1. BRCM COLLEGE OF BUSINESS ADMINISTRATION
LIBRARY ASSIGNMENT 2013-14
SERVICE MANAGEMENT-I
TYBBA- SEM-V
DIVISION-II [MARKETING]
TOPIC NAME- SERVICE DIFFERNTIATING OF LIC AND BAJAJ
ALLIANZ
NAME OF ORGANISATIONS: A. LIC INDIA
B. BAJAJ ALLIANZ
BY,
115- GANDHI SANI B.
117- GANDHI LAY
149- SANGHVI HARSH
SUBMITTED ON -17TH OCTOMBER, 2013
SUBMITTED TO – DR. JAYESH N. DESAI

2. Question: 1Core service product, supplementary services and delivery process
Core service product of Bajaj Allianz
Core products of Bajaj Alianz
a. Life insurance
i. Term insurance
ii. Investment insurance
iii. Retirement insurance
iv. Child insurance
b. Motor insurance
i. Two wheeler insurance
ii. Car insurance
iii. Liability only motor insurance
c. Health insurance
i. Individual health insurance
ii. Family health insurance
iii. Health insurance for senior citizens
d. Travel insurance
i. Individual travel insurance
ii. Family travel insurance
iii. Student travel insurance
iv. Health insurance for senior citizens
e. Home insurance
Core service product of LIC
Life insurance and health insurance plans of LIC
a. Pension plan b. Insurance plans
i. Jivan akshay policy i. Bima account plus
ii. New jivan nidhi ii. Endovement plus
c. Unit plans iii. Life insurance plans for handicapped
dependants
i. Endovement plus iv. Life insurance plans for childrens
ii. Flexi plus v. Life insurance Plans for high worth
individuals
d. Special plans vi. Life insurance plans for whole life
i. Golden jubilee plans vii. Money back plan
ii. Micro insurance plans viii. Special money back plan for women
iii. Special plans ix. Term assurance plans
e. Group schemes x. Joint life plan
i. Group scheme f. Health plans
ii. Social security scheme i. Health protection plus
g. Withdrawal plans ii. Jiven arogya plan

3. Comparison of LIC and Bajaj Allianz on core service products
From the above portfolio of service product of LIC and Bajaj Allianz we can find out
following differences
1. Bajaj is in all possible insurance business falling under general and life
insurance plans both while LIC is dealing with life insurance and health
insurance only.
2. Though Bajaj is in all possible categories but they offer very limited plans under
each category but while LIC is in two category only but they have large number
of plans for all possible segment in life insurance.
Hence comparing both we can conclude that product portfolio and product line of
Bajaj is big while depth in product category or product line is more in LIC.
So breadth of service product is more in Bajaj Allianz while depth is more in LIC.
Supplementary services provided by Bajaj Allianz
i. Online Renewal of General and life insurance through credit cards or direct
debit facility.
ii. Claim status information through SMS services.
iii. Cashless settlement in over 1500 preferred workshops.
iv. Hassle free claim settlement.
v. Quick and easy online purchase process.
vi. 24x7 claims support .
Supplementary services provided by LIC
i. Educating customers about each policy through calls, website and agents.
ii. Providing policy status on time.
iii. Providing insurance advisor who shall help you in deciding which plan is suitable
according to your age, occupation, income and insurance needs. How much
insurance you need and term of your insurance.
iv. Claim status information through SMS services.
Comparison of LIC and Bajaj Allianz on supplementary services service
From the above supplementary services provided by LIC and Bajaj Allianz we can find
out following differences…
 Here in supplementary services bajaj is focusing more to speedy and easy
purchase and renewal of policies and their main focus is to provide barrier free
and fast return to customers when ever claim is matured that is even on
continues basis while on the other LIC is focusing more for the benefits of

4. customer as they educating customers and working more for the benefit of
society so for that they have hired many insurance advisors.
So from above we can conclude that Bajaj Allianz is more superior with
supplementary services compared to LIC India.
Delivery process of LIC and Bajaj Allianz
 Bajaj Allianz and LIC both have same delivery process which is detailed explained in
question 4 and 10.
 But there is one major difference that is LIC uses tie up with banks also for taking
purchasing of policy which is not there with Bajaj while bajaj uses the customer care
unit also for these purpose which is not followed by LIC and hence marketing
intermediaries makes the difference in service delivery of both the organizations.
Question: 2 identification of the pricing Dimensions
 In insurance price will be customized and is based on policy
 Pricing dimesions are based Mode Installment premium.
 In LIC, Mode Installment premium is yearly, half yearly, quarterly and monthly.
According to which Mode of Installment one is seeking will determine the pricing.
Pricing dimensions are based on size and age distribution of the age group for group
schemes. At LIC allocations of charges also differs from single premium policy
charge to regular premium policy.
 Bajaj Allianz Secure Insurance Plan provides separate sets of premium rates for sum
assured less than Rs.2,000,000 and for sum assured of Rs.2,000,000 and above.
Question:3 identification if revenue management is used by these companies
and what different rate fences are used by them.
 Revenue management is used by both the companies and mainly LIC uses more then
Bajaj.
Rate fences used by LIC are as following.
a. Group Insurance Scheme
 Group Insurance Scheme is life insurance protection to groups of people. This
scheme iqs ideal for employers, associations, societies etc. and allows you to enjoy
group benefits at really low costs.
 Group (Term) Insurance Scheme is at present offered under One Year Renewable
Group term assurance plan (OYRGTA). Every year on Annual Renewal date LIC
charges the premium depending upon the changes in size and age distribution of the
age group.

5. b. Rate fences also accrue when a person is purchasing a policy from LIC whether it is
single premium policy or regular premium policy.
c. Rate fences are done on the basis of age also which includes following.
1. For senior citizen different plans are there.
2. For child different prices are charged for different plans
3. For adults, employee and young persons have different price charging
according to plans.
d. Rate fences are also charged on the basis of whether you are purchasing a new
policy or you are renewing the old one and premium rate and discount rates may be
different according to plans.
Rate fences used by Bajaj are as following.
a. For life insurance policy rates are differentiated on the basis of whether policy
holder is smoker or non smoker.
b. Group Discounts
 The following discounts can be given in the premium if you opt for more
sections
1. 5/6 sections - 15% on all sections except Section 1
2. 7 or more - 20% on all sections except Section 1
c. Rate fences are done on the basis of age also which includes following.
1. For senior citizen different plans are there.
2. For child different prices are charged for different plans
3. For adults, employee and young persons have different price charging
according to plans.
d. Rate fences are also charged on the basis of whether you are purchasing a new
policy or you are renewing the old one and premium rate and discount rates may be
different according to plans.
Question:4 identification of the marketing channels used and the expected
roles to be played by customers .evaluation of self service technologies.
Marketing channels used by Bajaj Allianz
a. Agents - an entrepreneurial professional
 An insurance agent or advisor, the new moniker that they like to flaunt, is the oldest
and the most inevitable means of distribution channel in the insurance industry.
Being the human face of the insurer, an agent gives a personal touch and is often the
man Friday for most of their customers. Agents are brand ambassadors of the

6. insurer in its own way. Customers know the company by the agents with whom they
interact with.
 Subrat Mohanty, Head – Agency Admin, Bajaj Allianz Life insurance said…
“We believe that a knowledgeable agent can serve the customers better and also
suggest the right product to suit his customers' needs. To achieve this we stress on
continuous training and have a concept of club membership at various levels” “What
sets our training department apart is that instead of sticking to a fixed training
module, the team is able to adapt to the training needs of the offices in general and
advisors in particular. Our training department is totally in sync with the channel's
goal and supports us in all possible ways to grow the channel profitably. We have
several cases where a person with a non-insurance background who started his
career as an advisor from a scratch and has made it big. They owe their success to a
very great extent to the training interventions provided by our training team”
b. Online purchase
 The insurance industry has caught on to the trend of online shopping. A convenient
and cost effective medium, websales is slowly gaining traction with net savvy
customers.
 In order to enhance customer service, Bajaj Allianz Websales team monitors and
analyses the drop-out point on our website and assists the customer through call-
back or co-browsing, to ensure that the customer gets all relevant information and
completes the desired transaction.”
 To purchase online policy one can go at www.bajajallianzdirect.com
c. Customer Care Unit
 Customer Care Unit acts as the face of the insurance company by serving as the
interface for all customer queries and complaints.
 The Customer Care Unit (CCU) was setup at Bajaj Allianz to streamline servicing
customers. The 270-member multi-lingual call center team functions as a single
touch point for customers for requests on policy servicing, claims intimation,
product information or to make a complaint.
 To ensure that the team responds to these queries and complaints in a
benchmarked turn-around-time (TAT), CCU has put in place a number of initiatives
that have helped to reduce the time taken to respond, as well as qualitatively
enhance the information given to them.
Marketing channels used by LIC
a. Online policy purchase

7.  Just like other private insurance company LIC has also went for online purchasing
facility for customers.
 Here one can go at” www. Licindia.in “ and can purchase online policy.
 Detailed purchasing guidelines with pictures are shown by LIC for the convenience
of customers.
b. Through agents
 LIC is also selling their policies through agents and the benefit of LIC agent is that
LIC has a huge and wide spread network of agents across the country which a
private firm will never be in position to create.
c. Revamping distribution
 In early 2002, India's state owned insurer, Life Insurance Corporation (LIC),
announced tie-ups with Corporation Bank, Oriental Bank of Commerce, Bank of
Punjab and Nedungadi Bank for sale of its products through their branches. The aim
of the tie-ups was to diversify LIC's distribution channels and increase product
penetration.
 Industry observers were not surprised by this move. They felt that LIC had no
option but to explore new channels of distribution to maintain its position as the
market leader. The liberalization of the Indian insurance industry in 2000 led to the
entry of private insurance companies with MNC as their partners.
Expected roles to be played by employees in the delivery of insurance policy
As such while taking insurance no such huge process is done with human body or
mind, customers role in delivery of services are very less.
Following are the roles that customers have to play during service delivery.
a. While purchasing a policy all the process of delivery is done by the customer
only, means he has to follow the following procedures….
I. In which, customer first visits the website and selects online purchase option
or the highlighted link provided by the company.
II. Then a customer fills all the details in a virtual online form in which name,
address, date of birth, mobile no, email id etc he fills in first step.
III. Then a customer gets an ID on Email and phone number.
IV. That id customer has to insert in second step and further details are filled.
V. Then customer selects a plan for him or for other entity and then he selects
the payment period means if he wants to pay every month or every 3 month
or once in a year.
VI. Then payment information is taken where credit card/debit card/ ATM card
etc name, full number and password is taken and in such way he gets or
purchases an insurance policy.

8. So in online policy purchase all work is done by customer only but in through agent
channel a customer has just to show his documents’ copy and to put signature where
needed.
Evaluation of roles of self service points that is websites.
A. Roles played by website of LIC are as following
I. Provides information about company and all policy, contact details etc.
II. Facilitates online purchase of policies.
III. Payment of premiums of policies through net banking.
Evaluation of LIC’s website:
I. Advantages :
 High quality of content and information.
 Easy to use.
 Memorable domain name that is LICINDIA
 No advertisements of other brands.
 Less number of clicks.
II. Disadvantages:
 Slow to download and surf.
 Upadatation is not fully done.
 Not attractive in look.
B. Roles played by website of Bajaj Allianz which are as following
I. Provides information about company and all policy, contact details etc.
II. Facilitates online purchase of policies.
III. Payment of premiums of policies through net banking.
Evaluation of Bajaj Allianz’s website:
I. Advantages :
 High quality of content and information.
 Memorable domain name that is Bajajallianz
 No advertisements of other brands.
 Less number of clicks.
 Fast to download and surf.
 Quick downloading of firms.
 Timely updated.
II. Disadvantages:
 Not easy to use.

9.  Arrangement of policies and their links are also not proper.
Question 5: Evaluate to what extent promotion and communication programme
of these companies are able to communicate their positioning. Discuss how
advertising is prepared to achieve its communication objectives.
 Communicate their positioning. Discuss how advertising is prepared to achieve
its communication objectives.
 Positioning means placing the image of the company in the mind of customer.
 LIC and Bajaj both are using various promotion and communication tools through
which they have placed their positioning in the minds of the customers. which are as
following…..
LIC
In order to communicate their positioning, various promotional strategies are undertaken:
 Here LIC has taken help of advertising agencies to promote the Brand LIC.
 They used creative slogans which affects the customer’s mindset and able to attract
their attention.
 Those slogans helped LIC to make the customer emotionally attached to services
provided by them.
 They spend huge amount of money in advertising and sales promotions to build
their brand equity and identity
 To avoid the interference in communication to customer, they reduced the number
of ad agencies and worked with limited number of those agencies so that the
message reached to customer, doesn’t lose the main objective.
The various advertisements they give following slogans:
1. LIC – “ZINDAGI KE SAATH BHI, ZINDAGI KE BAAD BHI”.
2. LIC – “A GOOD INVESTMENT IS ALL ABOUT PROTECTION, SECURITY AND
GROWTH”
BAJAJ ALLIANZ
In order to communicate their positioning, various promotional strategies are undertaken:
 One of bajaj allianz's key strength lies in presence in Tier 2 and 3 markets and its
ability to offer low cost insurance solutions in the vast uninsured population in
these areas.

10.  Their objective is to create an identity for themselves as an insurer who is not
product focused, but offers comprehensive solutions in terms of a balanced portfolio
of products ,risk exposure as well as is transparent in knowledge sharing with
existing and potential customers.
 The various advertisements they give following slogans:
1. "WE CAN'T SHOW U THE FUTURE... BUT WE CAN HELP YOU MAKE FUTURE.
Question 6: Also discuss uses of different communication channel by the
company emerging from or within the organization or originating outside the
organization?
Communication channel within the organization of Bajaj
1. Help centre:
 In Bajaj uses the companies help centre has been established to help the customers
in case of any query.
2. Websites
 The website of Bajaj Allianz provide the wide view of various schemes and policies
of bajaj allianz. Its web address is www.bajajallianz.com.
Communication channel outside the organization of Bajaj
1. Advertisement
 Bjaj does the advertisement for their product. Mostly both have same advertisement
channel but now Bajaj is much more ahead than LIC, has used many advertising
media like it do advertisement on TV and radio and social sites.
2. Social networking
 Like facebook , whatsapp etc.
Communication channel within the organization of LIC
1. Websites
 The website of LIC provide the wide view of various schemes and policies of LIC. Its
web address is www.licindia.com

11. Communication channel outside the organization of LIC
1. Advertisement
 LIC does the advertisement for their product. Mostly both have same advertisement
channel.but now Bajaj is much more ahead than LIC, has used many advertising
media like it do advertisement on TV and radio and social sites.
So we can see that communication channels of Bajaj is much better then LIC.
Question 7:Compare role of employees in service delivery of both the
companies?
Employees of LIC
1. Customer Service
 LIC Insurance is committed to making sure people with disabilities have access to all
services in a timely manner.
 It aligns with LIC's vision to deliver uniquely comfortable customer experiences.
1. Communicating with our customers
 Employees are educated on how to communicate with people that have various
types of queries and difficulties on various issues.
2. Feedback process
 Employees welcome feedback on how they are doing in the delivery of their services
from all of their customers, including those with other issues and problems.
Employees of BAJAJ ALLIANZ
1. Low cost insurance solutions:
 Employees of the bajaj allianz forms the positioning of firm as up to date services at
reasonable or low cost insurance solutions.
2. service culture:
 A culture where an appreciation for good service exists, and where giving good service
to internal as well as ultimate,external customers in a natural way.
3. Boundary spanning roles:
 Demonstrating the challenges inherent in boundary spanning roles.

12. 3. Communicating with our customers
 Employees are educated on how to communicate with people that have various
types of queries and difficulties on various issues.
4. Feedback process
 Employees welcome feedback on how they are doing in the delivery of their services
from all of their customers, including those with other issues and problems.
From above we can see that role of bajaj are playing more roles compared to employee
of LIC.
Question 8: Identify different tangible cues used by Bajaj Allianz and LIC &
discuss how they are integrated in the company’s business.
 The different tangible cues used by Indian airlines & their integration in the
company’s business are as follows:-
1. Brochure: The LIC use to have their brochure having the pictorial view of different
facilities provided by them.
2. Employee’s dress/uniform: LIC does not follow any particular company dress
code as bajaj allianz
3. Web site: The website of LIC provide the wide view of the airlines. Its web address
is www.licindia.com
4. Logo: The logo of LIC can viewed as follows.
5. Slogan: - The slogan of LIC is “ZINDAGI KE SAATH BHI,ZINDAGI KE BAAD BHI.
The different tangible cues used by Bajaj Allianz & their integration in the company’s
business are as follows:-

13. 1. Employee’s dress/uniform: Bajaj Allianz follows the strict dress code observation
of its agents wearing Blue shirt and Black pant.
2. Web site: The website of Bajaj Allianz provide the wide view of various schemes
and policies of bajaj allianz. Its web address is www.bajajallianz.com
3. Logo: - The logo of Bajaj Allianz can be viewed as follows:
4. Slogan: - The slogan of Indian airlines is “JIYO BEFIKAR” which is attracting the
customers to purchase.
Question: 9 Depict service environment (both physical and virtual) created by the
firms and compare how well they are using it to create better customer
experience.
 Environment is the surrounding or ambience of the place at which the customer is
served the service. Environment are of two types : PHYSICAL and VIRTUAL
 Physical environment refers to the environment in which the service is assembled
and in which the seller and customer interact, combined with tangible commodities
that facilitate performance or communication of the service. The physical evidence
of service includes all the tangible representations of service such as brochures,
letterhead, business cards, reports, signage, internet presence and equipment.
 Virtual Enviornment here stands for the online enviorment created by the
company for providing service to customers i.e the Websites.
Physical Service
Environment
LIC Bajaj Allianz
Office interior design 1. Seating arrangements
are made.
2. Proper waiting area.
3. Proper ventilation and
1. Seating arrangements
are made.
2. Proper waiting area.
3. Proper ventilation

14. airy area. and airy area.
4. Air conditioned area.
5. Proper colouring and
furnitures.
Sound/music No Soft music during Soft music is runnimg.
virtual Service
Environment
Web pages 1. Provides information
about company and all
policy, contact details
etc.
2. Facilitates online
purchase of policies.
3. Payment of premiums
of policies through net
banking.
1. Provides information
about company and all
policy, contact details
etc.
2. Facilitates online
purchase of policie
3. Payment of premiums
of policies through net
banking.
4. website of Bajaj Allianz
is more user friendly,
with lesser clicks and
easily surf able across
the website
Employee’s review Through internet, news, &
other medias, employee’s
dissatisfied review, hunger
strikes, are observed
Through internet, news, &
other medias, employee’s
satisfied review is obtained
and suggestions are taken.
Question: 10 is there any standardized process of company and is it contributing
to the quality of services?
 In the case of both LIC and Bajaj Allianz both follows a standardized process in case of online
purchase which is as following…
1. Here customer first visits the website and selects online purchase option or the
highlighted link provided by the company.
2. Then a customer fills all the details in a virtual online form in which name,
address, date of birth, mobile no, email id etc he fills in first step.

15. 3. Then a customer gets an ID on Email and phone number.
4. That id customer has to insert in second step and further details are filled.
5. Then customer selects a plan for him or for other entity and then he selects the
payment period means if he wants to pay every month or every 3 month or once
in a year.
6. Then payment information is taken where credit card/debit card/ ATM card etc
name, full number and password is taken and in such way he gets or purchases
an insurance policy.
Both LIC and Bajaj Allianz has following process for file maturity claiming
Step 1: Claim Intimation
 Bajaj Allianz and LIC would send intimation letter to the customer 6 months before the
maturity date along with maturity claim discharge form & annuity form (if pension policy).
Step 2: Submission of Documents
Visit the nearest branch /courier the below listed documents:
 Maturity Discharge Form
 Original policy document
 Standard KYC documents (eg. Identity Proof and Address Proof)
 Bank supporting documents
 NEFT Form (sealed by bank)
 Cancelled cheque containing IFSC code, Account No. Customer Name (should be printed on
cheque) (OR) Latest six months bank account statement (sealed by bank)
 Annuity Form (in case of Pension Policy)
Step 3: Settlement of Claim
 On compliance of all the above documents, the maturity claim amount shall be paid.
 For Pension Policy , the amount directed by customer towards purchase of Annuity would
be sanctioned in favor of the Annuity provider (the insurer from whom the Immediate
Annuity would be bought) and remaining amount would be credited to the policyholder's
account
Note: here at Bajaj all the insurance products has its own standardized process is
there.
Contribution of online standardized online purchase process in the quality of insurance service.
 Online purchase process of insurance contributes to quality in following way

16. 1. It reduces the complications and headache involved in purchasing policy
traditionally and hence faster purchase of quality.
2. Online payment and renewals will enhance quality as timely renewal will be
done and hence it will improve quality.
3. Both LIC and Bajaj Allianz is Providing online facility and hence it will maintain
their customers as it will enhance consumer satisfaction because of faster and
standardized process and payment.
4. And in online process, as it is standardized one can get help both from the other
customers and online helping .