Costmer awareness project report @bajaj allianz

1. EXECUTIVE SUMMARY
The project report on “A study on customer awareness to enhance market share of
Bajaj Allianz Unit Link Insurance Plan” in Hubli city. I through under took the project by
the help of BAJAJ ALLIANZ Life Insurance Ltd. Sales team manager.
Objectives:
1. To study the awareness level of Bajaj Allianz ULIPs with view to
recommend measure to improve market share.
2. To find vital communication media.
3. To know the factors that influence investors while taking investment
decisions.
4. To find potential market for ULIPs.
Scope of the study:
 The research was undertaken to gather information from the
respondent to know exactly how many people aware of ULIPs in
Hubli city and the study is restricted within the city.
 One of the fast growing city in Karnataka and represents huge
market for scope with more than 90 lakhs people.
 Hubli is one of the commercial areas .
 It is a place where the small and large industries are located .with
the more increase population and there style more people are
conscious about the their lives.
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2. LIMITATIONS OF THE STUDY
Not single work is exception to the limitations every work has got its own
limitations, so due to time constraint my study confines only to Hubli city and it is not
possible to make extensive study. It is assumed that the sample selected represents entire
population.
RESEARCH METHODOLOGY
Primary (Filed Survey)
Data source :
Secondary data (internal)
Area of Research : Hubli city
Research instrument : Questionnaires
Sample plan : Personal interview
Businessman’s, jobholders,
Sample unit :
professionals etc.
Sampling method : Random sampling
Sample size : 100 customers
INDEX
PARTICULAR Page no
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3. Chapter-I
1) Introduction 09
2) Literature Review 18
3) Statement of the problem 19
4) Purpose of the study 19
5) Scope of the study 26
6) Objectives of study 27
Chapter-II
1) Organization Profile 29
2) Organization Chart 62
3) Sampling 64
4) Research Design 64
5) Data Collection Methods 64
6) Measuring tools. 65
Chapter-III
1) Result & discussion with graphs & charts. 68
2) Summary, conclusion, & a proposed action plan with resource requirements
and projected benefits to the organization. 84
Chapter-IV
1) Appendix
Questionnaire 88
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4. Weekly Reports
2) Bibliography 92
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5. Industry overview
A brief history of the Insurance sector
The business of life insurance in India in its existing form started in India in the year: -
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6. 181  With the establishment of the Oriental Life Insurance Company in
8 Calcutta. Some of the important milestones in the life insurance
business in India are:
191  The Indian Life Assurance Companies Act enacted as the first statute to
2 regulate the life insurance business.
192  The Indian Insurance Companies Act enacted to enable the government
8 to collect statistical information about both life and non-life insurance
businesses
193  Earlier legislation consolidated and amended to by the Insurance Act
8 with the objective of protecting the interests of the insuring public
195  By the mid-1950s, there were around 170 insurance companies in the
6 country's life insurance scene. However, in the absence of regulatory
systems, scams and irregularities were almost a way of life at most of
these companies
As a result, the government decided nationalizes the life assurance business in India. The
Life Insurance Corporation of India was set up in 1956 to take over around 250 life
companies. 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act.
For years thereafter, insurance remained a monopoly of the public sector. It was only
after seven years of deliberation and debate - after the RN Malhotra Committee report of
1994 became the first serious document calling for the re-opening up of the insurance
sector to private players -- that the sector was finally opened up to private players in
2001.
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7. The Insurance Regulatory & Development Authority, an autonomous insurance regulator
set up in 2000, has extensive powers to oversee the insurance business and regulate in a
manner that will safeguard the interests of the insured.
INSURANCE SECTOR REFORMS
Due to immense growth in the insurance sectors the regulations were introduced. In
1993,Malhotra Committee headed by former Finance Secretary and RBI Governor was
formed to evaluate the Indian insurance industry and give its recommendations. After this
committee the regulatory body for insurance sector was formed with the name of IRDA.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(IRDA)
IRDA has been formed as an authority to protect the interests of insurance policies, to
regulate, promote and ensure orderly growth of insurance Industry and for matters
connected therewith of incidental thereto.
Composition of Authority under IRDA Act, 1999
As per the section 4 of IRDA Act of 1999, The Authority is a ten-member team
consisting of..
1) A Chairman
2) 5 Whole team Members
3) 4 part time members
Duties, Powers and Functions of IRDA
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8. Section 14 IRDA Act, 1999 lays down the duties, powers and functions of IRDA
1. The Authority has the duty to regulate, promote and ensure orderly growth of the
Insurance business and re- insurance business.
2. This Include -
a) Issue to the applicant a certificate of registration, renew, modify ,
Withdraw, suspend or cancel such registration.
b) Protection of interests of the policy holders in matter concerning assigning
of policy, nomination by policyholders, insurable interest, settlement of
insurance claim, surrender value of policy and condition of contracts of
insurance.
c) Specifying the code of conduct and practical training for intermediary or
insurance intermediaries and agents
3. Specifying the code of conduct for surveyors and loss assessors.
4. Promoting efficiency in the conduct of insurance business.
5. Promoting and regulating professional organization connected with insurance and
reinsurance business.
6. Levying fees and other charges for carrying out the purposes of this act.
7. Calling from information from, undertaking inspection of, conducting enquiries
and investigation including audit of the insurers, intermediaries and other
organization connected with the insurance business
8. Control and regulation of the rates, advantages, terms and condition
9. Specifying the form and manner in which books of accounts shall be maintained
and statement of account shall be rendered by insurers and other intermediaries.
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9. 10. Regulating investment of funds by insurance companies.
11. Regulating maintenance of margin of solvency.
12. Adjudication of disputes between Insurers and intermediaries or insurance
intermediaries.
13. Supervising the functioning of the Tariff Advisory Committee.
14. Specifying the % of Premium, Income of the insurer to finance schemes for
promoting and regulating professional organizations
15. Specifying the % of Life Insurance Business and general Insurance Business to be
undertaken by the Insurer in the rural or social sector.
The IRDA since its incorporation as a statutory body has been framing
Regulations and registering the private sector insurance companies. IRDA being an
Independent statutory body has put a framework of globally compatible regulations.
Indian Insurance Sector
The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance
Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972,
Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related
acts.
INSURANCE COMPANIES:
In the private sector 12 life insurance and 6 general insurance companies
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10. have been registered.
LIFE INSURERS
 Public Sector
Life Insurance Corporation of India
LIFE INSURANCE CORPORATION OF INDIA (LIC)
An Act of Parliament, viz., Life Insurance Corporation Act, formed Life Insurance
Corporation of India (LIC) in September 1956, with capital contribution from the
Government of India.
The objective was: to conduct the business with the utmost economy, in a spirit of
trusteeship; to charge premium no higher than warranted by strict actuarial
considerations; to invest the funds for obtaining maximum yield for the policy holders
consistent with safety of the capital; to render prompt and efficient service to policy
holders, thereby making insurance widely popular.
Since nationalization, LIC has built up a vast network of 2,048 branches, 100 divisions
and 7 zonal offices spread over the country. The Life Insurance Corporation of India also
transacts business abroad and has offices in Fiji, Mauritius and United Kingdom.
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11. CURRENT SCENARIO OF THE INSURANCE INDUSTRY
Innovative products and aggressive distribution have become the say of the day. Indians,
have always seen life insurance as a tax saving device, are now suddenly turning to the
private sector that are providing them new products and variety for their choice.
PRIVATISATION:
There were various reasons given by the government to nationalize the insurance
sector was to take insurance to the mass, facilitate the flow of long term funds (which
insurance companies, by virtue of the business they are in, have ready access to) into
development of infrastructure in the country, and safe guard the interest of the policy
holders. Towards this end, state insurers did develop the insurance sector, though most
experts believe that these monopolies could have done much, much more.
In the early nineties is, the government went on a reforms binge and started loosing
controls on Indian industry. In 1993 the government appointed the Malhotra committee
headed former RBI governor R.N.Malhotra, to draw up a blue print for insurance sector
reforms. The panel submitted its report a year later, recommending privatization, backed
by stiff entry guidelines and stringent regulations, so as to avoid repeat per
nationalization free for all.
The insurance regulatory and development authority (IRDA) was founded to
regulate the sector and over see the process of privatization. In 2000, the IRDA started
giving out licenses, and a year later, the first of the private players started operation. The
wheel had come full circle.
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12. Under state control, the insurance sector, both life and non-life ,grew steadily.
Still, Indians are not adequately insured and lag behind most countries. Total insurance
penetration (insurance premium as a percentage of gross domestic product) is dismal
when compared to its economic standing. Just 2% of the population has some of life
insurance.
LIFE INSURANCE COMPANIES IN INDIA & THEIR
MARKET SHARE (as per march-06):
INDIAN FOREIGN COUNTRY INSURER WEBSITE MARKET
PROMOTER PROMOTER SHARE
Bajaj Auto Allianz AG Germany Bajaj Allianz bajajallianz.co.in 7.56
Life Insurance
ICICI Prudential USA ICICI iciciprulife.com 7.35
Prudential Life
Insurance
HDFC Standard Life UK HDFC Standard hdfcinsurance.co 2.9
Life Insurance m
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13. SBI Cardif (arm of Canada SBI Life sbilife.co.in 2.3
BNP paribas) Insurance
Aditya Birla Sun Life Canada Birla Sun Life birlasunlife.com 1.9
Group Insurance
TATA American USA Tata-AIG Life tata_aig.com 1.3
International Insurance
Group
Max India New York life USA Max New York Maxnewyorklife. 1.2
life insurance com
Dabur India Aviva Plc USA Aviva Life avivaindia.com 1.1
Insurance
Kotak Old Mutual Australia Kotak Mahindra Omkotakmahind 1.1
Mahindra Plc Old Mutual ra.com
finance Funds
Vysya Bank ING Group Netherlands INGVysya Life ingvysyalife.com 0.8
Insurance
Reliance Amp Sanmar Australia Reliance life Relianceindia.co 0.5
insurance m
Jammu & Met life USA Met life Metlifeindia.com 0.4
Kashmir bank insurance
Sahara India None India Sahara India Sahara India 0.1
Shriram Sanlam S.A Sriram life Sriramlife.com 0.0
insurance
Government None India Life insurance Licindia.com 71.4
corporation
of India (LIC)
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14. Literature Review:
The project report on “A study on customer awareness to enhance market share of
Bajaj Allianz Unit Link Insurance Plan” in Hubli. I through under took the project by the
help of BAJAJ ALLIANZ Life Insurance Ltd. Sales team manager Chandru.
A.Kallanagoudar
Body of the Report:
Primary data was collected by administration questionnaire of 100 customers. The
questionnaire was specially framed to meet the requirement of the survey and the
following details.
Direct contact was made with the respondents through random sample to collect
the needful information with reference to our objective as per to meet the survey
requirement.
Interview technique:
Direct personal interview was conducted throughout project using direct structured
and self-administrative questionnaire.
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15. Conclusion & Recommendation:
Analysis was based on the result of the research conducted and the
recommendations are based on the analysis.
Limitation :
The major limitation of the project was time frame.
STATEMENT OF THE PROBLEM
“A study on customer awareness to enhance market share of Bajaj Allianz
Unit Linked Insurance Products”.
Management Problem:
In the project the management problem is the ULIP’s is new in the market & the lot of
people are don’t know about the ULIP’s the management wants the improve market share
of ULIP’s.
Advantages of investing in ULIP:
ULIPs have been selling like proverbial `hot cakes' in the recent past and they are likely
to continue to outsell their plain vanilla counterparts going ahead. So what is it that
makes ULIPs so attractive to the individual is, as follows
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16. 1.Insurace cover plus savings: ULIP serve the purpose of providing life insurance
combined with savings at market-linked returns. To that extent, ULIPs can be termed as a
two-in-one plan in terms of giving an individual the twin benefits of life insurance plus
savings. This is unlike comparable instruments like a mutual fund for instance, which
does not offer a life cover.
2.Multiple investment options: ULIP offer a lot more variety than traditional life
insurance plans. So there are multiple options at the individual's disposal. . ULIPs
generally come in three broad variants:
 Aggressive ULIPs (which can typically invest 80%-100% in equities, balance in
debt)
 Balanced ULIPs (can typically invest around 40%-60% in equities)
 Conservative ULIPs (can typically invest up to 20% in equities)
Although this is how the ULIP options are generally designed, the exact debt/equity
allocations may vary across insurance companies. Individuals can opt for a variant based
on their risk profile. For example, a 30-Yr old individual looking at buying a life
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17. insurance plan that also helps him build a corpus for retirement can consider investing in
the Balanced or even the Aggressive ULIP. Likewise, a risk-averse individual who is not
comfortable with a high equity allocation can opt for the Conservative ULIP.
3.Flexibility
Mutual Funds also offer hybrid/balanced schemes that allow an individual to select a plan
according to his risk profile. The difference lies in the flexibility that ULIPs afford the
individual. Individuals can switch between the ULIP variants outlined above to capitalize
on investment opportunities across the equity and debt markets. Some insurance
companies allow a certain number of `free' switches. This is an important feature that
allows the informed individual/investor to benefit from the vagaries of stock/debt
markets. For instance, when stock markets were on the brink of 7,000 points (Sensex),
the informed investor could have shifted his assets from an Aggressive ULIP to a low-
risk Conservative ULIP.
Switching also helps individuals on another front. They can shift from an Aggressive to a
Balanced or a Conservative ULIP as they approach retirement. This is a reflection of the
change in their risk appetite, as they grow older.
4. Works like an SIP: Rupee cost-averaging is another important benefit associated with
ULIPs. With an SIP, individuals invest their monies regularly over time intervals of a
month/quarter and don't have to worry about `timing' the stock markets. As a matter of
fact, even the annual premium in a ULIP works on the rupee cost-averaging principle. An
added benefit with ULIPs is that individuals can also invest a one-time amount in the
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18. ULIP either to benefit from opportunities in the stock markets or if they have an
investible surplus in a particular year that they wish to put aside for the future.
The chart below shows how ULIP can meet multiple needs at different life stages.
Integrated Financial Planning
Starting a job, Recently married, Married, with kids
Single individual no kids
Your Low protection, Reasonable Higher protection,
Need high asset creation protection, still still high on asset
and accumulation high on asset creation but steadier
creation options, increase
savings for child
Flexibility Choose low death Increase death Increase death
benefit, choose benefit, choose benefit, choose
growth/balanced growth/balanced balanced option for
option for asset option for asset asset creation.
creation creation Choose riders for
enhanced
protection. Use top-
ups to increase your
accumulation
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19. Kids going to Higher studies for child, Children independent, nearing
school, college marriage the golden years
Higher Protection, Lump sum money for Safe accumulation for the golden
high on asset education, marriage. Facility to yrs.Considerably lower life
creation but stop premium for 2-3 yrs for insurance as the dependencies
steadier options, these extra expenses have decreased
liquidity for
education expenses
Withdrawal from Withdrawal from the account Decrease the death benefit-reduce
the account for the for higher education/marriage it to the minimum possible.
education expenses expenses of the child. Premium Choose the income investment
of the child holiday-to stop premium for a option. Top-ups form the
period without lapsing the accumulation (with reduced
policy expenses) for the golden yrs cash
accumulation
Because of their flexibility to adjust to different life stage needs, ULIPs fit in very well
with financial planning efforts.
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20. Limitation:
1. It is prudent to make equity-oriented investments based on an established track record
of at least three years over different market cycles. ULIPs may not fulfill this criterion in
near future.
2. Insurance and savings are two different goals and it is better to address them separately
rather than bundle them into a single product. A combination of a term plan and a mutual
fund could give better results over the long term.
3.The free hand given to ULIPs might prove risky if the timing of exit happens to
coincide with a bearish market phase, because of the inherently high equity component of
these schemes.
4. An initial allocation charge is deducted from investor premiums for selling, marketing
and broker commissions. These charges could be as high as 65 per cent of the first year
premiums. Premium allocation charges are usually very high (5-65 per cent) in the first
couple of years, but taper off later. The high initial charges mainly go towards funding
agent commissions, which could be as high as 40 per cent of the initial premium as per
IRDA regulations.
The charges are higher for a linked plan than a non-linked plan, as the former require lot
more servicing than the latter, such as regular disclosure of investments, switches, re-
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21. direction of premiums, withdrawals, and so on. Insurance companies have the discretion
to structure their expenses structure whereas a mutual fund does not have that luxury. The
expense ratios in their case cannot exceed 2.5 per cent for an equity plan and 2.25 per
cent for a debt plan respectively. The lack of regulation on the expense front works to the
detriment of investors in ULIPs.
5. The front-loading of charges does have an impact on overall returns as investors lose
out on the compounding benefit. Insurance companies explain that charges get evened
out over a long term. Thus investors are forced to stay with the plan for a longer tenure to
even out the effect of initial charges as the shorter the tenure, the lower will be the
investor real returns.
6. In effect, when investor lock in their money in a ULIP, despite the promise of
flexibility and liquidity, investor will stuck with one fund management style. This is all
the more reason to look for an established track record before committing investor hard-
earned money.
7. Investor life cover charges would depend on the accumulation in investor investment
account. As accumulation increases, the amount at risk for the insurance company
decreases. However, with increasing age, the cost per Rs 1,000 sum assured increases,
effectively increasing policy holder overall insurance costs.
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22. 8. It would deal with the fact that expenses on ULIPs were on the higher side in the initial
years and therefore; the exit option would hardly prove to be beneficial for the investors.
9. ULIP face tough competition from mutual funds, which are short-term instruments.
Hence, a liquidity option makes ULIPs as attractive but because of the high front-end
charges on policy, investor may not be left with much to withdraw at the end of 3 years.
Scope of the study:
The research was undertaken to gather information from the respondent to know
exactly how many people aware of ULIPs in Hubli city and the study is restricted within
the city.
The reason for confining the scope of the research in Hubli were.
2) One of the fast growing city in Karnataka and represents huge market for scope
with more than 90 lakhs people.
3) Hubli is one of the commercial areas .
4) It is a place where the small and large industries are located .with the more
increase population and there style more people are conscious about the their
lives.
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23. Objectives:
1. To study the awareness level of Bajaj Allianz ULIPs with view to
recommend measure to improve market share.
2. To find vital communication media.
3. To know the factors that influence investors while taking investment
decisions.
4. To find potential market for ULIPs.
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24. 1. ORGANISATION PROFILE:
Bajaj Group
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25.  A STRONG INDIAN BRAND- HAMARA BAJAJ
 One of the Largest 2 & 3 wheeler manufacturer in the world .
 21 million + vehicles on the roads across the globe
 managing funds of over Rs5200crore
 Bajaj Auto finance one of the largest auto finance companies in India Rs5934cr
turnover and profits after tax of 732cr in 2004-05
 Bajaj group ,a Rs. 8,000 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 Auto is a Rs.4,000 crore auto giant.
 4th largest in the world.
 Has over 15,000 employees.
Allianz Group
 Allianz Group is one of the world's leading insurers and financial services
providers
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26.  Founded in 1890 in Berlin,
 Allianz is one of the leading global insurance companies headquartered in
Munich, Germany .
 Established in 1890 ,more than 110 years of experience in insurance.
 Allianz has over 700 subsidiaries and approximately 1,81,000 employees
worldwide.
 Allianz global network extends to over 70 countries in:
o Europe .
o South and Northern Americas.
o Africa.
o Middle East.
o Asia Pacific.
 World largest insurance company by revenue 520353cr
 worldwide 2nd gross written premium 477930cr
 3rd largest assets under management(AUM) and largest insurance companies
AUM of Rs9594200cr.
 11th largest corporation in the world
 50% global business from life insurance close to 60 million lives insured globally.
 Allianz’ shares are treated at the 5 leading international stock exchanges:
 Frankfurt.
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27.  London .
 Paris.
 Zurich.
 New York.
 Insurance to almost half of the Fortune 500 companies.
Bajaj Allianz life Insurance
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28. Bajaj Allianz life Insurance Company Limited is a joint venture between Bajaj
Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise,
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29. stability and strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and
Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to
conduct General Insurance business (including Health Insurance business) in India.
The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto
holds 74% and the remaining 26% is held by Allianz, AG, Germany.
Key Achievements in FY 2005-06 :
• No.1 Pvt Life Insurer FY 2006-06. Leading by Rs. 78 Cr.
• No.1 Pvt Life Insurer in Retail Business. Leading by Rs. 339 Cr.
• Whopping growth of 216% for the FY 2005-06
• Have sold over 13,00,000 policies to satisfied customers
• Is backed by a network of 550 offices spanning the country
• Accelerated Growth
Fiscal Year No of policies sold in FY GWP in FY
2001-2002 (6mths) 21,376 Rs 7 cr.
2002-2003 1,15,965 Rs 69 cr.
2003-2004 1,86,443 Rs 221 cr.
2004-2005 2,88,189 Rs 1002 cr.
2005-2006 7,81,685 Rs 3134 cr.
 Assets under management Rs 3,324 cr.
 Shareholder capital base of Rs 500 cr.
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30. Company punch line
Mission:
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31. As a responsible customer focused market leader, we will strive to understand
the insurance needs of the consumers and translate it into affordable products that deliver
value for money.
Why Bajaj Allianz Life Insurance:
The Bajaj Allianz Difference
• Business strategy aligned to clients’ needs and trends in Indian and global
economy / industry.
• Internationally experienced core team, majority with local background.
• Fast, decentralized decision-making.
• Long-term commitment to market and clients.
Shareholder in Bajaj Allianz life insurance company:
Bajaj Auto Limited
Bajaj Auto Limited is the largest manufacturer of two and three –wheelers in India and
also one of the largest manufacturers in the world. Bajaj Auto has been in operation for
over 55 years. As a promoter of Bajaj Allianz General Insurance Company Ltd., Bajaj
Auto has the following to offer.
• Vast distribution network.
• Knowledge of Indian consumers.
• Financial strength and stability to support the insurance business.
CHANNEL PARTNERS
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32. Bancassurance Vantage
UNIT LINKED INSURANCE PLAN OR MARKET LINKED
INSURANCE PLAN (ULIP).
INTRODUCTION TO ULIP
ULIP came into play in the 1960s and became very popular in Western Europe and
Americas. The reason that is attributed to the wide spread popularity of ULIP is because
of the transparency and the flexibility which it offers. As times progressed the plans were
BSPATIL 32

33. also successfully mapped along with life insurance need to retirement planning. In
today’s times, ULIP provides solutions for insurance planning, financial needs, financial
planning for children’s future and retirement planning. Features of ULIP distinguish
itself through the multiple benefits that it provides to the consumer. The plan is a one-
stop solution providing: Life protection· Investment and Savings· Flexibility- Adjustable
Life Cover- Investment Options· Transparency· Options to take additional cover against-
Death due to accident- Disability- Critical Illness- Surgeries· Liquidity.
ULIP distinguishes itself through the multiple benefits it provides to the policyholders.
These plans are designed with a view to help the customers to utilize the market
opportunities by investing in the share market, capital market and at the same time have
the facility of Death Benefit and Maturity Benefit.
Meaning
It is a plan, which provides Life Insurance, and here policy value at any time varies
according to the value of the underlying asset at that time.
It is a plan that provides the client with the benefit of protection and flexibility.
An ULIP plan works as a one-stop advantage for the policyholder. It gives the
policyholder a wholesome advantage of integrated financial planning.
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34. STRUCTURE OF ULIP: -
ULIP
CONTRIBUTION
LESS- CHARGES
INVESTMENT LIFE COVER
REPRESENTED AS
NAV
NAV CONCEPT
It exhibits the value (or the price) that one has for his investment or one will have to pay
for his investment.
As, the investment made by different people are different, the value (or the price) is the
expressed in per unit terms. It helps in knowing the value of Insurance at any point of
time.
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35. Technical Calculation of NAV: -
UNIT Value = (Total market Value of all assets invested less expenses related
to Investment management / Total no. of outstanding units)
Factors affecting NAV:
Market Value of investment portfolio, Number of Units, Expenses and Investment
Income.
Ex: If 2,00,000 /- has been accumulated in the equity fund and the no. of units issued is
10,000 /- then the NAV of the equity fund is: -
2,00,000 / 10,000 = Rs 20 / -
As the equity market develop the fund grows from 2,00,000 / - to 220,000/-
Now the NAV = 2,20,000 / 10,000 = Rs 22 / -
If among these 10,000 units the policyholder has 5000 units then the value of investment
as of now is Rs 1,10,000.
Thus a unit linked plan actually tells, what is the value of the fund
.BASIC FEATURES OF ULIP
1. Life protection
2. Investment and savings
3. Flexibility
4. Transparency
5. Added Benefits
a) Death due to accident
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36. b) Any kind of disability
c) Critical illness
d) Surgeries
6. Liquidity
7. Tax Planning
8. Adjustable Life Cover
9. - Investment Options
-
1) LIFE PROTECTION
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37. Children
Start a
Establishi
Family
ng Career
Retiremen
t Time
Start
Working
The graph shows the various needs of the customer at different point of time,
individuals needs differ and his need for life protection fluctuates. ULIP satisfies
the varying needs of the customer providing him with more and more
protection as and when he requires, by allowing the policyholder to increase or
decrease the death benefit.
It is usually multiple of the contribution being paid, which ensure that the
contribution is adequate enough to provide life protection. And is also able to
maintain a sem balance between protection and savings.
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38. 2) INVESTMENTS AND SAVINGS
ULIP provides the client with option of investing as per his risk appetite and gets
returns accordingly. These various options available for an individual to make
investment in comparatively high risks instruments and get high returns. Below
shown is a graph illustrating the various investment options for a client.
Equity
funds
Balance
d funds
Debt
Short funds
term
debt
funds
BSPATIL 38

39. Risk
Example 1: Here are four types of funds in which a client can invest. In each case
the risk goes on increasing with the type of fund. The client has an option to shift
as the risk and return orientation changes (Switch).
3) FLEXIBILITY
The client has an option to choose the amount of sum assured and the premium
amount he is capable of paying. In case of certain plans of ULIP the client is
allowed to choose the premium.
Eg: Lifetime and Lifetime I the client has a flexibility to decide the life cover
according to his financial needs, independent of premium selected.
Following points enumerate the flexibility feature of ULIP
a) Increase in death benefit.
As life cycle changes of a client he passes through various risks and
responsibilities. He can increase or decrease the death benefit accordingly.
b) Decrease in death benefit.
If the client is unable to pay the same amount of premium he can decrease
the death benefit with certain conditions applying according to the
particular plans.
c) Premium holiday
BSPATIL 39

40. After paying the premium regularly for 3 years from the starting date of
the policy the client can take a premium holiday if he is unable to pay a
particular premium due. On returning from the premium holiday the client
can pay the previous premiums if he desires or continue from that date.
d) Choice of fund.
There are four kinds of funds available for a client of ULIP. He has an
option to switch between these four funds. He can either choose only one
or invest in all four depending on his risk tolerance.
Plan Plan objective Risk Investment pattern
Maximiser High growth and High Equity and equity
(Growth) capital appreciation related securities: Max
over a long terms 90%, Debt, money
market and cash: Min
10%
Balancer Balance of capital Average Equity and equity
(balanced) appreciation and related securities: Max
study returns over a 40%, Debt, money
long terms market and cash: Min
60%
Preserver Equal balance of Low Debt instrument: Max
capital appreciation 50%
and study returns Money market and
over a long term cash: Min 50%
Protector Study returns over a Moderate Debt instrument: Max
(Income) long term. 100%
Money market and
cash: Max 25%
e) Switch between the funds
BSPATIL 40

41. The policyholder has a choice two reallocate the premium paid by him on
every premium policy anniversary. He can switch between the above four
funds to avail the advantages of market fluctuations.
f) Top ups
Some times the client may have surplus amount after his expenses. ULIP
allows him to save that amount by investing in the insurance he can avail
the benefit of top up by paying extra premium, which will be invested in
the share market by the insurer company. The client gets expert fund
management. The policyholder is allowed to do as many top ups in the
tenure of plan.
g) Premium redirection
The policyholder is allowed to reallocate the premium paid each time to
different fund structure. Thus whenever the premium is due (As per the
premium payment mode), he can redirect the current premium into
different asset allocations than the previous time. This helps the
policyholder to optimize the funds in accordance to market with out using
the switch option.
e) Assignment option
The policyholder can assign the policy to any of the nominees or any bank in
case he has taken a loan on the title of the policy. Unfortunately if something
happens to the policyholder then the insurer will repay the loan taken by the
client to the extent of premium paid.
4) Transparency
BSPATIL 41

42. ULIP products are transparent in terms of, the policyholder is aware of where his
contribution is being allocated. The policyholder is aware of the various charges
charged to him.
The Various charges of the ULIP are: -
a) Contribution related Charges- Running expenses of the policy
b) Administrative Charges- Issuance cost, distribution costs etc
c) Fund Management Fee- cost of being and selling the various financial
instruments for various funds.
d) Mortality Charges: cost of providing life protection.
e) Rider charges: cost of other protection charges.
f) Surrender charges: cost to cover initial expenses.
g) Bid offer charges: difference between the offer price of units and the selling
price i.e. bid price of units. It covers the cost of selling the policy.
h) Transaction specific charges: cost of changing funds, toping up the investment
component or withdrawals
Daily NAV: A feature that lets us know on a daily bases, how the money in
insurance plan is growing.
5) ADDED BENEFITS
To get extra protection ULIP provides the policyholder the advantage of rider
attachments.
a. Death due to accident (ADBR)
b. Disability (ABR)
c. Critical Illness (CIBR)
d. Surgeries (MSAR) (Now discontinued)
6) LIQUIDITY
BSPATIL 42

43. The feature makes ULIP a marketable plan. The policyholder has an option of
withdrawals in case if need arises. ULIP provides easy access to the money as and
when the policyholder may requires. There are two types of withdrawal options.
a) Partial b) complete
The value of withdrawal reduces the death benefit by same amount. This facility
can be avail only after three full premium payment years are completed. The
minimum worth of this units and a maximum where in at least Rs. 10000/- worth
units remain in all the funds put together.
7) TAX PLANNING
This is another feature of ULIP that motives the policyholder to invest in the
insurance plans. They usually invest to avail the tax benefit. Regulation in India
allows tax benefits in the contribution paid under section 88, contribution paid for
health riders critical illness and major surgical is allowed tax benefits under
section 80D, as per the prevailing tax laws.
Maturity benefits are tax free under section 10(10) D, provided life come is at
Life rime regular Premium
least 5 times of the annual contribution paid.
Death benefit is tax free under section 10(10) d. Part of the Premium
Allocated
Premium towards the policy
With so many tax benefits available in one instrument ULIP tends to be an
intelligent tax-planning tool.
Working of a ULIP Plan This goes
Insurance to the
Allotment of Units
Charges Protection
a/c to
provide
against
the 3D
Effect
Various
Investment
Options. Facility Units that build up the
of withdrawals investment value
BSPATIL and investing 43

44. For Example
A client put in regular contribution of Rs.20, 000 /-. From this amount a % is deducted as
contribution.
Therefore if the contribution related expense is 40% - Rs.8000/- will be deducted as
contribution charges.
The amount that is now available is Rs.20000-8000=12000/-
Now, if the client who is available is aged 30 years were to take a life cover of 500,000/-
then mortality (1.50/- per thousand at the age of 30) charge of 750 /- will be deducted.
This amount will provide life cover to the policy. The remaining amount of –11250/- will
be invested in any one of them or all of them.
The Investment is shown in terms of units. Thus if client invests in debt fund and the
NAV of the debt fund is Rs. 15/-(market price) then the no. of units that the client will get
is 11,250/15=750. For this investment-fund management fee will be charged and the
charges for maintaining the policy an administrative charge are levied.
Are ULIPs similar to mutual funds?.
In structure, yes; in objective, no. Because of the high first-year charges,
mutual funds are a better option if you have a five-year horizon.
BSPATIL 44

45. But if you have a horizon of 10 years or more , then ULIPs have an edge.
To explain this further a ULIP has high first –year charges towards acquisition
(including agents commissions).
As a result, they find it difficult to outperform mutual funds in the five years.
But in the long term, ULIP managers have advantages over mutual funds managers.
Since policyholder premium come at regular intervals, investments can be planned
out more evenly.
Mutual fund managers cannot take a similar long term view because they have
bulk investors who can move money in and out of schemes at short notice.
Which is better, unit-linked or ‘Traditional plan’?
The two strong arguments in favor of unit-linked plans are that –the investor
knows exactly what is happening to his money and two ,it allows the investor to
choose the assets into which he wants his funds invested.
A traditional ‘with profits,’ on the other hands, is a black box and a policyholder
has little knowledge of what is happening. An investor in a ULIP knows how much
he is paying towards mortality, management and administration charges.
He also knows where the insurance company has invested the money. The investor
gets exactly the same returns that the fund earns, but he also bears the investment
risk. The transparency makes the product more competitive .So if you are willing to
bare the investment risk in order to generate a higher return on your retirement funds,
ULIPs are for you.
Traditional ‘with profits’ policies too invest in the market and generate the same
BSPATIL 45

46. Returns prevailing in the marker. But here the insurance company evens out returns
to ensure that policyholders do not lose money in a bad year. In that sense they are
safer. ULIPs also offer flexibility. For instance, a policyholder can ask the insurance
Company to liquidate units in his account to meet the mortality charges if he is unable
to pay any premium installment.
This eats into his savings, but ensures that the policy will continue to cover his
life.
Why do insurers prefer ULIPs?
Insurers love ULIPs for several reasons. Most important of all, insurers can
sell these policies with less capital of their own than what would be required if they
sold traditional policies.
In traditional ‘with profits’ policies, the insurance company bears the
investment risk to the extent of the assured amount .In ULIPs, the policyholder bears
most of the investment risk.
Since ULIPs are devised to mobilize savings, they give insurance companies an
opportunity to get a large chunk of the asset management business, which has been
traditionally dominated by mutual funds.
Are unit-linked insurance plans good?
Most insurers in the year 2004 have started offering at least a few unit-linked
plans . Unit-linked life insurance products are those where the benefits are expressed
BSPATIL 46

47. in terms of number of units and unit price. They can be viewed as a combination of
insurance and mutual funds.
The number of units that a customer would get would depend on the unit price
when he pays his premium. The daily unit price is based on the market value of the
underlying assets (equities, bonds, government securities, etc) and computed from the
net asset value.
The advantage of unit –linked plans is that they arte simple, clear, and easy to
understand. Being transparent the policyholder gets the entire upside on the
performance of his fund .Besides all the advantages they offer to the customers, unit-
linked plans also lead to an efficient utilization of capital.
Unit –linked products are exempted from tax and they provide life insurance.
Investor welcome these products as they provide capital appreciation even as the
yields on government securities have fallen below 6 percent , which has made the
insurers slash payouts.
According to the IRDA, a company offering unit-linked plans must give the
investor an option to choose among debt, balanced and equity funds. If you opt for a
unit-linked endowment policy, you can choose to invest your premiums in debt,
balanced or equity plans.
If you choose a debt plan, the majority of your premiums will get invested in
debt securities like gilts and bonds. If you choose equity, then a major portion of your
premiums will be invested in the equity market. The plan you choose would depend
on your risk profile and your investment needs.
BSPATIL 47

48. The ideal time to buy a unit-linked plan is when one can expect long term
growth ahead . This is especially so if one also believes that current market values
(stock valuations ) are relatively low.
So if you are opting for a plan that invests primarily in equity , the buzzing market
could lead to windfall returns. However , should the buzz die down , investors could be
left stung.
If one invests in a unit-linked pension plan early on , say when one is 25, one
can afford to take the risk associated with equities , at least in the plan’s initial stages.
However ,as one approaches retirement the quantum of returns should be subordinated to
capital preservation. At this stage , investing in plan that has an equity tilt may not be a
good idea.
Considering that unit-linked plans are relatively new launches, their short history
does not permit an assessment of how they will perform in different phases of the stock
market. Even if one views insurance as a long term commitment, investments based on
performance over such a short time span may not be appropriate.
Allianz Bajaj launches its first unit linked policy.
Allianz Bajaj Life Insurance Company has launched Unit Gain , the company’s
first unit linked policy. Unit Gain allows customers to combine the benefits of life
insurance with higher investment returns from equity and debt markets.
Unit Gain was launched with a choice of four funds to the customer- equity,
debt, balanced and cash funds. The cash funds comes with the guarantee that the value of
units in the fund will not go down.
BSPATIL 48

49. Unit Gain is one of the most flexible unit linked plans in the market, and allows the
customer to change the sum assured during the term of the policy to match their changing
life insurance requirements. Also the plan offers a premium holiday feature, where the
policy is kept in-force even when premiums are not paid as long as there are enough units
to cover charges.
The policy provides customers flexibility in paying additional premium through
single premium top-ups, as well as in increasing the level of regular premium in later
years (along with increase in income). In addition, the facility of cash withdrawals allows
the Bajaj Allianz ULIP’S products.
Bajaj Allianz ULIP’S products:
1) Unit Gain Regular Premium:
The Bajaj Allianz unit comes with a host of features to allow you to have the best
of all words –protection and investment with flexibility like never before.
Some of the features of this plan are:
 Guaranteed death benefits.
 Choice of 6 investment funds with flexible investment management you can change
funds at any time.
 Attractive investment alternative to fixed investment securities.
 Provision for full/partial withdrawal any time after 3 full years premiums are paid.
 Unmatched flexibility –to match tour charging needs.
How does the plan work:
BSPATIL 49

50. The premiums paid are invested in fund/funds of your choice (depending on the
allocation rate) &unit are allocated depending on the price of units for the fund/funds.
The value of your policy is the value of units that you hold in the fund/funds. The
insurance cover charges are deducted through monthly cancellation of units . The funds
administration charge and fund management charge are priced in the unit value.
 Minimum sum assured= 5 times the annual premium.
 Maximum sum assured =y times the annual premium where y will be as per the
following table.
Age 0-30 31-35 36-40 41-45 46-55 56-60
Group
Y 125 105 75 55 30 20
Important details of “Bajaj allianz unit gain RP” plan
Minimum age at entry: 0(risk commences at age 7, and ceases after age 70)
Maximum age at entry :60
The minimum age at entry for all additional benefits is 18 years.
The maximum age at entry for all additional benefits is 50 years.
All additional benefits are available till age 65.
2) Unit Gain Single Premium:
The bajaj allianz unit gain SP comes with a host of features to allow you to
have the best of all worlds- protection and investment with flexibility like never
before.
BSPATIL 50

51. Some of the feature of this plan are
Convenient single premium payment, with option to pay top-ups later.
100% of the single premium/top ups are allocated.
Guaranteed death benefits.
Choice of 6 investment funds with flexible investment management you can with
between funds at any time .
Attractive investment alternative to fixed interest securities.
Provision for full/partial withdrawal any time after the single premium is paid.
Unmatched flexibility – to match your changing needs.
How does the plan works?
100% of the single premium is invested in a fund/funds. The value of your choice
and unit are allocated depending on the price of units for the fund/funds the value of your
policy is the total value of units that you hold in the fund/funds . The insurance cover
changes are deducted through monthly cancellation of units. The funds administration
charge and fund management charge are pried in the unit value.
• Minimum sum assured =1.01 times the single premium.
• Maximum sum assures =y times the single premium where y will be as per the
following table.
Age 0-30 31-35 36-40 41-45 46-60 61-67
Group
Y 45 40 25 15 5 1.01
Important details of the “Bajaj allianz unit gain SP” plan:-
• Minimum age at entry :0(risk commences at age 7, and ceases after age 70)
BSPATIL 51

52. • Maximum age at entry :67
• Minimum single premium :Rs .25000.
• Minimum top-up :Rs 10000.
3) Unit Gain Plus Regular Plan:
The Bajaj allianz unit gain plus RP comes with a host of features to allow you
to have the best of all words – protection and investment with flexibility like never
before.
Some of the key feature of this plan are
 Guaranteed death benefit.
 Choice of six investment funds with flexible investment management you can
change funds at any time .
 Attractive investment alternative to fixed –interest securities.
 Provision for full/partial withdrawals any time after 3 full years premium are paid
 Unmatched flexibility –to match changing needs.
How does the plan work?
BSPATIL 52

53. The premium paid are invested in a fund or funds of your choice (depending
on the allocation rate) and units are allocated depending on the price of the units for
the fund or funds.
The insurance cover and administration charges are deducted through cancellation of
units. The fund management charge is prices in the unit value.
 Minimum sum assured = 5 times the annual premium.
 Maximum sum assured = y times the annual premium where y will be as per
the following table.
Age 0-30 31-35 36-40 41-45 46-55 56-60
Group
Y 125 90 60 40 20 15
Important details of the “Bajaj Allianz Unit Gain Plus RP” plan
 Minimum age at entry :0(Risk commences at age 7 and ceases after age 70)
 Maximum age at entry :60
 Minimum age at entry for all additional benefits is 18 years.
 The maximum age at entry for additional benefits is 50 years.
 All additional benefits are available till age 65.
4) Unit Gain Plus Single Premium Plan:
The bajaj allianz unit gain plus Sp comes with a host of feature to allow you to
have the best of all words – protection and investment with flexibility like never before.
Some of the key feature of this plan are
BSPATIL 53

54.  Convenient single premium payment, with option to pay top-ups later.
 98% of the single or top-ups are allocated.
 Guaranteed death benefit.
 Choice of five investment funds with flexible investment management you can
change funds at any time.
 Attractive investment alternative to fixed –interest securities.
 Unmatched flexibility – to match your changing needs.
 Provision for full or partial withdrawal any time after the single premium is paid.
How does the plan works ?
98% of the single premium is invested in a funds or funds of your choice and
units allocated depending on the price of units for the fund or funds . The value of
your policy is the total value of units that you hold in the fund or funds. The insurance
cover and fund administration charges are deducted through cancellation of units. The
funds management charge is priced in the unit value.
 Minimum assured =1.01 times the single premium.
 Maximum sum assured = y times the single premium where y will be as the
following table.
Age 0-30 31-35 36-40 41-45 46-60 61-69
Group
Y 45 35 20 10 5 1.5
Important details of the “Bajaj Allianz Unit Gain Plus SP” Plan
 Minimum age at entry :0(Risk commence at age 7,and ceases after age 70)
BSPATIL 54

55.  Maximum age at entry :69
 Minimum single premium :Rs. 25000.
 Minimum top-up :Rs .5000.
5)Unit Gain Life Pension plan:
With Bajaj Allianz ,you can take control of your future and ensure a retirement
you can look forward to. This plan has been be signed to take of your retirement and
insurance needs, there by providing you with a comprehensive solution for life time.
There are two packages choose from:
1. Unit gain life pension regular premium.
2. Unit gain life pension single premium.
Defending on the amount of premium you want to pay, you choose sum assure as per the
condition given below:
1. Minimum sum assured =5 times annual/1.01 times single premium.
2. maximum sum assured =y times the annual/single premium where y will be as per
the following table:
BSPATIL 55

56. Age group 18-30 31-35 36-40 41-45 46-55 55-60 61-65
Y for 125 90 60 40 20 15 10
regular
premium
Y for 45 35 20 10 5 5 1.5
regular
premium
How does the Bajaj Allianz Unit Gain Life Pension Plan Work?
The premium paid are invested in funds of your choice (depending on the
allocation rate) and unit are allocated depending on the price of unit for the fund or funds.
The value of your policy is the total value of units that hold in the fund or funds. The
insurance cover and administration charges are deducted through cancellation of units.
The fund management charge is priced in the unit value.
Important details of the “Bajaj Allianz Unit Gain Life Pension” Plan:
Minimum Maximum
Age of entry 18 65
Deferment period 5 40
Age at vesting 45 70
6) Unit Gain Easy Pension Plan:
With bajaj allianz , you can take control of your future and ensure a retirement you
can look for word to. There are two packages to choose form:
1. Unit gain easy pension regular premium.
BSPATIL 56

57. 2. Unit gain easy pension single premium.
How does the Bajaj Allianz Unit Gain Easy Pension Plan works?
The premium paid are invested in a fund/funds of your choice (depending on the
allocation rate) and units are allocated depending on the price of units for fund/funds. The
value of your policy is the total value of units that you hold in the fund/funds. The
administration are deducted through cancellation of units. The fund management is priced
in the unit’s value.
Important details of “Bajaj Allianz Unit Gain Life Pension” Plan:
Minimum Maximum
Age of entry 18 65
Deferment period 5 40
Age at vesting 45 70
BSPATIL 57

58. ORGANISATION CHART
2.ORGANISATION CHART
Bajaj Allianz Life Insurance Company
Bajaj Allianz Life Insurance
Group and Alternate
Agency Channel Bancassurance
Channel
Branches Standard Chartered Bank Group Employee Benefit
Satellite Satellite Satellite Syndicate Bank Corporate Agency
Centurion Bank Franchisee
Cosmos Bank Brokers
Jankalyan Sahakari Bank
BSPATIL 58
Jijamata Sahakari Co-op
Bank

59. ORGANISATION CHART OF THE BRANCH
BAJAJ ALLIANZ LIFE INSURANCE
CHANNEL BANC ASSURANCE CORPORATE
ZONAL SENIOR MANAGER
BRANCH
SATELLITE BRANCH
SALES TAAM MANAGER
INSURANCE CONSULTATIVE
BSPATIL 59

60. 3. SAMPLING:
Sampling: we are taken random sample
Sample size: 100 consumers
Sample unit: collection of data was made from customer that is respondents
4. RESEARCH DESIGN:
The research design chosen was exploratory in nature as it involved effectives
study to determine the awareness of ULIPs and its products since the population in Hubli
city is very vast. It is difficult to carry out 100% with in a limited time period. Hence
sample survey technique was adopted for the study. Fieldwork was carried out to collect
the necessary data (through schedule questions /personal interview ).
5. DATA COLLECTION METHODS:
a) Primary data :
A structural interview schedule/ questionnaire was used as a tool for
primary data collection from respondent.
b) Secondary data:
BSPATIL 60

61. Books Journals, magazines and websites.
6.MEASURING TOOLS:
Data code sheet
S/no Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13
1 D H A A A A D E A B A -
2 C E D A A B B D D C B B D
3 D G D A A C C D B A D B D
4 C H D A A D C C C B B A
5 D E D A A A A C B D A -
6 A A D A A A A B B A A -
7 C E A A B A B B A
8 D C A A B F B A
9 D B E B A B A A
10 C B B B B A A
11 D D D B B A B A
12 C B A A A A A C A A
13 B B B A B B B C E A
14 D B B B B A A
15 D G D A A A C C A B C
16 D E B A B A A B A A A
17 D E A A B A E B A A B D
18 C C E A A A B B A B C
19 C C E A A C C A A F B A
20 C B B B B A B A A B A
21 C B C A A A D B A A A
22 B H E A A B C B A A A
23 D H E A A B C A B A B C
24 D E E A A D C A B A A
25 D E B A A A C B D C B D
26 D H E A A B C D D B D A
27 C E E A A B D A B A A
BSPATIL 61

62. 28 A H A A A B C D A A B A
29 D E D A A B C A C F B D
30 D E E A B D C C D B E
31 A G E A A C D B B A A
32 D E A B B F B A
33 C A B A A C B A A A
34 D E E A A A B B A A A
35 D C D A A B E C A F A
36 D B B B B B A
37 D F B B B A B B
38 D E D A B A B A B A
39 D B B A B D E B A B B B
40 D B A B B A B A
41 D B B B A D E E B C A
42 D F A A B A C A A B C
43 D F E B B C F A
44 D E B A A A E D C A A B A
45 D H C A B C E B C F B C
46 A H E A B A A A C B D
47 B B D B B D B A
48 C G E A A D A B A D A
49 B D B A B A A A A B A
50 B E B A B C A B A A B A
51 C E D A B A A A A D B A
52 A E B A B A B B A B B A
53 C G D A A B B B A A A
54 B D A A B A A B B F A
55 D G B B B A A
56 D B A A A A B C B A A
57 C C D B B B B C
58 D E E A B A A A A C A
59 C A A A A A A C C A A
60 B D D A B A C C A D A
61 D B A B B A A
62 D B B B A D A A
63 C E B A B A A A D B B
64 D A B A A C A C A A A
65 B D A B A A B A
66 C H E A A A B B C B B A
67 A D E A A A C B D A
68 C F E A B A A A A B A
BSPATIL 62

63. 69 D D B B B A B A
70 C A B A B A A A B B A
71 D B A A B A C A A A
72 C A B A A A B C A A B A
73 D B B B B A B B
74 D A D B B A B A
75 C D B A A B B A A A A
76 D E A A A B A B B B
77 B B C A A B D C B D A
78 C D B A A A D C C D B C
79 A H E A A A C E B B A
80 C B C A A A B B B A A
81 A D E B B A A
82 C A B A A B B D A C B B D
83 C H C A A A D B C F A
84 D A D A A B B A B A B C
85 B E E B A A B A
86 C C C A B A A C C A
87 D D B B A A B B A
88 C D B A A A B A B A A
89 D F A A A B B D A D C B D
90 C H E A A B A B B A A
91 B B C B B B A D
92 A D B A B A E B D A
93 B G A A A D B B A B A
94 D A C A B A B A A B A
95 D C E B A A A B D
96 C H E A A C B D A D B A
97 D E A A B A A A A B D
98 D E D A B D B A C B A
99 C G D A A A E B A B B D
100 B C A A A D C B A D A
BSPATIL 63

64. BSPATIL 64

65. 1.What is your ratio of saving of the total income?
a) More then 60% b) 60% - 50%
c) 50% - 25% d) Less then 25%
> 60% 9%
60%-50% 13%
50%-25% 31%
<25% 47%
Total 100
SAVINGS
50% 47%
45%
40%
35% 31%
CUSTOMER 30%
25% Series1
RESPONSE
20%
15% 13%
9%
10%
5%
0%
> 60% 60%-50% 50%-25% <25%
Interpretation:
From the above graph it is clear that 9% of people saving more than
60%, 13% of people saving less than 60%, 31% of people saving less than 50%, 47% of
people saving less than 25%.
BSPATIL 65

66. 2.Your saving consist of.
a) Post office b) Bank F . D
c) Shares d) Land / Building
e) Life insurance f) Gold
g) Mutual fund h) All the above
Post Office 10%
Bank FD 20%
Shares 8%
Land & Building 13%
Life Insurance 23%
Gold 5%
Mutual Fund 8%
All the above 13%
Total 100
SAVING CONSIST
25% 23%
20%
20%
15% 13% 13%
CUSTOM ER
RESPONSE 10%
10% 8% 8% Series1
5%
5%
0%
Post Shares Life Mutual
Office Insurance Fund
Interpretation:
BSPATIL 66

67. From the above graph it is clear that, 10% of people saving in post office, 20% of
people savings in Bank FD, 8% of people savings in shares, 13% of people saving
consist land and building, 23% of people savings in Life Insurance, 5% of people saving
consist in gold,8% of people saving in Mutual Fund, 13% of people saving consist all the
above option.
3. What factor consist while making the policy.
a) Returns b) Safety
c) Liquidity d) Risk cover
e) All the above
Returns 20%
safety 29%
Liquidity 8%
Risk cover 19%
All the above 24%
Total 100
FACTOR CONSIST WHILE MAKING POLICY
Series1
29%
30%
24%
25% 20% 19%
20%
CUSTOMER
15%
RESPONSE
8%
10%
5%
0%
Returns safety Liquidity Risk All the
cover above
BSPATIL 67

68. Interpretation:
From the above graph it is clear that 20% of people wants returns, 29% of people
wants safety,8% of people wants liquidity, 19% of people wants risk cover, 24% of
people wants all the above option.
4. Have you invested money in life insurance?
a) Yes b) No
Yes 75%
No 25%
Total 100
MONEY INVESTED IN LIFE INSURANCE
75%
80%
70%
60%
50%
CUSTOMER
40% Series1
RESPONSE 25%
30%
20%
10%
0%
Yes No
BSPATIL 68

69. Interpretation:
From the above graph it is clear that 75% respondents invested their money in life
insurance, 25% respondents are not invested.
5. Are you aware of ULIP
a) Yes b) No (If no, skip to q no 11)
Yes 55%
No 45%
Total 100
AWARENESS OF ULIP
45%
Yes
No
55%
Interpretation:
BSPATIL 69

70. Above graph 55% of respondents are aware of ULIP,45% of respondents are not aware of
ULIP.
6. In which company you have invested your money?
a) LIC b) Bajaj Allianz
c) ICICI d) Others .
LIC 42%
BAJAJ ALLIANZ 17%
ICICI 8%
OTHERS 9%
BLANK 24%
TOTAL 100%
PEOPLE INVESTED THEIR MONEY IN
DIFFERENT COMPANIES
24%
42%
9%
LIC
BAJAJ ALLIANZ
ICICI
8%
OTHERS
BLANK
17%
Interpretation:
BSPATIL 70

71. Above graph shows 42% respondents invested their money in LIC, 17% in Bajaj
Allianz,8% in ICICI prudential, 9% in others and 24% of respondents are not responded
well.
7. How do you come to know ULIP?
a) Friends b) Agents
c) Newspapers/Magazines d) Banks
e) Others .
Friends 17%
Agents 18%
Newspaper/magazines 15%
Banks 8%
Others 7%
Blank 35%
Total 100%
BSPATIL 71

72. HOW PEOPLE KNOW THE ULIP'S
17%
Friends
35%
Agents
Newspaper/magzines
Banks
18% Others
Blank
7%
15%
8%
Interpretation:
The above graph shows that 17% of respondents know the ULIPS through friends,18%
of respondents through Agents,15% of respondents through News paper and Magazines,
8% of respondents know through banks, 7% of respondents know through others and
35% of respondents are not respondents well.
BSPATIL 72

73. 8. Which plan you have taken?
a) Endowment b) Money Back
c) Term Plan d) ULIP
e) All the above
Endowment 17%
Money Back 29%
Term Plan 16%
ULIP 8%
All the above 4%
BLANK 27%
Total 100%
RESPONDENT TAKEN DIFFERENT PLANS
29%
30% 27%
25%
20% 17% 16%
CUSTOMER
15%
RESPONSE Series1
8%
10%
4%
5%
0%
Endowment Term Plan All the
above
BSPATIL 73

74. Interpretation:
The above graph shows that 17% of respondents have taken Endowment
policy,29% of respondents have taken money back policy,16% of respondents have taken
term plan,8% of respondents have taken ULIP,4% of respondents have taken others, 27%
of respondents not taken.
9. Why you have chosen ULIP?
a) Higher Returns b) Liquidity
c) Life cover d) All the above
Higher returns 4%
Life cover 1%
Liquidity 2%
All the above 2%
Blank 91%
Total 100%
FACTOR CONSIST WHILE CHOOSING ULIP PLAN
100%
80%
60%
CUSTOMER 91%
RESPONSE Series1
40%
20%
4% 1% 2% 2%
0%
Higher Life Liquidity All the Blank
returns cover above
BSPATIL 74

75. Interpretation:
The above graph shows that 4% respondents wants Higher returns,1%
liquidity, 2% life cover, 2% all the above and 91% of respondents are not responded well.
10. What is the premium you are paying per annum?
a) 10000 b) 10000-25000
c) 25000-50000 d) 50000-100000
A 38%
B 17%
C 11%
D 3%
BLANK 31%
PREMIUM PAYING PER ANNUM
40% 38%
35% 31%
30%
25%
CUSTOMER
20% 17% Series1
RESPONSE
15% 11%
10%
5% 3%
0%
A B C D BLANK
BSPATIL 75

76. Interpretation:
The above graph shows that the 38% of respondents paying premium per annum less than
10,000, 17% respondents paying per annum between 10,000- 25,000, 11% respondents
paying per annum between 25,000-50,000, 3% respondents paying per annum between
50,000-100,000, blank is 31%.
1. What will influence your Financial Planning?
a) Discussion with Family Member
b) Tax Consultant/ C. A
c) Insurance consultant /Agents
d) Finance Magazines.
e) Web site of insurance or Finance company.
f) Any other Specify .
Discussion with FM 47%
Tax consultant/CA 22%
IC /Agents 7%
Finance Magazine 14%
Websites 1%
Others 9%
Total 100%
BSPATIL 76

77. FACTOR INFLUANCING FINANCIAL PLANNNING
9%
1%
14%
47%
7%
Discussion with FM
22% Tax consultant/CA
IC /Agents
Finance Magizine
Websits
Others
Interpretation:
The above graph factors influencing financial planning 47% influencing discussion
with family members, 22% tax consultant/CA, 7% Insurance Consultant/ Agents,14%
through finance magazines, 1% through web sites of insurance/ Finance
Company,9%through others.
BSPATIL 77

78. 12.In future are you interested investing money on ULIP?
a) Yes b) No
A 52%
B 48%
IN FUTURE PEOPLE WANT TO INVEST THEIR
MONEY ON ULIPs
52%
52%
50%
CUSTOMER 48%
RESPONCE Series1
48%
46%
A B
Interpretation:
The above graph 52% respondents are interested investing money on ULIPs in future,
48% respondents are not interested to invest money in ULIPs.
13. If no why?
BSPATIL 78

79. a) No Interest.
b) Lack of Advertisement.
c) Busy schedule.
d)Others .
A 23%
B 6%
C 8%
D 12%
BLANK 51%
IN FUTURE PEOPLE DONT WANT TO INVEST
THEIR MONEY
23%
A
B
51% 6% C
D
8% BLANK
12%
Interpretation:
The above graph 23% of respondents are no interested, 6% lack of advertisement, 8%
busy schedule, 12% of respondent says others and 51% of respondents are not responded
well.
BSPATIL 79

80. Findings
Through all this survey and analyzing what we found is that
 In the survey it was found that 47% of the respondents are saving less
than 25% income this indicates that nearly half of respondent in hubli
city are coming under middle class.
 As our research we found that 55% of people are aware of ULIP’s and
45% of respondent are not aware of ULIP’s so company has to give
more advertisement about the ULIP’s .
 Through Friends 17% of people are come to know about the ULIP’s
,through Agents 18%, 15% through Newspaper / Magazine , 8%
through Banks, Others 7% of respondent are come to know 35% of
people are not aware of ULIP’s so compare to all agents are playing
important role & company has to increase more number of agents.
 52% of respondent are interested to invest money in ULIP’s and 48% of
respondent are not interested to invest money in ULIP’s so 52% is a
potential customer so company can utilize that opportunity.
 42% of respondent are invested their money in LIC, 17% in Bajaj
Allianz, 8% in ICICI Prudential , 9% in others and 24% of people not at
invested.
 23% of respondent are not interested to invest their money in ULIPs ,
6% lack of advertisement, 8% busy schedule,12% of respondents said
others and blank 51%.
BSPATIL 80

81. LIMITATIONS
 The limitation of the project was that the study and the survey were conducted
in Hubli city only, the analysis and recommendations may not be fully
applicable to other cities.
 The time was not enough to study the vast and growing Life insurance sector in
Hubli city
Conclusion :
From the over all project and market survey it is clear that Bajaj Allianz Life Insurance
Co .Ltd is doing well but most of the people are not aware of ULIP’s .
But in the present threading competition they should do more then the present efforts in
the following fields.
1. Advertising campaign.
2. Trade promotion activity.
Recommendations
 Most of the respondents are not aware of Unit Linked Insurance Plan so
company has to give more advertisement about the ULIP’s.
 45% of respondents are not aware, which should be increased
by different medias like TV, Magazines, & News Paper.
BSPATIL 81

82.  The company has to provide proper training or marketing skills to
improve the marketability of products.
 Complete information should be provided regularly to the advisor as well as to the
investor.
 Bajaj Allianz Co should come out with more and more innovative schemes to
meet the requirement of every investor
 Company has to conduct meeting of their agents periodically to access the results
and progress of the agents efforts.
BSPATIL 82

83. BSPATIL 83

84. QUESTIONNAIRE
1.What is your ratio of saving of the total income?
a) More then 60% b) 60% - 50%
c) 50% - 25% d) Less then 25%
2.Your saving consist of.
a) Post office b) Bank F . D
c) Shares d) Land / Building
e) Life insurance f) Gold
g) Mutual fund h)All the above
3. What factor consist while making the policy.
a) Returns b) Safety
c) Liquidity d) Risk cover
e) All the above
4. Have you invested money in life insurance?
a) Yes b) No
5. Are you aware of ULIP
a) Yes b) No If no, skip goto Q no 11)
6. In which company you have invested your money?
a) LIC b) Bajaj Allianz [
c) ICICI d) Others .
BSPATIL 84