Stages in Policy Issuance

1. Proposal

A Proposal Stage is the First stage before the policy is issued at COPS. At this stage,
the application form is received by COPS, but it is pending for issuance due to further
clarifications required from the customer.

2. Login

A proposal which is complete i.e., duly filled with all necessary documents attached to it
& accepted by the Branch ops, is called a Login

3. Reject

An Application gets rejected at the Branch Ops level due to necessary details not filled
in the form or necessary documents not submitted is a Reject. It is then sent back to the
Advisor for completion.

4. Issuance

Issuance means a policy that is issued to the Customer by Central Ops.

5. Decline Status

When a customer refuses to take a policy post login but before Issuance is called a
Decline

6. Cancellation

When the cheque given by the customer bounces, it amounts to cancellation of the
policy.

7. Lapse

A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.

8. Free look

Post issuance of the policy, the policyholder has the option to turn down the policy
within 15 days from the date of issuance. This period of 15 days is called Free look
Period.

9. Surrender

When a customer wants to discontinue with the policy.

Various types of life insurance policies:-

• Endowment policies: This type of policy covers risk for a specified period, and at the
end of the maturity sum assured is paid back to policyholder with the bonuses during the
term of the policy.
• Money back policies: This type of policy is for periodic payments of partial survival
benefits during the term of the policy as long as the policy holder is alive.
• Group insurance: This type of insurance offers life insurance protection under group
policies to various groups such as employers-employees, professionals, co-operatives
etc it also provides insurance coverage for people in certain approved occupations at the
lowest possible premium cost.
• Term life insurance policies: This type of insurance covers risk only during the
selected term period. If the policy holder survives the term, risk cover comes to an end.
These types of policies are for those people who are unable to pay larger premium
required for endowment and whole life policies. No surrender, loan or paid up values are
in such policies.
• Whole life insurance policies: This type of policy runs as long as the policyholder is
alive and is covered for the entire life of the policyholder. In this policy the insured
amount and the bonus is payable only to nominee on the death of policy holder.
• Joint life insurance policies: These policies are similar to endowment policies in
maturity benefits and risk cover, but joint life policies cover two lives simultaneously such
as married couples. Sum assured is payable on the first death and again on the death of
survival during the term of the policy.
• Pension plan: a pension plan or annuity is an investment over a certain number of
years but does not provide any life insurance cover. It offers a guaranteed income either
for a life or certain period.
• Unit linked insurance plan: ULIP is a kind of insurance plan which provides life cover
as well as return on premium paid over a certain period of time. The investment is
denoted as units and represented by the value called as net asset value (NAV).
 Existing Insurance Companies/Corporations
S.No Lic.NO Date of Name of Life Insurance Companies
Inco.
1. 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.

2. 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3. 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.

4. 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited

5. 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6. 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7. 111 30.03.2001 SBI Life Insurance Company Limited .

8. 114 02.08.2001 ING Vysya Life Insurance Company Private Limited

9. 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited

10. 117 06.08.2001 Metlife India Insurance Company Ltd.

11. 133 04.09.2007 Future Generali India Life Insurance Company

Limited

12. 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

13. 121 03.01.2002

Reliance Life Insurance Company Limited.
14. 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.

15. 127 06.02.2004 Sahara India Insurance Company Ltd.

16. 128 17.11.2005 Shriram Life Insurance Company Ltd.

17. 130 14.07.2006 Bharti AXA Life Insurance Company Ltd.

18. 133 04.09.2007 Future Generali India Life Insurance Company

Limited

19. 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.

20. 136 08.05.2008 Canara HSBC Oriental Bank of Commerce Life

Insurance Company Ltd.
 21. 138 27.06.2008 Aegon Religare Life Insurance Company Ltd.

22. 140 27.06.2008 DLF Pramerica Life Insurance Company Ltd.

23. 142 Star Union Dai-ichi

ichi Life Insurance Co. Ltd.,

In 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an
autonomous body to regulate and develop the insurance industry. The IRDA was incorporated
as a statutory body in April, 2000. The key objectives of the IRDA include promotion of
competition so as to enhance customer satisfaction through increased consumer choice and
lower premiums, while ensuring the financial security of the insurance market. The IRDA
opened up the market in August 2000 with the invitation for application for registrations. Foreign
companies were allowed ownership of up to 26%. The Authority has the power to frame
regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed
various regulations ranging from registration of companies for carrying on insurance business to
protection of policyholders’
ders’ interests. IRDA is regulated or controlled under the chairmanship of
Shri. J.Hari Narayan.

Role of IRDA:

• Protecting the interests of policyholders.

• Establishing guidelines for the operations of insurers, and brokers.
• Specifying the code of conduct, q
qualifications,
ualifications, and training for insurance intermediaries
and agents.
• Promoting efficiency in the conduct of insurance business.
• Regulating the investment of funds by insurance companies.
• Specifying the percentage of business to be written by insurers in ru
rural
ral sectors.
• Handling disputes between insurers and insurance intermediaries.
TRENDS IN LIFE INSURANCE BUSINESS—UNIT LINKED
INSURANCE PLANS:

It wasn’t too long back when the good old endowment plan was the preferred way to insure
oneself against an eventuality and to set aside some savings to meet one’s financial objectives.
The traditional endowment policies were Investing funds mainly in fixed interest Government
securities and other safe investments to ensure the safety of capital. Thus the traditional
emphasis was always on security of capital rather than yield. However, with the inflationary
trend witnessed all over the world, it was observed that savings through life insurance were
becoming unattractive and not meeting the aspirations of the policyholders.

The policyholder found that the sum assured guaranteed on maturity had really depreciated in
real value because of the depreciation in the value of money. The investor was no longer
content with the so called security of capital provided under a policy of life insurance and started
showing a preference for higher rate of return on his investments as also for capital
appreciation. It was, therefore found necessary for the insurance companies to think of a
method whereby the expectation of the policyholders could be satisfied. The object was to
provide a hedge against the inflation through a contract of insurance. Decline of assured return
endowment plans and opening of the insurance sector saw the advent of ULIPs on the domestic
insurance horizon. Today, the Indian life insurance market is riding high on the unit linked
insurance plans.

ULIPs and its Features:

Unit linked insurance plans (ULIPs) are insurance plans that combine the benefit of investment
with insurance. They give the investor an option to put a part of their premium in various
investment portfolios and derive the benefits depending upon the performance of the funds
chosen by them. ULIPs were launched at an opportune time when stock markets had just taken
off. Being market- linked, they were major beneficiaries of the secularrise in stock markets.
ULIPs have gained high acceptance due to the attractive features they offer. These include:

1. Flexibility

1. Flexibility to choose Sum Assured.

2. Flexibility to choose premium amount.

3. Option to change level of Premium even after the plan has started (Top up facility).

4. Flexibility to change asset allocation by switching between funds.

2. Transparency

1. Changes in the plan & net amount invested are known to the customer.

2. Convenience of tracking one’s investment performance on a daily basis.

3. Liquidity

1. Option to withdraw money after few years (comfort required in case of exigency).

2. Low minimum tenure.

3. Partial / Systematic withdrawal allowed

4. Fund Options

1. A choice of funds (ranging from equity, debt, cash or a combination).

2. Option to choose fund mix based on desired asset allocation.

Traditionally, endowment plans have invested in government securities, corporate bonds and
the money market. ULIPs however, have a broader choice. They invest across the board in
stocks, government securities, corporate bonds and money market instruments. Of course,
within a ULIP there are options wherein equity investments are capped. The common types of
funds available in ULIPs are Bond Fund, Protector Fund, Secure Fund, Balanced Fund, Growth
Fund, Index Fund, and Enhancer Fund. Depending on one’s risk appetite one can choose the
fund. However the investment risk is borne by the investor. The common type of charges, fees
and deductions in ULIPs are Premium allocation charges, Mortality charges, Fund management
charges, Policy/administration charges, Surrender charges, Fund switching charges and
Service tax.

Insurance companies are required to declare the NAV of various ULIPs on a daily basis. The
movement of NAV enables the policy holder to assess the performance of his investment and
accordingly make intervention in the form of switches, withdrawal and top-ups. After opening up
of the insurance sector, Unit-linked insurance policies (ULIPs) have become increasingly
popular. Analysis of figures for the last three years indicates the growth pattern of unit linked
business.
 Questionnaire

Ajay singh rathore

Name-

Company-

Designation-
Contact no.-

The following questionnaire is for the purpose of our research project as a part of our MBA
curriculum on “Study of insurance sector and competitiveness with the special reference
to Bajaj Allianz Life Insurance Company Ltd.”It is assured from us that any information
given by the company will not be disclosed by any means. With this assurance I expect
accurate data from company to help me for my project.

_____________________________________________________________

1. How long you have been in insurance industry?

(a) > 2 years (b) 2-5 years (c) 5-8 years (d) >8 years

2. When did you join your present company?

(a) > 2 years (b) 2-5 years (c) 5-8 years (d) >8 years

3. Your designation while joining this company……………………….. .............................

.....................................................................................................................................

4. How many advisors do you have? (For branch Manager only)

(a) >250 (b) 250-400 (c) 400-550 (d) >550

5. How many advisors do you have? (For agency Manager)

(a) >25 (b) 25-50 (c) 50-100 (d) 100-150

6 On what products you are stressing more?

(a) Term insurance

(b) Unit linked products

(c) Money back products

(d) Endowment products

7. How do you make them active?

(a)By increasing incentives

(b)By offering higher channel position

(c)By awarding non-cash prizes

(d)By giving training session

8. How many MBAs do you have in your agency?

(a) None (b) 1-3 (c) 4-6 (d) more than 6

9. . On what basis do you recruit your advisor?

(a) Through personal reference

(b) Through advertisement

(c) Through walk in interviews

(d) Through placements agencies

10. What is the basis of your product deployment?

(a) Profit oriented

(b) On customers need and demand

(c) On channel feedback from market

(d) By adding some additional benefits in current product

11. How do you differentiate your product from your competitors?

(a) By advertising and promotional activities

(b) By pricing of the product

(c) Based on the operation of funds

(c) By providing better service quality

12. Your mode of interaction with customers.

(a) Direct marketing

(b) By telephonic contacts (creating database)

(c) Through advertisement

(d) Through references

13. Which kind of strategies should an insurance company use to compete in the market (in
your view)?

(a) Better service quality

(b) Accordingly change in the pricing of product

(c) By increasing periodicity of interaction with advisors and customers

(d) By providing extra benefits to advisors and customer

14. What is average total premium collection in your branch (in a month?)

(a) >2 Cr. (b) 2-4 Cr. (c) 4-5 Cr. (d) >5 Cr.

15. How many MDRT are become in your branch.

(a) >3 (b) 4-6 (c) 7-8 (d) 8 - 10

16. Other useful activities which you do in agency (if any, please
mention)…………………………………………………………………….............................................
.........................................................................................................................................................
...................................................................................................................

17. What are your best products which you think it is a best in insurance sector?

.........................................................................................................................................................
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