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COMPARATIVE STUDY OF

BAJAJ-ALLIANZ
WITH LIC & ICICI PRUDENTIAL
PROJECT REPORT
2011

SUBMITTED BY

PUNEET GUPTA
In the partial fulfillment of the requirement of
Master of Business Administration (2010-2012)

T.JOHN BUSINESS SCHOOL
BANGALORE

ACKNOWLEDGEMENT
At the outset, I would like to express my deep sense of gratitude and sincere
thanks to Prof. S.K Nayak, Principal, T.JOHN Business School Bangalore,
for providing an opportunity to discover the corporate world, froma close
perspective.
Once again Prof. S.K Nayak, My Principal and internal guide for this project to
whom I am deeply grateful for his constant support and guidance without which
it would not have been possible for me to complete this project in time.
I take this opportunity to extend my sincere gratitude to Mr. Vishwamitra
Verma (Sales Manager), for giving me an opportunity to undertake internship
training and the project on the topic Organization Study.
I extend my sincere gratitude to Mr. Shyam Lal Pandey for his directions,
suggestions and information provided which were of utmost importance for the
successful completion of the project.
I convey my gratitude to all the staff members of Bajaj Allianz Life Insurance
Co. Ltd, for their kind co-operation and guidance through out my project.

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INDEX
1

INTRODUCTION
 History of Insurance

2
3

4
5
6
7
8
9
10

5
7

 Types of Insurance

12

 Overview of Life Insurance Sector in India

18

 Indian Insurance Industry

21

IRDA

29

COMPANY PROFILES
 Bajaj Allianz

35

 Life Insurance Corporation of India

44

 ICICI Prudential

50

COMPARATIVE STUDY

59

 Market Share Analysis

60

 Comparison on the Basis of Attributes

61

RESEARCH METHODOLOGY

71

ANALYSIS

75

FINDINGS

82

CONCLUSION

84

RECOMMENDATIONS

85

BIBLIOGRAPHY

87

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small periodic contributions by the individuals provide a found out of which those who 4 .INTRODUCTION Insurance is a social device where uncertain risks of individuals may be combined in a group and thus made more certain .

the insurance Industry is an efficient conduit for the saving of people to be channeled towards economic growth. Nor is it gambling. it is monopolized by two PSU's in their respective fields of life and General Insurance. Insurance is not necessarily an investment from which one expects to get one's money back. Insurance is a way to share risk with others. to pay 5 . particularly with regard to the status of intermediaries as envisaged by the Insurance Regulatory Authority. while insurance offers protection against risks that already exist. Since ancient times. This will provided much. In India.suffer losses may be reimbursed. the Insurance Industry7 is more than 150 years old. However. with the successful passage IRDA Bill through both houses of parliament in December 1999 the sector has been opened up to private players. Needed impetus to the Industry and will improve the quality of service and products and will also increase employment opportunities. Today. "Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums. There are still some issues their need to be sorted out. communities have pooled some of their resources to help individuals who suffer loss. In addition to being a means to protect oneself. A gambler takes risks.

Insurance companies collect premiums to provide for this protection. in a Life Policy. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. by paying a premium to the Insurer.. It is a system by which the losses suffered by a few are spread over many. exposed to similar risks. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected. Insurance is desired to safeguard oneself and one's family against possible losses on account of risks and perils.the other party called insured a fixed amount of money on the happening of a certain event." “Insurance is a protection against financial loss arising on the happening of an unexpected event. HISTORY OF INSURANCE 6 .” For example. By taking life insurance a person can have peace of mind and need not worry about the financial consequences in case of any untimely death. the family of the insured person receives a fixed compensation on the death of the insured.

Each member made regular payments to the association in return for coverage of funeral expenses or for assistance to family members who were injured or ill. If the ship failed to return. Insurance also existed in 17th-century England. the merchant received payment for the goods and in turn paid the moneylender. which was then one of the world's principal maritime powers. and debts were paid more often than cancelled. The Babylonians and Phoenicians had ocean marine insurance to protect a merchant against losses incurred when a ship did not reach its intended destination with its load of goods or did not return with payment. Those seeking marine insurance would post a list of their cargo and voyages in a London coffee house 7 . If the ship reached its destination and returned. evolved because the goods on board often were used as collateral for a loan. to cover the cost of the respondent contract. called respondent. This form of insurance. associations had a form of insurance for their members.Insurance has been around since ancient times. the debt was cancelled. In ancient Rome. the premium. This system was profitable to lenders because many respondent contracts were sold. The lender charged the borrower interest on the loan and levied an additional sum.

owned by Edward Lloyd. Private investors would examine the list and
sign their name by the entries they were willing to guarantee for a fee.
These private investors were the first insurance underwriters, and the
coffee house became the world center of marine insurance. Today the
organization is known as Lloyds of London, and it brings together
individuals, most often working in syndicates, who write all types of
insurance.
Insurance in the modern form originated in the Mediterranean during 14th
century. The earliest references to insurance have been found in Babylonia,
the Greeks and the Romans. The use of insurance appeared in the account
of North Italian merchant banks who then dominated the international
trade in Europe at that time. Marine insurance is the oldest form of
insurance followed by life insurance and fire insurance. The patterns that
have been used in England followed in other countries also in these kinds
of insurance
The oldest and the earliest records of marine policy relates to a
Mediterranean voyage in 1347. In the year 1400, a book written by a
merchant of Florence, indicates premium rates charged for the shipments
by sea from London to Pisa.

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The early developments of life insurance were closely linked with that of
marine insurance. The first insurers of life were the marine insurance
underwriters who started issuing life insurance policies on the life of
master and crew of the ship, and the merchants. The early insurance
contracts took the nature of policies for a short period only. The
underwriters issued annuities and pension for a fixed period or for life to
provide relief to widows on the death of their husbands. The first life
insurance policy was issued on June 18, 1583, on the life of William
Gibbons for a period of 12 months.
The history of life insurance in India dates back to 1818 when it was
conceived as a means to provide for English Widows. Interestingly in
those days a higher premium was charged for Indian lives than the nonIndian lives as Indian lives were considered more risky for coverage. The
Bombay Mutual Life Insurance Society started its business in 1870. It
was the first company to charge same premium for both Indian and nonIndian lives. The Oriental Assurance Company was established in 1880.
The first general insurance company- Tital Insurance Company Limited
was established in 1850. Till the end of nineteenth century insurance
business was almost entirely in the hands of overseas companies.

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Insurance regulation formally began in India with the passing of the Life
Insurance Companies Act of 1912 and the Provident Fund Act of 1912.
Several frauds during 20's and 30's sullied insurance business in India.
By 1938 there were 176 insurance companies. The first comprehensive
legislation was introduced with the Insurance Act of 1938 that provided
strict State Control over insurance business. The insurance business grew
at a faster pace after independence. Indian companies strengthened their
hold on this business but despite the growth that was witnessed,
insurance remained an urban phenomenon.
The Government of India in 1956, brought together over 240 private life
insurers and provident societies under one nationalized monopoly
corporation and LIC was born. Nationalization was justified on the
grounds that it would create much needed funds for rapid
industrialization. This was in conformity with the Government's chosen
path of State- led planning and development.
The (non-life) insurance business, however, continued to thrive with the
private sector till 1972. Their operations were restricted to organized
trade and industry in large cities. The general insurance industry was
nationalized in 1972. With this, nearly 107 insurers were amalgamated

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The New India Assurance Company Ltd.National Insurance Company Ltd. The Oriental Insurance Company Ltd.. TYPES OF INSURANCE GENERAL INSURANCE: The basis for general insurance is "transfer of risk". Without the insurance you would have to pay for that loss yourself. These were subsidiaries of the General Insurance Corporation of India (GIC). and United India Insurance Company Ltd.. 11 . This means that the insurer agrees to compensate you if you suffer a loss.and grouped into four companies.

or "accidental loss or damage" i. it covers damage caused by your car to another person's property. will cost more in payouts than what is received in premiums. "third party property" i. This is determined by the use of statistics and the information you disclose on your application for insurance.e.e.e. it covers damage partly for damage caused by your car to another person's property. This type of insurance will not cover you for the cost of repairs to your own car.e. and restricted cover for damage to your car cause by theft or fire.e. This includes: HOME CONTENTS: It can either be "defined event" i. MOTOR VEHICLE: It can either be "comprehensive" i. or the total number of people buying insurance.g. all accidental loss with some exclusions. it covers any damage to your car as well as damage to the other car or another person's property. storm or fire. the policy covers loss or damage from a list of "defined" events. "third party fire and theft i. e. 12 .Obviously this contract is made on the basis that the insurance company calculates the risk that you.

Term life is the simplest and least expensive type of policy. in the event that you become disabled and unable to work. Hence to make the Definition of General Insurance inclusive we can say that all the policies which do not fall under Life Insurance category fall under the General Insurance category. universal life. it is an essential component in planning for the future. Along the same lines you can purchase "trauma insurance" to cover a medical trauma such as a heart attack. In general. And there are three main categories of life insurance: term life. depending on your situation.INCOME PROTECTION: With this type of insurance the insurer agrees to pay you a specified amount of money. It's pure 13 . LIFE INSURANCE: Life insurance is insurance that will protect your family and/or specified dependents in the event of the policy holder’s death. There are many options with coverage. Also in the modern day world a number of utility specific insurance policies are being launched by the various players in the insurance market in an effort to stay one step ahead of their competitors. and whole life insurance. usually in monthly payments.

It simply provides insurance protection for a period of time and only pays a benefit 14 . your death. Whole life insurance provides permanent protection for your dependents while building a cash value account.insurance with no cash value account. upon a specific event. A term life policy has only one function: to pay a specific lump sum to whomever you've designated. KINDS OF LIFE INSURANCE PRODUCTS TERM LIFE INSURANCE: Term life insurance is the easiest form of life insurance. the insurance company manages the policies various accounts. With this type of insurance. Universal life insurance provides permanent protection for your dependents and is more flexible than whole or variable life.

000 decreasing term policy.000 of coverage until the ten years are over. At the end of the ten years this level term life insurance policy would expire.000 benefit at the beginning of the policy. INCREASING TERM LIFE INSURANCE: 15 . For example.during that period. This amount would gradually decline over the 30-year term and would pay out Rs 0 at the end of the term. decreasing term. and increasing term. and would pay out no benefits. Since term life insurance has no cash value. There are three basic forms of term life insurance: level term. LEVEL TERM LIFE INSURANCE: Level term life insurance provides an equal amount of protection for a period of time. an Rs 150. DECREASING TERM LIFE INSURANCE: Decreasing term life insurance is a policy where the benefit amount decreases gradually over the term of the protection.000 ten-year level term life insurance policy pays out Rs 150. wound pays an Rs 200. the amount of protection in this policy is equal to its death benefit. for example. A 30 year Rs 200.

whole life insurance combines insurance protection with savings benefit. your premium term life insurance rates are based on either your current age. The cash value of this type of insurance builds over the life of the policy.. The advantages of whole life insurance plans are cash values. Another benefit of whole life insurance policies is that they are designed to mature at the age 16 . which provides only death protection. WHOLE LIFE INSURANCE: Whole life insurance is a popular life insurance plan because it provides permanent protection. Also the policy's premiums and benefits remain constant throughout the policy's life. and living benefits. Depending on how your policy is set up. When changing the policy. or the age when you originally took out the policy. you could be paying much lower interest rates that you would have normally qualified for. Unlike term life insurance. maturity at age 100.Increasing term life insurance policies provide a payout benefit that gradually increases at periodic intervals. This is because whole life insurance plans are given a certain guaranteed interest rate. provided premiums are paid. These increase amounts are usually a percentage of the original amount.

This added flexibility allows the policy owner to determine the amount and frequency of premium payments and to adjust the benefit payout amount up or down to reflect changes in needs. the cash value of the policy has come to the point when it equals the face amount of the policy. UNIVERSAL LIFE INSURANCE: Universal life insurance is a variation of whole and term life insurance. regardless of whether or not the policy owner pays the premium. and the policy is completely paid out to the policy owner. This means that at age 100. OVERVIEW OF THE LIFE INSURANCE SECTOR IN INDIA 17 . The premium rate for a whole life insurance is based on the assumption that the insured would be paying premiums until the age of 100.. no more premiums are owned. At this point the policy has completely matured..of 100. Universal life insurance policies remain in force as long as there enough cash value to pay the monthly mortality expenses. with added flexibility and transparency.

health insurance and non-life insurance continue to be below international standards. Insurance happens to be a mega opportunity in India. can enable investments in infrastructure development to sustain economic growth of the country.Yet. The Insurance sector. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. It is estimated that over the next ten years India would require investments of the order of one trillion US dollars. nearly 80 per cent of Indian population is without life insurance cover. With a large capital outlay and long gestation periods. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. to some extent. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. infrastructure projects are fraught with a multitude of risks throughout the development. it adds about 7 per cent to the country’s GDP. Together with banking services. 18 .With largest number of life insurance policies in force in the world. This is an indicator that growth potential for the insurance sector is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability.

Insurance is a federal subject in India. Under the current guidelines. they also contribute long-term funds. These include risks associated with project implementation. The Government of India liberalized the insurance sector in March 2000with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill. International Insurance companies also invest their funds in such projects.construction and operation stages. insurance companies are an ideal source of long term debt and equity for infrastructure projects. With long term liability.1999.The Insurance Act. they get a good assetliability match by investing their funds in such projects. commercial and political risks. Insurance companies not only provide risk cover to infrastructure projects. including geological risks.1938 and the IRDA Act. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. maintenance. In fact. there is a 26 percent equity cap for foreign partners in 19 . There are two legislations that govern the sector. especially because the financing of most private projects is on a limited or nonrecourse basis. Without covering these risks the financial institutions are not willing to commit funds to the sector.

A host of private insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001. There is a proposal to increase this limit to 49 percent. INDIAN INSURANCE INDUSTRY Insurance industry.4.2000. comprised mainly two players: Life Insurers: 20 . Premium rates of most general Committee.an insurance company. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. as on 1.

United India Insurance Company Limited. The New India Assurance Company Limited. National Insurance Company Limited 4. 1. namely: Life Insurers: 21 . a National Reinsurer) GIC had four subsidiary companies. Life Insurance Corporation of India (LIC) General Insurers:  General Insurance Corporation of India (GIC) (with effect from Dec'2000. namely (with effect from Dec'2000. these subsidiaries have been de-linked from the parent company and made as independent insurance companies. Yr: 2000-2001: (From 2nd April '2000 to 31st December'2001) Insurance Industry in the year 2000-2001 had 16 new entrants. The Oriental Insurance Company Limited 2. 3.

01.2000 Max New York Life Insurance Co.2001 Kotak Mahindra Old Mutual Life Insurance Limited 5 109 31. Ltd.2001 SBI Life Insurance Company Limited. 2 104 15.08.08. 3 105 24. 1 101 23. 8 114 02. Reg.2001 Metlife India Insurance Company 22 .2001 ING Vysya Life Insurance Company Private Limited 9 116 03.03.2001 Birla Sun Life Insurance Company Ltd.2001 Bajaj Allianz Life Insurance Company Limited 10 117 06.02.11.2001 Tata AIG Life Insurance Company Ltd.08. 6 110 12.01. 7 111 30.2000 ICICI Prudential Life Insurance Company Ltd.S.10.No.2000 HDFC Standard Life Insurance Company Ltd.11. 4 107 10. Date of Name of the Company Number Reg.

2000 Royal Sundaram Alliance Insurance Company Limited 2 103 23.No Registratio Date of Name of the .10. Ltd.Pvt.10. General Insurers : S. Registratio Company n Number n 1 102 23.2000 Reliance General 23 .

Insurance Company Limited. 5 113 02.2001 TATA AIG General Insurance Company Ltd.2001 ICICI Lombard General Insurance Company Limited. Yr: 2001-2002: (From 1st Jan 2001 to Dec. 2002) Insurance Industry in this year. namely 24 .2000 IFFCO Tokio General Insurance Co.01. so far has 5new entrants. Ltd 4 108 22.08.12. 3 106 04.2001 Bajaj Allianz General Insurance Company Limited 6 115 03.05.

2002 Export Credit Guarantee Corporation Ltd.2002 HDFC-Chubb 25 .No Registratio Date of Name of the . India 2 Pvt.200 Aviva Life Insurance Co. Number Reg. Date of o.2002 Cholamandalam General Insurance Company Ltd. 2 122 Name of the Company General Insurers : S. 3. Ltd. 14. 124 27. 2.Life Insurers: S.08.N Reg.07. 125 27.01.200 AMP Sanmar Life Insurance 2 Company Limited. 1 121 03.08.05. Registratio Company n Number n 1 123 15.

Yr: 2004-2005: Insurance Industry in this year. so far has 1new entrants. Ltd. Yr: 2003-2004: (From 1st Jan 2003 till Date) Insurance Industry in this year. so far has 1new entrants.General Insurance Co. Registration Name of the Company Number 1 127 Sahara India Insurance Company Ltd. namely Life Insurers: 26 . namely Life Insurers: S.No.

General Insurers transact the rest. 27 .No.2005 Shriram Life Insurance Company Ltd. No composites are permitted as per law. INSURANCE BUSINEES: Insurance business is divided into four classes: 1) Life Insurance 2) Fire Insurance 3) Marine Insurance and 4) Miscellaneous Insurance.S. Registration Date of Reg. Name of the Company Number 1 128 17. Life Insurers transact life insurance business.11.

1999. The reforms procedures recognized simultaneously the need for development of the sector in addition to the traditional concept of regulation and thus conferred on the Authority the obligation to develop the sector as well. OBJECTIVES  To protect the interest of and secure fair treatment to policyholders: 28 .THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA) A faster development and wider impact of the insurance industry were to be achieved through a process of insurance reforms resulting in the liberalization of the market and in the passage of the Insurance Regulatory and Development Authority (IRDA) Act.

and to provide long terms funds for accelerating growth of the economy.  To set. monitor and enforce high standards of integrity. To bring about speedy and orderly growth of the insurance industry. for the benefit of the common man. financial soundness.  To ensure speedy settlement of genuine claims. clear and correct information about products and services and make them aware of their responsibilities and duties in this regard. promote. IRDA POWERES AND FUNCTIONS 29 . to prevent insurance frauds and other malpractices and put in place effective grievances redressed machinery. transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players.  To promote fairness. fair dealing and competence of those it regulates:  To ensure that insurance customers receive precise.

withdraw. nomination by policy holders. which will include the following main functions (excerpts):  Issue to the applicant a certificate of registration. IRDA will: regulate. modify. promote and ensure orderly growth of the insurance business and reinsurance business. 30 .  Specifying requisite qualifications. surrender value of policy and others terms and conditions of contracts of insurance. renew.Subject to the provisions of IRDA Act (1990). settlement of insurance claim. code of conduct and practical training for intermediary or insurance intermediaries and agents.  Protection of the interest of the policy holders in matters concerning assigning off policy.  Promoting and regulation professional organizations connected with the insurance and re-insurance business. suspend or cancel such registration. insurable interest.

undertaking inspection of. insurance intermediaries and other organizations connected with the insurance business. Levying fees and other charges for carrying out the purposes of the Act.  Specifying the percentage of life insurance and general insurance business to be undertaken by the insurer in the rural or social sector. conducting enquiries and investigations including audit of the insurers. intermediaries. 31 .  Calling for information from.

PROTECTION OF THE INTEREST OF POLICY HOLDERS IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this objective.IRDA has so far granted registration to 12 private life insurance companies and 9 general insurance companies. there are currently 13 insurance companies in the life side and 13 companies operating in general insurance business. General Insurance Corporation has been approved as the "Indian rein surer" for underwriting only reinsurance business. If the existing public sector insurance companies are included. the Authority has taken the following steps:  IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policy proposal documents in easily 32 .

understandable language.  All insurers are required to set up proper grievance redress machinery in their head office and at their other offices. and policyholders' servicing. claims procedure in both life and nonlife. The Regulation also provides for payment of interest by insurers for the delay in settlement of claim.  The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to payment of claims. The advertisements issued by the insurers should not mislead the insuring public. speedy settlement of claims. terms and conditions under the policy.  It is obligatory on the part of the insurance companies to disclose clearly the benefits. setting up of grievance redress machinery. 33 .

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is a union between Allianz AG. one of India’s most respected 35 . Ltd.BAJAJ-ALLIANZ: COMPANY PROFILE Bajaj Allianz Life Insurance Co. the world’s leading insurer and Bajaj Auto.

Germany.names. Bajaj Allianz General Insurance Co. 84. managing assets worth over 989 billion Euros (Rs. is a joint venture between Bajaj Auto and Allianz AG of Germany. Both enjoy a reputation of expertise.Bajaj Allianz General Insurance maintained its leadership position by garnering a 36 . the company has acquired No. As on March 31. are committed to offer financial solutions that provide all the security the customers need by offering various products. 1 status among the private non-life insurers. The Company is authorized and has paid up capital of Rs 110 crores. Allianz AG has more than 110 years of financial experience in over 70 countries and Bajaj Auto. Bajaj Auto holds 74% and the remaining 26% is held by Allianz AG. 2003. Ltd. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2. 2001 to conduct General Insurance business (including Health Insurance business) in India. stability and strength.560 crores). 49. In its first year of operations. Allianz AG is a leading insurance conglomerate globally and largest asset manager in the world. trusted over 55 years in Indian market.

21. achieving a growth of 84% and registered a 52% growth in net profits of Rs.9.300 Crores. MISSION As a responsible.480 Crores. Bajaj Allianz also became one of the few companies to make a profit in its first full year of operations. In the financial year 2003-04.6 crores. • To be the number one insurer for creating shareholder value. 2004-05. Bajaj Allianz today has a network in more than 485 cities spread across the length and breadth of the country. In the first half of the financial year. the premium earned was Rs. customer focused market leader. • To be the preferred employer for staff in the insurance industry. Bajaj Allianz is 37 .20 Crores over the last year for the same period. Bajaj Allianz made a profit after tax of Rs.6 Crores VISION • To be the first choice insurer for customers. 405 crores. and the profit zoomed by 125% to Rs. Bajaj Allianz garnered a premium income of Rs. all the offices are interconnected with the Head Office at Pune.premium income of Rs. From Surat to Siliguri and Jammu to Thiruvananthapuram.

Founded in 1890 in Berlin.  Asset Management and Banking.determined to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money. ALLIANZ GROUP Allianz Group is one of the world's leading insurers and financial services providers.000 employees. Allianz AG. Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of:  Property and Casualty Insurance. Easy access and reach across the country 38 . Allianz is now present in over 70 countries with almost 174. At the top of the international group is the holding company. with its head office in Munich.  Life and Health Insurance.

BAJAJ AUTO 39 .Bajaj Allianz Life has offices now in over 485 towns across the country enabling customer to buy our products and get quality efficient service almost anywhere across the country. .  3rd largest Assets Under Management (AUM) & largest amongst.A GLOBAL FINANCIAL POWERHOUSE  Worldwide 2nd by Gross Written Premiums . Insurance cos. ALLIANZ AG.  70 countries.654 cr.AUM of Rs. 110 yrs of Insurance expertise.  49.959 cr. 46.8 % of global business from Life Insurance. 173.  Established in 1890.Rs.  12th largest corporation in the world. 96.4.51.750 employees worldwide.

 Managing funds of over Rs 4000 cr.  It has joined hands with Allianz to provide Indian consumers with a distinct option in terms of life insurance products. 4.744 cr. AN STRONG INDIAN BRAND. in 2002-03.  Rs. Bajaj Auto has a strong brand image & brand loyalty synonymous with quality & customer focus. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.  Bajaj Auto finance one of the largest auto finance companies in India.Bajaj Auto Ltd. A household name in India.HAMARA BAJAJ  One of the largest 2 & 3 wheeler manufacturers in the world. turnover & profits of 538 cr. the flagship company of the Rs.  21 million+ vehicles on the roads across the globe. 40 .

 As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto
has the following to offer –
 Financial strength and stability to support the Insurance
Business.
 A strong brand-equity.
 A good market reputation as a world class organization.
 An extensive distribution network.
 Adequate experience of running a large organization.

Bajaj Allianz Life Insurance Company has developed insurance
solutions that cater to every segment and age-income profiles. For
companies it provides comprehensive 'Employee Benefit Solutions'
(Group Term Life, EDLI, Gratuity, Superannuation, Key man Insurance
and more); for the individual Invest Gain (a unique life insurance plan
where sustenance of income is combined in the same plan that also pays
a lump sum), Cash Gain (Money Back), Child Gain (Children's plan),
Risk Care (Pure Term), Lifetime Care (whole life), Term Care (term with
return of premium), Swarna Vishranti (Retirement Plan), Protector
(Mortgage term insurance plan), Unit Gain (Unit Linked Plan), Unit Gain

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Single Premium, Unit Gain Plus, Unit Gain Plus SP, Lifelong Gain Plan,
Unit Gain Single Pension & Unit Gain Easy Pension Plans.
SUPERIOR TECHNOLOGY
In order to ensure speedy and accurate processing of your needs, it has
established world class technology, with renowned insurance software,
which networks all its offices and intermediaries

Using the Web, policies can be issued from any office across the country
for retail products.
 Unique, user friendly software is developed to make the process of
issue of policies and claims settlement simpler (e.g. online
insurance of marine policy certificate).
UNIQUE FORMS OF RISK COVER
 Special PA cover for Amaranth pilgrims.
 Film insurance.
 Event management cover.
 Sports & Entertainment Insurance Package.
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RISK AND MANAGEMENT
Its methodology is tried, tested and proven the world over and involves:
 Risk identification: Inspections.
 Risk analysis: Portfolio review and gap analysis.
 Risk retention.
 Risk Transfer: To an insurer as well as re insurer (as required).
 Creation of need based products.
 Ongoing dialogue and proclivity.

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Deshmukh. Shri C. 1956. to invest the funds for obtaining maximum yield for the' policy holders consistent with safety of the capital. while piloting the bill. an spirit of trusteeship. 1956 by an Act of Parliament.COMPANY PROFILE LIFE INSURANCE CORPORATION OF INDIA (LIC) Life Insurance Corporation of India (LIC) was formed in September. thereby making insurance 45 . Life Insurance Corporation Act. outlined the objectives of LIC thus: to conduct the business with the utmost economy.D. The then Finance Minister. to render prompt and efficient service to policy holders. to charge premium no higher than warranted by strict actuarial considerations. viz. with capital contribution from the Government of India..

An off-shore company L.widely popular. 2000 in Kathmandu. the 46 . Nepal by the name of Life Insurance Corporation (Nepal) Limited in collaboration with Vishal Group Limited. More than 100 non-life insurance companies including branches of foreign companies operating within viz. Ken-India . 100 divisions and 7 zonal offices spread over the country. The Life Insurance Corporation of India also' transacts business abroad and has offices in Fiji. Nairobi. Since nationalization. 1972. a local industrial Group. Kuala Lumpur and Life Insurance Corporation (International) E.048 branches. namely.I.C. Bahrain. United Oriental Assurance Company Limited. Mauritius and United Kingdom.Assurance Company Limited. (Mauritius) Off-shore Limited has also been set up in 2001 to tap the African insurance market.C. The Corporation has registered a joint venture company in 26th December. 1973 by the General Insurance Business (Nationalization) Act. GENERAL INSURANCE General insurance business in the country was nationalized with effect from 1st January.. LIC is associated with joint ventures abroad in the field of insurance. LIC has built up a vast network of 2.

A wholly.. respectively. Bombay. viz. i.. and the United India Insurance Company Ltd.. The general insurance business has grown in spread and volume after nationalization. Ltd.National Insurance Company Ltd. in Kenya. UK has also been registered. the Oriental Insurance Company Ltd..owned subsidiary company of GIC. The share capital of GIC and that of the four companies are held by the Government of India. A new wholly owned subsidiary called New India International Ltd. 1360 divisional offices and 92 regional offices spread all over the country. All the five entities are Government companies registered under the Companies Act. 47 . General Insurance Corporation (GIC) which was the holding company of the four public sector general insurance companies has since been de linked from the later and has been approved as the "Indian Re-insurer" since 3rd November 2000.e. is operating in Singapore and there is a joint venture company. GIC and its subsidiaries have representation either directly through branches or agencies in 16 countries and through associate or locally incorporated subsidiary companies in 14 other countries. Kenindia Assurance Ltd. New Delhi and Madras. the New India Assurance Company Ltd. The four companies have 2699 branch offices. with head offices at Calcutta. Indian International Pvt.

OBJECTIVES OF LIC Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.  Conduct business with utmost economy and with the full realization 48 . without losing sight of the interest of the community as a whole. whose money it holds in trust. the primary obligation to its policyholders. in the investment of funds. the funds to be deployed to the best advantage of the investors as well as the community as a whole.  Maximize mobilization of people's savings by making insurancelinked savings adequately attractive.  Bear in mind. keeping in view national priorities and obligations of attractive return.

 Act as trustees of the insured public in their individual and collective capacities. 49 .  Promote amongst all agents and employees of the Corporation a sense of participation.that the moneys belong to the policyholders.  Involve all people working in the corporation to the' best of their capability in furthering the interests of the insured public by providing efficient service with courtesy.  Meet the various life insurance needs of the community that would arise in the changing social and economic environment. pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

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ups. Since inception the company has written over 2 million policies.COMPANY PROFILE ICICI PRUDENTIAL LIFE INSURANCE ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank and Prudential plc. The company has over network of 70. The stake of the companies in the joint venture is 76% and 24% respectively. It was one of the first players to commence operations when the insurance industry was opened to the private sector in 2000. 2000. by Fitch Ratings.000 advisors. 9 banc assurance as well as over 190 corporate agent and broker tie. which was incorporated on July 20. ICICI offers a wide 51 . It is also the only life insurer in India to get IFS AAA (ind) rating.

24. It commenced commercial operations on December 19. The sum assured in force stands at Rs 458. the two companies joined hands once again in 2000 to form ICICI Prudential Life Insurance Company. For the financial year 2005-2006 which ended on March 31. which has today emerged as one of the leading mutual funds in India. ICICI and Prudential to formed Prudential ICICI Asset Management Company in 1933.88 billion.range of flexible products that meet the needs of Indian customers at every step in life. becoming one of the first few private sector players to enter the liberalized area. The Company was granted Certificate of Registration for carrying out Life Insurance business. with a commitment to provide leading edge life insurance solutions. 52 .963 policies. The authorized capital of the company is Rs. by the Insurance Regulatory and Development Authority on November 24. 2000.12 billion of weighted new business premium and wrote 837. 2000. 2006. After the success of this joint venture. the company registered Rs. 1500 Million.2300 Million and the paid up capital is Rs.

2006 and profit after tax of Rs. venture capital and asset management. life and non-life insurance. 2006.200 ATMs.ICICI BANK ICICI Bank is India's second-largest bank with total assets of about Rs.3 billion) on March 31.40 billion (US$ 569 million) for the year ended March 31. ICICI Bank set up its international banking group in fiscal year 2002 to cater to the cross border needs of clients and leverage on its domestic banking 53 .89 billion (US$ 56. 25. ICICI Bank has a network of about 614 branches and extension counters and over 2. 2.513. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking.

United Arab Emirates.8 billion) ranked third amongst all the companies listed on the Indian stock exchanges. Bahrain. an Indian Financial Institution.strengths to offer products internationally. 2006. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. with free float market capitalization of about Rs. ICICI's shareholding in ICICI Bank was reduced to 46% through a 54 . Russia and Canada. South Africa and Bangladesh. ICICI Bank was originally promoted in 1994 by ICICI Limited. ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). branches in Singapore.00 billion (US$ 10. bank in India in terms of market. 480. ICICI Bank currently has subsidiaries in the United Kingdom. On June 5. and was its wholly-owned subsidiary. Sri Lanka and Dubai International Finance Centre and representative offices in the United States. China. Its UK subsidiary has established a branch in Belgium. Hong Kong. ICICI Bank.

In the 1990s. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. and the move towards universal banking.public offering of shares in India in fiscal 1998. ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001. ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services. and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. the Government of India and representatives of Indian industry. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. In 1999. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry. the managements of ICICI and ICICI Bank formed the view that the 55 . ICICI was formed in 1955 at the initiative of the World Bank. both directly and through a number of subsidiaries and affiliates like ICICI Bank.

ICICI Personal Financial Services Limited and ICICI Capital Services Limited. In October 2001. entry into new business segments. greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. seamless access to ICICI's strong corporate relationships built up over five decades. and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits. the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries. by the High Court of Gujarat at Ahmedabad in March 2002. and access to the vast talent pool of ICICI and its subsidiaries. higher market share in various business segments. with ICICI Bank.merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002. and by the High Court of Judicature at Mumbai and the Reserve 56 . The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations. particularly fee-based services.

have been integrated in a single entity. pensions and retail investments. Jackson National Life. 57 . Across the Group it has £234 billion of funds under management (at 31 December 2005). has attracted more than 19 million customers (and policy holders and unit holders) worldwide. M&G Investments. Its portfolio of well-known and respected brands. today it is an international financial services company with a product range which extends from personal banking insurance. Prudential Corporation Asia and Egg. PRUDENTIAL PLC Established as the Prudential Mutual Assurance and Loan Association in 1848. including Prudential. Consequent to the merger.Bank of India in April 2002. both wholesale and retail. to institutional fund management and property investments. the ICICI group's financing and banking operations.

Korea.942 (at 31 December 2005).000 people and our shareholders number 60. In Asia. Worldwide it employs more than 20. These include strategic partnerships with some of the region’s leading players. It is listed on the London and New York stock exchanges. Malaysia. Prudential Corporation Asia has 23 operations in 12 countries. the US and Asia. ICICI Bank (for life and mutual fund business in India) and Bank of China International (for Mandatory Provident Fund business in Hong Kong). including CITIC Group (for life business in China). contributing to a diversity of earnings. Taiwan. Vietnam and China managing over £26 billion (as of 30 June 2005). In addition to its life insurance operations Prudential has asset management businesses in India. Prudential Corporation Asia offers a wide range of savings. Hong Kong. 58 . Singapore. Japan.Prudential has significant operations in the UK. protection and investment products tailored to the needs of our customers in each of the 12 markets in which it operates.

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96 28.3 28.56 60 .04 71.44 PRIVATE PLAYERS 12.MARKET SHARE ANALYSIS PARTICULARS 2004-05 2005-06 2006-07 LIC 87.7 71.

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INNOVATIVENESS COMPAN Y LIC BAJAJ ALLIANZ ICICI PRUDENTIAL SCORE 128 106.9 122.1 62 .

RANK 1 3 2 QUALITY & DEPTH OF MANAGEMENT 63 .

1 1 2 3 RANK 64 .COMPAN Y LIC BAJAJ ALLIANZ ICICI PRUDENTIAL SCORE 163.9 96 95.

8 78.FINANCIAL PERFORMANCE COMPANY LIC BAJAJ ALLIANZ ICICI PRUDENTIAL SCORE 158 115.6 1 2 3 RANK 65 .

8 78.6 1 2 3 RANK 66 .ETHICS & TRANSPARENCY COMPAN Y LIC BAJAJ ALLIANZ ICICI PRUDENTIAL SCORE 158 115.

1 1 3 2 RANK 67 .1 111 114.QUALITY OF PRODUCTS & SERVICES COMPAN Y LIC BAJAJ ALLIANZ ICICI PRUDENTIAL SCORE 163.

PEOPLE PRACTICES/ TALENT MANAGEMENT COMPAN Y LIC BAJAJ ALLIANZ ICICI PRUDENTIAL SCORE 139 102 114.1 1 3 2 RANK 68 .

1 71 1 2 3 RANK 69 .GLOBAL COMPETITIVENESS COMPANY LIC BAJAJ ALLIANZ ICICI PRUDENTIAL SCORE 124 94.

TOP 5 INSURANCE COMPANIES POINTS SURVEY-2006 1 Birla Sun Life 2 ICICI Lom General 3 ICICI Pru Life 4 Bajaj Allianz General 5 LIC 70 .

POINTS SURVEY-2005 1 SBI Life 2 Birla Sun Life 3 ICICI Pru Life 4 HDFC Standard Life 5 LIC TOP 5 INSURANCE COMPANIES.2006 71 .

2005 72 .TOP 5 INSURANCE COMPANIES.

It gives the detailed background of the company and its whereabouts before the two insurance tycoons namely.RESEARCH OBJECTIVE The report identifies the position of Bajaj Allianz in the current insurance market as a fast emerging insurance company. It also highlights the 73 .LIC and ICICI Prudential.

74 . The secondary data have been collected from various magazines.potential of the company to penetrate and sustain in the insurance sector leaving many big players far behind. DATA COLLECTION METHOD For the purpose of study both primary as well as secondary data have been used. The research design is not formal and rigid one as the focus depends upon the availability of new ideas and relationship among variables. and websites. RESEARCH DESIGN The research design for the comparative study is of exploratory type and the focus is given to discover the possible measures. for the company which would be helpful up to some extent to retain a good position in the competitive market. newspapers. company annual reports. For the collection of primary data structured and undisguised questionnaire has been used. by detailed analysis.

market share of the company and its potential before the insurance market leaders on the basis of various attributes Primary data have been helpful to explore the opinion of general public and their future insurance plans with the company. SAMPLING As per the sampling procedure is concerned. On the basis of information extracted from the primary data various measures are found which would be helpful to it in making new strategies in near future. The sampling units include.For the purpose of knowing whereabouts of the company in the present insurance market secondary data has disclosed many important information as. government employees. the finite universe is taken into consideration. and private employees bounded to Uttar Pradesh(Lucknow) only. 75 .businessmen.

The reason isit is the only sampling method that provides essentially unbiased estimates having measurable precision. The sample size was 60.The sampling is based upon probability sampling methods. ANALYSIS  Which company has played a major role in the field of insurance? COMPANY PRIVATE EMPLOYEES GOVERNMENT EMPLOYEES BUSINESSMEN 76 .

LIC BAJAJ ALLIANZ ICICI PRUDENTIA L OTHERS 10 13 10 5 3 5 3 3 4 2 1 1  Which insurance company has been successful in making strong public base by advertisement? COMPANY PRIVATE EMPLOYEES GOVERNMENT EMPLOYEES BUSINESSMEN 77 .

LIC BAJAJ ALLIANZ ICICI PRUDENTIA L OTHERS 12 14 12 2 2 3 5 3 4 1 1 1  Do you think the insurance policy is totally in the direction of public welfare? OPTIO N YES PRIVATE EMPLOYEES GOVERNMENT EMPLOYEES BUSINESSMEN 10 13 12 78 .

NO 7 4 6 Can't Say 3 3 2  The life insurance policy opted by you is from which company? COMPANY PRIVATE EMPLOYEES GOVERNMENT EMPLOYEES BUSINESSMEN 79 .

LIC BAJAJ ALLIANZ ICICI PRUDENTIA L OTHERS 10 16 12 2 2 3 3 1 2 5 1 3  Do you think LIC would continue to loose its grip over the insurance market in coming days? OPTIO N PRIVATE EMPLOYEES GOVERNMENT EMPLOYEES BUSINESSMEN 80 .

then which company would you prefer to get insured with after analyzing all insurance players? 81 .YES 3 1 15 NO 14 18 3 Can't say 3 1 2  If any life insurance need arises in your family.

COMPANY LIC BAJAJ ALLIANZ ICICI PRUDENTIA L OTHERS PRIVATE EMPLOYEES GOVERNMENT EMPLOYEES BUSINESSMEN 7 15 5 5 1 2 5 3 2 3 1 11  Which private company do you think would be able to make its grip stronger over insurance market in coming days? 82 .

COMPANY BAJAJ ALLIANZ ICICI PRUDENTIA L OTHERS PRIVATE EMPLOYEES GOVERNMENT EMPLOYEES BUSINESSMEN 8 7 6 7 7 7 5 6 7 FINDINGS From the analysis of the above study it can be revealed that- 83 .

 Majority of people would like to get insured with LIC despite of the fact that private players like Bajaj Allianz and ICICI Prudential are equipped with a lot of beneficial products.  A majority of private employees.  In making strong public base by advertisement LIC is not behind anyone in the race despite private players are generally supposed to deliver comparatively more advertisements. They hope it will recapture the market share lost by it. while Bajaj Allianz and ICICI Prudential stay behind it. and businessmen are insured with LIC which is a tough challenge for private players especially Bajaj Allianz and ICICI Prudential. 84 . Its really a matter of consideration.  Majority of people still trust a lot in LIC despite its gradually loosening grip over the insurance market. not less than LIC. LIC has played a major role in the field of insurance. government employees.

CONCLUSION 85 . which is a good indication and response for the company. Talking about private players. majority of people hope and are confident for the comparatively brighter future of Bajaj Allianz than any other private player.

The company. is the meteoric rise of Bajaj Allianz General. Though the private pack nibbled off about 7% more of its market share in 2005-2006 reducing it to 71%. the second largest private general insurer after ICICI Lombard General. Bajaj Allianz has been winning image points by mixing transparency with innovativeness. In life insurance segment ICICI Prudential is the main challenge for Bajaj Allianz.The story of insurance sector. RECOMMENDATIONS 86 . Bajaj Allianz is also driving deeper into the hinterland for growth. which continues to top customer rankings for the sector. However. there seems no immediate cause for alarm for LIC. The entry of private insurance companies has expanded the product segment to meet different levels of customer requirements. boosted its public profile by insuring production of the movie Bunty Aur Bubly and the TV show Nach Baliye. however. The most powerful competitor is LIC which has vast market and very firm grip on its traditional customers. the company managed to grow its premium income by 49% for individual policies and 32% for business policies in2005-2006. last year.

people are increasingly looking not just at products. and well versed in the handling problem and grievances of the policy holders. but at integrated financial solutions that can offer stability of returns along with total protection. Therefore. while boundaries between various financial products are blurring. Besides returns. what really increases the appeal of insurance is the benefit of life protection from insurance products along with health cover benefits. 87 . insurance products will need to be customized. to beat the competition. Also it should more concentrate on good advertising media to make the customers well aware of its products. insurance products today offer competitive returns ranging from 7% to 9%. To satisfy these myriad needs of customers. Health and Wealth. In terms of returns. more and more transparency should be ascertained between the company and policy holders. Particularly. in the emerging boom in insurance sector. Bajaj Allianz should be more customers centered. Insurance today has emerged as an attractive and stable investment alternatively that offers total protection . Today.Life.Today the Indian consumers are increasingly becoming more aware and are actively managing their financial affairs.

company should prepare its products for rural people and make them aware of these products. But. meanwhile.Data show that more rural people are uninsured till the time which is a good indication for company’s prospects in rural areas. 88 . the company should not forget that marketing of financial instruments in a rural area is not an easy job and for that company would have to convince the rural customers in a rural way. Accordingly.

C. Kothari MAGAZINES & NEWSPAPERS  The Economic Times  The Times of India 89 . Rubin  Fundamentals of Statistics.R. Levin.BIBLIOGRAPHY BOOKS  Statistics For Management.N.D.Richard I. David S. Elhance  Research Methodology.

licindia. Business World  Business Today WEBSITES  www.com  www.indiainfoline.co.theeconomictimes.com  www.financialexpress.com  www.co 90 .bajajallianz.in  www.iciciprulife.com  www.licofindia.com  www.

ACHIEVEMENTS 91 .

Ensuring world-class solutions by offering customized products with transparent benefits. Key Achievements in FY 2006-07 : • Have sold over 40. Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world. 55.00.Bajaj Allianz Life Insurance Company Limited is a Union between Allianz SE.3 wheeler manufacturers in the world. Allianz SE has over 115 years of financial experience in over 70 countries.00. Bajaj Auto is one of the most trusted name is Indian auto for over 55 years. supported by best technology is our business philosophy. At Bajaj Allianz Life Insurance customer delight is our guiding principle.000 policies to satisfied customers • Is backed by a network of 876 offices spanning the country • Accelerated Growth • Shareholder capital base of Rs 700 cr. one of the biggest 2. managing assets worth over a Trillion Euros (Over R.&.000 crores). one of the world’s largest Life Insurance companies and Bajaj Auto. 92 .

DECLARATION I Puneet Gupta declare that the Summer Training Project Report entitled TOPIC” being submitted to the T. Place: GUPTA Date: (MMB103702) PUNEET 93 .John Business School for the partial fulfillment of the requirement for the degree of Master of Business Administration is my own endeavors and it has not been submitted earlier to any Institution\University for any degree.