INTRODUCTION About Life Insurance

1. What is life insurance? The basic concept of Life insurance is to build a COMMON FUND from the premiums contributed by policy holders. The FUND undertakes to financially safeguard the policyholders against untimely death, loss of earning capacity, and other things like purchase of a house. It is civilizations partial solution to the problems caused by untimely death. Insurance lays the foundation of financial security against the uncertain certainty of death. 2. Why life insurance?

Provide security for family-combines risk cover and savings Plan for lifes uncertainties-Accidental permanent total/partial, disability; critical illness; hospitalization expenses. Life style maintenance-post retirement Tax benefits Encourages regular savings and protects against extravagance Peace of Mind

THE INDIAN LIFE INSURANCE INDUSTRY

Life Insurance happens to be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the countrys GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. HISTORICAL PERSPECTIVE The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the nonIndian lives as Indian lives were considered more risky for coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The General insurance business in India, on the other hand, can trace its roots to the Triton (Title) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that it would create much needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State lead planning and development.

IMPORTANT MILESTONES IN THE LIFE INSURANCE BUSINESS IN INDIA: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crore from the Government of India. Structure of Insurance Industry: 1) Historical Perspective Prior to 1956 242 companies operating 1956 - 2001 Nationalization LIC monopoly Player Government control 2) Present Structure of Insurance Industry I) a) LIC Fully owned by Government (b) Postal Life Insurance (I) (ii)

II) Private players 1. Bajaj Allianz Life Insurance Co. Ltd. 2. Birla Sun Life Insurance Co. Ltd. (BSLI) 3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD LIFE) 4. ICICI Prudential Life Insurance Co. Ltd. (ICICI PRU) 5. ING Vysya Life Insurance Co. Ltd. (ING VYSYA) 6. Max New York Life Insurance Co. Ltd. (MNYL) 7. MetLife India Insurance Co. Pvt. Ltd. (METLIFE) 8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd. 9. SBI Life Insurance Co. Ltd. (SBI LIFE) 10. TATA AIG Life Insurance Co. Ltd. (TATA AIG) 11. AMP Sanmar Assurance Co. Ltd. (AMP SANMAR) 12. Aviva Life Insurance Co. Pvt. Ltd. (AVIVA)
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13. Sahara India Life Insurance Co. Ltd. (SAHARA LIFE) 14. Shriram Sunlam III) Other likely players 1. PNB Life Insurance 2. Reliance Life Insurance 3. Axa Bharti Enterprises Contribution to Indian Economy Life Insurance is the only sector which garners long term Savings
1.

Spread of financial services in rural areas and amongst Socially less Privileged

2. Long term funds for infrastructure

3.

Strong positive correlation between Developments of Capital Markets and insurance/Pension sector

4. Employment generation

IRDA (Insurance Regulatory and Development Authority)

MISSION OF IRDA To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental there to. ROLE OF IRDA The Insurance Regulatory and Development Authority (IRDA), IRDA for short, has laid down that those who wish to become insurance agents will be given licenses only after they pass an examination prescribed by it. This course is designed for aspiring insurance agents and follows the syllabus prescribed by the IRDA. The study of this course has to be facilitated through faculty from recognized institutions, to be arranged by the insurance companies. The authority helps in consulting with the insurance advisor committee. IRDA was set up as an independent regulatory authority, which ahs not put in place regulation in line with global forms, so far in private sector, 12 life insurance companies have been registered. IRDA made some necessary parameters for becoming life advisor like person should be at least 12 pass. It provides for insurance training of 100 hours and the prospective agents should pass IRDA exam. Composition of Authority under IRDA Act, 1999 As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies.

ABOUT INSURANCE AGENCY RECUITMENTS

Definition of an Agent An agent is a person employed to do any act for another or represent another in dealing with a third person. Agency as a profession The insurance agent is bound by the terms of appointment of the insurer and is expected to procure business for the insurer. It is not a job he has to do at fixed hours. Once license and appointed, he is an independent professional. Procedure for becoming an agent 1. The insurance Act, 1938 lays down that an insurance agent must possess a license under section 42 of that Act. The license is to be issued by the IRDA. 2. A license issued by the IRDA will be valid for 3 years. No agent is allowed to work for more than one life insurer or more than one general insurer. 3. The qualifications necessary before a license can be given are that the person must o be at least 18 year old o have passed at least the 12th standard or equivalent examination, if he is to be appointed in place with a population of 5000 or more, or 10th standard otherwise o have undergone practical training for at least 100 hours in life or general insurance business o Have passed pre-recruitment examination conducted by the insurance institute of India or any other examination body recognized by the IRDA. 3. 4. a person with the following disqualifications is debarred from holding a license He has been found to be of unsound mind by a court of competent jurisdiction

5.

He has been fond guilty of criminal breach of trust, misappropriation, cheating, forgery or abetment or attempt to commit any such offence application for renewal have to made at least thirty days before the expiry of the license, along with the renewal fee of Rs.250 Prior to renewal of the license, the agent should have completed at least 25 hour practical training in life. Obtaining the license from the IRDA.

6. 7. 8.

Steps to being as an Agency 1) 2) 3) 4) Selection IRDA Training Licensing Product Training Ready For Action

ABOUT LIFE INSURANCE COMPANIES

1. Aviva Life Insurance Company:

Aviva Life Insurance Company a joint venture between Dabur India and CGU, a wholly owned subsidiary of Aviva Plc, is capitalised at Rs. 110 crore. Mr. Stuart Purdy is the managing director of Aviva Life. Aviva Life has tied up with ABN Amro, Canara Bank, Laxmi Vilas Bank and American Express for distribution of its products Aviva Plc is the largest life and general insurance group of UK and the world's seventh largest insurer with world wide premium income and retail investment sales of 28 billion and more than 200 billion in assets under management. Dabur India Limited, Established in 1884, Dabur is one of India's oldest and largest group of companies with interests in ayurvedic specialities, pharmaceuticals, personal care and healthcare products. The annual sales turnover of the group is over Rs. 1200 crores. The company is headquartered in Gurgaon. URL: www.avivaindia.com

2. Birla Sun Life Insurance Company

Birla Sun Life Insurance Company is a 74: 26 joint venture between Aditya Birla Group and Sun Life financial Services of Canada. As on 1st March 2003, the company has an equity capital of Rs. 180 crore. Birla Sun Life has Mr. Nani B Javeri as its CEO. Aditya Birla Group is India's second largest business house, with a turnover of over $4.75bn and an asset base of $3.8 bn. The Group is a well diversified conglomerate with 72,000 strong workforce spanning 40 Companies spread across 17 countries. The flagship companies of the Group - Grasim, Hindalco, Indian Rayon and Indo Gulf - hold leadership positions in their respective areas of business. Sun Life Assurance Co. of Canada, established in 1871, is licensed in Canada, the U.S., the Philippines, Hong Kong, and the U.K. Its major lines of business are life insurance, annuities and mutual funds and investment services.

URL:www.birlasunlife.com

3. HDFC Standard Life Insurance Company Limited HDFC Standard Life Insurance Company Limited was one of the first companies to be granted license by the IRDA to operate in life insurance sector. Each of the JV player is highly rated and been conferred with many awards. HDFC is rated 'AAA' by both CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and Poors. These reflect the efficiency with which HDFC and Standard Life manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively. HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000. HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life has a stake of 18.6%. HDFC Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. The corporation has had a series of share issues raising its capital to Rs. 119 crores. HDFC operates through 75 locations throughout the country with its Corporate Headquarters in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service associates in Kuwait, Oman and Qatar. Standard Life is Europe's largest mutual life assurance company. Standard Life, which has been in the life insurance business for the past 175 years, is a modern company surviving quite a few changes since selling its first policy in 1825. URL: http://www.hdfcinsurance.com 4. ICICI Prudential Life Insurance Company Limited ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The authorized capital of the company is Rs.2300 Million. The paid up capital is Rs. 1900 Million. The Company is a joint venture of ICICI (74%) and prudential plc UK (26%).

The Company was granted Certificate of Registration for carrying out Life Insurance business, by the Insurance Regulatory and Development Authority on November 24, 2000. ICICI Ltd., was established in 1955 by the World Bank, the Government of India and the Indian Industry, to promote industrial development of India by providing project and corporate finance to Indian industry. Prudential plc. Was founded in 1848. Since then it has grown to become one of the largest providers of a wide range of savings products for the individual including life insurance, pensions, annuities, unit trusts and personal banking. It has a presence in over 15 countries, and caters to the financial needs of over 10 million customers. It manages assets of over US$ 259 billion (Rupees 11, 39,600 crores approx.) as of December 31, 1999. URL: www.iciciprulife.com 5.ING Vysya Life Insurance : ING has joined hands with Vysya Bank, one of India's leading private sector banks, to form ING Vysya Life Insurance, which is expected to be the first Bankassurance venture in the country. Together they have roped in GMR group, which has wide ranging interests in fields such as power generation, infrastructure, manufacturing, software and banking. As per the JV agreement, Vysya Bank would hold 49 per cent stake, ING 26 percent, and the GMR Group would hold 25 per cent. The paid up capital of the joint venture is Rs. 110 crore. The company which is headquartered at Bangalore. Vysya Bank is one of the most aggressive of the older-generation private-sector banks. With the investment from a foreign partner, Bank Brussels Lamberts, in the equity of the bank, it is expected to gear up to effectively fight competition in the new liberalized era. Vysya Bank is a big player given its significant branch penetration. It has a very high degree of retail focus with good customer service. The Vysya Bank is one of the largest private banks in India with around 2 million customers and 480 retail outlasting Group, with an asset base of over Rs. 28,42,000 crore is a global financial institution of Dutch origin, which is active in the field of banking, insurance and asset management in more than 60 countries, with nearly 90,000 employees. ING Insurance is the worlds second largest life insurance company as per latest Fortune rankings with a client base of over 50 million

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URL : http://www.ingvysyalife.com

6) LIC LIC has been established by an act of the Parliament and started functioning from 1-9-1956. It is an autonomous body authorized to run the life insurance business in India with its Head Office at Mumbai. It has 7 zonal offices, over 100 Divisional offices and 2048 branches in India, with around 6.51 lakh agents. The Corporation also has offices in London, Fiji and Mauritius 7. Max New York Life Max New York Life is a partnership between Max India Limited, one of India's leading multi-business corporations and New York Life, a Fortune 100 company. The paid-up capital of the Joint Venture is Rs. 250 crores Max India Limited. Starting early 1999, Max has refocused itself into building a company based on the knowledge platform that India represents. Today, Max is building businesses in the emerging knowledgebased areas of Healthcare, Financial Services and Information Technology. It has grown independently on its own and by joining hands in partnerships with major international companies where specific business opportunities are best addressed through joint ventures. Max India has a significant presence in the most vital & fast growing sectors of the Indian Economy, Telecommunication services, Electronic components distribution, Specialty Plastic Films and Bulk Pharmaceuticals. These diversified businesses are organized as Max India's 100% owned Business Units (BU) and equity sharing Joint Ventures (JV). In 1998 New York Life International Inc., a Fortune 100 company, had total revenues amounting to almost US $ 20 billion, and was rated the number one provider of new life insurance policies in the United States. URL: http://www.maxnewyorklife.com/

8. MetLife India Insurance Company Private Limited ("MetLife India")

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MetLife India Insurance Company Private Limited is the Indian affiliate of Metropolitan Life Insurance Company ("MetLife"), the number one life insurer in the U.S, based on approximately US$ 2.4 trillion in life insurance in-force as of December 31, 2002. MetLife India was incorporated in April 2001 as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife India is headquartered in Bangalore and has offices in 9 cities and an additional 1,000 outreach points through its distribution channel partners. Metropolitan Life Insurance Company ("MetLife"), a subsidiary of MetLife, Inc. (NYSE: MET), is a leading provider of insurance and other financial services to individual and institutional customers. The MetLife Companies serve approximately 12 million individuals in the U.S. and companies and institutions with 33 million employees and members, including 88 of the Fortune 100 companies. MetLife also has, through its subsidiaries and affiliates, international insurance operations in 12 countries. URL : http://www.metlifeindia.com/ 9. OM Kotak Mahindra Life Insurance : The joint venture OM Kotak Mahindra Life Insurance started off with an initial net worth of Rs. 150 crore, with 74:26 stake between KMBL and OM Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the Kotak Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited on November 2, 1985 Old Mutual plc. is a leading financial services provider in the world, providing a broad range of financial services in the area of insurance, asset management and banking. It is a leading life insurer in South Africa, with more than 30% market share. The partnership with Old Mutual plc., provides the Kotak Mahindra group with an international perspective and expertise in the life insurance business. URL : www.omkotakmahindra.com 10. SBI Life India's largest bank SBI and Cardiff S.A a leading insurer in France came together to form SBI Life. It would be a 74:26 venture; with Cardif the foreign partner contributing 26% in the paid capital of Rs. 250 crore.

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SBI would market the insurance products through select branches of SBI and its seven associate banks. State Bank of India (SBI) started its business way back in 1806 as Bank of Bengal. Today SBI is the largest bank in the country with more than 9000 branches. It has seven associate banks and together they have 30% of the Indian market share. It has the distinction of being the strongest and amongst the most profitable bank in the country. Networth of SBI as on March 2000 stood at Rs. 12146 crore (US$ 2784 mn) and it has a deposit base of Rs 19,680.3 crore (US$45,121mm) BNP Paribas, which is one among the three largest banks in Europe, is the holding company of Cardif. BNP's presence in India dates as far back as 1860 and has 9 branches here. Cardif, the insurance arm of BNP Paribas was set up in 1973 that specializes in long-term savings, protection products and creditor insurance Cardiff based in France, has the expertise for selling insurance products through banks and has operations in over 20 countries. URL : http://www.sbilife.co.in/ 11. Tata AIG Life Insurance Co. Ltd. Tata AIG Life Insurance Co. Ltd is capitalised at Rs. 185 crores of which 74 per cent has been brought in by Tata Sons and the American partner brings in the balance 26 per cent. Tata Enterprises with 82 companies, spread over seven sectors and with an annual turnover exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has shown over years that it is a value driven company and has pioneering contributions in various fields including insurance, aviation, iron and steel. Tata companies have forged a number of global alliances with eminent international partners in several fields. In terms of capital market performance as many as 40 listed Tata companies account for nearly 5% of the total market capitalization of all listed companies. TATA Group in Insurance The Late Sir Dorab Tata, was the founder Chairman of New India Assurance Co. Ltd., a group company incorporated way back in 1919. Government of India took over the management of this company as a part of nationalization of general insurance companies in 1972.

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American International Group, Inc is the leading U.S. based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write a wide range of commercial and personal insurance products through a variety of distribution channels in over 130 countries and jurisdictions throughout the world. URL: www.tata-aig.com

ABOUT BAJAJ ALLIANZ LIFE INSURANCE COMPANY

Company Profile Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates. Allianz AG is one of the leading global insurance companies headquartered in Munich, Germany Established in 1890, more than 110 years of experience in insurance and Bajaj Auto , one of the Largest 2 & 3 wheeler manufacturer in India. Bajaj group, a Rs. 8000 crore group, a household name in India with a strong brand image and brand loyalty Bajaj Group is synonymous with quality and customer focus. Bajaj Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) No. 116 on 3rd August 2001 to conduct Life Insurance business in India. Key Achievements in FY 2006-07 : Bajaj Allianz Have sold over 40,00,000 policies to satisfied customers A network of the Bajaj Allianz 876 offices spanning the country Shareholder capital base of Rs 700 cr. Accelerated Growth of Bajaj Allianz sold policy and new business in fiscal year

Fiscal Year 2001-2002 2002-2003

No. Of Policy Sold In FY 21,376 1,15,965

New Business In FY (Rs. In Cr.) 7 69

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2003-2004 2004-2005 2005-2006 2006-2007

1,84,443 2,88,189 7,81685 20,79,217

180 857 2717 4270

BANCASSURANCE The company has a strategy for Bancassurance. There are two of the tie-ups are: 1. Standard Chartered Bank 2. Syndicate Bank

PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE COMPANY:

Group Insurance
1.

NEW GROUP SUPERANNUATION SCHEME Assure your Employees a financially secured, stable and independent post retirement life. Group Superannuation Scheme will be established under an irrevocable trust, with trustees appointed by Company taking care of the administration.

2.

GROUP CREDIT SHIELD Available for Employer- Employee Groups and Non EmployerEmployee Groups. This scheme insures the loan amount outstanding in the account in case of premature death or disability.

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3.

GROUP TERM LIFE Available for Employer- Employee Groups and Non EmployerEmployee Groups. This scheme covers the members of an organization against the risk of premature death or disability.

4.

GROUP TERM LIFE in lieu of EDLI (Employees Deposit Linked Insurance Scheme). This scheme is a better alternative to the Employees Deposit Linked Insurance Scheme, 1976, under Sec 17 (2) of the Employees Provident Fund and Miscellaneous Provisions Act.

5.

NEW GROUP GRATUITY CARE Giving your Employees and their families the reassurance of your care and heartening financial security. Group Gratuity

Care is a Multi Featured Employee Welfare Scheme, which addresses your Gratuity liability with flexibility like never before.

Individual Insurance
1.

Protector A Mortgage Reducing Term Insurance Plan. This is the perfect plan to protect the family from the repayment liability of outstanding loans, in the unfortunate case of death of the loanee. There is also an option to cover the co- applicant of the loan at a very nominal cost under this plan.

2.

Cash Gain Money Back Plan. This is the only money back plan that offers quadruple protection, going up to 4 times the basic sum assured, and a family income benefit.

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3.

Swarna Vishranti Retirement Plan. In addition to life insurance and attractive tax benefits, this plan enables you to make adequate provisions for your years after retirement as well.

4.

InvestGain an Endowment Plan. This savings plan combines high protection (up to quadruple cover) with a unique family income benefit.

5. Term Plan with Return-of-Premium An economic way of providing life cover, this plan also ensures the return of all premiums at the time of maturity.
6.

Lifetime Care Whole Life Plan. This whole life plan provides survival benefits at the age of 80 thereby making sure you are financially secure at the time when you need it the most.

7.

Key man Insurance A Promising Business Opportunity. Keyman Insurance provides you with the unique opportunity to protect your business against the unfortunate loss of key people, while giving you valuable tax advantage and a lovely tool to help employee loyalty too.

8.

New Unit Gain Plus The thumb rule for buying insurance is that your insurance needs are minimal in your early earning years, increase with added

17

responsibilities (Marriage, children, loans etc.) and taper off by the time you retire. It is difficult to find a single insurance plan that can take care of all your changing requirements in life additional protection, more money to invest, sudden requirement of cash or a steady post-retirement income. Additional Riders Benefit For Unit Linked Product - Bajaj Allianz Additional Benefits Additional protection for you and your family available with UnitGain Plus.

9. New UnitGain Easy Pension Plus. Unit Linked Retirement Plan without life cover Bajaj Allianz New UnitGain Easy Pension Plus, is a plan that helps you take control of your future and ensure a retirement you can look forward to. This is a regular premium investment linked deferred annuity policy. Available as: New UnitGain Easy Pension Regular Premium & New UnitGain Easy Pension Single Premium. 10. Swarna Raksha I A fixed annuity for life will be payable, and on death of the annuitant, the nominee will be entitled to receive an amount that is equal to the lumpsum used to purchase the annuity. 11. MahilaGain Rider The unique plan that takes care of you and your loved ones and provides benefits like Critical Illness Benefit Reconstructive Surgery Benefit for Breast(s) due to Breast Cancer Congenital Disability Benefit Complications of Pregnancy Benefit
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12. HealthCare This is a three-year health insurance plan, providing comprehensive health cover with life insurance benefit. You can choose the amount of cover for each benefit separately in multiples of the minimum cover amount, subject to a maximum multiple. 13. New UnitGain Premier SP Upfront Allocation of 105% of single premium on day 1 Flexi maturity after 6years 14. New UnitGain Super High Allocation Guaranteed life cover 15. New FamilyGain The only Unitlinked insurance plan with ethical equity fund. Suits religious investment guidelines as well. 16. Savecare Economy SP An ideal plan for a one-time lump sum investment that provides for savings with high risk-cover. An investment that provides financial security and liquidity. An ideal plan for a one-time lump sum investment that provides for savings with high risk-cover. This Single Premium investment plan for 10 years. 17. New UnitGain Plus SP - participates in the profits of the company. 18. UnitGain Guarantee SP

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 High Allocation Full or partial withdrawals are allowed anytime after 3 years. 19. UnitGain Guarantee SP High Allocation Full or partial withdrawals are allowed anytime after 3 years. 20. New Risk Care "Insure your Today with us to Ensure your family Smiles Tomorrow." A non-participating traditional Term Assurance plan. Higher insurance coverage at Low premium. Regular/Single Premium payment options. Insurance for NRIs 1. InvestGain - Our 'With Profits Endowment Plan'. 2. CashGain - Our 'With Profits Money Back Plan'. 3. ChildGain - Our 'With Profits Money Back Plan' for children. 4. Lifetime Care - Our 'With Profits Whole of Life Plan'. 5. Swarna Vishranti - Our 'With Profits Differed Annuity Plan'. 6. UnitGain - Our 'Unit Linked Whole of Life Plan'.

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Investment Avenues in Bajaj Allianz Life Insurance Company:

21

F e Dp s ix d e o its 5 % Eu q ity 1 %

1 a n % Mtu l fu d u

C rp ra o o te Bn s od 3% 5 5% 8 Gv o In ia ot f d S c ritie eu s

Corporate Bonds Corporate issue paper mainly through private placement route Banks, Insurance Companies, Mutual funds are main holders of this paper Rating of the corporate determines the yield
22

In Indian Market only AA or above corporate bond are traded Credit Spread - For AAA corporate bonds the yield is currently about 0.9% higher than government bond of same maturity. For AA+ the credit spread is about 1.1% and AA the spread is around 1.3%

Government Securities

RBI auctions Government of India and State Government Bonds on a regular basis in the market Broad Auction plan is announced 2 twice a year Banks, Primary Dealers, Insurance Companies are main holders of this paper Yield on Government paper o 1 year 5.2% o 10 year - 6.6% o 20 year -7.3%

Equity Small portion of policyholders funds invested in equity Shall increase the share as we mature up to 10% Purchase both in secondary market and in public issues

Unit Linked funds Equity Passive Equity Active Balanced Debt Cash

Unit Linked funds

Rs million Cash Fund Debt Fund Equity Active Equity Index Total

Unit Gain Unit Gain Total Plus 102 38 140 314 36 351 66 105 171 576 32 608 1058 212 1270
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CHAPTER 2: RESEARCH METHODOLOGY

Please find below the details of the research objectives and methodology obtained in this study Research Objectives: The key objectives of the study are
1.

To check the importance of various benefits of agency by insurance industry in bardoli city.

provided

2.

3.

To measure perceptions with respect to insurance agency in bardoli city. To assess the awareness level regarding various life insurance companies in bardoli city. To check to what extent agents agree with Bajaj Allianz agency features in bardoli city. To devise important guidelines that can useful to insurance companies.

4.

5.

Design / Methodology / Approach: Research Design: The research design is Descriptive. A descriptive research design tries to discover answers to the questions who, what, when, where, and, sometimes, how. The researcher attempts to describe or define a subject, often by creating a profile of a group of problems, people, or events.
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Descriptive investigations have a broad appeal to the administrator and policy analyst for plan in, monitoring, and evaluating. In this context, how questions address issues such as quantity, cost, efficiency, effectiveness, and adequacy. This is carried out using quantitative survey of 150 target audience members in Bardoli city. Each respondent is personally contacted to fill up the questionnaire. In this method, regarding sampling design, nonprobability sampling method was selected. The research design is descriptive because descriptive research provides data about who, what, when, where and how of a situation, not what caused it. It provides the number of times something the average number of occurrences or central tendencies. Type of Data Used: 1. Primary Data: This data was collected through questionnaire from target audience members in and around bardoli city 2. Secondary Data: Data was collected through secondary sources like Internet, Books on Insurance and Business Research Book Sampling Plan 1. Sample Unit: Sample Unit includes students, businessperson, and employees of government and private sectors. 2. Sample Size: Sample Size selected was 150, which was a very feasible figure looking into time constraints. 3. Sampling Procedure: In this method, regarding sampling design, non -probability sampling design has been selected. Further, convenience sampling method was selected. Method of Data Collection: 1. Field area: The area for survey was Bardoli city. 2. Contact method:
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Contact method for survey was face-to-face personal interview. Duration of data collection: From 15th June 2007 to 15th July 2007 Data Analysis: One sample T-test is the statistic test, which is used to test the difference between sample statistic and a hypothesized population parameter. It is used when the type of data are interval in nature. Chi-square test has been used to provide the method fro testing the association between the dependent and independent variables. Data Analysis has been done using SPSS Software for doing T-test and Chi-square test. Research Limitations: The following are the limitations of this study. 1. Since the sampling method used was convenience sampling due to time and cost constraint, the result cannot be generalized to the population. 2. The target audience members may misunderstand some of the questions and there by give wrong responses. 3. Many of the target audience members had very little knowledge about insurance sector. Therefore, their comments on the insurance sector may be negatively biased.

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CHAPTER 3: DATA PRESENTATION & ANALYSIS

1) Awareness of Life Insurance companies. Purpose of this question: To know the awareness level about the Insurance companies Frequency 137 13 150 Percen t 91.3 8.7 100.0

yes no Total

Awareness Level of Insurance Firm

9 %

Ys e N o

9% 1

In the study it was found out that the awareness level of insurance firm is highest 91 % are aware with life insurance companies.
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2) If you want to work as an insurance advisor which of the following Life Insurance Company you will prefer most. Purpose of this question: To know which life insurance company are prefer most as an insurance advisor in target audience. Company LIC Bajaj Allianz ICICI Produncial Birla Sun Life Reliance other Total Frequenc y 69 32 17 14 11 7 150 Percent 46.0 21.3 11.3 9.3 7.3 4.7 100.0

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Oe 7 th r,

Ms P fe C ma y o t re r o p n

Rlia c , e ne B Sn irla u L, ife IC I IC P d n ia ro u c l,

1 1 L IC 1 4 L, IC 6 9 B ja A n a j llia z IC I P d n ia IC ro u c l B S nL irla u ife Rlia c e ne

1 7
B ja A n , a j llia z

Oe th r
3 2

In study it was found out that LIC is having highest level of top of mind awareness followed by Bajaj Allianz (21%), ICICI Produncial (11%), Birla sun life (9%), Reliance (7%) and other life insurance company (4%).

3) Which Occupation is consider most important for being an Insurance Advisor.

Occupation Profession Housewife Student Other Total

Frequency 71 10 31 8 150

Percent 47.3 20.0 6.7 20.7 5.3 100.0

Businessman 30

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In the study it was found out that Profession (47%) is highest consider followed by student (21%), Businessman (20%), House wife (7%) and other (5%) Occupation are consider most important for being an Insurance Advisor

4)

How did came to you know about Life Insurance Company Purpose of this question: To know which type of Media uses to know about the Life Insurance Companies. Media TV Internet Magazine Hoardings News Paper Other Total Frequency 67 28 17 9 17 12 150 Percent 44.7 18.7 11.3 6.0 11.3 8.0 100.0

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Frequency

News Paper 11% Hoardings 6% Magazine 11%

Other 8% TV 45%

TV Internet Magazine Hoardings News Paper Other

Internet 19%

From the figure, we can see that the main sources of awareness for life insurance company TV (45%), Internet (19%), Magazine (11%), Newspaper (11%), and Hoarding (6%), other (8%).

5)

Do you know that Insurance provide extra earning opportunity by working Part time. Purpose of this question: To know Insurance can be provide an extra earning opportunity by working as part time Frequenc y 136 14 150 Percen t 90.7 9.3 100.0

Yes No Total

31

No 9%

Yes No

Yes 91%

In the study, it was found out 90% of the sample knows insurance provide extra earning opportunity by working part time.

6)

The basic factor that you consider most important for being an Insurance Advisor Purpose of this question: To know the basic factor are consider as an insurance advisor in target audience. Factor Brand Name Commission Rate Social Service Other Frequency 75 30 38 7 Percent 50.0 20.0 25.3 4.7
32

Total

150

100.0

F c rC n id rA A In u n ea v o a to o s e s n s ra c d is r

S c l S rv e o ia e ic 2% 5

Oe th r 5 % B n Nm ra d a e 5% 0 B n Nm ra d a e Cm is io Rte o ms n a S c l S rv e o ia e ic Oe th r

Cm is io o ms n Rte a 2% 0

In the study, it was found out Brand name (50%), Commission rate(20%),Social service (25%), and other(5%) of the sample are consider to as an insurance advisor.

7)

The factors which are demotivate for being an Insurance advisor Purpose of this question: To know which factor are demotive for being an insurance advisor. Frequenc y 61 29

Factor Examination Fees of examination

Percent 40.7 19.3

33

Job not preferred Other Total

35 25 150

23.3 16.7 100.0

Demotivate Factor As An Insurance Advisor

Other 17% J ob not preferred 23%

Exami nati on 41%

Examinati on Fees of examinati on J ob not preferred Other

Fees of examinati on 19%

In the study, it was found out demotivate factor for insurance advisor examination (41%), fees of examination (19%), job not prefer (23%) and other (16%)

1)

Cross tabulation - Consider Factor as an Insurance versus Education

Advisor

Null Hypothesis (H0) = there is no significant association between the two Variables of Consider Factor as an Insurance Advisor and Education. Alternative Hypothesis (H1) = there is significant association between the Two Variables. Education Total
34

Under Gradua Gradu te ate Consider Factor as an Insurance Advisor Brand Name Count 26 % within Education Count % within Education Count % within Education Count % within Education Count % within Education 26

Post Gradua te 23 75

74.3% 3 8.6% 5 14.3% 1 2.9% 35 100.0 %

37.1% 21 30.0% 19 27.1% 4 5.7% 70 100.0 %

51.1% 6 13.3% 14 31.1% 2 4.4% 45 100.0 %

50.0% 30 20.0% 38 25.3% 7 4.7% 150 100.0 %

Commission Rate Social Service Other Total

Chi-Square Tests Value Pearson ChiSquare Symmetric Measures Value Nominal by Contingency Nominal Coefficient N of Valid Cases .311 150 Approx. Sig. .014 16.024(a) df 6 Asymp. Sig. (2-sided) .014

The significance value is 0.014 Here null hypothesis is accept and reject the alternative hypothesis. So, there is no significant association between two variables INFERENCE:
35

From the table, we can see that the target audience members in the education under graduate have been highest refer a brand name as an insurance advisor under graduate (74%), graduate (37%) and post Graduate (23%) and commission rate graduate (30%) and social service graduate(27%) Explanation of Pearsons Chi-square: The Chi-square test is carried out at 95% confidence level (0.05 significance level). The Pearson Chi-square value comes out as 0.014 which is less than the significance level of 0.05, it means there is a no significant association between Consider Factor as an Insurance Advisor and Education. . Explanation of Contingency Co-efficient: The contingency co-efficient measures the strength of the output. If the value is close to 0, there is no strong correlation between two variables, if the value ranges between 0.5 and 1, there exist a strong correlation. Here, we can conclude that there is no strong correlation between Consider Factor as an Insurance Advisor and Education. Because the value of contingency co-efficient is 0.311

2) Cross tabulation Media versus Age Group Null Hypothesis (H0) = there is no significant association between the two Variables of media and age group. Alternative Hypothesis (H1) = there is significant association between the Two Variables. Age Group Total
36

18-24 Medi a TV Count 31 % within Age Group Intern Count et % within Age Group Maga Count zine % within Age Group Hoard Count ings % within Age Group News Count Paper % within Age Group Other Count % within Age Group Count % within Age Group

25-31 35

32-38 1

39-45 0

45 Above 18-24 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 1 100.0 % 1 100.0 % 67 44.7% 28 18.7% 17 11.3% 9 6.0% 17 11.3% 12 8.0% 150 100.0 %

41.9% 50.7% 25.0% .0% 17 9 2 0

23.0% 13.0% 50.0% .0% 8 9 0 0 .0% 0 .0% 2 100.0 % 0 .0% 2 100.0 %

10.8% 13.0% .0% 4 5.4% 7 9.5% 7 9.5% 74 100.0 % 5 7.2% 7 0 .0% 1

10.1% 25.0% 4 5.8% 69 100.0 % 0 .0% 4 100.0 %

Total

Chi-Square Tests Asymp. Sig. (2sided) .019 Approx. Sig. .019

37

Value Pearson Chi-Square 35.217(a)

df 20 Value

Symmetric Measures

Nominal by

Contingency

.436

Nominal Coefficient N of Valid Cases

150

The significance value is 0.019 Here null hypothesis is accept and reject the alternative hypothesis. So, there is no significant association between two variables. INFERENCE: From the table, we can see that the target audience members in the media slab age group 25-31 year has been refer a TV(51%) ,magazine(13%) and hoarding (7%) as a media ,18-25 year has refer internet(23%) ,39-45 year has refer newspaper(100%) as an media. Explanation of Pearsons Chi-square: The Chi-square test is carried out at 95% confidence level (0.05 significance level). The Pearson Chi-square value comes out as 0.019 which is less than the significance level of 0.05, it means there is a no significant association between media and age group. Explanation of Contingency Co-efficient: The contingency co-efficient measures the strength of the output. If the value is close to 0, there is no strong correlation between two variables, if the value ranges between 0.5 and 1, there exist a strong correlation. Here, we can conclude that there is no strong correlation between media and age group. Because the value of contingency co-efficient is 0.436 3) Cross tabulation: Life Insurance Awareness versus Education Null Hypothesis (H0) = there is no significant association between the two Variables of awareness of life insurance and education. Alternative Hypothesis (H1) = there is significant association between the Two Variables.

Education

Total

38

Life Insurance Awarenes s

yes no

Total

Count % within Education Count % within Education Count % within Education

Under Gradua te 31 88.6% 4 11.4% 35

Post Gradua Gradua te te 66 40 94.3% 4 5.7% 88.9% 5 11.1% 45

137 91.3% 13 8.7%

70 100.0 100.0% %

150 100.0 100.0% %

Chi-Square Tests Value Pearson Chi-Square 1.448(a) df 2 Asymp. Sig. (2-sided) .485

Symmetric Measures Value Nominal by Contingency Nominal Coefficient N of Valid Cases .098 150 Approx. Sig. .485

The significance value is 0.485 Here null hypothesis is reject and accept the alternative hypothesis. So, there is significant association between two variables INFERENCE: From the table, we can see that the target audience members in the graduate category have the highest awareness level of life insurance (94%) followed by post graduate (89%) and undergraduate (87%). Explanation of Pearsons Chi-square: The Chi-square test is carried out at 95% confidence level (0.05 significance level). The Pearson Chi-square value comes out as 0.485 which is more than the significance level of 0.05, it means there is a significant association between variable awareness of life insurance and
39

education. . Explanation of Contingency Co-efficient: The contingency co-efficient measures the strength of the output. If the value is close to 0, there is no strong correlation between two variables, if the value ranges between 0.5 and 1, there exist a strong correlation. Here, we can conclude that there is a strong correlation between media and age group. Because the value of contingency co-efficient is 0.098

4)

Cross tabulation: Preference for Life insurance Companies versus Occupation

Null Hypothesis (H0) = there is no significant association between the two Variables of awareness of life insurance and education. Alternative Hypothesis (H1) = there is significant association between the Two Variables.

40

Occupation Profes sion Pref LIC eren ce for LIC Bajaj Allianz ICICI Produnci al Birla Sun Life Reliance other Total Count 38 % within Occupation Count % within Occupation Count % within Occupation Count % within Occupation Count % within Occupation Count % within Occupation Count % within Occupation 11 5 13 41.9 % 7 22.6 % 4 12.9 % 3 2 25.0 % 4 50.0 % 1 12.5 % 0 .0% 1 12.5 % 0 .0% Busines sman House Stude wife nt Other

Total

69 46.0 % 32 21.3 % 17 11.3 % 14 9.3% 11 7.3% 7 4.7%

53.5% 36.7% 10 9

50.0% 2 20.0% 2

14.1% 30.0% 8 2

11.3% 6.7% 4 5.6% 6 8.5% 5 7.0% 71 100.0 % 6 20.0% 1 3.3% 1 3.3% 30 100.0%

20.0% 1

10.0% 9.7% 0 .0% 0 .0% 10 100.0 % 3 9.7% 1 3.2%

31 8 150 100.0 100.0 100.0 % % %

Chi-Square Tests Value Pearson Chi-Square 19.025(a) df 20 Asymp. Sig. (2-sided) .520

Symmetric Measures
41

The significance value is 0. 520 Here null 150 hypothesis is reject and accept the alternative hypothesis. So, there is significant association between two variables INFERENCE: Nominal by Contingency Nominal Coefficient N of Valid Cases .335 .520 From the table , we can see that the target audience members in the under graduate category have the highest preference of LIC(66%), graduate category have the highest preference ICICI produncial (18%) and birla sun life (12%) and post graduate category have the highest preference bajaj Allianz (25%) and reliance(7%). Explanation of Pearsons Chi-square: The Chi-square test is carried out at 95% confidence level (0.05 significance level). The Pearson Chi-square value comes out as 0.520 which is more than the significance level of 0.05; it means there is a significant association between variable Preference for Life insurance Companies and Occupation. Explanation of Contingency Co-efficient: The contingency co-efficient measures the strength of the output. If the value is close to 0, there is no strong correlation between two variables, if the value ranges between 0.5 and 1, there exist a strong correlation. Here, we can conclude that there is a strong correlation between media and age group. Because the value of contingency co-efficient is 0.335
5)

Value

Approx. Sig.

Cross tabulation: Demotivate Factor for Insurance Advisor versus Occupation

Null Hypothesis (H0) = there is no significant association between the two Variables demotivate as insurance advisor and occupation. Alternative Hypothesis (H1) = there is significant association between the Two Variables.
42

Occupation Profess Business House ion man wife Demoti Examination vate Factor For Insuran ce Advisor Fees of examination Job not preferred Other Total Count 29 12 5

Total Stude nt Other

12

61

% within Occupation Count % within Occupation Count % within Occupation Count % within Occupation Count % within Occupation

40.8% 11 15.5% 18 25.4% 13 18.3% 71 100.0 %

40.0% 11 22.7% 3 10.0% 4 13.3% 30 100.0%

50.0% 1 10.0% 2 20.0% 2 20.0% 10 100.0 %

38.7% 37.5% 40.7% 5 1 29

30.1% 12.5% 19.3% 10 2 35

32.3% 25.0% 23.3% 4 31 100.0 % 2 8 100.0 % 25 150 100.0 % 12.9% 25.0% 16.7%

Chi-Square Tests Value df 10.783(a 1 ) 2 Asymp. Sig. (2sided) .548

Pearson ChiSquare Symmetric Measures

Value Nominal by Contingency Nominal Coefficient N of Valid Cases .259 150

Approx. Sig. .548

43

The significance value is 0. 548 Here null hypothesis is reject and accept the alternative hypothesis. So, there is significant association between two variables. INFERENCE: From the table, we can see that the target audience members in the occupation House wife are demotivate factor is examination (50%), student have demotivate factor is fees of examination (30%) followed by student is job is not preferred (32%) and other (18%) in profession Explanation of Pearsons Chi-square: The Chi-square test is carried out at 95% confidence level (0.05 significance level). The Pearson Chi-square value comes out as 0.548 which is more than the significance level of 0.05, it means there is a significant association between variable are demotivate as insurance advisor and occupation. Explanation of Contingency Co-efficient: The contingency co-efficient measures the strength of the output. If the value is close to 0, there is no strong correlation between two variables, if the value ranges between 0.5 and 1, there exist a strong correlation. Here, we can conclude that there is a strong correlation between demotivate as insurance advisor and occupation.. Because the value of contingency co-efficient is 0.259

Perception of Relative Comparison Features of Life Insurance Companies with Bajaj Allianz Life Insurance According To Respondents.
Features Insurance Company (Mean) Bajaj Allianz (Mean)

44

extra income 3.29 Flexibility 3.76

.

3.81 3.7 3.71 3.68 3.71

Promotional Scheme 3.72 High Growth 3.52 Insurance Plan 3.79

3 .9

3 .8

3 .7

3 .6

3 .5

Inu n eC ma ie s ra c o p n s B ja A n a j llia z

3 .4

3 .3

3 .2

3 .1 3

E tra x In o e cm

F x ility le ib

P mtio a ro o n l Sh m ce e

Hh ig Gw ro th

Inu n e s ra c Pn la

In the study it was found out extra income opportunity of insurance company (3.29) in Bajaj Allianz (3.81) is important followed by flexibility in working hour of insurance companies (3.76) in Bajaj Allianz (3.7), promotional offer insurance companies (3.72) in Bajaj Allianz (3.71), high growth potential in insurance companies (3.52) in Bajaj Allianz (3.68) and wide range of well designed insurance plans in insurance companies (3.79) and in Bajaj Allianz (3.71) Relative Beliefs of Respondents With Respect To Bajaj Allianz
1)

Bajaj Allianz Life Insurance Agency Gives You Good Extra Income Earning Opportunity. Null Hypothesis (H0) = there is no significant difference between calculated mean and hypothesis mean. So, Target audience
45

.651

members agree that Bajaj Allianz agency provides extra earning opportunity. Alternative Hypothesis (H1) = there is significant difference between calculated mean and hypothesis mean. One-Sample Statistics Std. Deviation .878 Std. Error Mean .072

Statistics BALIC offer Income earning opportunity

N 150

Mean 3.81

One-Sample Test Test Value = 4 t Lower BALIC offer Income earning opportunity -2.605 df Upper 149 .010 Sig. (2tailed) Mean 95% Confidence Differen Interval of the ce Difference Upper Lower -.187 -.33 -.05

.651

At 95% confidence level, the significance value is 0.010 Here null hypothesis is rejected and accept the alternative hypothesis. It means target audience members are agree with Bajaj Allianz regarding extra earning opportunity. 2) Bajaj Allianz Life Insurance Co. Ltd agency offers flexibility in working hours Null Hypothesis (H0) = there is no significant difference between calculated mean and hypothesis mean. So, Target audience members are neutral that Bajaj Allianz agency provides flexibility in working hours.

46

Alternative Hypothesis (H1) = there is significant difference between calculated mean and hypothesis mean. One-Sample Statistics Std. Deviation .730 Std. Error Mean .060

N BALIC offer Flexible working hours 150

Mean 3.70

One-Sample Test Test Value = 4 t Lower BALIC offer Flexible working hours -5.030 df Upper 149 Sig. (2tailed) Lower .000 Mean 95% Confidence Differen Interval of the ce Difference Upper -.300 Lower -.42 Upper -.18

At 95% confidence level, the significance value is 0.000 Here null hypothesis is rejected and accept the alternative hypothesis. It means target audience members are agree about Bajaj Allianz agency provides flexibility in working hours

3)

Bajaj Allianz Life Insurance agency offers various

47

promotional

schemes benefits to agent

Null Hypothesis (H0) = there is no significant difference between calculated mean and hypothesis. So, Target audience members are neutral that Bajaj Allianz agency provides various promotional schemes to agent. Alternative Hypothesis (H1) = there is significant difference between calculated mean and hypothesis.

One-Sample Statistics Std. Deviation .763 Std. Error Mean .062

N BALIC Promotional scheme to agent 150

Mean 3.71

One-Sample Test Test Value = 3 t Lower BALIC Promotional scheme to agent 11.455 df Upper 149 Sig. (2tailed) Lower .000 Mean 95% Confidence Differen Interval of the ce Difference Upper .713 Lower .59 Upper .84

At 95% confidence level, the significance value is 0.000 Here null hypothesis is rejected and accept the alternative hypothesis. It means target audience members are more than neutral with Bajaj Allianz with respect to various promotional schemes to agent.

48

4)

Bajaj Allianz Life Insurance Co. Ltd agency offers High Growth Potential Null Hypothesis (H0) = there is no significant difference between calculated mean and hypothesis mean. So, Target audience members are neutral that Bajaj Allianz agency provides high growth potential. Alternative Hypothesis (H1) = there is significant difference between calculated mean and hypothesis mean. One-Sample Statistics Std. Deviation .780 Std. Error Mean .064

N BALIC High growth potential 150

Mean 3.68

One-Sample Test Test Value = 3 t Lower BALIC High growth potential 10.678 df Upper 149 Sig. (2tailed) Lower .000 Mean 95% Confidence Differen Interval of the ce Difference Upper .680 Lower .55 Upper .81

At 95% confidence level, the significance value is 0.000 Here null hypothesis is rejected and accept the alternative hypothesis. It means target audience members are more than neutral with Bajaj Allianz with respected to high growth potential.

49

5)

Life Insurance agency offers a wide range of well designed Insurance plans.

Null Hypothesis (H0) = there is no significant difference between calculated mean and hypothesis mean. So, Target audience members are neutral Bajaj Allianz agency provides a wide range of welldesigned plans which are helpful to agent in this business. Alternative Hypothesis (H1) = there is significant difference between calculated mean and hypothesis mean. One-Sample Statistics Std. Deviation .729 Std. Error Mean .059

N BALIC Well designed insurance plans 150

Mean 3.71

One-Sample Test Test Value = 3 t Lower BALIC Well designed insurance plans 11.879 df Upper 149 .000 .707 Sig. (2tailed) Mean 95% Confidence Differen Interval of the ce Difference Lower .59 Upper .82

At 95% confidence level, the significance value is 0.000 Here null hypothesis is rejected and accept the alternative hypothesis. It means target audience members are more than neutral with Bajaj Allianz with respect to a wide range of well designed plans.

50

CHAPTER 4: FINDING
Such key findings are as follow: 1. According to the study, LIC is having highest level of brand awareness followed by Bajaj Allianz and ICICI Prudential. 2. The major sources of awareness for Bajaj Allianz Life Insurance Co. Ltd. are TV and Internet is other like magazine and newspaper. 3. Around 91% target audience members are known that insurance provides extra earning opportunity through part time work. 4. Around 92% target audience members are awareness about the insurance firm.
5.

In the study it was seen that flexibility in working hours has highest relative importance followed by range of plans, high growth rate, and extra income earning opportunity, various promotional schemes .In The study with respect to Bajaj Allianz Life Insurance the target audience members are neutral or more than neutral with respect to flexibility in working and wide range of well designed plans. In the study respect to Bajaj Allianz Life Insurance, the target members are neutral with respect to the extra income earning opportunity, and various promotional scheme

6.

7. In the study it was seen 50 % audience prefer a Brand Name as an insurance advisor. 8. 90% of the sample knows insurance provide extra earning opportunity by working part time. 10. The basic factor Brand Name is considered as an insurance advisor in target audience and the factor Examination of Insurance advisor are demotivate for being an insurance advisor

51

CHAPTRE 5: RECOMMENDATIONS
The recommendations are made on the basis of the question, which were asked to the respondence to know how much they are aware of life insurance .these recommendations are based on my findings.
1.

Bajaj Allianz life insurance company members are neutral with earning opportunity. So, provide better facility for there highest satisfaction. The member are not aware with bajaj allianz so, the first opportunity is aware to the members as compare to the LIC members To provide various promotional schemes to the members of bajaj allianz.

2.

3.

4. In education graduate members are consider a commission rate as an insurance advisor.

5.

In 25-31 age groups are more prefer a TV as a media and TV is a major source of aware bajaj allianz life insurance Company. In education graduation member is highest awareness in the life insurance and he was preferred a commission rate.

6.

52

CONCLUSION
In the Conclusion, I would like to say that I have successfully completed 2 months of Agency Recruitments dynamics in bardoli city in bajaj allianz Life insurance co. ltd. I have also found that most of the People in the market are confused for bajaj allianz life insurance or to invest their money in any other Investment Schemes. In the market I have observed that people are required to get Convince more and more to the extent of their satisfaction.

53

BIBLOGRAPHY
1. cooper, D.R & Schindler, P.S.(2006), Business Research Methods, Tata McGraw Hill, New Delhi
2.

http://www.allianzbajaj.co.in/life insurance/aboutus http://www.irdaindia.org

3.

4. http://www.indiacore.com/insurance.html 5. IC 33 Life Insurance (revised) (Pre-Recruitment examination for insurance agents)

54

APPENDIX
Questionnaire Respected Sir/Madam I am Jayesh Patel the student of MBA (2nd Semester), of Shrimad Rajchandra Institute of Management & Computer Application, Tarsadi. As a part of my academic curriculum, I have undertaken a project on Agency Recruitment. I request you to please spare some of your valuable time to fill up the questionnaire. This information provided by you will be kept strictly confidential. Q.1 Are you aware of Life Insurance firm? [ ] Yes [ ] No

Q.2 if you want to work as an insurance advisor which of the following Life Insurance Company you will prefer most? [ ] LIC [ ] ICICI Prudential [ ] Reliance [ ] Bajaj Allianz [ ] Birla Sun Life [ ] Other Specify________________________

Q.3 How did came to you know about Life Insurance Company? [ ] TV [ ] Magazine [ ] News Paper [ ] Internet [ ] Hoarding [ ] other specify________________________

Q.4 Do you know that Insurance provide extra earning opportunity by working as a Part time? [ ] Yes [ ] No

55

Q.5 which is the basic factor that you consider most important for being an Insurance Advisor. [ ] Brand Name [ ] Social Service [ ] Commission Rate [ ] Other Specify________________________

Q.6 which of the following factor demotivate you being an Insurance advisor? [ ] Examination [ ] Job not preferred [ ] Fees of Examination [ ] Other Specify________________________

Q.7 to what extent you are agree/disagree with following statements. A) Life Insurance agency offer extra income earning opportunity. [ ] Strongly Disagree [ ] Agree [ ] Disagree [ ] Strongly Agree [ ] Neutral

B) Life Insurance agency offers flexibility in working hours. [ ] Strongly Disagree [ ] Agree [ ] Disagree [ ] Strongly Agree [ ] Neutral

C) Life Insurance agency offers various promotional schemes benefits To agent. [ ] Strongly Disagree [ ] Agree [ ] Disagree [ ] Strongly Agree [ ] Neutral

D) Life Insurance agency offers High growth potential. [ ] Strongly Disagree [ ] Agree [ ] Disagree [ ] Strongly Agree [ ] Neutral

E) Life Insurance agency offers a wide range of well designed Insurance Plans. [ ] Strongly Disagree [ ] Disagree [ ] Neutral [ ] Agree [ ] Strongly Agree

56

Q.8 Indicate to what extent you agree with the Bajaj Allianz Life Insurance Co. Ltd. A) Bajaj Allianz Life Insurance Co. Ltd agency gives you a good extra Income Earning Opportunity. [ ] Strongly Disagree [ ] Agree [ ] Disagree [ ] Strongly Agree [ ] Neutral

B) Bajaj Allianz Life Insurance Co. Ltd agency offers flexibility in Working hours. [ ] Strongly Disagree [ ] Agree [ ] Disagree [ ] Strongly Agree [ ] Neutral

C) Bajaj Allianz Life Insurance agency offers various promotional Schemes benefits to Agent. [ ] Strongly Disagree [ ] Agree [ ] Disagree [ ] Strongly Agree [ ] Neutral

D) Bajaj Allianz Life Insurance Co. Ltd agency offers High Growth Potential. [ ] Strongly Disagree [ ] Agree [ ] Disagree [ ] Strongly Agree [ ] Neutral

E) Bajaj Allianz Life Insurance Co. Ltd agency offers a strong Company/brand image Is helpful to agent in becoming agency Business. [ ] Strongly Disagree [ ] Agree [ ] Disagree [ ] Strongly Agree [ ] Neutral

F) Life Insurance agency offers a wide range of well designed Insurance Plans. [ ] Strongly Disagree [ ] Agree [ ] Disagree [ ] Strongly Agree [ ] Neutral

57

Personal Detail

Name: Address:

___________________________________________________ ____________________________ ____________________________ ____________________________

Phone no:

____________________________ [ ] 25-31 Year [ ] 39-45 Year

Age Group: [ ] 18-24 Year [ ] 32-38 Year [ ] 45 Year & Above Education: [ ] Under Graduate [ ] Post Graduate Gender: [ ] Male Occupation: [ ] Professional [ ] Housewife [ ] Other Specify

[ ] Graduate [ ] Female [ ] Businessman [ ] Student

Family Annual Income: [ ] Less Than 1, 00,000 Rs. [ ] 1, 00,000 - 2, 00, 00 Rs. [ ] 2, 00,001 - 3, 00,000 Rs. [ ] 3, 00,001 - 4, 00,000 Rs. [ ] Above 4, 00,000

THANK YOU

58

59