Bajaj Allianz ULIP Awareness and Market Share Study

SAAB MARFIN MBA

“A study on customer awareness to enhance market share of Bajaj
Allianz Unit Link Insurance Plan”

“A study on customer awareness to enhance market share of Bajaj 1

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EXECUTIVE SUMMARY

The project report on “A study on customer awareness to enhance

market share of Bajaj Allianz Unit Link Insurance Plan” in Hubli city. I

through under took the project by the help of BAJAJ ALLIANZ Life

Insurance Ltd. Sales team manager Chandru. A.Kallanagoudar

Objectives:

1. To study the awareness level of Bajaj Allianz ULIPs with view

to recommend measure to improve market share.

2. To find vital communication media.

3. To know the factors that influence investors while taking

investment decisions.

4. To find potential market for ULIPs.

Scope of the study:

The research was undertaken to gather information

from the respondent to know exactly how many people

aware of ULIPs in Hubli city and the study is restricted

within the city.

One of the fast growing city in Karnataka and

represents huge market for scope with more than 90

lakhs people.

Hubli is one of the commercial areas .


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It is a place where the small and large industries are

located .with the more increase population and there

style more people are conscious about the their lives.

LIMITATIONS OF THE STUDY

Not single work is exception to the limitations every work has got

its own limitations, so due to time constraint my study confines only to

Hubli city and it is not possible to make extensive study. It is assumed

that the sample selected represents entire population.

RESEARCH METHODOLOGY

Primary (Filed Survey)

Data source : Secondary data

(internal)

Area of Research : Hubli city

Research : Questionnaires

instrument

Sample plan : Personal interview


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Businessman’s,

Sample unit : jobholders,

professionals etc.

Sampling method : Random sampling

Sample size : 100 customers

INDEX

PARTICULAR

Page no

Chapter-I

1) Introduction 09

2) Literature Review 18

3) Statement of the problem 19

4) Purpose of the study 19

5) Scope of the study 26

6) Objectives of study 27

Chapter-II

1) Organization Profile 29

2) Organization Chart 62

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3) Sampling 64

4) Research Design 64

5) Data Collection Methods 64

6) Measuring tools. 65

Chapter-III

1) Result & discussion with graphs & charts.

68

2) Summary, conclusion, & a proposed action plan with resource

requirements and projected benefits to the organization.

84

Chapter-IV

1) Appendix

Questionnaire 88

Weekly Reports

2) Bibliography 92


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Industry overview

A brief history of the Insurance sector

The business of life insurance in India in its existing form started in India

in the year: -

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


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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 By the mid-1950s, there were around 170 insurance

companies in the country's life insurance scene. However,

in the absence of regulatory systems, scams and

irregularities were almost a way of life at most of these

companies

As a result, the government decided nationalizes the life assurance

business in India. The Life Insurance Corporation of India was set up in

1956 to take over around 250 life companies. 245 Indian and foreign

insurers and provident societies taken over by the central government

and nationalized. LIC formed by an Act of Parliament, viz. LIC Act.

For years thereafter, insurance remained a monopoly of the public sector.

It was only after seven years of deliberation and debate - after the RN

Malhotra Committee report of 1994 became the first serious document

calling for the re-opening up of the insurance sector to private players --

that the sector was finally opened up to private players in 2001.

The Insurance Regulatory & Development Authority, an autonomous

insurance regulator set up in 2000, has extensive powers to oversee the

insurance business and regulate in a manner that will safeguard the


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interests of the insured.

INSURANCE SECTOR REFORMS

Due to immense growth in the insurance sectors the regulations were

introduced. In 1993,Malhotra Committee headed by former Finance

Secretary and RBI Governor was formed to evaluate the Indian insurance

industry and give its recommendations. After this committee the

regulatory body for insurance sector was formed with the name of IRDA.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

IRDA has been formed as an authority to protect the interests of

insurance policies, to regulate, promote and ensure orderly growth of

insurance Industry and for matters connected therewith of incidental

thereto.

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act of 1999, The Authority is a ten-member
team consisting of..

1) A Chairman
2) 5 Whole team Members
3) 4 part time members


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Duties, Powers and Functions of IRDA

Section 14 IRDA Act, 1999 lays down the duties, powers and functions of

IRDA

1. The Authority has the duty to regulate, promote and ensure orderly

growth of the Insurance business and reinsurance business.

2. This Include -

a) Issue to the applicant a certificate of registration, renew,

modify, Withdraw, suspend or cancel such registration.

b) Protection of interests of the policy holders in matter

concerning assigning of policy, nomination by policyholders,

insurable interest, settlement of insurance claim, surrender

value of policy and condition of contracts of insurance.

c) Specifying the code of conduct and practical training for

intermediary or insurance intermediaries and agents

3. Specifying the code of conduct for surveyors and loss assessors.

4. Promoting efficiency in the conduct of insurance business.

5. Promoting and regulating professional organization connected with

insurance and reinsurance business.

6. Levying fees and other charges for carrying out the purposes of

this act.

7. Calling from information from, undertaking inspection of,

conducting enquiries and investigation including audit of the

insurers, intermediaries and other organization connected with the


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insurance business

8. Control and regulation of the rates, advantages, terms and

condition

9. Specifying the form and manner in which books of accounts shall

be maintained and statement of account shall be rendered by

insurers and other intermediaries.

10. Regulating investment of funds by insurance companies.

11. Regulating maintenance of margin of solvency.

12. Adjudication of disputes between Insurers and intermediaries

or insurance intermediaries.

13. Supervising the functioning of the Tariff Advisory Committee.

14. Specifying the % of Premium, Income of the insurer to finance

schemes for promoting and regulating professional organizations

15. Specifying the % of Life Insurance Business and general

Insurance Business to be undertaken by the Insurer in the rural or

social sector.

The IRDA since its incorporation as a statutory body has been framing

Regulations and registering the private sector insurance companies. IRDA

being an Independent statutory body has put a framework of globally

compatible regulations.


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Indian Insurance Sector

The Insurance sector in India governed by Insurance Act, 1938, the Life

Insurance Corporation Act, 1956 and General Insurance Business

(Nationalization) Act, 1972, Insurance Regulatory and Development

Authority (IRDA) Act, 1999 and other related acts.

INSURANCE COMPANIES:

In the private sector 12 life insurance and 6 general insurance companies

have been registered.

LIFE INSURERS

Public Sector

Life Insurance Corporation of India

LIFE INSURANCE CORPORATION OF INDIA (LIC)

An Act of Parliament, viz., Life Insurance Corporation Act, formed Life

Insurance Corporation of India (LIC) in September 1956, with capital

contribution from the Government of India.

The objective was: to conduct the business with the utmost economy, in

a spirit of trusteeship; to charge premium no higher than warranted by


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strict actuarial considerations; to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of the capital; to render

prompt and efficient service to policy holders, thereby making insurance

widely popular.

Since nationalization, LIC has built up a vast network of 2,048 branches,
100 divisions and 7 zonal offices spread over the country. The Life
Insurance Corporation of India also transacts business abroad and has
offices in Fiji, Mauritius and United Kingdom.

CURRENT SCENARIO OF THE INSURANCE INDUSTRY
Innovative products and aggressive distribution have become the say of

the day. Indians, have always seen life insurance as a tax saving device,

are now suddenly turning to the private sector that are providing them

new products and variety for their choice.

PRIVATISATION:

There were various reasons given by the government to nationalize

the insurance sector was to take insurance to the mass, facilitate the flow

of long term funds (which insurance companies, by virtue of the business

they are in, have ready access to) into development of infrastructure in

the country, and safe guard the interest of the policy holders. Towards

this end, state insurers did develop the insurance sector, though most


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experts believe that these monopolies could have done much, much more.

In the early nineties is, the government went on a reforms binge

and started loosing controls on Indian industry. In 1993 the government

appointed the Malhotra committee headed former RBI governor

R.N.Malhotra, to draw up a blue print for insurance sector reforms. The

panel submitted its report a year later, recommending privatization,

backed by stiff entry guidelines and stringent regulations, so as to avoid

repeat per nationalization free for all.

The insurance regulatory and development authority (IRDA)

was founded to regulate the sector and over see the process of

privatization. In 2000, the IRDA started giving out licenses, and a year

later, the first of the private players started operation. The wheel had

come full circle.

Under state control, the insurance sector, both life and

non-life ,grew steadily. Still, Indians are not adequately insured and lag

behind most countries. Total insurance penetration (insurance premium

as a percentage of gross domestic product) is dismal when compared to

its economic standing. Just 2% of the population has some of life

insurance.


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LIFE INSURANCE COMPANIES IN INDIA & THEIR
MARKET SHARE (as per march-06):

INDIAN FOREIGN COUNTRY INSURER WEBSITE MARKET

PROMOTER PROMOTER SHARE

Bajaj Auto Allianz AG Germany Bajaj Allianz bajajallianz.co 7.56

Life Insurance .in

ICICI Prudential USA ICICI iciciprulife.co 7.35

Prudential Life m

Insurance

HDFC Standard UK HDFC hdfcinsurance 2.9

Life Standard Life .com

Insurance

SBI Cardif (arm Canada SBI Life sbilife.co.in 2.3

of BNP Insurance

paribas)

Aditya Birla Sun Life Canada Birla Sun Life birlasunlife.co 1.9

Group Insurance m

TATA USA tata_aig.com 1.3


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Internationa Insurance

l Group

Max India New York USA Max New York Maxnewyorklif 1.2

life life insurance e.com

Dabur India Aviva Plc USA Aviva Life avivaindia.co 1.1

Insurance m

Kotak Old Mutual Australia Kotak Omkotakmahi 1.1

Mahindra Plc Mahindra Old ndra.com

finance Mutual Funds

Vysya Bank ING Group Netherlan INGVysya Life ingvysyalife.c 0.8

ds Insurance om

Reliance Amp Sanmar Australia Reliance life Relianceindia. 0.5

insurance com

Jammu & Met life USA Met life Metlifeindia.c 0.4

Kashmir insurance om

bank

Sahara India None India Sahara India Sahara India 0.1

Shriram Sanlam S.A Sriram life Sriramlife.com 0.0

insurance

Government None India Life insurance Licindia.com 71.4
corporation
of India (LIC)


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Literature Review:

The project report on “A study on customer awareness to enhance

market share of Bajaj Allianz Unit Link Insurance Plan” in Hubli. I through

under took the project by the help of BAJAJ ALLIANZ Life Insurance Ltd.

Sales team manager Chandru. A.Kallanagoudar

Body of the Report:

Primary data was collected by administration questionnaire of 100

customers. The questionnaire was specially framed to meet the

requirement of the survey and the following details.

Direct contact was made with the respondents through random

sample to collect the needful information with reference to our objective

as per to meet the survey requirement.

Interview technique:


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Direct personal interview was conducted throughout project using

direct structured and self-administrative questionnaire.

Conclusion & Recommendation:

Analysis was based on the result of the research conducted and

the recommendations are based on the analysis.

Limitation :

The major limitation of the project was time frame.

STATEMENT OF THE PROBLEM
“A study on customer awareness to enhance market share of

Bajaj Allianz Unit Linked Insurance Products”.

Management Problem:

In the project the management problem is the ULIP’s is new in the market

& the lot of people are don’t know about the ULIP’s the management

wants the improve market share of ULIP’s.

Advantages of investing in ULIP:


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ULIPs have been selling like proverbial `hot cakes' in the recent past and

they are likely to continue to outsell their plain vanilla counterparts going

ahead. So what is it that makes ULIPs so attractive to the individual is, as

follows

1.Insurace cover plus savings: ULIP serve the purpose of providing life

insurance combined with savings at market-linked returns. To that extent,

ULIPs can be termed as a two-in-one plan in terms of giving an individual

the twin benefits of life insurance plus savings. This is unlike comparable

instruments like a mutual fund for instance, which does not offer a life

cover.

2.Multiple investment options: ULIP offer a lot more variety than

traditional life insurance plans. So there are multiple options at the

individual's disposal. . ULIPs generally come in three broad variants:

Aggressive ULIPs (which can typically invest 80%-100% in equities,

balance in debt)


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Balanced ULIPs (can typically invest around 40%-60% in equities)

Conservative ULIPs (can typically invest up to 20% in equities)

Although this is how the ULIP options are generally designed, the exact

debt/equity allocations may vary across insurance companies. Individuals

can opt for a variant based on their risk profile. For example, a 30-Yr old

individual looking at buying a life insurance plan that also helps him

build a corpus for retirement can consider investing in the Balanced or

even the Aggressive ULIP. Likewise, a risk-averse individual who is not

comfortable with a high equity allocation can opt for the Conservative

ULIP.

3.Flexibility

Mutual Funds also offer hybrid/balanced schemes that allow an individual

to select a plan according to his risk profile. The difference lies in the

flexibility that ULIPs afford the individual. Individuals can switch between

the ULIP variants outlined above to capitalize on investment opportunities

across the equity and debt markets. Some insurance companies allow a

certain number of `free' switches. This is an important feature that allows

the informed individual/investor to benefit from the vagaries of

stock/debt markets. For instance, when stock markets were on the brink

of 7,000 points (Sensex), the informed investor could have shifted his

assets from an Aggressive ULIP to a low-risk Conservative ULIP.


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Switching also helps individuals on another front. They can shift from an

Aggressive to a Balanced or a Conservative ULIP as they approach

retirement. This is a reflection of the change in their risk appetite, as they

grow older.

4. Works like an SIP: Rupee cost-averaging is another important benefit

associated with ULIPs. With an SIP, individuals invest their monies

regularly over time intervals of a month/quarter and don't have to worry

about `timing' the stock markets. As a matter of fact, even the annual

premium in a ULIP works on the rupee cost-averaging principle. An

added benefit with ULIPs is that individuals can also invest a one-time

amount in the ULIP either to benefit from opportunities in the stock

markets or if they have an investible surplus in a particular year that they

wish to put aside for the future.

The chart below shows how ULIP can meet multiple needs at different life

stages.

Integrated Financial Planning

Starting a job, Recently Married, with

Single married, no kids

individual kids


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Your Low Reasonable Higher

Need protection, protection, still protection, still

high asset high on asset high on asset

creation and creation creation but

accumulation steadier

options,

increase

savings for

child

Flexibility Choose low Increase death Increase death

death benefit, benefit, choose benefit, choose

choose growth/balanc balanced

growth/balanc ed option for option for

ed option for asset creation asset creation.

asset creation Choose riders

for enhanced

protection. Use

top-ups to

increase your

accumulation


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Kids going to Higher studies for child, Children independent,

school, college marriage nearing the golden years

Higher Lump sum money for Safe accumulation for the

Protection, high education, marriage. golden yrs.Considerably

on asset Facility to stop premium lower life insurance as the

creation but for 2-3 yrs for these dependencies have

steadier extra expenses decreased

options,

liquidity for

education

expenses

Withdrawal Withdrawal from the Decrease the death

from the account for higher benefit-reduce it to the

account for the education/marriage minimum possible. Choose

education expenses of the child. the income investment

expenses of Premium holiday-to stop option. Top-ups form the

the child premium for a period accumulation (with

without lapsing the policy reduced expenses) for the

golden yrs cash

accumulation


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Because of their flexibility to adjust to different life stage needs, ULIPs fit

in very well with financial planning efforts.

Limitation:

1. It is prudent to make equity-oriented investments based on an

established track record of at least three years over different market

cycles. ULIPs may not fulfill this criterion in near future.

2. Insurance and savings are two different goals and it is better to

address them separately rather than bundle them into a single product. A

combination of a term plan and a mutual fund could give better results

over the long term.

3.The free hand given to ULIPs might prove risky if the timing of exit

happens to coincide with a bearish market phase, because of the

inherently high equity component of these schemes.


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4. An initial allocation charge is deducted from investor premiums for

selling, marketing and broker commissions. These charges could be as

high as 65 per cent of the first year premiums. Premium allocation

charges are usually very high (5-65 per cent) in the first couple of years,

but taper off later. The high initial charges mainly go towards funding

agent commissions, which could be as high as 40 per cent of the initial

premium as per IRDA regulations.

The charges are higher for a linked plan than a non-linked plan, as the

former require lot more servicing than the latter, such as regular

disclosure of investments, switches, re-direction of premiums,

withdrawals, and so on. Insurance companies have the discretion to

structure their expenses structure whereas a mutual fund does not have

that luxury. The expense ratios in their case cannot exceed 2.5 per cent

for an equity plan and 2.25 per cent for a debt plan respectively. The lack

of regulation on the expense front works to the detriment of investors in

ULIPs.

5. The front-loading of charges does have an impact on overall returns as

investors lose out on the compounding benefit. Insurance companies

explain that charges get evened out over a long term. Thus investors are

forced to stay with the plan for a longer tenure to even out the effect of

initial charges as the shorter the tenure, the lower will be the investor real


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returns.

6. In effect, when investor lock in their money in a ULIP, despite the

promise of flexibility and liquidity, investor will stuck with one fund

management style. This is all the more reason to look for an established

track record before committing investor hard-earned money.

7. Investor life cover charges would depend on the accumulation in

investor investment account. As accumulation increases, the amount at

risk for the insurance company decreases. However, with increasing age,

the cost per Rs 1,000 sum assured increases, effectively increasing policy

holder overall insurance costs.

8. It would deal with the fact that expenses on ULIPs were on the higher

side in the initial years and therefore; the exit option would hardly prove

to be beneficial for the investors.

9. ULIP face tough competition from mutual funds, which are short-term

instruments. Hence, a liquidity option makes ULIPs as attractive but

because of the high front-end charges on policy, investor may not be left

with much to withdraw at the end of 3 years.


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Scope of the study:

The research was undertaken to gather information from the

respondent to know exactly how many people aware of ULIPs in Hubli city

and the study is restricted within the city.

The reason for confining the scope of the research in Hubli were.

2) One of the fast growing city in Karnataka and represents huge

market for scope with more than 90 lakhs people.

3) Hubli is one of the commercial areas .

4) It is a place where the small and large industries are located .with

the more increase population and there style more people are

conscious about the their lives.

Objectives:

1. To study the awareness level of Bajaj Allianz ULIPs with view

to recommend measure to improve market share.

2. To find vital communication media.


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3. To know the factors that influence investors while taking

investment decisions.

4. To find potential market for ULIPs.


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1. ORGANISATION PROFILE:

Bajaj Group

A STRONG INDIAN BRAND- HAMARA BAJAJ
One of the Largest 2 & 3 wheeler manufacturer in the world .

21 million + vehicles on the roads across the globe

managing funds of over Rs5200crore


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Bajaj Auto finance one of the largest auto finance companies in

India Rs5934cr turnover and profits after tax of 732cr in 2004-05

Bajaj group ,a Rs. 8,000 crore group ,a household name in India

with a strong brand image and brand loyalty.

Bajaj Group is synonymous with quality and customer focus.

Bajaj Auto is a Rs.4,000 crore auto giant.

4th largest in the world.

Has over 15,000 employees.

Allianz Group

Allianz Group is one of the world's leading insurers and

financial services providers

Founded in 1890 in Berlin,

Allianz is one of the leading global insurance companies

headquartered in Munich, Germany .


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Established in 1890 ,more than 110 years of experience in

insurance.

Allianz has over 700 subsidiaries and approximately 1,81,000

employees worldwide.

Allianz global network extends to over 70 countries in:

o Europe .

o South and Northern Americas.

o Africa.

o Middle East.

o Asia Pacific.

World largest insurance company by revenue 520353cr

worldwide 2nd gross written premium 477930cr

3rd largest assets under management(AUM) and largest insurance

companies AUM of Rs9594200cr.

11th largest corporation in the world

50% global business from life insurance close to 60 million lives

insured globally.

Allianz’ shares are treated at the 5 leading international stock

exchanges:

Frankfurt.

London .


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Paris.

Zurich.

New York.

Insurance to almost half of the Fortune 500 companies.

Bajaj Allianz life Insurance


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Bajaj Allianz life Insurance Company Limited is a joint venture between Bajaj Auto

Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and

strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to

conduct General Insurance business (including Health Insurance business) in India. The

Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74%

and the remaining 26% is held by Allianz, AG, Germany.

Key Achievements in FY 2005-06 :

• No.1 Pvt Life Insurer FY 2006-06. Leading by Rs. 78 Cr.

• No.1 Pvt Life Insurer in Retail Business. Leading by Rs. 339 Cr.

• Whopping growth of 216% for the FY 2005-06

• Have sold over 13,00,000 policies to satisfied customers


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• Is backed by a network of 550 offices spanning the country

• Accelerated Growth

Fiscal Year No of policies sold in FY GWP in FY

2001-2002 (6mths) 21,376 Rs 7 cr.

2002-2003 1,15,965 Rs 69 cr.

2003-2004 1,86,443 Rs 221 cr.

2004-2005 2,88,189 Rs 1002 cr.

2005-2006 7,81,685 Rs 3134 cr.

Assets under management Rs 3,324 cr.

Shareholder capital base of Rs 500 cr.

Company punch line

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Mission:

As a responsible customer focused market leader, we will strive

to understand the insurance needs of the consumers and translate it into

affordable products that deliver value for money.

Why Bajaj Allianz Life Insurance:

The Bajaj Allianz Difference

Business strategy aligned to clients’ needs and trends in Indian and

global economy / industry.

Internationally experienced core team, majority with local

background.

Fast, decentralized decision-making.

Long-term commitment to market and clients.

Shareholder in Bajaj Allianz life insurance company:


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Bajaj Auto Limited

Bajaj Auto Limited is the largest manufacturer of two and three –wheelers

in India and also one of the largest manufacturers in the world. Bajaj Auto

has been in operation for over 55 years. As a promoter of Bajaj Allianz

General Insurance Company Ltd., Bajaj Auto has the following to offer.

Vast distribution network.

Knowledge of Indian consumers.

Financial strength and stability to support the insurance business.

CHANNEL PARTNERS

Bancassurance Vantage


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UNIT LINKED INSURANCE PLAN OR MARKET LINKED
INSURANCE PLAN (ULIP).

INTRODUCTION TO ULIP

ULIP came into play in the 1960s and became very popular in Western

Europe and Americas. The reason that is attributed to the wide spread

popularity of ULIP is because of the transparency and the flexibility which

it offers. As times progressed the plans were also successfully mapped

along with life insurance need to retirement planning. In today’s times,

ULIP provides solutions for insurance planning, financial needs, financial

planning for children’s future and retirement planning. Features of ULIP

distinguish itself through the multiple benefits that it provides to the

consumer. The plan is a one-stop solution providing: Life protection·

Investment and Savings· Flexibility- Adjustable Life Cover- Investment

Options· Transparency· Options to take additional cover against- Death

due to accident- Disability- Critical Illness- Surgeries· Liquidity.

ULIP distinguishes itself through the multiple benefits it provides to the

policyholders. These plans are designed with a view to help the

customers to utilize the market opportunities by investing in the share


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market, capital market and at the same time have the facility of Death

Benefit and Maturity Benefit.

Meaning

It is a plan, which provides Life Insurance, and here policy value at any
time varies according to the value of the underlying asset at that time.
It is a plan that provides the client with the benefit of protection and
flexibility.

An ULIP plan works as a one-stop advantage for the policyholder. It gives
the policyholder a wholesome advantage of integrated financial planning.

STRUCTURE OF ULIP: -

ULIP

CONTRIBUTION

LESS- CHARGES

“A study on INVESTMENT
customer awareness to enhance market share of Bajaj 40
LIFE COVER
AllianzAS
REPRESENTED Unit Link Insurance Plan”
NAV

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NAV CONCEPT

It exhibits the value (or the price) that one has for his investment or one
will have to pay for his investment.

As, the investment made by different people are different, the value (or
the price) is the expressed in per unit terms. It helps in knowing the value
of Insurance at any point of time.

Technical Calculation of NAV: -

UNIT Value = (Total market Value of all assets invested less expenses
related
to Investment management / Total no. of outstanding
units)

Factors affecting NAV:

Market Value of investment portfolio, Number of Units, Expenses and
Investment Income.


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Ex: If 2,00,000 /- has been accumulated in the equity fund and the no. of
units issued is 10,000 /- then the NAV of the equity fund is: -

2,00,000 / 10,000 = Rs 20 / -

As the equity market develop the fund grows from 2,00,000 / - to
220,000/-
Now the NAV = 2,20,000 / 10,000 = Rs 22 / -
If among these 10,000 units the policyholder has 5000 units then the
value of investment as of now is Rs 1,10,000.
Thus a unit linked plan actually tells, what is the value of the fund

.BASIC FEATURES OF ULIP

1. Life protection
2. Investment and savings
3. Flexibility
4. Transparency
5. Added Benefits
a) Death due to accident
b) Any kind of disability
c) Critical illness
d) Surgeries
6. Liquidity
7. Tax Planning
8. Adjustable Life Cover
9. - Investment Options


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-

1) LIFE PROTECTION


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The graph shows the various needs of the customer at different
point of time, individuals needs differ and his need for life
protection fluctuates. ULIP satisfies the varying needs of the
customer providing him with more and more protection as and
when he requires, by allowing the policyholder to increase or
decrease the death benefit.
It is usually multiple of the contribution being paid, which ensure
that the contribution is adequate enough to provide life protection.
And is also able to maintain a sem balance between protection and
savings.

2) INVESTMENTS AND SAVINGS

ULIP provides the client with option of investing as per his risk
appetite and gets returns accordingly. These various options
available for an individual to make investment in comparatively
high risks instruments and get high returns. Below shown is a
graph illustrating the various investment options for a client.


SAAB MARFIN MBA

Risk
Example 1: Here are four types of funds in which a client can invest.
In each case the risk goes on increasing with the type of fund. The
client has an option to shift as the risk and return orientation
changes (Switch).

3) FLEXIBILITY

The client has an option to choose the amount of sum assured and
the premium amount he is capable of paying. In case of certain
plans of ULIP the client is allowed to choose the premium.


SAAB MARFIN MBA
Eg: Lifetime and Lifetime I the client has a flexibility to decide the
life cover according to his financial needs, independent of premium
selected.

Following points enumerate the flexibility feature of ULIP

a) Increase in death benefit.

As life cycle changes of a client he passes through various
risks and responsibilities. He can increase or decrease the
death benefit accordingly.

b) Decrease in death benefit.

If the client is unable to pay the same amount of premium he
can decrease the death benefit with certain conditions
applying according to the particular plans.

c) Premium holiday

After paying the premium regularly for 3 years from the
starting date of the policy the client can take a premium
holiday if he is unable to pay a particular premium due. On
returning from the premium holiday the client can pay the
previous premiums if he desires or continue from that date.

d) Choice of fund.


SAAB MARFIN MBA
There are four kinds of funds available for a client of ULIP. He
has an option to switch between these four funds. He can
either choose only one or invest in all four depending on his
risk tolerance.

Plan Plan objective Risk Investment pattern
Maximiser High growth and High Equity and equity
(Growth) capital related securities:
appreciation over Max 90%, Debt,
a long terms money market and
cash: Min 10%
Balancer Balance of capital Average Equity and equity
(balanced) appreciation and related securities:
study returns Max 40%, Debt,
over a long money market and
terms cash: Min 60%
Preserver Equal balance of Low Debt instrument:
capital Max 50%
appreciation and Money market and
study returns cash: Min 50%
over a long term
Protector Study returns Moderate Debt instrument:
(Income) over a long term. Max 100%
Money market and
cash: Max 25%

e) Switch between the funds

The policyholder has a choice two reallocate the premium
paid by him on every premium policy anniversary. He can
switch between the above four funds to avail the advantages


SAAB MARFIN MBA
of market fluctuations.

f) Top ups

Some times the client may have surplus amount after his
expenses. ULIP allows him to save that amount by investing
in the insurance he can avail the benefit of top up by paying
extra premium, which will be invested in the share market by
the insurer company. The client gets expert fund
management. The policyholder is allowed to do as many top
ups in the tenure of plan.

g) Premium redirection

The policyholder is allowed to reallocate the premium paid
each time to different fund structure. Thus whenever the
premium is due (As per the premium payment mode), he can
redirect the current premium into different asset allocations
than the previous time. This helps the policyholder to
optimize the funds in accordance to market with out using
the switch option.

e) Assignment option

The policyholder can assign the policy to any of the nominees or
any bank in case he has taken a loan on the title of the policy.
Unfortunately if something happens to the policyholder then the
insurer will repay the loan taken by the client to the extent of
premium paid.

4) Transparency


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ULIP products are transparent in terms of, the policyholder is aware
of where his contribution is being allocated. The policyholder is
aware of the various charges charged to him.
The Various charges of the ULIP are: -
a) Contribution related Charges- Running expenses of the policy
b) Administrative Charges- Issuance cost, distribution costs etc
c) Fund Management Fee- cost of being and selling the various
financial instruments for various funds.
d) Mortality Charges: cost of providing life protection.
e) Rider charges: cost of other protection charges.
f) Surrender charges: cost to cover initial expenses.
g) Bid offer charges: difference between the offer price of units and
the selling price i.e. bid price of units. It covers the cost of
selling the policy.
h) Transaction specific charges: cost of changing funds, toping up
the investment component or withdrawals
Daily NAV: A feature that lets us know on a daily bases, how the
money in insurance plan is growing.

5) ADDED BENEFITS

To get extra protection ULIP provides the policyholder the
advantage of rider attachments.
a. Death due to accident (ADBR)
b. Disability (ABR)
c. Critical Illness (CIBR)
d. Surgeries (MSAR) (Now discontinued)

6) LIQUIDITY


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The feature makes ULIP a marketable plan. The policyholder has an
option of withdrawals in case if need arises. ULIP provides easy
access to the money as and when the policyholder may requires.
There are two types of withdrawal options.
a) Partial b) complete
The value of withdrawal reduces the death benefit by same amount.
This facility can be avail only after three full premium payment
years are completed. The minimum worth of this units and a
maximum where in at least Rs. 10000/- worth units remain in all
the funds put together.

7) TAX PLANNING

This is another feature of ULIP that motives the policyholder to
invest in the insurance plans. They usually invest to avail the tax
benefit. Regulation in India allows tax benefits in the contribution
paid under section 88, contribution paid for health riders critical
illness and major surgical is allowed tax benefits under section 80D,
as per the prevailing tax laws.

Maturity benefits are tax free under section 10(10) D, provided life
come is at least 5 times of the annual contribution paid.
Death benefit is tax free under section 10(10) d.
With so many tax benefits available in one instrument ULIP tends to
be an intelligent tax-planning tool.
Working of a ULIP Plan
Life rime regular Premium

Allocated Part of the
Premium Premium towards
This goes
Allotment of Insurance to the

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For Example
A client put in regular contribution of Rs.20, 000 /-. From this amount
a % is deducted as contribution.
Therefore if the contribution related expense is 40% - Rs.8000/- will be
deducted as contribution charges.
The amount that is now available is Rs.20000-8000=12000/-

Now, if the client who is available is aged 30 years were to take a life
cover of 500,000/- then mortality (1.50/- per thousand at the age of 30)
charge of 750 /- will be deducted.
This amount will provide life cover to the policy. The remaining amount
of –11250/- will be invested in any one of them or all of them.

The Investment is shown in terms of units. Thus if client invests in debt
fund and the NAV of the debt fund is Rs. 15/-(market price) then the no.
of units that the client will get is 11,250/15=750. For this


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investment-fund management fee will be charged and the charges for
maintaining the policy an administrative charge are levied.

Are ULIPs similar to mutual funds?.

In structure, yes; in objective, no. Because of the high

first-year charges, mutual funds are a better option if you have a

five-year horizon.

But if you have a horizon of 10 years or more , then ULIPs

have an edge. To explain this further a ULIP has high first –year

charges towards acquisition (including agents commissions).

As a result, they find it difficult to outperform mutual funds in

the five years. But in the long term, ULIP managers have advantages

over mutual funds managers.

Since policyholder premium come at regular intervals, investments can

be planned out more evenly.

Mutual fund managers cannot take a similar long term view

because they have bulk investors who can move money in and out of

schemes at short notice.

Which is better, unit-linked or ‘Traditional plan’?

The two strong arguments in favor of unit-linked plans are that

–the investor knows exactly what is happening to his money and

two ,it allows the investor to choose the assets into which he wants his

funds invested.


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A traditional ‘with profits,’ on the other hands, is a black box and

a policyholder has little knowledge of what is happening. An investor

in a ULIP knows how much he is paying towards mortality,

management and administration charges.

He also knows where the insurance company has invested the money.

The investor gets exactly the same returns that the fund earns, but he

also bears the investment risk. The transparency makes the product

more competitive .So if you are willing to bare the investment risk in

order to generate a higher return on your retirement funds, ULIPs are

for you.

Traditional ‘with profits’ policies too invest in the market and

generate the same

Returns prevailing in the marker. But here the insurance company

evens out returns to ensure that policyholders do not lose money in a

bad year. In that sense they are safer. ULIPs also offer flexibility. For

instance, a policyholder can ask the insurance

Company to liquidate units in his account to meet the mortality

charges if he is unable to pay any premium installment.

This eats into his savings, but ensures that the policy will

continue to cover his life.

Why do insurers prefer ULIPs?


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Insurers love ULIPs for several reasons. Most important of all,

insurers can sell these policies with less capital of their own than what

would be required if they sold traditional policies.

In traditional ‘with profits’ policies, the insurance company bears

the investment risk to the extent of the assured amount .In ULIPs, the

policyholder bears most of the investment risk.

Since ULIPs are devised to mobilize savings, they give insurance

companies an opportunity to get a large chunk of the asset

management business, which has been traditionally dominated by

mutual funds.

Are unit-linked insurance plans good?

Most insurers in the year 2004 have started offering at least a

few unit-linked plans . Unit-linked life insurance products are those

where the benefits are expressed in terms of number of units and unit

price. They can be viewed as a combination of insurance and mutual

funds.

The number of units that a customer would get would depend

on the unit price when he pays his premium. The daily unit price is

based on the market value of the underlying assets (equities, bonds,

government securities, etc) and computed from the net asset value.

The advantage of unit –linked plans is that they arte simple,

clear, and easy to understand. Being transparent the policyholder gets

the entire upside on the performance of his fund .Besides all the


SAAB MARFIN MBA
advantages they offer to the customers, unit-linked plans also lead to

an efficient utilization of capital.

Unit –linked products are exempted from tax and they provide

life insurance. Investor welcome these products as they provide capital

appreciation even as the yields on government securities have fallen

below 6 percent , which has made the insurers slash payouts.

According to the IRDA, a company offering unit-linked plans

must give the investor an option to choose among debt, balanced and

equity funds. If you opt for a unit-linked endowment policy, you can

choose to invest your premiums in debt, balanced or equity plans.

If you choose a debt plan, the majority of your premiums will

get invested in debt securities like gilts and bonds. If you choose

equity, then a major portion of your premiums will be invested in the

equity market. The plan you choose would depend on your risk profile

and your investment needs.

The ideal time to buy a unit-linked plan is when one can

expect long term growth ahead . This is especially so if

one also believes that current market values (stock valuations ) are

relatively low.

So if you are opting for a plan that invests primarily in equity , the

buzzing market could lead to windfall returns. However , should the buzz

die down , investors could be left stung.


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If one invests in a unit-linked pension plan early on , say when

one is 25, one can afford to take the risk associated with equities , at

least in the plan’s initial stages. However ,as one approaches retirement

the quantum of returns should be subordinated to capital preservation.

At this stage , investing in plan that has an equity tilt may not be a good

idea.

Considering that unit-linked plans are relatively new launches, their

short history does not permit an assessment of how they will perform in

different phases of the stock market. Even if one views insurance as a

long term commitment, investments based on performance over such a

short time span may not be appropriate.

Allianz Bajaj launches its first unit linked policy.

Allianz Bajaj Life Insurance Company has launched Unit Gain , the

company’s first unit linked policy. Unit Gain allows customers to combine

the benefits of life insurance with higher investment returns from equity

and debt markets.

Unit Gain was launched with a choice of four funds to the

customer- equity, debt, balanced and cash funds. The cash funds comes

with the guarantee that the value of units in the fund will not go down.

Unit Gain is one of the most flexible unit linked plans in the market,

and allows the customer to change the sum assured during the term of

the policy to match their changing life insurance requirements. Also the


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plan offers a premium holiday feature, where the policy is kept in-force

even when premiums are not paid as long as there are enough units to

cover charges.

The policy provides customers flexibility in paying additional

premium through single premium top-ups, as well as in increasing the

level of regular premium in later years (along with increase in income). In

addition, the facility of cash withdrawals allows the Bajaj Allianz ULIP’S

products.

Bajaj Allianz ULIP’S products:

1) Unit Gain Regular Premium:

The Bajaj Allianz unit comes with a host of features to allow you to

have the best of all words –protection and investment with flexibility like

never before.

Some of the features of this plan are:

Guaranteed death benefits.

Choice of 6 investment funds with flexible investment management

you can change funds at any time.

Attractive investment alternative to fixed investment securities.

Provision for full/partial withdrawal any time after 3 full years

premiums are paid.

Unmatched flexibility –to match tour charging needs.


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How does the plan work:

The premiums paid are invested in fund/funds of your choice

(depending on the allocation rate) &unit are allocated depending on the

price of units for the fund/funds.

The value of your policy is the value of units that you hold in the

fund/funds. The insurance cover charges are deducted through monthly

cancellation of units . The funds administration charge and fund

management charge are priced in the unit value.

Minimum sum assured= 5 times the annual premium.

Maximum sum assured =y times the annual premium where y will be

as per the following table.

Age 0-30 31-35 36-40 41-45 46-55 56-60

Group

Y 125 105 75 55 30 20

Important details of “Bajaj allianz unit gain RP” plan

Minimum age at entry: 0(risk commences at age 7, and ceases after

age 70)

Maximum age at entry :60

The minimum age at entry for all additional benefits is 18 years.

The maximum age at entry for all additional benefits is 50 years.


SAAB MARFIN MBA
All additional benefits are available till age 65.

2) Unit Gain Single Premium:

The bajaj allianz unit gain SP comes with a host of features to

allow you to have the best of all worlds- protection and investment

with flexibility like never before.

Some of the feature of this plan are

Convenient single premium payment, with option to pay top-ups later.

100% of the single premium/top ups are allocated.

Guaranteed death benefits.

Choice of 6 investment funds with flexible investment management you

can with between funds at any time .

Attractive investment alternative to fixed interest securities.

Provision for full/partial withdrawal any time after the single premium is

paid.

Unmatched flexibility – to match your changing needs.

How does the plan works?

100% of the single premium is invested in a fund/funds. The

value of your choice and unit are allocated depending on the price of

units for the fund/funds the value of your policy is the total value of units

that you hold in the fund/funds . The insurance cover changes are

deducted through monthly cancellation of units. The funds

administration charge and fund management charge are pried in the unit

value.


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Minimum sum assured =1.01 times the single premium.

Maximum sum assures =y times the single premium where y will

be as per the following table.

Age 0-30 31-35 36-40 41-45 46-60 61-67

Group

Y 45 40 25 15 5 1.01

Important details of the “Bajaj allianz unit gain SP” plan:-

Minimum age at entry :0(risk commences at age 7, and ceases

after age 70)


Minimum single premium :Rs .25000.

Minimum top-up :Rs 10000.

3) Unit Gain Plus Regular Plan:

The Bajaj allianz unit gain plus RP comes with a host of

features to allow you to have the best of all words – protection and

investment with flexibility like never before.

Some of the key feature of this plan are


SAAB MARFIN MBA

Guaranteed death benefit.

Choice of six investment funds with flexible investment

management you can change funds at any time .

Attractive investment alternative to fixed –interest securities.

Provision for full/partial withdrawals any time after 3 full years

premium are paid

Unmatched flexibility –to match changing needs.

How does the plan work?

The premium paid are invested in a fund or funds of your

choice (depending on the allocation rate) and units are allocated

depending on the price of the units for the fund or funds.

The insurance cover and administration charges are deducted through

cancellation of units. The fund management charge is prices in the

unit value.

Minimum sum assured = 5 times the annual premium.

Maximum sum assured = y times the annual premium where y

will be as per the following table.

Age 0-30 31-35 36-40 41-45 46-55 56-60

Group

Y 125 90 60 40 20 15


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Important details of the “Bajaj Allianz Unit Gain Plus RP” plan

Minimum age at entry :0(Risk commences at age 7 and ceases after

age 70)


Minimum age at entry for all additional benefits is 18 years.

The maximum age at entry for additional benefits is 50 years.

All additional benefits are available till age 65.

4) Unit Gain Plus Single Premium Plan:

The bajaj allianz unit gain plus Sp comes with a host of feature to

allow you to have the best of all words – protection and investment with

flexibility like never before.

Some of the key feature of this plan are

Convenient single premium payment, with option to pay top-ups

later.

98% of the single or top-ups are allocated.

Guaranteed death benefit.

Choice of five investment funds with flexible investment

management you can change funds at any time.

Attractive investment alternative to fixed –interest securities.

Unmatched flexibility – to match your changing needs.

Provision for full or partial withdrawal any time after the single

premium is paid.


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How does the plan works ?

98% of the single premium is invested in a funds or funds of

your choice and units allocated depending on the price of units for the

fund or funds . The value of your policy is the total value of units that

you hold in the fund or funds. The insurance cover and fund

administration charges are deducted through cancellation of units.

The funds management charge is priced in the unit value.

Minimum assured =1.01 times the single premium.

Maximum sum assured = y times the single premium where y

will be as the following table.

Age 0-30 31-35 36-40 41-45 46-60 61-69

Group

Y 45 35 20 10 5 1.5

Important details of the “Bajaj Allianz Unit Gain Plus SP” Plan

Minimum age at entry :0(Risk commence at age 7,and ceases after

age 70)


Minimum single premium :Rs. 25000.

Minimum top-up :Rs .5000.


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5)Unit Gain Life Pension plan:

With Bajaj Allianz ,you can take control of your future and ensure

a retirement you can look forward to. This plan has been be signed to

take of your retirement and insurance needs, there by providing you with

a comprehensive solution for life time.

There are two packages choose from:

1. Unit gain life pension regular premium.

2. Unit gain life pension single premium.

Defending on the amount of premium you want to pay, you choose sum

assure as per the condition given below:

1. Minimum sum assured =5 times annual/1.01 times single premium.

2. maximum sum assured =y times the annual/single premium where

y will be as per the following table:


SAAB MARFIN MBA

Age 18-30 31-35 36-40 41-45 46-55 55-60 61-65

group

Y for 125 90 60 40 20 15 10

regular

premium

Y for 45 35 20 10 5 5 1.5

regular

premium

How does the Bajaj Allianz Unit Gain Life Pension Plan Work?

The premium paid are invested in funds of your choice

(depending on the allocation rate) and unit are allocated depending on

the price of unit for the fund or funds. The value of your policy is the

total value of units that hold in the fund or funds. The insurance cover

and administration charges are deducted through cancellation of units.

The fund management charge is priced in the unit value.

Important details of the “Bajaj Allianz Unit Gain Life Pension” Plan:

Minimum Maximum

Age of entry 18 65

Deferment period 5 40

Age at vesting 45 70


SAAB MARFIN MBA

6) Unit Gain Easy Pension Plan:

With bajaj allianz , you can take control of your future and ensure a

retirement you can look for word to. There are two packages to choose

form:

1. Unit gain easy pension regular premium.

2. Unit gain easy pension single premium.

How does the Bajaj Allianz Unit Gain Easy Pension Plan works?

The premium paid are invested in a fund/funds of your choice

(depending on the allocation rate) and units are allocated depending on

the price of units for fund/funds. The value of your policy is the total

value of units that you hold in the fund/funds. The administration are

deducted through cancellation of units. The fund management is priced

in the unit’s value.

Important details of “Bajaj Allianz Unit Gain Life Pension” Plan:

Minimum Maximum

Age of entry 18 65

Deferment period 5 40

Age at vesting 45 70


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ORGANISATION CHART

2.ORGANISATION CHART
Bajaj Allianz Life Insurance Company
Bajaj Allianz Life
Insurance

Agency Channel Bancassurance Group and Alternate
“A study on customer awareness to enhance market shareChannel
of Bajaj 67
Branches Standard Chartered Group Employee Benefit
Bank

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ORGANISATION CHART OF THE BRANCH

BAJAJ ALLIANZ LIFE INSURANCE

CHANNEL BANC ASSURANCE CORPORATE

ZONAL SENIOR customer awareness to enhance market share of Bajaj 68
“A study on MANAGER

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3. SAMPLING:

Sampling: we are taken random sample

Sample size: 100 consumers

Sample unit: collection of data was made from customer that is

respondents

4. RESEARCH DESIGN:


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The research design chosen was exploratory in nature as it

involved effectives study to determine the awareness of ULIPs and its

products since the population in Hubli city is very vast. It is difficult to

carry out 100% with in a limited time period. Hence sample survey

technique was adopted for the study. Fieldwork was carried out to collect

the necessary data (through schedule questions /personal interview ).

5. DATA COLLECTION METHODS:

a) Primary data :

A structural interview schedule/ questionnaire was

used as a tool for primary data collection from respondent.

b) Secondary data:

Books Journals, magazines and websites.

6.MEASURING TOOLS:

Data code sheet

S/no Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13
1 D H A A A A D E A B A -
2 C E D A A B B D D C B B D
3 D G D A A C C D B A D B D
4 C H D A A D C C C B B A


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5 D E D A A A A C B D A -
6 A A D A A A A B B A A -
7 C E A A B A B B A
8 D C A A B F B A
9 D B E B A B A A
10 C B B B B A A
11 D D D B B A B A
12 C B A A A A A C A A
13 B B B A B B B C E A
14 D B B B B A A
15 D G D A A A C C A B C
16 D E B A B A A B A A A
17 D E A A B A E B A A B D
18 C C E A A A B B A B C
19 C C E A A C C A A F B A
20 C B B B B A B A A B A
21 C B C A A A D B A A A
22 B H E A A B C B A A A
23 D H E A A B C A B A B C
24 D E E A A D C A B A A
25 D E B A A A C B D C B D
26 D H E A A B C D D B D A
27 C E E A A B D A B A A
28 A H A A A B C D A A B A
29 D E D A A B C A C F B D
30 D E E A B D C C D B E
31 A G E A A C D B B A A
32 D E A B B F B A
33 C A B A A C B A A A
34 D E E A A A B B A A A
35 D C D A A B E C A F A
36 D B B B B B A
37 D F B B B A B B
38 D E D A B A B A B A
39 D B B A B D E B A B B B
40 D B A B B A B A
41 D B B B A D E E B C A
42 D F A A B A C A A B C
43 D F E B B C F A


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44 D E B A A A E D C A A B A
45 D H C A B C E B C F B C
46 A H E A B A A A C B D
47 B B D B B D B A
48 C G E A A D A B A D A
49 B D B A B A A A A B A
50 B E B A B C A B A A B A
51 C E D A B A A A A D B A
52 A E B A B A B B A B B A
53 C G D A A B B B A A A
54 B D A A B A A B B F A
55 D G B B B A A
56 D B A A A A B C B A A
57 C C D B B B B C
58 D E E A B A A A A C A
59 C A A A A A A C C A A
60 B D D A B A C C A D A
61 D B A B B A A
62 D B B B A D A A
63 C E B A B A A A D B B
64 D A B A A C A C A A A
65 B D A B A A B A
66 C H E A A A B B C B B A
67 A D E A A A C B D A
68 C F E A B A A A A B A
69 D D B B B A B A
70 C A B A B A A A B B A
71 D B A A B A C A A A
72 C A B A A A B C A A B A
73 D B B B B A B B
74 D A D B B A B A
75 C D B A A B B A A A A
76 D E A A A B A B B B
77 B B C A A B D C B D A
78 C D B A A A D C C D B C
79 A H E A A A C E B B A
80 C B C A A A B B B A A
81 A D E B B A A
82 C A B A A B B D A C B B D


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83 C H C A A A D B C F A
84 D A D A A B B A B A B C
85 B E E B A A B A
86 C C C A B A A C C A
87 D D B B A A B B A
88 C D B A A A B A B A A
89 D F A A A B B D A D C B D
90 C H E A A B A B B A A
91 B B C B B B A D
92 A D B A B A E B D A
93 B G A A A D B B A B A
94 D A C A B A B A A B A
95 D C E B A A A B D
96 C H E A A C B D A D B A
97 D E A A B A A A A B D
98 D E D A B D B A C B A
99 C G D A A A E B A B B D
100 B C A A A D C B A D A


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1.What is your ratio of saving of the total income?

a) More then 60% b) 60% - 50%

c) 50% - 25% d) Less then 25%

> 60% 9%
60%-50% 13%
50%-25% 31%
<25% 47%


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Total 100

Interpretation:
From the above graph it is clear that 9% of people

saving more than 60%, 13% of people saving less than 60%, 31% of people

saving less than 50%, 47% of people saving less than 25%.

2.Your saving consist of.

a) Post office b) Bank F . D

c) Shares d) Land / Building

e) Life insurance f) Gold

g) Mutual fund h) All the above

Post Office 10%


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Bank FD 20%
Shares 8%
Land &
Building 13%
Life Insurance 23%
Gold 5%
Mutual Fund 8%
All the above 13%
Total 100

Interpretation:

From the above graph it is clear that, 10% of people saving in post

office, 20% of people savings in Bank FD, 8% of people savings in shares,

13% of people saving consist land and building, 23% of people savings in

Life Insurance, 5% of people saving consist in gold,8% of people saving in

Mutual Fund, 13% of people saving consist all the above option.


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3. What factor consist while making the policy.

a) Returns b) Safety

c) Liquidity d) Risk cover

e) All the above

Returns 20%
safety 29%
Liquidity 8%
Risk cover 19%
All the above 24%
Total 100

Interpretation:

From the above graph it is clear that 20% of people wants returns, 29%

of people wants safety,8% of people wants liquidity, 19% of people wants

risk cover, 24% of people wants all the above option.


SAAB MARFIN MBA

4. Have you invested money in life insurance?

a) Yes b) No

Yes 75%
No 25%
Total 100

Interpretation:

From the above graph it is clear that 75% respondents invested their

money in life insurance, 25% respondents are not invested.


SAAB MARFIN MBA

5. Are you aware of ULIP

a) Yes b) No (If no,
skip to q no 11)

Yes 55%
No 45%
Total 100

Interpretation:

Above graph 55% of respondents are aware of ULIP,45% of respondents

are not aware of ULIP.

6. In which company you have invested your money?

a) LIC b) Bajaj Allianz


SAAB MARFIN MBA

c) ICICI d)
Others .

LIC 42%
BAJAJ ALLIANZ 17%
ICICI 8%
OTHERS 9%
BLANK 24%
TOTAL 100%

Interpretation:

Above graph shows 42% respondents invested their money in LIC, 17%

in Bajaj Allianz,8% in ICICI prudential, 9% in others and 24% of

respondents are not responded well.


SAAB MARFIN MBA

7. How do you come to know ULIP?

a) Friends b) Agents

c) Newspapers/Magazines d) Banks

e) Others .

Friends 17%
Agents 18%
Newspaper/magazin
es 15%
Banks 8%
Others 7%
Blank 35%
Total 100%


SAAB MARFIN MBA

Interpretation:

The above graph shows that 17% of respondents know the ULIPS

through friends,18% of respondents through Agents,15% of respondents

through News paper and Magazines, 8% of respondents know through

banks, 7% of respondents know through others and 35% of respondents

are not respondents well.

8. Which plan you have taken?

a) Endowment b) Money Back

c) Term Plan d) ULIP

e) All the above
Endowment 17%
Money Back 29%
Term Plan 16%
ULIP 8%
All the above 4%
BLANK 27%
Total 100%


SAAB MARFIN MBA

Interpretation:

The above graph shows that 17% of respondents have taken

Endowment policy,29% of respondents have taken money back policy,16%

of respondents have taken term plan,8% of respondents have taken

ULIP,4% of respondents have taken others, 27% of respondents not taken.

9. Why you have chosen ULIP?

a) Higher Returns b) Liquidity


SAAB MARFIN MBA
c) Life cover d) All the above

Higher returns 4%
Life cover 1%
Liquidity 2%
All the above 2%
Blank 91%
Total 100%

Interpretation:

The above graph shows that 4% respondents wants Higher

returns,1% liquidity, 2% life cover, 2% all the above and 91% of

respondents are not responded well.

10. What is the premium you are paying per annum?


SAAB MARFIN MBA

a) 10000 b) 10000-25000

c) 25000-50000 d) 50000-100000

A 38%
B 17%
C 11%
D 3%
BLANK 31%

Interpretation:

The above graph shows that the 38% of respondents paying premium per

annum less than 10,000, 17% respondents paying per annum between

10,000- 25,000, 11% respondents paying per annum between


SAAB MARFIN MBA
25,000-50,000, 3% respondents paying per annum between

50,000-100,000, blank is 31%.

1. What will influence your Financial Planning?

a) Discussion with Family Member

b) Tax Consultant/ C. A

c) Insurance consultant /Agents

d) Finance Magazines.

e) Web site of insurance or Finance company.

f) Any other Specify .

Discussion with FM 47%
Tax consultant/CA 22%
IC /Agents 7%
Finance Magazine 14%
Websites 1%
Others 9%
Total 100%


SAAB MARFIN MBA

Interpretation:

The above graph factors influencing financial planning 47% influencing

discussion with family members, 22% tax consultant/CA, 7% Insurance

Consultant/ Agents,14% through finance magazines, 1% through web

sites of insurance/ Finance Company,9%through others.


SAAB MARFIN MBA

12.In future are you interested investing money on ULIP?

a) Yes b) No

A 52%
B 48%

Interpretation:

The above graph 52% respondents are interested investing money on

ULIPs in future, 48% respondents are not interested to invest money in

ULIPs.


SAAB MARFIN MBA

13. If no why?

a) No Interest.

b) Lack of Advertisement.

c) Busy schedule.

d)Others .

A 23%
B 6%
C 8%
D 12%
BLANK 51%

Interpretation:


SAAB MARFIN MBA
The above graph 23% of respondents are no interested, 6% lack of

advertisement, 8% busy schedule, 12% of respondent says others and 51%

of respondents are not responded well.

Findings

Through all this survey and analyzing what we found is
that

In the survey it was found that 47% of the respondents are

saving less than 25% income this indicates that nearly half

of respondent in hubli city are coming under middle class.

As our research we found that 55% of people are aware of

ULIP’s and 45% of respondent are not aware of ULIP’s so

company has to give more advertisement about the ULIP’s .

Through Friends 17% of people are come to know about

the ULIP’s ,through Agents 18%, 15% through Newspaper /

Magazine , 8% through Banks, Others 7% of respondent are

come to know 35% of people are not aware of ULIP’s so

compare to all agents are playing important role &

company has to increase more number of agents.

52% of respondent are interested to invest money in ULIP’s

and 48% of respondent are not interested to invest money

in ULIP’s so 52% is a potential customer so company can

utilize that opportunity.


SAAB MARFIN MBA

42% of respondent are invested their money in LIC, 17% in

Bajaj Allianz, 8% in ICICI Prudential , 9% in others and 24%

of people not at invested.

23% of respondent are not interested to invest their money

in ULIPs , 6% lack of advertisement, 8% busy schedule,12%

of respondents said others and blank 51%.

LIMITATIONS

The limitation of the project was that the study and the survey
were conducted in Hubli city only, the analysis and
recommendations may not be fully applicable to other cities.

The time was not enough to study the vast and growing Life
insurance sector in Hubli city

Conclusion :

From the over all project and market survey it is clear that Bajaj Allianz

Life Insurance Co .Ltd is doing well but most of the people are not aware

of ULIP’s .

But in the present threading competition they should do more then the

present efforts in the following fields.


SAAB MARFIN MBA
1. Advertising campaign.

2. Trade promotion activity.

Recommendations

Most of the respondents are not aware of Unit Linked Insurance

Plan so

company has to give more advertisement about the ULIP’s.

45% of respondents are not aware, which should be increased

by different medias like TV, Magazines, & News Paper.

The company has to provide proper training or marketing skills to

improve the marketability of products.

Complete information should be provided regularly to the advisor

as well as to the investor.

Bajaj Allianz Co should come out with more and more innovative

schemes to meet the requirement of every investor

Company has to conduct meeting of their agents periodically to

access the results and progress of the agents efforts.


SAAB MARFIN MBA


SAAB MARFIN MBA

Dear Sir / Madam,

I am pleased to introduce myself as MBA student of PES&T’

s Belgaum Institute Of Management Studies (MBA) Belgaum . As a part

of curriculum I have undertaken a research study on “Customer

Awareness Level To Improve Market Share Of ULIP”. The information

provided by you will be kept confidential & used for academic purpose

only .

QUESTIONNAIRE

1.What is your ratio of saving of the total income?

a) More then 60% b) 60% - 50%

c) 50% - 25% d) Less then 25%


SAAB MARFIN MBA

2.Your saving consist of.

a) Post office b) Bank F . D

c) Shares d) Land / Building

e) Life insurance f) Gold

g) Mutual fund h)All the above

3. What factor consist while making the policy.

a) Returns b) Safety

c) Liquidity d) Risk cover

e) All the above

4. Have you invested money in life insurance?

a) Yes b) No

5. Are you aware of ULIP

a) Yes b) No If no, skip goto Q no
11)

6. In which company you have invested your money?

a) LIC b) Bajaj Allianz [

c) ICICI d) Others .

7. How do you come to know ULIP?

a) Friends b) Agents

c) Newspapers/Magazines d) Banks

e) Others .


Bajaj Allianz ULIP Awareness and Market Share Study

Bajaj Allianz ULIP Awareness and Market Share Study

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