Insurance and Insurance policies

Management education required close co-operation between businesses a business institution. Theory and practical are two inseparable parts of any type of education and are essential for management studies. Practice makes a man perfect. A student gets theoretical knowledge from classroom and gets practical knowledge from industrial training. When these two aspects of theoretical knowledge and practical experience come together then a student is fully equipped to secure best.

In conducting the project study in an industry, students get exposed and have knowledge of real situation in the work field and gain experience from them. The fundamental objective of the summer training or summer internship is to provide an opportunity to experience the practical aspect of management in any organization. It provides a chance to get the feel of the organization and its function.  



The advances of technology, the multiplicity of activities and growing interdependence makes larger and larger disaster inevitable. Progress has put more people, more companies at risk than even before. Traffic multiplicities on road, in the air and at the sea. The disaster cause death or hardship too many more people and properties. Defective goods can cause injury. Mistakes to happen and accidents can kill employees and general public.
The essence of insurance lies in the elimination of uncertain risk of loss for individuals through the combination of the large number of similarities expose individuals who contribute to common fund premium payment which is sufficient to make the goods loss caused to any one individual. In all kind of insurance the fundamental principle is that one man agrees to take the risk of another man’s life, insurance business in consideration of certain small payment which is called premiums. The simplest and most general concept of insurance is a provision made by a group of persons, each single in risk of same loss, the incidence of which cannot be forecasted, that when such loss occurs at any of these it shall be distributed over the whole group.
The concept of insurance has been deep rooted in India from a way long back since 1956. This was the time when facility of life insurance in India was only provided by government namely LIC INDIA. Now as the world business is expanding across the boundaries of the respective countries. India has also taken the initiative to open the doors and invite the foreign companies to come forward and invest in our country. The concept of liberalization, privatization, globalization(LPG) have also opened the doors for foreign companies to come forward and setup their organization in our country as well, to provide the respective service of risk coverage(insurance). The other Indian companies are making up their ties up with foreign companies and are providing this service in our country.
Thus we have seen in the last couple of years a large pool of private as well as other financial institutions has come forward to provide this particular service of insurance. Like for example BAJAJ ALLIANZ LIFE INSURANCE Co. Ltd., ICICI PRUDENTIAL, and BIRLA SUNLIFE INSURANCE etc. the share of private life insurance players has also been increased marginally. Life insurance is superior to other savings because of followings

Where saving through life insurance guarantees full protection against risk of death of the saver. In life insurance, the full sum assured is payable (with bonus where ever applicable) as in other saving schemes, only the amount saved (with interest) is payable.

Life insurance encourages ‘thrift’. Long term saving can be made in a relatively “Painless” manner because of the “easy installment” facilities built into the schemes(method of paying premium monthly, quarterly, half-yearly or yearly).

Loans can be raised on the sold security of a policy which acquires loan value. Besides, a life insurance policy is also generally accepted as security for even a commercial loan.

Tax relief in income tax and wealth tax is available for amounts paid by the way of premium for life insurance subject to income tax rates in force. Assesses can avail themselves of provisions in the tax relief. In such cases assured in effect pays a lower premium for his insurable then he would have to pay otherwise.

A suitable insurance plan or a combination of different plan an be taken out to meet specific need that are likely to arise in future, such as children education, start a life insurance or marriage provision or even periodical needs for cash over a stretch of time.
Apart from savings, the insurance field is fulfilling for the employer’s point of view. Due to penetration of private players in Indian insurance market potential persons get more options of employment here. This may be source of unlimited income in respect of

“The quick pace of industrialization of the modern age has rendered man and his property most venerable to the type of risk and uncertainties of life”. Thus, while uncertainties of death, unemployment, sickness are constantly staring at the face of man, his property exposed to the risk arising from fire, water, accident, windstorm, sea perils, earthquake, floods , dishonesty, negligence etc. resulting from acts of goods. The annual losses to individuals from untimely death and to businessman from the risks are too great to be calculated and indicate the importance of meeting them in a planned manner. Local newspaper reveals stories everyday about financial losses. A father, twenty-five years ago dies, leaving behind a wife and three kids. Two thieves steal some priceless antiques from a museum or temple. A bank is robbed of lakhs   of rupees in a broad-day light.
Who bears the financial burden of those losses? Who should now support the widow and her children? Who is to replace the historical statue from the museum? Who will compensate the departmental shop or a bank for the theft and robbery? In the absence of any remedy or cooperative efforts concerned. But with growth of the industrialization, society and consequently a rapid increase in the number of situations in which the human life and property of these losses has been devised by shifting these risks to agencies or persons willing or qualified to share them.

Insurance as we know it today owes its existence to 17th century in ENGLAND where it began taking shape in the LIOYD’S coffee house where merchants, ship owners and underwriters met to discuss and transact business. The 1st stock company to get into the business was started in ENGLAND in 1720. The year 1735 saw birth of 1st insurance company in American colonies in India. Insurance can be traced back to Vedas. The rig Vedas suggests the existence of some form of community insurance prevalent among the Aryans in around 1000 B.C. Bombay mutual assurance society; the 1st Indian life insurance company was formed in 1870. Other companies like ORIENTAL, BHARAT and EMPIRE if India where also set between 1870 and 1890.
As companies grew, the government began to exercise control on them. The insurance act was passed in 1912 followed by the detailed and a mounded insurance act of 1938 and that looked onto investment, expenditure and management of fund of these companies for years. Insurance remained as monopoly of the public sector. It was only the year 2000 that the insurance industry was again opened to the private players as based on the recommendation of the R.N Malhotra committee in 1994 followed by the set up to the insurance regulatory and development authority under the leadership of Mr.N.Ramgachari.

Bajaj Allianz Life insurance co. ltd is a joint venture between two leading conglomerates Allianz AG and Bajaj Auto Limited.
Bajaj Allianz is poised for a growth in the market and has already become the fastest growing private life insurance co. in India. Bajaj Allianz has a pan-India presence. Bajaj Allianz has also forged strong bank assurance and corporate agency relationship and continues to build on new ties-up for fast growing and deep market penetration.
Bajaj Allianz has launched a slew need based product to cater to each varied needs of the customer. Currently Bajaj Allianz has a product portfolio of 29 products and more need-based products are in pipeline.
We, at Bajaj Allianz, realize that you seek an insurer who you can trust your has earned money with, Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto, trusted for over 55 years in the Indian market, together are committed to offering you financial solutions that provide all the security you need for your family and yourself.

Bajaj Allianz visions to make Bajaj Allianz Life Insurance Co. Ltd the dominant life and pension’s player world class people and services. The Bajaj Allianz hopes to achieve by:
·        Understanding the needs the needs of the customer and offering them superior products and services;
·        Leveraging technology to provide quick service to customers, efficiently and conveniently;
·        Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policy holders;
·        Providing and enabling environment to foster growth and learning for our employees;
·        And above all, building transparency in all our dealings.

We at Bajaj Allianz have a very simple purpose behind all that we do customer satisfaction. If we can offer you values for your money, if we can fulfill your needs with innovative Life Insurance products and can delight you with superlative service, we believe we are successful.

The most successful and admired Life Insurance company, which means that we are the most trusted company, the easiest to deal with. Offers the best value for money and set standards in the industry. In short “The most obvious choice for all”.

Underlying every product we offer, every service we render is an ethos of security, trust and innovation.

We would like to keep you financially secure in the long run or term.

Your confidence in us is our most valuable asset. We will live up to it managing your funds carefully and wisely.

Your need are special and unique. So, we offer you innovative products to fulfill them.

Values that will be observed while people work with Bajaj Allianz Life Insurance co. Ltd.:-
What is it?
·        Honest and truthful in every action.
·        Transparency
·        Stick to principles irrespective of outcome.
·        Be fair to everyone.
·        Integrity is the bedrock on which the company and the expectations of the customers and employees are built.
·        Integrity establishes the creditability of the person, defines the character and employees on to do justice to the job.
·        Enables building confidence and trust, achieving transparency and laying a strong foundation for binding relationships.
·        Building principles for all walks of life.

What is it?
·        Building a store house of treasure through experience.
·        Looking at every product and process through fresh eyes everyday.
·        To exceed customers expectations and maximize customer retention.
·        To achieve competitive advantage.
·        To promote growth and upgrade standards in the industry.
·        To foster creativity among employees and partners.
·        To open a world of new possibilities.

People care:
What is it?
·        Genuinely understanding the people we work with.
·        Guiding their development through training and support.
·        Help them develop requisite skills to reach their true potentials.
·        Know them on their personal front. Create and environment of trust and openness.
·        Respect for the time of others.
·        People are the most valuable assets of the company.
·        Motivate and individual relationship with them to create a joyful working environment.
·        Job satisfaction.

Team work:
What is it?
·        Whole team takes the ownership of deliverables.
·        Consult all involved, understand and arrive at a common objective.
·        Cooperate and support across department boundaries.
·        Together everyone achieve more TEAM.
·        It adds joy at work place.
·        It generates synergy and provides a focused approach.
·        An idea or activity performed in a group has greater acceptability. 
·        “one for all and all for one”.

Hierarchy of sales division of Bajaj Allianz Life Insurance co. Ltd.
Chief executive officer
Zonal manager
Regional sales manager
Area manager/divisional manager
Branch manager
Sales manager
Insurance consultants(IC’s)

Major insurance companies at a glance:

While the public sector LIC dominates the Indian Life Insurance market with nearly 80% of the market share. It has more than 1000 branches, more than 1, 15,000 employees and over one million agents. It has also been improving internal process and system, upgrading skills of its agency force and managers and developing innovative products. LIC sold over 1.69 crore policies during the year compared to 18 lakhs policies sold by private players.

ICICI Prudential:

ICICI Prudential is the leader among the private players with a market share of 7.11% after its premium collections of total Rs 1,154 billion. With its combination of aggressive marketing through an agency force and the use of banking channel, ICICI has merged a the key player. Initially, the company drove new business by opening branches in new locations for increasing market share. The company has 7 bank assurance partners and 800 financial sales consultants as of 2004. It took the initiative in launching non-traditional products such as life-stage products, retirement solutions and children’s plans. It also focused on unit linked plans(ULIP) to target the new consumer segment. It sold 64764 policies during the year 2003-04.

Birla Sunlife:

It’s a joint venture between Aditya Birla Group & Sunlife Assurance Company with paid up capital of Rs 290crores, the company started its business as on 1st march 2003. The company distributes set up comprises insurance advisors for life and experts marketing team for group products.
Aditya Birla Group is India’s 2nd largest business house, with a turn over $4.75 billion. The Aditya Birla Group diversified conglomerate with 72000 strong workforce spanning 40 companies across 1countries, Sunlife Assurance Company of Canada , established in 1871is licensed in Canada,
USA , Philippines, HHHongkong and in UK. The company also through alternative channels like bank Assurance.

HDFC Standard Life Insurance Company LTD.:
In 1995 two companies – HDFC Limited and Standard Life Assurance company- entered into joint venture relationship. Values were shared. Beliefs merged. The relationship was based on a platform of trust, commitment and excellence. Through the hurdle race of time the two partners stood by each other and emerged at the forefront on 23rd 2000. HDFC Standard Life Insurance Company Limited was the first life insurance company to be granted the certificate of Registration by the IRDA. Now HDFC Standard Life aims to mirror the success of its parent companies. It seeks to serve as the hallmark of excellence, the yardstick by which all others like life insurance companies will be measured.

 KOTAK Mahindra Old Mutual Life Insurance LTD.:
 KOTAK Mahindra Old Mutual Life Insurance LTD is a joint venture between KOTAK Mahindra Bank Ltd. And old Mutual Plc. KOTAK Mahindra Insurance, the company aims to help customers take important financial decision at every stage in life by offering them a wide range of innovative Life insurance products, to make them financially independent. KOTAK Mahindra Old Mutual Life Insurance LTD was established in 2000 as a joint venture between KOTAK Mahindra Bank Ltd.(74%) and Old Mutual Plc, South Africa (26%). The KOTAK Mahindra Bank Ltd. Was the first private company to receive a retail bank license in 2003. In the Life Insurance market, KOTAK Insurance is one of the fastest growing companies in India. In the financial year 2004-05 it demonstrated a premium income growth of 198%. KOTAK Life Insurance, with 44 branches in over 30 locations and an employee force over 1500 employees is a company with a high level brand awareness KOTAK Life Insurance aspires to spiraling growth with a strong focus on customers, products, geography distribution channel mapping and fund performance.

Indian Promoters
Foreign Insurer

Different products provided by BAJAJ ALLIANZ Life Insurance Co. Ltd.:
BAJAJ ALLIANZ provides a wide range of products for its consumer. This company bears the punch line “ JAISE JARUWAT WAISE INSURANCE”- it means products as per customers need. BAJAJ ALLIANZ Life has designed several innovative products some of them are as follows:
Traditional plan:
This are the plans which ensures certain return after completion of the term. Traditional plans are not related to market risks. In such kinds of plans premiums are calculated as per policy holder’s age, sum assured and taken and term.

Unit linked insurance plan (ULIP):
These are the plans which are market related. It means that these kinds of plans does not give certain returns instead of the return of this plans are marketed related. If the market goes up the return will be high and vice versa .investment in these plans are subject to market risks.

Traditional investment plans:
This plans does not give opportunity to the customers to enjoy the insurance advantage and a low return investment as well. Customers can opt for this investment plan to have guaranteed return after a stipulated time.
EX: invest gain, cash gain, super saver, mahila gain, etc

Traditional children plan:
Traditional children plan give freedom to the parents of future liabilities of their children. It ensures child’s future with a certain return. EX: child gain.
Traditional term care policies:
This policies provide only the insurance coverage to the customer, no investment related profit. Consumers can opt this policy with a very lower premium.
EX: risk care, term care.

Traditional pension plan:
Pension plans are very much necessary for every individual. Because it provides stability to the policy holder in his old age. Traditional pension plan give the financial freedom to the consumer with the guaranteed return.

Unit linked pension plan for investment:
BAJAJ Life has designed so many ULIP Investment plans for the consumer. These plans provide both insurance and investment advantages. Statistics says market related or ULIP plans give more return then traditional plans. However, investments in this plan always bear market risks which are not there in traditional plans. Some of the plans provide consumer both the sum assured and fund value to the nominee.
EX: family gain, new unit gain, unit gain plus gold, century plus-II, unit gain protection plus, fortune plus, new unit gain plus sp.
ULIP pension plan:
This plan is specially designed for the people those who can take risks for higher pension payouts.
EX: future secure, ULIP pension.

Mediclaim policies:
These plans are a little bit different from the investment plans. Mediclaim provides freedom from medical expenses to the consumer. It reimburses medical expenses made by the consumer. In BAJAJ Life mediclaim policies is available one for individual and other for whole family.
EX: care first, family care first.

Different services provided by the BAJAJ ALLIANZ Life:
BAJAJ ALLANZ Life has formed various structure to provide services to its consumers. Some of them are as follows:
1.     Insurance consultants(IC): IC’s are the main pillars of the company. Because they provide different direct services to the customers. After taking a policy if a customer wants to know something they can contact IC’s directly to fulfill their queries. They work as financial advisors for the customers. Moreover they are liable to their customers to give service and this kind of liability generates stronger relationship between consumer and the company.

2.     Large chain of branches: BAJAJ ALLIANZ has more than 900 branches all over India. Through these branches company provides numerous services to the customers. These branches provide customer flexibility to satisfy his requirement anywhere in the country.
3.     Traditional services: company always uses traditional mailing system to provide any information to the customer.
4.     Telephonic service: company has several toll free numbers through which consumers can contact customer care executives to have different information regarding their queries. On the other side company personnel also connect themselves with the customer through this for better services.
5.     Sms: short messaging service through different information can be gathered down by the customer. The consumer also be informed by the company personnel information related to their policies.

6.     Internet: today’s world is really fast growing. People do not have time to go to office to have new policies or to submit renewals. For such kind of people company has started this service to solve their problems. Through this service consumer can take new polices, get policy details, and even submit renewals.
7.     Exclusive renewal verticals: this department is specially formed to collect renewals premiums of the customers. This department sends renewal letters, calls customer for pending renewals.

Services Company is on the way to arrange financial submits and training for new IC’s and as well as for the customers so that people can become more aware of their investments. Also, company is focused towards development of several services medium. Because, insurance sector more involves service rather than finance.



1.     Meant for the masses
2.     Wide rang of services
3.     Wide network
4.     Less charge than many of the private see for companies
5.     Committed work free
6.      Strong customer base
7.     Availability of top R & D personal


1.     Lack of advertisement of its schemes
2.     Less number of marketing managers and trainer
3.     Weak customer care call


1.     Growing population and expanding market
2.     Increase in disposable income
3.     The company can still expand its range of services by providing more services to its customer


1.     The basis and the foremost threat are from the competition both from the public and the private
See for. Which are offering a wide rang of services

2.     Fiscal policies resulting into increased taxes, duties, import etc.
3.     Recession
4.     Political instability


1.     To find out which medium of communication prefer most to have
    information related to consumer’s investment and existing         policy.Because, in this present world people have ample of activities Perform. Therefore people always want to go for easily available

     And time saving medium to satisfy their crucial investment queries
     Thus the various modes are to be rated with in a point seal of 1 to 5
     Where 1 for lowest and 5 for the highest as per customers preference
      And convenience.
2.     How frequently people discuss with experts before investing money.
This is really an important avenue where company can pay its attention
And provide consultamey  services to the people for best buying. It will
Creat a great impact in people’s mind.

3.     To find  out the influencing factors of customer is very much needed.
Because, it is directly linked with the company’s personal growth.
Customers specially in rural areas are confused, they don’t know the
Influential factors, variour to 5 where 1 for the lowest and 5 for the

                 4.   How much customers are satisfied with the insurance consultant ?
                       this is a very much vital thing. Because, here in India “belief factor”
                       works more than anything else. So how people or customers are
                       taking insurance advisor that is indispensable. That different level
                       of satisfaction have been kept to get the clear picture about the
                       services, provided by the insurance consultants.

               5.    How much companies are careful in terms of after sell services ?
                      for sustainable development and growth, after sell services plays
                      a vital role. Once customer will get good services from any company
                      he will spread the message among his natives and relatives that will
                      be beneficial for the company. So keeping in mind about the after sell
                      service the company has to think more prominently for its future
                      prospect. Thus different services are to be rated with in a point scale
                      of 1 to 5 where 1 for the lowest and 5 for the highest.

6.  To find out company, consumers are getting different services from
     Bajaj  allianz  life. This will help company to concentrate particularly
     On those service which is not common to the customer. It will increase
     Companies customer care service more prompt.

7.   Company will understand what kind of products consumer wants most.
      This will help the company to understand the customers expectations.
      Thus different products are to be rated in a point seal of 1 to 7 where
       1 for lowest and 7 for highest.


                           After objective has been laid down, systematic and
                           Organized steps where followed to achieve our objective
                           The steps that are performed are as follows.



As the whole study is mainly based on primary data, the research instrument used to collect primary data has been the questionnaire.
The questionnaire has been designed in a logical manner in such a
Way that the objectives that is be achieved is being met. The company’s
Guide (Mr.Apurba Dubey) has helped me to design the questionnaire.
Adequate are has been questionnaire. Double barrel question have been
Avoided to prevent any confusion while analyzing the data. The question
Are designed in a manner that answers all the above question.

For conducting the research, a data base has to be generated and for this
Sample plays an important part. A sample is a subject of a unit of population, Collected as a representative  of it. The sample has been
Collected in such a way that it represents the population. The targeted
Audience and their reference have been studied quite closely. In any
Research, the size of the sample plays an important clement in the research process as the size of the sample has direct effect on the result
Of the research. Thus a sample of size 100 sample has been selected
Keeping in of the cost the and accuracy factors in mind.


Again data abo been collected with the help of telephone as the cost involve in collecting data is low compared to personal interview. People
Can be easily reached on the telephonic interview and reluctance level of
Respondent is low.


This is the technique, which is widely used in collecting of data. This is the most costly techniques, as are one has to actually go to person to fill the questionnaire. This is also a time consuming method of collecting data.


There is a lot of effort which needs to be put into the customer care services from Bajaj  Allianz life to challenge leadership of LICI, ICICI prudential, HDFC standard life, birla sunlife  etc. Bajaj Allianz life can look to provide better customer care services are.

1.     The company has to educate consultants, low to provide bitter services. It needs more prompt trainer to educate the newly recruited consultants. At least 6 session in a month, the company should arrange training session to Greer up consultants.
2.     During  recruitment of direct consultants, care should be taken during is reduced and there is an increase in the active consultants.
3.     Several financial camps should be organized by the company to provide financial advice to the consumes. This camp also helps customer to get scope to do his financial management. This will aware the consumer more to buy appropriate product.
4.     To create awareness level specially in rural area, the company has to design many products for rural people. Because country like India, insurance penetration level is very poor and it can not be increased unless the involvement of rural people. Therefore company should create micro insurance policies.

Finally, while rounding up the project I world like to thank the organization for giving me this wonderful opportunity to explore the insurance industry, one of the fastest growing industry. During my association in the organization the company has been an eye my opener for me to look forward. This experience has given me more scope to know more about customer care services provided by the life insurance companies.    

Based on the above analysis that has been done on the basis of data collected. The following recommendation are being suggested to Bajaj Allianz life.

Only the customer care services executive, thong phone cannot satisfy a customer fully. At requires physical presence of customer care executive in every branch. The consultants, sales managers, branch managers and other managers should provide best advices to the customer requires unbiased recommendation for their hard earned money. This kind of sensitive steps only can make Bajaj Alliaur life more reliable with in the mass no matter LICI, ICICI prudential, HDFC standard, birla sunlife  are there in the market. Side Bajaj  Allianr life should come up with some strategies enforcing it in the befferment of its consultants who will be helping to enhance the business of the company.

  Thongle a sincere effort has been made to complete the project but there are certain limitations present in this project.

The sample size was relatively small due to time constraint.
The respondent who we were supposed to interview world
Not give us time as their work was disturbed and we had to
Approach them more than once which was a time consuming.
The findings of the survey were totally dependent on the
Response of the people of the west Bengal that may not be
Correct in every cases.

Some people think that investments are too risky and just another name of gamble but they don’t know its not at all risk  for long investors.

People don’t want to give their financial status indeed.

1 comment:

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