“POSITIONING OF BHARTI AXA LIFE INSURANCE PRODUCTS IN NCR” SUMMER INTERNSHIP REPORT Submitted for the Partial Fulfillment of MBA Degree Of AMITY UNIVERSITY, UTTAR PRADESH In the FACULTY OF MANAGEMENT By AMARDEEP SINGH A0102107004 [pic] Under the supervision of Mr. Jitendra Kumar Lecturer AMITY BUSINESS SCHOOL AMITY UNIVERSITY, UTTAR PRADESH SECTOR 125, NOIDA – 201303, UTTAR PRADESH, INDIA 2008 ACKNOWLEDGEMENT The project title “POSITIONING BHARTI AXA LIFE INSURANCE PRODUCTS IN NCR” has been conducted by me during 5th of May 2008 and 4th of July 2008 at BHARTI AXA LIFE INSURANCE.
I have completed this project, based on the project research, under the guidance of Mr. Shekher Tiwari and Mr. Jitendra Kumar. I owe enormous intellectual debt towards my guides Mr. Shekher Tiwari and Mr. Jitendra Kumar, who have augmented my knowledge in the field of Finance and Marketing. They have helped me learn about the process and giving me valuable insight to complete this project. I would like to thank Mr. Shekher Tiwari for his guidance and enriching my thoughts in this field from different perspectives. I would like to thank all respondents without whose cooperation my project would nothing have been possible.
Last but not the least, I feel indebted to all those persons and organizations who/which have provided helped directly or indirectly in successful completion of this study. Amardeep Singh MBA E&L-2009 Amity Business School Amity University Noida CERTIFICATE This is to certify that Amardeep Singh of Master of Business Administration(E&L) , class of 2009 , Amity Business School , Amity University (Bearing AUUP Enroll. Number A0102107004, has undertaken the Summer Internship Training at BHARTI AXA LIFE INSURANCE, during 5th May 2008 and 4th July 2008.
He has worked under my guidance for the Project Title “POSITIONING BHARTI AXA LIFE INSURANCE PRODUCTS IN NCR”. He has also been guided by Mr. Shekher Tiwari (Agency Manager, BHARTI AXA LIFE INSURANCE) This project report is prepared in partial fulfillment of Master of Business Administration to be awarded by Amity University, Uttar Pradesh. To the best of my knowledge, this piece of work is original and no part of this report has been submitted by the student to any other Institute/University earlier. Mr. Jitendra Kumar Amity Business School Amity University
Noida CERTIFICATE This is to certify that Amardeep Singh of Master of Business Administration(E&L) , class of 2009 , Amity Business School , Amity University (Bearing AUUP Enroll. Number A0102107004, has undertaken the Summer Internship Training at BHARTI AXA LIFE INSURANCE, during 5th May 2008 and 4th July 2008. He has worked under my guidance for the Project Title POSITIONING BHARTI AXA LIFE INSURANCE PRODUCTS IN NCR”. He has also been guided by Mr. Jitendra Kumar, faculty of Amity Business School, Noida.
This project report is prepared in partial fulfillment of Master of Business Administration to be awarded by Amity University, Uttar Pradesh. To the best of my knowledge, this piece of work is original and no part of this report has been submitted by the student to any other Institute/University earlier. Mr. Shekher Tiwari Agency Manager BHARTI AXA LIFE INSURANCE Contents |Sr. No. |Particular | |1. |Executive Summary 8 | |2. Acknowledgement 2 | |3. |Introduction 9 | |4. |History of the Insurance 10 | |5. |About Bharti AXA Life Insurance 16 | |6. |Products of Bharti AXA 19 | |7. Objective of the Study 26 | |8. |Research Methodology 27 | |9. |Findings and Data Analysis 28 | |10. |Conclusion and Suggestions 49-50 | |11. |Limitations of the Study 52 | |12. SWOT Analysis 53 | |13. |Annexure | | |More Analysis 55 | | |Bibliography 74 | | |Questionnaire 75 | EXECUTIVE SUMMARY
Summer training for 8 weeks in MBA course and study contents of such as practical knowledge, it makes the student confident and introduce them about their hidden ability. An insurance company gives security and protection people in today life insurance should be compulsory because today there is no surety of life. During my tenure of training I deeply analyzed the thoughts of people about insurance. To find out the importance of insurance research is conducted in Bharti AXA Life Insurance Company which is among the largest private insurance company this study is concerned the main feature which influence the Insurer.
I have supported the report with some suggestion. For research data is collected from primary method and questionnaires method as well as sample size method. The objective was achieved through three-pronged efforts. The First objective of the study is to analyze the attitude of individuals towards insurance plans and preference to Bharti AXA Life. The Second objective is objective of individuals while purchasing insurance. The Third objective is to know the attitude of individuals towards risk bearing.
The Fourth objective is to know the awareness about Insurance Plans and their benefits and financial position of the customers. INTRODUCTION Today insurance industry is growing fast. After coming the private players this industry is becoming complex day to day and the competition is increasing very fast. Insurance is basically a risk-sharing device. The losses to assets resulting from natural climates (life, fire, flood, earthquake, accident etc) are meet-out of common pool contributes by large number of persons who are exposed to similar risk.
This contribution of money is used to pay the losses suffered by the unfortunate few. The basic principle is that the loss should occur as a result of a natural calamity or an unexpected event beyond human control and insured person should not making gains out of insurance. Service Industries are today facing a huge competition and the marketing in these industries is becoming very complex, so that this is extremely fruitful and enjoyable for a company and also for a research fellow to study marketing of insurance products INSURANCE 1. Insurance is the method of the spreading and transfer to risk. . Loss of the unfortunate few a shared by the fortunate many who are exposed to same or similar risk. 3. Loss of assets depriver the owner of the expected benefit. 4. Insurance is the content is a mechanism that helps to reduce the adverse consequences due to loss of assets. 5. Insurance is assurance and protects the human life. Why “INSURANCE” is so important Assets are likely to be destroyed or made non-functional due to accidental occurrences called perils. Assets can, therefore, be insured. A few examples or perils are: fire, flood, breakdowns, lightning, and earthquake.
Perils are the events. Risk is the consequential losses or damage. 1. The possibility of damage to asses caused by any period is the risk that is exposed to. 2. Risk means the possibility of loss or damage that may or may not happen. 3. It is because of the uncertainty about the risk that insurance become important. 4. No uncertainty implies any insurance. 5. Insurance does not protect the asset but only compensates the financial loss. 6. Basically insurance cover tangible asset but the concept can be extended to intangible also. 7.
The individual himself also needs financial security for the old age or man his becoming permanently disabled when his income will stop. The business of Life Insurance Company is to bring together persons who are exposed to similar risks collect contribution (premium) for them or an equitable basis and pay the losses (claim) to those who actually suffer. ABOUT INSURANCE The beginning of the insurance started to the city of London. It started with the marine business. Marine traders, who used to gather at Lloyd, are a coffee house in London, agreed to share losses to goods during transportation by ship.
Marine related losses include:- ? Loss of ship by sinking due to bad whether in high seas. ? Goods in transit by ship robbed by ship pirates. ? Loss of over damage to the goods in transit by ship due to bad whether in high seas. ? The first insurance polity was issued in England in 1583. THE GROWING YEARS OF LIFE INSURANCE The 19th century saw huge developments in the field of insurance, with newer products being devised to meet the growing needs of urbanization and industrialization. In 1835, the infamous New York fie drew people’s attention to the need to provide for sudden and large losses.
Two years later, Massachusetts became the first state of require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations. In the 19th century many societies were founded to insure the life and health of their members, while fraternal orders provided low-cost, members only insurance. Even today, such fraternal orders continue to provide insurance coverage to members as do most labor organizations.
Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies. LIFE INSURANCE IN INDIA In India, insurance started with the insurance. It was in the early 19th century when the Britishers on their postings in India felt the need of life insurance cover. It started with English companies like, The European and the Albert”. The first Indian Insurance Company was the Bombay Assurance Society Ltd. In 1870 other companies like: 1.
Hindustan Co-operative in Kolkata. 2. National Insurance in Kolkata. 3. Bombay Life in Mumbai. 4. New India in Mumbai 5. Jupiter in Mumbai 6. Lakshmi Insurance in New Delhi. It was during the swadeshi movement in the early 20th century that insurance witnessed a big boom in India with several more companies being setup. As these companies grew, the government began to exercise control on them. The Insurance Act was passed in 1912, followed by a detailed and amended insurance act of 1938 that looked into investments, expenditure and management of these companies’ funds.
By the mid 1950 there were around 170 insurance companies and 80 provident fund societies in the country life insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companies. As a result the government decided nationalizes the life assurance business in India. The Life Insurance Corporation of India was set up in 1956 to take over around 250 Life insurance companies. For years thereafter, insurance remained a monopoly of the public sector. It was only after seven years of deliberation and debate after the R. N.
Malhotra committee report of 1944 became the sector was finally opened up of the insurance sector to private players that the sector was finally opened up to private players in 2001. In 2000 have extensive powers to oversee the insurance business and regulate in a manner that will safeguard the interests of the insured. ABOUT US [pic] Bharti AXA Life Insurance Company Ltd. is a joint venture between AXA Asia Pacific Holdings Ltd (APH), a Fortune 100 company and Bharti Enterprises, one of India’s leading multi-business corporations. The joint venture company has a 74% stake from Bharti and 26% stake of AXA Asia Pacific Holdings Ltd (APH).
The company has positioned itself on the quality platform. In line with its vision to be a leader and the preferred company for financial protection and wealth management in India, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. The strategy is to establish itself as a trusted life insurance specialist through a quality approach to business. In line with its values of financial responsibility, Bharti AXA York Life has adopted prudent financial practices to ensure safety of policyholder’s funds.
Bharti AXA Life has identified individual agents as its primary channel of distribution. The Company places a lot of emphasis on its selection process, which comprises four stages – screening, psychometric test, career seminar and final interview. The agent advisors are trained in-house to ensure optimal control on quality of training. Bharti AXA Life insurance invests significantly in its training program and each agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to sell in the marketplace.
Training is a continuous process for agents at Bharti AXA Life insurance and ensures development of skills and knowledge through a structured program spread over 500 hours in two years. This focus on continuous quality training has resulted in the company having amongst the highest agent pass rate in IRDA examinations and the agents have the highest productivity among private life insurance. The company is selling its products through three distribution channel – 1. Agency distribution model 2. Direct sales force 3. Banc assurance and corporate alliances
Having set a good distribution models in place, the company is also building a strategy to sell its products through its retail chains like Field Fresh. Vision To be a leader and the preferred company for financial protection and wealth management in India Values Professionalism Innovation Team spirit Integrity Pragmatism Bharti AXA Life Insurance – Growing Presence ? Number of cities- 111 ? Number of offices – 163 ? Number of Agents – 30,000 PLUS. Product Offered By Bharti AXA – Bharti AXA Life Insurance offers a suite of flexible products.
It has 7 life insurance products and 8 riders that can be customized to over 400 combinations enabling customers to choose the policy that best fits their need. Some important product offered by bharti AXA are- 1. Future confident- This product is designed to meet the long term needs of the customers like meeting the educational need of the children 2. Wealth confident scheme-This is the flagship product of Bharti AXA life insurance. It is a unit linked investment and protection product which is providing risk cover for 10 year but the customer has to pay premium only for 5 years, it also rovide customer the flexibility in premium payments . 3. Invest Confident – This policy is designed for those people who want to invest through a single larger premium. 4. Secure confident – This product is designed to meet the need of those customers who only want to take risk cover and not taking policy as an investment. 5. Save confident – This product is a traditional money back insurance product. It offers a combination of benefits like liquidity, long term saving and risk cover. 6. Aspire life – This is an ULIP product, designed to meet the needs of those customers who want to invest money for a longer period of time.
INSURANCE REGULATIORY & DEVELOPMENT AUTHORITY ACT 1999 (IRDA) It came into existence in December 1999. It is a statutory body which was framed to provide license to private companies in insurance sector and to protect the right of policy holders. SCOPE ? The act was passed by the parliament in December 1999. ? To permit private companies to enter the insurance market, Government has enacted Insurance Regulatory & Development Authority Act, 1999. ? The act provides for the establishment of the authority – 1. Protect interest of holders of insurance policies; 2.
To regulate, promote and ensure orderly growth of insurance industry; 3. For matters connected therewith or incidental thereto. ? The act also sought to amend the following acts – 4. The insurance act 1938. 5. The life insurance corporation act, 1956. 6. The General Business (Nationalization) Act, 1972 ? The act applies to the whole of India including J&K state. ? This is a corporate body established for the purpose and object as set out in the explanation to the title. ? The authority replaces controller under insurance act 1938. ? The first schedule amends insurance act 1938.
CONSTITUTION OF IRDA ? Insurance regulatory and development authority consists of the following members. 1. A chairperson; 2. Not more than five whole-time members’ and 3. Not more than four part-time members to be appointed by the central Govt. ? Members should be a person of ability; integrity; and standing. FUNCTION OF IRDA 1. To issue certificate of registration, renew, withdraw, suspend or cancel such registration. 2. To protect the interests of the policyholders/ insured in the mater of insurance contract with the insurance company. 3.
To specify requisite qualifications, code of conduct and training for insurance intermediaries and agents. 4. To specify code of conduct for surveyors/loss assessors. 5. To promote efficiency in the conduct of insurance business. 6. To promote and regulate professional organizations connected with the insurance and reinsurance business. 7. To undertake inspection, conduct enquiries and investigations including audit of insurers and insurance business. 8. To control and regulate the rates, terms and conditions to be offered by the insurer regarding general insurance business not so controlled by tariff advisory committee. . To specify and the form and manner for maintenance of books of accounts and the statement of accounts. 10. To regulate investment of funds by the insurance companies. Insurance Industry in the year 2000-2001 had 13 new entrants, namely: S. No. Reg. No. Date of Reg. Name of the Company 1. 10123. 10. 2000HDFC Standard Life Insurance Company 2. 10323. 10. 2000Reliance General Insurance Company Ltd. 3. 10415. 11. 2000Max New York Life Insurance Co. Ltd. 4. 10524. 11. 2000ICICI Prudential Life Insurance Company 5. 10710. 01. 2001Kotak Mahindra Old Mutual Life Insurance 6. 10931. 01. 2001Birla Sun Life Insurance Company Ltd. . 11012. 02. 2001Tata AIG Life Insurance Company Ltd. 8. 11130. 03. 2001SBI Life Insurance Company Limited 9. 11402. 08. 2001ING Vysya Life Insurance Co. Pvt. Ltd. 10. 11603. 08. 2001Bajaj Allianz Life Insurance Co. Ltd. 11. 11706. 08. 2001MetLife India Insurance Co. Pvt. Ltd. 12. 12214. 05. 2002Aviva Life Insurance Co. India Pvt. Ltd. 13. 12706. 02. 2004Sahara India Insurance Company Ltd. SOME PRIVATE INSURANCE COMPANIES: Several insurance companies emerged after the liberalization of the insurance sector. As a result now there are several insurance companies, which are leading their ways.
Now along with L. I. C. there are several private ones giving tough competition to it. Some of the prominent insurance firms are: • BAJAJ (Allianz) • ICICI Prudential • TATA (AIG) • Kotak Mahindra Old Mutual Life Insurance Limited BAJAJ (Allianz) Bajaj Allianz Life Insurance Company Limited is a union between Allianz AG, the worlds leading insurer and Bajaj Auto, one of the most respected names. Allianz AG is the leading insurance conglomerate globally and the largest asset manager in the world, managing asset worth over 989 billion Euro (Rs. 49, 84,560 crores).
At Bajaj Allianz, we realize that you seek an insurer you can trust your hard earned money with. Allianz AG has more than 110 years of financial experience in over 70 countries and Bajaj Auto, trusted for over 55 years in the Indian market, are committed to offering you financial solution that provide all the security you need for your family and yourself. One of the prominent plans they have is Unit Gain Plus. TATA (AIG) Tata AIG is a joint venture that is backed by the Tata Group India’s most respected industrial conglomerate, with revenues of more than US$ 8. 4 billion, and American International Group, Inc. AIG) – the leading US – based international insurance and financial service organization, with the presence in over 130 countries and jurisdictions throughout the world. Tata AIG offers a gamut of innovative products in the life insurance sector, some of them are: • Money saver plan • Maha Life (Gold) • Raksha Plan • Nirvana ICICI Prudential ICICI Prudential is also a joint venture that is backed by ICICI Bank Limited (erstwhile ICICI Limited) and Prudential plc formerly known as Prudential Corporation plc, through its wholly owned subsidiary, Prudential Corporation Holding Limited situated in Laurence Poultney Hill, London.
Some of the innovative products it offers in the insurance sector are: • ICICI Prudential Mutual Fund (Liquid plan, Income plan etc. ) • Unit Linked Plan with Capital Guarantee • Smart Kid OBJECTIVES OF THE STUDIES 1. To know about the saving habits of consumers. 2. To know the awareness about Insurance Plans and their benefits 3. To know the attitude of individuals towards risk bearing. 4. To know the objective of individuals while purchasing insurance 5. To know the attitude of individuals towards insurance plans and preference to Bharti AXA Life. 6. To check out the consumer’s financial position.
Research Methodology Primary Research:- Primary data are the data that are collected to solve a problem or take advantage of any opportunities on which a decision is depending. These data are basically observed and recorded by the researcher for the first time. Research Design:- For this study a survey research was adopted with the help of primary data. For getting primary data the research tool was a structured questionnaire. Sample Size: – The sample for the purpose of study was the 50 customers. Sample Design: – A sample design not only seeks to determine the size of sample and also the sampling unit.
The sample for he purpose of study was the customer. Sample Techniques: – The techniques adopted of selection of sampling of sample for study was simple random sampling method. Questionnaire Design: – The author had a set of idea sand expected result based on those ideas from the questionnaire. For this reason questions were: Related to the field of study. Related to the research hypothesis. Questions must bear significance to concerned area of research. Questions must seek information unattainable from other sources. The must be short as possible but comprehensive enough to allow the author to derive his requirement of his research.
Questions were well laid out. FINDING No. of respondents which are aware of life Insurance Do you know about Life Insurance Policy? | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |yes |48 |96. 0 |96. 0 |96. 0 | | |no |2 |4. 0 |4. 0 |100. 0 | | |Total |50 |100. 0 |100. 0 | | [pic] Inference: Above bar chart shows that 96% of Peoples know about life insurance.
No. of respondents having the life insurance policy Do you have any Life Insurance Policy? | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |yes |43 |86. 0 |86. 0 |86. 0 | | |no |7 |14. 0 |14. 0 |100. 0 | | |Total |50 |100. 0 |100. 0 | | [pic] Inference: Above bar chart shows that 86% of respondents having Life Insurance.
Respondents preference in Investment Where would you prefer to invest? | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Govt. Securities|10 |20. 0 |20. 0 |20. 0 | | |Mutual Funds |18 |36. 0 |36. 0 |56. 0 | | |Equity Shares |14 |28. 0 |28. 0 |84. 0 | | |Insurance |8 |16. 0 |16. |100. 0 | | |Total |50 |100. 0 |100. 0 | | | | | | | | | | | | | | | | [pic] Inference: Above pie chart show that 20% respondent of preferred in Govt. Security, 16% Insurance, 36% Mutual Funds and 28% in Equity Share. Criteria of Invest of respondent On which criteria do you invest? |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Expert Advice |10 |20. 0 |20. 0 |20. 0 | | |Friendly Advice |17 |34. 0 |34. 0 |54. 0 | | |Own Analysis |23 |46. 0 |46. 0 |100. 0 | | |Total |50 |100. 0 |100. 0 | | [pic] Inference: The majority of respondents invest their money by their own analysis i. . 46%, by friendly advice 34% respondents invest and 20% respondents invert their money by taken expert’s advice Source of Income of respondents What is your source of income? | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Self |13 |26. 0 |26. 0 |26. 0 | | |Employed/Professional | | | | | | |Business |18 |36. |36. 0 |62. 0 | | |Salaried |19 |38. 0 |38. 0 |100. 0 | | |Total |50 |100. 0 |100. 0 | | [pic] Inference: The majority of respondents are fall in the category of Salaried, approximately 38%, where as 36% are having Business and 26% are self employed Annual Income of respondents To which income group you belong? |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |> 1,00,000 |10 |20. 0 |20. 0 |20. 0 | | |1,00,000 to 2, |20 |40. 0 |40. 0 |60. 0 | | |00,000 | | | | | | |200,000 to 500,000 |15 |30. 0 |30. 0 |90. | | |500,000 & above |5 |10. 0 |10. 0 |100. 0 | | |Total |50 |100. 0 |100. 0 | | [pic] Inference: It shows that Annual income of majority of respondents falls in the category of 1-2lac, approximately 40%. Where as 20% in 20,000 |7 |14. 0 |14. 0 |100. 0 | | |Total |50 |100. 0 |100. | | [pic] Inference: It show that 26% of respondents invest around 1000-15000, where as 40 %< 10,000, 20% 15000-20000, 14% invest 20000 or above. Respondents preferred Duration of Policy For what duration would you like to hold the policy? | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |< 5 Years |9 |18. 0 |18. 0 |18. 0 | | |5- 10 Years |18 |36. 0 |36. 0 |54. | | |10 – 20 Years |16 |32. 0 |32. 0 |86. 0 | | |> 20 Years |7 |14. 0 |14. 0 |100. 0 | | |Total |50 |100. 0 |100. 0 | | [pic] Inference: It shows that the 36% of respondents prefer 5-10 years policy duration, where as 18% in 1, 00,000 [ ] 1, 00,000 to 2, 00,000 [ ] 200,000 to 500,000 [ ] 500,000 & above [ ] 7. What type of plan would you prefer?
Endowment [ ] Pure Risk [ ] Money Back [ ] Term Insurance 8. How much can you invest per annum? < 10,000 [ ] 10,000 – 15,000 [ ] 15,000 – 20,000 [ ] > 20,000 [ ] 9. For what duration would you like to hold the policy? < 5 Years [ ] 5- 10 Years [ ] 10 – 20 Years [ ]> 20 Years [ ] 10. What is your main expectation from the insurance company? Security [ ] Good Return’ [ ] Service [ ] Flexibility [ ] 11. What additional benefit do you want from the policy? Accidental [ ] Critical Illness [ ] Start of Life [ ] Family Income Benefit [ ] 12.
What is your logic behind taking an insurance plan? Tax Planning [ ] Risk Cover [ ] Retirement Planning [ ] Investment Planning [ ] All of these [ ] 13. Which company would you prefer to invest in? L. I. C. [ ] HDFC [ ] Bajaj Allianz [ ] ICICI Prudential [ ] bharti AXA [ ] others [ ] 14. Are you satisfied with the services that are offered by your insurance company? Yes [ ] No [ ] 15. What are the factors that have motivated you to prefer Bharti AXA over the other companies? Brand Name [ ] Goodwill of Bharti AXA [ ] Service [ ] Advertisement [ ] 16.
If Given a Chance do you again prefer to buy the Bharti AXA Life Insurance policy in future? Yes [ ] No [ ] 17. What is the most dissatisfying factor do you feel about Bharti AXA? After Sale Service [ ] Product Diversification [ ] Fund Performance [ ] Advertisement [ ] 18. What are die reason behind not purchasing/taking a Bharti AXA life insurance policy? Trust [ ] Service [ ] Advertisement [ ] Market Reputation [ ] 19. Rank the service of Bharti AXA Life Insurance? Excellent [ ] Good [ ] Average [ ] Below Average [ ] Thanking you!