Bajaj Allianz launches service-on-wheel

Service starts from Pune and will shortly be launched in Hyderabad

Bajaj Allianz Life Insurance today announced the launch of a first-of-its-kind initiative – “Service on Wheels” at their headquarters in Pune.

Under this initiative, an exclusive mobile van will be equipped with a customer service executive and will act as a mini office where the customer can make their renewal payment or place their service requests. The van will offer services like collecting renewal premium, registering policy servicing requests, giving acknowledgements and receipts . Only cheques and DD would be accepted and cash payments will not be accepted. “I am keen to take this customer-centricity to another level by augmenting our existing service network to reach out to our customers, agents wherever they are located. Service on Wheels is a small step in this direction. This initiative will allow us to address lot of issues that are being faced by the life insurance segment as such,” said Anuj Agarwal, MD & CEO, Bajaj Allianz Life Insurance.

In Pune, the mobile van will travel to areas such as Chakan, Narayangaon, Talegaon, Aundh, Katraj, Hadapsar, Akurdi etc. which have a high concentration of Bajaj Allianz customers and agents. The company plans to roll out “Service on Wheels” in other cities and towns in Andhra Pradesh, Karnataka, Odisha, Madhya Pradesh, Rajasthan etc. shortly. The service has been launched after the firm conducted a research. The research revealed that a large group of customers found it difficult to travel to Bajaj Allianz’ nearest office especially from distant suburbs.  “So, we thought of reaching out to them and resolve all their policy related queries. We have devised a route plan where the van will go to main hubs in localities situated 30 – 40 kms away from our offices to provide these services,” said Rituraj Bhattacharya, Head Market Management, Bajaj Allianz Life Insurance.

Bajaj Allianz has three offices in Pune at – Swargate, Pimpri and their HO at Yerawda. The company has over 1500 insurance consultants across Pune and its distant suburbs.

“Bajaj Allianz has created a milestone in the life insurance space with this service. India has about 40 crore uninsured people. By rendering such services, I am sure these uninsured people can also be brought under the insurance cover. Besides, it may not be possible for insurance firms to open offices in remote areas of India, but initiative like this will allow companies to reach out to a wider customer base,” said V Manickam, Secretary General, Life Insurance Council.

Such services will also help in the collection of premium from customers, which have been consistently falling. For the period of 2009-2012 the life insurance industry had a compounded annual growth rate of -1.4 per cent. “Bajaj Allianz too has seen a drop in premium payment. But this has been an industry phenomenon and it is more due to the changing nature of policy. But we have seen a shift towards traditional policy,” said Agarwal.

As a industry renewal premiums have grown by 5 per cent on a year-on-year basis. Manickam also added that with new product regime coming into act from January 1, 2014, the industry is expected to have a CAGR of 15 per cent for the next five years.