Bhoomi (Project)

Policyholder’s attitude towards Bajaj Allianz Life insurance Company Limited- A case study of its
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CHAPTER-1
INTRODUCTION
1.1 Introduction:
Insurance is a means of protection from financial loss in which, in exchange for a fee, a
party agrees to compensate another party in the event of a certain loss, damage, or injury. It is
a form of risk management, primarily used to hedge against the risk of a contingent or
uncertain loss.
An entity which provides insurance is known as an insurer, insurance company, insurance

carrier, or underwriter. A person or entity who buys insurance is known as a policyholder,
while a person or entity covered under the policy is called an insured. The insurance
transaction involves the policyholder assuming a guaranteed, known, and relatively small
loss in the form of a payment to the insurer (a premium) in exchange for the insurer’s
promise to compensate the insured in the event of a covered loss. The loss may or may not be
financial, but it must be reducible to financial terms. Furthermore, it usually involves
something in which the insured has an insurable interest established by ownership,
possession, or pre-existing relationship.
The insured receives a contract, called the insurance policy, which details the conditions
and circumstances under which the insurer will compensate the insured, or their designated
beneficiary or assignee. The amount of money charged by the insurer to the policyholder for
the coverage set forth in the insurance policy is called the premium. If the insured
experiences a loss which is potentially covered by the insurance policy, the insured submits a
claim to the insurer for processing by a claims adjuster. A mandatory out-of-pocket expense
required by an insurance policy before an insurer will pay a claim is called a deductible (or if
required by a health insurance policy, a copayment). The insurer may hedge its own risk by
taking out reinsurance, whereby another insurance company agrees to carry some of the
risks, especially if the primary insurer deems the risk too large for it to carry.
Institute Of Management Studies And Research Page 1

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1.2 History and background of insurance in the world :
The history of insurance traces the development of the modern business of insurance
against risks, especially regarding cargo, property, death, automobile accidents, and medical
treatment.
The insurance industry helps to eliminate risks (as when fire-insurance providers demand
the implementation of safe practices and the installation of hydrants), spreads risks from
individuals to the larger community, and provides an important source of long-term finance
for both the public and private sectors.
Ancient era:
In December 1901 and January 1902, at the direction of archaeologist Jacques de
Morgan, Father Jean-Vincent Scheil, OP found a 2.25 meter (or 88.5 inch) tall basalt or
diorite stele in three pieces inscribed with 4,130 lines of cuneiform law dictated by
Hammurabi (c. 1792–1750 BC) of the First Babylonian Empire in the city of Shush, Iran.
Code of Hammurabi Law 100 stipulated repayment by a debtor of a loan to a creditor on a
schedule with a maturity date specified in written contractual terms. Laws 101 and 102
stipulated that a shipping agent, factor, or ship charterer was only required to repay the
principal of a loan to their creditor in the event of a net income loss or a total loss due to an
Act of God. Law 103 stipulated that an agent, factor, or charterer was by force majeure
relieved of their liability for an entire loan in the event that the agent, factor, or charterer was
the victim of theft during the term of their charterparty upon provision of an affidavit of the
theft to their creditor.
Code of Hammurabi Law 104 stipulated that a carrier (agents, factors, or charterers) issue
a waybill and invoice for a contract of carriage to a consignee outlining contractual terms for
sales, commissions, and laytime and receive a bill of parcel and lien authorizing consignment
from the consignee. Law 105 stipulated that claims for losses filed by agents, factors, and
charterers without receipts were without standing. Law 126 stipulated that filing a false claim

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of a loss was punishable by law. Law 235 stipulated that a shipbuilder was liable within one
year of construction for the replacement of an unseaworthy vessel to the ship-owner that was
lost during the term of a charterparty. Laws 236 and 237 stipulated that a sea captain, ship-
manager, or charterer was liable for the replacement of a lost vessel and cargo to the
shipowner and consignees respectively that was negligently operated during the term of a
charterparty. Law 238 stipulated that a captain, manager, or charterer that saved a ship from
total loss was only required to pay one-half the value of the ship to the shipowner. Law 240
stipulated that the owner of a cargo ship that destroyed a passenger ship in a collision was
liable for replacement of the passenger ship and any cargo it held upon provision of an
affidavit of the collision by the owner of the passenger ship.
In 1816, an archeological excavation in Minya, Egypt (under an Eyalet of the Ottoman
Empire) produced a Nerva–Antonine dynasty-era tablet from the ruins of the Temple of
Antinous in Antinoöpolis, Aegyptus that prescribed the rules and membership dues of a
burial society collegium established in Lanuvium, Italia in approximately 133 AD during the
reign of Hadrian (117–138) of the Roman Empire.[11] In 1851, future U.S. Supreme Court
Associate Justice Joseph P. Bradley (1870–1892), once employed as an actuary for the
Mutual Benefit Life Insurance Company, submitted an article to the Journal of the Institute of
Actuaries detailing an historical account of a Severan dynasty-era life table compiled by the
Roman jurist Ulpian in approximately 220 AD during the reign of Elagabalus (218–222) that
was included in the second volume of the codification of laws ordered by Justinian I (527–
565) of the Eastern Roman Empire, the DigestaseuPandectae (533).
Additionally, the Digesta included a legal opinion written by the Roman jurist Paulus at
the beginning of the Crisis of the Third Century in 235 AD on the Lex Rhodia (“Rhodian
law”) that articulates the general average principle of marine insurance established on the
island of Rhodes in approximately 1000 to 800 BC as a member of the Doric Hexapolis,
plausibly by the Phoenicians during the proposed Dorian invasion and emergence of the
purported Sea Peoples during the Greek Dark Ages (c. 1100–c. 750) that led to the
proliferation of the Doric Greek dialect. The law of general average constitutes the
fundamental principle that underlies all insurance.

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Insurance in some forms dates back to prehistory. Initially, people sold goods in their own
villages or gathering places.[citation needed] However, with the passage of time, they turned
to nearby villages to sell. Two types of economies existed in human societies:[citation
needed] natural or non-monetary economies (using barter and trade with no centralized nor
standardized set of financial instruments) and monetary economies (with markets, currency,
financial instruments and so on). Insurance in non-monetary economies entails agreements of
mutual aid. Such economies can potentially foster institutions such as co-operatives, guilds
and proto-states – institutions functioning to provide mutual protection and to encourage
mutual survival in adverse circumstances. The “pay-off” for such “insurance” need not
involve financial transactions. If one family’s house gets destroyed, the neighbors are
committed to helping rebuild it. Public granaries embodied another early form of insurance to
indemnify against famines.
Babylonian, Chinese, and Indian traders practiced methods of transferring or distributing

risk in a monetary economy in the 3 rd and 2nd millennia BC, respectively. Chinese merchants
traversing treacherous river rapids would redistribute their wares across many vessels to limit
the loss due to any single vessel’s capsizing. The Babylonians developed a system recorded
in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing
merchants. If a merchant received a loan to fund his shipment, he would pay the lender an
additional sum in exchange for the lender’s guarantee to cancel the loan should the shipment
be stolen or lost at sea. Concepts of insurance has been also found in 3 rd century BCE Hindu
scriptures such as Dharmasastra, Arthashastra and Manusmriti.
Achaemenian monarchs in Ancient Persia received annual gifts (tribute) from the various
ethnic groups under their control. This would function as an early form of political insurance,
and officially bound the Persian monarch to protect the group from harm.
The ancient so-called “Rhodian Sea-Law”, applying to seafarers and merchants, included
a stipulation that if a seafarer was forced to throw cargo overboard to save the ship from
sinking, the loss would be reimbursed collectively by his colleagues. This is often cited as
one of the earliest examples of insurance law, with some putting its origin in the Greek island

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of Rhodes as early as 1000 BCE. However, the earliest references to the “Rhodian Sea-Law”
appear in late Roman legal sources.
The ancient Athenian "maritime loan" advanced money for voyages with repayment
being canceled if the ship was lost. In the 4 th century BC, rates for the loans differed
according to safe or dangerous times of year, implying an intuitive pricing of risk with an
effect similar to insurance.
During the Peloponnesian Wars, some Athenian slave-owners volunteered their slaves to
serve as oarsmen in warships. These slave-owners paid a small yearly premium to the
Athenian State, which, in case the slave was killed in action, would pay out the owner for the
value of the slave.
The Greeks and Romans c. 600 BC set up guilds called “benevolent societies”, which
cared for the families of deceased members, as well as paying funeral expenses of members.
Guilds in the Middle Ages had similar practices. The Jewish Talmud deals with several
aspects of insuring goods. Before modern-style insurance became established in the late 17 th
century, “friendly societies” existed in England, in which people donated amounts of money
to a general sum that could be used for emergencies.
Medieval era:
Sea loans (foenusnauticum) were common before the traditional marine insurance in
medieval times, in which an investor lent his money to a traveling merchant, and the
merchant would be liable to pay it back if the ship returned safely. In this way, credit and sea
insurance were provided at the same time. To offset the sea risk involved, the merchant was
obligated to pay a high rate of interest, in contrast to overland merchants who merely divided
the profits. Pope Gregory IX condemned the foenusnauticum as usury in his
decretalNaviganti of 1236 (Decretales, V, XIX, 19) and commenda contracts were introduced
in response. Under commenda contracts, investors provided funds to an entrepreneur to carry
out a trade, bearing the risk of loss in exchange for a favorable share of the profits when the
entrepreneur returned. By the late thirteenth century Italian merchants had begun to separate
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risk management from finance, accomplishing the latter with cambium contracts based on the
purchase of discounted bills of exchange from merchants who did not personally go to sea.
To manage the sea risk, the merchants developed the insurance loan: the merchant paid a
premium to a shipowner in the form of an unenforceable loan, under an agreement that the
shipowner would pay the merchant’s losses if his goods did not reach their destination.
In 1293, Denis of Portugal advanced the interests of the Portuguese merchants, and set up
by mutual agreement a fund called the Bolsa de Comércio, the first documented form of
marine insurance in Europe, approved on 10 May 1293.
In the thirteenth and early fourteenth centuries, the European traders traveled to sell their
goods across the globe and to hedge the risk of theft or fraud by the Captain or crew also
known as RisicumGentium. However, they realized that selling this way, involves not only
the risk of loss (i.e. damage, theft or life of trader as well) but also they cannot cover the
wider market. Therefore, the trend of hiring commissioned base agents across different
markets emerged. In 1310 the Chamber of Assurance was established in the Flamish
commercial city of Bruges.
The traders sent (exported) their goods to the agents who on the behalf of traders sold
them. Sending goods to the agents by road or sea involves different risks i.e. sea storms,
pirate attack; goods may be damaged due to poor handling while loading and unloading, etc.
Traders exploited different measures to hedge the risk involved in the exporting. Instead of
sending all the goods on one ship/truck, they used to send their goods over number of vessels
to avoid the total loss of shipment if the vessel was caught in a sea storm, fire, pirate, or came
under enemy attacks but this was not good practice due to prolonged time and efforts
involved. Insurance is the oldest method of transferring risk, which was developed to
mitigate trade/business risk. Marine insurance is very important for international trade and
makes large commercial trade possible. The risk hedging instruments used to mitigate risk in
medieval times were sea/marine (Mutuum) loans, commenda contract, and bill of exchanges.
Nelli (1972) highlighted that commenda contract and sea loans were almost the closest
substitute of marine insurance. Furthermore, he pointed out that for a half century, it was

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considered that the first marine insurance contract was floated in Italy on October 23, 1347;
however, professor Federigo found that the first written insurance contracts date back to
February 13, 1343, in Pisa. Furthermore, Italian traders spread the knowledge and use of
insurance into Europe and The Mediterranean. In the fifteenth century, word policy for
insurance contract became standardized. By the sixteenth century, insurance was common
among Britain, France, and the Netherlands. The concept of insuring outside native countries
emerged in the seventeenth century due to reduced trade or higher cost of local insurance.
According to Kingston (2011), Lloyd’s Coffeehouse was the prominent marine insurance
marketplace in London during the eighteenth century and European/American traders used
this marketplace to insure their shipments. The rules and regulations of insurance were
adopted from Italian merchants known as “Law Merchant” and initially these rules governed
the marine insurance across the globe. In case of dispute, policy writer and holder choose one
arbitrator each and these two arbitrators choose a third impartial arbitrator and parties were
bound to accept the decision made by the majority. Because of the inability of this informal
court (arbitrator) to enforce their decisions, in the sixteenth century, traders turned to formal
courts to resolve their disputes. Special courts were set up to solve the disputes of marine
insurance like in Genoa, insurance regulation passed to impose fine, on who did not obey the
Church’s prohibitions of usury (Sea loans, Commenda) in 1369. In 1435, Barcelona
ordinance issued, making it mandatory for traders to turn to formal courts in case of
insurance disputes. In Venice, “ConsolideiMercanti”, specialized court to deal with marine
insurance were set up in 1436. In 1520, the mercantile court of Genoa was replaced by more
specialized court “Rota” which not only followed the merchant’s customs but also
incorporated the legal laws in it.
Separate insurance contracts (i.e., insurance policies not bundled with loans or other
kinds of contracts) were invented in Genoa in the 14 th century, as were insurance pools
backed by pledges of landed estates. The first known insurance contract dates from Genoa in
1347, and in the next century maritime insurance developed widely and premiums were
intuitively varied with risks.

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These new insurance contracts allowed insurance to be separated from investment, a

separation of roles that first proved useful in marine insurance. The first printed book on
insurance was the legal treatise On Insurance and Merchants’ Bets by Pedro de Santarém
(Santerna), written in 1488 and published in 1552.
Modern insurance:
Insurance became more sophisticated in Enlightenment era Europe, and specialized
varieties developed. Some forms of insurance developed in London in the early decades of
the 17th century. For example, the will of the English colonist Robert Hayman mentioned two
“policies of insurance” taken out with the diocesan Chancellor of London, Arthur Duck. Of
the value of £100 each, one related to the safe arrival of Hayman’s ship in Guyana and the
other was in regard to “one hundred pounds assured by the said Doctor Arthur Ducke on my
life”.
Property insurance
Hamburger Feuerkasse (English: Hamburg Fire Office) is the first officially established
fire insurance company in the world, and the oldest existing insurance enterprise available to
the public, having started in 1676.
Property insurance as we know it today can be traced to the Great Fire of London, which
in 1666 devoured more than 13,000 houses. The devastating effects of the fire converted the
development of insurance “from a matter of convenience into one of urgency, a change of
opinion reflected in Sir Christopher Wren’s inclusion of a site for ‘the Insurance Office’ in his
new plan for London in 1667”. A number of attempted fire insurance schemes came to
nothing, but in 1681, economist Nicholas Barbon and eleven associates established the first
fire insurance company, the “Insurance Office for Houses”, at the back of the Royal
Exchange to insure brick and frame homes. Initially, 5,000 homes were insured by his
Insurance Office.
In the wake of this first successful venture, many similar companies were founded in the
following decades. Initially, each company employed its own fire department to prevent and
minimize the damage from conflagrations on properties insured by them. They also began to
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issue ‘Fire insurance marks’ to their customers. These would be displayed prominently above
the main door of the property and allowed the insurance company to positively identify
properties that had taken out insurance with them. One such notable company was the Hand
in Hand Fire & Life Insurance Society, founded in 1696 at Tom’s Coffee House in St
Martin’s Lane in London. It was structured as a mutual society, and for 135 years it operated
its own fire brigade and played an important part in shaping fire fighting and prevention. The
Sun Fire Office is the earliest still existing property insurance company, dating from 1710.
This system was soon exposed as terribly flawed, as rival brigades often ignored burning
buildings once they discovered that it had no insurance policy with their company.
Eventually, a solution was agreed upon in which all the insurance companies would supply
money and equipment to a municipal authority charged with stationing fire prevention assets
and firefighters equally around the city to respond to all fires. This did not solve the problem
entirely, as the brigades still tended to favor saving insured buildings to those without any
insurance at all.
In Colonial America, the first insurance company that underwrote fire insurance was
formed in Charles Town (modern-day Charleston), South Carolina in 1732. Benjamin
Franklin helped to popularize and make standard the practice of insurance, particularly
Property insurance to spread the risk of loss from fire, in the form of perpetual insurance. In
1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss
by Fire. Franklin’s company made contributions toward fire prevention. Not only did his
company warn against certain fire hazards, but it also refused to insure certain buildings
where the risk of fire was too great, such as all wooden houses.
Business insurance
At the same time, the first insurance schemes for the underwriting of business ventures
became available. By the end of the seventeenth century, London’s growing importance as a
center for trade was increasing demand for marine insurance.

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In the late 1680s, Edward Lloyd opened a coffee house on Tower Street in London. This
was during a boom of several hundred coffee house gathering places in London, many
catering to certain social groupings of clientele. Lloyd’s clientele tended to be ship owners,
merchants, and ships’ captains. This enabled Lloyd’s Coffee House to become a reliable
source of the latest shipping news.[45] Such news included information about the sinking of
ships and other ship/cargo losses. Because of this, Lloyd’s became the meeting place for
parties in the shipping industry to do business for having their cargoes and ships insured,
with those willing to underwrite such ventures. These informal beginnings led to the
establishment of the insurance market Lloyd’s of London and several related shipping and
insurance businesses. In 1774, long after Edward Lloyd’s death in 1713, the participating
members of the insurance arrangement formed a committee and moved to the Royal
Exchange on Cornhill as the Society of Lloyd’s. Since its inception, Lloyd’s has operated not
as an insurance company but as a gathering place of individuals (and more recently, small
groups of individuals) issuing insurance policies.
In 1720 the Royal Exchange Assurance Corporation received its royal charter under the
Royal Exchange and London Assurance Corporation Act of 1719. The Act established this
corporation as Great Britain’s exclusive corporate insurer of marine property but allowed
individuals in and outside of the Lloyd’s consortium to underwrite insurance if
unincorporated. From 1741 to 1750 the corporation was headed by multinational merchant,
attorney, and author Nicholas Magens.
Once established, insurance underwriters such as those at Lloyd’s gradually over many
decades moved into other lines of insurance business. In this same very gradual manner, most
fire insurers have expanded their scope of business to insure against other causes of loss to
buildings and their contents. Many have also filled a need for insuring business and personal
liabilities, such as injuries caused by defective products and premises. This fuller range of
insurance lines has become today’s worldwide modern market of property-liability insurance.
Life insurance

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The first life insurance policies were taken out in the early 18 th century. The first
company to offer life insurance was the Amicable Society for a Perpetual Assurance Office,
founded in London in 1706 by William Talbot and Sir Thomas Allen. The first plan of life
insurance was that each member paid a fixed annual payment per share on from one to three
shares with consideration to age of the members being twelve to fifty-five. At the end of the
year a portion of the “amicable contribution” was divided among the wives and children of
deceased members and it was in proportion to the amount of shares the heirs owned.
Amicable Society started with 2000 members.
The first life table was written by Edmund Halley In 1693, but it was only in the 1750s
that the necessary mathematical and statistical tools were in place for the development of
modern life insurance. James Dodson, a mathematician and actuary, tried to establish a new
company that issued premiums aimed at correctly offsetting the risks of long term life
assurance policies, after being refused admission to the Amicable Life Assurance Society
because of his advanced age. He was unsuccessful in his attempts at procuring a charter from
the government before his death in 1757.
His disciple, Edward Rowe Mores was finally able to establish the Society for Equitable
Assurances on Lives and Survivorship in 1762. It was the world’s first mutual insurer and it
pioneered age based premiums based on mortality rate laying “the framework for scientific
insurance practice and development” and “the basis of modern life assurance upon which all
life assurance schemes were subsequently based”.
Mores also specified that the chief official should be called an actuary—the earliest
known reference to the position as a business concern. The first modern actuary was William
Morgan, who was appointed in 1775 and served until 1830. In 1776 the Society carried out
the first actuarial valuation of liabilities and subsequently distributed the first reversionary
bonus (1781) and interim bonus (1809) among its members. It also used regular valuations to
balance competing interests. The Society sought to treat its members equitably and the
Directors tried to ensure that the policyholders received a fair return on their respective
investments. Premiums were regulated according to age, and anybody could be admitted
regardless of their state of health and other circumstances.

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The sale of life insurance In the U.S. began in the late 1760s. The Presbyterian Synods in
Philadelphia and New York founded the Corporation for Relief of Poor and Distressed
Widows and Children of Presbyterian Ministers in 1759; Episcopalian priests created a
comparable relief fund in 1769. Between 1787 and 1837 more than two dozen life insurance
companies were started, but fewer than half a dozen survived.
Accident insurance
In the late 19th century, “accident insurance” began to become available. This operated
much like modern disability insurance. The first company to offer accident insurance was the
Railway Passengers Assurance Company, formed in 1848 in England to insure against the
rising number of fatalities on the nascent railway system. It was registered as the Universal
Casualty Compensation Company to:
grant assurances on the lives of persons traveling by railway and to grant, in cases, of an
accident not having a fatal termination, compensation to the assured for injuries received
under certain conditions.
The company was able to reach an agreement with the railway companies, whereby basic
accident insurance would be sold as a package deal along with travel tickets to customers.
The company charged higher premiums for second and third class travel due to the higher
risk of injury in the roofless carriages.
National insurance
By the late 19th century, governments began to initiate national insurance programs
against sickness and old age. Germany built on a tradition of welfare programs in Prussia and
Saxony that began as early as in the 1840s. In the 1880s Chancellor Otto von Bismarck
introduced old age pensions, accident insurance and medical care that formed the basis for
Germany’s welfare state. His paternalistic programs won the support of German industry
because its goals were to win the support of the working classes for the Empire and reduce
the outflow of immigrants to America, where wages were higher but welfare did not exist.

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In Britain more extensive legislation was introduced by the Liberal government, led by H. H.
Asquith and David Lloyd George. The 1911 National Insurance Act gave the British working
classes the first contributory system of insurance against illness and unemployment.
All workers who earned under £160 a year had to pay 4 pence a week to the scheme; the
employer paid 3 pence, and general taxation paid 2 pence. As a result, workers could take
sick leave and be paid 10 shillings a week for the first 13 weeks and 5 shillings a week for
the next 13 weeks. Workers also gained access to free treatment for tuberculosis, and the sick
were eligible for treatment by a panel doctor. The National Insurance Act also provided
maternity benefits. Time-limited unemployment benefit was based on actuarial principles and
it was planned that it would be funded by a fixed amount each from workers, employers, and
taxpayers. It was restricted to particular industries, cyclical/seasonal industries like
construction of ships, and neither made any provision for dependants. By 1913, 2.3 million
were insured under the scheme for unemployment benefit and almost 15 million insured for
sickness benefit.
This system was greatly expanded after the Second World War under the influence of the
Beveridge Report, to form the first modern welfare state.
In the United States, until the passage of the Social Security Act in 1935, the federal
government did not mandate any form of insurance upon the nation as a whole. With the
passage of the Act, the new program expanded the concept and acceptance of insurance as a
means to achieve the individual financial security that might not otherwise be available. That
expansion experienced its first boom market immediately after the Second World War with
the original VA Home Loan programs that greatly expanded the idea that affordable housing
for veterans was a benefit of having served. The mortgages that were underwritten by the
federal government during this time included an insurance clause as a means of protecting
the banks and lending institutions involved against avoidable losses. During the 1940s there
was also the GI life insurance policy program that was designed to ease the burden of
military losses on the civilian population and survivors.

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1.3 History and background of insurance in India :
History of Insurance in India dates back to the writings of Manu (Manusmriti), Kautilya
(Arthashastra), and Yagnavalkya (Dharmasastra). History of Insurance is deep-rooted to a couple
of centuries ago in the 1800s. Let us learn more about the history of the insurance industry
through this article for banking and awareness preparation for UPSC IAS and suchlike exams.
o The life insurance business in India was introduced in 1818 with the establishment of the
Oriental Life Insurance Company in Calcutta. However, the company failed in 1834.
o Then in 1829, the Madras Equitable set out with the business of transacting life insurance
in the Madras Presidency.
o In 1870, the enactment of the British Insurance Act came into picture and during the last
three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874), and
Empire of India (1897) were begun in the Bombay Residency.
o The era was evidently dominated by the foreign insurance offices like the Albert Life
Assurance, Liverpool and London Globe Insurance, and Royal Insurance. These entities
gave a hard competition to the ones being set up in India.
More such interesting information is elaborated in the following study notes on history of
insurance. Banking and finance aspirants are advised to bookmark this page in order to
prepare for the general awareness section.
What is Insurance?
Insurance implies the protection from financial loss. It is one of the forms of risk
management, mainly used to hedge against the risk of an unforeseen loss.
Insurance is represented in the form of policy. It is a contract in which an individual or a

business seeks financial protection from a firm as a reimbursement from the insurance company
for the loss (big or small) caused to their property.

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For the insurance transaction to take place, the insurer and the insured enter into a legal
contract, called insurance policy. The policy provides financial security from future
uncertainties.
History of Insurance – Overview
In India, the history of insurance finds its roots in the mentions of the writings of Manu
(Manusmrithi), Kautilya (Arthasastra), and Yagnavalkya (Dharmasastra).
The writings suggest pooling of resources that could be re-distributed in times of

calamities like epidemics, floods, fire, famine, etc.
Ancient Indian history has preserved the earliest traces of insurance as in the marine trade
loans and carriers’ contracts. In all, the insurance sector in India has taken its shape inspired by
the other countries, especially, from England.
Establishment – Insurance Industry
The advent of the life insurance business in India was introduced in 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta. However, the company failed
in 1834. The Madras Equitable had begun transacting life insurance business in the Madras
Presidency in 1829.
The enactment of the British Insurance Act took place in 1870. Besides, in the last thirty
years of the nineteenth century, the Bombay Mutual (1871), Oriental (1874), and Empire of India
(1897) were set up in the Bombay Residency.
However, this period was particularly dominated by the foreign insurance companies like
Albert Life Assurance, Liverpool and London Globe Insurance, and Royal Insurance.
The Indian Life Assurance Companies Act of 1912 was the first statutory entity to
regulate the life insurance business in the country. The government of India began publishing the
returns of the Insurance Companies in India in 1914.

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The Indian Insurance Companies Act was enacted in 1928 in order to enable the
government to collect statistical data about both life and non life businesses carried out in India
by the Indian as well as foreign insurers including the provident insurance societies.
In 1938, the earlier legislation was consolidated and amended by the Insurance Act of
1938 with a view to protect the interest of the insurance public.
The Insurance Amendment Act of 1950 abolished Principal Agencies. Moreover, there
were a large number of insurance companies and the level of competition was high as well.
Amid allegations of unfair trade practices, the government of India therefore decided to
nationalize the insurance business.
Nationalization of Insurance Business
On 19th January, 1956, nationalizing the Life Insurance sector and Life Insurance
Corporation came into force in the same year.
Subsequently, the LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident
societies – 245 Indian and foreign insurers in all.
The LIC had a monopoly till the late 90s when the Insurance sector was reopened for the
private sector.
General Insurance in India
The history of general insurance dates back to the Industrial Revolution in the west and
the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as
a legacy of the British occupation.
General Insurance in India has its roots in the establishment of the Triton Insurance
Company Ltd. in 1850 in Calcutta by the British.
In 1907, the Indian Mercantile Insurance Ltd. was established. It was the first company to
transact all the classes of general insurance business.

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In 1957, the General Insurance Council was formed. It is a wing of the Insurance
Association of India. The council framed a code of conduct for ensuring fair and sound business
practices.
The amendment of the Insurance Act took place in 1968 to regulate investments and set
minimum solvency margins.
Solve Quant Question Bank for Insurance Exams here!
Early Insurers
o The general insurance business was nationalized with effect from 01st January 1973 by
passing the General Insurance Business (Nationalization) Act in 1972.
o 107 insurers were amalgamated and grouped into four companies as National Insurance
Company Ltd., New India Assurance Company Ltd., Oriental Insurance Company Ltd.,
and United India Insurance Company Ltd.
o The General Insurance Corporation of India was incorporated as a company in 1971.
Malhotra Committee
In 1993, the government set up a committee under RN Malhotra (former governor of the
RBI) to propose recommendations to reform the insurance sector in India.
The objective of the committee was to complement the reforms initiated in the financial sector.
The committee subsequently submitted its report in 1994, in which it recommended that
the private sector be permitted to enter the insurance industry.
The report also stated that the private sector be permitted to enter the insurance industry.
It said that the foreign companies be allowed to enter by floating Indian companies, preferably a
joint venture with the Indian partners.
Establishment of IRDA

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As per the recommendations of the Malhotra Committee report in 1999, the IRDA
(Insurance Regulatory and Development Authority) was set up. It is an autonomous body
responsible for the regulation and development of the insurance industry in India. In April 2000,
the IRDA was incorporated as a statutory body.
The prime objectives of the IRDA includes the promotion of competition in the insurance
industry so as to enhance customer satisfaction through an increase in consumer choices and
lower premiums. The IRDA also ensures financial security of the insurance market.
The IRDA has the power to frame regulations under Section 114A of the Insurance Act
of 1938. Since 2000, it has framed various regulations covering registration of companies for
carrying on insurance business, protection of policyholders’ interests, and so on.
In December 2000, the subsidiaries of the General Insurance Corporation of India were
restructured as independent companies. At the same time, the GIC was converted into a national
re-insurer.
Presently, there are 34 general insurance companies including the ECGC and Agriculture
Insurance Corporation of India and 24 life insurance companies operating in India.
Insurance is a colossal sector and is growing at a faster rate of 15-20%. Along with the
banking services, insurance contributes around 7% to the country’s GDP.
The insurance sector provides long term funds for the infrastructural development as well as
strengthens the risk taking ability of the country. Hence, a well-evolved and much developed
insurance sector plays a significant role in economic development.
1.4 History and background of insurance in Karnataka :
Introduction
District Insurance Office (K.G.I.D.) is an Independent and Compulsory Insurance
programme established in 1958. The department is responsible for implementing Compulsory

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Insurance Programme to all the Pure Government Employees working under Karnataka
Government.
Department general information

Karnataka Government Insurance Department was founded by his Excellency Sri.
Chamaraja Wodeyar X in the year 1891 to establish security for all the State Government
Employees.
Further developed by Divan Sir K. Sheshadri Iyer to include the Retirement funds to the
Government employee and Death Claim settlement to the family of the Government employee in
case of interim death during service. This was to provide financial stability to all the
State Government employees.
Other information
The District Insurance Office, Tumkur was established an de-centralized in Tumkur District in
the year 1981. The provision of Insurance for social security is provided by the department.
Also sanction of Loans is given to all the policy holders. At the age of 55 years of the policy
holders Maturity Amount (Policy amount + Bonus) will be provided In case of death of the
policy holder before the age of 55 years, the Death Claim amount will be given to the
Nominee/Family.
1.5 History and background of insurance in shimoga district :
Bajaj Allianz Life Insurance Co. Ltd., one of India’s leading private life insurers, is a
joint venture between Bajaj Finserv Limited, one of the most diversified non-banking
financial institutions in India, and Allianz SE, one of world’s leading global insurer and asset
manager. We began operations in August 2001 from our headquarters in Pune, Maharashtra
(India).
With a focus on getting Life Goals DONE. Bajaj Allianz Life is committed to offer value-
packed and innovative products, which are simple to understand and purchase. They are
designed to meet long-term life goals of customers, ranging from protection, wealth creation

Shivamogga district
to retirement solutions and more. These are backed by a suite of tech-enabled services and
service touchpoints to ensure we are always available for our customers to manage their Life
Goals with us.
To ensure enhanced customer engagement, we have built an extensive distribution

network across the country. With 503 branches, over 1,31,743 agents (as on 30 June, 2023),
along with several partnerships with key banks, including AXIS, Bandhan, IDFC First
amongst others, and a large network of Corporate Agents, we are present where our
customers are. Our digital eco-system is also built and strengthened over time to ensure we
are available, literally, on the palms of our customers.
With innovation and customer-centricity as our guiding values, we have transformed to

being one of the fastest growing life insurers in India. Today, we are the life goals enablers to
over 2.82 crore# individuals and have over Rs. 95,317 crore Assets Under Management (as
on 30 June, 2023), with a AAA$ Rating that signifies highest degree of safety regarding
timely servicing of financial obligations and Claims Settlement Ratio at 99.04% ~ .
Over the last five years, we have disrupted the life insurance industry in several ways, to
ensure that our customers enjoy the several benefits their life insurance policy(ies) provide.
From introducing first-of-their-kinds product features to innovative services for our
customers, ICs and partners alike (e.g. SmartAssist, comprehensive set of services on
Whatsapp Business account, QR-code enabled branch services, etc.), several milestones mark
our transformation journey this far.
As a brand, Bajaj Allianz Life has also strengthened the trust quotient it enjoys amongst
its stakeholders and customers. Our endearing campaigns built on deep customer insights and
right marketing analytics have helped build a strong brand recall. We have been recognized
thrice for the mega Plankathon event where we broke records for most number of people
performing the abdominal plank, simultaneously.
All these achievements have been possible due to the passion of over 21K team members
working towards enabling life goals of our customers.

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CHAPTER-2
RESEARCH DESIGN
 Introduction
 Need for the study
 Statement of the research problem
 Objectives of the study
 Scope of the study
 Methodology
 Limitations of the study

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CHAPTER-2
RESEARCH DESIGN
INTRODUCTION:
Future is always uncertain and full of risk. It is not certain that what is going to happen
tomorrow. Therefore a man is always worried about security of property and life. Insurance is a
means of meeting out loss caused by future risks and uncertainties. “Insurance is a contract
between two parties whereby one party called insurer undertakes in exchange for a fixed sum
called premiums, to pay the other party called insured a fixed amount of money on the happening
of a certain event.” Insurance may be described as a social device to reduce or eliminate risk of
life and property. Under the plan of insurance, a large numbers of people associate themselves by
sharing risk, attached to individual.
Bajaj Allianz Life insurance Company is 74:26 joint venture between BajajAuto limited
and Allianz AG, Germany (formerly Allianz Bajaj Life Insurance Company limited). It is the
fastest growing private Life Insurance Company in India. Allianz AG is a leading insurance
conglomerate globally and the largest asset manager in the world.
The present study relates itself to analysis of perceptions of policyholders towards Bajaj
Allianz Life Insurance Life Insurance. For the purposes the researcher has selected Shimoga
branch of Bajaj Allianz Limited for case study. The customers of Shimoga branch have been
contacted to elicit their perceptions. The study provides a detailed analysis of opinions of
customers and presents some suggestions for enhancement of effectiveness and efficiency in the
business.

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Review of literature:
“Insurance is a concept of insurance can be simply stated as a contract of indemnity or an

assurance to a person, group or body to indemnify a specified loss fatal, physical or financial, or
to indemnify any specified damages to property or assets owned by him or them upon occurrence
of an event.
The person so assured is/are the insured and the entity that makes such .assurance is the
insurance. This concept of evolution of the damages and & termination of the compensation
i.e..the insurance activity is a couple of centuries old in India.”
“Life insurance is not only insures a life, it also insures a way of life. It combines security
with dignity and personal freedom. The society’s standard of living _oes up, thanks to life
insurance, it is not only widow, living on the insurance money provided by her dead husband
who shall testify to the benefit of the life insurance. But millions of young businessmen, young
entrepreneurs would not bear getting bank loan; young couples would not be building their own
houses. An orphan would not become a doctor with an overflowing practice; the old couple
would not enjoy the pleasure in a tourist spot, but for life insurance. It guaranteed economic
security not only to individual, but also to the nation. Life insurance is sold for the preservation
of home. When we protect the home, we protect the family, the very basic unit in our national
structure. A country composed of secure home is a strong country.”
Arakstore Enterprise, Indian insurance industries has seen significant growth over the past few
years an account of growth in national economic, increasing in per capita income, growth in
consumer awareness about insurance product an the entry of foreign players in the Indian market
bringing in more ilmovative product. The Indian insurance industry operates through life, non-
life segment with life insurance, motor and health insurance being major industry rivers.”
B.Balajisatyanarayan, (2008) “it is not just enough to buy the right covers, one should also know
what to do in case something goes wrong and the need for market a chain arises. The insurance
company is not a charitable trust insurance scrutinize every claim before making the payment.”

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G.Gopalakrishna, (2008 the ICFAI University) “life insurance is an insurance of mechanism that
provides compensation for pre-financial value of assets in case of loss and damages. It doesn’t
get back and replace the assets, it is only for the loss suffered. Insurance is transfer and sharing
of risk by equitable loss sharing. It proves to be a profitable investment and fulfils a host of
needs of a person. In fact, life insurance is a way of life.”
United states, “Life Insurance is a contract between a person called Insurance and the
company or Insurance that providing the insurance. If he/she dies while the contract is force, the
insurance company pays a specified sum of money free of income tax that is cash benefit to the
person r person he name as beneficiaries. It offers a way to replace the loss of income that
happens when someone dies generally the person who produces the majority of income in a
family situation]. And these cash benefit must provide for his/her family’s future needs as well
including college education for his/her children and part of all of his/her spouse’s retirement
needs.”
NEED FOR THE STUDY
The present study tries to throw light on the efficiency and effectiveness of life insurance
business of Bajaj Allianz Limited. There are a number of studies conducted on Life Insurance in
general and life insurance business of different companies in particular. But the analysis of life
insurance business of Bajaj Allianz Limited has not been hitherto given research touch. Although
there are number of studies on this aspect, the research orientation is lacking. It is necessary for
every company to analyze its business with the help of opinions of its own customers. Because,
consumers orientation of business activities helps in improving business and enhancing
profitability. Therefore a research oriented study become necessary for enhancing effectiveness.
This study presents an analysis of life insurance business of Bajaj Allianz limited with the help of
both secondary data and primary data. The effectiveness and efficiency in the operating life
insurance business has been properly assessed in this study and in the light of the findings, with
the survey the suggestions have been given for the enhancement of effectiveness in the business.
In the light of these things study claims relevance and importance.
STATEMENT OF RESEARCH PROBLEM:

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As already stated, the present study deals with assessment of efficiency and effectiveness
of Bajaj Allianz Ltd in operating its life insurance business. The study is based on both primary
and secondary data for the purpose of analysis, the researcher selected Shimoga branch of Bajaj
Allianz Ltd for case study. 100 customers of the branch selected on convenience sampling basis
have been approached and their inions have been analyzed to assess the efficiency of the co; in
operating its business. Therefore the researcher problem has been stated as
“POLICYHOLDER’S ATITUDE TOWARDS BAJAJ ALLIANZ LTD” A case study of its
Shivamogga branch.
OBJECTIVES OF THE STUDY:
The following objectives have been set for the study considering the need for the study.
1. To present growth and development of Life Insurance business in India.

2. To provide a profile of Bajaj Allianz Life Insurance Co; ltd.
3. To analyse the trend of life insurance business in Bajaj Allianz Ltd.
4. To analyse and interpret the data collected from policy holders.
5. To make suggestions in the light of the findings of the survey for augmentation of
effectiveness and efficiency of the co; in conducting Life Insurance business.
SCOPE OF THE STUDY:
The study presents an analysis of Life Insurance business of Bajaj Allianz limited. It
provides the growth and development of business of the co; with the help of secondary data. In
order to assess the effectiveness of the business with the help of the customer’s opinion, the
researcher has selected Shivamogga Branch of the co; and customers in Shivamogga have been
contacted for the geographical area of empherical study is confined to Shivamogga City.
METHODOLOGY
The study is based on both primary & secondary data. Primary data has been collected
from the customers of the company, distributing the structured questionnaire to the policy
holders. The secondary data has been collected from different sources like text books, journals &

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magazines, website etc. The primary data has been collected during the month of April 2016. 100
policyholders of Shimoga branch have been selected on convenience sampling basis. The data so
collected has been analysed& interpreted using simple statistical tools like tables, growth rate,
percentage etc.
The suggestions have been made on the basis of survey findings for the enhancement of
effectiveness in the business of the company.
LIMITATIONS
The major limitations of the study are the limitations of time & money. Although there
are a number of branches of the company operating in different parts. The empherical study is
confined to Shirnoga city. Because of time & financial constraints there are possibilities of bias
on part of respondents, while they answered the questionnaires. Therefore the possibilities of
adverse effects on the results of the survey. Even then the researcher has taken precautions to
make the study realistic as far as possible.

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CHAPTER -3
THE BAJAJ ALLIANZ LIFE INSURANCE COMPANY
LIMITED - A COMPANY PROFILE
INTRODUCTION:
In the last chapter growth & development of Life Insurance in India has been presented.
This chapter is concerned with growth & development of Bajaj Allianz Life Insurance Company.
It prvides the objectives products, functions & trend of business of a Bajaj Allianz Limited.
Bajaj Allianz Life insurance Company is a 74:26 joint venture between Bajaj Auto
limited and Allianz AG, Germany (formerly Allianz Bajaj Life Insurance Company limited). It is
the fastest growing private Life Insurance Company in India. Allianz AG is a leading insurance
conglomerate globally and the largest asset manager in the world, managing assets worth over
996 billion Euros (Rs. 55,00,000crores). At Bajaj Allianz, ‘customer delight’ is their guild line
principle. It is ensuring world class solutions by offering people customized products with
transparent benefits supported by the best technology is their business philosophy.
As already stated, Bajaj Allianz Life Insurance Company Limited is a joint venture of Bajaj Auto
limited and Allianz AG Germany.
The details of Allianz Group and Bajaj Group are presented below
ALLIANZ GROUP

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Allianz Group is one of the world’s leading insurer and financial service provider. Founded
in 1980 Berlin, Allianz is now present in over 70 countries with almost 1,74,000 employees. At
the top of the international group of the holding company, Allianz AG, with its head office in
Munich. Allianz group provides its more than 60 million customers worldwide with its
comprehensive range of:
• Property and Casualty Insurance

• Life and Health Insurance.
• Asset Management and Banking.
• ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE
• Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 crore.
• 3Ld largest Assets under Management (AUM) & largest amongst insurance cos. - AUM
ofRs.51, 96,959 crore
• 12th largest corporation in the world.
• 49.8 % of global business from Life Insurance.
• Established in 1 890, 110 yrs of Insurance expertise
• 70 countries, 173,750 employees worldwide.
BAJAJ GROUP
Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest
manufacturers of two-wheelers and three-wheelers in India and one of the largest in the
world. A household name in India, Bajaj Auto has a strong brand image & brand loyalty
synonymous with quality & customer focus.
STRONG INDIAN BRAND- HAMARA BAJAJ:
• One of the largest 2 & 3 wheeler manufacturers in the world

• 2 1 million+ vehicles on the roads across the globe
• Managing funds of over Rs 8000 Cr.
• Bajaj Auto finance one of the largest auto finance cos. in India
• Rs. 4,744 Cr. Turnover &Pmlits of 893 Cr. in 2018-19
• It has joined hands with Allianz to provide the Indian consumers with a distinct

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• option in terms of life insurance products.
As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Autohas the following to
offer:
• Financial strength and stability to support the Insurance Business.
• A strong bond-equity.
• A good market reputation as a world class organization.
• An extensive distribution network.
• Adequate experience of running a large organization
History and Development of Bajaj Allianz
Henry Little would hardy recognize the insurance company he started in 1986 as North
American casualty. Henry’s dream grew to become Allianz Life Insurance company of North
America (Allianz Life) after being acquired by Allianz AG of Munich, Germany in 1979, and
become a company of Allianz AG. Later Allianz AG is merged with Bajaj Auto Limited of India,
which is the flagship company of the Rs. 8000 crore and which is the largest manufacturer of
two-wheeler and three-wheelers in India and one of the largest in the world. Allianz AG is now
one of the largest integrated financial services organizations with operations in 70 countries
around the Globe.
In June 2008, Bajaj Allianz entered into partnership with Thomas Cook India to provide
travel finance. Bajaj Allianz Life Insurance ensures excellent insurance and investment solutions
by offering customized products, supported by the best technology.
Bajaj Allianz life insurance offers low cost insurance plans which are specially designed
to provide complete protection & financial stability to in case of any unforeseen events. Bajaj
Allianz Life Insurance has a strong life insurance product portfolio ranging from ULIPs to Term
insurance, Child plans to Retirement plans, Group life insurance to investment plans etc. The
Company began its operations in 2001 and today has a pan-India presence with 722* branches.

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Date of Incorporation 12 March 2001
Started Operations on 3 August

Pune, India
Head Office
Brand Statement JiyoBefikar

Chairman Mr. Sanjiv Bajaj
MD & CEO Mr. AnujAgarwal
Total Asset Under Management 36,961 crore
Solvency Ratio 708.9%*
C1aim settlement Ratio 93.12%*
Total no. of offices 911 *

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Latest Awards Won 1. ‘Skoch Renaissance Award 2018’, in the

Platinum Category at the Corporate Leadership
and Corporate Citizenship Awards
2.’Best Insurance Company in Private Sector
Award 2018’ by IPE Banking
Financial Services and Insurance
Total Assets 53,64,456 crores
Employees 30
Website www.bajaallianz.co.in
Mission of the company:
Company wants to make every person get benefited through investing in Bajaj Allianz
Life Insurance. The Company is focusing on improving employee productivity, policy
persistency. operational processes and service levels.
Vision of the Company
1) To be the first choice insurer for customers.

2) To be the preferred employer for staff in Insurance industry.
3) To be the number one insurer for creating shareholder value
4) To aspire to be a world class organization.
5) Encourage organizational transparency.
6) To value integrity.
“To be the BEST Life Insurance Company, To Buy From, Work For& Invest In”
Objectives of Bajaj Allianz LIC limited:

Shivamogga district
The following are the important objectives of Bajaj Allianz Ltd:

1. To spread life insurance widely and in particular to the rural areas and to the socially and
economically backward classes with a view to reaching all insurable persons in the
country and providing them adequate financial cover against death at a reasonable cost.
2. To maximisemobilisation of people’s savings by making insurance linked savings
adequately attractive.
3. Bear in mind, in the investment of funds, the primary obligation to its policyholders,
whose money it holds in trust, without losing right of the interest of the community as a
whole; the funds to be deployed to the best advantages of the investors as well as the
community as a whole, keeping in view national priorities and obligations of attractive
return.
4. Conduct business with economy and with full realisation that the money belong to the
policy holders.
5. Act as trustee of the individual public in their individual and collective capabilities.
6. Meet the various life insurance needs of the community that arise in the changing social
and economic environment.
7. involve all the people working in the corporation to the best of their capability in
furthering the interest of the insured public by providing efficient service with country.
8. Promote amongst all agents and employees of the corporation a sense of participation,
pride and ob satisfaction through discharge of their duties with deduct towards achievement
of the corporate objectives.
Functions:
1. Obtaining detailed information of the clients business and risk management philosophy
2. Rendering advice and appropriate insurance could and terms.
3. Maintaining detailed knowledge of insurance markets as may be applicable.
4. Submitting quotation received from insures for consideration of a clients.
5. Providing requisites underwriting information as required by an insurer in assessing the
risk to decide price in terms and conditions for losses.
6. Providing services related to insurance consultancy and risk management

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7. Assisting in the negotiation of the clients.

8. Maintaining proper records of the clients.
9. Given instructions from clients and providing him written acknowledgement and progress
report.
BOARD OF DIRECTORS:
1. Mr. Rahul Bajaj (Chairman)
2. Dr. Werner Zedelius
3. Mr.SanjayAsher
4. Mr.Niraj Bajaj
5. Mr.SanjivBajaj
6. Mr. Heinz Dollberg
7. Mr. Ranjit Gupta
8. Mr.S. H. Khan
9. Mr.Suraj Mehta
10. Mr. DietmarRaich
11. Mr. ManuTandon
12. Mr. Kami
13. eshGoyal MD & CEO(Alternate Director to Dr. Werner Zedelius)
14. Mr. Rajesh Vishwanath CFO
15. Sanjay Vishwanathan- marketing head
16. Shashi Krishnan- ClO
Shimoga Branch Profile:

Shivamogga district
Shimoga city is one of the important structures of insurance industry. The branch was
opened on 1.4.2004 and started its functioning at M.G Palace, 1st floor Nehru Road, under the
branch manager of Mr. shantilal and since then it has been running business successfully.
The branch started its operation with only 48 members including a branch manager. Then
there was no proper ventilation systems and separated cabins. All the works were going very
simple. Within a half year, it got progress by spreading its popularity to all local cities and within
Shimoga city also. Now, within a span of two years it has become one of the leading insurance
companies in Shimoga city.
The central office of Bajaj Allianz Insurance Company Limited is at Pune and the South
Central Office is at Banglore which is having control of 12 branches all over Karnataka including
its main branch of Banglore. The Shimoga branch is technically known as Shimoga Satellite
Branch.
With it day to day expansion the needs of proper working conditions were also increased.
To overcome this problem, it has opened a separate office at 1st floor of M.G Palace itself
exclusively for staff for handling customer grievances.
Branch Structure
Branch Manager
Business Development Manager ( B.D.M )
Assistant Business Development Manager ( A.B.D.M )
Insurance Sales Officer ( ISO)
Products of Bajaj Allianz Life Insurance Company Limited

1) Term Insurance

Shivamogga district
Term insurance is the purest form of insurance. The policy will be in force for a particular
term (say 30 years or up to the age of 75) and then comes to an end. During the time the term
policy is in force, the insured pays a fixed premium to theinsurance company at regular intervals.
This is called premium, and if during this time the insured dies, the insurance company pays a
guaranteed amount of money, known as sum assured, to the nominee of the insured. Term
insurance is a life insurance which provides coverage for the policy term decided between the
policy holder and insurer at the onset of the policy.
a) iSecure
life comes with risks and unforeseen incidents that can put family’s financial security in
jeopardy. Bajaj Allianz iSecure Insurance Plan; a level cover term assurance plan that secures a
family’s financial needs by giving you a level term cover for high sum assured, but at a low cost.
The policy cover will terminate immediately on death of the life assured. The death benefit is
payable on death of each life, provided the policy is in-force. The benefit payable will be Sum
Assured.
2) Retirement plan:
There is a Guaranteed vesting benefit and guaranteed death benefit to the insured. The insured
have the option to select regular, limited or single benefit plan and also option to change the
premium payment term. The plan has the flexibility to pay top-up premium. On the death of the
life assured before the vesting date, the death benefit is payable to the nominee will be higher of
the total fund value as on the date of receipt of intimation of the death, or guaranteed death
benefit. The nominee can Use the entire or part of the death benefit proceeds to purchase an
annuity from us at the then prevailing annuity rates.
3) ULIP- Unit Link Insurance Plan
Unit Linked Insurance Plan (ULIPs) is insurance plans combined with the features of mutual
fund. The premium paid by policyholders is held in a corpus which is then invested in stocks and
shares of different companies operating at capital market. The total market of corpus invested is
divided by the number of securities purchased give the Net Asset Value (NAV) which is the price
of one unit of the fund. ULIPs promises good returns linked to the market and also insurance
coverage. Different types of ULIPs are:

Shivamogga district
a) Future Gain
The Future Gains insurance plan offered by Bajaj Allianz is a unit linked plan that offers
policyholders the opportunity to create wealth for the future. It does so by taking the premiums
payed and investing them in the equity and debt markets. It also come sporting features like
flexible premium payment options, choice of various funds, a choice in risk levels to suit each
investor’s appetite for risk and much more. It also provides you with the double benefits of a
chance to grow wealth while enjoying the protection provided by a life insurance policy. Bajaj
Allianz Future Gain provides the policy holder with two portfolio strategies, which can be
chosen at the inception of the policy or on any subsequent policy anniversary.
• Investor Selectable Portfolio Strategy

• Wheel of Life Portfolio Strategy.
Investor Selectable Portfolio Strategy - If the policyholder want to allocate the premiums
based on his! her personal choice and decision, the policyholder can opt for this strategy and
choose from among the seven (7) funds below to suit his! her investment needs.
Wheel of Life Portfolio Strategy - provides the policyholder with a ‘Years to maturity” based
portfolio management. Under this strategy, on each policy anniversary, fund value among various
funds (as per the below table) in the proportion based on the outstanding years to maturity are
allocated! reallocated.
The maturity benefit will be the regular premium fund value plus top up premium fund value as
on the maturity date, provided the policy is in-force.
b) Fortune Gain
The linked insurance products do not offer any liquidity during the first five years of the contract.
The policy holder will not be able to surrender/withdraw the money invested in linked insurance
products completely or partially till the end of the fifth year.
4) Non-linked whole Endowment plan

Shivamogga district
A unique plan that provide income & protection till your 100 birthday so that you can live worry-
free for a lifetime. The key features are Cash Bonus starts from the end of 6th year. There is a
guaranteed Cash Back starting from the end of Premium Payment Term. It gives Life cover up to
the age of 100 years. It guaranteed Death Benefit of up to 300% of Sum Assured depending on
the PPT chosen. It has the Option to take policy benefit in monthly installments. It has more
attractive rates for female lives and it has the Option to enhance coverage with rider benefits.
a) Elite Assure:
A traditional savings plan that offers the most attractive return while protecting your family. It is
a Perfect balance of life cover and great return on investment for you. Accrued Guaranteed
Loyalty Additions of up to 315% of Guaranteed Maturity Benefit, depending on the premium
payment term chosen. It hasthe Choice of 4 policy terms 15, 20, 25 and 30 years. It has the
Option of regular and limited premium payment term and Option to enhance your coverage with
rider benefits
b) Invest Assure:
A plan that gives insured an assured protection with financial benefits.
It gives the option to choose I .25 times or 2 times of Sum Assured as life cover.
It has Compound reversionary bonus and terminal bonus.
It have a Limited premium payment term. it has the option to take policy benefit in
monthly instalments. It gives more value for money with high sum assured rebate and attractive
premium rates for female life insured. It has the option to enhance coverage with raider benefits.
5) Child Insurance Plan
Child plans are regular life insurance policies designed in such a way that they meet the
needs of children financially as and when it arises. The most important benefit in child plan is
that even if the parent were to meet with an unfortunate event the child’s needs would still be
taken care of. Not only does the child plan offer a lump-sum payment on the death of the

Shivamogga district
policyholder, but it also waives of all future premiums and the insurance company continues
investing this money on behalf of the policyholder.
Bajaj Allianz Life Insurance Child Plans are designed to ensure that they suit all basic
requirements for child’s future. It has multiple premium payment and policy terms options,
Guaranteed Maturity Benefit, cash installment option, inbuilt Total Disability Benefit and much
more. At Bajaj Allianz life insurance believe in helping to build a robust child plan for a child’s
secured future.
a) Bajaj Allianz Young Assure:
Bajaj Allianz Young Assure is a traditional participating regular and limited premium
payment endowment plan to ensure a bright future for the loved ones. The key advantages of this
plan are: Multiple premium payment and policy term options to ensure that money is available to
you during crucial years like child’s education, marriage, etcIt gives Guaranteed Maturity Benefit
(GMB), Guaranteed Additions (GA) and bonuses to ensure a good return. The Maturity Benefit
is Guaranteed Maturity Benefit(GMB) plus Guaranteed Additions (GA) plus Vested Bonus (VB)
plus Interim Bonus(TB), if any, plus Terminal Bonus (TB), if any. At the end of the policy term.
The Maturity Benefit will be payable.
b) Young Assure Pius solution
An innovative solution for building a child education corpus. This Solution is a

combination of two policies of Bajaj Allianz. Young Assure (UIN: 116N128V01), a traditional
participating regular and limited premium payment endowment plan with different policy terms,
premium payment terms and/or cash instalment options.
6) Saving plans (endowment plan)
Any investment in which individual contributes money on a regular basis in order to reach
a financial goal whether short or long term goals is usually termed as savings plan. Large or
small income group everyone should have a sufficient back up of good savings plan to achieve
the desired things they want in life.
a) Save Assure

Shivamogga district
A traditional endowment plan that not only secures insured and his family but also
guarantees 115% of your sum assured. Living worry free is now guaranteed.
Guaranteed maturity/death benefit of 115% of the sum assured. Choice of 2 policy terms,
15 and 17 years. Premium Payment Term of 10 and 12 years. Option to take policy benefit in
monthly instalments over a period of 5 or 10 years. More value for money with high Sum
Assured rebate on premium. Option to enhance your coverage with rider benefits.
b) Guarantee Assure:
Bajaj Allianz Guarantee Assure - a non-linked, non-participating, individual limited

premium endowment plan that helps to live a worry free life. Fixed premium payment term of 5
years.Choice of 3 policy terms - 7, 8 and 9 years.Guaranteed Addition of up to 63% of Sum
Assured on Maturity.Ensures more value for money with high sum assured rebate. Attractive
premium rates for female lives. Option to take policy benefit in monthly installments over a
period of 5 or 10 years.
c) Super Life Assure:
A plan that provides the twin benefit of comprehensive protection & compulsory
savings for the targeted financial goals. It also offers an option to select a unique feature -
Income Benefit which will help insured family maintain their standard of living incase anything
unfortunate happens. Insured can ensure a secured future for the loved ones with this Bajaj
Allianz Life Super Life Assure is a non-linked, participating, regular premium payment
endowment plan.
Newly introduced plans
1) New Family Gain
The thumb rule for buying insurance is that your insurance needs are minimal in the
early earning years, increases with added responsibilities(Marriage, children, loans etc.) and
taper off by the time you retire. It is difficult to find a single insurance plan that can take care of
all the changing requirements in life additional protection, more money to invest, sudden
requirement of cash or a steady post-retirement income. With Bajaj Allianz New Family Gain,

Shivamogga district
insured can invest in one life insurance plan that can take care of all the changing requirements.
This plan has been designed to provide with maximum flexibility, so that insured do not have to
worry about their changing needs. The Bajaj Allianz New Family Gain comes with a host of
features to allow to have the best of all worlds - Protection and Investments. It enables every
participant to create a solid financial protection and savings plan for himself and his family. In
this way, as a participant in the Bajaj Allianz New Family Gain Plan, insured can secure your
well-being and accumulate savings towards financial independence and a comfortable
retirement.
2) NEW UNIT GAIN
This product is similar to New Family Gain but in this product the minimum premium
that is to be paid is Rs. 10, 000 and there is no limit for maximum premium. The Sum assured is
five times the premium amount. Both these products (New Family Gain and New Unit Gain)
were started from Pt July 2006.
3) PENSION GUARANTEE
His date of retirement is closing in. He want something that gives him an assured income
long after he retired. Bajaj Allianz Life Insurance are aware of this need, and have come up with
a plan that lasts he for a lifetime. Invest her savings in the Bajaj Allianz Pension Guarantee, a
plan that gives he a guaranteed income, till her time comes. The “Bajaj Allianz Pension
Guarantee” Plan With Bajaj Allianz Pension Guarantee, he can ensure a regular income after
retirement. The plan offers he a range of immediate annuities to choose from.
1) PENSIONGUARANTEE
His date of retirement is closing in. He want something that gives him an assured income
long after he retired. Bajaj Allianz Life Insurance are aware of this need, and have come up with
a plan that lasts he for a lifetime. Invest her savings in the Bajaj Allianz Pension Guarantee, a

Shivamogga district
plan that gives guaranteed income ,till her time comes. The―Bajaj Allianz Pension Guarantee‖
Plan With Bajaj Allianz Pension Guarantee, he can ensure a regular income after retirement. The
plan offers he range of immediate annuities to choose from.
Awards and Achievements.
CITRIX DIGITAL TRANSFORMATION

E4M PRIME TIME AWARDS 2019
AWARDS 2019
9TH BFSI SMART TECH LEADERSHIP BRANDZ TOP 75 MOST VALUABLE

AWARDS 2019 INDIAN BRANDS 2019

Shivamogga district
IDC INSIGHTS AWARDS 2018 53RD SKOCH SUMMIT AND AWARDS 2018
SKOCH INCLUSION AWARD FOR MICRO CUSTOMER LOYALTY & EXPERIENCE

INSURANCE 2018 AWARDS 2018
“Best Risk Management Initiative – Life “Achromic Point Anti – Fraud Award”-2022
Insurance”-2022
‘Marketing Campaign during Covid 19 Domestic Life Insurer Of The Year -

Shivamogga district
2020-21 India, Insurance Initiative of the year - India

for Smart Assist and Marketing Initiative Of
The Year - India for Plank challenge -2021
Best Social Media Brands Award 2020 'Best ULIP of the Year'-2020
CHAPTER-4
ANALYSIS AND INTERPRETATION OF
SURVEY DATA

Shivamogga district
CHAPTER 4
ANALYSIS AND INTERPRETATION OF DATA
In the last chapters introductory information growth and development of Life Insurance
business in India, profile of Bajaj Allianz ltd & trend of its life insurance business have been
presented, This chapter concerns itself with analysis and interpretation of data collected from
policy holders. 100 policy holders of company’s Shimoga branch were selected on convenience
sampling basis to elicit their opinions regarding life insurance business of the company. The data
collected has been analyzed & interpreted using simple statistical tools. The details of analysis &
interpretation is given below:

Shivamogga district
Table-I : Table showing the classification of respondents on the basis of their

group.
Age Group No of Respondents Percentage

Below 25 35 35%
25 to 30 18 18%
30 to 35 11 11%
35 and above 35 35%
Total 100 100
Source: survey data

Shivamogga district
35%
35%
35%
30%
25%
20%
18%
15%
10% 11%
5%
0%
Below 25
25 to 30
30 to 35
35 and above
Graph No : 1
Interpretation
From the above table shows that among 100 respondents 36% responds are belong to the age
group of below 25, 35% respondents belong to the age group of 35 and above, 18% respondents
belong to the age group of 25 to 36, and 11% respondents belongs to the age group of 25 to 30,
and 11 % respondents belong to age group of 30 to 35. It is clear that majority of the customers
belong to the age group of below 35 years followed by others.
Table-2: Table showing the Distribution of Respondents according to their

qualification
Qualification No of Respondents Percentage

Under Graduate 13 13%
Graduate 47 47%
Post Graduate 17 17%
Other 23 23%
Total 100 100

Shivamogga district
Source: survey data
13%
23%
Under Graduate
Graduate
Post Graduate
Other
17%
47%
Graph No : 2
Interpretation :
The above table shows that among 100 respondents 47% respondents are graduates, 23%
respondents are others, 17% respondents are post graduates, and 13% respondents are graduates.
From this it is clear that majority of respondents are educated.
Table-3: Table showing the Distribution of customers according to their

Gender
Gender No of Respondents Percentage
Male 13 13%
Female 47 47%
Total 100 100
Source: survey

Shivamogga district
13%
Male
Female
47%
Graph No : 3
Interpretation:
From the above table it is clear that out of 100 respondents 59 respondents are male and the
remaining 41 respondents are female. It shows that majority of the respondents are male.
Table-4: Table showing the classification of respondents on the basis of their

marital status
Marital Status No of Respondents Percentage
Married 52 52%
Unmarried 48 48%
Total 100 100
Source: survey data

Shivamogga district
52%
52%
51%
50%
49%
48%
48%
47%
46%
45%
Married
Unmarried
Graph No : 4
Interpretation:
From the above we came to know that among 100 respondents 52% respondents are married and
only 48% respondents are unmarried. From this it is very clear that majority of the respondents
are married.
Table-5: Table showing the Distribution of respondents on the basis of their

occupation
Occupation No of Respondents Percentage

Business 27 27%
Profession 16 16%
Employee 34 34%
Household 8 8%
Agriculturist 7 7%
Others 8 8%

Shivamogga district
Total 100 100

Source: survey data
8%
7%
27%
8%
Business
Profession
Employee
Household
Agriculturist
Others
16%
34%
Graph No : 5
Interpretation:
From the above table it is clear that among 100 respondents, 34% respondents are employees,
27% respondents are business, 16% respondents are profession, 8% respondents are households
and others, 7% respondents are agriculturists. From this it is clear that majority of respondents
are employees.
Table-6: Table showing classification of respondents on the basis of their

annual income.
Annual Income No of Respondents Percentage

Below 50000 22 22%
50000 to 10000 35 35%
10000 to 1500000 29 29%
150000 to Above 14 14%
Total 100 100
Source: survey data

Shivamogga district
14%
22%
Below 50000
29% 50000 to 10000
10000 to 1500000
150000 to Above
35%
Graph No : 6
Interpretation:
The above table shows that out of 100 respondents,
35% respondents have annual income of 50000 to 100000, 29% respondents have annual income
of below 100000 to 150000, 22% respondents have annual income of below 50000, and 14%
respondents have annual income of 150000 and above. From this, we came to know that majority
of the respondents are having annual income of 50000 to 100000.
Table-7: Table showing the Distribution of respondents on the basis of policy

amount invested in Life Insurance Products.
Amount ( In Rupees) No of Respondents Percentage

Below 50000 22 22%
50000 to 10000 35 35%
10000 to 1500000 29 29%
150000 to Above 14 14%
Total 100 100
Source: survey data

Shivamogga district
35%
30%
25%
20%
15%
10%
5%
0%
Below 50000 50000 to 10000 10000 to 1500000 150000 to Above
Graph No : 7
Interpretation:
The table shows that among 100 respondents, 35% respondents who have invested in Life
Insurance products have annual income of 50000 to 100000, 29% respondents who have invested
in Life Insurance products have annual income of 100000 to 150000, 22% respondents who have
invested in Life Insurance products have annual income of below 50000, and 14% respondents
who have invested in Life Insurance products have annual income of 150000 and above. It is
clear from the table that more than 85% of the respondents have the policy amount less than Rs.
1,50,000.
Table-8: Table showing classification of respondents on the basis of the

necessity of the Life Insurance.
Necessary No of Respondents Percentage
Yes 97 97%
No 03 3%
Total 100 100
Source: survey data

Shivamogga district
100%
90%
80%
70%
60% 97% 3%
50%
40%
30%
20%
10%
0%
Yes No
Graph No : 8
Interpretation:
The above table shows that out of 100 respondents 97% respondents are of the opinion that life
insurance is necessary and only 3% respondents are of the opinion that life insurance is not
necessary. It depicts more than 95% of respondents have felt that life insurance is highly
necessary to secure future life.
Table-9: Table showing the Distribution of respondents on the basis of sources from which
they came to know about Bajaj Allianz Life Insurance.
Sources No of Respondents Percentage

TV Advertisement 15 15%
Agents 42 42%
Friends / Relatives 29 29%
Other Sources 14 14%
Total 100 100
Source: survey data

Shivamogga district
45%
42%
40%
35%
30% 29%
25%
20%
15% 14%
15%
10%
5%
0%
TV Advertisement Agents Friends / Relatives Other Sources
Graph No : 9
Interpretation:
The table shows that among 100 respondents, 42% respondents came to know about
Bajaj Allianz Life Insurance through Agents, 29% respondents came to know about Bajaj Allianz
Life Insurance though Friends/Relatives, 15% respondents came to know about Bajaj Allianz
Life Insurance through TV/Newspaper, 14% respondents came to know about Bajaj Allianz Life
Insurance through Other sources. More than 70% of the respondents come to know about Bajaj
Allianz life insurance through agents and friends/relatives., only 15% have come to know
through TV advertisements.
Table-10: Table showing the Distribution of respondents on the basis of

benefits in investing in Bajaj Allianz.
Benefits No of Respondents Percentage

Tax Benefits 38 38%
Family Provision 29 29%
Life Security 15 15%
Financial Security 18 18%
Total 100 100
Source: survey data

Shivamogga district
45%
42%
40%
35%
30% 29%
25%
20%
15% 14%
15%
10%
5%
0%
TV Advertisement Agents Friends / Relatives Other Sources
Graph No : 10
Interpretation:
The table shows that among 100 respondents, 42% respondents came to know about Bajaj
Allianz Life Insurance through Agents, 29% respondents came to know about Bajaj Allianz Life
Insurance though Friends/Relatives, 15% respondents came to know about Bajaj Allianz Life
Insurance through TV/Newspaper, 14% respondents came to know about Bajaj Allianz Life
Insurance through Other sources. More than 70% of the respondents come to know about Bajaj
Allianz life insurance through agents and friends/relatives., only 15% have come to know
through TV advertisements.
Table-11 Table showing the Distribution of respondents on the basis of benefits

in investing in Bajaj Allianz.
Benefits No of Respondents Percentage

Tax Benefits 38 38%
Family Provision 29 29%
Life Security 15 15%
Financial Security 18 18%
Total 100 100
Source: survey data

Shivamogga district
40% 38%
35%
30% 29%
25%
20%
15% 15% 18%
10%
5%
0%
Tax Benefits
Family Provision
Life Security
Financial Security
Graph No : 11
Interpretation:
The above table shows that among 100 respondents, 38% respondents invested for Tax Benefits,
29% respondents invested for Family Provisions, 18% respondents invested for Financial
Security, and 15% respondents invested for Life security. Majority of the respondents have gone
for Bajaj Allianz life insurance for tax benefits and different types of polices helping family
requirement.
Table-1l: Table showing the Distribution of respondents on the basis of their investment in
Type of Life Insurance Product
Product No of Respondents Percentage

Endowment Policy 12 12%
Whole Life Policy 15 15%
ULIP 20 20%
Pension Policy 21 21%
Term Insurance Policy 22 22%
NLIP 10 10%
Total 100 100

Shivamogga district
Source: survey data
10% 12%
15% Endowment Policy

22%
Whole Life Policy
ULIP
Pension Policy
Term Insurance Policy
NLIP
20%
21%
Graph No : 11
Interpretation:
The table shows that among 100 respondents, 22% respondents chosen to invest in Term
Insurance Policy, 21% respondents invested in Pension Policy, 20% respondents invested in Unit
Linked Investment Policy, 15% respondents invested in Whole Life Policy,12% respondents
invested in Endowment Policy, and 10% respondents invested in Non Linked Investment Policy.
This shows that majority of respondents have chosen to invest in Term Insurance Policy.
Table-12: Table showing the Distribution of respondents on the basis of the type of policy
purchased.
Policy No of Respondents Percentage
With Profit Policy 54 54%
Without Profit Policy 46 46%
Total 100 100
Source: survey data

Shivamogga district
46%
With Profit Policy
Without Profit Policy
54%
Graph No : 12
Interpretation:
The above table shows that, among 100 respondents, 54% respondents have chosen with profit
Policy, and 46% respondents have chosen Without Profit Policy. This show that majority of the
respondents have invested in With Profit Policy.
Table-13: Table showing the Distribution of respondents on the basis of their period of
paying premium.
Period No of Respondents Percentage

Monthly 11 11%
Quarterly 10 10%
Half Yearly 54 54%
Yearly 25 25%
Total 100 100
Source: survey data

Shivamogga district
60% 54%
50%
40%
25%
30%
20%
11% 10%
10%
0%
Monthly Quarterly Half Yearly Yearly
Graph No : 13
Interpretation:
The table shows that among 100 respondents, 54% respondents are paying premium on half
yearly basis, 25% respondents are paying premium on yearly basis, 11% respondents are paying
premium on monthly basis, and 10% respondents are paying premium quarterly. This shows that,
majority of respondents are paying premiums on half yearly basis.
Table-15: Table Showing the distribution of respondents on the basis of satisfaction

towards returns.
Response No of Respondents Percentage
Satisfied 98 98%
Dissatisfied 02 02%
Total 100 100

Shivamogga district
Source: survey data
98%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% 2%
Satisfied
Dissatisfied
Graph No : 15
Interpretation:
The table shows that, among 100 respondents, 98% respondents are satisfied with the returns
given by Bajaj Allianz Life Insurance on its products and only 2% respondents are dissatisfied
with the returns given by Bajaj Allianz Life Insurance on its products. Therefore it is clear that
majority of the respondents are satisfied with the returns given by Bajaj Allianz on its products.
Table-16: Table showing the Distribution of respondents on the basis of satisfaction

towards Survival benefits
Satisfied 99 99%
Dissatisfied 01 01%
Total 100 100

Shivamogga district
Source: survey data
1%
Satisfied
Dissatisfied
99%
Graph No : 16
Interpretation:
The table shows that, among 100 respondents, 99% respondents are satisfied with the
Survival benefits given by Bajaj Allianz Life Insurance on its products and only 1% respondents
are dissatisfied with the Survival given by Bajaj Allianz Life Insurance on its products. Therefore
it is clear that majority of the respondents are satisfied with the Survival benefits given by Bajaj
Allianz on its products.
Table-17: Table showing the Distribution of respondents on the basis of level

of payment of premium.
Premium No of Respondents Percentage
Policies with low 90 90%

premium
Policies with high 10 10%
Premium
Total 100 100
Shivamogga district
Source: survey data
10%
Policies with low premium

Policies with high Premium
90%
Interpretation:
The table shows that, among 100 respondents, 90% respondents have chosen to pay high level of
premium and 10% respondents have chosen to pay low level of premium. Therefore it is clear
that majority of the respondents have chosen to pay high level of premium.
Table-18: Table showing the Distribution of respondents on the basis of satisfaction

towards Death benefits
Satisfied 99 99%
Dissatisfied 01 01%
Total 100 100
Source: survey data

Shivamogga district
99%
100%
90%
80%
70%
60%
50%
40%
30%
20%
1%
10%
0%
Satisfied Dissatisfied
Graph No : 18
Interpretation:
The table shows that, among 100 respondents, 100 respondents are satisfied with the death
benefits given by Bajaj Allianz Life Insurance on its products and 00% respondents are
dissatisfied with the Death benefits given by Bajaj Allianz Life Insurance on its products.
Therefore it is clear that the respondents are satisfied with the Survival benefits given by Bajaj
Allianz on its products.
Table-19: Distribution of respondents on the basis of their towards interest charged for the
delayed payment of premium
Opinion Respondents Percentage
Very High 04 04%
High 10 10%
Moderate 86 86%
Total 100 100%
Source: survey data

Shivamogga district
4%
10%
Very High
High
Moderate
4th Qtr
86%
Graph No : 19
Interpretation:
The above table shows that, among 100 respondents, 63% respondents are satisfied
towards the interest charged towards the delayed payment of premium, 23% of respondents are
of the opinion moderate, 10% respondents are of the opinion high, and 4% respondents are of the
opinion very high. Majority of the respondents are of the opinion that interest charged on delayed
payment is moderate.
Table-20: Table showing the Classification of respondents on the basis of their opinion
towards Endowment Policies.
Extremely Good 20 20%
Good 60 60%
Average 18 18%
Not up to the mark 02 02%
Total 100 100%

Shivamogga district
60%
60%
50%
40%
30%
20%
20% 18%
10%
0% 2%
Extremely Good
Good
Average
Not up to the mark
Graph No : 20
Interpretation:
From the above table it is clear that out of 100 respondents, 60% respondents are of the opinion
good towards endowment policies, 20% of the respondents are of the opinion extremely good,
18% respondents are of the opinion average, and only 02% respondents are of the opinion not up
to the mark towards endowment policies. From this it clearly tells that majority of the
respondents feel good about the endowment policies.
towards Whole life Policies
Good 52 52%
Average 42 42%
Total 100 100%

Shivamogga district
Source: survey data
60%
50%
40%
30% 52%
42%
20%
10%
4% 2%
0%
Extremely Good Good Average Not up to the mark
Graph No : 21
Interpretation:
From the above table it is clear that out of 100 respondents, 52% respondents feel good
about endowment policies, 42% of the respondents feel average, 04% respondents feel extremely
good, and only 02% respondents feel not up to the mark about endowment policies. From this it
clearly tells that majority of the respondents feel good about the endowment policies.
towards ULIP Policies

Good 06 66%
Average 18 18%
Total 100 100%
Source: survey data

Shivamogga district
18% 2%
14%
Extremely Good
Good
Average
Not up to the mark
66%
Graph No : 22
Interpretation:
about ULIP policies, 18% of the respondents feel average, 14% respondents feel extremely good,
and only 02% respondents feel not up to the mark about ULIP policies. From this it clearly tells
that majority of the respondents feel good about the ULIP policies.
towards pension Policy

Good 54 54%
Average 26 26%
Total 100 100%
Source: survey data

Shivamogga district
60% 54%
50%
40%
30% 26%
18%
20%
10%
2%
0%
Graph No : 23
Interpretation:
good about pension policies, 26% of the respondents are of the opinion average, 18%
respondents are of the opinion extremely good, and only 02% respondents are of the opinion not
up to the mark about pension policies. From this it clearly tells that majority of the respondents
are of the opinion good about the pension policies.
towards Non linked endowment policy

Good 60 60%
Average 18 18%
Total 100 100%
Source: survey data

Shivamogga district
60%
50%
40%
60%
30%
20%
20% 18%
10%
2%
0%
Graph No : 24
Interpretation:
about Non linked endowment policy, 20% of the respondents feel average, 18% respondents feel
extremely good, and only 02% respondents feel not up to the mark about Non linked endowment
policy. From this it clearly tells that majority of the respondents feel good about the Non linked
endowment policy.
towards mutual funds

Good 58 58%
Average 22 22%
Total 100 100%
Source: survey data

Shivamogga district
70%
60% 58%
50%
40%
30%
22%
20% 18%
10%
2%
0%
Graph No : 25
Interpretation:
good about Mutual funds, 22% of the respondents are of the opinion average, 18% respondents
are of the opinion extremely good, and only 02% respondents are of the opinion not up to the
mark about Mutual funds. From this it clearly tells that majority of the respondents are of the
opinion good about the Mutual funds.
towards Term Assurance Plans

Good 52 52%
Average 30 30%
Total 100 100%
Source: survey data

Shivamogga district
6%
12%
Extremely Good
Good
Average
30%
Not up to the mark
52%
Graph No : 26
Interpretation:
that Bajaj Allianz Life Insurance’s term assurance plans are good, 30% of the respondents are of
the opinion average, 12% respondents are of the opinion not up to the mark, and only 06%
respondents are of the opinion extremely good about term assurance plans. From this it clearly
tells that majority of the respondents are of the opinion good about the term assurance plans.
Table-27: Table showing the Classification of respondents on the basis of their necessity of
children’s policies
Necessary No of Respondents Percentage
Yes 56 56%
No 44 44%
Total 100 100
Source: survey data

Shivamogga district
Figure: 27
60%
50%
40%
56%
30%
44%
20%
10%
0%
Yes No
Graph No : 27
Interpretation:
The above table shows that out of 100 respondents 56% respondents are of the opinion that
Children’s policy is necessary and 44% respondents are of the opinion that Children’s policy is
not necessary. From this we came to know that majority of the respondents are of the opinion
that Children’s policy is necessary.
Table -28: Table Showing the classification of respondents on the basis of the benfits of
investment in Children’s Plan.
Benefits Respondents Percentage
Education 28 60%
Marriage 12 21%
Career 10 18%
Risk Cover 6 11%
Total 56 100%
Source: survey data

Shivamogga district
11%
18%
Education
Marriage
Career
60% Risk Cover
21%
Graph No : 28
Interpretation:
The table shows that among 56 respondents, 50% respondents chosen to invest in children’s plan
for education, 21% respondents invested for marriage, 18% respondents invested for career, and
11% respondents invested for risk cover. This shows that majority of respondents have chosen to
invest in Children’s plan for education.
Table-29: Table showing the Classification of respondents on the basis of rating for service
of agents & office staff
Rating Respondents Percentage
Good 50 50%
Average 10 10%
Total 100 100%
Source: survey data
Figure: 29

Shivamogga district
50%
50%
45% 40%
40%
35%
30%
25%
20%
15% 10%
10%
5% 0%
0%
Interpretation:
From the above table it is clear that out of 100 respondents, 50% respondents feel good about
Service of agents & office staff, 40% of the respondents feel extremely good, 10% respondents
feel satisfactory, and 00% respondents feel not up to the mark about Service of agents & office
staff. From this it clearly tells that majority of the respondents feel good about the Service of
agents & office staff.
CHAPTER-5
SUMMARY OF FINDINGS, SUGGESTIONS,

Shivamogga district
CONCLUSION
CHAPTER-5
SUMMARY OF FINDINGS, SUGGESTION AND
CONCLUSION
Introduction:
In the last chapter trends of co; business & the opinions of customers of the co; have been
analysed & interpreted to assess the efficiency & effectiveness of the co; in operating its
insurance business .This chapter presents summary of findings of the study. It also presents
suggestions made in the light of the findings for the enhancement of effectiveness in the business
of the co; so as to enhance its profitability.
A formal conclusion has also been presented in this chapter.

Shivamogga district
Findings
1. Except in the year 2014-15 there was increase in the life insurance business. However
there was a decline in the business in the year 2015-16 mainly because of the competition
from the other companies. The growth rates show that there are fluctuations in the growth
of the business. The growth rates have considerably come down in the years 2016-17
(2%) and 2017-18 (2%), when compare to 2018-19 (15%).
2. Most of the respondents fall under the age group of 35 years
3. The respondents are more or less evenly distributed as far as gender & marital status are
concerned.
4. Most of the respondents are educated
5. Most of the respondents are businessmen and professionals.
6. More than 95% of respondents have felt that life insurance is highly necessary to secure
future life.
7. More than 85% of respondents have policy amount less than 150000
Suggestions
1. It has been observed that the policy amounts are less than 1,50,000 in many cases. The
company should focus on increasing the policy amounts by motivating the customers. This needs
a proper training and motivation of agents.
2. It has been observed that most of the respondents have invested in policies mainly for tax
benefits and family requirement. Employees should be train to highlight other benefits present in
different types of policies to attract policyholders.
3. The company should invest more amount on advertising its policies only a few respondents
have reported that their awareness has been created through advertisement. Advertising is one of
the important solutions to outwit the competitors.

Shivamogga district
4. Although most of the respondents have opined that rate of interest charged on delayed
premium payment is moderate, yet there is dissatisfaction among few policy holder regarding the
rate of interest. The policy holders should be kept satisfied in all aspects for continuation of
policies till maturity. Therefore the company has to reduce rate of interest on delayed premium
payments.
5. Almost all the respondents are satisfied with the service of the staff. Yet it is necessary for the
company to train and motivate the employees for rendering better services to customers and to
have close interactions with customers
6. It has been observed that there was a decline in the business in the year 2016-17. Although in
other years under study there was increase in the business of life insurance, the growth rates are
are highly fluctuating. There was considerable decrease in the growth rate in the business in the
year 2017-18 and 2018-19. This is a matter of high concern. The company should focus on
introducing inevetive policies with greater benefits and should focus on product planning and
development rigorously. At the same time it should also focus o developing distinctive resource
capabilities.
8. More than 75% come to know about Bajaj Allianz life insurance through agents and
friends/relatives., only 15% have come to know through TV adversements.
9. Majority of the respondents have gone for Bajaj Allianz Insurance for tax benefits & different
types of policies helping family requirements.
10. Most of the respondents have purchased Life Insurance policies of Bajaj Allianz Ltd coming
under ULIP, provisions policies, term insurance policy. The % of policy holders having
endowment is considering less.
11. The respondents more or less evenly distributed as far as policies are concerned.
12. Almost all respondents are satisfied with bonus, survival & death returns on the policies of
the company

Shivamogga district
13. Majority of respondents 86% are interest charged on delayed payment is moderate.
14. It’s been observed that most of the respondents have expressed positive opinion regarding
different types of policies of the company.
15. More than 50% respondents have invested in children policy in addition to other policies &
most of them invested in this policy mainly for education and marriage of their children.
16. Almost all the respondents are very much satisfied with the services of agents and service of
staff of the company.
CONCLUSION
The survey results show that was increase in the business of the company in all the years under
study except in 2013-14 but the growth rates have recorded alarming fluctuations and they have
considerably decreased during the period of the study. This is not positive development for the
company. It is been observed that the main reason for this is the severe competition from other
players especially Life Insurance Corporation of India.
In order come out of this situation and to out compete the competitors the company has to think
in terms of investing more on product planning and development and advertising. The inevitive
policies with greater benefits satisfying the needs of different communities should be launched to
attract more and more policy holders. The company should process employees with distinctive

Shivamogga district
capabilities. So as to attract and convince the customers. Therefore the company should have
efficient and effective policies and practices for selection, training and development of human
resource. If the Bajaj Allianz Life Insurance Company Limited can place itself in a comfortable
position to come out of the present situation and to outwit the competitors.
QUESTIONNAIRE
Respected Sir/Madam,
I am BHOOMIKA T S. Final year MBA Kuvempu University Shankaraghatta .
On the topic entitled “Policyholder’s attitude towards Bajaj Alliaz Life insurance
Company Limited- A case study of its Shivamogga Branch” under the guidance of
Dr. Hiramani Naik N Conducting the survey on this regard I request you to kindly spare
your valuable time in filling this questionnaire and offer your suggestions. The
information collected will be used only for academic purpose.
Yours faithfully,
Bhoomika T S.
General information
1. Name. . . . . . . . . . . . . . . . . . . . .

Shivamogga district
2. Address. . . . . . . . . … . . . … . .
………………………………..
………………………………..
……………………………….
3. Age Group:
Below 25 [ ] 25 to 30 [ ]
30 to 35 [ ] 35 & above [ ]
4. Sex:
Male [ ] Female [ ]
5. Qualification:
Undergraduate [ ] Graduate [ ]
Post Graduate [ ] Others [ ]
6. Marital Status:
Married [ ] Unmarried [ ]
7. Occupation:
Business [ ] Profession [ ]
Employee [ ] Household [ ]
Labor [ ] Agriculturist [ ]
Others [ ]
8. Annual Income
Below 50000 [ ] 50000to 100000 [ ]
l00000tol50000 [ ] 150000& above [ ]
II. Specific Information
1. Do you think Life Insurance is necessary?

Shivamogga district
Yes [ ] No [ ]
2. If yes, have you invested in life insurance products of Bajaj Allianz LIC of India?
Yes [ ] No [ ]
3. If yes, specify the amount you have invested.

Below 50000 [ ] 50000tol00000 [ ]
l0000tol50000 [ ] l50000toabove [ ]
4. From how many years you are aware of Bajaj Allianz LIC?
Below 3 years [ ] 3 years to 5 years [ ]
5. How did you come to know about Bajaj Allianz LIC?
TV/News paper [ ] Agents [ ]

Friends/relatives [ ] Other sources [ ]
6. For which benefit you made an investment in life insurance products of Bajaj
Allianz LIC of India
Tax concession [ ] Family provision [ ]
Life security [ ] Financial security [ ]
7. Which type of life insurance products you have invested in?

Endowment policy [ ] Whole life policy [ ]
ULIP policy [ ] Pension policy [ ]
Term insurance policy [ ] NLIP policy [ ]
8. Please specify the amount of premium you are paying annually?
Below 5000 [ ] 5000 to 10000 [ ]
l0000 to50000 [ ] 50000 to above [ ]

Shivamogga district
9. By which mode you prefer to pay premium?

Single premium [ ] Regular premium [ ]
10. If you prefer to pay the premium by regular mode, please specify the period of
paying the premium
Monthly [ ] Quarterly [ ]
Half yearly [ ] Yearly [ ]
11. What type of policies you would like to purchase/purchased?

With profit policies [ ] without profit policy [ ]
12. If you to invest to invest in with profit policy, what benefits you derive?
a) Investor Selectable Portfolio Strategy [ ]
b) Wheel of life portfolio strategy [ ]
13. If you prefer to invest in without profit policy, what are the benefits you derive?
a) term cover for high sum assured, but at a low cost [ ]
b) Guaranteed maturity/death benefit of 115% of the sum assured [ ]
c) Option to take policy benefit in monthly installments [ ]
d) A plan that gives he a guaranteed income [ ]
14. Are you satisfied with the bonus that will be given on with profit policies by Bajaj
Allianz?
Yes [ ] No [ ]
15. If no, what are the reasons?

a) Mortality charge should not be deducted [ ]
b) Policy administration charge should be reduced [ ]

Shivamogga district
c) There should be no discontinuation charge [ ]

d) Others [ ]
16. Are you satisfied with the returns given by Bajaj Allianz on your investment in life
Insurance product?
Yes [ ] No [ ]
17. . If no what are the reasons?

a) Returns are moderate [ ]
b) Returns are low [ ]
c) Returns are too low [ ]
d) Others [ ]
18. Are you satisfied with the Survival benefit given by Bajaj Allianz on the life
insurance products?
Yes [ ] No [ ]
19. Are you satisfied with the death benefit given on the life insurance policies by the
Bajaj Allianz?
Yes [ ] No [ ]
20. Would you like to invest in which of the following policies of life insurance?
Policies having low premium payment [ ]
Policies having high premium payment [ ]
21. What is your opinion about interest charged for the delayed payments of premium?
Very high [ ] High [ ]
Satisfactory [ ] Moderate [ ]
22. Your opinion about Endowment policies.

Extremely good [ ] Good [ ]

Shivamogga district
Average [ ] Not up to the mark [ ]
23. Your opinion about whole life policies.

24. Your opinion about ULIP policies.

25. Your opinion about pension policies.

26. Your opinion about Non Linked Endowment Policies.

27. Your opinion about Bajaj Allianz mutual funds.
28. Your opinion about Term assurance plan of Baja] Allianz.

29. Did you invest in Children’s policies of Bajaj Allianz?

Yes [ ] No [ ]
30. For which benefit you have invested in children policies?

Education [ ] Marriage [ ]
Career [ ] Risk cover [ ]

Shivamogga district
31. How do you rate the service of agents & office staff of Bajaj Allianz Life Insurance
Satisfactory [ ] Not up to the mark [ ]
Any Suggestions :
_______________________________________________________________________
_______________________________________________________________________

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Policyholder’s attitude towards Bajaj Allianz Life insurance Company Limited- A case study of its

An entity which provides insurance is known as an insurer, insurance company, insurance

Institute Of Management Studies And Research Page 1

1.2 History and background of insurance in the world :

Institute Of Management Studies And Research Page 2

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Babylonian, Chinese, and Indian traders practiced methods of transferring or distributing

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These new insurance contracts allowed insurance to be separated from investment, a

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Institute Of Management Studies And Research Page 12

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1.3 History and background of insurance in India :

Insurance is represented in the form of policy. It is a contract in which an individual or a

Institute Of Management Studies And Research Page 14

History of Insurance – Overview

The writings suggest pooling of resources that could be re-distributed in times of

Establishment – Insurance Industry

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Nationalization of Insurance Business

General Insurance in India

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Solve Quant Question Bank for Insurance Exams here!

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1.4 History and background of insurance in Karnataka :

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Department general information

1.5 History and background of insurance in shimoga district :

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To ensure enhanced customer engagement, we have built an extensive distribution

With innovation and customer-centricity as our guiding values, we have transformed to

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“Insurance is a concept of insurance can be simply stated as a contract of indemnity or an

Institute Of Management Studies And Research Page 23

NEED FOR THE STUDY

STATEMENT OF RESEARCH PROBLEM:

Institute Of Management Studies And Research Page 24

OBJECTIVES OF THE STUDY:

1. To present growth and development of Life Insurance business in India.

SCOPE OF THE STUDY:

Institute Of Management Studies And Research Page 25

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THE BAJAJ ALLIANZ LIFE INSURANCE COMPANY

LIMITED - A COMPANY PROFILE

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• Property and Casualty Insurance

STRONG INDIAN BRAND- HAMARA BAJAJ:

• One of the largest 2 & 3 wheeler manufacturers in the world

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• option in terms of life insurance products.

History and Development of Bajaj Allianz

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Date of Incorporation 12 March 2001

Started Operations on 3 August

Brand Statement JiyoBefikar

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Latest Awards Won 1. ‘Skoch Renaissance Award 2018’, in the