A

Project Report
On

A Study on Customer Perception about Bajaj Allianz

Unit Link Insurance Plan Products
BAJAJ ALLIANZ LIFE INSURANCE COMPANY

Submitted in partial fulfillment

for the Award of
Masters of Business Administration
DS Part II Session 2014-15
Submitted to
Center for Entrepreneurship and Small Business Management

Supervised by:

Submitted by:

Maam Renuka

Sonali Agarwal

Declaration
I hereby certify that the summer training report on Customer Perception about Bajaj
Allianz Unit Link Insurance Plan Products submitted in partial fulfillment for the
award of Master of Business Administration (Dual Specialization) at Center for
Entrepreneurship and Small Business Management, Maharshi Dayanand Saraswati
University, Ajmer is an authentic record of work carried out by me. The matter embodied
in this summer training report has not been submitted for the award of any other degree
or diploma.

Date:

Signature:
(Sonali Agarwal)

ACKNOWLEDGEMENT
2

With the completion of this project report, I would like to express my

sincere gratitude to Maharishi Dayanand Saraswati University, Ajmer for providing
this opportunity to understand and learn the working of a well known organization.
I humbly record my gratitude to Mr. Amit Gandhi, Chief Branch Manager of Bajaj
Allianz Life Insurance Co. Ltd., Ajmer who heartily provided me the great opportunity
to undergo this vigorous yet joyous training and completing my project in esteemed
organization.
I wish to take this opportunity to extend my sincere thanks to all officials of BAJAJ
ALLIANZ LIFE INSURANCE CO.LTD. For their valuable suggestions, welcoming
smiles, expression of hostility and humanity as well as their helping nature which always
remains in my remembrance throughout my professional life.

Sonali agarwal

PREFACE
To have an exposure and understanding of practical world, management students
are expected to quench their thrust with zeal problems facing the practical life. For
attainment of this, I took the opportunity of developing this project report on A study on
customer perception about Bajaj Allianz Unit Link Insurance Plan Products.
My summer project at insurance sector in Bajaj Allianz Life Insurance is a
complete experience in itself, which has provided me with understanding.
This research and development project is concerned with Critical Evaluation of
how unit linked insurance plans works, study of different ulip monitors, finding
satisfaction level of customers. The work done by me on the topic, finding drawn out
are presented in this project report along with suggestion for improvement.

INDEX
PARTICULAR

PAGE NO.
4

1. EXECUTIVE SUMMARY

2. INDUSTRY OVERVIEW

8-11

Brief history of the insurance sector

Insurance sector reforms
IRDA

Composition of authority under IRDA Act 1999

Role of IRDA
Indian Insurance sector
Life Insurance Companies in India & their market share
Current scenario of the insurance industry
Privatization
3. INTRODUCTION ABOUT BAJAJ ALLIANZ

12-14

Company Profile
Bajaj group
Allianz group
About Bajaj Allianz
4. INTRODUCTION ABOUT RESEARCH STUDY

15-29

Introduction to Ulip
Meaning
Structure of Ulip
Advantages of investing in Ulip
Basic features of Ulip
Working of a ULIP Plan
Which is better, Unit-Linked or Traditional Plan?
Why do insurers prefer Ulips?
Allianz Bajaj launches its first Unit-Linked policy
Bajaj Allianz ULIPS Products
Limitation
5

5. RESEARCH MEDHODOLOGY

30-31

Objectives of study
Scope of the study
Limitation of the study
Sampling
Research Design
Data Collection Methods
6. DATA ANALYSIS & INTERPRETATION

32-44

7. FINDING & RECOMMENDATIONS & CONCLUSION 45-46

8. REFERENCE

47

9. APPENDIX

48-49

Questionnaire

EXECUTIVE SUMMARY
Monopoly of LIC has been broken to make Indian Insurance to change its face and pace
to tap the market and to make the new challenges in it. Insurance in India is not about
India only; it is an open sector for the private players. The name which you would see in
Indian Insurance market is something like: BAJAJ (Indian company)+ ALLIANZ
(Foreign player), TATA (Indian company)+AIG (Foreign player) and so many like them.
6

Companies now are tapping a lot of ways to capture the market and hence adopting
different ways to hold the large portion of the market. My project was on A Study on
customer perception about Bajaj Allianz Unit Link Insurance Plan Products. My
summer training learning helped me a lot to complete my project in order to learn a lot of
things of the corporate.
Bajaj Group is one of the Indias largest and most respected business groups. Bajaj
Allianz Insurance Company is one of the leading insurance companies that provide both
life insurance as well as general insurance. This pioneer company is a joint collaboration
between the Allianz SE, and Bajaj Auto. They own the company in the ratio of 26:74.
Bajaj Allianz Insurance Company is having different insurance policies. At the end of the
project people will be knowledgeable about customer perception about Bajaj Allianz
Unit Link Insurance Plan and their products taking into considerations 100 sample size
in Ajmer city
Project is A Study on customer perception about Bajaj Allianz Unit Link Insurance
Plan Products . To get to know a questionnaire has been prepared which contain close
ended questions. For collecting the data field survey method, personal interview
technique has been used. Secondary data has been collected from the company and from
various websites. The data collected are represented into suitable tabular forms for
drawing inferences. A quantitative technique like percentages, two ways tables, has been
applied as per the requirement. For the representation of data various charts and graphs
are used as per requirement.

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:
7

1912
1928

The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

The Indian Insurance Companies Act enacted to enable the government
to collect statistical information about both life and non-life insurance

1938

businesses
Earlier legislation consolidated and amended to by the Insurance Act

1956

with the objective of protecting the interests of the insuring public

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 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)
8

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

ROLE OF IRDA
Protecting the interests of policyholders.
Establishing guidelines for the operations of insurers, and brokers.
Specifying the code of conduct , qualifications, and training for
insurance intermediaries and agents.
Promoting efficiency in the conduct of insurance business.
Regulating the investment of funds by insurance companies.
Specifying the percentage of business to be written by insurers in rural
sectors.
Handling disputes between insurers and insurance intermediaries.

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
LIFE INSURERS

 Public Sector
LIFE INSURANCE CORPORATION OF INDIA (LIC)
An Act of Parliament, viz., Life Insurance Corporation Act, formed Life Insurance
Corporation of India (LIC) in September 1956, with capital contribution from the
Government of India.
The objective was: to conduct the business with the utmost economy, in a spirit of
trusteeship; to charge premium no higher than warranted by strict actuarial
considerations; to invest the funds for obtaining maximum yield for the policy holders
consistent with safety of the capital; to render prompt and efficient service to policy
holders, thereby making insurance widely popular.
Since nationalization, LIC has built up a vast network of 2,048 branches, 100 divisions
and 7 zonal offices spread over the country. The Life Insurance Corporation of India also
transacts business abroad and has offices in Fiji, Mauritius and United Kingdom.

CURRENT SCENARIO OF THE INSURANCE INDUSTRY

Innovative products and aggressive distribution have become the say of the day. Indians,
have always seen life insurance as a tax saving device, are now suddenly turning to the
private sector that are providing them new products and variety for their choice.

PRIVATISATION
There were various reasons given by the government to nationalize the insurance
sector was to take insurance to the mass, facilitate the flow of long term funds (which
insurance companies, by virtue of the business they are in, have ready access to) into
development of infrastructure in the country, and safe guard the interest of the policy
holders. Towards this end, state insurers did develop the insurance sector, though most
experts believe that these monopolies could have done much, much more.

10

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.

COMPANY 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 Rs5,329crore.
11

 Bajaj Auto finance one of the largest auto finance companies in India Rs5934cr
turnover and profits after tax of 732cr in 2011-12
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.
4th largest in the world.

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 .
Established in 1890 ,more than 121 years of experience in insurance.
Allianz has over 700subsidiaries and approximately 1,81,000 employees
worldwide.
Allianz global network extends to over 70 countries in:

Europe .

South and Northern Americas.

Africa.

Middle East.

Asia Pacific.

World largest insurance company by revenue 106.5 Euros

22th largest corporation in the world

ABOUT BAJAJ ALLIANZ

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
12

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.

VISION
'To be the BEST Life Insurance Company
To Buy From,
Work For
& Invest In'

CULTURE @ BAJAJ ALLIANZ

Bajaj Allianz will be

A winning team
Have a passion for excellence & hate bureaucracy
Be empowered, have the confidence to take decisions quickly & be accountable
Be driven to achieve results, to deliver
Be professional & socially committed
Be open to ideas, sharing, transparent & trust
BAJAJ
ALLIANZ
LIFEINSURANCE
INSURANCE
Focus everything we
do onALLIANZ
our
customers
BAJAJ
LIFE
Make BALIC a 'great place to work'
Have a sense of humour

CHANNEL
MISSION
CHANNEL

BANCASSURANCE
CORPORATE
BANCASSURANCE
CORPORATE
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
ZONAL
SENIOR
MANAGER
value SENIOR
for
money.MANAGER
ZONAL

BRANCH
BRANCH

ORGANISATION CHART OF THE BRANCH

SATELLITEBRANCH
BRANCH
SATELLITE

SALESTEAM
TEAMMANAGER
MANAGER
SALES
13

INSURANCECONSULTATIVE
CONSULTATIVE
INSURANCE

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
todays times, ULIP provides solutions for insurance planning, financial needs, financial
planning for childrens future and retirement planning. Features of ULIP distinguish
itself through the multiple benefits that it provides to the consumer. The plan is a onestop solution providing: Life protection Investment and Savings Flexibility- Adjustable
14

Life Cover- Investment Options Transparency Options to take additional cover againstDeath due to accident- Disability- Critical Illness- Surgeries Liquidity.
ULIP distinguishes itself through the multiple benefits it provides to the policyholders.
These plans are designed with a view to help the customers to utilize the market
opportunities by investing in the share market, capital market and at the same time have
the facility of Death Benefit and Maturity Benefit.

MEANING
It is a plan, which provides Life Insurance, and here policy value at any time varies
according to the value of the underlying asset at that time.
It is a plan that provides the client with the benefit of protection and flexibility.
An ULIP plan works as a one-stop advantage for the policyholder. It gives the
policyholder a wholesome advantage of integrated financial planning.

STRUCTURE OF ULIP:
ULIP

CONTRIBUTION
CONTRIBUTION

LESS-CHARGES
CHARGES
LESS-

INVESTMENT
INVESTMENT
REPRESENTEDAS
AS
REPRESENTED

LIFECOVER
COVER
LIFE

NAV
NAV
15

ADVANTAGES OF INVESTING IN ULIP

ULIPs have been selling like proverbial `hot cakes' in the recent past and they are likely
to continue to outsell their plain vanilla counterparts going ahead. So what is it that
makes ULIPs so attractive to the individual is, as follows
1.INSURACE COVER PLUS SAVINGS
ULIP serve the purpose of providing life insurance combined with savings at marketlinked returns. To that extent, ULIPs can be termed as a two-in-one plan in terms of
giving an individual the twin benefits of life insurance plus savings. This is unlike
comparable instruments like a mutual fund for instance, which does not offer a life cover.
2.MULTIPLE INVESTMENT OPTIONS
ULIP offer a lot more variety than traditional life insurance plans. So there are multiple
options at the individual's disposal. . ULIPs generally come in three broad variants:
Aggressive ULIPs (which can typically invest 80%-100% in equities, balance in debt)
Balanced ULIPs (can typically invest around 40%-60% in equities)
Conservative ULIPs (can typically invest up to 20% in equities)
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.
16

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 AS 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

17

Starting a job, Single

Your Need
Low protection, high asset

Flexibility
Choose low death benefit,

individual

creation and accumulation

choose growth/balanced

Reasonable protection, still

option for asset creation

Increase death benefit, choose

high on asset creation

growth/balanced option for

Higher protection, still high

asset creation
Increase death benefit, choose

on asset creation but

balanced option for asset

steadier options, increase

creation. Choose riders for

savings for child

enhanced protection. Use top-

Recently married, no kids

Married, with kids

ups to increase your

Kids going to school,

Higher Protection, high on

accumulation
Withdrawal from the account

college

asset creation but steadier

for the education expenses of

options, liquidity for

the child

Higher studies for child,

education expenses
Lump sum money for

Withdrawal from the account

marriage

education, marriage.

for higher education/marriage

Facility to stop premium for

expenses of the child.

2-3 yrs for these extra

Premium holiday-to stop

expenses

premium for a period without

Children independent,

Safe accumulation for the

lapsing the policy

Decrease the death benefit-

nearing the golden years

golden yrs. Considerably

reduce it to the minimum

lower life insurance as the

possible. Choose the income

dependencies have

investment option. Top-ups

decreased

form the accumulation (with

reduced expenses) for the
golden yrs cash accumulation

.BASIC FEATURES OF ULIP

1.LIFE PROTECTION
18

Start a
Family

Children
Establishi
ng Career
Retiremen
t Time

Start
Working

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

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.

19

Equity
funds
Balance
d funds
Debt
funds

Short
term
debt
funds

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
Flexibility to choose Sum Assured.
Flexibility to choose premium amount.
Option to change level of Premium even after the plan has started(Top up
facility).
Flexibility to change level asset allocation by switching between funds.
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) CHOICE OF FUND.
A choice of funds (ranging from equity, debt, cash or a combination).
Option to choose fund mix based on desired asset allocation
20

4.TRANSPARENCY
Changes in the plan & net amount invested are known to the customer.
Convenience of tracking ones investment performance on a daily basis.

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

6. LIQUIDITY
Option to withdraw money after few years (comfort required in case of
exigency).
Low minimum tenure.
Partial / Systematic withdrawl allowed.

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.

21

WORKING OF A ULIP PLAN

Lifetime
timeregular
regularPremium
Premium
Life

AllocatedPremium
Premium
Allocated

AllotmentofofUnits
Units
Allotment

Partofofthe
thePremium
Premiumtowards
towards
Part
thepolicy
policyExpenses
Expenses
the

InsuranceCharges
Charges
Insurance

Thisgoes
goestotothe
the
This
Protectiona/c
a/c
Protection
provide
totoprovide
againstthe
the3D
3D
against
Effect
Effect

VariousInvestment
Investment
Various
Options.Facility
Facilityofof
Options.
withdrawalsand
andinvesting
investing
withdrawals
backininthe
the
back

Unitsthat
thatbuild
buildup
upthe
the
Units
investmentvalue
value
investment

Investment
Investment

WHICH IS BETTER, UNIT-LINKED OR TRADITIONAL PLAN?

22

The two strong arguments in favor of unit-linked plans are that the investor knows
exactly what is happening to his money and two ,it allows the investor to choose the
assets into which he wants his funds invested.
A traditional with profits, on the other hands, is a black box and a policyholder has
little knowledge of what is happening. An investor in a ULIP knows how much he is
paying towards mortality, management and administration charges.
He also knows where the insurance company has invested the money. The investor gets
exactly the same returns that the fund earns, but he also bears the investment risk. The
transparency makes the product more competitive .So if you are willing to bare the
investment risk in order to generate a higher return on your retirement funds, ULIPs are
for you.
Traditional with profits policies too invest in the market and generate the same
Returns prevailing in the marker. But here the insurance company evens out returns to
ensure that policyholders do not lose money in a bad year. In that sense they are safer.
ULIPs also offer flexibility. For instance, a policyholder can ask the insurance
Company to liquidate units in his account to meet the mortality charges if he is unable to
pay any premium installment.
This eats into his savings, but ensures that the policy will continue to cover his life.

WHY DO INSURERS PREFER ULIPS?

Insurers love ULIPs for several reasons. Most important of all, insurers can sell
these policies with less capital of their own than what would be required if they sold
traditional policies.
In traditional with profits policies, the insurance company bears the investment
risk to the extent of the assured amount .In ULIPs, the policyholder bears most of the
investment risk.
Since ULIPs are devised to mobilize savings, they give insurance companies an
opportunity to get a large chunk of the asset management business, which has been
traditionally dominated by mutual funds.

ALLIANZ BAJAJ LAUNCHES ITS FIRST UNIT LINKED POLICY.

23

Allianz Bajaj Life Insurance Company has launched Unit Gain , the companys
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 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 ULIPS products.

LIMITATION:
1. It is prudent to make equity-oriented investments based on an established track record
of at least three years over different market cycles. ULIPs may not fulfill this criterion in
near future.
2. Insurance and savings are two different goals and it is better to address them
separately rather than bundle them into a single product. A combination of a term plan
and a mutual fund could give better results over the long term.
3.The free hand given to ULIPs might prove risky if the timing of exit happens to
coincide with a bearish market phase, because of the inherently high equity component
of these schemes.
4. An initial allocation charge is deducted from investor premiums for selling, marketing
and broker commissions. These charges could be as high as 65 per cent of the first year
premiums. Premium allocation charges are usually very high (5-65 per cent) in the first
couple of years, but taper off later. The high initial charges mainly go towards funding
24

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, redirection of premiums, withdrawals, and so on. Insurance companies have the discretion
to structure their expenses structure whereas a mutual fund does not have that luxury.
The expense ratios in their case cannot exceed 2.5 per cent for an equity plan and 2.25
per cent for a debt plan respectively. The lack of regulation on the expense front works to
the detriment of investors in ULIPs.
5. The front-loading of charges does have an impact on overall returns as investors lose
out on the compounding benefit. Insurance companies explain that charges get evened
out over a long term. Thus investors are forced to stay with the plan for a longer tenure
to even out the effect of initial charges as the shorter the tenure, the lower will be the
investor real returns.
6. In effect, when investor lock in their money in a ULIP, despite the promise of
flexibility and liquidity, investor will stuck with one fund management style. This is all
the more reason to look for an established track record before committing investor hardearned 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

BAJAJ ALLIANZ ULIPS PRODUCTS

25

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.
Important details of Bajaj allianz unit gain RP plan
Minimum age at entry: 0(risk commences at age 7, and ceases after age 70)
Maximum age at entry :60
The minimum age at entry for all additional benefits is 18 years.
The maximum age at entry for all additional benefits is 50 years.
All additional benefits are available till age 65.

2) UNIT GAIN SINGLE PREMIUM

The bajaj allianz unit gain SP comes with a host of features to allow you to have
the best of all worlds- protection and investment with flexibility like never before.
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.
26

 Unmatched flexibility to match your changing needs.

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)
Maximum age at entry :67
Minimum single premium :Rs .25000.
Minimum top-up :Rs 10000

3) UNIT GAIN PLUS REGULAR PLAN:

The Bajaj allianz unit gain plus RP comes with a host of features to allow you
to have the best of all words protection and investment with flexibility like never
before.
SOME OF THE KEY FEATURE OF THIS PLAN ARE:
Guaranteed death benefit.
Choice of six investment funds with flexible investment management you can
change funds at any time .
Attractive investment alternative to fixed interest securities.
Provision for full/partial withdrawals any time after 3 full years premium are paid
Unmatched flexibility to match changing needs.
IMPORTANT DETAILS OF THE BAJAJ ALLIANZ UNIT GAIN PLUS RP
PLAN
Minimum age at entry :0(Risk commences at age 7 and ceases after age 70)
Maximum age at entry :60
Minimum age at entry for all additional benefits is 18 years.
The maximum age at entry for additional benefits is 50 years.
All additional benefits are available till age 65.

27

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.
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)
Maximum age at entry :69
Minimum single premium :Rs. 25000.
Minimum top-up :Rs .5000.

5)UNIT GAIN LIFE PENSION PLAN:

With Bajaj Allianz ,you can take control of your future and ensure a retirement
you can look forward to. This plan has been be signed to take of your retirement and
insurance needs, there by providing you with a comprehensive solution for life time.
There are two packages choose from:
Unit gain life pension regular premium.
Unit gain life pension single premium.
Important details of the Bajaj Allianz Unit Gain Life Pension Plan:
Age of entry

Minimum
18

Maximum
65
28

Deferment period
Age at vesting

5
45

40
70

6) UNIT GAIN EASY PENSION PLAN:

With bajaj allianz , you can take control of your future and ensure a retirement you
can look for word to. There are two packages to choose form:
Unit gain easy pension regular premium.
Unit gain easy pension single premium.
IMPORTANT DETAILS OF BAJAJ ALLIANZ UNIT GAIN LIFE PENSION
PLAN:

Age of entry
Deferment period
Age at vesting

Minimum
18
5
45

Maximum
65
40
70

RESEARCH METHODOLOGY
29

OBJECTIVES OF THE STUDY:

1. To study customer perception about Bajaj Allianz ULIPs Products
2. To know the factors that influence investors while taking investment decisions.
3. To study the awareness level of Bajaj Allianz ULIPs with view to recommend
measure to improve market share.
4. To find potential market for ULIPs.

SCOPE OF THE STUDY:

1. The research was undertaken to gather information from the respondent to know
exactly how many people aware of ULIPs in Ajmer city and the study is
restricted within the city.
2. One of the fast growing city in Rajasthan and represents huge market for scope
with more than 90 lakhs people.
3. Ajmer 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 their style. More people are conscious about their lives.

LIMITATIONS OF THE STUDY:

No single work is exception to the limitations every work has got its own
limitations, so due to time constraint my study confines only to Ajmer city and it is not
possible to make extensive study. It is assumed that the sample selected represents entire
population.

30

Data source

Primary (Filed Survey)

Secondary data (internal)

Area of Research

Ajmer city

Research instrument

Questionnaires

Sample plan

Personal interview

Sample unit

Businessmans, jobholders,
professionals etc.

Sampling method

Convenience sampling

Sample size

100 customers

SAMPLING:
Sampling: we are taken random sample
Sample size: 100 consumers
Sample unit: collection of data was made from customer that is respondents

RESEARCH DESIGN:
The research design chosen was exploratory in nature as it involved effectives
study to determine the awareness of ULIPs and its products since the population in
Ajmer 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 ).

DATA COLLECTION METHODS:

PRIMARY DATA :
A structural interview schedule/ questionnaire was used as a tool for primary
data collection from respondent.
SECONDARY DATA:
Books Journals, magazines and websites

31

DATA ANALYSIS & INTERPRETATION

1.What is your ratio of saving of the total income?
a) More then 60%
c) 50% - 25%
> 60%
60%-50%
50%-25%
<25%
Total

b) 60% - 50%
d) Less then 25%

9%
13%
31%
47%
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
32

c) Shares

d) Land / Building

e) Life insurance

f) Gold

g) Mutual

h) All the above

Post Office
Bank FD
Shares
Land & Building
Life Insurance
Gold
Mutual Fund
All the above
Total

10%
20%
8%
13%
23%
5%
8%
13%
100

SAVING CONSIST
25%

23%
20%

20%
CUSTOMER 15%
RESPONSE
10%

13%
10%

8%

8%

Series1

5%

5%
0%

13%

Post
Office

Shares

Life
Insurance

Mutual
Fund

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.
3. What factor consist while making the policy.
a) Returns

b) Safety

c) Liquidity

d) Risk cover

e) All the above

33

Returns
Safety
Liquidity
Risk cover
All the above
Total

20%
29%
8%
19%
24%
100

FACTOR CONSIST WHILE MAKING POLICY

Series1
29%
30%
25%

24%
20%

19%

20%
CUSTOMER
15%
RESPONSE
10%

8%

5%
0%

Returns

safety

Liquidity

Risk
cover

All the
above

Interpretation:
From the above graph

it is clear that 20% of people wants returns, 29% of people wants

safety,8% of people wants liquidity, 19% of people wants risk cover, 24% of people
wants all the above option.

4. Have you invested money in life insurance?

a) Yes
Yes
No
Total

b) No
75%
25%
100

34

MONEY INVESTED IN LIFE INSURANCE

80%
70%
60%
50%
CUSTOMER
40%
RESPONSE
30%
20%
10%
0%

75%

25%

Yes

Series1

No

Interpretation:
From the above graph

it is clear that 75% respondents invested their money in life

insurance, 25% respondents are not invested.

5. Are you aware of ULIP

a) Yes
Yes
No
Total

b) No

(If no, skip to q no 11)

55%
45%
100

35

AWARENESS OF ULIP

45%
Yes

55%

No

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

c) ICICI

d) Others

LIC
42%
BAJAJ ALLIANZ17%
ICICI
8%
OTHERS
9%
BLANK
24%
TOTAL
100%

36

PEOPLE INVESTED THEIR MONEY IN

DIFFERENT COMPANIES
24%

42%

9%

LIC
BAJAJ ALLIANZ
ICICI
OTHERS
BLANK

8%
17%

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.

7. How do you come to know ULIP?

a) Friends

b) Agents

c) Newspapers/Magazines

d) Banks

e) Others
Friends
Agents
Newspaper/magazines
Banks
Others
Blank
Total

.
17%
18%
15%
8%
7%
35%
100%

37

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
Money Back
Term Plan
ULIP
All the above
BLANK
Total

17%
29%
16%
8%
4%
27%
100%

38

RESPONDENT TAKEN DIFFERENT PLANS

29%

30%

27%

25%
20%

17%

CUSTOMER
15%
RESPONSE
10%

16%

4%

5%
0%
Endowment

Series1

8%

Term Plan

All the
above

Interpretation:
The above graph shows that 17% of respondents have taken Endowment policy,29% of
respondents have taken money back policy,16% of respondents have taken term plan,8%
of respondents have taken ULIP,4% of respondents have taken others, 27% of
respondents not taken.

9. Why you have chosen ULIP?

a) Higher Returns

b) Liquidity

c) Life cover
Higher returns
Life cover
Liquidity
All the above
Blank
Total

d) All the above

4%
1%
2%
2%
91%
100%

39

FACTOR CONSIST WHILE CHOOSING ULIP PLAN

100%
80%
CUSTOMER
RESPONSE

60%

91%

40%

Series1

20%
0%

4%

1%

Higher
returns

Life
cover

2%
Liquidity

2%
All the
above

Blank

Interpretation:
The above graph shows that 4% respondents wants Higher returns,1% liquidity, 2% life
cover, 2% all the above and 91% of respondents are not responded well.

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

a) 10000

b) 10000-25000

c) 25000-50000

d) 50000-100000

A
B
C
D
BLANK

38%
17%
11%
3%
31%

40

PREMIUM PAYING PER ANNUM

40%
35%
30%
25%
CUSTOMER
20%
RESPONSE
15%
10%
5%
0%

38%
31%

17%

Series1
11%
3%

BLANK

Interpretation:
The above graph shows that the 38% of respondents paying premium per annum less
than 10,000, 17% respondents paying per annum between 10,000- 25,000, 11%
respondents paying per annum between 25,000-50,000, 3% respondents paying per
annum between 50,000-100,000, blank is 31%.

11. 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

41

Discussion with FM
Tax consultant/CA
IC /Agents
Finance Magazine
Websites
Others
Total

47%
22%
7%
14%
1%
9%
100%

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

b) No

A
B

52%
48%

Total

100%

42

Interpretation:
The above graph 52% respondents are interested investing money on ULIPs in future,
48% respondents are not interested to invest money in ULIPs.

13. If no why?
a) No Interest.

b) Lack of Advertisement.

c) Busy schedule.

d)Others

A
B
C

23%
6%
8%

43

D
BLANK

12%
51%

Interpretation:
The above graph 23% of respondents are no interested, 6% lack of advertisement, 8%
busy schedule, 12% of respondent says others and 51% of respondents are not responded
well.

FINDING & RECOMMNENDATIONS & CONCLUSION

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 ULIPs .
44

But in the present threading competition they should do more then the present efforts in
the following fields.
Advertising campaign.
Trade promotion activity

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 Ajmer city are coming under
middle class.
As our research we found that 55% of people are aware of ULIPs and 45% of
respondent are not aware of ULIPs so company has to give more advertisement about
the ULIPs .
Through Friends 17% of people are come to know about the ULIPs ,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 ULIPs 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 ULIPs and 48% of respondent are
not interested to invest money in ULIPs so 52% is a potential customer so company
can utilize that opportunity.
42% of respondent are invested their money in LIC, 17% in Bajaj Allianz, 8% in ICICI
Prudential , 9% in others and 24% of people not at invested.
23% of respondent are not interested to invest their money in ULIPs , 6% lack of
advertisement, 8% busy schedule,12% of respondents said others and blank 51%.

RECOMMENDATIONS
Most of the respondents are not aware of Unit Linked Insurance Plan so
company has to give more advertisement about the ULIPs.
45% of respondents are not aware, which should be increased
by different medias like TV, Magazines, & News Paper.
45

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 Coshould

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.

LIMITATIONS
The limitation of the project was that the study and the survey were conducted in Ajmer
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 Ajmer
city

REFERENCE
Marketing Research :

Hawkins & Tull.

Websites :

www.google.com
46

www.bajajallianz.co.in
Materials :

Journals & Magazines

Newspaper :

Economic Times.
Business Line.

QUESTIONNAIRE
Name

Contact No : ______________

Address

_________________________________________________________

Age

Gender: _____________

Occupation : ____________
47

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

a) More then 60%

b) 60% - 50%

c) 50% - 25%

d) Less then 25%

2. Your saving consist of.

a) Post office

b) Bank FD

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 go to 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

8. Which plan you have taken?

a) Endowment

b) Money Back
48

c) Term Plan

d) ULIP

e) Any others, Specify

9. Why you have chosen ULIP?

a) Higher Returns

b) Liquidity

c) Life cover

d)All the above

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

a) 10000

b) 10000-25000

c) 25000-50000

d) 50000-100000

11. 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

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

a) Yes

b) No

13. If no why?
a) No Interest.

b) Lack of Advertisement.

c) Busy schedule.

d) Others

49