1.

Introduction

Fundamentals of insurance
In life every human being-you and we included is exposed to an element of risk, commonly defined as
the possibility of loss. These broadly relate to two spheres-our lives and our material possessions.
Further, every loss has two implications: financial and non-financial. For instance when a person dies,
the family suffers a grievous emotional loss, which can perhaps never be compensated. But the family
also suffers another significant loss-financial loss; particularly person who dies was an earning member
or even potentially earning member. There are then concerns about the financial stability of the
dependents. Similarly, when a factory is gutted in a fire, in addition to the loss of property, there are
other considerations: the effort to rebuild the factory, the future of workers and the fate of suppliers and
consumer attached to the business.

In both instances, little can be done about non-financial losses. But financial losses can-and must-be
addressed and using risk management tool and that is insurance.

What is insurance?

“Insurance is a financial service for collecting the saving of the public and providing them with
a risk coverage.”

General definition: in the words of john Magee, “insurance is a plan by which large number of
people associate and transfer to the shoulders of all risks that attach to individuals.”

Fundamental definition: in the words of D.S. HANSELL, “insurance is accumulated contributions

of all parties participating in the scheme.”

Contractual definition: in the words of justice TINDALL, “insurance is a contract in which a sum
of money is paid to the assured as consideration of insurer’s incurring the risk of paying a large sum
upon a given contingency.”

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 What is life insurance?

Definition of life insurance

According to the us life office management association incorporation (loma), life insurance is defined
as follows:

“Life insurance provides a sum of money if the person who is insured dies whilst the policy is in
effect.”

In other words, surely this is far too brief an explanation for a financial service that provides a very
sophisticated range of savings and investment products, as well as mere compensation for death

Life insurance is a guarantee that your family will receive financial support, even in your absence. Put
simply, life insurance provides your family with a sum of money should something happen to you. It
thus permanently protects your family from financial crises.

in addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme,
which empowers you to accumulate wealth-to buy a new car, get your children married and even retire
comfortably. Life insurance also triples up as an ideal tax-saving scheme.

Need for life insurance

Today, there is no shortage of investment options for a person to choose from. Modern day investments
include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the
plethora of choices, it becomes imperative to make the right choice when investing your hard-earned
money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's
important goals, and protecting assets.

2
 Unique benefits of life insurance

Asset protection

From an investor's point of view, an investment can play two roles - asset appreciation or asset
protection. While most financial instruments have the underlying benefit of asset appreciation, life
insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong
element of asset appreciation.

The core benefit of life insurance is that the financial interests of one’s family remain protected from
circumstances such as loss of income due to critical illness or death of the policyholder.
Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The
customer therefore benefits on two counts and life insurance occupies a unique space in the landscape
of investment options available to a customer.

Goal based savings

Each of us has some goals in life for which we need to save. For a young, newly married couple, it
could be buying a house. Once, they decide to start a family, the goal changes to planning for the
education or marriage of their children. As one grows older, planning for one's retirement will begin to
take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest
should offer corresponding benefits pertinent to the new life stage.

Life insurance is the only investment option that offers specific products tailor-made for different life
stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that
particular life stage, and hence ensures that the financial goals of that life stage are met.

3
The table below gives a general guide to the plans that are appropriate for different life stages.

Life stage Primary need Life insurance product

Young & single Asset creation
Young & just married Asset creation & protection
Children's education, asset
Married with kids
creation and protection
Middle aged with grown Planning for retirement & asset
up kids protection
Across all life-stages Health plans
Wealth creation plans
Wealth creation and mortgage protection
plans
Education insurance, mortgage
protection & wealth creation plans
Retirement solutions & mortgage
protection
Health insurance

Why we need insurance cover?

Insurance will help provide protection to investors from certain or uncertain risks. Certain risk includes
events like death, retirement, pension, education, marriage, etc. Uncertain risk includes events like theft

 A human life is also an income-generating asset. This asset also can be lost through unexpectedly
early death or made non-functional through sickness and disability caused by accident. Accident
may or may not happen. Death will happen, but the timing is uncertain. If it happens around the
time of retirement, when it could be expected that the income will normally cease or the person
could have made some other arrangement to meet the continuing needs. But if it happens much
earlier when the alternative arrangements are not in place, insurance is necessary to help those
dependent on income.

 In case of a human being, he may have made arrangements for his need after his retirement. These
would have been made on the basis of some expectations like he may live for another 15 years or
that his children will look after him. If any of these expectations would become inadequate and
there could be difficulties. Living too long can be as much a problem as dying too young. These are

4
 risks, which need to be safeguard against thorough insurance.

History of insurance

V The roots of insurance might be traced to Babylonian and that is only for goods.

V In the middle of 14th century as evidenced by earliest known insurance contract, marine
insurance was practically universal among maritime nations of Europe.

V By the end of the 18th century, Lloyd’s coffeehouse, in London, had progressed into one of the
first modern insurance companies.

V Insurance developed rapidly with the growth of British commerce in the 17th and 18th century.
V After 1840, with the decline of religious prejudice against the practice, life insurance entered a
boom period. In the 1830s the practice of classifying risk began.
V The workman’s compensation act of 1897 in Britain requires employers to insure their
employees against industrial accidents.

Time line in insurance history

Major landmarks

V 1818 British introduced the life insurance to India with the

Establishment of the oriental life insurance company in Calcutta.

V 1850 Non Life insurance started with triton insurance

Company.

V 1870 Bombay mutual life assurance society is the first India

Owned life insurer.

V 1912 The Indian life assurance company act enacted to regulate the
Life insurance business.

V1938 The insurance act was enacted. Nationalization took place.

5
 Government took over 245 Indian and foreign insurers and
provident societies.

V 1972 Non-life business nationalized, general insurance

Corporation (gic) came into being.

V 1993 Malhotra committee was constituted under the

Chairmanship of former RBI chief r. N. Malhotra to draw
a blue print for insurance sector reforms.

V 1994 Malhotra committee recommended reentry of private

Players.

V 1997 IRDA (insurance regulatory and development

Authority) was set up as a regulator of the insurance.
Market in India.

V 2000 IRDA started giving license to private insurers. Icici

Prudential, hdfc were first private players to sell
Insurance policies.

V 2001 Royal sundaram was the first non-life private player to

Sell an insurance policy.

V 2002 Bank allowed to sell insurance plans as tpas enter the

Scene, insurers start setting non-life claims in the cashless mode.

6
 Research
Methodology

2. Research

7
 Introduction
 Research Objectives
 Research Methodology
o Research Design
o Sampling Design
o Data Collection
 Data Analysis
 Findings
 Conclusion
 Limitations Of The Study
 Recommendations

A. Introduction

8
This research has been conducted to find out the perception of people towards insurance and
effectiveness of communication strategy of Bajaj Allianze lifeinsurance co.ltd.
In past, most of the people investing in insurance were those that were either government servants or
employees as it was mandatory for them. But due to the increasing awareness of insurance,
businessman and professionals have also started investing in insurance. People have started
understanding the importance of insurance in their lives and they invest a suitable portion of their
income in insurance.

People invest in life insurance with an objective. This objective differs from individual to individual.
This study aims at finding out the perception of people regarding what made them invest in life
insurance

It also aims at finding out the effectiveness of communication strategy of Bajaj Allianze lifeinsurance
co.ltd., whether the plan follow the features that have been communicated to customers and does the
plan satisfy the requirements of customers

B. Research objectives
9
There must be an objective behind any research. Without objective there is no meaning of research.
The main aim of research is to find out the truth which is hidden and which has not been discovered
yet. As each research has some or the other objectives, the following are the objectives of this research:

 To know the basic objective of investment in insurance in order to find out the perception of
people towards insurance
 To find out the effectiveness of communication strategy of Bajaj Allianze
 To know the following preference of investors using three parameters of investment viz.
Protection, tax benefit and return
o Preferred plan
o Preferred time frame of investment
o Preferred amount of total investment in life insurance
 To identify the preferred life insurance company for investment
 To identify reasons for investing in Bajaj Allianze’s plan

C. Research Methodology

10
 Research Design
 Unit Of Analysis
 Sampling Design
 Data Collection Method
 Data Analysis

11
 Research methodology

(a) Research Design:

A research design is the arrangement of conditions for collection and analysis of data in a manner that
aims to combine relevance to the research purpose with economy in procedure.

Decisions regarding what, where, when, how much, by what means concerning an inquiry or a research
study constitute a research design. It is the conceptual structure within which research is conducted; it
constitutes the blueprint for the collection, measurement and analysis of data.

It is a plan or a model that helps researcher to conduct a formal investigation and survey. It is an
application of methods and procedures for acquiring the information needs for getting a desire out
come. It decides the sources of data and methods for gathering data.

The following research studies can be used :

 Exploratory research: the main purpose of exploratory research is that of formulating a problem
for more precise investigation. The major emphasis is on the discovery of ideas and insights.
The research design must be flexible enough to provide opportunity for considering different
aspects of a problem under study

 Descriptive research : descriptive research is concerned with describing the characteristics of a

particular individual, or of a group. It includes studies concerned with specific predictions, with
narration of facts and characteristics concerning individual, group or situation

 Hypothesis-testing research : hypothesis-testing research studies are those where the researcher
tests the hypotheses of causal relationships between variables. Such studies require procedures
that will not only reduce bias and increase reliability, but will permit drawing inferences about
causality

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Out of above research methods the research method, which was most suitable to my research, was
exploratory research because it provides me all the opportunities to cover the all the aspects that i
require to conduct the research and get an appropriate out come.

(b) Unit of analysis

A sampling unit or the unit of analysis is that element considered available for selection in the research
process. It is that element which is studied and the data regarding which are collected for the research
purpose. Analysis of this unit serves as the basic purpose of the study.

Sample size:
It is true that it’s very difficult to do the research with the whole universe. As we know that it is not
feasible to go for population survey because of the numerous customers and their scattered location. So
for this purpose sample size has to be determined well in advance and selection of sample also must be
scientific so that it represents the whole universe.

So far as this research is concerned, the sample size taken is of 150 respondents of tapi district
Mode of data collection :
Personal visit & filling up of the questionnaire, with little bit of observation.

Table 1 : mode of data collection

Sample Universe Tapi District

Type of Sampling Non-Probability Convenience
based Sampling
Sample size 150 respondents
 100 respondents from
general public
 50 respondents of Bajaj
Allianze
Research Instrument A structured formatted
questionnaire
The research
13
instrument selected by me was the questionnaire because it gives more flexibility in terms of collection
of the data and one has a chance to meet the responder personally and have an idea of getting an
important unknown data that can be collected through their behavior.

(c) Sampling Design:

The sampling design taken here is non-probability convenience based sampling.

(d) Data collection method:

The task of data collection begins after a research problem has been defined and research design/plan
chalked out. While designing about the method of data collection to be used for the study, the
researcher should keep in mind two types of data.

There are 2 sources of data i.e.

I) Primary Data :
The data, which are collected for the first time, directly from the respondents to the base of knowledge
& belief of the research, are called primary data.

The normal procedure is to interview some people individually or in a group to get a sense of how
people feel about the topic.

Ii) Secondary Data :

When data are collected & compiled in a published nature, it is called secondary data.

So far as this research is concerned, primary data is the main source of information. The data collected
is through questionnaire & information provided by the respondent.

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(e) Data Analysis:

For any researcher it is important that how one has analyzed his or her data in way that it can be clearly
interpreted by him and the proper results can be derived.

For data analysis, the percentage method has been adopted as it suits to the study. Also where necessary
the figures of the number of respondents studied are given to justify the question. The method used
make the data easy and simple to understand and helps to draw a picture of the situation persisting
which can help derive the solution.

The data analysis for perception of people towards insurance and effectiveness of communication
strategy of Bajaj Allianze for which response of 150 respondents were analyzed are as follows :

15
d. Data analysis for perception of people towards insurance

1. What is the basic objective of investment in life insurance?

□ Protection □ Tax benefit □ Return

Table 2 : objective of investment

Objective of investment No. Of respondents

Protection 58
Tax benefit 26
Return 16

Obj e ct ive of I nve st m e nt

16%
Prot ec t ion
Tax Benef it
26% 58% Ret urn

Graph 1

The above graph shows the basic investment objective of the respondents. Out of 100 respondents,
58% perceive protection as their investment objective, 26% perceive tax benefit and the remaining 16%
perceive return as their investment objective. This shows that maximum no. Of people perceive
insurance as protection tool rather than investment tool, which shows that there is growing awareness
of real benefit of insurance.
For respondents who perceive protection as their investment objective :

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2. Which type of plan would you prefer while making the investment?
□ Traditional plan □ Unit Linked plan □ Term plan
□ Health plan □ Pension plan

Table 3 : type of plan preferred (investment objective : protection)

Type of plan No. Of respondents
Traditional plan 4
Unit linked plan 28
Term plan 12
Health plan 8
Pension plan 6

Pr e fe r re d Pla n
Tradit ional Plan

Unit Linked
10% 7% I nc ent iv e Plan
14%
Term Plan

21% 48% Healt h Plan

Pension Plan

Graph 2

The above graph shows the type of plan preferred. Out of 58 respondents who perceive protection as
their investment objective, 48% prefer unit linked incentive plan.
The remaining are divided into : 21% who prefer term plan, 14% who prefer health plan, 10% who
prefer pension plan and 7% who prefer traditional plan. This shows that people who perceive
protection as their investment objective prefer unit linked incentive plan more than other plans.

3. For what time frame would you prefer to invest?

□ 3-5 years □ 10-20 years □ 20 years and above
17
Table 4 : time frame preferred (investment objective : protection)
Time frame No. Of respondents
3-5 years 18
10-20 years 36
20 years and above 4

Pr e f e r r e d T ime Fr a m e

3- 5 y ears
7%
31%
10- 20 y ears

62% 20 years and

above

Graph 3

The above graph shows the preferred time frame of investors. Out of 58 respondents who perceive
protection as their investment objective, 62% investors invest for a time frame of 10-20 years. 31%
investors prefer to invest for a time frame of 3-5 years and 7% prefer to invest for a time frame of more
than 20 years. This shows that people who perceive protection as their investment objective prefer a
time frame of 10-20 years for investment.

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4. Indicate the approximate % of total investment in life insurance
□ Less than 10% □ 10-20% □ 20-40%
□ 40-60% □ 60-80% □ 80-100%

Table 5 : percentage of total investment in life insurance (investment objective : protection)

% of investment in life insurance No. Of respondents

Less than 10% 14
10-20% 32
20-40% 10
40-60% 2
60-80% 0
80-100% 0

% I nve st me nt in Lif e I nsura nce

17% 3% 24% Less t han 10%

10- 20%
20- 40%
56% 40- 60%

Graph 4

The above graph shows the percentage of total investment in life insurance. Out of 58 respondents
who perceive protection as their investment objective, 56% invest around 10-20% of their total
investment in life insurance. 24% respondents invest less than 10%, 17% of them invest around 20-
40% and 3% of them invest around 40-60% of their total investment in life insurance.

for respondents who perceive tax benefit as their investment objective :

19
A] which type of plan would you prefer while making the investment ?
□ Traditional plan □ unit linked plan □ term plan
□ Health plan □ pension plan

Table 6 : type of plan preferred (investment objective : tax benefit)

Type of plan No. Of respondents
Traditional plan 0
Unit linked plan 14
Term plan 8
Health plan 2
Pension plan 2

Pre f e r r e d Pla n

Unit Linked
I nc ent iv e Plan
8% 8% Term Plan

53% Healt h Plan

31%

Pension Plan

Graph 5

The above graph shows the type of plan preferred by investors who perceive tax benefit as their
investment objective. Out of 26 respondents, maximum no. Of people prefer unit linked incentive plan
i.e. 53%. 31% investors prefer term plan, 8% investors prefer health plan and 8% investors prefer
pension plan.

B] For what time frame would you prefer to invest ?

□ 3-5 years □ 10-20 years □ 20 years and above

Table 7 : time frame preferred (investment objective : tax benefit)

20
Time frame No. Of respondents
3-5 years 8
10-20 years 16
20 years and above 2

Pr e f e r r e d T im e Fr a m e

3- 5 y ears
8%
31%
10- 20 y ears

61% 20 y ears and

abov e

Graph 6

The above graph shows the preferred time frame of investment for respondents who perceive tax
benefit as their investment objective. Out of 26 respondents, 61% investors prefer 10-20 years of time
frame for investment. 31% investors prefer 3-5 years of time frame and 8% prefer more than 20 years
of time frame for investment.

21
c] Indicate the approximate % of total investment in life insurance
□ Less than 10% □ 10-20% □ 20-40%
□ 40-60% □ 60-80% □ 80-100%

Table 8 : percentage of total investment in life insurance (investment objective : tax benefit)

% of investment in life insurance No. Of respondents

Less than 10% 6
10-20% 16
20-40% 4
40-60% 0
60-80% 0
80-100% 0

% I nve st m e nt in Life I nsur a nce

15% 23%
Less t han 10%
10- 20%
20- 40%
62%

Graph 7

The above graph shows the percentage of total investment in life insurance for investors who perceive
tax benefit as their investment objective. Out of 26 respondents, 62% investors prefer to invest around
10-20% of their total investment in life insurance. 23% investors prefer less than 10% investment and
15% prefer 20-40% of their total investment in life insurance.

For respondents who perceive return as their investment objective :

1.) Which type of plan would you prefer while making the investment?
22
 □ Traditional plan □ unit linked plan □ term plan
□ Health plan □ pension plan

Table 9 : type of plan preferred (investment objective : return)

Type of plan No. Of respondents

Traditional plan 0
Unit linked plan 16
Term plan 0
Health plan 0
Pension plan 0

P r e f e r r e d Pla n

Unit Linked
I nc ent iv e Plan
100%

Graph 8

The above graph shows the preferred plan of investors who perceive return as their investment
objective. Out of 16 respondents, all of them preferred to invest in unit linked incentive plan.

2.) For what time frame would you prefer to invest?

□ 3-5 years □ 10-20 years □ 20 years and above

23
Table 10 : Time frame preferred (investment objective : return)

Time frame No. Of respondents

3-5 years 8
10-20 years 8
20 years and above 0

Pr e f e r r e d T im e Fr a m e

3- 5 y ears
50% 50% 10- 20 y ears

Graph 9

The above graph shows the preferred time frame of investment for people who perceive return as their
investment objective. Out of 16 respondents, 50% prefer to invest for a time frame of 3-5 years i.e.
Short term investment and 50% of them prefer to invest for a time frame of 10-20 years i.e. Long term
investment

24
3.) Indicate the approximate % of total investment in life insurance
□ Less than 10% □ 10-20% □ 20-40%
□ 40-60% □ 60-80% □ 80-100%

Table 11 : percentage of total investment in life insurance (investment objective : return)

% of investment in life insurance No. Of respondents
Less than 10% 2
10-20% 8
20-40% 6
40-60% 0
60-80% 0
80-100% 0

% I nve stm e nt in Life I nsur a nce

13%
38% Less t han 10%
10- 20%
20- 40%
49%

Graph 10

The above graph shows the percentage of total investment in life insurance for investors who perceive
return as their investment objective. Out of 16 respondents, 49% invest around 10-20%, 38% invest
around 20-40% and 13% invest less than 10% of their total investment in life insurance

25
4.) Indicate your preferred life insurance company
□ Lic □ Icici prudential □ max New York life
□ Bajaj Allianze □ HDFC std. Life □ reliance life insurance
□ Others _________________

Table 12 : preferred life insurance company

Life insurance company No. Of respondents

Lic 38
Icici prudential 18
Max new York life 2
Bajaj Allianze 6
Hdfc std. Life 10
Reliance life insurance 18
Others 8

Pre f e r r e d Lif e I nsur a nce Compa ny

LIC
8%
ICICI Prudent ial
18% 38 % Max New Yo rk Life
Baj aj Allianz
10% HDFC St d. Life
6% Reliance Life Insurance
18%
Ot hers
2%

Graph 11

The above graph shows the preferred life insurance company of investors. Out of 100 respondents,
38% prefer Lic, 18% prefer Icici prudential, 18% prefer reliance life insurance, 10% prefer hdfc
standard life insurance, 8% have chosen others category which include kotak life insurance and new
India insurance, 6% prefer Bajaj Allianze and 2% prefer max New York life

26
 Data analysis for effectiveness of communication strategy of Bajaj Allianze

1. What made you invest in Bajaj Allianze’s plan?

□ Brand name □ services □ reference
□ Time constraint □ high returns □ product satisfaction

Table 13 : reason for investment in Bajaj Allianze

Reason for investment No. Of respondents

Brand name 5
Services 5
Reference 20
Time constraint 0
High returns 10
Product satisfaction 10

Reason for invest in BALIC

Brand Name

Services
10%
20%
10% Reference

20% High Returns

40%
Product
satisfaction

Graph 12

The above graph shows the various reasons why people invested in Bajaj Allianze’s plan.
Out of the 50 respondents, 40% invested on the basis of reference, 20% invested on the basis of high
returns provided by the company, 20% invested because they were satisfied with the product’s features,
10% invested due to brand name and 10% invested due to the services provided by Bajaj Allianze
2.) Does the plan follow the feature that is communicated to you?
□ yes □ no
27
Table 14: plan following feature

Feature followed No. Of respondents

Yes 40
No 10

Fe a t ur e Follow e d

20%

Yes
No

80%

Graph 13

The above graph shows whether the plan that was bought by the customers follow the feature that was
communicated to them. Out of 50 respondents, 80% believes that the plan follows the feature that is
communicated to them and 20% believes that the plan does not follow feature that is communicated to
them

3. Does the plan satisfy your requirement?

□ yes □ no

Table 15 : plan satisfying requirement

28
Requirement satisfied No. Of respondents
Yes 45
No 5

Re quir e me nt sa t isf ie d

10%

Yes
No

90%

Graph 14

The above graph shows whether the plan bought by the customers satisfy their requirements or not.
Out of the 50 respondents, 90% believes that the plan suits their requirement and 10% believes that the
plan does not suit their requirement

4. Are you satisfied with Bajaj Allianze’s services?

□ yes □ no
if no, why ? ___________________________________________

Table 16 : service satisfaction of Bajaj Allianze

29
 Service satisfaction No. Of respondents
Yes 35
No 15

Se r vice sa t isf a ction

30%
Yes
No
70%

Graph 15

The above graph shows whether the customers of Bajaj Allianze are satisfied with their services or not.
Out of 50 respondents, 70% are satisfied with Bajaj Allianze’s services and 30% are not satisfied with
Bajaj Allianze’s services. The reason for dissatisfaction was lack of proper attention given to
customers.

Personal details chart

5. Age: □ 21-35 □ 36-50 □ 51-65 □ above 66

Table 17 : age distribution of respondents

Age No. Of respondents

30
21-35 117
36-50 24
51-65 9
Above 66 0

Age D ist r ibut ion of Re sponde nt s

6%
16%
21- 35
36- 50
51- 65
78%

Graph 16

The above graph shows the age distribution of respondents. Out of 150 respondents 78% fall under the
age category of 21-35 years, 16% fall under the age category of 36-50 years and 6% fall under the age
category of 51-65 years.

31
6. Occupation:
□ Profession □ businessman □ govt. Servant
□ Employee □ others __________

Table 18 : occupation distribution of respondents

Occupation No. Of respondents
Profession 9
Businessman 36
Govt. Servant 3
Employee 87
Others 15

O ccupa t ion D ist r ibut ion of

Re sponde nt s

10% 6% Prof ession

24% Businessman
Gov t . Serv ant
2% Employ ee
58%
Ot hers

Graph 17

The above graph shows the occupation distribution of respondents. Out of 150 respondents, 58% fall
under employee category, 24% fall under businessman category, 10% fall under others category which
includes housewives, 6% fall under profession category and 2% fall under govt. Servant category.

7. Yearly income:
□ Less than 1 lac □ 1 to 2 lacs □ 2 to 3 lacs
32
 □ 3 to 4 lacs □ 4 lacs or more

Table 19 : yearly income distribution of respondents

Yearly income No. Of respondents
Less than 1 lac 27
1 to 2 lacs 87
2 to 3 lacs 27
3 to 4 lacs 9
4 lacs or more 0

I ncom e Dist r ibution of

Re sponde nts

6% 18% Less t han 1 lac

18%
1 t o 2 lac s
2 t o 3 lac s
58% 3 t o 4 lac s

Graph 18

The above graph shows the income distribution of respondents. Out of 150 respondents, 58% earn
income around 1 to 2 lacs, 18% earn income around 2 to 3 lacs, 18% earn income less than 1 lac and
6% earn income around 3 to 4 lacs.

33
 E. Findings

From the research carried out, it was analyzed that most of the people perceive protection as their
investment objective. There are also people who consider insurance as tax saving instrument or merely
as an investment tool.

It was also found that the communication strategy of Bajaj Allianze was good in terms of conveying the
benefits of various products as well as well as fulfilling the requirements of customers. The
dissatisfaction of some of the customers is the result of ineffective communication of some of the
consultant.

Following are the findings of the research:

 About 56% of people who have invested in life insurance perceive protection as their motive for
investment i.e. Most of them perceive insurance on the basis of its real benefits. However, there
are few people who perceive insurance as tax saving instrument or purely as an investment tool.
This shows that people are changing their perception from tax saving instrument to protection
tool.

 It was found that people prefer to invest in unit linked incentive plan more than in traditional
plan, regardless of their investment objective. This shows that people are aware about the
benefits of unit linked incentive plan over traditional plan.

 It was found that people who perceive protection or tax benefit as their investment objective
prefer to invest for a time frame of 10-20 years and people who perceive return as their
investment objective prefer 3-5 years which generate short term returns or 10-20 years which
generate long term returns.

34
 It was found that people generally prefer to invest around 10-20% of their total investment in
life insurance regardless of their investment objective. There are people who invest less than
10% of their total investment in life insurance and they perceive protection or tax benefit as
their investment objective. While people who perceive return as their investment objective
invest around 20-40% of their total investment in life insurance

 From the analysis, it was found that people prefer to invest lic. This shows that lic still covers
more market area than other insurance companies. This shows that other companies have to
increase their awareness and design their product in such a way that it withstands the
competition.

 It was found that most of the customers of Bajaj Allianze bought the plan on the basis of
reference which means it has opportunities to leverage other parameters like product features,
higher returns, brand name, etc. For expanding their business.

 It was found that the communication strategy of Bajaj Allianze is good as 80% were satisfied
with the product feature that was communicated to them and 90% were satisfied as their
requirement was fulfilled. Only some portion of respondents were dissatisfied and that is due to
the fake promises regarding the product features, given by the advisors in order to sell their
products.

 70% respondents are satisfied with Bajaj Allianze’s services. The remaining 30% who are
dissatisfied is due to lack of proper attention.

35
 F. Limitations of the study

The limitations of this study are as follows:

 Personal bias:
Some respondents may have had personal bias due to which they may not have given the
correct information and due to which the right conclusion may not have been derived at.

 Area:
The area was limited only to tapi district. The result may have varied, if it was conducted
somewhere else.

 Time limit:
The time limit taken for conducting the research was very less which could also be one of the
limitations of the study.

 Sample size:
The sample size taken is 150 respondents. If the same research is carried out with large sample
size, the result may vary.

 Non-probability convenience based sampling:

The probability sampling gives better result than non-probability sampling. So it is also one of
the limitations of the study.

36
 G. Conclusion

People invest in life insurance for protection, tax benefit or for generating good return. Life insurance
has become an investment tool which along with protection generates good returns over a long period
of time.

From the research, it can be concluded that:

 People perceive insurance as protection tool rather than tax saving instrument. In the past
people use to perceive insurance as tax saving instrument rather than as protection tool which
was its main motive. But now majority of them perceive it as protection tool.

 Regarding the effectiveness of communication strategy of Bajaj Allianze, it can be concluded

that the benefits and features of products are properly conveyed to customers through the
channel of communication.

 People generally prefer to invest in unit linked incentive plan for longer time duration.

 People invest a suitable amount of their total investment in life insurance which shows that they
pre occupy some portion for life insurance which in turn shows the growing awareness of life
insurance.

 LIC still plays a major role in life insurance sector and the private sector companies have to go
a long way to make their presence in the market.
`
 The communication channel of Bajaj Allianze is working well. It properly conveys the benefits
and features of products to customers. It has also maintained the quality of services and it serves
well to its customers

37
 H. Recommendations

Although most of the people have perceived life insurance in terms of its real benefit, there are still a
no. Of people who do not perceive the real benefit of insurance. There is still need to increase the
awareness regarding life insurance as protection tool.

Following are some of the recommendations:

 The awareness of life insurance can be increased through word of mouth. More and more
communication regarding the benefits of insurance should be done

 Different hoardings communicating benefits should be placed in order to increase the awareness

 Advertising based on emotional approach should be done to make people feel the real benefits
of insurance

 The insurance advisors are the interface between the customer and the Bajaj Allianze. The
advisors should be able to accomplish the following to improve service :

o Assessing and analyzing the client’s risk profile

o Finding the best product available in the market
o Negotiating the best deal available
o Continuity of service throughout the period of insurance

38
A) The brand awareness of Bajaj Allianze should be increased and it can be done through :
1) Holding seminars and informal meetings
2) Distributing brochures/handouts giving complete information of their products
3) Laying emphasis on the value of product rather than on its price
4) Advertisements speaking of the utilities of the product instead of being loaded with
slogans

39
 3.company profile

Bajaj Allianze life insurance is a union between Allianz se, one of the largest insurance company and
bajaj Fiserv.

Allianz se is a leading insurance conglomerate globally and one of the largest asset managers in the
world, managing assets worth over a trillion (over in. 55, 00,000 cores). Allianz se has over 115 years
of financial experience and is present in over 70 countries around the world.
At Bajaj Allianze life insurance, customer delight is their guiding principle. Our business philosophy is
to ensure excellent insurance and investment solutions by offering customized products, supported by
the best technology.

Organizational insight

Bajaj Allianze life insurance co.ltd. Is a partnership that leverages strength?

Joint venture between Allianz se and bajaj Fiserv (formerly known as bajaj auto ltd)
Incorporated on 12th march 2001
Received certificate of registration (no 116) from insurance regulatory development authority
of India on 03rd august 2001

Allianz se
Established in 1890. Allianz se has over 119 yrs of insurance experience.
One of the world’s largest insurance co. By revenue (2007) – rs 681,816 cr (euro 102,298 million)
3rd largest assets under management (aum) & largest amongst insurance cos. - aum of rs 5,096,199 cr
(euro 764,621 million)
50 % of global business from life insurance, approx 60 million lives insured globally.
Presence in more than 70 countries, with 1,81,000 employees worldwide.

40
 Bajaj Fiserv

An associate company of bajaj auto ltd. Incorporated on 30th april 2007

Currently engaged in life insurance, general insurance, consumer finance business, distribution of
financial products & services and wind-energy generation.
Net profit as on 31.03.2008 - rs. 4395 lakhs capital base as on 31.03.2008 - rs. 7234 lakhs

Vision
“To Be The Best Life Insurance Company In India
To Buy From, Work For & Invest In”

41
SWOT ANALYSES :

Strength of Bajaj Allianze

# No.1 private life insurance company since last eight years

# Wide range of most flexible product available
# Reaches through multiple channels
# High penetration in multiple segments
# Decentralized management structure
# Highest growth among all insurance company
# Business from fortune 500 companies

Weakness of Bajaj Allianze

# Lower reach in rural market

# Lower believability in Bajaj Allianze than Lic
# targets only higher classification
# No arrangements’ for cost cuttings

Opportunities for BALIC

# Large unstopped market size

# Higher market growth provides opportunities for company to increase their premium
# Foreign company merge with the Indian banks to increase the network and customer service within
the nation and internationally
# Risk factor of human being has increased as compared to past so, people demand more securities
which increases demand of insurance products

Threats for BALIC

# Neck cut competition

# Other company's lower switching cost can be threat for company to convert others company's
customer to it's products
# The image of co-operative bank has affected the image of private companies in the mind of people,
which may affect image of private insurance company negatively

42
4.Organisational Study

Departments

A) Operation Department

B) Financial Department Study

C) Human Resource Department Study

D) Marketing Department

43
 A) Operation Department

Operations @ Bajaj Allianze

# Decentralized operations for quicker response.

# Nationwide network of 1200 + branches.
# Specialized business channels
• Bancassurance
• Corporate Agency
• Rural
• Micro Insurance
• Group Business
# Dedicated product teams for
• Pension
• Health
• Women and child
• Micro-finance

Customer care centre

# well networked customer care centers (cccs) with state of art it systems.
# Highest standard of customer service & simplified claims process in the industry. Least number
of irda complaints
# Website for all kinds of assistance and information on products and services. Online buying and
renewals.

44
 What is operations
At head office

# Define processes within operations

# Policy decisions in underwriting, claims, policy servicing
# Underwriting of high value proposals
# Monitoring and control – hubs and all offices across the company
# System developments and enhancements
# Reinsurance management
# Online portal management

# Projects and process audits

# New process initiatives and developments
# Management of alternate premium payment methods
#Renewal premium management
#Mis development and bsim
#Operations budget preparation
# Ops manpower planning and budgeting
#Performance appraisal and rating systems
# Undelivered correspondence management
# Logistics management

45
 Functions and role of operations

# Divisional offices
• Initial scrutiny of proposal form
• Cashiering
• Banking
• Forwarding proposals to concerned hub for processing
• Attending walk in customers
• Monitoring and controlling branch offices under them
• Audits of their branch offices
• Renewal collection management for the division
• Policy servicing
• Policy payouts for the division
• chasing of requirements cont’d
# Hub’s
• Data entry
• Underwriting
• Policy issuance - medical and non-medical
• Customer relationship management - following up for requirements
• centralized policy document preparation
• Policy document print and dispatch

46
 BALIC : distribution channel :

Distribution channel at Bajaj Allianze is as below

1.Agency
Agency channel, as the name suggests, is driven by agents (advisors) of the company. For insurance
distribution, this is the most popular channel.

* Total offices = 1059

• Area offices = 338
• Branch offices = 721
*on roll employees = 15,638
* Sales agents working on commission basis=> 3 lakhs
* Business contribution to BALIC = 64% (approx)

* updated 31st mar, 2008

2.Alternate Channel

# Corporate agency - corporate agent as a distribution channel means a partnership firm

or a company selling insurance for Bajaj Allianze
# Franchisees are professionals who have proved themselves in their respective line of
business
# Broking companies are authorized to sell products of different companies with which they have
a tie-up.
# Co-op banks – referral tie-up.
# Largest alternate channel in the industry.
# Bigger than combined alternate channels of 12 private life insurance companies.
# Growth in 2007-08 - 156%
# total no. Of employees: - 1496

47
# verticals:
• Corporate agents: 402
• Franchisees: > 4000
• Brokers: 183
• Co-op banks: 168

# contribution to business:
• Franchisees - 11.6%
• Corporate agents - 84%
• Brokers & co op banks - 4.4%

alternate channel -major players

# corporate agents:
Corporate agents (cas) are corporate entities that source policies for the insurance company with whom
they have a tie-up. They are authorized to source policies for one insurance company only. The
difference between ca & Bancassurance arrangement is that the former trains its own employees to sell
the policies while in case of Bancassurance arrangement, the employees of the insurance company
(fscs) source the business.
These corporate agents for Bajaj Allianze are as below

• Golden enterprises
• Ecpl
• Team life care
• Life sure consultancy

# Brokers:
A variant of cas, brokers are not tied to a particular company and are allowed to source business for
more than one insurance company. this types of brokers are as below

• Ar Insurance Brokers
• Bajaj Capital

48
 # Franchisees:
Franchises are given to that professionalist who have proved them salves by doing extra ordinary
work. This type o franchisees are given to followings
• S Kalicharan
• Farooq Shabvani

3.Bancassurance

Bancassurance is a setup whereby a tie up is made with a bank. This distribution model works on
referral basis. The insurance company is benefited by the customer base of the bank that is made
available to it. The bank, in return earns referral commission for every policy issued to the bank
customer. In this arrangement, typically an employee of the Bajaj Allianze is stationed at the bank
branch and he sources the business through walk-ins that happen at the bank. His domain of
prospective customers is the banks’ customers. Such agents put up at banks are called as financial
service consultant (fsc). Bancassurance, as an arrangement for distribution, has been proved successful
because of the extended reach that the insurance company gets through the bank branch network.

# Offices/ hubs : 10
# No. Of employees : 1500
# Contribution to BALIC business: 10%

As stated above Bajaj Allianze have 10 hubs,1500 employees for this kind of Bancassurance and
it's contribution to businesses is 10%
The main channel partners of Bancassurance are as below
Standard chartered bank
Syndicate bank
Placement sales and services ltd.
Team life care co. (india) ltd.
Ernestine consultants pvt ltd.
Cosmos co-op bank ltd.

49
4.corporate division
# No. Of employees: 70
# Group business: deals with covering the lives of employer - employee and non employer -
employee groups
# Worksite marketing – is the sale of individual life products at the worksites of group clients and
potential group partners.

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 B) Finance Department

Finance dept over view

# the finance department plays a key role in a hugely decentralized environment within which our
company operates
# centralized operations for investments, claims, taxation, payroll etc.
# Payments and unit link withdrawals / surrenders decentralized to branches subject to a limit
# Premiums received at branches get routed to the ho bank a/c’s vide cms arrangements

# Standalone collection a/c’s wherein cms arrangements do not exist

# Branch accountants handle the area offices and attached branches reporting to state accountant
who in turn reports to the zonal accountant
# We have 5 zonal accts, 25 state accountants and about 320 branch accountants. The structure will
change with the revised agency structure

Key highlights of fy 2007-08

# Second largest in new business premium.

# Highest number of new business policies issued.
# Over 3.7 million new business policies.
# having the distribution network to reach the customers across the country with over 2,43,000
agents, present in over 1100 towns.
# Assets under management rs 13,568 cr.
# Shareholder capital base of rs 1,210 cr

51
Initiative taken

Banking :
# Collection of outstation cheques stopped and constunt effort on to realize outstanding outstation
cheques,the number of outstanding cheque has come down drastically.

# constant efforts on to move more bank accounts from stand alone collection account to cms

Streamling of payment process :

# Process has been initiated in consultation with sales admin and marketing for issue of reimbursement
cards and sodexo vouchers for payouts involving less than rs 1,000 for smooth and speedy
distribution of competition payouts

# All major vendors relating to information technology, administration and marketing are being paid
directly to their bank accounts, the same has resulted in reducing the tat time on issuance, signature
and clearance of cheque significantly.

# budgeting – focus would be to improve productivity and grow profitably. The budget norms on
acquisition costs and management costs would be adhered to.
# Standardization of processes – efforts are on to streamline payments processes and move more
and more stand- alone manual process relating to acquisition expenses to standardized system
driven process.

# Procurement system – this year we will be looking at implementing a procurement system to

streamline the procurement process across the company.

# Training - working on a branch accounting manual to train all our field accountants on proper
accounting and ensuring proper compliance of delegation of authority.

52
 C) HR Department

Hr department has been divided in five parts namely

1. Hr Operation,
2. Performance Management & Talent Management,
3. Talent Acquisition,
4. Learning & Development,
5. Business Hr

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 1. HR Operations

Hr operations - key areas

# Payroll
# Employee benefits
# Compliance
# Full & final settlement
# Internal movements (transfer/promotions)
# Hris
# Hr audit
# Hr mis
# Employee relation hub
# Single employee database

Employee benefits

# Employees provident fund

# Gratuity
# Group term life insurance & additional death benefits
# Employee deposit linked insurance (edli)
#Employees state Insurance Corporation (esic)
# Group personal accident (gpa)
# Medicare

54
 2. Talent Management &
Performance Management

• Talent management & employee engagement

# The talent management & employee engagement function undertakes & implements all employee
development/engagement initiatives in BALIC
# Currently the initiatives undertaken are:
• talent management program (tmp) which is currently open for l3b & above and aims to
holistically assess both performance & potential of employees & enables us to develop an
organization wide talent map
• Succession planning that facilitates the successors for each critical position to be determined.
• Excellence awards which recognize all outstanding achievers in BALIC in non-sales functions.

• Objective
# To assess the performance of all employees against their pre-defined targets /kras .
# aims to improve the job performance and satisfaction
# a platform for the supervisors to give feedback on performance, managerial skills and behavior/
attitude
# Enhancing performance and employee engagement.
# enables all employees to make their full contribution to the achievement of the organizations’
strategic goals.
# reward good performers suitably.

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• Appraisal cycle

# The performance appraisal process in BALIC is a biannual ie all eligible employees are assessed
against their set kras twice a year – in October and April.

# the review period looks as under:

• Target setting with in 1 month of joining
• Mid-year appraisals:1st April to 31st September
• Annual appraisals: 1st October to 31st march

• Eligibility criteria

# All employees who have joined on or before December 31st of the previous year.
# All employees in non sales functions across l1 to l5 grade
# all ho employees are eligible for appraisal
# Sales employees except front line sales (approximately l2 and above)

• Channel wise eligibility:

• Agency: all sales employees of grade l2b & above ( except branch managers & cbms)
• Alternate: all sales employees of grade l2a & above
• Banc assurance: all sales employees of grade l2 b & above ( except area managers)
• Business procurement: all sales employees of grade l2a & above
• Corporate business: all sales employees of grade l2 b & above
• Direct marketing : all sales employees of grade l2 b & above
• Strategic initiative: all sales employees of grade l2 b & above
• Health insurance: all sales employees except bdms.

56
• process of target setting

# Employees have to complete their target setting with in 1 month of joining.

# Employees have to discuss and finalize their targets with their superiors
# The target setting and appraisal process is done through the hr portal ie hr4u.
# following categories of employees have standard target templates that are decided by the
concerned functional head / department head :
• cse Abs/am-opossum
• Branch accountant/state accountant/regional accountant
• Branch training executives/branch training manager/state training manager/regional
training manager/zonal training manager (includes all agency/alternate & bancassurance &
direct marketing trainers)
• Admin executives
• Hub employees

57
 3. Talent Acquisition

Leap program

# BALIC'S management trainee program “leap” involves recruitment pan India from management
colleges.

# The on boarding of the management trainees happen every year on 1st of july.

# the mt’s undergoing a comprehensive two weeks training at the head office, post which they are
assigned their respective locations.

# They are in the training period for one year .

# Appraisal happens next year in the month of June, post which depending on the overall performance
& delivery they are absorbed as assistant manager in the organization.

• Outsourced employees management

# All outsourced employees are on the rolls of Bajaj Allianze staffing solutions (bass), a sister
concern of Bajaj Allianze financial distribution ltd.

# BALIC has more than 4000 employees on the rolls of bass.

# BALIC is responsible for the entire process pertaining to outsourced employees starting from
hiring till the exit of an employee

# absorption on BALIC rolls: the outsourced employees are also eligible for absorption to BALIC
rolls based on their performance and tenure with the organization. The process is followed by a
written test & personal round of interview.

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• Trainee program

# BALIC have the following trainee program:

# it trainee:
• This trainee are taken in the it dept for a training period of 2 years.

• Performance appraisal happens every after 6 months and depending on the overall performance
and delivery, they are being absorbed in grade l2.

# Operations trainee:
• This trainee are taken in the operations dept for a training period of 1 year.
• Performance appraisal happens after completion of 1 year and depending on the overall
performance and delivery, they are being absorbed in grade l1

• Recruitment
# The entire recruitment requirements for the head office
( ho ) is taken care by the talent acquisition team.
# The recruitment requirements that are covered under this are :
• fresh recruitments
• internal job postings (ijp’s) : this is done for the entire organization across regions.
• rehiring
• project / summer trainees

59
 4.Learning & development

Scope of work

# PARICHAY - induction of all new employees (on-rolls and off-rolls)

# discover – soft skills workshops
# enlighten – short duration interactions with industry stalwarts
# My learning – e learning course for BALIC employees

# Management development programme

1. Leadership development programme
2. High impact leadership
# Professional development initiative (pdi) - incentives given to employees for clearing exams
conducted by insurance institute of India

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 5.Business HR

Role of business HR
# Compliments the ho hr team as representation at the ground level catering to the hr needs of the
vast spread of offices
# Extended arm of the various hr product teams from ho
# One stop for all hr needs across the country across all channels
# Implementation and feedback of all initiatives undertaken by hr
# Undertakes branch visits, hr induction, attendance processing, employee grievance management,
policy awareness, talent acquisition, talent management, performance management among a host of
other hr activitie

61
 D) Marketing Department

A) marketing department study

1. Marketing scenario – segmentation

2. Target market – customers profile

3. Positioning strategy

4. Product details & product portfolio

5. Channel of distribution

6. Pricing policy

7. Promotional tools employed,

8. Marketing strategy etc.

62
Inroduction

Broadly defined the term ‘market’ is “whenever and wherever there is a potential
demand for the product is known as ‘market’. The concept of market brings full circle to the concept of
marketing. ‘Marketing means working with market actualize potential exchange for the purpose of
satisfying human needs and wants”. Marketing has been originated from distribution function, due to
the centralized production function.

According to the guru of modern marketing concept, fillip Kotler, “marketing is a set of
human activity directed at facilitating change. Their element must be present to define a marketing
situation.
Two or more party who are potentially interested in exchange.
Each possessing thing or valued to other.
Each capable of communication and delivery.”

Marketing management looks after the marketing system of the enterprise. So we can
say that marketing is the process of discovering and transferring consumer’s needs and wants into
product and service involving purchasing power so as to achieve the profit target as other objective set
by the company.

in Bajaj Allianze life insurance company, generally higher expenditure on marketing

and advertisement is not made. Aggressive marketing strategy has not been adopted by the company
like the some competitors have been.

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1.)Market scenario –segmentation

Market segment is the division of the market into different subjects to customers where
any subject may consciously be selected as target market to be reach with different marketing mix.
Basically market segment is process of desegregating total market into number of sub markets. In other
words market segment means division of total market with view of serving and attaining market.

Bajaj Allianze Life Insurance Company has divided target market into various segments. For
example they have different segment for children, youngster, middle-aged people, old age people and
so on.

They have market segment basis on four types

 Age wise: children, middle age, and old age

 Gender wise: male and female
 Income wise: high income, middle income and lower income
 Geographical: east, west, north, south

2) Target Market

Targeting means then products which company are producing is for which segment,
whether it is for youth, children, middle age, old age. They become your target markets and the
process is called targeting. Target market could be any one that depends upon the company that for
which segment it is producing the products and the segment becomes its target market.

BALIC has products for all type of people. But as its most selling policy is personal pension
plan, they are trying to target aged/retired people.

64
3) Positioning Strategy

Positioning is most important. First you have to select target segment, once target
segment is selected, company should identify positioning concept for that segment. Selected
positioning should be developed and communicated well.
Bajaj Allianze life insurance has strong position in the market. Respect your self is the
positioning strategy of the company.

4) product detail and product portfolio:

First we have to understand that what is product planning. A product can be defined as bundle
of utilities having tangible or intangible attributes offered with a motive of satisfying customer’s need
for an exchange value. Products, which exactly match with need of the wants of customers, can be
succeeding in this global market. We should keep in mind that “great ideas need landing gear as well
as wings”.

We know that everybody is having his/her own life or we can say that each of us leads a unique life and
own needs. Bajaj Allianze offers a range of products or we can say different products that invite to
choose the one that suits best. Following are the individual product.

65
The letters “pips” can be used to remember the classification. Let us now look at the features of the
various categories of the life insurance plans.

Life insurance products

Protection products Investment products

1. Pure life insurance 1. To be sold to investors

2. Low premium with high covers 2. The aim is to get long Term real growth
3. No maturity values 3. The risks covered are investment risks.
4. Cover for income earning capacity.
5. Riders fall in this category.

Pension products savings products

1. Provide income 1. Helps a person to save for an event.

2. Protection of the income. 2. Protection of the savings.

3. The risk covered is the risk of 3. The risk covered is the Inability to save
living long. Due to death.

66
The Bajaj Allianze offers plans in each of the above category.

Products for individual:

1. Protection products 1.term assurance

2 loan cover term assurance plan.

2. Savings plan 1.endowment assurance plan

2. Money back plans
3. Children’s plan
(with profits)
4. Unit linked endowment plan.

3. Investment plans 1.single premium whole of life plan.

4. Pension plans 1.personal pension plan (with

Profits)
2. Unit linked pension plan.

Here given below are some popular plans of Bajaj Allianze

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5. Products

68
Bajaj Allianze has launched many interesting products which are given below

Ulip
Bajaj Allianze Century plus.
Bajaj Allianze Family Assure.
Bajaj Allianze Fortune Plus.
Bajaj Allianze Future Secure.
Bajaj Allianze New Family gain
Bajaj Allianze New Unit gain Plus Sp.
Bajaj Allianze New Unit gain
Bajaj Allianze Unit gain Protection Plus.
Bajaj Allianze Young care Plus.
Bajaj Allianze Young care.

Traditional
Bajaj Allianze Cash Gain.
Bajaj Allianze Child Gain.
Bajaj Allianze Invest Plus.
Bajaj Allianze Invest gain.
Bajaj Allianze New Risk Care
Bajaj Allianze Super Saver

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Health
Bajaj Allianze Family Care first

Group Products
Bajaj Allianze Group Gratuity Gold.
Bajaj Allianze Group Leave Encashment.
Bajaj Allianze Group Save Plus.
Bajaj Allianze Group Superannuation Gold.
Bajaj Allianze New Group Gratuity Care.
Bajaj Allianze New Group Super Annuation Care.
Bajaj Allianze Serve Shakti Suraksha.

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Unit gain premiur sp
In this policy, the investment risk in investment portfolio is born by the policy holder

New unit gain premier sp is a unique insurance cum investment plan that provides
Investment a zing from the start, by allocating 105% of the single premium paid from
Day one, thereby ensuring that you get more returns
Bajaj Allianze new unit gain premier sp is exactly what the name suggests, with a wide
Range of high quality investment funds to choose from coupled with flexible investment
Management. You really have the best of all worlds – investment, insurance and tax
Benefits.
With Bajaj Allianze new unit gain premier sp, you can invest in one life insurance plan
That can take care of all your changing requirements, be it your investment needs,
Children education needs or peaceful golden years. This plan has been designed to
Provide your family with higher financial assistance should anything unfortunate were
To happen to you as well as flexibility, so that you do not have to worry about your
Changing needs.

The key features of the new unit gain premier sp plan are:

• It is a unit linked plan with minimum term of 10 years and maximum maturity age 70
• Convenient single premium payment.
• 105% of the single premium is allocated.
• guaranteed death benefit.
• You can adopt your own investment strategy to grow the funds.
• Choice of 4 investment funds today with flexible investment management: you can
Change funds at any time and also invest in the newer funds that may be introduced
From time to time.
• Partial or full withdrawal facility, after three years from commencement (subject to
Surrender charge, if applicable).

71
How does the Bajaj Allianze new unit gain premier sp plan work?

105% of the single premium paid is invested in a fund/funds of your choice and units
Are allocated depending on the price of units for the fund/funds. The value of your
Policy is the total value of units that you hold in the fund/funds. The cost of insurance
And expense charges are deducted through cancellation of units. The fund management
Charge is priced in the unit value.

Death benefit: you can choose a sum assured (level of protection) that you want in
The new unit gain premier sp plan.
Minimum sum assured = 1.25 times the single premium
Maximum sum assured = y times the single premium where y will be as per the
Following table:

Age-group 0-17 18-35 36-45 46-50 51-55 56-60

'Y' 10 10 7 5 3 2

Death benefit:

• On death before the age of 7 years: the death benefit will be the NAV of the units
In the policyholder’s account (fund value) as on date of receipt of intimation of death
At the office. The policy terminates on the death of the life assured.
• On death after the age of 7 years and before the age of 60 years: the death benefit
Will be the higher of the sum assured less the value of the units withdrawn by partial
Withdrawals in the last 24 months prior to the date of death or the NAV of the units
In the policyholder’s account (fund value) as on date of receipt of intimation of death
At the office.
• On death of the life assured on or after attaining the age of 60 years: in this case,
The death benefit will be the higher of the NAV of the units in the policy holder’s
Account (fund value), or the sum assured less all partial withdrawals made within
Two years before attaining age 60 years, and all the withdrawals made after attaining age 60

72
Maturity benefit:
On maturity, the value of the units is payable to the life assured/ policyholder.

Settlement option:
Plan your maturity proceeds by exercising the settlement option with us. This facilitates
You to receive the maturity proceeds in equal installments (payable yearly, half yearly,
Quarterly or monthly, at your option) spread over a maximum period of 5 years .

Investment options:

Bajaj Allianze new unit gain premier sp offers you a choice of 4 funds. You can choose
To invest fully in any one fund or allocate your premiums into the various funds in a
Proportion that suits your investment needs.

The four funds offered are as under:

1. Premier nifty index fund – risk profile – high : the objective of this fund is to provide
Capital appreciation through investment in equities forming part of nse nifty. This
Fund will have an exposure of maximum 15% in bank deposits and money market
Instruments and minimum 85% in equities

2. Premier equity growth fund – risk profile – very high : the objective of this fund is
To provide capital appreciation through investment in selected equity stocks that
Have the potential for capital appreciation. This fund will have an exposure of
Maximum 20% in bank deposits and money market instruments and minimum 80%
In equities.

3. Premier income fund – risk profile – moderate : the objective of this fund is to
Provide accumulation of income through investment in high quality fixed income
Securities. This fund will have an exposure of maximum 20% in money market
Instruments and minimum 80% in g-sacs, bonds and fixed deposits.

4. Premier balancer fund – risk profile – moderate : the objective of this fund is to
73
Provide a balanced investment between long-term capital appreciation and current
Income through investment in the units of our nifty index fund and income funds.
Indicative portfolio allocation is units of premier nifty index fund 30% to 50%, units
Of premier income fund 50% to 70%.
These funds are professionally managed by asset managers of BAJAJ ALLIANZE, backed
With the rich experience of Allianz ag, one of the largest asset managers in the world
Today, managing assets worth more than euro 996 billion (rs. 53,64,456 crores).
Value of units: the unit price of each fund will be the unit value calculated on a daily
Basis. The fund value is equal to the number of units under this policy multiplied by the
Unit price on the relevant valuation date.

Risk of investment in unit of the plan

The life assured is aware that the investment in the units is subject to market risk there can not be
assurance that the objectives of any the fund will be achieved

The price of unit can go up or down depending financial situation

Premier equity growth fund, premier nifty index fund, premier income fund and premier balance fund
do not offer a guaranteed or assured return

All benefits payable under the policy are subject to the tax laws and other financial enactments, as they
exist from time to time

The past performance of the other fund of the company is not necessarily indicative of the future
performance of any of this fund

74
Family care first

Bajaj Allianze family care first presents an innovative yet practical health care plan for everyone in
family including children and parents. This unique hospitalization plan gives a 3-year health cover for
entire family and allows to renew the policy after every 3 years to keep the family covered till the age
of 74 years. So no separate accounts, repetitive paperwork or payment adjustments for each member.
Secure the entire family in one shot.

Key benefits
#Coverage from 3 months to age 74 with guaranteed renewals
#3 year premium guarantee for each policy term
#Hospitalization cover in leading hospitals across the country.
#15% discount on premium on every renewal
#No Claim bonus in the form of increase in sum assured @5% every year
#Day care treatment for 125 day care procedures
#Pre-hospitalization and post-hospitalization benefit
#Reimbursement of ambulance expenses
#Choice to select health critical illness rider
#Choice to include your spouse, children and parents
#Cash less service facility in leading hospitals across the country

Hospitalization cover
Following expenses incurred during the hospitalization (for at least continuous period of 24 hours) for
in-patient treatment would be covered under the policy.

Room rent and boarding expenses

Nursing expenses
Doctor’s fees
Operation theatre charges
Cost of anesthesia, blood, oxygen, medicines and drugs, diagnostic materials, x-ray, surgical
appliances, any disposable surgical consumables, dialysis, radiotherapy, artificial limbs, stents and
implants, and pacemaker

75
Pre-hospitalization and post-hospitalization benefit a flat benefit of 3% of the reimbursable hospital
expenses will be paid on each hospitalization claim towards pre-hospitalization and post-hospitalization
expenses.

Ambulance charges
In case the hospitalization requires an ambulance, the expenses for ambulance will be reimbursed by us
Subject to a maximum reimbursement of rs. 1,000 for a member in a policy year provided the member
is hospitalized for more than 24 continuous hours.

Cash less service facility

Cash less services (cls) will help you avail the hospitalization benefits without any advance payment
In the hospital and facilitate quick delivery of services through network hospitals (nwh).
Third party administrators (tpa) of the company facilitates the cash less services.
on issuance of the policy, the tpa will provide the member(s) a photo identification card and a guide
book, which would contain a list of nwh, the details explaining the process for application of cls and
hospitalization intimation form / pre-authorization form to be filled up by your attending doctor for
hospitalization in nwh.
the tpa will maintain 24/7 helpline on toll free number as well as mobile number to facilitate any
medical emergency requirement.
to avail of the cls facility all you need to do is to contact the tpa at any of their offices which are
convenient to you and submit the hospitalization intimation form / pre-authorization form.

in case of an emergency the member need to produce the photo identification card in nwh to get
admission and within 48 hours of hospitalization you will have to contact the tpa to obtain cls
authorization.
If cls is authorized then your hospitalization expenses will directly be settled by the tpa with nwh to the
extent it is reimbursable and the balance of the hospitalization expenses would be settled by you at the
time of discharge.

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No claim bonus
If none of the member claims during the previous policy year, the sum assured under the plan will be
increased by an amount equivalent to 5% of the basic sum assured in the subsequent policy year subject
to a maximum increase of 25% of the basic sum assured over the duration of the policy including
renewals, where the basic sum assured means the sum assured chosen as on policy commencement
date.

However if a claim is made by any of the member(s) after this provision has come into force, then the
sum assured under the policy will be reduced back to the sum assured chosen as on policy
commencement date in the subsequent policy year.

• Choices available to you

Health critical illness rider

This cover provides a lump sum benefit equal to a chosen sum assured on diagnosis of the specified
critical illnesses irrespective of the status of reimbursement of medical expenses.
Only the primary member and his/her spouse shall be covered.
(Please refer to the health critical illness rider brochure for more details.)

Inclusion of family members

On any policy anniversary, you have the option to include your spouse, parents or children under the
family policy.
The inclusion of new members in the policy will be subject to underwriting of the new members and
the waiting period for new members will apply afresh from the policy anniversary they join the policy.
On inclusion of new member(s), the revised premium shall be applicable.

77
Eligibility

Minimum maximum
Entry age
• Primary member and spouse of 18 years 56 years for a new policy
Primary member 50 years if health critical illness rider is opted for 71 for a renewed policy
• Parents 68 years for a new policy 71 for a renewed policy
• Children 3 months 18 years
Sum assured 1, 00,000 to 10,00,000
Maximum maturity age at which 74 years for primary member,
Risk cover expires spouse of primary member and parents
65 years if health critical illness rider is opted for
21 years for children
Policy term 3 years
Mode yearly, half-yearly, quarterly and monthly
Monthly is permitted only by salary deduction and ecs only.

Limits on reimbursement of expenses

In a policy year, our total liability towards reimbursement of medical expense including any other

Benefit payment under the policy shall be limited to the sum assured.
if hospitalization is due to the following illnesses/ailments/procedures/group of illnesses, we will
reimburse
95% of medical expenses subject to maximum reimbursement limit per member as given below in the

Table:
S. Illnesses/ailments/procedures/group of illnesses the lower of:
No % of sum assured lump sum in rs.
1. Cataract 12% 25,000
2. Knee replacement 50% 1,50,000
3. Hip replacement 50% 1,75,000

78
4. Miscarriage (as a result of an accident) or not applicable 30,000
Ectopic pregnancy
if hospitalization has taken place due to illnesses/ailments/procedures/group of illnesses other than
Those listed above, then we will reimburse 95% of following expenses :
Room rent and maximum 1.5% of sum assured for non intensive care unit (icu) and
Boarding expenses 3% of sum assured for intensive care unit (icu)
Per day room rent and boarding expenses would include registered medical officer
Charges, administration charges for iv fluids/blood transfusion/injections
Doctor’s fee maximum 25% of the total medical expenses incurred on in-patient
Treatment
Other actual expenses on operation theatre
Actual expenses on nursing
Actual expenses on anesthesia, blood, oxygen, medicines and drugs,
Diagnostic materials, x-ray, surgical appliances, any disposable surgical
Consumables, dialysis, radiotherapy, cardiac pacemaker, artificial limbs,
Stents and implants

• Grace period, lapse & reinstatement

If any installment premium is not received in full by the due date, we shall allow a grace period of 15
days under all premium payment modes for premium to be received in full. If premium is not received
within the grace period, then the policy will lapse without acquiring any surrender value or paid up
value.
If hospitalization of the member(s) occurs during this grace period, the policy would be treated as in
force
And we will deduct unpaid premium due as at the date of payment from any benefit payable to the
policyholder.
a lapsed policy may be revived within 30 days of the due date of the first unpaid premium subject to
medical examination if required by us, at your expense, and payment of outstanding premiums. The
revival of the policy may be on the terms then prevailing rather than those that applied at the policy
commencement date or at subsequent renewal date.if the policy is not revived within 30 days from the
due date of first unpaid premium, then at the expiry of the 30 days, the policy shall be terminated

79
without any residual/ surrender value.

Renewals:

The policy can be renewed within 30 days after the expiry of the current policy term at the premium
rates
And terms & conditions prevailing at the time of renewal.
On every renewal, where renewal occurs within 30 days after the expiry of the previous policy term, a
15% discount will be provided on the premium applicable to the new policy. The discount rate might
change in future subject to irda approval.
if the proposed sum assured for renewal is more than the existing sum assured, then renewal of the
policy would be subject to the member(s) satisfying our underwriting requirements. The company shall
have right to refuse such increase in the sum assured.
Your right to renew the policy shall expire at the end of 30 days after the expiry of the previous policy
term.

Exclusion for hospitalization benefit

We shall not be liable to make any payment if hospitalization or medical expenses or claims are
attributable to or based on or arise out of or are directly or indirectly connected to any of the following:
Hospitalization and hospital services not recommended and approved by a doctor;
Expenses which are not actual and medically necessary;
Treatment for weight reduction or weight improvement;

80
Unit gain guarantee sp

“In this policy, the investment risk in investment portfolio is borne by the policyholder”

The Bajaj Allianze unit gain guarantee sp comes with a host of features to the best of all worlds –
protection, investments and guaranteed returns. It enables every participant to create a solid financial
protection and savings plan for himself and his family. In this way, as a participant in the Bajaj Allianze
unit gain guarantee sp plan, one can secure his well being and accumulate savings towards financial
independence and a comfortable retirement.

The key features of the Bajaj Allianze Unit gain guarantee sp plan are:

 It is a unit linked plan with minimum guaranteed returns on maturity.

 Guaranteed maturity benefit: up to 112% of allocated premiums less charges (mortality charges
and policy administration charges)
 Guaranteed death benefit: sum assured plus fund value.
 Convenient policy term of 5, 7 & 10 years.
 A Specially created capital guarantee fund with an optimum mix of debts, equities and cash
market securities to give you the dual benefits of long-term capital appreciation and high
current income.

How does the Bajaj Allianze unit gain guarantee - sp plan work?
The allocated portion of the premiums paid is invested in the fund specially created for unitgain
guarantee - sp (depending on the allocation rate) and units are allocated depending on the price of units
for the fund. The cash value of your policy is the total value of units that you hold in the fund. The
mortality charges and policy administration charges are deducted through monthly cancellation of
units. The fund management charge is priced in the unit value.

Sum assured : you can choose a suitable basic sum assured under the unit gain guarantee - sp plan.
Minimum sum assured = 125% of the single premium
Maximum sum assured = y times the annualized premium where y will be as per the following table:

Age 8– 17 18-35 36 – 45 46 – 50 51 – 55 56 - 55
Y 10 10 7 5 2 1.25

Death benefit:
In case of unfortunate death, the beneficiaries are entitled to receive sum assured plus the fund value, as
on date of intimation of death in our office.

81
Maturity benefit:
The maturity benefit will be equal to the fund value, subject to the minimum guaranteed amount as
mentioned below:
 Term 5: 106% of the net amount of allocated single premium less total mortality charges
and total policy administration charges applicable during the policy term,
 Term 7: 108% of the net amount of allocated premium less total mortality charges and total
policy administration charges applicable during the policy term,
 Term 10: 112% of the net amount of allocated premium less total mortality charges and total
policy administration charges applicable during the policy term,

The above minimum guarantee is applicable provided no withdrawal is made during the term of the
policy. If partial withdrawals are made, only fund value would be payable on maturity.

Investment options:
Bajaj Allianze unit gain guarantee offers you a unique 3-in-1 capital guarantee fund that bundles the
benefits of debt, equity and cash fund. The fund will give long term capital appreciation coupled with
current income and also provide for the safety of your investment.
The investment mix will be as:
Debt: up to 100%
Equity: not more than 50%
Cash: not more than 20%

This fund is professionally managed by asset managers of Bajaj Allianze, backed with the rich
experience of allianz ag, one of the largest asset managers in the world today, managing assets worth
more than euro 996 billion (rs. 53,64,456 crores).

Value of units: the unit price of each fund will be the unit value calculated on a daily basis. The fund
value is equal to the number of units under this policy multiplied by the unit price on the relevant
valuation date.

Cash withdrawal option: after three years from commencement of the policy withdrawals through
partial or complete surrender of units is allowed. In case of partial withdrawals, a minimum balance of
rs. 15,000 or one tenth of the single premium whichever is higher should be maintained after
withdrawal. The minimum amount of withdrawal is rs.5000.
In case of partial or full withdrawals minimum guarantee is not applicable.

Important details of the ‘Bajaj Allianze unit gain guarantee’ plan

Minimum age at entry: 13 yr for term 5 ; 11 yr for term 7 ; 8 yr for term 10 yr
Maximum age at entry: 65 attained (for term = 5); 63 attained (for term = 7); 60 attained (for term =
10)
Policy term: 5, 7 & 10 years
Premium paying term: single premium
Minimum /maximum age at maturity: 18 / 70

82
Foreclosure
If the policyholder has made any partial withdrawals and the value of the units in the policyholder’s
th
fund falls below 1/10 of the single premium, the policyholder will be intimated about this in writing
and then, the policy will be foreclosed and the value of the units would be paid upon such termination.
The capital guarantee is not applicable in case of foreclosure or pre – mature termination of the policy.

Fund access – loan

Loan facility is not available under this policy.

Free look period

Within 15 days of the receipt of this policy, the policyholder may, if dissatisfied with it for any reason,
give the company a written notice of cancellation along with reasons for the same, and return the policy
document to the company, subject to which the company shall send the policyholder a refund
comprising the single premium paid less the proportionate risk premium for the period the life assured
was on cover and the expenses incurred on medical examination and stamp duty charges. The refund
paid to the policyholder will also be reduced by the amount of any reduction in the fund value due to
fall in the unit price between the date of allocation and redemption of units (without reference to any
premium allocation rate or charges).

Tax benefits
Premiums paid will be eligible for tax deduction as per section 80 c of the income tax act and partial
withdrawals, full surrender and maturity benefits are eligible for tax benefits as per section 10(10) d of
the income tax act.

Charges under the plan

Given below are the details of the various charges that will be recovered from the plan to meet
expenses.

Policy administration charge: rs. 50 per month per policy (charged monthly through
cancellation of units), escalating at 5% per annum.

Fund management charge: 1.25% p.a. Of the net assets value of the fund.

Allocation: a portion of the premium paid will be charged towards the initial & other expenses.
The balance will be allocated to purchase units.

The allocation percentage is 97.5% of single premium.

Mortality charges: the mortality charge would vary according to the attained age of the life assured at
the time of deduction of the monthly cost of insurance as per the table below. Sample standard rates are
given in the table below. (annual mortality charge per 1000 sum assured of life cover)

Age 20 30 40 50

83
 Mortality charge 1.57 1.74 2.82 6.53

Revision of charges

After taking due approval from the insurance regulatory and development authority, the company
reserves the right to change the following charges:
 Fund management charge can be revised up to a maximum of 2 % per annum of the nav for the
fund.

Risks of investment in the units of the plan:

1) unit linked life insurance products are different from the traditional insurance products and are
subject to the risk factors.
2) the premium paid in unit linked life insurance policies are subject to investment risks associated
with capital markets and navs of the units may go up or down based on the performance of
fund and factors influencing the capital market and the insured/policyholder is responsible
for his/her decisions.
3) Bajaj Allianze life insurance is the name of the insurance company and Bajaj Allianze unit gain
guarantee - sp is only the name of the plan and does not in any way indicate the quality of
the plan , its future prospects or returns.
4) The investments in the units are subject to market and other risks and there can be no assurance
that the objectives of any of the funds will be achieved.
5) The fund offers a guaranteed maturity value, as stated at the inception of the contract.
6) All benefits payable under the policy are subject to the tax laws and other financial enactments,
as they exist from time to time.
7) Currently, the cut-off time is 4.15 p.m. For applicability of unit price of a particular day for
switches, redemptions and publication of unit price.
B) The past performance of other funds of the company is not necessarily indicative
of the future performance of this fund.

84
 6. Appendix

 Personal Details
 Questionnaire
o Part A : Perception Of People Towards Insurance
o Part B : Effectiveness Of Communication Strategy
Of Bajaj Allianze
 List Of Tables
 List Of Graphs
 Glossary

85
 Personal details

1) Name : _______________________________________________

2) Age : □ 21-35 □ 36-50 □ 51-65 □ above 66

3) Occupation :
□ Profession □ businessman □ govt. Servant
□ Employee □ others __________

4) Yearly income :
□ Less than 1 lac □ 1 to 2 lacs □ 2 to 3 lacs
□ 3 to 4 lacs □ 4 lacs or more

5) Address and phone no. : _________________________________

_________________________________
_________________________________
_________________________________
_________________________________

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 Questionnaire

Part A: perception of people towards insurance

1. Are you aware of life insurance?

□ yes □ no

2. Have you ever invested in life insurance?

□ yes □ no
If yes, through which company ____________________

3. Which of the following parameters has lead you to investment?

□ Tax benefit
□ protecting income against disability/ sickness/ illness
□ protecting your family against premature death
□ Plan for retirement
□ Wealth creation
□ Children’s education/ marriage
4. Rank the parameters you would prefer before making investment in life insurance?
□ Tax benefit □ return □ protection

5. Which type of plan would you prefer while making the investment?
□ Traditional plan □ unit linked plan □ term plan
□ Health plan □ pension plan

6. For what time frame would you prefer to invest?

□ 3-5 years □ 10-20 years □ 20 years and above

87
7. Indicate the approximate % of total investment in life insurance
□ Less than 10% □ 10-20% □ 20-40%
□ 40-60% □ 60-80% □ 80-100%

8. Indicate your preferred life insurance company

□ LIC □ ICICI Prudential □ Max New York life
□ Bajaj Allianze □ met life □ HDFC std. Life
□ Tata AIG □ reliance life insurance
□ Others _________________

88
Part B: effectiveness of communication strategy of Bajaj Allianze

1. In which plan have you invested?

_____________________________________________________

2. What made you invest in Bajaj Allianze’s plan?

□ Brand name □ services □ reference
□ Time constraint □ high returns □ product satisfaction

3. What is the main feature that has made you invest in the plan?
_____________________________________________________

4. Does the plan follow the feature that is communicated to you?

□ yes □ no
If no, why ? ___________________________________________

5. Does the plan satisfy your requirement?

□ yes □ no

6. Are you satisfied with Bajaj Allianze’s services ?

□ yes □ no
If no, why ? ___________________________________________

89
 List of tables

Serial No. Details Page No.

1. Mode of data collection 13

2. Objective of investment 16
3. Type of plan preferred (investment objective : protection) 17

4. Time frame preferred (investment objective : protection) 18

5. Percentage of total investment in life insurance (investment objective : 19

protection)
6. Type of plan preferred (investment objective : tax benefit) 20

7. Time frame preferred (investment objective : tax benefit) 22

8. Percentage of total investment in life insurance (investment objective : 23

tax benefit)
9. Type of plan preferred (investment objective : return) 24

10. Time frame preferred (investment objective : return) 25

11. Percentage of total investment in life insurance (investment objective : 26

return)
12. Preferred life insurance company 27
13. Reason for investment in Bajaj Allianze 28
14. Plan following feature 29
15. Plan satisfying requirement 30
16. Service satisfaction of Bajaj Allianze 31
17. Age distribution of respondents 32
18. Occupation distribution of respondents 33

90
 List of graphs

Serial No. Graph No. Details Page

No.
1. 1 Objective of investment 16
2. 2 Preferred plan 17
3. 3 Preferred time frame 18
4. 4 % investment in life insurance 19
5. 5 Preferred plan 20
6. 6 Preferred time frame 21
7. 7 % investment in life insurance 22
8. 8 Preferred plan 23
9. 9 Preferred time frame 24
10. 10 % investment in life insurance 25
11. 11 Preferred life insurance company 26
12. 12 Reason for investment in Bajaj Allianze 27
13. 13 Feature followed 28
14. 14 Requirement satisfied 29
15. 15 Service satisfaction 30
16. 16 Age distribution of respondents 31
17. 17 Occupation distribution of respondents 32
18. 18 Income distribution of respondents 33

Glossary
91
 Accident : the accident must be caused by violent, external and visible means and cause of the
injury or injuries solely and independently of any other means.

 Accident death benefit: benefit which provides for the payment of an additional sum in the
event of death by an accident.

 Balance funds: a fund that maintains a balanced portfolio, generally 60% bonds or preferred
stocks and 40% commons stocks.

 Beneficiary: the person or party the owner of a life insurance policy names to receive the policy
benefit.

 Claim: written request by an insured for the insurance company to cover an incurred loss,
usually submitted on the company’s standard form.

 Commission: a fee paid by the investor to a broker or the other sales agent for investment
advice and assistance.

 Death benefits:
Benefits paid in a life insurance policy or an annuity plan with life cover in the event of the life
assured passing away during the term.

 Endowment: a type of insurance policy which provides for the face amount stated in the
contract to be payable in a fixed date or on the life insured’s earlier death.

 Investment: an asset acquired for the purpose of producing income and capital gains to its
owner.

 Life assured (la): person who is assured under the plan

92
 Life cover
Life cover is the part on which the cost of insurance is charged, the cost of insurance here is the
mortality cost. Life cover at any point of time during the tenure of the policy is;
Life cover = sum assured at that point of time – value of units at that point of time.

 Mortality: the probability of disability of a life or group of lives.

 Policy face amount: this refers to the amount stated in the policy payable in the event of death
or maturity.

 Premium: this is the contribution that a policy holder makes to life insurance company to
obtain insurance cover

 Premium waiver: this refers to all premiums due after the incident of claims is waived without
any loss of benefits whatsoever unless specifically stated.

 Return: the value received annually from an investment, usually expressed as a percentage.

 Riders: additional or supplementary benefits that are bought together with a main policy on the
same life and are4 combined for the purposes of collecting one premium.

 Surrender value: the amount payable to the policyholder should the policyholder decides to
discontinue the policy.

 Underwriting.
93
 Underwriting is a process of estimation of the risk assumed under a policy. It forms the basis for
the premium charge for a given sum assured.

 Vesting age: this is the age when the rights under the policy vests with the name individual.

 Volatility: the degree to which a mutual fund’s share price the name individual.

 Vested bonuses: bonuses that have accrued over the term of the plan in a ‘with profits’ plan.

 Withdrawal: to redeem shares of a fund or stock.

7. Bibliography
94
 Books

C) David j. Luck & Rubin “marketing research” published by Tata Mac grow hill, 8th edition.

D) Kothari C.P., “research methodology” published by Tata McGraw hill, 2001 edition.

E) Product sale skit for effective sales published by Bajaj Allianze

Websites

 Www.Bajajallianze.Com
 Www.Bimaonline.Com
 Www.Irda.Com
 Www.Insuremagic.Com
 Www.Outlookmoney.Com
 Www.Economictimes.Com
http://pep.BALIC.in/induction/index.html

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