A PROJECT REPORT ON

THIRD PARTY MOTOR INSURANCE OF BAJAJ

ALLIANZ COMPANY

2016 2017

BACHOLOR OF BANKING AND INSURANCE

OF
TILAK COLLEGE OF SCIENCE AND COMMERCE
VASHI, NAVI MUMAI 700705

SUBMITTED BY
GUIDANCE

SHOBHANA PATEL

ABHA MAHESHWARI
ROLL NO. 72033

UNDER THE
MRS

Introduction
A motor insurance or an auto insurance or more popularly known as a car
insurance, is an insurance cover which is meant to protect your vehicle against the
losses incurred due to unforeseen instances. It covers you from the risk of loss from
theft, loss from accidents or any subsequent liabilities.
Motor insurance can be generally classified into 3 broad categories.

Car insurance:
It covers all kinds of losses or damage by accident, fire, any kind of natural
calamities, theft and the third party claims.

Two wheelers insurance:

This type of auto insurance is meant for the two wheelers. It provides
protection to the vehicle from the loss or damage from natural calamities like
earthquakes, floods, hurricanes and man-made calamities like fire, landslide etc.

Commercial vehicle insurance:

It covers all those vehicles which are not used for personal purpose. Vehicles
like trucks, passenger buses, heavy commercial vehicle, light commercial vehicles,
agricultural vehicles, multi-utility vehicles, ambulances etc are covered under this type
of insurance.
Motor insurance is also mandatory by the law. It is a legal requirement in
India to have insured a minimal level of insurance protection before driving any motor
vehicle.

Objectives of the Study

To create an awareness about the Motor Insurance Policy of the Bajaj Allianz
Company
A aim of insurance is to promote and reward responsible behavior of customer
To identify the potential policy holders among end users and to create a
relationship between the companies and potential customers.
To find out the customer satisfaction level with Bajaj Allianz company.
To study third party motor insurance

Purpose of the Study

The purpose of this study is to analyze, find out and relate the various benefits &
Features of Motor Insurance Policy provided by company
Creating Awareness on:

Services Provided
Draw Backs
Benefits
Conditions
Claims etc.,

Limitations of the Study

Even though every effort was made to complete all areas of the project, it still
has its own limitations.
Due to time constraints the sample was restricted to 50 respondents
The time factor was not in favor as the period of study was limited to one
month
The respondents were willing to provide information. They were free to share
their information
The tools used for analysis has its own limitations.

Importance of the Study

The importance of this project is concerned with the study of the Awareness of
Motor Insurance Policy provided by the Company.
Make an Aware of Features, Benefits and the Claims of a Policy
Identifying the Customer needs and feedback on the existing policy
The result arrived out of this study would know about their need for better
performance in future
Study on the benefits earned by the customer through the policy of car
insurance
Gives suggestions to the customer to choose the services at the time of buying a
policy

LITERATURE REVIEW
With the initiation of the deregulation in the Indian insurance market, the
monopoly of big public sector companies in life insurance as well as general (non-life
insurance) market has been broken. New private players have entered the market and
with their innovative approaches and better use of distribution channels and
technology, they are eating in to the shares of established public sector companies in
Indian Insurance Market.
McKinseys director in India and banking industry expert Leo Puri says the ope
ning of insurance has been a smooth deregulation process. The state mammoth, the
LIC has not been estabilished and the objective of deregulation has been met.
Employment has grown so as the insurance business.
Consumer attitudes and perception about insurance have changed; Insurance
is now considered a viable financial instrument to meet different needs. Bajaj
Allianzs Ghosh.
In 2009-10, the life insurance sector grew by 10%. Life Insurance penetration
(i.e. premium as a percentage of GDP) in India was 2.26% as against the global
penetration level of 5.23%.The marketplace is getting competitive, but the market
share of private insurance companies remains very low -- in the 10-15 percent range.
The heavy hand of government still dominates the market, with price controls, limits
on ownership, and other restraints.
Indian insurance industry is anticipated to witness a 500% growth and reach to
US$ 60 Billion in the coming four years, thanks to swelling demand in semi-urban
and rural areas, reported industry chamber Assoc ham. Assocham stated that semiurban areas would have a share of US$ 35 Billion and urban areas would account for
US$ 25 Billion in the US$ 60 Billion industry. Anil K Agarwal, President, Assocham
(Associated Chambers of Commerce and Industry of India), reported that a large
segment of rural India is still untouched because of long distances, poor distribution
and high return costs. A Research Analyst at RNCOS says that the progress in the
semi-urban and rural areas would largely fuel the growth in insurance sector. The
other

factors

that

would

boost

the

growth

in

this

sector are improving

economic scenario, increasing disposable incomes, and rising product demands.

As part of the Federal Balanced Budget Act of 1997, Congress in United States
created the Children's Health Insurance Program (CHIP) as a way to encourage states
to provide health insurance to uninsured children. Jacob Alex Klerman (1997) in his
report Health Insurance among children of unemployed parents addresses the problem
of lack of health insurance for children in the United States. Using
the data from the 1990, 1991, and 1992 panels of the Survey of Income and Program
Participation,

this

report

presents

the

interrelation

between parental unemployment and childrens health insurance coverage. As per the
report nearly half of the children lose their health insurance because their parents lose
or change a job. Rosemarie, Paul J Boben, Jennifer B. Bonney (2007) evaluates the
State Childrens Health Insurance Program (SCHIP) and how it has given state
the freedom in providing more children with coverage. They found out that because of
providing Health Insurance to Children it provides not only cover against medical bill
but also participate in the customer health planning. Senate Bill Report (United States)
(2005) on Regulating Life Insurance by Labor, Commerce and Financial Institutions
evaluates 100 Life Insurance Companies to survey their practices with regard to the
marketing and underwriting of juvenile insurance policies. In many cases, the average
death benefit claimed, upon the death of an insured child, far exceeded the economic
losses, such as funeral expenses. Concern exists that, while many well-meaning adults
may innocently purchase inappropriate or unnecessary amounts of life insurance on
children, some may actually be purchasing the policies with criminal intent. Some
news stories indicate that some children are murdered in order to obtain insurance
payments. The report suggest that Life insurers must develop and implement
underwriting standards and procedures designed to detect and prevent the purchase of
juvenile life insurance for speculative or fraudulent purposes, and maintain records of
rejected applications for 10 years. Deborah Senn (2007) Insurance commissioner
United States says that State needs stronger guidelines for Childrens Life Insurance.
The survey conducted indicates that many companies offering juvenile life insurance
do not appear to have strong standards in place to help prevent this kind of tragedy.
ShaileshBhandari and Elizabeth Gifford (2005) in their paper on Children with Health
Insurance investigate patterns of childrens health insurance coverage and explore the

characteristics of uninsured children. Using the data from the Current Population
Survey (CPS), it provides national estimates of the number and percentage of
uninsured children by age, race, family type and family income. According to Tom
Menezes, in his work on Life insurance for child, June, 2007, Child Insurance is one
of the fastest selling insurance products of the new era. Every insurance company
should focus on innovative products and train the advisors to approach prospective
customers. SmithaTripathi (2008) looks into how Higher education which used to be
remarkably cheap in India is changing with remarkable swiftness. The paper discusses
that parents should start saving for the child education even before he or she starts
going to nursery school. If you are the type who likes starting early, it might be a good
idea to start looking at insurance policies that matures when your child comes of age.
Now that education is getting costlier, insurance companies are also realizing that its
important to offer new schemes. So, there are much more policies than ever before.
These policies mature when your child comes of age and the money can be used
for higher education or marriage expenses. The paper provides the information about
the different type of child policies and which one suits you according to your need.
Mr. Ian J Watts, Managing Director, Tata AIG Life Insurance (2006) says that
Children Life insurance products not only meet the educational needs of children but
also offer insurance cover. Considering the costs involved for pursuing higher
education and also the competitive environment that a child is exposed to, the need for
planning the education of a child is an important aspect for any parent.
Alison Cuellar, Kelly J Kelleher, Jennifer A Rolls and Kathleen Pajer (2008)
discuss that without the Health Insurance benefits many youths will not receive timely
health care. The delinquent youths who have violated the law have typical poor
physical and mental stress which leads to higher medical costs. David Gambrill (2008)
points out the importance of Child Insurance. Its a changing world. Almost nothing
remains the same like that your child dreams keep on changing. Its up to you to make
sure that when time comes, she has the means to make her dreams come true. Sue
Laing (2009) brings forward an often-overlooked issue, the financial impact that a
childs illness or injury can have on family finances in her research paper Childrens
trauma: an undersold safety net. The

author shares her personal experience that

clients accept the vulnerability of their children far more readily than their ownthis
is just a matter of informing them of their options. Of those with whom childrens
trauma is discussed and perhaps debated, some will accept the advice to go for child
insurance. The overall amount the parents will be committing to their insurance
package is relatively inexpensive as compared to the childs trauma. Though the
returns are not very high, most financial planners recommend that you buy a children's
policy. Sanjiv Bajaj, director, Bajaj Capital, says that "Children insurance policies
ensure a disciplined saving mode for the child's future. Moreover, since the returns
are tax-free, you need not worry about what the tax structure will be like 20 years
down the line."
The US$ 41-billion Indian life insurance industry is considered the fifth largest
life insurance market, and growing at a rapid pace of 32-34 per cent annually,
according to the Life Insurance Council. Since the opening up of the insurance sector
in India, the industry has received FDI to the tune of US$ 525.6 million. The
government is likely to reintroduce the Insurance Bill which proposes to increase the
FDI cap in private sector insurance companies from 26 per cent to 49 per cent.

1.6.2 DATA COLLECTION

The main source of information for this study is based on the data collection.
Data collected are both primary and secondary in nature.

Primary Data
Primary data have been directly collected from the clients of Bajaj Allianz
Company by survey method through undisguised structured questionnaire.
Questions like close ended, multiple choice, dichotomous and ranking type
have been used for the purpose of data collection.

Secondary Data
Secondary data have been collected from official website of Bajaj Allianz Company
and also from other official websites related to Motor Insurance Policy

1.6.1 RESEARCH METHODOLOGY

Research design is the plan, structure to answer whom, when, where and how the
subject is under investigation. Here plan is an outline of the research scheme & which
the researcher has to work. The structure of the research is a more specific outline and
the strategy out, specifying the methods to be used in the connection & analysis of the
data.