Asian College of Science and Commerce, Pune

(Affiliated to SPPU & Approved by Government of Maharashtra)

ACCREDITED BY NAAC WITH “B+” GRADE

“Internship Report on”

“A HYGIENE PARAMETER STUDY – INSURANCE CANCELLATION”

Submitted By
Mr. Manthan Anil Hagavne
(Ty. BBA Sem VI.)
Marketing

Summited To
Savitribai Phule University

Under The Guidance of

Mrs. Sarika Shaha
(Asst. Prof., Asian College of Science and commerce)
2023-2024

Internship Project report Submitted to Asian collage of science and commerce in a partial fulfillment of
requirements for the award of the degree of “BACHELOR OF BUSINESS ADMINISTRATION” of Savitribai

Phule University. Academic Year 2023-2024.

 Asian College of Science and Commerce, Pune
(Affiliated to SPPU & Approved by Government of Maharashtra)

ACCREDITED BY NAAC WITH “B+” GRADE

CERTIFICATE
This is to Certify that the project work entitled is a benefited record of the
work done by Mr. ----------------------------------------Submitted
“Internship Report on”
“A HYGIENE PARAMETER STUDY – INSURANCE CANCELLATION”
to the department in partial Fulfillments of the required of BBA Marketing (Bachelor of
Business Administration.) Specialized in ------------------------------------ Academic Year
2023-2024
The Internal Viva is held on …………………………………and commented as
………………………………………..

SIGN

Internal Faculty External Faculty

Date………… Date…………

HOD Principal
 DECLERATION

I hereby declare, the project work entitled for the partial fulfillment of
requirement for the award degree of “BACHELOR OF BUSINESS ADMINISTRATION”

As a record of original work done by me under the supervision of guidance of

Mrs. Sarika Shaha Asst. Prof. of Asian college of science of a commerce, Pune. This project
work of has not formed the basis for the award of any degree/ diploma/Fellowship of similar
titles to any candidate of any university.
 ACKNOWLEDGEMENT

I wish to Express my gratitude to university of Savitribai Phule for giving me an opportunity to be

a part of such kind of learning experience, with will surely enhance my knowledge and skills.

I am grateful to Prof. Mrs. Sarika Shaha for Her invaluable Guidance and co-operation during the curse of
the Project. She/He Provide me with Her/His Assistance and support whenever needed that has been
instrumental in completion of the project.

The Internship project has been the great experience, the learning and the exposure, I got through this project
was immense and will surely help me in my feature pursuits.

I would like to give my heart full thanks to my Parents who always give me moral support.

Mr. Manthan Anil Hagavne

(Ty. BBA Sem VI.)
Marketing
 INDEX

PART: A UNDERSTANDING THE CONCEPTS...........................................................8

1. EXECUTIVE SUMMARY.....................................................................9
2. INTERODUCTION.................................................................................11
3. COMPANY PROFILE............................................................................14
4. PRODUCT PROFILE.............................................................................20
5. COMPETITORS PROFILE....................................................................27
6. WHAT DIFFERENTIATES BAJAJ FINSERV LENDING................28
7. BAJAJ GROUP STRUCTURE...............................................................30
8. BAJAJ MANAGEMENT STRUCTURE................................................31

9. STRONG DISTRIBUTION REACH.....................................................32

10. INSURANCE SERVICES......................................................................34
11. GROWTH OF BAJAJ FINSERV LENDING........................................37
12. CORPORATE SOCIAL RESPONSIBILITY............................................39

PART: B REVIEW OF WORKINGS........................................................................41

1. INTRODUCTION TO TOPIC…...............................................................42
2. LITERATURE REVIEW...........................................................................44
3. RESEARCH METHODOLOGY...............................................................45
4. RESEARCH OBJECTIVE........................................................................46
5. RESEARCH DESIGN...............................................................................47
6. SAMPLING PLAN....................................................................................48
7. DATA ANALYSIS...................................................................................49
8. FINDINGS & LIMITATIONS..................................................................61
9. SUGGESTIONS & RECOMMENDATIONS..........................................63
10. LEARNINGS.............................................................................................64
11. CONCLUSION..........................................................................................65
12. BIBLOGRAPHY.......................................................................................66
13. QUESTIONARE........................................................................................67
 PART: A

UNDERSTANDING THE CONCEPTS

EXECUTIVE SUMMARY

The unique attribute about Retailer Finance is the fact that Bajaj Finserv
Lending is leveraging on its trust relationship with its partners for disbursing the loans.

Mr. Sanjiv Bajaj

(Managing Director of Bajaj Finserv lending)

Bajaj Finserv Lending, one of the most diversified non-banks in the country, has
introduced exclusive finance option for its retail partners in the consumer durable industry. A
leader in 0% interest consumer finance with 14% share in the market, the company launched the
innovative Retailer Finance, which will help its partners avail finance for acquiring inventory from
the manufacturers.

The unique attribute about Retailer Finance is the fact that Bajaj Finserv Lending is
leveraging on its trust relationship with its partners for disbursing the loans. The retailers are
assigned a pre-approved credit line which they can use any time they want. Thus unlike other
finance options, they don’t have to undergo the cumbersome due-diligence process and get quick
finance without submitting any collaterals or documentation. This is the first time ever that a non-
collateral based financing option has been introduced for the retailers.
 “We are uniquely placed in the consumer durable industry where we have been helping
retailers to sell more. Now Retailer Finance will help strengthen our relationship with
manufacturers as this will help them in turn to sell more to the retailers. With this launch, we
complete the entire value chain across the industry thereby increasing our commitment towards
the consumer durable industry”, said Rajeev Jain, CEO Bajaj Finserv Lending.

The company has already tied up with consumer durable leaders LG and Sony to extend this
facility to their direct dealers and going forward will be considering more partnerships in the
space. Owing to the 0% financing offering, Bajaj Finserv Lending already has relationships with
more than 3000 partners in the consumer durable industry across 81 cities in India.

This report, which contains only a part of the actual report is based on the research work done as
a part of the summer internship project at BAJAJ FINSERV LENDING, MUMBAI. The research
involved study of the past literatures about the retail finance sector, related online research
papers and journals. The study also involved survey of all COUNTER’S OF BAJAJ FINSERV LENDING
in the city of MUMBAI through field visits and online survey. The annual reports and the sector
reports published by regulatory bodies, business associations and major retail finance players
facilitated the study, especially in understanding the size, growth and past trends. Interactions
with some of the industry experts helped in understanding and analyzing the emerging concerns
in the retail finance sector and also to look for some possible solutions.

Based on the research work, a few major recommendations made in the report include field
supervision of Bajaj finance to check ground realities and the operational efficiency of Bajaj
Allianz. Other initiatives to BFSL for opening branches in unbanked villages, so as to increase rural
penetration. Also BFSL be encouraged to offer complete range of products to their clients.
Transparent pricing and technology implementation to maintain uniformity and efficiency are
among the others which these institutions should adopt.
 INTRODUCTION

2.1 INDUSTRY PROFILE

India is undergoing rapid development. This means that there are millions of people who
dream of better home, better infrastructure and a better life. This opens several avenues of
potentially limitless growth in the banking and finance sector. Bajaj Finserv Lending will help grab
this opportunity to grow your business, through lending loans, financing, etc.

2.2 INDIA'S FINANCIAL SERVICES INDUSTRY

An innovative, competitive and thriving financial services industry in any country plays
a vital role in its smooth functioning and development. India's financial services sector has
posited a stable growth curve over the years driven by sound fundamentals, rising personal
incomes corporate restructuring, financial sector liberalization and the growth of a consumer-
oriented, credit-oriented culture. This has led to the increasing demand for financial products,
including consumer loans (especially for cars and homes), as well as for insurance and pension
products. The soaring demand for financial services offers promising investment prospects.

According to the Central Statistical Organization (CSO) data, released early this year,
financial services, banking, insurance and real estate sectors rose by 7.4 per cent in 2012-13.

BACKED WITH

o A favorable demographic profile which supports a higher retail off take - 54% of the
population is in the 15-35 years age group. India consists of a dynamic and a
growing middle-class class which on a purchasing power parity basis is much larger
than the entire population of the US and a consumer credit market that is growing by
more than 40% per annum.
o Continuous increasing in capital expenditure by the government and private industry.
o Significant opportunities in the largely untapped SME segment- which accounts for
40% of the industrial output and 35% of India's direct exports
o India's increasing and consistent growth. As per the CSO, the Indian economy grew
 by an estimate of 7.4 per cent in the year 2012-13 and is expected to grow over 8
percent in the coming months.
o Growing investment avenues across all segments in the banking and financial
services sector.

2.3 GROWING POTENTIAL IN THE INDUSTRY

Demand for banking services is growing significantly, albeit in a country where

less than half of households have a bank account. It is in the retail sector that the surge in
demand is most marked. Housing loans grew by more than 50% and loans to the retail
commercial sector rose by more than 100%. According to the weekly statistical supplement
(WSS) of the Reserve Bank of India (RBI), Indian bank loans represented a rise of 19.1 per cent as
of June 4, 2013 while deposits were up 14.3 per cent from the previous year. Furthermore,
outstanding loans showed an increase from US$ 12.39 billion to US$ 703.5 billion in the two
weeks to June 4, 2013. The WSS reflected that bank deposits rose by US$ 3.24 billion to US$ 975
billion in the two weeks to June 4. In 2009, there were 21 IPOs that raised US$ 4.18 billion as
compared to 36 IPOs in 2008 that raised US$ 3.62 billion.

As per the statistics of RBI, aggregate deposits grew by 3.3% on q-o-q basis in quarter
ended June 10 as against 5.1% during the same period last year; reflecting the relatively lower
rates in term deposits.

2.4 NON-BANKING FINANCIAL COMPANIES

Non-banking financial companies (NBFCs) are fast emerging as an important

segment of the Indian financial system. It is an heterogeneous group of institutions (other than
commercial and co-operative banks) performing financial intermediation in a variety of ways, like
accepting deposits, making loans and advances, leasing, hire purchase, etc. They raise funds from
the public, directly or indirectly, and lend them to ultimate spenders. They advance loans to the
various wholesale and retail traders, small-scale industries and self- employed persons.

NBFC are present in all competitive fields such as, vehicle financing, housing loans, leasing, hire
purchase and personal loans financing etc. NBFC's are not required to maintain cash reserve ratio
(CRR) and statutory liquid ratio (SLR). Priority sector lending norm of 40% (of total advances) is
not applicable to them. While this is at their advantage, they do not have access to low cost
demand deposits. As a result their cost of funds is always high, resulting in thinner interest
spread. But currently with surplus liquidity in the system, the cost of funds for NBFC's has
substantially eased thus improving their margins. Gradually, they are being recognized as
complementary to the banking sector due to their customer- oriented services; simplified
procedures; attractive rates of return on deposits; flexibility and timeliness in meeting the credit
needs of specified sectors; etc.

On regulatory front, NBFCs have been classified into 3 categories:

o Those accepting public deposits
o Those not accepting public deposits but engaged in financial business
o Core investment companies with 90 per cent of their total assets as investments in
the securities of their group/ holding/subsidiary companies. The focus of regulatory
attention is on NBFCs accepting public deposits
 COMPANY PROFILE

3.1 INTRODUCTION
“Do whatever you think best, but be best at whatever you do”

– Rahul Bajaj, Chairman- Bajaj Group

What started off as a sugar manufacturing factory in 1931 has grown to become one of
the country’s largest business houses? With activities that encompass a whole range of
industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting,
iron and steel, insurance, travel and finance.

At the turn of the new millennium, this business conglomerate is ranked amongst one
of the largest business family in India by the Centre for Monitoring Indian economy (CMIE). It has
under its umbrella over 25 companies and strength of over 25000 employees. It’s core strength,
however, is the unshakeable foundation based on its tradition of trust.

With the demerger of Bajaj Auto Ltd, following separate corporate entities came into
existence in May’ 2008

Bajaj Finserv Ltd (BFL),

Bajaj Auto Ltd (BAL), and

Bajaj Holdings and Investment Ltd (BHIL)

Demerger of Bajaj Auto Ltd.

o Bajaj is present in over 50 countries all over the globe
o Dominant presence in Africa, Latin America and South Asia with increasing market
share every year
o Market leader in motorcycles in Colombia, Central America, Sri Lanka, Bangladesh,
Philippines, Nigeria, Uganda and Kenya.
o 891,002 units exported in 2012-13, an increase of over 15 % over the previous year.
o Largest exporter of three wheeled commercial vehicles in the world: 164,887 units
exported in 2012-13, a rise of 19% over 2011-12.
3.2 ABOUT FINSERV LENDING

Bajaj Finserv Limited is the holding company for the financial services businesses of the
Bajaj Group. Its insurance joint ventures with Allianz SE, Germany namely Bajaj Allianz Life
Insurance Company Limited and Bajaj Allianz General Insurance Company Limited are engaged in
life and general insurance business respectively. Its subsidiary Bajaj Finance Limited is a Non-
Banking Finance Company engaged in consumer finance, SME finance and commercial lending.
Bajaj Financial Solutions Limited, a wholly owned subsidiary of Bajaj Finserv Limited is engaged
in wealth advisory business.

Bajaj Finserv Lending is one of the leading financiers in the market offering: 0% interest
on lifestyle product and consumer durable product finance on EMI.

An easily avail on a loan for products like LCD, LED, Color TV, Refrigerator, Washing
Machine, Air Conditioner, Music System, Microwave amongst a host of other products.

Bajaj Finserv Lending consumer durable loan comes with 0% financing and with a small
fee. One can apply online on their website and get an instant approval or visit a dealership to
easily avail a loan. It provides on the spot approval with minimum documentation & fast
processing.

They offer finance for various infrastructure related equipment’s in the field of
Construction, Mining, and Material Handling businesses so you can go ahead and construct your
own path to success. They extend finance with attractive benefits for both new as well as used
equipment.

Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two
Wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer Durable Loans, Personal
Loans, Loan against Property, Small Business Loans, Construction Equipment Loans, Loan against
Securities and Insurance Services under the name of Bajaj Finserv Lending.

Bajaj Finserv Lending is one of the most diversified NBFCs in the market catering to
more than 5 million customers across the country. Apart from being a well-recognized
organization, they pride us for holding the highest credit rating of FAAA/Stable for any NBFC in
the country today. The product offerings include Consumer Durable Loans, Personal Loans, Loan
against Property, Small Business Loans, Two-wheeler and Three- wheeler Loans, Construction
Equipment Loans, Loan against Securities and Insurance Services.
3.3 PRESENT STATUS

Bajaj Finserv Lending bets big on 0% interest finance:-

In turn, Bajaj Finserv Lending continues to be the largest driver of this growth with over
9% share and growing at 88% YOY. This puts Bajaj Finserv Lending in a clear leadership position.
Today, one out of every 5 flat panel TVs is bought on the 0% interest consumer durables loans
option from Bajaj Finserv Lending. This growth has come at the back of significant investments
made in distribution, technology and process automation. “We have invested deep in technology
and process innovations to create long term sustainable advantages. This has allowed us to
create win-win propositions for all members in the ecosystem”, says Rajeev Jain CEO Bajaj
Finserv Lending.

3.31 VISION

o To attain world class Excellency by demonstrating value added

products to customers.
o To attain brand value by learning, innovation, perfection and
transparency.
o To ensure proactivity, to create the future through innovation.
o To set new standards and reach near to perfection.
o To convey clear conviction and characterize themselves.

3.32 MISSION

o Focus on value based lending.

o Fostering team work and enhancing the capability of team.
o Continual Improvement.
o Total elimination of fraud practices.
o Ensuring easy and quick accessibility to customers.
3.33 OBJECTIVE

o Bajaj Finserv Lending is one of the most diversified NBFCs in the

market catering to more than 5 million customers across the country. Apart from being

a well-recognized organization; they pride ourselves for holding the highest credit
rating of FAAA/Stable for any NBFC in the country today to cater products.

o To the customers changing financial requirements based on customer

feedback and improvising the existing products.

3.34 GOALS
To catapult Bajaj Finserv as the country’s largest financial lending firm.

3.35 VALUES

I. Empowerment

o We respect the opinions and decisions of others.

o We encourage and back people to do their best.

II. Flexibility

o We are ever willing to learn and adapt to the environment, our

partners and customers evolving needs.

III. Entrepreneurship

o We always strive to change the status quo.

o We innovate with new ideas and energies with a strong passion and
entrepreneurial skills.

IV. Transparency

We believe we must work with honesty, truth and the inmate desire to do well.

V. Impact

We are driven by the desire to create a meaningful difference in society.

 PRODUCT PROFILE

4.1 PRODUCT PORTFOLIO SUMMARY

Bajaj Finserv Limited is the most diversified non-bank in the country, the largest
financier of consumer durables in India and one of the most profitable firms in the category.

Hereunder are summary details of our portfolio of businesses, with a brief

description on each:-

Consumer Finance

Consumer Durables Finance Lifestyle Finance

EMI Card
Extended warranty
Personal Loans
Cross Sell Co-branded
Credit Cards
Two and three-wheeler Finance
Salaried Personal Loans
SME Finance

Mortgage Business Loans

Commercial Lending
Construction Equipment Finance
Infrastructure Finance
Vendor Financing

4.2 CONSUMER FINANCE

4.21 CONSUMER DURABLE FINANCING

Present in the top 79 cities of the country, we are now the largest Consumer
Durables Financier in India. We financed over 10% of all consumer electronics sold in the country
in the last year. We finance one out of every four LCD and Plasma televisions sold in the country.
Last year, we acquired more than 1.45 million new customers, through our over 2,500 points of
sale across the country.
 PRODUCTS COVERED

0% interest Consumer Durables Finance is available on a wide range of products and

in over 80 cities across India. Hereunder is an indicative list of products covered:-

 LED/LCD/CTV
 Washing Machines
 Microwave Ovens
 Refrigerators,
 Cameras/Camcorders
 Dishwashers
 Generators
 Cooking Range products
 Dryers
 Laptops (Select)
 Air purifiers / Water Purifiers / R.O.
 Music Systems
 Inverters
 Air conditioners


4.22 LIFESTYLE FINANCE

0% interest Lifestyle Finance is available on a wide range of lifestyle products.

Hereunder is an indicative list:

 Home improvements and furniture

 Modular kitchens
 Jacuzzi & bathroom fittings
 Kitchen equipment’s
 Home furnishings
 Luxury watches
  Digital lifestyle products
 Tablet PCs
 Smart-phones
4.23 EMI CARDS
EMI card for durable and lifestyle purchases, Hereunder is an indicative list:

FEATURES AND BENEFITS

Hereunder are a host of unique features and benefits that you enjoy with EMI Cards
from Bajaj Finserv Lending. Read on to know more:

 PRE-APPROVED ELIGIBILITY
The EMI card carries a pre-approved loan in your wallet. You can avail of your loan
facility to purchase any consumer durable & lifestyle product of your choice.

 INSTANT APPROVAL
Simply Swipe, Sign and Buy with your EMI card. The moment you swipe your card, you
get instant approval, subject to the amount pre-approved for you.

 MINIMUM DOCUMENTATION
For using your EMI card, you don't need to give any documents. Your EMI card
carries all the necessary information required.

 PREAPPROVED OFFERS
As an existing customer, you get exclusive preapproved offers from time to time
across a host of our partner retailers and manufacturers.

 ONLINE ACCOUNT ACCESS

Get all information about your loan like repayment track, interest certificate, payment
schedule etc. through our digital customer portal. Just log in with your loan account number and
access whatever information you want about your loan.

4.24 EXTENDED WARRANTY

Now, with all your consumer durables purchases, you can opt for an additional one year
warranty, over and above the manufacturer’s warranty. What’s more, you can pay for the
Extended Warranty through our convenient 0% interest EMI options.
 PRODUCT COVERED

Extended Warranty covers the cost of repair/ replacement of the consumer durable
appliance (i.e. insured asset) arising out of unforeseen defects in material or workmanship within
the Policy Period. Wherein Policy Period is defined as 12 months, commencing after expiry of
manufacturer’s product warranty period.

Sum Insured of the insured asset is equal to the Invoice price and Maximum claim
payment under the policy is equal to the Sum Insured.

4.25 PERSONAL LOAN CROSS SELL

Through this business, we offer existing customers with good repayment history
various pre-approved personal loan offers. While maintaining focus on the balance between
business growth and the risk-reward equation, deployments under this category grew by
53% to Rs. 586 crore. The company financed over 86,000 new customers in the current year.

As well as through cross-selling we also sale insurance product to customer, i.e. Bajaj
Allianz Life Insurance Company Limited is a joint venture between Bajaj Finserv Limited and
Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz today has a
countrywide network connected through the latest technology for quick communication and
response in over 200 towns spread across the length and breadth of the country. Bajaj Allianz Life
Insurance Corporation (BALIC) uses its in-house call center to cross sell to its existing customer
base through regular tele-calling done by its staff.

4.26 CO-BRANDED CREDIT CARDS

We have entered into a strategic partnership with Standard
Chartered Bank and has launched co-branded credit cards (‘Platinum’
and ‘World Card’) for customers with a good repayment track record.

4.27 TWO AND THREE WHEELER FINANCE

 In FY2012, we emerged as one of the largest two-wheeler financier in India. Despite
an increase in competitive activity throughout the year with some banks aggressively promoting
two-wheeler and three-wheeler loans, we financed over 650,000 new customers, operating
through 571 Bajaj Auto dealerships as well as over 1,700 of its sub-dealers across the country.

4.28 SALARIED PERSONAL LOANS

To diversify our offerings in the Consumer Finance business, the

company launched Salaried Personal Loans business. This business focuses
on the financial needs of salaried employees. The business targets affluent
salaried employees above a threshold salary range employed with leading
companies.

4.3 SME FINANCE

4.31 MORTGAGE

Under this business, we focus on financial needs of affluent and high net worth small
business and self-employed customers, offering loans against the mortgage of retail, residential
and commercial premises. We were the first financial services company in the country to
introduce the policy of NIL foreclosure charges and Prompt Prepayment Benefit program.

Recently, the company introduced another industry first - flexi saver. This product
offers customers the flexibility to ‘draw when they want’ and ‘pay when they want’ without any
extra charges - the first of its kind in this space.

4.32 BUSINESS LOAN

Through this business, we offer our affluent SME customers unsecured loans for their
varied business needs. We are the only financial services provider to offer up to Rs. 50 lacs
unsecured loan for SMEs. This business is present in the top 31 cities across India.

Recently we introduced a special lending program for Doctors.

4.4 COMMERCIAL LENDING

4.41 CONSTRUCTION EQUIPMENT FINANCE

Construction Equipment Finance portfolio is designed to meet the financial needs of businesses
engaged in the infrastructure sector. Through this business, we finance the construction equipment
needs of these businesses. Currently, we serve customers in over 23 cities in India.

4.42 INFRASTRUCTURE FINANCE

We commenced this business a little over year ago. This business focuses on Project Finance,
Corporate Finance and Mezzanine Debt to infrastructure companies/projects. We believe Infrastructure
Finance is a critical input to continue to keep the pace on our infrastructure development. However,
given the high interest rate scenario and uncertainty in government policy in key areas, we continue to
be selective in lending in this sector, and offer is a core need of the country.

4.43 VENDOR FINANCE

This business focuses on short and medium term lending needs of vendors of large auto
manufacturers. This is a three year old business and has been growing steadily

COMPETITORS PROFILE

company Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover

L&T Finance 78.7 13,511.55 171.98 311.33 3,353.66

Bajaj Finserv 642.5 10,223.61 141.47 50.84 2,410.16

Bajaj Holdings 804.45 8,953.01 743.68 663.33 5,186.75

Reliance Capital 336.85 8,291.90 3,828.00 662 25,362.00

Religare Enterprise 319.45 4,772.63 120.97 -760.95 2,978.57

Muthoot Finance 103 3,828.64 5,358.90 1,004.24 18,406.05

Responsive Ind 90.3 2,410.22 1,518.85 28.42 897.58

Tata Inv Corp 415.95 2,291.69 205.83 167.14 1,920.92

JM Financial 27.3 2,051.91 53.67 44.81 1,638.01

SE Investments 390.15 1,582.45 219.04 70.45 803.53

Future Ventures 9.25 1,458.03 357.7 -11.45 1,564.37

Signet Ind 274.9 802.35 564.97 11.93 135.5

 ILandFS 21.1 440.79 101.08 42.44 93.97

JSW Holdings 355.55 394.65 29.4 21.68 691.22

HDFC Gold ETF 2,463.15 379.14 - - -

PNB Gilts 23.9 322.67 165.3 21.05 3,744.84

India bulls Securities 10.65 246.13 108.09 55.84 257.6

As you can see in the above chart, L&T FINANCE, RELIANCE CAPITAL, RELIGARE ENTERPRISE
AND CAPITAL FIRST is the major competitors of Bajaj Finserv lending.

WHAT DIFFERENTIATES BAJAJ FINSERV LENDING

6.1 WHAT DIFFERENTIATE BAJAJ FINSERV FROM HIS COMPETITORS?

BAJAJ GROUP STRUCTURE

7.1 BAJAJ GROUP STRUCTURE

MANAGEMENT STRUCTURE

8.1 BAJAJ FINSERV LENDING MANAGEMENT STRUCTURE

STRONG DISTRIBUTION REACH

9.1 DISTRIBUTION CENTRES IN INDIA

9.2 OUR FOOT PRINTS

Over 4500 durable retail outlets where you can discover the delight of instant
conversion of window-shopping to shopping, with 0% interest Durable Finance. Over 70 of our
own branches where you can delight yourself to a new pace of getting any of your dreams
financed. Over 400 Lifestyle retail outlets where you can take home your indulgence without
pinching your savings. Over 500 direct sales agent locations where you can walk in with a
requirement and walk out with a guaranteed time to money-in-your account.
 INSURANCE SERVICES

10.1 JOINT VENTURE WITH ALLIANZ SE

Bajaj Allianz Insurance Company Limited is a joint venture between Bajaj Finserv
limited (recently emerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of
expertise, stability and strength.

Bajaj Allianz Insurance received the Insurance Regulatory and Development

Authority (IRDA) certificate of the Registration on 2nd may, 2001 to conduct general insurance
business (including health insurance business) in India. The company has an authorized and paid
up capital of Rs. 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by
Allianz, SE.

As on 31st march 2012, Bajaj Allianz Life Insurance co.’s shareholders' profit after tax rose 24% to
Rs 13.11 billion in the fiscal year ended March 31, 2012, as compared to Rs

10.57 billion in the same period a year ago.

Bajaj Allianz today has a country wide network connected through the latest technology
for quick communication and response in over 200 towns spread across the length and breadth
of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are
interconnected with the head office at Pune.

10.2 ALLIANZ SE BUSINESS LINE

Bajaj Allianz offers a wide range of life insurance plans through which customers can
secure their lives as well as their family’s financial well-being.

An overview of their life insurance products:

o Term Plans – Bajaj Allianz offers basic term life insurance plans through which
customers can insure their lives for a high sum assured.
o ULIPs – The Company also offers various Unit Linked Insurance Plans which
combine the best of insurance and investment to provide security for one’s family.
These plans come with the aim of helping the customer plan for various long-term
objectives, such as retirement, children’s education and marriage, etc.
o Traditional Plans – Bajaj Allianz’s money-back plans are geared towards the needs of
those customers who are looking for both life insurance and savings for the future.
These plans combine traditional life insurance with investment, compounded over
time, to pay out a regular income to the customer once the plan has matured.
 o Life + Health Insurance Plans – Bajaj Allianz also offers a range of unique
hospitalization-cum-insurance plans that take care of the customers’ hospitalization
bills and provide financial support to their dependents in case of their unfortunate
death.
o Pension Plans – With the awareness that retirement is one of the largest worries of
the populace, Bajaj Allianz has created a range of plans specifically for generating a
retirement income.
o Women Insurance Plans – Bajaj Allianz also offers women-specific plans which
provide investment benefits, savings, retirement solutions and medical insurance, all
in one.
o Additional Rider Benefits – Bajaj Allianz’s life insurance policies are customizable
in a variety of ways. They can be extended to cover additional risks such as
disability, critical illness, loss of ability to work, etc. via the various riders offered by
the company and person as well.
Bajaj Allianz Life Insurance has been rated amongst the 50 top service
brands and ranked as Third Best Life Insurer, as per a survey conducted on 'Most Trusted
Companies' by Brand Equity and AC Nielsen-ORG Marg 2012.

GROWTH OF BAJAJ FINSERV LENDING

11.1 BFL’S FINANCIAL PERFORMANCE

BFL’s financial performance for FY2012 vis-à-vis the previous year, and Chart B plots
profit after tax over the last five years.

(` In Crore)
Particulars
FY2011 FY2012 Change
Total income 1,406 2,172 54%
Interest and finance 371 746 101%
charges
Net interest income 1,035 1,426 38%
Salary cost 145 190 31%
Marketing and other 56 97 73%
commissions
Dealer incentives 47 64 36%
Recovery commission 58 89 53%
Loan loss and provisions 205 154 -25%
Depreciation 10 12 20%
Other expenses 144 218 51%
Profit before tax (PBT) 370 602 63%
Profit after tax (PAT) 247 406 64%
Earnings per share (EPS) 67.5 110.8 64%
basic (`)
Earnings per share (EPS) 67.5 110.3 63%
diluted (`)
Book value per share (`) 370.8 492.2 33%
CHART: A

11.2 GROWTH RATE OF BAJAJ FINSERV LENDING

CHART: B

CORPORATE SOCIAL RESPONSIBILITY (CSR)

12.1 CSR ACTIVITY OF BAJAJ GROUP

The CSR activities of the Bajaj Group are guided by the vision and philosophy of its
Founding Father, Shri Jamnalal Bajaj, who embodied the value of trusteeship in business and laid
the foundation for its ethical and value-based functioning. The core elements of CSR activities
include ethical functioning, respect for all stake-holders, protection of human rights, and care for
the environment.

The Bajaj Group generally implements the above initiatives through its employees,
welfare funds, and Group NGOs/Trusts/Charitable Bodies operating at various locations in the
country. It also enlists the help of non-Group NGOs, local authorities, business associations and
civil society, wherever deemed necessary.

Some of the major initiatives taken up during the year under review are
summarized below:

12.12 THROUGH GROUP TRUSTS:

 In 1976, the Jamnalal Bajaj Foundation was established to promote Gandhian
constructive programmes and assist constructive workers devoted to the national cause.
 AWARDS
The Foundation gives four awards annually, each of the value of ` 5 lakh. Of these,
three are given to individuals in India for outstanding contribution in the fields of constructive
work on Gandhian lines, application of science and technology for rural development, and
upliftment and welfare of women and children. The fourth is an International Award given to
individuals other than Indian citizens from foreign countries for their contribution to the
promotion of Gandhian values outside India.

12.21 JANAKIDEVI BAJAJ GRAM VIKAS SANSTHA (JBGVS)

The group continued with its rural development activities through JBGVS in Pune,
Aurangabad and Wardha districts of Maharashtra, and Sikar district of Rajasthan. JBGVS aims at
integrated development of 75 villages, to be carried out by the villagers themselves, and under
their own leadership by forging partnerships with the Government, local institutions and NGOs.

This year, JBGVS has started working in 90 villages of Wardha district in association
with local NGOs on specific need based projects such as natural farming, sanitation, etc.

12.221 VARIOUS OTHER CSR ACTIVITIES TAKEN UNDER JBGVS ARE:-

o PRIMARY EDUCATION
o PRIMARY HEALTH CARE
o ENVIRONMENTAL DEVELOPMENT
o SOCIAL DEVELOPMENT
o URBAN DEVELOPMENT
 PART: B
REVIEW OF WORKINGS
INTRODUCTION

1.1 INTRODUCTIONS TO THE PROJECT TOPIC: -

“A HYGIENE PARAMETER STUDY – INSURANCE CANCELLATION”

Bajaj Finserv lending is a financial services company, which finance consumer durable
product and lifestyle product at 0% interest rate at store level. Where he also cross- sell his term
life insurance product i.e. Bajaj Allianz life insurance company. But this term insurance product
cross-sell to only customer, who had taken finance from Bajaj Finserv lending.

Bajaj Finserv lending has given me a job “To find the root cause behind insurance
cancellation of its Bajaj Allianz Life Insurance product” at store level.

So, I have visited 50 counters all over Mumbai city from central line to western line. I have
visited the store such as TATA CROMA, RELIANCE DIGITAL RETAIL PVT. LTD, VIJAY SALES,
SNEHANJALI ELECTRONIC AND SOME OPEN MARKET STORES LIKE L.G ELECTRONIC,
KOHINOOR ELECTRONIC etc.

I also have taken feedback from FOS, CUSTOMERS AND DEALERS as well. To understand
cross-sell and reason behind insurance cancellations. And also had a conversation with at least 2
customers at each counter were I have visited, to find out whether they want any changes in
policy as for benefit concerned as well as service.

1.2 WHAT IS TERM INSURANCE?

Term insurance is a life insurance which provides coverage for the policy term
decided between the policy holder and insurer at the onset of the policy.

After this policy term expires coverage is no longer valid. If the insured dies during this
term, the death benefit is paid to the nominee.

1.3 KEY BENEFITS

o Tax Exemption u/s 80C and 10(10D)*

o Get covered 11 major critical illness diseases at a very lower price.

o Get the advantage of a level term cover at low cost, especially for larger sum

assured.

o Benefit of attractive high sum assured rebate.

o Flexibility to select your policy term of 10, 15, 20, 25 or 30 years depending on

your requirement.

o Alter your premium payment frequency.

o Include your spouse at a later date in your existing policy, if you are single at

present.

o Choose additional rider benefit(s) for enhanced protection.

o Plan to meet recurring expenses of your loved ones by opting for payment of benefit

in annual installments.

LITERATURE REVIEW

2.1 BRIEF HISTORY OF INSURANCE SECTOR IN INDIA

The insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the developments in
the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190
years.

The business of life insurance in India in its existing form started in India in the year 1818
with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:
1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.

1928 - The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956 - 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British.

RESEARCH METHODOLOGY

3.1 BRIEF DESCRIPTION ON RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without a

proper well-organized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey was to
collect appropriate data, which work as a base for drawing conclusion and getting
result.

Therefore, Research Methodology is the way to systematically solve the

research p r o b l e m. Res e a r c h m e t h o d o l ogy not only t a l ks of t he me t hods but
a l s o l ogic behind the methods used in the context of a research study and it
explains why a particular method has been used in the preference of the other methods.

3.2 RESEARCH METHODOLOGYCOMPRISES OF:-

 Research objective
 Research design
 Sampling plan
 Data analysis and result

RESEARCH OBJECTIVE

4.1 THE MAIN OBJECTIVE OF THE PROJECT

The main objective of the project is to understand the root cause behind insurance
cancellation of the Bajaj Allianz life insurance {balic}, at all counters of Bajaj Finserv
lending.

KEY DELIVERABLES OF THE PROJECT

  Understand Bajaj Finserv lending selling process and insurance product.

 Meet f.o.s at 30 counters in Mumbai and understand the process of when and how
they are selling insurance to customers.

 Understand from 2 Sample Customers at each of these 30

counters whom the FOS has pitched insurance– what changes they
want in the product.

 Check with sample 50 cancelled customer what has gone wrong

and why are they not interested in the product.

RESEARCH DESIGN

5.1 GRAPHICAL REPRESENTATION OF BAJAJ FINSERV LENDING RESEARCH

DESIGN
 SAMPALING PLAN

6.1 SAMPLE SIZE

Research of project was done through administration of questionnaire to 45+

consumers, 50+ F.O.S and 50+ dealers in the western line and central line in Mumbai city.

FIELD SURVEY PLAN: - stores which I visited over an internship period.

1. SAMPLE SIZE = 145

2. CONSUMERS = 45
3. FOS = 50
4. DEALERS = 50

TELEPHONIC SURVEY PLAN: - Done calling to the customers, who ve’ cancelled their
insurance.

SAMPLE SIZE = 234

NO. OF RESPONDENT = 126

DATA AND ANALYSIS

7.1 FOS FEEDBACK REPORT

Taken FOS feedback by visiting store such as Tata croma, Reliance digital, Vijay sales,
Snehanjali electronic and open market stores such as L.G Electronic, Kohinoor Electronic.

FOS was rated on basis of:-

 PITCHING AFTER MISTRY CALLING = CODE: 1

 PITCHING / PRODUCT AWARENESS = CODE: 2
 COVER NOTE UNDERSTANDING = CODE: 3
 EDUCATING/ GIVING PROPER INF. TO CUSTOMER = CODE: 4
 PITCHING OVER THE COUNTER = CODE: 5
F.O.S
E-ZONE, GOREGAON
PRIYANKA EAST √ √ √ √ √
VIJAY SALES, GOREGAON
RAM SINGH WEST × √ √ √ ×
VISHAL RAHUL ELECTRONIC,
PANCHAL GORE. WEST √ √ × √ √
SNEHANGALI, KANDIVLI
NAVIN KOTIAN WEST × √ √ √ ×
KOHINOOR ELEC.
AJAY MISHRA KANDIVLI √ √ √ √ √
SARITA VIJAY SALES, MIRA ROAD × √ √ √ ×
L.G ELECTRONIC, MIRA
SUNIL ROAD √ √ √ √ ×
RAHUL
SANDEEP ELECTRONIC,BORIVLI EAST √ √ √ √ √

ASHISH VIJAY SALES, BORIVLI

PANDEY WEST × √ √ √ ×
RELIANCE
WASHIM DIGITAL,KANDIVLI EAST × √ √ √ ×
VIJAY SALES, OPERA
ANIKET HOUSE √ √ √ √ √
ARPIT VIJAY SALES,MAHIM
RAJAPURKA WEST √ √ × √ √
GANESH
ACHARYA VIJAY SALES, DADAR × √ √ √ ×
SWAPNIL GALA & SONS, MALAD
GHADE WEST × √ √ √ ×
SWAPNIL RAJ ELECTRONIC,MALAD
GHADE WEST × √ √ √ ×
SWAPNIL RAJESH ELEC. MALAD
GHADE WEST × √ √ √ ×
SWAPNIL EETACHI ELEC. MALAD
GHADE WEST × √ √ √ ×
TATA CROMA, MALAD
SONAM SONI WEST √ √ √ √ √
RELIANCE DIGITAL,
NIRAJ SINGH MALAD WEST × √ √ √ ×
TATA CROMA, KANDIVLI
ASHOK YADAV WEST √ √ √ √ √
MANISH L.G ELECTRONIC, √ √ √ √ √
TIWARI KANDIVLI EAST
DEVI ELECTRONIC,
NITIN RAY BORIVLI EAST × √ √ √ ×
SHURUTI
KADAM TATA CROMA, JUHU √ √ √ √ √
VIJAY
DULAYES VIJAY SALES, SANTACRUZ √ √ √ √ √
SANDEEP
TRIPATI TATA CROMA,BANDRA × √ √ √ ×
TATA CROMA,
KIRAN POPAB BHAYANDER WEST √ √ √ √ √
PRASHANT SNEHANJALI, BHAYANDER × √ √ √ ×
PRAVIN SNEHANJALI,
JHADESHI NALLASOPARA × √ √ √ ×
SHASHANK SNEHANJALI, ANDHERI √ √ √ √ √

7.2 GRAPHICAL REPRESENTATION OF FOS FEEDBACK

7.3 DATA ANALYSIS

Pitching after mystery calling and pitching over the counter is not happening, there is
more numbers of NO that means FOS are not pitching insurance to customers over the
counter. They are generating lead through calling.
7.7 DATA ANALYSIS
Most of the customers are satisfied with the policy, but there are customers’ who demands
for FAMILY COVERAGE AND MATURITY AMOUNT.
7.8 DEALERS FEEDBACK REPORT

Taken a feedback from dealers as well, whether dealers or store managers itself aware of
the insurance product or not?

DEALERS WERE JUDGE ON THE BASIS OF:-

 ANY CASES OF INSURANCE CANCELLATION = CODE: 1

 DEALERS/ STORE MANAGER AWARENESS OF INSURANCE = CODE: 2

 STAFF PERFORMANCE = CODE: 3

 E-ZONE, GOREGAON
PRIYANKA × √ √
EAST
VIJAY SALES, GOREGAON
RAM SINGH × √ √
WEST
VISHAL RAHUL ELECTRONIC,
× √ √
PANCHAL GORE. WEST
SNEHANGALI, KANDIVLI
NAVIN KOTIAN √ × ×
WEST
AJAY KUMAR KOHINOOR ELEC.
√ √ √
MISHRA KANDIVLI WEST
SARITA VIJAY SALES, MIRA ROAD × × √
L.G ELECTRONIC, MIRA
SUNIL × × √
ROAD
RAHUL
SANDEEP ELECTRONIC,BORIVLI × × √
EAST
VIJAY SALES, BORIVLI
ASHISH PANDEY × × √
WEST
WASHIM RELIANCE
√ × √
DESHMUKH DIGITAL,KANDIVLI EAST
VIJAY SALES, OPERA
ANIKET × √ √
HOUSE
ARPIT
VIJAY SALES,MAHIM WEST √ √ √
RAJAPURKA
GANESH
VIJAY SALES, DADAR × × √
ACHARYA
SWAPNIL GALA & SONS, MALAD
× × √
GHADE WEST
SWAPNIL RAJ ELECTRONIC {MALAD
√ × √
GHADE WEST}
SWAPNIL RAJESH ELEC. MALAD
× × √
GHADE WEST
SWAPNIL EETACHI ELEC. MALAD
× × √
GHADE WEST
TATA CROMA, MALAD
SONAM SONI √ × √
WEST
RELIANCE DIGITAL,
NIRAJ SINGH × × √
MALAD WEST
TATA CROMA, KANDIVLI
ASHOK YADAV × × √
WEST
L.G ELECTRONIC,
MANISH TIWARI × × √
KANDIVLI EAST
DEVI ELECTRONIC,
NITIN RAY × × √
BORIVLI EAST
SHURUTI
TATA CROMA, JUHU × × √
KADAM
VIJAY DULAYES VIJAY SALES, SANTACRUZ √ × √
SANDEEP
TATA CROMA,BANDRA √ × √
TRIPATI
 TATA CROMA,
KIRAN POPAB × × √
BHAYANDER WEST
PRASHANT SNEHANJALI, BHAYANDER × × √
PRAVIN SNEHANJALI,
× × √
JHADESHI NALLASOPARA
SHASHANK SNEHANJALI, ANDHERI × × √

7.10 GRAPHICAL REPRESENTATION OF DEALERS FEEDBACK

7.11 DATA ANALYSIS

From the above as you can see 26 dealers has said NO, which means they are
not aware of the insurance product?

7.12 CUSTOMERS CALLING FEEDBACK

Did calling to almost 234 no. of customers, those who have cancelled their insurance

i.e. {balic cancellation cases of April-march, 13} to know the reason behind cancellation.

NUMBE PERCENT
CONCLUSION: R AGE
TOTAL CALLING 234
NO. OF CUSTOMER GIVEN FEEDBACK 126
NO. OF CUSTOMER NOT GIVEN FEEDBACK 108
GIVEN INSURANCE WITHOUT TAKING CUSTOMER CONSENT 56 46%
FINANCIAL PROBLEM 19 21%
NOT CONVEYED PROPER INFORMATION TO CUSTOMER 8 12%
DELAY IN DISPATCHMENT OF DOCUMENT 5 4%
UNDERSTANDING PROBLEM 3 3%

OTHERS PROBLEMS 16 14%

DON'T WANT TO CONTINUE 8
NOT SATISFY WITH POLICY 2
CUSTOMER ALREADY HAVING INSURANCE 4
INSURANCE WAS CANCELLED WITHOUT ASKING CUSTOMER 1
WANT TO CHANGE THEIR NOMINEE, DOESN'T CHANGE i.e.
CANCELLED 1

7.13 GRAPHICAL PRESENTATION OF CALLING REPORT

7.14 DATA ANALYSIS

From the above data you can see that 45% of cancellation reason is because of
miss- selling of insurance product i.e. GIVEN INSURANCE WITHOUT TAKING CUSTOMER
CONSENT and customer financial problem.

FINDINGS AND LIMITATIONS

8.1 KEY FINDINGS

 The root cause behind insurance cancellation is miss-selling of insurance product

and customer financial problem and customers change of mind {this is because
customers were motivated by its peers or family members}.
 From the data I have found that f.o.s were not pitching insurance over the
counter they are generating lead through calling to customers, this is one of the
cause of insurance cancellation.

 Two changes that a customer wants in their insurance policy is maturity amount
and family coverage.

 While visiting the stores, I also found that dealers are not aware of the insurance
benefits and also not bothered about the sale of insurance product.

 Majority of selling happen in the evening time between 6 PM to 10 PM.

 Repeat sale for existing customers is increasing day by day hence this holds a great
scope in future. On the other hand, sale of insurance products will minimize.

8.2 LIMITATIONS

 Delay in dispatch of insurance document that is one of the major problems.

 Most the dealers are unaware of the insurance product they should be consulted at
store level or can be through calling.

SUGGESTIONS AND RECOMMENDATIONS

9.1 NECCESARY RECOMMENDATIONS AS FOLLOWS:-

 FOS should be taught by professional, how to pitch insurance to customers and

when?

 My suggestion is that in weekdays there are fewer footfalls in store those days
insurance should be pitch over the counters and in weekends there more rush in
store. On weekends insurance pitching should be done through calling.
 On Saturday and Sunday, Company can put an extra FOS, at each counter to pitch
the insurance, and this will also help in increasing sales and better customer
satisfaction.
Other recommendations:-

 A promotional campaign must be run, to clarifying the benefits and offerings of

BFSL which will clear the doubts about 0 % finance & 0 processing fees.
 Processing fees should not be charged for the EMI card holders in the case of
Consumer Durables as it will create loyalty among customers and will help build a
strong customer base even before the competitors entering the market.

LEARNINGS
10.1 LEANINGS FROM THE PROJECTS

 Personal learning
 Exposure to corporate world.

 Study of insurance sector in India.

 Academic learning
 Know how to prioritize work.

 Team Work

 Professional learning
 Gain the professional knowledge while working with the company.

 Know Business Etiquettes, Business Communication.

CONCLUSION
 After working for eight weeks’ in “BAJAJ FINSERV LENDING” I found that company
enjoys a monopoly in this segment i.e retail finance. No other company had a such huge sales
work force, which bajaj finserv lending had built. 0% interest finance of consumer and lifestyle
product has getting a tremendous suceess.

From the finding it can be concluded that “BAJAJ FINSERV LENDING” carries a good
reputation in the mind of the customers. Customer usually prefers to finance its entire electronic
product from Bajaj Finserv lending.

The main objective of the FOS team was to plan a proper scheduled “when to
pitch an insurance product to customers with proper technique” so sales target should be
achieved.

To conclude “BAJAJ FINSERV LENDING” needs to focus on their foot falls, sales
finance team should be well educated about the policy and customer preference because our
major competitor is capital first, that is threat to our counters and new store as well.

BIBLOGRAPHY
BOOKS

 Kotler Philip, Marketing Management, 11th edition. Pearson

Education

 Life Insurance-b.p. Agarwal, Sahitya Bhawan, 2011.

 Kimball, Bob. 1994. AMA Handbook for Successful Selling.

PRINT MEDIA

 BUSINESS TODAY
 ECONOMIC TIMES

WEBSITES

 www.bajajgroup.com
 www.bajajfinservlending.in
 www.bajajallianz.com
 www.bajafinanceltd.com
 www.indiainfoline.com
 www.moneycontrol.com
 www.google.com