Summer Project

PROJECT REPORT ON

ANALYSIS AND INTERPRETATION OF LIFE INSURANCE PLANS IN BAJAJ CAPITAL LTD. Summer Training Project Report

Project done by NARESH KUMAR YADAV UNDER THE GUIDANCE OF PROF. DILIP NANDKEYOLAR

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DIPLOMA BY

APEX INSTITUTE OF MANAGEMENT PUNE- 411028 (ACADEMIC YEAR 2006-O7)

1

1

CERTIFICATE

This is to certify that Mr. Naresh Kumar Yadav student of P.G.D.B.M.has completed his Project Work on Life insurance plans under my guidance. This project work is adequate and

satisfactory

for the

purpose of

acceptance as per the requirement of P.G.D.B.M. Part II Paper IV viz., Research Methodology and Project Work.

Place :

Pune

Date :

7 April 2008

Examiner

Prof. Dilip Nandkeyolar

2

DECLLARATION BY THE CANDIDATE

I hereby declare that the Research Work entitled Analysis and Interpretation of Life Insurance Plans in Bajaj Capital Ltd. Which I am submitting to the Apex Institute of Management of Pune, for the Diploma of P.G.D.B.M. In the facultyMarketing is my own and it has not been submitted to any other Institute orUniversity in India or abroad for any Diploma.

Place:

Pune

Date:

7 April 2008

Candidate Signature

3

ACKNOWLEDGEMENT

I am very happy to present my above entitled “Analysis and Interpretation of Life Insurance Plans in Bajaj Capital Ltd.” To the authority of Apex Institute of Management of Pune. The main objective of my research study is to help the industry to in Profits and give better service to its customers.

On the basis of primary data, a structured questionnaire is presented. An in depth Inquiry into the details have been obtained by interviewing the person concerned with the problem under study.

I express my deep sense of gratitude to my beloved teacher and resourceful guide Prof. Dilip Nandkeyolar and our Director Prof. Sultan. D. Shaikh who has been a service of inspiration and help throughout my study.

4

It gives me great pleasure in acknowledging the affectionate emotions decencies of Apex Institute of management and also their concern for my academic uplift. I am affectionately thankful for their co-operation and bearing with my long spell of absence from their sweet presence.

I am grateful to me and all above the almighty for bestowing me with all the and Blessing me with the sense of achievement.

0 1 2 3 4 5 5

6 7

Bajaj Capital

Introduction Bajaj Capital is one of India’s leading Financial Services companies offering Free Advice on Investments, Insurance, Tax Saving, Retirement Planning, Financial Planning, Children’s Future Planning and other services. They are also SEBI-approved Category I Merchant Bankers. Today, Bajaj Capital is a one of the largest financial planning and investment advisory companies in India, with a strong presence all over the country. They offer a comprehensive range of services including financial planning and investment advice, and the entire gamut of financial instruments and investment products of almost all major companies, both public and private. In addition, they also provide investment assistance by helping clients complete all the formalities, and help them keep regular track of their investments. Bajaj Capital La Premier’s Wealth Management Services Bajaj Capital La Premier was created to cater to the needs of High Net worth Individuals. It is a specialized group comprising handpicked professionals that provides exclusive and world-class wealth management services to a select group of clients.

6

Essentially, the Wealth Management Services aim to help clients preserve, enhance and grow their wealth by implementing the well-accepted principles and global best practices on wealth management. To cater to the elite segment of High Net worth Clients, La Premier offers an exclusive range of value-added service, including: • Personalized attention through a dedicated Relationship

Manager

• Market information sharing through quality in-house research reports, • Periodic portfolio review and regular update on portfolio valuation • Pro-active advice on market events and triggers • Immediate alerts on new products and New Fund Offers • Need-based interactions with Fund Managers • Independent, unbiased advice Bajaj Capital’s 4-step Advisory Process Investment consultancy is a complex business, requiring an intimate understanding of several financial parameters and human factors, including the client’s requirements and the market subtleties. Being a process-driven organization, they have perfected a four-step advisory procedure, which includes: • Need Analysis • Asset Allocation • Portfolio Construction • Ongoing Review

7

Bajaj Capital was one of the first companies in the organized sector to offer investment advisory and financial planning services along with a wide spectrum of financial products and services, all under one roof.

Service Offerings a) Mutual Funds b) Taxation advice c) Bonds d) Post Office Schemes e) Estate Planning f) Insurance g) Financial Planning h) Retirement Planning

8

Bajaj Capital’s 360º Financial Planning Financial Planning is becoming increasingly popular in developed countries all over the world. Now, with a little help from Bajaj Capital, clients too can give themselves the 360° Financial Planning edge! Now, Bajaj Capital brings you the same service ABSOLUTELY FREE! Bajaj Capital's 360° Financial Planning Programmed could make a difference to all those who wish to lead a worry-free, financially secure life. 360° Financial Planning is based on the premise that every individual has certain basic financial needs that are expressed at various stages of life (getting married, buying assets like homes, vehicles, or providing for your children's education and wedding). Instead of investing in an ad-hoc manner, 360° Financial Planning helps you take a holistic, all-round view. Briefly, 360° Financial Planning comprises: • Investment Planning: To make your wealth grow • Cash Flow Planning: To provide for assets and meet the periodic cash requirements • Tax Planning: To save on taxes and increase your income • Insurance Planning: To protect yourself, your family and your assets • Children's Future Planning: To give your children a financially secure future • Retirement Planning: Because retirement is a time to relax, not to get worried

9

Introduction of the Organization-The Bajaj Capital Ltd.

The Bajaj Capital Group is one of India’s premier Investment Advisory and Financial Planning companies. We are also SEBI-approved Category I Merchant Bankers. We offer personalized Investment Advisory and Financial Planning services to individual investors, corporate houses, institutional investors, NonResident Indians (NRIs) and High Net worth Clients, among others. As one of India’s largest distributors of financial products, we offer a wide range of investment products such as mutual funds, life and general insurance, bonds, post office schemes, etc. offered by reputed public and private and government organizations.

Company Profile Bajaj Capital is one of India’s leading Financial Services companies offering Free Advice on Investments, Insurance, Tax Saving, Retirement Planning, Financial Planning, Children’s Future Planning and other services. We also have a wide range of products and services for Corporate, High Net worth Individuals, and NRIs… all under one roof.

10

At Bajaj Capital, we believe in dreaming big. Dreams inspire us to excel. They ignite hope and kindle in us the passion to stretch our limits. We also believe that nothing can or should stop us from realizing our dreams… and financial constraints should be the last thing to stop anyone.

Four decades of excellence For over four decades, we have been helping people realize their aspirations by helping them make their wealth grow, and plan their financial lives. Today, we are a one of the largest financial planning and investment advisory companies in India, with a strong presence all over the country. We take pride in serving our customers – both individual and institutional – and are known for our strong professionalism and work ethics.

11

Wide range of services

We offer a comprehensive range of services including financial planning and investment advice, and the entire gamut of financial instruments and investment products of almost all major companies, both public and private. In addition, we also provide investment assistance by helping you complete all the formalities, and help you keep regular track of your investments. These services and products are delivered through our network of 109 Bajaj Capital Investment Centers located all over the country. We are also a SEBI-approved Category I Merchant Banker. We raise resources for over 1,000 top institutions and corporate houses every year, and offer specialized services to Non-Resident Indian (NRIs) and High Net worth Clients. What you can expect from us Sound, research-based advice Unbiased, independent and need-based advice Prompt, courteous service Honest, ethical dealings

12

The History of Bajaj Capital Bajaj Capital has contributed to the growth of the Indian Capital Market at every step. In 1965, we were the first to innovate the Companies Fixed Deposit. Today, we are playing an active role in the growth of the Indian Mutual Fund industry. We are also working closely with private insurance companies to deepen India's insurance market. Here is a brief gist of our journey through the years. 1964Bajaj Capital sets up its first Investment Centre™ in New Delhi to guide individual investors on where, when and how to invest. India's first Mutual Fund, Unit Trust of India (UTI) is incorporated in the same year. 1965Bajaj Capital is incorporated as a Company. In the same year, the company introduces an innovative financial instrument – the Company Fixed Deposit. EIL Ltd. (Oberoi Hotels, then known as Associated Hotels of India Ltd.) becomes the first company to raise resources through Company Fixed Deposits. 1966Bajaj Capital expands its product range to include all UTI schemes and Government saving schemes in addition to Company Fixed Deposits.

13

1969Bajaj Capital manages its first Equity issue (through an associate company) of Grauer & Wells India Ltd.; right from drafting the prospectus to marketing the issue. 1975Bajaj Capital starts offering 'need-based' investment advice to investors, which would later be known as 'Financial Planning' in the investment world. 1981SAIL becomes the first government company to accept deposits, followed by IOC, BHEL, BPCL, HPCL and others; thus opening the floodgates for growth of retail investment market in India. Bajaj Capital plays an active role in all the schemes as 'Principal Brokers' 1986Public Sector Undertakings (PSUs) begin making public issues of bonds MTNL, NHPC, IRFC offer a series of Bond Issues. Bajaj Capital is among the top ranks of resource mobilizes. 1987SBI leads the launch of Public Sector Mutual Funds in India. Bajaj Capital plays a significant role in fund mobilization for all these players. 1991SBI issues India Development Bonds for NRIs. Bajaj Capital becomes the top mobilize with collections of over US $20 million. 1993 The first private sector Mutual Fund – Kothari Pioneer – is launched, followed by Birla and Alliance in the following years. Bajaj Capital plays an active role and is ranked among the top mobilisers for all these schemes. 1995IDBI and ICICI begin issuing their series of Bonds for retail investors. Bajaj Capital is the co-manager in all these offerings and consistently ranks among the top five mobilisers on an all-India basis.

14

1997Private sector players lead the revival of Mutual Funds in India through Open-ended Debt schemes. Bajaj Capital consolidates its position as India's largest retail distributor of Mutual Funds. 1999Bajaj Capital begins marketing Life and General Insurance products of LIC and GIC (through associate firms) in anticipation of opening up of the Insurance Sector. Bajaj Capital achieves the milestone of becoming the top 'Pension Scheme' seller in India and launches marketing of GIC's Health Insurance schemes. 2000Bajaj Capital implements its vision of being a 'One-stop Financial Supermarket.' The Company offers all kinds of financial products, including the entire range of investment and insurance products through its Investment Centers. Bajaj Capital offers 'full-service merchant banking' including structuring, management and marketing of Capital issues. Bajaj Capital reinvents 'Financial Planning' in its international sense and upgrades its entire team of Investment Experts into Financial Planners. 2002The Company focuses on creating investor awareness for Financial Planning and need-based investing. To achieve this goal, the company introduced the International College of Financial Planning. The graduates of this institute become Certified Financial Planners (CFPs), a coveted professional qualification.

15

2004Bajaj Capital obtains the All India Insurance Broking License. Simultaneously, a series of wealth creation seminars are launched all over the country, making Bajaj Capital a household name. 2005Bajaj Capital launches 360° Financial Planning, a software-based programme aimed at encouraging scientific and holistic investing. Our Mission, Aims & Objectives Bajaj Capital's Mission Statement The focus of our organization is to be the most useful, reliable and efficient provider of Financial Services. It is our continuous Endeavour to be a trustworthy advisor to our clients, helping them achieve their financial goals. Our Aims: To serve our clients with utmost dedication and integrity so that we exceed their expectations and build enduring relationships. To offer unparalleled quality of service through complete knowledge of products, constant innovation in services and use of the latest technology. To always give honest and unbiased financial advice and earn our clients' everlasting trust.

16

To serve the community by educating individuals on the merits of Financial Planning and in turn help shape a financially strong society. To create value for all stake holders by ensuring profitable growth. To build an amicable environment that accords respect to every individual and permits their personal growth. To utilize the power of teamwork to function as a family and build a seamless organization Why Invest Through Bajaj Capital Wide range of products and services 41 years’ experience as Investment Advisors and Financial Planners More than seven lakh satisfied clients all over India Countrywide network of 109 branches Over 12,000 NRI clients across the globe Personalized wealth management advice 24 x 7 online accessibility through www.bajajcapital.com Strong team of qualified and experienced professionals including CAs, MBAs, MBEs, CFPs, CSs, Insurance experts, Legal experts and others SEBI-Approved Category I Merchant Bankers

17

The Significance of Our Logo Our logo depicts Lord Ganesha who is the source of all our values and ethics in

business.

The large ears of Lord Ganesha remind us to hear more. We listen carefully to our clients to understand their needs. The weight of the trunk on the mouth symbolises silence. We work silently, without blowing our own trumpet. The long trunk symbolises continuous exploration. We explore all avenues to provide the best investment opportunities for our clients. The heavy posture of Ganesha symbolises stability. We help our clients to attain financial stability through wise investments. Lord Ganesha is known as the remover of obstacles and bestower of prosperity. We emulate His example and try our best to help our clients attain prosperity by proper financial planning. Our logo has a yellow background. Yellow is the color of gold, which symbolises wealth. According to Vedic lore, it is also the color associated with Brihaspati, the guru and counselor of the Gods. We offer our clients sage counsel to make their wealth grow. The letters are in red. Red is the color rajas – symbolising power and incessant activity. It symbolises our aggressive quest for your well-being and happiness. The white streak represents the trunk of Lord Ganesha. White is the color of satva guna, and implies our selfless commitment to your life-long happiness.

18

By your side whenever you need us… As your true partner, we promise to use our knowledge for your benefit. Be it advice on the right insurance products or looking after your rights and interests in case of a claim, we’ll be by your side... whenever you need us. Risks are unavoidable in personal life and in business, but can be managed by proper planning. That's exactly where we at Bajaj Capital Insurance Broking Ltd. step in. At BCIBL, an IRDA licensed direct broker (bearing licence number DB 042/02), we call it Risk Management. We help you to identify the potential risks and pass some of them on to insurance companies. We are your partners, who help you to identify and understand various risks, prioritize them and eventually manage them. As a broker, we do not offer you just a single option but multiple options available, and help you select the most appropriate one. 6. Products We offer a wide range of Life and General Insurance products offered by the insurance companies that cover almost the entire spectrum of risks that individuals or your business may face. We offer a wide range of insurance packages including:

19

Personal Lines Auto Home Travel Accident & Health Property Insurance Fire and Special Peril Marine Machinery Breakdown Electronic Equipment Insurance Loss of Profits etc. Liability Insurance Commercial General Liability Product Liability Workmen’s Compensation/ Employer's Liability

20

Contingency Risks Event Cancellation Wedding Insurance All Risk for Mobiles, Computers, Laptops etc. Industrial All Risk and Project Insurance Specialty Products Professional Indemnity/Errors & Omissions (E&O) Directors’ and Officers’ Liability (D&O) Fidelity Guarantee Commercial Cyber Crime Insurance Credit Insurance Mutual Fund & Asset Protection Why consult BCIBL? Brokers, we are your representatives unlike an agent who represents an insurance company. At BCIBL, we consider it your right to receive independent, unbiased and professional advice. We enjoy the 'Preferred Insurance Broker' status with many of the Insurance companies. This, in essence, translates as IRDA licensed Insurance into a greater benefit for you.

21

In fact, we enjoy a transactional relationship with almost all the Insurance companies present in India. We are therefore proud to say that many companies have come up with insurance products based on our feedback. We have a strong operational and servicing team, and an all-India reach. We also have the support of a strong IT infrastructure and responsive call centers. As such, we are easily accessible.

22