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RESEARCH PROJECT REPORTOn
COMPARATIVE ANALYSIS OF SELECTED
GENERAL INSURANCE COMPANIES IN INDIAAt
Bonanza Portfolio Ltd. (Panchkula)
SUBMITTED FOR PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
DEGREE OF
MASTER OF BUSINESS ADMINISRTRATION
OF
Punjab Technical University, JalandharBY
Lokesh Thakur
ROLL NO. 1172765
MBA III SEMESTER
UNDER THE SUPERVISION OF
Lect.Sandeep Passi
Chandigarh Business School, Landran, Mohali
Batch: 2011-2013
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ACKNOWLEDGEMENT
Acknowledgement is not only a ritual, but also an expression of indebtedness
to all those who have helped in the completion process of the project. One of
the most pleasant aspects in collecting the necessary and vital information
and compiling it is the opportunity to thank all those who have actively
contributed to it.
No task is a single persons endeavor. Various factors, situations, and people
integrate to provide the back ground for the accomplishment of the task.
Behind this work lie the kind help, assistance and valuable advice of many
people to whom we will remain indebted.
Exchange of ideas generates energy & a will to work in a better way.
Whenever other help a person he/she is bound to pay gratitude to them.
Acknowledgement is not merely a formality rather an expression of deep
gratitude.
I thank our institute G.G.D.S.D COLLEGE, CHANDIGARH, to provide us this
wonderful opportunity to learn new things and gain valuable experience. I owe
my thanks to my family for their consistent moral support & also feel immense
pleasure to thank Dr. A.C.Vaid (principal), Dr.n.k.sahni (HOD Commerse) &
Mr. Ajay Yash Pal Taneja for their consistent guidance & encouragement
without whom this project would have been imposible.
I must express my sincere thanks to the author whose works I have the
priviege to consult and quote in my research project. I an also thankful to all
the people who took out their valuable time for giving expert interviews. I
extend my gratitude to my respected parents who have been a constant
sourse of encouragement. I must not forget the generosity according by them.
I thanks Mr. Amit Mohindroo. My supervisor, sincerely for his constant
direction, involvement and support.
Last, but not the least, I bow in gratitude to the almighty, whose grace enabled
Me to complete this project.
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CHAPTER-1
INTRODUCTION TO INSURANCE
INTRODUCTION AND MEANING-Insurance, in law and economics, is a form of risk management primarily used to
hedge against the risk of a contingent loss. Insurance is defined as the equitable
transfer of the risk of a loss, from one entity to another, in exchange for a
premium, and can be thought of as a guaranteed small loss to prevent a large,
possibly devastating loss. An insurer is a company selling the insurance; an
insured is the person or entity buying the insurance. The insurance rate is a factor
used to determine the amount to be charged for a certain amount of insurance
coverage, called the premium. Risk management, the practice of appraising and
controlling risk, has evolved as a discrete field of study and practice.
A thriving insurance sector is of vital importance to every modern economy. First
because it encourages the savings habit, second because it provides a safety net to
rural and urban enterprises and productive individuals. And perhaps most
importantly it generates long-term investible funds for infrastructure building. The
nature of the insurance business is such that the cash inflow of insurance
companies is constant while the payout is deferred and contingency related.
This characteristic of their business makes insurance companies the biggest
investors in long-gestation infrastructure development projects in all developed
and aspiring nations. This is the most compelling reason why private sector (and
foreign) companies which will spread the insurance habit in the societal andconsumer interest are urgently required in this vital sector of the economy.
Thats why I choose this sector for my project.. My Project Titled THE
COMPARATIVE ANALYSIS OF SELECTED GENERAL INSURANCE
COMPANIES IN INDIA aims to know about the MARKET SHARE,
GROWTH RATE, PROFITS GENERATED, & OTHER FATCORS & also to3
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know about the consumer awareness regarding the public sector insurance
companies and private sector general insurance companies and other factors which
one considers while buying the insurance product and focused on the needs and
wants of the customers and also the kind of services which the customers need
from the insurance company.
The companies which I have selected in the project for the comparative analysisare BAJAJ ALLIANZ GENERAL INSURANCE CO., ICICI LOMBARD
GENERAL INSURANCE CO., NATIONAL INSURANCE CO., THE
ORIENTAL INSURANCE CO., IFFCO-TOKIO AND THE LAST UNITED
INDIA INSURANCE COMPANY. The three companies are private sector
companies and three are public sector companies.
DEFINITION-
Functional definition-
Acc. to Disnadle-
Insurance is an instrument of distributing the loss of few among many
Contractual definition-
Acc to Justice Tindall-
Insurance is a contract in which sum of money is paid to the assured in
consideration of insurers incurring the risk of paying sum upon a given
contingency
NATURE AND SCOPE-
Sharing of risk
Co-operative instrument
Evaluation of risk
Payment is linked to contingency
Large number of insured persons
It is not gamble
It is not charity
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TYPES OF INSURANCE:
Below are some kinds of insurances.-
LIFE INSURANCE:-Life insurance policy insures the life of the insured. The
insurance company is legally bound to provide a monetary benefit to a decedent's
family or the beneficiary after the death of the policyholder. The proceeds are paid
to the beneficiary either in a lump sum amount or an annuity
MEDICAL INSURANCE:-Medical insurance is also called medclaim. Under this
policy the insurance policy pays the amount to the insured for his health purpose.
This amount covers the cost of medical treatment.
DISABILITY INSURANCE:-There are two types of disability insurance.One is
simple disability insurance and the other is total disability insurance. In case of
simple disability insurance,a financial support on monthly basis is provided by the
insurer to the policy holder if he is unable to work due to an injury or an illness.
But permanent disability insurance provides the reimbursement if a person
becomes permanently disabled.
GENERAL INSURANCE:-It includes automobiles insurance, business insurance,
property insurance etc.
Automobile insurance:-In UK this insurance is called motor insurance. It
compensates the loss or damage occurred to the vehicle. But in United
States auto insurance policy is essential to legally operate a vehicle on
public roads.
Business insurance:-Business insurance protects the businesses against
risks of losses and damages and compensates in case of loss
Property insurance:-This type of insurance protects the property against the
risks like fire, theft etc. This category also includes fire insurance, flood
insurance, earthquake insurance etc
Fire Insurance:-It is an insurance covering the damage to the property
caused by fire.
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Flood Insurance:-This type of insurance pays the policy holder in case of
any loss or damage to the property due to flood. It protects the property
against the flooding.
Earthquake Insurance:-This insurance compensates any damage to the
property caused by earthquake.
FUNCTIONS OF INSURANCE-
1. Primary Functions
2. Secondary Functions
3. Other Functions
The primary functions of insurance include the following:
Provide Protection - The primary function of insurance is to provide
protection against future risk, accidents and uncertainty. Insurance cannot
check the happening of the risk, but can certainly provide for the losses of
risk. Insurance is actually a protection against economic loss, by sharing the
risk with others.
Collective bearing of risk - Insurance is a device to share the financial loss
of few among many others. Insurance is a mean by which few losses are
shared among larger number of people. All the insured contribute the
premiums towards a fund and out of which the persons exposed to a
particular risk is paid.
Assessment of risk - Insurance determines the probable volume of risk by
evaluating various factors that give rise to risk. Risk is the basis for
determining the premium rate also
Provide Certainty - Insurance is a device, which helps to change from
uncertainty to certainty. Insurance is device whereby the uncertain risks
may be made more certain.
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The secondary functions of insurance include the following:
Prevention of Losses - Insurance cautions individuals and businessmen to
adopt suitable device to prevent unfortunate consequences of risk byobserving safety instructions; installation of automatic sparkler or alarm
systems, etc. Prevention of losses cause lesser payment to the assured by
the insurer and this will encourage for more savings by way of premium.
Reduced rate of premiums stimulate for more business and better protection
to the insured.
Small capital to cover larger risks - Insurance relieves the businessmen
from security investments, by paying small amount of premium against
larger risks and uncertainty.
Contributes towards the development of larger industries - Insurance
provides development opportunity to those larger industries having more
risks in their setting up. Even the financial institutions may be prepared to
give credit to sick industrial units which have insured their assets including
plant and machinery.
The other functions of insurance include the following:
Means of savings and investment - Insurance serves as savings and
investment, insurance is a compulsory way of savings and it restricts the
unnecessary expenses by the insured's For the purpose of availing income-
tax exemptions also, people invest in insurance.
Source of earning foreign exchange - Insurance is an international business.
The country can earn foreign exchange by way of issue of marine insurance
policies and various other ways.
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Risk Free trade - Insurance promotes exports insurance, which makes the
foreign trade risk free with the help of different types of policies under
marine insurance cover.
PRINCILPES OF INSURANCE- INDEMNITY - A contract of insurance contained in a fire, marine,
burglary or any other policy (excepting life assurance and personal accident
and sickness insurance) is a contract of indemnity. This means that the
insured, in case of loss against which the policy has been issued, shall be
paid the actual amount of loss not exceeding the amount of the policy, i.e.
he shall be fully indemnified. The object of every contract of insurance is to
place the insured in the same financial position, as nearly as possible, after
the loss, as if he loss had not taken place at all. It would be against public
policy to allow an insured to make a profit out of his loss or damage.
UTMOST GOOD FAITH Since insurance shifts risk from one party to
another, it is essential that there must be utmost good faith and mutual
confidence between the insured and the insurer. In a contract of insurance
the insured knows more about the subject matter of the contract than the
insurer. Consequently, he is duty bound to disclose accurately all material
facts and nothing should be withheld or concealed. Any fact is material,
which goes to the root of the contract of insurance and has a bearing on the
risk involved. It is only when the insurer knows the whole truth that he is in
a position to judge (a) whether he should accept the risk and (b) what
premium he should charge. If that were so, the insured might be tempted to
bring about the event insured against in order to get money.
INSURABLE INTEREST A contract of insurance effected without
insurable interest is void. It means that the insured must have an actual
pecuniary interest and not a mere anxiety or sentimental interest in the
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subject matter of the insurance. The insured must be so situated with regard
to the thing insured that he would have benefit by its existence and loss
from its destruction. The owner of a ship run a risk of losing his ship, the
charterer of the ship runs a risk of losing his freight and the owner of the
cargo incurs the risk of losing his goods and profit. So, all these persons
have something at stake and all of them have insurable interest. It is theexistence of insurable interest in a contract of insurance, which
distinguishes it from a mere watering agreement.
CAUSA PROXIMA - The rule of causa proxima means that the cause of the
loss must be proximate or immediate and not remote. If the proximate cause
of the loss is a peril insured against, the insured can recover. When a loss
has been brought about by two or more causes, the question arises as to
which is the causa proxima, although the result could not have happened
without the remote cause. But if the loss is brought about by any cause
attributable to the misconduct of the insured, the insurer is not liable.
RISK - In a contract of insurance the insurer undertakes to protect the
insured from a specified loss and the insurer receive a premium for running
the risk of such loss. Thus, risk must attach to a policy.
MITIGATION OF LOSS- In the event of some mishap to the insured
property, the insured must take all necessary steps to mitigate or minimize
the loss, just as any prudent person would do in those circumstances. If he
does not do so, the insurer can avoid the payment of loss attributable to hisnegligence. But it must be remembered that though the insured is bound to
do his best for his insurer, he is, not bound to do so at the risk of his life.
SUBROGATION- The doctrine of subrogation is a corollary to the
principle of indemnity and applies only to fire and marine insurance.
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According to it, when an insured has received full indemnity in respect of
his loss, all rights and remedies which he has against third person will pass
on to the insurer and will be exercised for his benefit until he (the insurer)
recoups the amount he has paid under the policy. It must be clarified here
that the insurer's right of subrogation arises only when he has paid for the
loss for which he is liable under the policy and this right extend only to therights and remedies available to the insured in respect of the thing to which
the contract of insurance relates.
CONTRIBUTION -Where there are two or more insurance on one risk, the
principle of contribution comes into play. The aim of contribution is to
distribute the actual amount of loss among the different insurers who are
liable for the same risk under different policies in respect of the same
subject matter. Any one insurer may pay to the insured the full amount of
the loss covered by the policy and then become entitled to contribution
from his co-insurers in proportion to the amount which each has undertaken
to pay in case of loss of the same subject-matter. In other words, the right of
contribution arises when
(i) there are different policies which relate to the same subject-matter
(ii) the policies cover the same peril which caused the loss, and
(iii) all the policies are in force at the time of the loss, and
(iv) one of the insurers has paid to the insured more than his share of the
loss.
BACKGROUND
India, with a population of 1 Billion offers great potential and opportunity for the
insurance industry. Currently, two state-owned monoliths - Life Insurance
Corporation and General Insurance Corporation (GIC), run the insurance industry.
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The General Insurance Corporation commands the general insurance sector along
with four of its fully owned subsidiaries viz. National Insurance Company, New
India Assurance Company, Oriental Insurance Company and United India
Insurance Company.
Malhotra Committee appointed by the Government of India for conducting a study
on insurance, in its report in 1994 stated that only 22% of the Indian population
are insured. The poor reach of insurance in the country and the sheer numbers
make India a market with tremendous potential. The following facts show how
under-developed the Indian insurance business is due to state monopoly and lack
of aggressive marketing of insurance policies:
Per capita insurance premium in India is a mere US$ 6, one of the lowest in the
world. In South Korea, the corresponding figure is US$1,338, in USA it is $ 2250
and in UK it is $1589. Insurance premium in India accounts for a mere 2 per cent
of GDP compared to the world average of 7.8 per cent and G-7 average of 9.2 per
cent.
Insurance premium as a percentage of savings is barely 5.95 per cent in India
compared to 52.5 per cent in the UK.
Nationalized insurance companies have not been able to target niche markets that
are currently served poorly or not at all. Life insurance products provide a good
example. They compete with investment and savings options like mutual funds. It
is imperative that they should offer comparable returns and flexibility. For
instance, pure protection products like term assurance account for up to 20 per
cent of policies sold in developed countries. In India, the figure is less than one
percent because policies are inflexible. Besides, no Indian life assurance product islinked to non-traditional investment avenues such as stock market indices.
Therefore, returns are lower than those on other savings instruments.
Similar is the case with pensions. The lack of a comprehensive social security
system combined with a willingness to save means that Indian demand for pension
products will be large. However, current penetration is very poor. By March 1998,
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LICs pension premium was only $ 22 Million. Making pension products into
attractive saving instruments would require only simple innovations already
common in other markets. For example, their returns might be tied to index-linked
funds or a specific basket of equities. Buyers could be allowed to switch funds
before the annuities begin and to invest different amounts at different times.
Health insurance is another segment with great potential because existing Indian
products are insufficient. By the end of 1998, GICs Mediclaim scheme covered
only 2.5 per cent of total population. Indian products do not cover disability
arising out of illness or disability for over 100 weeks due to accident. Neither do
they cover a potential loss of earnings through disability.
Retail segment or personal lines insurance, especially in general insurance isanother area unexplored. Currently personal insurance, including health,
householders, shopkeepers, personal accident, travel insurance and professional
indemnity covers constitute only 12 per cent of Indian general insurance premium.
This poor figure is largely due to the lack of adequate distribution channels rather
than a lack of products. By tapping such under-served niches, new entrants can
expand the market substantially. Since service and speed will be valued, a price
premium is also possible. Premium rates are at present set most unscientifically
with very little attempt to fine tune the risk attached to different categories of
businesses. The result is that they penalize the low risk category, which is in
majority.
This can be seen in the failure to differentiate between smokers and non-smokers
in fixing premium for life and personal accident covers or between flood-prone
areas and dry lands for fire and allied perils cover. This results in a great deal ofcross-subsidization. Low premium rates in one area necessitate higher premium
elsewhere. Mortality tables are not revised for ages and no effort is made at all to
re-evaluate the rating of other classes based on recent loss experiences.
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MULTINATIONALS INTEREST
Multinational insurers are indeed keenly interested in emerging insurance because
their home markets are saturated while emerging countries have low insurance
penetrations and high growth rates. International insurers often derive a significant
part of their business from multinational operations. As early as 1994, many of the
UKs largest life and general insurers derived 40 per cent to 60 per cent of their
total premium from outside their home markets. The figure at Commercial Union
was 76 per cent in that year.
While the impact of global operations on their business may be large, typically
foreign insurers take only a small share of an individual countrys market. In
Taiwan for example, foreign companies took only a 3 per cent share even seven
years after opening up. In Korea, their share was 1 per cent after 20 years. In
China, a large and complex market like India, private insurers have not made
much headway.
Yet, new entrants find insurance attractive because even a small share of a large
and growing market can be profitable. The Korean insurance market for example,
was only the 30th largest market in the world by premium volume in 1971. It
moved up to 6th largest in 1996. In any case, in India multinational insurers will
be restricted to a minority shareholding in new companies. The new entrants will
therefore be private Indian companies.
The other reason why these large MNCs are interested in India is the economies of
the insurance market. Insurance companies survive on the principle of spreading
of risk.
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No matter what the size of each player, an insurer cannot afford to operate in a
niche market. Operating in a particular region would expose them to the economic
downtrends in the region and derail their profits.
Insurance companies, being long-term players, also have to avoid sudden dips in
earnings to inspire confidence among investors to invest long-term funds. This can
be achieved by spreading their operations over a wide geographical area.
Moreover, for them, big is not just beautiful, but essential for survival. Which
brings us to the avenues for growth.
The Present Situation of Insurance in India
Preface
India continued to be one of the four countries to remain insulated from direct
foreign involvement in its insurance. The present government upon assumption of
office in December 1999 moved the bill and won for it Parliaments approval. The
insurance law has changed.
Indian insurance is on the threshold of deep and fundamental changes. The big
challenge for both companies and regulator is to ensure that they replicate the
benefits of the past while eliminating its ills.
General Insurance
Insurance, where required, is directly purchased by a client from any of the four
monopoly state insurers. Products are standard and rating uniform with exceptions.
Non-admitted insurance is permitted and is subject to market regulation and astrict declinature process. In view of the procedure involved non-admitted
insurance is hardly purchased in India. Insurers are now willing to consider non-
standard covers in liability and guarantee class of insurance.
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Reform Process
Micro economic aspects of reforms are more important for the macroeconomic
consequences .The Eighth Third World Insurance Congress (TWIC) at New Delhi
(Feb 1992) aptly concluded that sweeping reforms have succeeded only with the
establishment of a strong and well administered prudential regulatory system.
Market forces operate better when these conditions are met rather than expecting
market forces to create such conditions and follow them voluntarily. Private
companies would be interested in generating profit and there is nothing wrong in it
provided that economic benefits should not accrue with social costs due to weak
institutional structure.
Future Direction
Mr. H. Ansari, Member, IRDA, in a paper presented to the Australian Reinsurance
Rendezvous in October `99 delineated key areas for IRDA for developing the
emerging Indian insurance market. These areas are:
The economic agenda has been "depoliticised" to ensure that reforms are
irreversible.
In this New World of continuous relationship marketing, the Regulatorshall strive to establish deep and direct linkages between the insurance
companies and the policyholders in order to build an unassailable market
position.
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Achieving rapid, sustainable growth requires that companies manage three
horizons simultaneously: growing current businesses, expanding into
related businesses and seeding options for future growth.
Delivering high-quality products, given the state of Indias infrastructure, its
fragmented retail trade and extreme weather conditions, is often viewed as
a challenge. To ensure growth of the insurance business, the Regulator shall
help develop innovative business systems.
Emerging Potential
Challenges in Distribution
KPMG have prepared a report on `Insurance Trends and Issues`, which examines
the future of distribution for both life, and general insurance in India once the
sector is opened. It is based on KPMG research in India and abroad and on insights
gained through working with clients in different markets. There are four
significant issues, which the report examines.
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The threat of new players taking over the market has been overplayed :
Nationalized players will continue to hold strong market share positions,
but there will be enough business for new entrants to be profitable.
New companies often overestimate the need for insurance expertise. They
assume that a joint venture is the most appropriate type of alliance, when in
fact many forms are possible. Both new and existing players must explore new distribution and marketing
channels.
Intermediaries
The IRDA is currently working on norms concerning brokers. In most developed
markets, insurance brokers are regulated in the following areas:
Registration.
Experience, training and qualification, and other restrictions on entry into
the profession.
Solvency requirements.
Professional indemnity, or a minimum level of errors. There is also a
central fund to protect clients against broker malpractice.
In India, the practice of brokers acting, as intermediaries do not exist except in the
case of reinsurance. Estimates by Ernst & Young show that intermediaries when
introduced as a part of the changes will have a market of between Rs 100 crore
and Rs 150 crore to be exploited. [1 crore = 10 million]
Expertise and Technology
With state monopoly the insurance industry is not subject to disruptive
competitive moves or developments. The strategies of the state insurers are driven
more by government policy and criteria, such as effectiveness and equity in
implementing such policy, rather than by efficiency or impact on the bottomland
per se. Naturally, the education and training in the insurance sector have been
influenced by the strategic posture of these public sector insurance companies.
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The increasing importance of knowledge in the Indian insurance industry is likely
to make employability a critical factor for retention of qualified managerial
manpower in the future. To create such a milieu, insurance companies need to
have a critical mass of management graduates and professionals (or equivalent)
and a top management that encourages a knowledge-based culture.
Reinsurance
The current thrust is to increase retentions. This is being significantly achieved
with reduction in ceded reinsurance premium overseas from US $ 250 million to
US $ 150 million.
With reinsurers like Munich Re and Swiss Re to be licensed a sea - change is
anticipated in reinsurance practice. Besides other reinsurers like Zurich, Allianz
and AIG are present. A view maybe formed for the possibility of transaction
similar to the inter-bank call money market in respect of risks written by non-life
insurers.
Brokers can introduce changes in practice which could include both coinsurance
and reinsurance placements.
There is likelihood of accelerated introduction of the new alternative risk
techniques, which converge risk covers and replace at once insurance and its
reinsurance. The market is set to witness these unconventional changes at a pace
permitted by change in local tax laws and / or in trade-off to premium costs.
Issues in Ownership
This is an important input in progressing the development of the emerging
insurance market in India. The law as approved requires the Indian promoter to
invest wholly in an insurance venture and not less than 74 % if in joint venture
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with a foreign insurer. The Indian promoter is permitted to divest only after ten
years to the Indian public through a public offering of shares. At which point in
time the equity structure would provide for equal participation between the Indian
and the foreign partner with a share of 26 % each in the share capital. The laws
intention is clear. The financial interest substantially vests with the Indian
promoter permitting the foreign co-promoter a definite say in direction andmanagement. The intended partnership is of Indian funds and foreign expertise
with a long-term opportunity for the foreign promoter to gain equal say in finance
of the joint venture Company. Changes are definitely anticipated in the next 5 to 7
years in respect of ownership law.
Macro-Economic Perspective and Trends
Dr.Harold Skipper in a paper for the International Insurance Federation,
Washington, lists seven parameters to assess the contribution to the economy.
Policy makers in India should consider related issues in a larger framework of
economy and law by including insurance as a serious input. Such an approach
would lend weight to the IRDA as a regulator and give thrust to the emerging
market. This is possible as the government is politically stable and is forward
looking in its actions.
Role of Insurance in Indias Future
Insurance would assist businesses to operate with less volatility and risk of
failure and provide for greater financial and societal stability from the
growth pangs of an estimated growth rate over 8 % in GDP
Government has arranged for disaster management and for funds. NGOs
and public institutions assist with fund raising and relief assistance. Besides
government provides for social security programs. There is considerable
impact upon government in these respects. Insurance substantially steps in
to provide these services. The effect would be to reduce the strain on the tax
payer and assist in efficient allocation of societal resources
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Facilitates trade, business and commerce by flexible adaptation to changing
risk needs particularly of the burgeoning Services sector.
Like any other financial institution insurance companies generate savings
from the insurance sector within the economy and make available the same
in well directed areas of the economy deserving investments ; a sector with
potential for business as is the case with Indian insurance providesincentive to develop it all the more faster
It enables risk to be managed more efficiently through risk pricing and risk
transfers and this is an area which provides unlimited opportunities in the
Indian context for consulting, broking and education in the post-
privatization phase with newer employment opportunities
The insurance industry of its own accord is interested in loss minimization.
Its expertise in understanding losses assists it to share the experience across
the economy thus enabling better loss control and preservation of national
assets
In its risk pricing and investment decisions the insurance industry sets the
tone for investment by others in the economy. Informed assessment by the
insurance companies thus signals allocation of resources by others
contributing to efficiency in allocation. In India visibility of LIC and GIC
have been dwarfed by governments actions and other high profile
institutions like ICICI, IDBI and UTI. Of late AIG is visible in the media
and its investment announcements are being followed keenly by
institutional investors in India. ING Savings Trust and Zurich are active in
asset management and are being keenly followed by retail investors.
Dr.Skipper`s seven parameters goes a long way in asserting an active future for
insurance in the Indian economy. India has reasonably well developed accounting,legal and supervisory institutions. These support the requirements of the insurance
market very well. Other support services are expected to readily adapt to the new
conditions of the emerging market.
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PLAYERS IN LIFE INSURANCE INDSUTRY IN INDIA
S.No. Private Company
1 ICICI Prudential Life Company Ltd.
2 Bajaj Allianz Life Insurance Company Ltd.
3 HDFC Standard Life Insurance Company Ltd.
4 Kotak Mahindra Old Mutual Life Insurance Ltd.
5 Birla Sun Life Insurance Company Ltd.
6 Tata AIG Life Insurance Company Ltd.
7 SBI Life Insurance Company Limited.
8 ING Vysya Life Insurance Company Private Ltd.
9 Max New York Life Insurance Co. Ltd.
10 MetLife India Insurance Company Pvt. Ltd.
11 Aviva Life Insurance Co. India Pvt. Ltd.
12 Sahara India Insurance Company Ltd.
13 Shriram Life Insurance Company Ltd.
14 Reliance Life Insurance Company Ltd.
15 Bharti AXA Life Insurance Company Ltd.
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Public Company
16 LIC
COMPANY PROFILE
Bajaj Allainz Insurance Company-
Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading
conglomerates, Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in
the world and Allianz AG, one of the world's largest insurance companies which
are dealing in both the life insurance and general insurance. BAGIC came in to
existence on 19th sep. 2000 and received the insurance regulatory and development
authority (IRDA) license on may 2nd, 2001 to conduct General Insurance business
in India. Bajaj auto holds a majority stake of 74% and Allianz AG holds the
balance 26 %. It is an attempt to combine the strong brand-equity, extensive
distribution network and understanding of Indian market of Bajaj Auto with the
international insurance expertise, product range, technology and global service
standards of Allianz. Bajaj Allianz General Insurance Company offers technical
excellence in all areas of General and Health Insurance as well as Risk
Management. This partnership successfully combines Bajaj Auto'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 general insurance business includinghealth With management control by Allianz AG.
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Bajaj Allianz deals in both the life and general insurance
Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited is a joint venture between
Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of
expertise, stability and strength
Bajaj Allianz General Insurance received the Insurance Regulatory and
Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001
to conduct General Insurance business (including Health Insurance business) in
India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj
Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany. In its
first year of operations, the company has acquired the No. 1 status among the
private non-life insurers. As on 31st March 2003, Bajaj Allianz General Insurance
maintained its leadership position by garnering a premium income of Rs.300
Crores. Bajaj Allianz also became one of the few companies to make a profit in its
first full year of operations. Bajaj Allianz made a profit
After tax of Rs.9.6 crores. Bajaj Allianz today has a network of 42 offices 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 atPune.
In the first half of the current financial year, 2004-05, Bajaj Allianz garnered a
premium income of Rs. 405 crores, achieving a growth of 84% and registered a
52% growth in Net profits of Rs.20 Crores over the last year for the same period.
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ICICI Lombard
History
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI Bank Limited and the US-based $ 26 billion Fairfax Financial
Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax
Financial Holdings is a diversified financial corporate engaged in general
insurance, reinsurance, insurance claims management and investment
management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is
one of Canada's oldest property and casualty insurers. ICICI Lombard General
Insurance Company received regulatory approvals to commence general insurance
business in August 2001.
ICICI Lombard General Insurance has become the first general insurance
company in India to bag the ISO 9001:2000 certification from DET Norske
Veritas (DNV) to establish a quality management system for settlement of motor
claims. The certificate has been issued for the companys exemplary standards for
fast and cost-effective settlement of motor claims.
ISO certification for settlement of motor claims implies that customers will now
be able to enjoy world-class service standards in terms of quality safety and
reliability. Moreover, it is an endorsement of our high quality service standards for
Motor Insurance business and is a step forward for achieving business excellence.
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The scope of certification involves the complete cycle of claim settlement process,
which includes claim intimation, claim survey, claim assessment, claim scrutiny
and payment.
Why ICICI Lombard?
India 's number one private general insurance companyFirst general insurance company in India to be ISO 9001:2000 certified
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128-bit encryption in case of online data
exchange
First company to provide digitally signed documents through an online interface.
Achieved financial breakeven in first full year of operations
Achieved underwriting breakeven in second year of operations
ICICI Lombard is a FIVE S - Level 1 certified company
About Five SIntroduction-
ICICI Lombard has implemented Five S - a management initiative to keep the
workplace in order. The move is in line with its parent's quality control drive.
ICICI bank has also implemented Five S successfully. In addition, ICICI Lombard
is the first general insurance company to be ISO Certified.
Five S originated in Japan and is based on Kaizen philosophy, which stands for
a change for the better. It is a work environment enhancing measure that believes
in small changes leading to large improvements. It basically is a visually oriented
exercise, which facilitates the Total Quality Management (TQM) processes and
helps in improving the physical environment.Five S methodology is used to
establish and maintain a productive and quality environment in an organization.
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The five Ss are Seiri (sorting out), Seiton (Systematic Arrangement), Seiso
(Spic-n-Span), Seiketsu (Standardise) and Shitsuke (Self-Discipline). Five S is
based on the underlying principle of creating ownership for every object in the
Organization, so that nothing is neglected. It helps in instilling discipline in
employees, which in turn propels them to channelise their energy, time and
resources in a fruitful manner. It is an employee-centric initiative and can beachieved only through sustain employee involvement. It has to be followed in
absolute earnestness by the line employees of an organization.
Five S?
It a technique to transform the workplace
To make it more productive and efficient
To makes it more accessible
Improves the overall look and feel of the workplace
Each one of us participates in the process
Product Range
Industrial All Risk
All Risk Insurance
Consequential Loss (Fire) Insurance
Electronic Equipment Insurance
Fidelity Insurance
Fire and Special Perils
Marine export import
Machinery
Boiler Insurance
Project Solutions
Contractors All Risk
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Contractors Plant & Machinery
Erection All Risk
Performance Guarantee
Liability Solutions
Directors & Officers Liability
Event Insurance
Product Liability
Public Liability
Workmens Compensation
Professional Indemnity
Rural Solutions
Weather Insurance
Janata Personal Accident
Tractor
Farmers Package
Personal Solutions
Health Insurance
Health
Personal Accident
Group Personal Accident
Group Health
Travel Insurance
Domestic Travel
Individual Overseas Travel
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Senior Citizen Overseas Travel
Pravasi Bhartiya Bima Yojana
Motor Insurance
Two Wheeler
Four Wheeler
NATIONAL INSURANCE
National Insurance Company Limited was incorporated in 1906 with its
Registered office in Kolkata. Consequent to passing of the General Insurance
Business Nationalisation Act in 1972, 21 Foreign and 11 Indian Companies wereamalgamated with it and National became a subsidiary of General Insurance
Corporation of India (GIC) which is fully owned by the Government of India.
After the notification of the General Insurance Business (Nationalisation)
Amendment Act, on 7th August 2002,Nationalhas become a Government of India
undertaking.
It is the oldest existing Insurance Company in India. It has been the fastest
growing Public Sector General Insurance Company in the Country for the third
successive year.
The Company has earned international recognition as one of the top 5 General
Insurance Companies in the Asia Pacific, at the Asia Insurance Industry Awards
held by Asia Insurance Review, at Singapore in October 2003.
National Insurance Company Ltd (NIC) is one of the leading public sector
insurance companies of India, carrying out non life insurance business.
Headquartered in Kolkata, NIC's network of about 1000 offices, manned by more
than 17,000 skilled personnel, is spread over the length and breadth of the country
covering remote rural areas, townships and metropolitan cities. NIC's foreign
operations are carried out from its branch offices in Nepal and Hong Kong.
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Befittingly, the product ranges, of more than 200 policies offered by NIC cater to
the diverse insurance requirements of its 10 million policyholders. Innovative and
customized policies ensure that even specialized insurance requirements are fully
taken care of.
National transacts general insurance business of Fire, Marine and Miscellaneous
insurance. The Company offers protection against a wide range of risks to its
customers. The Company is privileged to cater its services to almost every sector
or industry in the Indian Economy viz.
Banking, Telecom, Aviation, Shipping, Information Technology, Power, Oil &
Energy, Agronomy, Plantations, Foreign Trade, Healthcare, Tea, Automobile,
Education, Environment, Space Research etc.
National Insurance is the pioneer in implementing the concept of bancassurance in
India. National Insurance policies are available from some of the well known
banks like Indian Overseas, UCO Bank, State Bank of Bikaner and Jaipur, Bank of
India, State Bank of Mysore, Bank Of Baroda and City Union Bank.
There are several benefits of bancassurance to the customers :The Customer get
risk coverage at bank itself which saves time and adds to his convenience. The
ease of renewals adds to customer comfort. The customer can obtain a basket of
products under one roof.
While NIC has a significant market share in the non life insurance business all
over the country, NIC has a large market presence in Northern and Eastern India
making it the market leader in these two zones.
The company has also improved its market position from 3rd
. to 2nd
..
in 2003-04 in
the General Insurance Industry, a significant milestone in the history of the
Company in the context of enhanced competition in the Insurance Industry with
private players already in the market. This has mainly been possible due to the
Companys aggressive marketing strategies including tie-ups with major corporate
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such as Maruti, Hero Honda and Bancassurance tie-ups with major Banks in
Country.
Nationalhas invested heavily in IT initiatives to computerize its business process.
Interconnectivity of all offices is another major initiative taken up by the
Company. A comprehensive model of interconnectivity has been worked out and
the Wide Area Networking of all offices is underway which is expected to be
complete very soon. This would have tremendous bearing on the communications
system of the Company and is a big leap forward towards a paperless office.
Customer service would definitely get a big boost due to the IT implementation.
The paid-up share capital ofNational is Rs.100 crores. The Net Worth of the
Company stands at Rs.1054.37 crores, with more than adequate solvency margin.Starting off with a premium base of 500 million rupees (50 crores rupees) in 1974,
NIC's gross direct premium income has steadily grown to 33910 million rupees
(3391 crores rupees) approximately in the financial year 2003-2004.
The steady growth in premium income has been commensurately matched by
profits over the years. As of March 2004, NIC's General Reserve stood at 10137.6
million rupees (1013.76 crores rupees) with an asset value of 89173.4 million
rupees (8917.34 crores rupees) signaling strong financial fundamentals. No
wonder that NIC has been rated iAAA by ICRA.
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ACHIEVEMENTS
WE ARE :
The fastest growing Non-life Insurance Company in India
The second largest Non-life Insurance Company in India
Internationally recognized as one of the top 5 General Insurance Companies
in the Asia Pacific.
PRODUCT DEVELOPMENT
More than 200 products available to cater to the needs of various sectors of
the economy.
Continuous product development to meet emerging needs of society and
industry.
R&D cell set up at Head Office for distinctive product innovation relevant
to indigenous conditions and rural masses.
New covers launched : Home Loan Suraksha Bima , Sampoorna Suraksha
Bima, Sampoorna Aragya, Bhagyashree Policy, Amartya Siksha Policy,
Students Safety Policy, Office Package Policy, Yatra Suraksha Policy,
Critical Illness Policy, NRI Accident Policy, and Senior Citizens Policy.
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ORIENTAL INSURANCEThe Oriental Insurance Company Ltd was incorporated at Bombay on 12th
September 1947. The Company was a wholly owned subsidiary of the Oriental
Government Security Life Assurance Company Ltd and was formed to carry out
General Insurance business. The Company was a subsidiary of Life Insurance
Corporation of India from 1956 to 1973 ( till the General Insurance Business was
nationalized in the country). In 2003 all shares of our company held by the
General Insurance Corporation of India has been transferred to Central
Government. The Company is a pioneer in laying down systems for smooth and
orderly conduct of the business. The strength of the company lies in its highly
trained and motivated work force that covers various disciplines and has vast
expertise. Oriental specializes in devising special covers for large projects like
power plants, petrochemical, steel and chemical plants. The company has
developed various types of insurance covers to cater to the needs of both the urban
and rural population of India. The Company has a highly technically qualified and
competent team of professionals to render the best customer service.
Oriental Insurance made a modest beginning with a first year premium of
Rs.99,946 in 1950. The goal of the Company was Service to clients and
achievement thereof was helped by the strong traditions built up overtime.
ORIENTAL with its head Office at New Delhi has 21 Regional Offices and morethan 950 operating Offices in various cities of the country (as at 01.04.2005). The
Company has overseas operations in Nepal, Kuwait and Dubai. The Company has
a total strength of around 16,000 employees. From less than a lakh at inception,
the Gross Premium went up to Rs.58 crores in 1973 and during 2004-2005 the
figure stood at a mammoth Rs. 3091 crores.
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Management- Oriental Insurance is a professionally managed independent Board-
run Company. Illustrious personalities like Shri T.A.Pai ( who later became
Cabinet Minister in the Union Government ), Shri K. R. Puri, who rose to be the
Governor of RBI and Shri B.D.Pande (who later became the Governor of West
Bengal) were among our pastChairmen. At present Shri M.Ramadoss is Chairman-
Cum-Managing Director of our Company. The Board of Directors of ourCompany include eminent personalities in various fields.
United India Insurance
UI is a leading General Insurance Company.More than three decades of
experience in Non-life Insurance business.Formed by the merger of 22 companies,
consequent to nationalisation of General Insurance. Head Quarters at Chennai
Corporate Mission
To provide Insurance protection to all.
To ensure customer satisfaction
To function on sound business principles
To help minimise national waste and to help develop the Indian economy
ORGANIZATION STRUCTURE
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Head Office Chennai
RegionalOffice
24
DivisionalOffice
364
Branch Office 705
Micro Office 247
Employee Strength
ClassI
ClassII
ClassIII
Class IV &Others
4280 2272 9086 2675
IFFCO-TOKIO
We promise the life you deserve
IFFCO-TOKIO General Insurance (ITGI) is Indias trusted insurance company. It
simplifies customers life by providing them tailor made products and quality
services, thus helping them take informed investment decisions.
It is a joint venture between The Indian Farmers Fertiliser Co-operative (IFFCO)
and its associates and Tokio Marine and Nichido Fire Group, the largest listed
insurance group in Japan.
ITGI was incorporated on December 4, 2000 and has its head office in Gurgaon,
Haryana.
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We are among India's top three private-sector general insurance companies with
69 offices and a country-wide network of 480 exclusive point of presence.
In our constant effort to provide our customers with "the life they deserve", we
offer a wide range of over 40 uniquely customized policies covering a wide range
of customers, from farmers to some of India's largest automobile manufacturers.
Product---
IFFCO-TOKIO provides a wide variety of policies that are customized to your
needs.
For your convenience, we have grouped them under three broad categories -
Retail, Commercial, and Speciality. To access information on any of the policies,
simply click on the link you want.
Standard Fire & SpecialPerils
Consequential Loss
Contractors All Risk
Contractors Plnt & Machn
Boiler & Pressure Plant
Motor PrivateCar
Motor
Cycle/Scooter
Home & FamilyProtector
Trade Protector
Credit Insurance
Multi Modaltransport (MTO)
Marine Hull &Machinery
Jeweller's Block
Barish Bima Yojna
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http://itgi.co.in/standard_fire_special_peril.htmlhttp://itgi.co.in/standard_fire_special_peril.htmlhttp://itgi.co.in/consequential_loss.htmlhttp://itgi.co.in/contractors_all_risk.htmlhttp://itgi.co.in/contractors_plnt_machn.htmlhttp://itgi.co.in/boiler_pressure_plant.htmlhttp://itgi.co.in/motor_private_car.htmlhttp://itgi.co.in/motor_private_car.htmlhttp://itgi.co.in/motor_cycle_scooter.htmlhttp://itgi.co.in/motor_cycle_scooter.htmlhttp://itgi.co.in/home_family_protector.htmlhttp://itgi.co.in/home_family_protector.htmlhttp://itgi.co.in/trade_protector_policy.htmlhttp://itgi.co.in/credit_insurance.htmlhttp://itgi.co.in/multi_modal_transport.htmlhttp://itgi.co.in/multi_modal_transport.htmlhttp://itgi.co.in/marine_hull_machinery.htmlhttp://itgi.co.in/marine_hull_machinery.htmlhttp://itgi.co.in/jeweller_block.htmlhttp://itgi.co.in/barish_bima_yojana.htmlhttp://itgi.co.in/standard_fire_special_peril.htmlhttp://itgi.co.in/standard_fire_special_peril.htmlhttp://itgi.co.in/consequential_loss.htmlhttp://itgi.co.in/contractors_all_risk.htmlhttp://itgi.co.in/contractors_plnt_machn.htmlhttp://itgi.co.in/boiler_pressure_plant.htmlhttp://itgi.co.in/motor_private_car.htmlhttp://itgi.co.in/motor_private_car.htmlhttp://itgi.co.in/motor_cycle_scooter.htmlhttp://itgi.co.in/motor_cycle_scooter.htmlhttp://itgi.co.in/home_family_protector.htmlhttp://itgi.co.in/home_family_protector.htmlhttp://itgi.co.in/trade_protector_policy.htmlhttp://itgi.co.in/credit_insurance.htmlhttp://itgi.co.in/multi_modal_transport.htmlhttp://itgi.co.in/multi_modal_transport.htmlhttp://itgi.co.in/marine_hull_machinery.htmlhttp://itgi.co.in/marine_hull_machinery.htmlhttp://itgi.co.in/jeweller_block.htmlhttp://itgi.co.in/barish_bima_yojana.html7/29/2019 Lokesh Thakur
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Erection All Risks
Industrial All Risks
Machinery Breakdown
Machinery Loss of Profit
Product Liability
Public Lia Industrial
Public Lia Non-Industrial
Marine Cargo
Electronic Equipment
Bankers Blanket
Burglary Insurance
Fidelity Guarantee
Money Insurance
Workmen's Compensation
IndustryProtector
OfficeProfessionalEstablishment
Home Suvidha
Trade Suvidha
IndividualMedishield
IndividualPersonalAccident
Group PersonalAccident
Critical Illness
Policy
Surgery Protector
Travel Protector
All RiskInsurance
(Weather Insurance)
Sagar Bandhu BimaPolicy
A Complete Protector
Our Specified Trip Travel Protector Policy is a comprehensive package cover for
any overseas trip to provide the traveller with protection against a wide range of
travel related risks and perils in various situations and gives effective assistance in
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case of any unfortunate occurrence through our Claim Settling Agents, who are
accessible at every foreign destination the world over.
Benefits Available
This Policy has 7 Sections, which provide comprehensive protection in case of
exigencies like health related problems, loss of passport or belongings, accidentsetc.
These sections are-
Health Cover (Section 1)-Insurance cover is provided for immediate medical
assistance required as a consequence of an Insured Person falling ill or sustaining
an accident whilstabroad during the period of Insurance. This includes Medical
Expenses, Dental Treatment, Transportation Expenses, Local Burial Expenses and
Hospital Daily Allowances up to the limits specified under the Policy.
Total Loss of Checked Baggage including Delay of Checked Loss of Passport
(Section 4)Baggage (Section 2)-Insurance cover is provided for total loss of
checked baggage as well as for delay for checked baggage belonging to the
Insured Person caused by a carrier (i.e. airline, coach operator, ferry company etc.)
up to the limits specified under policy
Hijack Distress Allowance(Section-3)- Insurance cover is provided in the event
of the hijack of the air or sea common carrier in which the Insured Person is
traveling whilst on the trip abroad during the Period of Insurance. An allowance
will be paid for eachday of the hijack up to the limits specified under the Policy.
Loss of Passport (Section 4)-Insurance cover is provided in the event of the loss
of the passport belonging to the Insured Person where in expenses incurred in
connection with obtaining a duplicate or fresh passport is paid up to the limits
specified under the policy.
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Financial Emergency Assistance (Section 5)-Insurance cover is provided in the
event of the Insured Person getting into a financial emergency due to theft,
pilferage, robbery or dacoity of his/her travel funds. A fixed sum is paid as
emergency assistance up to the limits specified under the Policy.
Personal Liability (Section 6)-Insurance cover is provided in the event of theInsured Person becoming legally liable to any third party for any incident caused
by him/her which results in death, injury or damage to property of such third party,
providedthat the incident takes place on the trip abroad and during the Period of
Insurance. Compensation for such liabilities is paid up to the limits specified under
policy.
Personal Accident (Section 7)-Insurance cover is provided if the Insured Person
meets with an accident on a trip abroad that leads to his/her death or disablement.
The benefit amount is paid to the Insured Person or his beneficiary (in the event of
death of the Insured) up to the limits specified under the Policy.
Plans Available under the Policy There are a number of Plans available under the
Specified Trip Policy depending upon the Sum Insured for Medical Expenses andthe countries to be visited. These are as under:
Bronze: This Plan provides worldwide cover excluding U.S.A. and Canada,
with Medical Expenses covered upto U.S. $ 50,000. It also provides cover
for Loss/Delay of Baggage, Loss of Passport and Personal Accident.
Silver: This Plan provides worldwide cover excluding U.S.A. and Canada,
with Medical Expenses covered upto U.S. $ 250,000. It also provides cover
for Loss/Delay of Baggage, Loss of Passport, Personal Accident, Personal
Liability and Hospital Daily Allowance.
Gold 100: This provides worldwide cover including U.S.A. and Canada,
with Medical Expenses covered upto U.S. $ 100,000. It also provides cover
for Loss/Delay of Baggage, Loss of Passport, Personal Accident and
Personal Liability.38
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Gold 250: This Plan provides worldwide cover Including U.S.A. and
Canada, with Medical Expenses covered upto U.S. $ 250,000. It also
provides cover for Loss/Delay of Baggage, Loss of Passport, Personal
Accident, Personal Liability and Hospital Daily Allowance.
Gold 500: This Plan provides worldwide cover including U.S.A. and
Canada, with Medical Expenses covered upto U.S. $ 500,000. It alsoprovides cover for Loss/Delay of Baggage, Loss of Passport, Personal
Accident, Personal Liability, Hospital Daily Allowance, Financial
Emergency and Hijack Distress Allowance.
Facilities Available
Dedicated Round-the-Clock Call Centre: Our Policy provides protection to you 24
hours a day and 7 days a week during your trip abroad. Apart from the coverage
benefits available under the Policy as detailed above, we also have a round-the-
clock Call Centre working in booth Hindi and English to serve you on the
following matters:
o Immediate help in case of a linguistic problem and referral to
interpreters
o Contact with family doctor, personal physician and information
transfer between treating doctor, personal doctor and medical
Service Provider referral
o Embassy referral service for lost visa and passport
o General advice in case of lost baggage
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o Emergency message transmission to relatives/friends
o Information on exchange rates
o Preliminary medical advice e.g. vaccination
o Arrangement for hospital admission, evacuation, repatriation and
treatment path management
o
On-the-Spot Cashless Claims Settlement
We also provide direct settlement for hospitalisation expenses, transportation
expenses for both Insured Person and accompanying person, expenses for
transportation of mortal remains and local burial and last but not the least,
provision of immediate financial assistance in case of an emergency situation as
mentioned in the policy.
Special Features
Evacuation expenses and repatriation expenses including medical careenroute
Additional cost for return journey of person accompanying the Insured
Person in a medical emergency
Coverage available for a maximum duration of 180 days and automatic
extension of coverage for Medical Expenses beyond the Period of
Insurance upto specified limits.
Personal Accident cover is on a 24-hours basis and covers various types of
partial disabilities, apart from death and permanent total disablement.
No Medical Reports need to be submitted for Insured Persons up to the age
of 60 years
Cover is available upto 70 years of age with medical reports.
On-the-spot issuance of Policy document
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INDIAN PROMOTERS ::
Indian Farmers Fertilizer Co-operative Limited (IFFCO) owns 74% of ITGI
together with its associate companies.
It is well known as a pioneer in large-scale fertilizer manufacturing and is one of
India's leading fertilizer producersIFFCO has a membership of about 35,000 co-operatives at the state, district and
primary level spread in 22 states and 2 Union Territories. IFFCO's plants are at
Kalol, Kandla, Phulpur and Aonla and they have been consistently operating at a
capacity utilization of more than 100% for the several years.
FOREIGN PROMOTERS :: TOKIO Marine Asia Pte. Ltd holds 26%
shareholding in ITGI. TOKIO Marine Asia is a subsidiary company of Millea
Holding Inc Japan; a holding company for Tokio Marine & Nichido Fire Insurance
Company.
CHAPTER-2
OBJECTIVES
OBJECTIVES OF THE STUDY
1. To know about the market share of different insurance companies
2. To know about the consumer preference.
3. To know about the products and the services offered by the general insurance
companies.
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4. To know about the consumer perception towards the public sector general
insurance companies.
5. To study the factors which the customer considers while buying the
product.
CHAPTER-3
METHODOLOGY
RESEARCH METHODOLOGY APPLIED
DATA RESOURSES
I had the choice of gathering secondary data, primary data, or both. Secondary
data are data that were collected for another purpose & already exist somewhere.
Primary are freshly gathered for a specific purpose or for a specific research
project. I started my investigation by examining secondary data to see whether the
problem can be partly or wholly solved without collecting costly primary data.
Secondary data provide are starting point for research & offer the advantage of
low cost & ready availability.
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When the needed data do not exist or dated, inaccurate, incomplete, or unreliable,
the researcher will have to collect primary data. Most marketing research projects
involve some primary data collection. The normal procedure is to interview some
people individually or in groups, to get a sense of how people feel about the topic I
in question, and then develop a formal research instrument, debug it, & carry it
into the field.I used a combination of primary and secondary data for this research project.
RESEARCH APPROACH USED
SURVEY RESEARCH
I have specifically used the survey research method for my project.
Surveys are best suited for descriptive research. Companies undertake surveys to
learn about peoples knowledge, beliefs, preferences and satisfaction and to
measure these magnitudes in the general population. A company might prepare its
own survey instrument to gather the information it needs, or it might add question
to an omnibus survey that carries the questions of several companies at a much
lower cost. It can also put the questions to an ongoing consumer panel run by itself
or another company or it may do an intercept study by approaching people in a
public place who might volunteer to answer questions. I planned to use this
research methodology to a large extent for this marketing research project. This is
mainly because this was a descriptive research to some extent and surveys are best
suited for a descriptive research.
RESEARCH INSTRUMENT USED IN THE PROJECTQUESTIONNAIRES
A questionnaire consists of a set of questions presented to respondents. Because of
its flexibility, the questionnaire is by far the most common instrument used to
collect primary data. Questionnaires need to be carefully developed, tested &
debugged before they are administered on a large scale
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.In preparing a questionnaire, the researcher carefully chooses the questions and their
form, wording & sequence. The form of the questions asked can influence the response.
Marketing researchers distinguish between closed-end and open- end questions. Closed
end questions specify all the possible answers and provide answers that are easier to
interpret and tabulate. Open-end questions allow respondents to answer in their own
words and often reveal more about how people think.
I planned to use a combination of open & closed ended questions in a Structure
questionnaire as a research tool for both my marketing research surveys (corporate
travel insurance & student travel insurance).
SAMPLING PLAN
After deciding on the research approach & instruments, the marketing researcher
must design a sampling plan. This calls for 3 decisions:
1.SAMPLING UNIT-
Who is to be served?
The marking researcher must define the target population that will be sampled
2.SAMPLE SIZE-
How many people should be surveyed?
Large sample give more reliable results then small samples. However, it is not
necessary to sample the entire target population or even a substantial portion to
achieve reliable results. Samples of less the one percent of a population can often
provide good reliability, with a credible sampling procedure.
The sample size was chosen to be 100
3.SAMPLING PROCEDURE
How should the respondence be chosen?
The respondents were the Students of our institute, general public and the
offficers of insurance offices.
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CONTACT METHOD
Once the sampling plan has been determined, the marketing researcher must
decide how the subject should be contacted: mail, telephone, personal, or online
interview.
The mail questioner is the best way reach people who would not give personal
interviews or whose responses might be biased or distorted by the interviewers.Mail questioners requires simple and clearly and worded questions.unfortunetly,
the responses rate is usually low or slow. Telephonic interviewing is the best
method for gathering information quickly; the interviewer is also able to clarify
questions if respondents do not understand them. The response rate is typically
higher then in the case of mailed questionnaires. The main drawback is that the
interviews have to be short and not too personal. Telephone interviewing is getting
more difficult because of voice mail and people becoming suspicious of
telemarketing.
The contact method used by me for this project was the personal interviewing .the
interviewer could ask more question and record additional observation about the
respondent, such as dress and body language. The response rate is the highest and
quality of data the best.
LIMITATIONS
HARD ENOUGH TO FETCH INFORMATION
It was not very easy task, the respondents were not always Open and
forthcoming with theyre views.
LIMITED SCOPE
The scope of the study is limited because, I was not able to
Take a bigger sample size for some more accurate results.
RESULTS MAY BE INACCURATE
This study is based on the assumption that respondents are giving true and
factual information, although at times this may not be the case.
CASUAL APPROACH OF THE RESPONDENTS
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Generally the respondents take the questionnaires casually, their answers
are not based on facts, hence the goal of the researcher is defeated.
EXISTENCE OF BIASES
Though every care has been taken to eliminate any biases, but considering
the human factor the possibility of small bias come up cannot be ruled out
altogether. TIME AND MONEY CONSTRAINT
Other major constraint was time, because of limited time I was not able to
take information from the larger respondent base, also a considerable time
was wasted while traveling.
COMPANY ANALYSIS
Market Share Analysis-
Bajaj
Allianz
ICICI
Lombard
National Oriental New
India
IFFCO-
TOKIO
21% 15% 21% 18% 19%4.40%
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Bajaj Allianz
ICICI Lombard
National
Oriental
New India
IFFCO-TOKIO
Interpretation: - In the above analysis we can find out that there is not muchdifference between the market share of the public and the private general
insurance companies. But the leader in the market share is Bajaj Allianz general
insurance company followed by national insurance company and lowest for the
IFFCO-TOKIO general insurance company.
Bussiness done by the companies (In Billions)-
Bajaj
Allianz
ICICI
Lombard
National Oriental United
India
IFFCO-
TOKIO
2.89 2.16 29.1 27.8 25.3 9
Bajaj Allianz
ICICI Lombard
National
Oriental
United India
IFFCO-TOKIO
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Interpretation :- The above data shows that ther maximum bussiness is done by
public sector companies and in those maximum bussiness is done by National
insurance company , followed by Oriental insurance company and the lowest
being done by ICICI Lombard general insurance company.
Number of Employees-Bajaj
Allianz
ICICI
Lombard
National Oriental United
India
IFFCO-
TOKIO
924 1200 2351
8
1600
0
2068
6
900
Bajaj Allianz
ICICI Lombar
National
Oriental
United India
IFFCO-TOKI
Claims Analysis ( In Lakhs)-
Bajaj
Allianz
ICICI
Lombard
National Oriental United
India
IFFCO
TOKIO
22632
0
20244
5
28630
0
19086
8
77539
8
1.4
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Bajaj Allianz
ICICI Lombard
National
Oriental
United India
IFFCO TOKIO
Interpretation: -The above analysis shows that the maximum claims are being paid
by the public sector companies with the United India Insurance paid the maximum
claim and the lowest being paid by the private sector companies with the IFFCO-
TOKIO paid the lowest claims.
Net Premium Earned (In Billions)-
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B aja j Al l ian
ICICI Lom ba
National
Oriental
United India
IFFCO-TOK
Interpretation: - The above analysis shows that the maximum net premium being
earned by National Insurance followed by Bajaj Allianz which is followed by
ICICI Lombard and the least net premium being earned by United India Insurance.
Bajaj
Allianz
ICICI
Lombard
National Oriental United
India
IFFCO-
TOKIO
3703 3616 3811 2218 2163 7.5
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CHAPTER-4
DATA ANALYSIS
AND INTERPRETATION
Q. 1. Do you think that insurance is a necessity in ones life in this uncertain
world.
Yes No
80 20
Yes
80%
No
20%
Analysis: The above diagram shows that the maximum respondents think that
insurance is a necessity in ones life.
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2. What makes you to go for some insurance Product?
Please give the preference number
a) Security
b) Uncertainty
c) Investmentd) Tax Benefit
Uncertainty Security Investment Tax benefit
10 15 50 25
Interpretation: - The above diagram shows that the maximum respondents take the
insurance as an investment proposal, followed by tax benefit and the least for the
uncertainty.
3 .Which advertising media is best which motivates you to buy the
52
security
15%uncertaint
y10%
investmen
t
50%
tax benefit
25% securityuncertainty
investment
tax benefit
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product?
Please give your preference
a) Electronic Media b) Newspapers
c) Agents d) Magazines
e) Brokers f) Banks
Electronic
media
Newspapers Magazines Agents Banks Brokers
30 20 10 25 10 5
Eletronic madia
30%
Newspapers
20%Magzines
10%
Agents
25%
Banks
10%
Brokers
5%Eletronic madia
Newspapers
Magzines
Agents
Banks
Brokers
Interpretation: - The above diagram shows that the best advertising media which
motivates the respondents is electronic media, followed by agents , which is
followed by newspapers and in the last the respondents gets motivated least by
brokers.
4. What factors you look in a company when you buy an insurance product.
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Please give your preference number.
a) Company History b) Services
c) Company Image d) Diversity of Product
e) Premium f) Any other __________________
re
miumServices Diversity of
productsCompanyimage
Companyhistory
60 15 5 10 10
Premium
60%
Diversity of
Products5%
Services
15%
Company
Image
10%
COMPANY
history
10%Premium
Services
Diversity ofProducts
Company Image
COMPANY history
Interpretation: - The above analysis shows that while buying some kind of insurance
product the buyer gives more weightage to the premium factor, followed by the services
factor , and the least factor which is considered is the diversity of the products being
offered by the company
Q.5 Do you think that private companies are better service providers in insurance sector
as compared to the government companies?
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Yes No
95 5
Yes
No
If yes, give the preference number.
Factors which make the private companies better service providers?
Better services More competitive Better
management
Customer
oriented
50 20 15 15
Interpretation :-- The above diagram shows that majority of the respondents thinksthat better services is the one of the biggest factor which is to be considered,
followed by more competitiveness of the prices, and which is followed by the
better management and more customer orientation.
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6) Are you satisfied with the services provided by the insurance companies?
Yes No
80 20
yes
85%
No15%
yes
No
Interpretation :-- The above diagram shows that maximum respondents are
satisfied by theservices being provided by the insurance companies.
Q.7. Have you heard about IFFCO-TOKIO General Insurance Co.Ltd.
Yes No
25% 75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Yes No
Series2
Series1
Analysis : The above diagram shows that maximum number of people not heard
about IFFCO-TOKIO.
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Q.8. Do you switch from one company to another ?
Yes No
73 27
73%
27%
Yes
No
Interpretation :-- The above diagram shows that just above 50 % customers
switch over from one company to another.
If yes, give your preference number.
Reasons for the switching over from one company to another.
Better services Better
premiums
Wide coverage Longer time
span of policy
Better addon
Schemes
22 48 10 10 05
23%
50%
11%
11%5%
Better services
Better
premiums
Wide coverage
Longer time
span of policy
Slice 5
Analysis : The above diagram shows that the maximum customers switch from
one company to another for the sake of better premiums ,followed by the better
facilities and services and are least motivated to change the company by the
coverage of the policy.
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CHAPTER-5
CONCLUSIONS
AND
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SUGGESTIONS
FINDINGS-
According to my study, the Insurance sector is a upcoming sector in the world
raher than in India. India, with a population of 1 Billion offers great potential and
opportunity for the insurance industry. Currently, the state-owned monoliths
General Insurance Corporation (GIC), run the insurance industry. In India only 2%
population is insured , so there a lot of potential in the Indian Insurance market, so
there is lot of opportunities lying in the future.
The Nationalized insurance companies have not been able to target niche
markets that are currently served poorly or not at all.
That is the main factor that the private insurance companies comes into the
bussiness, what the public nationalized copmpanies havent achieved in many
years , the private insurers have done in a very short span of time. Today both the
public as well as private insurers are sharing the Indian insurance market.
Another finding is that the private insurers are concentrating vigrously on the
customer satisfaction, which can be in any terms like product satisfaction, services
being provided, more transparency in the claim handling with very low turnaround
time and the most important being the after sales facilities to the customers, which
is definitely missing in the public sector insurance companies.
I find out that due to these facilities majority of the respondents thinks that
private insurance companies are better service providers as compared to the public
nationalized insurance companies
SUGGESTIONS-
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1. I like to suggest that the insurance companies should pay much more stress
on the advertising media, in order to educate and to make the consumers
more aware about the insurance products, so that they should not be fellt
cheated at the end of the policy.
2. Another suggestion is to make the insurance products and procedure moresimpler in order to make the consumer more aware about their rights and
their obligation.
3. The insurance companies should come up with more comprehensive
policies rather than the standard policies for everyone.
4. Another suggestion is to increase the time time period of the insurance, by
doing that both the insurance companies as well