Int Report Sree

7/29/2019 Int Report Sree

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INTERNSHIP REPORT

Submitted in partial fulfillment of the requirements for the award of the

Degree of Bachelor of Commerce (Hons) of Christ University during the year

2012-13.

By,

J. SREEJITH

Under the guidance of

Mr. GIRISH

Department of Commerce

Christ UniversityBangalore- 560029


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CERTIFICATE

This is to certify that the internship on STAR HEALTH AND ALLIED INSURANCE CO.

LTD.Submitted to Christ University in the partial fulfillment of B.Com (Hons) Course by J.

J.SREEJITH under my guidance and supervision. This has not formed a basis for the award of

any other degree of Christ University or any other Universities.

PLACE: BANGALORE

DATE:

HOD GUIDE


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DECLARATION

I, J. SREEJITH hereby declare that this internship report is a record of work carried out by me

at STAR HEALTH AND ALLIED IN SURANCE CO. LTD under the guidance ofMR.

GIRISH in partial fulfillment of the requirement of the award of the Bachelor of Commerce

(Hons) in Christ University. I also declare that this has not formed a basis for the award of any

degree of Christ University or any other Universities.

Place: BANGALORE J. SREEJITH

Date:


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ACKNOWLEDGEMENT

It is a matter of great satisfaction and pleasure to present this report on Working Capital

Management of STAR HEALTH AND ALLIED INSURANCE COMPANY LIMITED,

Bangalore I take this opportunity to owe my thanks to all those involved in my training.

This project report could not have been completed without the guidance of our projectguide Mr GIRISH. Their timely help & encouragement helped me to complete this project

successfully.

I thank Mr. Sunil Haleyur (SR. SALES MANAGER) for giving me opportunity to work

at STAR HEALTH AND ALLIED` INSURANCE COMPANY LIMITED, as a TRAINEE.

I express my gratitude towards staff ofSTAR HEALTH AND ALLIED INSURANCECO. LTD, who have helped me directly or indirectly in completing the training.

ACKNOWLEDGEMENT


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CONTENT

TOPIC PAGE NO.

1. CHAPTER 1:- INTRODUCTION

Profile of the organization

Mission

Objectives & strategies of the organization

Organization design & structure

Policies & procedures followed

Products

Competitors

2. CHAPTER 2:-Functional areas Of the Company

3. CHAPTER 3 :- SWOT Analysis of the organizationKey result areas of the organisation

4. CHAPTER 4 :- Organizational performance Sales development

System of accounting followed

Significant factors for success

Financial highlights

Performance appraisal system

5. CHAPTER 5 :- Conclusion


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CHAPTER 1: INTRODUCTION


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STAR HEALTH AND ALLIED INSURANCE CO. LTD


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Introduction to insurance:

Insurance is a form of risk management primarily used the hedge against the risk of acontingent, uncertain loss. Insurance is defined as the equitable transfer of risk of a loss, form

one entity to another, in exchange for payment. An insurer is a company selling the insurance;

the insured, or policy holder, is the person or entity buying the insurance policy. The amount to

be for certain amount of insurance coverage is called the premium.

Types of insurance:-


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Inroduction to Health Insurance:

An English proverb says that health is weath. It is not meaningless saying as it defines

a very impoartant fact of life. Your health is the most precious wealth that God has given you. Itis your own property and you are the sole owner of it. Therfore, it is your responsibilty to look

afetr it properly. However, it is also true the life is full of meaningfull of uncertainties and you

never know what will happen in the next few hours. Therefore, it is also your duty to make

certain arrangement so that you can care of yourself as well as your family even

some misfortune falls upon you.

Health Insuurance:

Health insurance against the risk of incurring medical expressing among individuals. By

estimating the overall risk of health care expenses among a targeted groug, an insurer can

develop a routine finance structure, such as monthly premium or payroll tax, to ensure that

money is available to pay for health care benefits specified in the insurance agreement.

Why should an individual buy a health insurance..?

Health insurance policy is not something you can regret about later on in your life.

Understand that it is an essential coverage that can help you in maintain yourself in good

shape. Not everyone can collect money in medical emergencies. Sometimes, it is very difficult to

get thoussands of dollars in a hurry. In those times, the health insurance policy coverage will

rescue you. Ypou will just have to file acliam and your problems will be solved. This will keep

your family members out of all sorts of burdens and you will be able to get proper medical

treatment on time.

Health insuarnce always gives a feeling of security and you know mentally that even in

case of extreme emergencies, you need not woory about money. It is right there. When you

choose to buy health insuarance, you choose coverage too. This coevrage decides how much

insuance claim you can file. Here, it is important to empasize that if you ander-insured, you may

not be able to egt all the benefits of health insurance, if you happen to need it at someplace.


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Types of health insurance:

There are mainly three types of health Insurance covers:

1. Individual Mediclaim:

The simplest form of health insurance is the indivdual mediclaim policy. It covers the

hospitalization expenses for indivdual for up to the sum assured limit. The insurance

premium is depedent on the sum assured value.

2. Famlily Floater Policy:

Family Floater policies are enhanced version of the mediclaim policy. The sum assured value

floats among the family mebers. i.e. Each opted family member comes under the policy, and

it covers expenses for the entire family up to the sum assured limit. The premium for the

family floater plans is typically less than that for separate insurance cover for each family

member.3. Unit Linked health Plans:

Taking the ULIP route, health insurance companies too have introduced Unit Linked Health

Plans. Such plans combine health insurance with investment and pay back an amount at the

end of the insurance term. The returns of course are dependent on the market performance.

These plans are very new and still in development phase. This type if insurance is provided

by Life Insurance Companies.


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Company Profile Of Star Health Insurance

Star Health and Alied Insurance Co. Ltd, is a joint venture between Omen insurance

Company, UAE and leading NRIs and Indian business man/house. It has a capital base of

INR 388 crores that far exceeds thereguirement to form a full fledged general insurance

company. As an exclusive health Insurance Company and the forst of its kind in India,

the Company is commited to setting international benchmarks in service and personal

caring.

Star health insurance is the first stand-alone health insurance company in Indiaand the

company is specialized in Unique Health Insurance Policy.

Star health insurance is dedicated to provide affordable & quality health insurance products.

Star Health and Allied Insurance Company has been jointly promoted by eminent Industrialists

from India and Foreign Investors and the headquarteres is in Chennai.


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MISSION

Ultimate Customer Satifaction

Belives in core values of trust, transparency, care and compassion

Pledges to creat an environment conductive to

Customer satisfaction,

Productiv, Innovative

Bottom line profits. Strives to maintain healthy standards of corporate governances.

Committed to become A STAR in health and related insurances.

VISION

Protecting Health, Promoting Health

Star Health and Allied Insurance Company shall work to become the most favoured

brand in Health Insurance in Indai setting benchmarks for the Industry in the domains of service,

innovative products, and collabrative relationships with an aim to become the BRIGHTEST

STAR in the Galaxy of non- life insurance.


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Objectives and Strategies of the orgnisation

The prime objective ofStar Health Insurance is to offer services in the health

segmentanddesigned to offer health insurance to the masses.

The important investment objective is to extend a protective arm to socially

isolated persons often disowned by their family members

No Third Party Administrator; direct in-house claims settlement

Faster & hassle-free claim settlement

Cashless hospitalization

It aims at extending the best possible services to the customers and thus

bringing down the scope for grievances.


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CHAIRMAN AND

MANAGING DIRECTOR

BOARD OF DIRECTORS

EXECUTIVES OF THECOMPANY

CHANNEL HEAD

REGIONAL HEAD

BRANCH HEAD

SALES MANAGER

ADVISORS/AGENTS

CUSTOMERS

Organization chart of Star Health Insurance:


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Products or Services

1.Health plans

Star Unique Health

Star wedding Gift

Star Health Gain

Star Super Surplus

Medi Classic Diabetes Safe

Family Health Optima

Senior Citizen Red Carpet

2. Accident Care

3.Student health plan

4.Over travel plan:

Travel Plan Individual Travel Plan Family

Travel Plan Students

Travel Plan Corporate

5.Health + Life plans

This product is jointly offered by Star Health and Shriram life Insurance Co. ltd.

Star Sri Individual Care

Star Sri Family Care

6.Rural Plan


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Competitors Of Star Health Insurance

1) General Insurance Companies:

ICICI LOMBARD GENERAL INSURANCE CO LTD

BAJAJ ALLIANZ GENERAL INSURANCE CO LTD

NATIONAL INSURANCE COMPANY

RELIANCE HEALTH INSURANCE

TATA AIG GENERAL INSURANCE

HDFC ERGO GENERAL INSURANCE

NEW INDIA ASSURANCE CO LTD

CHOLAMANDALAM MS

2) Stand Alone Companies:

APOLLO MUNICH HEALTH INSURANCE

MAX BUPA HEALTH INSURANCE

CAPITAL STRUCTURE

Star Health and Allied Insurance Company Limited( Star Health) has a capital base of Rs.303

crores, more than sufficient to form a General Insurance Company. However, Star health has

chosen to be in the field off Health. It is Indias first stand-alone Health Insurance Company in

India and deals in Personal Accident, Mediclaims and Overseas Travel Insurance.


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Number of Branches:

225 offices presently operational acroos the country. Zonal Offices in all major cities like Delhi, Mumbai, Bangalore, kolkata,

Hydrabad & Chennai.

Fully equiped offices with insurance experts and doctors t0o handle customer

queries and grievances.

Current Status of Health Insurance Sector

Health Insurance has been the fastest growing segment in the non-life insuarnce industry

in India over the last few years.

Commercial health insurance( i.e. purchased from insurance companies) constituted only

0.7% of this expenditure in 2001-02 and barely coevred 1% of the population. By the end

of 2008-09, health insurance premium would have grown about ten-fold from alevel of

Rs. 675 crores in 2001-02, in just 7years.

It grew 60% during 2007-08 to command a market (in non-life companies) of over Rs.

5100 crores as against Rs. 3200 crores in 2006-07.

During April-September 2008 (latest provisional figuires), it agains shows 47% growthover the corresponding period in the previous year and business in Apr-Sep 08 is higher than

entire Financial Year 2006-07.

It is also emerging as an increasingly significant line of business for life insurance

companies, and all the large life insurance companies now have products in the health

insurance space, the most conspicuous ones among these having been launched in the last

12 months itself.

According to the latest data released by the IRDA, the total health insurance premiums

wriiten by non-life insurance companies and stand-alone health insurance companies grew by36.5% during the nine month period April to December 2010, as compared to the corresponding

period in the previous financial year.


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Now the Health Insurance portability has been launched and the customers who are

dissatisfied with the services of health Insurance Compnay can port their insurance into another

company.

Opportunities of health insurance in India:

o Market Penetration.

o Effects of detariffing on price adequacy.

o Demand for new productspreventive care, outpatient coverage, long term care.

New regulations- lower capital requirement, risk based capital/solvency margin

Reasons for poor penetration of health insurance in india:

Lack of regulations and control on provider behavior:

The Unregulated environment and total absence of any form of control over providers

regarding quality, cost or data-sharing, makes it difficult for proper underwriting and actuarial

premium setting. This puts the entrie risk on the insurer as there could be the problems of moral

haard and induced demand. Most insurance companies are therefore wary about selling health

insurance as they do not have the data, the expertise and the powere to regulate the providers.

Weak monitoring system for checking fraud or manipulation by clients and providers, add to the

problem.

Unaffordable premiums and high claim ratos:


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Increased use of services and high claim ratios only results in higher premiums. The

insurance agencies in the face of poor information also tend to overestimates the risk and fix high

premiums. Besides,the administrative costs are high- over 30%, i.e 15% commision to agent.

5.5% administrative fee to TPA; own adminisrative cost 20%, etc. Patients also experience

problems in getting their reimbursements incliding long delays to partial reimbursements.

Reluctance of the health insurance companies to promote their products and lack of

innovation:

Apart from high claims ratios, the non-exclusivisity of health insurance as a product is

another reason. In India, and Insurance compant cannot sell non-life as well as life insurance

products.Since insurance against fire or natural disaster or theft is far more profitable, insurance

companies tend to compete by adding low incentive such as premium health insurance products

to important clients, cross- subsidizing the resultant losses. With a view to get the non-life

accounts, insurance companies tend to provide health insurance cover at unviable premiums.

Thus. There is total lack of any effort to promomte health insurance through campaignsregarding the benefits of health insruance and lack of innovation to make the policies suitable to

the needs of the people.

Too many exclusions and administrative procedures:

Apart from delays in settlement of claims, non-transparent procedures make it diffiucult

for the insured to know about their entitlements, because of which the insurer is able to, on one

stratagem or the other; reduse the claim amount, thus demotivating the insuraed and deepening

mistrust. The benefit pack-age also needs to be modified to suit the needs of the insured.

Exclusion go against the logic of covering health risks, though there can be a system where theexisting conditions can be excluded for time period- one or two years but not forever.Besides,

the system entils equity implicatiuons.

Inadequate supply of services:

There is an acute shortage of supply of services in rural areas. Not only there is non-

availability of hospitals with specialist services. Many centres have no cardologies or

orthopaedicians for several non-communicable diseases that are expensive to treat and can be

casastophic.

Co variable risk:

High prevalance levels of risk that could affect a majority of the people at the same time

could make the enterprise unviable as there would be no gins forming large poolsl. The results

could be higher premuims.


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Challenges of health insurance in India:

The significant economic growth in India at the turn of the millennium has left is medical

care and health insurance systems struggling to keep up with the growing healthcare demands of

its people. India is characterized by a growing (but still relatively small) middle class and a large

(but shrinking and mostly rural) near-subsistence population. Given the population, geographical

size of the country, different levels of evolution within the urban and rural strata of the society, it

is not surprising that players are faced with various challenges in increasing health insurancecoverage.

The health insurance products of Star Health have been designed with particular objectives in

mind. Some of such products are:

Star Health Red carpet:

This product has been specifically designed for senior citizens aged between 60-74 years.

Star Health Diabetes Safe:

Usually health insurance policies do not cover people suffering from

diabetesandrealteddisceases. Star Health launched diabetes safe to provide health

insurance to such people.

Star Health Family Health Optima:

Single premium health insurance plans with single Sum Assured for entire the family.

Star Health Wedding Gift:

Health insurance that includes maternity benefits including pre and post hospitalization

expenses.

Star Health Unique Insurance Policy:


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A health insurance policy that covers pre-existing diseases after 11 months of continuous

coverage and also has HIV related symptoms

Star Health Gain:

Health insurance policy, with impatient and outpatient benefits.

Chapter 2: Functional areas of the Organisation


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1) Administration-Administration is a support function required by all businessesand this does not mean

just doing keyboarding or filing. Senior administrators carry out a wide range of tasks;

from monitoring budgets to interviewing new staff for their departments. Routine

administrative tasks include opening the mail, preparing and filing documents, sending

emails and faxes. Others require more creativity and flexibility, such as arranging travel

or important events, from staff meetings to visits by foreign customers. Most

administrators also deal with external customers who judge the business on the way their

enquiry is handled. Poor or sloppy administration can be disastrous for a companys

image and reputation. A lost order, badly typed letter, important message that is not

passed on or wrong date scheduled for a meeting can cause problems and may lose

customers. Efficient administration means that everything runs smoothly and managers

can concentrate on the task of running the business.

2) Customer Service-

All businesses must look after customers or clients, who have an enquiry, concern orcomplaint. Today, customer expectations are high. When people contact a business they

expect a prompt, polite and knowledgeable response. Unless they get a high level of

service they are likely to take their business elsewhere in the future.For this reason, many

businesses have customer service staffor a customer service departmentwhere

trained staff handle enquiries and complaints positively and professionally. This does not

mean that other staff can ignore customers and their needs. It simply means that one

group specialise in assisting customers.

3) Finance-

Most entrepreneurs consider this is the most important function in the business. This is

because all businesses need a regular stream of income to pay the bills. Finance staff

record all the money earned and spent so that the senior managers always know how


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much profit (or loss) is being made by each product or each part of the business and how

much money is currently held by the business. This enables critical decisions to be made

rapidly and accurately because they are based on accurate information. In some cases,

this can mean the difference between the success or failure of the business as a whole.

Finance staff supports the accountants by keeping financial records, chasing up late

payments and paying for items purchased.

4) Human Resources-

The human resources of a business are its employees. Wise organisations look after their

staff on the basis that if they are well trained and committed to the aims of the business,

the organisation is more likely to be successful.HR is responsible for recruiting new

employees and ensuring that each vacancy is filled by the best person for the job. This is

important because the recruitment process is expensive and time-consuming. Hiring the

wrong person can be costly and cause problems both for the individual and the firm.

Normally, new employees attend an induction programme which tells them about the

business, their rights and responsibilities as employees, the company rules and the

requirements of their new job. Arranging appropriate training and assisting with the

continuous professional development of staff is another aspect of HR. Training may be

carried out in-house or staff may attend external courses.Many organisations have staffassociations, which monitor the views and conditions of staff and make these known. In

other businesses trade unions may represent the workers, especially on pay and

conditions.

Senior HR staffs liaise with these organisations, keep them informed of changes and

developments and are also involved in any negotiations with senior management

5) Sales-

Sales are a crucial function for all businesses. It is pointless having superb products or

services if no one buys them. For that reason, most businesses have sales targets as part

of their aims and objectives. Meeting these is the responsibility of the sales staff or sales

team. The job of the sales staff varies, depending upon the industry. Shops that sell basic

products, such as chocolates or magazines do not need to do much selling. Most

customers call in to buy something, choose the goods they want, pay and leave.


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Customers expect more help and advice if they want to buy a complex or expensive item,

such as a television or car. Stores which sell these types of products therefore need

trained sales staff who are friendly, knowledgeable and can describe and/or demonstrate

their products and link these to the customers specific needs. Business buyers also expect

a high-quality service and in-depth advice and information. They may want to buy highly

complex and expensive industrial equipment and need to negotiate special finance

arrangementsparticularly if they are overseas buyers. Business buyers will also expect

discounts for bulk purchases. Sales representatives often travel to meet potential

customers, as well as routinely visiting existing customers to ensure their needs are being

met.


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CHAPTER 3- SWOT Analysis of the Organization


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Strength

Net profit of the organization is good.

Company performing well in generatingCurrent asset.

No third Party Administrator; direct in-house claims settlement.

Cashless hospitalization and 24x7 Toll-free Helpline

Network of more than 4600 hospitalsacross India.

Weakness

Premiums of the company are morecomparing to other health insurance.

Advertising of the company I low.

Opportunities

Health insurance is at growth stage.

Health insurance portability.

It can easily conquer establishedmarkets of the competitors.

As the health insurance is still in itsinitial stage, star health insurance caninfluence more to buy products.

Threats

Facing a stiff competition from otherhealth insurance companies.

Customers showing disinterest towardshealth insurance.

New tie ups by the competitors

New entrants into the market

SWOT Analysis


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Key Result Area Of The Organization

1) Service Sector

The service sector is given the first priority in Star Health. Without customers the

organization can never run. Star Health even sees that their customers are given the

required information of network hospitals near the customers residence area. Star Health

even sees that their service to their customers is genuine. Star Health even sees that their

relationship to their customers is never cheated.

2) Promotion

Star Health second priority in regards with Key Result Areas is promotion. The

promotion of the various products or the policies of the organization is mandatory so that

the public is aware of it. Through this the promotion of the organization is made strong so

that it makes it tough for their competitors tough to compete with them.

3) AdvertisemenT

Advertisement plays a very vital role in promoting the products of the organization.Through advertisement the public comes to know the various products of the

organization. Star Health advertises through TV, magazines, pamphlets, newspapers, and

through radio.

4) Marketing

Through marketing, the products are are made known to the public through advertisement,

collecting questionnaire, door to door service, and through many other ways.


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Chapter 4: Organizational performance


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Sales Develpoment

- The organization will appoint an agent who will be visiting the customer, who is a

licensed person from IRDA and will market the products from the insurance company.

- This insurance agent will be reporting to the sales manager who will handle few agents or

health insurance advisors.

- Sales manager is a development manager who will recruit, train and motivate the agents

and generates the business to the company.

- Sales manager reports to a branch manager who is responsible to operate in a specified

area with the help of marketing personnel. There will be an area office which will

coordinate with branch offices.

- All the sales promotional activities like printing of policies, fliers, advertisement in media

are conducted by the area officers.

- Timely updating of the products and benefits of the product will be updated to the sales

force periodically. Updating of the competitors premium will also be conveyed.

- Lot of promotional activities, apartment activities are conducted by the respective

marketing officers.


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Significant factors for success-

1) Service

Star Health gives their first preference to their customers. They see that the customers

receive all the benefits. They too see that the customers get all the information regarding

which hospitals are within the network of star health insurance. Star health even sees that

these hospitals give the best service to the customers. The different services provided by

star health insurance are the following-

Direct in-house claims settlement

Faster and hassle-free claim settlement

Cashless hospitalization wherever possible at network hospitals

Network of more than 4900 hospitals across India

24 * 7 toll free helpline

More than 300 branches across India

2) Promotions

Star Health Insurance Company promotes their company through circulars. Star Health

Insurance Company evens sees that they have the best financial consultancies that goes to

field from door to door activities and sees that the customers get all the proper

information regarding the health insurance and even its importance. The company even

promotes by conducting a questionnaire to the public and through this they convince the

customers to buy the health insurance policies.

3) Advertisement


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Star Health Insurance Company even sees that they market their products through proper

advertisement through TV, brochures, magazines, pamphlets, newspapers, hoardings and

borders, radio, through cellular advertisements, etc.

4) Marketing

Star Health Insurance Company works through customer oriented. They have contacts of

at least 2000 hospitals in India. 500 hospitals are already under the network of Star

Health Insurance Company.

5) Addition of financial advisors

Star Health Insurance Company conducts many meetings with their agents. So through

this, the agents are aware of the various changes in the premiums and through these

meetings, the agents become more confident to approach the customers. The company

even gives a target to these agents to accomplish a specified task.


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FINANCIAL HIGHLIGHTS

Table 1: Current Ratio

Year Current Asset

(In lakhs)

Current Liabilities

(In lakhs)

Current ratio

2007-08 5,58,482 4,85,135 1.151188844

2008-09 14,22,810 13,92,848 1.021511321

2009-10 37,76,780 28,50,221 1.325083213

2010-11 42,11,512 34,01,551 1.238115201

2011-12 40,86,774 11,71,218 3.489336741

Graph 1: Graphical representation of Current Ratio
http://financenmoney.in/wp-content/uploads/2012/01/ratios-classification.jpg


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Interpretation:

The standard or ideal current ratio is 2:1. The above graph states that the current ratio

of the organization is very high compared to the standard ratio, so that the company will find a

way to utilize all its idle funds in order to increase its profitability. Since idle funds are a bane to

the organization.


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Table 2: Quick Ratio

Year Quick Asset

(In Lakhs)

Quick liabilities

(In Lakhs)

Quick Ratio

2007-08 5,58,482 4,85,135 1.51188844

2008-09 14,22,810 13,92,848 1.021511321

2009-10 37,76,780 2,85,221 1.325083213

2010-11 42,11,512 34,01,551 1.238115201

2011-12 40,86,774 11,71,218 3.489336741

Graph 2: Graphical representation of Quick Ratio

Interpretation:

The standard or current ideal ratio is 1:1. The above graph states that the quick ratio of

the organization is high compared to the standard ratio. This means that the company has

excessive cash or more debtors, which are not yet utilized to the fullest.


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Table 3: Absolute Liquid Ratio

Year Cash in hand/bank(In Lakhs)

Current liabilities(In Lakhs)

Absolute liquid Ratio

2007-08 3,55,597 4,85,135 0.732985664

2008-09 2,75,528 13,92,848 0.197816273

2009-10 17,03,503 28,50,221 0.597674005

2010-11 11,51,632 34,01,551 0.338560851

2011-12 5,04,533 11,71,218 0.430776337

Graph 3: Graphical representation of Absolute Liquid Ratio

Interpretation:

The standard or ideal current ratio is 0.5. the above graph states that the absolute liquid ratio of

the organization is fluctuating, so the company has low cash liquidity.


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Table 4: Proprietary Ratio

Year Shareholders Fund

(In Lakhs)

Total Assets

(In Lakhs)

Proprietary Ratio

2007-08 10,86,000 6,22,580 1.744354139

2008-09 11,05,368 16,34,965 0.676080528

2009-10 17,08,259 41,66,841 0.409965007

2010-11 87,37,933 48,28,096 1.809809291

2011-12 16,10,084 41,94,190 0.383884373

Graph 4: Graphical representation of Proprietary Ratio

Interpretation:


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From the above graph it is interpreted that the long term stability of the company is not effective

because the proprietary ratio of the company is fluctuatuing. But there is an increase in the

proportion of contribution of the proprietors towards the total assets.

Table 5: Current asset to fixed asset ratio

Year Current Asset

(In Lakhs)

Fixed asset

(In Lakhs)

CA to FA Ratio

2007-08 5,58,482 64,106 8.711852245

2008-09 14,22,810 2,12,155 6.706464613

2009-10 37,76,780 3,90,061 9.682536834

2010-11 42,11,512 6,16,584 6.830394561

2011-12 41,94,191 6,45,843 6.494134023

Graph 5: Graphical representation of Current asset to Fixed Ratio


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Interpretation:

From the above graph it is interpreted that the current ratio to the fixed asset ratio is

fluctuating every year. The current assets are more than the fixed assets in the company. This is

because that the company is not a manufacturing organization. So it has little need for the fixed

assets.

Table 6: Fixed Asset Turnover

Year Sales

(In Lakhs)

Fixed Asset

(In Lakhs)

Fixed Asset Turnover

2007-08 35,507 64,106 0.553879512

2008-09 55,556 2,12,155 0.261865146

2009-10 1,04,120 3,90,061 0.266932608

2010-11 1,18,283 6,16,584 0.191835987

2011-12 2,211,523 645,843 0.292033539


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Graph 6: Graphical representation of Fixed Asset Turnover

Interpretation:

The above graph interpret that the company has high fixed asset turnover ratio and

indicates thatefficient utilization of fixed assets in generating sales to the company

Table 7: Working Capital Turnover

Year Sales (In Lakhs) Net Working Capital

(In Lakhs)

Working Capital

Turnover

2007-08 35,507 73,347 0.484096146

2008-09 55,556 29,962 1.854215339

2009-10 1,04,120 9,26,559 0.112372768

2010-11 1,18,283 8,09,961 0.146035426


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Graph 7: Graphical representation of Working Capital Turnover

Interpretation:

From the above graph we can interpret that in the year 2009 the working capital of the

company is used in making sales. Totally the company indicates the inefficiency in the

utilization of working capital in sales.

Table 8: Capital Turnover

Year Sales(In Lakhs) Total Capital

Employed(In Lakhs)

Capital Turnover

2007-08 35,507 1,95,045 0.182045169

2008-09 55,556 2,68,965 0.26554756

2009-10 1,04,120 -1,02,978 -1.011089747

2010-11 1,18,283 3,26,572 0.362195779


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Graph 8: Graphical representation of Capital Turnover

Interpretation:

The above graph interpret that the company has very low capital turnover ratio. It

indicates that insufficient sales and possibility of lower profits in business.


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Table 9: Capital Asset Turnover

Year Sales (In Lakhs) Current Asset

(In Lakhs)

Current Asset

Turnover

2007-08 35,507 5,58,482 0.063577698

2008-09 55,556 14,22,810 0.039046675

2009-10 1,04,120 37,76,780 0.027568458

2010-11 1,18,283 42,11,512 0.028085638

Graph 9: Graphical representation of Current Asset Turnover


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Interpretation:

The current assets turnover is dwelling year on year. This means that the current assets

have not been judiciously utilized to earn revenue. And notwithstanding the fact that current

assets occupy a larger share in the total assets, their contribution to the total revenue is vital.

Table 10: Net Profit Ratio

Year Net Profit (In Lakhs) Net Sales (In Lakhs) Net Profit Ratio

2007-08 12,765 35,507 35.950657622008-09 12,368 55,556 22.2622219

2009-10 52,591 1,04,120 50.50998847

2010-11 73,911 1,18,283 62.4865788

Graph 10: Graphical representation of Net Profit Ratio


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Interpretation:

The standard and ideal ratio of net profit ratio is 10%. The company net profit ratio is

more than the standard ratio so it is an advantageous position to survive in the face of rising cost

of production and falling selling price. It indicates that efficiency with which business ismanaged.

Table 11: Operating Ratio

Year Operating Ratio

(In Lakhs)

Sales

(In Lakhs)

Operating Ratio

2007-08 3,51,630 35,507 990.3117695

2008-09 6,29,817 55,556 1133.661531

2009-10 9,33,032 1,04,120 896.1121783

2010-11 9,09,323 1,18,283 768.7689693


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Graph11: Graphical representation of Operating Ratio

Interpretation:

The above graph interpret that the company operating ratio is more so the company high

operating ratio is considered unfavorable because it leaves a smaller margin of profit to meet

non- operating expenses. Here lower operating ratio is considered a good sign.


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Table12: Return on Investment

Year PBIT (In Thousands) Capital employed

(In Lakhs)

Return on Investment

2007-08 31,593 1,95,045 16.19780051

2008-09 52,721 2,68,965 19.60143513

2009-10 1,02,185 -1,02,978 -99.22993261

2010-11 1,16,701 3,26,572 35.73515182

Graph12: Graphical representation of Return on Investment

Interpretation:

The above graph interpret that ROI interpret the profitability of a business. The ROI ratio

of the company is low it indicate that management has not utilized the funds supplied by the

owners and creditors effectively and in the year 2010 ROI is negative because the capital

turnover ratio is also negative

Return on

Investment


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Table13: Return to Equity

Year PAIT (In Thousands) Shareholders fund

(In Lakhs)

Return on Equity

2007-08 12,765 10,86,000 1.175414365

2008-09 12,368 11,05,368 1.118903388

2009-10 52,591 17,08,259 3.078631519

2010-11 73,911 27,00,733 2.736701481

Graph 13: Graphical representation of Return on equity

Interpretation:

From the above graph it can be interpreted that the company is not performing well in case of

return on equity. In the year 2010 return on equity is very high compare to all other years. The

owners of the company getting very low profits.

Return on

Equity


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Table 14: Earning per share

Year

PAT ( In Thousands) No. of Equity Shares

(In Lakhs)

Earnings per share

2007-08 12,765 1,08,600 0.1175414362008-09 12,368 1,09,300 0.11315645

2009-10 52,591 1,64,330 0.320032861

2010-11 73,911 2,02,990 0.364111533

Graph 14: Graphical representation of earning per share

Interpretation:

From the above graph it is interpreted that increase in earning per share in 2010 and 2012. In the

year 2009 and 2008 earning per share is almost same. By considering overall the companys

earning per share is very low. It is not good sign for the company.

Earning

per share


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Table 15: Showing Return on total asset

Year Net profit after tax

(In Thousands)

Total asset

(In Lakhs)

Return on total asset

2007-08 12,765 6,22,580 2.050338912

2008-09 12,368 16,34,965 0.756468793

2009-10 52,591 41,66,841 10262131192

2010-11 73,911 48,28,096 10530851913

Graph 15: Graphical representation of return on total asset

Interpretation:

From the above graph it can be inferred that the return on total assets is fluctuating.

Though it was low in the year 2008-09.Then on the ratio has improved considerably. This is one

of the most important ratios to determine the financial health of the company.

Return on

total asset


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CHAPTER 5-CONCLUSION


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Six weeks of internship in Star Health Insurance was challenging, conducting surveys, marketing

the insurance schemes and informing potential customers about the significance of the

companys schemes and other lucrative offers.

We had to also meet the existing customers, learn from them any new expectations from thecompany as well as their satisfaction towards the services.

We had to inform the company about the mood swings of the customers and prepare our own

conclusions from the respective surveys we made.

Star Health Insurance is the first stand-alone health insurance company in India and it is facing

huge competition in the market in the current scenario.

I learnt that from the last financial year that Star Health Insurance has done more premium than

15 life insurance companies like ING, TATA AIA, AVIVA, MET Life, SAHARA LIFE,

SHRIRAM LIFE, BHARATHI LIFE, FUTURE GENERALLY, IDBI, CANARA, HSBC,

RELIGERE, DLF, STAR UNION, INDIA FIRST, and EDELWEISS TOKIO.

The company has reached the maximum customers across the country having the most

innovative products and the updated technology to its expectation.

The financial performance of the company has been used effectively through its profitability and

liquidity ratio as we observed in the financial highlights.

Finally, I learnt about the dynamic behavior of the customers and also developed skills of

persuading people.


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Future Plans of the Growth ofthe Organization

The future plans of the growth of the organization are the organization are the

following-

Having more no. of manpower

The Company needs more qualified personnel to attract potential clients, to increase

the cash resources.

This will enable the company to increase investments in rights places and the

personnel should put these investments in the right direction to enhance returns.

Reach more no. of customers

The insurance market in India is not at its full capacity which not seen in United

Kingdom and United States. So people need to be convinced and there are about

more than 100 Billion $ of idle saving to be attracted by the company.

Become NO. 1 in India

There are various unexplored places in the insurance market, if exploited, then the

company will be highly competitive in the health insurance sector mainly.

To become a preferred company to work with to be a joint in the industry of health

insurance.

Combined resources of both companies are preferred with qualified personnel from

both sides, different ideas, enables the company to make appropriate polices to

survive in the insurance business.


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Sustainability

-

The industry health insurance is growing at a rate of 27%. Only 13% is covered. Sodefinitely there is a future,so the company will grow

- One of the main objectives of Star Health is to maintain quality of the organization and to

create a good relationship with the customers. The organization even wants to provide

good after sales services.

-

The organization also invests some of the money collected from the clients in

government securities to ensure stability of returns in investment, since returns on

government securities are assurable.

- Also, Star health insurance, has qualified personnel, who are excellent in persuading

customers to deposit their money with the company for health insurance

-

The company also does stringent analysis on the competition of the health insurance

industry, also conducts surveys of the selected clients of rival companies, about the

expectations from the health insurance sector.

- The company notes down these expectations and prepares policies based on these to some

extent.


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BIBLIOGRAPHY

AUTHOR TITLE

OF THE

BOOK

EDITION

OF THE

BOOK

NAME

OF THE

PUBLISHER

M.N. Arora Management

Accounting

2n

edition Himalaya

Publishing

house

S.P Jain &

K.L.

Narang

Financial

accounting

4t

edition Kalyani

publishers

Web sites visited Date

www.starhealth.in 06-01-2012

www.investopedoa.com 12-01-2012

www.reference.com 02-02-2012

Int Report Sree

Documents

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