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Chapter No.





Research Methodology


Wor ing o! Company


#ro$lems % suggestions



It gives me immense pleasure to present the project on RURAL DISTRIBUTION AND RECRUITMENT OF CONSULTANT in bajaj Allianz LIC. It was totally different & wonderful experience to be there in BAJAJ ALLIANZ COMPANY, BAHRAICH as summer trainee. I would like to thanks MR ASHUTOSH SINGH( ASSOCIATE AREA MANAGER- BP), FARHAN IQBAL & ASHUTOSH CHAUBEY OF BAJAJ ALLIANZ, for there project guidance as these have been so co-operative & helpful from the first day of project till end. They also helped a lot in enhancing knowledge about the technicalities of insurance sector.

I would like to confesses deep sense of gratitude towards my parents as well as my friends and our group mentor Mis. Tanisha Tondon for their constant encouragement and timely suggestion.

In all it was a great experience of working on this summer training project.

For a management student theoretical knowledge as well as practical orientation expose on self to experience, one can again be mastering it is best possible time. MBA curriculum has been finding turned in such way that a student not apply the theoretical knowledge but also gain it in a practical sense. Thus, objective can be attained thought application of theory tools concept and technique of management. Balanced, theoretical & practical knowledge are essential for every student is conceived in such a way so as to facilitates practical purpose.

To procure objectives the research under to the project A STUDY ON RECRUITMENT OF FINANCIAL ADVISORS IN THE BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED. Secondary data were collected from websites, and journal of Bajaj Allianz Life Insurance Company Limited. Researcher has tried to satisfy the topic of report by help of facts & finding.

E>ecuti=e *ummary

+he main !ocus o! my pro6ect ;as on )HOW TO RECRUIT FINANCIAL ADVISOR IN BAJAJ ALLIANZ LIFE INSURANCE COMPANY5 In this pro6ect I highlighted ;hat are the insurance products: ;hat are the plans? What are the $ene!its and ho; so sell them? +he methodology adopted $y us in selling insurance products ;as !irst segment to approach to natural mar et that is to relati=es: 'riends or *ir etc. +hen ne>t is approach their re!erences and !inally to other un no;n and common people. (!ter ta ing a prior appointment ;e approached them: inter=ie;ed them and selected them eeping in mind the criteria as per the company@s reAuirement IRD( guidelines and also some so!t attri$utes: ;hich ;ere reAuired to $e !inancial ad=isor: ;e also ha=e discussed the concept o! !inancial ad=isor. +o sum up: there has $een sustained e!!orts and dedication in=ol=e to ma e this study a comprehensi=e mar et study $ut at the same time the researcher is open to any ind o! suggestion that !urther needs to $e considered in respect o! the cause o! his ;or .


Insurance is an integral part o! e=eryone@s li!e in present scenario. Insurance or assurance is a de=ice !or indemni!ying or guaranteeing an indi=idual against loss. Reim$ursement $s made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts, called %#REMI,M*&. -ayments for an individual loss, divided among many, do not fall heavily upon the actual loser. The essence of the contract of insurance, called a %#./IC-& is mutuality. The entity that is transferring the risk, which may be an individual or association of any type, including a government or government agency., is called %IN*,RED&. The entity accepting the risk is called the %IN*,RER&. The agreement between the two by which the risk is transferred is called the % #./IC-&. This is a legal contract that sets out exactly the terms and conditions of the coverage. The fee paid by the insured to the insurer for assuming the risk is called %#REMI,M&. This is usually determined by the insurer to fund estimated future claims paid, administrative costs and profits. The major operations of an insurance company are underwriting, the determination of which risks the insurer can take on/ and rate making, the decisions regarding necessary prices for such risks. The underwriter is responsible for guarding against adverse selection, wherein there is excessive coverage of high risk candidates in

proportion to the coverage of low risk candidates. $n preventing adverse selection, the underwriter must consider physical, psychological, and moral ha'ards in relation to applicants. -hysical ha'ards include those dangers, which surround the individual or property, jeopardi'ing the well being of the insured. The amount of the premium is determined by the operation of the law of averages as calculated by the actuaries. By investing premium payments in a wide range of revenue.producing projects, insurance companies have become major suppliers of capital and they rank among the nation0s largest institutional investors.

2(3(3 (//I(N4
+1E C.M#(N-

2(3(3 (llian7 /i!e Insurance Company is a joint venture between two leading conglomerates, 2a6a6 (uto /imited, one of largest manufactures of motorcycles and scooters in the world, and (llian7 (9 of 1ermany one of the largest insurance companies. Bajaj Allian' (ife $nsurance )o. (td. was incorporated on 23th 4arch 3552. The company received the $nsurance #egulatory and 6evelopment Authority *$#6A+ certificate of #egistration *#7+ 8o 229 on 7rd August 3552 to conduct (ife $nsurance business in $ndia. Bajaj Allian' *hareholder Capital 2ase stands at #s. &BB crore with 2a6a6 (uto /imited and (llian7 (9 of 1ermany holding C"D and 2ED stake respectively. $t is the largest pri=ate player in the $nsurance $ndustry in $ndia with a mar et share of around 3"D amongst the private companies and second to ($). The total market share of Bajaj Allian' as of 72st 4arch 3559 is at 23:.

6uring the financial year 355;.3559, Bajaj Allian' has sold over 27 lakh policies and collected about #s. <<77 crore as premium income. =hopping growth of 329: for the F> 355;.59, Assets under management of #s. 773< )rore. $t has paid up #s ?3; crores with $#6A as a caution deposit. Bajaj Allian' has insured lives for sum assure of over #s @;55 crore.

2a6a6 (uto /imited

Bajaj Auto (td, the flagship company of the #s. @555 crore Bajaj group is the largest manufacturer of two.wheelers and three.wheelers in $ndia and one of the largest in the world. A household name in $ndia, Bajaj Auto has a strong brand image loyalty synonymous with !uality brand

customer focus. =ith over 2;,555

employees, the company is a #s. <555 crore auto giant, is the largest 3A7. wheeler manufacturer in $ndia and the <th largest in the world. AAA rated by )risil, Bajaj Auto has been in operation for over ;; years. $t has joined hands with Allian' to provide the $ndian consumers with a distinct option in terms of life insurance products. As a promoter of Bajaj Allian' (ife $nsurance )o. (td., Bajaj Auto has the following to offer . Financial strength and stability to support the $nsurance Business. A strong brand.e!uity. A good market reputation as a world class organi'ation. An extensive distribution network.

Ade!uate experience of running a large organi'ation. A 25 million strong base of retail customers using Bajaj products. Advanced $nformation Technology in extensive use.

Bxperience in the financial services industry through Bajaj Auto Finance (td

(llian7 (9

Founded in 2@?5 in Berlin, Allian' is now present in over C5 countries with almost 2C<,555 employees. At the top of the international group is the holding company, Allian' A1, with its head office in 4unich. Allian' A1 is in the business of 1eneral *-roperty (ife )asualty+ $nsurance/

,ealth $nsurance and Asset 4anagement and has been in operation

for over 225 years. Allian' is one of the largest global composite insurers with operations in over C5 countries. Further, the 1roup provides #isk 4anagement and (oss -revention "ervices. Allian' has insured most of the worldDs largest infrastructure projects *including ,ongkong Airport and )hannel Tunnel between EF and France+, further Allian' insures the majority of the fortune ;55 companies, besides being a large industrial insurer, Allian' has a substantial portfolio in the commercial and personal lines sector, using a wide variety of innovative distribution channels.

(//I(N4 (9< ( 9/.2(/ 'IN(NCI(/ #.WER1.,*E

=orldwide 3nd by 1ross =ritten -remiums . #s.<,<9,9;< cr.

7rd largest Assets Ender 4anagement *AE4+ AE4 of #s.;2,?9,?;? cr.

largest amongst $nsurance cos. .

23th largest corporation in the world

<?.@ : of global business from (ife $nsurance

Bstablished in 2@?5, 225 yrs of $nsurance expertise

Ne; ,nit 9ain #lus

$t is a unit linked plan of Bajaj Allian' that takes care of a person0s wealth by providing flexibilities in savings and investments and options for protection needs. ,G= TG 1BT "TA#TB6H

This gets started by opening an account with a minimum premium ofI

#s 2;555A. p.a. for annual mode. #s C;55A. p.a. for half.yearly mode. #s ;555A. p.a. for !uarterly mode.

+I+/E .' +1E *+,D-F M(R8E+ CREDI2I/I+- .' 2(3(3 (//I(N4

(M.N9 .+1ER #RI0(+E /I'E IN*,R(NCE C.M#(NIE*.

.23EC+I0E*F Wor ing o! the unit<lin ed plans. Comparati=e analysis o! the li!e insurance products a=aila$le in the mar et.
Research methodology used F #rimary data collected $y =isiting

the leading li!e insurance companies li e /IC: ICICI #rudential: (=i=a: 2irla *un /i!e Insurance: 1D'C *tandard /i!e: +ata (I9 Educare: .M 8.+(8 Mahindra. Data CollectionF GaH Iuestionnaires !illed $y =arious income groups. G$HInternet G$y searching a$out the in=estment plans o! other companiesH. (ction planF GaH 'irstly: collecting in!ormation !rom ne;spapers % maga7ines li e Economic +imes: 'inancial E>press: 2usiness India: +he +imes .! India: Internet. G$H*econdly: getting the Auestionnaires !illed Ga$out &BH to !ind out ;hich company they pre!er !or li!e insurance policies: ;hat are the speci!ic !eatures o! their policies: ;hether they treat insurance as an in=estment option or a security option.
*c+ 'inally: analy7ing the data collected and comparing the

insurance companies to sho; the mar et credi$ility o! 2(3(3 (llian7 among other pri=ate li!e insurance companies.

RE*E(RC1 ME+1.D./.9-F<

ME(NIN9 .' RE*E(RC1F <

#esearch is an art of scientific investigation. #esearch means %a careful investigation or in!uiry specially through search for new facts in any branch of knowledge.&

(ccording to Cli!!ord WoodyI .

%#esearch comprises defining and redefining problems, formulating, hypothesis or suggested solutions, collecting, organi'ing and evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis&. #esearch means the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analy'ing the facts and reaching certain conclusions either in form of solutions towards the concerned problem or in certain generali'ation for some theoretical formulation.

The project titled, as )M(R8E+ CREDI2I/I+- .' 2(3(3 (//I(N4 (M.N9 .+1ER #RI0(+E /I'E IN*,R(NCE C.M#(NIE*5 re!uired research to be done. The market credibility re!uired the collection of -rimary 6ata as well as the "econdary data. The credibility literally means the market value and the market positioning of a particular brand or a company among its competitors. BAJAJ Allian' is one of the private life insurance companies, which came into existence in 3552. 4arket credibility can be checked by seeing the awareness of people about a particular company and its share in the market. )omparing the products of term policies as well as the endowment policies.

#rimary data

I Kuestionnaire filled by people interviewed.

*econdary dataI *i+ 6ata collected for companies from various

sites available of the life insurance companies.

*ii+ 6ata collected from newspapers and 8ALs of the various policies of BAJAJ Allian' and other private life insurance companies.

.23EC+I0E* .' RE*E(RC1


To gain familiarity with a phenomenon or to achieve new insights into it.


To portray accurately the characteristics of a particular individual tuation or a group.


To determine the fre!uency with which something occurs or with which it is associated with something else.


To test a hypothesis of a casual relationship between variables.


To discover answers to !uestions through the application of scientific procedures.

+-#E* .' RE*E(RC1

1. DE*CRI#+I0E RE*E(RC1F <

$t includes surveys and fact.finding en!uiries of different kinds. The main purpose of descriptive research is description of the state of affairs, as it exists at present.
2. (N(/-+IC(/ RE*E(RC1F <

Analytical research has to use facts or information already available and analy'e these to make a critical evaluation of the material.
3. (##/IED RE*E(RC1F <

Applied research aims at finding solution for an immediate problem facing a society or an industrialAbusiness organi'ation The certain aim of applied research is to discover a solution for some pressing practical problem.


',ND(MEN+(/ RE*E(RC1F <

$t is mainly concerned with generali'ation and with the


of a theory. Basic research is directed towards finding information that

has abroad base of application and adds to the already existing organi'ed body of scientific knowledge.
&. I,(N+I+(+I0E RE*E(RC1F <

$t is based on the measurement of !uantity or amount. $t is application to phenomena that can be expressed in terms of !uantity That can be expressed in terms of !uantity.


$t is concerned with !ualitative phenomenon that is phenomenon relating to or involving !uality or kind.


)onceptual research is that related to some abstract ideas or theory. -hilosophers and thinkers to develop new concept or to reinterpret existing once generally use it.


Bmpirical research relies on experience or observation alone, often without due regard for system and theory. $t is database research, coming up with conclusions, which are capable of being verified, by observation or experiment.

W.R8IN9 .' +1E C.M#(N-F<

The premiums paid are invested in fundAfunds of your choice *depending on the allocation rate+ units are allocated depending on the price of units for the fundAfunds. The value of your policy is the total value of units that you hold in the fundAfunds. The insurance cover charges are deducted through monthly cancellation of units. The fund Administration )harge and Fund 4anagement )harge are priced in the unit value.

DE(+1 2ENE'I+F $n case of unfortunate death the beneficiaries are entitled to the "um Assured less withdrawals or the bid price of units, whichever is higherH $f the age of the life assured is less than C or above C5, then the bid price of the units is paid. /II,IDI+- .#+I.NF There is no maturity date for this plan. . Anytime after payment of 7 full years0 premiums, you may withdraw the money, depending on your re!uirements, through partial or complete surrender of units.

.#+I.N* a. Choice o! in=estment planF

Bajaj Allian' offers you a choice of < funds. >ou can choose to invest fully in any one fund or allocate your premiums into the various funds in a proportion that suits your investments needs. All the funds will be managed by the asset managers of Bajaj Allian'.

EI,I+- ',NDF This fund provides the scope of high

appreciation over a long term. The fund will primarily invest in e!uities and is expected to match returns given by 8"B 8$FT>. This fund will invest at least ?5: in e!uities and maximum 25: in cash. This Fund $nvestment is in 8"B *8ational "tock Bxchange+ 8$FT> i.e. top ;5 companies.

DE2+ ',NDF This fund provides the scope for steady returns
at low risk through investments in high !uality fixed income securities. This fund will be invested fully in debt instruments. This Fund $nvestment is in 1ovt. Bonds for e.g. $6B$ Bonds, 4utual Funds etc.

2(/(NCED ',NDF The balanced is primarily for those who

prefer mix of steady returns and growth. The balanced fund will invest 75: to ;5: in the e!uity fund and ;5: to C5: in the

debt fund. This Fund $nvestment is in 1ovt. and -rivate )ompanies.

C(*1 ',NDF The cash fund will invest conservatively in

money market short term investments to ensure that return on investments shall never be negative. 255: of this fund will be invested in money market instruments. The price of the units in this fund will never to go down. This Fund $nvestment is in )all 4oney 4arket *operates on the need for cash on hourly basis+.

$. Choice to s;itch $et;een in=estment optionsF

-olicyholder can switch units from one fund to another. The amount switched should be in multiples of 2555, and the minimum switching amount is #s. ;555 or the fund value which ever is lower. Three free switches would be allowed every year. "ubse!uent switches would be charged M 2: of the switch amount or #s. 255 whichever is higher.

c. Choice o! a +op<upF
The policyholder will have the option to increase the regular premium amount at any time. The additional single premium would be treated as a single premium top.up every year. The policyholder will also have the option to increase the amount invested through


a. Increase the death $ene!itF

The death benefit may be increased without any underwriting every 7rd year upto < times. The increase will be allowed upto 3;: of the original sum assured or #s. 2,55,555. =hichever is lower, each timeH ,owever, the maximum age till which this option will be allowed is the attained age of <;yrs of the policy holder. Apart from the increase in death benefit every 7rd year without underwriting, the policyholder may choose to increase the death benefit subject to the maximum of )omprehensive Accidental -rotection, depending on hisAher changing needs. This increase will be subject to underwriting and the cost of underwriting shall be deducted through cancellation of units. The option to increase the death benefit with underwriting ceases at age 95.

$. Decrease the death $ene!itF

6ecrease in the death benefit will be allowed any time, subject to the minimum death benefit being maintained. The death benefit once reduced can be increased subse!uently only subject to underwriting.

c. #remium holiday optionF

)ustomers can opt to pay premiums at their convenience after payment of full 7years premiums. Thereafter, when premium due are not paid, the policy will stay in force with full benefits so long as there is enough units available for charging the cost of insurance and additional benefits after deducting all applicable charges.

d. 'le>i$le Contri$utionF
The person can increaseAdecrease the annual contribution. The maximum decrease in the contributions can be upto 35: of the initial contribution chosen by the person at the time of inception of the policy. ,owever, in no circumstances can the contribution be reduced to below the minimum premium allowed under the plan at that time, or @5: of the initial chosen contribution, whichever is higher. The person has the flexibiltity to increase hisAher contribution without any limits. Any such increase or decrease in contribution will only be allowed on policy anniversaries.

.+1ER 2ENE'I+*

a. (dditional #rotection !or -ou and -our 'amilyF

>ou have the option to add the following four additional benefits, providing total protection against uncertainties. Accidental 6eath Benefit. Accidental -ermanent TotalA-artial 6isablement Benefit. )ritical $llness Benefit *)$+. ,ospital )ash Benefit *,)+.

$. *urrender =alue
This policy ac!uires a surrender value after 7 complete years of the policy, provided the 2st 7 years0 premiums are paid. The "urrender Lalue is 255: of the value of investments.

c. +a> 2ene!its
Lalue of Enits cancelled for )ritical $llness and ,ospital )ash Benefit is eligible for tax relief under "ection @5*6+. 6eath Benefit and =ithdrawals *partial or full+ is tax free under section 25*25+ 6 of the $ncome Tax Act, if the premiums paid in any year does not exceed 35: of the "um Assured or Fund Lalue, whichever is higher. $ncase of change in any tax laws relevant to the policyholder or the fund

performance, the same will be applied as per regulations prevailing at the point of time.

(9E /IMI+* (ge at entryF

4inimum age of entryI 5 years *)ompleted years+ 4aximum age of entryI 95 years *)ompleted years+


Taking care of a child is perhaps the most important job a parent can have. $t is but natural that you would like to give your child your best, and therefore, this is the time when careful financial planning can help you fulfill the aspirations that you have for your children. The Bajaj Allian' %)hild )are& "olutions help you to enjoy the joys of parenthood responsibly, with the reassurance of a secure future for your child.

C1I/D C(RE #/(N .''ER*

)hild )are plan is a children money back plan with profit. Bajaj Allian' )hild )are offers a wide array of solutions that allows you to plan for your child0s future by providing you with as many as < distinct and uni!ue options. 2. )hild )are 32 3. )hild )are 3< 7. )hild )are 32 -lus <. )hild )are 3< -lus

*+(R+ .' /I'E 2ENE'I+

This is a uni!ue feature of Bajaj Allian' %)hild )are& 32 -lus 3< -lus.

These packages offer you the choice of providing a uni!ue "tart of (ife Benefit for your child. For a nominal amount, an additional "um Assured subject to a maximum limit of #s.25 (acks will become payable to enable the child start hiAher professional life smoothly, in case of an unfortunate death or Accidental -ermanent Total 6isability of the -olicy holder during the term of the policy. This benefit will not be available in the event of accidental permanent total disability after age 9; of the policy holder.

IN<2,I/+ 2ENE'I+*

(H #REMI,M W(I0ER 2ENE'I+F $n case of death or Accidental Total -ermanent 6isability of the policyholder during the premium payment term, all future premium

payments are waived. This benefit will not be available in the event of accidental permanent total disability after age 9; of the policy holder.

2H '(MI/- INC.ME 2ENE'I+F $n case of death or accidental total permanent disability of the policy holder during the term of the policy, a monthly income benefit of 2: of the sum assured *23: per annum+ becomes payable till the end of the policy term *subject to a maximum of #s. 2,35,555 per annum+. This benefit will not be available in the event of accidental permanent total disability after age 9; of the policy holder.

CH .#+I.N +. #,RC1(*E ',R+1ER IN*,R(NCE (+ M(+,RI+-F For ensuring continuity of the valuable insurance protection that the child was enjoying, we offer the child and option to purchase a with profits endowment or an e!uivalent plan from Bajaj Allian' (ife $nsurance )ompany for twice the amount of face value of this policy, without any medical examination, on the premium rates prevailing at that time. *The application must be made at least 9 months prior to maturity of this policy+.

#(-.,+ *+R,C+,RE
For )hild )are 32 and )hild )are 32 -lusI The minimum guaranteed payouts are as followsI

#olicy (nni=ersary !ollo;ing completion o! (ge -ayout as : of "um Assured

2@ 35: N Accrued Bonuses

2? 35 32 3;: 3;: 7;:

For )hild )are 3< and )hild )are 3< -lusI The minimum guaranteed payouts are as followsI

#olicy (nni=ersary !ollo;ing completion o! (ge -ayout as : of "um Assured

2@ 3;: N Accrued Bonuses

35 33 3< 3;: 3;: <5:O

refers to probable increase in payout based on higher interest during the payout period.

DE(+1 #(-.,+
$n the event of unfortunate death of the child during the policy terms, the payouts shall be as under

(ge Below C years Above C years and below 2@ years Above 2@ years and below 3< years

-ayout -remiums paid will be refunded without interest and the policy will terminate. "um assured with accrued bonuses will be paid and the policy will terminate. Gutstanding payouts will be paid as one lump sum and the policy will terminate.

1.W +. 9E+ *+(R+ED?

This gets started by opening an account with a minimum premium ofI #s. ;555A. p.a. for annual mode. #s. 3;55A. p.a. for half.yearly mode. #s. 3555A. p.a. for !uarterly mode. #s. C55A. p.a. for monthly mode.

(9E /IMI+*

Eligi$ility Conditions 4inimum age of the policyholder 4aximum age of policyholder 4inimum age of child 4aximum age of child 4inimum -remium 4inimum -remium -ayment Term 4aximum -remium -ayment Term

)hild )are 32 and )hild )are 32 -lus 35

)hild )are 3< and )hild )are 3< -lus 35

;5 5 27 #s.<@;5 ;

;5 5 27 #s.<@;5 ;



4aximum age of child at 32 maturity 4aximum "um Assured #s. ;5,55555

3< #s. ;5,55555

NEW ,NI+ 9(IN #/,* 0s /IC 2IM( #/,*


NEW ,NI+ 9(IN #/,*

/IC 2IM( #/,*

Age Term

5.95 years

23.;9 years

)hoice rests with a minimum 25 years period of payment of 7 years. 4inimum sum assured is ; 4aximum limit up to times the premium paid. #s. 3 lakhs. 4aximum sum assured is as per the limits set per age bands. Lalue of Fund at Bid -rice Bid value of the fund units along with maturity bonus at ;: of the "um Assured. 6eath during the 2st 9 months. 75: of "A N value of units, next 9 months R 95: of "A N value of units. 6eath after 2st year."A Nvalue of units. 6eath during the 25th year. 25;: of "A N value of units.

"um Assured

"urvival Benefit

6eath Benefit

,igher the "um Assured or value of units. ,owever, the value of units will treat as death benefit if the (ife Assured is P C years or Q C5 years.



complete -remature withdrawal allowed

=ithdrawal Benefit withdrawals after7rd year.



price 2 year*after applying bid.offer spread+.


4inimumI #s. 2;,555 p.a

8ot specified. in 8ot available.

Flexibility to Gnly an increase increaseAdecrease contribution is allowed. contribution $nvestment options

B!uity Fund, 6ebt Fund, Balanced, "ecured Balanced Fund, )ash Fund. 8ot available. 8ot available.


$ncreaseA6ecrease Available. of death benefit Bonus -oints Top.up "witch 8ot Available. Available.

Available *chargesI 2.;: of the top.up+.

7 free switches every policy 8o free switches. )ost of year. "ubse!uent switches switches is 3: of the fund would be charged M2: of value. switch amount or #s. 255 whichever is higher.

"urrender Lalue

A sellingApurchase price spread of ;: will be applicable from the 7rd year onwards.

-artial surrender up to ;5: of bid value of units allowed after 7 years from the date of commencement.

Automatic )over Available after the 7rd policy 8ot available. )ontinuance year.

$nitial charge

)harges I 8ot disclosed st nd 2 >ear. 3<: / 3 >ear.7: 7rd >ear. 7:. 8o charges grom <th year onwards. Annual admin. )harges of 2.3;: of net assets. Transaction charge of 5.;: 8ot applicable. of the e!uity investment 5.2: of the debt investments. The bid.offer spread is ;: of 8ot applicable. the offer price.

Admin charges

Gther charges

Bid.offer spread

Fund management Annual investment charge of )harge 2: p.a. of net assets. 2: of the fund per annum #iders AB#A A6B# A )$A,ospital $n Built Accident Benefit. )ash Benefits.

C1I/D C(RE 0s *M(R+ 8ID GICICI #ru.

'E(+,RE* -lan Type 4in 4ax Term C1I/D C(RE Anticipated Bndowment. *M(R+ 8ID Anticipated Bndowment.

4atures when the child reaches the4atures between 33.3; years of age of 32 or 3<. -remium paid till child. Term is 25.3; tears. child reaches age 2@. 5.23 >ears.

4in 4ax Age 2.27 >ears. of )hild 4in 4ax Age 35.;5 >ears. of -arent -ayment 4odes (ife Assured All regular premiums.

35.95 >ears.

All regular premiums.

)hild is insured. But premium -arent. waiver rider available for parent. )hild )hild.

Beneficiary Flexibility benefit structure

in 3 structures I 3 structures I th 2. 4oney is paid on the 2@ , 2. =hen the child reaches the th th st 2? , 35 and 32 year criteria milestones * Sth, *35:N3;:N3;:N7;:+ S$$th, 1raduation, -ost th 3. 4oney is paid on the 2@ , 35 1rad.+ 33nd or 3<th year 3. (ast < year before *3;:N3;:N3;:N<5:+ maturity.

Benefit.6eath of -arent

8one if premium waiver rider is not "A is paid up front. )hild gets the purchased. 1uaranteed payments as chosen earlier.All future premiums are waived off.

Benefit. 6eath of )hild

Q C years R -remiums refunded without interest PC years Q2@

-olicy continues as it is.

>ears R "A N Bonus P 2@ years R Gutstanding payments as a lump sum. Bonus Additions 8ot guaranteed. -aid after the end of7.;: of "A compounded the premium paying term. annually for the2st < years, annual bonuses declared thereafter. Family $ncome #iderA -remium =aiver #ider. A6B# A $B#

#iders available "urrender Lalue

Available after 7 premium paying Available after 7 premium years. paying years.

C1I/D C(RE 0s 1D'C C1I/D #/(N

'E(+,RE* C1I/D C(RE

1D'C C1I/D #/(N

-lan Type 4in Term

Anticipated Bndowment.


4ax 4atures when the child reaches the 25.3; >ears. age of 32 or 3< -remium paid till child reaches age 2@. 4ax 5.27 >ears.


Age of )hild 4in 4ax 35.;5 >ears. Age of -arent -ayment 4odes (ife Assured )hild is insured. But premium -arent. waiver rider available for parent. Beneficiary )hild. )hild. All regular premiums. 2@.95 >ears.

All regular premiums.

Flexibility in 3 structures I The customer has to choose th th benefit 2. 4oney is paid on the 2@ , 2? , amongst 7 separate plans, structure 35th and 32st year with deferring premiums *35:N3;:N3;:N7;:+ based on the plans. th th 3. 4oney is paid on the 2@ , 35 , 33

or 3<th year *3;:N3;:N3;:N<5:+.

Benefit. 6eath -arent

8one if premium waiver rider is not purchased. Gpt for either one of of the plansI 2. "AN Bonuses paid upfront 3. "A N Bonuses paid on maturity. 7. "A paid on death "A N Bonuses paid on maturity.

Benefit. 6eath )hild


Q C years R -remiums refunded without interest PC years Q2@

>ears R "A N Bonus P 2@ years R Gutstanding payments as a lump sum

-olicy continues as it is.

Bonus Additions

8ot 1uaranteed. -aid after the end of the premium -aying term.

"imple #eversionary Bonuses paid maturity.


#iders available "urrender Lalue

Family $ncome #iderA -remium =aiver #ider.8one. Available after 7 premium paying years. Available.

C1I/D C(RE 0s .M 8.+(8 C1I/D (D0(N+(9E



.M 8.+(8 C1I/D (D0(N+(9E

-lan Type 4in Term

Anticipated Bndowment.


4ax 4atures when the child reaches the age of 32 25.75 >ears. or 3<. -remium paid till child reaches age 2@. 5.2C >ears. . All regular premiums.

4in 4ax Age 2.27 >ears. of )hild 4in 4ax Age 35.;5 >ears. of -arent -ayment 4odes (ife Assured All regular premiums.

)hild is insured. But premium waiver -arent. rider available for parent. )hild )hild.


Gne structure only. Flexibility in 3 structures I (ump sum payment th th th benefit 2. 4oney is paid on the 2@ , 2? , 35 made on maturity st structure and 32 year *35:N3;:N3;:N7;:+ which consists of "A or th th nd 3. 4oney is paid on the 2@ , 35 , 33 or accumulated bonuses, 3<th year *3;:N3;:N3;:N<5:+. whichever is higher. $f the child is 2@*then Benefit. 8one if premium waiver rider is not "a or Accumulation 6eath of purchased. paid, whichever is -arent higher. Blse total

premium or "L is paid whichever is higher+.

Benefit. 6eath )hild


Q C years R -remiums refunded without interest PC years Q2@

>ears R "A N Bonus P 2@ years R Gutstanding payments as a lump sum

-olicy continues as it is.

Bonus Additions

8ot guaranteed. -aid after the end of the premium paying term. 8ot guaranteed.

#iders available "urrender Lalue

Family $ncome #iderA -remium =aiver #ider. Available after 7 premium paying years.

A6B#, =G-.


C1I/D C(RE 0s +(+( (I9 ED,C(RE G1J -E(R*H

'E(+,RE* *M(R+ 8ID -lan Type Anticipated Bndowment.

+(+( (I9 ED,C(RE #egular premium endowment plan. -ositioned as a )hild -lan.

4in Term

4ax 4atures when the child reaches the 4atures when the child is Age of 32 or 3<. -remium paid till 2@ years of age. )hild reaches age 2@. 75 days to @ years of age. 8ot applicable.

4in 4ax 5.27 >ears. Age of )hild 4in 4ax 35.;5 >ears. Age of -arent -ayment 4odes All regular premiums.


)hild. till the child (ife Assured )hild is insured. But premium reaches the age 2@ , the waiver rider available for parent. parent will be the policyholder. At 2@, the policy will be transferred in the child0s name. Beneficiary )hild )hild.

Flexibility in 3 structures I benefit 2. 4oney is paid on the 2@th, 2?th, "ingle payment structure.


35th and 32st year 35:N3;:N3;:N7;:+ 3. 4oney is paid on the 2@th, 35th, 33 or 3<th year *3;:N3;:N3;:N<5:+

Benefit. 6eath -arent Benefit. 6eath )hild

8one if premium waiver rider is not -olicy lapses in case payer of purchased. benefit rider is not opted for. of

Q C years R -remiums refunded without interest PC years Q2@

The proceeds are paid to the parent.

>ears R "A N Bonus P 2@ years R Gutstanding payments as a lump sum Bonus Additions 8ot guaranteed. -aid after the Bnd of the premium paying term. 1uaranteed R 25: of "A paid at maturity or death provided the policy has been in force for 25 years. -lus a guaranteed education benefit of 35: of the "A paid at the maturity. #ider.

#iders available

Family $ncome =aiver #ider.


-remium -ayor Benefit premium waiver.

"urrender Lalue

75: of the premiums paid*excluding the 2st premium extra premium Available after 7 premium paying , if any+ provided 7 annual years. premiums have been paid in full.

'INDIN9* (ND (N(/-*I* +here ;ere a$out 1B Auestions in the Auestionnaire on the $asis o! ;hich the !indings ;ere done and the analysis ;as made. +he responses to the Auestions in the Auestionnaire are presented in the !orm o! statistical tools such as pie charts and $ar charts. +here ;ere &B people $eing inter=ie;ed !rom di!!erent income groups and age groups.
1. Do you ha=e a li!e insurance policy? I! yes: then o! ;hich


28% Yes No 72%


6%0% 28%

Bajaj Allianz LIC Max Newyork ICICI r! "A"A AI# Birla s!n li$e

6% 3% 17%



Gut of the ;5 insurable people interviewed nearly C3: people have taken insurance policy. Gut of this population being interviewed nearly 73 : had ($) policy, 3@ : had BAJAJ Allian', followed by $)$)$ -ru. *2C :+, 4ax 8ew >ork (ife *@ :+ , TATA A$1*7:+, Birla "un (ife *9:+, Aviva and ,6F) having 9: shares each in the interviewed population.

2. Do you see insurance policies as an in=estment alternati=e or a security option?


In&es'(en' Al'erna'i&e )e*!ri'y +,'ion


Gut of the ;5 people interviewed C@ : people termAsee insurance policy as a security option while only 33 : see it as an investment option.

3.#lease ran the !ollo;ing as per your pre!erence to in=estment in a !inancial yearF


20 110 0

1No3 o$ ,eo,le2


M!'!al /!n0s

Li$e ins!ran*e

#o&ern(en' Bon0s

1In&es'(en' al'erna'i&es2

.ut o! &B $eing inter=ie;ed: 1J people in=est in li!e insurance policies: 1E people in=est in shares: 12 people in=est in mutual !unds and " people in=est in go=ernment $onds.

".What is your criteriaLcriterion to select a particular insurance company and a scheme?


20 20 15 8 10 5 0 2 1-


"i(e s,an

Marke' s.are


All o$ '.e a5o&e

.ut o! &B people $eing inter=ie;ed: 1& people select an insurance company on the criterion o! security: & people select an insurance company on the criterion o! time span: 2 people select an insurance company on the criterion o! mar et share: J people select an insurance company on the $asis o! return and 2B people select an insurance company on the $asis o! all the a$o=e mentioned reasons.

&. Ran the li!e insurance companies in the your order o! pre!erence F


BA7A7 Allianz



ICICI r!0en'ial Max Newyork 89/C


.ut o! &B people inter=ie;ed: "ED had 2(3(3 (llian7 as their !irst pre!erence !or a p=t. /i!e insurance company !ollo;ed $y ICICI #rudential ha=ing 2" D pre!erence !ollo;ed $y 1D'C /i!e insurance ha=ing 1ED mar et share and lastly Ma> Ne; -or /i!e Insurnce.

E. Do you thin that pri=ate li!e insurance companies are as sa!e as /IC !or ta ing a policy?


Yes 38%
Yes No

No 62%

.ut o! &B people $eing inter=ie;ed: E2 D o! people do not !ind pri=ate li!e insurance companies to $e sa!e !or $uying a li!e insurance policy ;hereas 3J D people !ind them sa!e !or $uying a li!e insurance policy !rom a pri=ate li!e insurance company.

C. 2(3(3 (llian7 is Auite a !amous company $ecauseF



16% 60% 20% 26%

A4:N" C+M ANI:) M;"#3 AN9 A9%3 )"4A":#I:) All +/ "8: AB+%:

.ut o! &B people inter=ie;ed: 1E D people percei=e policies o! 2(3(3 (llian7 ma e it a !amous company ;hile 2BD thin it is due to the parent companies: 2"D ta e it as mar eting and ad=ertising strategies ;hich appeal to the mass population ;hile "B D thin it is all due to the a$o=e mentioned reasons that 2(3(3 (//I(N4 is a !amous company.

J. (re you satis!ied ;ith your e>isting policyLpolicies?


No' sa'is$ie0 31% )a'is$ie0 6<%

Sat s! e" Not sat s! e"

.ut o! &B inter=ie;ed: EMD o! the people ;ere satis!ied ;ith their li!e insurance policies ;hile only 31D o! people ;ere not satis!ied.

Analysis of a research project is based on the primary data and secondary data which is being collected from various sources to take out some conclusions of the research study being taken. $n my project my purpose was to find the market credibility of BAJAJ Allian' among various other private life insurance companies. For this a population of ;5 people was being interviewed having different lifestyles, different incomes, different occupations yet the point which was kept in mind was that this interviewed population was insurable.

The !uestionnaire filled up by people revealed that nearly 79 people i.e. about C3: people have life insurance policies. This is due to the fact that people now have started reali'ing that life is very uncertain and it is advisable to have a life insurance policy. 8early, 3< : people had ($) policy and 35: people have BAJAJ Allian' as their life insurance policy. The reason that people have more ($) policy is that it is an old company for life insurance and secondly it is a government controlled organi'ation. "econdly, when en!uired about the perception of people about insurance policies, nearly 7? people i.e. about C@: people see it as a security option for their families financially so that if they are not alive some day, their family does not go in vain. =hile 22 people i.e. about 33: people see it an investment option to save taxes and get returns. Thirdly, when asked about their investments in various alternatives, 2@ people gave life

insurance policies their first preference for investment whereas 29 gave shares as their first preference followed by mutual funds *23+ and lastly government bonds. This clearly shows that people are risk averse to a large extent as largest numbers of people like to invest in life insurance policies to make sure that there is security. Fourthly, when they were asked about the criterion of choosing a life insurance company 2; people replied that they see the security point of view to buy a life insurance company. ; people chose time span as the criteria to choose a life insurance company. 3 people chose the market share of the company as the preferred criteria of choosing the life insurance company. @ people chose the returns of life insurance companies as the criteria for choosing a life insurance company. 8early, 35 people chose all the above mentioned reasons to choose a life insurance company. =hen the sample population was interviewed about their 2st preference among the pvt. -layers, nearly <9 : people chose BAJAJ Allian' as the 2st insurance company, 3< : people chose $)$)$ -rudential as the 2st preference, and 29 : chose ,6F) as the 2st insurance company and 2< : people chose Birla "un life as the 2st preferred company. =hen sample si'e was asked about safety ness of an insurance policy as compared to ($) policy nearly 93 : people replied that they do not find private life insurance companies as safe as ($), this is due to the fact that ($) had monopoly into life insurance till 3555. Gnly after 3555, private companies have come

in the field of (ife $nsurance )ompany. -roceeding further, when sample population was asked to recogni'e the punch line of BAJAJ Allian' nearly 95 : of the population was able to recogni'e the punch line of BAJAJ Allian' which clearly indicates that BAJAJ Allian' is a well known life insurance company among the people. Followed by it, when sample si'e was interviewed about the reasons of famousness of BAJAJ Allian' 29 : of people chose its policies as the reason for its famousness, 35: people chose its parent companies as the reason for its popularity, 3< : agreed for its marketing and advertising strategies to be the prime cause of its popularity among masses. =hereas <5 : population agreed to all of the above mentioned reasons to be causes of the popularity of BAJAJ Allian'. =hen asked about the satisfaction with the existing insurance policies nearly 9?: people said that they are satisfied with their policy whereas only 72: people were not satisfied with their policy. They wanted the additional features of transparency about the returns after when they have stopped paying the premiums. Also they wanted higher rate of returns at the end of payment of premiums.

',+,RE 9R.W+1 % *,99E*+I.N*

2(3(3 (//I(N4: in the present scenario is gro;ing at an aggressi=e pace. +he company does a lot o! sur=ey % analysis in the mar et to disco=er customer@s needs % e>pectations % tries to impro=ise on its e>isting mar et lin ed plans along ;ith insurance policies. In addition to this : the company !rom time to time eeps on introducing =arious ne; policies % tailor made plans e>clusi=ely to cater peoples@ !inancial needs. +his has ena$led 2(3(3 (llian7 to $ecome mar et leader in the sector o! insurance % in=estment companies since 2BB1 ;hen it came into e>istence. "ince, now many other companies are joining the field of insurance investments, it will be necessary for BAJAJ Allian' to vigorously pursue update its survey it should discover analysis policy to remain market leader. "imultaneously, rediscover its strength by introducing new plans better it can provide investments but

suited to the people at large. $ndia is a very big market sustenance to all the companies in the field of insurance

to remain one of the leading companies, BAJAJ Allian' has to adopt new strategies earlier than others. This could include widening the distribution networks to all parts of the country by becoming more appealing catering to every income group. promotion campaigns Furthermore, it can improvise on its advertisements

making them touches the hearts of millions

billions of $ndians who are the hot prospects. (astly, the students in the professional courses, apprentices, trainees may be good targets to approach in times ahead.


The research project titled as %M(R8E+ CREDI2I/I+- .' 2(3(3 (//I(N4 (M.N9 .+1ER /I'E IN*,R(NCE C.M#(NIE*5 enabled to understand the competition among the various life insurance companies which have entered $ndian market of life insurance after 3555 when private life insurance companies were allowed to enter the (ife insurance sector in $ndia. BAJAJ Allian' is one of the companies in the private sector which are doing exceptionally good in this sector due to their policies to which people find very attracting according to their needs. =hen people were interviewed about the first preference among the private life insurance companies nearly <9: replied for BAJAJ Allian', this clearly indicates that BAJAJ Allian' is !uite a household name. The reasons for this are many like it is a company with very strong brand namesI BAJAJ Auto (imited which is the no. 2 Automotive 4anufacturer in $ndia also Allian' A1 is 7rd largest life insurance company in the world. The market share of BAJAJ Allian' also around 7<: among private life insurance companies which is !uite high among private life insurance companies. $t is only second to ($) in the life insurance sector. 2ut i! there are people accepting 2(3(3 (llian7: there are people ;ho are still hesitant to ta e up pri=ate insurance company@s policy this is due to the !act that /IC is a go=ernment organi7ation. It can $e seen !rom the study that people ha=e started recogni7ing 2(3(3 (llian7 as a li!e insurance and hence it ;ill gro; at a much !aster pace in the !uture.

DI''IC,/+IE* '(CED

Following were the difficulties faced during the completion of projectI

8on filling up of certain !uestions of the !uestionnaire which led to the cancellation of that particular !uestionnaire. 8on understanding of certain parameters in the !uestionnaire. Taking a sample si'e of ;5 people does not reflect the mindset of all kinds of people from different backgrounds, different age groups and income groups.

Again research study of 3 months is a time constraint and covering whole of 6elhi population by taking a sample si'e of ;5 is not feasible.

ANNEXURES (study -2)
Quessionaaire 1. Name: 2. Age: 3. Phone no.(O) : (R): 4. Occupation: 5. Address: 6. Do you think life insurance cover is important for all? a. )yes b.)No

7. What is the preffered area for selecting the life insurance policy? a. ) Term/Duration of the policy b.) Annual premium c. ) Brand name of the company d.)Others (plzspec.) 8. Do you think that life insurance policy is enough to cover your life? a.) Yes b.) No 9. Are you going to take policy in the near future ( within 6 months )? a.) yes b.) No 10. Which premium term is suitable for you? a.)Qurterly b.) Half yearly c.) Annual d.) Single premium 11. How much premium amount you are ready to pay?

a.) 8000-12000 b.) 13000-15000 c.) Above 15000 12. What should the appropriate maturity age of policy? a.) less than 10 yrs b.) 10-15 yrs c.) 15-20 yrs d.)more than 20 yrs

13. According to you which is the most growing insurance company? a.) Bajaj Allianz b.) ICICI pru c.)Kotak Mahindra c.)others (plz specify) 14. Do you think that after sales services are important? a.)yes b.) no

2I2/I.9R(#1 -hilip

Fotlar, 4arketing 4anagement, 8ew 6elhi, -earson

Bducation *-+ (td., $ndian Branch, 355<. ).#. Fothari, research 4ethodology, 8ew 6elhi, 8ew Age $nternational *-+ (td.