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

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. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Particular Executive Summary Acknowledgement Introduction History of the Insurance About Bharti AXA Life Insurance Products of Bharti AXA Objective of the Study Research Methodology Findings and Data Analysis Conclusion and Suggestions Limitations of the Study SWOT Analysis Annexure (a) More Analysis (b) Bibliography (c) Questionnaire 8 2 9 10 16 19 26 27 28 49-50 52 53 55 74 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. 2. 3. 4. 5. 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. Loss of assets depriver the owner of the expected benefit. Insurance is the content is a mechanism that helps to reduce the adverse consequences due to loss of assets. 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. 2. 3. The possibility of damage to asses caused by any period is the risk that is exposed to. Risk means the possibility of loss or damage that may or may not happen. It is because of the uncertainty about the risk that insurance become important.

10

4. 5.

No uncertainty implies any insurance. 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.

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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.

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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 peoples 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 the premium for these policies. life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of

13

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. 2. 3. 4. 5. 6. Hindustan Co-operative in Kolkata. National Insurance in Kolkata. Bombay Life in Mumbai. New India in Mumbai Jupiter in Mumbai Lakshmi Insurance in New Delhi. It was during the swadeshi movement in the early 20 th 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. companies. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these

14

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.

15

ABOUT US

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.

16

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

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Bharti AXA Life Insurance Growing Presence

Number of cities Number of offices Number of Agents 111 163 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 are1. 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 provide 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.

18

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.

19

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.

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 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.

21

FUNCTION OF IRDA
1. 2. 3. 4. 5. 6. 7. 8. To issue certificate of registration, renew, withdraw, suspend or cancel such registration. To protect the interests of the policyholders/ insured in the mater of insurance contract with the insurance company. To specify requisite qualifications, code of conduct and training for insurance intermediaries and agents. To specify code of conduct for surveyors/loss assessors. To promote efficiency in the conduct of insurance business. To promote and regulate professional organizations connected with the insurance and reinsurance business. To undertake inspection, conduct enquiries and investigations including audit of insurers and insurance business. 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. To regulate investment of funds by the insurance companies.

9. 10.

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Insurance Industry in the year 2000-2001 had 13 new entrants, namely: S.No. Reg. No. Date of Reg. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 101 103 104 105 107 109 110 111 114 116 117 122 127 23.10.2000 23.10.2000 15.11.2000 24.11.2000 10.01.2001 31.01.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001 14.05.2002 06.02.2004 Name of the Company HDFC Standard Life Insurance Company Reliance General Insurance Company Ltd. Max New York Life Insurance Co. Ltd. ICICI Prudential Life Insurance Company Kotak Mahindra Old Mutual Life Insurance Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited ING Vysya Life Insurance Co. Pvt. Ltd. Bajaj Allianz Life Insurance Co. Ltd. MetLife India Insurance Co. Pvt. Ltd. Aviva Life Insurance Co. India Pvt. Ltd. Sahara India Insurance Company Ltd.

23

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.

24

TATA (AIG)
Tata AIG is a joint venture that is backed by the Tata Group Indias 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

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OBJECTIVES OF THE STUDIES

1. 2. 3. 4. 5. To know about the saving habits of consumers. To know the awareness about Insurance Plans and their benefits To know the attitude of individuals towards risk bearing. To know the objective of individuals while purchasing insurance To know the attitude of individuals towards insurance plans and preference to Bharti AXA Life. 6. To check out the consumers financial position.

26

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.

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FINDING No. of respondents which are aware of life Insurance

Do you know about Life Insurance Policy? Cumulative Percent 96.0 100.0

Valid

yes no Total

Frequency 48 2 50

Percent 96.0 4.0 100.0

Valid Percent 96.0 4.0 100.0

Do you know about Life Insurance Policy?

50

40

30

y c n u q e r F

20

10

0 yes no

Inference:

Do you know about Life Insurance Policy?

Above bar chart shows that 96% of Peoples know about life insurance.

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No. of respondents having the life insurance policy

Do you have any Life Insurance Policy? Cumulative Percent 86.0 100.0

Valid

yes no Total

Frequency 43 7 50

Percent 86.0 14.0 100.0

Valid Percent 86.0 14.0 100.0

Do you know about Life Insurance Policy?

50

40

30

y c n u q e r F

20

10

0 yes no

Do you know about Life Insurance Policy?

Inference:

29

Above bar chart shows that 86% of respondents having Life Insurance.

Respondents preference in Investment

Where would you prefer to invest? Cumulative Percent 20.0 56.0 84.0 100.0

Frequency Valid Govt. Securities Mutual Funds Equity Shares Insurance Total 10 18 14 8 50

Percent 20.0 36.0 28.0 16.0 100.0

Valid Percent 20.0 36.0 28.0 16.0 100.0

30

Where would you prefer to invest?

20

15

10

y c n u q e r F
5 0 Govt. Securities Mutual Funds Equity Shares Insurance

Inference:

Where would you prefer to invest?

Above pie chart show that 20% respondent of preferred in Govt. Security, 16% Insurance, 36% Mutual Funds and 28% in Equity Share.

31

Criteria of Invest of respondent

On which criteria do you invest? Cumulative Percent 20.0 54.0 100.0

Frequency Valid Expert Advice Friendly Advice Own Analysis Total 10 17 23 50

Percent 20.0 34.0 46.0 100.0

Valid Percent 20.0 34.0 46.0 100.0

On which criteria do you invest?

25

20

15

y c n u q e r F

10

0 Expert Advice Friendly Advice Own Analysis

Inference:

On which criteria do you invest?

32

The majority of respondents invest their money by their own analysis i.e.46%, by friendly advice 34% respondents invest and 20% respondents invert their money by taken experts advice

Source of Income of respondents

What is your source of income? Cumulative Percent 26.0 62.0 100.0

Frequency Valid Self Employed/Profe ssional Business Salaried Total 13 18 19 50

Percent 26.0 36.0 38.0 100.0

Valid Percent 26.0 36.0 38.0 100.0

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What is your source of income?

20

15

10

y c n u q e r F
5 0 Self Employed/Professional Business Salaried

What is your source of income?

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? Cumulative Percent 20.0 60.0

Valid

> 1,00,000 1,00,000 to 2, 00,000

Frequency 10 20

Percent 20.0 40.0

Valid Percent 20.0 40.0

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200,000 to 500,000 500,000 & above Total

15 5 50

30.0 10.0 100.0

30.0 10.0 100.0

90.0 100.0

To which income group you belong?

20

15

10

y c n u q e r F
5 0 > 1,00,000 1,00,000 to 2, 00,000 200,000 to 500,000 500,000 & above

Inference:

To which income group you belong?

It shows that Annual income of majority of respondents falls in the category of 1-2lac, approximately 40%. Where as 20% in <1 lac, 30% in 2-5 lac, 10% in 5 lac or above.

35

Type of Plan respondents Prefer

What type of plan would you prefer? Cumulative Percent 46.0 72.0 88.0 100.0

Valid

Endowment Pure Risk Money Back Term Insurance Total

Frequency 23 13 8 6 50

Percent 46.0 26.0 16.0 12.0 100.0

Valid Percent 46.0 26.0 16.0 12.0 100.0

What type of plan would you prefer?

25

20

15

y c n u q e r F

10

0 Endowment Pure Risk Money Back Term Insurance

Inference:

What type of plan would you prefer?

Above Bar Chart shows that majority of respondents prefer Endowment 46%, 26% Money Back, 16% Pure Risk and around 12% prefer Term Insurance Plan.

36

Investment range of Respondents

How much can you invest per annum? Cumulative Percent 40.0 66.0 86.0 100.0

Valid

< 10,000 10,000 15,000 15,000 20,000 > 20,000 Total

Frequency 20 13 10 7 50

Percent 40.0 26.0 20.0 14.0 100.0

Valid Percent 40.0 26.0 20.0 14.0 100.0

How much can you invest per annum?

20

15

10

y c n u q e r F
5 0 < 10,000 10,000 - 15,000 15,000 - 20,000 > 20,000

Inference:

How much can you invest per annum?

It show that 26% of respondents invest around 1000-15000, where as 40 %< 10,000, 20% 15000-20000, 14% invest 20000 or above.

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Respondents preferred Duration of Policy

For what duration would you like to hold the policy? Cumulative Percent 18.0 54.0 86.0 100.0

Valid

< 5 Years 5- 10 Years 10 - 20 Years > 20 Years Total

Frequency 9 18 16 7 50

Percent 18.0 36.0 32.0 14.0 100.0

Valid Percent 18.0 36.0 32.0 14.0 100.0

For what duration would you like to hold the policy?

20

15

10

y c n u q e r F
5 0 < 5 Years 5- 10 Years 10 - 20 Years > 20 Years

Inference:

For what duration would you like to hold the policy?

It shows that the 36% of respondents prefer 5-10 years policy duration, where as 18% in <5 years, 32% in 10-20 years, 14% prefer 20 Years or above duration.

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Respondents Expectation from the Insurance Company

What is your main expectation from the insurance company? Cumulative Percent 48.0 74.0 88.0 100.0

Valid

Security Good Return Service Flexibility Total

Frequency 24 13 7 6 50

Percent 48.0 26.0 14.0 12.0 100.0

Valid Percent 48.0 26.0 14.0 12.0 100.0

What is your main expectation from the insurance company?

25

20

15

y c n u q e r F

10

0 Security Good Return Service Flexibility

Inference:

What is your main expectation from the insurance company?

Above bar chart shows that majority of respondents prefer security 48%, 26% good return, 14%service and around 12% prefer flexibility from insurance company.

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Additional Benefits respondent prefer from policy

What additional benefit do you want from the policy? Cumulative Percent 26.0 58.0 74.0 100.0

Valid

Accidental Critical Illness Start of Life Family Income Benefit Total

Frequency 13 16 8 13 50

Percent 26.0 32.0 16.0 26.0 100.0

Valid Percent 26.0 32.0 16.0 26.0 100.0

What additional benefit do you want from the policy?

20

15

10

y c n u q e r F
5 0 Accidental Critical Illness Start of Life Family Income Benefit

Inference:

What additional benefit do you want from the policy?

Above bar chart shows that majority of respondents prefer critical illness 32%, 26% accidental, 16%start of life and around 26%prefer family income benefit.

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Respondents logic behind taking an insurance plan

What is your logic behind taking an insurance plan? Cumulative Percent 24.0 54.0 70.0 82.0 100.0

Valid

Tax Planning Risk Cover Retirement Planning Investment Planning 5.00 Total

Frequency 12 15 8 6 9 50

Percent 24.0 30.0 16.0 12.0 18.0 100.0

Valid Percent 24.0 30.0 16.0 12.0 18.0 100.0

What is your logic behind taking an insurance plan?

15

12

y c n u q e r F

0 Tax Planning Risk Cover Retirement Planning Investment Planning 5.00

Inference:Above bar chart shows that 30% of respondent prefer risk cover, 24%
prefer tax planning,12%prefe Investment,16%prefer retirement planning and18% prefer all of these

What is your logic behind taking an insurance plan?

41

Company preference of respondents

Which company would you prefer to invest in? Frequency 15 7 10 8 6 4 50 Percent 30.0 14.0 20.0 16.0 12.0 8.0 100.0 Valid Percent 30.0 14.0 20.0 16.0 12.0 8.0 100.0 Cumulative Percent 30.0 44.0 64.0 80.0 92.0 100.0

Valid

L.I.C. HDFC Bajaj Allianz ICICI Prudential bharti AXA Others Total

Which company would you prefer to invest in?

15

12

y c n u q e r F

0 L.I.C. HDFC Bajaj Allianz ICICI Prudential bharti AXA Others

Which company would you prefer about 30%, 12% Inference:It shows that majority of respondents prefers LICto invest in? Bharti

AXA, 20%Bajaj Allianz , 14% HDFC Standard life,16% ICICI Prudential and 8%prefer others.

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Satisfaction level of respondent with their L.I. Company

Are you satisfied with the services that are offered by your insurance company? Cumulative Percent 66.0 100.0

Valid

yes no Total

Frequency 33 17 50

Percent 66.0 34.0 100.0

Valid Percent 66.0 34.0 100.0

Are you satisfied with the services that are offered by your insurance company?
40

30

20

y c n u q e r F
10 0 yes no

Interference:

Are you satisfied with the services that are offered by your insurance company?

Above bar chart shows the mostly number of people are satisfied with their life Insurance Company around 66%.

43

The Factors that motivated respondents to prefer Bharti AXA

What are the factors that have motivated you to prefer Bharti AXA over the other companies? Cumulative Percent 30.0 68.0 86.0 100.0

Valid

Brand Name Goodwill of Bharti AXA Service Advertisement Total

Frequency 15 19 9 7 50

Percent 30.0 38.0 18.0 14.0 100.0

Valid Percent 30.0 38.0 18.0 14.0 100.0

What are the factors that have motivated you to prefer Bharti AXA over the other companies?
20

15

10

y c n u q e r F
5 0 Brand Name Goodwill of Bharti AXA Service Advertisement

Inference:

What are the factors that have motivated you to prefer Bharti AXA over the other companies?

Above bar chart shows that 38% of respondents prefer Bharti AXA for its good will & 30% for Brand Name, 18% for service & 14% people prefer due to advertisement. 44

Respondents which again prefer to buy Bharti AXA products

If Given a Chance do you again prefer to buy the Bharti AXA Life Insurance policy in future? Cumulative Percent 70.0 100.0

Valid

yes no Total

Frequency 35 15 50

Percent 70.0 30.0 100.0

Valid Percent 70.0 30.0 100.0

If Given a Chance do you again prefer to buy the Bharti AXA Life Insurance policy in future?
40

30

20

y c n u q e r F
10 0 yes no

Inference:

If Given a Chance do you again prefer to buy the Bharti AXA Life Insurance policy in future?

Above bar chart shows the mostly number of people are again going to buy Bharti AXA Life Insurance Company products around 70%.

45

Factor which most dissatisfy a respondent from Bharti AXA

What is the most dissatisfying factor do you feel about Bharti AXA? Cumulative Percent 24.0 62.0 82.0 100.0

Frequency Valid After Sale Service Product Diversification Fund Performance Advertisement Total 12 19 10 9 50

Percent 24.0 38.0 20.0 18.0 100.0

Valid Percent 24.0 38.0 20.0 18.0 100.0

What is the most dissatisfying factor do you feel about Bhari AXA?
20

15

10

y c n u q e r F
5 0 After Sale Service Product Diversification Fund Performance Advertisement

What is the most dissatisfying factor do you feel about Bhari AXA? Inference:Above bar chart shows that 24% of respondents dissatisfied with after

sales service of Bharti AXA & 38% for product diversification, 20% for fund performance & 18% people dissatisfied due to advertisements.

46

Reason behind not purchasing of a Bharti AXA Policy

What are die reason behind not purchasing/taking a Bharti AXA life insurance policy? Cumulative Percent 22.0 60.0 84.0 100.0

Valid

Trust Service Advertiseme nt Market Reputation Total

Frequency 11 19 12 8 50

Percent 22.0 38.0 24.0 16.0 100.0

Valid Percent 22.0 38.0 24.0 16.0 100.0

What are die reason behind not purchasing/taking a Bharti AXA life insurance policy?
20

15

10

y c n u q e r F
5 0 Trust Service Advertisement Market Reputation

Inference:

What are die reason behind not purchasing/taking a Bharti AXA life insurance policy?

Above bar chart shows that 22% of respondents are not purchasing Bharti AXA Policy due to trust & 38% due to service, 24% due to Advertisement & 16% people due to advertisements. 47

Ranking of service offered by Bharti AXA Life Insurance

Rank the service of Bharti AXA Life Insurance? Cumulative Percent 16.0 56.0 82.0 100.0

Valid

Excellent Good Average Below Average Total

Frequency 8 20 13 9 50

Percent 16.0 40.0 26.0 18.0 100.0

Valid Percent 16.0 40.0 26.0 18.0 100.0

Rank the service of Bharti AXA Life Insurance?

20

15

10

y c n u q e r F
5 0 Excellent Good Average Below Average

Inference:

Rank the service of Bharti AXA Life Insurance?

Above bar chart shows that 16% of respondents feels services offered by Bharti AXA are Excellent & 40% thinks Good, 26% feels Average & 18% people feels below average.

48

CONCLUSION
Today insurance industry is a rapidly growing sector. After coming of the private players this industry is becoming complex day to day and their competition very fast. After analyzing the responses of the people about main feature which influence the insurance buying, the result shows that awareness level is increasing day by day about the private insurance company. Till 1999 LIC have the monopoly in insurance sector. But today is the era of private insurance companies, and the awareness level and buying behavior is increasing day by day. Major finding of the study show that protection is the prime preference along with saving or tax benefits. At the same time people are more focused on their childrens future planning In particular Bharti AXA Life Insurance have huge brand awareness in the urban market due to Bharti Airtel presence in the market. But at the same time company is struggling for its market share in rural market. In brief it can be said that the people are getting confident to be the investor of Bharti AXA Life Insurance products while they have heard about all the benefits of these plans.

49

SUGGESTIONS
There are a lot of possibilities in the market for Bharti AXA Life Insurance Products due to their unique features. To get the benefit of this opportunity the company should consider the following points. 1. The study shows that there is less awareness for the companys Plans in market. So it is necessary for company to make aware to the people for company. The company should go for advertisements at local level. 2. Awareness of customers is very low in India even educated persons are unaware about various products of insurance company. Company should advertise their plans on a large scale e.g. on T.V. channel, leading newspapers etc. 3. Company should recruit new agents or consultants. It is necessary for company to trend them in a well manner therefore they will gave good results. 4. Company should make plans for promotion of company business it should organize road shows seminars, exhibition or contests because these things make a clear picture of companys plans.

50

5.

Bharti AXA should open the branches and enhance its infrastructure so that the people of that region can also be awarded about these plans.

6. 7.

Company should open customer service point in rural areas also. Company should issue less premium plan.

51

Limitation of the Study

However I tried my best to have desired information from he information from the respondents and to make the report fruitful but some limitations are bound to incur which may affect the results or findings. 1. No Secondary Data: As the subject of my project viz. consumers aptitude towards unit-linked product was new so I was unable to have secondary data for the purpose of my study. 2. Small sample size: As sample size taken by me for purpose of survey was 50 respondents. So the result may have some deviations from the facts because of small sample size. 3. Limited area and time: The study although carried out with the fullest possible effort and devotion, the limitation of time, resources available may lead to an element chance of some error.

52

SWOT ANALYSIS
Strength Bharti AXA Life Insurance Company Indias Most Respected Company in the insurance industry of India. Excellent services Customized of product as per customer needs Brand image Business experience Strong financial base Innovative product technology, organization culture and environment.

Weakness Lot of the competitions is in the market offers some product difference in the premium and offerings. Target only bigger income group where other companies are trying to catch middle lower level people. Higher premium as compared to the other companies. Client face problem to get insured due to large number of formalities. High target of financial advisor and for the sales development.

53

Opportunity Huge market is literally untapped out of estimated 320 million is usable markets only 20% of the population is insured. In the pension field where people want good life after their retirement. Indian people are more emotional towards their children that are why children plan are selling like hot cakes. Health insurance and pension schemes and estimated market potential of approximately $ 10 billion. Threats Weak perception of private players in the minds of Indian people due to frequent financial schemes. Large number of insurance players. Current government policies do not encourage gross domestic savings. Of the tax liabilities of the service rises the customers will have little money to invest. And change rules day by day more rigid which is very difficult for the company.

54

Annexure
More Analysis

Do you know about Life Insurance Policy?

120

100

80

60

y c n u q e r F
40 20 Mean = 1.04 Std. Dev. = 0.19795 N = 50 1.00 1.50 2.00 2.50 0 0.50

Do you know about Life Insurance Policy?

55

Do you have any Life Insurance Policy?

60

50

40

30

y c n u q e r F
20 10 Mean = 1.14 Std. Dev. = 0.35051 N = 50 1.00 1.50 2.00 2.50 0 0.50

Do you have any Life Insurance Policy?

56

Where would you prefer to invest?

25

20

15

y c n u q e r F

10

0 0.00 1.00 2.00 3.00 4.00 5.00

Mean = 2.40 Std. Dev. = 0.98974 N = 50

Where would you prefer to invest?

57

On which criteria do you invest?

30

25

20

15

y c n u q e r F
10 5 Mean = 2.26 Std. Dev. = 0.77749 N = 50 1.00 1.50 2.00 2.50 3.00 3.50 0 0.50

On which criteria do you invest?

58

What is your source of income?

25

20

15

y c n u q e r F

10

0 0.50 1.00 1.50 2.00 2.50 3.00 3.50

Mean = 2.12 Std. Dev. = 0.79898 N = 50

What is your source of income?

59

To which income group you belong?

25

20

15

y c n u q e r F

10

5 Mean = 2.30 Std. Dev. = 0.90914 N = 50 1.00 2.00 3.00 4.00 5.00

0 0.00

To which income group you belong?

60

What type of plan would you prefer?

25

20

15

y c n u q e r F

10

5 Mean = 1.94 Std. Dev. = 1.05772 N = 50 1.00 2.00 3.00 4.00 5.00

0 0.00

What type of plan would you prefer?

61

How much can you invest per annum?

20

15

10

y c n u q e r F
5

0 0.00 1.00 2.00 3.00 4.00 5.00

Mean = 2.08 Std. Dev. = 1.08496 N = 50

How much can you invest per annum?

62

For what duration would you like to hold the policy?

25

20

15

y c n u q e r F

10

0 0.00 1.00 2.00 3.00 4.00

Mean = 2.42 Std. Dev. = 0.94954 5.00 N = 50

For what duration would you like to hold the policy?

63

What is your main expectation from the insurance company?

25

20

15

y c n u q e r F

10

0 0.00 1.00 2.00 3.00 4.00

Mean = 1.90 Std. Dev. = 1.05463 5.00 N = 50

What is your main expectation from the insurance company?

64

What additional benefit do you want from the policy?

20

15

10

y c n u q e r F
5

0 0.00 1.00 2.00 3.00 4.00

Mean = 2.42 Std. Dev. = 1.14446 5.00 N = 50

What additional benefit do you want from the policy?

65

What is your logic behind taking an insurance plan?

15

12

y c n u q e r F

0 0.00 1.00 2.00 3.00 4.00 5.00

Mean = 2.70 Std. Dev. = 1.43214 6.00 N = 50

What is your logic behind taking an insurance plan?

66

Which company would you prefer to invest in?

15

12

y c n u q e r F

0 0.00 1.00 2.00 3.00 4.00 5.00 6.00

Mean = 2.90 Std. Dev. = 1.65677 7.00 N = 50

Which company would you prefer to invest in?

67

Are you satisfied with the services that are offered by your insurance company?
50

40

30

y c n u q e r F

20

10

0 0.50 1.00 1.50 2.00

Mean = 1.34 Std. Dev. = 0.47852 2.50 N = 50

Are you satisfied with the services that are offered by your insurance company?

68

What are the factors that have motivated you to prefer Bharti AXA over the other companies?
20

15

10

y c n u q e r F
5 0 0.00 1.00 2.00 3.00 4.00

What are the factors that have motivated to prefer Bharti AXA over the other companies?

Mean = 2.16 5.00 Std. Dev. = 1.0174 you N = 50

69

If Given a Chance do you again prefer to buy the Bharti AXA Life Insurance policy in future?
50

40

30

y c n u q e r F

20

10

0 0.50 1.00 1.50 2.00

If Given a Chance do you again prefer to the Bharti AXA Life Insurance policy in future?

Mean = 1.30 2.50 Std. Dev. = 0.46291 buy N = 50

70

What is the most dissatisfying factor do you feel about Bhari AXA?
20

15

10

y c n u q e r F
5

0 0.00 1.00 2.00 3.00 4.00

Mean = 2.32 Std. Dev. = 1.03884 5.00 N = 50

What is the most dissatisfying factor do you feel about Bhari AXA?

71

What are die reason behind not purchasing/taking a Bharti AXA life insurance policy?
20

15

10

y c n u q e r F
5 0 0.00 1.00 2.00 3.00 4.00

What are die reason behind not purchasing/taking a Bharti AXA life insurance policy?

Mean = 2.34 5.00 Std. Dev. = 1.00224 N = 50

72

Rank the service of Bharti AXA Life Insurance?

25

20

15

y c n u q e r F

10

0 0.00 1.00 2.00 3.00 4.00

Mean = 2.46 Std. Dev. = 0.97332 5.00 N = 50

Rank the service of Bharti AXA Life Insurance?

73

BIBLIOGRAPHY WWW.GOOGLE.COM WWW.Bharti-axalife.com www.irdaindia.org www.insuranceguide.com IC-33. MARKET RESEARCH,NARESH MALOHTRA

74

QUESTIONNAIRE General Information: 1. Name: 2. Age: 3. Sex: Male [ ] Female [ ] 4. Marital Status: Single [ ] Married [ ] 5. Educational Background: High School [10+2 [ ] Graduate [ ] Post Graduate [ ] 6. Address:___________________________________________ Questions: 1. Do you know about Life Insurance Policy? Yes [ ] No [ ] 2. Do you have any Life Insurance Policy? Yes [ ] N o [ ] 3. Where would you prefer to invest? Govt. Securities [ ] Mutual Funds [ ] Equity Shares [ ] Insurance [ ] 4. On which criteria do you invest? Expert Advice [ ] Friendly Advice [ ] Own Analysis [ ] 5. What is your source of income? Self Employed/Professional [ ] Business [ ] Salaried [ ]

6. To which income group you belong? > 1, 00,000 [ ] 1, 00,000 to 2, 00,000 [ ] 200,000 to 500,000 [ ] above [ ] 500,000 &

75

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 - 2 0 Y e a r s [ ]> 2 0 Y e a r s [ ] 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 [ ] N o [ ] 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 [ ]

76

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!

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