was passed by Parliament in December 1999 and it received presidential assent in January 2000.this Act provides for the establishment of the Authority protect the interest of holders of insurance policies, to regulate, promote and ensure orderly growth of insurance industry and for matters connected therewith or incidental there to. It also sought to amend the Insurance Act, 1938, the Life Insurance Corporation Act 1956 and the General insurance Business (Nationalization) Act 1972.Under this Act, an authority called IRDA has been establishment. This is a corporate body established for the purpose and objects as set out in the explanation to the title. The Authority replaces controller under Insurance Act that if Authority is superceded by the Central Government, the Controller of Insurance may be appointed till such time as Authority is reconstitute Section 2(f) defines and intermediary or insurance intermediary ot include insurance brokers, re-insurance brokers, insurance consultants, surveyors and loss assessors. The Authority has the power and function to specify qualifications, code of conduct and practical training for intermediaries and agents.
3.1 - Introduction:
India successfully entered the liberalization of insurance era in 1999. Apparently, the Indian insurance market is very important to the global community. In addition, India has one of the top growth rates in either the life of general insurance industries in the world. India, with a population of more than one billion is potentially going to be the largest insurance market in the world may be next to China. The Indian insurance industry has been underdeveloped throughout recent history. There were only 6 insurance companies in India in the beginning of 2000. More importantly, regulation of the insurance industry has not been able to keep pace with the rapid growth of Indian insurance market and new products in the current market driven economy. As for examples where are the specific regulation in areas such as crop insurance, credit insurance, health insurance and return linked general insurance business. It is an important task for Indian authorities to develop a well functioning insurance market, which will not only provide security for Indian people and their corporations, but will also enhance the development of the Indian economy. It is well recognized that risk management and insurance provides five categories of service that are critical to economic growth. 3.2 - ADVANTAGES AND DISADVANTAGES OF MORE FOREIGN PARTCIPATION IN INDIAN INSURANCE MARKETS: The advantages of more foreign participation in Indian insurance markets1. Improvement in customer service and value. The Indian insurance industry is relatively new, especially in personal lines and in a majority of commercial lines despite boasting for a long stint in the market. With hundreds of years of meaningful experience, foreign insurance companies are definitely able to provide new and diverse products that meet the needs of Indian markets. There have been many favorable experiences in Indian. For example many different types of new life insurance such as universal life insurance and variable life insurance have been introduced in India more notable most ,Indian insurance companies whether domestically owned or joint venture have recognizes that
service competition should more important than price competition. The concept of service competition is a result of foreign insurance companies participation though joint venture. While adequate insurance premium are important to consumers, consumer services are more critical the IRDA should encourage insurance companies to focus on not only advocate premium but also insurance services. No doubt domestic companies are still considered more credible at market place but they have improved their service in reaction to happening around. If liberalisation would not have happened the customer did not have the option to precipitate improvement 2. Transfer of technological and know how This is probably one of the most important reason why India should keep allowing foreign institution to participate in Indian insurance market it is apparent that large international companies have expertise in underwriting, marketing, ratings, investment, and other operations. To ensure foreign technology and expertise India should encourage domestic companies to learn and adopt new technology and develop new product as long as domestic Insurance companies stay competitive, foreign insurance companies need to utilize and transfer the most advanced technology to India so as to compete with Indias domestic insurance companies. 3. Additional external financial capital It is true foreign insurance companies will provide capital inflows to Indian domestic economy when the joint venture is first established. However it should be noted that there would be capital outflows when the joint venture becomes profitable. In the long run there may be more capital outflow than the capital inflow. To reduce capital outflow India needs to provide stable economic and political environment so that foreign insurance companies reinvest their profits in India. 4. Creation of beneficial domestic spillovers
Foreign insurance companies can create some types of beneficial domestic spillovers because foreign insurance companies realy on the services of Indian companies through joint venture. Other backward linkages include banks, accounting firms, law firms and BPO services. India should capture this excellent opportunity and advance technology in banks, accounting firms, law firms and BPO services to fulfill the needs of foreign companies, including insurance companies. These are the internal wings of the value chain. There can be both internal and external wings of the value chain. External wings of value chain can be harnessed by tapping into the retrocession and securitization markets in the country or hinterland of the foreign partner. Disadvantages: The concerns of more foreign participation in Indian insurance markets It is critical that India recognizes these concerns and tries to minimize the negative impact of the entrance of foreign insurance companies on the Indian economy or on its domestic insurance companies.
1.
Foreign insurer will dominate the domestic markets. One possible method for insurers to dominate markets is dumping. That is
insurance can sell their products below cost to gain market share even if foreign insurer has attempted or does attempted to gain market dominance by dumping, the effects seen more likely to be positive than negative for citizens and the economy. While consumers may enjoy the low cost of insurance in the short run, they may suffer large losses in the long run when insurance companies go bankrupt. The reason is that some insurance companies try to gain market share by offering below cost premiums and eventually become insolvent. Unlike regular products, insurance provide futures services and payments and thus, adequate premium are typical to the protection of consumers. The decision maker should worry more about whether the presence of foreign insurance companies will increase the quality of insurance products and services and decrease the price, than dominating the domestic markets. At the same time, adeaquate Diksuchi Study Center, Davanagre.
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premiums, rather than below cost premiums, will benefit consumers in the long run. The IRDA should closely watch inadequate premiums or abnormally high promised interest rates in life insurance policies. 2. Foreign insurers will service the market selectively. Foreign insurers only service the market selectively is valid, although a competitive system will eliminate this concern. It is not uncommon for insurers to service only select markets. For example, without regulatory intervention, most insurance companies in the developed countries would not sell insurance in the residual or high risk automobile insurance market. While most foreign or domestic insurers currently focus their efforts on the large cities of India, they need to understand that they are required to sell insurance in the rural areas, or north eastern states, that are not as populated or profitable. This kind of practice may not be a major problem today because insurance needs are not great in the rural areas and such states .However, the IRDA needs to make sure the future needs in those areas are fulfilled. One way to solve this problem may lie in developing a plan similar to the auto insurance plan in developed countries. Specifically the IRDA may develop a plan so that all the insurance companies in India need to write their proportionate share of insurance in the rural areas and neglected states based on the total volume written in the big cities of India a mere regulatory lip service will give the willful errant a perpetual escape route. 3. Market opening should await certain reforms It is true that insurance regulations in India might not be 100% ready to regulate either foreign or domestic insurance company in a deregulated and liberalized market. However, India has recently passed many insurance laws and regulations to help regulate insurance companies, insurance brokers and new products partly because of entrance of foreign insurance companies. More reforms, laws and regulations are needed to regulate the Indian insurance industry. To have a healthy insurance industry, insurance laws and regulations need to be updated all the time. Regulatory inundation should not be as per the understanding and convenience of the regulator of the day but as per the strategic requirement of the market.
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3.3 - About IRDA Insurance regulatory and development authority act 1999:
This act was passed by Parliament in December 1999 and it received presidential assent in January 2000. This act provides for the establishment of the authority protect the interest of holders of insurance policies, to regulate, promote and ensure orderly growth of insurance industry and for matters connected therewith or incidental there to. It also of sought to amend the Insurance Act, 1938, the Life Insurance Corporation Act 1956 and the General insurance Business (Nationalization) Act 1972. Under this Act, an authority called IRDA has been establishment. This is a corporate body established for the purpose and objects as set out in the explanation to the title. The Authority is superceded by the Central Government, the Controller of Insurance may be appointed till such time as Authority is reconstituted. Section 2 (f) defines and intermediary or insurance intermediary to include insurance brokers, re-insurance brokers, insurance consultants, surveyors and loss assessors. for intermediaries and agents. The Authority has the power and function qualifications, code of conduct and practical training
Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.
(1) Subject to the provisions of this Act and any other law
for the time being in force, the authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.
(2) Without prejudice to the generality of the provisions contained in sub-section the powers and functions of the Authority shall include, -
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(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 organizations 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 organizations 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 insurers and other insurance intermediaries shall render statement of accounts;
(k) Regulating investment of funds by insurance companies; (l) Regulating maintenance of margin of solvency;
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(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries; (n) Supervising the functioning of the Tariff Advisory Committee; (o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f); (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 The IRDA has a cell that receives and looks into complaints from policyholders Life and Non-life grievances are handled separately. The Cell plays a facilitative role by taking up such complaints with the respective insurers. Cases of delay/non-response in matters relating to policies and claims are taken up with the insurers for speedy disposal. Complaints relating to these are analyzed and insurers are advised to examine the same. If required, their attention is called to specific issues for examination/re-examination. However, if the insurer does not change its stand even after examination/re-examination, the complainant is informed of the same. The Authority does not carry out any adjudication. For this, the complainant would have to approach the appropriate judicial channel.
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4.1 MEANING AND DEFINITION OF CONSUMER/CUSTOMER BEHAVIOR
The aim of marketing is to meet and satisfy target customers needs and wants. the fields if consumer behavior studies how individuals, groups, and organizations select, buy, use and dispose of goods and services, ideas or experiences to satisfy their needs and desires. In the other words Prof. Walter C.G. and Prof. Paul G .W, it is the process where the individual decide, whether, what, when, where, how and from whom to purchase goods and services. It encompasses the decision making process that proceeds and determine purchase. Understanding consumer behavior and knowing consumer are never simple. The marketers must study there target customers wants, perception. Preferences and shopping and buying behavior.
Type of customer
1. Impulsive customer 2. timid or nervous customer 3. snobbish customer 4. Deliberate customer 5. argumentative customer 6. Price minded customer 7. Talkative customer 8. Silent customer 9. Suspicious customer 10. Women customer
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4.2 THE MAJOR FACTORS AND DETERMINANTS OF BUYER BEHAVIOR:

CULTURAL Cultural Subculture Social; class SOCIAL Reference Group Opinion Leader Family Roles and Statuses ECONOMIC Personal Income Family Income Income Expectation Liquid Assets Consumer Credit Standard of Living st PERSONAL Age and Life Cycle Stage Occupation Economic Circumstances Life Style Personality and Self Concept ENVIRONMENTAL Political Legal Technological Ethical PSYCHOLOGICAL Motivation Perception Learning Believes and Attitudes Personality
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I. CULTURAL FACTOR: Cultural factors exert the broadest and deepest influences on consumer behavior. The roles played by the buyers culture, subculture and social classes are particularly important. 1. Culture Culture is the most fundamental determinant of a persons wants and behavior. Culture refers to all those symbols, artifacts and behavioral patterns that are passed on socially from one generation to the next, culture are specific to the areas in which they evolve. 2. Subculture Each subculture consists of smaller subculture that provides more specific information and socialization for its members. Subculture includes nationalities, religion, racial group and geographical region. Many subcultures make up important market segment and marketers often design products and marketing program tailored to their needs. 3. Social class Social class is relatively homogenous and enduring division in a society. Which are hierarchically ordered and whose members share similar values interest and behaviors. Social class do not reflect income along but also other indicators such as occupation education and area of residence, social class differ in their dress, speech pattern, recreational preferences and many other characteristics. II. SOCIAL FACTORS
In addition cultural factors consumers behavior is influenced by such social factors like reference group, opinion leader, family and roles and status.
1.
Reference group
Reference groups are those groups, which an individual identified with to the extent that those groups became a standard or normal, which influenced his behavior. Reference group is a social and professional group that influences the individual opinion, beliefs and aspiration. It is one that provides an individual with a sense of identity, accomplishment and stability. Group influences is seem in brand reference and choices. 2. Opinion leader:
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The individual to whom such reference is made by a person or person is the opinion leader. The beliefs, preferences attitudes, action and behavior of the leader se a trend and a pattern for other to follow in given situation. In every in timate reference group, there is a reference person, an informal group leader. He is the innovator in the group who first tries new ideas and products and them propagates them to his followers. Marketers very often try to catch hold of the opinion leaders through ads and other means of communication. If they succeed in selling their ideas and products to the opinion leader then they have sold it to the entire group of followers behind them.` 3. Family Family is the most important consumers buying organization in society and it has been researched extensively. A family member of orientation consists of ones parents and siblings. From parents live with their grown children their influences can be substantial. Marketers are interested in the roles and relatively influences of the husband wife and children in the purchase of a large variety of products and services.
4.
Roles and statuses.
A person participates in many group throughout life-family, clubs organization. The persons position in each group can be defined in terms of roles and status. A role consists of the activities that a person is expected to perform. Each role carries a status. A supreme court justice has more status than a sales manager has more status than an office clerk, people choose products that communicate their role and status in the society. III. ECONOMIC
The purpose of demand creation activities require not only intensifying the desire of a person to go in for brand but also to give him buying power which translates desire in to actual purchase. The buying power depends on following factors.
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A. PERSONAL INCOME Income means purchasing power. Gross income of a person is composed of disposal income and discretionary income. The disposal personal income is the balance after subtracting taxes and compulsory deduction from gross income. Any change in disposal income will have change in consumer buying decision. Decline in disposal income reduces the consumer spending: however, whom disposal income raises, consumer spending not only rises but makes them to go in for more and more of luxuries. Discretionary income is the income, which is available after meeting basic needs of living. It is residual disposal income left after meeting all expenses essential to provide a minimum subsistence needs to a family. B. FAMILY INCOME Since an individual is a part of his family, it is the aggregate income of all members of the family, which determines the buying power of an individual. The surplus income in the entire family, after deducting expenditure on basic needs of the family is made available for buying durable. The size and life style of the family also have impact on a family buying behavior.
C.
INCOME EXPECTATION The behavior also depends on the expectation of the future income. If a person expects future rise in his income, he purchases durable such as car, refrigerator, sofa-set, etc. if his future income is likely to decline, he will restrict current expenditure to bare necessities. D. LIQUID ASSET Liquid asset of consumer are the assets held in the money on near money forms of investments, for ex hard cash, and bank balance, share and bonds and saving certificates. These liquid assets are building up to buy some consumer durable on to meet unexpected future needs or contingencies.
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E. CONSUMER CREDIT Paucity of consumer credit has its impact on consumer buying behavior, consumer credit takes number of shapes like deferred payment, installment, hire purchase arrangements and the like. Easy availability of consumer credit makes the consumer to go in for that consumer durable. F. STANDARD OF LIVING The consumer behavior has the impact on the established standard of living to which he is accustomed. Even if the consumer income goes down. The consumer spending will not come down proportionately. Because, it is very difficult to come from an established standard of living.
IV.
PERSONAL:
A buyers decisions are also influenced by personal characteristics. These include the buyers age and stage in the life cycle, occupation, economic circumstances, lifestyle and personality and self-concept. 1. AGE AND STATE IN THE LIFE CYCLE: People buy different goods and services over their lifetime. The consumption is also shaped by the family life cycle. The stages of the family life cycle depend upon the financial situation and typical product interests of each group marketers often choose life cycle groups as their target market. 2. OCCUPATION. A persons occupation also influences his or her consumption pattern. Marketers try to identify the occupational groups that have above average interest in their products and services.
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3. ECONOMIC CIRCUMSTANCES: Product choice is greatly affected by ones economic circumstances. Peoples economic circumstances consist of their spend able income, savings and assets, debts, borrowings power and attitude towards spending versus saving. Marketer of the income sensitive goods pay constant attention to trends in personal income savings and interest rates. If economic indicator point to a recession, marketers can take steps to redesign reposition and re-price their products so they continue to offer value to target customer. 4. LIFE STYLE People coming from the same subculture, social class and occupation may lead quite different life styles. A persons life style is the persons pattern of living in the world as expressed in the persons activity interest and opinions. Marketers search for relationships between their products and life style groups and the marketers then the brand more clearly at the achiever life style. 5. PERSONALITY AND SELF - CONCEPT Each person has a distinct personality that influences his or her buying behavior. Personality means a persons distinguished psychological characteristics that lead to relatively consistent and enduring responses to his or her environment. Personality is usually described in terms of such traits as self confidence, dominance, autonomy, deference, sociability, defensiveness and adaptability; personality can be useful variable in analyzing consumer behavior provided that personality types can be classified accurately and that strong co-relation exist between certain personality types and product or brand choices.
V.
ENVIRONMENTAL FACTORS:
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1.
Political factors can influence the sale and purchase of products of one company and another that indirectly affects the buying behavior. Legal factors are the factors which are governed by the rules and regulations of the government and the entry and exit of products may be slow or fast and buying and declining may affect.
2.
3.
Technological factors may be another factor for improvements or advances in new products or present products and this improvement in technology may change the buying behavior pattern.
4.
Ethical factors may be the rules and regulation or moral conduct of the seller or the manufacturer with the product and services and of the relations with the customers. This is the main factor for buying behavior of the customers.
VI.
PSYCHOLOGICAL FACTORS : A persons buying choices are influences by five major psychological factors.
1. MOTIVATION A person as many needs at any given time. Some needs are biogenic tension such as hunger, thrust, discomfort other needs is psychogenic, then arise from psychological states of tension such as the need for recognition esteem or belonging. Most psychogenic needs are not intensive enough to motivate the person to act on them immediately. A need becomes a motive when it is aroused to a different level of intensity. A motive is need that is sufficiently pressing to drive the person to act. 2. PERCEPTION Perception gives the direction to be taken by the behavior. It is the meaning that consumers give on the basis of its past experience consumers sense perceives the color shape sound smell taste etc of its stimuli. The consumer has his own, selective exposure, selective distortion, selective retention and selective action. i.e., the consumer as his own, decision whenever messages broadcast by the marketers through their promotional tools. 3. LEARNING
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When people act they learn. Learning involves changes in an individual behavior arising from experience. Most human behavior learnt. Learning theories believe that learning is produced through the interplay of drives, stimuli, cues responses and reinforcement. Drive refers to an internal state of tension, which warrants action. A cue is an environmental stimulus. Responses represent the persons reaction to cues within his environment. Reinforcement is the response reward.
4 BELIEVES AND ATTITUDES Through doing and learning people acquire believes and attitudes. These in turn influence their buying behavior. A belief is the description throughout that a person holds about something. Manufactures are very interested in the believes that people carry in their heads about their products and services. These beliefs make up product and images and act on their images. An attitude is a person enduring favorable or unfavorable evaluations emotional feelings and action tendencies toward some object or idea. People have attitudes toward almost everything: religion, politics, clothes, music, food and so on. Attitudes put them in to a frame of mind of liking or disliking an object, moving toward or way from it. Attitudes lead people to behave in a fairly consistent way towards similar objects. 1. PERSONALITY Personality refers to the essentials difference between one individual and another. There fore, personality consists of mannerisms, habits, action that make a person an individual and there by serve to make him distinct from every one else. Personality interplay of three component namely, the id, the ego, and super ego. The id, the source of all mental energy which drives as to action. The ego, the conscious directs of id impulses for finding satisfaction in social accepted manner. It represents our basic impulses and total satisfaction. Diksuchi Study Center, Davanagre.
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The super ego, the internal representation of what is socially approved our conscience i e, it reflects our idealized behavior patter.
BUYING DECISION We can distinguish five roles people might play a buying decision,
1.
INITIATOR: a person who first suggest the idea of buying the product or service. INFLUENCER: a person who view or advice influences the decision. DECIDER: A person who decides on any component of a buying decisions: whether to buy, what to buy, how to buy, where to buy. BUYER: The person who makes the actual purchase. 5. USER: the person who consumes or uses the products or service.
2. 3.
4.
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5.1 Introduction The purpose of all business is to create and retain the customers. Without customers, their can be no business. Customer does not come on their own. They have to become aware of availability of the goods or services on offer. Awareness is not enough. It must be convenient to access the offer. The cost must be seen to be reasonable for the benefits offered. An excellent produce does not guarantee that sales will happen, unless people interest in that product come to know about it and find that the efforts to get it is not too taxing. They will continue as customers when they are satisfied with what they have got. Business, therefore, has to inform the likely customers through media that reach them, make the goods and services available at convenient outlets and ensure that the customers experience satisfaction while using them. Marketing is the activity that comprises of all these. It focuses on the customers. The marketer asks questions like what do people buy ,why do they buy (what are the needs,) when and where do they buy, how do they buy, what are their preferences and priority, what do they look for while buying, what are their concepts etc. the products and the distributions are the design in a ways that try to match these requirements. Studies over the years have developed ideas and concepts that help the marketers become more effective in their function. Marketing concepts relevant tangible products like motorcar, refrigerator and cosmetics are not entirely applicable to the service business, like hotels, finance, healthcare, credit cards or travel. Every service is different. The needs of their customers are different. The ways of production the services are different. Every service is catering to a different kind of need and is different in the internal dynamics of making the service available. Those entering causality a department of the hospitals. The two places cannot have the same ambience. Even in insurance, life is different from general. This chapter deals with the some of the important concepts relating to marketing of life insurance keeping in mind the responsibilities and functions of the agents.
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5.2 The distribution channel A distribution channel is the route by which the product (or offer) prepared by the producer reaches the ultimate consumer (or buyer). The distribution channel bridges the distance between the producer (point of manufacturer) and the consumer (point of sale). In the case of goods, the product manufacture in the factory passes through wholesalers, stockiest and retailers, before it reaches the customer. In the case of life insurance, the agent is equivalent of the retailer. The supervisor of agents, by whatever name called, is an important part, because it is he who, by creating and training agents, makes the channel effective. New agents widen the channel. Equally important would be the other intermediaries, like brokers and insurance consultant. Some life insurers are trying to eliminate intermediaries to save costs. Direct selling is one such attempt. This is increasing in foreign countries. In India, people, by and large know about life insurance, but still have a lot of wrong notions about it. Personal contracts by agents may continue to be necessary for quite some time. Another method being attempted is the use of the extensive network of branches of banks. The customer of both banks and life insurers are practically from the same segments of population. Through the same contact, the prospect can be helped to arrange for both bank deposits and life insurance. There would be saving in infrastructure costs and overhead. New insurers find this an easy way composite product having the elements of both life insurance and banking. These trends have to develop. 5.3 Sold not bought: Life insurance is not bought by anybody. General insurance is often bought because there are compulsions under the law (motor vehicles) or from the financiers asking for insurance as collateral security. In the case of tendency is to defer the decision. The possibility of death is either ignores or not considered imminent. The requirements of today take priority over the requirements if tomorrow. Even if not absolutely essential, the requirements of today seen to be more compelling. Tomorrow never comes. Superstitious belief and cultural or religious background often interfere with the process of considering the usefulness of life insurance. There are notions about life insurance not
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being a good investment (yields are low, the money after 20 years is worth much less) and so on. By the time some one realizes him the need for life insurance, the chances are that he may not be in the best of health and the insurer may have doubts about the insurability. Life insurance has to be had when in the best of health. Otherwise, the and motivations of the former. The latter is likely to be a case of moral hazard and must be looked at more insurer will refuse to grant the insurance cover. In this complex milieu, people need to be persuaded that there is need to be concerned about the future and life insurance is a necessity, not an option. Insurance has to be sold. The person, who is met by an agent at his normal place or work or residence, is a better risk than the who comes to the office and asks for insurance. The agent, who is the primary underwriter, can study and report on the circumstances carefully. 5.4 The customer: The service of life insurance happens at the time of claim, when people will experience how the promises are being kept. Until then, it is a hope, a promise the significance of which is vague. The customer in life insurance is not only the person who bought the policy, but also the person who is making the claim. He is the one experience the service. This difference is not only in death claim cases. Even the case of maturity claim, where the claimant is the same as the policy holder of life insured, the two minds sets are different. At the start, at the buying stage, the mind set is one of anxiety and fear at the possibility of satisfaction that nothing untoward had happened, but also there could be disappointment that the moneys could have been utilized elsewhere better. Claimants of death benefits are persons different from the one who had taken out the policy and perhaps know little about the circumstances and conditions under which the policy was taken or had been looked after. They may not are familiar with their entitlements under the policy. They an importantly member of the family. The insurers will ask for information and documents of various kinds to decide on the admissibility of the claim. There would be the insurance company, who helps the claimant in finding the right information and in completing the formalities, will be providing great satisfaction. If the
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agent who sold the policy is not available for any reason, the office can depute another person or another agent. 5.5 strengthening relationships: The agent is the main intermediary between the customer and the insurer. The customer agent link is stronger than the agent company link (this tends to be impersonal), which in turn, is stronger than the customer is. A death claim provides a tremendous opportunity to strengthen this link. The agent is expected to keep in constant touch with his policy holders to become aware of the changes in his situation including marriages, deaths of relatives, release of mortgages. Anyone of them may necessitate some changes like to policy moneys or more insurance. The contact conveys a message that the agent cares for the policyholder and the family. An agent who is seen only at the time the policy was being bought, is likely to be perceived as selfish, not concerned about the policyholders interests and therefore, not believed. The agents show of concern could be interpreted as not genuine and therefore, his promises not very dependable. A study made by the insurance institute of India in 1987, by interviewing 2510 policyholders in 26 cities, had the following observations. Agents do not maintain regular contact with policyholders, although they are seen as available whenever necessary. 50% said that if they had any work to be done, they would go to the office directly rather than get in touch with the agent. Agents are perceives as knowledgeable, but also as concerned more with their own benefits than those of policyholders. These observations reflect badly on the agents. 5.6 Functions of agent: The agents main function is to solicit and procure life insurance business for the insurer, which has appointed him for that purpose. At the same time, he is trusted by the prospects to advise him suitably keeping his circumstances and needs in mind. He is
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thus in the unique role of a person trusted by both parties to the transactions. His functions would include. Understand the prospects needs and persuade him to buy a plan of life insurance that suits his interests best. Complete the formalities (paper work, medical examination) necessary to get policy expeditiously. Keep in touch to ensure that changing circumstances are reflected in the arrangements relating to premium payments, nomination and other necessary alterations.
Facilitates quick settlement of claims. Be totally honest with the prospects and the insurer.
The regulations framed by IRDA lay down a code of conduct, which incorporates some of these concepts. The code says interalia that the agent shall. Identify himself and the insurance company of which he is an agent. Disclose the license to the prospect on demand. Explain all available options to the prospect. Recommend a suitable plan taking into account the needs of the prospect. Disclose the scales of commission, if asked for by the prospect. Explain the nature and importance of the information required in the proposal form. Impress upon the prospect the need to disclose all information. Make all enquiries about the prospect. Inform the insurer about any material facts, including habits that could adversely affect the underwriting decision. Convey to the prospect about the acceptance or rejection of the proposal. Render necessary assistance to policyholders or clients or beneficiaries in complying with requirements asked for by the insurer. Advice policyholders to effect nomination.
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Make every attempt to ensure remittance of premiums by the policyholders within the stipulated time, by giving notice orally and in writing. Not to induce prospects to submit wrong information. Not to interfere with the proposals introduced by other insurance agents. Not demand or receive from beneficiary, share of proceeds under an insurance contract. Not cause the termination of an existing policy with the view to effect a new proposal.
5.7 Advertisements: Life insurance is brought as a response to advertisements. Advertisements are effective. As reminders to intimate change of address, pay premium, make nominations etc. As information on bonus declaration, special revival schemes, concessions, new plans, etc. To build corporate image as financially strong, as responsible social citizen, etc. The regulations framed by the IRDA have made some stipulation about advertisements by insurer as well as by intermediaries like agents. These stipulation apply to all messages in the print and electronic media, hoardings, internet, leaflets, business cards, etc., that urge others to buy life insurance. These stipulation, inter alia, state that Claims made about the benefits should not beyond the ability of the policy to deliver. Benefits described should match policy provisions Words or phrases should not be used in such a way as to hide or minimize the cost of hazards Important exclusions, limitations and conditions of the contract should be disclosed sufficiently. Information should not be misleading. Illustrations about future benefits or assumptions should not be unrealistic or unrealizable in the light or current performance
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Benefits that are not guaranteed should not be referred to in ways that they are not noticed There should be no implication of sponsorship affiliation or approval that does not exist There should not be any unfair or incomplete comparisons with products of competitors
Those who have received policy moneys on the death of the life insured, are the best endorsements for a life insurer. They are the ones who have experienced what life insurance means and know what is can do differently from other financial arrangement. They know how it feels when a previously determine amount comes in at a time foreclose mortgages and attach property. Satisfies claimants are powerful and effective as is the most effective endorsement. In insurance it is particularly so. The word of mouth is an endorsement, not only need for the life insurance, but also for the insurer and the agent in particular.
5.8 Keeping customer happy:

A customer satisfied when the product meets his needs. In life insurance, this happens at the time of the claim, which is a long way off. It is important to keep him happy during this period, to avoid what is called Cognitive Dissonance. This arises because of doubts about the decision to buy. In the case of life insurance, such doubts may easily arise because others (friends and agent) will talk about better alternative plans, better insurers, and so on. The only way to counter these possibilities is to be in touch with the prospect and reassure him at every possible opportunity that the purchase he made was not a mistake. In other words, the agent will be effectively repeating the sales talk, overcoming objections, till the benefits are seen through claims. Studies show that people are happy when they are recognized and respected and not taken for granted. Recognition happens when ones feelings, requirements etc., are understood and not ignored. Agents can do lot in terms of recognizing people. One way is to be available whenever the prospect or the policyholder has a point for clarification. These may happen during the policy term itself, when a change in job or place may raise doubts as to the effected on the policy. Another say is to avoid denying the validity of his Diksuchi Study Center, Davanagre.
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thoughts. These are nothing more demeaning than to be discredited for ones ideas. This is important while handling objections during a sale. Recognition is high when the thoughts of the other person are anticipated. Two other factors, which make customers happy, are Responsiveness (willingness to help) and Ease of Access. On both counts, agents can do much more than what the insurers office can do. It is difficult for an office to be warm and personalized when dealing with anybody. The agent can. Some agents do not let the policyholders go to the office at all. They get everything done. Such agents are reinforcing the impressing that the agent is trustworthy and can be depended upon to fulfill his promises. The image of the insurer remains high.
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6.1 -Vision and Mission: Vision A household name in India teams up with a global conglomerate... (Or)
[
Combining a strong reputation in India and a global experience in insurance business worldwide, Bajaj Auto and Allianz come together for the Indian Operations... Mission To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.
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3.2
Sam
Ghosh, (CEO Bajaj Allianz private ltd) CEO of Bajaj Allianz Life Insurance said: "We are confident that Bajaj Allianz Life Insurance will strengthen its leadership position with Ajays (Head of Sales) dynamic leadership. His tremendous track record in developing sales leadership in existing and new markets will further accelerate our growth in India & also enable us to become the market leader in the Life Insurance among the private players
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6.2 - Introduction about Bajaj Auto Ltd 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 manufacturer 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 Financial strength and stability to support the Insurance Business. 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 Finance Ltd
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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 Rs 4000 cr. Bajaj Auto finance one of the largest auto finance cos. in India Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03 It has joined hands with Allianz to provide the Indian consumers with a As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the Financial strength and stability to support the Insurance Business. A strong brand-equity. A good market reputation as a world-class organization. An extensive distribution network. Adequate experience of running a large organization.
distinct option in terms of life insurance products. following to offer -
6.3 - Allianz Group Is one of the world's leading insurers and financial services providers. 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 Group provide its more than 60 million customers worldwide with a comprehensive range of services in the areas of Property and Casualty Insurance, Life and Health Insurance, Asset Management and Banking.
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ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE Worldwide 2nd by Gross Written Premiums of Rs.4, 46,654 cr. 3rd largest Assets under Management (AUM) & largest amongst Insurance 12th largest corporation in the world 49.8 % of global business from Life Insurance Established in 1890, 110 yrs of Insurance expertise 70 countries, 173,750 employees worldwide
cos. - AUM of Rs.51, 96,959 cr.
6.4 - Why Bajaj Allianz Life Insurance? An Impeccable track record across the globe in providing security and cover for you and your family... At Bajaj Allianz, realize that you seek an insurer whom you can trust your hard earned money with. Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto, trusted for over 55 years in the Indian market, together are committed to offering you financial solutions that provide all the security you need for your family and yourself. Bajaj Allianz brings to you several innovative products. 6.5 - Indian Operations: Growing at a breakneck pace with a strong pan Indian presence Bajaj Allianz has emerged as a strong player in India... Bajaj Allianz Life Insurance Company Limited is a joint venture between two leading conglomerates Allianz AG and Bajaj Auto Limited. Characterized by global presence with a local focus and driven by customer orientation to establish high earning potential and financial strength, 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.
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Bajaj Allianz- THE PRESENT Over 3,00,000 satisfied customers Leading private sector insurance company in India One of the fastest growing private sector life insurer in India Accelerated Growth Assets under management Rs 350 cr. Shareholder capital base of Rs 250 cr. Pan India network Wide range of products to suit customers needs. Decentralized organizational structure for increased response and service levels. Highest standard of customer service & simplified claims process in the industry
6.6 - About Baja Allianz products: Baja Allianz Life Insurance Company has developed insurance solutions that cater to every segment and age-income profiles. Its products include InvestGain (a unique life insurance plan where sustenance of income is combined in the same plan that also pays a lump sum), Cash Gain (Money Back), Child Gain (Childrens plan), Risk Care (Pure Term), Lifetime Care (whole life), Term Care (term with return of premium), Swarna Vishranti (Retirement Plan), Protector (Mortgage term insurance plan), UnitGain (Unit Linked Whole of Life Plan), UnitGain Single Premium, Unit Gain Plus & Unit Gain Plus SP & Lifelong Gain Plan. Bajaj Allianz is poised for an accelerated growth in the market and has already become the fastest growing private life insurance company in India. Bajaj Allianz has a wide pan India presence of office network in 156 cities of the country and is aided with a
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strong and trained Agency network of over 29,000 agents. Bajaj Allianz has also forged strong Bank assurance and Corporate Agency relationships and continues to build on new tie-ups for fast track growth and deep market penetration. Bajaj Allianz has launched a slew of need-based products to cater to each varied needs of the customer. Currently Bajaj Allianz has a product portfolio of 19 products and more need-based products are in the pipeline
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6.7- Table showing Names of Private insurance companys and their CEOs
S. No 1.
NAME OF THE COMPANY
NAME OF PRINCIPAL OFFICER Mr. Sam Ghosh Nani B Javeri
NAME OF APPOINTED ACTUARY Sampad Narayan Bhattacharya K. S. Gopalakrishnan
2.
BAJAJ ALLIANZ LIFE INSURANCE COMPANYLIMITED. GE Plaza, Airport Road , YerawadaPune 411 006 BIRLA SUN LIFE INSURANCE CO. LTD 6th Floor, Vaman Centre, Makhwana Road, Andheri-Kurla Road , Andheri(E), MUMBAI-400 093. HDFC STANDARD LIFE INSURANCE CO. LTD "Trade Star", 2nd floor, 'A' Wing, Kondivita Road Junction AndheriKurla Road Andheri (East) Mumbai 400 059. ICICI PRUDENTIAL LIFE INSURANCE CO. LTD ICICI Prulife Towers , 1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025. ING VYSYA LIFE INSURANCE COMPANY PVT. LTD. ING Vysya Home, 5th Floor, #22 Mahatma gandhi Road Bangalore-560 001. LIFE INSURANCE CORPORATION OF INDIA Yogakshema, Jeeva Bima Marg, Post Box No. 19953 MUMBAI 400 021
3.
Mr.D.M. Satwalekar
Mr. Nick Taket
4.
Ms. Shikha Sharma
Mr. V. Rajagopalan
5.
Mr. Frank Koster
Mr. Achaiyer Venkatasubramanian
6.
Shri R.N. Bhardwaj
Mr. Gorakh Nath Agarwal
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7.
MAX NEW YORK LIFE INSURANCE C0. LTD. 11th Floor, DLF Square , Jacaranda Marg, DLF City , Phase-II, GURGAON 122 002.
Mr. Anuroop(Tony) Singh
Mr.R.P.Sharma
8.
METLIFE INDIA INSURANCE COMPANY PVT. LTD. Brigade Seshamahal, No. 5, Vani Vilas Road , Basavanagudi,BANGALORE560 004. KOTAK MAHINDRA OLD MUTUAL LIFE COMPANY LIMITED 6th Floor Penisula Chambers, Penisula Corporate Park, Ganpatrao Kadam Park Lower Parel, MUMBAI-400 013. SBI LIFE INSURANCE CO. LTD Turner Morrison Building, 2nd Floor, 16, Bank Street, Fort Mumbai-400 023. TATA AIG LIFE INSURANCE COMPANY LIMITED 5th 7 6th Floor, Peninsula Tower, Peninsula Corporate Park Ganpatrao Kadam Marg, Lower Parel, MUMBAI 400 013. AMP Sanmar Life Insurance Company Limited. 9, Cathedral road, Chennai - 600 086 AVIVA LIFE INSURANCE CO. INDIA PVT. LTD. 5th floor, JMD Regent Square, Mehrauli road, Gurgaon - 122001 Sahara India Life Insurance Co, Ltd. Sahara India Bhawan, Kopoorthala Complex, Lucknow 226024
Mr. Venktesh Mysore
Dr. K Sriram
9.
Mr. Shivaji Dam
Mr. James Edmond Thomson
10.
Mr. S. Krishna murthy Mr.Ian J.Watts
Dr. R. Kannan
11.
Mr. Phuong Chung
12
Mr. Graham Meyer
Mr. Micheal Joseph Leonard Wood
13
Mr. Stuart Purdy
Mr. Wadhwa
14
Mr. N.C. Sharma
Mr. K K Dharni
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6.8 - Information of policies sold: Fiscal Year (6mths) 2001-2002 2002-2003 2003-2004 No of policies GWP in FY Rs. 7 cr. Rs. 69 cr. Rs. 221 cr.
sold in FY 21,376 1,15,965 1,86,443
6.9 - Achievements
- Bajaj Allianz Life logs Rs.367cr profit: Bajaj Allianz Life Insurance Company has made an accounting surplus of Rs.367 crore in the first six months of financial year 2004-2005 it is probably the first private insurance company to make a cash profit which it terms as an accounting surplus. Bajaj Allianz Life Insurance mopped up new premium income of Rs.190 crore in the first six months against Rs.47 crore in the corresponding period last year. Sam Ghosh CEO Bajaj Allianz Life said: we have been able to post an accounting surplus on account of our low management expense ratio (about 30%) and business mix (40%of our new business comes from the traditional plans) Most other private life insurance companies have a high management expense ratio and many are more inclined to sell unit linked plans, where there is a higher allocation of reserves required. In unit-linked plans, about 75 percent of the premium income generated, depending upon respective plans, is put aside as reserves. As we sell more unit-linked policies, our cash surplus might go into a deficit as we move towards a 70:30 ratio where 70 percent of our sales are unit-linked plans he said. Off late, many customers are buying unit-linked products where the investment risk is passed on to the customer.
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- Bajaj Allianz Life logs in Rs250 crore GWP: Bajaj Allianz Life Insurance Company Ltd completed 3 successful years of operations in India .In these 3 years Bajaj Allianz has moved on to become the fastest growing Life Insurance Company in the country. With a gross written premium of overRs250 crore, the company continues to maintain its rapid growth rate of 325% informed by Mukul sinha branch manager Bajaj Allianz Life Insurance Company. As per the latest IRDA results Bajaj Allianz has maintained 3rd rank among the private life insurance in the country & are confident of moving up the ladder very soon. Bajaj Allianz Life Insurance Company Ltd a joint venture between Allianz AG Germany &Bajaj Auto Ltd.India have deeply penetrated the market with its pan India presence in over 225 cities & towns and strong agency force of over30000 insurance consultants, making it one of the largest distribution reach across the country catering to the over 395,000 satisfied customers. Commenting on the occasion Mr.Ghosh (CEO of Bajaj Allianz Life) said last year we did Rs219 crore gross written premium we have crossed this milestone in the first half of this financial year. This indeed is a positive indicator of our growth and race towards leadership position.
- Bags Excellence award:

Bajaj Allianz Life Insurance Company Ltd has received an award of excellence for its outstanding contribution towards the promotion of Indo-German economic relations, at the 48th annual general meeting. Bajaj Allianz Life Insurance Company Ltd celebrates third anniversary It gives more stress on customer satisfaction. - About Private Life insurance corner 17% of mark share Private Life insurance has managed to corner 17% of mark share in the year 2004 as compared to 9.9%in the last year. Market share of the life insurance corporation, public sector has fallen to 82.7%at the end of July 2004 as compared to 90.1%in the last year.
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The private players have recorded a 193.5% growth in the first four months of the current fiscal. This has helped them to grow 7.4% more market share. During the same period, private player underwrote premium worth Rs954.97 crore as compared to 325.03 crore in the corresponding period last year according to the IRDA information. This indicates that the private player are becoming the flavors of the emerging market, an industry watched said the aggressive marketing of their unit linked policies, where the traditional LIC is lagging behind, has helped the private insurers gain in terms of market share. ICICI prudential is leading the pack of 14 private life insurers, followed by Birla Sunlife, next Bajaj Allianz, SBI Life, HDFC standard life, Tata AIG.
6.10 BAJAJ ALLIANCE AT DAVANGERE:

In the year 2004, June 3rd Bajaj Alliance Insurance company was opened with the proposal by Sri. Siddeshwara Swamy B and he is the satellite branch Manager in Davangere. The man behind the success of Bajaj Alliance in davanagere is Mr. Siddeshwara. He took the first initiative by applying all his strategic thoughts and taking all the risk and pain to convince the company about the potentiality and efficiency and effectiveness of his and his team. Thus Siddeshwara can be called as the main building block of Bajaj Alliance. Location: Bajaj Alliance has been placed in the locational advantage side. This is situated in Shramajeevi complex, P.B. Road, Davangere. This is the only main road of Davangere. Bajaj Alliance Satellite office is well furnished with ACs, furnitures, good ventilation, great ambience and over all a healthy working environment. History:
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At first the company Bajaj Alliance did not have any idea to give the permission to a satellite franchise in Davangere. The man with great dreams and aspirations took the initiative to start up an satellite franchise in davanagere and he along with his capable team of two Sales Team Managers (STMs) and Customer Support Representative (CSR) started Bajaj Alliance in Davangere on 3rd June, 2004. Mr. Siddeshwara Swamy B who is a satellite Manager, Davangere started his business with a initial investment of Rs.5.5 lakhs and with a span of 10 months the team of Mr. Siddeshwara achieved Rs.46,00,000/- as per the amount fixed by the company to all the satellite branches is Rs. 1,00,000,00/. This target achieved was evenly appreciated by all because at the start of any company it is a Herculean task to achieve at least this target the Bajaj Alliance has achieved. The target fixed for the year 2005 is Rs. 4, 50, 000, 00 lakhs for the team in Davangere and all franchise of Bajaj Alliance. Last month of May Mr. Siddeshwara Swamy and his team achieved a target of Rs. 7.5 lakhs and now on with the help of 10 STMs all the eyes are on the team of Mr. Siddeshwara Swamy to watch for the achievement of 4.5 Crores in the financial year of 2005. As history repeats even this target is achievable for Mr. Siddeshwara Swamy and his dedicated team in Davangere. Time and Tide Waits for None Today Bajaj Alliance under the flag ship of Mr. Siddeshwara Swamy having a team enlarged to 10 STMs will achieve than ever.
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7.1 DAVANGERE CITY
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12 A
INFRASTRUCTURE TRANSPORT i) ROAD a) National highways b) State Highways c) Village Roads d) TDB Roads e) Irrigation Dept Roads f) Municipality Roads ii) RAILWAYS 65 kms 303 kms 1783 kms 949 kms 1900 kms 402 kms 47 kms
COMMUNICATION i) Post Offices ii) Telegraphs Offices iii) Telephone Exchange iv) Telephones in us (97-98)
343 071 067 28332
BANKS i) Commercial Bank Branches ii) Rural banks iii) DCC Banks 92 44 14 12 Canara Bank Divisional Office -1 District Office - 1
D E
iv)Urban Cooperative Bank Lead Bank KSFC
EDUCATIONAL INSTITUTIONS 01 02 03 02 01
i) University Post graduate Center ii) MBA Collages iii ) Medical Collages iv) Engineering Collages Diksuchi Study Center, Davanagre. v)Dental collage vi) Ayurvedic Collages
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The davanagere district came into existence on 15th august, 1997. The new district has been created from parts of 3 districts viz. Chitradurga, Shimoga, and Bellary districts. Davanagere, Harihara and jagalur Talukas have come from Chitradurga district, Channagiri and Honnali from shimoga and Harapanahalli Taluka is form Bellary District. The District is located in the center of Karnataka State. The Geographical area of the District is 5.97 Lakh Hectares. The District is bound by Bellary District in the North and North-east & North-west, Chitradurga District in East and Southeast, Shimoga District in the South and Southwest, and Haveri District is in West. The Davanagere Town is the head-quarter of the District and it is the commercial and Educational center the central part Karnataka. The District lies between 14o 13 15 longitudes. The general characteristics of the district are as fallows. A. The physical and geographical features In the district Channagiri and Honnali Talukas are coming under malnad areas which have not summer, pleasant winter and good man soon. Davanagere and harihara Talukas have summer, pleasant winter and average man soon. Harapanahalli and jagalur Talukas have very hot summer, very low rainfall and a pleasant winter. River Tunga Bhadra passes through Honnali, harihara and Harapanahalli Talukas and it is just 14KMs away from the district head quarters. B. DEMOGRAPHIC PROFILE
C. SALIENT FEATURES OF THE DISTRCT LOCATION: Davanagere District is located in the central part of the Karnataka state. It is a big commercial center, well connected between Southern and northern parts of Karnataka.
7.2 PHYSICAL FEATURES:

Davanagere, Harihar and Jagalur Talukas are largely composed of crystallized Schists, granitic gneisses and the newer granites with a few later intrusive basis dykes. The
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schists and their associated rocks constitute a portion of the Dharwar system and are designated as Chitradurga chickkanayakanahalli schists belts. Channagiri & Honnali Taluk consists of most ancient rock formations of Archaean complex, which are composed of chiefly of 2 systems. The Dharwar schists forming a prominent belt form west to east and occupying a larger area. In this highly altered sedimentary rock such as quartz, conglomerates, lime stone, shales and banded iron stones are found. Gneisses systems consist of granite and granitic gneissic forming rocks of different structure, texture, color and other similar characteristics. Harapanahalli Taluk consists mainly of Archaean complex composed of crystalised schists, epidio rates, granitic gneisses and later granites. Basic and acidic dykes are not uncommon. The crystallized and epidiorites of the Dharwar system are also found. In the Taluk soap stone, quartz, bracciated quartz, low grade manganese ore also found. In this Taluk small out-crops of high calcium of lime-stone also occur. Rivers Tunga Bhadra River flows in Honnali, Harihara and Harapanahalli Talukas. This sacred river is the main tributary of Krishna River, is formed at Kudli in Shimoga district by the confluence of the Twin Rivers Tunga and Bhadra. Sasalahalla, the ranges of hills to the west of Holalkere Taluk. This stream is perennial in Davangere and Harihara Taluk. This stream joins Tunga Bhadra River near Harihara Town. Climate and Rainfall The climate in the district is marked by hot summer months upto 42 o centigrade and pleasant winter upto 120 centigrade. The relative humidity is high during June to November. In the rest of the year the relative humidity is low and will come down to less than 30% in the afternoons. The District receives a rainfall of 547 mm and on an average 48 days it receives rains.
Occupation Structure
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The population in the district comprises 6.62 lakhs of total workers and 8.96 lakh of nonworkers. The main occupation is agriculture. Roads All 6 Taluka Head Quarters of the district are connected by National Highways. Railways The district has 47 KMs of Broadgauge Railways line, which connects to Bangalore, Mysore, Hubli, Bombay, Poona, Jodhpur, and Ajmer.
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7.3 SWOT ANALYSIS OF THE DISTRICT

STRENGTH OF THE DISTRICT 1. Commercial Capital Davangere is the commercial capital of the Central Part of Karnataka. It is having very big commercial base. 2. Reputed Technical Institutions Davangere is having 4 Engineering colleges, 1 GT & TC, 5 polytechnics of all the discipline, 7 ITI and 1 Agricultural Research centre has very good backbone of technical man power for the industrialization. 3. Strong banking network Davanagere having full-fledged commercial banks, rural banks, KSFC, KICB, and Urban co-operative banks will channelise the easy credit flow to the industries. 4. Nature of natural resources :Davangere district is agriculturally potential area where in different agricultural produces are abundantly available to promote agro based industries. 5. Strong communication network Davangere district is having very good communicability of setting up software Technology Park and promotion of IT enabled services. 6. Strong Capital base Davangere District is having good no. of capitalists who can afford to set up potential industries.
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WEAKNESS OF THE DISTRICT 1 lake of initiatives and entrepreneurship resulted in the poor industrialization of the District. 2 the closure of five textile mills including Davanagere cotton mills in the District resulted in the feareness to start the industries OPPORTUNITIES IN THE DAVANAGERE 1 Agro based industry like starch from maize, Idli Rava from rice can be promoted based on the agricultural and horticultural resource. 2 To be in thee central part Karnataka, where there is good floating population, printing and stationery units can be promoted. 3 Agricultural implements, tractor trailers and supporting general engineering can be promoted. 4 Having good communication network and technical education, IT sector and IT enabled services like Medical transcription, global positioning systems and video conferencing can be promoted.
THREATS IN THE DISTRICT 1. The industrialization of the district may affect ecology and environment of the District. 2. Water pollution and air pollution may increase.
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8.1 Introduction: Policies is a document, which contains terms and conditions of contract of insurance. Insurance products mean insurance policies. The policy also includes date of commencement, date of maturity and sum assured etc. 8.2 Players in the Life Insurance Market Along With Their current Market Share
Companies LIC ICICI Prudential Birla Sun Life HDFC-Standard Life SBI Life Insurance Allianz Bajaj Tata AIG Max New York Life OM Kotak Aviva ING Vysya AMP Sanmar Met Life India Source: Google.com
Market Share 87.04 4.01 2.40 1.12 1.05 .96 .96 .70 .68 .41 .39 .15 .12
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Graph 1: Market Share
Market Share
LIC ICICI Prudential Birla Sun Life HDFC-Standard Life SBI Life Insurance Allianz Bajaj Tata AIG Max New York Life OM Kotak Aviva ING Vysya
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8.3 PRODUCT PROFILE
8.3.1 Individual Plans
> UNITGAIN A Unit Linked Plan > UNITGAIN SP A Sinlge Premium Unit Linked Plan > INVESTGAIN An Endowment Plan > CHILDGAIN Children's Policy > CASHGAIN Money Back Plan > SWARNA VISHRANTI Retirement Plan > UNITGAIN PLUS Unit Link plan with higher allocation > RIDERS UNITGAIN PLUS While the basic life insurance > UNITGAIN EASY PENSION A Plan that enables you retire with laughter lines.... not worry lines > SWARNA RAKSHA-ROC A plan that provids you with regular income ... for life.
> RISK CARE Pure Term Plan > TERM CARE Term Plan with Return-of-Premium > LIFETIME CARE Whole Life Plan > SAVE CARE ECONOMY SP Single Premium Endowment Plan > LOAN PROTECTOR A Mortgage Reducing Term Insurance Plan > KEYMAN INSURANCE A Promising Business Opportunity > UNITGAIN PLUS SP A Sinlge Premium Unit Linked Plan > LIFELONG GAIN PLAN A lifetime of security for your family > UNITGAIN LIFE PENSION A Plan that enables you retire with laughter lines
lines.... not worry
Life Long Gain Plan A lifetime of security for your family A whole of life fund based plan that provides a regular income for you and your family. This is the perfect plan to take care of ongoing and future family expenses like debts, expenses on children, living expenses, etc; as it comes with a guaranteed survival benefits that pays 3% of the Sum Assured every year after the premium payments are over*.
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Loan Protector A Mortgage Reducing Term Insurance Plan This is the perfect plan to protect the family from the repayment liability of outstanding loans, in the unfortunate case of death of the loanee. There is also an option to cover the co- applicant of the loan at a very nominal cost under this plan... Child Gain Children's Policy Right from providing for your child's education to securing a bright future, this plan is tailor- made to suit your child's needs... Unit Gain SP A Single Premium Unit Linked Plan This plan enables you to protect your loved ones, while making your money grow faster. It provides you the option of allocating 100% of the single premium to purchase units in any / all of the 5 funds available with us...
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Unit Gain Plan A Unit Linked Plan This amazingly flexible Unit linked life insurance plan provides you the opportunity to participate in market linked returns while enjoying the valuable benefits of life insurance... . And then your nurture it with great care. With our vast insurance plans secure your most valued possessions, your home, against all risks... Cash Gain Money Back Plan This is the only money back plan that offers quadruple protection, going upto 4 times the basic sum assured, and a family income benefit... Swarna Vishranti Retirement Plan In addition to life insurance and attractive tax benefits, this plan enables you to make adequate provisions for your years after retirement as well... Invest Gain An Endowment Plan This savings plan combines high protection (up to quadruple cover) with a unique family income benefit... Save Care Economy SP Single Premium Endowment Plan A single premium investment plan for 10 years, which provides the cover along with growth in savings.
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Risk Care Pure Term Plan This plan enables you to provide financial security to your loved ones at the lowest possible cost... Term Plan with Return-of-Premium An economic way of providing life cover, this plan also ensures the return of all premiums at the time of maturity... Lifetime Care Whole Life Plan This whole life plan provides survival benefits at the age of 80 thereby making sure you are financially secure at the time when you need it the most... KEYMAN INSURANCE A Promising Business Opportunity Keyman Insurance provides you with the unique opportunity to protect your business against the unfortunate loss of key people, while giving you valuable tax advantage and a lovely tool to help employee loyalty too... UnitGain Plus The thumb rule for buying insurance is that your insurance needs are minimal in your early earning years, increase with added responsibilities (Marriage, children, loans etc.) and taper off by the time you retire. It is difficult to find a single insurance plan that can take care of all your changing requirements in life additional protection, more money to invest, sudden requirement of cash or a steady post-retirement income...
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UnitGain Plus SP The plan that takes care of your insurance and investment requirements The thumb rule for buying insurance is that your insurance needs are minimal in your early earning years, increase with added responsibilities (Marriage, children, loans etc.) and taper off by the time you retire. It is difficult to find a single insurance plan that can take care of all your changing requirements in life additional protection, more money to invest, sudden requirement of cash or a steady post-retirement income.... Riders UnitGain Plus Bajaj Allianz Additional Benefits Additional protection for you and your family available with UnitGain Plus... UnitGain Easy Pension Unit Linked Retirement Plan without life cover Bajaj Allianz UnitGain Easy Pension, is a plan that helps you take control of your future and ensure a retirement you can look forward to. This is a regular premium investment linked deferred annuity policy. Available as: UnitGain Easy Pension Regular Premium & UnitGain Easy Pension Single Premium. UnitGain Life Pension UnitGain Life Pension: Unit Linked Retirement Plan with life cover Bajaj Allianz UnitGain Life Pension is a plan that helps you take control of your future and ensure a retirement you can look forward to. This plan has been designed to take care of your retirement and insurance needs, thereby providing you with a comprehensive solution for a lifetime. Available as: UnitGain Life Pension Regular Premium & UnitGain Life Pension Single Premium.
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8.3.2Groups
Swarna Raksha ROC A fixed annuity for life will be payable, and on death of the annuitant, the nominee will be entitled to receive an amount that is equal to the lumpsum used to purchase the annuity.
>GROUP Available for
CREDIT Employer Employee
SHIELD Groups LIFE Groups SCHEME
and Non Employer-Employee Groups > GROUP TERM Available for Employer Employee LIFE and Non Employer-Employee Groups > GROUP TERM
in lieu of EDLI (Employees Deposit Linked Insurance) > GROUP SUPERANNUATION SCHEME > GROUP GRATUITY CARE SCHEME heartening
Giving your Employees and their families the reassurance of your care and financial security
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GROUP SUPERANNUATION SCHEME Assure your Employees a financially secured, stable and independent Post retirement life Group Superannuation Scheme will be established under an irrevocable trust, with trustees appointed by Company taking care of the administration. GROUP CREDIT SHIELD Available for Employer- Employee Groups and Non Employer- Employee Groups This scheme insures the loan amount outstanding in the account in case of premature death or disability... GROUP TERM LIFE Available for Employer- Employee Groups and Non Employer- Employee Groups This scheme covers the members of an organization against the risk of premature death or disability... GROUP TERM LIFE In lieu of EDLI (Employees Deposit Linked Insurance Scheme) This scheme is a better alternative to the Employees Deposit Linked Insurance Scheme, 1976, under Sec 17 (2) of the Employees Provident Fund and Miscellaneous Provisions Act...
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GROUP GRATUITY CARE Giving your Employees and their families the heartening reassurance of your care
and financial security with flexibility like never before. 8.3.3 CORPORATE PRODUCTS: Group Gratuity Care is a Multi Featured Employee Welfare Scheme, which addresses your Gratuity liability We have a range of Insurance Plans to suit your needs be it Individual or Corporate. Plans to suit your health, travel, vehicle and also your dream home. In addition to this we have plans to protect you against your profession. We have also several tailors made insurance solutions to suit the needs of your Business Unit not only your Assets but also your Human Assets. Asset Insurance
You build your dream homes to house your loved ones
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Health Insurance
Now you can protect yourself from costly medical bills in case of any emergency. Our range of health plans covers you and your family against expensive medical care. Life Insurance
The thumb rule for buying insurance is that your insurance needs are minimal in your early earning years, increase with added responsibilities (Marriage, children, loans etc.) and taper off by the time you retire. It is difficult to find a single insurance plan that ...
Travel Insurance
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While traveling alone, or with friends and families, for business or for pleasure you are exposed to many travel related risks. While on the move, far from home, our Travel Companion will give you total protection from all risks... Investment & Savings
Invest Gain is a specially designed plan that offers a unique combination of benefits to help you develop a sound financial portfolio for your family. The most significant is the family Income Benefit
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Retirement Solutions
How you see retirement? Solution that years golden years. Corporate Insurance: : your are
do your Bajaj
Allianz Retirement ensures olden your
You put your hard earned money into your business. We have a range of products to secure your business against all risks. Specialty Lines
In order to take care of special needs like Aviation, Marine Hull, Project Insurance, Freight Forwarders, Port Liabilities, Film Insurance, Credit Insurance, Event Insurance,
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Youre Employees
Your employees your CI, Group Travel, Workmen's Compensation... Office are strength;
you can take care of your employees with our Group policies like PA, Group HG, Group
Your office is a hive of activity. Major investment, time and effort goes into building up your business. Our office package is the best way to protect your business from loss due to unexpected contingencies... Manufacturing Unit
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While going about your daily business activities, dangers could be lurking close to you. Machinery breakdown, Fire, Earthquake, etc. could severely affect your Assets and profits. Protect your manufacturing units and your profit with our range of need-based policies..... 8.4Customized product . In the current year they launched innovative and need-based products and using IT infrastructure to drive our growth strategy. The company attributed its growth to its increased focus on customers needs and has launched 11 new products so that they can choose the right product for them. The company garnered nearly 60% of the premium income from its newly launched Unit-linked plan, UnitGain in the last 3 months of the financial year. UnitGain Plus With Bajaj Allianz UnitGain Plus, you can invest in one life insurance plan that can take care of all your changing requirements throughout your life. This plan has been designed to provide you with maximum flexibility, so that you do not have to worry about your changing needs. Bajaj Allianz UnitGain Plus offers the unique option of combining the protection of life insurance with the attractive prospects of investing in securities. You can choose the investment funds you want to invest your money, providing you with an opportunity to
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have a direct stake in the performance of the financial market. You also benefit from attractive tax advantages and can protect your loved ones against unfortunate events. How does the plan work? The premiums paid are invested in fund/funds of your choice (depending on the allocation rate) & units are allocated depending on the price of units for the fund/funds. The value of your policy is the total value of units that you hold in the fund/funds. The insurance cover and administration charges are deducted through cancellation of units. The Fund Management Charge is priced in the unit value. Minimum Sum Assured = 5 times the annual premium. Maximum Sum Assured = y times the annual premium The five funds offered are as under:
a.
Equity Index Fund The investment objective of this Fund is to provide capital appreciation through investment in equities. The Plan is expected to match the returns given by Nifty Index of the National Stock Exchange. This fund will invest at least 85% in equities and maximum 15% in debt & cash. Equity Plus Fund - The investment objective of this Fund is to provide capital appreciation through investment in select equity stocks that have the potential for high capital appreciation. This fund will invest at least 85% in equities and maximum 15% in debt & cash instruments. Debt Plus Fund - The investment objective of this Fund is to provide accumulation of income through investment in high quality fixed income securities like G-Secs, and corporate debt rates AA and above. This fund will be invested fully in Debt Instruments & money market instruments.
b.
c.
d.
Balanced Plus Fund This fund is a fund of funds. The investment objective of this fund is to provide a balanced investment between long-term capital appreciation and current income through investment in the Units of our Equity index and Debt plus funds. The balanced fund will invest 30% to 50% in the equity index fund and 50%to 70% in the debt plus fund.
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e.
Cash Plus Fund The investment objective of this Plan is to have a fund that guarantees invested capital through investments in liquid money market and short term instruments like Commercial Papers, Certificate of Deposits, Money Market Mutual Funds, and Bank FDs etc. The price of units in this fund is guaranteed not to go down.100% of this fund will be invested in money market instruments. The price of the units in this fund is guaranteed never to go down.
Flexibility to manage your investments. We offer you the flexibility to manage your investments. Initially, you can allocate the premium into the 5 funds that are available in a proportion of your choice. Subsequently, depending on the performance of funds, you can switch between funds and also change the allocation of premium to various funds. We allow you three free switches every policy year subject to a minimum switching amount of Rs. 5,000/- or the fund value, whichever is lower. You can also change the proportion of premium allocation to various funds at each policy anniversary. Unmatched Flexibility- to suit your changing requirements Bajaj Allianz UnitGain Plus offers you unmatched flexibility to suit the policy according to your requirements.
Flexibility In Premium payment: You have the flexibility to decide how long you wish to pay the premiums and when you want to cash out the policy benefits. You may choose to cash out the policy benefits at one shot or do it as and when you require cash through partial surrender of units.
Flexibility - to Increase the Sum Assured: You have the option to increase the Sum Assured without any medical tests every 3rd year upto 4 times. The quantum of increase would be 25% of the original sum assured or Rs. 1, 00,000/- whichever is lower. If you do not exercise an option when it is due, it cannot be carried forward. This benefit will be available after age 18 and upto age 45. If the age is less than 18 at the start of the policy, all 4 increments will be
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available from age 18. Apart from exercising the options to increase the Sum Assured without medical tests, you can increase the Sum Assured anytime, subject to medical underwriting (available upto age 60). In either case, the sum assured after increase must be equal to or less than the maximum sum assured available for the premium level chosen. You should give notice of increase in death benefit 15 days before the yearly policy anniversary.
Flexibility - to Decrease the Sum Assured: You can decrease the Sum Assured (in multiples of 1000) at any time to suit your changing needs. The Sum Assured, after decrease, must be at least 5 times the annual premium. After a decrease subsequent increases will be subject to underwriting.
Flexibility - to pay top ups: You may have received a bonus or some lump sum money. You can use that to increase your investments in your policy. 98% of any amount paid as top-up is allocated to your funds.
Flexibility to increase the level of Regular Premium Payment: Your earnings grow over time, and so does your savings potential. With Bajaj Allianz UnitGain Plus, you have the flexibility to increase your regular premium amount at any time.
Assured Protection even if you miss payment of your premiums: Bajaj Allianz UnitGain Plus provides you with the unique feature of continued protection even if you forget to pay your premiums. After payment of 3 full years premiums, when premiums due are not paid, the policy will stay in force with full benefits so long as there are enough units available for charging the Cost of Insurance and additional benefits selected after deducting all applicable charges.
Important Details of the Bajaj Allianz UnitGain Plus 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. All additional benefits are available till age 65.
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Premium Payment Mode For your convenience, we have provided 3 regular premium payment modes that can be Yearly, Half-Yearly, and Quarterly. We also offer a monthly premium payment mode with salary deduction schemes. In addition, you also have the option to pay top-ups to increase your investments. The minimum premium is Rs. 15,000/- for the Annual Mode, Rs. 7,500/- for Half Yearly, Rs. 3750/- for Quarterly, and Rs. 1,500/- for the Monthly Mode. The minimum top-up premium is Rs. 5,000/-. Partial and Full Withdrawals UnitGain Plus offers you the full flexibility of full as well as partial withdrawals by surrendering units, anytime after 3 full years premiums are paid. The surrenders are paid out at the value of units, and there is no surrender penalty on partial or full withdrawals after full 3 years premiums are paid. 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. Benefits Death Benefit Cash withdrawal option UnitGain Plus SP The thumb rule for buying insurance is that your insurance needs are minimal in your early earning years, increase with added responsibilities (Marriage, children, loans etc.) and taper off by the time you retire. It is difficult to find a single insurance plan that can take care of all your changing requirements in life additional protection, more money to invest, sudden requirement of cash or a steady post-retirement income. Diksuchi Study Center, Davanagre.
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With Bajaj Allianz UnitGain SP, you can invest in one life insurance plan that can take care of all your changing requirements throughout your life. This plan has been designed to provide you with maximum flexibility, so that you do not have to worry about your changing needs.
Bajaj Allianz UnitGain SP offers the unique option of combining the protection of life insurance with the attractive prospects of investing in securities. You can choose the investment funds you want to invest your money, providing you with an opportunity to have a direct stake in the performance of the financial markets. You also benefit from attractive tax advantages and can protect your loved ones against unfortunate events. The Bajaj Allianz UnitGain SP Plan The Bajaj Allianz UnitGain SP comes with a host of features to allow you to have the best of all worlds Protection and Investment with flexibility like never before. Some of the key features of this plan are:

Convenient single premium payment, with option to pay top-ups later. 100% of the single premium/top-ups are allocated Guaranteed death benefit Choice of 5 investment funds with flexible investment management: you can switch between funds at any time. Attractive investment alternative to fixed-interest securities Provision for full/partial withdrawals any time after the single premium is paid. Unmatched flexibility to match your changing needs.
The five funds offered are as under: a. Equity Fund This fund provides the scope of high appreciation over a long term. The fund will primarily invest in equities & is expected to match returns given by NSE NIFTY. This fund will invest at least 90% in equities and maximum 10% in cash.
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b. Equity Gain Fund - The investment objective of this Fund is to provide capital appreciation through investment in select equity stocks that have the potential for high capital appreciation. This fund will invest at least 90% in equities and maximum 10% in debt & cash instruments. c. Debt Fund - This fund provides the scope for steady returns at low risk through investment in high quality fixed income securities. This fund will be invested fully in debt instruments. d. Balanced Fund The balanced fund is primarily for those who prefer a mix of steady returns & growth. The balanced fund will invest 30% to 50% in the equity fund and 50%to 70% in the debt fund. e. Cash Fund The cash fund will invest conservatively in money market & shortterm investments to ensure that return on investments shall never be negative. 100% of this fund will be invested in money market instruments. The price of the units in this fund is guaranteed never to go down. The investment advice on the Equity Gain Fund will be provided
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8.5 DISRIBUTION CHANNELS Of the four elements of marketing mix viz. products, price, promotion and placement or distribution; distribution channel is the most important and most powerful element. The primary function of this element is to find out appropriate ways through which goods or services have to be moved from the primary producer to the final consumers. The success or failure of the company depends ultimately upon the efficiency or inefficiency of its channels of distribution. The word channel is derived from a French word canal. In the field of marketing, distribution channel is defined as a pathway composed of intermediaries or middle men who perform such functions as required to ensure smooth and sequential flow of goods and services from producers to final consumers with a view to achieve the marketing objective of the company. Producers normally use a number of marketing intermediaries for moving the products or services to the ultimate users. There are different kinds of intermediaries called by different name such as: sole selling agents, marketing agents, dealers, retailers, authorized representatives, brokers, commission agents, jobbers etc. Distribution channel is concerned with various activities such as movement and storage of goods, the legal, promotional and financial activities involved in the transfer of ownership of goods from producer to final consumers or users. A channel of distribution for a product is thus, a route taken by the title of the goods moving from the producers to the final consumers or industrial users. 8.5.1 ROLE AND IMPORTANCE OF DISTRIBUTION CHANNELS A distribution channel plays a very decisive role in the successful marketing of most of the goods, especially consumer goods. They perform a large variety of functions in the field of marketing. The importance of distribution channels can be understood clearly by analyzing the functions performed by them.
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1. 2. 3.
The distribution channels bridge or link the manufacturers and the final consumers or industrial users effectively and economically. They break the bulk orders and cater to the small size requirements of the individual consumers. They assemble a large variety of goods manufactured by different manufacturers and required by the people, store them intact and sort out them into small lots or packages that are convenient to the small consumers.
4.
The channel intermediaries perform physical handling activities such as transportation, warehousing, inventory, management etc. They also finance the inventory, undertake the risk and expenses of carrying stock, arrange for storage of goods systematically and supply the goods to the buyers timely.
5. 6.
The intermediaries many times provide credit facilities to the buyers and make advance payments to the manufacturers against their orders. The intermediaries provide specialized services of personal selling. They help in introducing new products in the market, promote the sale of these products through their word of mouth communication and also provide pre-sale and after-sale services to the consumers.
7.
They also provide market intelligence and feed back to their suppliers including the producers. The intermediaries are able to do this job authentically as they are in constant and direct contact with the customers who actually use the goods.
8. 9.
The intermediaries assist in arriving at the price level acceptable to the producers as well as the final consumers or users. The intermediaries, in certain cases, go far beyond their conventional functions of distribution or distribution plus service. They accept the responsibility for the transfer of technology. For ex, they guide the farmers as to the applicability of science and technology in the field of agriculture.
10. 11.
The intermediaries go near the consumers, study their requirements, guide them in their buying decisions and render satisfactory service to them. The channel decisions have a vital impact on the decisions in all other area of marketing. Channel decisions determine the size of the sales force, type of sales forces, the
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size and complexity of the marketing department etc. Once the company has developed a particular network of intermediaries, it cannot change overnight the distribution system. 8.5.2 DISTRIBUTION CHANNEL POLICY AND STRATEGIES We have discussed above the factors governing the choice of distribution channels and choice of intermediaries. These factors give a general idea of the channel to be chosen and the intermediates to be selected. But all these factors are not static. They change time to time and some times they become dangerously dynamic. Therefore the company must constantly review its channel policies and strategies and make sure that they are not only adequate but are also best in the situation. Because of these things, we have to conclude that the marketing policies and strategies can never be permanent. The final test of a proper distribution policy and strategy must be the effectiveness and economic in serving the customers and in achieving the objectives of the organization i.e. consumer satisfaction and profit maximization. Distribution Channels

Agency Channel through Insurance Consultants Corporate Agents & Brokers Banc assurance Group Worksite Marketing Financial Service Consultants
Introduction
The age of the respondents indicates that, large portion of the respondents Were belongs to 40-50 age group, this age group people will cover under insurance. Occupation wise, large portion belong to private and government employees. The type of family here is divided family, very small portion belong to HUF family. Large portion of the respondents having 5000-10000 income level.
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As per survey number of earning members in the family is one and few are responded as three members. All most all respondents invest >25% of their total income in savings, only 10% of the people invest <25%. Familiarity of the existence of private insurance companies is 50-50 i.e. 50% of the respondents dont know the existence of private insurance companies. Type of the policies preferred by the respondents is High premium-High risk-High return i.e. money back policies. Pattern of savings invested by the respondents is, banks, LIC, others. And factors influenced to invest in insurance is first, tax benefit, agents request and risk coverage.
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9.1. Age of the Respondents: Understanding the age group dynamics plays a vital role in understanding the needs and interest of investment pattern which in turn can be used for drafting new policies.
Table No.9.1 Showing the different age group of the respondents

source: survey data NO. OF RESPONDE NTS PERCENTAGE 7 17.5 11 27.5 16 40 6 15 40 100
Tabulation Analysis:
SL NO. 1 2 3 4
AGE 20-30 30-40 40-50 50-60 TOTAL
1. 1. 1. 1.
In the above table it shows that 40% of the people insured fall into the age group of 40-50. 2. 7 % are under 20-30. 3. 11% under 30-40. 4. 6% under 50-60. Inference: 1. Its evident that people in nearing retirement tend to think more of risk coverage and can be addressed as major target among whole population. 2. People of other age groups can be targeted using this prime target for exploring the remaining segments
chart showing respondents age

50 40 30 20 10 0
Source: Table No.1

40 27.5 17.5 15
t d n p s e r f o %
20-30
30-40 Age
40-50
50-60
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9.2. OCCUPATION OF THE RESPONDENTS:
Occupation plays a vital role in investment towards savings. A stable source gives people more options on saving TABLE NO .9.2
Showing the distribution of Respondents on the basis of their occupation

Occupation Government employee Private employee Business Agriculture Others Total
Source: survey data
Respondents 13 13 6 0 8 40
Percentage 32.5 32.5 15 0 20 100
Tabulation Analysis: 1. In the table it is clearly shows that large portion of the respondents were private and government employees i.e., 33% and 32% respectively, 2. 15% belongs to business. 3. 20% belongs to others.
Inference:
1. Regular salaried employees can be targeted as they have a fixed income and can easily plan investments. 2. Regular income employees form major chunk in the survey and population which means market potentials are high
Chart showing different occupations of the respondents

20% 13 0% 15%
Government employee Private employee Business Agriculture Others
source : Table No.2 33%
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9.3 FAMILY DETAILS OF THE RESPONDENTS:

Responsibilities grow with the growth in the family, so do the security needs of people. famil
TABLE NO. 9.3

Showing distribution of respondents on the basis of their type if family Type of family HUF Individual Total
Source: survey data
Respondents 6 34 40
Percentage 15 85 100
Tabulation Analysis: 1. In the above table it is clearly shows that large portion of the respondents were in the individual family i.e. 85%. 2. 15% belongs to HUF group. Inference: 1. Majority families being nuclear we can device more policies for small families. 2. Joint families can be targeted for group insurance. 3. Non-HUF families will offer more investment as expenditures are less and awareness can be easily created.
chart showing type of family

15 15 10 5 0 1 t d n p s e r f o % 2 Type of family 6
Source: Table No.3
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9.4 MONTHLY INCOME OF THE RESPONDENTS: It is necessary to study the income of level of the respondents, being how much the Respondents earn and how much they invest in insurance.
TABLE NO. 9.4

Showing the distribution of the respondents on the basis of their monthly income Monthly income >5000 5000-10000 10000-15000 15000 & above Total
Source : survey data
Responden ts 5 20 6 9 40
Percentage 12 50 15 23 100
Tabulation Analysis: 1. 50% of the respondents belong to 5000-10000 monthly income. 2. 22% belongs to above 15000. 3. 15% were belongs to 10000-15000. 4. 13% were belongs to > 5000 income level. Inference: 1. Most of the population falls in the category of 5000 to 10,000 which is middle class and these people need low investment plans which should be devised wisely for more returns and focused on savings for short terms
chart showing income level of the respondents
12% 23% 50% 15%

Source: Table No.4
>5000 5000-10000
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9.5 NUMBER OF EARNING MEMBERS IN THE FAMILY: It is necessary to study the No. of earning members the family, being more number will lead to more income in turn more savings and more investment.
TABLE NO.9.5
Showing number of earning members in the family. Earning members Respondents 1 27 2 11 More than 2 2 Total 40
Source: survey data
Percentage 68 27 5 100
Tabulation analysis: 1. 68% respondents say earnings members in the family are one. 2. 27% say two members. 3. 5% say more than two Inference: 1. Single earning member families need lesser investment and better coverage. 2. Multiple earning members can be targeted for higher risk policies and bigger benefits
chart showing earning member in the family
80 70 60 50 40 30 20 10 0
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27 5 Earn = 1 Earn =2 Earning members Earn >2
t d n p s e R f o %
Source: Table No.5
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9.6 TOTAL PERCENTAGE AGE OF MONTHLY INCOME INVESTED: It is necessary to study the percentage age of invested, monthly income savings and investment it will help to study the ability of savings finally it helps to analyze the interest of the people to invest in insurance.
TABLE NO. 9.6

Showing Percentage of income invested Percentage of income invested > 25 25-50 Total Source: survey data Respondents 36 4 40 Percentage 90 10 100
Tabulation Analysis: 1. Large portion of the respondents i.e. 90% are investing less than > 25% of their income.
2.
Only 10% of the respondents were invest between 25%-50%.
Inference: 1. Many respondents invest less money which can be taken into consideration for creating policies that have lesser premiums and are long term for better benefits.
chart showing %of income invested in the income

10%
> 25 25-50 90%
Source: Table No.6
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9.7 FEMILIARITY OF PRIVATE INSURANCE COMPANY: It is necessary to know the familiarity of private insurance company because private insurance companies have recently emerged and many people dont know their existence. So it is necessary to study the familiarity of private insurance company.
TABLE NO. 9.7

Showing distribution of respondents on the basis of familiarity and non-familiarity of private insurance company. Awareness Familiar Non-familiar Total
Source: survey data
Respondents 21 19 40
Percentage 52 48 100
Tabulation Analysis: 1. 52% of the total respondents were aware of existence of private insurance co. 2. 48% are not aware of such. Inference: 1. Almost half of the population is not aware of the private sector, which indicates a high potential to tap this population. 2. People aware of private sector need to be educated of the benefits to market more and develop investment plans for them.
chart showing familiarity & non familiarity of private insurance companies
Familiar Non-familiar
48%
52%
Source: Table No.7
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9.8. TYPE OF INSURANCE POLICY, WHICH RESPONDENTS PREFER:
It is necessary to study because different respondents prefer different type of policies. TABLE NO. 9.8 Showing distribution of respondents on the basis of likes of policies. Type of policy Respondents Low Premium - High Risk - Low Return 5 Medium Premium - High Risk -Low Return 13 High Premium - High Risk - High Return 22 Total 40
Source: survey data
Percentage 13 32 55 100
Tabulation Analysis: 1. Large portion of the respondents prefer High premium-High risk-High return i.e. (Money back policy) i.e. 55%.
2.
32% prefer Medium premium-High risk-Low return i.e. (endowment policy).
3. 13% prefer Low return-High risk- Low return. Inference: 1. Based on income, preference and willingness to invest policies that can return high with suitable risk and premium factors can be re-drafted for targeting larger proportions of the population Chart showing type of policy
13% Low Premium High Risk - No Return Medium Premium - High Risk -Low Return High Premium High Risk - High Return
c 54% 33%
Source: Table No.8
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9.9 PATTERN OF SAVINGS INVESTED IN DIFFERENT INVESTMENT: It is necessary to study the pattern of investment because to know which is the popular investment made to the investor.
TABLE NO. 9.9 Showing different pattern of investments

Savings invested Bank Mutual Funds Government bonds Shares LIC Private insurance Others Source: survey data No. of respondents 32 5 10 5 34 15 5 % 80 12 25 12 85 38 12
Tabulation Analysis: 1. large portion of the respondents invested in LIC i.e. 34%. 2. 32% in bank deposits. 3. 10% in government bonds.
4. 5.
5% mutual funds shares. 1% in private insurance.
Inference: 1. Awareness campaigns and promotional activities can fetch more clients and can improve the business
Chart showiing different kinds of investments
40 30 20 10 0
32 10
34 15 5 5
t d n p s e r f . o N
Kinds of investments
Source: Table No .9
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9.10 FACTORS INFLUENCE TO THE RESPONDENTS TO INVEST IN THE LIFE INSURANCE: It is necessary to study what factors would influence the investors to invest in life insurance and giving more important to those factors there by attracting the investors. TABLE NO. 9.10 Showing different influenced to invest in life insurance. Factors Agent Saved money Risk Tax benefit High yield Advertisement Source: survey data No. of Respondents 21 18 20 26 5 0 % 53 45 50 65 12 0
Tabulation Analysis: In the above table it is clearly indicated that Tax benefit play a very important factor, next important factor is Agents, next Risk chart showing factors infuenced to invest
0% 6% 29% 23%
Agent Saved money Risk Tax benefit High yeild Advertisement
20% 22%
Source: Table No.10
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10.1 Survey findings

Large portion of the respondent belong to the age group of 40-50: 40% of the people insured are under the age group of 40-50, 7 % are under 20-30, 11% under 30-40, 6% under 50-60, 40-50 age group people are more risk covered. Under the age of 40-50 requirement of risk coverage is more. Among all respondents most of them belongs to the private and government employees: Clearly shows that large portion of the respondents were private and government employees i.e., 33% and 32% respectively, 15% belong to business, and 20% belongs to others. Large portion of the respondents were from divided family: It is clearly shows that large portion of the respondents were in the individual family i.e. 85% of the peoples are non-HUF and only 15% belongs to HUF group. So it is clear that HUF families are less, so by keeping this in mind policies should be framed. 50% of the respondents were belongs to the Rs5000-10000 monthly income group: It is clearly shows that 50% of the respondents were belongs to 5000-10000 monthly income 22% belongs to above 15000, 15% were belongs to 10000-15000 and 13% were belongs to > 5000 income level More respondents answered that earning members in the family is only one: It is clearly shows that 68% respondents says earnings members in the family are one, 27% says two members and only 5% says more than two
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Large portion of the respondents were invest >25% of the monthly income is invested savings: It is clearly shows that out of total Respondents, large portion of the respondents i.e. 90% are investing less than > 25% of their income and remaining 10% of the respondents were invest between 25%-50%.
Less awareness of existence of private insurance companies: It is clearly indicated that 50% of the total respondents were aware of existence of private insurance co, and remaining 50% are not aware of such.
High premium-High risk-High return policies are proffered by the respondents : Type of policies, which were respondents, prefer. Large portion of the respondents prefer High premium-High risk-High return i.e. (Money back policy) i.e. 55% prefer and 32% prefer Medium premium-High risk-Low return i.e. (endowment policy) and remaining 13% prefer Low return-High risk- Low return.
All most all the respondents were already invested in Bank deposits,LIC and others: It is clearly indicates that the large portion of the respondents were invested in LIC i.e. 34%, 32% in bank deposits, 10% in government bonds, 5% mutual funds shares and 1% in private LIC.
Tax benefit is the main factor which influenced the respondents to invest and next factor is the agents of life insurance: It is clearly indicated that Tax benefit play a very important factor, next important factor is Agents, next Risk
10.2 Suggestions
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1.
Private insurers should assure the policy holders: Insurance company should assure to the policyholders that their investments will be safe. And company should concentrate on attracting the people through media with advertisements designed to create awareness and knowledge of benefits in savings
2. Many respondents prefer money back policy: Many people prefer high premium high risk. High return policies, so company should introduce such kind of policies, in this some people prefer medium premium medium risk medium returns. Policy makers must indulge into providing policies that cater to the ever changing Indian economy and should provide platforms on which every income group can invest 3. Concentrate on new and young employees: Most of the middle aged people have already invested. The prime focus for designing policies can be on the younger members of the population who are yet to be tapped.
4.
Conduct customer and public education program: The company should educate the people by conveying the features and benefits of the insurance policies.
5. Give proper training program to agents: Agents are playing a vital role in the marketability of the life insurance products, so it is necessary to give proper training and guidance to agents (motivated sales team should be maintained). They can also be used as a feedback system for devising new policies based on their market knowledge. Agents can be the most vital elements in this service sector. 6. Conduct awareness program and give more advertisements:
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At the time of survey many people are unaware of Bajaj Allianz Limited Company so it is essential to give advertisements to increase the awareness about the Bajaj Allianz Insurance companys facilities and policies to population.
7.
Create strong positive attitude towards private insurance company: Since LPG is not a wholehearted welcome in India, private players need to create enormous publicity about the reliability and credentials of their existence.
8. Convey the message of safety of their premiums: Convince and convey the message of safety and security of their premium amount paid to the private insurance company by explaining functions of IRDA.
9.
Recent presence Davangere city urges for more aggressive marketing: In Davangere the company has entered recently only so people are not aware of it so please create awareness through advertisements in print media and TV/Radio.
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10.3 Conclusion
In these days insurance sector has become necessary part in every bodys life because it gives many benefits to the individual in their life, by covering temporary needs regular savings, control over future, etc.. Maximum number of respondents have given negative response towards private limited companies, because of new existence, lack of awareness, less safety. So it is very necessary to create awareness about Bajaj Allianz company. Now Bajaj Allianz is also one of the leading companies which is at the third place in the Insurance market. But at present ICICI Prudential is in the second place with a transaction of 2000 Crores. With a target of 3500 Crores Bajaj Allianz is moving forward with dedicated teams and efficient and effective strategies it is not late that Bajaj Allianz will over take ICICI Prudential in the near future and place its strong foothold in the second place in the Insurance market.
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Market Research on existing policies and study to device new policies in Insurance

Diksuchi Study Center, Davanagre.

Primary data Secondary data.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

2.5 - Insurance Regulatory and Development Authority Act 1999:

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Duties, Powers and Functions of IRDA

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

4.1 MEANING AND DEFINITION OF CONSUMER/CUSTOMER BEHAVIOR

Diksuchi Study Center, Davanagre.

4.2 THE MAJOR FACTORS AND DETERMINANTS OF BUYER BEHAVIOR:

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Roles and statuses.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

5.8 Keeping customer happy:

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

distinct option in terms of life insurance products. following to offer -

Diksuchi Study Center, Davanagre.

cos. - AUM of Rs.51, 96,959 cr.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

Diksuchi Study Center, Davanagre.

NAME OF THE COMPANY

NAME OF PRINCIPAL OFFICER Mr. Sam Ghosh Nani B Javeri

NAME OF APPOINTED ACTUARY Sampad Narayan Bhattacharya K. S. Gopalakrishnan

Mr. Nick Taket

Ms. Shikha Sharma

Mr. Frank Koster

Mr. Achaiyer Venkatasubramanian

Shri R.N. Bhardwaj

Mr. Gorakh Nath Agarwal

Diksuchi Study Center, Davanagre.

Mr. Anuroop(Tony) Singh

Mr. Venktesh Mysore

Mr. Shivaji Dam

Mr. James Edmond Thomson

Mr. S. Krishna murthy Mr.Ian J.Watts

Mr. Phuong Chung

Mr. Graham Meyer