Summer Training Project Report

On
CUSTOMER PERCEPTION in BAJAJ ALLIANZE At RAJPURA
Submitted in Partial Fulfillment of the Requirement for the Degree
Of
BACHOLERS OF BUSINESS ADMINISTRATION
(BBA)
(Session 2010-13)
Submitted by:
Name: Rajpreet kaur
Roll No: 104082461698

Nepra (Banur), Chd.-Patiala Highway, Near Chandigarh

(Punjab Technical University)
Website:-www.aryans.edu.in

ACKNOWLEDEMENT
Success in any endeavor calls for cooperation and guidance from seniors and colleagues. It often
happens that one is at a loss of word, when one is really thankful and sincerely wants to express
ones gratitude toward someone. I thank this opportunity to extend my heartiest thanks to all
people who have made the presentation to this report possible. If one want to be successful in life
then a blend of the efforts and guidance is required.
I enunciate my abysmal indebted to, Ms. Anshu Malhotra, for her priceless and
inestimable facilities, in the absence of which the accomplishment of this project would not have
been possible.

Name: Rajpreet kaur

Roll no: 104082461698

EXECUTIVE SUMMARY

INTRODUCTION

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation
Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and
Development Authority (IRDA) Act, 1999 and other related Acts. With such a large population
and the untapped market area of this population Insurance happens to be a very big opportunity
in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together
with banking services, it adds about 7 per cent to the countrys GDP .In spite of all this growth
the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian
populations are without Life insurance cover and the Health insurance. This is an indicator that
growth potential for the insurance sector is immense in India. It was due to this immense growth
that the regulations were introduced in the insurance sector and in continuation Malhotra
Committee was constituted by the government in 1993 to examine the various aspects of the
industry. The key element of the reform process was Participation of overseas insurance
companies with 26% capital. Creating a more efficient and competitive financial system suitable
for the requirements of the economy was the main idea behind this reform.
Since then the insurance industry has gone through many sea changes .The competition LIC
started facing from these companies were threatening to the existence of LIC .since the
liberalization of the industry the insurance industry has never looked back and today stand as the
one of the most competitive and exploring industry in India. The entry of the private players and
the increased use of the new distribution are in the limelight today. The use of new distribution
techniques and the IT tools has increased the scope of the industry in the longer run.

COMPANY PROFILE

Bajaj Allianz Life Insurance Co. Ltd

BALIC is a joint venture between Allianz SE of Germany and India based Bajaj Finserv Limited.
BALIC came into being on 12th March 2001. It is characterized by global presence with a local
focus and is driven by customer orientation to establish high earning potential and financial
strength. The company received IRDA (Insurance Regulatory & Development Authority)
Certificate of Registration (R3) No. 116 on 3rd August 2001 to conduct Life Insurance Business
in India.
Bajaj Finserv was formed in April 2007 as a result of its demerger from Bajaj Auto Limited to
act as a pure play financial services business. The process of demerger was completed in Feb
2008.
This demerger was not only to unlock values in the high growth business areas of Auto,
Insurance, Finance sectors and Wind Power but also to run independently these core businesses
and to strengthen the competencies.
The wind power project, the stakes in the life and general insurance companies and consumer
finance along with their respective assets and liabilities got vested in Bajaj Fiserv Limited. In
addition to that cash and cash equivalent of INR 8,000 million (then market value) was also
transferred to the company.
The demerger has enabled investors to hold separate focused stocks and also facilitate
transparent benchmarking of the companies to their peers in their respective industries.
The constantly changing demographics and dynamics of the Indian economy, has led to creation
of various needs of the average Indian customer. The Indian customer now demands proper
avenues of channelizing their savings, financial protection and is also desirous of spending more

on valuable goods and services. All these wants need to be met by dynamic players in the
financial services space. Bajaj Fiserv was formed specifically to cater to these needs. The
company was also formed to touch and improve the lives of a growing number of people in the
country, and in doing so, deliver superior corporate values to its shareholders.
The operating companies carry with them the Bajaj brand, which carries with it decades of
commitment to business ethics, integrity and highest standards of fiduciary responsibility.

ORGANIZATION STRUCTURE

National Network
BALIC has a Pan India presence with

The Head Office located at Pune

8 Zonal Offices located at Delhi, Varanasi, Patna, Kolkata, Indore, Pune, Bangalore &
Chennai

700+ branches

6 hubs - Pune, Chandigarh, Bhilawara, Kolkata, Salem & Coimbatore

Over 10,000 Sales Managers

Over 3, 00,000 Insurance Consultants

More than 10 Banc assurance partners across country

Strong alternate channel with about 1900+ Franchisees, over 250 corporate agents, more
than 35 brokers, and 6 co op banks Over 80 Direct Marketing Branches operating
nationwide

Product Portfolio of Bajaj Allianz Life Insurance:

Bajaj Allianz has many plans in its product portfolio which comprises of retirement plans, child
plan, term plans, savings & investment plans and health plans.
Retirement Plan: With rising inflation, its absolutely necessary to make provisions for the

future which makes retirement plan an important financial decision. Better known as Pension
plan, this plan takes care of financial needs after retirement by investing a part of your savings
for limited period. Pension plan provides steady income after retirement and takes care of daily
needs. The pension plans offered by Bajaj Allianz are Pension Guarantee and Swarna Vishranti.
Child Plan: Parenthood brings responsibilities and no one is better judge of that than you. Child
Plan is a plan specifically designed to take care of financial needs of your child. Child plan
provides with necessary funds that will take care of childs education, marriage etc. By investing
small portion of your savings you secure the financial end of your child. Child plan of Bajaj
Allianz is called Child Gain.
Term Plan: A risk plan which provides comprehensive cover for your family in the unfortunate
event of untimely demise. A term life insurance plan provides good cover at relatively nominal
cost and has no survival benefits. Bajaj Allianz term plans are New Risk Care II, Protector, Term
Care and insecure More.
Investment Plan: Popularly known as ULIP, an investment plan invests part of your savings in
equity or debt market as per your preference. The objective of investment plan is to give you
returns which easily beat the rising costs since the usual returns in a bank are extremely low.
ULIPs offered by Bajaj Allianz are Assured Protection Insurance Plan, Max Advantage
Insurance Plan, I Gain III, Wealth Insurance Plan, Shield Insurance, Invest Gain, Save Care
Economy SP, Life Time Care, Super Saver, Cash Gain.
Health Plan: Slightly different from health insurance, health plan provides cover for surgery
costs, critical illness. A lump sum is paid irrespective of actual hospital bill. Health Care and
Family Care First are Bajaj Allianz health plans.

FOCUS & OBJECTIVES

The main focus of the study is directed towards ensuring safety to the vehicles of insured with a
view to develop In their mind the sense of safety and security of their life and to make them
aware about importance of life insurance.

Objectives:

To recognize and build a strong culture of Excellence beyond Performance.

To acknowledge & recognize accomplishments by our team members.

To establish a transparent and effective reward mechanism Scope

Insurance
MEANING AND DEFINITION OF INSURANCE
Business of insurance is related to the protection of the economic values of assets. Every asset
has a value. The asset would have been created through the efforts of t h e o w n e r. T h e a s s e t
i s v a l u a b l e t o t h e o w n e r, b e c a u s e h e e x p e c t s t o g e t s o m e benefits from it.
The benefit may be an income or something else. It is a benefit because it meets
some of his needs. In the case of a factory or a cow, the product generated by is sold
and income generated. In the case of a motor car, it provides comfort and convenience in
transportation. There is no direct income.

Definitions of Insurance
Insurance is a contract in which a sum of money is paid to the
a s s u r e d a s consideration of insurers incurring the risk of paying a large sum
upon a given contingency. Justice.

CLASSIFICATION OF INSURANCE
Classification of insurance business has evolved over the centuries as insurance has developed,
depending upon the nature and type of business. The various types of covers have been
grouped into several classes. These classifications have come about by practice within
insurance companies, and by the influence of legislation controlling the transacting of insurance
business. Two broad divisions of insurance business have developed into:

A) Long-term and
B) General or non-life insurance business, which is mainly short term
mostly one year.
Long-Term:
Long-Term insurance business refers to life, industrial life, insured pensions and
permanent health insurance business which are normally issued for l o n g p e r i o d s r u n n i n g i n t o s e v e r a l y e a r s o r e v e n f o r w h o l e o f l i f e t i m e o f t h e insured. In
this context, life business is referred to as ordinary life business to distinguish it from
industrial life business.
General or non-life insurance business:
Policies under general insurance business, also referred to as non-life insurance
business, are normally issued for twelve months or shorter durations. Recently long-term
agreements have made an entry into this type of business but the duration does not
normally exceed five years.

Terms Used in Insurance

1. Premium
This is the amount you pay to the insurance company to buy a policy. A single premium policy
will need you to pay just one lump-sum amount. The annual premium policy will require you to
pay every year. This will go on for a fixed period of time.

2. Insurer and Insured

The person in whose name the insurance policy is made is referred to as the policy holder or the
insured. So, if you have taken an insurance policy, you are the policy holder, the one who is
insured
The person whom you name as the nominee is the one who will get the insured amount if you
die. The nominee is referred to as the beneficiary. The insurer is the insurance company that
offers the policy.
3. Compensation
It is the amt. paid by insurer to on the happening of an uncertain event. It is the amt. of actual
loss or the insured amt. whichever is less.
4. Insurance policy
The insurance policy is a contract (generally a standard form contract) between the insurer and
the insured, known as the policyholder, which determines the claims which the insurer is legally
required to pay. In exchange for payment, known as the premium, the insurer pays for damages
to the insured which are caused by covered perils under the policy language. Insurance contracts
are designed to meet specific needs and thus have many features not found in many other types
of contracts.

Basic principles of insurance

The following are the basic essentials 'or requirements of insurance irrespective of the type of
insurance concerned.
1. Utmost good faith
All types of contracts of insurance depend upon the contracts of utmost good faith. Both parties
(insurer and the insured) in the contract must disclose all material facts for the benefit of each
other. False information or non-disclosure of any important fact makes the contract avoidable. So
the conditions to show utmost good faith are very strict on the part of the insured.

2. Insurable Interest
The insured must possess an insurable interest in the object insured. It may be defined as a
financial interest in the subject matter of contract. The presence of insurable interest is a legal
requirement. So an insurance contract without the existence of insurable interest is not legally
valid and cannot be claimed in a Court. The object of this principle is to prevent insurance from
becoming a gambling contract.
3. Principle of indemnity
All types of contracts except life and personal accident insurance are contract of indemnity.
According to them, the insurer undertakes to indemnify the insured against a loss of the subject
matter of insurance due to insured cause. In life assurance the question of loss and, therefore, of
its indemnification does not rise. Because the loss of life cannot be estimated in term of money.
The principles of indemnity are based on the idea that the assured in the case of loss only shall be
compensated against the actual total loss. But if no event happens, the insured has not to receive
any amount, so in this case the premiums paid by him become the profit of the Insurer.

4. Doctrine of subrogation
This principle applies to the contract of indemnity only i.e. marine and fire. It lays down a
principle which is quite equitable. According to this doctrine, where a loss occurs and the insurer
pays as for a total loss, he is entitled to all the rights and remedies which the insured has against
a third party in respect of loss so paid for. It prevents the insured being indemnified from two
sources in respect of the same loss. Suppose A has damaged B is motor car negligently. If he
pays B is loss in full. B cannot collect the same from the insurance company. On the other hand
if B applied to his insurance company for indemnity under his policy, he will not be permitted to
collect the damages from A. In the latter case the insurance company will be entitled to collect
that amount.

Advantages of Insurance
The Insurance has become an integral part of business and human life. The following are the
advantages of insurance:
I. Providing Security:
There is always a fear of sudden loss. There may be a fire in the factory, storm in the sea or loss
of a life. In all these cases it becomes difficult to bear the loss. Insurance provides a cover against
any sudden loss. In case of marine and fire insurance, the loss suffered by the insured is fully
compensated and he is restored to his earlier position. In the same way, if a bread-bringing
member of the family dies prematurely, the family is provided with money to continue with its
livelihood. So, insurance gives security to both individuals and businessman.
II. Spreading Risk:
The basic principle of insurance is to spread risk among a large number of people. A large
number of persons get insurance policies and pay premium to the insurer. Whenever a loss
occurs, it is compensated out of funds of the insurer. The loss is spread among a large number of
policy-holders.
III. Source for Collecting Funds:
In lieu of an insurance cover, the insured pays premium to the insurer. The premium is received
regularly in installments. Large funds are collected by way of premium. The funds can be
gainfully employed in industrial development of a country. Life insurance policies are purchased
by persons from all walks of life. It helps in collecting savings from a large number of persons.

IV. Encourage Savings:

Insurance does not only protect risks but it provides an investment channel too. Life insurance
provides a mode of investment. The insurance develops a habit of saving money by paying
premium. In case of fixed time policies, the insured gets lump-sum amount after the maturity of
the policy.

Life insurance

Meaning of life insurance

Life insurance is the business of affecting the contracts of insurance upon human life, including
any contract whereby the payment of money is assured on death or the happening of any
contingency dependant on human life and any contract which is subject to the payment of
premiums for a term dependant on human life. Characteristics of Life Insurance:

In life insurance, unlike in general insurance, the promise

h a s t o b e redeemed sooner or later. No claim is to be paid on a fire insurance policy,
if t h e r e w a s n o f i r e d u r i n g t h e t e r m o f t h e p o l i c y. B u t t h e h o l d e r o f a
life i n s u r a n c e p o l i c y w i l l h a v e t o b e p a i d e a r l i e r , i f h e d i e s .
O r l a t e r i f h e survives the term.

The amount payable on a claim arising in life insurance is not in doubt. It is as mentioned
in the policy. The amount payable in a claim arising in general i n s u r a n c e d e p e n d s
on the extent of damage, and has to be determined

through

surveys and assessment.

Most of the claimants have not suffered a loss. They are survivors, asking for
fulfillment of a promise in circumstances which are not tragic.

Types of life insurance

Life insurance may be divided into two basic classes: temporary and permanent; or the following
subclasses: term, universal, whole life and endowment life insurance.
Term insurance
Term assurance provides life insurance coverage for a specified term. The policy does not
accumulate cash value. Term is generally considered "pure" insurance, where the premium buys
protection in the event of death and nothing else.
There are three key factors to be considered in term insurance:

Face amount (protection or death benefit),

Premium to be paid (cost to the insured), and

Length of coverage (term).

Types of term insurance

Common types of term insurance include level, annual renewable and mortgage insurance.

Level term policy features a premium fixed for a period longer than a year. These terms
are commonly 5, 10, 15, 20, 25, 30 and even 35 years. Level term is often used for longterm planning and asset management as premiums remains constant year to year,
allowing for long-term budgeting. At the end of the term, some policies contain a renewal
or conversion option. With guaranteed renewal, the insurance company guarantees it will
issue a policy of an equal or lesser amount without regard to the insurability of the

insured and with a premium set for the insured's age at that time. Some companies
however do not guarantee renewal, and require proof of insurability at the time of
renewal. Renewal that requires proof of insurability often includes a conversion option
that allows the insured to convert the term policy to a permanent one, possibly
compelling the applicant to agree to higher premiums. Renewal and conversion options
can be very important when selecting a policy.

Annual renewable term is a one-year policy, but the insurance company guarantees it
will issue a policy of an equal or lesser amount regardless of the insurability of the
applicant, and with a premium set for the applicant's age at that time.

Another common type of term insurance is mortgage life insurance, which usually
involves a level-premium, declining face value policy. The face amount is intended to
equal the amount of the mortgage on the policy owner's property, such that any
outstanding amount on the applicant's mortgage will be paid should the applicant die.

Permanent life insurance

Permanent life insurance is life insurance that remains active until the policy matures, unless the
owner fails to pay the premium when due. The policy cannot be cancelled by the insurer for any
reason except fraudulent application, and any such cancellation must occur within a period of
time defined by law (usually two years). A permanent insurance policy accumulates a cash value,
reducing the risk to which the insurance company is exposed, and thus the insurance expense
over time. This means that a policy with a million dollar face value can be relatively expensive to
a 70-year-old. The owner can access the money in the cash value by withdrawing money,
borrowing the cash value, or surrendering the policy and receiving the surrender value.

Whole life coverage

Whole life insurance provides lifetime death benefit coverage for a level premium in most cases.
Premiums are much higher than term insurance at younger ages, but as term insurance premiums
rise with age at each renewal, the cumulative value of all premiums paid across a life time are
roughly equal if policies are maintained until average life expectancy. Part of the insurance
contract stipulates that the policyholder is entitled to a cash value reserve, which is part of the
policy and guaranteed by the company. This cash value can be accessed at any time through
policy loans and are received income tax free. Policy loans are available until the insured's death.
If there are any unpaid loans upon death, the insurer subtracts the loan amount from the death
benefit and pays the remainder to the beneficiary named in the policy.
Advantages of whole life insurance

The advantages of whole life insurance are guaranteed death benefits, guaranteed cash
values, fixed, predictable annual premiums and mortality and expense charges that will
not reduce the cash value of the policy. The disadvantages of whole life are inflexibility
of premiums and the fact that the internal rate of return in the policy may not be
competitive with other savings alternatives. Riders are available that can allow one to
increase the death benefit by paying additional premium. One such rider is a paid-up
additions rider.

The death benefit can also be increased through the use of policy dividends, though these
dividends cannot be guaranteed and may be higher or lower than historical rates over
time. According to internal documents from some life insurance companies, like
Massachusetts Mutual, the internal rate of return and dividend payment realized by the
policyholder is often a function of when the policyholder buys the policy and how long
that policy remains in force. Dividends paid on a whole life policy can be utilized in
many ways. First, if "paid-up additions" is elected, dividends will purchase additional
death benefit which will increase the death benefit of the policy to the named beneficiary.

Since this additional death benefit generates cash value, it also increases the cash value of
the policy. Another alternative is to opt in for 'reduced premiums' on some policies. This
reduces the owed premiums by the non-guaranteed dividends amount. A third option
allows the owner to take the dividends as they are paid out (although some policies
provide other/different/less options than these - it depends on the company for some
cases). A final option is to invest the dividends in the insurance company's general or
separate account.

Universal life coverage

Universal life insurance (UL) is a relatively new insurance product, intended to combine
permanent insurance coverage with greater flexibility in premium payment, along with the
potential for greater growth of cash values. There are several types of universal life insurance
policies which include interest sensitive (also known as "traditional fixed universal life
insurance"), variable universal life (VUL), guaranteed death benefit, and equity indexed
universal life insurance.

Depending on how interest is credited, the internal rate of return can be higher as it moves with
prevailing interest rates (interest-sensitive) or the financial markets (equity indexed universal life
and variable universal life). Mortality costs and administrative charges are known, and cash
value may be considered more easily attainable because the owner can discontinue premiums if
the cash value allows this.
Flexible death benefit means the policy owner can choose to decrease the death benefit. The
death benefit could also be increased by the policy owner, but that would typically require the
insured to go through a new underwriting. Another feature of flexible death benefit is the ability
to choose from option A or option B death benefits, and to change those options during the life of
the insured. Option A is often referred to as a level death benefit. Generally speaking, the death
benefit will remain level for the life of the insured and premiums are expected to be lower than
policies with an Option B death benefit. Option B pays the face amount plus the cash value. If

cash values grow over time, so would the death benefit which is payable to the insured's
beneficiaries. If cash values decline, the death benefit would also decline. Presumably, option B
death benefit policies would require higher premiums than option a policies.
Endowments
Endowments are policies in which the cumulative cash value of the policy equals the death
benefit at a certain age. The age at which this condition is reached is known as the endowment
age. Endowments are considerably more expensive (in terms of annual premiums) than either
whole life or universal life because the premium paying period is shortened and the endowment
date is earlier.
In the United States, the Technical Corrections Act of 1988 tightened the rules on tax shelters
(creating modified endowments). These follow tax rules in the same manner as annuities and
IRAs.
Endowment insurance is paid out whether the insured lives or dies, after a specific period (e.g.
15 years) or a specific age .
Accidental death
Accidental death is a limited life insurance designed to cover the insured should they pass away
due to an accident. Accidents include anything from an injury and upwards, but do not typically
cover deaths resulting from health problems or suicide. Because they only cover accidents, these
policies are much less expensive than other life insurance policies.
It is also very commonly offered as accidental death and dismemberment insurance (AD&D)
policy. In an AD&D policy, benefits are available not only for accidental death, but also for the
loss of limbs or bodily functions, such as sight and hearing.
Accidental death and AD&D policies very rarely pay a benefit, either because the cause of death
is not covered by the policy, or the coverage is not maintained after the accident until death

occurs. To be aware of what coverage they have, an insured should always review their policy
for what it covers and what it excludes. Often, it does not cover an insured who puts themselves
at risk in activities such as parachuting, flying, professional sports or involvement in a war
(military or not). Also, some insurers will exclude death and injury due to (but not limited to)
motor racing and mountaineering.

Accidental death benefits can also be added to a standard life insurance policy as a rider. If this
rider is purchased, the policy will generally pay double the face amount if the insured dies due to
an accident. This used to be commonly referred to as a double indemnity policy. In some cases,
insurers may even offer triple indemnity.

Whole life insurance or Term?

The right type of life insurance can be summed up in a single word: term. But before we explain
why, it's important to understand the differences between the most common types of insurance
available. Our glossary can help with that, and decipher some of the more common insurance
lingo.
The basic difference between term and whole life insurance is this:

A term policy is life coverage only. On the death of the insured it pays the face amount of
the policy to the named beneficiary. You can buy term for periods of one year to 30 years.
Whole life insurance, on the other hand, combines a term policy with an investment
component. The investment could be in bonds and money-market instruments or stocks.
The policy builds cash value that you can borrow against. The three most common types
of whole life insurance are traditional whole life policies, universal and variable. With
both whole life and term, you can lock in the same monthly payment over business.

Life insurance is expensive: You're paying not only for insurance but also for the
investment portion. That extra cost might almost be worth it if these policies were a good

investment vehicle. But usually they aren't. Insurance agents like to call these policies
retirement plans, emphasizing the "forced savings" inherent in forking over the premiums
each month "for retirement."

Leaving aside the fact that there are many better ways to save for retirement, these
policies come with high fees and commissions, which sometimes lop off as much as three
percentage points from the annual return. On top of that, there are up-front (but hidden)
commissions that are typically 100% of your first year's premium. Worse, it's often
impossible to tell what the return on the investment will be, and how much of what you
pay in goes toward the insurance and how much toward the investment.

Premiums for term insurance are downright cheap for people in good health up to about
age 50. After that age, premiums start to get progressively more expensive. The same
holds true for whole life policies, though people who need coverage starting in their 60s
and beyond may have no alternative but to buy whole life. Most companies simply won't
sell term policies to people over about age 65.

That's not to say that whole life insurance is always a bad idea. Wealthy people can use
whole life in their estate planning by setting up an insurance trust that will pay their
estate taxes from the proceeds of the policy. And for the growing number of people in
their late 40s or early 50s who are just starting families, whole life is at least worth a
look.

One of the great problems with whole life is only an expert can tell if a policy you own or
are considering will ever become a decent investment. James Hunt, actuary for the
Consumer Federation of America, who has analyzed thousands of policies, notes that
whole life policies hardly ever yield a reasonable return unless held for 20 years or more.
So if you buy one be prepared to pay into it for the very long haul.

The key to a whole life policy is its internal rate of return -- the yield on the policy after
all fees and charges are subtracted. A competent analysis can determine at a minimum

whether the weight of the fees and charges built into one of these policies will ever allow
a worthwhile return. Such an analysis will also pinpoint the minimum amount of cash
value that you can derive from a policy at any given time interval.

You've been faithfully paying into that whole life policy a good pal of your brother-in-law
sold you 10 years ago. And now you're thinking, "Hey wait a minute, I should be bailing
out and getting a cheap term policy." Not so fast. First and foremost, keep in mind the
substantial sum you've probably paid in over the years. How much will you get if you
"surrender" or cash it in now? The answer to that question can be found in the
illustrations you got when you signed on the dotted line. If you can't determine the
surrender value you may have to -- heaven forbid -- call your agent and ask. But it's
worth taking the trouble before you make a decision.

Most policies don't start to build decent a cash value until their 12th or 15th year. So if
you cash in after 10 years, you could be out of a lot of money. And you can be sure that if
you surrender in the first five years or so, practically every dime you put in will be down
the toilet. The next thing you have to consider is whether you are still insurable at a
reasonable rate if you switch to term. That's because you'll have to requalify medically. If
you are over 50, smoke or have health problems, you may find it's cheaper to hold onto
your old policy. Another option worth considering is a tax-free transfer of the value in
your old policy into a better one, perhaps from a low-commission company like
Americas.

If you're looking for whole life coverage or a term policy that you'll want to keep 20 or
30 years, the financial soundness of the insurer is a critical concern. You want some
assurance the company will be around in case you aren't. For insurance companies, the
major credit agencies like Standard & Poor's rate claims-paying ability.

Fortunately, information on the credit worthiness of insurance companies is easy to

obtain. Reports are cheap or free over the Internet. You can always contact the insurance
company and ask about its ratings, but it's best to get this information independently. In
general, go with an insurer rated A or better; the most financially sound insurers are rated
AAA, though some rating agencies use slightly different letter grades.

Life insurance contract

Life insurance is a contract between an insurance policy holder and an insurer, where the insurer
promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the
insured person. Depending on the contract, other events such as terminal illness or critical illness
may also trigger payment. The policy holder typically pays a premium, either regularly or as a
lump sum. Other expenses (such as funeral expenses) are also sometimes included in the
premium; however, in Australia the predominant form simply specifies a lump sum to be paid on
the policy holder's death.
The advantage for the policy owner is "peace of mind", in knowing that the death of the insured
person will not result in financial hardship for loved ones.
Life policies are legal contracts and the terms of the contract describe the limitations of the
insured events. Specific exclusions are often written into the contract to limit the liability of the
insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.

Life-based contracts tend to fall into two major categories:

Protection policies designed to provide a benefit in the event of specified event, typically a
lump sum payment. A common form of this design is term insurance.
Investment policies where the main objective is to facilitate the growth of capital by regular or
single premiums. Common forms (in the US) are whole life, universal life and variable life
policies.

Overviews
Parties to contract
There is a difference between the insured and the policy owner, although the owner and the
insured are often the same person. For example, if Joe buys a policy on his own life, he is both
the owner and the insured. But if Jane, his wife, buys a policy on Joe's life, she is the owner and
he is the insured. The policy owner is the guarantor and he will be the person to pay for the
policy. The insured is a participant in the contract, but not necessarily a party to it. Also, most
companies allow the payer and owner to be different, e. g. a grandparent paying premiums for a
policy on a child, owned by a grandchild.
The beneficiary receives policy proceeds upon the insured person's death. The owner designates
the beneficiary, but the beneficiary is not a party to the policy. The owner can change the
beneficiary unless the policy has an irrevocable beneficiary designation. If a policy has an
irrevocable beneficiary, any beneficiary changes, policy assignments, or cash value borrowing
would require the agreement of the original beneficiary.
In cases where the policy owner is not the insured (also referred to as the celui qui vit or CQV),
insurance companies have sought to limit policy purchases to those with an Insurable interest in
the CQV. For life insurance policies, close family members and business partners will usually be
found to have an insurable interest. The insurable interest requirement usually demonstrates that
the purchaser will actually suffer some kind of loss if the CQV dies. Such a requirement prevents
people from benefiting from the purchase of purely speculative policies on people they expect to
die. With no insurable interest requirement, the risk that a purchaser would murder the CQV for
insurance proceeds would be great. In at least one case, an insurance company which sold a
policy to a purchaser with no insurable interest (who later murdered the CQV for the proceeds),
was found liable in court for contributing to the wrongful death of the victim.

Insurance vs. assurance

The specific uses of the terms "insurance" and "assurance" are sometimes confused. In general,
in jurisdictions where both terms are used, "insurance" refers to providing coverage for an event
that might happen (fire, theft, flood, etc.), while "assurance" is the provision of coverage for an
event that is certain to happen. In the United States both forms of coverage are called
"insurance", for reasons of simplicity in companies selling both products.

Senior and pre need products

Insurance companies have in recent years developed products to offer to niche markets, most
notably targeting the senior market to address needs of an ageing population. Many companies
offer policies tailored to the needs of senior applicants. These are often low to moderate face
value whole life insurance policies, to allow a senior citizen purchasing insurance at an older
issue age an opportunity to buy affordable insurance. This may also be marketed as final expense
insurance, and an agent or company may suggest that the policy proceeds could be used for endof-life expenses.
Preneed (or prepaid) insurance policies are whole life policies that, although available at any age,
are usually offered to older applicants. This type of insurance is designed specifically to cover
funeral expenses when the insured person dies. In many cases, the applicant signs a pre-funded
funeral arrangement with a funeral home at the time the policy is applied for. The death proceeds
are then guaranteed to be directed to the funeral services provider for payment of services
rendered. Most contracts dictate that any excess proceeds will go either to the insured's estate or
a designated beneficiary.

Unit Linked Insurance Plans

These are unique insurance plans which are basically a mutual fund and term insurance plan
rolled into one. The investor doesn't participate in the profits of the plan per se, but gets returns
based on the returns on the funds he or she had chosen.
The premium paid by the customer is deducted by initial charges by the insurance companies
(basically the distribution and initial costs) and the remaining amount is invested in a fund (much
like a mutual fund) by converting the amount into units based upon the NAV of the fund on that
date.
Mortality charges, fund management charges and a few other charges are deducted in regular
intervals by way of cancellation of units from the invested funds.
A Unit Linked Insurance Plan (ULIP) offers high flexibility to the customer in form of higher
liquidity and lower term.
The customer has the choice of choosing the funds of his choice from whatever his/her insurance
provider has to offer. He can switch between the funds without the necessity to opt out of the
insurance plan.
ULIPs got extremely popular in the heyday of the equity bull run in India, as the returns
generated in equity linked funds were beating any kind of debt or fixed return instrument.
However, with stagnation of the economy and the equity market this product category slowed
down.
With-profits policies
Some policies afford the policyholder a share of the profits of the insurance company these are
termed with-profits policies. Other policies provide no rights to a share of the profits of the
company these are non-profit policies.
With-profits policies are used as a form of collective investment to achieve capital growth.
Other policies offer a guaranteed return not dependent on the company's underlying investment
performance; these are often referred to as without-profit policies, which may be construed as a
misnomer.

Investment bonds
Pensions
Pensions are a form of life assurance. However, whilst basic life assurance, permanent health
insurance and non-pensions annuity business all include an amount of mortality or morbidity risk
for the insurer, pensions pose a longevity risk.
A pension fund will be built up throughout a person's working life. When the person retires, the
pension will become in payment, and at some stage the pensioner will buy an annuity contract,
which will guarantee a certain pay-out each month until death.
Annuities
Life annuity
An annuity is a contract with an insurance company whereby the insured pays an initial premium
or premiums into a tax-deferred account, which pays out a sum at pre-determined intervals.
There are two periods: the accumulation (when payments are paid into the account) and the
annuitization (when the insurance company pays out). IRS rules restrict how money can be
withdrawn from an annuity. Distributions may be taxable and/or penalized.
Criticism
Although some aspects of the application process (such as underwriting and insurable interest
provisions) make it difficult, life insurance policies have been used to facilitate exploitation and
fraud. In the case of life insurance, there is a possible motive to purchase a life insurance policy,
particularly if the face value is substantial, and then murder the insured. Usually, the larger the
claim, and the more serious the incident, the larger and more intense the ensuing investigation,
consisting of police and insurer investigators.

Recently, vertical settlements have created problems for life insurance providers. A vertical
settlement involves the purchase of a life insurance policy from an elderly or terminally ill policy
holder. The policy holder sells the policy (including the right to name the beneficiary) to a
purchaser for a price discounted from the policy value. The seller has cash in hand, and the
purchaser will realize a profit when the seller dies and the proceeds are delivered to the
purchaser. In the meantime, the purchaser continues to pay the premiums. Although both parties
have reached an agreeable settlement, insurers are troubled by this trend. Insurers calculate their
rates with the assumption that a certain portion of policy holders will seek to redeem the cash
value of their insurance policies before death. They also expect that a certain portion will stop
paying premiums and forfeit their policies. However, vertical settlements ensure that such
policies will with absolute certainty be paid out. Some purchasers, in order to take advantage of
the potentially large profits, have even actively sought to collude with uninsured elderly and
terminally ill patients, and created policies that would have not otherwise been purchased. These
policies are guaranteed losses from the insurers' perspective.

Do You Really Need Life Insurance?

If there is someone who would suffer economic hardship if you died, then the answer is yes...
you need life insurance! Families with young children have a clear need for life insurance. If
both spouses work, the loss of one income will cause the family immediate economic hardship
and make it harder for them to realize future goals, such as paying for the children's' education.
But even if one spouse works "inside the home" and doesn't bring in a formal income, his or her
death will require the surviving spouse to hire child care, housekeepers and other professionals to
help run the household - and that can be a significant new expense.
If you are married without children or single, then you may need life insurance to protect your
partner or surviving family members against te costs associated with your death. Funeral
expenses, probate and administrative fees, outstanding debts, special obligations to charities, and
federal and state taxes are costs that all of us must consider. And, they can add up quickly.

Unless you already have sufficient financial resources, your survivors will probably need life
insurance to cover these expenses.

What Happens To Your Family If You Don't Have Enough Coverage?

Under any circumstances, the loss of a loved one is a traumatic experience. But, if your family is
also left without sufficient money to meet basic living needs or prepare for future goals, they will
have to cope with a financial crisis at the same time. Depending upon their current financial
resources and ability to "get back on their feet" emotionally and financially, your family might be
forced to move to a less desirable home or community, abandon education and career plans,
reorder family priorities (such as the amount of time spent with the children) and, in general, cut
back on the quality of life you

Types of claims
The type of claim can be differentiated into following Categories:

Death benefit claims

Death claim

Rider benefit claims

Critical illness

Hospital cash

Accident permanent total/partial disability benefit

Claim process

(A) In earlier death claim where life assured had a natural death
To be submitted while intimation claim

Intimation letter

Death certificate

Original policy bond

To be submitted in a weeks time after intimation

Claimant statement

Burial / cremation report

Death claim discharge form

Medical attendant certificate

Certificate of hospital treatment

Usual doctor certificate

Medical certificate of cause of death

KYC of nominee- photo id proof along with address proof

ECS form

Bank pass book copy

Cancelled cheque

Employers certificate

(B) In case of unnatural death

First information report

Post mortem report

Panchnama report

Police inquest report

Viscera report (If viscera preserved, as per PMR)

Final police report/Final verdict form court of law

News paper cutting

Driving license

(C) In case of non-early death claim

To be submitted while intimation claim

Intimation letter

Death certificate

Original policy bond

To be submitted in a weeks time after intimation

Claimant settlement

Death claim discharge form

KYC of nominee

ECS form

Bank pass book copy

Cancelled cheque

Document for rider claims are as follow

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.
AREA OF STUDY
The area of the study related with getting correct information of life insurance policies of
different peoples in the region of india.
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.

The questionnaire was non-disguised because the questionnaire was constructed so that the
objective is clear to the respondent. The respondents were aware of the objective. They knew
why they were asked to fill the questionnaire. With the help of following techniques, which are
using by Bajaj Allianz I analyse that the how techniques of sales promotion are useful
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 companiies.

Journals & Magazine.

DATA ANALYSIS
AND
INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

(Based on survey conducted for 50 insurance care consultants)

Q.1Which technique of sales promotion you prefer?
Option
Display
Door to Door Demo
Exhibition
Catalogue
Price off

Response in %
40%
14%
16%
20%
10%

% of Response

Display
Door to Door Demo
Exhibition
Catalogue
Price of

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.2which technique is giving good response from customers?

Option

Response in %

Display
Door to Door Demo
Exhibition
Catalogue
Price off

18%
36%
18%
16%
12%

% response

Display
Door to Door Demo
Erxhibition
Catalogue
Price of

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.

Q.3Which technique is economically beneficial?

Option
Display
Door to Door Demo

Response in %
10%
22%

Exhibition
Catalogue
Price off

10%
46%
12%

% response

Display
door to door demo
Exhibition
Catalogue
price of

Interpretation:
According to the 46% insurance care consultants, catalogue technique is economically
beneficial. 22% to the door-to-door demo and 12% insurance care consultants prefer price off
technique.10% to the exhibition & display technique.

Q4Which technique requires less time in sales promotion?

Option
Display
Door to Door Demo
Exhibition
Catalogue

Response in %
22%
38%
10%
16%

Price off

14%

% response

display
door to door demo
exhibition
catalogue
price of

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.

Q5Which technique is easily manageable?

Option
Display
Door to Door Demo
Exhibition
Catalogue
Price off

Response in %
18%
30%
10%
34%
8%

price of

catalogue

exhibition

Column2

door to door demo

display
0

10

15

20

25

30

35

40

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.6Which technique requires less knowledge to execute?
Option
Display
Door to Door Demo
Exhibition
Catalogue
Price off

Response in %
14%
12%
12%
22%
40%

45
40
35
30
25
20
15

Series 3

10
5
0

Interpretation:
According to the study 40% insurance care consultants vote to the price off technique is require
less knowledge to execute.22% insurance care consultant prefer catalogues, 14% to the display
and 12% to the exhibition & door to door.

Q.7Which technique requires more knowledge to execute?

Option
Display
Door to Door Demo
Exhibition
Catalogue
Price off

Response in %
20%
42%
24%
10%
4%

%Response

display
door to door demo
exhivtion
catalogue
price of

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

Responses in %
46%
40%
14%

Sales

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

Interp
retation:
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.

Q.9Do you think that sales promotion program that is presently undertaken by Bajaj
Allianz. are satisfactory?
Option
yes
No
Cant say

Responses in %
34%
46%
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.

Q10 Should Bajaj Allianz take up new sales promotion program?

Option
yes
No
Cant say

Responses 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.

Conclusion
Your family might even be forced to go into debt simply to pay the expenses, like funeral costs,
taxes, and medical bills that result from your death. A moment's reflection will tell you that the
lack of sufficient life insurance coverage when a loved e l i m i n a t e s s u c h r i s k s a n d

s u b s t i t u t e s one dies can have devastating consequences for family...consequences that can
last for years.

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 very much increased in the last years
because of an excellent performance of the product. Insurance care consultants said that
the customer are very much satisfied after getting insurance policies because of its
features related with risks of life and also because of quality of service provide by their
company is very good

LIMITATIONS
The project study has been carried out by me in Bajaj Allianz after going in through various
aspect of motor insurance policies. However there are certain limitations.

Some of the information on the subject may not have come out correctly during the
project as the entire process is handled by life department.

The information collected by me may be incomplete.

Time constraints.

SUGGESTIONS
Here are some suggestions, which may help to strengthen the firm further

Many of the insurance care consultants of the Bajaj Allianz has lack of communication
skills and training. So company 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.

QUESTIONNAIRE

Q.1To which technique of sales promotion you prefer?

A) Display

B) Door to door demonstration

C) Exhibition

D) Catalogue

E) Price-off

Q.2which technique is giving good response from customers?

A) Display

B) Door to door demonstration

C) Exhibition

D) Catalogue

E) Price-off
Q.3Which technique is economically beneficial?
A) Display

B) Door to door demonstration

C) Exhibition

D) Catalogue

E) Price-off
Q.4Which technique requires less time in sales promotion?
A) Display

B) Door to door demonstration

C) Exhibition

D) Catalogue

E) Price-off

Q.5Which technique is easily manageable?

A) Display

B) Door to door demonstration

C) Exhibition

D) Catalogue

E) Price-off

Q.6Which technique requires less knowledge to execute?

A) Display

B) Door to door demonstration

C) Exhibition

D) Catalogue

E) Price-off
Q.7Which technique requires more knowledge to execute?
A) Display

B) Door to door demonstration

C) Exhibition

D) Catalogue

E) Price-off
Q.8 Price off and installment offers are necessary for sale promotion?
A) Yes

B) No

C) Cant say

Q.9Do you think that sales promotion program that is presently undertaken byBajaj
Allianz. are satisfactory?
A) Yes

B) No

C) Cant say
Q.10 Should Bajaj Allianz. take up new sales promotion program?

A) Yes
C) Cant say

B) No