Bajaj Mukesh
November 13, 2016 | Author: dharmesh7879 | Category: N/A
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Study on Bajaj Company...
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ACKNOWLEDGEMENT
Doing a project study involves a great deal of encouragement, innovative ideas and support from different people. After all, success is the epitome of hard work, perseverance, steadfast determination and most of all encouraging guidance. This summer project at Bajaj Allianz Life Insurance Company Ltd., Mumbai was a knowledge gathering experience and opened a vast frontier of practical aspect of theoretical knowledge.
I take this opportunity to express my heartiest thanks to Mr. Arun kaushik, Asst. Manager, Group and Alternate Channel, my project guide, for his invaluable guidance, active involvement and assistance at all stages that made it possible to complete this summer project. I am extremely indebted to him for his consultations, despite his busy schedule.
I am extremely thankful to all the support I received from Prof. Harish Srivastava, Faculty Guide at Institute of Management, Nirma University for his special guidance in helping me complete this project. I also owe special thanks to Mr. Ketul Contractor and Prof. Satish Nair who showed me the right direction before the project.
I express my sincere gratitude to the human resource at Bajaj Allianz Life Insurance Co. Ltd. especially our alumni Mr. Ajay Singh, Asst. Manager; Mr. Ajay Negi, Area Manager, Mr. Gaurav Shah, Deputy Area Manager, Mr. Mukkaram Tarafarosh, Relationship Manager and Mr. Srijit Shah, Operations Manager, for providing me useful assistance in every possible way for the successful completion of this project.
I am extremely indebted to everyone whose name I have not mentioned, but my deepest regard goes to all of them. Their assistance and tolerance is deeply appreciated.
Mukesh Gupta 051132 (SEC-A)
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TABLE OF CONTENTS
Project Completion Certificate Acknowledgement
Executive Summary………………………………………………………………………….4
1. IINTRODUCTION 1.1) Industry Profile……………………………………………….………...…..5 1.2) Need for Insurance………………………………………….…………...….7 1.3) IRDA………………………………………………………………………..9 1.4) Underwriting……………………………………………….………….…..10 1.5) Sector Study…………………………………………………………….…11 1.6) Winds of Change….…………………………………………………….…16 1.7) Strategic Alternatives……………………………………………………...18 1.8) SWOT Analysis…………………………………………………………...21
2. ORGANIZATION PROFILE 2.1) Company Background…………………………………………………….24 2.2) Top Management………………………………………………………….28 2.3) Size of the organization..………………………………………………….29 2.4) Mission And Vision……………………………………………………….30 2.5) 7S McKinsey Model………………………………………………………31 2.6) Porter Five Forces Analysis………………………………………………35 2.7) Future Strategy of the Company...……...………………………………...38
3. CHANNEL STUDY 3.1) Channel Distribution………………………………………………………40 3.2) Profiling……………………………………………………………………47 3.3) Plan Comparison…………………………………………………………..51
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4. PROJECT WORK 4.1) Database generation……………………………………………………….55 4.2) Tele Calling……………………………………………………………….56 4.3) Meetings…………………………………………………………………..57 4.4) Closure of Deals…………………………………………………………..58
5. CONCLUSION 5.1) Recommendations………………………………………………………....62 5.2) Learning’s…………………………………………………………………64 5.3) Contribution……………………………………………………………….66
Bibliography………………………………………………………………………..67
Annexure A) Plans- Bajaj Allianz………….……………………………………………...69 B) Type of Plans……………………………………………………………….78 C) Questionnaire……………………………………………………………….82 D) Proposal…………………………………………………………………….85 E) List of Corporate License Documents………………………………………87 F) Name of Companies Contacted……………………………………………..90
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EXECUTIVE SUMMARY
The project involved the study of insurance industry including the comparison of best plans of various players in the industry.
Bajaj Allianz Life Insurance Co. Ltd. has multiple distribution channels and has also got into bancassurance and alternate channels focusing on corporate agents, brokers, online sales and telemarketing. Project also involves identification of newer distribution channels for sales of insurance plans.
I was associated with the Group and Alternate Channel, which involved Corporate Agency Model, Brokers and Franchisees. After studying the industry structure I did the profiling of existing clients so as to understand the nitty-gritty of the operations in the industry. After doing all the groundwork database was generated and calling was done so as to fix up appointments. In the initial meeting business proposal was explained and then follow up was done. In the final meeting Area Manager used to go along and carry forward the closure of the deal. Conversion of prospective leads into Channel Partners was the final and most important part of the project.
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CHAPTER 1 INTRODUCTION
1.1 INDUSTRY PROFILE The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries. After four decades of being under the purview of the public sector, the Insurance industry is now all set to bloom after the sector has been thrown open to private sector participation. There seems to be a lot of enthusiasm over the potential of the sector. Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 crore from the Government of India.
1972: General Insurance Corporation (GIC) was formed by merging 106 private insurance companies
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India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Innovative products and aggressive distribution have become the say of the day. Indians, have always seen life insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice. Life insurance industry is waiting for a big growth as many Indian and foreign companies are waiting in the line for the green signal to start their operations. The Indian consumer should be ready now because the market is going to give them an array of products, different in price, features and benefits. How the customer is going to make his choice will determine the future of the industry.
The insurance market has grown due to public sector continuing its presence by holding on to its market prompting the private companies to market new products. This they have been able to do as they have geared themselves to face the competition. The LIC, for instance, has concentrated on retaining its market in traditional products like endowment and money back and has not slackened its hold in the rural areas. It has simultaneously started experimenting with new products like Unit Linked where there is private sector domination. With its considerable presence in the whole country the LIC would continue to play a major role in the life insurance market. This would, in turn, prompt the private companies to innovate, find niche markets and expand into the rural areas. As a result the insurance penetration would increase and the customer would stand to gain.
Life insurance has today become a mainstay of any market economy since it offers plenty of scope for garnering large sums of money for long periods of time. A well regulated life insurance industry, which moves with the times by offering its customers tailor-made products to satisfy their financial needs is, therefore, essential if we desire to progress towards a worry-free future.
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1.2 NEED FOR INSURANCE The need for life insurance comes from the need to safeguard our family. If you care for your family’s needs you will definitely consider insurance. Today insurance has become even more important due to the disintegration of the prevalent joint family system, a system in which a number of generations co-existed in harmony, a system in which a sense of financial security was always there as there were more earning members. Times have changed and the nuclear family has emerged. Apart from other pitfalls of a nuclear family, a high sense of insecurity is observed in it today besides, the family has shrunk. Needs are increasing with time and fulfillment of these needs is a big question mark. Factors such as fewer numbers of earning members, stress, pollution, increased competition, higher ambitions etc are some of the reasons why insurance has gained importance and where insurance plays a successful role. Insurance provides a sense of security to the income earner as also to the family. Buying insurance frees the individual from unnecessary financial burden that can otherwise make him spend sleepless nights. The individual has a sense of consolation that he has something to fall back on. Insurance is a must also because of the uncertain future adversities of life. Moreover, retirement, an age when every individual has almost fulfilled his responsibilities and looks forward to relaxing can be painful if not planned properly. Have you considered the increasing inflation and taxes? Will your investment offer you attractive returns under such circumstances? Will it take care of your family after you? An insurance policy will definitely take care of these and a lot more. Insurance today has opened up new vistas for every section of society. Insurance is an effective tool for Personal Financial Planning. It is the only financial vehicle that pays a lump sum on death, disability, hospitalization, and critical illnesses. It provides the following benefits: •
Provides financial security for the family. Acts as a tool for PROTECTION.
•
Mitigate financial risks associated with Total /Partial Disability; Critical Illness; Hospitalization Expenses; Old Age; Death. 7
•
The tearing of the Joint Family fabric, makes insurance attractive for financial independence of the nuclear family.
•
Is a SAVINGS vehicle. Enjoys Tax benefits (Front End Benefits of Section 80C, 80(D); Back end 10(10) D - Maturity/Withdrawal Benefits are Tax Free)
Start Family
Single
POSITIVE
Good Job
Education
Marriage
Retirement
Buy House
Children
Planned Wealth
NEGATIVE Premature Death
Loss of job
Unplanned Accident & Critical Illness Retirement Disability
Life Insurance mitigates the financial risks of Negative Events while boosting the prospects for Positive events of Life!
INSTRUMENT Provident Fund Shares Bonds Fixed Deposits Mutual Funds Postal Savings Schemes
Safety of Capital Preservation High Uncertain Average High Average High
LIFE INSURANCE
HIGH
Liquidity Low Good Average Average High Low
Post tax returns Good Uncertain Low Low Uncertain Average
Tax Efficiency Good Low Low Low Average Average
Risk Cover None None None None None None
AVERAGE
GOOD
HIGH
YES
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1.3 IRDA
Insurance Regulatory Development Authority was constituted in 1999 by an Act of Parliament to protect the interests of the policyholders and to regulate, promote and ensure orderly growth of the insurance industry. IRDA consists of a ten member team that comprises a Chairman, five whole-time members and four part-time members. IRDA allows registration of new players in the insurance field. It also has the authority to renew, modify, withdraw, suspend or cancel such registration. IRDA ensures protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance. It specifies requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents.
Insurance Regulatory and Development Authority is an autonomous body similarly on the lines of SEBI, which enjoys full functional operational freedom to perform its duties in a fair and efficient manner that will lead to stimulate the public trust in regulatory process.
MISSION OF IRDA To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.
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1.4 UNDERWRITING Underwriting is the process that the insurance company undertakes for selecting and categorizing risks. It is an attempt to find out whether the insured is in fact insurable, and whether the applicant has an insurable interest in the insured. For the Insurer to issue an insurance policy the customer is responsible for full and accurate disclosure of personal information as well as submit to a medical exam. The underwriting process could take as little as one day or as long as a week.
The first step starts with the filling up of the Application. The proposal form for insurance is the source of insurability information available as General Information and Medical Information. A complete proposal form should be submitted along with the following: •
Proposal Deposit conforming to the premium amount.
•
ICC/ FSC MHR Report
•
Age Proof duly signed by the proponent & verified by the ICC/STM.
Next the applicant needs to undergo a Medical exam, which is at no cost to the applicant. The examiner (cardiologist, pathologist, radiologist) would perform non-invasive or invasive medical tests.
Finally once all of the information has been gathered, the underwriter evaluates the data and classifies the risk/determines the premium.
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1.5 SECTOR STUDY
1.5.1 PUBLIC SECTOR COMPANY 1.5.1.1 LIFE INSURANCE CORPORATION OF INDIA (LIC) Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life insurance business in India with its Head Office at Mumbai. It has been established by an act of the Parliament and started functioning from 1/9/1956. LIC is the biggest insurance player in the country. Out of the total premium of Rs 3766 crore generated by the insurance industry through group business in the year 2005-06, LIC alone accounted for Rs 3051 crore. The mission statement of LIC is to “Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development.”
1.5.2
PRIVATE SECTOR COMPANIES
The focus of the new companies is on revenue generation, growth through geographical expansion, customer acquisition and a need to capture a sizable share. Simultaneously, they are grappling with the issues of expansion, innovation and differentiation in products and services, knowledge dissemination, target marketing, developing alternative channels, maintaining underwriting discipline and implementing an effective service delivery model with optimizing costs.
The listing of various private sector companies is given below along with the names of the Indian partner, the business they are in and the foreign collaborators.
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S No
1
2
Company
Max New York Life Insurance Co. Ltd.
Tata AIG Life Insurance Co. Ltd.
Indian Company
Business
Foreign Co.
Country
Max India Limited
Clinical Research, IT & Telecom Services, & Specialty Plastic Products businesses
New York Life International
USA
Tata Group
Operating in seven business sectors through 93 comp. Holds leadership positions in many industry segments, among them tea, s/w, automobiles, energy & hospitality.
American International Group, Inc. (AIG)
US
Sun Life Insurance
Canada
3
Birla Sun Life Insurance Co. Ltd.
Aditya Birla Group
Aluminium, Copper, Cement, Vircos Staple Fibre, Fertilisers, Textiles, Carbon Black, Garments, Insulators, Telecom, Chemicals
4
ING Vysya Insurance Co. Pvt Ltd
Vysya Bank
Financial Service Institution
ING Group
Netherland
5
MetLife India Insurance Co. Pvt Ltd
J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, Mini Muthoothu
Financial Service Institutions
MetLife Group
USA
6
Bajaj Allianz Life Insurance Co. ltd.
Bajaj Auto
2 and 3 wheeler manufacturer
Allianz AG
Germany
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Aviva Life Insurance Co. Pvt. Ltd.
Dabur
Traditional healthcare Aviva Life products Insurance
UK
8
HDFC Standard Life Insurance Co. Pvt. Ltd.
HDFC Ltd.
Housing Finance Institution
UK
9
ICICI Prudential Life Insurance Co. Pvt. Ltd.
ICICI Bank
Standard Life Assurance
Financial powerhouse Prudential plc
UK
12
Kotak Mahindra Old Mutual Life Insurance Ltd.
Kotak Mahindra Bank Ltd.(KMBL)
Commercial banking, stock broking, mutual funds, life insurance, investment banking
Old Mutual plc
South Africa, US & UK. Headquarters in London
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Reliance Life Insurance Co. Ltd.
Reliance Capital Ltd. of the Reliance Anil Dhirubhai Ambani Group
Asset management & mutual funds, life & gen. insurance, pvt. Equity & proprietary investment, stock broking & other fin. Services
Acquired 100% shareholding in AMP Sanmar Life Insurance Co. No Foreign Alliance
JV between AMP, Australia & the Sanmar Group. Headquarters in Chennai
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SBI Life Insurance Co. Pvt. Ltd.
State Bank of India
Banking franchise
Cardif SA
France
Shriram Group
Ins. Consultancy, Consumer Durable Finance, Stock Broking busi., IT, Pharma, Property Development, Project Engg, Packaging & Auto Components.
Sanlam
South Africa
Sahara India
Public Deposit, Infra. & Housing, Media & Entertainment, Aviation, Consumer Prod., IT, Sundarbans Proj., Sahara Hosp., Araria Jute Project, Life Insurance, MFs, Housing Finance, Power Proj., Comp. Manufacturing, Hotel, Caring Scheme
No foreign collaborator
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13
14
Shriram Life Insurance Co. Pvt. Ltd.
Sahara India Life Insurance
--- X ---
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1.5.2.1 MARKET SHARE The market share for the various private sector companies for the year ended 31st march, 2006 is listed below:
S. No.
1
2
3
4
5
6
7
8
9
10
Company
MetLife India Insurance Co. Pvt Ltd Reliance Life Insurance Co. Ltd Max New York Life Insurance Co. Ltd. Kotak Mahindra Old Mutual Life Insurance Ltd. Tata AIG Life Insurance Co. Ltd. Aviva Life Insurance Co. Pvt. Ltd. Bajaj Allianz Life Insurance Co. ltd. Birla Sun Life Insurance Co. Ltd. HDFC Standard Life Insurance Co. Pvt. Ltd. ICICI Prudential Life Insurance Co. Pvt. Ltd.
Market Share for year ended 31st March, 06 No. of lives % Premium % No. of covered under U/W Share Policies Share group schemes
% Share
14262
1.39
95605
2.47
331919
8.94
19344
1.89
79464
2.05
129335
3.48
44327
4.32
423780
10.95
66919
1.80
39753
3.88
96750
2.50
149653
4.03
46348
4.52
295949
7.64
574549
15.47
40753
3.97
164015
4.24
54607
1.47
271561
26.49
781694
20.19
396186
10.67
67808
6.61
265895
6.87
191541
5.16
102893
10.04
374331
9.67
207925
5.60
263747
25.72
838242
21.65
474693
12.78
14
11
12
13
14
ING Vysya Insurance Co. Pvt Ltd SBI Life Insurance Co. Pvt. Ltd. Shriram Life Insurance Co. Pvt. Ltd. Sahara Life Insurance Co. Pvt. Ltd.
28407
2.77
126135
3.26
56459
1.52
82851
8.08
285442
7.37
1069237
28.80
1031
0.10
20797
0.54
0
0.00
2182
0.21
23320
0.60
10054
0.27
1025267
100.00 3871419 100.00
3713077
100.00
MARKET SHARE (Premium U/ W)
MetLife Reliance Max New York Kotak Tata AIG Aviva Bajaj Allianz Birla Sun HDFC Standard ICICI Prudential ING Vysya SBI Shriram Sahara Bajaj Allianz 26%
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1.6 WINDS OF CHANGE Reforms have marked the entry of many of the global insurance majors into the Indian market in the form of joint ventures with Indian companies. The entry of new players has rejuvenated the erstwhile monopoly player LIC, which has responded to the competition in an admirable fashion by launching new products and improving service standards. The following are the key winds of change brought about by privatization.
1.6.1 Market Expansion: There has been an overall expansion in the market. This has been possible due to improved awareness levels thanks to the large number of advertising campaigns launched by all the players. The scope for expansion is still unlimited as virtually all the players are concentrating on large cities and towns - except by LIC to an extent there was no significant attempt to tap the rural markets.
1.6.2 New Product Offerings: There has been a plethora of new and innovative products offered by the new players, mainly from the stable of their international partners. Customers have tremendous choice from a large variety of products from pure term (risk) insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional moneyback policies, which is not considered very appropriate for long-term protection and savings.
1.6.3 Customer Service: Not unexpectedly, this was one area that witnessed the most significant change with the entry of new players. There is an attempt to bring in international best practices in service and operational efficiency through use of latest technologies. Advice and need based selling is emerging through much better trained sales force and advisors. There is improvement in response and turnaround times in specific areas such as delivery of first policy receipt, policy document, premium notice, final maturity payment, settlement of claims etc. However, there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels.
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1.6.4 Channels of Distribution: Till two years back, the only mode of distribution of life insurance products was through Agents. While agents continue to be the predominant distribution channel, today a number of innovative alternative channels are being offered to consumers. Some of them are bancassurance, brokers, the Internet and direct marketing. Though it is too early to predict, the wide spread of bank branch network in India could lead to bancassurance emerging as a significant distribution mechanism.
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1.7 STRATEGIC ALTERNATIVES
If one analyses the history of growth of the insurance industry since reforms, it is marked by all-round growth of all players. More or less all players (including the market leader LIC) have aggressively recruited and trained advisors, appointed agents, launched new products, improved customer service standards and revamped/expanded their distribution networks. If at all there was any major difference between players it was only in time lag in launching of services. Every player would like the customers to believe that its service standards are the best or that its agents are the most informed and ethical, but is debatable whether there are any significant differences. In other words, each company is trying to be ‘everything to everybody’. Our argument is that the strategy of being everything to everybody is risky. Some players justify the above strategy on the basis that the Indian market is huge and it can accommodate everybody. Still, in a market where it is difficult to distinguish oneself sufficiently on service or any other parameter to be able to charge a premium, it will lead to unmitigated price competition to the detriment of all players. One may achieve sales turnover, but margins and profitability will suffer severely. In the insurance industry where large amounts of capital are required, this is risky. While there is room for a few scale players with a finger in every pie, it is profitable for other players to focus on different segments to survive and thrive in a multi-firm open environment. While each company has to choose its own unique positioning based on its unique strengths,
the below-mentioned generic positioning alternatives appear worth
considering. Needless to say the positioning choices discussed here are not mutually exclusive and can be overlapping.
1.7.1 Variety-based Positioning This type of positioning is based on varieties in products and services rather than customer segments. It is a sensible strategy for those companies who have distinctive advantages or strengths in offering certain products and services. In the insurance industry too, it is possible to achieve a unique position by focusing on certain category of products. One such example is Birla Sunlife Insurance, which has
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been placing particular focus on investment-related products since its launch in India. Through its superior fund management capabilities, the insurance company can deliver better returns on its investment-linked products and thereby carve for itself a leadership position in this segment. Then there is the entire category of pension products, which is widely touted to have immense growth potential in India due to imminent pension reforms. It is possible to achieve profitable positioning by focusing and excelling in only pension products.
1.7.2 Needs-based Positioning This is the most commonly understood positioning and is based on the differing needs of different groups of consumers. This can be done successfully if a company has unique strengths to service a group of customer needs better than others. The insurance needs of customers vary significantly for different groups of customers. The insurance needs of young family with small children will be quite different from that of a family in which the income-earner is close to retirement. However, in India most of the life insurance companies have a wide variety of products tailored for different customer needs and there is no company focusing on a particular customer need. An example would be a life insurance company that focuses only on High Net-worth Individuals (HNIs). The needs of HNIs would be quite different from those of a general consumer and would require an entirely different marketing mix right from the type of products offered and the way they are distributed, to the promotion methods employed.
1.7.3 Access-based Positioning Positioning of customers can also be done by the way they are accessible. That is different groups of customers may be accessible in different ways even though they may have similar needs. Access is typically a function of customer geography or customer scale. There is excellent opportunity in the insurance industry to employ access-based positioning by targeting the rural insurance sector. The rural market for life insurance is very different from the urban market in terms of needs, income levels and distribution (seasonality, for example), penetration of media and so on. So far except for LIC, no
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other player has paid any attention or focus on the rural sector. Rural market can be a highly profitable position if one is able to carefully plan and tailor an entire set of lowcost activities of advertising, distribution, and product design etc. to successfully exploit the potential.
1.7.4 Choosing the right strategy The right strategic choice is not a matter of positioning choice alone. It involves the very way a company organizes itself to do business. It is the configuration of the entire value chain of the company through a different set of activities to deliver unique value to consumers. The set of activities cover all upstream and downstream activities, from the selection of the product mix, the way the products are priced, promoted, the type of distribution mechanism used, the way customers are serviced and so on.
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1.8 SWOT ANALYSIS 1.8.1 STRENGTHS •
Huge potential market. Insurable population of 300 million
•
The variety of products is increasing.
•
Authority has always believed in openness and transparency and has followed the practice of prior consultation with various interests before finalization of regulations.
•
The regulators provide for constant monitoring of the performance of the companies as a check against lax management practices
•
Regulators protect policyholders against excessive insolvency risk by requiring insurers to meet certain financial standards and to act prudently in managing their affairs.
•
There is rigorous scrutiny of the companies at the entry level
•
Existence of diligent monitoring of their activities with special reference to maintenance of solvency margins and prudent investment policy
•
The accounting standards are in alignment with international standards
1.8.2 WEAKNESS •
There is weakness in the legislative framework.
•
Insurance companies are often slow to respond to changing needs.
•
Lax management within insurance companies
•
There is an increasing trend of financial weakness among the companies.
•
There are more competitors for agencies to compete with banks and Internet players.
•
Weak corporate governance.
•
Prevalence of ineffective market discipline
•
There is inadequate information flows due to a lack of transparency or undeveloped accounting systems.
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•
The brokers have also not been able to deliver the value added services expected of them.
•
New developments have taken place in the insurance world, which do not find a reflection in the law
•
Total computerization still in the process of implementation.
•
Sophisticated covers do not have adequate demands because of general attitude to insurance in India.
•
Players have to build their own distribution networks
•
Huge investments are required
1.8.3 OPPORTUNITIES •
The Indian insurance industry relies heavily on the traditional agency distribution channel, with a large number of agents of varying levels of professionalism and productivity. There is thus scope for developing alternative distribution channels, which are often more efficient, and which can offer lower costs and better benefits for policyholders.
•
There is no fixed limit with regard to the number of entrants, so there always is scope for new entrants in the market.
•
The ability to cross sell financial services is barely being tapped.
•
Technology is improving to the point that paperless transactions are available.
•
The client's increasing need for an “insurance consultant" can open new ways to service the client and generate income
•
The coverage of rural areas and social sectors is a sound business proportion.
•
Management and staff buy-in to a new business
•
Effective sales management and organization- Joint ownership of targets
•
Robust machinery for quality lead generation
•
Continuous training for lead generators and sales persons
•
Existing players are slow and bureaucratic in nature. Outmaneuvering them will be relatively easier
•
Companies can concentrate on niche markets ensuring better returns
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1.8.4 THREATS •
In the absence of incentives to the funds in the form of tax exemptions very little of paid premiums shall become available to meet future catastrophe claims and liabilities under the policies issued.
•
The potential risk factors emerging every day leave the regulators unawares.
•
Competition in Domestic Market
•
The increasing cost and need for insurance might hit a point where a backlash will occur.
•
Government regulations can quickly change the direction of insurance market.
•
Increasing expenses and lower profit margins will hit hard on the smaller agencies and insurance companies.
•
Repatriation of benefits not allowed
•
Joint ventures in insurance industry have a history of falling apart
•
Market may not accept new products
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CHAPTER 2 ORGANIZATION PROFILE
2.1 COMPANY BACKGROUND
2.1.1 Bajaj Allianz Life Insurance Co. Ltd.
The company is a joint venture between two leading conglomerates- Allianz AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. The Management Control is with Allianz AG. It was registered in 2001.
The company is currently capitalized with Rs 2500 Million. (~ € 45 mn.). It is the fastest growing private life insurance company in India, with a growth rate of 380%. It has sold over 1 million policies to satisfied customers. It is present in over 510 towns across the country and is backed by a network of 570 offices spanning the country
Bajaj Allianz is ranked No.1, among private life insurance companies in India. It funds top fund with highest growth since inception as per Outlook money analysis & survey for all Insurance cos. released in July 2005 & Jan 2006.
Accelerated Growth Fiscal Year 2001-2002 (6mths)
Policies sold
New Business
21,376
Rs
70 Mln (~€1.32mn.)
2002-2003
1,15,965
Rs
610Mn(~€11.5mn.)
2003-2004
1,86,443
Rs 1800 Mln (~€ 34 mn.)
2004-2005
2,88,189
Rs 8350 Mln (~€158mn.)
Apr’05 – Jan 06
4,43,856
Rs 16,800 Mln(~€317mn.)
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The Bajaj Allianz- DIFFERENCE
•
Strong Brand awareness in the mass market segment
•
The widest range of products catering to all customer segments
•
Customisation & Co-branding of products with partners
•
Sales focussed organisation with fastest growth in Insurance
•
Quick implementation of sales model
•
Internationally experienced Core Team with local background who understands Indian risks & market supported by the international experience of Allianz
•
Business Strategy aligned to Clients’ needs and trends in the Indian and global economy/industry
•
Long-term Commitment to market and clients
•
Customer Focus
•
Fast Decentralised Decision making
•
Solutions & Services of International Quality Standard
•
Customised ‘Indian’ Products
•
Unit Linked Equity Investments guided by DSP Merrill Lynch
•
Is the fastest growing private life insurance company in India
•
Assets under management Rs 20000 + Mln (~€378mn.)
•
Effective management of large Sales teams – 3000 ISEs in Franchisees
•
Currently has over 4,40,000 satisfied customers
•
Presence in more than 550 locations with 60,000 Insurance Consultants, providing the finest customer service.
2.1.2 The ALLIANZ GROUP Allianz Group is one of the world's leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz now has almost 174,000 employees. It has around 700 subsidiaries. At the top of the international group is the holding company, Allianz AG, with its head office in Munich, Germany. Allianz’ global network extends to more than 70 countries in Europe, Asia Pacific, North & South America and Africa & Middle East.
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Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of •
Property and Casualty Insurance,
•
Life and Health Insurance,
•
Asset Management and Banking
In fiscal year 2005, Allianz's total revenues amounted to some 100.9 billion euros. At the end of 2005 Allianz Group had more than 1.26 trillion euros in assets under management. Of this, 743 billion euros were assets managed for third parties. Allianz’ shares trade at the 5 leading international stock exchanges: Frankfurt, London, Paris, Zurich & New York. It has Gross Written Premium of € 85 billion (~ Rs 4,67,500 cr.). The company has 60 million Clients and is number two by Gross Written Premium in the world. It has ‘A+’ rating by A.M. Best. It provides insurance to about half the ‘Fortune 500’ Companies. It is the 12th largest corporation in the world having 49.8 % of global business from Life Insurance 2.1.3 BAJAJ AUTO LTD. Bajaj Auto Ltd, the flagship company of Bajaj group is the largest manufacturer of twowheelers and three-wheelers in India and one of the largest (4th largest) in the world. Bajaj Group, a Rs 80000 Mln (~€1511mn.) group is a household name in India with a strong brand image and brand loyalty. Bajaj Group is synonymous with Quality and Customer Focus. It has employee strength of more than 15,000 employees. The annual turnover was Rs 67320 Mln (~€1272mn.) in 2004-05 and Profit after tax was Rs 7660 Mln (~€145mn.) in 2004-05. There are more than 21 million Bajaj vehicles on the roads across the globe. It manages funds of over Rs 4000 cr. Bajaj Auto finance one of the largest auto finance cos. in India. As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to offer: 26
•
Financial strength and stability to support the Insurance Business.
•
A strong brand-equity.
•
A good market reputation as a world class organization.
•
An extensive distribution network.
•
Adequate experience of running a large organization
•
A 10 million strong base of retail customers using Bajaj products.
•
Advanced Information Technology in extensive use.
•
Experience in the financial services industry through Bajaj Auto Finance Ltd
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2.2 TOP MANAGEMENT Sam Ghosh, who was the CEO of Bajaj Allianz earlier, has taken over as Country Manager and is also the CEO of Bajaj Allianz Life Insurance Company Limited. The top management of Bajaj Allianz General Insurance consists of people having domain knowledge of insurance as well as specialists in their respective field.
Retail Head
Mr. Ajay Singh
Group and Alternate Head
Mr. Malai Ghosh
Bancassurance Head / CFO
Mr. Mukul Gupta
Group Head
Mr. Manjeet Siddhu
Alternate Head
Mr. Neeraj Kumar
At the regional level, there is an area manger. The Alternate Channel of Bajaj Allianz Life Insurance Company Ltd., Mumbai is looked after by Mr. Ajay Negi who is an Area Manager. Under an Area Manager are 2 Deputy Area Managers and around 5 Relationship Managers. Under DAM’s are around 10 Relationship Managers. The RMs handle the Insurance Sales Representatives (ISRs). The ISRs work with the help of Junior Insurance Sales Representatives (JISRs). Finally, there are Training Insurance Sales Executives (TISE) under JISRs.
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2.3 SIZE OF THE ORGANIZATION •
550 offices in over 400 cities
•
60,000 Insurance Consultants
Head office: GE Plaza, Airport Road, Yerawada Pune - 411 006. Tel: 91-20-5602 6777
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2.4 VISION AND 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.
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2.5 THE 7S MCKINSEY MODEL
Today's companies are working in a war zone of rapidly changing competitors, technological advances, new laws and more critical, flirtatious customer loyalty. Companies find themselves competing in a race where the road signs and rules keep changing, where there is no finish line, no definite win.
This implies that existing market leaders have also to take a fresh look at all aspects of their business, more specifically the strategic dimensions such as positioning and brand equity, in order to retain and further improve their market share.
The marketing discipline has to redevelop its assumptions, concepts, skills, tools and systems for making sound business decisions. The 3Ss across the top of the model are described as 'Hard Ss': •
Strategy:
This implies the direction and scope of the company over the long term. The strategy can be internal and external.
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The company took a major initiative to change its name. The change in company name comes in conjunction with research findings from existing customers, business associates, prospective customers and other stakeholders indicated higher comfort level and ease of recalling the Bajaj name first and then Allianz, and hence the name Bajaj Allianz To strengthen the emerging bancassurance sector in the country Bajaj Allianz Life Insurance has launched a quarterly magazine Bancassurance Vantage. This newsletter identifies emerging trends, offers views from experts and regulatory and industry developments in the Indian bancassurance sector. Bajaj Allianz Life made its presence in India in the remotest parts of the country providing access to common man in India with simple and easy life insurance and investment products flexible enough to suit their needs — jaisi jaroorat vaisa insurance — with world class service. •
Structure:
This is the basic organization of the company, i.e. its departments, reporting lines, areas of expertise, and responsibility (and how they inter-relate). In pre-Ghosh days, the organisational structure was like a multi-layered pyramid with authority largely centralized. The CEO was assisted by deputy chief operating officer, chief financial officer (CFO), president (R&D), head sales and head marketing. He turned the organisational approach upside down. From top down it is now the bottom up approach. Branches that were earlier acting like post offices sending the proposals to head office for decisions now have the freedom to accept or reject proposals. Allianz Bajaj underwent a change in top management that has resulted in a change of strategy. Their strategy is to have a lower number of tie-ups but deep relationships. From its earlier focus on numbers, in terms of individual assurance policies, the company has decided to go with the market and concentrate on increasing the sum insured.
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Systems: This is related to the formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customer (retail systems, call centre systems, online systems, etc). Bajaj Allianz was shifting its operational structure to a hub and spoke model, whereby it would widen its presence through a large number of satellite offices that would be controlled through few branches. The satellite offices will act as collection centers while the branch will issue the policies Only those proposals, which have a pre-existing medical history, now come to the head office. Ninety per cent of the policies are now underwritten through the software programme, Black Box. Within six days the final policy reaches the policyholder.
The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were termed 'Soft Ss' by McKinsey: •
Skills:
These are the capabilities and competencies that exist within the company and what it does best. The insurers are expected to be responsive in their claim settlement processes to reboot their images. They must also demonstrably improve their negotiating and strategic skills to contain losses.
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•
Shared values:
These are the values and beliefs of the company. Ultimately they guide employees towards 'valued' behavior. As a responsible, customer focused market leader, Bajaj Allianz strives to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money. The company believes in decentralized management practices and the endeavor of introducing wide array of customized insurance solutions that cater to all possible segments of customers. •
Staff:
The staff means the company's people resources and how they are developed, trained, and motivated. Branch managers were asked to prepare their own targets. In addition to chalking out an achievable target, they also have to provide what is referred internally as a 'dream target'. •
Style:
The leadership approach of top management and the company's overall operating approach is what is considered to be the style of a company. At the operational level the underwriting authority of the branch head was restricted and proposals had to be sent to the head office for acceptance or rejection, leading to delays and customer dissatisfaction. The senior leadership creates an environment for empowerment, innovation and ethical values. This has led to the congenial atmosphere and the same is reflected in the style of working of various employees in the organization. BJAZ is very aggressive as far as achievement of targets is concerned and same is communicated through the top leaders.
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2.6 COMPETITIVE POSITION (PORTER’S FIVE FORCES ANALYSIS)
In his Competitive Model Porter (1979) argued that the nature and degree of competition in an industry hinged on five forces: the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products and the jockeying among current contestants. He said the collective strength of these forces determines the ultimate profit potential of an industry. This section will examine the effects on insurance industry with respect to the five forces that Porter identified in his Industry 5-Forces Competitive Model. Porter had identified these five forces that shape any industry or market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The ultimate goal of any corporate is to maximize the wealth of its investors, and the wealth maximization depends upon the external as well as the internal competitive environment in which an industry operates.
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Threat of new entrants: The threat of new entrants depends on: •
Access to industry distribution channel
•
The likelihood of retaliation from existing industry players
•
Customer switching costs
•
Capital/Investment requirements
The new entrants may pose a threat to the existing players as: •
Other financial services companies entering the market
•
Dilution of investor base
•
Increased cost of retaining the investors
•
Increased cost of marketing and promoting the product, which otherwise could be used in research and development.
Power of buyers: The bargaining power of buyer depends on: •
Product differentiation
•
Threat of backward and forward integration to the industry
•
Role of quality and service
•
Switching costs
The individual doesn't pose much of a threat to the insurance industry. Large corporate clients have a lot more bargaining power with insurance companies. Large corporate clients like airlines and pharmaceutical companies pay millions of dollars a year in premiums. Insurance companies try extremely hard to get high-margin corporate clients.
Power of suppliers Services by nature are intangible and hence the question of bargaining power of suppliers does not arise. The suppliers of capital thus might not pose a big threat, but the threat of suppliers luring away human capital does. If a talented insurance underwriter is working for a smaller insurance company (or one in a niche industry), there is the chance that that person will be enticed away by larger companies looking to move into a particular market. 36
Threat of substitutes The threat of substitutes depends on: •
Quality of service given by the substitute
•
Buyer’s willingness to substitute
•
The relative price and performance of substitutes
•
Cost of switching to substitute
Most large insurance companies offer similar suites of services. In some areas of insurance, however, the availability of substitutes are far and few between. Companies focusing on niche areas usually have a competitive advantage, but this advantage depends entirely on the size of the niche and on whether or not there are any barriers preventing other firms from entering. With so many varied substitutes available, the threat is massive. But India’s savings is one of the highest in the world (close to 25%). And hence there is bright future ahead.
Competitive rivalry Although LIC is a clear market leader but in private life insurance companies there are lots of small and equally sized competitors making the rivalry more intense. The difference between one insurance company and another is usually not that great. As a result insurance has become more like a commodity, an area in which the insurance company with the low cost structure, greater efficiency, and better customer service will beat out competitors. Insurance companies also use higher investment returns and a variety of insurance investment products to try to lure in customers. In the long run, we're likely to see more consolidation in the insurance industry. Larger companies prefer to takeover or merge with another rather than spend the money to market and advertise to people.
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2.7 FUTURE STRATEGY OF THE COMPANY The future strategy of the company is penetration by targeting varied segments including large corporate, small & medium enterprises, government, retail, bancassurance, and Internet sales. They have multiple distribution channels and have also got into bancassurance and alternate channels focusing on corporate agents, brokers, online sales and telemarketing. Technology will remain the key enabler for cost effective product distribution, increased operational efficiencies, as a risk mitigation tool, reduced customer response times, faster claims servicing and to ensure quality processes are standardized company-wide. •
Products: Bajaj Allianz has already launched a complete set of need-based products to cater to varied needs of the customer. Currently Bajaj Allianz has a product portfolio of 26 products and more need-based products are in the pipeline. The company also benefits from product innovations by the foreign partner which helps in bringing new products into India
•
Distribution: Satisfied with the performance of the satellite offices, Bajaj Allianz Life plans to open 100 more outlets. The company is also looking at nontraditional insurance distribution channels. A separate team under the head Brand Assurance has been created to identify unconventional distribution networks. Ultimately, insurance is a retail game; unless your distribution is strong, you can’t really compete. In the last two years, it has opened more branch offices. They have about 600 branch offices in 560 towns – largest number among the private players. They plan to add more offices in the existing towns and add offices in more towns as well, so as to reach more customers across the country in this financial year.
•
Sustainability: Though the company is now selling large policies, these mainly come from unit-linked ones. And the sustainability of the current bull run in that product portfolio remains uncertain. Like other insurers it is a waiting game for Bajaj Allianz Life. Except that the company aims through uncertainties to be at the top of the industry rather than languishing at the bottom of the heap.
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•
Relationships: The company strategy is to have a lower number of tie-ups but deep relationships. More than 30 per cent of the new business is from banking channels. The APPP from this channel is Rs35, 000
•
Tie-Ups: The Company is tying up with NGOs and other organizations, which have strong presence in rural and semi urban areas. Besides, it is also going to open its own offices in these areas as well.
•
Belief: Customer focus is what drives them to excel and perform aggressively. Two years back when they started to reorient the company, they started from the basics, analysing the customers and their needs and they rebuilt the product portfolio and the company structure around those needs. Their basic promise is ‘Jaise Zaroorat Viasa Insurance' Insurance as per the customers need - no fancy commitments but a honest promise that they can deliver and customer believes value based economical products with good appreciation and security. The company believes in growing aggressively and maintaining quality of service.
•
Expansion: The company planning to expand to 750 towns in this financial year and explore various ways in which it can capitalize on health and await the opening up of the pension sector. The strategy is to first target companies with German parentage and those from the Bajaj group. Then expand the reach.
•
Promotion: The company plans to spend around Rs15 crore on promotion. The communication strategy is to familiarize its brand with the public so that doors for agents open fast.
•
Portfolio Management: Regarding the company’s investment portfolio and the yields, the policyholders decide the parking avenues of unit-linked policy investments. In the case of traditional products aim is to match the assets with liabilities. Normally Bajaj Allianz invests in debt funds and the target yield is 6 per cent. The shareholders' funds are used to meet the solvency margin. While unit-linked products contribute nearly 70 per cent of the company's business, Bajaj Allianz Life's focus is on group business
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CHAPTER 3
CHANNEL STUDY
3.1 CHANNEL DISTRIBUTION Competition in the market has led to exploration of new innovative and diversified channels of distribution for capturing wider market, which will provide cost-effective services to policyholders. These alternative channels will also build strong and effective customer relationship. Entry of private players in the market has explored new channels on the lines of developed economics. Besides, traditional intermediaries as corporate agent, brokers, and new methods like bancassurance, direct marketing, telemarketing, independent financial advisors and sale of policy through internet would play a crucial role in penetrating the insurance market in India. The choice of channel is directly related to the kind of product complexity and level of service.
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Bajaj Allianz Life Insurance - Distribution Network
Agency Channel
Branches (102)
Satellites (450)
75,000 Tied Agency Network
Bancassurance Standard Chartered
Group & Alternate Channel Employee Benefit Group
Syndicate Bank
Corporate Agents (406)
IndusInd Bank
Franchisees (600+)
Leading Co-Op & Rural Banks Catering to mass & Rural markets
Direct Mktg (22 locations)
Brokers (51)
3.1.1 AGENCY CHANNEL A life insurance agent is a representative of an insurance company authorized to sell insurance policies. A life insurance agent advises which policy is best for you. An unscrupulous agent could not only sell you the wrong policy, but may also lie that he got you a loaded premium, or be untraceable when you need him. The agent draws commissions from the insurer irrespective of the quality of service he provides to the policyholder and, as long as the policy is in force and premiums are being paid. The policyholder can go to the company directly if he is not fully satisfied with the agent. In case the agent leaves the insurance company, then the company may assign another agent to the person. The IRDA has prescribed a code of conduct for agents and may cancel the agent’s license in case of gross misconduct and fraud. So most companies normally terminate the agency agreement with the particular agent where a case of malpractice is actually found, and then, the agent is probably free to go to some other insurance company. Every individual company frames it's own set of internal guidelines of how they would deal with the agents. Each company decides the action to be taken against its agent depending on the
41
severity of complaint received and may even terminate the contract with the agent in case of an agent found guilty of malpractice. In India most of the insurance agents are actually part timers. The agent does plays a very important role but, the company is actually holding on and backing up the agent to ensure that he gives you the best service available. 3.1.2 BANCASSURANCE Bancassurance is a word, which appeared in France (around 1980) to define the sale of insurance products through a banking network. Bancassurance success is based on mix of factors (legal/regulatory environment, banks’ image and networks, products, banks’ marketing strategy). Bancassurance is allowed in all but one Asian market (Philippines). Though it is too early to predict, bancassurance has the potential to emerge as a significant distribution mechanism. Banks have not only data from which they can identify potential clients, but have also extensive reach and provide a point of contact for the insured. Bancassurance is very well fitted to Life products •
High level of complementarity’s with banking products
•
Bank tellers are comfortable with the products (mostly financial products)
•
Product Mix: Banks sell more unit-linked than other Life distributors
Banks have pushed the sale of Life Insurance for 5 main reasons: •
Mature and highly competitive banking markets, need for diversification
•
Broadening the Product Range
•
Capture the lion’s share of households’ long-term savings
•
Leverage banks’ competitive edge on marketing side
•
A substantial contribution to profits
The Bank branch unlike an agent cannot be elusive after the sale of the product and has to respond to the needs of the insured. If there is proper disclosure at the time of sale of policy and efficient post sale service, there will be significant increase in the use of this model by the insurers to enlarge their business. Bancassurance has tied with a complete
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spectrum of banking sector and alternate channel has more then 100 corporate agents and district co-operative banks.
3.1.3 GROUP AND ALTERNATE CHANNEL Besides the traditional agency model and through bancassurance, the fastest way of increasing the revenues is through the Group and Alternate Channel business. During my project I was associated with the Alternate Channel office of Bajaj Allianz in Mumbai. This model operates through corporate agents, brokers and franchisees.
3.1.3.1 CORPORATE AGENCY Corporate Agency is another area, which has been expanding rapidly. This is a new institution and we have no experience of the functioning of this new class of intermediary, as such an institution is not prevalent in insurance markets in the world. While this model has the potential to reach a large section of the population in a short time, there are concerns about the mode of sale of the policies. Insurance products are becoming complicated and unless the agent is conversant with the benefits and conditions attached to the policy, there is a distinct possibility of the sale being affected without full disclosure. While this may not be intentional the repercussions could have far-reaching consequences. The insurers will have to be extremely careful in dealing with corporate agents and keep a vigilant eye on the way the sales are affected. The IRDA would be issuing some guidelines on the manner of selection of corporate agents, the manner in which their activities should be monitored and the precautions to be taken to ensure that there is complete disclosure to the clients of the policy implications. 3.1.3.2 BROKER CHANNEL The insurance broker offers the most efficient distribution system through which clients purchase commercial insurance. As the non-life insurance market open gradually, the value of the insurance broker's role will be better understood. There will be increasing opportunities to serve the needs of midsize companies arid small enterprises by delivering the specific services these clients need and in the way they want them delivered.
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3.1.3.3 FRANCHISEE Franchisees are the budding entrepreneurs with requisite professional experience seeking financial freedom that can eventually be developed into corporate agents. Need for Franchisee •
Inroads into the market
•
Utilizing the entrepreneurial capabilities
•
Increasing the market Penetration
Prerequisite for Franchisee: •
Channel Partners Requisite: Financially sound. Well Educated. Have access to huge database. Experience of dealing with Financial Instruments should be preferred. Ability to manage a team of 10 sales Executives and 2 Tele Callers. Have a good reputation in the market. Office Space – 500 Square feet Tele callers –2 Telephone –2 Computer-1
•
Company Support Insurance Service executive –10 Recruitment, Training & Development Back office support Brand Name
Marketing support
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Viability and Profitability of the Franchisee
Approach to Appointment ratio
-
40: 5
Appointment to Sales ratio
-
5: 1
2 Tele Callers x 80 Calls a day
-
160Calls(Approx/ day)
120 Calls (Approaches) will yield
-
20 Appointments
20 Appointments will yield
-
4 Sales
4 Sales x 25 working days
-
100 Sales
Assuming each sale of Rs. 7,500
-
Rs. 7,50,000
Income of Franchisee @ 40%
-
Rs. 3,00,000
Miscellaneous outflow
-
Rs 29,000
Minimum Estimated Profit
-
Rs 2,71,000
Franchisee Model Role out Plan The Franchisee will be required to take Corporate Agency/Individual Agency of Bajaj Allianz. The Branch Manager of the Franchisee shall be Corporate Insurance Executive (CIE)/Individual Agent. The Sales Executives shall be imparted 4 day induction training at the time of appointment and shall be given half day Product and Sales Training every week. Each Franchisee shall be provided a Password through which they can log on to the Bajaj Allianz website to download Care Quote, Benefit Illustrations, etc. In case the average flow of business exceeds Rs. 25 lacs per month, dedicated operational support shall also be provided to the Franchisee to facilitate quick acceptance of proposals, etc. The Franchisee will need to have a separate bank account wherein the Company shall directly credit their commission.
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Choosing the right channel: The challenge is to develop efficient and cost effective distribution systems that •
Are integrated with a sound strategy and the product offering
•
Reflect an intimate knowledge of your target customers
•
Match their desired product experience
Decreasing distribution costs High Corporate
Product Complexit y Retail
Decreasing High product complexity High transaction value High advisory content
Increasing suitability Low complexity Low transaction value Standardized product
Low Direct Broker/ Agents
Bancassurance
Retailers/ Utilities
Internet
High
Distribution Reach
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3.2 PROFILING While the insurance sector is seeking to maintain a balance between acquiring customers and developing existing ones, customer acquisition is vital, as no retention strategy will entirely stem customer defection. That said, insurance companies are experiencing unacceptable levels of customer churn, thanks to which they are focusing on keeping the customers they already have in a bid to ensure a net growth in their customer base. Today, the focus is on selling more products to existing customers to improve profitability. Customer-focused strategies require CRM (Customer Relationship Management) to help acquire customers thorough various touch points and translate operational data into actionable insights for proactively serving customers.
Customer Profiling helps one find new customers for the business. It helps in extracting people and/or businesses that match the profile of the current customers. This provides you with a list of prospective customers, who could have already bought similar products, have a need for your product or are more inclined to buy your product or service. One will have a highly targeted prospect list to work from. As it applies to remodeling, Predo's Law--known as the 80/20 Rule--states that 80% of your sales come from 20% of your customers. Taken to the next level, it may well be true that 50% or more of your sales are coming from just 5% of your customers. Whatever the case at your company, you know who your "best" and "worst" customers are. Thus, a salesperson is more apt to spend the greatest percentage of time trying to close sales with the hardest-to-close prospects. A salesperson should really do just the opposite: spend the most time closing sales with the easiest-to-close prospects. To find out which prospects are easier to close, client profile need to be created. Sales of the future generally resemble sales of the past. It is great to "fire" all of your problem accounts and replace them with clients who are more like your favorites. Customer profiling helps you identify the common attributes of your best clients.
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Through profiling and using CRM insurance companies can enhance: •
Cross-and up-selling capability to provide market opportunities within an existing customer database.
•
Predictive capability to determine customer behavior.
•
Information regarding customer retention or attrition helps determine the likelihood of policy lapses and helps identify customers worth targeting for retention campaigns.
•
Customer segmentation that leverages data to create accurate categories for use in marketing strategies.
•
Market automation that combines analytics with campaign management functionality to help drive a more effective and efficient marketing campaign.
For the same, we met officials from several existing corporate agents and brokers. They helped us by: •
Telling about their primary business and categorizing their customer base
•
Expressing their view on various service quality parameters
•
Revealing their experience with the company and their expectations
During this activity we met the following:
Corporate Agents
J2 Infocomm (India) Pvt. Ltd.
Mr. R. K. Shah
Brokers
Mata Insurance and Reinsurance
Mr. Karn Dutt Sharma
Saviour Insurance
Mr. Jignesh Shah
Vantage
Mr. Khanindra Barman
Anand Rathi
Ms. Rekha Popat
Edelweiss
Ms. Bakhtawar
Pioneer Insurance Services Pvt. Ltd.
Mr. Himanshu Kawley
Continental Suraksha Franchisees
Harshad Hardwares
Mr. Harshad R. Parikh
Finlife
Mr. Kalpesh
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Questionnaire, which is annexed with the report was prepared to study the:
Operations of the Companies: To generate business the companies need to create leads and work on them by making them work and extracting profits. The BJAZ partners generally do it by taking out relevant details from the databases available. Even HSBC and Citibank provide databases, which are segmented into several sections that can help any business. They also follow the referral model. Once the lead is generated, the Insurance Sales Representatives take over. In case the deal is big Joint calls take place i.e., the Relationship Manager assists the ISR.
The kind of profits they earn: From the interaction I came to realize insurance does not play a major role in contributing towards the annual turnover of the companies, in case they are involved in other financial service distribution as well, for e.g., mutual funds. In Finlife less than 5% of turnover comes from insurance.
The kind of customers they have: Generally major chunk of the customer base of most of the partners falls in the corporate category. But there are brokers like Saviour Insurance who target all sectors of the society; professionals, corporate and government service officials. Also, Mr. Harshad Parikh who has taken up a franchisee generally targets professionals.
Association with Bajaj Allianz: Most of the partners have recently joined hands with the company. Alternate channel started in 2004. Thus, the association with most of the companies is less than 6 months.
Service Parameters affecting a company: The parameters that affect the companies were found to be promise – orientation, promptness,
reliability,
initiation,
product
variety,
marketing
efficiency
and
administration. In case of Bajaj Allianz, the partners were satisfied with the product
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variety and considered the company reliable. But, on the administration they wanted the company to improve.
Additional services expected: The partners wanted the company to invest in marketing and make it a year long campaign. They also expect more joint calls to take place. Moreover, the partners also wanted the company to improve on the service front.
What can be done to mutually increase the earnings: Some of the partners wanted more help from the company in lead generation and relevant support for the same. Some of them wanted BJAZ to reveal information about the clients who have rejected any kind of relationship with the company.
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3.3 PLAN COMPARISON Every day one has to deal with comparing different products. And if the work is connected with marketing, advertising or product manufacturing, one not only has to compare, but to show the comparison results to the co-workers and supervisors. The most informative way is to create such a comparison is a chart. In an insurance company as well one has to be ahead of the competitors. For this the company has to bring innovative products to market as well as keep pace with the features offered by other players in the market.
All said and done, the people should not think that the company is pushing a product on them. The employees should be well updated with the benefits of going for a particular plan of a particular company over any other plan or company. Keeping the same in mind, I prepared the comparison chart of various insurance companies with emphasis on the description of the best– selling product of each.
The plans are compared taking in view the: •
Charges
•
Liquidity
•
Commitment
•
Flexible Cover
•
Returns
•
Type of funds
•
Tax benefits
•
Death/ Maturity benefits
•
Duration, premium payment terms and mode
The ULIP guidelines have changed. The new guidelines aim at enhancing transparency, enlarging the insurance cover in a consistent manner and adhering to the medium as well as long-term investment characteristics of insurance products.
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But when compared with traditional insurance plans, ULIPs would easily score on all fronts. Considering the benefits, ULIPs should not be just bought or sold as an insurance plan. In fact they can actually be a one-stop solution for financial planning as they hold substantial potential to provide you with high returns, anytime liquidity, flexible term and flexible insurance cover with 100% tax free returns.
I went to different insurance companies assuming the role of a client who has got a new job and plans to invest in insurance. This helped in the industry study and comparison of best plans offered by various players in the insurance industry. The plan comparison was done solely for the company and was submitted to the project guide.
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CHAPTER 4 PROJECT WORK
Leads are generated via industry events, direct marketing, web casts, telemarketing, referrals and market presence-and then qualified thoroughly before moving to sales follow-up. In this project also multiple sources and methods were found for obtaining the fresh lead data available. The process of lead generation to closure of deals can be summarized as shown:
Starting from Database Generation
Final Meeting with AM
Tele Calling
Modus Operandi
Meetings as BDM Follow Up
Closure of Deal 53
The steps can be further enumerated with the help of the figure below:
Database
Tele Calling
Meetings
At the first place database was z generated through Internet, newspapers, referrals and directly going into the market.
Once the leads were generated area wise calling was done. and appointments were taken with Corporate Relation Managers.
If the client is interested and gives appointment, assuming the role of BDM meetings were fixed
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4.1 DATABASE GENERATION Several sources were used to gather the relevant data, such as: •
Newspapapers
•
Yellow pages
•
Internet
•
Directories
•
Help line
•
Magazines
The target clients included: •
Financial Consultants
•
Chartered Accountants
•
Financial Service Provider
•
Insurance Consultants
•
Tax Consultants
•
Placement Agencies
•
Auto Dealers
For deciding the target clients the primary thing that was considered was their access to huge database and their reputation in the market. Placement agencies and auto dealers were targeted for the first time. Besides, the idea of targeting real estate agents was dropped so as to focus on the above mentioned clients only, thus restricting the domain.
55
4.2 TELE CALLING
The Activity involved Calling up companies and getting contact numbers of the concerned person dealing in Insurance. Once the right person was contacted a brief introduction of Bajaj Allianz was given along with a briefing of the various plans and products of the company.
The pitching was different for corporate agents and brokers. The brokers can sell only insurance and for as many companies as they wish to. So, the brokers had to be convinced to add one more company to their kitty. But in case of corporate agents, it is different. They can team up with only one company. So they had to be convinced of the benefits they would get if they chose Bajaj Allianz.
Annexed with the report is the proposal, which was prepared to give the client information about the company and the modus operandi of the operating model. The secondary thing was to get a specific kind of communication from the prospects (especially those having the negative response) that would serve as a business opportunity in the near future. The obvious communication was to get an e-mail id of the recipient. Once this happened, the next thing was to send informative mails in reference to the business model and the various schemes of Bajaj Allianz.
In case of negative response a mail was sent exploring the bleak possibility and in case of a positive response appointment was taken with the client so as to discuss in length the business proposal.
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4.3 MEETINGS The clients generally gave appointment in following cases: •
Is completely unaware of what the company has to offer
•
Wants to expand its business
•
Is already into life insurance business with some other company
•
Is into general insurance business and is ready to explore the possibility of life insurance business
•
Is a financial service provider and wants to add insurance into the basket of his financial products
Follow-up was a process where the gap between the earlier communication and the informative mail could be bridged, which possibly was the reason to seek appointments and pitch in a business proposal. After the first meeting, the response was reported to the project guide. On that basis follow up was done through e-mails, mailing of brochures and other documents. Henceforth another appointment was taken to give the presentation and finally the Area Manager used to close the deals by signing an agreement and entering into relationship. In the course of two months we met around 20 clients and were able to enter into an agreement with 8 of them. Annexed with the report is the list of documents required to enter into a corporate agency model.
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4.4 CLOSURE OF DEALS After several rounds of discussions and debate, some of the deals were finalized. The companies that have agreed to associate with Bajaj Allianz Life Insurance Co. Ltd. are: As Corporate Agents: •
Parag Parikh Financial Advisory Services Ltd.
•
Integrated Enterprises India Ltd.
•
Ace Richesse
As Brokers: •
Tower Insurance
•
Wealth zone
•
K R Choksey
As Franchisee •
Hemdev and Sons
•
Blue Chip Investments and Finance
Short corporate profiles of these companies are as under:
PARAG PARIKH FINANCIAL ADVISORY SERVICES LTD. Parag Parikh Financial Advisory Services Ltd. is a leading Investment Advisory Firm with a reputation built on performance. With over 2 decades of rich and varied experience, a thorough knowledge of the markets, proficiency in risk management, innovative and focused research, Parag Parikh Financials offer advise on investing in the equity and fixed income markets and mutual funds. The client base includes Financial Institutions, Mutual Funds, Foreign Institutional Investors, Banks, Corporate and Individual Investors. Services offered are: •
Investment Research
•
Institutional Equity and Fixed Income Broking
•
Derivatives Broking
•
Wealth Management solutions
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INTEGRATED ENTERPRISES INDIA LTD. Integrated Enterprises is a 32-Year-Old Professionally-managed Public Limited Company. It has over 100 Branches across the country serving over 5 lakh investor families. The company is a trusted household name in Investment Counseling with a service spectrum unto 2 Lac Demat Accounts. The investment advisory services include Marketing Corporate Fixed Deposits, Debentures, Public Sector Bonds, Mutual Funds, UTI and Public Issues. It also facilitates Buying & Selling of Securities through NSE, Opening of Depository Accounts, Demat and other related activities. Besides offering other corporate and tax related services it is also into Marketing Life, Health & General Insurance Schemes.
ACE RICHESSE (INDIA) PRIVATE LIMITED Ace Richesse (India) Private Limited is a part of the renowned Shapoorji (SP) Group, the multi-billion-business conglomerate. ACE, a financial boutique offers a full range of financial services and products ranging from equities to mutual funds to enhance your wealth and hence, achieve your financial goals. Arihant group, which is an associate of ACE, is a corporate member of the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE), the Multi Commodity Exchange (MCX), the National Commodity and Derivatives Exchange (NCDEX) and Depository Member of NSDL. Its operations include stock broking and distribution of various financial products-including private and secondary placements of debt equity and Mutual Funds. ACE provides to its clients with real-time service, multi-channel & 24 x 7 access to all information and products. They serve the needs of all kinds of investors with a userfriendly state of the art, cost effective trading facility. Their aim is to set up a comprehensive retail distribution system to deal with a variety of clients and products. This system includes its own sales staff and retail network spanning across the country. ACE's main areas of business are
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•
Institutional business,
•
Private client services,
•
Client fund management and
•
Retail distribution of Mutual Funds, Depository Services, Loans and other Financial Services.
TOWER INSURANCE & REINSURANCE SERVICES (INDIA) PVT LTD Tower was established in 1979. After change of Insurance Regulations in India, TOWER was among the first 3 to get license from Insurance Regulatory Development Authority as
COMPOSITE
BROKER
both
for
reinsurance
&
direct
broking.
They provide insurance solutions to corporate and individuals to enable them manage their exposures successfully. They specialize in: •
Property
•
Liability
•
Engineering
•
Marine
•
Aviation
WEALTHZONE Wealth Advisors (India) Pvt Ltd, a full service investment advisory company of the JV Gokal group, has launched insurance broking services through its subsidiary WAI Insurance Broking Services (WAI IBS). Wealth Advisors currently has a presence in Chennai, Bangalore, Delhi, Mumbai and Coimbatore and offers wealth management services to its high net worth clients and services corporate clients based on their investment needs. Its retail division, Wealth zone, is a one-stop-shop for financial products distribution to the retail investors and operates through 25 outlets across the country.
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K R CHOKSEY Kisan Ratilal Choksey Shares & Securities Pvt Ltd, a Full Service Broking House offering comprehensive personal financial solutions was established in 1979 and has since then been servicing an eclectic clientele comprising High Net Worth Individuals, Corporate, NRI's, Mutual Funds, Insurance Companies, Banks as well as Other Financial Institutions. KRChoksey has been dedicated to creating growth-oriented investment solutions to suit its Investor Clients financial priorities - their current needs and future obligations. Insurance provides varied solutions addressed to the various vulnerabilities felt by an individual today. The KRC Insurance Division helps you identify the particular Insurance Product that provides you with maximum returns and gains for a protected future. The KRC Insurance Division carefully matches the Insurance Products available to your personal and financial profiles and then offers you suitable solution options.
HEMDEV & SONS The company is owned by Mr. Nandlal H. Hemdev. The company is involved is several businesses specially Inter Corporate Finance, Mutual Fund and PSU Bonds. For the first time they are taking up a franchisee with any life insurance company.
BLUE CHIP INVESTMENTS AND FINANCE The company is owned in partnership by Mr. Atul Karve and Mr. Deepak Pandit. The company has qualified Million Dollar Round Table, USA. They are into: •
Equity Trading, Demat
•
Life Insurance
•
Mutual Funds, Postal Schemes, IPOs
•
Retirement Planning, Pension Plans
•
NRI Investments, Will, Agreements
•
Taxation, Tax-free Investments
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CHAPTER 5 CONCLUSION
5.1 RECOMMENDATIONS As the numbers indicate, private participants are making steady inroads into a territory that was once LIC's sole preserve. To a considerable extent, product innovation has played a vital role in this achievement, as is vindicated by the success of unit-linked plans. The company must overcome the mindset of the customer that life insurance is Life Insurance Corporation of India (LIC). The Population of India is 1 Billion. Our economy is 5th largest in the world in terms of Purchasing Power Parity (PPP). The GDP growth Rate has been over 6% per year on an average for the last decade. The Savings Rate is around 26% of GDP. The estimated middle class population is 300 Million, while the insured population is 70 million only. So there is huge scope in the Indian market. •
Portfolio Composition: Portfolio composition for unit linked plans is decided by the insurance companies and is not regulated by the IRDA. This may make an investor gravitate towards a plan that invests purely in equities, ignorant of the risks associated with such a decision, and attracted solely by the prospects of high returns. The company should take care of the same, so that it can give higher returns.
•
Disclosure: The one problem with analyzing insurance companies is that the disclosure usually isn't enough. Proper analysis requires substantial disclosure of things like reserve ratios, exposure to catastrophic/environmental loss, and details of the company's operations. This isn't to say that the financial statements are not enough for adequate analysis, but to dig really deep, a person needs more information. To make people happy, complete information should be disclosed.
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•
Need for Marketing: As far as the company is concerned, the partners want the company to invest in marketing and make it a year long campaign. The importance of marketing to enable continued success of business cannot be ignored. Service industry is all about experience. So the people should be made to realize that they will get a good experience if they get associated with BJAZ. For the same aggressive marketing should be done. It also has to remove the perception that anything that looks good is expensive
•
Joint Calls: They also expect more joint calls to take place. Some of the partners want more help from the company in lead generation and relevant support for the same. Some of them want BJAZ to reveal information about the clients who have rejected any kind of relationship with the company.
•
Services: Moreover, the partners also want the company to improve on the service front. The back office staff should be increased. This will help in providing personalized service to the clients, so that the commissions reach the party on time and the partners get up to date information about the upcoming products, schemes and competitions.
•
Tap Insured Market: The Company can also run the risk of tapping an already insured market for repeat insurance instead of tapping new virgin pockets in the market. This can help the company in reducing the cost that is involved in educating the people.
•
Work-site Marketing: With changes in human resources management polices and compensation packages, work site products do have a definite market that cannot be ignored. This would help in maintaining a high hit ratio with the intermediaries.
So, the company should work on the above mentioned front to satisfy the existing client base.
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5.2 LEARNINGS •
HARMONIZATION OF PERSONAL AND PROFESSIONAL LIFE Summer internship was my first step in the corporate world. My project being a live project in Mumbai made me audacious and instilled in me the power to confront anything and everything.
•
APPLICATION OF CONCEPTS, TOOLS, TECHNIQUES AND SKILLS LEARNT AT THE INSTITUTE While doing my summer internship I realized the importance of comprehensive knowledge gained at the institute. The concepts, tools and techniques of all the subjects ranging form Organizational Behavior to Analysis of Written Cases and Communication, Financial Management to Marketing Management, Strategic Management to Marketing Research, were applied to real life business situations.
• AUGMENTATION OF SOFT SKILLS The project also helped in augmenting my soft skills, which will help me a lot in the future. My learning’s were: -
Adjusting with the work environment of the company Teamwork Presentation skills in the actual market Handling the various organizational issues Meeting Deadlines Punctuality and Discipline Patience Chivalry
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•
FUTURE LEARNING I got insight into the nitty-gritty of the sector and its future. Not only I tried to apply our first year MBA lessons into the project but also got a focus for learning in the second year. I would attempt to relate the second year lessons with my internship experiences and try to learn further. This would help me prepare for the final placement.
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5.3 CONTRIBUTION Apart from being an enriching experience for me, the summer training contributed to the organization as well. •
CLOSURE OF DEALS The deals that have been closed will engender huge amount of business for the company. KR Choksey being the second corporate agency with the company is itself expected to give more than One Crore of business annually to the company. Another national tie-up with Ace Richesse will also generate handsome revenue for the company.
•
DATABASE GENERATION In a limited span of two months it was not possible to extract business from the new deals, which were closed. But significant contribution has been made in terms of lead generation. Complete database was given to the company, which would surely be of further reference to the organization.
•
RESEARCH Through the profiling of existing clients and the response generated from the questionnaire the analysis made was reported to the company, which will help the company to know about its: Competitive position Satisfaction level of its clients Areas of improvement Products Service Relationships
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BIBLIOGRAPHY
Literature Review •
Annual Report, Bajaj Allianz life Insurance Company limited.
•
http://www.ciionline.org/Sectors/62/Images/INSURANCE%20IN%20IN DIA.pdf. Proposal form and other documents used by the company for entering into
•
a new agreement Various PowerPoint Presentations given by the company for study of
•
plans, tax, underwriting and channel study etc.
Internet Industry Study •
http://www.irdaindia.org/
•
http://www.etstrategicmarketing.com/
Company Study •
http://www.allianzbajaj.co.in/
McKinsey 7S Model •
http://www.domainb.com/finance/insurance/allianz_bajaj_life/20041013_aims.html
•
http://www.mib.com/kd/html/Insurance_Distribution_India.html
Porter 5 Forces Model •
http://www.12manage.com/methods_porter_five_forces.html
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Profiling •
http://www.highbeam.com/
•
http://www.springlakestudios.com/the_system/
•
http://www.expresscomputeronline.com/20040216/indiatrends02.shtml
Database generation •
http://www.mumbaipage.com/
•
http://www.allpages.com/
•
http://www.maharashtradirectory.com/
•
http://yellowpages.sulekha.com/mumbai.htm
•
http://www.mumbainet.com/index.htm
•
“Just Dial” services in Mumbai were also used for the updating the database, generated through the above sources.
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ANNEXURE A PLANS – BAJAJ ALLIANZ
Some of the highly selling products of Bajaj Allianz are: •
INVEST GAIN
It is a participating (with profits) endowment plan. There are limited premium payment options available. There are Minimum Guaranteed Benefits at Maturity or Death, whichever is earlier. The Minimum Guaranteed Benefit is the “Sum Assured”. The Minimum Guaranteed Benefit is enhanced by participation in profits (compounded reversionary bonuses), as declared by the company. The payouts in case of death will be the sum assured plus declared compound reversionary bonuses plus interim bonus (the bonus amounts being the amount accrued from the sum assured plus bonuses thereon). However, if the insured person’s age is below 7 at the time of death, then the death benefit equals the sum of all premiums paid. In case of death after 15 full policy years, the company may pay terminal bonus for in-force policies. The policy terminates on death of the life assured. The policyholder may select the following Additional Benefits. •
Family Income Benefit
•
Comprehensive Accident Protection
•
Critical Illness Benefit
•
Hospital Cash Benefit
The policy term of the additional benefits is equal to the term of the policy.
Premiums Under this plan, we offer premium payment terms that are equal to the policy term and limited premium payment terms as well.
69
•
CASH GAIN Cash Gain is the only money back product to offer quadruple life cover. The additional amount payable for extra protection is also nominal. It is a participating (with profits) money back plan. The customer has a choice of 4 terms – 15, 20, 25 and 30 years. Cash benefits are payable every 1/5th year of the selected term. A total of 4 Cash Benefits payable - whatever be the term, plus the maturity benefit. The number of payouts = 5, including maturity benefit. Most companies offer only 4 payouts. 75% of Sum Assured are paid out as 4 Cash Benefits. 50% of Sum Assured are paid with bonuses as maturity value. A total of 125% of Sum Assured + bonuses is thus paid out. The maturity benefit would also include reversionary bonuses and a possible terminal bonus. Despite Cash benefits at regular intervals, the life cover is uniform. Note: The total payouts are 125% of the Sum Assured. This is a guaranteed payment, a USP. Most companies pay only 100% of the Sum Assured.
The customer may select any 1,2 3 or 4 or any combination or all of the following additional benefits: •
Family Income Benefit
•
Comprehensive Accident Protection
•
Critical Illness Benefit
•
Hospital Cash Benefit
USP: No other money back product offers the Family Income Benefit.
The basic First Year commission for Cash Gain is now 25%, instead of 20% for Cash Care. With Additional FYC, the total first year commission can go up to 40% of the FYP, instead of 32% for Cash Care. That is an increase of 8% in the First Year Commission itself over Cash Care.
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•
RISK CARE This is a non-profit pure term insurance plan providing basically death cover equal to the sum assured. It is available as Regular Premium and Single Premium. There is no survival or maturity benefit, and therefore, the premiums are very low. For policies other than the single premium plan, the policyholder can opt for additional benefits like Critical Illness Benefit, Hospital Cash Benefit, Accidental Death Benefit, Accidental Permanent Partial/Total Disability Benefit and Waiver of Premium Benefit.
High Sum Assured Rebate (HSAR) Premium discount will be offered for all policies where the sum assured exceeds the minimum sum assured by at least Rs. 10,000. For Risk Care Economy Single Premium For each full Rs.10, 000/- by which the sum assured exceeds the minimum sum assured, i.e. Rs. 100,000/-, there would be a discount of Rs. 40/-. For all other Risk Care packages (Regular Premium) For each full Rs.10,000/- by which the sum assured exceeds the minimum sum assured, i.e. Rs. 100,000/-, there will be a discount of Rs. 5/-.
•
SWARNA RAKSHA ROC – The Immediate Annuity Plan This is a retirement income plan, to help people get a regular income post retirement. The benefits under this policy vest on the Purchaser/annuitant on the date of commencement.
The benefit payment would be as under: Life Annuity with Return of Purchase Price: A fixed annuity for life will be payable. Life Annuity with Return of Purchase Price: On death of the annuitant, the nominee will be entitled to receive an amount that is equal to the lumpsum used to purchase the annuity.
71
The amount invested under this plan and all policy payments made by Allianz Bajaj Life Insurance Company under this plan are subject to tax as per the provisions and existing tax guidelines prevalent at the time of payment. The amount invested is allowed tax benefit under Section 80CCC (1) of the Income Tax Act, as of now.
•
UNITGAIN PLUS This is a whole of life, regular premium payment, investment linked life insurance policy. A major part of the premiums are invested in units. The units cannot be traded in the Open Market. In UnitGain Plus, the customer chooses the Premium level. Based on that, there is a range of Sum Assured between a Minimum and Maximum level, which he/she can choose. The death benefit is the higher of: a) The Sum Assured chosen (less the value of units withdrawn by partial surrenders) Or b) The value of units. The mortality charge is zero once fund value crosses SA. The death benefit may be increased without any underwriting every 3rd policy year up to 4 times. The policyholder has the option to decrease the Basic SA at any time.
It is a whole of life policy – i.e. there is no maturity date. However, it can be positioned as a whole of life, endowment, money back or any combination thereof and even as a regular tax free regular income plan for the customer. There is option to withdraw cash – partially or fully, anytime after full 3 years premiums have been paid. The following additional benefits are available with UnitGain Plus: •
Accidental Death Benefit (ADB)
•
Accidental Permanent Total/Partial Disability Benefit (APT/PDB)
•
Critical Illness Benefit (CI)
72
•
Hospital Cash Benefit (HC)
The additional benefit charges are level premium – i.e. they will remain constant during the tenure of the policy. Charges are deducted only till age 65. Charge for additional benefits is deducted through monthly cancellation of units. The customer may decide how long he wishes to pay the premium. There is no fixed premium payment term.
The allocation rates for regular premium are: •
76% in Y1
•
97% in Y2 onwards.
Allocation of top-up premiums as well as incremental amount of regular premium is 98%. Allianz Bajaj offers a choice of 5 funds to the customer. •
Equity Index Fund (Equity Fund tracking NSE NIFTY)
•
Equity Plus Fund (Pure Equity Investment advised by DSP Merrill Lynch)
•
Debt Plus Fund
•
Balanced Plus Fund
•
Cash Plus Fund
This is the largest choice of funds available under unit linked products in India.
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PREMIUM CALCULATIONS (arbitrary figures)*
Premium Payment Term: 20
Benefit Term: 20
Invest Gain
Cash Gain
Main
Swarna Raksha I - Life Guaranteed
Benefit
Type of Premium Type of Premium Payable
Sum
Payment : Regular
Payment : Regular
Age:
Assured
Age: 27 (Male)
Age: 27 (Male)
Spouse Age: 47
500000
22144
35791
36853
1000000
43863
71098
73706
1500000
65582
106404
110928
2000000
87301
141711
148150
50
Annuity
(Male)
(*Source: CareQuote v 8.0)
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ADDITIONAL BENEFITS
FAMILY INCOME BENEFIT The plan is available for the premium payment terms. It can be chosen if the issue age of the Life Assured is between 18 and 50 years. In case of death or accidental total permanent disability of the Life Assured during the term of the policy, ALL FUTURE PREMIUMS ARE WAIVED and a monthly family income benefit of 1% of the sum assured is payable for a period till the end of the policy term, or for 10 years, whichever is higher.
COMPREHENSIVE ACCIDENT PROTECTION: (Offered as a single additional benefit) It comprises of the following •
Accidental Death Benefit
•
Accidental Permanent Total/ Partial Disability Benefit
•
Waiver of Premium Benefit in case of Accidental Permanent Total Disability.
These three benefits are related to accidents and the customer can be assured of having all of our additional benefits related to accident when the “Comprehensive Accident Protection” is selected. This benefit is available only where premium payment term is equal to policy term.
Accidental death benefit It is paid in case of death due to accident. It can only be chosen if the issue age of the policyholder is not less than 18 and not more than 50 years. The additional amount payable in the event of accidental death will be the lower of: •
The guaranteed minimum death benefit
•
Rs 50,00,000/- under all BALIC policies of the policyholder taken together.
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The Accidental Death Benefit shall be payable if the policy is in force for the full sum assured.
Accidental Permanent Total/Partial Disability Benefit Benefit is provided till age 65 or maturity, whichever is earlier. This benefit includes coverage for both, accidental permanent partial and accidental permanent total disability. The amount payable in the event of accidental permanent partial disability will be: •
50 % of the sum assured
•
Rs 25,00,000 under all the BALIC policies of the policyholder taken together
whichever is lower If the policyholder did not receive a benefit for accidental permanent partial disability before, the amount payable in the event of accidental permanent total disability will be: •
The sum assured
•
Rs 50,00,000 under all the BALIC policies of the policyholder taken together
whichever is lower If the policyholder did receive a benefit for accidental permanent partial disability before and the time passed from the occurrence of the partial disability is less than one year, the amount payable in the event of accidental permanent total disability will be: •
50 % of the sum assured
•
Rs 25,00,000 under all the BALIC polices of the policyholder taken together
whichever is lower The policyholder has the option to receive the Accidental Permanent Total/Partial Disability benefit either as a lump sum or as A GUARANTEED ANNUITY OF 10 equated annual instalments.
CRITICAL ILLNESS BENEFIT The critical Illness coverage can be selected by the policyholder, subject to a minimum of Rs. 50,000 and a maximum equal to the Basic Sum Assured selected. The Critical Illness
76
Cover selected can be lower than the Basic Sum Assured subject to the above condition being met.
HOSPITAL CASH BENEFIT This is a unique offering, first offered in the market by Allianz Bajaj. The policyholder may select hospital cash coverage with a daily hospital cash amount @ Rs.4 per Rs.1000 Hospital Cash Sum Assured subject to •
a minimum of Rs. 50000 HC Sum Assured and
•
a maximum of Rs. 250,000 HC SA or the basic Sum Assured,
Whichever is lower.
FLEXIBILITY IN COVERAGE Flexibility in Coverage is a unique feature provided by Allianz Bajaj. Comprehensive Accident Protection can be included and excluded at any policy anniversary. Customers of one package can move to a different package by adding or deleting Additional Benefit Combination 1 (ADB, APT/PDB,WoP) at any policy anniversary (Premiums will be adjusted accordingly)
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ANNEXURE B
TYPE OF PLANS
ENDOWMENT POLICY An endowment policy covers risk for a specified period, at the end of which the sum assured is paid back to the policyholder, along with the bonus accumulated during the term of the policy. An endowment life insurance policy is designed primarily to provide a living benefit and only secondarily to provide life insurance protection. Therefore, it is more of an investment than a whole life policy.
Endowment life insurance pays the face value of the policy either at the insured's death or at a certain age or after a number of years of premium payment. Endowment policy is an instrument of accumulating capital for a specific purpose and protecting this savings program against the saver's premature death.
GROUP INSURANCE Group insurance offers life insurance protection under group policies to various groups such as employers-employees, professionals, co-operatives, weaker sections of society, etc. It also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost.
Group insurance plans have low premiums. Such plans are particularly beneficial to those for whom other regular policies are a costlier proposition. Group insurance plans extend cover to large segments of the population including those who cannot afford individual insurance. A number of group insurance schemes have been designed for various groups. These include employer-employee groups, associations of professionals (such as doctors, lawyers, chartered accountants etc.), members of cooperative banks, welfare funds, credit societies and weaker sections of society.
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JOINT LIFE INSURANCE POLICY Joint life insurance policies are similar to endowment policies as they too offer maturity benefits to the policyholders, apart form covering risks like all life insurance policies. But joint life policies are categorized separately as they cover two lives simultaneously. This offers a unique advantage in some cases, notably for a married couple or for partners in a business firm.
Under a joint life policy the sum assured is payable on the first death and again on the death of the survivor during the term of the policy. Vested bonuses would also be paid besides the sum assured after the death of the survivor. If one or both the lives survive to the maturity date, the sum assured as well as the vested bonuses are payable on the maturity date. The premiums payable cease on the first death or on the expiry of the selected term, whichever is earlier.
LOAN COVER TERM ASSURANCE POLICY Loan cover term assurance policy is an insurance policy, which covers a home loan. Such a policy covers the individual's home loan amount in case of an eventuality. The cover on such a policy keeps reducing with the passage of time as individuals keep paying their EMIs (equated monthly installments) regularly, which reduces the loan amount.
This plan provides a lumpsum in case of death of the life assured during the term of the plan. The lumpsum will be a decreasing percentage of the initial sum assured as per the policy schedule. Since this is a non-participating (without profits) pure risk cover plan, no benefits are payable on survival to the end of the term of the policy.
MONEY BACK POLICY Money back policy provides for periodic payments of partial survival benefits during the term of the policy, as long as the policyholder is alive. They differ from endowment policy in the sense that in endowment policy survival benefits are payable only at the end of the endowment period.
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An important feature of money back policies is that in the event of death at any time within the policy term, the death claim comprises full sum assured without deducting any of the survival benefit amounts, which may have already been paid as money-back components. The bonus is also calculated on the full sum assured.
PENSION PLAN A pension plan or an annuity is an investment that is made either in a single lump sum payment or through installments paid over a certain number of years, in return for a specific sum that is received every year, every half-year or every month, either for life or for a fixed number of years.
Annuities differ from all the other forms of life insurance in that an annuity does not provide any life insurance cover but, instead, offers a guaranteed income either for life or a certain period. Typically annuities are bought to generate income during one's retired life, which is why they are also called pension plans. By buying an annuity or a pension plan the annuitant receives guaranteed income throughout his life. He also receives lump sum benefits for the annuitant's estate in addition to the payments during the annuitant's lifetime.
TERM LIFE INSURANCE POLICY Term life insurance policy covers risk only during the selected term period. If the policyholder survives the term, the risk cover comes to an end. Term life policies are primarily designed to meet the needs of those people who are initially unable to pay the larger premium required for a whole life or an endowment assurance policy. No surrender, loan or paid-up values are granted under term life policies because reserves are not accumulated. If the premium is not paid within the grace period, the policy lapses without acquiring any paid-up value.
UNIT LINKED INSURANCE PLANS (ULIP) Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of protection and flexibility in investment. The investment is denoted as units and is
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represented by the value that it has attained called as Net Asset Value (NAV). The policy value at any time varies according to the value of the underlying assets at the time. ULIP provides multiple benefits to the consumer. The benefits include: •
Life protection
•
Investment and Savings
•
Flexibility
•
Adjustable Life Cover
•
Investment Options
•
Transparency
•
Options to take additional cover against
•
Death due to accident
•
Disability
•
Critical Illness
•
Surgeries
•
Liquidity
•
Tax planning
WHOLE LIFE INSURANCE POLICY A whole life policy runs as long as the policyholder is alive. As risk is covered for the entire life of the policyholder, therefore, such policies are known as whole life policies. A simple whole life policy requires the insurer to pay regular premiums throughout the life. In a whole life policy, the insured amount and the bonus is payable only to the nominee of the beneficiary upon the death of the policyholder. There is no survival benefit as the policyholder is not entitled to any money during his / her own lifetime.
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ANNEXURE C
QUESTIONNAIRE
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD. We are conducting a survey to assess the needs of the alternate channel partners of Bajaj Allianz. For this purpose, we would like you to spare a few minutes and fill up this questionnaire. The information is only for research purposes and will be kept confidential. Thank you. Name: ……………………………………… Age: ……………… Sex: ……………… Primary Business: ………………………….. Job Profile: …………………………………. Qualifications: ………………………………
1. Do you deal in any of the following financial services? (Tick as appropriate) a) Mutual Funds b) Stocks c) Bonds d) Others (Specify) ……………………………………………………….. 2. What is the strength of your sales force? ……………………… 3. Major chunk of your customer base falls under which category? a) Professionals b) Corporate c) Government Services
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1. Since how long you have been associated with Bajaj Allianz? a) Less than 3 months b) 3 – 6 months c) 6 months – 1 year d) More than 1 year 2.Please rate Bajaj Allianz on the following parameters to judge the service quality.(Tick your choice, 5 being the most favourable) 5 4 3 2 1 Promise Oriented Promptness Reliability Initiation Product Variety 3. Please rate Bajaj Allianz on the following parameters. (Tick your choice, 5 being the most favourable) 5 4 3 2 1 Acceptability No Hidden Costs Associated Benefits Relationship Oriented Support 4. Answer in relation to the competition packages provided by Bajaj Allianz.. a) Are you aware about the existence of such schemes? (Yes / No) b) Are you communicated the information at the right time? (Yes / No) c) Please encircle your satisfaction level, 5 being the most satisfactory. 1 2 3 4 5 5.
Are you satisfied with (Tick as appropriate) a) The services the Relationship Managers extend to you. (Yes / No) b) The commission earned (Yes / No) c) The time in which the commission reaches your end. (Yes / No)
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6. In a typical month, how much business are you able to do for Bajaj Allianz? ....................................................................................................................................... 7. Please compare Bajaj Allianz on the following parameters: (Rate each on the scale of 1 – 5, with 5 as the most favourable) Value for Money Product Variety Service Time
No Hidden Costs
Bajaj Allianz ICICI Pru SBI Life HDFC Life Birla Sun Life Kotak Life 8. You prefer: (Tick as appropriate) • Services over Benefits • Benefits over Services 9.
Is there any additional service you expect from Bajaj Allianz? Please specify, if any. ....................................................................................................................................... .......................................................................................................................................
10.
Is there any additional service you expect from the Insurance Industry in general? Please specify, if any. ....................................................................................................................................... .......................................................................................................................................
11.
Please complete the following statement. I prefer Bajaj Allianz over other Insurance Companies because .................................... ………………………………......................................................................................
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ANNEXURE D
PROPOSAL
The proposal that was used to explain the prospective clients how the alternate channel model works is as under: BAJAJ –A well known and trusted brand name. Bajaj Allianz Life Insurance Company Ltd operates with the support of its distribution partners to distribute Life insurance products to their client base. Bajaj Allianz provides active support, in terms of training to the identified Channel Partners & associates. It also provides dedicated manpower support to actively assist in sales. Products in Life Insurance, Unit linked and Pensions At Bajaj Allianz, we believe in creating Plans that are tailor-made solutions for ones requirement. To find the right fit, we have brought out a comprehensive range of products such as Endowment, Child plans, Money-Back, whole of life, loan protection, Unit Linked and individual pension products along with riders for accidental death, critical illness and additional life cover. BALIC Distribution Model Bajaj Allianz’s distribution plan has three major components. One direct sales force driven by agents. The other is bancassurance. Our major bank tie up includes Standard Chartered, Syndicate Bank. Through corporate agents such as Banks, Nifco, Brokers, etc. With this in view, Bajaj Allianz has been in dialogue with distributors of financial services (NBFCs), Banks & NGOs exploring partnerships for distributing their life insurance and pension products. This approach offers a win-win situation for both parties. While BZAG is able to access a wider segment of the insuring community and spread their business, corporate agents as an intermediary are able to meet their customers’ wider needs in financial services thus strengthening the relationship. In this process the intermediary is also able to get significant net revenues in terms of commission, which adds to their profitability. It is in this context that Bajaj Allianz would like to have a dialogue with you with a proposal to distribute Bajaj Allianz’s life insurance products under a mutually beneficial arrangement. Operations Rollout of operation can be made in one or more phases for the first year of operations. The locations / areas to be covered etc will be selected in consultation with each other.
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Model A dedicated Relationship Manager would be there to assist each corporate agent and broker. There would be Bajaj Allianz Life Insurance Company trained employees for assistance. The organization with which we are tying up, with their access to customer database would generate leads and carry out the distribution of the Life Insurance products with the help of their dedicated sales force or with the help of the man power provided by us. The Corporate Agents, Brokers and other intermediaries sell life insurance business and earn commission on the basis of volume of business. Support From Bajaj Allianz, Relation Manager- Alternate Channel – Mumbai will provide the Sales and Service Support to your organization and be a constant support in all aspects. Marketing Support •
Sales contest which acts as incentive to sell insurance.
•
Promotional materials like banners/posters displayed in the organization to create awareness.
Training A dedicated Trainer of Group & Alternate Channel will be involved in the Content development and employee training. Periodic Review A periodic review will be conducted at the location mutually agreed between parties from time to time to review and ensure better productivity and resolve emerging issues. Going Forward During the next meetings all the issues will be discussed in detail and the contents of an agreement filled-out. Once the issues are discussed at meetings a memorandum of understanding will be entered into and the initiatives for training etc. will be launched on the basis of rollout plan in detail. Products In our suite we have a whole range of both Traditional Products as well as Unit Linked Products. We also specialize in developing products specifically for our partners.
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ANNEXURE E
CORPORATE LICENCE
Checklist for corporate agency license Coding Name of the Corporate Agent (Applicant): Location: Imd code: Line of Business: Name of the CIE: Names of all specified persons:
Form for allotment of IMD Code filled up and signed:
1. Form IRDA-Agents-A1 duly filled and signed by the applicant (CIE).
2. Form A2 for Specified person/s
3. At least one Specified Person at the time of licensing
4. Copy of the resolution of the Partners/Board of Directors authorizing the person (Name of CIE) signing the application to sign the document and apply for agency and the agency agreement. The name of the Corporate Insurance Executive should be mentioned in the same.
5. Certified Copy of the Memorandum and Articles of Association/Partnership Deal with the Objects clause confirming procuring and soliciting of Insurance business as Corporate Agent as a ‘main object’.
6. Proof of registration of partnership/ Certificate of incorporation of Company,
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7. In the event the company is dedicated solely for acting as CA for insurance, then proof that the company is a public limited company and that the paid up share capital is in excess of Rupees Fifteen Lakhs. In all other cases, certification from the Company Secretary/ Director of the Company stating the principal business of the Company.
8. Certification from the Company Secretary/ Director that none of the group companies of the applicant is involved in insurance business or if involved then the full details thereof. If the group companies have insurance business, specific approval of IRDA is required.
9. Certified audited balance sheet of the Corporate Agency for the previous finance year.
10. Certification by the applicant (Company) that it has not been a CA for any other insurer, or, if it was, then the reasons of terminating that agreement along with a copy of NOC or the letter requesting NOC and that 90 days has elapsed since then as well as the copy of the specific written approval from IRDA allowing it to take up corporate agency with Bajaj Allianz.
11. Certificate of completion of training of 100 hrs (for life insurance agents) / 50 hrs (for composite agents) in respect of the Corporate Insurance Executive and Specified Persons. Training should be from an IRDA accredited institute.
12. APPLICABLE FOR COMPOSITE LICENSE: In case of all insurance executives and principal officers, a list of such persons and copies of the general insurance agency certificates allowing the said individuals to solicit and procure general insurance business (in case the applicant operates in multiple locations, these details are required for all such locations).
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13. For all insurance executives and principal officers, a list of such persons and copies of the life insurance agency certificates allowing the said individuals to solicit and procure life insurance business (in case the applicant operates in multiple locations, these details are required for all such locations)
14. Certificate from the Company Secretary/ Director of the applicant that the Chief Insurance Executive, Designated Officer and Specified Persons are all permanent employees of the applicant along with their educational and professional qualifications and insurance qualifications (like FFII, AFII etc.).
15. Two Photographs of the Corporate Insurance Executive
16. Copy of the Pre-recruitment test form with the date of test taken and result date with confirmation of passing of CIE and Specified Person 17. Age Proof, Proof of Educational Qualification (Minimum - 12th Std. Pass certificate) of CIE and Specified Person
18. Particulars of payment of fees: (Date and amount collected)
19. Fee payable per Specified Person- Rs 500, Fee payable for Corporate Agency License -Rs 250 Receipt to be enclosed with Form A1
20. Corporate Agency agreement duly executed as per standard format
21. Appointment letter of Fellow/Associate on the company payroll and his 50 hours training + examination certificate along with the application.
22. List of Directors with particulars viz. Full Name of the Directors, Father’s Name, Date of Birth, Full address with PIN code and Telephone No.
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ANNEXURE F
NAMES OF THE COMPANIES CONTACTED Abhipra 5 Paisa Aarnik Securities Pvt. Ltd. Aastha Ins. Service Pvt. Ltd. Ace Richesse Pvt. Ltd. Adnan Enterprises Afro-Asian Ins. Services (India) Pvt. Ltd. AgarwalFinance and ExpInternationl AjconCapitalMarketL Ajmera Associates P Ltd Aknam Finvest P Ltd Alliance Ins. Brokers Pvt. Ltd. AmbujaInvestmentConsultancy Angel Broking Anshul Financial Co. Arabian Services Co. Arihant Capital markets ltd. Athalye Investments Athena Ins. & Reins. Brokers Pvt. Ltd. AtulRShah and Associates Auto Bahn Auto Hanger Avon Capital Banco Atlantico Bbj Purshottam Beriwal M R Bhat & Bhat Associates Birla Insurance Advisory Services Ltd. BKChorge and Co Brescon Shares and Stock Broker PL Cabal Ins. Services Pvt. Ltd. Cap M Consulting India P Ltd Central Investmt Cnsltnt
Challenge Consultancy Services PL Chandru M Chhabria CharteredEngineerVsLodha Chase Management and Financial Conslt Classicinvestments ComputerisedSocietyAccounts CorporateWarrantiesIPLtd Cox and Kings Cp Gandhi and Co Cross Check Crystal Gold Ins. Brokers Ltd. Cyber Nook Deccan Ins. Services Pvt. Ltd. Dhiren Sanghavi Dhondy H B and Co DilipSDalal and Co Dimple Enterprises Dinesh Keshavlal Vyas Dinkar Investments DinkarInvestmentsPL Dossa Insurance Services Ltd. Druck Associer Electra Financial Services Ltd ElectricfoxFinancialServices Ennjay Consultancy EsquireCreditLtd EssceeSecurities Excel Conslts P Ltd Excel Enterprises Express insurance Faith Financial Consultancy Services Falcon India Financial Technologies
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NAMES OF THE COMPANIES CONTACTED Future Plus Financial Planners PL Gajalaxmi Co Op Credit Soc Ltd GemInvest and FinclCnslt Genesis management Consultancy GenesisManagemntConsultncyP Geojit Geojit Financial Services Ltd Gm Bosu and Co Golden Investment GreenBackForexServicesPLtd GujaratIndtlInvestmentCorpn Gulmohan Conslt Harendra Dave Harsh Investments HASMUKH SHAH & CO Hemdev and Sons HexagramInvestmentAdvisorsPLtd Hitesh Shah HMG Financial Services HSBhakuni and Co IFCI Financial Services Ltd. IMRP Ins. Services Pvt. Ltd. India Infoline Infra. Leasing & Fin. Services Ltd Integrated Enterprises India Limited Interactive Marketing PLtd INTERCONNECT Intercorp Financial Services Interface Financial Services Ltd. Inv.Cnsultnt and ShareCounsel Investnet IshtivaFinancialServicesPLtd J M Morgan J. B. Boda Insurance Brokers P Ltd. J. K. Enterprises Jagdish Dalal Jain Investments JaincoCorporateConsultants
Jalnidhi Collection JehanWadia Joshi Management Consultancy JoshiPalrechaTechFinSvcsPLtd JRLaddhaFinancialServicesPLtd Jupiter Industries and Leasing Ltd. Karmarkar Investments KB Associates Kelkar Investments Knowledge Center KrishaInvestmentConsultant Kumar and Co L K Talreja and Co Lalwani Estate Linkway M K Sureka and Co. M N Gogate M. K. K. Consulting M.B. Boda Ins. Brokers Pvt. Ltd. M.B. Boda Reinsurance Brokers Pvt.Ltd. M/S Futuristic Securities Ltd. M/S Patel Shah & Associates MagnumSecurities Man Investments ManagmentStructure and SystemsPL Mangesh Kadam Mangesh S. Kulkarni Manisha M Barve Mansal Financial Consultants Pvt Ltd Mantech Management Marsh India Pvt. Ltd. MAS COMMERCIAL P LTD Mathrawala & Sons (Brokers) Pvt. Ltd. MaverickFinSolution Mecklai Mehdi Enterprises Mehernosh Sidhwa Mennen Financial Services Ltd
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NAMES OF THE COMPANIES CONTACTED Merchant Investment Consultancy P L MF INS. & REINS. Services MontageCapitalMarketsLtd Motilal Oswal Mr Joan N D Jain N.P.Gupta Networth Stock Broking Ltd. Nifco: Non Resident Nirush Investment Nitin Gada Nivesh Consultants Njv Financial Services Olympic Estate Agencies Om Marketing Omkar Finance Consultants OmkarAutomobiles Orbit Orient Investments Orient Securities P Ltd Pam Financial Services Parag Parikh Fin.Advisory A54Services Ltd. Parsoli Corporation Limited PayalConsultancyService PeakPerksServices Pegasus Ins. Brokers Pvt. Ltd. Peraj Ins. Brokers Pvt. Ltd. Pioneer Consultants Pvt Ltd. Platinum Jubilee Investments Ltd. Pp Chandwani PPFAS Investment Boutique Pragna Thakkar And Co.(Law firm) PranaamFinancialServices PRMAN Reinsurance Brokers Pvt. Ltd. Protect Insurance Services (India) Pvt. Ltd. Purshottam Somani R D Shah R K Finance
Raja Investments Rajesh D Jain Resources Managemnt Grp ResourcesManagementGroup S.J. Financial Consultants Sadanand Date Sadguru Packaging Safeguard Security Services SaiConsultancyServices SalechaConsultantsPLtd Samruddhi Investment SantoshBhatia SantoshDeo and Associates Sarvottam Financial Inv and Cons Ser SaurabhShah and Associates Scenario Media Ltd. Schroders Secure Consultants Securities Trading Corp. of India Ltd. SecurityExchangeBrdIndia Shah and DoshiAssociates Shah Tecnical Consultants Pvt Ltd Shailesh Dalal Share Khan Shella Consultants Shree Bhavani Sahkari Pathpethi Ltd Shree InvestmentConsultancy Shree Jalaram Investments Shreya Consultancy Shri Satish C Gupta Co. Ltd. ShripalBShah SiddhiVinayakEstateAgencies Skm Financial Consultancy SorabjeeShapurjee and CoPLtd SOTC Strategic SubhashJGorivale Sun Risk Management Services Pvt. Ltd.
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NAMES OF THE COMPANIES CONTACTED Sunbeam Corporate Services P L Sundaram Finance Sundaram Finance Sunil Ghuge Suprasesh Suraj Investment Services Suraj Sanghi Fin. Ltd SurajInvestmentServices SurbhiFinancialTech Suresh A Shah Sushil Shah Sv Associates Synergy Ins. Broking Services Pvt. Ltd. Systematic Shares and Stocks Ltd Tax Help Services Techcap Telos Risk Mgmt & Ins. Broking Services (P) Ltd. ThakkarInvestments and Financi Thakkers Investment Thakkers Investments Thakorlal Girdharlal Panchal Thomas Cook Tower Insurance & Reinsurance Serv. (India) Pvt. Ltd. UcSabarwal Uday Investments
Uniexports UNITIS Upen M Doshi Upendra Dalal and Co Ur Home Loan Seva PLtd Ur Home Loan Seva Pvt Ltd Usha Associates V. A. Capital Services Van Finance Consultant VeejayProfinaConsultantsPLtd Veer Capital Management Pvt. Ltd. Venture Business Advisers P Ltd Vigneshh Pharma Impex Pvt. Ltd Vilas Eknath Gangal Vimla and Co. VirajInvestments Vishal Gokani VmDutia and Associate Vora Insr. Consultancy Walchand.com Limited Warankar and Associates YashaviSecurities Yh Mehta Zakir M Kapasi ZarinLimathwalla
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