1. A PROJECT REPORT
ON
A STUDY ON CUSTOMER SATISFACTION OF
VEHICLE INSURANCE
AT
BAJAJ ALLIANZ PVT.LTD
DECLARATION
I hereby declare that the project report titled “A Study on
Customer satisfaction of vehicle insurance” submitted by me to the
department of business management, is a Bonafied work, under taken by me
and it is not submitted to any other University or Institution for the award of
any Degree/Diploma certificate any time before.
1
2. Signature of the Student
Name and Address of the Student:
Date:
ACKNOWLEDGEMENT
I would like to thank BAJAJ ALLIANZ GENERAL INSURANCE PVT
LTD. Hyderabad, for giving me an opportunity to do a project in the
company. Further I would like to extend my sincere thanks to Mr. SATISH
of Bajaj Allinaz for guiding me throughout the course of the project.
I am also thankful to Mr.BHARATH BHUSHAN SINGH, Marketing
Faculty, for his valuable advice and guidance throughout this project work.
2
3. I also thank my parents for their constant financial support, without
that it would not have been possible for me to complete the projects in
time.
A.Vinay Kumar
CONTENTS
CHAPTER NO Name of the concept PAGE
NO
I. Introduction of the topic 1
Objectives 2
Need of the study 3
Methodology 4-5
Limitation 6
II. Literature survey 7-15
III. Industry profile & Company Profile 16-48
3
4. IV. Data analysis and interpretation. 49-72
V. Findings 73-74
VI. Suggestions 75
VII. Conclusion 76
Annexure
Bibliography 77
Questionnaire 78-79
CHAPTER - I
4
5. INTRODUCTION:
Many organizations have not got a clue about the customers perceive the goods and
services they supply. Customer’s attitude to be that so long as people “buy” their products
then the products must be accepted.
Firstly, customer may buy a given product of services simply because there is no
other option and they would prefer to purchase what you are offering them to go out
altogether.
Secondly, the fact that a product or services may be accepted does not mean that it
will continue to sell. Competitors may see opportunities, customer expectations may
5
6. change customer tastes may move on. If standards don’t rise and service evolve and then
download sales will appear.
A worse situation arises when the organizations haven’t got a clue of the
customer’s perceptions but think they have. Another situation is when the organization
don’t have clue of their customers perception and don’t care either the org may believe that
it is in a monopoly situation and its customers can’t go else where. Sometimes
organizations believe that it know best what customer should want and therefore supply
them with a centrally designed product.
If resultant product or service has defects, then it is perceived to be a problem for
the customer. Some orgs solicit customer feed back or it way whether they like it or not
and then do nothing about it.
Finally we come to the point where we realize how important customer feed back is in the
case of organizations, which helps the orgs to determine how efficiently it is solving the
customer and determine customer satisfaction
Objectives of Study
• To know about the level of customers satisfaction with services, provided by Bajaj
Allianz GIC company.
• To analyze the various types of services provided by the insurance company.
• To study the different media channel through which the company makes the
consumers aware of their products
6
7. • To evaluate the performance of Bajaj allianz GIC company in focus of customer
satisfaction on vehicle insurance in Hyderabad.
Need of the study:
• The current study intends to know the customers satisfaction of Bajaj Allianz.
• To increase the sales.
• To study the customer satisfaction of vehicle insurance.
7
8. • To increase the satisfaction of insurance.
• To motivate the number of customers to purchase the Bajaj Allianz Vehicle
Insurance.
Methodology:
After the objective of the study has been clearly stated, the next step in formal
research project is to determine the sources from which the data is required to be collected.
8
9. The data collection is an interesting aspect of the study. For the purpose of achieving data
effectively the information consist of two kinds of data.
• Primary data.
• Secondary data.
The primary data are those, which are collected freshly and for the first time , from the
customer directly.
The secondary data are those which have already been collected by someone or else which
have been passed through statistical process.
Sampling Technique:
The sampling technique used in this servey is random sampling. First a sample of 100
respondents were from different locations randomly selected from the population of
Hyderabad.
Collection of Primary data:
Primary data has been collected directly from the customers of various age groups by using
the Questionnaire method.
Customers are often reluctant to take the time to respond the surveys.
For this, the questionnaire is made interesting, objective, unambiguous and easy to
complete truthfully and completely. In interview, oral discussion is used as a tool for data
collection.
Secondary data:
These are collected from the compendiums, journals, annual reports, manuals,
organization charts, materials from net and the theoretical concept compiled from various
books has been properly verified for the relevance of the study.
9
10. Limitations:
In spite of honest and sincere efforts there are several limitations both statistical & non
statistical ,which are stated below.
• The period of study was only 60 days.
• The study was confined to Hyderabad city only.
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11. • The general limitation of human behavior is to be ignored
• Our all conclusions can not be drawn immediately as the sample size taken in very
small when compared to total sample size of Hyderabad city.
• Some respondents are unwilling to answer the various questions.
CHAPTER - I I
11
12. Customer Satisfaction
Many organizations have not got a clue about the customers perceive the goods and
services they supply. Customer’s attitude to be that so long as people “buy” their products
then the products must be accepted.
12
13. Firstly, customer may buy a given product of services simply because there is no
other option and they would prefer to purchase what you are offering them to go out
altogether.
Secondly, the fact that a product or services may be accepted does not mean that it
will continue to sell. Competitors may see opportunities, customer expectations may
change customer tastes may move on. If standards don’t rise and service evolve and then
download sales will appear.
A worse situation arises when the organizations haven’t got a clue of the
customer’s perceptions but think they have. Another situation is when the organization
don’t have clue of their customers perception and don’t care either the org may believe that
it is in a monopoly situation and its customers can’t go else where. Sometimes
organizations believe that it know best what customer should want and therefore supply
them with a centrally designed product.
If resultant product or service has defects, then it is perceived to be a problem for
the customer. Some orgs solicit customer feed back or it way whether they like it or not
and then do nothing about it.
Finally we come to the point where we realize how important customer feed back is in the
case of organizations, which helps the orgs to determine how efficiently it is solving the
customer and determine customer satisfaction. This feed back answers the following
questions to find out.
1. Who are your customers?
2. Where are they likely to be your customer?
3. What does your customer want?
13
14. 4. How does your customer fell?
5. What does your customer think?
6. How can you make your customer feel valued?
7. What sort of initiatives would your customers appreciate?
8. What can you do keep your customers?
9. How can you give yourself a competitive advantage so as far as your customers are
concerned?
According to Kotler “Customer satisfaction is the level of a person felt state resulting from
comparing a products perceived performance in relation to the person’s expectations”.
Thus satisfaction levels are a function of the deference between the perceived performance
and expectation. A customer one of the three board levels of satisfaction as follows.
If performance fails short of expectations customer if dissatisfied
If performance matches expectations/customer is satisfied.
If performance is grater then expectations customer is highly satisfied Pleased or delighted.
Expectations of a buyer are formed on any of the following ways.
Buyer past experience.
Statements by friends
Associates
Marketer
Promise
Companies seeking to win in today’s markets track their customer’s expectations,
perceived company performance and customer satisfaction.
They must monitor the aspects of their competitors as well.
14
15. They key to customer retention is customer satisfaction a satisfied customer is one who:
Buy more and stays loyal, longer.
Buys additional products as the company introduces and upgrades products
Pays less attention to competing brands and advertisement
Fewer prices sensitive
Offers products or services, ideas to company
Costs less to serve the customers so transactions are routed
Thus a company would be wise to regularly measure customer satisfaction company
should enquiry from its recent buyers and determine how many are
Highly satisfied
Somewhat satisfied
Indifferent
Some what dissatisfied
Highly dissatisfied
It should find out the major factors in customer satisfaction and dissatisfaction and use this
information to improve its performance.
A customer oriented would track its customer satisfaction level each period and set
improvement goals for customer oriented company. Customer satisfaction is both a goal as
well as marketing tool. Companies that achieve high customer satisfaction rating make
sure that their target market know it; Companies can maximize customer satisfaction in the
following manner:
By lowering price or increasing its service (this may result in lower profile).
15
16. The company might be able to increase in profitability in other ways, such as improving
manufacturer or inverting more in research and development.
The company as many stock holders including employees, dealers and stock holders.
Spending more to increase customer satisfaction would direct funds from increasing
satisfaction of their partners.
Ultimately, the company must operate on the philosophy that it trying to deliver a high
level of customer satisfaction. Subject to delivering at least acceptable levels of satisfaction
to the other stockholders with in the constrains of its total resources. Here we see that an
org has to look n the above aspects before it really sets on the mission of maximizing
customer satisfaction.
Customer satisfaction is the extent to which a product perceived performance marches
buyer’s .Customer satisfaction with a purchase depends on how well products
performance lives up to the expectation. It is the key influence on future buying behavior.
Satisfied customers often switch expectations, the customers are highly satisfied or
delighted.
Smart companies aim to delight customers by promising only what they can deliver, then
delivering more than they promise. Highly satisfied customers produce several benefits for
the company. Satisfied customers are fewer prices sensitive. They talk favorably to others
about the company and its products and remain loyal for a longer period. However, the
relationship between customer satisfaction and loyalty varies greatly across industries and
competitive situations.
16
17. The interaction between expectation and actual product performance produces satisfaction
or dissatisfaction. Many marketers go beyond merely meeting the expectations for
customers they aim to delight the customers.
A dissatisfied customer responds differently. Where as on average a satisfied customer
tells 3 people about the good product experience, a dissatisfied customer gripes to 11
people . Therefore a company would be wise to measure customer satisfaction regularly.
Need and goal for customer satisfaction:
Most marketers see the goal of marketing as those of maximizing not consumption but
customer satisfaction every company exist because they produce goods or services as
required by the customer. So it is very important that these which the company produces
should satisfy the needs of customers.
Factors affecting customer satisfaction:
Sales support
Service support
Invoicing and toner supply
The principle objective of the study is to examine the improvement in customer
satisfaction.
To examine and analyses the reason for customer dissatisfaction if any and other
suggestions for improvement. To analyze the competitors services and their degree of
command in the market.
Why customer satisfaction:
Traditionally it was thought that keeping customers happy be achieved by producing high
quality products, where quality was defined by the company internal standards.
17
18. However, it is now recognized that a company’s competitiveness is jointly determined by
its external quality which is the customers own judgment of the products and services of a
company and internal quality
There is considerable evidence that satisfied customers are with positive perceptions are
loyal customers. That is they buy more, more often and are willing to any pay more higher
prices. Also to the extent that customers view the company’s performance as being high
quality. They may also recommend it to others. On the other hand, dissatisfied customers
are a powerful source of negative word of mouth.
Thus customer perceived quality an important determined of market share for a company.
Thus measuring and improving customer’s quality perceptions held achieved the
company’s objectives of increased profitability and market share.
It is essential to understand the dynamics of our relationship with our customers or achieve
or maintain out long term business success.
The company must therefore have reliable measure of customer satisfaction and manage
customer expectations. Companies world wide have used customer satisfaction
measurement as a strategic and tactical tool for bringing out change in customer
perceptions improvement in a day service delivery to great financial advantage.
To maximize our business and maintain and lead over our competitors, we msut have a
committed customer base who will back that commitment with loyalty (both in buying in
our service centers).
This is what survey attempts at achieving.
The four fundamentals of customer satisfaction:
a) Variables Related To The Products / Service Itself:
18
19. What you actually do for customer is going to be the key determines of customer
perception. In this case we see that the design of the products /service is most important.
The design of product / service affects customer satisfaction in two ways.
The design sends a message to he customer about the orgs basic values especially
concerning the trade offs between cost and customer. Little is more damaging to customer
satisfaction than users perceiving that costs savings have been made a their expenses.
Design can enhance or resist the orgs ability to keep customer happy during and often the
sales. A strong successful design increase confidence of front staff, which a poor design
makes them defensive, bad design places constraints on distribution channel choice, it can
also to the cost and difficulty in providing after sales support services.
b) Variables Related To Sales And Promotion:
Three factors affect customer satisfaction area.
Message: That helps to share customer ideas about the product or service benefits beore
they have experienced them in use.
Intermediaries: Employee of the org to act on its behalf Ex: Brokers.
Attitudes: Every one in the frontline roles.
Ex: Receptionist etc. like.
Courtesy and helpfulness
Level of technical knowledge
Are they interested in the needs of the customer or merely selling?
c) Variables Related To After Sales:
This significant aspect with regard to after sales
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20. Support services covering traditional after sales activity such as warranties, user training
etc.
Feedback and restitution – the way org handle complaints etc.
d) Variables Related To Organization Culture:
This depends on the org if it behaves in maximizing customer satisfaction hereby paying
services to it. One of the must be careful to distinguish between formal and informal
aspects of separate culture in this regard. Formal values will be only meaningful if they
supported by the right informal culture and these develop over time.
Extent and manner of service management involvement
Degree to wish senior management practice leadership
Consistency with which customer care policies are implemented
Commitment of middle management
Existence of reward system
It is usually these informal values that determine that the true measure of orgs intention
towards its customer.
Methods of tracking and measuring customer satisfaction:
Complaints suggestions system:
A customer centered org would male it easy for it’s customers to deliver suggestions and
complaints e.g. installing suggestion boxes, questionnaire.
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21. Customer Satisfaction Survey: A Company must not conclude that it can get a full
picture of customer suggestions system.
Responsive companies obtain direct measure of customer satisfaction by conducting
periodic surveys. They send questionnaire or make telephone calls to find out how they
feel about the rating aspects of the company’s performances. They will also solicit buyer
view on competitor’s performance.
Ghost Shopping: Another way to measure customer satisfaction is to hire persons to
pose as potential buyer’s to report their findings okay strong and weak point they
experienced in buying the company and competitor’s products. Managers can themselves
pose as shoppers and experience first hand, the treatment they receive as customer.
Lost Customer Analysis: A Company should contact customer, who have stopped
buying, or who have switched to another suppler to learn what happened. Not only it is
important to conduct exit interview but also to monitor the indication that the company is
falling to satisfy it customer
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22. CHAPTER - III
PROFILE OF THE INDUSTRY
&
PROFILE OF THE COMPANY
INDUSTRIAL PROFILE
Insurance:
22
23. A state monopoly has little incentive to innovative or offers a wide range of
products. It can be seen by a lack of certain products from LIC’s portfolio and lack of
extensive risk categorization in several GIC products such as health insurance. More
competition in this business will spur firms to offer several new products and more
complex and extensive risk categorization.
It would also result in better customer services and help improve the variety and
price of insurance products. The entry of new players would speed up the spread of both
life and general insurance. Spread of insurance will be measured in terms of insurance
penetration and measure of density.
With the entry of private players, it is expected that insurance business roughly
400 billion rupees per year now, more than 20 per cent per year even leaving aside the
relatively under developed sectors of health insurance, pen More importantly, it will also
ensure a great mobilization of funds that can be utilized for purpose of infrastructure
development that was a factor considered for globalization of insurance.
More importantly, it will also ensure a great mobilization of funds that can be
utilized for purpose of infrastructure development that was a factor considered for
globalization of insurance.
With allowing of holding of equity shares by foreign company either itself or
through its subsidiary company or nominee not exceeding 26% of paid up capital of Indian
partners will be operated resulting into supplementing domestic savings and increasing
economic progress of nation. Agreements of various ventures have already been made to
be discussed later on in this paper.
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24. It has been estimated that insurance sector growth more than 3 times the growth of
economy in India. So business or domestic firms will attempt to invest in insurance sector.
Moreover, growth of insurance business in India is 13 times the growth insurance in
developed countries. So it is natural, that foreign companies would be fostering a very
strong desire to invest something in Indian insurance business.
Most important not the least tremendous employment opportunities will be created
in the field of insurance which is burning problem of the present day today issues.
General insurance:
British rule also introduced general insurance in India. Initially, this business was
conducted through British and other foreign insurance companies. The first general
insurance company in India ‘TRITAN’ general insurance company limited’ was
established at Calcutta in 1950. the first such type of company was established by Indians
in Mumbai in 1907 with the name ‘Indian mercantile insurance company limited’ at the
time of independence, about 40% of the total general insurance business in India was done
buy the British and other foreign insurance companies, but after independence this
percentage continuously declined. In 1971, the government took over the management of
all general insurance companies.
General insurance business in the country was nationalized with effect from 1
January, 1973 by the general insurance Business (Nationalization) act, 1972.
More than 100 non-life insurance companies including branches of foreign companies
operating with in the country were amalgamated and grouped into four companies, viz., the
national insurance company limited the new India assurance company limited the oriental
24
25. insurance company limited and the united India insurance company limited with head
office at Kolkata, Mumbai, New Delhi and Chennai, respectively. General insurance
corporation (GIC) which was the holding company of the four public sector general
insurance companies has since been delinked from the later and has been approved as the
‘Indian Reinsure’ since 3 November 2000.the share capital of GIC and that of the four
companies are held by the government companies registered under the companies act.
The general insurance business has grown in spread and volume after
nationalization. The four companies have 2,699 branch offices, 1,360 divisional offices
and 92 regional offices spread all over the country. GIC and its subsidiaries have
representation either directly through branches or agencies in 16 countries and through
associate/locally incorporated subsidiary companies in 14 other countries.
The net profit of the industry during 2001-200 amounted to 12,229 crore, as against
Rs.10, 772 crore during 2000-2001 representing a growth of 1352 percent over the
premium income of last year.
Before nationalization, insurance business was centralized in urban areas only. GIC
with its central office in Pune and seven zonal offices at Mumbai, Kolkata, Delhi, Chennai,
Hyderabad, Kanpur and Bhopal operates through 100 divisional offices in important cities
and 2048 branch offices. As on 31 march, 2003 GIC had 9.88 lakh agents spread over the
country. GIC also entered the international insurance market and opened its offices in
England, Mauritius and Fiji.
The corporation has registered a joint venture company-life insurance corporation
(Nepal) limited in Kathmandu on 26 December, 2000 in collaboration with a local
25
26. industrial group. An off-shore company GIC (Mauritius) off-shore limited has also been
registered on 19 January, 2001 to tap the Africian insurance market.
The total business of GIC during 2002-2003 was Rs 1,76,088 crore a sum assured
under 239.3 lakh policies. GIC group insurance business during 2002-2003 was Rs.1645
crore providing covers to 18.32 lakh people.
Life insurance:
The Britisher’s introduced life insurance to India. A British firm in 1818
established the oriental life insurance company at Calcutta. In 1823, Bombay life insurance
company was established at Mumbai and in 1829 madras equitable life insurance society
was established at madras(Chennai). Till 1871, these companies collected 15-20 percent
more premiums from Indian as they treated Indian’s living standard below the normal, in
1871, Bombay mutual life assurance society was established which started life insurance of
Indians on general premium rate for the first time. Indian insurance company act was
implemented which aimed at collecting statistical information related to insurances of
Indians and foreigners. In 1938, all previous acts were integrated and insurance act 1938
came into force. After independence, this act was amended in 1950. Till 1956, 154 Indian,
16 non-indian insurance companies and 75 provident committees were working in life
insurance business of the country.
On January 19, 1956 central government tool over the charge of all these 245
Indian and foreign insurance companies and on September 1, 1956 these companies were
nationalized. Under an act passed by the parliament on September 1, 1956 life insurance
Corporation of India was established with the capital of Rs. 5 crores given by the
government of India. Malhotra committee, constituted off making recommendations for
26
27. insurance sector, in its report submitted in January 1994, recommended to enhance the
capital base of Rs. 5 crore to Rs. 200 crore fro LIC , but the Government did not accept it.
LIC was established to spread the message of life insurance savings for nation
building activities. Keeping in view the recommendations of administrative Reform
commission. Indian life insurance corporation accepted a few important objectives in 1974,
which are as follows: to extend the sphere of life insurance and to cover every person
eligible for insurance under insurance umbrella. Special attention will be provided to give
life insurance cover to economically weaker section of the society on appropriate and
bearable cost secondly, to mobilize maximum savings of the people by making insured
savings more attractive thirdly, to ensure economic use of resources collected from policy
holders and finally, under changing social and economic structure of the country efforts
will be made to meet the life insurance requirements of Various stratas of the society.
Reforms in insurance sector:
Insurance sector constitutes an important segment to financial market in India and
plays a predominant role in the formation of capital in the country. The reforms in the
insurance sector started with the enactment of insurance regulatory and development
authority act 1999. The act paved the way for the entry of private insurance companies into
the insurance market and also constitution of insurance Regulation and Development
Authority (IRDA).
Insurance Regulatory and Development Authority:
27
28. The insurance regulatory and development authority was constituted on 19 April
2000 to protect the interest of the holders of insurance policies and to regulate, promote
and ensure orderly growth of the insurance industry. The authority consists of a
chairperson, four whole-time members and part-time members.
For regulations the insurance sector, the authority has been issuing regulations covering
almost the entire segment of insurance industry namely, regulation on insurance agents,
solvency margin, re-insurance, registration of insurers, obligation of insurers to rural and
social sector, accounting procedure, etc.
Insurance (amendment) act, 2002:
The government, functioning of the opened up insurance sector, has enacted
insurance act, 2002. The act relates to introduction of brokers as intermediaries, allowing
more flexile in the eligibility qualification for corporate agents, allowing more flexible
mode of payment of premium through credit cards, smart cards, over interknit, etc. Change
in the allocation of surplus between share holders and policy holders, direct entry of co-
operatives in the insurance sector and some other consequential amendments which are of
a technical nature for the smooth functioning of the opened up sector.
General Insurance Business (Nationalisation) Amendment Act, 2002:
With the enactment of IRDI act, 1999 it was necessary to nominate Indian re-
insurer under insurance act, 1938. The government decided that general insurance
28
29. companies should be declared as Indian Re-insurer. Since under the act, a re-insurer cannot
underwrite general insurance business.
Recommendations of Malhotra Committee for improving insurance
sector:
The government of India constituted a committee for recommending
improvements in insurance sector under the chairmanship of Dr. R. N. Malhotra, Ex-
Governer of RBI, in April 1993. On January 7, 1994 the committee submitted its
recommendations to the finance minister. Some of the important recommendations are as
follows.
Liberalization of insurance industry:
The committee has recommended for liberalizing insurance industry:
The private sector should also be permitted in insurance sector, but the same
company should not permitted to perform both life insurance and general insurance
business.
The minimum paid-up capital for the now company should be Rs. 100 crore
included a minimum subscription of 26% and maximum of 40% from promoters.
No other equity holder, excluding the promoters of private insurance companies,
Should be granted equity share exceeding 1% of total equity.
Co-operative societies at state level should be permitted to perform business with
the minimum paid-up capital of Rs.100 crore
29
30. Foreign insurance companies should be permitted to operate in India on selective
basis and they should be granted permission only of they perform business by establishing
a joint enterprise with Indian promoters.
Restructuring of insurance industry:
The committee also put recommendations for restructuring insurance
industry:
All the four associate companies of GIC should be granted permission to perform
their business independently and GIC should work only as Reinsurance company.
The existing share capital of GIC should be increased from Rs. 107.5 crore to Rs.200
crore, which should included 50% share of the government and the rest shares should be
opened for the general public (through a certain percentage of share should be reserved for
the employees of the corporation)
The existing paid-up capital for all associate companies of GIC (which is at present
Rs.40 crore for every company and fully financed by GIC) should be increased up to
Rs.100 crore. The capital of all these companies should include the government share of
50% and the remaining share should be opened for the general public.
The committee also recommended to increase the paid-up capital of LIC form
existing level of Rs.5 crore to Rs.200 crore (again 50% for the government and rest for the
public)
30
31. Regulation of insurance business:
The committee has put following recommendations for regulation insurance
business
All old and new insurance companies should be regulating under insurance act.
Controller of insurance should be given all the responsibilities under insurance act.
Insurance regulatory authority (IRA) should be established in insurance sector on
the lines of SEBI and IRA should be granted complete functional autonomy.
IRA should have a permanent source for financing its activities and for this IRA should be
permitted to charge a levy of 0.5% on annual incomes of insurance companies.
Rural insurance:
New insurance companies entering into insurance industry should perform a
minimum predetermined insurance in rural sector and they should attain this limit
compulsorily.
Postal life insurance should be used to promote life insurance business in rural areas.
Insurance surveyors:
License system for insurance surveyors should be abolished and insurance
companies should be granted permission to recruit the surveyors of their own
At present, any claim of Rs.20,000 or above comes under the enquiry of the
surveyor. The committee has recommended extending this minimum limit on Rs.1 lakh.
Insurance companies should be permitted to settle the claims upto Rs.1 lakh on primary
survey basis.
Insurance today:
31
32. In 1993, Malhotra Committee, headed by former Finance Secretary and RBI
Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and
recommend its future direction. The Malhotra committee was set up with the objective of
complementing the reforms initiated in the financial sector.
With the setup of Insurance Regulatory Development Authority (IRDA) the
reforms started in the Insurance sector. It has became necessary as if we compare our
Insurance penetration and per capita premium we are much behind then the rest of the
world. The table above gives the statistics for the year 2000.
With the expected increase in per capita income to 6% for the next 10 year and with
the improvement in the awareness levels the demand for insurance is expected to grow. As
per an independent consultancy company, Monitor Group has estimated a growth form
Rs.218 Billion to Rs.1003 Billion by 2008. The estimations seems achievable as the
performance of 13 life Insurance players in India for the year 2002-2003 (up to October,
based on the first year premium) is Rs.66.683 million being LIC the biggest contributor
with Rs. 59,187 million. As of now LIC has 2050 branches in 7 zones with strong team of
5,60,000 agents.
Impact of globalization:
The introduction of private players in the industry has added colours to the dull
industry. The initiatives taken by the private players are very competitive and have given
immense competition to the on time monopoly of the market LIC. Since the advent of the
private players in the market the industry has seen new and innovative steps taken by the
players in the sector. The new players have improved the service quality of the insurance.
32
33. As a result LIC down the years have seen the declining in its career. The market share was
distributed among the private players.
Though LIC still holds 75% of the insurance sector the upcoming nature of these
private players are enough to give more competition to LIC in the near future. LIC market
share has decreased from 95% (2002-03) to 81% (2004-05). The following company holds
the rest of the market share of the insurance industry.
Present scenario of globalization:
In a tough battle to expand market shares the private sector life insurance industry
consisting of 14 life insurance companies at 26% have lost 3% of market share to the state
owned Life Insurance Corporation (LIC) in the domestic life insurance industry in 2006-
07. According to the figures released by Insurance Regulatory & Development Authority,
the total premium of these 14 companies have shot up by 90% to Rs 19,471.83 crore in
2006-07 from Rs 10, 252 crore.
Though ICICI Prudential Life Insurance remained as the No 1 private sector life
insurance company during the year. Bajaj Allianz overtook ICICI Prudential in terms of
monthly market share in March, for the first time ever. Bajaj's market share among private
players in non-single premium for March stood at 29.1% vs. ICICI Prudential's 23.8%.
Bajaj gained 4.6 percentage point market share among private sector players for FY07.
Among other private players, SBI Life and Reliance Life continued to do well, each
gaining 4% market share in FY07. SBI Life's growth was driven by increasing
contribution from ULIP premiums. Another notable developments of the 2006-07
performance has been the expansion of retail markets by the life insurance companies.
33
34. Bajaj Alliannz Life insurance has added 20 lakh policies while ICICI Prudential has
expanded over 19 lakh policies during the year.
With the largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per
cent annually and presently is of the order of Rs450 billion. Together with banking
services, it adds about 7 per cent to the country’s GDP.
Gross premium collection is nearly 2 per cent of GDP and funds available with LIC
for investments are 8 per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover while
health insurance and non-life insurance continues to be below international standards. And
this part of the population is also subject to weak social security and pension systems with
hardly any old age income security. This it is an indicator that growth potential for the
insurance sector is immense.
A well-developed and evolved insurance sector is needed for economic
development as it provides long term funds for infrastructure development and at the same
time strengthens the risk taking ability. It is estimated that over the next ten years India
would require investments of the order of one trillion US dollar. The Insurance sector, to
some extent, can enable investments in infrastructure development to sustain economic
growth of the country.
Challenges before the industry:
34
35. New age companies have started their business as discussed earlier. Some of these
companies have been able to float 3 or 4 products only and some have targeted to achieve
the level of 8 or 10 products. At present, these companies are not in a position to pose any
challenge to LIC and all other four companies operating in general insurance sector, but if
we see the quality and standards of the products which they issued, they can certainly be a
challenge in future. Because the challenge in the entire environment caused by
globalisation and liberalization the industry is facing the following challenges.
The existing insurer, LIC and GIC, have created a large group of dissatisfied
customers due to the poor quality of service. Hence there will be shift of large number of
customers from LIC and GIC to the private insurers.
LIC may face problem of surrender of a large number of policies, as new insurers
will woo them by offer of innovative products at lower prices.
The corporate clients under group schemes and salary savings schemes may shift
their loyalty from LIC to the private insurers.
There is a likelihood of exit of young dynamic managers from LIC to the private
insurer, as they will get higher package of remuneration.
LIC has overstaffing and with the introduction of full computerization, a large
number of the employees will be surplus. However they cannot be retrenched. Hence the
operating costs of LIC will not be reduced. This will be a disadvantage in the competitive
market, as the new insurers will operate with lean office and high technology to reduce the
operating costs.
35
36. GIC and its four subsidiary companies are going to face more challenges, because
their management expenses are very high due to surplus staff. They can’t reduce their
number due to service rules.
Management of claims will put strain on the financial resources, GIC and its
subsidiaries since it is not up the mark.
LIC has more than to 60 products and GLC has more than 180 products in their
kitty, which are outdated in the present context as they are not suitable to the changing
needs of the customers. Not only that they are not competent enough to complete with the
new products offered by foreign companies in the market.
Reaching the consumer expectations on par with foreign companies such as better
yield and much improved quality of service particularly in the area of settlement of claims,
issue of new policies, transfer of the policies and revival of policies in the liberalized
market is very difficult to LIC and GIC.
Intense competition from new insurers in winning the consumers by multi-
distribution channels, which will include agents, brokers, corporate intermediaries, bank
branches, affinity groups and direct marketing through telesales and interest.
The market very soon will be flooded by a large number of products by fairly large number
of insurers operating in the Indian market.The existing level of awareness of the consumers
for insurance products is very low. It is so because only 62% of the Indian population is
literate and less than 10% educated. Even the educated consumers are ignorant about the
various products of the insurance.
The insurers will have to face an acute problem of the redressal of the consumers,
grievances for deficiency in products and services.
36
37. Increasing awareness will bring number of legal cases filled by the consumers against
insurers is likely to increase substantially in future.
Major challenges in canalizing the growth of insurance sector are product
innovation, distribution network, investment management, customer service and education.
Essentials to meet the challenges:
Indian insurance industry needs the following to meet the global challenges
Understanding the customer better will enable insurance companies to design appropriate
products, determine price correctly and increase profitability.
Selection of right type of distribution channel mix along with prudent and efficient FOS
[Fleet On Street] management.
An efficient CRM system, which would eventually create sustainable competitive
advantages and build a long-lasting relationship
Insurers must follow best investment practices and must have a strong asset management
company to maximize returns.
Insurers should increase the customer base in semi urban and rural areas, which
offer a huge potential.
Promoting health insurance and using e-broking to increase the business.
37
38. Group of companies:
The group comprises of 27 companies and was founded in the year 1926. The companies
in the group are:
Bajaj Auto Ltd. Mukand International Ltd.
Mukand Ltd. Mukand Engineers Ltd.
Bajaj Electricals Ltd. Mukand Global Finance Ltd.
Bajaj Hindustan Ltd. Bachhraj Factories Pvt. Ltd.
Maharashtra Scooters Ltd. Bajaj Consumer Care Ltd.
Bajaj Auto Finance Ltd. Bajaj Auto Holdings Ltd.
Hercules Hoists Ltd. Jamnalal Sons Pvt. Ltd.
Bajaj Sevashram Pvt Ltd. Bachhraj & Company Pvt. Ltd.
Hind Lamps Ltd. Jeevan Ltd.
Bajaj Ventures Ltd. The Hindustan Housing Co Ltd.
Bajaj International Pvt Ltd. Baroda Industries Pvt Ltd.
Hind Musafir Agency Pvt Ltd. Stainless India Ltd.
Bajaj Allianz General Insurance Company Ltd. Bombay Forgings Ltd.
Bajaj Allianz Life Insurance Company Ltd. -
COMPANY PROFILE
Bajaj Allianz General Insurance Company Limited, one of India's leading private
general insurance companies, reported a 50 percent increase in gross premium income to
12,850 million rupees (234 million euros) excluding service tax for its business year 2005-
6, ending March 31. Net profit grew 9.8 percent to 516 million rupees (9 million euros)
Bajaj Allianz General Insurance is aiming for accelerated market penetration in
future. "Going forward, the company's focus will continue to be on growth with
38
39. underwriting profits, and preparing ourselves for the free pricing scenario from 2007
onwards," said Kamesh Goyal, CEO.
The company, a joint venture company between Bajaj Auto Limited, a leading
Indian manufacturer of two- and three-wheeler vehicles and the Allianz Group, issued 3.9
million policies over the twelve-month period, the highest rate among private insurers. Its
claim settlement ratio reached 93 percent.
Growth follows the company's refocus on customer needs, a program which started
two years ago. "Our basic promise is 'Jaisi Jaroorat Vaisa Insurance' – insurance meeting
the customers' needs," said CEO Sam Ghosh. "We focus on what customers want and not
what we want to sell. We let customers decide which channel they are comfortable to buy
from."
"Our end objective is to have satisfied customers and satisfied customers are
drivers in the life insurance business more than anything else," continued Ghosh. "This
focus has brought us so far so rapidly and we are sure this focus will help up maintain our
leadership as well."
Diverse range of customers:
The company has identified flexible products which are suitable for Indians' needs.
It caters for more than 290 segments of consumers, stemming from diverse religious,
cultural and educational backgrounds. It also offers more sophisticated products for astute
investors, as well as an ethical fund, which takes into account religious guidelines and
environmental concerns. It entitled its innovation of the year "Bajaj Allianz Banyan Tree".
This expansion model reflects how a branch sets up small sibling satellites, which in turn
39
40. grow into branches, in the same way that banyan tree branches start another tree when their
branches touch the ground.
As with all content published on this site, these statements are subject to our
Forward Looking Statement disclaimer, provided on the right.
Company overview:
Bajaj Allianz General Insurance Company Limited operates as a general insurance
company in India. The company offers motor insurance, including products for private
cars, two wheelers, and commercial vehicles. It also provides asset insurance plans for
householders, shopkeepers, and motor vehicle dealers. In addition, Bajaj Allianz General
Insurance Company offers health insurance plans comprising health guard; critical illness,
which covers cancer, multiple sclerosis, paralysis, coronary artery bypass surgery, major
organ transplant, primary pulmonary arterial hypertension, first heart attack, stroke, kidney
failure, and arota graft surgery; and personal guard policy.
Bajaj allianz general insurance branches through out india:
Bajaj allianz general insurence located in various places.They are
Ahmedabad,Andheri,Aurangabad,Delhi,Banglore,Bhuvaneshwar,Bhopal,Bharuch,Chennai
,Chandigarh,Cochin,Coimbatore,Goa,Guwahati,Indore,Hubli,Hyderabad,Jaipur,Jalandhar,J
ammu,Kanpur,Karur,Lucknow,Luthiana,Manglore,Madhurai,mumbai,
Mysore,nasik,Nagpur,Noida, Ranchi,Pune head office,Punebranch
office,Rajkot,Raipur,Siliguri,Vashi,Trivandrum,
40
41. Thane,Vishakapatnam,Vadodara.
Key developments:
Bajaj Allianz General Insurance Company Reports Earnings Results for the Full Year of
2007
Bajaj Allianz General Insurance Co. Ltd. reported earnings results for the full year
of 2007. For the period, the company reported a net profit of INR 760 million against INR
520 million in the previous year.
Products and services:
Products and services are of four types, and they are:
• Health Guard
• Personal Guard
• Critical Illness
• Travel companion
Health guard:
Health care costs are getting higher. Who will pay your bills if you have a serious
accident are major illness? Most of the times we are unprepared for these difficult times,
emotionally, as well as financially. Bajaj allianz’s health guard policy, protect you and
your family in case you need expensive medical care. It also offers you cashless benefit
and medical reimbursement for hospitalization expenses.
Features:
41
42. The features of personal guard are of two types:
Cashless facility:
With health guard, the member has access to the cashless facility at various
hospitals across India. The member can opt for hospitals besides the empanelled ones, in
which case the expenses incurred by him shall be reimbursed with in 14 working days
from submission of all the document.
Pre and post- hospitalization expenses:
Covers relavant medical expenses incurred 60 days prior to and 90 days after
hospitalization. Cumulative bonus of 5% to your sum assured for every claims free year.
Family discount of 10% is applicable. Covers ambulance charges is an emergency subject
to limit of 1000rs. Health check up for maximum amount of Rs 1000 at the end of
continuous four claim free year. Income tax benefit on the premium paid as per the section
80-D of the income tax act.
Benefits:
• No strain pockets of insured.
• Complete health coverage.
• Extended financial support.
• Comprehensive coverage.
• Easy and less time consuming. on
42
43. Advantages:
Option of treatment without making payments, across several hospitals.
Existing disease can also be covered. Expenses covered for a longer period covers other
expenses too simple documentation.
Personal guard:
Life is full of uncertainities and unexpected events. Accidents can happen at
home, at work, even at play. The death or injury of a breadwinner can create serious
financial problem for any family. It is in situation like these, that you need to be prepared.
To help you soften the blow Bajaj allianz offers the personal Guard covers. Our personal
Guard policy offers these additional benefits.
Features:
• Comprehensive cover including death, permanent disability
• Children’s educational bonus
• Comprehensive package
• Single proposal form
• Daily allowance hospital cash
Benefits:
Highest compensation in general insurance for cases of permanent total disability -125%
of sum insured.
Children’s education is not hampered due to your accidental death or injury.
All the insurance requirements are addressed by a single policy.
43
44. Less time spent in fulfilling procedural requirements
Reduces the financial burden on the family.
Advantages:
• Covers accident accidental injuries.
• Additional sum at disposal for your children’s education.
• Single proposal form.
• Simple documentation requirement.
• Takes care of the ailments leading to hospitalization.
Critical illness:
A critical illness plan means you can insure yourself against the risk of serious
illness in much the same way as you insure your car and your house. it will give you the
same security of knowing that a guaranteed cash sum will be paid if the unexpected
happens and you are diagnosed with a critical illness. The purpose of a critical illness plan
is to let you put a side a small regular amount now ,as an insurance against all this
happening. the statistics speak for themselves and if you become a part of them at least you
will be sure that lack of money won’t add to your problems.bajaj allianz in its efforts to
provide a customer centric solution is offering an insurance policy to cover to some of the
critical illnesses like cancer multiple sclerosis, paralysis, coronary artery bypass surgery
,major organ transplant, primary pulmonary arterial hypertension, first heart attack,
stroke ,kidney failure, Rota graft surgery.
Features:
Very competitive premium rates.
44
45. • Insured can opt for sum assured from 1,00,000 to Rs.50,00,000.
• Premium paid is exempt under the income tax section 80 D.
• The product is offered from 6 to 59 tears.
• Medical examination may be required in some cases based on the age and the benfit
amount opted by the proposer.
Benefits:
• Easy availability of money to take care of the medical expenses.
• All related expenses for treatment is covered.
• Most in the family can be covered.
• Frees insured of mental anxiety/stress during difficult times.
• Comprehensive coverage with nominal expenses.
Advantages:
• The benefit amount is payable once the disease is diagnosed meeting specific
criteria and the insured survives 30 days after the diagnosis.
• The insured receives the amount as lumsum so that he can plan the treatment
accordingly.
• Expenses like donor expenses in a transplant surgery, which are not covered under
normal health insurance policy, can be paid out of the amount received under this
cover both in India abroad.
Claim procedure:
The insured needs to submit the claim from along with certificate from the specialist
confirming occurrence of the critical illness.
45
46. Travel companion:
You travel for business or pleasure, international travel involves risk. Medical
treatment abroad can be expensive & one never knows when one would require it.
Having to spend for medical bills in foreign currency can be an expensive
proposition. There are other difficult situations also, that one might face like loss of
passport or baggage. Bajaj Allianz's Travel companion is specially designed to help
you deal with situations while overseas travel.
Features:
• Covers medical expenses and repatriation
• Covers for any delay or loss in baggage
• Provides student package for students traveling abroad for abroad for studies
Family floater available.
Benefits:
• Spend for medical bills in foreign currency
• Takes care of sudden and unforeseen expenditure
• Takes care of expenditures in foreign land away from home Convenient and hassle
free trip for the family.
Advantages:
• Provides financial support outside the country
• Can take care of any emergency purchases in case of loss / delay in baggage
46
47. • Covers for accident of sponsor travel of family visit in case of hospitalization of
insured .Entire family can be
• Covered under one policy
Group health guard:
Health Care costs are high and getting higher. Who will pay your bills if
you have a serious accident or a major illness? Most of the times we are unprepared for
these difficult times, emotionally, as well as financially. Bajaj Allianz's Health Guard
Policy, protects you and your family in case you need expensive medical care. It also
offers you cashless benefit & medical reimbursement for hospitalization expenses.
Features:
• Cashless Claim settlement with the network of hospitals
• Proposal and application made simpler
• Extended Pre and Post hospitalization period
• Combination with other health products -Hospital cash & Critical Illness
• Pre-existing disease waiver if continuously insured with us for last 4 years
Benefits:
• No strain on pockets of insured
• Complete health coverage
• Extended financial support
• Comprehensive coverage
• Advantages:
47
48. • Option of treatment without making payments, across several hospitals.
• Existing disease can also be covered.
• Expenses covered for a longer period.
• Covers other expenses too.
• Simple documentation
Group travel companion:
Whether you travel for business or pleasure, international travel involves risk.
Medical treatment abroad can be expensive & one never knows, when one would require
it. Having to spend for medical bills in foreign currency can be an expensive proposition.
There are other difficult situations also, that one might face like loss of passport or
baggage. Bajaj Allianz's Travel companion is specially designed to help you deal with
situations while overseas travel.
Benefits:
• Covers medical expenses and repatriation.
• Covers for any delay or loss in baggage.
• Provides student package for students traveling abroad for studies.
• Family floater available.
Advantages:
48
49. • Spend for medical bills in foreign currency
• Takes care of sudden and unforeseen expenditure
• Takes care of expenditures in foreign land away from home
• Convenient and hassle free trip for the family
GROUP CRITICAL ILLNESS:
A Critical Illness plan means you can insure yourself against the risk of
serious illness in much the same way as you insure your car and your house. It will
give you the same security of knowing that a guaranteed cash sum will be paid if the
unexpected happens and you are diagnosed with a critical illness.
Features:
• Very competitive premium rates
• Insured can opt for Sum Assured from 1,00,000 to Rs. 50,00,000
• Premium paid is exempt under the Income Tax section 80 D
• The product is offered from 6 to 59 years
• Medical examination may be required in some cases based on the age and the
benefit amount opted by the propose.
Benefits:
• Easy availability of money to take care of the medical expenses
• All related expenses for treatment is covered
• Most in the family can be covered
• Frees insured of mental anxiety / stress during difficult times
49
50. • Comprehensive coverage with nominal expense
Advantages:
The benefit amount is payable once the disease is diagnosed meeting
specific criteria and the insured survives 30 days after the diagnosis. The insured receives
the amount as lumpsum so that he can plan the treatment accordingly. Expenses like donor
expenses in a transplant surgery, which are not covered under normal health insurance
policy, can be paid out of the amount received under this cover both in India & abroad
Claims procedure:
The insured needs to submit the claim from along with certificate from the
specialist confirming occurrence of the critical illness.
Group personal guard:
Death:
We will pay the sum insured stated in the Schedule if death of the Insured or the
insured person occurs within 12 calendar months due to an accident occurring during the
policy period. .
Permanentotal disablement:
We will pay up to 125 % of the total sum insured if the Insured or the insured
person is injured due to an accident occurring during the period of insurance and within 12
calendar months of its happening, the Injury becomes the sole cause of permanent total
disablement.
Permanent Partial Disablement:
We will pay a proportion of the sum insured according to the scale of benefits if the
Insured or the insured person is injured due to an accident occurring during the policy
50
51. period and within 12 calendar months of its happening, the Injury becomes the sole cause
of a permanent partial disablement
Temporary Total Disablement:
We will pay a weekly benefit as stated in the Schedule if the Insured or the insured
person is injured due to an accident occurring during the period of insurance and within 12
calendar months of its happening, the Injury results in the Insured or insured person being
totally unable to attend his occupation as stated in the Schedule.
Children Education Bonus:
In case of Death or Permanent Total Disability of Insured or the insured person
we will pay an additional amount to the Insured's or the insured person's children to
support their education.
Additional Benefits:
Medical Expenses:
We will pay a percentage of the admitted claim under other specified coverage
towards the actual medical expenses necessarily and reasonably incurred for medical
treatment within 100 weeks of its happening if the Insured or the insured person suffers
injury during the period of insurance and provided such treatment is received from a
qualified and registered medical practitioner.
Hospital Confinement Allowance:
In the event of the Insured or the insured person being confined in hospital for
treatment of injury for which compensation is payable under this policy, a daily benefit is
paid for such period of confinement subject to a maximum period of 30 days
51
52. Classification of occupation:
Risk Class 1:
You are mainly engaged in administrative or managing functions, Accountant,
Doctor, Lawyer, Architect, Consulting Engineer, Teacher, Banker or primarily engaged in
a similar occupation
Risk Class II:
You are engaged in manual labour, garage or motor mechanic, machine operator,
paid driver of a car, a truck, a lorry or other heavy vehicles, cash carrying employee,
woodworking machinist, or you are a Builder, Contractor, Engineer superintending
functions, veterinary doctor, or engaged in a similar occupation.
Risk Class III:
You are working in underground mines, in explosive magazines or in electrical
installations with high tension supply, or you are a Jockey, Circus personnel, engaged in
racing wheels or horseback, big game hunting, mountaineering, winter sports, skiing, ice-
hockey, river rafting, polo or in a similar activity or occupation.
If your personal occupation is not mentioned above, please do not hesitate to ask for
specific information.
Special notes:
The Policy can be issued to persons aged between 18 and 65. In case of children, they need
to be aged between 5 and 19 to become eligible for coverage.
The total sum insured is normally restricted to 70 times of Insured's monthly average
earnings.
The minimum premium is Rs.500
52
53. Scale of Benefits:
Benefits Compensation as % of
the Sum Insured
Death 100
Loss of sight on both eyes 125
Loss of both hands 125
Loss of both feet 125
Loss of one hand and one foot 125
Loss of one eye and one hand 125
Loss of one eye and one foot 125
Other total permanent
disablement
100
An arm at the shoulder joint 70
An arm above the elbow joint 65
An arm beneath the elbow joint 60
A hand at the wrist 55
A thumb 20
An index finger 10
Any other finger 5
A leg above mid-thigh 70
A leg up to mid-thigh 60
A leg up to beneath the knee 50
A leg up to mid-calf 45
A foot at the ankle 40
A large toe 5
Any other toe 2
An eye 50
Hearing on one ear 30
Hearing on both ears 75
Sense of smell 10
Sense of taste 5
53
54. In case of partial loss of one of these parts or sensory organs, we will pay a corresponding
proportion. Should an accident affect parts, which are not mentioned here, then the
payment depends on the degree of disability measured by a doctor on the panel of the
Company.
General Exclusions:
Suicide, self-inflicted injury, pregnancy or childbirth, pre-existing physical
or mental defects, infections, bleeding from inner organs, aviation other than as a
passenger, motor rallies, war, civil war, terrorism or similar situation.
54
56. 1). Occupation of the respondents:
Interpretation:
The above table depicts that out of 100 respondents. The majority of the
respondents are from private employees community.49% (i.e 49)respondents are from pvt.
Occupation no of responds
Percentage
Student 12
12
Govt employees 8
8
pvt employees 49
49
business man 22
22
others 9
9
Total 100
100
56
57. employees community.22% (i.e 22) respondents are from business people.9%
(i.e9)respondents are from others.8%(i.e8)respondents are from govt. employees.12%
(i.e12)respondents are from students.
1. Occupation of the respondents:
57
58. 2).Customer awareness of the various insurances companies:
Name of the company No of responds
Percentage
Bajaj Allianz 42 42
Royal Sundaram 27 27
TATA AIG 20 20
Others 11 11
Total 100 100
58
59. Interpretation:
The above table depicts that out of 100 respondents. The majority of the
respondents were aware of Bajaj Allianz i.e.42% (i.e 42),27% (i.e 27) respondents are
aware of Royal Sundaram.20%(i.e20)respondents are aware of TATA AIG,and 11%(i.e11)
respondents are aware of others.
2).Customer awareness of the various insurances companies:
59
60. No of responds
42
27
20
11
Bajaj Allianz
Royal Sundaram
TATA AIG
Others
60
3. Consumer awareness of the product from different media source
61. Interpretation:
Source No of Responses Percentage
News papers 23 23
T.V. ads 32 32
Hoardings 16 16
Word of mouth 25 25
Others 4 4
Total 100 100
61
62. The above table depicts that out of 100 respondents. The majority of the respondents were
aware of Bajaj Allianz by TVads i.e .32% (i.e 32),23% (i.e 23) respondents are aware of
News papers.16%(i.e16)respondents are aware of Hoardings, 25%(i.e25) respondents are
aware of Word of mouth and remaining 4% (i.e4) respondents are aware by others.
No of Responses
23
32
16
25
4
News papers
T.V. ads
Hoardings
Word of mouth
Others
62
3. Consumer awareness of the product from different media source
63. 4).Type of policy:
Type of policy
No.of
Responds
percentage
Motor 41 41
Health 37 37
Home 19 19
Travel 3 3
Total 100 100
63
64. Interpretation:
The table depicts out of 100 respondents. The majority of the
respondents 41% (i.e 41)have motor insurance,37%(i.e37) respondents have health
insurance,19%(i.e19) respondents have home insurance and 3%(i.e3) respondents have
travel insurance.
4).Type of policy:
64
66. Inter pretation:
The above table depicts that out of 100 respondents the majority of
respondents were satisfied with their insurance company i.e 85%(85) and 15%(i.e15)
respondents are not satisfied with the company.
Opinion No.of respond
percentage
Yes 85 85
No 15 15
Total 100 100
66
68. 6. The feeling of customer about the Bajaj Allianz
Interpretation:
Opinion No.of Responses
percentage
Very good 40 40
Good 32 32
Average 23 23
Poor 3 3
Very poor 2 2
total 100 100
68
69. The above table depicts that out of hundred despondences 40% (i.e. 40 )
despondences opinion is very good,32% (i.e. 32) despondence opinion is good,23% (i.e.
23) despondence opinion is average,3% (i.e. 3) despondence opinion is poor and 2%
resonance opinion is very poor as the service provided by Bajaj Allianz general insurance
company.
The feeling of customer about the Bajaj Allianz
69
70. No.of Responses
40
32
23
3 2
1 Very good
2 Good
3 Average
4 Poor
5 Very poor
7.Opinion of the respondents regarding which insurance
company is better:
70
71. Interpretation:
The above table depicts that out of 100 respondents 25% (i.e. 25)
respondents are opting Bajaj Allinaz,46 % (i.e. 46) respondents are opting Rayal
Sundaram, 20% (i.e.) respondents are opting Tata Aig and remaining 9% respondents are
opting other insurance companies.
7. Opinion of the respondents regarding which insurance
company is better:
Name of the Insurance No of responds
percentage
Bajaj Allianz 25 25
Royal Sundaram 46 46
TATA AIG 20 20
Others 9 9
Total 100 100
71
72. 8. Opinion about the after sales service of Bajaj Allianz:
Opinions No of responds
Percentage
Excellent 37 37
Very good 21 21
Average 26 26
Poor 11 11
Very poor 5 5
Total 100 100
72
73. Interpretation:
The above table depicts that out of 100 respondents 37% (i.e. 37) respondents have except
opinion,21%(i.e.21) respondents have very good opinion,26% (i.e. 26) respondents have
average opion,11% (i.e. 11) respondents have poor opinion and remaining 5 % respondents
have very poor opinion about the after sales service of Bajaj Allanz.
8. Opinion about the after sales service of Bajaj Allianz:
Q8 No of responds
37
21
26
11
5
Excellent
Very good
Average
Poor
Very poor
73
74. 9. Being a customer of Bajaj Allianz:
Interpretation:
The above table depicts that out of 100 respondents 40%(i.e40) respondents are being
customer of Bajaj Allianz for 1yeaar,22%(i.e22)respondents being customer of Bajaj
Years No of responds
percentage
1Year 40 40
2 Year 22 22
3 Year 20 20
More than 3 years 18 18
Total 100 100
74
75. Allianz for 2 years,20%(i.e20) respondents being customer of Bajaj Allianz for 3 years and
remaining 18%(i.e18) respondents are being customer of Bajaj Allianz for more than
3 years.
9. Being a customer of Bajaj Allianz:
75
76. 10. Reasions for preference of Bajaj Allianz:
Reasons No of responds
percentage
Good service 60 60
Brand name 32 32
Knowing employee in BAJAJ
ALLIANZ 8 8
Total 100 100
76
77. Interpretation:
The above table depicts that out of 100 respondents 60%(i.e60) respondents prefer Bajaj
Allianz because of good service ,32%(i.e32) respondents prefer Bajaj Allianz because of
brand name, and remaining 8%(i.e8) respondents prefer Bajaj Allianz because of known
employee in the Bajaj.
10. Reasons for preference of Bajaj Allianz:
77
79. Interpretation:
The above table depicts that out of 100 respondents 86 %( i.e86) respondents are suggest
the Bajaj Allianz products to others and remain 14 %( i.e14) respondents are not suggest
the Bajaj Allianz products to others.
Suggests No of responds
percentage
Yes 86 86
No 14 14
Total 100 100
79
80. 12. Suggest the Bajaj Aliianz products to the others:
Q11 No of responds
86
14
Yes
No
80
81. 12. Time for getting the policy after taking cover note:
Interpretation:
The above table depicts that out of 100 respondents 6% (i.e6) respondents are
Getting policy below 1 week, 24 %( i.e24) respondents are getting policy
Time No of responds
percentage
Below 1 week 6 6
1-2 week 24 24
2-3 week 28 28
3-4 week 42 42
Total 100 100
81
82. 1-2 weeks, 28 %( i.e. 28) respondents are getting policy in 2-3 weeks, and
Remaining 42 %( i.e. 42) respondents are getting policy in 3-4 weeks.
12. Time for getting the policy after taking cover note:
Q12 No of responds
6
24
28
42
Below 1 week
1-2 week
2-3 week
3-4 week
82
84. FINDINGS:
• Out of 100 respondents 12% are students, 8% are govt employees, 49% are private
employees,29% are business peopleand9%are others.
• Out of 100 respondents 42% are aware of Bajaj Aliianz,27% are aware of Royal
Sundaram, 20% are aware of TATA AIG, and 11% are aware of others.
• Out of 100 respondents 23% are aware from news papers, 32% are aware from
TV ads, 16% are aware from hoardings, 25% are aware from word of mouth and
remaining 4% are from others.
• Out of 100 respondents 41% have motor insurance,37% have health Insurance,
19% have home insurance, and remaining 3% have travel insurance.
• Out of 100 respondents 85% are satisfied the service provided by BAJAJ,
And remaining 15% is not satisfied the service provided by BAJAJ ALLIANZ.
84
85. • Out of 100 respondents 40% are feeling very good about service of Bajaj
Allianz, 32% are good about service of Bajaj, 23% are average about service of
Bajaj, and 3% are feeling poor about service of Bajaj, and reaming 2% are
Feeling very poor about service of BAJAJ.
• Out of 100 respondents 25% opinion is Bajaj is better,46% opinion is Royal
sundaram is better,20% opinion is TATA AIG is better and remaining 9%
Opinion is others is better.
• Out of 100 respondents 37% says after sales service is very good,21 % says after
sales service is good, 26% says after sales service is average,11% says after sales
service 5 % says after sales service is poor and remaining % says after sales service
is very poor.
• Out of 100 respondents40 % are being customer of Bajaj from 1 year,22% are
being Customer of Bajaj from 2 years, 20% is being customer of Bajaj from 3
years, And remaining 18% are being customer of Bajaj from more than 3 years.
• Out of 100 respondents60 % preferring Bajaj because of good service,32%
preferring Bajaj because of brand name, and remaining9 % are preferring Bajaj
because of Known employee in BAJAJ ALLIANZ.
• Out of 100 respondents86 % are suggest others to prefer Bajaj products and
remaining14 % are suggest others to prefer Bajaj products.
• Out of 100 respondents6 % are getting the policy below 1 week, 24 % getting The
policy in 1-2 weeks, 28% are getting the policy in 2-3 week remaining42 % are
getting the policy in 3-4 weeks.
85
87. SUGGESTIONS:
The various policies and the related schemes of the Bajaj Allianz should be
Conveyed and also the customer should be educated. The company should also concentrate
on all the consumer segments
.Along with creating awareness the company should also carry out go Promotional
activities so that, it aims at educating people that private general Insurance companies are
in the arena and allow the company to promote its Product to the people and thus acquire
new policies.
The company should take adequate measure to get the feed back from customer in
modifying and developing the new policies.
The company should develop and maintain a very good relationship with private
Organizations so as to provide policies.
87
88. The company should maintain good relationship with the employees and should
Understand their problems.
CHAPTER - VII
88
89. CONCLUSION:
Bajaj Allianz has satisfactory brand awareness when it is compared with other players in
the insurance sector.
Bajaj Allianz has to improve its ads and it has good word of mouth Publicity. Should
concentrate on creative ads.
Bajaj Allianz holds a bright percentage in general insurance category and should
Concentrate on life insurance.
Bajaj Allianz is successful in gaining satisfaction of the customers.
Bajaj Allianz has a very good service system. Nearly 90% of the consumers are
Satisfied with the service of the Bajaj Allianz.
Bajaj Allianz should concentrate on brand building because it lack in the concept of brand
equity when compared to the brand equity of royal sundaram.
89
90. Bajaj Allianz should increase after sales service.
Bajaj Allianz holds the satisfaction brand loyalty and should conduct loyalty
programs to improve the loyalty.
Bajaj Allianz has a good brand preference.
Bajaj Allianz has to improve the efficiency of service and make sure to
maintain the customer satisfaction.
BIBLIOGRAPHY:
MARKETING MANAGEMENT Philip kotler
RESEARCH METHODOLOGY Kothari
INSURANCE K S N Murthy
SERVICES MARKETING P.N. Reddy,
S.M.Jha
BUSINESS MAGAZINES:
90
91. Business world
Business today
Agents guide
WEBSITES:
www.irdaindia.org
www.irdaonline.org
www.bajaj allianz.com
QUESTIONNAIRE
Occupation -----------------Age---------------------Gender------------------------------
1.What is your occupation?
a.Student b.govt employee c.pvt employee d. Business man e. Any others
2.What are the various insurance comapanies that you aware of?
a.Bajaj allianz b.icici lombard c.TATA AIG d. Any other please Specify
3.How are you aware of bajaj allianz insurance?
a.News papers b.tv ads c.hoarding d.word of mouth e.others
4.What type of insurance policy you have in bajaj allianz?
a.Motor b.health c.home d.travel
5.Are you satisfied with the service provided by bajaj allianz?
a.Yes b.no c. if no reasons
91
92. 6.How do you feel about the service of bajaj allianz?
a.excellent b.very good c.good d.average
7.In your opinion which insurance company is best?
a.Bajaj allianz b. Royal Sundaram c. Tata AIG d. any others please specify
8.How do you rate the after sales service of bajaj allianz?
a. Excellent b.very good c.good d. average e. Poor
9.Since how many years you are the customer of bajaj allianz?
a.1year b.2 years c.3 years d.more than 3 years
10.Why do you prefer bajaj allianz?
a.Good service b.brand name c.because of known employee in bajaj allianz d.any other
reasonse
11.Would you like to suggest your friends to buy the insurance product of bajaj allianz?
a.Yes b.no
12.How many days generally it takes to get the policy, after taking the cover note?
a.Below 1week b.1-2weeks c.2-3weeks d.3-4weeks
13. Can you point out the best part of the service offered by the company.
14. Looking at the present business environment, are the range of the insurance product
sufficient.
15. Would you like to after any suggestion to improve the customer service of the
company.
92
