Lokesh Thakur

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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.html


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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

36
http://itgi.co.in/erection_all_risks.htmlhttp://itgi.co.in/industrial_all_risks.htmlhttp://itgi.co.in/machinery_breakdown.htmlhttp://itgi.co.in/machinery_loss_of_profit.htmlhttp://itgi.co.in/product_liability.htmlhttp://itgi.co.in/public_lia_industrial.htmlhttp://itgi.co.in/public_lia_non_industrial.htmlhttp://itgi.co.in/marine_cargo.htmlhttp://itgi.co.in/electronic_equipment.htmlhttp://itgi.co.in/bankers_blankets.htmlhttp://itgi.co.in/burglary_insurance.htmlhttp://itgi.co.in/fidelity_guarantee.htmlhttp://itgi.co.in/money_insurance.htmlhttp://itgi.co.in/workmen_compensation.htmlhttp://itgi.co.in/industry_protector.htmlhttp://itgi.co.in/industry_protector.htmlhttp://itgi.co.in/office_package.htmlhttp://itgi.co.in/office_package.htmlhttp://itgi.co.in/office_package.htmlhttp://itgi.co.in/home_suvidha.htmlhttp://itgi.co.in/trade_suvidha.htmlhttp://itgi.co.in/ind_medisheild.htmlhttp://itgi.co.in/ind_medisheild.htmlhttp://itgi.co.in/individual_personal_accident.htmlhttp://itgi.co.in/individual_personal_accident.htmlhttp://itgi.co.in/individual_personal_accident.htmlhttp://itgi.co.in/group_personal_accident.htmlhttp://itgi.co.in/group_personal_accident.htmlhttp://itgi.co.in/critical_illness_policy.htmlhttp://itgi.co.in/critical_illness_policy.htmlhttp://itgi.co.in/surgery_protector.htmlhttp://itgi.co.in/travel_protector.htmlhttp://itgi.co.in/all_risk_insurance.htmlhttp://itgi.co.in/all_risk_insurance.htmlhttp://itgi.co.in/barish_bima_yojana.htmlhttp://itgi.co.in/sagar_bandhu_bima.htmlhttp://itgi.co.in/sagar_bandhu_bima.htmlhttp://itgi.co.in/erection_all_risks.htmlhttp://itgi.co.in/industrial_all_risks.htmlhttp://itgi.co.in/machinery_breakdown.htmlhttp://itgi.co.in/machinery_loss_of_profit.htmlhttp://itgi.co.in/product_liability.htmlhttp://itgi.co.in/public_lia_industrial.htmlhttp://itgi.co.in/public_lia_non_industrial.htmlhttp://itgi.co.in/marine_cargo.htmlhttp://itgi.co.in/electronic_equipment.htmlhttp://itgi.co.in/bankers_blankets.htmlhttp://itgi.co.in/burglary_insurance.htmlhttp://itgi.co.in/fidelity_guarantee.htmlhttp://itgi.co.in/money_insurance.htmlhttp://itgi.co.in/workmen_compensation.htmlhttp://itgi.co.in/industry_protector.htmlhttp://itgi.co.in/industry_protector.htmlhttp://itgi.co.in/office_package.htmlhttp://itgi.co.in/office_package.htmlhttp://itgi.co.in/office_package.htmlhttp://itgi.co.in/home_suvidha.htmlhttp://itgi.co.in/trade_suvidha.htmlhttp://itgi.co.in/ind_medisheild.htmlhttp://itgi.co.in/ind_medisheild.htmlhttp://itgi.co.in/individual_personal_accident.htmlhttp://itgi.co.in/individual_personal_accident.htmlhttp://itgi.co.in/individual_personal_accident.htmlhttp://itgi.co.in/group_personal_accident.htmlhttp://itgi.co.in/group_personal_accident.htmlhttp://itgi.co.in/critical_illness_policy.htmlhttp://itgi.co.in/critical_illness_policy.htmlhttp://itgi.co.in/surgery_protector.htmlhttp://itgi.co.in/travel_protector.htmlhttp://itgi.co.in/all_risk_insurance.htmlhttp://itgi.co.in/all_risk_insurance.htmlhttp://itgi.co.in/barish_bima_yojana.htmlhttp://itgi.co.in/sagar_bandhu_bima.htmlhttp://itgi.co.in/sagar_bandhu_bima.html


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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,


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,


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


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


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


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


53/65

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

Lokesh Thakur

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