Professional Documents
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Bajaj Allianz General Insurance Co
Bajaj Allianz General Insurance Co
A Project Report on
Submitted to
Mrs. Smriti Dua
Submitted by:
Name of the student Enrollment No. Course Shishir Kaushik 02420601809 BBA(B&I) Ist Shift
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PREFACE
This report deals with organizations activities related to Product Mix of Bajaj Allianz General Insurance. It includes methods, past experiences, board of directors of organizations, etc. Subject matter of this report has been elaborated with simple words and lucid. Tables, charts, figure have been given to facilitate under- standing. Thus the have left no stone unturned to make this work useless, wasteful and valueless. I gave my complete effort to make it valuable, useful and enrich it with my views so that it give complete sense and benefit to readers
SHISHIR KAUSHIK
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CERTIFICATE
This to certify that SHISHIR KAUSHIK is a bonafide student of this institute perusing B.B.A.(B&I) fulltime program of three years duration which is in affiliation with GGSIPU. And has undertaken a minor project on Product Mix of Bajaj Allianz General Insurance in partial fulfillment of B.B.A. (B&I) degree as required under the rules of the University.
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ACKNOWLEDGEMENT
With an over whelming sense of gratitude I acknowledge the valuable guidelines and consistent and encouragement extended to me by our knowledge faculty members with whose guidance I am able to accomplish this Endeavour. When where technical acumen and years of experience have provided me with crucial inputs at critical stage. I am especially indebted to Trinity Institute of Professional Studies to provide all the necessary materials which help me in accomplishing the task assignment. I also want to thank my project guide Mrs. Smriti Dua who encouraged and motivated me to work on this project.
SHISHIR KAUSHIK
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TABLE OF CONTENTS
Sr.No
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
CONTENTS
INTRODUCTION SECTOR PROFILE COMPANY PROFILE OBJECTIVES OF STUDY RESEARCH METHODOLOGY DATA ANALYSIS & INTERPRETATION OBSERVATIONS & FINDING SUGGESTION
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21 31 33 39 50 52 54 55
BIBLIOGRAPHY
QUESTIONNIARE
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INTRODUCTION
Definition 1. Range of associated products which yield larger sales revenue when marketed together than if they are marketed individually or in isolation of others. The product mix of a company, which is generally defined as the total composite of products offered by a particular organization, consists of both product lines and individual products. A product line is a group of products within the product mix that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. A product is a distinct unit within the product line that is distinguishable by size, price, appearance, or some other attribute. For example, all the courses a university offers constitute its product mix; courses in the marketing department constitute a product line; and the basic marketing course is a product item. Product decisions at these three levels are generally of two types: those that involve width (variety) and depth (assortment) of the product line and those that involve changes in the product mix occur over time. The depth (assortment) of the product mix refers to the number of product items offered PRODUCT-MIX MANAGEMENT AND RESPONSIBILITIES It is extremely important for any organization to have a well-managed product mix. Most organizations break down managing the product mix, product line, and actual product into three different levels. Product-mix decisions are concerned with the combination of product lines offered by the company. Management of the companies' product mix is the responsibility of top management. Some basic product-mix decisions include: (1) reviewing the mix of existing product lines; (2) adding new lines to and deleting existing lines from the product mix; (3) determining the relative emphasis on new versus existing product lines in the mix; (4) determining the appropriate emphasis on internal development versus external acquisition in the product mix; (5) gauging the effects of
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As can be seen from the description of the four BCG alternatives, products are evaluated as producers or users of cash. Products with a positive cash flow will finance high-opportunity products that need cash. The emphasis on cash flow stems from management's belief that it is better to finance new entries and to support existing products with internally produced funds than to increase debt or equity in the company. Based on this belief, companies will normally take money from cash cows and divert it to stars and to some problem children. The hope is that the stars will turn into cash cows and the problem children will turn into stars. The dogs will continue to receive lower funding and eventually be dropped. Managing the product mix for a company is very demanding and requires constant attention. Top management must provide accurate and timely analysis (BCG) of their company's product mix so the appropriate adjustments can be made to the product line and individual products.
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INSURANCE NEED Why is insurance necessary? The question contains the answer within itself. After all, life is fraught with tensions and apprehensions regarding the future and what it holds for the individual.
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SECTOR PROFILE
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INSURANCE SECTOR
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General Insurance
General Insurance is another segment, which has been growing at a faster pace. But as per the current comparative statistics, the general insurance premium has been lower than life insurance. General Insurance premium as a percentage of GDP was a mere 0.5 'per cent in 1996. In the General Insurance Business, General Insurance Corporation (GIC) and its four subsidiaries viz. New India Insurance, Oriental Insurance, National Insurance and United India Insurance, are doing major business. The General Insurance Industry has been growing at a rate of 19 percent per year. The entry of several private insurance companies, particularly international insurance companies, through joint ventures, will speed up the process of insurance mobilization. The competition will unleash new schemes and benefits, which will give consumers a better Chance to save as well as insure. The regulatory system in India is relatively new and takes some more time to make the Insurance sector a perfectly competitive one. Insurance Regulatory Authority of India issued regulations on 15 subjects which included appointed. Actuary, actuarial report, Insurance agents, Solvency margins, reinsurance, registration of Insurers, and obligation of insurers to rural and social sector, investment and accounting procedure. The reform in Insurance in India is guided by factors like availability of a variety of products at a competitive price, improvement in the
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Investment:
1.Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. 2. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time.) Customer Service: 1. LIC should pay interest on delays in payments beyond 30 days.
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The committee emphasized that in order to improve the customer Services and increase the coverage of the insurance industry should open up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs. 100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve.
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Life Insurance
General Insurance
New Entrants
ICICI Prudential Life Insurance Ltd. Tata AIG Life Insurance Corporation Ltd. ING Vysya Life Insurance Corporation Ltd. Om Kotak Mahindra Life Insurance Corporation Ltd. MaxNewYork Life Insurance Ltd Bajaj Allianz General Insurance Company Ltd. Reliance General Insurance Company Ltd. Tata AIG General Insurance Company Ltd. Royal Sundaram Alliance Insurance Company Ltd.
MARKET SHARE
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In the FY2008 ICICI Lombard and Bajaj Allianz have witnessed aggressive growth by making the retail segment their target segment ,aggressive growth strategies and huge distribution network.The general insurance industry has witnessed the entry of many nontraditional players .IRDA has issued a license to the Rajan Raheja Group(RRG) for setting up a general insurance joint veture with Australias QBE Insurance Group.Last two years have seen the emergence of special institutions,such as ECGC,Star Health&Allied Insurance ,Appolo DKV and Agriculture Insurance Co.
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Motor insurance has the biggest share in general insurance market and show a high growth over three years. Corporate ex-health shown a low depression in Fy 2006-07 and high depression in Fy2007-08.Health insurance shows positive trend in all these FYs.
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COMPANY PROFILE
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Vision
To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry. To be the number one insurer for creating shareholder value
Mission
As a responsible, customer focused market leader, we will strive to understand the insurance
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Achievements
Bajaj Allianz has received "iAAA rating, from ICRA Limited, an associate of Moody's Investors Services, for Claims Paying Ability.This rating indicates highest claims paying ability and a fundamentally strong position Bajaj Allianz General Insurance has received the prestigious Business Leader in General Insurance, awarded by NDTV Profit Business Leadership Awards 2008. The company was one of the top three finalists for the year 2007 and 2008 in the General Insurance Company of the Year award by Asia Insurance Review.
Companys History
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Children Education Bonus In case of Death or Permanent Total Disability of Insured or the insured person we will pay an additional amount to the Insured's or the insured person's children to support their education. Additional Benefits Medical Expenses We will pay a percentage of the admitted claim under other specified coverage towards the actual medical expenses necessarily and reasonably incurred for medical treatment within 100 weeks of its happening if the Insured or the insured person suffers injury during the period of insurance and provided such treatment is received from a qualified and registered medical practitioner. Hospital Confinement Allowance In the event of the Insured or the insured person being confined in hospital for treatment of injury for which compensation is payable under this policy, a daily benefit is paid for such period of confinement subject to a maximum period of 30 days Classification of occupation Risk Class 1: You are mainly engaged in administrative or managing functions, Accountant, Doctor, Lawyer, Architect, Consulting Engineer, Teacher, Banker or primarily engaged in a similar occupation Risk Class II: You are engaged in manual labour, garage or motor mechanic, machine operator, paid driver of a car, a truck, a lorry or other heavy vehicles, cash carrying employee, woodworking machinist, or you are a Builder, Contractor, Engineer superintending functions, veterinary doctor, or engaged
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Special notes: The Policy can be issued to persons aged between 18 and 65. In case of children, they need to be aged between 5 and 19 to become eligible for coverage. The total sum insured is normally restricted to 70 times of Insured's monthly average earnings. The minimum premium is Rs.500 General Exclusions: Suicide, self-inflicted injury, pregnancy or childbirth, pre-existing physical or mental defects, infections, bleeding from inner organs, aviation other than as a passenger, motor rallies, war, civil war, terrorism or similar situations.
Policy provides for the cash benefits in the event of insured person(s) being hospitalized due to sickness or accident. It provides cash for each and every completed day of Hospitalization. It can be taken by anyone in the age group of 3 months to 60 years.
Salient Features
The Company pays a daily allowance for every day of Hospitalization. The daily allowance can to be Rs.500/-, Rs.1000/- or Rs.2000/- per day, at the option of Insured.
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The policy pays for a maximum of 30/60 days of Hospitalization per policy period, irrespective of number of confinements to hospital/nursing home per policy period. Number of days of Hospitalization shall be selected by the insured. A day for this purpose may be a period of 12 hours reckoned from the time of Hospitalization but must include 0300 hours. Dependant spouse and children can also be covered under the Policy. The benefits payable to the dependants shall be linked to that of Insured as above regardless of the fact whether they are employed or not. Further discounts are given if spouse and children are insured. There is no limit on the number of children to be covered. The minimum age for the children is 3 months with maximum being 21 years. Premium paid up to Rs.15,000 per annum is eligible for Tax benefit u/s 80 D of IT Act. In case of ICU admission double the scheduled amount will be paid (maximum of 7 days).
There is no need to submit medical bills. Only a discharge certificate is sufficient for admitting the claim. Benefits
The policy pays a daily allowance for every day of Hospitalization. The daily allowance depends on the amount selected by the insured. Number of days of Hospitalization is limited to 30/60 days per policy period, as selected by the insured.
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1. Features The member has cashless facility at over 2300 hospitals across India With Health Guard, the member has access to cashless facility at various empanelled hospitals across India. Pre and post - hospitalization expenses covers relevant medical expenses incurred 60 days prior to and 90 days after hospitalization Covers ambulance charges in an emergency subject to limit of Rs. 1000 /No tests required up to 45 years up to SI 10 lacs* 10% co- payment applicable if treatment taken in non-network hospitals 20% co-payment applicable for members of age group 56 -65 years, opting this policy for first time Waiver on 10% co-payment is available on payment of additional premium Pre-existing diseases covered after 4 years continuous renewal with Bajaj Allianz
2. What are the benefits of this policy? In house Health Administration Team for hospitalisation claims to lower turn around time Access to over 2300 hospitals all over India for cashless facility. No Sub-limits applicable on room rent and other expenses Hassle-free claim settlement due to In-house claim administration. Income tax benefit on the premium paid as per section 80-D of Income Tax Act as per existing IT law. Health Check up for maximum amount of Rs. 1000 /- at the end of continuous four claim free years Family discount of 10% is applicable 3. Coverage Sum insured from Rs. 1lakh to Rs.10 lakhs can be opted from 3 months to 55 yrs.
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Critical Illness
A health insurance plan that covers critical illness means you can insure yourself against the risk of serious illness in much the same way as you insure your car and your house. It will give you the same security of knowing that a guaranteed cash amount will be paid if the unexpected happens and you are diagnosed with a critical illness. 1. Advantages of Critical Illness Health Insurance Plan The Critical Illness health insurance plan has the following advantages:The benefit amount is payable once the disease is diagnosed meeting specific criteria and the insured survives 30 days after the diagnosis. The insured receives the amount as lump sum so that he can plan the treatment accordingly. Expenses like donor expenses in a transplant surgery, which are not covered under normal health insurance policy, can be paid out of the amount received under this cover both in India & abroad. Key Features The product is offered from 6 to 59 years. Medical examination may be required in some cases based on the age and the benefit amount opted by the proposed. Very competitive premium rates. Insured can opt for Sum Assured from 1,00,000 to Rs. 50,00,000.
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9) Paralysis Paralysis is usually caused by damage to the brain or spinal cord, affecting the transmission of messages through the nervous system or by physical injury to the limbs in question. 10) Primary Pulmonary Arterial Hypertension Primary pulmonary hypertension a progressive disorder recommended or which was first manifested or contracted before characterized by high blood pressure (hypertension) of the main artery of the lungs (pulmonary artery). The pulmonary artery is the blood vessel that carries blood from the heart through the lungs. Symptoms of primary pulmonary hypertension include shortness of breath (dyspnoea) especially during exercise, chest pain, and fainting episodes. The exact cause of primary pulmonary hypertension is unknown.
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1. Coverage Fire & allied perils Baggage Domestic appliances- Burglary & theft Electronic appliances 3 easy steps - pick, tick, so quick... 1 Pick the Kit to fill the Proposal Form cum Policy Schedule 2 Select your desired insurance plan 3 Pay your Premium by Cheque / Cash / DD / Credit Card
2. Advantages Available as over the counter (OTC) kit Instant activation through SMS/ Call centre Convenience to choose from 3 customized plans Affordable package premium Combination of requisite covers (sections) Waiver of under insurance Easy claim settlement process
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What does this policy not cover? The policy does not cover any loss if: Arising out of suppression of fact affecting the risk at the time of affecting the policy. There is any change in the circumstances or conditions of the said employment without the consent of the company. More than one claim in respect of any one employee. Arising outside India. Due to non-observance or relaxations of system of checks and precautions. By an act committed subsequent to an earlier act of dishonesty/fraud and which had come to the notice of the insured / insured's representative / supervisor.
Office package
There are huge investments made when it comes to business. Investments are made for office premises, equipment's, human resources and other infrastructural facilities. Bajaj Allianz General Insurance offers the Office Package Policy ,which helps you share your financial burden should you face heavy losses. Features Policy covers building (if owned) and contents against fire and allied perils and burglary Covers breakdown of office equipment, including electronic equipment and laptops Fidelity Guarantee gives protection from being victimized by fraudulent and dishonest employees Public liability can also be covered Hospital Cash Daily Allowance benefit for family in case the insured is hospitalized Flexible rating for personal accident
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Advantages All the insurance requirements are addressed by a single policy Less time spent in fulfilling procedural requirement One stop shop / solution for the clients business related needs Takes care of the ailments leading to hospitalization Tailor-made as per client's needs.
Money Insurance
This Money insurance policy covers Loss of money in transit caused by robbery, theft, or any fortuitous event. Loss of money from the insured's premises during business hours caused by theft or robbery Loss of money from the insured's safe or strong room caused by theft or robbery. The term money includes cash, bank drafts, currency notes, treasury notes, postal orders, money orders and postage stamps. The loss of money in transit must occur whilst being carried by the insured or his authorized employee, that is, the employees named in the schedule.
Extensions The policy can be extended to cover the following risks: Unnamed employees: The operative clause of the policy refers to employees named in the schedule. Often large corporations seek money insurance to cover unnamed employees. The policy can be extended to cover unnamed employees at an extra premium. Carriage of cash by contractor's employees: Often, corporations contract out the task of cash carriage. The policy can be issued to include carriage of cash by contractors' employees. Policies can be issued to cover only contractor's employees provided all cash carriage is contracted out.
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Public Liability
The policy offers to indemnify you against legal liability to pay compensation including the claimant's costs, fees and expenses as a result of bodily injury or property damage to third parties arising out of accidents occurring in your premises during and notified within the currency of the policy. Extensions The policy can be extended on payment of extra premium to include Pollution Liability: The extension covers liability for death or bodily injury or physical damage to or destruction of tangible property or loss of use of such property damaged or destroyed due to industrial seepage, pollution and contamination caused by a sudden, unintended and unexpected happening which takes place in its entirety at a specific time and a specific place. The coverage will also apply to cost of removing nullifying or cleaning up seepage, pollution or contamination only when it is caused by a sudden, unintended and unexpected happening. The extension, however, will not cover fines, penalties, punitive and exemplary damage. Carriage of effluents (outside the premises): The extension covers liability for death or bodily injury or physical damage to or destruction of tangible property or loss of use of such property damaged or destroyed arising out of accidents directly caused by treated effluents whilst being carried by pipelines outside the premises insured to discharge points. The coverage will not include pollution risk unless specifically covered. Liability arising out of transportation: This extension covers legal liability of the Insured for death or bodily injury or loss of or damage to or loss of use of property arising out of accident directly caused by materials/dangerous or hazardous substances whilst being transported by rail/road/pipeline. echnical Collaborators inclusion: This extension covers legal liability of the technical collaborators with respect to the collaboration agreement between the Insured and the Collaborator.
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Figure shows profit after taxes in Rs.(In Millions) The company has earned a Profit Before Tax of Rs. 1,679 Mn for the year ended 31st March 2008, an increase of 43.5% over the previous year profit of Rs. 1,170 Mn. The Profit Before Tax includes a provision of Rs. 361 Mn towards provisions for losses from the IMTPIP. The net profit for the year, after provisions for reported losses from the IMTPIP, was Rs. 1,056 Mn as against Rs. 754 Mn reported in 2006-07, which is an increase of 40.0%. In a year when prices of insurance fell significantly, increasing its profitability whilst improving the market share has been a significant achievement for your Company. It is a matter of pride for Bajaj Allianz that it have become the benchmark for other companies in the market in so far as underwriting
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To study the sales Strategy of field force of Bajaj Allianz General Insurance.
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RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. Research methodology constitutes of research methods, selection criterion of research methods, used in context of research study and explanation of using of a particular method or technique so that research results are capable of being evaluated either by researcher himself or by others. Why a research study has been undertaken, how the research problem has been formulated, why data have been collected and what particular technique of analyzing data has been used and a best of similar other question are usually answered when we talk of Research methodology concerning a research problem or study. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet.
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DATA COLLECTION.
SECONDARY DATA SOURCES: Through internet, various official sites of the companies. Through pamphlets and brochures of the companies.
Journals & Magazine
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because of negative trend in market. Insurance care consultants said that the customer are curious in getting insurance policies because they want more discounting on the products and low claim time after any accident.
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SUGGESTIONS
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SUGGESTIONS
Here are some suggestions, which may help to strengthen the firm further
Many of the insurance care consultants of the Bajaj Allianz. Has the lack of good communication skills and training. So training should be easy. Bajaj Allianz. Should use new techniques of sales promotion. Customer services should be more comfortable than others. People must be made aware of the benefits of the policies of Bajaj Allianz. The company should give personal attention to each customer. Proper assistance should be provided to the customer at the time of claim settlement. All the details about the company should be given to the customers. Regular advertisement of the company should be given TV and Newspaper. The company must try to find new markets especially in the rural areas. The company should do frequent analysis of the competitors.
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BIBLIOGRAPHY
Books
Kothari C.R., (1999) Research Methodology, Wishwa Prakashan Kotler P. and Armstrong G., (2005) Principles of Marketing New Delhi, Prentice Hall of India Kotler P., (1999)Marketing Management Analysis, Planning, Implementation and Control, New Delhi, Prentice Hall of India Saxena Rajan, (1999) Marketing Management, Tata McGraw Hill
Websites:
www.bajajallianz.com www.indiainfoline.com www.irdaindia.org www.thehindubusinessline.com
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