A Project On BAJAJ GENERAL AND BAJAJ INSURANCE COMPANY PVT LTD.

Executive summary
Insurance is not the sale of products, but servicing customers. It is a system, by which the losses suffered by a few are spread over many, Exposed to similar risks. Insurance is a protection against financial loss arising: on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected. The very fundamental principle of spreading of the risk is actually practiced by the insurance companies by reinsuring the risks that they have insured. The opening up of the Insurance Sector to Private Companies, has made available more products and world class service to Indian Customer. This project has been made with an objective to give an insight into various facts of General Insurance sector in India. An attempt has been made to explain the apex body of General Insurance. i.e. General Insurance Corporation of India, its structure, products and subsidiaries.
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INTRODUCTION
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of 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 2008, Bajaj Allianz General Insurance maintained its premier position in the industry by garnering a premium income of Rs. 2578 crore, achieving a growth of 43 % over the last year.Bajaj Allianz has made a profit before taxes of Rs. 167 crore and is the first company to cross the Rs.100 crores mark in profit after tax by generating Rs. 105 crores. In the first quarter of 2008-09, the company garnered a gross premium of Rs.733.53 crores against Rs.573.73 core last year for the same period registering a growth of 28%.
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 INSURANCE NEED Why is insurance necessary? The question contains the answer within itself. After all, life is fraught with tensions and apprehensions regarding the future and what it holds for the individual. Despite all the planning and preparation one might make, no one can accurately guarantee or pre- dict how or when death might result and the circumstances that might ensue in its aftermath. We are not saying that life and existence are constantly fraught with danger and uncertainty. But then it is essential that you plan for the future. The chances for a fatality or an injury to occur to the average individual may not be particularly high but then no one can really afford to com- pletely disregard his or her future and what it holds. People generally regard insurance as a scheme when and where you have to lose a lot to gain a little. Nevertheless, insurance is still the most reliable tool an individual can use to plan for his future. And just why is it necessary to plan for the future with Insurance? An Overview Insurance business is divided into four classes: 1) Life Insurance business 2) Fire 3) Marine 4) Miscellaneous Insurance.

Life Insurers transact life insurance business; the rest is transacted by General Insurers. No composites are permitted as per law. The business of Insurance essentially means defraying risks attached to any activity over time (including life) and sharing the risks between various entities, both persons and organisations. Insurance companies (ICs) are important players in financial markets as they collect and invest large amounts of premium. Insurance products are multi purpose and offer the following benefits: 1. Protection to the investors 2. Accumulate savings 3. CHANNELISE SAVINGS INTO SECTORS NEEDING HUGE LONG TERM INVESTMENTS

SECTOR PROFILE
Brief History of the Insurance Sector
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 nonlife 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. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency Margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. And the United India Insurance Company Ltd. GIC incorporated as a company.

INSURANCE SECTOR
The opening up of Insurance sector was a part of the on going liberalization in the financial sector of India. The changing face of the financial sector and the entry of several companies in the field of life and non life Insurance segment are one of the key results of these liberalization efforts. Insurance business by way of generating premium income adds significantly to be the GDP. Over the past three years, more than thirty companies have expressed interest in doing business in India. The IRDA (Insurance Regulatory Development Authority) is the regulatory authority, which looks over all related aspects of the insurance business. The provisions of the IRDA bill acknowledge many issues related to insurance sector. The IRDA bill provides guidance for three levels of players - Insurance Company, Insurance brokers and Insurance agent. Life Insurance sector is one of the key areas where enormous business potential exists. In India currently the life insurance premium as a percentage of GDP is 1.3 % against, 5.2 per cent in the US.

General Insurance
General Insurance is another segment, which has been growing at a faster pace. But as per the current comparative statistics, the general insurance premium has been lower than life insurance. General Insurance premium as a percentage of GDP was a mere 0.5 'per cent in 1996. In the General Insurance Business, General Insurance Corporation (GIC) and its four subsidiaries viz. New India Insurance, Oriental Insurance, National Insurance and United India Insurance, are doing major business. The General Insurance Industry has been growing at a rate of 19 percent per year.

Insurance Sector Reforms:

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future, direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. In 1994, the committee submitted the report and some of the key recommendations included: Structure: 1. Government stake in the insurance Companies to be brought down to 50%. 2. Government should take over the holdings of GlC and its subsidiaries so that these subsidiaries can act as independent corporations. 3. All the insurance companies should be given greater freedom to operate. Competition: 1. Private Companies with a minimum paid up capital of Rs. 1 bn should be allowed to enter the industry. 2. No Company should deal in both Life and General Insurance through a single entity. 3. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.

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4. Postal General Insurance should be allowed to operate in the rural market. 5. Only one State Level General Insurance Company should be allowed to operate in each state. Regulatory Body: 1. The Insurance Act should be changed. 2. An Insurance Regulatory body should be set up. 3. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent. Investment: 1.Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. 2. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time.) Customer Service: 1. LIC should pay interest on delays in payments beyond 30 days. 2. Insurance companies must be encouraged to set up unit linked pension plans. 3. Computerization of operations and updating of technology to be carried out in the insurance industry.

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COMPANY PROFILE
Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Author- ity (IRDA) certificate of 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 2009, Bajaj Allianz General Insurance maintained its premier position in the industry by achieving growth as well as profitability. The company garnered a premium income of Rs. 2866 crore, achieving a growth of 11 % over the last year. Bajaj Allianz has made a profit before tax of Rs. 149.8 crore and has become the only private insurer to cross the Rs.100 crore marks in profit before tax in the last three years. The profit after tax was Rs.95 crores, which is also the highest by any private insurer. 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. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune.

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Vision
To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry. To be the number one insurer for creating shareholder value.

Mission
As a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money. A Partnership Based on Synergy. Bajaj Allianz General Insurance offers technical excellence in all areas of General and Health Insurance as well as Risk Management. This partnership successfully combines Bajaj Finserv's in-depth understanding of the local market and extensive distribution network with the global experience and technical expertise of the Allianz Group. As a registered Indian Insurance Company and a capital base of Rs. 110 crores, the company is fully licensed to underwrite all lines of general insurance business including health insurance. Achievements Bajaj Allianz has received "iAAA rating, from ICRA Limited, an associate of Moody's Investors Services, for Claims Paying Ability.This rating indicates highest claims paying ability and a fundamentally strong position.

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Companys History Bajaj Allianz General Insurance Company: Allianz AG:.

Allianz group was founded in 1890 and is one of the world's leading insurance companies with over 100 year's experience in insurance and related services. It is also the largest insurer in Europe. Allianz group has multi-local structure and presence in over 70 countries. The key business areas of Allianz group include General Insurance (property, engineering, marine, motor, casualty and miscellaneous), Reinsurance, Risk Management, Life & health insurance, Asset Management and Pension Funds Management. Bajaj Auto Ltd. Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated in 1945 as Bachraj Trading Corporation. Initially it started by assembling two and three wheelers in collaboration with Piaggio of Italy. After the expiry of the Agreement in 1971 the two and three wheelers acquired the brand name of Bajaj. The strength of the company lies in its strong brand image and ability to offer value for money products leveraging on its large-scale operations. The Joint Venture Bajaj Allianz General Insurance a joint venture non-life company promoted jointly by Bajaj Auto and German insurer- Allianz. Indian auto major holds 74% while Allianz holds 26% in the Joint Venture, and has an authorized and paid up capital of Rs. ll0 crores. Mr. Graham Norris is the CEO of the company. Bajaj Allianz General Insurance will leverage the customer base and expertise of Bajaj Auto Ltd and Allianz.
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Product range of company/industry Bajaj Allianz General Insurance Products

Bajaj Allianz General Insurance Co. Ltd.
o Personal Accident o Hospital Cash Daily Allowance Policy o Health Guard o Critical Illness o Burglary Insurance o Householders Insurance o Travel Companion o Fidelity Guarantee Policy o Office package o Money Insurance o Public Liability o Plate Glass Insurance o Consequential Loss (Fire) Insurance Policy

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OBJECTIVES OF THE STUDY

To study the sales Strategy of field force of Bajaj Allianz General Insurance. To study the process of selling of Insurance Policies by Adivsors.

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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. Research methodology constitutes of research methods, selection criterion of research methods, used in context of research study and explanation of using of a particular method or technique so that research results are capable of being evaluated either by researcher himself or by others. Why a research study has been undertaken, how the research problem has been formulated, why data have been collected and what particular technique of analyzing data has been used and a best of similar other question are usually answered when we talk of Research methodology concerning a research problem or study. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet.

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AREA OF STUDY
The area of the study related with getting correct information of general insurance policies of different peoples in the region of Ghaziabad. SAMPLE DESIGN A sample design is a definite plan for obtaining a sample from a given population. It refers to the techniques or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well be drawn from the population to be included in the sample i.e. the size of the sample. Sample design is determined before data are collected. During my study I have taken 50 insurance care consultants as the size of sample. TOOLS USED To know the response, I have used the questionnaire method. If one wish to find what insurance care consultants think or know, the logical procedure is to ask them. This has led marketing researchers to use the questionnaire technique for collecting data more than any other method. In this method questionnaire were distributed to the respondents and they were asked to answer the questions in the questionnaire. The questionnaire were structured non disguised questionnaire because the question which the questionnaire contained, were arranged in a specific order besides every question asked were logical for the study, no question can be termed as irrelevant. With the help of following techniques, which are using by Bajaj Allianz I analyse that the how techniques of sales promotion are useful.

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DATA COLLECTION
PRIMARY DATA SOURCES: Through interaction with insurance care consultant Through questionnaires filled from the insurance care consultant. SECONDARY DATA SOURCES: Through internet, various official sites of the companies. Through pamphlets and brochures of the companies. Journals & Magazine

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LIMITATIONS OF THE STUDY

Following limitations were faced during the study: 1. While designing the questionnaire it was kept in mind to gather more and more information from each target person. For the neither present nor descriptive questions could have served the purpose. Therefore the questionnaire contained in the open-ended questions. 2. The study was conducted in Bajaj Allianz in Ghaziabad city, which has 127 to 170 insurance care consultants only. The sample size was of 50 insurance care consultants only so that accuracy of data so collected could be absurd covered by circulation of questionnaire. 3. The accuracy of indications given by the respondents may not be consider adequate as whether the language used in the questionnaire is understood by the respondent cannot be taken for granted. 4. The study is based on the information gathered from the insurance care consultants. Therefore in such case it is possible that the information supplied might be biased because the insurance care consultant might have shown partiality towards their insurance policies. 5. Since the survey was limited to 50 insurance care consultants it is rather difficult to give a precise conclusion but I have tried to the best of my capability to give the conclusion on a comprehensive manner.

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DATA ANALYSIS & INTERPRETATION

(Based on survey conducted for 50 insurance care consultants) Q.1 Which technique of sales promotion you prefer? Option Response in % Display 40% Door to Door Demo 14% Exhibition 16% Catalogue 20% Price off 10% Interpretation: According to the study 40% insurance care consultants prefer display technique,20% insurance care consultants prefer catalogues, 16% to the exhibition, 14% to the door to door demo and 10% insurance care consultants prefer price off technique.

Q.2 Which technique is giving good response from customers? Option Response in % Display 18% Door to Door Demo 36% Exhibition 18% Catalogue 16% Price off 12% Interpretation: According to the study 36% insurance care consultants say door to door demo techniques giving good response, 18% insurance care consultants say to the display & exhibition, 16% to the catalogues & 12% say to the price off technique.

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Q.3 Which technique is economically beneficial? Option Response in % Display 10% Door to Door Demo 22% Exhibition 12% Catalogue 46% Price off 12% Interpretation: According to the 46% insurance care consultants, catalogue technique is economically beneficial. 22% to the door-todoor demo and 12% insurance care consultants prefer price off technique.10% to the exhibition & display technique.

Q.4 Which technique requires less time in sales promotion? Option Response in % Display 22% Door to Door Demo 38% Exhibition 10% Catalogue 16% Price off 14% Interpretation: According to the study 38% insurance care consultants say display technique requires less time in sales promotion. 22% to the display technique, 16% insurance care consultants vote to the catalogues, 14% insurance care consultants vote to the 10% to the exhibition.

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Q5 Which technique is easily manageable? Option Response in % Display 18% Door to Door Demo 30% Exhibition 10% Catalogue 34% Price off 8% Interpretation: According to the study 34% insurance care consultants say that the catalogues is easily manageable, 30% to the door to door demo,18% insurance care consultants prefer display technique 10% to the exhibition, and 8% insurance care consultants say to the price off technique.

Q.6 Which technique requires less knowledge to execute? Option Response in % Display 18% Door to Door Demo 14% Exhibition 12% Catalogue 22% Price off 40% Interpretation: According to the study 40% insurance care consultants vote to the price off technique is require less knowledge to execute.22% insurance care consultants prefer catalogues, 14% to the display and 12% to the exhibition & door to door.

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Q.7 Which technique requires more knowledge to execute? Option Response in % Display 20% Door to Door Demo 42% Exhibition 24% Catalogue 10% Price off 4% Interpretation: According to the study 42% insurance care consultants vote to the door-to-door technique that it requires more knowledge to execute than others. 24% to the exhibition, 20% to the display technique, 10% insurance care consultants give vote to the catalogues and 4% insurance care consultants prefer price off technique.

Q.8 Price off are necessary for sales promotion? Option Yes No Cant say Response in % 46% 40% 14%

Interpretation: According to the study 46% insurance care consultants say yes that the price off are necessary for sales promotion. 40% say no and 14% say cant say.

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Q.9 Do you think that sales promotion program that is presently undertaken by Bajaj Allianz. are satisfactory? Option Response in % Yes 34% No 46% Cant say 20% Interpretation : According to the study 46% insurance care consultants say No that the sales promotion program that is presently undertaken by Bajaj Allianz are satisfactorily 36% say Yes and 20% say cant say.

Q.10 Should Bajaj Allianz take up new sales promotion program? Option Yes No Cant say Response in % 72% 22% 6%

Interpretation: According to the study 72% insurance care consultants say yes installment offers are 22% say no and 6% say cant say

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OBSERVATIONS & FINDINGS

This sales promotion process was very much satisfying for me not only practically and academically but it also helped me in developing my communication skill and enriched my knowledge also. I have come to know about the importance of marketing especially with regard to Sales Promotion on the most renowned organization like Bajaj Allianz. Especially because of emergence of many competitor with excellence in services & competitive product. The base of this chapter conclusion is on the data analysis or what we say findings. I have finding from the insurance care consultants of the Bajaj Allianz. and their insurance policies on my topic. When the insurance care consultant is asked why they are dealing in this particular insurance policies (product) they mostly stressed on companys image. They also said that all income and age group of customers are attracted towards their product but buyers are mainly from higher and middle-income group. Insurance care consultants said that their sale is decreased in the last years because of negative trend in market. Insurance care consultants said that the customer are curious in getting insurance policies because they want more discounting on the products and low claim time after any accident.

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SUGGESTIONS
Here are some suggestions, which may help to strengthen the firm further Many of the insurance care consultants of the Bajaj Allianz. Has the lack of good communication skills and training. So training should be easy. Bajaj Allianz. Should use new techniques of sales promotion. Customer services should be more comfortable than others. People must be made aware of the benefits of the policies of Bajaj Allianz. The company should give personal attention to each customer. Proper assistance should be provided to the customer at the time of claim settlement. All the details about the company should be given to the customers. Regular advertisement of the company should be given TV and Newspaper. The company must try to find new markets especially in the rural areas. The company should do frequent analysis of the competitors.

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BIBLIOGRAPHY
Books: Kothari C.R., (1999) Research Methodology, Wishwa Prakashan Kotler P. and Armstrong G., (2005) Principles of Marketing New Delhi, Prentice Hall of India Websites: www.bajajallianz.com www.indiainfoline.com

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TABLE OF CONTENTS Sr No.

1. 2. 3. 4. 5. 6. 7. 8. 2

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INTRODUCTION SECTOR PROFILE COMPANY PROFILE OBJECTIVE OF STUDY RESEARCH METHODOLOGY DATA ANALYSIS & INTERPRETATION OBSERVATION & FINDING SUGGESTION BIBILOGRAPHY

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