Bajaj Allianz General Insurance Co. Ltd.

CHAPTER - I

INDUSTRY PROFILEThe Indian General Insurance Industry has reported strong growth in the past decade, mainly benefitting from the low degree of insurance penetration in the country. Over the past five years, the Gross Premium Written by Indian general insurance industry reported a compounded annual growth rate (CAGR) of 18.1% to Rs. 650 Billion in FY13. With high co-relation between the growth rates in General Insurance Premiums and the National GDP growth rates, we expect the industry growth rates to moderate in line with the slowdown in Indian GDP growth. Accordingly ICRA estimates the General Insurance Industry to grow at around 15% in FY14. The Private Sector players have maintained a higher growth rate compared to their PSU peers and have seen a gradual increase in their market share to 47% in H1FY14 (40% in FY08). We expect the trend to continue going forward with our forecast of relatively higher growth for Private Sector players. Motor insurance constitutes the largest segment of general insurance business in India with a share of around 46% in FY13, followed by Health and Personal Accident segment with 26% share and Fire & Engineering segment with 14% share. Notwithstanding the upward revision in the premium rates for third party insurance for Commercial Vehicles in the last few years, the growth in motor insurance volumes has moderated in line with slowdown in economic growth; accordingly outlook for this segment continues to remain weak over the medium term. The Health & Personal Accident segment is expected to witness robust growth rates given the increasing focus of the players to cater to this segment and the improving penetration arising from increasing public awareness and government sponsored schemes such as the Rashtriya Swasth Bima Yojana (RSBY). While the growth rates in the Fire & Engineering segments have improved in the last few years with improved pricing strategies, we expect the growth rates to moderate as this segment will get directly impacted by lower GDP growth with the postponement of capital expenditure and new infrastructure projects. The Indian General Insurance industry would require capital of around Rs. 500-700 billion equity capital if the current penetration levels of around 0.7% were to approach the global average of around 2.8% over a period of five years. However, the actual capital requirements will be dependent on the business mix, growth rates and claims experience, ICRA estimates that to maintain a solvency at 1.75 times (as compared to the regulatory requirement of 1.45 times from March 2014) while growing at a CAGR of 15-20% and maintaining similar claims records, the General Insurance industry would require around Rs 75-175 billion of capital over the next five years with the requirement for private sector at around Rs 45-80 billion. The sizeable unrealised capital gains from the past investments for the public sector insurers provide sufficient buffer to support future growth while the private sector insurers with relatively shorter operating history track record and lower market share will need external capital to fund growth in business. In this context we expect that the proposed hike in FDI ceiling in the insurance sector (subject to Parliamentary approvals) will be beneficial as it could partly address the capital requirements for the industry and also aid in faster penetration. Based on H1FY14 numbers reported by 12 entities excluding Tata AIG, the performance for the industry continues to improve, with underwriting loss at 11.3%, being lower than FY13 level of 14.4%. This has resulted in improved operating profit before considering realised gains of 6% compared to 2.1% in FY13. However the underwriting performance of the private sector players continued to be better than the PSUs. The Profit after tax by net premium earned improved to 10.1% compared to 7.8% in FY13 for these 12 entities.HISTORYAncient worldIn some sense, we can say that insurance dates back to early human society. We know of two types of economies in human societies: natural or non-monetary economies (using barter and trade with no centralized nor standardized set of financial instruments) and monetary economies (with markets, currency, financial instruments and so on).Insurance in the former case entails agreements of mutual aid. Granaries embodied another early form of insurance to indemnify against famines. These types of insurance have survived to the present day in countries or areas where a modern money economy with its financial instruments is not widespread.The first methods of transferring or distributing risk in a monetary economy, were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants.At some point in the 1st millennium BC, the inhabitants of Rhodes created the 'general average'. This allowed groups of merchants to pay to insure their goods being shipped together. The Greeks and Romans introduced the origins of health and life insurance c. 600 BC when they created guilds called "benevolent societies" which cared for the families of deceased members, as well as paying funeral expenses of members. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used for emergencies.

Medieval worldSeparate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. The first known insurance contract dates from Genoa in 1347, and in the next century maritime insurance developed widely and premiums were intuitively varied with risks. The first printed book on insurance was the legal treatise On Insurance and Merchants' Bets by Pedro de Santarm (Santerna), written in 1488 and published in 1552.Modern InsuranceInsurance became far more sophisticated in Enlightenment era Europe, and specialized varieties developed. Some forms of insurance developed in London in the early decades of the 17th century.Property insurance

Property insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured more than 13,000 houses. The devastating effects of the fire converted the development of insurance "from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren's inclusion of a site for 'the Insurance Office' in his new plan for London in 1667".A number of attempted fire insurance schemes came to nothing, but in 1681, economist Nicholas Barbon and eleven associates established the first fire insurance company, the "Insurance Office for Houses", at the back of the Royal Exchange to insure brick and frame homes. Initially, 5,000 homes were insured by his Insurance Office.Business insuranceLloyd's Coffee House was the first marine insurance company.

At the same time, the first insurance schemes for the underwriting of business ventures became available. By the end of the seventeenth century, London's growing importance as a centre for trade was increasing demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee house on Tower Street in London.Life insurance

The first life insurance policies were taken out in the early 18th century. The first company to offer life insurance was the Amicable Society for a Perpetual Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas Allen.Accident insuranceThe Railway Passengers Assurance Company was founded in 1848 as the first company to provide accident insurance.

In the late 19th century, "accident insurance" began to become available. This operated much like modern disability insurance. The first company to offer accident insurance was the Railway Passengers Assurance Company, formed in 1848 in England to insure against the rising number of fatalities on the nascent railway system. It was registered as the Universal Casualty Compensation Company.National insurance

By the late 19th century, governments began to initiate national insurance programs against sickness and old age. Germany built on a tradition of welfare programs in Prussia and Saxony that began as early as in the 1840s. In the 1880s Chancellor Otto von Bismarck introduced old age pensions, accident insurance and medical care that formed the basis for Germany's welfare state. In Britain more extensive legislation was introduced by the Liberal government, led by Herbert Asquith and David Lloyd George. The 1911 National Insurance Act gave the British working classes the first contributory system of insurance against illness and unemployment. By 1913, 2.3 million were insured under the scheme for unemployment benefit and almost 15 million insured for sickness benefit.Insurance in IndiaInsurance in India refers to the market for insurance in India which covers both the public and private sector organisations. It is listed in the Constitution of India on the in the Seventh Schedule meaning it can only be legislated by the central government.The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment. India allowed private companies in insurance sector in 2000, setting a limit on FDI to 26%, which was increased to 49% in 2014.History: In India, insurance has a deep-rooted history. Insurance in various forms has been mentioned in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmashastra) and Kautilya (Arthashastra). Insurance in its current form has its history dating back until 1818, when Oriental Life Insurance Company was started by Anita Bhavsar in Kolkata to cater to the needs of European community. 1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. The pre-independence era in India saw discrimination between the lives of foreigners (English) and Indians with higher premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. At the dawn of the twentieth century, many insurance companies were founded. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium-rate tables and periodical valuations of companies should be certified by an actuary. However, the disparity still existed as discrimination between Indian and foreign companies. The oldest existing insurance company in India is the National Insurance Company, which was founded in 1906, and is still in business. In 1907, the Indian Mercantile Insurance Ltd. was established and was the first company to transact all classes of general insurance business. In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers.The Insurance Amendment Act of 1950 abolished Principal Agencies.The Government of India issued an Ordinance on 19 January 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. In 1957, General Insurance Council (GIC), a wing of the Insurance Association of India was established The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices across Non-Life or General insurance sector. In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1st 1973.Industry structure

By 2012 Indian Insurance is a US$72 billion industry. However, only two million people (0.2% of the total population of 1 billion) are covered under Mediclaim, whereas in developed nations like USA about 75% of the total population are covered under some insurance scheme. With more and more private companies in the sector, this situation is expected to change. ECGC, ESIC and AIC provide insurance services for niche markets. So, their scope is limited by legislation but enjoy some special powers.

Insurance Repository

On 16th September 2013, IRDA launched 'Insurance Repository' services in India. It is a unique concept and first to be introduced in India. This system enables policy holders to buy and keep insurance policies in dematerialized or electronic form. Policy holders can hold all his insurance policies in an electronic format in a single account called electronic insurance account (eIA). Insurance Regulatory and Development Authority has issued licenses to five entities to act as Insurance Repository:

NSDL Database Management Limited, Central Insurance Repository Limited (CIRL), SHCIL Projects Limited, Karvy Insurance repository Limited, CAMS Repository Services LimitedLegal structure

The insurance sector went through a full circle of phases from being unregulated to completely regulated and then currently being partly deregulated. It is governed by a number of acts.

The Insurance Act of 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business. Life insurance in India was completely nationalized on 19 January 1956, through the Life Insurance Corporation Act. All 245 insurance companies operating then in the country were merged into one entity, the Life Insurance Corporation of India.

The General Insurance Business Act of 1972 was enacted to nationalise the about 100 general insurance companies then and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance and United India Insurance, which were headquartered in each of the four metropolitan cities. Until 1999, there were no private insurance companies in India. The government then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies. Furthermore, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies.

In 2006, the Actuaries Act was passed by parliament to give the profession statutory status on par with Chartered Accountants, Notaries, Cost & Works Accountants, Advocates, Architects and Company Secretaries. A minimum capital of US$80 million (Rs.400 Crore) is required by legislation to set up an insurance business.

Authorities

The primary regulator for insurance in India is the Insurance Regulatory and Development Authority (IRDA) which was established in 1999 under the government legislation called the Insurance Regulatory and Development Authority Act, 1999.The industry recognises examinations conducted by IAI (for actuaries), III (for agents, brokers and third-party administrators) and IIISLA (for surveyors and loss assessors). TAC is the sole data repository for the non-life industry. IBAI gives voice for brokers while GI Council and LI Council are platforms for insurers. AIGIEA, AIIEA, AIIEF, AILICEF, AILIEA, FLICOA, GIEAIA, GIEU and NFIFWI cater to the employees of the insurers. In addition, there are a dozen Ombudsman offices to address client grievances.Insurance is basically of two types namely life insurance and general insurance. Life insurance covers the risk of death of individuals. General insurance comprises health insurance, motor insurance, fire insurance, marine and hull insurance, cargo insurance and householder's insurance etc. There are total 27 general insurance companies in India. Out of 27 general insurance companies in India, 4 companies offer only health insurance products. Rest of the companies provides all varieties of general insurance products.General Insurance Companies in India:

1) Agriculture Insurance Co. of India Ltd.2) Bajaj Allianz General Insurance Co. Ltd.

3) Bharti AXA General Insurance Company Limited.4) Cholamandalam MS General Insurance Co. Ltd.

5) Export Credit Guarantee Corporation of India Ltd.

6) Future Generali India Insurance Company Limited.7) HDFC ERGO General Insurance Co. Ltd.

8) ICICI Lombard General Insurance Co. Ltd.

9) IFFCO Tokio General Insurance Co. Ltd.

10) L&T General Insurance Company Limited.11) Liberty Videocon General Insurance.12) Magma HDI General Insurance Company Limited.13) National Insurance Co Ltd.

14) Raheja QBE General Insurance Company Limited.15) Reliance General Insurance Co. Ltd.

16) Royal Sundaram Alliance Insurance Co. Ltd.17) SBI General Insurance Company Limited.18) Shriram General Insurance Company Limited.19) Tata AIG General Insurance Co. Ltd.

20) The New India Assurance Co. Ltd.

21) The Oriental Insurance Co. Ltd.

22) United India Insurance Co. Ltd.

23) Universal Sompo General Insurance Co. Ltd.

24) Apollo Munich Health Insurance Company Limited.25) Max Bupa Health Insurance Company Ltd.

26) Religare Health Insurance Company Limited.27) Star Health and Allied Insurance Company Limited.Insurance Market shared by private players

Chart 1.1Indian Scenario:In India, the growth story is intact, economists are positive, the demographics is shifting to a much younger population and we will be one of the countries with the most educated people. The industry grew at a CAGR of 17.9% in the last five years (from FY 2007-08 to FY 2012-13).

The penetration of general insurance industry in India at present is 0.78% of GDP as on 2013, which is very low as compared to global standards. The penetration of basic personal lines of insurance like health or home its dismally low. Health Insurance is less than 10% of the people who can afford it. Home insurance is still less at hardly 1%.

Global Scenario:Global integration of financial markets resulted from de-regulating measures, technological information explosion and financial innovations. Liberalisation and Globalisation have allowed the entry of foreign players in the Insurance sector. With the entry of private and foreign players in the Insurance business, people have got a lot of options to choose from. Radical changes are taking place in customer profile due to the changing life style and social perception, resulting in erosion of brand loyalty. To survive, the focus of the modern insurers shifted to a customer-centric relationship. The paper focuses the current position of insurance industry.

In the past decade, insurance companies have experienced some dramatic shifts. Many of the trends that we have discussed in previous outlooks have changed the shape and direction of the industry. Issues include increasing customer sophistication, growing use of technology across all aspects of the insurance value chain, greater collaboration and alignment with insurance regulators, and significant innovation in the products being offered. In 2014, insurers in the Asia-Pacific region will continue to face slower economic growth, a lingering low-interest-rate environment and regulation that is wider in scope and severity at the national and regional level. However, the liberalization of trade barriers (as evidenced by the Shanghai Free-Trade Zone in the fall of 2013 and the 2015 target date for ASEAN integration) and the continuing increase in middle-class and high-net-worth consumers is highly favorable for the insurance industry.

As insurers in Asia-Pacific assess these challenges, they are responding with cost control and internal process improvements. Many are consolidating cumbersome legacy systems and implementing data analytics to build more efficient operations and improve underwriting and claims practices.

Successful insurers in Asia-Pacific in 2014 will:

Deploy products to meet changing consumer needs. Exploit pockets of higher growth. Develop digital distribution strategies. Get ahead of regulatory developments.

Implement data analytics for competitive advantage. Identify areas for expense reduction.Global systemically important insurersIn 2013, Ping An was the only Asia-Pacific insurer out of nine globally to be designated as a global systemically important insurer (G-SII) by the G-20 Financial Stability Board. Designation as a G-SII subjects an insurer to heightened group-wide supervision, additional capital requirements, recovery and resolution plans, and increased reporting requirements, all of which add cost. The potential for additional designees in the region is a concern, as is the possibility that the G-SII regulation will be applied at the national level. This trend is evident in the banking sector and has the potential to transcend into insurance. IAIS has adopted a three-tier structure of insurance supervision, with G-SII requirements at the highest level and insurance core principles (ICPs) at the lowest level. At the intermediate level, IAIS intends to issue further standards for internationally active groups, including capital adequacy standards. These second-tier standards will include many more Asia Pacific insurers and may also become a benchmark for local capital standards.Global accounting standardsAs insurers expand their geographic footprint in the region and seek capital from new sources, the ability to provide financial reports and statements to meet global standards will become a necessity. Identifying and understanding these changes will be difficult for insurers and a diversion from their focus on local or regional growth. The eventual introduction of International Financial Reporting Standards (IFRS 4 Phase II) will require insurers in Asia-Pacific to report how they plan to implement these new accounting and disclosure changes and comment on how they will impact their Bajaj Allianz General Insurance Company Private Limited Market Share Product Wise

Chart 1.2CHAPTER - II

COMPANY PROFILE

COMPANY AT GLANCEName of the Company: Bajaj Allianz General Insurance Co. Pvt Ltd

Year of Establishment: 2001Type: Public Company

Headquarters: Pune, India.

Key person: Tapan Singel (M.D & C.E.O)

Competitors: United India Insurance, Oriental Insurance, American International Group, INC/ TATA AIG, ICICI Bank Ltd, Bharti AXA, Reliance

Main Products: car insurance, two wheeler insurance, travel insurance, health insurance, home insurance and commercial insurance.

Paid up Capital: 110 Crores

The Company Share is divided as follows:

Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.

Board of Directors: Sanjiv Bajaj, Chairman Also MD, Bajaj Finserv Ltd.

Bajaj Holdings & Investment Ltd. Rahul Bajaj, DirectorAlso Chairman, Bajaj Auto Ltd.Bajaj Finserv Ltd. Mukund Ltd.

Bajaj Holdings & Investments Ltd. Niraj Bajaj, Director

Also Chairman & MD,

Mukund Ltd. Ranjit Gupta, Director

Also President (Insurance),

Bajaj Finserv Ltd. Manuel Bauer, DirectorAlso Member of the Board of Management, Growth Markets,

Allianz SE

Kamesh Goyal, Director

Head Global Planning &Controlling

Allianz SE Dipak Poddar, Independent Director Also Executive Chairman,Poddar Developers Ltd. Sanjay Asher, Independent DirectorAlso Partner, Also Former CEO,

Crawford Bayley & Co. Suraj Mehta,Independent Director

Also Former CEO,Nabil Bank Ltd.

S. H. Khan, Independent DirectorAlso Former Chairman, IDBI Ltd. Manu Tandon, Independent Director

Also Former MD,Elantas Beck India Ltd. Tapan Singhel

Managing Director & CEO.Bajaj Allianz General Insurance Company Limited

It's a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength.

Bajaj Allianz received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct various businesses (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.

As on 31st March 2013 Bajaj Allianz maintained its premier position in the industry by achieving growth as well as profitability. Bajaj Allianz has made a profit before tax of Rs.421 Crores and has become the only private insurer to cross the Rs.100 crore mark in profit before tax in the last two years. The profit after tax was Rs.295 Crores, 138.5% higher than the previous year.

Bajaj Allianz today has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune.

A Partnership Based on Synergy

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

A. INCEPTION AND BACKGROUND OF THE COMPANYBajaj Allianz General Insurance Co Pvt Ltd is a joint venture of Bajaj Finserv Ltd and Allianz SE, it was started in 2001 and it has two company one is Bajaj Allianz Life Insurance Co Pvt Ltd & Bajaj Allianz General Insurance Co Pvt Ltd established in Pune, Maharashtra. It offers wide variety of non-life insurance products like car insurance, two wheeler insurance, travel insurance, health insurance, home insurance and commercial insurance. It has a reputed world class service and claims with its excellent past history. It has come up with various innovative insurance products & has won many awards in its innovations. Bajaj Allianz today has a network of 42 offices spread across the length and breadth of the country.ALLIANZ GROUP

Allianz Group is one of the world's leading insurers and financial services providers. It is largest general insurance company in the world by revenue (2010) (106.5 billion Euros).Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. The group serves approximately 75 million customers worldwide. Provides insurance to almost half of the fortune 500 companies. At the top of the international group is the holding company, Allianz AG, with its head office in Munich. BAJAJ GROUPBajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world. Bajaj Group consists of Bajaj Auto Ltd, Bajaj Finserv Ltd, Bajaj Life Insurance Co Ltd, Bajaj General Insurance Co Ltd & Bajaj Auto Finance Ltd.A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous with quality & customer focus. Bajaj is among the top 10 business houses in India & is one of the most renowned corporate of the country.The initial venture was in auto industry as Bajaj Auto Ltd. From there they diversified into Bajaj Finserv Ltd. Few range of Services provided by them are:

General Insurance Ltd. Life and Health Insurance.

Asset Management and Banking.B. NATURE OF BUSINESSBajaj Allianz General Insurance Co Pvt Ltd is a non-life insurance company which offers a wide range insurance products and services for its products with a wide network established by its tie up program with several organisationsC. VISION AND MISSION AND QUALITY POLICY 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. VALUES:

Fig. 2.11) Customer First, Always:

(a) Treating all customers with warmth and respect.(b) Understanding and managing customer expectation.(c) Listen and are emphatic to the customer.(d) Engage with the customer in the long term.2) Spirit of Adventure:(a) Leading change.(b) Looking for opportunities to innovate at every level.

(c) Empowering others to take responsible decisions.

(d) Showing tolerance for failure.

3) Trust:(a) Accessible to all.(b) Fair and Transparent.(c) Open to Feedback.(d) Keeping Commitments.(e) Trusting each other to do a good job and giving due respect.(f) Own up to mistakes.4) Shared Ownership:(a) Taking collective ownership for success and failure.

(b) Respecting divergent views and own the decisions taken.

(c) Put organizational interest above team & individual interests.

(d) Consciously including and respecting people from different background.

5) High Standards:(a) Setting new Benchmarks.(b) Open to new ideas for raising the bar.(c) Taking pride in own work and excel in what is done.QUALITY POLICY:

The main concern is towards the customers, so they strive hard for good service and customer needs. The products & services they offer is par above the other insurers in the industry. They provide innovative products & services to customers for which they have been acknowledged with awards for category of innovation. They are the best claims service company in the year 2013, where they have settled more claims. They have in house Third Party Administration.It has been certified as ISO 27001:2005 and ISO 9001:2008.D. AREA OF OPERATION It deals with non-life insurance in India (Health, Motor [OD & TP], Travel, Liability, Marine, Engineering, Personal Accident and Miscellaneous). It has a network of 190 branches spread across more than 230 towns and cities of India, while its Head Office is in Pune.Regional Offices:

(a) Bangalore.

(b) Chennai.

(c) Mumbai.

(d) Hyderabad.

(e) Pune.

(f) Ahmedabad.

(g) Baroda.

(h) Kolkata. Regional Offices report into Head Offices.

FACTS & FIGURES (FY2011-2012): 6700 employees.

753694 claims settled.

6742179 policies issued.

GWP exclusive pool 4580.20 Cr.

Profit after Tax 408.99 Cr.

Combined Ratio (Exclusive Third Party Pool Losses) 95.8%.

Combined Ratio (Inclusive Third Party Pool Losses) 101.5%.

Market Share 6.40%.

KEY HIGHLIGHTS OF FY 2013-14: Best Insurance company in private sector General ABP News BFSI Award

Overall LOB wise growth was registered at 12.7%.

Bajaj Allianz General Insurance Company Limited profit after tax at Rs. 409 crores was 38.64% higher than the previous year.

Overall claims ratio was 67%.

E. AWARDS & ACHIEVEMENTS

Bajaj Allianz has received iAAA rating, from ICRA Limited, an associate of Moody's Investors Service, for Claims Paying ability. This rating indicates highest claims paying ability and a fundamentally strong position.1. Bajaj Allianz was conferred with the Golden Peacock Award 2014 in the category of Innovative Products/Service. 2. It was awarded as "Claims Service Company of the Year" by the Indian Insurance Awards 2013, for its superior claims paying ability. 3. In the same year Bajaj Allianz won an award for "Claims Innovation of the Year" in the Asia Pacific Region at the Claims Awards Asia 2013.4. The TISS-Leap Vault CLO Awards [TISS-Leap Vault CLO Awards summit] Gold Medal in the category of Best Game based learning program for its hunt for Shalimar Leadership Game at the TISS-Leap Vault CLO Awards Summit (2013).5. Skoch Order of Merit and Medal (2013): This is an annual award instituted by Skoch Consultancy Services a boutique strategy and management consulting firm. Bajaj Allianz General Insurance has been conferred with the Skoch order of merit and medal for the 3 projects under the following categories:-

(a) EEZEE TAB in the category of Innovation.

(b) Hunt for Shalimar in the category of Human Resource Development.

(c) Employee Social in the category of Human Resource Development.

6. Winner of 2 Awards at Mobile and Digital Marketing Summit. Bajaj Allianz General Insurance won 2 awards at the mobile and Digital Marketing Summit (2013):-

(a) Best Mobile applications in the business for EEZEE TAB.

(b) Best Mobile application of customer engagement for the App-Mobi Fuel.F. INFRASTRUCTURAL FACILITIESBajaj Allianz General Insurance Company Private Limited.Situated at Golden Heights, 4th Floor, No 1/2, 59th C Cross, 4th M Block, Rajajinagar, Bangalore-560010. Policy Issuance Room.

Elevator [Lift].

Medical Room.

Dry Pantry & a Common Pantry.

Canteen.

Meeting Room or Conference Room.

Rest Rooms.

Invertor or Generator.

Server Room. 24*7 Internet Facilities via LAN.

Fire Security Measures.

Fire Extinguishers. Sprinkler System connection all over the facility.

Drinking Water Facilities.

Printing (Copier & Scanning Machines) & Stationery Facilities. Telephone, Mobile Phone Facilities & Laptop for Senior Executives.

CCTV Surveillance. Centralized A/C Facilities.G. COMPETITORS PROFILEThe competitors it has are in the field of Non-Life Insurance i.e., insurance products & services dealing with health, motor, non motor, travel, Fire, Marine, Liability and Miscellaneous. The competitors are mostly are of private companies and they are constantly striving hard give tough challenges. The competitors are: HDFC ERGO.

Bharti AXA.

Reliance General. Tata AIG.

United India Insurance.

Oriental Insurance.

H. FUTURE GROWTH AND PROSPECTUS The company always keeps up the pace with the growing market & develops innovative products & services. It predicts the future risk accordingly & does the market analysis.

It develops unique pricing as per the different products.

It launches Rural Insurance schemes (Natural Calamities, Cattle & Live Stock, Accidents caused to farmers up to age of 70 yrs.) and Pet Insurance. It launches Whatsapp chat service to connect with customers.

It launches All Women Branch (for the women employees). It plans to provide customers better products & services, so it aims to the overall development.CHAPTER - III

SERVICE PROFILE

Products of Bajaj Allianz General Insurance Company Private Limited are Non-Life Insurance Products & Services. It has diverse products in non-life segment. The products are differentiated into various classes. The products may be classified into various sub categories. The various classification are Motor, Asset, Health, Travel, Corporate and Miscellaneous. There are a lots of continuous changes done to insurance products as per customer needs, preferences.PRODUCT DEVELOPMENT PROCESS

Chart 3.1Services:

Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto, trusted for over 55 years in the Indian market, together are committed to offering you financial solutions that provide all the security you need for your family and yourself.

Bajaj Allianz brings to you several innovative products, the details of which you can browse in this section.

1) Motor Insurance:

(a) Car Insurance.

(b) Two Wheeler Insurance.

(c) Liability Only Motor Insurance.

(d) Motor Third Party Insurance.

(e) Commercial Vehicle Insurance.

2) Asset Insurance.

3) Health Insurance:

(b) Health Guard Individual Policy.(c) Surgical Protection Plan.

(d) Health Care Supreme.

(e) Health Guard Family Floater Option.

(f) Extra Care.

(g) Hospital Cash.

(h) Critical Illness.

(i) Personal Guard.

(j) Silver Health.

(k) E-Opinion.

(l) Star Package.

(m) Health Ensure.

4) Travel Insurance:

(a) Travel Companion.

(b) Individual Travel Insurance.

(c) Family Travel Insurance.

(d) Company Travel Insurance.(e) Student Travel Insurance.

(f) Senior Citizen Travel Insurance.

(g) Corporate Travel Insurance.

(h) Pravasi Bharti Bhima Yojana.

(i) Travel Asia.

(j) Travel Elite.

(k) Travel Assist.

(l) Swades Yatra.

5) Home Insurance:

(a) My Home Insurance.

(b) Home Insurance: House Holders Policy.

6) Commercial Insurance:

(a) Property Insurance.

(b) Marine Insurance.

(c) Liability Insurance.

(d) Financial Lines Insurance.

(e) Engineering Insurance.

(f) Energy Insurance.

(g) Employee Benefits Insurance.

(h) International Insurance Solutions.

7) Corporate Insurance:

(a) Specialty Lines:

Aviation. Project Insurance. Marine Hull Insurance. Sports & Entertainment Insurance.

(b) Your Employees:

Group Personal Accident.

Group Critical Illness.

Group Travel.

Group Health Guard.

Workmens Compensation.

(c) Office: Office Package.

Plate Glass.

Fire.

Directors & Officers Liability.

Burglary.

Public Liability.

Money.

Fidelity Guarantee.

(d) Manufacturing Unit:

Fire.

Industrial All Risk.

Machinery Break down.

Contractor Plant & Machinery.

Engineering.

Business Interpretation.

Workmens Compensation.

Public Liability.

Product Liability.

Fidelity Guarantee.

Composite Public & Product Liability.

Marine Insurance.

8) Bajaj Health Plus:

(a) Individual Health Plus.(b) Family Floater Health Guard.(c) Extra Care.

(d) Critical Illness for Women.

(e) Person Guard.

(f) Hospital Cash.

(g) Silver Health.

(h) Star Package.

(i) Health Ensure.

(j) Tax Gain.

(k) Insta Insure.

9) Miscellaneous:

(a) Burglary.

(b) Project.

(c) Plate Glass.

(d) Money Insurance.

(e) Fidelity Guarantee.

(f) Package.

(g) Rural Insurance.

(h) Pet Insurance.

CHAPTER - IV

ORGANIZATION CHART

Chart 4.1GRADE STRUCTUREThe company follows the following system of Levels and Grades:

Chart 4.2CHAPTER - VKEY FUNCTIONAL AREAS1. Motor Dealer Department.

2. Underwriting Department.3. Agency Department.

4. Bancassurance Department.

5. Claims [Motor & Non Motor] Department.

6. Corporate Marketing Department.

7. Travel Department.

8. Renewals Department.

9. Web & Direct Marketing Department.

10. Retail Marketing Department.

11. HAT [Health Administration Team] Department.

12. Third Party Claims Department.13. Operations Department.14. Admin Department.

15. Finance Department.16. HR [Human Resource] Department.Different Department ProcessesMOTOR DEALER DEPARTMENTMotor Dealer Department deals with all kinds of motor vehicle insurance like two wheeler, four wheeler & commercial vehicle insurance. It gets requests from vehicle dealer in case of new vehicle, then the company prepares a cover note within 24 hrs. of request & send it to the dealer. Then only the vehicle can be taken by the vehicle owner. Whereas the cover note will be valid for 60 days from the date of issue of cover note. From the issue of cover note, 3 days will be taken to raise a new policy.Process:1) Inward of Insurance application forms.

2) Scrutiny.

3) Checking of Documents.

4) Premium Receipt(A/Cs (Bank.

5) Insurance Policy Issuance [Approval].

6) Refer to the Policy & verify the details of Policy.

7) Policy Printing.8) Quality Checking [Quality Verification].

9) Dispatch of Insurance Policy.Work Flow:RequestInspection of Vehicle [24 hrs. of Validity]Sending Quote [After Inspection]

Proposal Check & Verification of RC Copy, Previous PolicyPolicy Done & IssuedWhat is the Need of Motor Insurance?

Motor insurance protects from a financial loss arising out of any unfortunate event or accidental damage to your vehicle.

It is mandatory under the motor vehicle act and has to be renewed every year.

It protects from liability of third party injury, death and property damage on account of any accident involving owner of the vehicle. It provides Personal Accident Cover for vehicle owner, vehicle owners family or any other occupants.Why Motor Insurance is needed? Insured Vehicles

Own Damage

Accessories

Coverage Third Party (Person) Third Party (Property) Paid Driver Liability Passenger Owner Driver EmployeesUNDERWRITING DEPARTMENTUnderwriters play an important role in ensuring that pricing is the most appropriate for the risks that are accepted.

The underwriters makes the pricing of policy, they deal with how much price has to be fixed for the policy at the measuring up of the all consequences dealing with policy.

When a customer decides to purchase an insurance product for the various risks that they perceive, they generally provide information about the risk profile in the form of a proposal form. It is the underwriter at the insurance company who assesses the risk and sets the terms and conditions of the acceptance of the risk. The underwriters have only the proposal form at their disposal to assess the risk and ascertain a price for it.Underwriters make decisions based on the level of risk that they perceive, depending on the details or information about the risk provided by the proposer, or gathered by the risk inspection. It is also based on the markets dynamics at that point in time. What matters then are details such as premiums charged, discounts offered, etc., which are all based on the risk, as classified. A thorough underwriting process also helps the customer to understand the magnitude of the risk held by him. In addition to that, the underwriters can also help customers by giving suggestions for precautionary methods that can help curb the degree of the risk that they are exposed to.Underwriters Decide Good & Bad Risk. They are responsible for profit of the company.

Types of Underwriting: Corporate, Retail & Motor.Underwriter department will have Sub-Category Risk Management

Risk Management:

Risk Management is the sub branch of the underwriter, where they see & collect the information of risk regarding certain parameters & perils.

Risk Management will support corporate & Retail giving them information about the risk.

NOTE: The risk inspection for all occupancy is mandatory & risk will be done only when there is requirement.RISK MANAGEMENT PROCESS

Chart 5.1CHANNELS: Bancassurance: Get the Business from bank. Multiline: Get the Business from agents.

Corporate Marketing: Broking Channel- Proposal from Broker. Direct Channel- Direct Business. Overseas Travel: Agents of Overseas.

Motor Channel: From Motor Dealers insurance policy requests are taken & insurance policy is issued.

Operations Department will issue the policies, while the underwriters take code from above channels and forward it to operations branch, where the inspection, collection of documents & verification is done. Then once again cross checking is done. Later the insurance policy is ready to be issued, after that again they check whether the policy is as per the quote approved by the underwriters.Work Flow of Underwriting Department:

Channel Relationship Manager

Underwriter

Code Slip Checking

Details collection of insurance applicantProcessing

Releasing the Quote

Policy is being generated

Cross verification of policy done by UnderwriterInsurance policy is dispatched

Issuance of Insurance Policy

AGENCY DEPARTMENTAgency is one of the most critical channels for distributing Bajaj Allianz products 33% of all sales.

The agency function trains, recruits, develops and handles all matters pertaining to the companys agents.It is a major business sector in Bajaj Allianz General Insurance Company Pvt Ltd.30% of the business is from agency department. The agents are being licensed by IRDA. Under the agency there are 400-500 IMD [Intermediary Developers]. There are 15-20 employees under this department. The Business Developers & Relationship Mangers comes to the company for Business. The Relationship Management takes care of IMD. IMD asks for quotes for which Relationship Management will provide them the quotes by asking it to underwriters if in case quote is not in list of IRDA enlistment.BANCASSURANCE DEPARTMENTBancassurance is a distribution channel that involves banks which is a financial institution dealing with a large customer base. Each bank has their independent Bancassurance commenced in India in the year 2000 which allowed the Indian Banks to do insurance distribution, in the form of Corporate Agents. What began as a trickle where banks were keen to increase their referral income has led to a whole new business proposition in itself. Bajaj Allianz has focused on developing this channel since its inception and has developed a robust business model. Bajaj Allianz was that it is one of the few insurers which is not promoted by a bank. Hence it is a naturally for its non-conflicting interests.Bancassurance is one of the most important vertical for the company that contributes over 20%-30% of the GWP in both life and non-life domains.Bancassurance enables the bank to fulfill their role as a one-stop shop for all their financial solutions. It also synergizes the resources of the Banks and Insurance companies to develop new products and processes, which improves the customer satisfaction levels resulting in higher customer retention levels. To put it succinctly, Bancassurance is a win-win situation for all stakeholders involved as well as the customer.The evolution of Bancassurance has thrown a number of opportunities and challenges. The biggest challenge in any bancassurance partnership is to activate the sales operations at the bank branches without causing an extra burden on the banks itself.

Bajaj Allianz has tie-ups with various banks in the bancassurance model and is often flooded with requests from various banks for such exclusive products for their customers. Such products are known as co-branded products and it is a tailor-made insurance solution designed to cater to the insurance requirements of the banks customers. These products are designed depending on primarily:

Customer Life Cycle Early Stage vs Matured Stage Customer Segment Retail Customers vs Corporate Customers Banks Internal Distribution Models eg. Branch Banking, Direct Sales, Tele Sales etc.

There are two work process in Bancassurance:

External Working: Fresh Insurance Policy. Renewal. Penetration on cash. Cross Selling.

Internal Working: Login Process. OPS Activity.

Scrutiny.

Payment Receipt.

Policy Issuance.

Dispatch. Claims Settlement.CLAIMS [MOTOR & NON MOTOR] DEPARTMENTCustomers buy insurance so that their claims are settled in the event of the occurrence of an insured peril.Claims are divided into two broad areas;

Motor claims and Non Motor claims.

Motor insurance constitutes one of the highest contributors to the premium income of a non-life insurer. In addition to that it is also one of the most visible forms of non-life insurance. Hence it is critical that policy issuance as well as claim settlement has to be closer to the customers expectation i.e. speed.Claims Analysis:Bajaj Allianz receives around 1000 claims a day from all over the country. Considering this huge volume, the TAT (Turn Around Time) has been reduced from 21 days in 2005-06 to 19 days in 2010-11. Fast track claim settlement i.e. settlement through Bajaj Allianz Drive in center and Mobile settlement. Cash less settlement for commercial vehicles. Spot settlement of small claims.There are some claim cases where there will be frauds done by the customers or so called policy holders. They will be having fake insurance policy or expired insurance policy, which they forge and manipulate the insurance policy & alter it and claim for the insurance. The insurance frauds cases done are sometimes are not able to be identified as a fraud. Frauds in various areas

Chart 5.2Types of Fraud:Insurance frauds involves a wide range of illegal practices that includes intentional misrepresentation and concealment of facts to gain monetary benefit. It also entails policyholders exaggerating legitimate claims or deliberately inventing a loss to make a claim under the policy. Frauds in the insurance Industry can be broadly categorized into Policyholders/Claims Frauds, Intermediary Frauds and Internal Frauds.

Different Types of Frauds affecting Insurance Company Chart 5.3 Some Premium related fraud scenarios in the general insurance business.

Commission Rebating. AML issue i.e., paying premium in cash.

Insure the vehicle which has suffered accident.

Some frauds scenarios of fake documentation in the general insurance business.

Managing medical tests.

Proposal form not filled in by the policyholder.

Cover note related fraud.

Submitting false medical test reports.

EEZEE TAB can minimize frauds.Benefits of EEZEE TAB:-

(a) Policy Issuance phase.

(b) Pre inspection phase.

(c) Claim settlement phase.CORPORATE MARKETING DEPARTMENTThe Corporate Marketing Department is a part of Bajaj Allianz General Insurance which gets the business from corporate sectors. There will be Brokers who will get the business to the company. There are two types of Brokers; MNC Broker & Non MNC Broker. The Department deals with all products in non-life insurance without any preference as such. The Business will be got from companies for their employees in case of Health, Motor, Travel and Miscellaneous Insurance. There will be a huge difference between Retail and Corporate Marketing in issuance of Insurance where in the corporate marketing follows a separate type of pricing, underwriting & issuance of insurance policies.The Brokers who get the business to the company will be provided 1% of the amount out of the business got by them as a commission towards their work done.Work Flow:BrokersCheque against the insurance policy [collected]Runner Boy [Follow Up]

Operations

Policy Issuance

Refer Insurance Policy Issuance

Underwriter sign

Corporate Department

Insurance policy being sent to client

TRAVEL DEPARTMENTTravel Insurance is as important as any other travel accessory while planning a trip overseas. Travel related risks can be many and the cost for securing against these risks is relatively small. For instance, if in the unfortunate event of hospitalization in a foreign country, the expenses can be huge. But if a travel insurance plan is purchased, the policy will take care of the financial burden of the illness.In addition to medical expenses, evacuation and repatriation, it also makes a claim on Travel insurance in case of loss of checked-in baggage, delay in baggage, personal accident, loss of passport, trip delay or hijack. In fact, Bajaj Allianz also offers a cover for golf tournaments in foreign countries.

Bajaj Allianz is the only private general insurer in India to have an in-house team for handling Travel Claims. The most important aspect of claim settlement in travel insurance is coordinating with the hospitals and local service providers in the foreign country. This is where a large network of international assistance companies or partners come in useful. Bajaj Allianz has a network of assistance companies in over 30 countries that enable medical assistance, claims process, repatriation and evacuation service and other services.Bajaj Allianz Advantage

Bajaj Allianz is the only private general insurer in India to have an in-house team for handling Travel Claims. This provides the following benefits to the customer:

International toll-free phone and fax number.

24x7 availability. Direct relationship with the customer and direct communication with hospitals in case of requirement of documents. Quick settlement of claims.

Faster resolution of dispute and faster decision making on admissibility of claims.The Department consists of IMD [Intermediary Developers]. IMDs bring business to the travel department. They operate in their respective places & consult the company for the insurance related concerns. If new IMD is there then new code is created by taking request from them. MOU is done, later the Head Office will verify & create the code. From the code the agent float is done. In the agent float they will provide some amount which is known slab amount. Through that they can make the insurance policies initially. Later out of the total policies made agents will get commission, once a month.Work Flow:RetailRelationship Management

Operations

Policy Issual

Client

CorporateRequest from Corporate Client

Request is accepted

Underwriters approval

Operations

Policy Issual

Client

RENEWALS DEPARTMENTIt is the Department which renews the expired insurance policy of all types. The department takes care of the all data regarding the insurance policy holders in a central database. By the help of database, a separate team will generate renewal notice. Then they will distribute the notice to the customers, later remind customers about the notice. In the regular interval they will update about the policy renewal. If the customer agrees to renew the policy & reapproach the company. The executive then collects the cheque from customer and finally prepares the policy. Finally dispatches the policy after all verification from concerned department. For Motor Insurance due date of 90 days will be there, in that period the policy holder has to renew the policy. For Health insurance due date of 15-30 days will be there, within that period the policy holder has to renew the policy.TYPES OF PAYMENT:1) IVRS payment.2) Online portal.

3) SMS System [Through float amount is paid].

4) EEZEE Tab.

5) NEFT Transfer.

STRATEGIES:1) On-timely / Renewal has to be reach to client.2) Direct Intervention.

3) Customer Response.

4) Meeting Target.

SOFTWARE USED:1) Geo Snena.2) RTM-Renewal Track Module.WEB & DIRECT MARKETING DEPARTMENTWeb The web sales channel is the latest channel to be introduced by Bajaj Allianz.The web department is been taken care by Head Office.

Direct Marketing Direct Marketing is selling of insurance directly without using the middlemen/ intermediary.The Direct Marketing consists of Relationship Managers who approach the customer and get business to the company. The department has separate policy issuance counter, where the customers can purchase the required insurance policy by providing all documents & application form. After the verification & approval the customer will be issued the insurance policy.The team will have a target of 8-10 Lakhs every month. Everyday minimum 20 customers must be met & customer interactions has to be followed. Regular updating the customers about the insurance policy & incase of renewals reminding them. Strategies:1) Service is an important criteria.2) After sales service.

3) Cross selling.

4) Continuous follow up with customer.

5) In case of Motor & Health Insurance policies, regular contact with customers are made.Work Flow:Direct (Door to Door) Product Sales

Call up the customers & collecting details from customers

Sending Quotation to customers

Fixing up an appointment with customers

Collecting if any previous insurance copy is therePreparing new policy & affixing company seal & sign

Collecting payment from customer (D.D, cheque or cash)Enter in Office Register

Operations team Create Scrutiny (scrutiny number)

Pre search team (Head office) confirmation of details & call the customer

After confirmation Issuance of policy

Creation & Updating of Customer Id

Operations is consulted if approval required

Dispatch of Insurance policy

RETAIL MARKETING DEPARTMENTThe Retail Marketing is the process of individual insurance policy issuance. The department gets the different types of insurance policy for purpose of issuance, the department collects all the request and later gets the insurance policy done accordingly by the help of other departments. The Retail marketing plays an important role in bringing business and performs its task in order to achieve the target and fulfill the department requirements.It performs as similar to that of corporate marketing department but in individual sense of approach.HAT [HEALTH ADMINISTRATION TEAM] DEPARTMENTThe Health Administration Team popularly referred by its initials HAT is a complete self-contained unit comprising doctors, paramedics, nurses, underwriters, claim assessors and other health experts.The department comprises of different insurance policy Travel and Personal Accident (P.A). The HAT product includes group products, Individual, General, Group Personal, Travel, Education and Generic policies. The company has in-house TPA (Third Party Administration). It also has different types of network in order to make claims to insurance holders such as 1) Network Hospital. 2) Non-Network Hospital.It has different types of policies like 1) Endmnity Policy. 2) Benefit Policy.

There are two types of claims such as 1) Cashless Claim. 2) Reimbursement.Services offered by HAT are:1) Home visits for medical checkup.

2) Discounts at Hospitals.

3) Speedy claim services.

4) Availability of information at the time of admission.

5) Restricting Charges Overcharging: If hospitals are overcharging then insurance company can block list the hospital.

Work Process:DMS [Document Management System]

Quality Check

Processor Assessment

Doctor Cross Verification

Policy Issuance

Chart 5.4THIRD PARTY CLAIMS DEPARTMENTThe Third Party Claims department makes the claims regarding third party insurance and takes care of legal proceedings if any. The process of this department are: 1) Intimation of the claim will be noticed when the court notice is served to the third party claims department.2) Immediately company will send the vakalath to the advocate to appear before the court.

3) At the same time petition copy of the case will be sent to investigator to collect the police paper & investigate the genuinity of the case.4) A letter will be sent to owner of the vehicle for production of vehicle documents & driver details.

5) After receipt of the investigation report the third party claims department will scrutinize the files & will set their defenses.

6) In case if third party claims department didnt find any defenses company will initiate for compromise.7) If company find any defenses then company will intimate the same to advocate with instructions to contest the case to get exoneration order against the company.

8) In this process the company will file written objections in the cases wherein the company has served with notice.9) The company will lead the evidence through its legal officers with all the available defenses. The company witness will be entering into witness box for the process of evidence.

10) If the court gives an order of exoneration to the company, then the company will pay the advocate fees and will close the claim.

11) Closure of the claim will be done by the Back office.

OPERATIONS DEPARTMENTThe operations function takes care of policy issuance, proposal from scrutiny, dispatching of policy documents. The operations department takes care of the insurance policy preparing, verifying & proceeding it further to policy issuance.The operations department consists of two system in it:

1) Centralized System 2) Localized System It has a customer focus unit which takes care of claims & settlement.The operations takes care of following processes:-

1) Scrutiny.2) PID [Partner ID Creation].

3) Premium Receipting.

4) Policy Issuance.

5) Printout.

6) Quality Check [Q.C]

7) Dispatch.ADMIN DEPARTMENTThe admin function takes care of building and facility maintenance for Bajaj Allianz General Insurance Company Limited and Bajaj Allianz Life Insurance Company Limited. It works round the clock to meet all the needs of daily work process. Office stationeries, printing, electricity, telephone, newspapers, water, cleaning, maintenance of the facility & etc.FINANCE DEPARTMENTThe finance team takes care of the following

1) Branch and Head Office accounting: It takes care of Branch office A/cs and Head Office A/cs, the transactions between branch and Head Office and maintenance of A/cs for further reference. 2) Cost Analysis: It carefully analyses the cost involved in the various functions in the departments of the office.3) Payroll: It maintains the employees salary payment and maintenance of the details for further reference.4) Commission payouts: It takes care of commission to be paid to agents and takes the details of all commission details of the financial year & records it.5) Cash Management: It manages the cash whatever paid by the clients towards insurance & maintains the details of it.6) Bank Reconciliation: It reconciles the bank transactions & maintains the good track record for future.7) Risk Management: It takes care of the risk involved in the payments & receipts. It manages it with a careful way so that there is no problems occurred in those case.8) Taxation: It manages the taxes to be paid to the government for the particular financial year with all dues regarding the company. It also maintains the detailed record for further reference.HUMAN RESOURCE DEPARTMENTThe Human Resource Department function takes care of the following:

Employee Relations which include employee fitment, letter insurance, employee transfers, contracts with consultants.HR policies:Human Resources Team The zonal HR team partners with the business to ensure that each function/office is business ready in terms of its human resources.

The zonal HR is your single point of contact for all your HR related needs.

Some of these are broadly categorized as below:

Joining Formalities & Induction. Performance Management.

Employee Engagement and Parivartan.

Learning & Development (I-Quest, E-Learning, Assessment Centers)

Manpower Sourcing.

HRIS (Human Resource Information System)HRIS is an online module which allows employees to get their complete employment related details.

Features of HRIS: Attendance marking & regularization.

Application for leave.

Salary details.

Personal details.

Investment declaration.

Target setting.

HRIS has an integrated online module called my Ascent payroll, which allows employees to get their complete payroll related information.

MyHRMS (Human Resource Management System)MyHRMS is an online module which allows Bajaj Allianz Staffing Solutions [BASS] employees to get their complete employment related details.Features:

(a) Attendance marking.

(b) Application for leave.

(c) Pay slips.

(d) Personal details.

(e) Investment declaration.

(f) Medicare.CHAPTER - VISWOC ANALYSIS

1) STRENGTH Well established organization with a reputed company Allianz SE to support. It is the largest private player in the general insurance industry in India. Excellent services. Strong Customer Base. Good Brand Image. Innovative Products, Technology, Organization culture and work atmosphere. Large network of branches all over the country.2) WEAKNESS It does not have a bigger approach in rural areas.

It needs to overcome its error in identifying the young diversifying customers. Need to concentrate on lower income group people. Must look into diverging market group. Has to enhance the progressive workforce. Lacks in recognizing the competition in some parts.3) OPPORTUNITIES

Huge area of market still need to have focus where Bajaj Allianz can develop various products and launch. In the modern India there are new technological inventions where customers take more quickly, so it is one area where it can stress to have its products marketed. Developing market provides much different needs as insurance can be one purpose to meet the secure way of life for people, where it can work on. Has to define the new arenas & produce a positive approach.4) CHALLENGES The new insurance companies or private sector insurance companies have posed a greater challenge. Has to cope up with competition where other competitors price low premium over the similar products of Bajaj Allianz General Insurance Company Limited. Have to penetrate in newer markets where some of the other General Insurance Companies are Predominant. Have to generate more insurance policies and decrease less number of claims.CHAPTER - VIIFINDINGS

Bajaj Allianz General Insurance Company Limited has an excellent work environment. It has trained executives who are very well in their respective departments. The training is provided in an excellent manner.

The communication of the executives are good. The office is arranged so well with all equipments so that the customers are being attracted. They follow up each & every policy renewal process in a better manner. The service is on a par with world class system. They provide very unique featured customer services. They are top recruiters in the general insurance industry, so that they provide more job openings. The overall structure of the company is very unique. It has in house team of Third Party Administration & Development Department. CHAPTER - VIII

SUGGESTIONS

As per the study in Bajaj Allianz General Insurance Company Limited., they have to take care of the customer requirements and provide customized products.

Company should utilise its human resource & have a better production. There should be optimum utilisation of resources.

They should have a much better operations & development team in order to overcome competitors.

They have to make better decisions, implement it in right direction & right time so that they can enhance their productivity. Have to develop an awarness campaign in order to spread the knowledge of insurance to people.

The company has to consider more rural people & develop much more insurance products to them.CHAPTER - IX

CONCLUSIONBajaj Allianz General Insurance Company Limited is the number one company in the last financial year in general insurance sector. It has a wide variety of non-life insurance products for all age groups from children to senior citizens. It has offices all over India with better network, so that it processes good number of insurance policies.The Bajaj as a household name since decades has contributed umoungously to general insurance sector in India with the partnership of Allianz. The company holds a good name in the market & is a reputed general insurance company.Bajaj Allianz General Insurance Company Limited is dominated the market with its various products & services. It stands on a unique place when compared to other companies in the industry for its products, services and achievements. So it plays an important role as an General Insurance sector & enjoys goodwill as well as favoritism by the Indian market.CHAPTER X

LEARNING EXPERIENCEIn the four weeks of study in organisation at Bajaj Allianz General Insurance Company Limited, I have learnt a lot with the interaction between the executives in various departments of the company. I studied the company workings and operations as to how they execute, enact & perform. It has helped me know about the organisation & gain knowledge about the overall functions in the organization. I learnt how to approach a company and communicate with them.

I understood how to interact with the employees & to extract the information from different types employees in the organization. I got to know how various department works with their unique proceedings and how they follow the work & execute their tasks within prescribed time. This enhances the work & develops a quality and customer service. I came to know how the various departments interact with one another & execute their work with more efficiency.

I came across various mindsets of employees while collecting information, while all reacted and co-operated with good way from the superiors to subordinates. They helped me with a positive note to construct the information in order to prepare the project report.

EWCM/an /NKJ/2014PAGE NO 62

_1473018625.xlsChart1

1200

1300

1500

1700

1700

1900

2000

3300

5200

Market Share

Sheet1

Insurance CompaniesMarket Share

Shriram General1200

Cholamandalam1300

Royal Sundaram1500

Tata AIG1700

Reliance General1700

HDFC ERGO1900

IFFCO Tokio2000

Bajaj Allianz3300

ICICI Lombard5200

_1473018622.xlsChart1

16.02

10.43

18.21

15.66

8.11

18.05

7.95

16.52

Market Share(%)

Sheet1

ProductsMarket Share(%)

Fire16.02

Marine10.43

Engineering18.21

Motor (OD & TP)15.66

Health8.11

Liability18.05

Personal Accident7.95

All Others16.52