You are on page 1of 62

ABSTARCT

The project report on A study on customer awareness to enhance market share of Bajaj Allianz Unit Link Insurance Plan in Hubli city. I through under took the project by the help of BAJAJ ALLIANZ Life Insurance Ltd. Sales team manager Karimnagar.

Objectives: 1. To study the awareness level of Bajaj Allianz ULIPs with view to recommend measure to improve market share. 2. To find vital communication media. 3. To know the factors that influence investors while taking investment decisions. 4. To find potential market for ULIPs.

Scope of the study:

The research was undertaken to gather information from the respondent to know exactly how many people aware of ULIPs in Hubli city and the study is restricted within the city.

One of the fast growing city in Karnataka and represents huge market for scope with more than 90 lakhs people.

Hubli is one of the commercial areas . It is a place where the small and large industries are located .with the more increase population and there style more people are conscious about the their lives.

LIMITATIONS OF THE STUDY 1. Not single work is exception to the limitations every work has got its own limitations, so due to time constraint my study confines only to Hubli city and it is not possible to make extensive study. It is assumed that the sample selected represents entire population. 2. It is prudent to make equity-oriented investments based on an established track record of at least three years over different market cycles. ULIPs may not fulfill this criterion in near future. 3. Insurance and savings are two different goals and it is better to address them separately rather than bundle them into a single product. A combination of a term plan and a mutual fund could give better results over the long term. 4. The free hand given to ULIPs might prove risky if the timing of exit happens to coincide with a bearish market phase, because of the inherently high equity component of these scheme. 5. An initial allocation charge is deducted from investor premiums for selling, marketing and broker commissions. These charges could be as high as 65 per cent of the first year premiums. 6. Premium allocation charges are usually very high (5-65 per cent) in the first couple of years, but taper off later. The high initial charges mainly go towards funding agent commissions, which could be as high as 40 per cent of the initial premium as per IRDA regulations.

RESEARCH METHODOLOGY

Primary (Filed Survey)

Data source Area of Research Research instrument Sample plan Sample unit Sampling method Sample size

: : : : : : :

Secondary data (internal)

Hubli city Questionnaires Personal interview


Businessmans, jobholders, professionals etc.

Random sampling 100 customers

INDEX
PARTICULAR Page no

Chapter-I

1) Introduction 2) Literature Review 3) Statement of the problem 4) Purpose of the study 5) Scope of the study 6) Objectives of study Chapter-II 1) Organization Profile 2) Organization Chart 3) Sampling 4) Research Design 5) Data Collection Methods 6) Measuring tools. Chapter-III 1) Result & discussion with graphs & charts.

09 18 19 19 26 27

29 62 64 64 64 65

68

2) Summary, conclusion, & a proposed action plan with resource requirements and projected benefits to the organization. 84

Chapter-IV 1) Appendix Questionnaire Weekly Reports 88

2) Bibliography

92

COMPANY PROFILE:

Bajaj Group

A STRONG INDIAN BRAND- HAMARA BAJAJ One of the Largest 2 & 3 wheeler manufacturer in the world .

21 million + vehicles on the roads across the globe managing funds of over Rs5200crore Bajaj Auto finance one of the largest auto finance companies in India Rs5934cr turnover and profits after tax of 732cr in 2004-05

Bajaj group ,a Rs. 8,000 crore group ,a household name in India with a strong brand image and brand loyalty.

Bajaj Group is synonymous with quality and customer focus. Bajaj Auto is a Rs.4,000 crore auto giant. 4th largest in the world. Has over 15,000 employees.

Allianz Group

Allianz Group is one of the world's leading insurers and financial services providers

Founded in 1890 in Berlin,

Allianz is one of the leading global insurance companies headquartered in Munich, Germany .

Established in 1890 ,more than 110 years of experience in insurance. Allianz has over 700 subsidiaries and approximately 1,81,000 employees worldwide.

Allianz global network extends to over 70 countries in: o Europe . o South and Northern Americas.

o Africa. o Middle East. o Asia Pacific.

World largest insurance company by revenue 520353cr worldwide 2nd gross written premium 477930cr 3rd largest assets under management(AUM) and largest insurance companies AUM of Rs9594200cr.

11th largest corporation in the world

50% global business from life insurance close to 60 million lives insured globally. Allianz shares are treated at the 5 leading international stock exchanges: Frankfurt. London . Paris. Zurich. New York.

Insurance to almost half of the Fortune 500 companies.

Bajaj Allianz life Insurance

Bajaj Allianz life Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and

strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany.

Key Achievements in FY 2005-06 :

No.1 Pvt Life Insurer FY 2006-06. Leading by Rs. 78 Cr. No.1 Pvt Life Insurer in Retail Business. Leading by Rs. 339 Cr.
Whopping growth of 216% for the FY 2005-06 Have sold over 13,00,000 policies to satisfied customers Is backed by a network of 550 offices spanning the country Accelerated Growth Fiscal Year 2007-2008 (6mths) 2008-2009 2010-2011 2011-2012 2012-2013 No of policies sold in FY 3,88,189 4,15,965 5,86,443 7,88,189 10,81,685 GWP in FY Rs 87 cr. Rs 269 cr. Rs 521 cr. Rs 2002 cr. Rs 5134 cr.

Assets under management Rs 3,324 cr. Shareholder capital base of Rs 500 cr.

Company punch line

Mission:

As a responsible customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money.

Why Bajaj Allianz Life Insurance: The Bajaj Allianz Difference Business strategy aligned to clients needs and trends in Indian and global economy / industry. Internationally experienced core team, majority with local background. Fast, decentralized decision-making. Long-term commitment to market and clients.

Shareholder in Bajaj Allianz life insurance company: Bajaj Auto Limited Bajaj Auto Limited is the largest manufacturer of two and three wheelers in India and also one of the largest manufacturers in the world. Bajaj Auto has been in operation for over 55 years. As a promoter of Bajaj Allianz General Insurance Company Ltd., Bajaj Auto has the following to offer. Vast distribution network. Knowledge of Indian consumers. Financial strength and stability to support the insurance business.

CHANNEL PARTNERS
Bancassurance Vantage

UNIT LINKED INSURANCE PLAN OR MARKET LINKED


INSURANCE PLAN (ULIP).

INTRODUCTION TO ULIP ULIP came into play in the 1960s and became very popular in Western Europe and Americas. The reason that is attributed to the wide spread popularity of ULIP is because of the transparency and the flexibility which it offers. As times progressed the plans were also successfully mapped along with life insurance need to retirement planning. In todays times, ULIP provides solutions for insurance planning, financial needs, financial planning for childrens future and retirement planning. Features of ULIP distinguish itself through the multiple benefits that it provides to the consumer. The plan is a onestop solution providing: Life protection Investment and Savings Flexibility- Adjustable Life Cover- Investment Options Transparency Options to take additional cover againstDeath due to accident- Disability- Critical Illness- Surgeries Liquidity.

ULIP distinguishes itself through the multiple benefits it provides to the policyholders. These plans are designed with a view to help the customers to utilize the market opportunities by investing in the share market, capital market and at the same time have the facility of Death Benefit and Maturity Benefit.

Meaning It is a plan, which provides Life Insurance, and here policy value at any time varies according to the value of the underlying asset at that time. It is a plan that provides the client with the benefit of protection and flexibility. An ULIP plan works as a one-stop advantage for the policyholder. It gives the policyholder a wholesome advantage of integrated financial planning.

STRUCTURE OF ULIP: ULIP

CONTRIBUTION CONTRIBUTION

LESSCHARGES LESSCHARGES

INVESTMENT INVESTMENT REPRESENTED AS REPRESENTED AS NAV NAV

LIFE COVER LIFE COVER

NAV CONCEPT It exhibits the value (or the price) that one has for his investment or one will have to pay for his investment. As, the investment made by different people are different, the value (or the price) is the expressed in per unit terms. It helps in knowing the value of Insurance at any point of time. Technical Calculation of NAV: -

UNIT Value = (Total market Value of all assets invested less expenses related to Investment management / Total no. of outstanding units) Factors affecting NAV: Market Value of investment portfolio, Number of Units, Expenses and Investment Income. Ex: If 2,00,000 /- has been accumulated in the equity fund and the no. of units issued is 10,000 /- then the NAV of the equity fund is: 2,00,000 / 10,000 = Rs 20 / As the equity market develop the fund grows from 2,00,000 / - to 220,000/Now the NAV = 2,20,000 / 10,000 = Rs 22 / If among these 10,000 units the policyholder has 5000 units then the value of investment as of now is Rs 1,10,000. Thus a unit linked plan actually tells, what is the value of the fund

.BASIC FEATURES OF ULIP

1. Life protection 2. Investment and savings 3. Flexibility 4. Transparency 5. Added Benefits a) Death due to accident b) Any kind of disability c) Critical illness d) Surgeries 6. Liquidity 7. Tax Planning 8. Adjustable Life Cover 9. - Investment Options

1) LIFE PROTECTION

Start a Family

Children Establishi ng Career Retiremen t Time

Start Working

The graph shows the various needs of the customer at different point of time, individuals needs differ and his need for life protection fluctuates. ULIP satisfies the varying needs of the customer decrease the death benefit. It is usually multiple of the contribution being paid, which ensure that the contribution is adequate enough to provide life protection. And is also able to maintain a sem balance between protection and savings. providing him with more and more protection as and when he requires, by allowing the policyholder to increase or

2) INVESTMENTS AND SAVINGS

ULIP provides the client with option of investing as per his risk appetite and gets returns accordingly. These various options available for an individual to make investment in comparatively high risks instruments and get high returns. Below shown is a graph illustrating the various investment options for a client.

Equity funds Balance d funds Short term debt funds Debt funds

Risk

Example 1: Here are four types of funds in which a client can invest. In each case the risk goes on increasing with the type of fund. The client has an option to shift as the risk and return orientation changes (Switch).
3) FLEXIBILITY

The client has an option to choose the amount of sum assured and the premium amount he is capable of paying. In case of certain plans of ULIP the client is allowed to choose the premium. Eg: Lifetime and Lifetime I the client has a flexibility to decide the life cover according to his financial needs, independent of premium selected.

Following points enumerate the flexibility feature of ULIP

a) Increase in death benefit. As life cycle changes of a client he passes through various risks and responsibilities. He can increase or decrease the death benefit accordingly. b) Decrease in death benefit. If the client is unable to pay the same amount of premium he can decrease the death benefit with certain conditions applying according to the particular plans. c) Premium holiday After paying the premium regularly for 3 years from the starting date of the policy the client can take a premium holiday if he is unable to pay a particular premium due. On returning from the premium holiday the client can pay the previous premiums if he desires or continue from that date. d) Choice of fund. There are four kinds of funds available for a client of ULIP. He has an option to switch between these four funds. He can either choose only one or invest in all four depending on his risk tolerance.

Plan Maximiser

Plan objective High growth

Risk and High

Investment pattern Equity and equity

(Growth)

capital

appreciation

related securities: Max 90%, 10% Equity 40%, Debt, money market and cash: Min

over a long terms

Balancer (balanced)

Balance

of

capital Average and

and Debt,

equity money

appreciation long terms

related securities: Max market and cash: Min

study returns over a

Preserver

Equal capital and

balance study

of Low

60% Debt instrument: Max 50% Money market and

appreciation returns

Protector (Income)

over a long term cash: Min 50% Study returns over a Moderate Debt instrument: Max long term. 100% Money market and cash: Max 25%

e) Switch between the funds The policyholder has a choice two reallocate the premium paid by him on every premium policy anniversary. He can switch between the above four funds to avail the advantages of market fluctuations. f) Top ups Some times the client may have surplus amount after his expenses. ULIP allows him to save that amount by investing in the insurance he can avail the benefit of top up by paying extra premium, which will be invested in the share market by the insurer company. The client gets expert fund management. The policyholder is allowed to do as many top ups in the tenure of plan.

g) Premium redirection The policyholder is allowed to reallocate the premium paid each time to different fund structure. Thus whenever the premium is due (As per the premium payment mode), he can redirect the current premium into different asset allocations than the previous time. This helps the policyholder to optimize the funds in accordance to market with out using the switch option. e) Assignment option The policyholder can assign the policy to any of the nominees or any bank in case he has taken a loan on the title of the policy. Unfortunately if something happens to the policyholder then the insurer will repay the loan taken by the client to the extent of premium paid. 4) Transparency ULIP products are transparent in terms of, the policyholder is aware of where his contribution is being allocated. The policyholder is aware of the various charges charged to him. The Various charges of the ULIP are: a) Contribution related Charges- Running expenses of the policy b) Administrative Charges- Issuance cost, distribution costs etc c) Fund Management Fee- cost of being and selling the various financial instruments for various funds. d) Mortality Charges: cost of providing life protection. e) Rider charges: cost of other protection charges. f) Surrender charges: cost to cover initial expenses.

g) Bid offer charges: difference between the offer price of units and the selling price i.e. bid price of units. It covers the cost of selling the policy. h) Transaction specific charges: cost of changing funds, toping up the investment component or withdrawals Daily NAV: A feature that lets us know on a daily bases, how the money in insurance plan is growing. 5) ADDED BENEFITS To get extra protection ULIP provides the attachments. a. Death due to accident (ADBR) b. Disability (ABR) c. Critical Illness (CIBR) d. Surgeries (MSAR) (Now discontinued) 6) LIQUIDITY The feature makes ULIP a marketable plan. The policyholder has an option of withdrawals in case if need arises. ULIP provides easy access to the money as and when the policyholder may requires. There are two types of withdrawal options. a) Partial b) complete The value of withdrawal reduces the death benefit by same amount. This facility can be avail only after three full premium payment years are completed. The minimum worth of this units and a maximum where in at least Rs. 10000/- worth units remain in all the funds put together. policyholder the advantage of rider

7) TAX PLANNING

This is another feature of ULIP that motives the policyholder to invest in the insurance plans. They usually invest to avail the tax benefit. Regulation in India allows tax benefits in the contribution paid under section 88, contribution paid for health riders critical illness and major surgical is allowed tax benefits under section 80D, as per the prevailing tax laws. Maturity benefits are tax free under section 10(10) D, provided life come is at least 5 times of the annual contribution paid. Death benefit is tax free under section 10(10) d. With so many tax benefits available in one instrument ULIP tends to be an intelligent tax-planning tool. Working of a ULIP Plan Life rime regular Premium Life rime regular Premium Allocated Allocated Premium Premium Part of the Premium Part of the Premium towards the policy towards the policy Expenses Expenses Insurance Insurance Charges Charges This goes This goes to the to the Protection Protection a/c to a/c to provide provide against against the 3D the 3D Effect Effect

Allotment of Units Allotment of Units

Various Various Investment Investment Options. Facility Options. Facility of withdrawals of withdrawals and investing and investing back in the back in the Investment Investment For Example

Units that build up the Units that build up the investment value investment value

A client put in regular contribution of Rs.20, 000 /-. From this amount a % is deducted as contribution.

Therefore if the contribution related expense is 40% - Rs.8000/- will be deducted as contribution charges. The amount that is now available is Rs.20000-8000=12000/Now, if the client who is available is aged 30 years were to take a life cover of 500,000/then mortality (1.50/- per thousand at the age of 30) charge of 750 /- will be deducted. This amount will provide life cover to the policy. The remaining amount of 11250/- will be invested in any one of them or all of them. The Investment is shown in terms of units. Thus if client invests in debt fund and the NAV of the debt fund is Rs. 15/-(market price) then the no. of units that the client will get is 11,250/15=750. For this investment-fund management fee will be charged and the charges for maintaining the policy an administrative charge are levied.

Are ULIPs similar to mutual funds?. In structure, yes; in objective, no. Because of the high first-year charges, mutual funds are a better option if you have a five-year horizon. But if you have a horizon of 10 years or more , then ULIPs have an edge. To explain this further a ULIP has high first year charges towards acquisition (including agents commissions). As a result, they find it difficult to outperform mutual funds in the five years. But in the long term, ULIP managers have advantages over mutual funds managers. Since policyholder premium come at regular intervals, investments can be planned out more evenly. Mutual fund managers cannot take a similar long term view because they have bulk investors who can move money in and out of schemes at short notice. Which is better, unit-linked or Traditional plan?

The two strong arguments in favor of unit-linked plans are that the investor knows exactly what is happening to his money and two ,it allows the investor to choose the assets into which he wants his funds invested. A traditional with profits, on the other hands, is a black box and a policyholder has little knowledge of what is happening. An investor in a ULIP knows how much he is paying towards mortality, management and administration charges. He also knows where the insurance company has invested the money. The investor gets exactly the same returns that the fund earns, but he also bears the investment risk. The transparency makes the product more competitive .So if you are willing to bare the investment risk in order to generate a higher return on your retirement funds, ULIPs are for you. Traditional with profits policies too invest in the market and generate the same Returns prevailing in the marker. But here the insurance company evens out returns to ensure that policyholders do not lose money in a bad year. In that sense they are safer. ULIPs also offer flexibility. For instance, a policyholder can ask the insurance Company to liquidate units in his account to meet the mortality charges if he is unable to pay any premium installment. This eats into his savings, but ensures that the policy will continue to cover his life.

Why do insurers prefer ULIPs?

Insurers love ULIPs for several reasons. Most important of all, insurers can sell these policies with less capital of their own than what would be required if they sold traditional policies. In traditional with profits policies, the insurance company bears the investment risk to the extent of the assured amount .In ULIPs, the policyholder bears most of the investment risk. Since ULIPs are devised to mobilize savings, they give insurance companies an opportunity to get a large chunk of the asset management business, which has been traditionally dominated by mutual funds. Are unit-linked insurance plans good? Most insurers in the year 2004 have started offering at least a few unit-linked plans . Unit-linked life insurance products are those where the benefits are expressed in terms of number of units and unit price. They can be viewed as a combination of insurance and mutual funds. The number of units that a customer would get would depend on the unit price when he pays his premium. The daily unit price is based on the market value of the underlying assets (equities, bonds, government securities, etc) and computed from the net asset value. The advantage of unit linked plans is that they arte simple, clear, and easy to understand. Being transparent the policyholder gets the entire upside on the performance of his fund .Besides all the advantages they offer to the customers, unitlinked plans also lead to an efficient utilization of capital.

Unit linked products are exempted from tax and they provide life insurance. Investor welcome these products as they provide capital appreciation even as the yields on government securities have fallen below 6 percent , which has made the insurers slash payouts. According to the IRDA, a company offering unit-linked plans must give the investor an option to choose among debt, balanced and equity funds. If you opt for a unit-linked endowment policy, you can choose to invest your premiums in debt, balanced or equity plans. If you choose a debt plan, the majority of your premiums will get invested in debt securities like gilts and bonds. If you choose equity, then a major portion of your premiums will be invested in the equity market. The plan you choose would depend on your risk profile and your investment needs. The ideal time to buy a unit-linked plan is when one can expect long term growth ahead . This is especially so if one also believes that current market values (stock valuations ) are relatively low. So if you are opting for a plan that invests primarily in equity , the buzzing market could lead to windfall returns. However , should the buzz die down , investors could be left stung. If one invests in a unit-linked pension plan early on , say when one is 25, one can afford to take the risk associated with equities , at least in the plans initial stages. However ,as one approaches retirement the quantum of returns should be subordinated to capital preservation. At this stage , investing in plan that has an equity tilt may not be a good idea.

Considering that unit-linked plans are relatively new launches, their short history does not permit an assessment of how they will perform in different phases of the stock market. Even if one views insurance as a long term commitment, investments based on performance over such a short time span may not be appropriate.

Allianz Bajaj launches its first unit linked policy. Allianz Bajaj Life Insurance Company has launched Unit Gain , the companys first unit linked policy. Unit Gain allows customers to combine the benefits of life insurance with higher investment returns from equity and debt markets. Unit Gain was launched with a choice of four funds to the customer- equity, debt, balanced and cash funds. The cash funds comes with the guarantee that the value of units in the fund will not go down. Unit Gain is one of the most flexible unit linked plans in the market, and allows the customer to change the sum assured during the term of the policy to match their changing life insurance requirements. Also the plan offers a premium holiday feature, where the policy is kept in-force even when premiums are not paid as long as there are enough units to cover charges. The policy provides customers flexibility in paying additional premium through single premium top-ups, as well as in increasing the level of regular premium in later years (along with increase in income). In addition, the facility of cash withdrawals allows the Bajaj Allianz ULIPS products.

Bajaj Allianz ULIPS products:

1) Unit Gain Regular Premium: The Bajaj Allianz unit comes with a host of features to allow you to have the best of all words protection and investment with flexibility like never before. Some of the features of this plan are: Guaranteed death benefits. Choice of 6 investment funds with flexible investment management you can change funds at any time. Attractive investment alternative to fixed investment securities. Provision for full/partial withdrawal any time after 3 full years premiums are paid. Unmatched flexibility to match tour charging needs.

How does the plan work: The premiums paid are invested in fund/funds of your choice (depending on the allocation rate) &unit are allocated depending on the price of units for the fund/funds. The value of your policy is the value of units that you hold in the fund/funds. The insurance cover charges are deducted through monthly cancellation of units . The funds administration charge and fund management charge are priced in the unit value. Minimum sum assured= 5 times the annual premium. Maximum sum assured =y times the annual premium where y will be as per the following table.

Age

0-30

31-35

36-40

41-45

46-55

56-60

Group Y

125

105

75

55

30

20

Important details of Bajaj allianz unit gain RP plan Minimum age at entry: 0(risk commences at age 7, and ceases after age 70) Maximum age at entry :60 The minimum age at entry for all additional benefits is 18 years. The maximum age at entry for all additional benefits is 50 years. All additional benefits are available till age 65. 2) Unit Gain Single Premium: The bajaj allianz unit gain SP comes with a host of features to allow you to have the best of all worlds- protection and investment with flexibility like never before. Some of the feature 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 benefits. Choice of 6 investment funds with flexible investment management you can with between funds at any time . Attractive investment alternative to fixed interest securities. Provision for full/partial withdrawal any time after the single premium is paid. Unmatched flexibility to match your changing needs. How does the plan works?

100% of the single premium is invested in a fund/funds. The value of your choice and unit 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 changes are deducted through monthly cancellation of units. The funds administration charge and fund management charge are pried in the unit value. Minimum sum assured =1.01 times the single premium. Maximum sum assures =y times the single premium where y will be as per the following table. Age Group Y 0-30 45 31-35 40 36-40 25 41-45 15 46-60 5 61-67 1.01

Important details of the Bajaj allianz unit gain SP plan: Minimum age at entry :0(risk commences at age 7, and ceases after age 70) Maximum age at entry :67 Minimum single premium :Rs .25000. Minimum top-up :Rs 10000.

3) Unit Gain Plus Regular Plan:

The Bajaj allianz unit gain plus RP comes with a host of features to allow you to have the best of all words protection and investment with flexibility like never before. Some of the key feature of this plan are Guaranteed death benefit. Choice of six 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 3 full years premium are paid Unmatched flexibility to match changing needs.

How does the plan work? The premium paid are invested in a fund or funds of your choice (depending on the allocation rate) and units are allocated depending on the price of the units for the fund or funds. The insurance cover and administration charges are deducted through cancellation of units. The fund management charge is prices in the unit value. Minimum sum assured = 5 times the annual premium. Maximum sum assured = y times the annual premium where y will be as per the following table.

Age Group

0-30

31-35

36-40

41-45

46-55

56-60

125

90

60

40

20

15

Important details of the Bajaj Allianz Unit Gain Plus RP plan Minimum age at entry :0(Risk commences at age 7 and ceases after age 70) Maximum age at entry :60 Minimum age at entry for all additional benefits is 18 years. The maximum age at entry for additional benefits is 50 years. All additional benefits are available till age 65.

4) Unit Gain Plus Single Premium Plan: The bajaj allianz unit gain plus Sp comes with a host of feature to allow you to have the best of all words protection and investment with flexibility like never before. Some of the key feature of this plan are Convenient single premium payment, with option to pay top-ups later. 98% of the single or top-ups are allocated. Guaranteed death benefit. Choice of five investment funds with flexible investment management you can change funds at any time. Attractive investment alternative to fixed interest securities. Unmatched flexibility to match your changing needs. Provision for full or partial withdrawal any time after the single premium is paid.

How does the plan works ?

98% of the single premium is invested in a funds or funds of your choice and units allocated depending on the price of units for the fund or funds . The value of your policy is the total value of units that you hold in the fund or funds. The insurance cover and fund administration charges are deducted through cancellation of units. The funds management charge is priced in the unit value. Minimum assured =1.01 times the single premium. Maximum sum assured = y times the single premium where y will be as the following table. Age Group Y 0-30 45 31-35 35 36-40 20 41-45 10 46-60 5 61-69 1.5

Important details of the Bajaj Allianz Unit Gain Plus SP Plan Minimum age at entry :0(Risk commence at age 7,and ceases after age 70) Maximum age at entry :69 Minimum single premium :Rs. 25000. Minimum top-up :Rs .5000.

5)Unit Gain Life Pension plan:

With Bajaj Allianz ,you can take control of your future and ensure a retirement you can look forward to. This plan has been be signed to take of your retirement and insurance needs, there by providing you with a comprehensive solution for life time. There are two packages choose from: 1. Unit gain life pension regular premium. 2. Unit gain life pension single premium.

Defending on the amount of premium you want to pay, you choose sum assure as per the condition given below: 1. Minimum sum assured =5 times annual/1.01 times single premium. 2. maximum sum assured =y times the annual/single premium where y will be as per the following table: Age group Y for regular premium Y for regular premium 45 35 20 10 5 5 1.5 18-30 125 31-35 90 36-40 60 41-45 40 46-55 20 55-60 15 61-65 10

How does the Bajaj Allianz Unit Gain Life Pension Plan Work? The premium paid are invested in funds of your choice (depending on the allocation rate) and unit are allocated depending on the price of unit for the fund or funds.

The value of your policy is the total value of units that hold in the fund or funds. The insurance cover and administration charges are deducted through cancellation of units. The fund management charge is priced in the unit value. Important details of the Bajaj Allianz Unit Gain Life Pension Plan: Age of entry Deferment period Age at vesting 6) Unit Gain Easy Pension Plan: With bajaj allianz , you can take control of your future and ensure a retirement you can look for word to. There are two packages to choose form: 1. Unit gain easy pension regular premium. 2. Unit gain easy pension single premium. Minimum 18 5 45 Maximum 65 40 70

How does the Bajaj Allianz Unit Gain Easy Pension Plan works? The premium paid are invested in a fund/funds of your choice (depending on the allocation rate) and units are allocated depending on the price of units for fund/funds. The value of your policy is the total value of units that you hold in the fund/funds. The administration are deducted through cancellation of units. The fund management is priced in the units value.

Important details of Bajaj Allianz Unit Gain Life Pension Plan:

Age of entry

Minimum 18

Maximum 65

Deferment period Age at vesting

5 45

40 70

Bajaj Allianz Life Insurance Bajaj Allianz Life Insurance

Agency Channel Agency Channel

Bancassurance Bancassurance

Group and Alternate Group and Alternate Channel Channel

Branches Branches

COMPANY CHART
Satellite Satellite

Standard Chartered Bank Standard Chartered Bank

Group Employee Benefit Group Employee Benefit

Satellite Satellite

Satellite Satellite

Syndicate Bank Syndicate Bank

Corporate Agency Corporate Agency

Centurion Bank Centurion Bank

Franchisee Franchisee

Cosmos Bank Cosmos Bank

Brokers Brokers

Jankalyan Sahakari Bank Jankalyan Sahakari Bank

Jijamata Sahakari Co-op Jijamata Sahakari Bank Co-op Bank

2.ORGANISATION CHART Bajaj Allianz Life Insurance Company

BAJAJ ALLIANZLIFE LIFE INSURANCE BAJAJ ALLIANZ INSURANCE

CHANNEL CHANNEL

BANC ASSURANCE BANC ASSURANCE

CORPORATE CORPORATE

ORGANISATION CHART OF THE BRANCH


ZONAL SENIOR MANAGER ZONAL SENIOR MANAGER

BRANCH BRANCH

SATELLITE BRANCH SATELLITE BRANCH

SALES TAAM MANAGER SALES TAAM MANAGER

INSURANCE CONSULTATIVE INSURANCE CONSULTATIVE

1.What is your ratio of saving of the total income? a) More then 60% c) 50% - 25% b) 60% - 50% d) Less then 25%

> 60% 60%-50% 50%-25% <25% Total

9% 13% 31% 47% 100

SAVINGS

50% 45% 40% 35% CUSTOMER 30% 25% RESPONSE 20% 15% 10% 5% 0%

47%

31% Series1 9% 13%

> 60%

60%-50% 50%-25%

<25%

Interpretation: From the above graph it is clear that 9% of people saving more than 60%, 13% of people saving less than 60%, 31% of people saving less than 50%, 47% of people saving less than 25%. 2.Your saving consist of. a) Post office c) Shares e) Life insurance g) Mutual fund
Post Office Bank FD Shares Land & Building Life Insurance Gold 10% 20% 8% 13% 23% 5%

b) Bank F . D d) Land / Building f) Gold h) All the above

Mutual Fund All the above Total

8% 13% 100

SAVING CONSIST
25% 20% CUSTOMER 15% RESPONSE 10% 5% 0% Post Office Shares Life Insurance 20% 13% 10% 8% 5% 8% 13% Series1

23%

Mutual Fund

Interpretation: From the above graph it is clear that, 10% of people saving in post office, 20% of people savings in Bank FD, 8% of people savings in shares, 13% of people saving consist land and building, 23% of people savings in Life Insurance, 5% of people saving consist in gold,8% of people saving in Mutual Fund, 13% of people saving consist all the above option.

3. What factor consist while making the policy. a) Returns b) Safety

c) Liquidity e) All the above


Returns safety Liquidity Risk cover All the above Total 20% 29% 8% 19% 24% 100

d) Risk cover

FACTOR CONSIST WHILE MAKING POLICY


Series1 29% 30% 25% 20% CUSTOMER 15% RESPONSE 10% 5% 0% Returns safety Liquidity Risk cover All the above 8% 20% 19% 24%

Interpretation:
From the above graph

it is clear that 20% of people wants returns, 29% of people

wants safety,8% of people wants liquidity, 19% of people wants risk cover, 24% of people wants all the above option.

4. Have you invested money in life insurance? a) Yes b) No

Yes No Total

75% 25% 100

MONEY INVESTED IN LIFE INSURANCE

80% 70% 60% 50% CUSTOMER 40% RESPONSE 30% 20% 10% 0%

75%

25%

Series1

Yes

No

Interpretation:
From the above graph

it is clear that 75% respondents invested their money in life

insurance, 25% respondents are not invested. 5. Are you aware of ULIP a) Yes b) No (If no, skip to q no 11)

Yes No

55% 45%

Total

100

AWARENESS OF ULIP

45%
Yes No

55%

Interpretation: Above graph 55% of respondents are aware of ULIP,45% of respondents are not aware of ULIP. 6. In which company you have invested your money? a) LIC c) ICICI
LIC BAJAJ ALLIANZ ICICI OTHERS BLANK TOTAL 42% 17% 8% 9% 24% 100%

b)

Bajaj Allianz .

d) Others

PEOPLE INVESTED THEIR MONEY IN DIFFERENT COMPANIES


24%

42%

9%

8% 17%

LIC BAJAJ ALLIANZ ICICI OTHERS BLANK

Interpretation: Above graph shows 42% respondents invested their money in LIC, 17% in Bajaj Allianz,8% in ICICI prudential, 9% in others and 24% of respondents are not responded well. 7. How do you come to know ULIP? a) Friends c) Newspapers/Magazines e) Others . b) Agents d) Banks

Friends Agents Newspaper/magazines Banks

17% 18% 15% 8%

Others Blank Total

7% 35% 100%

HOW PEOPLE KNOW THE ULIP'S


17%

35%

Friends Agents Newspaper/magzines Banks 18% Others Blank

7% 8% 15%

Interpretation: The above graph shows that 17% of respondents know the ULIPS through friends,18% of respondents through Agents,15% of respondents through News paper and Magazines, 8% of respondents know through banks, 7% of respondents know through others and 35% of respondents are not respondents well. 8. Which plan you have taken? a) Endowment b) Money Back

c) Term Plan e) All the above


Endowment Money Back Term Plan ULIP All the above BLANK Total 17% 29% 16% 8% 4% 27% 100%

d) ULIP

RESPONDENT TAKEN DIFFERENT PLANS

30% 25% CUSTOMER 15% RESPONSE 10% 5% 0% Endowment 20% 17%

29%

27%

16% 8% 4% Series1

Term Plan

All the above

Interpretation: The above graph shows that 17% of respondents have taken Endowment policy,29% of respondents have taken money back policy,16% of respondents have taken term plan,8% of respondents have taken ULIP,4% of respondents have taken others, 27% of respondents not taken.

9. Why you have chosen ULIP? a) Higher Returns b) Liquidity

c) Life cover

d) All the above

Higher returns Life cover Liquidity All the above Blank Total

4% 1% 2% 2% 91% 100%

FACTOR CONSIST WHILE CHOOSING ULIP PLAN

100% 80% CUSTOMER RESPONSE 60% 40% 20% 0% 4% Higher returns 1% Life cover 2% Liquidity 2% All the above Blank 91%

Series1

Interpretation: The above graph shows that 4% respondents wants Higher returns,1% liquidity, 2% life cover, 2% all the above and 91% of respondents are not responded well.

10. What is the premium you are paying per annum? a) 10000 c) 25000-50000
A B 38% 17%

b) 10000-25000 d) 50000-100000

C D BLANK

11% 3% 31%

PREMIUM PAYING PER ANNUM

40% 35% 30% 25% CUSTOMER 20% RESPONSE 15% 10% 5% 0%

38% 31%

17% 11% 3% A B C D BLANK

Series1

Interpretation: The above graph shows that the 38% of respondents paying premium per annum less than 10,000, 17% respondents paying per annum between 10,000- 25,000, 11% respondents paying per annum between 25,000-50,000, 3% respondents paying per annum between 50,000-100,000, blank is 31%. 11.What will influence your Financial Planning? a) Discussion with Family Member

b) Tax Consultant/ C. A c) Insurance consultant /Agents d) Finance Magazines. e) Web site of insurance or Finance company. f) Any other Specify
Discussion with FM Tax consultant/CA IC /Agents Finance Magazine Websites Others Total 47% 22% 7% 14% 1% 9% 100%

FACTOR INFLUANCING FINANCIAL PLANNNING

1% 14%

9%

47%

7% 22%
Discussion with FM Tax consultant/CA IC /Agents Finance Magizine Websits Others

Interpretation: The above graph factors influencing financial planning 47% influencing discussion with family members, 22% tax consultant/CA, 7% Insurance Consultant/ Agents,14% through finance magazines, 1% through web sites of insurance/ Finance Company,9%through others.

12.In future are you interested investing money on ULIP? a) Yes b) No

A B

52% 48%

IN FUTURE PEOPLE WANT TO INVEST THEIR MONEY ON ULIPs


52% 52% CUSTOMER RESPONCE 50% 48% 46%

48%

Series1

Interpretation: The above graph 52% respondents are interested investing money on ULIPs in future, 48% respondents are not interested to invest money in ULIPs.

13. If no why? a) No Interest. b) Lack of Advertisement. c) Busy schedule. d)Others


A B C D BLANK 23% 6% 8% 12% 51%

IN FUTURE PEOPLE DONT WANT TO INVEST THEIR MONEY

23% A B C D BLANK

51%

6% 8% 12%

Interpretation: The above graph 23% of respondents are no interested, 6% lack of advertisement, 8% busy schedule, 12% of respondent says others and 51% of respondents are not responded well. Findings Through all this survey and analyzing what we found is that In the survey it was found that 47% of the respondents are saving less than 25% income this indicates that nearly half of respondent in hubli city are coming under middle class. As our research we found that 55% of people are aware of ULIPs and 45% of respondent are not aware of ULIPs so company has to give more advertisement about the ULIPs .

Through Friends 17% of people are come to know about the ULIPs ,through Agents 18%, 15% through Newspaper / Magazine , 8% through Banks, Others 7% of respondent are come to know 35% of people are not aware of ULIPs so compare to all agents are playing important role & company has to increase more number of agents. 52% of respondent are interested to invest money in ULIPs and 48% of respondent are not interested to invest money in ULIPs so 52% is a potential customer so company can utilize that opportunity. 42% of respondent are invested their money in LIC, 17% in Bajaj Allianz, 8% in ICICI Prudential , 9% in others and 24% of people not at invested. 23% of respondent are not interested to invest their money in ULIPs , 6% lack of advertisement, 8% busy schedule,12% of respondents said others and blank 51%.

Conclusion :
From the over all project and market survey it is clear that Bajaj Allianz Life Insurance Co .Ltd is doing well but most of the people are not aware of ULIPs .

But in the present threading competition they should do more then the present efforts in the following fields. 1. Advertising campaign. 2. Trade promotion activity.

Recommendations
Most of the respondents are not aware of Unit Linked Insurance Plan so company has to give more advertisement about the ULIPs. 45% of respondents are not aware, which should be increased by different medias like TV, Magazines, & News Paper.

The company has to provide proper training or marketing skills to improve the marketability of products. Complete information should be provided regularly to the advisor as well as to the investor. Bajaj Allianz Co should come out with more and more innovative schemes to meet the requirement of every investor Company has to conduct meeting of their agents periodically to access the results and progress of the agents efforts.

QUESTIONNAIRE
Dear Sir / Madam,

1.What is your ratio of saving of the total income? a) More then 60% c) 50% - 25% 2.Your saving consist of. b) 60% - 50% d) Less then 25%

a) Post office c) Shares e) Life insurance g) Mutual fund

b) Bank F . D d) Land / Building f) Gold h)All the above

3. What factor consist while making the policy. a) Returns c) Liquidity e) All the above 4. Have you invested money in life insurance? a) Yes 5. Are you aware of ULIP a) Yes b) No If no, skip goto Q no 11) b) No b) Safety d) Risk cover

6. In which company you have invested your money? a) LIC c) ICICI b) Bajaj Allianz [ .

d) Others

7. How do you come to know ULIP? a) Friends c) Newspapers/Magazines e) Others . b) Agents d) Banks

8. Which plan you have taken? a) Endowment c) Term Plan b) Money Back d) ULIP

e) Any others, Specify 9. Why you have chosen ULIP? a) Higher Returns c) Life cover

b) Liquidity d)All the above

10. What is the premium you are paying per annum? a) 10000 c) 25000-50000 b) 10000-25000 d) 50000-100000

11. What will influence your Financial Planning? a) Discussion with Family Member b) Tax Consultant/ C. A c) Insurance consultant /Agents d) Finance Magazines. e) Web site of insurance or Finance company. f) Any other Specify 12.In future are you interested investing money on ULIP? a) Yes 13. If no why? a) No Interest. b) Lack of Advertisement. c) Busy schedule. d) Others . b) No .

BIBLIOGRAPHY

Marketing Research : Websites :

Hawkins & Tull. www.google.com www.bajajallianz.co.in

Materials : Newspaper :

Journals & Magazines Economic Times. Business Line.