44814150 Bajaj Allianz General Insurance Co

8/4/2019 44814150 Bajaj Allianz General Insurance Co

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Bajaj Allianz General Insurance Co. Ltd.

A

Project Report on

PODUCT MIX OF BAJAJ ALLIANZ GENERAL INSURANCE

Submitted to

Mrs. Smriti Dua

Submitted by:

Name of the student Shishir Kaushik

Enrollment No. 02420601809

Course BBA(B&I) Ist Shift


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PREFACE

This report deals with organizations activities related to Product

Mix of Bajaj Allianz General Insurance. It includes methods,

past experiences, board of directors of organizations, etc.

Subject matter of this report has been elaborated with simple

words and lucid. Tables, charts, figure have been given to

facilitate understanding. Thus the have left no stone unturnedto make this work useless, wasteful and valueless. I gave my

complete effort to make it valuable, useful and enrich it with my

views so that it give complete sense and benefit to readers

SHISHIR KAUSHIK


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CERTIFICATE

This to certify that SHISHIR KAUSHIK is a bonafide student of

this institute perusing B.B.A.(B&I) fulltime program of three

years duration which is in affiliation with GGSIPU.

And has undertaken a minor project on Product Mix of Bajaj

Allianz General Insurance in partial fulfillment of B.B.A. (B&I)

degree as required under the rules of the University.


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ACKNOWLEDGEMENT

With an over whelming sense of gratitude I acknowledge the

valuable guidelines and consistent and encouragement extended

to me by our knowledge faculty members with whose guidance I

am able to accomplish this Endeavour. When where technicalacumen and years of experience have provided me with crucial

inputs at critical stage.

I am especially indebted to Trinity Institute of Professional

Studies to provide all the necessary materials which help me in

accomplishing the task assignment.

I also want to thank my project guide Mrs. Smriti Dua who

encouraged and motivated me to work on this project.

SHISHIR KAUSHIK


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TABLE OF CONTENTS

Sr.No CONTENTS PAGE

1. INTRODUCTION 5

2. SECTOR PROFILE 10

3. COMPANY PROFILE 21

4. OBJECTIVES OF STUDY 31

5. RESEARCH METHODOLOGY 33

6. DATA ANALYSIS & INTERPRETATION 39

7. OBSERVATIONS & FINDING 50

8. SUGGESTION 52

9. BIBLIOGRAPHY 54

10. QUESTIONNIARE 55


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INTRODUCTION

Definition

1. Range of associated products which yield larger sales revenue when marketed together than if

they are marketed individually or in isolation of others.

The product mix of a company, which is generally defined as the total composite of products

offered by a particular organization, consists of both product lines and individual products. A

product line is a group of products within the product mix that are closely related, either because

they function in a similar manner, are sold to the same customer groups, are marketed through

the same types of outlets, or fall within given price ranges. A product is a distinct unit within the

product line that is distinguishable by size, price, appearance, or some other attribute. For

example, all the courses a university offers constitute its product mix; courses in the marketing

department constitute a product line; and the basic marketing course is a product item. Product

decisions at these three levels are generally of two types: those that involve width (variety) and

depth (assortment) of the product line and those that involve changes in the product mix occur

over time. The depth (assortment) of the product mix refers to the number of product items

offered

PRODUCT-MIX MANAGEMENT AND RESPONSIBILITIES It is extremely important for

any organization to have a well-managed product mix. Most organizations break down managing

the product mix, product line, and actual product into three different levels. Product-mix

decisions are concerned with the combination of product lines offered by the company.

Management of the companies' product mix is the responsibility of top management. Some basic

product-mix decisions include: (1) reviewing the mix of existing product lines; (2) adding new

lines to and deleting existing lines from the product mix; (3) determining the relative emphasis

on new versus existing product lines in the mix; (4) determining the appropriate emphasis on

internal development versus external acquisition in the product mix; (5) gauging the effects of


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adding or deleting a product line in relationship to other lines in the product mix; and (6)

forecasting the effects of future external change on the company's product mix. Product-line

decisions are concerned with the combination of individual products offered within a given line.

The product-line manager supervises several product managers who are responsible for

individual products in the line. Decisions about a product line are usually incorporated into a

marketing plan at the divisional level. Such a plan specifies changes in the product lines and

allocations to products in each line. Generally, product-line managers have the following

responsibilities: (1) considering expansion of a given product line; (2) considering candidates for

deletion from the product line; (3) evaluating the effects of product additions and deletions on

the profitability of other items in the line; and (4) allocating resources to individual products in

the line on the basis of marketing strategies recommended by product managers. Decisions at the

first level of product management involve the marketing mix for an individual brand/product.

These decisions are the responsibility of a brand manager (sometimes called a product manager).

Decisions regarding the marketing mix for a brand are represented in the


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product's marketing plan. The plan for a new brand would specify price level, advertising

expenditures for the coming year, coupons, trade discounts, distribution facilities, and a five-year

statement of projected sales and earnings. The plan for an existing product would focus on any

changes in the marketing strategy. Some of these changes might include the product's target

market, advertising and promotional expenditures, product characteristics, price level, and

recommended distribution strategy.

GENERAL MANAGEMENT WORKFLOW Top management formulates corporate objectives

that become the basis for planning the product line. Product-line managers formulate objectives

for their line to guide brand managers in developing the marketing mix for individual brands.

Brand strategies are then formulated and incorporated into the product-line plan, which is in turn

incorporated into the corporate plan. The corporate plan details changes in the firm's productlines and specifies strategies for growth. Once plans have been formulated, financial allocations

flow from top management to product line and then to brand management for implementation.

Implementation of the plan requires tracking performance and providing data from brand to

product line to top management for evaluation and control. Evaluation of the current plan then

becomes the first step in the next planning cycle, since it provides a basis for examining the

company's current offerings and recommending modifications as a result of past performance.

PRODUCT-MIX ANALYSIS Since top management is ultimately responsible for the product

mix and the resulting profits or losses, they often analyze the company product mix. The first

assessment involves the area of opportunity in a particular industry or market. Opportunity is

generally defined in terms of current industry growth or potential attractiveness as an investment.

The second criterion is the company's ability to exploit opportunity, which is based on its current

or potential position in the industry. The company's position can be measured in terms of market

share if it is currently in the market, or in terms of its resources if it is considering entering the

market. These two factors opportunity and the company's ability to exploit itprovide four

different options for a company to follow. 1. High opportunity and ability to exploit it result in

the firm's introducing new products or expanding markets for existing products to ensure future

growth. 2. Low opportunity but a strong current market position will generally result in the

company's attempting to maintain its position to ensure current profitability. 3. High opportunity

but a lack of ability to exploit it results in either (a) attempting to acquire the necessary resources


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or (b) deciding not to further pursue opportunity in these markets. 4. Low opportunity and a

weak market position will result in either (a) avoiding these markets or (b) divesting existing

products in them. These options provide a basis for the firm to evaluate new and existing

products in an attempt to achieve balance between current and future growth. This analysis may

cause the product mix to change, depending on what management decides. The most widely used

approach to product portfolio analysis is the model developed by the Boston Consulting Group

(BCG). The BCG analysis emphasizes two main criteria in evaluating the firm's product mix: the

market growth rate and the product's relative market share. BCG uses these two criteria because

they are closely related to profitability, which is why top management


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often uses the BCG analysis. Proper analysis and conclusions may lead to significant changes to

the company's product mix, product line, and product offerings. The market growth rate

represents the products' category position in the product life cycle. Products in the introductory

and growth phases require more investment because of research and development and initial

marketing costs for advertising, selling, and distribution. This category is also regarded as a

high-growth area (e.g., the Internet). Relative market share represents the company's competitive

strength (or estimated strength for a new entry). Market share is compared to that of the leading

competitor. Once the analysis has been done using the market growth rate and relative market

share, products are placed into one of four categories.

Stars: Products with high growth and market share are know as stars. Because these products

have high potential for profitability, they should be given top priority in financing, advertising,

product positioning, and distribution. As a result, they need significant amounts of cash to

finance rapid growth and frequently show an initial negative cash flow. Cash cows: Products

with a high relative market share but in a low growth position are cash cows. These are profitable

products that generate more cash than is required to produce and market them. Excess cash

should be used to finance high-opportunity areas (stars or problem children). Strategies for cash

cows should be designed to sustain current market share rather than to expand it. An expansion

strategy would require additional investment, thus decreasing the existing positive cash flow.

Problem children: These products have low relative market share but are in a high growth

situation. They are called "problem children" because their eventual direction is not yet clear.

The firm should invest heavily in those that sales forecasts indicate might have a reasonable

chance to become stars. Otherwise divestment is the best course, since problem children may

become dogs and thereby candidates for deletion. Dogs: Products in the category are clearly

candidates for deletion. Such products have low market shares and unlike problem children, have

no real prospect for growth. Eliminating a dog is not always necessary, since there are strategies

for dogs that could make them profitable in the short term. These strategies involve "harvesting"

these products by eliminating marketing support and selling the product only to intensely loyal

consumers who will buy in the absence of advertising. However, over the long term companies

will seek to eliminate dogs.


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As can be seen from the description of the four BCG alternatives, products are evaluated as

producers or users of cash. Products with a positive cash flow will finance high-opportunity

products that need cash. The emphasis on cash flow stems from management's belief that it is

better to finance new entries and to support existing products with internally produced funds than

to increase debt or equity in the company. Based on this belief, companies will normally take

money from cash cows and divert it to stars and to some problem children. The hope is that the

stars will turn into cash cows and the problem children will turn into stars. The dogs will

continue to receive lower funding and eventually be dropped.

Managing the product mix for a company is very demanding and requires constant attention. Top

management must provide accurate and timely analysis (BCG) of their company's product mix

so the appropriate adjustments can be made to the product line and individual products.


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INSURANCE NEED

Why is insurance necessary? The question contains the answer within itself. After all, life is

fraught with tensions and apprehensions regarding the future and what it holds for the individual.


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Despite all the planning and preparation one might make, no one can accurately guarantee or

predict how or when death might result and the circumstances that might ensue in its aftermath.

We are not saying that life and existence are constantly fraught with danger and uncertainty. But

then it is essential that you plan for the future. The chances for a fatality or an injury to occur to

the average individual may not be particularly high but then no one can really afford to

completely disregard his or her future and what it holds.

People generally regard insurance as a scheme when and where you have to lose a lot to gain a

little. Nevertheless, insurance is still the most reliable tool an individual can use to plan for his

future.

And just why is it necessary to plan for the future with Insurance?

An Overview

Insurance business is divided into four classes:

1) Life Insurance business

2) Fire

3) Marine

4) Miscellaneous Insurance.

Life Insurers transact life insurance business; the rest is transacted by General Insurers. No

composites are permitted as per law.

The business of Insurance essentially means defraying risks attached to any activity over time

(including life) and sharing the risks between various entities, both persons and organisations.

Insurance companies (ICs) are important players in financial markets as they collect and invest

large amounts of premium. Insurance products are multi purpose and offer the following

benefits:

1. Protection to the investors

2. Accumulate savings

3. CHANNELISE SAVINGS INTO SECTORS NEEDING HUGE LONG TERM

INVESTMENTS.


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SECTOR PROFILE

Brief History of the Insurance Sector


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The business of life insurance in India in its existing form started in India in the year 1818 with

the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important

milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life

insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of

protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central

government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a

capital contribution of Rs. 5 crore from the Government of India. The General insurance business

in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first

general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of

general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of

conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.


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1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general

insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and

grouped into four companies viz. the National Insurance Company Ltd., the New India

Assurance Company Ltd., the Oriental Insurance Company Ltd. And the United India Insurance

Company Ltd. GIC incorporated as a company.

INSURANCE SECTOR


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The opening up of Insurance sector was a part of the on going liberalization in the financial

sector of India. The changing face of the financial sector and the entry of several companies in

the field of life and non life Insurance segment are one of the key results of these liberalization

efforts. Insurance business by way of generating premium income adds significantly to be the

GDP. Over the past three years, more than thirty companies have expressed interest in doing

business in India. The IRDA (Insurance Regulatory Development Authority) is the regulatory

authority, which looks over all related aspects of the insurance business. The provisions of the

IRDA bill acknowledge many issues related to insurance sector. The IRDA bill provides

guidance for three levels of players - Insurance Company, Insurance brokers and Insurance

agent. Life Insurance sector is one of the key areas where enormous business potential exists. In

India currently the life insurance premium as a percentage of GDP is 1.3 % against, 5.2 per cent

in the US.

General Insurance

General Insurance is another segment, which has been growing at a faster pace. But as per the

current comparative statistics, the general insurance premium has been lower than life insurance.

General Insurance premium as a percentage of GDP was a mere 0.5 'per cent in 1996. In the

General Insurance Business, General Insurance Corporation (GIC) and its four subsidiaries viz.

New India Insurance, Oriental Insurance, National Insurance and United India Insurance, are

doing major business. The General Insurance Industry has been growing at a rate of 19 percent

per year.

The entry of several private insurance companies, particularly international insurance companies,

through joint ventures, will speed up the process of insurance mobilization. The competition will

unleash new schemes and benefits, which will give consumers a better Chance to save as well as

insure. The regulatory system in India is relatively new and takes some more time to make the

Insurance sector a perfectly competitive one. Insurance Regulatory Authority of India issued

regulations on 15 subjects which included appointed. Actuary, actuarial report, Insurance agents,

Solvency margins, reinsurance, registration of Insurers, and obligation of insurers to rural and

social sector, investment and accounting procedure. The reform in Insurance in India is guided

by factors like availability of a variety of products at a competitive price, improvement in the


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quality of customer services etc. Also the employment opportunities in the Insurance sector wil1

increase as major players set their business plans in India. The policy of the government to open

up the financial sector and the Insurance sector is expected to bring greater FDI inflow into the

country. The increase in the investment limit in this vital sector has generated considerable

business interests among the foreign Insurance companies" Their entry wil1 certainly change the

Insurance sector considerably.

Investment:

1.Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to

50%.

2. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings

to be brought down to this level over a period of time.)

Customer Service:

1. LIC should pay interest on delays in payments beyond 30 days.


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2. Insurance companies must be encouraged to set up unit linked pension plans.

3. Computerization of operations and updating of technology to be carried out in the

insurance industry.

The committee emphasized that in order to improve the customer Services and increase the

coverage of the insurance industry should open up to competition. But at the same time, the

committee felt the need to exercise caution as any failure on the part of new players could ruin

the public confidence in the industry. Hence, it was decided to allow competition in a limited

way by stipulating the minimum capital requirement of Rs. 100 crores. The committee felt the

need to provide greater autonomy to insurance companies in order to improve.

INSURANCE INDUSTRY: CLASSIFICATION


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SOME PLAYERS IN THE INDUSTRY:


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Life Insurance

General Insurance

Life Insurance Corporation of India General Insurance Corporation of India.

1. Oriental Insurance Company Ltd.

2. New India Assurance Company Ltd.

3. National Insurance Company Ltd.

4. United India Insurance Company Ltd.

New EntrantsICICI Prudential Life Insurance Ltd. Bajaj Allianz General Insurance Company

Ltd.

Tata AIG Life Insurance Corporation Ltd. Reliance General Insurance Company Ltd.

ING Vysya Life Insurance Corporation Ltd. Tata AIG General Insurance Company Ltd.

Om Kotak Mahindra Life Insurance

Corporation Ltd.

MaxNewYork Life Insurance Ltd

Royal Sundaram Alliance Insurance

Company

Ltd.

MARKET SHARE


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In the FY2008 ICICI Lombard and Bajaj Allianz have witnessed aggressive growth by

making the retail segment their target segment ,aggressive growth strategies and huge

distribution network.The general insurance industry has witnessed the entry of many non-

traditional players .IRDA has issued a license to the Rajan Raheja Group(RRG) for setting

up a general insurance joint veture with Australias QBE Insurance Group.Last two years

have seen the emergence of special institutions,such as ECGC,Star Health&Allied

Insurance ,Appolo DKV and Agriculture Insurance Co.


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Business mix of Bajaj Allianz

Motor insurance has the biggest share in general insurance market and show a high

growth over three years. Corporate ex-health shown a low depression in Fy 2006-07 and

high depression in Fy2007-08.Health insurance shows positive trend in all these FYs.


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COMPANY PROFILE


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Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv

Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a

reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development

Authority (IRDA) certificate of Registration on 2nd May, 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 Finserv Limited holds 74% and the remaining 26% is

held by Allianz, SE.

As on 31st March 2009, Bajaj Allianz General Insurance maintained its premier position in

the industry by achieving growth as well as profitability. The company garnered a premium

income of Rs. 2866 crore, achieving a growth of 11 % over the last year. Bajaj Allianz has

made a profit before tax of Rs. 149.8 crore and has become the only private insurer to cross

the Rs.100 crore mark in profit before tax in the last three years. The profit after tax was

Rs.95 crores, which is also the highest by any private insurer.

Bajaj Allianz today has a countrywide network connected through the latest technology for

quick communication and response in over 200 towns spread across the length and breadth of

the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are

interconnected with the Head Office at Pune.

Vision

To be the first choice insurer for customers

To be the preferred employer for staff in the insurance industry.

To be the number one insurer for creating shareholder value

Mission

As a responsible, customer focused market leader, we will strive to understand the insurance


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needs of the consumers and translate it into affordable products that deliver value for money.

A Partnership Based on Synergy.

Bajaj Allianz General Insurance offers technical excellence in all areas of General and Health

Insurance as well as Risk Management. This partnership successfully combines Bajaj

Finserv's in-depth understanding of the local market and extensive distribution network with

the global experience and technical expertise of the Allianz Group. As a registered Indian

Insurance Company and a capital base of Rs. 110 crores, the company is fully licensed to

underwrite all lines of general insurance business including health insurance.

Achievements

Bajaj Allianz has received "iAAA rating, from ICRA Limited, an associate of Moody's

Investors Services, for Claims Paying Ability.This rating indicates highest claims paying

ability and a fundamentally strong position

Bajaj Allianz General Insurance has received the prestigious Business Leader in General

Insurance, awarded by NDTV Profit Business Leadership Awards 2008. The company was

one of the top three finalists for the year 2007 and 2008 in the General Insurance Company of

the Year award by Asia Insurance Review.

Companys History

Bajaj Allianz General Insurance Company:

Allianz AG:

Allianz group was founded in 1890 and is one of the world's leading insurance companies with

over 100 year's experience in insurance and related services. It is also the largest insurer in

Europe. Allianz group has multi-local structure and presence in over 70 countries. The key


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business areas of Allianz group include General Insurance (property, engineering, marine, motor,

casualty and miscellaneous), Reinsurance, Risk Management, Life & health insurance, Asset

Management and Pension Funds Management.

Bajaj Auto Ltd.

Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated in 1945 as Bachraj

Trading Corporation. Initially it started by assembling two and three wheelers in collaboration

with Piaggio of Italy. After the expiry of the Agreement in 1971 the two and three wheelers

acquired the brand name of Bajaj. The strength of the company lies in its strong brand image and

ability to offer value for money products leveraging on its large-scale operations.

The Joint Venture

Bajaj Allianz General Insurance a joint venture non-life company promoted jointly by Bajaj

Auto and German insurer- Allianz. Indian auto major holds 74% while Allianz holds 26% in the

Joint Venture, and has an authorized and paid up capital of Rs. ll0 crores. Mr. Graham Norris is

the CEO of the company. Bajaj Allianz General Insurance will leverage the customer base and

expertise of Bajaj Auto Ltd and Allianz.

Product range of company/industry

Bajaj Allianz General Insurance Products

Personal Accident

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 .

Permanent Total Disablement

We will pay up to 125 % of the total sum insured if the Insured or the insured person is injured


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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 period and within 12calendar 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 isinjured 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 ofinsurance 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 periodof confinement subject to a maximum period of 30 days

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 acar, 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


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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

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 similarsituations.

Hospital Cash Daily Allowance Policy

Suitability

Policy provides for the cash benefits in the event of insured person(s)

being hospitalized due to sickness or accident. It provides cash for each

and every completed day of Hospitalization. It can be taken by anyone in

the age group of 3 months to 60 years.

Salient Features

The Company pays a daily allowance for every day of Hospitalization.

The daily allowance can to be Rs.500/-, Rs.1000/- or Rs.2000/- per day,

at the option of Insured.


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The policy pays for a maximum of 30/60 days of Hospitalization per

policy period, irrespective of number of confinements to hospital/nursing

home per policy period. Number of days of Hospitalization shall be

selected by the insured.

A day for this purpose may be a period of 12 hours reckoned from the

time of Hospitalization but must include 0300 hours.

Dependant spouse and children can also be covered under the Policy.

The benefits payable to the dependants shall be linked to that of Insured

as above regardless of the fact whether they are employed or not. Further

discounts are given if spouse and children are insured.

There is no limit on the number of children to be covered. The minimum

age for the children is 3 months with maximum being 21 years.

Premium paid up to Rs.15,000 per annum is eligible for Tax benefit u/s

80 D of IT Act.

In case of ICU admission double the scheduled amount will be paid

(maximum of 7 days).

There is no need to submit medical bills. Only a discharge certificate is

sufficient for admitting the claim.

Benefits

The policy pays a daily allowance for every day of Hospitalization. The

daily allowance depends on the amount selected by the insured. Number

of days of Hospitalization is limited to 30/60 days per policy period, as

selected by the insured.

Individual Health Guard

It is rightly said 'Health is Wealth'. We are all aware that health care costs are exorbitant. At

times, unfortunately we fall prey to unanticipated accidents & illness. Bajaj Allianz promises to

stand by you during those difficult times of physical and mental stress. Our Health Guard policy

takes care of your hospitalization expenses & offers a wide coverage of pre & post

hospitalization expenses. We are the first insurance company to offer a sum insured of Rs. 10

lacs.


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1. Features

The member has cashless facility at over 2300 hospitals across India

With Health Guard, the member has access to cashless facility at various empanelled hospitals

across India.

Pre and post - hospitalization expenses covers relevant medical expenses incurred 60 days prior

to and 90 days after hospitalization

Covers ambulance charges in an emergency subject to limit of Rs. 1000 /-

No tests required up to 45 years up to SI 10 lacs*

10% co- payment applicable if treatment taken in non-network hospitals

20% co-payment applicable for members of age group 56 -65 years, opting this policy for first

time

Waiver on 10% co-payment is available on payment of additional premium

Pre-existing diseases covered after 4 years continuous renewal with Bajaj Allianz

2. What are the benefits of this policy?

In house Health Administration Team for hospitalisation claims to lower turn around time

Access to over 2300 hospitals all over India for cashless facility.

No Sub-limits applicable on room rent and other expenses

Hassle-free claim settlement due to In-house claim administration.

Income tax benefit on the premium paid as per section 80-D of Income Tax Act as per existing

IT law.

Health Check up for maximum amount of Rs. 1000 /- at the end of continuous four claim free

years

Family discount of 10% is applicable

3. Coverage

Sum insured from Rs. 1lakh to Rs.10 lakhs can be opted from 3 months to 55 yrs.


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Sum insured from Rs. 1lakh to Rs.5 lakhs can be opted from 56 months to 65 yrs Policy can be

renewed up to 80 years*

Critical IllnessA health insurance plan that covers critical illness 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 amount will be paid if the unexpected

happens and you are diagnosed with a critical illness.

1. Advantages of Critical Illness Health Insurance Plan

The Critical Illness health insurance plan has the following 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 lump sum 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.

Key Features

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 proposed.

Very competitive premium rates.

Insured can opt for Sum Assured from 1,00,000 to Rs. 50,00,000.

2. Illness Covered

1) Cancer


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A claim can be made if the assured is diagnosed as suffering from a malignant tumour, which has

invaded surrounding tissue. A microscopic examination of the cells will be required to confirm

the claim.

2) Coronary Artery Bypass Surgery

When coronary arteries become narrowed or blocked they cannot supply enough blood to the

heart muscle. To correct this and prevent risk of death, a coronary artery bypass surgery is

performed in which two sections of artery on either side of the blockage are connected together.

With our health insurance plan - Critical Illness, you can insure yourself against this serious

illness in much the same.

Way as you insures your car and your house. You will be able to claim if you undergo this

surgery for blockage of 2 or more coronary arteries.

3) First Heart Attack:- (Myocardial Infarction)

First heart attack, also known as myocardial infarction, occurs when part of the heart muscle dies

from lack of oxygenated blood. Chest pain is usually felt at the time of the attack, ECG

(electrocardiogram) changes will confirm the diagnosis. A damaged heart also releases enzymes

into the bloodstream and a blood test will show that the heart attack is recent.

4) Kidney Failure

The kidneys act as filters and remove waste from the blood. When the kidneys fail to do this,

waste builds up in the blood and leads to severe complications. Although it is possible to manage

with one kidney; if both kidneys fail completely, one will need long-term dialysis or a transplant.

5) Major Organ Transplant

Sometimes a major internal organ is so seriously diseased or damaged that the only effective

treatment is replacement with a healthy one. Kidney transplants are covered under a separate

section.

6) Multiple Sclerosis


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This is a progressive disease of the central nervous system where the protective covering

(myelin) of the nerve fibers in the brain and spinal cord is destroyed. The severity of the disease

and symptoms will depend on the areas of the brain or spinal cord affected. Periods of remission

which may last many years between acute phases are characteristic of the disease.

7) Stroke

A stroke is an incident, which affects the supply of blood to the brain causing permanent

neurological damage such as paralysis or disturbance of speech or vision. Transient ischaemic

attacks are excluded as they do not cause permanent damage and the symptoms do not last for

more than few days.

8) Aorta Graft Surgery

The aorta is the main artery that supplies oxygenated blood to all other parts of the body.

Sometimes, part of the aorta becomes blocked or weak and may need replacement. You will be

able to claim if you need surgery to remove and replace part or the entire aorta.

9) Paralysis

Paralysis is usually caused by damage to the brain or spinal cord, affecting the transmission of

messages through the nervous system or by physical injury to the limbs in question.

10) Primary Pulmonary Arterial Hypertension

Primary pulmonary hypertension a progressive disorder recommended or which was first

manifested or contracted before characterized by high blood pressure (hypertension) of the main

artery of the lungs (pulmonary artery). The pulmonary artery is the blood vessel that carries

blood from the heart through the lungs.

Symptoms of primary pulmonary hypertension include shortness of breath (dyspnoea) especially

during exercise, chest pain, and fainting episodes. The exact cause of primary pulmonary

hypertension is unknown.


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Easy Household Package

Your dream home can now be protected with Bajaj Allianz Easy Householders Package Policy- a

simplified householders policy designed for your convenience. This comprehensive package

policy is designed to cover various risks and contingencies faced by householders.

1. Coverage

Fire & allied perils

BaggageDomestic appliances- Burglary & theft

Electronic appliances

3 easy steps - pick, tick, so quick...

1 Pick the Kit to fill the Proposal Form cum Policy Schedule

2 Select your desired insurance plan

3 Pay your Premium by Cheque / Cash / DD / Credit Card

2. Advantages

Available as over the counter (OTC) kit

Instant activation through SMS/ Call centre

Convenience to choose from 3 customized plans

Affordable package premium

Combination

of requisite covers (sections)

Waiver of under insurance

Easy claim settlement process


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Fidelity Guarantee Policy

The most valued assets of an organization are its employees. Although most organizations takeenough measure to ensure that they employ the best talent, selections can sometimes be wrong.

The most honest of your employees can be the cause of losses, embezzlement and fraud. We at

Bajaj Allianz offer fidelity Guarantee Insurance that covers you against these losses caused due

to fraud or dishonesty

What does this policy cover?

Bajaj Allianz Fidelity Guarantee Insurance offers you the following cover:

It pays the actual financial loss sustained as a result of the dishonesty/Fraudulent act of the

employee. After adjusting any salary, commission security deposit or any other money standing

to the credit. The loss is payable up to the limit specified for the employee. The policy does not

pay more than one claim in respect of liability/loss arising out of an individual employee's acts.

Types of fidelity policies:

Individual policy:

Under this policy only one individual is guaranteed per policy.

Collective policy: This option covers the entire staff or number of selected people. One policy is

issued showing amount of guarantee against the name of each individual covered.

Floating policy or floater: This cover is an extension of the collective policy, where the sum

insured for the whole group is mentioned and not for an individual. The names of the group

member with their designations are mentioned in the schedule of the policy. Each claim reduces

the sum insured and has to be reinstated by paying extra premium.

Position Policy: The Policy schedule contains 'positions' rather than the names of individuals

unlike in collective policy with the sum insured specified for each position. The liability for each

position is limited to the amount of sum insured against each position irrespective of the number

of people working in that position.


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What does this policy not cover?

The policy does not cover any loss if:

Arising out of suppression of fact affecting the risk at the time of affecting the policy.

There is any change in the circumstances or conditions of the said employment without the

consent of the company.

More than one claim in respect of any one employee.

Arising outside India.

Due to non-observance or relaxations of system of checks and precautions.

By an act committed subsequent to an earlier act of dishonesty/fraud and which had come to the

notice of the insured / insured's representative / supervisor.

Office package

There are huge investments made when it comes to business. Investments are made for office

premises, equipment's, human resources and other infrastructural facilities. Bajaj Allianz General

Insurance offers the Office Package Policy ,which helps you share your financial burden should

you face heavy losses.

Features

Policy covers building (if owned) and contents against fire and allied perils and burglary

Covers breakdown of office equipment, including electronic equipment and laptops Fidelity

Guarantee gives protection from being victimized by fraudulent and dishonest employees

Public liability can also be covered

Hospital Cash Daily Allowance benefit for family in case the insured is hospitalized

Flexible rating for personal accident


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Advantages

All the insurance requirements are addressed by a single policy

Less time spent in fulfilling procedural requirement

One stop shop / solution for the clients business related needs

Takes care of the ailments leading to hospitalization

Tailor-made as per client's needs.

Money Insurance

This Money insurance policy covers

Loss of money in transit caused by robbery, theft, or any fortuitous event.

Loss of money from the insured's premises during business hours caused by theft or robbery

Loss of money from the insured's safe or strong room caused by theft or robbery.

The term money includes cash, bank drafts, currency notes, treasury notes, postal orders, money

orders and postage stamps. The loss of money in transit must occur whilst being carried by the

insured or his authorized employee, that is, the employees named in the schedule.

Extensions

The policy can be extended to cover the following risks:

Unnamed employees: The operative clause of the policy refers to employees named in the

schedule. Often large corporations seek money insurance to cover unnamed employees. The

policy can be extended to cover unnamed employees at an extra premium. Carriage of cash by

contractor's employees: Often, corporations contract out the task of cash carriage. The policy can

be issued to include carriage of cash by contractors' employees. Policies can be issued to cover

only contractor's employees provided all cash carriage is contracted out.


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Public Liability

The policy offers to indemnify you against legal liability to pay compensation including the

claimant's costs, fees and expenses as a result of bodily injury or property damage to third parties

arising out of accidents occurring in your premises during and notified within the currency of the

policy.

Extensions

The policy can be extended on payment of extra premium to include

Pollution Liability: The extension covers liability for death or bodily injury or physical damageto or destruction of tangible property or loss of use of such property damaged or destroyed due to

industrial seepage, pollution and contamination caused by a sudden, unintended and unexpected

happening which takes place in its entirety at a specific time and a specific place. The coverage

will also apply to cost of removing nullifying or cleaning up seepage, pollution or contamination

only when it is caused by a sudden, unintended and unexpected happening. The extension,

however, will not cover fines, penalties, punitive and exemplary damage.

Carriage of effluents (outside the premises): The extension covers liability for death or bodily

injury or physical damage to or destruction of tangible property or loss of use of such property

damaged or destroyed arising out of accidents directly caused by treated effluents whilst being

carried by pipelines outside the premises insured to discharge points. The coverage will not

include pollution risk unless specifically covered.

Liability arising out of transportation: This extension covers legal liability of the Insured for

death or bodily injury or loss of or damage to or loss of use of property arising out of accident

directly caused by materials/dangerous or hazardous substances whilst being transported by

rail/road/pipeline.

echnical Collaborators inclusion: This extension covers legal liability of the technical

collaborators with respect to the collaboration agreement between the Insured and the

Collaborator.


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Plate Glass Insurance

Bajaj-Allianz's Plate Glass insurance policy covers plate glass, glass doors, windows and glassfrontage of buildings.

What does this Policy cover?

This Policy covers loss or damage to the plate glass occasioned by accidental breakage.

The Company will indemnify the Insured

by payment for or replacement or repair of such glass

by payment of the cost of any temporary boarding up necessitated by such breakage

Extensions

Frames and framework are covered up to Rs. 5000 but only as a consequence of breakage of

insured glass

Performance of the company over the last

few years

Despite conditions which were not conducive for growth of gross premium, the company

managed to maintain a growth rate which was more than twice that of the market. The

companys gross written premium (excluding share of premium from the IMTPIP), grew by

33.3% during 2007-08 and, despite intense price competition, company maintained its second

position among the private sector companies in terms of gross written premium. The market


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share of company (excluding premium of specialized insurers) increased from 7.2% in 2006-07

to 8.5% in 2007-08. Including the share of inward reinsurance business from the IMTPIP, the

growth rate would have been 43.0%. During 2007-08, company clocked gross written premium

of Rs. 24,045 Mn excluding share of business from the IMTPIP as compared to Rs 18,033 Mn in

2006-07. Including share of inward business from the IMTPIP, the gross written premium

amounted to Rs. 25,780 Mn. On account of companys policy of steadily increasing its

retention in line with its capital base, the net earned premium for the year (excluding net

premium from inward business of the IMTPIP), rose to Rs. 13,266 Mn, an increase of 58.6%

over the previous year of Rs. 8,366 Mn. Including the net premium arising out of the share of

business from the IMTPIP, the net premium for the year 2007-08 was Rs. 14,134 Mn. Although

de-tariffication had an adverse effect on the price per policy, the number of policies sold

continued to grow. In the year under review, company sold 6.61 Mn. policies as against 4.90

Mn. policies sold in the previous year. This growth indicates that despite severe price

competition, more customers preferred companys service offerings, drawn by its strong brand

image, convenience of buying and satisfaction with its service levels. The total incurred claims

for the current year including actuarial provisions but excluding share of claims of the IMTPIP,

were Rs. 8,375 Mn. as against Rs. 5555 Mn. in the previous year. The number of claims reported

during the year was 413,281 as compared to 309,160 in the previous year.

As on 31st March 2008, Bajaj Allianz General Insurance maintained its premier position in the

industry by garnering a premium income of Rs. 2578 crore, achieving a growth of 43 % over the

last year.Bajaj Allianz has made a profit before taxes of Rs. 167 crore and is the first company to

cross the Rs.100 crores mark in profit after tax by generating Rs. 105 crores.

In the first quarter of 2008-09, the company garnered a gross premium of Rs.733.53 crores

against Rs.573.73 core last year for the same period registering a growth of 28%.

Bajaj Allianz today has a countrywide network connected through the latest technology for quick

communication and response in over 200 towns spread across the length and breadth of the

country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are

interconnected with the Head Office at Pune.


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Financial status of the organization


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Figure shows profit after taxes in Rs.(In Millions)

The company has earned a Profit Before Tax of Rs. 1,679 Mn for the year ended 31 st March

2008, an increase of 43.5% over the previous year profit of Rs. 1,170 Mn. The Profit Before Tax

includes a provision of Rs. 361 Mn towards provisions for losses from the IMTPIP. The net

profit for the year, after provisions for reported losses from the IMTPIP, was Rs. 1,056 Mn as

against Rs. 754 Mn reported in 2006-07, which is an increase of 40.0%. In a year when prices of

insurance fell significantly, increasing its profitability whilst improving the market share has

been a significant achievement for your Company. It is a matter of pride for Bajaj Allianz that it

have become the benchmark for other companies in the market in so far as underwriting


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profitability and return on equity are concerned. The Earnings per share (EPS) for the year ended

31st March 2008 was Rs. 9.59/- (compared to Rs. 6.85/- for the previous year) and the book

value of equity shares on 31st March 2008 was Rs. 52.15/- per share (as against Rs. 37.40/- per

shares as on 31st March 2007).

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OBJECTIVES OF THE

STUDY


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OBJECTIVES OF THE STUDY

To study the sales Strategy of field force of Bajaj Allianz General Insurance.

To study the process of selling of Insurance Policies by Adivsors.


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RESEARCH

METHODOLOGY


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RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. Research

methodology constitutes of research methods, selection criterion of research methods,

used in context of research study and explanation of using of a particular method or

technique so that research results are capable of being evaluated either by researcher

himself or by others. Why a research study has been undertaken, how the research

problem has been formulated, why data have been collected and what particular

technique of analyzing data has been used and a best of similar other question are usually

answered when we talk of Research methodology concerning a research problem or

study. The main aim of research is to find out the truth which is hidden and which has not

been discovered as yet.


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DATA COLLECTION.

SECONDARY DATA SOURCES:

Through internet, various official sites of the companies.

Through pamphlets and brochures of the companies.

Journals & Magazine


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OBSERVATIONS

&

FINDINGS


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OBSERVATIONS & FINDINGS

This sales promotion process was very much satisfying for me not only practically

and academically but it also helped me in developing my communication skill and

enriched my knowledge also.

I have come to know about the importance of marketing especially with regard to

Sales Promotion on the most renowned organization like Bajaj Allianz. Especially

because of emergence of many competitor with excellence in services &

competitive product. The base of this chapter conclusion is on the data analysis or

what we say findings.

I have finding from the insurance care consultants of the Bajaj Allianz. and their

insurance policies on my topic.

When the insurance care consultant is asked why they are dealing in this particular

insurance policies (product) they mostly stressed on companys image. They also

said that all income and age group of customers are attracted towards their product

but buyers are mainly from higher and middle-income group.

Insurance care consultants said that their sale is decreased in the last yearsbecause of negative trend in market. Insurance care consultants said that the

customer are curious in getting insurance policies because they want more

discounting on the products and low claim time after any accident.


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SUGGESTIONS


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SUGGESTIONS

Here are some suggestions, which may help to strengthen the firm further

Many of the insurance care consultants of the Bajaj Allianz. Has the lack of good

communication skills and training. So training should be easy.

Bajaj Allianz. Should use new techniques of sales promotion.

Customer services should be more comfortable than others.

People must be made aware of the benefits of the policies of Bajaj Allianz.

The company should give personal attention to each customer.

Proper assistance should be provided to the customer at the time of claim

settlement.

All the details about the company should be given to the customers.

Regular advertisement of the company should be given TV and Newspaper.

The company must try to find new markets especially in the rural areas.

The company should do frequent analysis of the competitors.


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BIBLIOGRAPHY

Books

Kothari C.R., (1999)Research Methodology, Wishwa Prakashan

Kotler P. and Armstrong G., (2005) Principles of Marketing New Delhi,

PrenticeHall of India

Kotler P., (1999)Marketing Management Analysis, Planning, Implementation and

Control, New Delhi,PrenticeHall of India

Saxena Rajan, (1999) Marketing Management, Tata McGraw Hill

Websites:

www.bajajallianz.com

www.indiainfoline.com

www.irdaindia.org

www.thehindubusinessline.com
http://www.bajajallianz.com/http://www.indiainfoline.com/http://www.thehindubusinessline.com/http://www.bajajallianz.com/http://www.indiainfoline.com/http://www.thehindubusinessline.com/

44814150 Bajaj Allianz General Insurance Co

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Transcript of 44814150 Bajaj Allianz General Insurance Co