A PROJECT REPORT ON

“MARKETING OF INSURANCE WITH REFERENCE TO BAJAJ

ALLIANZ LIFE INSURANCE”

SUBMITTED TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF

MASTER IN COMMERCE

UNDER THE FACULTY OF COMMERCE

BANKING AND FINANCE

SEMESTER 3

BY

SURABHI PRAKASH GANGATIRKAR

ROLL NO-08

UNDER THE GUIDANCE OF

PROF. MR. SAGAR THAKKAR

VIDYA PRASARAK MANDAL

KG JOSHI COLLEGE OF ARTS & N.G BEDEKAR COLLEGE

OF COMMERCE

Chendani Bunder Road, Thane (w)

AY: 2017-18

i
ii
 DECLARATION

I the undersigned Miss. SURABHI PRAKASH GANGATIRKAR here by, declare that
the work embodied in this project work titled “MARKETING OF INSURANCE WITH
REFERENCE TO BAJAJ ALLIANZ, forms my own Contribution to the research work
carried out under the guidance of PROF. MR.SAGAR THAKKAR is a result of my own
research work and has not been previously submitted to any other University for any other
Degree to this or any University.

Wherever reference has been made to previous works of others, it has been clearly
indicating as such and included in the bibliography.

I, here by further declare that all information of this document has been Obtained and
presents in accordance with academic rules and ethical Conduct.

NAME AND SIGNATURE

SURABHI GANGATIRKAR

CERTIFIED BY

NAME AND SIGNATURE OF THE GUIDING TEACHER

PROF. (MR) SAGAR THAKKAR

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 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth is
so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me Chance to do this
project.

I would like to thank my Principal, Dr. Mrs. SUCHITRA A. NAIK for giving me chance
to do this project.

I take this opportunity to thank our Coordinator ASST. PROF. RASHMI

AGNIHOTRI, for her moral support and guidance.

I would also like to express my sincere gratitude towards my project guide PROF. (MR)
SAGAR THAKKAR whose guidance and care made the Project successful.

I would like to thank my College Library, for having provided various Reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers Who support me throughout
my project.

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 EXECUTIVE SUMMARY

Marketing plays a vital role within the insurance industry. It is used to increase sales and
sustain marketplace positions for major companies and by smaller companies to build and
grow their businesses. The use of marketing can be as far-reaching as a national
television campaign to grow and sustain a major insurance company, and as localized as
a business cards and fliers used by a local insurance agent. Regardless of size, marketing
tactics and strategies are developed by all in the industry to target consumers and
prospects to cover their insurance needs for home, health, life and commercial coverage.

Insurance companies leverage opportunities to plan their marketing efforts. For example,
an auto insurance provider looks at cities that have a high incidence of traffic accidents to
identify business growth opportunities. The companies gather statistics on the amount of
insured and non-insured drivers, and the results are then used to leverage opportunities to
achieve additional new customers and corresponding costs to acquire them through
executing advertising, incentives and promotions.

Insurance companies are in a unique position when it comes to marketing. They have no
tangible products to sell but must instead rely on strong relationships with loyal
customers and word of mouth to help them compete. Still, despite the challenges, the
marketing strategies for insurance companies are really no different than for any other
company and require a strong focus on the basics of effective marketing.

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 INDEX

CHAPTER TOPIC PAGE

NO. NO

EXECUTIVE SUMMARY

1 MARKETING, INSURANCE AND

MARKETING OF INSURANCE

1.1 INTRODUCTION TO MARKETING 3

1.2 HISTORY OF MARKETING 4

1.3 DEFINITION OF MARKETING 5

1.4 INTRODUCTION TO 6
INSURANCE,MEANING AND DEFINATION

1.5 IMPORTANCE OF INSURANCE 9

1.6 PRINCIPLES OF INSURANCE 12

1.7 INSURANCE REGULATORY AND 16

DEVELOPMENT AUTHORITY

1.8 TYPES OF INSURANCE 17

1.9 INTRODUCTION TO LIFE INSURANCE 18

1.10 CONTRACT TERMS, COSTS, 19

INSURABILITY & UNDERWRITING

1.11 TYPES OF LIFE INSURANCE 20

1.12 MARKETING MIX 24

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2 RESEARCH METHODOLOGY 28

3 LITERATURE REVIEW 30

4 4.1 PROFILE OF BAJAJ ALLIANZ INSURANCE 31

COMPANY

4.2 VISION AND MISSION 33

4.3 AWARD AND RECOGNITION 34

4.4 PRODUCTS AND SERVICES 37

4.5 MARKETING MIX OF LIFE INSURANCE 38

BUSINESS

4.6 ACHIEVEMENTS 42

5 DATA ANALYSIS AND INTERPRETATION 44

6 FINDINGS 54

7 CONCLUSION 55

8 SUGGESTION 56

9 BIBLIOGRAPHY 57

10 ANNEXTURE 58

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 CHAPTER 1

MARKETING, INSURANCE AND MARKETING OF INSURANCE

1.1 INTRODUCTION TO MARKETING

The marketing concept is a philosophy. It makes the customer and the satisfaction of
his or her needs the focal point of all business activities. It is driven by senior managers,
passionate about delighting their customers.
Now that you have been introduced to some definitions of marketing and the marketing
concept, remember the important elements summarized as follows:
 Contemporary marketing focuses on the satisfaction of customer needs, wants and

requirements.

 It’s about the delivery of value to satisfied customers, through an exchange.

 The philosophy of marketing needs to be owned by everyone from within the organization.

 Future needs have to be identified and anticipated.

 There is normally a focus upon profitability, especially in the corporate sector.

 More recent definitions recognize the influence of marketing upon society.

 There is a longer-term relationship with customers.

The marketing concept holds that achieving organizational goals depends on knowing the

needs and wants of target markets and delivering the desired satisfaction better than

competitors do.

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1.2 HISTORY OF MARKETING

It is hard for many to believe, but when compared to economics, production and
operations, accounting and other business areas, marketing is a relatively young discipline
having emerged in the early 1900s. Prior to this time most issues that are now commonly
associated with marketing were either assumed to fall within basic concepts of economics,
advertising, or in most cases, simply not yet explored.

Led by marketing scholars from several major universities, the development of

marketing was in large part motivated by the need to dissect in greater detail relationships
and behaviors that existed between sellers and buyers. In particular, the study of marketing
led sellers to recognize that adopting certain strategies and tactics could significantly
benefit the seller/buyer relationship. In the old days of marketing (before the 1950s) this
often meant identifying strategies and tactics for simply selling more products and services
with little regard for what customers really wanted. Often this meant companies embraced
a “sell-as-much-as-we-can” philosophy with little concern for building relationships for
the long term.

But starting in the 1950s, companies began to see that old ways of selling were wearing
thin with customers. As competition grew stiffer across most industries, organizations
looked to the buyer side of the transaction for ways to improve. What they found was an
emerging philosophy suggesting that the key factor in successful marketing is
understanding needs of customers. This now famous Marketing Concept suggests
marketing decisions should flow from FIRST knowing the customer and what they want.
Only then should an organization initiate the process of developing and marketing products
and services.

The marketing concept continues to be at the root of most marketing efforts, though the
concept does have its own problems a discussion of which is beyond the scope of this
tutorial. But overall, marketers have learned they can no longer limit their marketing effort

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to just getting customers to purchase more. They must have an in-depth understanding of
who their customers are and what they want.

1.3 DEFINITION OF MARKETING

By, Kotler and Armstrong (2010).
“Marketing is not only much broader than selling; it is not a specialized activity at all. It
encompasses the entire business. It is the whole business seen from the point of view of
the final result, that is, from the customer’s point of view. Concern and responsibility for
marketing must therefore permeate all areas of the enterprise.”

Philip Kotler defines marketing as: -marketing is about Satisfying needs and wants through
an exchange process.

The Chartered Institute of Marketing defines marketing as "the management process

responsible for identifying, anticipating and satisfying customer requirements profitably."
A similar concept is the value-based marketing which states the role of marketing to
contribute to increasing shareholder value. In this context, marketing can be defined as "the
management process that seeks to maximize returns to shareholders by developing
relationships with valued customers and creating a competitive advantage."

Marketing practice tended to be seen as a creative industry in the past, which

included advertising, distribution and selling. However, because the academic study of
marketing makes extensive use of social
sciences, psychology, sociology, mathematics, economics, anthropology and neuroscienc
e, the profession is now widely recognized as a science, [not in citation given]allowing
numerous universities to offer Master-of-Science (MSc) programs. [Not in citation given]

The process of marketing is that of bringing a product to market in which includes these
steps: broad market research; market targeting and market segmentation; determining
distribution, pricing and promotion strategies; developing a communications strategy;
budgeting; and visioning long-term market development goals. Many parts of the

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marketing process (e.g. product design, art director, brand
management, advertising, copywriting etc.) involve use of the creative arts.

1.4 INTRODUCTION TO INSURANCE

Insurance is a tool by which fatalities of a small number are compensated out of funds
(premium payment) collected from plenteous. Insurance companies pay back for financial
losses arising out of occurrence of insured events e.g. in personal accident policy death due
to accident, in fire policy the insured events are fire and other allied perils like riot and
strike, explosion etc. hence insurance safeguard against uncertainties. It provides financial
recompense for losses suffered due to incident of unanticipated events, insured with in
policy of insurance. Moreover, through a number of acts of parliament, specific types of
insurance are legally enforced in our country e.g. third-party insurance under motor
vehicles Act, public liability insurance for handlers of hazardous substances under
environment protection Act. Etc.

Insurance is a form of risk management in which the insured transfers the cost of potential
loss to another entity in exchange for monetary compensation known as the premium.
Insurance allows individuals, businesses and other entities to protect themselves against
significant potential losses and financial hardship at a reasonably affordable rate. Insurance
is appropriate when you want to protect against a significant monetary loss. Take life
insurance as an example. If you are the primary breadwinner in your home, the loss of
income that your family would experience as a result of our premature death is considered
a significant loss and hardship that you should protect them against. It would be very
difficult for your family to replace your income, so the monthly premiums ensure that if
you die, your income will be replaced by the insured amount. The same principle applies
to many other forms of insurance. If the potential loss will have a detrimental effect on the
person or entity, of the insured person then only the insurance makes a sense. Everyone

6
 that wants to protect themselves or someone else against financial hardship should consider
insurance.

This may include:

 Protecting family after one's death from loss of income

 Ensuring debt repayment after death

 Covering contingent liabilities

 Protecting against the death of a key employee or person in your business

 Buying out a partner or co-shareholder after his or her death

 Protecting your business from business interruption and loss of income

 Protecting yourself against unforeseeable health expenses

 Protecting your home against theft, fire, flood and other hazards

 Protecting yourself against lawsuits

 Protecting yourself in the event of disability

 Protecting your car against theft or losses incurred because of accidents

 And many more

MEANING OF INSURANCE

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It is a commonly acknowledged phenomenon that there are countless risks in every sphere
of life. For property, there are fire risk; for shipment of goods. There are perils of sea; for
human life there are risk of death or disability; and so on. The chances of occurrences of
the events causing losses are quite uncertain because these may or may not take place.
Therefore, with this view in mind, people facing common risks come together and make
their small contribution to the common fund. While it may not be possible to tell in
advance, which person will suffer the losses, it is possible to work out how many persons
on an average out of the group, may suffer losses. When risk occurs, the loss is made well
out of the common fund .in this way each and every one shares the risk .in fact they share
the loss by payment of premium, which is calculated on the likelihood of loss .in olden
time, the contribution makes the above-stated notion of insurance.

Insurance is a means of protection from financial loss. It is a form of risk

management primarily used to hedge against the risk of a contingent, 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 an insured or
policyholder. The insurance transaction involves the insured assuming a guaranteed and
known relatively small loss in the form of payment to the insurer 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, and usually involves
something in which the insured has an insurable interest established by ownership,
possession, or preexisting relationship.

The insured receives a contract, called the insurance policy, which details the conditions
and circumstances under which the insurer will compensate the insured. The amount of
money charged by the insurer to the insured 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. The insurer may hedge its own risk by taking out reinsurance, whereby
another insurance company agrees to carry some of the risk, especially if the risk is too
large for the primary insurer to carry.

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DEFINITION OF INSURANCE
Insurance has been defined to be that in, which a sum of money as a premium is paid by
the insured in consideration of the insurer’s bearings the risk of paying a large sum upon a
given contingency. The insurance thus is a contract whereby:
a. Certain sum, termed as premium, is charged in consideration,
b. Against the said consideration, a large amount is guaranteed to be paid by the insurer
who received the premium.
The compensation will be made in certain definite sum, i.e., the loss or the policy
amount which ever may be, and.The payment is made only upon a contingency More
specifically, insurance may be defined as a contact between two parties, wherein one party
(the insurer) agrees to pay to the other party (the insured) or the beneficiary, ascertain sum
upon a given contingency (the risk) against which insurance is required.
Insurance is an arrangement in which you pay money to a company, and they pay
money to you if something unpleasant happens to you, for example if your property
is stolen or damaged, or if you get a serious illness.

Insurance can be defined as

a. the act, system, or business of providing financial protection for property, life, health,
etc., against specified contingencies, such as death, loss, or damage,
and involving payment of regular premiums in return for a policy guaranteeing such
protection

b. the state of having such protection

c. the policy providing such protection

d. the pecuniary amount of such protection

e. the premium payable in return for such protection

f. (as modifier)
Insurance agent
Insurance broker
Insurance company

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1.5 THE IMPORTANCE OF INSURANCE
Insurance benefits society by allowing individuals to share the risks faced by many people.
But it also serves many other important economic and societal functions. Because
insurance is available and affordable, banks can make loans with the assurance that the
loan’s collateral (property that can be taken as payment if a loan goes unpaid) is covered
against damage. This increased availability of credit helps people buy homes and cars.
Insurance also provides the capital that communities need to quickly rebuild and
recover economically from natural disasters, such as tornadoes or hurricanes. Insurance
itself has become a significant economic force in most industrialized countries. Employers
buy insurance to cover their employees against work-related injuries and health problems.
Businesses also insure their property, including technology used in production, against
damage and theft. Because it makes business operations safer, insurance encourages
businesses to make economic transactions, which benefits the economies of countries. In
addition, millions of people work for insurance companies and related businesses.
Insurance contributes a lot to the general economic growth of the society by
provides stability to the functioning of process. The insurance industries develop
financial institutions and reduce uncertainties by improving financial resources.

1. Provide safety and security:

Insurance provide financial support and reduce uncertainties in business and human life.
It provides safety and security against particular event. There is always a fear of sudden
loss. Insurance provides a cover against any sudden loss. For example, in case of life
insurance financial assistance is provided to the family of the insured on his death. In
case of other insurance security is provided against the loss due to fire, marine, accidents
etc.

2. Generates financial resources:

Insurance generate funds by collecting premium. These funds are invested in government
securities and stock. These funds are gainfully employed in industrial development of a
country for generating more funds and utilised for the economic development of the

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country. Employment opportunities are increased by big investments leading to capital
formation.

3. Life insurance encourages savings:

Insurance does not only protect against risks and uncertainties, but also provides an
investment channel too. Life insurance enables systematic savings due to payment of
regular premium. Life insurance provides a mode of investment. It develops a habit of
saving money by paying premium. The insured get the lump sum amount at the maturity
of the contract. Thus life insurance encourages savings.

4. Promotes economic growth:

Insurance generates significant impact on the economy by mobilizing domestic savings.
Insurance turn accumulated capital into productive investments. Insurance enables to
mitigate loss, financial stability and promotes trade and commerce activities those results
into economic growth and development. Thus, insurance plays a crucial role in
sustainable growth of an economy.
5. Medical support:
A medical insurance considered essential in managing risk in health. Anyone can be a
victim of critical illness unexpectedly. And rising medical expense is of great concern.
Medical Insurance is one of the insurance policies that cater for different type of health
risks. The insured gets a medical support in case of medical insurance policy.

6. Spreading of risk:
Insurance facilitates spreading of risk from the insured to the insurer. The basic principle
of insurance is to spread risk among a large number of people. A large number of persons
get insurance policies and pay premium to the insurer. Whenever a loss occurs, it is
compensated out of funds of the insurer.

7. Source of collecting funds:

Large funds are collected by the way of premium. These funds are utilised in the
industrial development of a country, which accelerates the economic growth.

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 Employment opportunities are increased by such big investments. Thus, insurance has
become an important source of capital formation.

1.6 PRINCIPLES OF INSURANCE

1. Nature of contract:
Nature of contract is a fundamental principle of insurance contract. An insurance contract
comes into existence when one party makes an offer or proposal of a contract and the other
party accepts the proposal. A contract should be simple to be a valid contract. The person
entering into a contract should enter with his free consent.

2. Principal of utmost good faith:

Under this insurance contract both the parties should have faith over each other. As a client
it is the duty of the insured to disclose all the facts to the insurance company. Any fraud or
misrepresentation of facts can result into cancellation of the contract.

3. Principle of Insurable interest:

Under this principle of insurance, the insured must have interest in the subject matter of
the insurance. Absence of insurance makes the contract null and void. If there is no
insurable interest, an insurance company will not issue a policy. An insurable interest must
exist at the time of the purchase of the insurance. For example, a creditor has an insurable
interest in the life of a debtor, a person is considered to have an unlimited interest in the
life of their spouse etc.

4. Principle of indemnity:
Indemnity means security or compensation against loss or damage. The principle of
indemnity is such principle of insurance stating that an insured may not be compensated
by the insurance company in an amount exceeding the insured’s economic loss. In type of
insurance the insured would be compensation with the amount equivalent to the actual loss
and not the amount exceeding the loss. This is a regulatory principal. This principle is
observed more strictly in property insurance than in life insurance.

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 The purpose of this principle is to set back the insured to the same financial position that
existed before the loss or damage occurred.

5. Principal of subrogation:
The principle of subrogation enables the insured to claim the amount from the third party
responsible for the loss. It allows the insurer to pursue legal methods to recover the amount
of loss, For example, if you get injured in a road accident, due to reckless driving of a third
party, the insurance company will compensate your loss and will also sue the third party to
recover the money paid as claim.

6. Double insurance:
Double insurance denotes insurance of same subject matter with two different companies
or with the same company under two different policies. Insurance is possible in case of
indemnity contract like fire, marine and property insurance.

Double insurance policy is adopted where the financial position of the insurer is doubtful.
The insured cannot recover more than the actual loss and cannot claim the whole amount
from both the insurers.

7. Principle of proximate cause:

Proximate cause literally means the ‘nearest cause’ or ‘direct cause’. This principle is
applicable when the loss is the result of two or more causes. The proximate cause means;
the most dominant and most effective cause of loss is considered. This principle is
applicable when there are series of causes of damage or loss.

Insurability

Risk which can be insured by private companies typically shares seven common characteristics: [16]

1. Large number of similar exposure units: Since insurance operates through pooling
resources, the majority of insurance policies are provided for individual members of large

13
 classes, allowing insurers to benefit from the law of large numbers in which predicted
losses are similar to the actual losses. Exceptions include Lloyd's of London, which is
famous for insuring the life or health of actors, sports figures, and other famous
individuals. However, all exposures will have particular differences, which may lead to
different premium rates.
2. Definite loss: The loss takes place at a known time, in a known place, and from a known
cause. The classic example is death of an insured person on a life insurance
policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion.
Other types of losses may only be definite in theory. Occupational disease, for instance,
may involve prolonged exposure to injurious conditions where no specific time, place, or
cause is identifiable. Ideally, the time, place, and cause of a loss should be clear enough
that a reasonable person, with sufficient information, could objectively verify all three
elements.
3. Accidental loss: The event that constitutes the trigger of a claim should be fortuitous, or at
least outside the control of the beneficiary of the insurance. The loss should be pure, in the
sense that it results from an event for which there is only the opportunity for cost. Events
that contain speculative elements such as ordinary business risks or even purchasing a
lottery ticket are generally not considered insurable.
4. Large loss: The size of the loss must be meaningful from the perspective of the insured.
Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing
and administering the policy, adjusting losses, and supplying the capital needed to
reasonably assure that the insurer will be able to pay claims. For small losses, these latter
costs may be several times the size of the expected cost of losses. There is hardly any point
in paying such costs unless the protection offered has real value to a buyer.
5. Affordable premium: If the likelihood of an insured event is so high, or the cost of the
event so large, that the resulting premium is large relative to the amount of protection
offered, then it is not likely that the insurance will be purchased, even if on offer.
Furthermore, as the accounting profession formally recognizes in financial accounting
standards, the premium cannot be so large that there is not a reasonable chance of a
significant loss to the insurer. If there is no such chance of loss, then the transaction may
have the form of insurance, but not the substance (see the U.S. Financial Accounting

14
 Standards Board pronouncement number 113: "Accounting and Reporting for
Reinsurance of Short-Duration and Long-Duration Contracts").
6. Calculable loss: There are two elements that must be at least estimable, if not formally
calculable: the probability of loss, and the attendant cost. Probability of loss is generally
an empirical exercise, while cost has more to do with the ability of a reasonable person in
possession of a copy of the insurance policy and a proof of loss associated with a claim
presented under that policy to make a reasonably definite and objective evaluation of the
amount of the loss recoverable as a result of the claim.
7. Limited risk of catastrophically large losses: Insurable losses are
ideally independent and non-catastrophic, meaning that the losses do not happen all at
once and individual losses are not severe enough to bankrupt the insurer; insurers may
prefer to limit their exposure to a loss from a single event to some small portion of their
capital base. Capital constrains insurers' ability to sell earthquake insurance as well as
wind insurance in hurricane zones. In the United States, flood risk is insured by the federal
government. In commercial fire insurance, it is possible to find single properties whose
total exposed value is well in excess of any individual insurer's capital constraint. Such
properties are generally shared among several insurers or are insured by a single insurer
who syndicates the risk into the reinsurance market.

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1.7 THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

The Insurance Regulatory and Development Authority of India (IRDAI) is an

autonomous, statutory body tasked with regulating and promoting the insurance and re-
insurance industries in India. It was constituted by the Insurance Regulatory and
Development Authority Act, 1999, a 0Act of Parliament passed by the Government of
India. The agency's headquarters are in Hyderabad, Telangana, where it moved
from Delhi in 2001. IRDAI is a 10-member body including the chairman, five full-time
and four part-time members appointed by the government of India.

The Malhotra Committee felt the need to provide greater autonomy to insurance companies
in order to improve their performance and enable them to act as independent companies
with economic motives. For this purpose, it had proposed setting up an independent
regulatory body- The Insurance Regulatory and Development Authority. Based on the
Malhotra committee report in April 2000 IRDA was incorporated. Since being set up as an
independent statutory body the IRDA has put in a framework of globally compatible
regulations. Section 14 of the IRDA Act 1999, lays the duties, power and functions of the

16
authority. the authority shall have the duty to regulate, promote and ensure orderly growth
of the insurance business and reinsurance business.

1.8 TYPES OF INSURANCE

Insurance occupies an important place in the modern world because of the risk, which can
be insured, in number and extent owing to the growing complexity of present day economic
system. The different type of insurance has come about by practice within insurance
companies, and by the influence of legislation controlling the transacting of insurance
business, broadly, insurance may be classified into the following categories:

1. Classification from business point of view

a) Life insurance, and

b) General insurance

2. Classification on the basis of nature of insurance

a) Life insurance
b) Fire insurance
c) Marine insurance
d) Social insurance, and
e) Miscellaneous insurance

3. Classification from risk point of view

a) Personal insurance
b) Property insurance
c) Liability insurance
d) Fidelity general insurance

17
1.9 INTRODUCTION TO LIFE INSURANCE

Life insurance or life assurance, especially in the Commonwealth, is a contract

between an insurance policy holder and an insurer or assurer, where the insurer promises
to pay a designated beneficiary a sum of money in exchange for a premium, upon the death
of an insured person. Depending on the contract, other events such as terminal
illness or critical illness can also trigger payment. The policy holder typically pays a
premium, either regularly or as one lump sum. Other expenses can also be included in the
benefits.

Life policies are legal contracts and the terms of the contract describe the limitations of
the insured events. Specific exclusions are often written into the contract to limit the
liability of the insurer; common examples are claims relating to suicide, fraud, war, riot,
and civil commotion.

Modern life insurance policies were established in the early 18th 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

18
Society because of his advanced age. After that he was unsuccessful in his attempts at the
procuring a charter from the government before his death in 1757.

1.10 CONTRACT TERMS

Special exclusions may apply, such as suicide clauses, whereby the policy becomes null
and void if the insured commits suicide within a specified time (usually two years after the
purchase date; some states provide a statutory one-year suicide clause). Any
misrepresentations by the insured on the application may also be grounds for nullification.
Most US states specify a maximum contestability period, often no more than two years.
Only if the insured dies within this period will the insurer have a legal right to contest the
claim on the basis of misrepresentation and request additional information before deciding
whether to pay or deny the claim.

The face amount of the policy is the initial amount that the policy will pay at the death
of the insured or when the policy matures, although the actual death benefit can provide
for greater or lesser than the face amount. The policy matures when the insured dies or
reaches a specified age (such as 100 years old).

COSTS, INSURABILITY, AND UNDERWRITING

The insurer (the life insurance company) calculates the policy prices or premiums to fund
claims, administrative costs, and profit. The cost of insurance is determined using mortality
tables calculated by actuaries. Actuaries are professionals who employ actuarial science,
which is based on mathematics. Mortality tables are statistically based tables showing
expected annual mortality rates. It is possible to derive life expectancy estimates from these
mortality assumptions. Such estimates can be important in taxation regulation.

19
 1.11 TYPES OF LIFE INSURANCE:

 Term life insurance

Term assurance provides life insurance coverage for a specified term. The policy does
not accumulate cash value. Term is generally considered "pure" insurance, where the
premium buys protection in the event of death and nothing else.

Term insurance is significantly less expensive than an equivalent permanent policy. Term
allows individuals with limited income to provide sufficient coverage for their family.
Purchasers of term insurance should be aware that premiums for new insurance beyond the
policy term will be higher because of advanced age. Future insurance needs beyond the
policy term may be provided for by saving to provide for increased term premiums or by
decreasing insurance needs

There are three key factors to be considered in term insurance:

1. Face amount (protection or death benefit),

2. Premium to be paid (cost to the insured), and
3. Length of coverage (term).

Annual renewable term is a one-year policy, but the insurance company guarantees it will
issue a policy of an equal or lesser amount regardless of the insurability of the applicant,
and with a premium set for the applicant's age at that time. Level premium term can be
purchased in 5, 10, 15, 20, 25, 30 or 35-year terms. The premium and death benefit stays
level during these terms.

Mortgage life insurance insures a loan secured by real property and usually features a
level premium amount for a declining policy face value because what is insured is the
principal and interest outstanding on a mortgage that is constantly being reduced by
mortgage payments. The face amount of the policy is always the amount of the principal

20
 and interest outstanding that are paid should the applicant die before the final installment
is paid.

 Group life insurance

The Group life insurance (it is also known as wholesale life insurance or institutional
life insurance) is term insurance covering a group of people, usually employees of a
company, members of a union or association, or members of a pension or
superannuation fund. Individual proof of insurability is not normally a consideration in its
underwriting. Rather, the underwriter considers the size, turnover, and financial strength
of the group. Contract provisions will attempt to exclude the possibility of adverse
selection. Group life insurance often allows members exiting the group to maintain their
coverage by buying individual coverage. The underwriting is carried out for the whole
group instead of individuals.

 Permanent life insurance

Permanent life insurance is life insurance that covers the remaining lifetime of the
insured. A permanent insurance policy accumulates a cash value up to its date of
maturation. The owner can access the money in the cash value by withdrawing money,
borrowing the cash value, or surrendering the policy and receiving the surrender value.

The three basic types of permanent insurance are whole life, universal life,
and endowment.

1. Whole life insurance

Whole life insurance provides lifetime coverage for a set premium. Level premium
whole life insurance provides lifetime death benefit coverage for a level premium. Whole
life premiums are much higher than term insurance premiums, but because term insurance
premiums rise with increasing age of the insured, the cumulative value of all premiums
paid under whole and term policies are roughly equal if policies are maintained to average
life expectancy.

21
2. Universal life coverage

Universal life insurance (UL) is a relatively new insurance product, intended to combine
permanent insurance coverage with greater flexibility in premium payments, along with
the potential for greater growth of cash values. There are several types of universal life
insurance policies, including interest- sensitive (also known as "traditional fixed universal
life insurance"), variable universal life (VUL), guaranteed death benefit, and equity-
indexed universal life insurance.

Universal life insurance policies have cash values. Paid-in premiums increase their cash
values; administrative and other costs reduce their cash values.

3. Endowment policy

Endowments are policies which will pay a lump sum at either the death of the insured or
after a set term, called the policy's maturity. Endowments require higher premiums than
whole life and universal life policies because of the additional lump sum benefit at the
maturity of the policy. Endowments are not technically permanent insurance because they
do not cover the insured's lifetime; however they are commonly included in this class
because of their high premiums.

 Money back policy

A money back policy is a variant of the endowment plan. It gives periodic payments over
the policy term. To that end, a portion of the sum assured is paid out at regular intervals. If
the policy holder survives the term, he gets the balance sum assured. In case of death over
the policy term, the beneficiary gets the full sum assured.

 Accidental death

Accidental death insurance is a type of limited life insurance that is designed to cover the
insured should they die as the result of an accident. "Accidents" run the gamut from
abrasions to catastrophes but normally do not include deaths resulting from non-accident-
related health problems or suicide. Because they only cover accidents, these policies are
much less expensive than other life insurance policies. Such insurance policy can also be
an accidental death and dismemberment insurance or AD&D.

22
 Senior and pre-need products

Insurance companies have in recent years developed products for niche markets, most
notably targeting seniors in an aging population. These are often low to moderate face
value whole life insurance policies, allowing senior citizens to purchase affordable
insurance later in life. This may also be marketed as final expense insurance and usually
have death benefits between $2,000 and $40,000. One reason for their popularity is that
they only require answers to simple "yes" or "no" questions, while most policies require a
medical exam to qualify. As with other policy types, the range of premiums can vary widely
and should be scrutinized prior to purchase, as should the reliability of the companies.

4. ULIP ( Unit Linked Insurance Plan)

In insurance unit linked insurance plan the investments are made are to subject risks
associated with the capital markets. ULIP is a life insurance product, which provides cover
for the policy holder along with investment options to invest in any number of qualified
investments such as stocks, bonds or mutual funds. As a single integrated plan, the
investment part and the protection part can be managed according to specific needs and
choices.

23
1.12 MARKETING MIX

The term "marketing-mix" was first coined by Neil Borden, the president of the American
Marketing Association in 1953. It is still used today to make important decisions that lead
to the execution of a marketing plan. The various approaches that are used have evolved
over time, especially with the increased use of technology.

The marketing mix is a business tool used in marketing and by marketers. The marketing
mix is often crucial when determining a product or brand's offer, and is often associated
with the

Four P's: price, product, promotion, and place.

In service marketing, however, the four Ps are expanded to the seven P's or Seven P's to
address the different nature of services.

McCarthy's four Ps

Category Definition

Product A product is seen as an item that satisfies what a

consumer demands. It is a tangible good or an
intangible service. Every product is subject to a life-
cycle including a growth phase followed by a
maturity phase and finally an eventual period of
decline as sales fall. Marketers must do careful
research on how long the life cycle of the product
they are marketing is likely to be and focus their
attention on different challenges that arise as the
product moves. The marketer must also consider
the product mix The marketer must also consider
product development strategies.

24
Price The amount a customer pays for the product. The
price is very important as it determines the
company's profit and hence, survival. The marketer
should set a price that complements the other
elements of the marketing mix.

When setting a price, the marketer must be aware of

the customer perceived value for the product. Three
basic pricing strategies are: market
skimming pricing, market penetration pricing and
neutral pricing. The 'reference value' and the
'differential value' must be taken into account.

Promotion All of the methods of communication that a marketer

may use to provide information to different parties
about the product. Promotion comprises elements
such as: advertising, public relations, and as well
as sales organization and sales promotion.

Advertising covers any communication that is paid

for, from cinema commercials, radio and Internet
advertisements through print media and billboards.
When Our product likes by customers at that time
‘mouth publicity’ comes into a picture. This is the
proof of success.

Distribution Refers to providing the product at a place which is

convenient for consumers to access. Franchising can
(Place)
be used by the marketer to complement the other
aspects of the marketing mix.

25
The "seven Ps" is a marketing model that adds to the aforementioned four Ps, including
"physical evidence", "people", and "process" It is used when the relevant product is a
service, not merely a physical good.

Category Definition

Physical The evidence which shows that a service was

evidence performed, such as the delivery packaging for the
item delivered by a delivery service, or a scar left by
a surgeon. This reminds or reassures the consumer
that the service took place, positively or negatively.

People The employees that execute the service, chiefly

concerning the manner and skill in which they do so.

Process The processes and systems within the organization

that affect the execution of its service, such as job
queuing or query handling.

In the 1990s, the concept of 4C’s was introduced as a commodity, cost, communication,
and channel.
In 2012, a new four P’s theory was proposed with people, process, program and
performance.

26
 THE ESSENCE OF THE INSURANCE MARKETING
Marketing is a philosophy of the underwriter, determining the strategy and tactics of his
activities in the conditions terms of competition. Marketing simultaneously combines
market research, new product development, distribution, advertising, promotion, product
improvement and so on.

The Insurance service is the specific goods the sale of which is quite difficult. The
central part of the underwriter’s marketing is sales activity, oriented to the sale or the
insurance services promotion from the underwriter to the insurer .

ABBREVIATION

UL Universal Life Insurance

VUL Variable Universal Life

ULIP Unit Linked Insurance Plan

AD&D Accident Death and Dismemberment Insurance

LIC Life Insurance Corporation of India Ltd.

IRDA Insurance Regulatory and Development

Authority

27
 CHAPTER 2

RESEARCH METHODOLOGY

Research Design : Descriptive in nature

Research
procedure Survey
: method

Research
instrument A
: well designed and structured Questionnaire

Sampling plan

Sample Size 30
: customers

Data Analysis

Data were collected from primary and secondary

Data Sources sources
:

It was collected through Questionnaires, schedule,

Primary data by.
:

direct Contact methods and through meetings

The secondary data were gathered from company

Secondary data records
:

OBJECTIVES

 To study the marketing methods, techniques and strategies for insurance.

 To know the exact ways to enlarge the business by marketing of insurance.
 To study marketing of insurance of Bajaj Alliance.
 To study how insurance companies are launching different campaigns to market their
product.

28
 To know the present scenario about the insurance companies into the market.
 To study customer awareness about insurance policies as well as their potentials towards
the insurance product.

SCOPE & UTILITIES

In the present-day insurance marketing scenario, the LIC and GIC play the role of an
encouraging and supporting force to the entrepreneurs, corporate sector, investors,
Government, Co-operatives, individuals and general public.

With the increase in income and exponential growth of purchasing power as well as
household savings, the insurance sector in India would introduce emerging trends like
product innovation, multi-distribution, better claims management and regulatory trends in
the Indian market.

The government also strives hard to provide insurance to individuals in a below poverty
line by introducing schemes like the

 Pradhan Mantri Suraksha Bima Yojana (PMSBY),

 Rashtriya Swasthya Bima Yojana (RSBY)
LIMITATIONS OF THE STUDY

 The study was limited to the insured population of Thane.

 The researcher approached respondents with the help of insurance agents and personal
contacts therefore the sample respondents were approached from limited area.

 Willingness of the respondents for providing necessary information for the research may
have influenced the results.

 The sample size was large and data was selected randomly therefore easily available
policyholders were approached by the researcher.

29
 CHAPTER 3

LITERATURE REVIEW

Edward K. Strong Jr (1922), in the invaluable book, “The Psychology of Selling Life
Insurance”, illustrate the psychological principles underlying selling in as non-technical
manner as possible, which are directly applied to selling.

John Alford Stevenson (1922), in his invaluable book, “Selling Life Insurance” presents
a systematic approach to the process of selling insurance in a lucid style. The
comprehensive process of buying, starting from the customer to closing sales inclusive of
the basic salesmanship qualities, and customer interview techniques, is illustrated.

Harris (1944) in his book, “Life Insurance Salesmanship”, finds that insurance selling is
an art, which is acquired by one through experience and exposure but not through teaching.
According to him, planning is essential for an agent to succeed in the job of selling
insurance.

David L. Bickelhaupt (1967), in the article “Trends and Innovations in the Marketing of
Insurance”, explores some of the trends in service marketing as they relate to strategic
vision, operational and organizational changes, and marketing tactics. In terms of strategic
vision, examples are provided of companies that have successfully redefined their
businesses as broader systems of services built on competitive core competencies. It then
goes on to describe the need for a market-driven culture, the use of training and incentives
in making the transition, the role of product management in enabling a crossfunctional
perspective necessary for quality service to become a reality, and the significance of
"mood" or climate. Finally, it presents comments on new service development,
segmentation, database marketing, channels, and advertising, as these relate to marketing
in the service sector.

Desai (1973) in his book, “Life Insurance in India – its history and dimensions of growth”,
explains and elaborates the historical background of the life insurance industry in India and
its growth since nationalization.

30
 CHAPTER 4

4.1 PROFILE OF BAJAJ ALLIANZ LIFE INSURANCE:

Bajaj Allianz Life Insurance is led by Anuj Agarwal, who is the Managing director and
Chief Executive Office of the company. It is a joint venture between Bajaj Finserv Limited
(formerly part of Bajaj Auto Limited) owned by the Bajaj Group of India and Allianz SE,
a European financial services company. Both enjoy a reputation of expertise, stability and
strength. This joint venture Company incorporates global expertise with local experience.
The comprehensive, innovative solutions combine the technical expertise and experience
of Allianz SE, and in-depth market knowledge and goodwill of "Bajaj" brand in India.
Competitive pricing and quick honest response have earned the Company the customer's
trust and market leadership in a very short time. Being one of the private insurance
companies in India, it offers insurance products for financial planning and security.

Bajaj Allianz Life Insurance began operations on 12 March 2001 and today has a pan-
India presence of 759 branches. It is headquartered in Pune, India. Bajaj Allianz Life
Insurance received the Insurance Regulatory and Development Authority (IRDA)
certificate of Registration on 3 August 2001 to conduct Life Insurance business in India.

At Bajaj Allianz, customer delight is our guiding principle. Ensuring world class solutions
by offering customized products with transparent benefits supported by the best technology
is our business philosophy.

Bajaj Allianz Life Insurance has developed insurance solutions that cater to every segment
and age-income profiles. Currently Bajaj Allianz has a strong product portfolio and caters
to all kinds of customer needs from ULIPs to Child plans, from group insurance to health
insurance.

Bajaj Allianz offers exciting opportunities to learn contribute and build careers. As a
leading name in the fast-paced insurance sector, we are constantly growing and are always
in search of talent across all levels. If you want a chance to shine, grow, work on

31
challenging assignments & make a long-term career with a leader in the private insurance
sector, check out the career opportunities we offer.

We are the market leaders in the private insurance sector. At Bajaj Allianz Insurance we
believe in investing in people and offer them opportunities to grow with the organization
thus leading to their accelerated career growth. People who work with us are from diverse
fields & carry rich experience with them. This drives us to encourage an entrepreneurial
environment, an environment to create & experiment new ideas to see them at work. What
makes us unique is the work culture that we offer which is open to sharing ideas, dynamic,
non-bureaucratic and gives down the line empowerment.

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj
Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both
enjoy a reputation of expertise, stability and strength.
Bajaj Allianz received the Insurance Regulatory and Development Authority (IRDA)
certificate of Registration on 2nd May, 2001 to conduct various businesses (including
Health Insurance business) in India. The Company has an authorized and paid up capital
of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by
Allianz, SE.
As on 31st March 2017, Bajaj Allianz continues to be one of the most financially robust
insurers in the industry by maintaining its growth as well as profitability. The company
has made a profit before tax of Rs. 1,078 crores and emerged as the most profitable
insurer recording a profit after tax of Rs. 728 crores. The company reported a GWP of
Rs. 7,687 crores, which has grown by 30.3% compared to the last fiscal year.

32
 4.2 VISION & MISSION

VISION

 To be the first-choice insurer for customers

 To be the preferred employer for staff in the insurance industry

 To be the number one insurer for creating shareholder value

MISSION

 As a responsible, customer focused market leader, we will strive to understand the

insurance needs of the consumers and translate it into affordable products that deliver value
for money.
 A Partnership Based on Synergy

Bajaj Allianz offers technical excellence in all areas of General and Health Insurance, as
well as Risk Management. This partnership successfully combines Bajaj Finserv's in-
depth understanding of the local market and extensive distribution network with the
global experience and technical expertise of the Allianz Group. As a registered Indian
Insurance Company and a capital base of Rs. 110 crores, the company is fully licensed to
underwrite all lines of insurance business including health insurance.

33
 4.3 AWARDS & RECOGNITIONS:

2011

 SKOCH Financial Inclusion Award 2011.

 Best contribution in investor education and category enhancement of the year' in insurance

at the Bloomberg UTV Financial Leadership Awards 2011.

 Best Investor Education and Category Enhancement 2011

 Best Utilization Of Information Technology 2011

2012

 Best life insurance provider (runner-up) at the outlook money award 2012

 Amongst The 50 Top Services Brands 2012

 SKOCH Financial Inclusion Award

2013

 Bajaj Allianz Football World Trip & Junior Football Camp 2013 (Bajaj Allianz Life

Insurance Company Ltd.)

 SKOCH Renaissance Award 2013.

 Best Insurance Company in Private Sector at IPE Banking Financial Services and

Insurance (BFSI)
 SKOCH Financial Inclusion- Organization of The Year 2013

2014

 Best Life Insurance Company - Private Sector | LOKMAT BFSI Awards 2014.

 SKOCH Financial Inclusion and Deepening Award 2014.

 BFSI VISION CSR AWARDS 2014

 Mobbys Award 2014- Best use of social media in marketing

34
 Mobbys Award 2014- Best multi-channel integrated campaign - for "Junior Football Camp

& Munich Magic"

 Indian Insurance Award 2014- claim services company of the year 2014

 Best Life Insurance Company - Private Sector | LOKMAT BFSI Awards 2014

2015

 ET Most Promising Brand 2015.

 6th CMO Asia Best Use of Social Media in Marketing Award 2015.

 6th CMO Asia Brand Excellence in BFSI Sector Award 2015.

 Brand Excellence in BFSI Sector Award 2015.

 SKOCH Financial Inclusion and Deepening Award 2015.

 National Awards for Marketing Excellence 2015 - Marketing Excellence in BFSI Sector.

 National Awards for Marketing Excellence 2015 - Best Use of Social Media in Marketing.

 Global Marketing Excellence Awards 2015.

 World's Greatest Brands and Leaders 2015 in Asia & GCC.

 ACEF Integrated Marketing Communication Award 2015 - 1stRunner Up

 ACEF Most Admired Brand Award 2015 - 1st Runner Up

 Best Life Insurance Company (Private Sector) – 2015

2016

 SKOCH Achiever’s Award 2016 for Best Online Business Model, Best Micro Insurance,

Best Education and Training, and Best Customer Service in the BFSI sector at the 46th
SKOCH summit.
 Employee Engagement Strategy and HR Innovation through Technology Award at the

Indian Human Resources Conventions Awards 2016.

 Best ecommerce Website in a Specialized Category at the Ink spell - Drivers of Digital

Awards 2016.

35
 Brand Excellence in Banking, Finance & Insurance Sector and the best use of Social
Media in Marketing Awards at the 7th CMO Asia Awards for Excellence in Branding &
Marketing 2016 in Singapore.
 ICAI Plaque Award for excellence in Financial Reporting for the year 2015-16

2017

 Golden Globe Tigers Award 2017 for Best Life Insurance Company of the year and Claims
Initiative of the year.
 BBC Knowledge Award for Best Social Media Marketing Campaign (#IfsOfLife) at BBC
Knowledge National Digital Marketing Conference and Awards held in February 2017.
 ‘Best Life Insurance Company’ and ‘Company with Highest Claim Settlement’ Award at the ABP
News BFSI Awards, 2017.
 Premium Brand Award 2017 by The Economic Times World HRD Congress & Employer
Branding Institute Human Resources Leadership Award 2016-17.

36
 4.4 PRODUCTS & SERVICES:

Bajaj Allianz Life Insurance offers a range of services. The company operates through
Participating, Non-Participating, and Linked segments. Its portfolio of services includes:

 Unit Linked Insurance Plans (ULIPs)

 Term Insurance

 Child Insurance Plans

 Saving Solutions Insurance Plans

 Endowment Plans

 Retirement Plans

 Saving Plans

 Group Life Insurance

 Individual Life Insurance Plans

 Investment Insurance Plans

37
 4.5 MARKETING MIX OF LIFE INSURANCE BUSINESS
 Product and the Product mix

A product means what we produce. If we produce goods means tangible products and when
we produce or generate services it means intangible products. The insurance organization
generates services in different forms. A product is both what a seller has to sell and a buyer
has to buy. Thus, any enterprise that has something to sell, tangible or intangible is selling
a product.

Insurance company sells services and therefore services are their products. Thus, a product
is also called bundle of utilities. Consisting of various product features and accompanying
services. When a person or an organization buys an insurance policy from the insurance
company, he not only buys a policy but along with it the assistance and advice of the agent,
the prestige of the insurance company and the facilities of claims and compensation.

The life insurance corporation has intensified efforts to promote urban savings, but as far
as rural savings are concerned, it is not that impressive.

 Pricing

In the insurance business the pricing decisions are concerned with:

1. The premium charged against the policies

2. Interest charged for defaulting the payment of premium and credit facilities.
3. Commissions charged for underwriting and consultancy activities.

The strategies’ may be high or low pricing keeping in view the level or standard of
customers or the policy holders. The pricing in insurance is in the form of premium rates
under a life insurance plans are mortality, expense and interest. The premium rates are
revised if there are any significant changes in any of these factors.

1. Mortality: when deciding upon the pricing strategy the average rate of mortality is one of
the main considrations.in a country like South Africa the threat to life is very important as
it is played by host of diseases.

38
2. Expenses: the cost of processing, commissions to agents, reinsurance companies as well
as registration are all incorporated into the cost of installments and premium sum and forms
of the integral part of the pricing strategy.
3. Interest: the rate of interest is one of the major factors which determines peoples
willingness to invest in insurance.
 Promotion

The insurance services depend on effective promotional measures. The magnitude of

dependent in case of insurance services is high. Creation of awareness is found very much
instrumental in the generation of impulse buying. In a country like India the rate of
illiteracy is very high and the rural economy has dominance in the national economy. They
also have to be given proper training in order to create impulse buying.

The following are the different components of promotion:

1. Advertising: advertising is the paid form of persuasive communication, which is found

important to promote the insurance business. Advertising is now treated as a profession
and the advertising professional bear the responsibility of making the advertisement
slogans, appeals, campaigns, creative so that the process of sensitizing the prospects is
found proactive. Advertising can be done through telecast media, broadcast media and
print media. Telecast media is more effective in the sensitizing process.
The broadcast media can also be used for that very purpose. We have a big transmission
network and well developed system, which insurance organization can use.

2. Publicity: the advertising may be insensitive, but we find the publicity is more effective
since the messages, views, opinions, facts, figures are published by media. It is a device to
promote business without making any payment, and therefore we also call it an unpaid
form of persuasive communication. They may be persuaded to write something in the
favored of the insurance company by making a story or in the form of a news cover.

39
3. Sales promotion: in the insurance business the incentive to the policy holders or to the
agents or even to the insurance personal for promoting the business are the sales promotion
tools. Since the business environment is likely to be more competitive, it is necessary that
the insurance companies offer innovative tools of sales promotion been order to increase
their business

4. Personal selling: personal selling occupies an important place in the promotion mix. This
is because the insurance business is substantially influenced by the instrumentality of
agents and the rural career agents. If they are aware of the art informing, sensing and
persuading the potential policy holders, the task of insurance organization. Can be
simplified considerably.
Personal selling is the based on the excellence of an individual’s communication skills.
Arranging kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and
publicity drive through the mobile publicity van units would be effective in creating the
impulse buying and the rural prospects would be easily transformed into actual
policyholders.
 Process:
The process should be customer friendly in insurance industry. The speed and accuracy of
payment is of great importance. The processing methods should be easy and convenient to
the customers. Installment schemes should be streamlined to cater to the ever growing
demands of the customers. IT and data warehousing will smoothen the process flow.
Information Technology will help in serving large number of customer efficiency and bring
down overheads. Technology can either complement or supplement the channels of
distribution cost effectively. It can also help to improve customer service levels. The use
of data warehousing management and mining will help to find out the profitability and
potential of various customers and product segments.

40
 People:
Understanding the customer better allows designing appropriate products. Being a service
industry, which involves high levels of people’s interaction, it is very important to use this
resource efficiently in order to satisfy customers. Training development and strong
relationships with intermediaries are the key areas to be kept under consideration.
Training the employees, use of IT for efficient both at the staff and agent level is one of
the important areas to look into.
 Physical Distribution:
Distribution is a key determinant of success for all insurance companies. Today the
nationalized insurers have a large reach and presence in India. New entrants cannot
duplicate such a network. Building a new distribution network is very expensive and time
consuming. If the insurer is willing to take advantage of India’s large population and reach
a profitable mass of customers then new distribution avenues and alliance will be
necessary. This is also true for nationalized corporations which have to find fresh avenues
to reach new and existing customers.
Initially insurance was looked upon as a complex product with a high advice and service
component. Buyers prefer face-to-face interaction and they place a high premium and
brand names and reliability.
The financial services industries have successfully used remote distribution channels such
as telephone or internet so as to reach more customers, avoid intermediaries, bring down
overheads and increase profitability. A good example is UK insurer direct line. It relied on
telephone sales and low pricing. Today it is one of the largest motor insurance operators.

41
4.6 ACHIEVEMENTS

For the 11thconsecutive year, Bajaj Allianz General Insurance has received iAAA
rating from ICRA, indicating the highest claims paying ability and a fundamentally strong
position in the industry. The first accreditation was received in 2005-06 and the company
has maintained this rating since then. The Company has embraced digitalization as a
primary enabler and has been working continuously on automation and digitization of its
service offerings. It offers real time solutions to its customers and partner via mobile
applications and dedicated portals. The industry first initiatives by the company
like cashless claim settlements, in-house health management team (HAT) and image-
based policy as well as claim processing, digital offices and mobile applications such
as Eezee Tab and Insurance Wallet have set a benchmark in the industry. It is the first
insurance company in the country to lay the foundation for usage-based insurance
through its telematics offering, Drive Smart.
The company was recently awarded the Technological Initiative Award for first-ever,
Telematics based motor insurance service Drive Smart and the Digital Insurer Award at
the prestigious 21st Asia Insurance Industry Awards 2017. Bajaj Allianz GIC was also
conferred with Private Sector General Insurance Company of the Year at Fintelekt
Insurance Awards 2017 and is the only Asian Insurance company to be honored by
prestigious Insurance Asia Awards 2016. Company has also received accolades for Best
Non-Life Insurance provider and Best Motor Insurance provider at very prominent
Outlook Money Awards 2016. The brand has been recognized as one of the most trusted
general insurance brand in The Brand Trust Report India Study 2016 covering 20,000
brands across 16 cities and The Economic Times Best Brands.
Bajaj Allianz General Insurance was recognized as the Aon Best Employer 2016
highlighting the company's excellence in promoting a transparent culture and healthy work
environment along with designing employee friendly policies. The award was an outcome
of the Aon Best Employers 2016 Study which was conducted in partnership with Business
world and Bloomberg TV

42
43
 CHAPTER 5
DATA ANALYSIS AND INTERPRETATION
1. Awareness about various insurances provided by Bajaj Allianz

Row No of Percentage
Labels Respondants

YES 28 95

NO 2 5

TOTAL 30 100

95

YES NO

INTERPRETATION

As per the above diagram almost 95% of customers are aware about various insurancec
provided by Bajaj Allianz, whereas only 5% are unaware about the same.

44
2. How you came to know about various insurances provided by Bajaj Allianz?

Row Labels No of Percentage

Respondants

Tv 6 20

Newspaper 12 40

Friends/Relatives 9 30

Other 3 10

Total 30

10
20

30

40

TV NEWS PAPER FRIENDS/RELATIVES OTHER

INTERPRETATION

20 % of the respondents known about various insurances provided by Bajaj Allianz

through TV (Advertisement), 40 % of the respondents known through news papers, 30 %
of the respondents known these insurances through friends/Relatives and remaining 10%
through others.

45
3. What are attributes that motivated you to purchase insurance policies from Bajaj Allianz?

Row Labels No of Percentage

Respondants

Low Premium 6 20

Claim Settlement Ratio 9 30

Service 3 10

Products 12 40

Total 30 100

20

40

30

10

LOW PREMIUM CLAIM SETTLEMENT RATIO SERVICE PRODUCTS

INTERPRETATION

According to above analysis about 20% of respondands are motivated to purchase

insurance policies of Bajaj Allianz due to low premium, 30% respondants are motivated
due to claim settlement ratio, 10% are motivated by services provided by Bajaj Allianz
whereas 40% respondants are motivated by their products

46
4. How is procedure to purchase policy from Bajaj Allianz?

Row Labels No of Percentage

Respondants

Lenthy and Complicated 6 10

Complicated 9 10

Easy but lenthy 3 50 5.

Easy 12 30

Total 30 100

10

30 10

50

LENTHY AND COMPLICATED COMPLICATED

EASY BUT LENTHY EASY BUT LENTHY

INTERPRETATION

According to 10% of respondants procedure to purchase Bajaj Allianz policies are lenthy
and complicated, whereas 10% respondants think that the procedure is
complicated.Similarly according to 50% of respondants procedures are easy but lenthy
whereas 30% respondants think procedures are easy.

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5.What do you think about services provided by Bajaj Allianz?

. Row Labels No of Percentage

Respondants

Excellent 21 70

Good 6 20

Average 3 10

Poor 0 0

Total 30 100

10

20

70

EXCELLENT GOOD AVERAGE POOR

INERPRETATION

As per above analysis 70% respondants think that services provided by Bajaj Allianz are
excellent,20% respondants think services provided are good, 10% respondants think
services provided are average whereas no respondant think that services provided are poor.

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6.Do you think premiums charged by Bajaj Allianz are too expensive?

Row No of Percentage
Labels Respondants

Yes 12 40

No 18 60

Total 30 100

3.2

40

YES NO

INERPRETATION

40% of respondants are of view that premiums charged by Bajaj Allianz are too expensive,
whereas 60% respondants think that premiums charged by Bajaj Allianz are too expensive.

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7.How are responses provided by Bajaj Allianz on customer queries?

Row Labels No of Percentage

Respondants

Prompt and perfect 21 70

Descriptive 6 20

Satisfying 3 10

Dissatisfying 0 0

Total 30 100

10

20

70

PROMPT AND PERFECT DESCRIPTIVE SATISFYING DISSATISFYING

INERPRETATION

70 % of the respondents said that they found the query is solved Promptly and perfectly,
20 % of the respondents said that query is solved safely and 20 % of the respondents said
that they found the query is solved in condition

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8.Do you think Bajaj Allianz has better risk cover than its competitors?
Row Labels No of Percentage
Respondants

YES 27 90

Can improve 3 10

Total 30 100

10

90

YES CAN IMPROVE

INERPRETATION

As per above analysis 90% of respondants are of view that Bajaj Allianz has better risk
cover than its competitors, whereas 10% respondants are of view that risk cover can be
improved.

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9.Will you recommend Bajaj Allianz policies to others?

Row Labels No of Percentage

Respondants

Maybe 3 10

Sometimes 6 20

Never 0 0

Always 21 70

Total 30 100

10

20

0
70

MAY BE SOMETIMES NEVER ALWAYS

INERPRETATION

10 % of the respondents told that they may recommend Bajaj Allianz policies to others.
20%of the respondents told that they will sometimes recommend Bajaj Allianz policies to
others, 70% respondants are of view that they will always recommend Bajaj Allianz
policies to others.

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10. Would you agree to continue your relationship with Bajaj Allianz ?

Row Labels No of Percentage

Respondants

Agree 27 90

Niether Agree nor Disagree 3 10

Total 30 100

10

90

AGREE NIETHER AGREE NOR DISAGREE DISAGREE

INERPRETATION

90% of respondants are willing to continue their relationship with Bajaj Allianz, 10% of
respondants are confused hence they niether agree nor disagree to maintain their
relationship with Bajaj Allianz.

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 CHAPTER 6

FINDINGS

1. Insurance is one of the basic necessity of investment without which financial planning is
not completed.

2. Customers with long term relationships are more comfortable with services, procedures
and methods. This helps to reduce operating cost.

3. More awareness and education about various policies and services of insurance companies
and how are they beneficial.

4. By using proper marketing mix as per the requirements and need of the consumers you can
promote your product in an appropriate manner.

5. Bajaj Allianz Company is well established in the market.

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 CHAPTER 7

CONCLUSION

 Nowadays almost people are aware about insurance policies. But still so many people have
not attempted to buy a single policy. An available insurance policy covers all the necessary
risk and related future circumstances but still people hesitate to get that policies and new
schemes due to lack of trust.

 So while advertising & marketing, an insurance company has to present very crystal clear
and fair picture of product or the policy.

 While advertising and marketing the product rather than forcing people towards they
should be made aware about policy and major benefits to purchase the same.

 For success and survival of insurance company they should maintain good relationships
with customers in order to maintain and increase current client base.

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 CHAPTER 8

SUGGESSIONS

 The service provided by Bajaj Allianz should prompt and quick.

 There should be transparency between company and client and Company should provide
all information about the policy to the customers.

 Coverage of all remote areas is necessary other than covering only urban areas. Company
has to create more awareness among the population.

 Company should conduct a survey on yearly basis or as per the reliability of the company
to know the status of the company.

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 CHAPTER 9

BIBLIOGRAPHY

 Marketing in banking and insurance

(Romeo s. macarenas)
 Marketing http://www.marketingteacher.com/marketing-concept-2/

 http://www.investopedia.com/university/insurance/insurance1.asp

 https://en.wikipedia.org/wiki/Life_insurance

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 CHAPTER 10

ANNEXTURE
1. Are you aware about various insurances provided by Bajaj Allianz?
 Yes
 No

2. How you came to know about various insurances provided by Bajaj Allianz?
 TV
 Newspaper
 Friends/Relatives.
 Other

3. What are attributes that motivated you to purchase insurance policies from Bajaj Allianz?
 a.Low Premium
 b. Claim settlement ratio
 c.Service
 d.Products

4.How is procedure to purchase policy from Bajaj Allianz?

 Lenthy and Complicated

 Complicated
 Easy but lenthy
 Easy

5.What do you think about services provided by Bajaj Allianz?

 Excellent
 Good
 Average
 Poor

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 6.Do you think premiums charged by Bajaj Allianz are too expensive?

 Yes
 No

7.How are responses provided by Bajaj Allianz on customer queries?

 Prompt and perfect

 Descriptive
 Satisfying
 Dissatisfying

8.Do you think Bajaj Allianz has better risk cover than its competitors?

 Yes
 No

9.Will you recommend Bajaj Allianz policies to others?

 Maybe
 Sometimes
 Never
 Always

10.Would you agree to continue your relationship with Bajaj Allianz ?

 Agree
 Niether Agree nor Disagree
 Disagree

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