TRANING

PROJECT REPORT

A SUMMER TRAINING REPORT ON CAREER OPPORTUNITY AS A INSURANCE CONSULTANT OF BAJAJ ALLIANZ INSURANCE PRODUCTS AMONG RESPONDENTS IN HISSAR CITY

SUBMITTED TO J.C.D. COLLEGE, SIRSA IN PARTIAL FULFILLMENT FOR THE REQUIREMENT OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Submitted By:
GUNJAN KUMAR ROLL NO: 5662 MBA III SEMESTER

DEPARTMENT OF BUSINESS ADMINISTRATION

J.C.D. COLLEGE, SIRSA

2006

ACKNOWLEDGEMENT
The beatitude, bliss that accompanies the successful completion of any task would not be complete with expression of simple virtue to the people who made it possible. So, with the reverence honour we acknowledge all those guidance and encouragement has made successful in winding up this opus. I wish to express my deep sense of gratitude to Mr. PANKAJ MEHTA (Sales Manager) Bajaj Allianz Insurance Company for help, guidance and for assisting me with valuable suggestions during the project. He not only infused in me best skill and guidance in the fields but also invoked in me a spirit to undertake the project in his prospective and to complete it successfully. The pleasant and fruitful discussions, which had given me valuable training will help me in my future career. I would like to thank Dr. Kuldeep Singh, chairperson of our Deptt. And all the lecturer who support and helps me a lot during the project and by which I am able to complete this project. Finally I wish to thank all my fellow trainees and my parents for supporting me all the time. And my heartiest thanks to Bajaj Allianz for providing me exposure to the corporate world. Gunjan Kumar

PREFACE
Summer training for 8 weeks in MBA course and study content of such as practical knowledge, it makes the student confident and introduce them about their hidden ability. An insurance company gives security and protection people in today life insurance should be compulsory because today there is no surety of life. During my tenure of training I deeply analysed the thoughts of people about insurance. To find out the importance of insurance research is conducted in Bajaj Allianz Insurance Company which is among the largest private insurance company this study is concerned the main feature which influence the insurance sector. I have supported the report with some suggestion. For research data is collected from primary method and questionnaires method as well as sample size method.

DECLARATION
I Gunjan Kumar declare that the project done by me contains the original work and I have not copied from anywhere, the portion which at some places in the report that has been copied by me I have declare that in the end of the project report and that portion is the originally belongs to its original writer and I dont claim over it. It will be purely used for the academic purpose.

Gunjan Kumar

INTRODUCTION
Today insurance industry is growing fastly. After coming the private players this industry is becoming complex day to day and the competition is increasing very fast. Insurance is basically a risk-sharing device. The losses to assets resulting from natural climates (life, fire, flood, earthquake, accident etc) are meet-out of common pool contributes by large number of persons who are exposed to similar risk. This contribution of money is used to pay the losses suffered by the unfortunate few. The basic principle is that the loss should occur as a result of a natural calamity or an unexpected event beyond human control and insured person should not making gains out of insurance. Service Industries are today facing a huge competition and the marketing in these industries is becoming very complex, so that this is extremely fruitful and enjoyable for a company and also for a research fellow to study marketing of insurance products.

INSURANCE
1. Insurance is the method of the spreading and transfer to risk. 2. Loss of the unfortunate few a shared by the fortunate many who are exposed to same or similar risk. 3. Loss of assets depriver the owner of the expected benefit. 4. Insurance is the content is a mechanism that helps to reduce the adverse consequences due to loss of assets. 5. Insurance is assurance and protects the human life.

Why INSURANCE is so important

Assets are likely to be destroyed or made non-functional due to accidental occurrences called perils. Assets can, therefore, be insured. A few examples or perils are: fire, flood, breakdowns, lightning, and earthquake. Perils are the events. Risk is the consequential losses or damage. 1.The possibility of damage to assets caused by any period is the risk that is exposed to. 2.Risk means the possibility of loss or damage that may or may not happen.

3. 4. 5. 6. 7. stop.

It is because of the uncertainty about the risk that insurance No uncertainty implies any insurance. Insurance does not protect the asset but only compensates the Basically insurance cover tangible assets but the concept can The individual himself also needs financial security for the old

become important.

financial loss. be extended to intangible also. age or man his becoming permanently disabled when his income will The business of life insurance company is to brings together persons who are exposed to similar risks collect contribution (premium) for them or an equitable basis and pay the losses (claim) to those who actually suffer.

ABOUT INSURANCE
The beginning of the insurance started to the city of London. It started with the marine business. Marine traders, who used to gether at Lloyds a coffee house in London, agreed to share losses to goods during transportation by ship. Marine related losses include: Loss of ship by sinking due to bad whether in high seas. Goods in transit by ship robbed by ship pirates. Loss of over damage to the goods in transit by ship due to bad whether in high seas. The first insurance polity was issued in England in 1583.

THE GROWING YEARS OF LIFE INSURANCE

The 19th century saw huge developments in the field of insurance, with newer products being devised to meet the growing needs of urbanization and industrialization. In 1835, the infamous New York fire drew peoples attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations. In the 19th century many societies were founded to insure the life and health of their members, while fraternal orders provided low-cost, members only insurance. Even today, such fraternal orders continue to provide insurance coverage to members, as do most labor organizations. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies

LIFE INSURANCE IN INDIA

In India, insurance started with the insurance. It was in the early 19th century when the Britishers on their postings in India felt the need of life insurance cover. It started with English companies like. The European and the Albert The first Indian insurance company was the Bombay Assurance Society Ltd. In 1870. Other companies like : 1. 2. 3. 4. 5. 6. Hindustan Co-operative in Kolkata. National Insurance in Kolkata. Bombay life in Mumbai. New India in Mumbai. Jupiter in Mumbai. Lakshmi Insurance in New Delhi. It was during the swadeshi movement in the early 20th century that insurance witnessed a big boom in India with several more companies being setup. As these companies grew, the government began to exercise control on them. The Insurance Act was passed in 1912, followed by a detailed and amended insurance act of 1938 that looked into investments, expenditure and management of these companies funds. By the mid 1950 there were around 170 insurance companies and 80 provident fund societies in the country life insurance scene.

However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companies. As a result the government decided nationalizes the life assurance business in India. The Life Insurance Corporation of India was set up in 1956 to take over around 250 life insurance companies. For years thereafter, insurance remained a monopoly of the public sector. It was only after seven years of deliberation and debate after the R.N. Malhotra committee report of 1944 became the sector was finally opened up of the insurance sector to private players that the sector was finally opened up to private players in 2001. In 2000 have extensive powers to oversee the insurance business and regulate in a manner that will safeguard the interests of the insured.

ABOUT THE COMPANY

Bajaj Allianz
History of Bajaj Allianz : Bajaj Allianz Life Insurance Company limited is a union between Allianz AG, the worlds leading insurer and Bajaj auto, one of the most respected names. Allianz AG is the leading insurance conglomerate globally and the largest asset manager in the world, managing asset worth over 989 billion Euro (Rs 49,84,560 crores). At Bajaj Allianz, we realize that you seek an insurer you can trust your hard earned money with. Allianz AG has more than 110 years of financial experience in over 70 countries and Bajaj Auto, trusted for over 55 years in the Indian market, are committed to offering you financial solution that provide all the security you need for your family and yourself. One of the prominent plans they have is Unit Gain Plus. Worlds Largest Insurance co. by revenue Rs 5,20,353 Cr (Euro 96.9 billion) Worldwide 2nd by Gross Written Premiums Rs 4,77,930 Cr (Euro 89 billion) 3rd largest Assets Under Management (AUM) & largest amongst Insurance cos.-AUM of Rs 95,94,200 Cr (Euro 1078 billion) 11th largest corporation in the world 50 % of global business from Life Insurance, close to 60 million lives insured globally Established in 1890, 115 yrs of Insurance expertise More than 70 countries, 173,750 employees worldwide The fastest growing private life insurance company in India,with a growth rate of 380%* Have sold over 6,50,000 policies to satisfied customers

Is backed by a network of 400 offices spanning the country Ranked No.2* among private life insurance companies in India Accelerated Growth Fiscal Year No of policies GWP in FY sold in FY

2001-2002 (6mths) 21,376 Rs 7cr. 2002-2003 1,15,965 Rs 69cr. 2003-2004 1,86,443 Rs 221cr. 2004-2005 2,88,189 Rs 1002cr. Assets under management Rs 936 cr. Shareholder capital base of Rs 267 cr. Product tailored to suit your needs Decentralised organisation structure for faster response Wide reach to serve you better a nationwide network of 400 branches Specialised departments for Bancassurance, Corporate Agency and Group Business Well networked Customer Care Centres (CCCs) with state of art IT systems Highest standard of customer service & simplified claims process in the industry Website to provide all assistance and information on products and services, online buying and online renewals. Toll-free number to answer all your queries, accessible from anywhere in the country Call Now 1600 22 5858 and a strong tele-marketing and Direct marketing team Swift and easy claim settlement process

Our Mission We aim to be the top new life insurance company in the market.

This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like Customer service of the highest order Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different

customers Use of technology to improve service standards

Increasing market share

Our Values
SECURITY: Providing long term financial security to our policy

holders will be our constant endeavor. We will be do this by offering life insurance and pension products.
TRUST: We appreciate the trust placed by our policy holders in

us. Hence, we will aim to manage their investments very carefully and live up to this trust.
INNOVATION: Recognising the different needs of our customers, we will be offering a range of innovative products to meet these needs. Our mission is to be the best new life insurance company in India and these are the values that will guide us in this.

INSURANCE REGULATORY & DEVELOPMENT AUTHORITY ACT 1999 (IRDA)

It came into existence in December 1999. It is a statutory body which was framed to provide license to private companies in insurance sector and to protect the right of policy holders.

SCOPE
The act was passed by the parliament in December 1999. To permit private companies to enter the insurance market, Government has enacted Insurance Regulatory & Development Authority Act, 1999. The act provides for the establishment of the authority1. Protect the interest of holders of insurance policies; 2. To regulate, promote and ensure orderly growth of insurance industry; 3. For matters connected therewith or incidental thereto. The act also sought to amend the following acts4. The insurance act 1938. 5. The life insurance corporation act, 1956. 6. The General Business (Nationalization) Act, 1972

 The act applies to the whole of India including J&K state. This is a corporate body established for the purpose and object as set out in the explanation to the title. The authority replaces controller under insurance act 1938. The first schedule amends insurance act 1938.

CONSTITUTION OF IRDA
Insurance regulatory and development authority consists of the following members. 1. A chairperson; 2. Not more than five whole-time members; and 3.

Not more than four part-time members to be appointed by the central Govt. Members should be a person of ability; integrity; and standing.

FUNCTION OF IRDA

1. To issue certificate of registration, renew, withdraw, suspend or cancel such registration. 2. To protect the interests of the policyholders/insured in the matter of insurance contract with the insurance company. 3. To specify requisite qualifications, code of conduct and training for insurance intermediaries and agents. 4. To specify code of conduct for surveyors/loss assessors. 5. To promote efficiency in the conduct of insurance business. 6. To promote and regulate professional organizations connected with the insurance and reinsurance business. 7. To undertake inspection, conduct enquiries and investigations including audit of insurers and insurance business. 8. To control and regulate the rates, terms and conditions to be offered by the insurer regarding general insurance business not so controlled by tariff advisory committee. 9. To specify and the form and manner for maintenance of books of accounts and the statement of accounts. 10. To regulate investment of funds by the insurance companies.

Insurance Industry in the year 2000-2001 had 16 new entrants, namely:

S.No. Reg. No. Date of Reg. Name of the Company

1 2 Ltd. 3 4

101 103

23.10.2000 Bajaj Allianz Insurance Company 23.10.2000 Reliance General Insurance Company

104 105

15.11.2000 Max New York Life Insurance Co. Ltd. 24.11.2000 ICICI Prudential Life Insurance

Company 5 6 7 8 9 10 11 Ltd. 12 13 122 127 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd. 06.02.2004 Sahara India Insurance Company Ltd. 107 Insurance 109 110 111 114 116 117 10.01.2001 Kotak Mahindra Old Mutual Life 31.01.2001 Birla Sun Life Insurance Company Ltd. 12.02.2001 Tata AIG Life Insurance Company Ltd. 30.03.2001 SBI Life Insurance Company Limited . 02.08.2001 ING Vysya Life Insurance Co. Pvt. Ltd. 03.08.2001 HDFC Life Insurance Company Ltd. 06.08.2001 Metlife India Insurance Company Pvt.

SOME PRIVATE INSURANCE COMPANIES:

Several insurance companies emerged after the liberalization of the insurance sector. As a result now there are several insurance companies, which are leading their ways. Now along with L.I.C. there are several private ones giving tough competition to it. Some of the prominent insurance firms are: ICICI prudential TATA (AIG) Kotak Mahindra Old Mutual Life Insurance Limited

TATA (AIG)
Tata AIG is a joint venture that is backed by the Tata group Indias most respected industrial conglomerate, with revenues of more than US$ 8.4 billion, and American International Group, Inc. (AIG) the leading US- based international insurance and financial service organization, with the presence in over 130 countries and jurisdictions throughout the world. Tata AIG offers a gamut of innovative products in the life insurance sector, some of them are: Money saver plan Maha Life (gold) Raksha plan

ICICI Prudential
ICICI prudential is also a join venture that is backed by ICICI Bank Limited (erstwhile ICICI Limited) and Prudential plc formerly known as Prudential Corporation plc, through its wholly owned subsidiary, Prudential Corporation Holding Limited situated in Laurence Poultney hill, London. Some of the innovative products it offers in the insurance sector are ICICI Prudential Mutual Fund(Liquid plan, Income plan etc.) Unit Linked Plan with Capital Guarantee Smart Kid

Research Methodology
Questionnaire method Observation method

Meaning of research:-

Research comprises of defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data making deductions and reaching conclusions. Research process:The research process consists of a series of steps necessary to effectively carry out research. These steps are:-

Objective of the study:The main objective of the study was to know the acceptability of the Bajaj Allianz insurance products among various people and different opportunity offered as a career option. Development of plan for gathering information:The project work requires information about the persons who are able and willing to purchase the insurance policy. The information is collected in this project from: Primary source Questionnaire was designed to collect information by visiting to number of people selected conveniently. Secondary source information from various employees of company and website of Bajaj Allianz insurance.

3. Analysis of data collected:-the data collected was raw and need processing to give useful information. Then dat was tabulated and graphically presented. Conclusions:-Finally conclusions were drawn on basis of above analysis and recommendations were made.

Research design:Research design is a conceptual structure within which research is carried out. It consists of blueprint for collection, measurement and analysis of data. In the research design we decide about: The area to be studied The type of data From whom to get data About sample size How to analyze data

Research design for study:Primary data

Data was collected from various employees of company, website of company and by interacting with general public. Sampling method Sampling method used was Convenience sampling. Sample size was 300

Sources of Data:

Primary data: The data which was collected fresh and for first time and thus happens to be original in character is said to be Primary data. The various sources of primary data in this project are as follows: Questionnaire:- It was series of structured questions, which enables researcher to get desired information from respondents. Hence it was used to get first hand information from customer and general public. Questions were asked in both open ended and closed ended form. Observation:- It was technique of getting primary data in which there is no direct interaction between researcher and respondent. The researcher is watching behavior of respondent without interacting with him or her. In this project Assisting sales manager and different advisors when they were interacting with different kind of people made observations.

(2) Secondary Data:- the information already available or worked upon is referred as secondary data. The secondary data for this project was websites of IRDA and Bajaj Allianz Insurance Company.

WWW.irda.com

DATA ANALYSIS AND INTERPRETATION

The number of persons found living less than 1year in particular location is 31. The no. of persons living between 13years is 58 and between 3-7yrs. Is 27 while the no. of persons living above 7yrs in particular location is 132.
no. of years persons less than 1yr 1-3yrs 3-7yrs above 7yrs 31 58 27 132 no. of % 12.5 23.3 11 53

(2) Earning member in the family

The no. of families found having with single earning member is156, with 2 earning member is 162, with 3 earning member is 37 and the families having more than 3 earning member is 36.
Earning member no. of % 156 162 37 36 40 42 9 9

person 1 2 3 more than 3

no. of person

9%

9% 40%

42%

1 2 3 more than 3

Total family income from all sources (monthly)

The no. of persons found having income less than 5000 is 65. The no. of person found between an income group of 500010000 is 122 while the no. of person found between 1000020000 is63 and persons having more than 20000 income is only 40.

FAMILY NO. OF INCOME PERSONS less than 5000 5000-10000 10000-20000 more than 20000

% 65 122 63 40

22 42 22 14

total family income from all sources

14% 22%

22%

42%

less than 5000 5000-10000 10000-20000 more than 20000

Willing to earn extra income

The no. of persons willing to earn extra income is 82% and the persons who do not want to earn extra income is 18%.

WILLING EXTRA INCOME yes no

NO. OF PERSON

% 237 53

82 18

Would you like to earn extra income

18% yes no 82%

Extra time devoted

As per sample survey it is found that there is 68 people who can devote only 1 hour for generating extra income and 138

people can devote 2 hours while the only 31 people can devote 6 hours and approx. 19 people are interested in devoting full time.
HO URS NO. OF PERSON 1 2 6 Full

% 68 138 31 19

27 54 12 7

time

Time devoted for generating extra income

31 19 68

1 2 6 full time

138

Experience in selling

After the market survey it is found that 59 % people have experience in selling while 41 % people have no experience in selling.
EXPERIENC NO. OF E PERSONS yes no % 171 119 59 41

experience in selling

41% 59%

yes no

Interested in improving extra skill

As per sample survey it is found that there is 213 people are interested in improving selling skills while 77 people have neglected to improve their skill.
Willing to improve skill Yes No No. of person

% 213 77

73 27

willing to improve extra skill

27% yes no 73%

Social contacts

There is 20% people found who have less than 50 social contacts. 25% people having social contacts between 50-100 and 55% people have more than 100 social contacts.
social contacts less than 50 50-100 more than 100 no. of people % 58 72 160 20 25 55

social contacts

20% 55% less than 50 50-100 more than 100

25%

Annual premium

After survey it was found that different amount of annual premium paid by different people as 58% people pays premium less than 5000. 22% people pays premium between 5000-10000, 13% people pays between 10000-20000 and 7% people pays above 20000. Annual premium Less than 5000 5000-10000 10000-20000 More than 20000 No. of people 120 46 26 15 % 58 22 13 7

annual premium paid by peoples

7% 13% Less than 5000 5000-10000 22% 58% 10000-20000 More than 20000

Purpose of investment

As different people have different reason for investing in insurance. 136 people are insured for saving purpose while 15 have done insurance for investment purpose, 37 people have done insurance for protection and remaining 53 are insured for tax benefit. Purpose Saving Investment Protection Tax benefit No. of people 136 15 37 53 %

purpose of insurance

53

Saving Investment Protection Tax benefit

37 15

136

CONCLUSION AND RECOMMENDATION

Conclusion

Service industries are today facing a huge competition and the marketing in these industries is becoming very complex, so that this is extremely fruitful and enjoyable for a company. Today insurance industry is a speedily growing sector. After coming the private players this industry is becoming complex day to day and the competition very fast. After analysing the responses of the people about main feature which influence the insurance buying, the result shows that awareness level is increasing day by day about the private insurance company. Till 1999 LIC have the monopoly in insurance sector. But today is the era of private insurance company, and the aw3areness level and buying behaviour is changing day by day. Major finding of the study show that tax rebate is the prime preference along with protection or savings. At the same time people are more focused on their child future planning. But at the same time company is struggling for its market share in rural market. In brief it can be said that the people are getting more confident to be the investor of Bajaj Allianz Insurance Company products while they have heard about all the benefits of these plans.

Suggestion

There are a lot of possibilities in the market for Standard Life Insurance Products due to their unique features. To get the benefit of this opportunity the company should consider the following points. The study shows that there is less awareness for the companys plans in the market. So it is necessary for company to make aware to the people for company. Awareness of customers is very low in India even educated persons are ignoring about various products of insurance company. Company should advertise their plans on a large scale e.g. on T.V. channel, leading newspapers. Company should recruit new agents or consultants. It is necessary for company to trend them in a well manner therefore they will gave good results. Company should open customer service point in rural area also. Company should make plans for promotion of company business it should organise road shows seminars, exhibition or contests because these things make clear picture of cos plans. Bajaj Allianz should open the branches and enhance its infrastructure so that the people of that region can also be awarded about these plans.

SWOT ANALYSIS
Strengths
Bajaj Allianz Insurance Company Indias Most Respected company in the insurance industry of India Excellent services Customized of product as per customer needs. Brand image Business experience Strong financial base Innovative product technology, organization culture and environment

Weaknesses
Lot of the competitors are in the market offers some product difference in the premium and offering. Target only bigger income group where other companies are trying to catch middle lower level people. Higher premium as compared to other companies. Client face problem to get insured due to large number of formalities. High target of financial advisor and for the sales development.

Opportunities
Huge market is literally untapped out of estimated 320 million is usable markets only 20% of the population is insured. In the pension field where people want good life after their retirement. Indian people are more emotional towards their children that are why children plan are selling like hot cakes. Health insurance and pension schemes and estimated market potential of approximately $10 billion.

Threats
Weak perception of private players in the minds of Indian people due to frequent financial schemes. Large number of insurance players. Current government policies do not encourage gross domestic savings. Of the tax liabilities of the service rises the customers will have little money to invest. And change rules day by day ore rigid which is very difficult for the company.

Questionnaire
(Awareness about Bajaj Alianz) 1 Name: 2 Age: 3 Gender: 4 Marital status: 5 Address: 6 Telephone no: 7. Qualification 8. Occupation: 9 How long you are based at this location? (a) Less than 1 yr. (b) 1-3yr. (c) 3-7 yrs. (d) Above 7 yrs. 10. How many earning members are in your family? (a) 1 (b) 2 (c) 3 (d) more than 3 11.total family income from all sources (monthly) (a) Less than 5000 (b) 5000-10000 (c) 10000-20000 (d) More than 20000 12. Would you like to earn extra income? (a) yes (b) No 13. If yes, how many hours you can devote in a day for generating extra income? (a) 1 hr. (c) 6 hr.

(b) 2 hr. (d) Full time

14. Don you have any experience in selling? 15. If yes, then in which sector? (a) Public sector (b) Private sector

16. Do you want to improve selling skill? (a) Yes (b) No 17. What is the size of your social contacts? (a) Less than 50 (c) More than 100 (b) 50-100

18. Which of the following are known to you? (a) Bajaj Allianz (c) Bajaj Allianz Auto (b) Bajaj Allianz Home loan

19. Have you taken any life insurance policy from (a) LIC (b) HDFC (c) TATA (d) Bajaj Allianz (e) Others 20. How much total annual premium you are paying/ (a) Less than 5000 (c)10000-20000 (b) 5000-10000 (d) More than 20000

21. What is the main purpose of your investing in insurance? (a) Saving (c) Protection (b) Investment (d) Tax benefit

22. Are you aware of any insurance Policy Where you get good return with medical benefits also (a) Yes (b) No