1

YEAR:2012-2013

SUBMITED BY:

Prajapati Alpesh G. 3042

Senma Sanjay D. 3055

Kathodi Rohit L. 3098

Makwana Nitin T. 3101

Mistry Nniyati M. 3105

Panchal Bhavik D. 3108

Panchal Ronak A. 3109

Parekh Ritu G. 3112

Patel Foram A. 3121

Patel Jainita B. 3122

Patel Payal N. 3216

Patel Riya B. 3128

Solanki Mukesh M. 3149

SUBMITED TO:

B.W.T.INSTITUTE OF BUSINESS ADMINISTRATION (HKBBA)

AHMEDABAD

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(Affiliated to the Gujarat University)

PREFACE

“The only way to discover the limits of the possible is to go beyond them into the impossible”.

- Arthur c. Clarke

Being the management student and performing small practical even is in itself an experience of

responsibility on our head. the project is certainly the best chance to work in the research field

and have practical understanding of research. And this exposure has really added a supplement

and nourishment to our growing tree of management knowledge –just like the fertilizer does to

the plants.

In view of above, this report has been completed as part of syllabus prescribed for the business

administration. This had been made in order to known the impact on general insurance..for this a

wide survey of targeted population has been made. this is help us to understand the market

potential & consumer awareness about general insurance .we have made questionnaire which

helped us to collect primary data as per guideline provided. This data has been verified and

carefully analyzed in order to predict this project help us to understand the market potential and

consumer awareness about general insurance and we also understood that whether they would

like to use general insurance or not.

Under this project report, we have tried our best to present an overlook of the organization as

well as our understanding about the unit. It is really a golden opportunity for us, as it comes first

time in our life knowledge.

In our report we have introduced you with our work and extent of our knowledge regarding

different concept of marketing and business environment and how we have linked theory with

the practical issues of general insurance.

“Every legend, moreover, contains its residuum of truth. And the root functions of language are

to control the universe by describing it”.

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- James a. Baldwin

Acknowledgement

while we are of course solely responsible for the content in this report impact of general

insurance on people. We want to thank several people for their assistance. from the practical

study we have got the experience and improved our knowledge and its provides us guidelines to

perform work in actual situation.

We have thankful to director of our college prof. Nirav shah and brahmchariwadi trust

institute of business administration to providing all the facilities to make this report and for all

encouragement firstly we are thankful to the faculty who reviewed this report and provided us

with rice guidance PROF. BHAUMIK NAYAK.

We are thankful to all those respondents who actively engaged with our research given their

precious time to us at home we want to acknowledge the support and patience of our parents

during the many hours we spent on working on the report.

Finally we thank the Almighty for providing us the great opportunity undertake this value based

learning. Here, we can’t forget the psychological and financial support provided by our parents

during the course of report. Last but not least we are also thankful to our classmate for sharing

the information with us.

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TABLE OF CONTENT

CHAPTER

NO.

SR.

NO.

PERTICULAR PAGE

NO

I Preface 2

II Acknowledgement 3

Ch:1 RESEARCH METHODOLOGY

1.1 Research objective 7

1.2 Data sources 8

1.3 Research design 9

1.4 Research approach 11

1.5 Contact method 12

1.6 Research instrument 13

1.7 Sampling plan 14

1.8 Data preparation & interpretation 15

1.9 Interpritation & tabulation 16

Ch:2 INTRODUCTION 20

2.1 Introduction of general ins. 20

2.2 History of general ins. 39

2.3 Policy of general ins. 65

2.4 Process of general ins. 85

2.5 Benefits of general ins. 100

2.6 Opportunities & challanges 119

2.7 Companies of general ins. 134

2.8 Components of general ins. 138

5

2.9 Privatization of general ins. 151

Ch:3 Introduction of Industrial over view ins. 175

3.1 Indusry profile 175

3.2 PEST Analysis 188

3.3 SWOT Anaslysis 190

3.4 Indusry compititive structure 200

Ch.4 S.T.P. 207

4.1 Segmentation 207

4.2 Targeting 211

4.3 Positioning 213

Ch:5 MARKET STRTEGIES ANALYSIS 215

5.1 Product 215

5.2 Price 222

5.3 Place 225

5.4 promotion 228

5.5 People 231

5.6 Process 234

5.7 Physical evidence 235

Ch:6 Primary data analysis 237

6.1 Data analysis 237

6.2 Cross tabulation analysis 305

6.3 Chi-square analysis 399

III CONCLUSION

IV MAJOR FINDING

6

V BIBILIOGRAPHY

VI APPENDICES

questionnaire

7

Chapter :1 Research Methodology

1.1 Research objective:

Research objective can be define as the purpose of motive behind the research through

which the researcher tries to conclude some of the major and minor findings.

There are two types of objective in research.

a.) Primary objective

b.) Secondary objective

A.) Primary objective: Our research’s primary objective is to determine the impact of

general insurance

B.) Secondary objective: Our secondary objective are……

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1.2: Data sources:

Data can be define as some information regarding particular topic or point. It is some

broad information regarding one subject. It can be classified in two categories……..

1. primary data:

The newly and freshly gathered information which is gathered for very first is known as

primary data.

2. secondary data:

The secondary data is already exists somewhere and gathered previously for any other

purpose. The sources used to gather secondary data is known as secondary data sources.

e.g.: from the general insurance we have gathered some information like details of

companies, major player in general insurance and various related information of

General insurance

9

1.3 Research design:

Research design is known as framework or blue print of research.

Research design can be define as frame work or blue print of research for conducting any kind

of marketing research. It specifies the detail of necessary procedure for obtaining the information

needed to solve marketing research problems.

There are mainly two type of research design. such as

Exploratory design

Conclusive

1. Exploratory research design:

In Exploratory research design, a researcher tries to explore new and untapped areas of the

research design project. This kind of research design has its primary object of providing

insight or idea in to the problem definition faced by researcher. Here, we have not used this

design for the research.

2. Conclusive research design :

Conclusive research is done to help the marketing researcher or decision maker in

determine, evaluation and selecting the best course of action in any given situation.

This kind of conclusive research is more formal and structured than exploratory research.

research design

exploratory

conclusive

causal

desciptive

cross section

single cross sectional

multipal cross sectional

longitudial

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a) Descriptive design:

Descriptive research is research that will describe some characteristics on function of the

market and its objectives are detailed awareness of certain market situation. The example of

descriptive research is study of market size which determines using power of the consumers.

To undertake descriptive study the result must be analyzed on both qualitative and

quantitative parameters. Usually surveys, panel discussion or observation research is

undertaken to collect secondary and primary information.

Here, we have done the research to known the different kind of market share of different

company like national ins. company ltd. ,new India assurance company ltd. ,oriental

insurance company ltd. ,united India ins. Company ltd. ,icici Lombard ,Bajaj Allianz ,Tata

Aig etc…..on this base we can known which company is leading in the market among them.

There are two type:

1. Cross sectional:

In cross sectional research design research collect information from any given sample of

population only once.

2. Longitudinal:

In this kind of research design the sample from population is fixed And researcher

collects the information from the sample over period of time repeatedly.

In this study of brand awareness and market potential of general insurance. We have

conducted descriptive research in order to known the awareness and market potential

general insurance.

b) Causal research design:

It type of causal research the major objective of research is to identify cause & affect

relationship among different variable involved in research.

Product can be define as that is affording to consumer for attention, acquisition and

consumption that will satisfy needs and wants.

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1.4 Research approach

After deciding the data source we will get the information from our respondent i.e. consumer.

primary data can be collected in following five ways:

1. Observational research:

This data can be collected by observing the people when they use different companies.

Important points can be noted down while analyzing the using pattern of people.

2. Survey approach:

It refers to face direct communication with the respondents. In this predecided questions are

asked respondents. It is suited for descriptive research.

3. Focused group approach:

In this we have select people who are potential to using general insurance here, we have ask

such question regarding different company’s their using pattern of different insurance and we

have note the important points regarding people’s preferences.

4. Experimental approach:

In this we have select two mutually exclusive group of people having similar characteristics,

keeping the same controllable factor and same variable in both groups but providing them

different to observe the differences in their opinion.

Here we have used survey research approach to known about impact of general insurance

with the help of research instrument known as questionnaire.

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1.5 Contact Methods:

In this we decide the methods through which we can contact the respondents to get information.

Some of them are follows:

1. Personal interview:

It is face to face communication with respondents. By this type of interview we can get the

reliable information and we are able to complete the entire question. We also give

explanation for the question which is not understood by the respondents.

2. Telephonic interview:

In this we have ask some question to respondents on telephone. It is the best method for

gathering information quickly and it is less costly also. but in this type of method researcher

cannot get reliable, accurate and correct information regarding the objective.

3. Mail questionnaire:

A structured questionnaire is prepared and sends to the respondents. the respondents is

supposed to fill up the questionnaire and send it back to researcher. This is very time

consuming.

4. Online interview:

In this type of research we ask the question to respondents online through chat or e mail.

Large number of respondents can be covered and it is less costly.

For our research we used personal interview for getting reliable information. We met people

of various age group to known their using habit, experience and preference related to general

insurance.

13

1.6 Sampling Plan:

Research uses sampling plan to reduce time and cost of research. Few units from population is

selection is selected known as sample.

Sampling plan has following three decision to be made:

A) Sampling unit:

If refers to that who should we survey? Researchers select the target audience and do the

research.

for our research our sampling units are the people who use the general insurance .

B) Sample size:

It refers to how many people to be survey? Sample size should be optimum to do survey to

get more reliable results.

C) Sampling procedure:

If refers to how should we choose the respondents? Sampling procedure are of 2 kinds;

1. Probability sampling procedure: it is used where all the units of population is given

known and change to be selected as samples.

2. Non-probability sampling procedure: it is used where all the units of population do not

get known and equal change to be selected as samples.

In our research we used non probability sampling procedure by convenience sampling as all

the units of population do not get known and equal chance to be selected as samples.

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1.7 research Instrument:

Basically there are 3 types of research instrument. They are:

Questionnaire,

Qualitative measures,

Mechanical devices

In our research we have used questionnaire as research instrument.

There are 2 types of questionnaire.

1. Structure questionnaire

In this type of questionnaire the entire question are in pre decided format and it is asked in a

logical sequence.

2. Unstructured questionnaire:

In this type of questionnaire question are ready but not asked in logical sequence researcher

can ask any question at any time according to his wish as the format is not pre-decided.

There are 2 types of questions:

1. Open ended question:

It means where respondents is allowed to answer in his own way by using own words and

sentences. Here freedom is provided to respondent to answer.

2. Close ended question:

It means where respondent are provided the option and is supposed to answer from those

alternatives only. Here freedom is provided to respondent to answer.

For our report we have used structured QUESTIONNAIRE that includes both open ended

questions and close ended type of question we used dichotomous question, multiple choice

question, and rating scale type of questions.

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1.8 Coding:

1. Coding:

In the second stage of our analysis we have marked 1 to 300 numbers on the

questionnaires that means our sample size 300 respondents. Each and every question of

questionnaire and the option given in each question as also assigned a code.

Coding means assigning numbers, symbols, or some character for identification,

classification and easiness of data analysis.

These numbers and symbols are assigning to each option of close ended.

For examples:

(Q: 1) occupation

(a) Business (1)

(b) Profession (2)

(c) Service (3)

(d) House wife (4)

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1.9 Interpretation and tabulation:

Definition of interpretation:

"Interpretation is a communication process, designed to reveal meanings  and relationships of

our cultural and natural heritage, through involvement with objects, artifacts, landscapes and

sites."

Definition of tabulation:

“ The systematic and orderly arrangement of facts and figures in columns and rows is called

tabulation. The horizontal arrangements are called rows and the vertical arrangements are called

columns.” 

In the tabulation stage we as a researcher have used cross tabulation.

Cross tabulation

We have also tried to articulate the relation between two different entities.

e.g. : income of cash less and the time spending at which he or she prefer to use general

insurance

We have also presented the information collected from our side in the form of pie charts also so

that a clear ideas about the respondent and the respondents given by them can be obtained.

17

Examples of interpretation:

1. Premium

1 2 3 4 5 6 7 Blank total

No. of

Respondent

43 56 66 52 32 8 1 42 300

% 14.33 18.67 22 17.33 10.67 2.67 0.33 14 100

14.33

18.67

2217.33

10.67

2.67

0.330000000000

00414

premium

1234567blank

Interpretation:

The above mention chart shows that the % of respondents rank premium as a factor they consider

while buying health.ins. 1st rank shows that people give first priority to premium and people who

give 7 rank . for them it is less important.

18

2. Income& cash less benefit:

Income

Rank

<20000 20000-

30000

30000-

40000

>40000 Total

1 16 16 2 4 38

2 23 8 1 6 38

3 21 14 11 7 53

4 10 30 7 11 58

5 14 20 7 5 46

6 3 10 7 1 21

7 1 3 0 0 4

total 102 101 35 34 272

1 2 3 4 5 6 70

5

10

15

20

25

30

35

16

2321

10

14

31

16

8

14

30

20

10

32 1

11

7 7 7

0

46 7

11

5

1 0

income & cash less benefit

<2000020000-3000030000-40000>40000

income

cash

less

19

Interpretation:

Form the above chart we can say that maximum people give 4th rank to cash less benefit for

buying health ins.out of which more people income are 20000 rs to 30000rs and minimum

people give 6th and 7th rank to cash less benefit for buying health ins.

There are total 38 people who give 1st rank to . Out of which 16 people income are <20000, 16

people income are 20000 to 30000. And 2 people income are 30000 to 40000. And also in this

people’s income more than 40000.

There are 38 people who give 2nd rank . Out of which, 23 people’s income are less than 20000.

And 8 people’s income are 20000 to 30000.and 7 people’s income are more then 20000.

There are total 58 people’s who give 4th rank to the premium for buying health insurance out of

which ,3o people’s income are 20000 to 30000.

In this maximum people’s incomes are less than 20000 and 1o1 people’s income’s are 20000

to30000 and 34 people’s income are more then 40000.

There are total 46 people’s give 5th rank. for buying health ins. Out of which 14 people’s income

are less than 20000.

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Chepter:2 Introduction Of Research Area

2.1 INTRODUCTION OF GENERAL INSURANCE:

Insurance is a form of risk management primarily used to hedge against the risk of a contingent,

uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity

to another, in exchange for payment. An insurer, or insurance carrier, is a company selling the

insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The

amount to be charged for a certain amount of insurance coverage is called the premium. Risk

management, the practice of appraising and controlling risk, has evolved as a discrete field of

study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small loss in

the form of payment to the insurer in exchange for the insurer's promise to compensate

(indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract,

called the insurance policy, which details the conditions and circumstances under which the

insured will be financially compensated.

21

A. What is General Insurance?

Insurance other than ‘Life Insurance’ falls under the category of General Insurance. General

Insurance comprises of insurance of property against fire, burglary etc, personal insurance such

as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are

also other covers such as Errors and Omissions insurance for professionals, credit insurance etc.

B. Who should buy general insurance?

Anyone who owns an asset can buy insurance to protect it against losses due to fire or theft and

so on. Each one of us can insure our and our dependents’ health and well being through

hospitalisation and personal accident policies. To buy a policy the person should be the one who

will bear financial losses if they occur. This is called insurable interest.

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(2.2.1) INTRODUCTION OF HEALTH INSURANCE:

DEFINATION: After life insurance, the second most important insurance is health insurance.

As we all are aware of the famous quote :

“HEALTH IS WEALTH “

Health insurance, or health cover, is defined in the Registration of Indian Insurance Companies

Regulations, 2000, as the effecting ofcontracts which provide sickness benefits or medical,

surgical, or hospital expense benefits, whether in patient or out – patient, on an indemnity,

reimbursement, service, prepaid, hospital or other plans basis, including assured benefits and

long – term care.

(2.2.2) INTRODUCTION OF FIRE INSURANCE:

Every business has a specific set of requirements. Our range

of business products is especially designed to meet your

business needs across the commercial spectrum. It is pivotal

to get adequate insurance cover for your business to mitigate

risk.

Fire Insurance is governed by All India Fire Tariff effective from 31.3.2001 issued by Tariff

Advisory Committee, a Statutory Body. It is a commercial policy covering building, offices,

machinery, contents and personal belongings of the office. It mitigates the risk of loss of

customers arising from fire breakout. The insured should take all possible steps to minimize the

loss.

CalculationofFireInsuranceAmount/Premium: The market value of the property is considered

while insuring the sum. The amount of premium depends on a number of factors and individual

policies of different insurers.

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Fire Insurance Claim Procedure: Individuals/corporate must inform insurer as early as

possible, in no case later than 24 hours. Provide relevant information to the surveyor/claim

representative appointed by the insurer. The surveyor then analyzes the extent/ value of loss or

damage. The claim process takes anywhere between one to three weeks.

(2.2.3) INTRODUTION OF VEHICAL INSURANCE:

Insurance Brokers: worked on the basis they could deal with many different Insurance

Companies. Broking had become big business and the development of financial services allowed

customers the simplicity of being able to spread their costs with easy payment schemes.

With the development of these Brokers and the simplicity in payment schemes, little else was

required to make a successful High Street business.On selling their product the insurance brokers

could then receive a commission from the Insurance Company for selling the policy. In the early

years the process of selling a policy to the man on the street was a simple and no hard sell was

used. The customer would walk in off the street and the person behind the counter would simply

give them a price for their motor insurance, based on their knowledge and a set of tables supplied

to them via the Insurance Companies. If the customer were interested the broker would not force

them to buy, they would simply offer them the opportunity of thinking about it.

In the early years of High Street Broking the whole procedure was very much based on the

personal touch. The High Street Broker became a familiar face that offered his regular customers

a friendly service. With the introduction of easy payment schemes, some customers would make

more than one trip to the brokers during the year to pay their installments, which enabled the

brokers to establish themselves just as local shopkeeper would do.

In those days broking was a very manual and paperwork generated process. Although the Broker

would give a relatively quick quote, if the customer wished to go ahead with the policy, the

broker would then have to complete the paperwork relevant to the Insurance Company quoting

the price.The Broker might have 50 or 60 different Insurance Companies to quote from, therefore

50 or 60 different types of proposal forms they would have to learn.

24

When the Broker took the money from the customer the paperwork would then be forwarded to

the Insurance Company. If there were any mistakes on the paperwork the Insurance Company

would have to send it back to the Broker for completion before they could bill the Broker for the

money. As you might imagine, some brokers could often make mistakes on the paperwork,

knowing full well that it would come back, delaying the process.

Insurance in the 1970’s: The expansion and growth of the motor insurance market seemed

endless until a significant day in 1971.

On the 2nd of March 1971 the largest insurer of the day ‘Vehicle and General’, owned by Dr

Emile Saundra, collapsed overnight. At this time there had been a severe winter and Vehicle and

General endured massive claims as a result of the careless regard for the risks they were

underwriting from all the High Street Brokers.

Suddenly the general public found themselves in an unbelievable situation. All those who had

taken policies with the Vehicle and General were now without cover and the High Street Brokers

were besieged with business to replace the cancelled policies. You might have expected the

customer to take out their frustration on the Broker, but the Broker actually thrived from the

situation. There were that many people insured with the Vehicle and General at the time it

collapsed, that the 2nd of March became very significant for the insurance world. Customers

taking out new policies besieged brokers and for many Years to come March became the busiest

period of the year.

During the 70’ and 80’s the High Street Brokers thrived and many household names became well

established, for instance, ‘Swintons’, who were originally started in Swinton, Manchester.Once

again it seemed that nothing would stop the massive growth of Insurance and High Street

Broking until the development of the ‘Computer’ .When Computers appeared of the scene, the

likes of Swintons took full advantage of them. They were able to offer the customer a better and

quicker service than that of the manually generated quote. The broker did not have to have so

much knowledge and they were no able to offer quotes for people who did not live in the close

vicinity of the area. The Insurance Companies also loved this because it meant that the mistakes

made on the manually generated proposal forms were now little and far between, which meant

25

that payment was now being made on time. In offering this to the Insurance Companies the likes

of Swintons could now demand better discounts then the other brokers on the High Street. Before

long Swintons had spread throughout the Country and became the biggest and best known

Broker in Britain.

Computers had developed so much that their use had become very relevant. It seemed that the

industry had undergone the biggest change that could ever happen, until a further, and bigger

revolution occurred in 1985.

The Future of Motor Insurance : The Internet has, and is set to cause a revolution within the

market place because of its interactive online capabilities.

The revolution of the internet will not be as quick as the little red telephone situation in the 80’s

but its arrival marks the start of future communications and therefore a future in the business

world.The Motor Insurance Industry has seen much change over the past 100 years and it is not

taking the prospect of the Internet and its implications lightly. Those who do are likely to be

making a big mistake.

There is clearly a market developing for everyone to get cheaper insurance whether they want

the high street, the call centre or the internet it is clearly a matter of choice at the moment and

who knows where we might be in the next 100 years.The most popular form of marketing and

consumer interest at the present time is the insurance aggregators market place where customers

can go onto price comparison sites such as Moneysupermarket, Confused.com, Uswitch and

GoCompare. By typing in one question set the consumer is then presented with a variety of

insurance prices from which they can then go to that company and purchase their insurance at

competitive rates.One thing is for sure and that is that paper advertising and paper media is dying

and being replaced with online solutions.

26

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 - Rs.16,52,875 (Ex-Showroom Price New Delhi )

The Maruti Suzuki Kizashi comes in single engine and two variants. Kizashi is powered by a 2.4

litre, 4 cylinder 16 valve, DOHC petrol engine.Kizashi comes in two transmission choices: a 6

speed manual and a CVT (Continuous Variable Transmission).The Maruti Suzuki Kizashi

features McPherson strut front suspension and multi-link rear suspension.It features a futuristic

looking dashboard, a dual zone automatic climate control. Kizashi safety features include ABS

with EBD, electronic stability program, Immobilizer with security alarm and Child lock.

 

31

Maruti Suzuki Omni

 - Rs.2,15,655 (Ex-Showroom Price New Delhi )

This multi-purpose vehicle from the Maruti stables offers its owners value for money, low

maintenance, and a trouble-free fun ride. The main choice of variants are: LPG Cargo BS III,

MPI Ambulance BS IV , LPG STD BS III, MPI STD BS IV and E MPI STD BS IV including

BS IV complaints. Metallic versions are also available. A 796cc 3-cylinder engine is standard

and an LPG engine is optional. Interiors include a stylish dashboard and a classic two-tone

upholstery and reclining and sliding front seats.

Maruti Suzuki Ritz

 - Rs.4,19,862 (Ex-Showroom Price New Delhi )

Maruti Suzuki Ritz is the first BS IV complaint car in India. The technologically advanced high

performance engine and best in class fuel efficiency. The variants available are LXI, VXI and

ZXI in petrol and MC LDI and MC VDI in diesel. Available in two engine options- petrol and

diesel. The engines are mated with 5 speed manual transmission. The 1197 cc petrol engine

churns out 83.8 bhp @ 6000 rpm whereas the 1248 cc diesel engine churns out a maximum

power of 73.9 bhp @ 4000 rpm.

32

Maruti Suzuki SX4

 - Rs.7,15,048 (Ex-Showroom Price New Delhi )

The new SX4 is a perfect mid-size sedan that has the perfect combination of style, luxury and

performance. Available in VXI BS IV, ZXI BS IV, Green VXI and Diesel variants LDI, ZDI. A

5-speed manual and 4-speed automatic transmission. Top-quality car upholstery, rear seat centre

armrest and adjustable headrests are some of the interior features of the SX4. Standard features

include tilt adjustable power steering, central door locking, electric windows, electronically

adjustable rear-view mirrors and air-conditioner with heater.

Maruti Suzuki Swift

 - Rs.4,47,893 (Ex-Showroom Price New Delhi )

The Swift offers superior riding comfort, stability and handling coupled with an improvement in

fuel efficiency. Available in six variants: LXI, VXI, ZXI, LDI, VDI and ZDI and two engines

such as petrol and diesel. Notable standard features of Swift are Multi information display, fuel

consumption info, and remote back door opener. Safety features include side door impact beams,

Icats and security alarm system to mention a few amongst many others.

 

33

Maruti Suzuki Swift DZire

 - Rs.4,91,354 (Ex-Showroom Price New Delhi )

The Swift DZire, which comes with an array of 150 new features, is less than 4 m thus qualifies

the excise duty benefits. A flamboyant K-12 series petrol engine loaded with VVT technology

and a D13A DDiS diesel engine powers this car. The variants available are LXI, VXI, ZXI and

AUTOMATIC in Petrol and LDI, VDI, ZDI in Diesel. It comes with the option of 4-speed

automatic transmission along with the 5-speed manual transmission. The safety features present

are ABS with BA and EDC.

Maruti Suzuki WagonR

 - Rs.3,50,880 (Ex-Showroom Price New Delhi )

The WagonR has superior technology, stylish new interiors and a very appealing look as a whole

. The Wagon R is available in petrol and CNG variants featuring the 998 cc K series engine. The

998cc three-cylinder K-series engine can generate up to 68 bhp @ 6200rpm. New L-shaped front

suspension frame is perfect for the Indian roads and driving conditions and allows dynamic

handling and riding comfort. The WagonR features electrically controlled outside rear view

mirror, an HVAC unit that offers superior cooling and a music system with AUX-in and 6 band

graphic equalizer.

34

(2.1.4)INTRODUCTION OF THEFT INSURANCE:

Theft insurance: Beware the fine print!: most people who take out an insurance policy don't

know the implications of the exclusion clauses. In fact they rarely read them, as they are often in

fine print, or illegible. Consequently, they suffer heavily when insurance companies repudiate

genuine claims by referring to an exclusionary clause.

Take the example of Public Type College, which purchased an electronic plain paper copier for

Rs 140,000 and insured it against burglary with the National Insurance Company. During the

subsistence of the insurance policy, the copier was stolen. The locks on the shop's door had been

opened either with duplicate keys or with a set of keys which the owner had earlier lost.

The insurance claim was rejected on the grounds that the theft was not due to burglary or

housebreaking, which according to the insurance company meant a forcible and violent entry. A

complaint filed before the District Consumer Disputes Redressed Forum culminated in an order

to the insurance company to pay Rs 140,000 with 18 per cent interest to the complainant. The

Haryana State Commission, on appeal by the insurance company, upheld this decision and the

insurance company finally took the matter to the National Commission. Adopting a pragmatic

approach, the National Commission observed that "in common parlance burglary is understood

as theft."

The New India Assurance Company, however, repudiated the claim mainly on the plea that the

burglary/theft loss "has arisen out of cyclonic situation" and is not directly relatable to the

burglary of the nature covered under the policy. A complaint was filed before the National

Commission. By its order dated August 4, 2003 the apex commission while directing the

insurance company to pay a compensation of Rs 34.95 lake along with 9 per cent interest

observed that "in our view, a wholly wrong meaning is attempted to be given to this clause

without appreciating the spirit of the burglary policy with the sole objective of ousting the claim

of the insured."

35

Recently, the Supreme Court directed insurance companies to redefine the term "burglary" used

in insurance policies. In the case under consideration, M/s Harchand Ray Chandra Lal of Delhi

had taken out a policy with United India Insurance Company for a sum of Rs 7 lake against

burglary and/or housebreaking with effect from September 22, 1991. On July 2, 1992, one of the

firm's partners discovered the theft of 197 bags of war from the go down and claimed

compensation under the policy. The insurance company rejected the claim saying it was not

covered under the policy as the theft was not presented by violence or force.

After going into the definition of "burglary and housebreaking" as contained in the policy, the

Supreme Court, in its judgment on September 24, 2004 in United India Insurance Co. vs. M/s

Harchand Ray Chandra Lal, said: "In absence of violence or force, the insured cannot claim

indemnification against the insurance company."\ The court went on to state that "it is true that in

common parlance the term "burglary" would mean theft...." but added that "if the element of

force or violence is not present then the insured cannot claim compensation."

Pursuant to the directive issued by the Supreme Court, the insurance companies will soon have to

redefine the burglary clauses. While so doing they must bear in mind that the common man by

taking a policy against burglary and housebreaking understands that he has taken a policy against

theft and doesn't realise that the incident of theft should involve violence or force.

36

(2.1.5) INTRODUCTION OF ACCIDENT INSURANCE:

What is Accidental Insurance?

When I bought my first vehicle; my mom advised drive safe these days accidents are increasing

– hope you would have received similar advice from your parents or given to your kids. Impact

from accident can be as small as a scratch to as big as death – impact can be temporary or

sometime even permanent. Accidental insurance policy covers thisrisk but first check the

definition of accident.

Accident or Accidental means a sudden, unforeseen and unexpected event caused by external,

violent and visible means (but does not include any illness or disease) which results in physical

bodily injury (but does not include mental, nervous or emotional disorders, depression or

anxiety).

Accidental Insurance also excludes suicides, self injury, armed force operations, war etc.

In case of death term plan will help family to cope up with financial hardship but what about an

accident where one looses body parts & that impacts his earning abilities. In such situation

Accidental Insurance can be very helpful.

Features of Accidental Insurance

Yearly Contract: Similar to term plan & medical insurance – accidental insurance is also yearly

contract that you can renew every year.

Maximum Insurance: It depends on your income – some insurance companies give 60-100

times of your monthly income others give 8 to 10 times of your yearly income.

For Non Earning Members: Few insurance companies provide accidental insurance to

dependents but have limitation in sum assured. 25% to 50% of the proposers sum insured with

maximum limits in rupee terms.

Benefits of Accidental Insurance Policy

Comprehensive Accidental Insurance policy provides benefits in 4 cases:

37

Accidental Death

If an insured died due to an accident his nominees will get 100% sum insured. So it’s very

important to have right nominee in any kind of insurance policy whether accidental or life.

Permanent Total Disablement

Some time a person met with an accident & loses his body parts – may not be able to work in

future. In case of Permanent total disability 100% sum insured is given to the insured person. It

covers:

Loss of both hands or both feet or one hand and one foot

Loss of a Limb (hand/foot) and an eye

Complete and irrecoverable loss of sight of both eyes

Complete and irrecoverable loss of speech & hearing of both ears

Permanent Partial Disablement

As the name suggest this benefit is given if someone losses one hand or one leg or even small

body part like finger/toe. For this every insurance company have their own tables – what they

will cover & how much they will pay depends upon the age limit of the person as per policy

documents.

 Temporary total Disablement

 Sometime it can happen that anyone met with some serious accident but there is no permanent

loss. But doctor suggested a complete bed rest of 5 weeks or a complete checkup of any part of

the body. This will impact an earning for a small period so in such case accidental insurance can

compensate for this income loss. Weekly benefit is normally 1% of your sum assured for

maximum 100 weeks. There is also a maximum limit according to your income.

Other small benefits

There are few other benefits that one can get from insurance company – few are priced in the

premium & for others you need to pay additional premiums. These can be like emergency

ambulance charges, education fund for kids, medical expenses, family transportation, imported

medicines etc. You can check more details in below table.

38

Accidental insurance Comparison (Premium & Features)

How accidental policy premiums are decided

Accidental policy premiums do not depend on the age of insured but on his work profile &

working conditions. Occupational classification divides people in 3 levels (I have also added

premiums from Apollo Munich for each category – Sum Assured Rs 25 Lakh)

Level 1 (normal risk) – this includes people who are in administration functions and work in

offices like accountants, bankers, doctors etc. Premium Rs 2600

Level 2 (medium risk) – people who are working as labor in the field. Premium Rs 3600

Level 3 (high risk) – people who work in mines, circus etc will come in the higher risk category.

Premium Rs 5450

39

(2.2) HISTORY OF GENERAL INSURANCE:

The history of general insurance dates back to the Industrial Revolution in the west and the

consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a

legacy of British occupation. General Insurance in India has its roots in the establishment of

Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian

Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of

general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton of

India. The General Insurance Council framed a code of conduct for ensuring fair conduct and

sound business practices.

 

In 1968, the Insurance Act was amended to regulate investments and set minimum solvency

margins. The Tariff Advisory Committee was also set up then.

 

In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general

insurance business was nationalized with effect from 1st January, 1973. 107 insurers were

amalgamated and grouped into four companies, namely National Insurance Company Ltd., the

New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India

Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a

company in 1971 and it commence business on January 1sst 1973.

 

This millennium has seen insurance come a full circle in a journey extending to nearly 200

years. The process of re-opening of the sector had begun in the early 1990s and the last decade

and more has seen it been opened up substantially. In 1993, the Government set up a committee

under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations

for reforms in the insurance sector.The objective was to complement the reforms initiated in the

financial sector. The committee submitted its report in 1994 wherein , among other things, it

recommended that the private sector be permitted to enter the insurance industry. They stated

that foreign companies be allowed to enter by floating Indian companies, preferably a joint

venture with Indian partners.

40

 

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance

Regulatory and Development Authority (IRDA) was constituted as an autonomous body to

regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in

April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance

customer satisfaction through increased consumer choice and lower premiums, while ensuring

the financial security of the insurance market.

 

The IRDA opened up the market in August 2000 with the invitation for application for

registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the

power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000

onwards framed various regulations ranging from registration of companies for carrying on

insurance business to protection of policyholders’ interests.

 

 In December, 2000, the subsidiaries of the General Insurance Corporation of India were

restructured as independent companies and at the same time GIC was converted into a national

re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.

 

 Today there are 24 general insurance companies including the ECGC and Agriculture Insurance

Corporation of India and 23 life insurance companies operating in the country.

 

The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with

banking services, insurance services add about 7% to the country’s GDP. A well-developed and

evolved insurance sector is a boon for economic development as it provides long- term funds for

infrastructure development at the same time strengthening the risk taking ability of the country.

 

 

 

41

(2.2.1) HISTORY OF HEALTH INSURANCE:

In between the 1950's and 1980's the Health care facilities

and personnel increased substantially, but gradually due to

the fast population growth, the number of licensed medical

practitioners per 10,000 individuals had fallen in the 1980's

to 3 per 10,000 from the 1981 level of 4 per 10,000. There

were approximately ten hospital beds per 10,000 individuals

in 1991. Primary health centers are majorly the cornerstone

of the rural health care system.

In the year 1991, India constituted about 22,400 primary health centers, 11200 hospitals, and

27,400 dispensaries. Such facilities were the part of a tiered health care system which funnels

more difficult cases into urban hospitals while attempting to provide routine medical care to the

vast majority in the countryside. Primary health centers and sub-centers would majorly rely on

trained paramedics to meet most of their needs.

Indian healthcare industry operates in both of the private and public sectors. The public sectors

are healthcare system consists of facilities run by the central and state governments. The

facilities are provided freely or at subsidized rates to lower income families in rural and urban

areas. However, further the Indian healthcare industry is going through a growth phase due to its

healthy economy. As the country's middle class continues to grow this industry's growth will

increase. India's ever-growing middle class are able to afford quality healthcare. With such an

increased ability to pay for better healthcare, the demand for healthcare services has grown from

4.8 billion in 1991 to $22.8 billion in 2001-2002. Today 50 million Indians are able to afford

western medicine and over 150 million have annual incomes of more than 1000 US dollars.

42

Indian health care industry growth story is moving ahead

neck to neck with the pharmaceutical industry & the

software industry of the nation. There has been much done in

the health care sector for bringing the improvement like till

date, approximately 12% of the scope offered by the industry

has been tapped. In the years to come the health care

industry in India is reckoned to be the engine of the Indian

economy. Today the Health care industry in India is worth

$17 billion and there are anticipation & expectation of it to

grow by 13% every year. The health care sector consists of

health care instruments, health care in the retail market,

hospitals enrolled to the hospital networks. etc.

Indian healthcare Industries include systems like ayurveda and homeopathy which are

increasingly gaining prominence overseas. Another major area for investment in India is the

research industry of the Health Care. In India there is tremendous prospects with a huge talent

pool and the rise of biotechnology and bioinformatics. India is a rising and expanding destination

for medical tourism. With affordable medical expenses and a sound technology in place goes

good with the growing sector which would be bode well for the healthcare industry in India.

Total contribution to the economy/ sales

Indian Government Expenditure on health care is the highest amongst all the developing

countries. The expenses of this industry comprise 5.25% of the GDP. There are even chances

that the health care market could experience a hike and attain a figure ranging between $53 to

$73 billion five years later. Which would in turn reflect an increase in the gross domestic product

to 6.2%. The Indian Health Care Industry earns revenues accounting for 5.2% of gross domestic

product.

43

 Top leading Companies: Private players have made significant investments in setting up of the

private hospitals in cities like Mumbai, New Delhi, Chennai and Hyderabad. There is emergence

of latest medical technology and have created a competitive environment. The government's

share in the healthcare delivery Industry is 20 % while 80 % is in the private sector. The

Emergence of corporate hospitals has led to increased professionalism in medical practices and

use of hospital management tools.

Apollo Group

Fortis

Max

Wockhardt

Piramal

Duncan

I spat

Escorts

Ranbaxy Group Company

 Employment opportunities: Indian Health Care Industry provides employment opportunities to

as many as 4 million people in the health care segment or other related sectors catering to the

needs of the medication. India has become one of the favorite for health care treatments which is

owing to the vast differences in medical expenses in western countries. Due to the Indian

progressive nature of the health care sector several foreign companies are intending to even

invest in the country. Health Care jobs are considered to be one among of the most noble career

options which is known to be the single largest profession all around the world.

There are numerous medical complexities and the need for advanced medical care have

necessitated the recruitment of qualified and experienced medical professionals in this field such

as doctors, physicians, medical assistants, radiologists, cardiologists, anesthesiologists, and

surgeons. There are immense opportunities for Doctors, Resident Doctors, Surgeons, Physicians,

and Physical Therapists & Dentists. Vital information on Hospitals are provided by employment

agencies who help people register as healthcare workers, Medical recruiting agencies, travel &

resettlement agencies and local recruiting.

44

India is a country of rich heritage and culture. With its vast geographical expanse, varied climatic

conditions, and environment, India has been home to many ancient civilizations and many a

ways of life. From different religions, languages, cuisines, climates to societies, India has been

amassing and evolving rich diversity and cultural ethos that are unparalleled in other regions and

countries.

Where there was man, there was a need for medicine. Since India has been cradle to ancient

civilizations and early organized settlements; Medicine, as it is today, is but the cumulative

knowledge gathered since centuries, along with the evolution of man.

Health is defined as the physical, mental, emotional, spiritual and social wellbeing of an

individual. Based on this definition, it is but obvious that health and healthcare were present

since the time of man. Historical texts are replete with citing and references of healthcare

practices since time immemorial.

History of Indian Insurance Market (Life and Non-life):

Insurance in India goes back to the time of the British. The first life insurance company to

operate in India -the Oriental Life Insurance Company was established in 1818in Calcutta. It

was, however, a British company. The first Indian insurance company, the Bombay Mutual Life

Assurance Society starteditsoperations in1871. In 1956.The Indian life insurance industry was

made-up of 154 domestic life insurers, 16 foreign life insurers and 75 provident funds, and was

still governed by the Insurance Act of 1938.In 1956 all life insurance companies were

nationalized, the story of non-life insurance in India is no different. Though

Lloyd.sInsurancepioneered general insurance way back in 1688, the first non-life insurance

company to set up shop in India was the Triton Insurance Company of Calcutta. In1907, the first

Indian general insurer, the Indian Mercantile Insurance Company started its operations. The New

India Assurance Company Ltd. was incorporated in1919.In 1972, the non-life insurance business

in the country was nationalized and the GIC (General Insurance Corporation of India) was

formed as a holding companywithfoursubsidiaries: The National Insurance, Oriental Insurance,

United India Insurance and the New India Assurance Company Ltd.Since then, insurance in

India had a protective wall built around it, to keep it a local players. Market. The above

companies controlled the insurance industry for nearly30 years or so.

45

(2.2.2)HISTORY OF FIRE INSURANCE:

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu

( Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kantilla ( Arthasastra ). The writings talk in

terms of pooling of resources that could be re-distributed in times of calamities such as fire,

floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient

Indian history has preserved the earliest traces of insurance in the form of marine trade loans and

carriers’ contracts. Insurance in India has evolved over time heavily drawing from other

countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment of the Oriental

Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the

Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870

saw the enactment of the British Insurance Act and in the last three decades of the nineteenth

century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in

the Bombay Residency. This era, however, was dominated by foreign insurance offices which

did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and

London Globe Insurance and the Indian offices were up for hard competition from the foreign

companies.

 

In 1914, the Government of India started publishing returns of Insurance Companies in India.

The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life

business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to

collect statistical information about both life and non-life business transacted in India by Indian

and foreign insurers including provident insurance societies. In 1938, with a view to protecting

the interest of the Insurance public, the earlier legislation was consolidated and amended by the

Insurance Act, 1938 with comprehensive provisions for effective control over the activities of

insurers.

 

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a

large number of insurance companies and the level of competition was high. There were also

46

allegations of unfair trade practices. The Government of India, therefore, decided to nationalize

insurance business.

 

An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life

Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16

non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. The

LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

 

The history of general insurance dates back to the Industrial Revolution in the west and the

consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a

legacy of British occupation. General Insurance in India has its roots in the establishment of

Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian

Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of

general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton of

India. The General Insurance Council framed a code of conduct for ensuring fair conduct and

sound business practices.

 

In 1968, the Insurance Act was amended to regulate investments and set minimum solvency

margins. The Tariff Advisory Committee was also set up then.

 

 In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general

insurance business was nationalized with effect from 1st January, 1973. 107 insurers were

amalgamated and grouped into four companies, namely National Insurance Company Ltd., the

New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India

Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a

company in 1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending to nearly 200 years.

The process of re-opening of the sector had begun in the early 1990s and the last decade and

47

more has seen it been opened up substantially. In 1993, the Government set up a committee

under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations

for reforms in the insurance sector.The objective was to complement the reforms initiated in the

financial sector. The committee submitted its report in 1994 wherein , among other things, it

recommended that the private sector be permitted to enter the insurance industry. They stated

that foreign companies be allowed to enter by floating Indian companies, preferably a joint

venture with Indian partners.

India’sPublicSectorABriefHistory: In the Indian context, Public Sector or the PSEs primarily

constitute the corporate bodies where 51 percent or more equity is held by the government,

created under the special acts of legislature, or registered under the Companies Act, 1956. The

Indian stake of Public Sector is huge considering the nationalized banks, financial institutions,

insurance companies defense enterprises, and transport undertakings. Even the railways and

airways are repositories of massive public investment.

Two hundred years of colonial rule crushed Indian Industry and exhausted resources. At the

point of Independence, the leadership was convinced that political freedom without economic

freedom was of little use. However, most of the private entrepreneurs did not have the vision,

resources or capability or even the will to undertake heavy investments in core sector industries

which have long gestation periods. Besides, given the ideological environment and shortage of

supplies, it was only natural for the government not to choose a system controlled by the private

enterprise.

Initially, the public sector was confined to core and strategic industries. Projects like the

Damodar Valley Cooperation, Sindhri Fertilizers and Chemicals, Indian Telephone Industries,

Hindustan Machine Tools, steel plants, aircrafts, shipbuilding, Bharat Heavy Electricals, Oil and

Natural Gas Commission, and a host of others. The second phase saw mainly three trends, a

nationalization spree, and takeover of sick units from the private sector, and entry of the public

sector in new fields like, manufacturing consumer goods, consultancy, contracting, and

transportation etc. Many foreign firms like Jessop & Co, Braithwaite & Co, Burn & Co etc were

nationalized. Several hundred life insurance companies were absorbed into the Life Insurance

Corporation. Hundreds of coal mines were transferred to the Coal Mines Authority. Then the

public sector entered into fields like making medicine, weaving cloth, and running hotels. During

the 1970s and 1980s the growth was phenomenal, wherein it undertook works like providing

48

power and potable water, laying roads, constructing townships with basic amenities like schools,

markets, hospitals and recreation clubs.

The public sector attracted the best talent in the country. It not only provided jobs to people in

different regions, but invariably employed all the displaced people as well.

The public sector has to a large extent succeeded in meeting the objectives and laying a strong

foundation for the industrial development of the country. It is widely recognized that the public

sector management is based on strong systems and processes which is not usually the case with

the private sector. At the height of its development, the public sector was less concerned with

making profits and more with nation building activities. Also, huge investments were made in

sectors which did not promise adequate return on the capital invested.

Post-1991, with declining revenues, and budgetary gaps, the government withdrew its budgetary

support, and increased the pressure on them to produce profits, and thus dividends. While, their

social and other gains were taken for granted, PSEs were criticized for not producing adequate

profits and for entering into fields like Tourism and food supplies. This was partly the result of

the global movement to private industry.

Over the years, a focused bureaucratic and inflexible approach led to the sapping of the

autonomy. Somewhere down the lane, the government lost clarity in its roles of governance, as

investor, regulator and business manager. The government paid little heed to the constitution of

the board of directors, and hardly empowered them.There are a large number of private sector

units today, where ownership rests with government owned finance institutions. These

companies are not hampered by bureaucratic control, and therefore are able to perform much

better. Privatization may have served as a panacea to some of the developed countries, but a

country like India has to find its own solutions bearing in mind its needs. There is a virtue in

following a middle path.

The insurance industry in India has undergone a sea change ever since it was decided that

foreign direct investment will be allowed in this sector till a maximum limit of 26 percent. Since

then the insurance industry has become a prosperous domain. However, the Union Government

still owns several insurers who are the major players in the market

49

Insurance Provider- Overview and History

One of the earlier insurance companies of India was the Oriental Life Insurance Company, which

was set up by Anita Bhavsar. Based in Kolkata, the company was meant to cater to the

Europeans. In the pre-independence era the Indians were supposed to pay higher premiums than

the foreigners. 

The first Indian insurer was Bombay Mutual Life Assurance Society, which was set up in 1870.

The start of the 20th century saw several new insurers in India. The Life Insurance Companies

Act and the Provident Fund Act were passed in 1912 for regulating the insurance industry. 

As per the Life Insurance Act 1912 it became mandatory for the periodic value of an insurer and

premium rate tables to be determined by an actuary. But, there was still some inequity between

the treatment meted out to Indian and the international insurers. At present National Insurance

Company, established during 1906, 

The Indian government passed an ordinance on January 19, 1956 whereby the life insurance

sector was nationalized and the Life Insurance Corporation (LIC) came into existence. 

LIC was created by the amalgamation of the following:

154 Indian insurers

75 provident societies

16 non Indian insurance companies

The Indian parliament passed the General Insurance Business (Nationalisation) Act in 1972 and

the general insurance sector was brought under governmental control from January 1, 1973. 107

insurers were collated and grouped into 4 insurers:

National Insurance Company

50

Oriental Insurance Company

New India Assurance Company

United India Insurance Company

LIC was the major company till 1990s when the insurance sector was opened for the private

players. From December 2000 onwards the 4 companies of GIC were delinked from itself. 

After the government announced the inclusion of private companies and 26% FDI in the

insurance industry, the life insurance sector has done commendably, especially in terms of

growth. LIC has been the major name in this sector but other insurers like Bajaj Allianz, Birla

Sun Life, and HDFC Life have gained a certain level of prominence as well. 

Bajaj Allianz Life Insurance: Bajaj Allianz is one of the leading names when it comes to

growth among the privately held life insurers in India. It has more than 1200 branches across the

country and provides unit linked, child, traditional and pension life plans.Birla Sun Life

Insurance: Birla Sun Life Insurance is one of the leading life insurers in India among the

privately held organizations. It is one of the major contributors to the country's insurance sector

with ground breaking products and facilities such as Unit Linked Insurance Plans, free look

periods, and business continuity plans.

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HDFC Life: HDFC Life is among the best private life insurers of India and provides both group

and individual insurance products. It has a substantial financial expertise that helps it to properly

administer long term investments. It is present in excess of 700 cities and has almost 568

branches. It also has approximately 2 lakh financial consultants and offers several customized

plans.

ICICI Prudential Life Insurance : ICICI Prudential Life Insurance is among the earliest private

life insurers to operate in India. It started functioning from December 2000 onwards following

the consent of IRDA. Since its establishment the organization has underwritten more than 10

million policies. As per IRDA data it is also a leading insurer in terms of market share.

ING Vysya Life Insurance:The head office of ING Vysya Life Insurance is at Bangalore and

has, of late, completed 10 years in India. It is a joint partnership of ING Insurance International

BV, and Exide Industries. At present it has more than a million policy holders across the country

in addition to offices in at least 200 cities across the country.

Life Insurance Corporation

Life Insurance Corporation is the biggest investment company and insurer in India. It is owned

wholly by the Indian government and the insurer provides almost 24.6 percent of the aggregate

expenditure of the national administration. It owns assets worth almost INR 13.25 trillion. It was

incorporated during 1956 by merging together more than 240 provident societies and insurers.

Max Life Insurance: Max Life Insurance started its operations during 2001 and is presently one

of the leading names among the privately held life insurers in India. It offers both group and

individual based life products and operates across the country with a wide distribution network.

It is a joint venture of the Japan based Mitsui Sumitomo Group and Max India, an Indian

conglomerate. The other life insurance companies in India may be mentioned as below:

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1. Aviva Life Insurance

2. Sahara India Life Insurance

3. Shriram Life Insurance

4. Bharti AXA Life Insurance

5. Future Generali India Life Insurance

6. IDBI Federal Life Insurance

7. Canara HSBC Oriental Bank of Commerce Life Insurance

8. Met Life India Insurance

9. AEGON Religare Life Insurance

10. Kotak Mahindra Old Mutual Life Insurance

11. DLF Pramerica Life Insurance

12. SBI Life Insurance

13. Star Union Dai-ichi Life

14. Tata AIA Life Insurance

15. India First Life Insurance

16. Reliance Life Insurance

The general or non life insurance sector of India is primarily dominated by health insurance.

However, with the levels of disposable income increasing among Indians, other forms of

insurance like travel insurance and standalone accident policies are gaining ground as well. 

The leading general insurance companies functioning in India may be mentioned as below:

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Bajaj Allianz General Insurance: Bajaj Allianz General Insurance got its certificate of

registration from the Insurance Regulatory and Development Authority (IRDA) on May 2, 2001

to initiate general insurance operations in India and this permit included health insurance as well.

The insurer owns a paid up and authorized capital amounting to INR 110 crores.

ICICI Lombard General Insurance: Among the private sector general insurance organizations

of India, ICICI Lombard occupies the top spot, which it has achieved in a short span of time. It is

also the first organization in India to have been conferred the certification of ISO 9001:2000. It

has also been assigned an iAAA rating by ICRA that shows its credit potential.

IFFCO Tokio General Insurance :Established on December 4, 2000 IFFCO Tokio has its

headquarters at Gurgaon, Haryana. It is one of the leading general insurers in the private sector

of India and operates across the country with 100 offices. It is a joint venture of Tokio Marine &

Nichido Fire Insurance Group, the biggest listed insurer from Japan, and Indian Farmers

Fertiliser Cooperative Limited and its associate organizations.

National Insurance: National Insurance is among the quickest and biggest growers among the

general insurers operating in India. The head offices of the insurer are at Kolkata - the bank was

nationalized during 1972 following its establishment in 1906. It has almost 1000 offices across

India and employs in excess of 16 thousand well trained professionals.

New India Assurance: As far as gross premium collection including foreign operations is

concerned New India Assurance is one of the biggest general insurers of India. The insurer is

headquartered at Mumbai and is one of the various public sector insurance providers in the

country. Dorab Tata established the company in 1919 and it was nationalized in 1973.

Oriental Insurance: Oriental Insurance was established on September 12, 1947. Its headquarters

are at New Delhi and it also has approximately 1000 offices spread across India. Besides it

operates in Nepal, Dubai, and Kuwait as well. It has almost 16 thousand employees. At present it

is wholly owned by the Union Government of India.

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Reliance General Insurance : Reliance General Insurance is one of the leading privately held

financial services providers in India. It is one of the 3 leading banking companies and financial

services providers in the private sector when it comes to net worth. It offers in excess of 94

customized products and serves corporate, individuals, and small and medium enterprises.

Following are the other general insurers operating in India:

1. HDFC ERGO General Insurance

2. Export Credit Guarantee Corporation of India

3. Agriculture Insurance Company of India

4. Star Health and Allied Insurance

5. Apollo Munich Health Insurance

6. Future Generali India Insurance

7. Universal Sompo General Insurance

8. Royal Sundaram Alliance Insurance

9. Shriram General Insurance

10. Tata AIG General Insurance

11. Bharti AXA General Insurance

12. United India Insurance

13. Max Bupa Health Insurance

14. Cholamandalam MS General Insurance

15. L&T General Insurance

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(2.2.3) HISTORY OF VEHICAL INSURANCE:

In this section we have written a basic history of car insurance to show you how the same has

developed over the years and how it is likely to continue into the future.

The Birth of the Motor Car :Motor vehicles made their first spluttering appearance at the turn

of the 20th Century but during the first years there was no requirement or consideration for the

need of Insurance in any form.

In the early years of motoring there seemed little need to consider the implications and

requirements of insurance. In fact the first vehicles to hit the open road were so cumbersome and

slow, the common horse and carriage was considered much more efficient and faster at the time.

As with any technology, interest soon developed and the motor vehicle was developed and

improved at an alarming rate. Within a short space of time the future of the motor car was

guaranteed and its future uses were being heavily considered.

Car Insurance During the First World War: By the time of the First World War in 1914 the

motor car had developed dramatically and its role was considerable during the conflict.As a

result of the war, many people were trained to drive the vehicles used in action. The implications

of this meant a dramatic increase of interest in the motor vehicle.

By the end of the First World War (1918) people were returning from the conflict with an

interest to continue their driving experience.Even at this stage in time, no compulsory

requirement for motor insurance existed.

The price of a motor vehicle was certainly out the price range of the common man until the

availability of hire purchase in the 1920’s.Hire purchase suddenly opened the gateway for many

to afford their own motor vehicles and within a short space of time; they became a common sight

on the roads of Britain.

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Road Traffic Accidents: Due to the poor standards of driving skills and little road discipline,

accidents soon became a common sight on the roads of Britain.A situation soon became apparent

in the fact that many who had taken on the cost of buying their own vehicles were now finding

themselves out of pocket if their vehicles were damaged or destroyed.

The other side to this was the total lack of compensation for those innocent victims involved in

these road traffic accidents, this situation led to the introduction of the first ‘Road Traffic

Act’.By 1930 the situation had escalated to such proportions that the government of the time

introduced the first ‘Road Traffic Act’.

In basic form the Road Traffic Act made it compulsory for vehicle owners and drivers to be

insured for their liability for injury or death to third parties whilst their vehicle was being used on

a public road.Motor Insurance had appeared sometime before this but it had not been

compulsory.

Composite Insurers

(Beginning to mid 20th Century):

Large ‘Composite’ insurers were dealing with most of the motor insurance business being

handled at his time.

Composite Insurers were those dealing with several types of Insurance i.e.

Home insurance, life etc. For example: whoever insured you for anything at the time you would

approach to insure your vehicle as well.

There was very little competition in the market during this time.

With the monopoly in trade available the Composite Insurers pooled together all their statistics

and results to devise a schedule of rates and conditions.

Each insurer had to abide by these so as to eliminate any competition. Prices were set and

charged at the same rate by all the Composites.

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In addition to this, all policy conditions were set the same and all discounts set the same.

Tariff

Together these companies formed the Insurance ‘Tariff’ (The restraints implemented by the

Tariff divided the market and some insurers refrained from joining. This gradual breakaway

eventually led to the eventual dissolution of the Tariff in 1968)

Competition to the Tariff

During the early years two main groups remained outside the ‘Tariff’. These were:

The ‘Non Tariff’

Lloyds of London

The Non Tariff - They offered cheaper rates and variable discounts. The lower premiums forced

the Non Tariff to be more selective to underwriting, and to accept only the better risks. To keep

costs down the Non Tariff had economy administration and stricter claims procedures. Because

the Tariff had set the rules and conditions they were able to accept the higher risk business.

Lloyds of London - Probably the best-known name in the Insurance world and established by a

man named Edward Lloyd from a coffee shop in London. Once developed, Lloyds had an

individual approach to insurance and specialised in ‘schemes’. For instance: Special schemes for

Post Office workers, Clerical Staff and certain ‘types’ of vehicle were available. Lloyds were

substantially different to other insurers in the way they worked and in the service they offered.

Lloyds sold their product via the broking system. Brokers were those who sold the product on

behalf of the underwriting Insurance Company. At the turn of the Century Lloyds had already

established a substantial trade in ‘Fire’ and ‘Marine’ trade. (At this period in time Britain had the

largest maritime merchant fleet in the world, therefore marine insurance was given huge priority

at the turn of the 20th Century.) Lloyds had established a style of business involving

‘Syndicates’. The syndicate was made up of ‘Names’ who invested into the syndicate in the hope

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of receiving a dividend from the profit Lloyds would make. They also had to take the risk that

Lloyds would make a loss through bad business and excessive claims which might then leave

them liable to cover the costs. A classic example of this occurred in February 1989 when Britain

was hit by severe winds that caused Billions of pounds worth of damage. Lloyds who had long

been established found it easy to adapt to the new motor business and with the other ‘Non Tariff’

Companies they profited from this new market. One man, the ‘Underwriter’, held the

responsibility of making or breaking business in the Insurance world. He was responsible for

predicting what market would make them money and they are often referred to as ‘God’.

Insurance During the Second World War

During the 2nd World War there was a dramatic reduction in business due to the massive petrol

shortages and the recruitment of so many into action.

Unlike the First World War, which saw a revolution in the development of the Motor industry,

this War had an adverse effect on the motor industry and the motor insurance market, which

established itself over the last 9 years.

The Second World War ended in 1945 and it appeared as though time had stopped because the

motor insurance market picked up where it had left off in 1939.

Although the business of Insurance broking had been long established. A boom in motor

Insurance Broking occurred during the 1960’s. Lloyds as we have established relied on the

service of brokers to sell their product.

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(2.2.4) HISTORY OF THEFT INSURANCE:

Statistics say that identity theft is much more common now than it has ever been in the past. This

is largely due to the advent and widespread use of the internet. However, identity theft did not

begin over the internet. Long before the internet was around, identity thieves could steal your

identity through "dumpster diving," or going through your trash to find personally identifying

information on papers you had thrown out like bills and other documents.

They could also use phone scams to find out your personally identifying information. For

example, an identity thief could phone someone and tell that person that she had won a prize and

he (the thief) just needed some personal information like her birth date or social security number

to verify her identity. The thief could then use this information in whatever way he chose. Now,

with the advent of the internet and other technology, identity theft has become more common,

easier to perform, and safer to perform without getting caught.

 The Rapid Growth of Theft: Identity theft is widely considered to be the fastest growing crime

in the world. The rapid growth of identity theft is due to multiple ways in which the ways we live

our lives and process information have been changed. All of these changes make it easier for

others to access our personally identifying information and ultimately take hole of our identities.

The internet has made transmission of our personally identifying information quick and easy, and

sometimes less secure. We can access band and credit card accounts online, pay bills online, and

shop and make credit card transactions online. All of these processes make things quicker and

more convenient, but they also pose risks to our personal information. Individuals can create

spyware that is installed on our computers when we install freeware or other programs off the

internet. This spyware can collect information about what sites we are going to, what passwords

we are using, and what information we are transmitting, and then send it to someone else. This

person can then use our personal information himself or sell it to someone else. Certain types of

spyware called "Trojan horses" can even allow their inventors remote access to our computers

and hard drives.

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When we make online credit card transactions, online retailers store our contact and credit card

information in databases we assume to be secure. Marketing agencies collect information on out

spending habits as well as contact information and personal information. This is stored in

databases we assume to be secure as well. However, malicious employees of these types of

companies may have access to our information. They may be bribed to give out our information

or they may even take this information for their own use or sell it to others.

Postal mail poses a threat as well. Credit card companies overflow customers and potential

customers with pre-approved credit cards and courtesy checks meant to be used in place of the

customer's credit card. If this mail is not opened and destroyed (preferably using a shredder)

properly, identity thieves can rummage through your trash and take your credit for their own use.

In the United States, social security numbers are also being used as a means of personal

identification more commonly than in the past. And the more these valuable identifiers are used,

the easier it is for someone to get a hold of yours and use it for himself. This rapid rise in identity

theft means that it is important to learn how to protect yourself from identity theft by adopting

simple prevention habits. You don't want to become a victim of identity theft yourself!

(2.2.5) HISTORY OF ACCIDENT INSURANCE:

Persons between the age group of 5 - 60 years can be covered under this policy.

Coverage of Self is mandatory.

Coverage is available for self, spouse and dependent children.

Renewals up-to 70 years for self and spouse & Up-to 21 years for dependant children.

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Cover for Death - In the unfortunate event of death of the insured due to an accident, the entire

Sum Insured will be paid to the nominee.

Cover for Permanent Total Disability  - In the unfortunate event of permanent total disability

of the person due to an accident, we will pay the entire Sum Insured to the person.

Cover for Permanent Partial Disability - In the unfortunate event of permanent partial

disability of the person due to an accident, we will pay a certain percentage of up to 100% of the

Sum Insured, depending on the extent of disability.

Cover for Temporary Total Disablement - Weekly Benefit for accidents resulting in home

confinement up to 104 weeks.

Cover for Accident Hospitalization - Hospitalization expenses due to Accident resulting in

claim for Death / Disablement* (*Applicable only for Sum Insured Rs.25 lacs and above)

Cover for transportation of mortal remains - In the unfortunate event of accidental death, we

will pay the nominee a sum of up to Rs. 5000 towards transportation of the mortal remains to

residence.

Education Grant - In case of death or permanent total disability, we will pay an education grant

for the benefit of dependent children of up to Rs. 5000 per child (for up to 2 children).

 

Discount of up to 10% on insuring 3 or more family members.

In a claim-free year, if the Policy is renewed without any breaks, the benefit under Death and

Permanent Total Disablement coverage will be increased by 5%, up to a maximum of 25%.

 

An Accident Insurance offers you the much needed financial security you want to give your

family. Personal accident insurance does not stop with death benefits but also avail cover for

other consequences like permanent total disability, permanent partial disability and temporary

total disability. The amount not only helps you recover but manage your day to day life as well.

 

An accident can disrupt many plans you have for yourself and your loved one’s future.

Our accident insurance plan offers you the financial stability that becomes essential in such

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cases. The sum assured offered by the accident insurance policy becomes a major support and

can save you from the financial crisis.

 

Accidents can happen to anyone, anytime. It takes only seconds or minutes to happen, but may

take away the savings of many years, as aftermaths of accidents can be severe. In such a

scenario, don't stretch your savings. Get your life back on track, with the financial backing of

Royal Sundaram Personal Accident Insurance.

 

Our Accident Insurance offers global cover of up to Rs. 75 Lakhs, protecting families from

financial instability in case of disability or death of loved one due to an accident.

 

Any Indian resident who falls in the age group of 18 years to 60 years, can avail this Personal

Accident Insurance Policy. You can also insure your dependent children between 5 years to 21

years.

Get a discount of 10% on total Premium on buying these policy online, for 3 or more family

members..

 

In the unfortunate event of death of the Insured person, the entire Sum Insured will be paid to

the Insured person's nominee. We request you to ensure that you provide a nominee for every

family member insured under Personal Accident Insurance.

In the unfortunate event of permanent total disability of the Insured person, the entire Sum

Insured will be paid to the Insured person

In the unfortunate event of permanent partial disability of the Insured person, a certain

percentage of  the Sum Insured will be paid to the Insured person. It is determined by the extent

of loss. You can get more information about it in the Terms and Conditions page.

Weekly benefit for accidents resulting in home confinement up-to 104 weeks (Weekly Income

Benefit)

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Hospitalization expenses due to Accident resulting in claim for Death/Disablement (Applicable

only if proposer has opted for Sum Insured of Rs.20 lacs and above).      

Accidental insurance is one of the most ignored insurance category in India. As we all know

majority people buy insurance either for tax planning or investment purpose but unfortunately

both these benefits are not available in Accidental Policy. But does that mean you should not

buy accidental Insurance. Think..

 This article will cover:

What is personal accidental insurance & its features

Benefits of accidental insurance

Comparison of accidental insurance policies

How premiums are decided in accidental policy

Insurance is the foundation of any financial life – a person who is having dependents must first

completely insure himself & then only should start thinking about investments. We should know

that term plan is not for us but for our family and medical insurance is for us. So one should

buy term plan when he is having dependents but medical insuranceis must for everyone. If we

talk about accidental insurance it is equally important for us & family.

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How accidental policy premiums are decided

Accidental policy premiums do not depend on the age of insured but on his work profile &

working conditions. Occupational classification divides people in 3 levels (I have also added

premiums from Apollo Munich for each category – Sum Assured Rs 25 Lakh)

Level 1 (normal risk) – this includes people who are in administration functions and work in

offices like accountants, bankers, doctors etc. Premium Rs 2600

Level 2 (medium risk) – people who are working as labor in the field. Premium Rs 3600

Level 3 (high risk) – people who work in mines, circus etc will come in the higher risk category.

Premium Rs 5450

You can see as category changes premium substantially increases – this premium doesn’t

include service tax.

Premiums can be down if you are applying as family or group.

Other ways to buy Accidental Insurance

We Indians love thali system & concept of free – but let me remind you again that there is no

free lunch. From thali system I mean that people try to add accidental insurance as rider with life

insurance but my suggestion is you should keep both these insurance separate.  This will give

you a proper comprehensive insurance at lesser price. Manshu has written a good article How

much insurance do you need?

Some time you can also get accidental insurance with some credit card or even from few of

the mutual fund companies. Here my suggestion is one should not count this insurance because

this will give you an illusion that your insured. But actually you never know when you are

discontinuing your mutual fund or surrendering your credit card.

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(2.3) POLICY OF GENERAL INSURANCE:

In the current scenario, Insurance is much more than just life cover. Over the years it has

successfully identified the growing needs for security of its customers and in the process has

covered each and every aspect of our life. Today insurance policies envelops everything ranging

from robberies to wedding, shops to assets, travel to vehicles, etc. With the initiation of Triton

Insurance Company of Calcutta, general insurance industry in India saw the emergence of India's

first general insurance house. 

General Insurance in other words is a non-life insurance which insures everything excluding life.

Health, Holiday, Accident, Travel, Mortgage Protection, etc are some of the aspects that General

Insurance covers. As compared to the normal life insurance policies, general insurance policies

function in a different method. 

Why are more people taking insurance policies?

One of the major reasons for an increasing number of people availing insurance policies in India

is the growing level of awareness. People nowadays value their lives, their health, and their

families even more than before given the tough economic circumstances and so want to make

sure that everything is fine even if they are not there. 

Yet another reason for the growing popularity of insurance policies is the benefit of tax

exemption that is provided to family oriented and individual plans. Majority of the private

insurers also provide lucrative returns and are now being availed by a section of the Indian

society with greater disposable earnings. 

There is an aspect of psychological comfort attached to the insurance policies as well - whenever

an insurance is availed the policyholder can be more or less assured of a safe future for that

particular part of his or her life. 

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Top Insurance Policies

Following are the featured insurance policies of various insurers in India:

Company Product

LIC Jeevan Vaibhav

ICICI Prudential ICICI Pru iCare

Reliance General Insurance Reliance Private Car Insurance Reliance Travel Care for

Students

Bajaj Allianz CashRich

Family Floater Health Guard Plan

Car Insurance

HDFC Life Click2Protect

HDFC LIFE SMART WOMAN PLAN

Tata AIG Insurance TataAIGMotorInsurance

TataAITravelInsurance

Tata AIG Wellsurance Family

Kotak Life Insurance KotakAssuredProtectionPlan

KotakAssuredIncomePlan

Kotak Assured Investment Plan

Aviva AvivaHealthSecure

Aviva i-Life

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Future Generali FutureGeneralSmartLife 

Future Generali Health Suraksha

MetLife RetirementPlans 

Met Monthly Income Plan

Star Union Dai-ichi Life Insurance Suraksha Kavach

Shriram Life Insurance ShriLife

WealthPlus

MoneyBack

Shriram Ujjwal Life SP

Bharti AXA Bharti AXA Life eProtect

Aegon Religare iTerm

IDBI Federal Termsurance

Wealthsurance 

Childsurance

Lifesurance

Healthsurance

Incomesurance

Loansurance

Homesurance

Bondsurance

Microsurance

Canara HSBC OBC Life Insurance DreamSmartPlan

GrowSmartPlan

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FutureSmartPlan

SecureSmartPlan

Smart Sanchay Plan

DLF Pramerica Life Insurance IncomeRakshak

DLFPramericaFamilyIncome

DLFPramericaFamilyFirst

DLF Pramerica U-Protect

IndiaFirst Life Insurance IndiaFirst Maha Jeevan Plan

Sahara Life Insurance Sahara Vatsalya-Jeevan Bima

Apollo Munich Health Insurance OptimaRESTORE

Star Health Insurance FamilHealthOptima

StarUniqueHealth 

Senior Citizen Health Insurance

IFFCO TOKIO General Insurance AutoProtectorPolicy

Individual Medishield Policy

New India Assurance Householder'sPolicy

MotorInsurancPolicy

OverseasMediclaimPolicy

Fire&MachineryPolicy

IndustrialAllRiskPolicy

Shopkeeper's Policy

Oriental Insurance Oriental's Motor Insurance Policy

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Happy Family Floater Scheme

National Insurance Car Insurance

Cholamandalam MS General

Insurance

CholaMSPrivateCar

CholaMSStudentTravel

Chola MS Family Healthline

HDFC Ergo Travel Insurance

HDFC Ergo Health Suraksha

Universal Sompo General

Insurance

Householder's Insurance Policy

Shopkeeper's Insurance Policy

Motor Insurance Policy

Individual Health Bills

L&T Insurance my:health Medisure Prime Insurance

Tata AIG General Insurance Company Limited: The firm started its operation in 2001 and is

a joint venture between American International Group Inc. (AIG) and Tata Sons. In the tie-up

Tata holds the stake of 74% while AIG posses 26% of the venture. The General Insurance

policies offered by Tata AIG General Insurance Company Limited in India are:

Hospital Care

Healthcare

Maharaksha

Secured Future Plan

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Householder Insurance

Critical Illness Insurance

Auto Insurance

Travel Insurance

Personal Accident Insurance

Shopkeepers Insurance

Mediclaim Insurance

Hospital Cash Insurance

ICICI Lombard General Insurance Company Limited: The Company initiated it general

insurance business in 2001 and is an ISO 9001:2000 certified firm. It is India's premiere private

insurance firm and is collaboration between India ICICI Bank Ltd and Fairfax Financial

Holdings Limited. At the Asia Insurance Industry Awards ceremony, the company was honored

as one of the top three "General Insurance Company of the Year". The General Insurance

policies offered by ICICI Lombard General Insurance Company Ltd in India are: 

Householder Insurance

Travel Insurance

Personal Accident Insurance

Auto Insurance

Health Insurance

The Oriental Insurance Company Limited: The Company commenced its business in the year

1947 and offered insurance covers to the public at a feasible price. Since 1947, The Oriental

Insurance Company Limited has been providing its services to all sections of the society besides

offering exclusive covers to mega projects to firms venturing to establish power plants, chemical

plants, etc. The General Insurance policies offered by The Oriental Insurance Company Limited

in India are:

Personal Accident Insurance

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Auto Insurance

Shopkeepers Insurance

Householder Insurance

Travel Insurance

Health Insurance

IFFCO Tokio General Insurance: Known as one of the finest general insurance firm in India,

IFFCO Tokio General Insurance offers excellent service to its customers at reasonable costs. The

firm has excelled in giving ingenious solutions to its vast clientele. It has been considered as

consumer-centric firm and was the first to offer plans to its automobile and fertilizer customers.

The General Insurance policies offered by IFFCO Tokio General Insurance in India are:

Travel Insurance

Health Insurance

Personal Accident Insurance

Householder Insurance

Bajaj Allianz General Insurance Company Limited: A joint venture between Allianz AG,

who holds 26% in the company's stake; and Bajaj Auto Limited, who hold the remainder shares;

Bajaj Allianz General Insurance Company Limited initiated its operations in 2001. It has a

capital foundation of around ` 148 crores and is a premiere private insurer in India offering all

kinds of non-life insurance such as health, risk management, etc. The General Insurance policies

offered by Bajaj Allianz General Insurance Company Limited in India are:

Auto Insurance

Personal Accident Insurance

Health Insurance

Householder Insurance

Travel Insuran

(2.3.1) POLICY OF HEALTH INSURACE:

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I. Definition : A health insurance policy is a legal contract between an insurance company and

the owner of the policy. Generally, the contract is limited in term, requires a payment by the

policyholder to the insurance company (premiums), and details various conditions under which

the insurance company will be responsible for the costs of medical care of the policyholder and

possibly his or her family.

Insurance companies calculate the likelihood and costs of various and multiple medical

treatments for which they will be liable, and set an annual rate of premium to be paid by the

policyholder. In the United States, the majority of medical provider payments are made under a

“fee for service” basis, whereby the provider is compensated based upon the type and number of

services rendered to a patient, rather than the outcome of the services.

There are presently efforts within the healthcare community to use patient outcomes as the basis

for payment, a method which many believe will lower costs while improving care. However,

replacing the existing reimbursement system is likely to take years. In other words, we can

continue to expect the fee-for-service model to dominate healthcare for some time.

II. Effects

1. Society: Insurance can have various effects on society through the way that it changes who

bears the cost of losses and damage. On one hand it can increase fraud, on the other it can

help societies and individuals prepare for catastrophes and mitigate the effects of

catastrophes on both households and societies.

2. probability: Insurance can influence the probability of losses through moral hazard,

insurance fraud, and preventive steps by the insurance company.

3. Risk: Insurance scholars have typically used morale hazard to refer to the increased loss due

to unintentional carelessness and moral hazard to refer to increased risk due to intentional

carelessness or indifference.

4. Efforts: Insurers attempt to address carelessness through inspections, policy provisions

requiring certain types of maintenance, and possible discounts for loss mitigation efforts.

5. Investment: While in theory insurers could encourage investment in loss reduction, some

commentators have argued that in practice insurers had historically not aggressively pursued

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loss control measures - particularly to prevent disaster losses such as hurricanes - because of

concerns over rate reductions and legal battles. However, since about 1996 insurers began to

take a more active role in loss mitigation, such as through building codes

III. Components of a Health Insurance Policy

1. Insurance Premium: The health insurance premium is the fee that you pay in order to have

coverage of the medical conditions and/or treatments described in the policy. Premiums are

established through an underwriting process whereby potential purchasers of health insurance are

categorized into specific risk categories based upon such factors as age, gender, and medical

history. The level of premium is intended to reflect the likelihood that members of the insured

group will incur medical costs equal to the projected loss ratio or less.

Underwriting is necessary to avoid “adverse selection” – in other words, ideally, premiums are

set high enough so as to deter participation by those most likely to use the insurance, and low

enough to encourage participation by those least likely to use it. Underwriting ensures that the

people who purchase health insurance are a true cross-selection of risks, and don’t only represent

those who purchase health insurance because they are ill or expect to need it.

2. Deductibles: Health insurance usually requires that the covered policyholder bear a portion of

the risk by paying initial medical costs up to an agreed-upon level before the health insurance is

liable for payment. As the deductible amount increases, the premium decreases. For example, an

annual deductible of $3,000 would require the policyholder to pay the first $3,000 in medical

bills out-of-pocket before the insurance company will pay or reimburse any claim.

Deductibles can be applied to individuals or to family groups. For example, the policy might

have a $3,000 individual deductible and a $5,000 family deductible. In this case, the insurance

company would pay the individual’s medical claims when the accumulated expenses for that

individual exceed $3,000 or when the total family expense exceeds $5,000, even though the total

of no individual’s claims equal $3,000.

3. Co-payments: In addition to the deductible, policyholders are usually required to pay a

portion of the cost of each medical treatment covered to reduce frivolous use of medical services.

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While higher co-pays reduce the insurance company’s total exposure, the amount of the co-pay

per incident is rarely high enough to result in substantial premium reduction for the policy.

4. Co-insurance: In order to share the risk and limit excessive utilization, policyholders remain

liable for an agreed-upon level of expense, usually 80%. This limit is after the deduction of the

co-payment.

5. Exclusions: Health insurance policies do not normally cover all medical expenses. The non-

covered expense may be defined by medical condition, type of treatment, or medical provider.

For example, most health insurers do not cover elective cosmetic surgery, such as face lifts,

tummy tucks, or bariatric (obesity) surgery, except in certain rare occasions. Policyholders

remain 100% liable for any excluded treatment or expense, and these expenses do not apply to

the deductible amount defined in the policy.

6. Out-of-Pocket Maximums: The reverse of coverage limits, this component applies to the

insured’s maximum exposure for payment while the health insurance contract is in force. Once

the out-of-pocket limit is reached, the insurance company pays all future covered costs  (though

co-pays and exclusions remain in effect) up to the coverage limit.

For example, if the out-of-pocket maximum is $3,000 annually, once the policyholder pays that

amount, the insurance company will pay 100% of the covered expenses minus the individual co-

pays for each service.

7. Provider Panels: One of the biggest ancillary benefits to health insurance policyholders is the

schedule of discounted fee payments negotiated between the insurer and medical suppliers and

providers. In some cases, the amount actually paid for the treatment will be 30% to 40% of the

provider’s “usual and customary” fees. For example, a service that would cost $1,000 to an

uninsured patient could be provided to policyholders at $300 to $400, or even less. Each insurer

negotiates a discount with providers based upon the number of the insurer’s policyholders and

the projected utilization of the provider’s services.

Based upon the rates to be charged, physicians, hospitals and other medical providers will be

included into a defined network:

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In-Network.: The practitioners providing the greatest discounts are considered to be in-network.

Insurance companies encourage policyholders to utilize in-network providers by covering all or a

majority of the provider’s fees in accordance with the negotiated rates between provider and

insurer, and may also reduce co-pays or co-insurance when the in-network provider is used.

Out-of-Network.: Practitioners and medical providers who have not negotiated a preferred rate

or minimal discounts are considered to be out-of-network. Policyholders who elect to use out-of-

network providers will usually pay higher fees for similar services provided by an in-network

provider, and may additionally incur a higher co-pay and higher percentage of co-insurance.

8. Preauthorization: This is the process by which a health insurance policyholder gets prior

approval of a medical procedure, or approval to see a specialist to ensure that the service or visit

is covered. Most insurers require prior authorization before agreeing to cover a visit to a

specialist practitioner.

Policyholders should note that preauthorization is not a guarantee that the service will be

covered, but rather that it is the intent of the insurer to cover the service pending review of the

claim and the determination that the service was necessary. Many non-critical treatments require

preauthorization’s, and it is usually the policyholder’s responsibility to know if preauthorization

is required. Failure to get preauthorization can result in the payment of a claim being denied.

Insured’s should pay special attention to the preauthorization requirement when seeing a

specialist at the recommendation of their primary physician. Many primary caregivers are in-

network, but may unknowingly refer their patient to a specialist who is out-of-network. In such

cases, the patient will be penalized by the payment of a higher expense, and may have the claim

denied entirely.

IV: TYPES OF HEALTH INSURANCE POLICY

1. MEDICLAIM POLICY: Two types of medical insurance plans are there:

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Individual health insurance policy :This is the policy where policyholder himself is covered in

times of health problems;

Family floater health insurance -: This is the policy where sponsor owns the policy and the people covered under it are called its members. You can protect your full family under this medic aim policy;

Critical illnesses cover: Generally, most of the medical insurance products in India have a critical illness cover, though it comes with a waiting period. Also, when you purchase a comprehensive health insurance policy, there is generally a cap on the amount payable for critical illnesses cover. In a separate critical illness plan, the amount payable is lump sum.

The main difference between a critical illness separate plan and a comprehensive plan is that while the first will give you a lump sum payment of your total sum assured in case you get admitted for a critical disease, the latter will pay only the amount spent on the treatment within the sum assured limits.

Tax benefits Under Medical Insurance: Health insurance helps to save tax under section 80(D) of income tax act. This way you get dual benefit with health insurance as you save on tax as well as save on medical expenses.2. GROUP MEDICLAIM POLICY:

These days more and more companies are becoming employee-centric and every now-and-then introduce various benefits for employees’ betterment. Group insurance has emerged as one of the most preferred benefit. Group insurance ensures better health benefits for employees and increased employee satisfaction. Through this an employee can avail various benefits which are otherwise non-affordable in individual insurance policy. When an organization is going in for group med claim insurance policy, it should evaluate options like co-payment, names of the medical service providers on the preferred list and their location accessibility. Further, a good group med claim insurance plan should also offer some built in flexibility to individual needs within s the group. Group Health Insurance from Apollo Munich Health provides all this at a nominal premium. It not only offers coverage against the unexpected health concerns but also provides preventive health solutions. Apollo Munich Health is a joint venture between India’s largest integrated healthcare group, the Apollo Hospitals Group, and Munich Health, Europe’s leading healthcare insurer. With a backbone of over 60 yrs of experience globally, Apollo Munich Health offers a comprehensive range in corporate health insurance plans that are designed keeping company and employee needs in mind. Highlights of Apollo Munich Health’s Group Health Insurance plans: Provides broad cover for medical treatment of illnesses and accidents that require ‘in-patient’

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hospitalization Critical illness cover (available as an option)Covers diagnostic procedures, boarding & lodging, ICU, Surgery cost and prosthetic costs among others

3. OVERSEAS MEDICLAIM POLICY :

Highlights: Premium payable in Rupees and Claims settled abroad in foreign Currency. Policy available for frequent corporate travelers.

Scope: Medical expenses incurred by the insured persons, outside India as a direct result of bodily injuries caused or sickness or disease contracted are covered.

ADDITIONAL Add-on benefits:-Besides the above additional add-on benefits are available under Business & Holiday and CFT cover(Except Plan C and Plan D)

1. Personal Accident

2. Loss of checked in Baggage

3. Delay of checked in Baggage

4. Loss of passport

5. Personal Liability

Premium: Depends on Age-band, Trip-band and Country of visits. Coverage: Initially cover up to 180 days is provided under Business & Holiday Plan .Extension allowed on original policy for further period of 180 days subject to declaration of good health.

(2.3.2) POLICY OF FIRE INSURANCE

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With more and more people opting for a luxurious lifestyle, as a result becoming gadget freaks,

the risk of facing a crisis situation i.e. fire accidents have increased considerably. In such

circumstances, the best bet would be to get your house and commodities secured and insured.

One such policy is the home fire insurance policy, also called Standard Fire and Special Perils

Policy, the bulwark against such potential perils. It offers protection against the risk of loss or

damage due to fire or special perils. The

policy pays for the actual cost of repairs, replacement or setting up of the item lost or damaged.

However, claim settlements are subject to the market value of the property damaged, at the time

of loss, upon an overall limit of the sum insured opted. If the individual value of assets is not

furnished, the value of each property is considered as not more than 5% of the total sum insured.

Know more about the types of fire insurance policy, the documents required and what is covered

in these policies.

A fire insurance is a contract under which the insurer in return for a consideration (premium)

agrees to indemnify the insured for the financial loss which the latter may suffer due to

destruction of or damage to property or goods, caused by fire, during a specified period. The

contract specifies the maximum amount , agreed to by the parties at the time of the contract,

which the insured can claim in case of loss. This amount is not , however , the measure of the

loss. The loss can be ascertained only after the fire has occurred. The insurer is liable to make

good the actual amount of loss not exceeding the maximum amount fixed under the policy.

A fire insurance policy cannot be assigned without the permission of the insurer because the

insured must have insurable interest in the property at the time of contract as well as at the time

of loss. The insurable interest in goods may arise out on account of (i) ownership, (ii) possession,

or (iii) contract. A person with a limited interest in a property or goods may insure them to cover

not only his own interest but also the interest of others in them. Under fire insurance, the

following persons have insurable interest in the subject matter:-

Owner

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Mortgagee

Pawnee

Pawn broker

Official receiver or assignee in insolvency proceedings

Warehouse keeper in the goods of customer A person in lawful possession e.g. common carrier,

wharfinger, commission agent.

The term 'fire' is used in its popular and literal sense and means a fire which has 'broken bounds'.

'Fire' which is used for domestic or manufacturing purposes is not fire as long as it is confined

within usual limits. In the fire insurance policy, 'Fire' means the production of light and heat by

combustion or burning. Thus, fire, must result from actual ignition and the resulting loss must be

proximately caused by such ignition. The phrase 'loss or damage by fire' also includes the loss or

damage caused by efforts to extinguish fire.

The types of losses covered by fire insurance are :-

1. Goods spoiled or property damaged by water used to extinguish the fire.

2. Pulling down of adjacent premises by the fire brigade in order to prevent the progress of

flame.

3. 4Breakage of goods in the process of their removal from the building where fire is raging

e.g. damage caused by throwing furniture out of window.

4. Wages paid to persons employed for extinguishing fire.

The types of losses not covered by a fire insurance policy are:-

1. loss due to fire caused by earthquake, invasion, act of foreign enemy, hostilities or war,

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civil strife, riots, mutiny, martial law, military rising or rebellion or insurrection.

2. Loss caused by subterranean (underground) fire.

3. Loss caused by burning of property by order of any public authority.

4. Loss by theft during or after the occurrence of fire.

5. Loss or damage to property caused by its own fermentation or spontaneous combustion e.g.

exploding of a bomb due to an inherent defect in it.

6. Loss or damage by lightening or explosion is not covered unless these cause Actual

ignition which spread into fire.

A claim for loss by fire must satisfy the following conditions:-

1. The loss must be caused by actual fire or ignition and not just by high temperature.

2. The proximate cause of loss should be fire.

3. The loss or damage must relate to subject matter of policy

4. The ignition must be either of the goods or of the premises where goods are

5. The fire must be accidental, not intentional. If the fire is caused through a malicious or

deliberate act of the insured or his agents, the insurer will not be liable for the loss

Types of Fire Insurance Policies:-

1. Specific policy:- is a policy which covers the loss up to a specific amount which is less than

the real value of the property. The actual value of the property is not taken into

consideration while determining the amount of indemnity. Such a policy is not subject to

'average clause'. 'Average clause' is a clause by which the insured is called upon to bear a

portion of the loss himself. The main object of the clause is to check under-insurance, to

encourage full insurance and to impress upon the property owners to get their property

accurately valued before insurance. If the insurer has inserted an average clause, the policy

is known as "Average Policy"

2. Comprehensive policy:- is also known as 'all in one' policy and covers risks like fire, theft,

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burglary, third party risks, etc. It may also cover loss of profits during the period the

business remains closed due to fire.

3. Valued policy:- is a departure from the contract of indemnity. Under it the insured can

recover a fixed amount agreed to at the time the policy is taken. In the event of loss, only the

fixed amount is payable, irrespective of the actual amount of loss.

4. Floating policy:- is a policy which covers loss by fire caused to property belonging to the

same person but located at different places under a single sum and for one premium. Such a

policy might cover goods lying in two warehouses at two different locations. This policy is

always subject to 'average clause'.

5. Replacement or Re-instatement policy:- is a policy in which the insurer inserts a re-

instatement clause, whereby he undertakes to pay the cost of replacement of the property

damaged or destroyed by fire. Thus, he may re-instate or replace the property instead of

paying cash. In such a policy, the insurer has to select one of the two alternatives, i.e. either

to pay cash or to

Documents Required for Fire Insurance Claim

1. True copy of the policy along with schedule.

2. Report of fire brigade.

3. Claim Form

4. Photographs

5. Past claims experience

What is Covered in Fire & Special Perils Policy?

1. Accidental fires, lightning, explosion and implosion due to pressure vessels(used for

domestic purposes)

2. By rioting mob, striking workers, malicious acts by third parties and damage by terrorists

3. Impact damage by any rail/road vehicle or animal by direct contact.

4. Commodities damaged by water used for extinguishing fire.

5. Loss\damage caused by pulling down of adjacent buildings by the fire brigade to prevent

the flames from progressing.

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6. Breakage of commodities in the process of their removal from the premises where fire is

intense.

7. Aircraft and other aerial and and/or space devices and/or articles dropped therefrom,

excluding destruction or damage occasioned by pressure waves caused by such devices

8. Payments made to people employed in extinguishing fire.

9. Subsidence and landslide, including rock slide.

10. Natural calamities like storm, cyclone, typhoon, hurricane, tornado, flood and impact

damage.

11. Damages caused due to bursting or overflowing of water tanks, apparatus and pipes

12. Bush Fire

(2.2.3) POLICY OF VEHICLE INSURANCE:

Underwriting

Underwriting is the heart of any insurance company. It is underwriters who determine what risks

to accept and how much to charge for each policy. Modern underwriting uses technology to rate

and underwrite most individual risks, with underwriters charged with overseeing those systems.

Large commercial accounts are still rated and underwritten by individuals who use their

expertise to identify good risks from bad.

Operations And Policy Administration

The operations departments of insurance companies are responsible for the delivery of

information to an underwriter, whether that delivery is a paper file or computer record. The

operations department is also responsible for collecting all the data from the underwriter and

using it to produce a policy contract the client. Most operations departments feature an army of

clerks, data-input technicians, premium collection staff and assistants, as well as a healthy

contingent of IT professionals.

Claims

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The claims department is responsible for honoring the promise of the insurance policy. These

employees start by accepting a loss report from the client or broker, and dispatch field adjusters

to examine the loss. They then guide the insured through the process of repairing or replacing the

lost or damaged items. Most claims departments include fraud experts who prevent fraudulent or

exaggerated claims, as well as those who specialize in working with contractors and trades

people.

Motor Insurance Policy- Comprehensive vehicle Insurance

In Car insurance, comprehensive coverage covers damage to your vehicle caused by certain

events. These include (but are not limited to) fire, theft, vandalism and falling objects. This also

comes with a deductible you volunteer to pay and which you are obliged to pay before the

insurance company pays the remainder. It is advisable to buy the Comprehensive insurance

policy because it covers the insured, vehicle and third party in a single policy.  This type of

insurance covers all the risks covered in the Motor Vehicles Act plus loss or damage caused to

the vehicle due to:

1. Flood, hurricane, cyclones, typhoon, storm

2. Theft, burglary, strikes and riots

3. Terrorism, Malicious acts

4. Accident, Fire or Theft.

5. Floods and earthquake

6. Transit by road, rail, watercraft, air, elevator, etc.

7. Towing charges incurred after an accident.

8. Explosion, self-ignition, lightning

The Comprehensive Insurance coverage excludes the loss or damage caused due to:

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a. Driver under the influence of alcohol at the time of impact.

b.     Vehicle being driven by a person not holding a valid driving license.

c.     Damage to the tyres unless the vehicle is also damaged.

d.     Wear and tear or mechanical breakdown.

(2.4) PROCSS OF GENERAL INSURANCE:

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Risk based capital requirement & Solvency II

In contrast to the current regulatory Solvency Capital (which is 150% of the required capital

margin), the Economic Capital calculation recognises capital requirement for specific risks a

non-life company is exposed to.

Whereas the current regime is a combination of regulatory capital and maintenance of solvency

of margin, per Insurance Act and regulations, the Economic Capital is a key component of the

insurer appetite framework for it provides a measure of risk related to the business. (Typically,

Economic Capital is calculated by determining the amount of capital that insurer needs to ensure

that its realistic balance sheet stays solvent over a certain time period with a pre‐specified

probability. For example, economic capital may be determined as the minimum amount of

capital required to make 99.5% certain that the insurer remains solvent over the next 12 months.)

The word ‘economic’ indicates the fact that it measures risk in terms of economic realities rather

than regulatory or accounting rules which may have been designed to support non-economic

principles. This word also indicates that part of the measurement process involves converting a

risk distribution into the amount of capital that is required to support the risk, in line with the

insurer’s target financial strength. (For example: credit rating).

The regulatory office in India has therefore been engaging the Indian Insurance market to get

current and future financial condition of insurers, based on technical notes on asset liability

management and the economic capital modeling. In its estimation of the Economic Capital for

general insurance companies in India, it has drawn heavily on the standard

formulae/methodology used under Solvency II framework.

Solvency II introduces a new harmonised EU-wide regulatory regime. The key features of

Solvency II include economic risk-based solvency requirements where insurers are required to

hold capital against a range of risks, not just insurance risks. It is a total balance sheet type

regime where all risks and their interactions are considered. The insurers are required to identify

measure and proactively manage risks.

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An insurer must undertake an Own Risk and Solvency Assessment (ORSA) which aims to

ensure senior management have conducted a review of risks and that the insurer holds sufficient

capital against those risks.

The focus of the ORSA assessment could incorporate risks posed to the wider economic

environment, including but not limited to risk appetite and strategy, non-core activities, reverse

stress testing, corporate governance, role of the chief risk officer, etc. A few other areas of focus

could be:

Concentration of business: HIH, the Australian insurance group that ultimately collapsed in

2000, provided a good example of a group’s failure being detrimental to the local insurance

market. HIH was the dominant provider of the indemnity coverage to the building industry, and

its demise starkly demonstrated the impact that a concentration of business underwritten in a

particular market or segment can have on the local economic system. The dominance of HIH’s

professional indemnity business was allowed unchecked, amassing a disproportionate market

share. The analysis whether such sudden withdrawal of cover could give rise to any wider

economic impact on the local market had not been fully appreciated.

Company culture & ethics: Typically, a firm’s culture has not been the remit of regulation, but

it is hard to argue that behavioral issues were not deeply rooted in many causes of the crisis.

Excessive executive compensation has fuelled society’s general belief that the financial sector is

not as ethically sound as it could be.

Solvency II further ensures harnessing market discipline to support regulatory objectives. It aims

to ensure consistent supervisory reporting and disclosure across the EU (European Union).

Insurers should be prepared to disclose more information publicly than at present.

Solvency II and Lloyd’s Framework Directive continues to treat Lloyd’s as a single entity—the

‘Association of underwriters’ known as Lloyd’s—and the Solvency II capital requirements apply

to Lloyd’s as a whole.

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FSA (Financial Services Authority), UK is generally cited as a leading regulator globally and

one of FSA’s key strengths is the rigorous approach it brings to policy formulation and

implementation. For instance, in terms of implementation of Solvency II attempt is to approach

the expected change in implementation date to January 2014 in a way that allows breathing space

without losing momentum.

It is imperative that we work on a definitive time frame in India to align ourselves to the

Solvency II regime as a proactive measure, the lines of businesses strictly following the broad

international practices and definitions. Perhaps 1 April 2015 would be a good timeframe to move

in the direction of Solvency II.

An international reinsurance hub—Why India needs it?

A look at the Singapore Insurance market will probably help  

It is now more than a decade since Singapore opened up entry to the direct general

insurance industry, removing the cap which had existed on the percentage of foreign

ownership of local insurance companies. During intervening period, the Singapore

insurance market has markedly developed and matured and can now rightfully lay claim

to being Asia’s premier insurance and reinsurance centre.

During this time, international insurance companies have increasingly opted to base their

regional headquarters in Singapore and as of July 2010, following recent additions such

as Allied World and the return of Aviva to the non-life market, there were 155 registered

insurers and authorised reinsures in Singapore.

These developments have been led by the growth of OIF (Offshore Insurance Fund)

reinsurance business, with risks from all around the region now being placed into the

Singapore reinsurance market. China is now the largest single source of Singapore’s OIF

business.

As well as establishing itself as the regional hub for reinsurance business, Singapore is

also the largest domicile for captive insurers in the region. As of July 2010, there were

some 62 captive insurers based in Singapore, up 20% from a decade ago. This in turn has

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prompted the establishment of numerous captive managers to service this sector of the

industry.

The local market is now attracting a significant amount of business from around Asia,

which was previously placed directly into the London and Bermuda markets.

The growth in the industry has also led to a flood of ancillary providers, such as

specialized (re) insurance lawyers, forensic accountants and business recovery experts

establishing a local presence.

Supportive regulatory environment

The Monetary Authority of Singapore (MAS) the island’s insurance regulator is very supportive

of the development of the insurance industry and its approach is indicative of the country’s fair

regulatory environment. Various financial incentives have been made available to global insurers

considering setting up regional headquarters in Singapore.

The attraction of Singapore for many foreign insurers is less the market itself than the

opportunities it offers as an insurance hub as a whole, a role that the MAS is keen to promote

and, faced with an increasingly competitive local market, companies are likely to look more and

more to offshore business.

The MAS continues to refine its hands-off approach to market supervision, relying increasingly

on self-regulation through the General Insurance Association (GIA) and by means of legislative

instruments such as risk based capital and corporate governance. It has stated its intentions of

continuing to promote Singapore as the main insurance center in Asia by encouraging investment

in insurers and captives, particularly those writing foreign business. The MAS enjoys a good

relationship with the insurance companies and the GIA. There is a strong mutual respect and a

tradition of consultation in connection with any legislative change that will affect the market.

The Association has a self-regulatory function that is enforced through market agreements.

Lloyd’s Asia 

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Indicative of the movement of underwriting capital into Singapore is the Lloyd’s Asia Platform,

on which Lloyd’s syndicates write local and offshore business through service companies.

Established in 1999 pursuant to the Lloyd’s Asia Scheme, the Platform has seen rapid growth in

recent years. There are 18 syndicates trading on the Platform through 15 service companies. 

Syndicates planning to establish a service company to trade within Lloyd’s Asia require approval

from both Lloyd’s and locally from the MAS. In addition to being subject to the Lloyd’s Asia

Regulations in Singapore, they need to comply with Lloyd’s Acts and Byelaws, such as the

Lloyd’s Asia instruments which exist for both Singapore and offshore policies. Service

companies must also sign up to the Lloyd’s cover holder’s undertaking. Requiring amongst other

things that cover holders agree to comply with local insurance, fiscal & tax laws, regulations &

requirements of the jurisdiction in which they trade.

The legal framework

A legal system based on tried and tested common law principles and Singapore’s reputation as

an open and fair jurisdiction for dispute resolution have also assisted this development.

Whilst specific legislation has been enacted with regard to the regulation of insurance business,

the law applicable to insurance contracts in Singapore generally follows English common law

which, so for as it was part of the law before 1993, broadly continues to apply in Singapore.

Decisions of the English Courts on matters of insurance and reinsurance are highly persuasive,

providing reassurance to international underwriters familiar with the approach and application of

English law.

A growth centre for arbitration

Related to this, there is another development worthy of note. In parallel with and complementary

to, the evolution of insurance sector has been the growing reputation of Singapore as a regional

and global centre for arbitration. This has been assisted by a judicial philosophy which is

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supportive of arbitration and perhaps more obviously, the enactment of legislative changes to

liberalise and update the legal regime for arbitrations and open up the legal market for

practitioners.

In 2004, the Legal Profession Act was amended to remove restrictions on foreign lawyers

representing parties in arbitration in Singapore. Foreign lawyers can now appear as counsel in

Singapore law arbitrations and give advice, prepare documents and provide assistance in relation

to or arising out of arbitration proceedings (other than taking steps before the local courts).

This is of substantial importance for the (re)insurance industry as it enables international law

firms with globally recognised (re)insurance pedigrees to act on behalf of clients in disputes

being arbitrated in Singapore. This is particularly relevant as more and more policies issued are

providing for disputes to be resolved by Singapore law and arbitration.

The Singapore Interaction Arbitration Centre (SIAC) which is widely regarded as a leading

international arbitral institution issued the fourth edition of its rules in mid-2010, to further refine

its arbitral framework. SIAC administrated arbitration is becoming increasingly popular.

Singapore’s emergence as a global arbitration centre provides insurers with the option to include

arbitration clauses providing for dispute resolution in a neutral and fair jurisdiction with an

arbitral appointing body which should ensure the appointment of an independent sole arbitrator

or umpire. This need not involve the adoption of SIAC’s rules. The parties can opt for ad hoc

arbitration, for example with its seat in Singapore and English law to apply, but with the

reassurance of an independent party such as the chairman of SIAC as the default arbitral

appointing body.

(2.4.1) PROCESS OF HEALTH INSURANCE:

What Is Health Insurance – Definition & How It Works: The purchase of a health insurance

policy for the first time is, in many ways, a rite of passage – a signal that you have passed from

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child to adult. The purchase of a health insurance policy is also one of the more expensive

acquisitions you will make during your life, rivaling the expense of buying a home. At the same

time, most people do not understand health insurance or the components of the contract between

insurance companies and themselves, often learning to their dismay that coverage they thought

they had is actually nonexistent

The way to avoid lacking vital health coverage when you need it most starts with understanding

policy basics.

When applying for Health Insurance: With rising medical costs, it has now become imperative

for everybody to get Health Insurance coverage. Here are the Top 5 factors to keep in mind:

1.   AdequateCoverageAmount:

Take an adequate cover to protect yourself and everyone who is dependent on your income - e.g.

your family members. Hospitalization costs are higher in metros; people living in metros

typically should opt for a higher coverage amount 

2. Re-imbursementorCashAllowance

Health Insurance comes in various flavors. It is imperative that you understand the difference

between re-imbursement plan and a cash allowance plan. A cash allowance plan cannot replace a

re-imbursement plan (often referred to as "Med claim" - because here the amount you get is

based on the actual amount of expense incurred whereas in a cash allowance you get a fixed

lumpsum for every day you spend in the hospital - no matter how expensive the treatment might

be

   

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3. Cashless Facility

Imagine having to run around to arrange for cash in an emergency situation for getting admitted

to the hospital of your choice! Most insurance companies had launched cashless cards for re-

imbursement based plans - so that you could simply present the card at the time of admission and

an administrator would take care of settling your hospital bills directly from the insurance

company. However in mid-2010, several public sector insurers withdrew support for the cashless

facility. Before buying your Health Insurance, you may want to check with your insurer how

many hospitals does he offer support for the cashless facility and especially about the hospitals in

your area. But please remember that just because a hospital is in the cashless network at the time

of taking your first policy it may not remain in the cashless network when your claim arises. So

this cannot be the sole factor for deciding about the health insurance company.

4.   AgeuntilRenewalsallowed

Most of us will certainly fall ill at some point of our lives - and the chances are that we will fall

ill when we are older. Entering into a new Health Insurance plan is significantly cheaper and

easier when one is young & healthy. The chances of having any major pre-existing disease is

lower so most plans are available and also the insurance company must disclose today the

premiums applicable today as well as the premiums applicable at an older age Ensure that your

health insurance plan is renewable after 65 - because at that age, you don't want to discover that

health insurance is difficult to get when you need it the most.

5. Co-pay

One of the fears insurance companies nurse is that the customer might opt for unusually

expensive hospital rooms or procedures than are warranted. To overcome this, some insurance

companies introduce a co-pay or sub-limits. In a co-pay you are required to share some of the

expenses incurred - regardless of the amount covered.

E.g. say you have a 3 lac cover and the bill you want to be re-imbursed amounts to Rs. 2 lacs.

With a plan that has a 20% co-pay, you will only get 80% of the bill re-imbursed by the insurer -

i.e. Rs. 1.6lacs and you will have to bear the rest).

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For the same coverage amount, a plan with a co-pay should come with a much lower premium

than one without a co-pay. Sub-limits simply restrict the amount of re-imbursement for

individual bill items - e.g. even a Rs 1 lac bill may not be fully re-imbursed for a Rs 3 lac

coverage amount, if say the sub-limits set on room rentals/ doctors fees/ OT charges - or even a

specific procedure (e.g. cataract/ knee replacement) is exceeded. Again a plan with sub-limits

should have a lower premium for it to be worth considering.

6. Temporary and Permanent exclusions

Normally most policies provide coverage for pre-existing diseases only after a waiting period.

Remember pre-existing disease is not just the disease you are suffering from at the time you took

the first policy but also any other disease that is caused due to such pre-existing disease. A

common example is that heart illness will also be treated as pre-existing (even though at the time

you took the first policy you had no heart disease) if you had diabetes when you took the first

policy since the heart illnesses is caused by Diabetes. This single item is responsible for most of

the disputes between insurance companies and consumers. So make sure you disclose everything

that is required in the form. Please do not sign a blank form and leave it to the agent to fill the

form later. This will ensure that at least at the end of the waiting period you will get the disease

covered. If you do not disclose the disease then you run the risk of your policy being cancelled or

a renewal being denied if this fact is discovered later.

Apart from the above  illness contracted during the first 30-90 days of the first policy is normally

not covered. Some specific diseases/treatment such as cataract , knee replacement, etc. may also

be covered only after a waiting period.

There are permanent exclusions as well such as beauty treatment, sexually contracted diseases,

non allopathic hospitalization expenses , etc.  Always read the policy brochure carefully and also

look at the section dealing with permanent exclusions in the policy document.

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(2.4.2) PROCESS OF FIRE INSURANCE:

1) Intimation to Insurance Company: The insured must give immediate intimation to the

insurance company regarding the loss. The necessary details like the day, date, time and

causes of fire and in case of marine insurance, ship and voyage taken should be mentioned.

2) Assessment of the loss: The insured makes an assessment of the actual loss. Such assessment

is required to fill the claim forms correctly in respect of the loss of goods or property.

3) Submission of the claim form: the insured must fill all possible details in the claim form. He

must lodge the claim form within 15 days of the fire to claim compensation. In case of

marine insurance, the insured should lodge a claim with

Delay in submission of claim form may result in non-acceptance of the claim.

4) Evidence of Claim: Along with the claim form, the insured must send certain proof of fire

and other records, if available and if necessary. The evidence should enable the insurance

company to determine the amount of loss.

5) Verification of Form: The claim form along with the supporting evidence is verified by the

insurance company. The insurance company then appoints the surveyors to conduct an

assessment of the actual loss.

6) Survey: After the receipt of the form, and necessary verification, the insurance company

appoints the surveyors to assess the actual loss. The surveyors conduct the necessary

investigations. They investigate into the cause of fire, the actual amount of property lost and

other relevant details. The surveyors then make the report of their findings and assessment of

the loss.

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7) Landing Remarks: In case of marine insurance, the insured should obtain landing remarks,

from the port authorities, if survey report is not obtained.

8) Appointment of the arbitrator: There may be a dispute regarding the amount of claim. In such

a case, an arbitrator is appointed, acceptable to both the parties, to settle the amount of the loss.

9).Settlement of Claims: If there is no dispute between the two parties, as to the amount of loss,

the insurance company then makes necessary payment to the insured. In case of marine

insurance, the amount of money is paid to India Exporter in Indian rupees. If the claimant is not a

resident of India, payment maybe made in foreign currency.

The identification of the seven P’s of marketing mix helps a firm to form better marketing

strategies and also to serve the customers in a more efficient manner.

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(2.4.3) PROCESS OF VEHICLE INSURANCE:

1.HowtoPreventVehicleTheft

The reality is that no fool-proof methods exist to guarantee that your vehicle will never be stolen.

Determined criminals may find a way to steal your car, regardless of how many precautions you

have taken. The good news is that you can deter vehicle theft by taking some simple precautions.

This will greatly reduce the risk of ever having to file an insurance claim for a stolen vehicle.

Here are some tips on how you can avoid having your vehicle stolen. After all, an ounce of

prevention is worth a pound of cure

2.Anti-Theft Devices

Using one of the many anti-theft devices currently available will lower your risk of having your

vehicle stolen. Better yet, it will also lower the amount you need to pay for your insurance

premium. Make sure you lock your car as soon as you park it, and purchase a jack, car alarm or

club. Many of the newer car models include built-in anti-theft features that make it virtually

impossible to steal them. Whenever possible, park your vehicle in a lit area or inside a garage.

3.VehicleIdentificationNumber

Engraving your vehicle identification number inside your vehicle is another good idea. Make

sure you choose an area that is not easily visible. This will prevent a thief from being able to alter

the number. The hidden etching of your VIN will make it much easier to identify your stolen

vehicle, particularly if it has been significantly altered.

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4.Storing Important Documents

Dont use your vehicle to store any important documents. Make a copy of your registration,

drivers license, insurance information and any relevant receipts for repairs or upgrades to your

vehicle. These documents will make it easier to identify your stolen vehicle. However, you will

need to ensure that your vehicle registration papers and original insurance remains in the vehicle.

5.TakePhotosofYourVehicle

Storing some photos of your vehicle will also help you in the event it is ever stolen. You will be

able to prove the actual value of your vehicle much easier when you submit a claim to your

insurance company. A clear photo may also help the police locate your stolen vehicle

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(2.4.4) PROCESS OF ACCIDENT INSURANCE:

The first step towards making a claim should be to call us on our toll free number of our Toll-

free Number 1-800-2700-2700. Our claims service representative will guide through the claim

procedure and documents required. Complete the claim form relevant to the nature of loss as

indicated below:

Claim Procedure for Accidental Death:

Fill a Claim Form as per 'Form E'

File a Police FIR or Police Panchnama

Attach a Post-mortem Report or Coroner's Report

Attach a Death Certificate

For payment to beneficiary, attach a succession certificate or notarized affidavit certifying the

legal heir status.

Where payment to beneficiary is through a notarized affidavit, a letter of indemnity on Rs.200

stamp paper will be required. Contact us for the indemnity format.

Claim Procedure for Accidental Injury:

Fill a Claim form as per 'Form A'

File a Police FIR, if accident is reported to Police

Attach Medical papers, pathology reports, X-ray reports, as applicable

For Permanent Disability Claims, attach a disability certificate from any reputed surgeon or

Municipal Hospitals.

For Temporary Total Disability Claims, attach a sick leave certificate from Employer

Attach the attending Physician's statement as per 'Form D'

Bodily Injuries or sickness caused in the following situations are not covered under the policy:

Intentionally

Due to Civil War or Foreign War

Under the influence of Alcohol /drugs

Due to driving two wheeler of more than 150 cc

Due to AIDS / HIV

Due to active participation in violent labour disturbance / public disorder

On duty with military or police force or paramilitary organization

Due to participation in hazardous sports

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(2.5) Benefits of general Insurance

1 .Medical and Health insurance: Take care of your medical bills if you need to undergo any

medical treatment. Now, people we way about their health. Sidesteps reduces people become buy

insurance.

2.Accident Insurance: Takes care of expenses incurred in relation to an accident. For example,

compensation to be paid to aggrieved party in case you are the defaulting party, medical bills,

cost of repairs etc

3. Motor vehicle/ Auto insurance: Takes care of the cost of repairs to your motor vehicle in

case of an accident. Optionally, it also takes care of compensation for damage occurring due to

the fault of any other party. Most insurance policies also provide a cover against theft or damage

to the motor vehicle. Insurance cover is also available for two/ three wheelers.

4. Travel Insure: It also takes care of compensation for damage occurring due to the fault of any

other party. takes care of expenses incurred due to any unforeseen event during travel.

5. Pet insurance: As the name suggests it takes care of certain expenses incurred for your pets.

For example, if your pet is ill and you need to spend money at the vet, the insurance company

takes care of payments.

6. Home Insurance: It covers expenses incurred in the event of robbery or damage to property

in case of fire, earthquake etc. Mortgage insurance is a variant of home insurance that takes care

of loan or mortgage payments in the event of a contingency

7. Unemployment Insurance: This type of insurance keeps one financially secure in the event

of loss of employment.

8. Personal liability insurance- this kind of insurance is relatively new in the insurance sector.

It takes care of any liability arising while conducting one’s profession. Doctors, lawyers and

other professionals at risk of being sued by their clients may find this insurance very beneficial.

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limitation of general insurance

1. Existence immediately: Indemnity insurance was an agreement by the insurer to confer on

the insured a contractual right, which prima facie, came into existence immediately when the loss

was suffered by the happening of an event insured against.

2. Position: to be put by the insurer into the same position in which the accused would have had

the event not occurred but in no better position.

3. Liability: There was a primary liability, i.e. to indemnify, and a secondary liability i.e. to put

the insured in his pre-loss position, either by paying him a specifying amount or it might be in

some other manner. But the fact that the insurer had an option as to the way in which he would

put the insured into pre-loss position did not mean that he was not liable to indemnify him in one

way or another, immediately the loss occurred. The primary liability arises on the happening of

the event insured against.

4. Time limit: So, the time ran from the date of the loss and not from the date on which the

policy was avoided and any suit filed after that time limit would be barred by limitation.

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(2.5.1) BENEFITS OF HEALTH INSURANCE:

Health Insurance Benefits

Investment in health insurance plan is investing for the protection and wellness of you and yours

family health, depending upon the plan opted for. The word 'protection', here, means the

financial security in case of an unexpected or exigent situation. The word 'wellness' stands for

the recommendation or advice offered to clients by experts. In case of exigencies, you can rely

on the insurance company to endure you expenses. But, it is always advisable to buy from leader

as they are worth relying.

Apollo Munich is one of the emerging company in this sector. Their products are well designed

to suit you needs. Each of their products has their own health insurance benefits.

The Health insurance benefits associated with our health plans are:-

Easy Health plan

Apollo Munich covers expense for 140 day care procedure, where in-patient hospitalization is for

less than 24 hours.

Pre- hospitalization facility provides coverage to charges that you incur 30 days before you are

hospitalized. The same can be increased to 60 days, if informed early.

Depending upon the terms and conditions of the policy, post hospitalization offers covers to

expenses incurred for specific number of days after discharged from hospitals. It may be for 60

days to 90 days, depending upon the situation and the company norms.

Portability feature gives you an offer to shift from some other company to Apollo Munich along

with providing majority of accrued benefits.

If you do not claim for the money in the entire year, you are entitled to get bonus up to some

percent, subject to terms and conditions.

Tax benefits

Critical illness coverage

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Personal Accidental Plan

In case of death due to an accident, the family members of the insured are entitled for the lump

sum payment.

In case of disablement, there is a specific scale, which measures the amount to be paid with

respect to the physical loss incurred.

In case of accidental death or permanent disablement, Apollo Munich reimburse the amount

incurred in transportation of one immediate family member to the hospital, subject to terms and

conditions

The company provides you of the charges spent on the transportation of mortal remains of an

insured either to his/her residence or to a burial ground.

In case of an emergency, Apollo Munich provides you the expense incurred on ambulance for

transfer of an insured in the nearest hospital.

Transportation of medicines

Purchase of blood

Travel insurance

Medical services provider referral

Arrangement of appointment with local doctors

Interpreter referral

Arrangement of emergency medical reparation

Monitoring of medical conditioning during hospitalization

Medical advice on telephone

Arrangement of reparation of mortal remains

Lost luggage assistance

Pre-trip information services

Lost passport assistance

Embassy referral

Emergency cash advances

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Medical Benefits

Everybody wants to take advantage of financial and medical benefits by investing in health

insurance products. It is indirectly the financial security in case of exigencies. In an emergency

situation, you can rely on an insurance company to bear your expenses. But, you require

searching for a reputable organization that is worth relying.

Apollo Munich, a joint venture between the Apollo group of Hospitals, Asia's largest integrated

healthcare group and Munich Health, newest business segment of Germany based Munich Re, is

one of the emerging company in this sector. Their policies are intelligently designed to match

your needs. Each of their plans has its own benefits.

Medical benefits of Easy Health Plan Apollo Munich includes coverage for 140 day care

procedure, where in-patient hospitalization is for less than 24 hours, Post- hospitalization

expenses for specific number of days, Pre- hospitalization charges, tax benefits, optional critical

illness coverage, etc .

Medical benefits of Personal Accidental Plan In case of an accident of an insured, Apollo

Munich provides coverage in case of disablement, accidental death, emergency ambulance cover,

family transportation, transportation of mortal remains, transportation of medicines, purchase of

blood, etc.

Medical benefits of Travel insurance include medical services provider referral, embassy

referral, interpreter referral, lost passport assistance, lost luggage assistance, medical advice on

telephone, arrangement of appointment with local doctors, etc.

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(2.5.2)Vehicle insurance benefits both victims and owner

1.What is the importance of motor vehicle insurance?

The Motor Vehicles Act, 1988, under section 146 mandates that every vehicle should

be compulsorily insured for third party risk. The reason is because of the growing

number of accidents that causes fatalities and disability among the victims

2.What are the types of motor vehicle insurance?

There are mainly two types of motor vehicle insurance. One is liability/act only

policy; such type of insurance covers the risk of all third parties who are injured by

the motor vehicle. This includes all third party users knocked down by the vehicle

and also occupants of commercial vehicles. And the second type of motor vehicle

insurance is comprehensive/package policy, which covers not only the above but also

occupants of private vehicles and the insured vehicle itself.

3.Please throw light on how insurance policies help victims?

The objective of such insurance policies is to help the victims and the legal

representatives of the deceased victims to secure substantial compensation. The

compensation can be obtained only if the motor vehicle that was involved in the

accident is insured. If the vehicles are not insured, then recovery of the compensation

is a distinct possibility. For this reason, vehicle insurance benefitsboth the accident

victims as well as the vehicle owners as they are saved of paying any compensation

out of their pocket

5. Is it sufficient to just insure the vehicle?

Not only should the vehicle be covered by a valid insurance but should also be

driven by a person who has a valid licence. In the case of commercial vehicles,

validity of permit and fitness should be observed.

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5.How one can file a claim for compensation after accident?

After the family suffers from an accident, the law for seeking compensation is set in

motion. The necessary documents which are required to file a claim are available

with the investigating officers and police machinery. These are certified copies of the

police papers which include spotpanchanama, charge sheet and documents of the

vehicle involved in the accident. case of a fatal claim, the age and income proof of

the victim have to be obtained. In case of injury, the medical papers and employment

proof or income of the victim must be shown. The amount of compensation is based

upon factors like who deserves the claim, age and income of the deceased.Also the

medical expenses and the duration of treatment that a victim undergoes determine the

claim. In the case of injuries that could lead to disability and affect the earnings of

the victim, the functional disability is considered and the victim is compensated

accordingly.

6.WhattodoincaseofCarAccident?

Car accident insurance claims begin with road traffic accident. Car accident is a road traffic

incident which usually involves one road vehicle colliding with either another vehicle or a road

user and which may result in injury or property damage, or possibly death. Accident can be of

different nature, like for cars it can be due to Accidents can be very stressful and lead you to

trauma. There is the fear about what impact the accident will have on your driving record and

insurance. Such thoughts can make it hard to think clearly and respond properly. And if there are

injuries, the stress can be amplified. But that's when a clear head and quick action are really

crucial. First calm down, call for the police and seek advice from a solicitor, they usually offer

good advice when approached by the affected party. There are different types of accident claims

like the claims that can be made for road accident.

The following are the checklist to be kept in mind when preparing to

fileroadaccidentclaim: 

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1. It is best to record and make a note of all the information that you can observe at the

place where the accident took place. A keen observation will help you when making the

claim. Give all the minute details when you are making the accident claim.

2. Make note of witnesses if there are any. It is helpful to collect the addresses and phone

numbers of those who witnessed the accident, such eye witnesses can throw light on the

cause of the accident.

3. Take the pictures of the place where the accident took place. Pictures of the accident site

will always add weight to the claim. It will prove that you are right and the accident is a

result of the negligence of the other party.

4. If you are injured in the accident the nature of the injury has to be recorded.

5. If the police personnel are available in the accident site it is important to collect the case

number from them, if a case is registered. Also the insurance details of the other party

have to be noted.

6. Calm down and go to the hospital after the accident to get treated and get the doctor's

opinion about the nature of the injury.

7. Keep track of all the expenses that you have incurred as a result of the accident.

8. Another important advice on accident claims is the time frame to be kept in mind. The

victim has to file the claim within a stipulated time period. Call your insurer or the agent

to find more about claim procedure.

Just relax and take some time to file your claim. However it is advisable to watch out the

level of loss. If the loss is on the higher side file the claim, but if it is nominal and almost

close to the excess you need to pay, then avoid claiming to avail discounts your company

will offer in the renewal.

6. When an Auto Insurance claim is rejected?

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It is common for Auto insurance companies to reject large number of car insurance claims

or to reduce there payment values. Generally they would do this, only if they have genuine

reasons. Filing claims and receiving the monetary benefits could be a difficult task.

There are several factors that can result in claims rejection:

1. The insurer may come to the conclusion that driver was largely or entirely at fault in case

the claim is related to theft from the vehicle or of the vehicle itself. The car insurance

policy may contain a clause which invalidates the claim.

2. The insurer may call off the claim if the information provided during application was

inaccurate or false.

3. Another reason why a claim may get rejected is that the customer may have taken an

insurance policy for a normal private car while it was actually used for commercial

purposes. When a customer has a taxi, he should use a policy which is designed for taxis.

4. In case of partial damages, which occur as a result of accidents, a customer often gets

claims lesser than demanded because of the depreciation of the vehicle. So, an insurance

company puts a car back in the same position as it was prior to the damage of the vehicle.

For example, if the engine of a five-year old Maruti car is damaged, the insurance

company is liable to pay the customer equivalent to five year old engine. If it is replaced

with the new one, then the depreciation is deducted as per the tariffs so as to bridge the

gap between the cost of the new engine and five-year old engine.

5. If you are unable to provide receipts to backup claims of theft of items from your vehicle.

6. If the value of the car is considerably less than the money you've invested in restoration

or enhancements.

In any insurance policy your insurer expects you to disclose all the information that could be of

importance to them. You are obliged to do this even if the detail is not requested. This process is

known as “utmost good faithâ€. Insurance companies often use this extremely wooly�

approach to sharing information to justify rejecting or downscaling claims. If such situations

arise with your car insurance claim, there are certain important points to remember:

109

The small print of your policy carries a lot of weight, read it thoroughly before, during and after

your claim. Keep the accurate records of conversations and correspondence along with all the

receipts backing up your claim.

 The payout figure announced by your insurance company is not a set in stone. Rather than just

accepting the amount on offer you are perfectly entitled and rightful to question the payout. And

you can put forward your case for why it should be increased.

FirstPartyBenefits

First party benefits may cover any funeral costs, accidental death, loss of income or medical

expenses incurred in an accident by you and any relatives who share the same residence. Some

insurance providers refer to first party benefits as personal injury protection or PIP coverage.

You can choose the maximum coverage limits when you purchase your car insurance policy.

This type of insurance will cover your medical expenses, regardless of who causes an accident.

You should spend time some carefully evaluating the specific type and amount of insurance

coverage you require for your particular needs.

Each state has its own state of limitation laws concerning the time limit for the combined

benefits of first party benefits insurance coverage. Normally, the benefit must not exceed more

than 3 years. This means that your insurance provider will not pay any losses or expenses that

you have incurred beyond three years from the date of your accident. 

You should discuss the specific coverage limitations and first party benefits with your insurance

agent. Another option is to contact your local insurance regulatory department to learn more

about the limitation statues in your state. For example, the state of Pennsylvania is known for

requiring drivers to purchase first party benefits. In fact, they are sometimes referred to by

insurance companies as Pennsylvania Options. Pennsylvania law requires drivers to purchase at

least 5000 of basic first party benefits coverage. However, you can choose to increase the limit to

100,000.Additional Coverage Options

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You can choose to purchase other types of insurance coverage. For example, some auto

insurance policies also cover the cost of funeral expenses, accidental death benefits and loss of

wages. If you decide to purchase auto insurance coverage for personal injury work loss, you will

be reimbursed for any wages you lose because of a motor vehicle accident. 

Any funeral expenses for your or a family member who dies in a car accident will be covered if

you have purchased optional funeral benefits coverage. Other options include accident death

which will pay if you or a family member dies in a car accident. You can choose various limits

for each type of optional auto insurance coverage. 

If you want accidental death benefits, funeral costs and loss of wages covered in addition to your

medical expenses, you should purchase combination benefits. You can discuss the maximum

limit for this type of auto insurance with your insurance agent.

Herearesomecommoninsurancequestions:

1.Whatareaccelerateddeathbenefits?

Any insurance policy that offers accelerated death benefits pays partial or full policy death

benefits while you are still living. However, there are various conditions that need to be met. For

example, you need to provide proof that the policyholder has a terminal illness and is not

expected to live 12 months, is living in a nursing home or other long-term care facility or has a

specified disease that is life-threatening. For group term life policies, you are limited to receiving

an accelerated benefit or 50% of your death benefit or $25,000 whichever is higher. You should

also be aware that the proceeds may be taxable and you may no longer be eligible to receive

certain government benefits or Medicaid if you accept a payment from an accelerated death

benefit policy.

2.Whatareaccidentaldeathbenefits?

This type of benefits is paid to the beneficiary of an individual who has purchased a life

insurance policy with an accidental death clause or an accidental death insurance policy and who

111

dies due to an accident. This type of insurance policy requires an examination into the cause of

death to determine if the policyholder has satisfied the specific policys definition of an accidental

death. Many accidental death insurance policies will also pay benefits to a policyholder who has

suffered a bodily injury that results in certain types of dismemberment. There are certain double

or triple indemnity policies that will pay out two or three times higher than the policys face

value. You should note that accidental death benefits are not normally paid for injuries or deaths

resulting from any type of noncommercial aviation, illegal activities or war. An insurer must

meet certain age requirements, and his/her death or dismemberment must occur within a

predetermined time period following an accident in order to qualify for accidental death benefits.

3.WhatisanHMO?

An HMO or Health Maintenance Organization is one comprised of healthcare facilities and staff

that provide a wide range of health services to an enrolled group of individuals for a set amount

of prepaid money for a specified time period. The provided health services may include inpatient

or outpatient hospitalization, ambulance service, medical consultations and treatments and home

health services. They may even include certain pharmacy or dental services. An HMO plan will

also cover the cost if you must visit a specialist such as an oncologist if your insurance provider

gives you a referral. 

limitation of general insurance

1. Existence immediately: Indemnity insurance was an agreement by the insurer to confer on

the insured a contractual right, which prima facie, came into existence immediately when the loss

was suffered by the happening of an event insured against.

2. Position: to be put by the insurer into the same position in which the accused would have had

the event not occurred but in no better position.

3. Liability: There was a primary liability, i.e. to indemnify, and a secondary liability i.e. to put

the insured in his pre-loss position, either by paying him a specifying amount or it might be in

112

some other manner. But the fact that the insurer had an option as to the way in which he would

put the insured into pre-loss position did not mean that he was not liable to indemnify him in one

way or another, immediately the loss occurred. The primary liability arises on the happening of

the event insured against.

4. Time limit: So, the time ran from the date of the loss and not from the date on which the

policy was avoided and any suit filed after that time limit would be barred by limitation.

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(2.5.3): Theft Insurance Benefits:

1.MASTER POLICY: Theft Insurance Summary Description Of Benefits For The Identity Theft Expense Reimbursement Master Policy The

Master Policy of Virginia Surety Company Identity Theft Expense Reimbursement Coverage has been issued to: Affinion Group Insurance Trust

(the “Master Policy Holder”), Policy Number: TRIID- 002 underwritten by: Virginia Surety Company, Inc., 1000 Milwaukee Ave., Glenview, IL

60025 (the “Company”) to provide benefits as described in this Summary. This Summary is provided to inform you that You and Your joint

accountholders are entitled to benefits under the Master Policy referenced above.

2. DESCRIPTION: This Summary Description of Benefits does not state all the terms, conditions, and exclusions of the Policy. Your benefits

will be subject to all of the terms, conditions, and exclusions of the Master Policy, even if they are not mentioned in this Summary. “Loss” means

the Expenses, Lost Wages, and Legal Costs related to Your Identity Theft. Expenses” means: Costs You incur for re-filing loan applications for

loans, grants, other credit or debit instruments that are rejected solely as a result of the lender receiving incorrect information as the result of

Identity Theft;

3. CREDIT: Costs You incur for notarizing affidavits, or other similar documents, long distance telephone calls, and postage which is incurred

by You in Your efforts to report an Identity Theft, or amend or rectify records in regard to Your true name or identity as the result of an Identity

Theft; Costs You incur to purchase directly a maximum of four (4) credit reports from any of the three major Credit Bureaus (Experian, Equifax,

or Transition). The credit reports must be purchased while You are a Member; and may be purchased only after the Identity Theft has occurred

and for the purpose of correcting inaccuracies that occur as a result of the Identity Theft.

4.SERVICE: We designate, and related court costs You incur with Our consent; foamy suit brought against You by a creditor or collection

agency or other entity acting on behalf of a creditor for non-payment of goods or services or default on a loan as the result of Identity Theft;

Removal of any civil judgment wrongfully entered against you as a result of Identity Theft. The Identity Theft Expense Reimbursement Plan

coverage does not apply to Any act of fraud, deceit, collusion, dishonesty or criminal act by You or any person acting in concert with You, or by

any authorized representative of You, whether acting alone or in collusion with You or others Damages or Losses arising out of any business

pursuits, loss of profits, business interruption, loss of business information, or other pecuniary loss; Damages or Losses arising from the theft or

unauthorized or illegal use of Your business name, d/b/a/ or any other method of identifying Your business activity;Damages or Losses of any

type for which the credit card company, bank, creditor, etc. is legally liable;

5.CREDIT CARD INSURANCE:

If a thief steals your credit card, you are only held accountable

for the total amount of fraudulent charges if you do not notify

the company within 60 days, but often the time window is

waived.

114

Though many cardholders believe a policy will pay off the card completely, the reality is that

most plans only cover the minimum payments. And even if you have the insurance, the company

may make it difficult for you to collect. Check with your credit card company for their exact

policy

6.CREDIT MONITORING: Credit monitoring was developed before we had identity theft.

These services are not designed to prevent fraud or identity theft. Banks and financial institutions

lead the consumer to think that it does. A consumer can obtain a free credit report of their own

information every twelve months. There are credit monitoring services available to notify you if

activity takes place. Make sure the company you choose to use will be checking with all three

credit bureau companies or you will still be left vulnerable. Sometimes it takes a month or two

before a newly opened account appears on your credit file. Thieves also sell your information to

other thieves when they are finished using it.

limitations of theft INSURANCE

LimitationsConcerningLawsuits

If you decide to file a lawsuit against a reckless driver or claim monetary damages, you must

meet specific criteria concerning your injuries. This is called a lawsuit limitation option. You

should consult the following list to see if your injuries meet any of the following criteria.

Otherwise, you will not be legally entitled to make a claim or sue another driver:

1: Death Type

2: Dismemberment Type

3: Significant Disfigurement/Scarring Type

4: Displaced Fracture Type

5: Loss of a Fetus Type

6: Permanent Injury Permanent injuries refer to body parts that will never heal sufficiently to

enable normal function. 

115

(2.5.4): Accident Insurance Benefits:

Benefits From Personal Accident Insurance.

You already have a life insurance policy, is that enough? Not really. Your regular life insurance

policy may not adequately cover you against the risks you face out at work, traveling or even

when just staying at home. What you need is Personal Accident Insurance.

A personal accident insurance policy is an insurance contract that covers risk arising from

accidents, be it at home, or outside. By investing in Accident Insurance, you can protect your

family and yourself from the financial concerns such as loss of income and medical expenses

that unforeseen accidents lead to.

A Personal accident plan would cover the individual and his dependants from the risk of death

due to an accident. In addition to that, depending on the plan that is chosen, the personal

accident insurance policy would also compensate the insured person for loss of income in case

of temporary or permanent disablement. When you are selecting a plan, it is a good idea to

ensure that additional benefits include family transportation, transport of imported medicines,

purchase of blood, etc.

Good Personal Accident Insurance will give you peace of mind that will tide you through, if

you meet with any big or small mishap. Without appropriate accident insurance, you may have

to undertake significant financial expenditure to get the care that you require.

116

Instant Policy, No Medical Test.

24X7,worldwide cover.

Offer upto Rs.25 Lakhs cover without income proof.

Renew policy anytime, anywhere with InstaRenew.

Dedicated Customer Services Helpline - 1860 425 0000.

Facility to chat online for information.

Easy, ISO certified Claims process.

Instant coverage, within 5 minutes.

Single policy to cover entire family

Policy cover available for 1 year.

Limitation:

Every time you drive out in your car, you are taking a risk. A small mishap can leave you

holding a bill of a few thousand rupees. The bill could be fatter if someone gets hurt or dies.

There is no limit to the compensation that can be claimed. In 2002, a court awarded 12 crore to

the family of an NRI doctor killed in an accident.

Thankfully, third-party liability insurance is mandatory for all vehicles and offers unlimited

cover for injuries and death caused by the vehicle. Third-party insurance rates were hiked in

April this year but are still very low. For less than 1,000 a year, the owner of a midsized car is

fully protected against claims by accident victims.

However, this can change soon. The amended Motor Vehicles Act 1988, which has been passed

by the Rajya Sabha and will be tabled in the Lok Sabha in the monsoon session of Parliament,

places a cap on the liability of insurance companies . The insurer will be liable to pay a

maximum compensation of 1 lakh in case of injuries or disability, and 10 lakh in case of death.

117

Double whammy for victims

Placing a cap on the liability of the insurance company is obviously not in the interest of the

victim. Considering the high cost of health care, a compensation of 1 lakh for injuries means just

enough to pay for 3-4 days of hospitalisation.

The change could have serious ramifications for car owners as well. "It is not clear whether a

victim can claim more than the limit set under the proposed law," says Delhi-based lawyer

Navneet Goyal. If he is not satisfied with the compensation awarded by the Motor Accident

Claims Tribunal (MACT), an accident victim can appeal in a higher court. In April this year,

Goyal won an appeal in the Delhi High Court to enhance the compensation awarded to the

widow of an accident victim by the MACT.

Instead of capping the liability, says Goyal, the amendment should give the car owner the option

to choose a higher cover. "If 784 a year offers a cover of up to 10 lakh (in case of death), the

buyer should be given the option to pay 2,000 a year for a cover of 30 lakh," he says.

Is your car insured?

The huge compensation paid to victims should be a wake-up call for owners who don't take their

vehicle insurance seriously . It is illegal to drive a motor vehicle without third-party cover, and if

you forget to renew your car's insurance, you are taking a bigger risk than you can possibly

fathom. If the vehicle is involved in a fatal accident, even if someone else was driving it, you

will have to pay a compensation from your own pocket. In many cases, even though the victim

has been at fault, courts have awarded 40-50 % of the claimed amount as compensation.

What to do in case of a mishap

If your car is involved in an accident, the first thing to do is to report the matter to the police.

Two cases are filed after an accident. One is a criminal case, which examines the culpability of

the driver, while the other is a compensation case filed in the MACT. The outcome of the latter

case does not affect the criminal case for negligent driving in any way. Make sure the police

report does not twist facts to hurt your interests.

118

(2.6) Opportunity and Challenges of Insurance industry in India

 

The increased growth in the Indian middle income group has posed incremental growth in the

insurance sector in India.

 

The Indian insurance sector is on a bull run. The average Indian nowspends 5.4 times as much

on life insurance as what s/he did seven years ago when theindustry was yet to be opened up for

private participation.With the largest number of life insurance policies in force in the world,

India's insurancesector accounted for 4.1 per cent of GDP in 2006-07, up from 1.2 per cent in

1999-2000,far ahead of China where insurance accounts for just 1.7 per cent of the GDP and

eventhe US where insurance penetration stands at 4 per cent of the GDP.Indians are now setting

aside a larger chunk of their income on life insurance whenmeasured as a percentage of GDP.

They are allocating a small amount of their take-hometo buy insurance products given their

rising equated monthly installment (EMI) paymentsfor home mortgage and other loans. The

growth in insurance premium collections has spelt an opportunity for the equitymarket too. The

industry's investment in the equity market stood at US$ 38.1 billion andthe assets under

management were at US$ 152.6 billion as on March 31, 2007.Indian insurance companies

recorded a 19.9 per cent growth in premium in dollar terms(adjusted for inflation) in 2006-07,

compared to the world market growth rate of 2.9 per cent. This rate of growth of the industry

looks particularly impressive when seen againstthe fact that the combined penetration of both life

and non-life is less than 2 per cent of the GDP compared to world average of 7.52 per cent.

Clearly, the scope for growth isenormous. Nonetheless, the minimal foreign investment allowed

within the country increase theneed for partnerships to operate in the Indian environment.

Privatization Of Insurance Essays and Term Papers

1. India-Super Power

Clearing of fast track Projects. f) Simplified Tax rules. g) Privatisation of Insurance. This is

just a part of the tax reform package offered for our presently...

1.[2.] Management Book From Hp

ECONOMICS ed Revise INDIAN ECONOMY S.K. Misra & V.K. Puri Part 1 Economic

Development: A Theoretical Background Part 2 Structure of the Indian Economy Part 3...

119

2.[3.] Economy

Clearing of fast track Projects. f) Simplified Tax rules. g) Privatisation of Insurance. This is

just a part of the tax reform package offered for our presently...

3.[4.] Student In High School Teaching Education

surrender value and nomination fire insurance - marine insurance - burglary insurance

mediclaim policy - privatisation of insurance - meaning need and benefits...

4.[5.] Privatisation Of Life Insurance In Context Of Reliance

to grow Company Profile 1.2 (a) Name of the firm / company Name- Reliance life insurance

co.ltd. Headquarter- Navi Mumbai Website- www.reliancelife.com...

5.[6.] Health Privatisation In Australia

public and private health care and analyses whether the move of privatisation would be more

or less efficient. This is shown through the study of a two-tier health...

6.[7.] Insurance Sector Of India

in 1971 and it commence business on January 1sst 1973. This millennium has seen insurance

come a full circle in a journey extending to nearly 200 years...

7.[8.] Mobilisation Of Funds In Insurance Industry

1994 the commends privatisation of the insurance sector and setting up

9.Case Study Of Insurance Services

Minister, Mr. Nguyen Duc Binh, Deputy General Director of Post Joint Stock Insurance

Company, Mr. Mac Van Tien, visiting professor of National Economics University...

2. Role Of The Insurance Industry In Economic Development

we are going to see is the health system in these countries being privatised and individuals

buying private health insurance. Currently 47% of the Irish population..

.

120

3. The Privatisation Of The Uk El

has taken the form of a new, competitive market. Thus since the beginning of privatisation in

the early 1990’s the market has seen a transformation from public...

4. Experts Expect Health-Insurance Costs To Keep Soaring

the people's willingness to pay for it. (Ch 2 p54-55) The insurance companies can pass on

this cost to us because we are in a position that we are willing to pay...

5. Insurance Career

a week or even longer (Vault.com, 1999). The median annual earnings of salaried insurance

sales workers were $31,500 in 1997 (Abraham & Herman, 1998). The middle...

6. War On Terrorism Is Too Soft To Insure Victory

War on terrorism is too soft to insure victory America seems to have learned nothing from

Vietnam. A few troops here and there, appeasement of protesters and an...

7. Insurance Law

imp car owned by a Mrs Gent, her husband was named diver on the policy. The insurance

contract was amended to cover a red alpine on the day it was driven and crashed...

8. Ruff. Insurance

prevention engineer who meets with clients and helps to evaluate the risk of insuring a

potential client. Once the sale is completed the district manager assigns...

9. Insurance Fraud

200 million and 15 years too late." Works Cited "Frankel Gets 16 Years for Insurance

Fraud." Associated Press 2004. . .b Bell, Rachael. "MARTIN FRANKEL: SEX...

10. Term Insurance

death. Pay outstanding debts and long-term obligations Consider life insurance so that your

loved ones have the money to offset burial costs, credit card debts...

11. Insurance Law In Minnesota

the breach. Olson v. Rugloski, 277 N.W.2d 385 (Minn. 1979). Also, insured may recover

attorney fees and expenses for successfully bringing an action to enforce duty...

12. Quicken Insurance

121

Dean Witter analysts believed that a shift to an Internet distribution channel would save

insurance carriers 10 to 15 percent per policy per year over the current...

13. Medical Insurance Availability

their children happy, and stay healthy. With numbers of Americans without health insurance

rising above 45 million, death rates are climbing. This extreme problem...

14. Auto Insurance

important. It helps the policy holder to protect their car from accidents. Automobile

insurance covers any possible damage to the policy holder's vehicle. Depending...

122

(2.6.1): OPPORTUNITIES & CHALLENGES OF HEALTH:

Market Press Release – January 21, 2010 12:27 pm – Indi Quest Research Services has released

its report titled, “Rural Insurance in India – Opportunities and Challenges” today. The report

released, focuses on the potential of life and health insurance in the Indian rural regions.

 During the past decade India has registered consistent economic growth which has catapulted

prosperity in the country. This growth in the Indian markets - broadly divided as urban and

rural-have attracted high levels of foreign investments. The investment influx propelled

economic growth in the Indian urban regions leading to its rapid growth and subsequent

saturation as well. The focus of companies across sectors, thus, is gradually moving to the urban

markets counterpart, the Indian rural market.

The rural markets, too have gained from the changes in the economy with the overall per capita

income, literacy levels and the introduction of new products and services having increased over

the decade. Other triggers to the rural regions economic development include the

Indian government policies of loan waivers, employment guarantee schemes and better housing

facilities. Amongst the sectors that have commenced their foray in the rural regions insurance

reveals a huge potential, with high awareness levels and low penetration of insurance. The

report explains the rural regions, its demographics and links these statistics to the opportunities

and challenges that life and health insurance display in the region.

The report containing facts, figures and tables describing “Bharat”- Rural India is an important

reference document for strategists and marketing managers in the insurance sector

AboutIndiQuest   Research Services: Indi Quest, is a provider of customized business research

123

and analysis services. Our service offerings cover industries, sectors, companies, and people

across all verticals. The products range from market study reports, competitor reports and

industry reports to company and people profiles. We also provide bespoke news monitoring

services. Indi Quest has a team of skilled and qualified researchers and analysts with experience

on diverse projects

124

(2.6.2): OPPORTUNITIES & CHALLENGES OF FIRE: 

The increased growth in the Indian middle income group has posed incremental growth in the insurance sector in India. The Indian insurance sector is on a bull run. The average Indian nowspends 5.4 times as much on life insurance as what s/he did seven years ago when theindustry was yet to be opened up for private participation.With the largest number of life insurance policies in force in the world, India's insurancesector accounted for 4.1 per cent of GDP in 2006-07, up from 1.2 per cent in 1999-2000,far ahead of China where insurance accounts for just 1.7 per cent of the GDP and eventhe US where insurance penetration stands at 4 per cent of the GDP.Indians are now setting aside a larger chunk of their income on life insurance whenmeasured as a percentage of GDP. They are allocating a small amount of their take-hometo buy insurance products given their rising equated monthly installment (EMI) paymentsfor home mortgage and other loans. The growth in insurance premium collections has spelt an opportunity for the equitymarket too. The industry's investment in the equity market stood at US$ 38.1 billion andthe assets under management were at US$ 152.6 billion as on March 31, 2007.Indian insurance companies recorded a 19.9 per cent growth in premium in dollar terms(adjusted for inflation) in 2006-07, compared to the world market growth rate of 2.9 per cent. This rate of growth of the industry looks particularly impressive when seen againstthe fact that the combined penetration of both life and non-life is less than 2 per cent of the GDP compared to world average of 7.52 per cent. Clearly, the scope for growth isenormous. Nonetheless, the minimal foreign investment allowed within the country increase theneed for partnerships to operate in the Indian environment.

Privatization of Fire Insurance

Privatization Of Insurance Essays and Term Papers2. India-Super Power

Clearing of fast track Projects. f) Simplified Tax rules. g) Privatisation of Insurance. This is just a part of the tax reform package offered for our presently...

1.[2.] Management Book From Hp ECONOMICS ed Revise INDIAN ECONOMY S.K. Misra & V.K. Puri Part 1 Economic Development: A Theoretical Background Part 2 Structure of the Indian Economy Part 3...

2.[3.] Economy Clearing of fast track Projects. f) Simplified Tax rules. g) Privatisation of Insurance. This is just a part of the tax reform package offered for our presently...

3.[4.] Student In High School Teaching Education surrender value and nomination fire insurance - marine insurance - burglary insurance mediclaim policy - privatisation of insurance - meaning need and benefits...

125

4.[5.] Privatisation Of Life Insurance In Context Of Reliance to grow Company Profile 1.2 (a) Name of the firm / company Name- Reliance life insurance co.ltd. Headquarter- Navi Mumbai Website- www.reliancelife.com...

5.[6.] Health Privatisation In Australia public and private health care and analyses whether the move of privatisation would be more or less efficient. This is shown through the study of a two-tier health...

6.[7.] Insurance Sector Of India in 1971 and it commence business on January 1sst 1973. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years...

7.[8.] Mobilisation Of Funds In Insurance Industry

1994 the commends privatisation of the insurance sector and setting up

9.Case Study Of Insurance ServicesMinister, Mr. Nguyen Duc Binh, Deputy General Director of Post Joint Stock Insurance Company, Mr. Mac Van Tien, visiting professor of National Economics University...

15. Role Of The Insurance Industry In Economic Development we are going to see is the health system in these countries being privatised and individuals buying private health insurance. Currently 47% of the Irish population...

16. The Privatisation Of The Uk El has taken the form of a new, competitive market. Thus since the beginning of privatisation in the early 1990’s the market has seen a transformation from public...

17. Experts Expect Health-Insurance Costs To Keep Soaring the people's willingness to pay for it. (Ch 2 p54-55) The insurance companies can pass on this cost to us because we are in a position that we are willing to pay...

18. Insurance Career a week or even longer (Vault.com, 1999). The median annual earnings of salaried insurance sales workers were $31,500 in 1997 (Abraham & Herman, 1998). The middle...

19. War On Terrorism Is Too Soft To Insure Victory War on terrorism is too soft to insure victory America seems to have learned nothing from Vietnam. A few troops here and there, appeasement of protesters and an...

20. Insurance Law imp car owned by a Mrs Gent, her husband was named diver on the policy. The insurance contract was amended to cover a red alpine on the day it was driven and crashed...

21. Ruff. Insurance prevention engineer who meets with clients and helps to evaluate the risk of insuring a potential client. Once the sale is completed the district manager assigns...

126

22. Insurance Fraud

200 million and 15 years too late." Works Cited "Frankel Gets 16 Years for Insurance

Fraud." Associated Press 2004. . .b Bell, Rachael. "MARTIN FRANKEL: SEX...

23. Term Insurance

death. Pay outstanding debts and long-term obligations Consider life insurance so that your

loved ones have the money to offset burial costs, credit card debts...

24. Insurance Law In Minnesota

the breach. Olson v. Rugloski, 277 N.W.2d 385 (Minn. 1979). Also, insured may recover

attorney fees and expenses for successfully bringing an action to enforce duty...

25. Quicken Insurance

Dean Witter analysts believed that a shift to an Internet distribution channel would save

insurance carriers 10 to 15 percent per policy per year over the current...

26. Medical Insurance Availability

their children happy, and stay healthy. With numbers of Americans without health insurance

rising above 45 million, death rates are climbing. This extreme problem...

27. Auto Insurance

important. It helps the policy holder to protect their car from accidents. Automobile

insurance covers any possible damage to the policy holder's vehicle. Depending...

127

(2.6.3): OPPORTUNITIES & CHALLENGES OF VEHICLE:

While most Indian media attention has been focussed on Pranab Mukherjee and what the end of

his unproductive time as finance minister might mean for economic progress now that prime

minister Manmohan Singh has taken over the job, a significant liberalisation move has been

made by the usually moribund

A.K.Antony (right), the defence minister, has shied away from as many reforms as he can since

he took the job in 2006, slowing down plans that were being backed by his predecessor  –

ironically Mukherjee. But ten days ago he allowed a landmark initiative to go ahead   on the

modernisation of India’s inefficient and often corrupt defence manufacturing industry when the

Indian Army invited a private sector group to compete against the public sector for the design

and development of an important internet-based advanced technology project, the Tactical

Communication Systems (TCS).

The private sector companies involved are Larsen & Toubro (L&T), Tata Power SED and HCL –

the first two are specialists in high technology precision engineering and HCL is a leader in

information technology. They will compete against Bharat Electronics (BEL), a defence public

sector corporation (DPSU).

This is the Indian private sector’s first significant opportunity to show that it has the capability to

beat deeply entrenched public sector defence manufacturing companies that often rely on re-

assembling imported foreign components as high cost Indian products without any significant

gain in technological and manufacturing know-how.

That practice has become widely publicised in recent months following allegations made by

General V.K.Singh, who retired as army chief of staff a month ago, that he was offered a bribe to

back excessively over-priced Tatra army trucks . These trucks (no link with the Tata group) have

been produced for the past 26 years by the public sector Bharat Earth Movers (BEML) with

components imported from a foreign company. The army chief alleged that only 60% of the

components had been indigenised in the 26 years – even the left-hand drive had not been

changed. (The BEML executive chairman has been suspended, and the Ministry of Defence

decidedten days ago to end the nominated contract system used, without any competitive

tendering, for the Tatra trucks and many other public sector purchases.)

The TCS project, which is provisionally estimated to cost Rs10,000 crore ($2bn), is the first

“make” programme under the government’s defence procurement procedure. This is aimed at

bringing in private sector companies to develop India’s very limited ability to produce advanced

defence equipment. The government will cover 80% of development costs and the remaining

128

20% will come from the private and public sector companies involved, which have to produce

prototypes with at least 30% Indian made components.

Public sector pressure

Eventually, after more than two years of design, development and testing, it is intended that the

government will award the production contract to one of the two contenders. At that stage

however, if BEL is not winning, there will be intense pressure to give the public sector a

significant role.

India’s manufacturing private sector has proved its international competitiveness in the past

decade, especially in the auto industry, and some companies like L&T have been working in

high technology space and missile manufacturing for decades. But the defence establishment,

which includes the defence ministry, parts of the armed forces, the public sector corporations,

foreign suppliers and defence agents, all connived to block private sector development.

Pressure however is growing and the Planning Commission has recently called for Indian

companies to be prime contractors for all major contracts under the “make” and similar

provisions.

India has an annual defence budget of $40bn, including capital expenditure of 15bn, and is the

world’s biggest importer of defence equipment according to a report earlier this year, accounting

for 10% of global arms imports between 2007 and 2011. Its defence imports are officially put at

70% of total purchases, but the actual figure is far higher at maybe around 85% if   component

imports done by the DPSUs are included.

Antony is not a reformer. He has blocked the designation of about 12 big companies, including

Tata, L&T, HCL and Mahindra, as defence “champions” capable of becoming internationally

recognised systems integrators. He has apparently been persuaded by small and medium sized

companies that they would be left out, whereas they would actually gain as suppliers to the 12.

He has also bowed to defence establishment pressure and watered down offset plans   that would

force foreign suppliers to make up to 40% of their equipment in India.

Much as he may have wanted to, he had little opportunity of reversing procedures that led up to

the TCS announcement because it would have caused an uproar, especially from the army that

wants to break free from the public sector dominance. The battle is far from over however. The

next “make” project in the pipeline is for a futuristic infantry combat vehicle (FICV) where the

developers have yet to be named.

129

The defence public sector will continue to try to block further private sector advances on this and

other projects and will often be successful while Antony is defence minister. And the private

sector now has to prove that it can deliver to international standards.

(2.6.4): OPPORTUNITIES & CHALLENGES OF THEFT:

The above two principles can be used to design insurance programs where data are available to

develop risk-based rates. During the past 20 years catastrophe models have been constructed

with inputs by scientists and engineers to better estimate the likelihood and damages resulting

from disasters of different magnitudes and intensities. Although there is uncertainty surrounding

these figures, insurers and reinsurers have utilized these models to price the risk and determine

how much coverage they want to offer in hazard-prone areas.

Premiums Reflecting Risk

The first step in developing an insurance program that would adhere to Principle 1 is to

estimate the risk-based rates that would apply to different regions of the country. A major issue

that needs to be addressed is how to reach agreement on a given risk assessment, and the role

that state regulators will play in the process. We believe that regulators should stay out of the rate

setting business. If one allows a truly competitive market to operate, then insurers would not

engage in price-gouging since they would be undercut by another competing company who

would know that it could profitably market policies at a lower price. Regulators would still have

130

an important role to play with respect to other aspects of the insurance operation (e.g. making

certain that insurers have sufficient surplus to protect unsuspecting consumers against the

possibility of their becoming insolvent following the next severe disaster).

Affordability of Coverage

Although issues of affordability of insurance have been widely discussed by the media,

little economic analysis has been done on this issue using empirical data. To address this

problem we utilized U.S. Census data to examine how severe this problem actually is today. The

data revealed that many homeowners whose income is below the 100 or 200 percent of poverty

level actually purchase homeowners’ insurance while some individuals above this level do not

buy this coverage.

                                                           

131

(2.6.5): OPPORTUNITIES & CHALLENGES OF ACCCIDENT:

Unless you are in a no-fault state, you cannot recover money damages unless "liability" exists.

The legal term for what you have to show is "negligence," which means carelessness. In the

context of driving, examples of negligence are:

not seeing another vehicle that should have been seen

following too closely

driving too fast for the circumstances (weather, visibility)

making an unsafe turn

disobeying traffic signals or signs, and

talking on the phone/texting while driving

In the most common type of accident, a rear-ender, the tailing driver is usually deemed negligent

because he or she wasn't paying sufficient attention and didn't keep a safe distance between

vehicles. Hopefully you carried out the proper steps after a car accident.

What if the other driver was negligent, but you were too? If the other driver was negligent, but

you were also driving in a careless manner, your claim is completely defeated (in some states) or

at least reduced (in most states). To understand how the different rules work, and how your claim

might be affected, read about Comparative and Contributory Negligence.

Extent of your Damages

Assuming that liability exists, the only remaining question is, how much are you entitled to

recover as compensation for your injuries? There are three commonly used methods of

determining accident settlement value in routine car accident cases:

1.  Colossus.

2.  Multiple of specials.

3.  Per diem.

132

Colossus

Under this method, to determine accident settlement value, you add these elements of damage

together:

1.  Medical bills.

2.  Lost income.

3.  Pain and suffering damages.

The insurance company may challenge the amount of medical bills and lost income that you

claim. (Learn more about successfully negotiating with insurance adjusters) They may claim that

some of your medical bills were for unnecessary treatment or that the charges are unreasonably

high, or they may contend that your claim for lost income is excessive or not supported by the

medical records. Usually, these defense claims are weak. If you got the treatment recommended

by your health care providers and missed only the work that your doctors said you needed to

miss, you should be able to recover all of your medical bills and lost income. The much more

difficult question to answer is, how much are you entitled to recover for your pain and suffering?

133

(2.7) COMPANIES OF GENERAL INSURANCE:

Public Sector: Government of India Fully owned 4 companies:

1. National Insurance Co Ltd (public sector)

2. New India Assurance Co Ltd (public sector)

3. Oriental Insurance Co Ltd (public sector)

4. United India Insurance Co Ltd (public sector)

HDFC ERGO General Insurance:

1. ICICI Lombard

2. IFFCO Tokyo

3. Liberty Videocon General Insurance Co Ltd

4. L & T General Insurance

5. Magma HDI General Insurance Co Ltd

6. Raheja QBE General Insurance

7. Reliance General Insurance

8. Royal Sundaram

9. SBI General Insurance

10. Shriram General Insurance

11. Tata AIG General

12. Universal Sompo General Insurance

Private Sector

1. Apollo Munich Health Insurance

2. Max Bupa Health Insurance

3. Religare Health Insurance Company Ltd

4. Star Health Insurance

134

Top Health insurance Companies in India:

Health insurance is no longer a luxury for us, Indians, it has become a need. Even with the

increasing disposable incomes, we can no longer afford the hospital expenses for ourselves and

our loved ones due to the increasing rate of medical inflation. So we can no longer depend on

our savings or generosity of our friends and families or even relax with our company’s health

insurance, we need an independent health insurance cover for ourselves and for our family.

But even with the need for health insurance realized, we find it confusing to find the right

health policy for ourselves with so many health insurance companies in the market. We give

you the ‘Ten top health insurance companies in India’ and their popular products

This information is just to give you an introduction of the top health insurance companies   and

name some of their products. To buy a health insurance policy, read about the basics of health

insurance like pre-existing illnesses, waiting period, loading, exclusions, how to renew, whom

to buy a policy from and how to compare health insurance policies. Only after understanding it,

should you go ahead and buy it.

1. Star Health & Allied Insurance Company Limited: Star Health and Allied health

Insurance Company Limited (Star Health) is a joint venture between Oman health Insurance

Company, ETA Ascon Group and a number of insurance veterans in the country. It is also the

first dedicated health insurance company in India. Known for its innovation, Star has some very

unique products like Diabetes Safe which is for diabetic patients and Star Net plus which is

designed for HIV+ patients. Star Health insurance has an in-house TPA which increases its

efficiency in dealing with cashless cases. They also have a unique feature where in customers 2.

Max Bupa Health insurance: Max Bupa Health Insurance is a joint venture between Max

India Limited and Bupa Group, one of the international healthcare providers. Formed in 2010,

Max Bupa has brought changes in the health insurance market in India with innovative and

customer friendly products. They have a policy of not loading the customer or handling out ‘no

claim bonuses’ and have a region wise premium. They have no fixed enrollment age which

means people of any age group can buy their policies. These policies also have guaranteed

renewal which means you won’t be denied renewal in your 70s and 80s when you need it most.

135

Their ‘Heartbeat’.

3.Apollo Munich: Apollo Munich Health Insurance Co. Ltd. is the new name for Apollo DKV

Insurance Co. Ltd. which is a partnership between The Apollo Hospitals Group, and Germany

based Mun+`ich Re’s newest business segment, Munich Health. They also bring a change in

911terms of customer friendly features like lifetime renewal and portability benefits for existing

policies which means you can buy Apollo’s policy and get the continuation benefits of your

existin g policy. Apollo Munich also covers maternity after a waiting period.

4. Reliance Health insurance: Reliance health insurance is one of the private general insurance

companies in India. They also have a few good health insurance products, in their ‘Health wise’

policy range; critical illnesses are covered as a part of the policy. There is also a choice of

reducing waiting period for pre-existing illnesses to 2 years from the industry standard of 4

years. It covers those between the ages of 5-75.

 5. ICICI Lombard: ICICI Lombard GIC Ltd. is the largest private sector general insurance

company in India. It has some good health insurance plans - like Health Advantage which covers

not only hospitalization expenses but also outpatient expenses like dental, upto a limit. Maternity

cover is also available under this product. The company has also added Health insurance Guide,

an interactive tool to help the customer select a plan to suit his requirements.

6.Bajaj Allianz General Insurance: Bajaj Allianz General Insurance Company Limited is a

joint venture between Bajaj Finserv Limited and Allianz SE. Health insurance policies offered by

them include Health Guard (Mediclaim), Silver health (Senior Citizen) and Star package (Family

Floater), there are also other plans like Hospital Cash which gives an amount on every day of

hospitalization and Critical Illness which gives a lump sum in the event that the insured contracts

one of the critical illnesses listed like cancer during the policy period. Bajaj was the first

company to come up with a captive TPA with ensuing efficiencies.

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Now for Health Insurance from Public Sector General Insurance Companies,

7.Oriental insurance: One of the four public sector units, Oriental insurance offers a number of

health insurance products including Individual med claim, Universal health insurance scheme

and family floaters to the customers. Optional benefits like Personal Accident and Life Hardship

Survival can be added with the basic health cover to avail extra benefit. Their Happy Family

floater is a popular product because it doesn’t require medical check-up till the age of 60 (it is

mandatory for everyone over the age of 45 to take a health check-up in other policies).

8.United India Insurance: Another of the public sector units, United India health Insurance

Company Limited also offers a wide range of health insurance products like Family Medicare-

Gold, Platinum, Senior Citizen, Top-up and Super Top-up. Top-up and Super Top-up products

are products which provide additional cover amount if you find your basic cover insufficient.

9. New India Assurance: It is one of the first Indian owned companies when it was formed in

1919. It offers different health insurance products like Medic aim policy, senior citizen Universal

health insurance policy. The unique feature of their Medic aim policy is the differential rating for

major metros vis-à-vis other locations.

10National Insurance: National’s VarsityMed claim is a popular product, it covers everyone

from the age from 6—80 with special features for senior citizens.

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(2.8) COMPONENTS OF GENERAL INSURANCE:

A fire insurance contract has the following characteristics namely:

(a) Fire insurance is a personal contract

A fire insurance contract does not ensure the safety of the insured property. Its purpose is to see

that the insured does not suffer loss by reason of his interest in the insured property. Hence, if his

connection with the insured property ceases by being transferred to another person, the contract

of insurance also comes to an end. It is not so connected with the subject matter of the insurance

as to pass automatically to the new owner to whom the subject is transferred. The contract of fire

insurance is thus a mere a personal contract between the insured and the insurer for the payment

of money. It can be validly assigned to another only with the consent of the insurer.

(b) It is entire and indivisible contract.

Where the insurance is of a binding and its contents of stock and machinery, the contract is

expressly agreed to be divisible. Thus , where the insured is guilty of breach of duty towards the

insurer in respect of one subject matters covered by the policy , the insurer can avoid the contract

as a whole and not only in respect of that particular subject mater , unless the right is restricted

by the terms of the policy.

(c) Cause of fire is immaterial

In insuring against fire, the insured wishes to protect him from any loss or detriment which he

may suffer upon the occurrence of a fire, however it may be caused. So long as the loss is due to

fire within the meaning of the policy, it is immaterial what the cause of fire is, generally. Thus ,

whether it was because the fire was lighted improperly or was lighted properly but negligently

attended to thereafter or whether the fire was caused on account of the negligence of the insured

or his servants or strangers is immaterial and the insurer is liable to indemnify the insured. In the

absence of fraud, the proximate cause of the loss only is to be looked to.

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The cause of the fire however becomes material to be investigated

(1). Where the fire is occasioned not by the negligence of, but by the willful

(2) Where the fire is due is to cause falling with the exception in the contract.

WHO MAY INSURE AGAINST FIRE?

Only those who have insurable interest in a property can take fire insurance thereon. The

following are among the class of persons who have been held to possess insurable interest in,

property and can insure such property:

1. Owners of property, whether sole, or joint owner, or partner in the firm owning the property. It

is not necessary that they should possession also. Thus a lesser and a lessee can both insure it

jointly or severely.

2. The vender and purchaser have both rights to insure. The vendor's interest continues until the

conveyance is completed and even thereafter, if he has an unpaid vendor's lien over it.

3. The mortgagor and mortgagee have both distinct interests in the mortgaged property and can

insure, per Lord Esher M.R."The mortgagee does not claim his interest through the mortgagor ,

but by virtue of the mortgage which has given him an interest distinct from that of the

mortgagor"[3]

4. Trustees are legal owners and beneficiaries the beneficial owners of trust property and each

can insure it.

5. Bailees such as carriers, pawnbrokers or warehouse men are responsible for there safety of the

property entrusted to them and so can insure it.

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PERSON NOT ENTITLED TO INSURE

One who has no insurable interest in a property cannot insure it. For example:

1. An unsecured creditor cannot insure his debtor's property, because his right is only against the

debtor personally. He can, however, insure the debtor's life.

2. A shareholder in a company cannot insure the property of the company as he has no insurable

interest in any asset of the company even if he is the sole shareholder. As was the case of

Macaura v. Northen Assurance Co.Macaura. Because neither as a simple creditor nor as a

shareholder had he any insurable interest in it.

CONCEPT OF UTMOST FAITH

As all contracts of insurance are contracts of utmost good faith, the proposer for fire insurance is

also under a positive duty to make a full disclosure of all material facts and not to make any

misrepresentations or misdescreptions thereof during the negotiations for obtaining the policy.

This duty of utmost good faith applies equally to the insurer and the insured. There must be

complete good faith on the part of the assured. This duty to observe utmost good faith is ensured

b requiring the proposer to declare that the statements in the proposal form are true, that they

shall be the basis of the contract and that any incorrect or false statement therein shall avoid the

policy. The insurer can then rely on them to assess the risk and to fix appropriate premium and

accept the risk or decline it.

The questions in the proposal form for a fire policy are so framed as to get all information which

is material to the insurer to know in order to assess the risk and fix the premium, that is, all

material facts. Thus the proposer is required too give information relating to: The proposer's

name and address and occupation The description of the subject matter to be insured sufficient

for the purpose of identifying it including,

A description of the locality where it is situatedHow the property is being used, whether for any

manufacturing purpose or hazardous trade .etc Whether it has already been insured And also ant

personal insurance history including the claims if any made buy the proposer, etc.

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Apart from questions in the proposal form, the proposer should disclose whether questioned or

not-

1. Any information which would indicate the risk of fire to be above normal;

2. Any fact which would indicate that the insurer's liability may be more than normal can be

expected such as existence of valuable manuscripts or documents, etc, and

3. Any information bearing upon the more; hazard involved.

The proposer is not obliged to disclose-

1. Information which the insurer may be presumed to know in the ordinary course of his business

as an insurer;

2. Facts which tend to show that the risk is lesser than otherwise;

3. Facts as to which information is waived by the insurer; and

4. Facts which need not disclosed in view of a policy condition.

Thus, assured is under a solemn obligation to make full disclosure of material facts which may

be relevant for the insurer to take into account while deciding whether the proposal should be

accepted or not. While making a disclosure of the relevant facts, the

DOCTRINE OF PROXIMATE CAUSE

Where more perils than one act simultaneously or successively, it will be difficult to assess the

relative effect of each peril or pick out one of these as the actual cause of the loss. In such cases,

the doctrine of proximate cause helps to determine the actual cause of the loss. 

Proximate cause was defined in Pawley v. Scottish Union and National Ins. Co., as "the active,

effective cause that sets in motion a train of events which brings about a result without the

intervention of any force started and working actively from a new and independent source." It is

dominant and effective cause even though it is not the nearest in time. It is therefore necessary

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when a loss occurs to investigate and ascertain what the proximate cause of the loss is in order to

determine whether the insurer is liable for the loss.

PROXIMATE CAUSE OF DAMAGE

A fire policy covers risks where damage is caused by way of fire. The fire may be caused by

lightening, by explosion or implosion. It may be result of riot, strike or on account of any,

malicious act. However these factors must ultimately lead to a fire and the fire must be the

proximate cause of damage. Therefore, a loss caused by theft of property by militants would not

be covered by the fire policy. The view that the loss was covered under the malicious act clause

and therefore .the insurer was liable to meet the claim is untenable, because unless and until fire

is the proximate cause f damage, no claim under a fire policy would be maintainable.

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(2.8.1): Component so health insurance

When a company insures an individual entity, there are basic legal requirements. Several

commonly cited legal principles of insurance include

1. Indemnity – the insurance company indemnifies, or compensates, the insured in the

case of certain losses only up to the insured's interest.

2. Insurable interest – the insured typically must directly suffer from the loss. Insurable

interest must exist whether property insurance or insurance on a person is involved. The

concept requires that the insured have a "stake" in the loss or damage to the life or

property insured. What that "stake" is will be determined by the kind of insurance

involved and the nature of the property ownership or relationship between the persons.

The requirement of an insurable interest is what distinguishes insurance from gambling.

3. Utmost good faith – the insured and the insurer are bound by a good faith bond of

honesty and fairness. Material facts must be disclosed.

4. Contribution – insurers which have similar obligations to the insured contribute in the

indemnification, according to some method.

5. Subrogation – the insurance company acquires legal rights to pursue recoveries on

behalf of the insured; for example, the insurer may sue those liable for insured's loss.

6. Cause proximate, or proximate cause – the cause of loss (the peril) must be covered

under the insuring agreement of the policy, and the dominant cause must not be

excluded.

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(2.8.2): Component so fire insurance:

A fire insurance contract has the following characteristics namely:

(a) Fire insurance is a personal contract

A fire insurance contract does not ensure the safety of the insured property. Its purpose is to see

that the insured does not suffer loss by reason of his interest in the insured property. Hence, if his

connection with the insured property ceases by being transferred to another person, the contract

of insurance also comes to an end. It is not so connected with the subject matter of the insurance

as to pass automatically to the new owner to whom the subject is transferred. The contract of fire

insurance is thus a mere a personal contract between the insured and the insurer for the payment

of money. It can be validly assigned to another only with the consent of the insurer.

(b) It is entire and indivisible contract.

Where the insurance is of a binding and its contents of stock and machinery, the contract is

expressly agreed to be divisible. Thus , where the insured is guilty of breach of duty towards the

insurer in respect of one subject matters covered by the policy , the insurer can avoid the contract

as a whole and not only in respect of that particular subject mater , unless the right is restricted

by the terms of the policy.

(c) Cause of fire is immaterial

In insuring against fire, the insured wishes to protect him from any loss or detriment which he

may suffer upon the occurrence of a fire, however it may be caused. So long as the loss is due to

fire within the meaning of the policy, it is immaterial what the cause of fire is, generally. Thus ,

whether it was because the fire was lighted improperly or was lighted properly but negligently

attended to thereafter or whether the fire was caused on account of the negligence of the insured

or his servants or strangers is immaterial and the insurer is liable to indemnify the insured. In the

absence of fraud, the proximate cause of the loss only is to be looked to.

The cause of the fire however becomes material to be investigated

(1). Where the fire is occasioned not by the negligence of, but by the willful

(2) Where the fire is due is to cause falling with the exception in the contract.

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WHO MAY INSURE AGAINST FIRE?

Only those who have insurable interest in a property can take fire insurance thereon. The

following are among the class of persons who have been held to possess insurable interest in,

property and can insure such property:

1. Owners of property, whether sole, or joint owner, or partner in the firm owning the property. It

is not necessary that they should possession also. Thus a lesser and a lessee can both insure it

jointly or severely.

2. The vender and purchaser have both rights to insure. The vendor's interest continues until the

conveyance is completed and even thereafter, if he has an unpaid vendor's lien over it.

3. The mortgagor and mortgagee have both distinct interests in the mortgaged property and can

insure, per Lord Esher M.R."The mortgagee does not claim his interest through the mortgagor ,

but by virtue of the mortgage which has given him an interest distinct from that of the mortgagor

4. Trustees are legal owners and beneficiaries the beneficial owners of trust property and each

can insure it.

5. Bailees such as carriers, pawnbrokers or warehouse men are responsible for there safety of the

property entrusted to them and so can insure it.

PERSON NOT ENTITLED TO INSURE

One who has no insurable interest in a property cannot insure it. For example:

1. An unsecured creditor cannot insure his debtor's property, because his right is only against the

debtor personally. He can, however, insure the debtor's life.

2. A shareholder in a company cannot insure the property of the company as he has no insurable

interest in any asset of the company even if he is the sole shareholder. As was the case of

Macaura v. Northen Assurance Co.Macaura. Because neither as a simple creditor nor as a

shareholder had he any insurable interest in it.

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CONCEPT OF UTMOST FAITH

As all contracts of insurance are contracts of utmost good faith, the proposer for fire insurance is

also under a positive duty to make a full disclosure of all material facts and not to make any

misrepresentations or misdescreptions thereof during the negotiations for obtaining the policy.

This duty of utmost good faith applies equally to the insurer and the insured. There must be

complete good faith on the part of the assured. This duty to observe utmost good faith is ensured

b requiring the proposer to declare that the statements in the proposal form are true, that they

shall be the basis of the contract and that any incorrect or false statement therein shall avoid the

policy. The insurer can then rely on them to assess the risk and to fix appropriate premium and

accept the risk or decline it.

The questions in the proposal form for a fire policy are so framed as to get all information which

is material to the insurer to know in order to assess the risk and fix the premium, that is, all

material facts. Thus the proposer is required too give information relating to: The proposer's

name and address and occupation The description of the subject matter to be insured sufficient

for the purpose of identifying it including,

A description of the locality where it is situatedHow the property is being used, whether for any

manufacturing purpose or hazardous trade .etc Whether it has already been insured And also ant

personal insurance history including the claims if any made buy the proposer, etc.

Apart from questions in the proposal form, the proposer should disclose whether questioned or

not-

1. Any information which would indicate the risk of fire to be above normal;

2. Any fact which would indicate that the insurer's liability may be more than normal can be

expected such as existence of valuable manuscripts or documents, etc, and

3. Any information bearing upon the more; hazard involved.

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The proposer is not obliged to disclose-

1. Information which the insurer may be presumed to know in the ordinary course of his business

as an insurer;

2. Facts which tend to show that the risk is lesser than otherwise;

3. Facts as to which information is waived by the insurer; and

4. Facts which need not disclosed in view of a policy condition.

Thus, assured is under a solemn obligation to make full disclosure of material facts which may

be relevant for the insurer to take into account while deciding whether the proposal should be

accepted or not. While making a disclosure of the relevant facts, the

DOCTRINE OF PROXIMATE CAUSE

Where more perils than one act simultaneously or successively, it will be difficult to assess the

relative effect of each peril or pick out one of these as the actual cause of the loss. In such cases,

the doctrine of proximate cause helps to determine the actual cause of the loss. 

Proximate cause was defined in Pawley v. Scottish Union and National Ins. Co., as "the active,

effective cause that sets in motion a train of events which brings about a result without the

intervention of any force started and working actively from a new and independent source." It is

dominant and effective cause even though it is not the nearest in time. It is therefore necessary

when a loss occurs to investigate and ascertain what the proximate cause of the loss is in order to

determine whether the insurer is liable for the loss.

PROXIMATE CAUSE OF DAMAGE

A fire policy covers risks where damage is caused by way of fire. The fire may be caused by

lightening, by explosion or implosion. It may be result of riot, strike or on account of any,

malicious act. However these factors must ultimately lead to a fire and the fire must be the

proximate cause of damage. Therefore, a loss caused by theft of property by militants would not

be covered by the fire policy. The view that the loss was covered under the malicious act clause

and therefore .the insurer was liable to meet the claim is untenable, because unless and until fire

is the proximate cause f damage, no claim under a fire policy would be maintainable.

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(2.8.3): Component so vehicle insurance

Inexpensive auto insurance may end up costing you much more than you expected if you buy

discount car insurance that doesnt provide you with the coverage you require. Its important to

understand the basic types of auto insurance coverage that are available before you begin

comparing rates from different insurance companies. Knowing what is available will help you

choose the coverage the best meets your particular needs.

Before you begin looking for auto insurance discounts, learn what basic and optional insurance

coverage options are currently available. For example, do you know if you require bodily injure

liability protection as well as auto liability insurance? Do you need to purchase gap auto

insurance? You may not have even heard of these auto insurance terms. Do you understand the

difference between full coverage auto insurance and comprehensive auto coverage? If you

answered no to any of these questions, you need to read on to learn more before rushing out to

buy your auto insurance policy.

Many people skip right to the rates offered by an insurance company when they are looking for

auto insurance. However, they fail to review the specific coverage options that a particular

insurance policy offers. There are many different components for auto insurance coverage. 

Before you purchase any type of discount car insurance, be sure you verify the specific minimum

auto insurance requirements of your particular state. Every state has different requirements so

you dont want to end up purchasing an insurance policy that fails to provide you with sufficient

coverage for your area. You can contact your local Department of Motor Vehicles (DMV) or

consult the Internet to verify the minimum requirements in your state.

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Auto insurance helps to protect you and your family from any losses you may suffer as a result

of a motor vehicle accident caused by another driver. Car insurance also protects you and your

family from damage to yourself, your passengers or your property.

The following is a list of the basic types of auto insurance available. You can obtain additional

information about each type of insurance and its components by conducting some research

online. Many websites explain each type of car insurance in detail so you know what type of auto

insurance policy to purchase. 

(2.8.4): Component so theft insurance

Submit the following: Provide proof that a fraud alert was placed with each major Credit Bureau (Experian, Equifax, Transition, etc.) immediately after discovery of Identity Theft; Copy of a police report from your local jurisdiction; Copy of results of any settlement or denial from credit card companies, banks, creditors, etc. concerning Your Identity Theft claim. Copy of the complaint filed with the Federal Trade Commission government agency. The Administrator may reasonably request you file a report with other agencies, such as the Federal Bureau of Investigation; Copy of all receipts, bills or other records that support Your claim for an Identity Theft Expense Reimbursement Plan payment. These records shall be kept in such manner that We can accurately determine the amount of any Loss. Any other documentation that We may reasonably request to validate a claim.Benefits payable under this Evidence of Coverage for any Loss will be paid upon receipt of acceptable proof of such Loss and all required information necessary to support Your claim. All benefits will be paid to You directly or, in case of Your death, to Your estate.

SECONDARY COVERAGE: This coverage is secondary to any applicable insurance or benefit available to you. Coverage is limited to only those eligible amounts not paid by any other provider. If payment is made under this Evidence of Coverage, We are entitled to recover such amounts from other parties or persons. Any person whom receives payment under this coverage must transfer to Us his or her right to recover against any other party or person and must do everything necessary to secure these rights and must do nothing that would jeopardize them, or these rights will be recovered from You.

CONCEALMENT OR MISREPRESENTATION: Your coverage shall be void if, whether before or after a Loss, You have concealed or misrepresented any material fact or circumstances concerning this coverage or the subject thereof, or if You commit fraud or swear falsely in connection with any of the foregoing.

LEGAL ACTIONS: No action at law or in equity shall be brought to recover under the Evidence of Coverage prior to expiration of sixty (60) days after proof of Loss has been submitted in accordance with the requirements of the Evidence of Coverage.

(2.8.5): Component so accident insurance

Indian Law on Accident Claims: No Fault Basis and Mandatory Vehicle Insurance

Indian law on accident claims pertain mostly to the Motor Vehicle Act. Section 140 to 144 of

the Act provides for No Fault Basis, which ensures relief to the families of victims who are

killed in hit and run accidents, and where the killer vehicle is not identified. Compensation is

granted, only if the following is proved:

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Accident was caused by the offending vehicle.

The offending vehicle was insured.

Death or injuries were caused by the accident.

 

Section 145 to 164 of the Act provides for mandatory third party insurance, which is

compulsory for a vehicle owner. This means that if you have a vehicle that you use to move

in public places, you cannot do so legally unless you have an insurance policy. Typically,

your insurance policy papers must always be kept in the car with your car registration and

driving licence. Section 146(1) of the Act prohibits a vehicle owner from using the vehicle in

a public place without undertaking an insurance policy in compliance with the Act.   

Further, the Act provides for unlimited liability and limited defense of the insurance

companies. Several court judgments passed by the Supreme Court have restricted the legal

defense strategies put forward by various insurance companies. Also, the liability to prove

the limited defenses rests on the insurance companies.

 The limited defenses allowed to be made by the insurance companies include:

Use of vehicle for racing and speed testing.

Use of vehicle not allowed by permit.

Divers without a valid Drivers license or who have been disqualified from owning Drivers

license.

Void insurance policy due to non-disclosure of crucial facts.

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(2.9) PRIVATISATION OF GENERAL INSURANCE :

(2.9.1) PRIVATISATION OF HEALTH INSURANCE:

Privatization is a key strategy of the ruling classes, nationally and internationally. A whole raft of

trade agreements has been put in place to facilitate this strategy. The General Agreement on

Trade in Services (GATS) is not designed to improve all our lives but is a set of rules designed to

facilitate the corporate takeover of almost every corner of life, including basic needs such as

water, education, healthcare, and even the genetic codes for life itself.

Sometimes privatization is open, simply involving the selling off of assets to the highest bidder.

Sometimes, especially when sensitive areas such as health and education are involved, it is

covert. The government introduces private money into the public sector and tries to pretend that

this is a good thing, as if the private sector is doing us a favor, rather than chasing a quick profit.

The Private Finance Initiative (PFI) and Public Private Partnerships (PPPs, as used in the London

Underground) are methods of introducing private finance into the public sector and are central to

New Labor’s privatization strategy in Britain and Northern Ireland. Under the PFI hospitals are

built by the private sector and then leased back to the NHS over 20, 25 or 30 years. Paying the

debt is deferred - it is paid from annual income each year. We all know that this is more

expensive in the long run - who buys on credit if they are in a position to buy outright?

Furthermore, PFI schemes always result in fewer beds (in Dudley, England for example, 70

fewer), and in job cuts (1,790 in Dudley, where the staff fought long and hard to resist). The PFI

is very attractive to the private sector with its very high rates of return. Total costs (construction

costs plus financing costs) in a sample of hospitals built under the PFI are 18-60% higher than

construction costs alone. Shareholders in PFI schemes can expect real returns of 15-25% a year.

The consortiums involved in these schemes charge the NHS fees equivalent to 11.2-18.5% of

construction costs. If the Treasury were to finance new hospitals directly out of its own

borrowing, it would pay a real rate of annual interest of 3.0 - 3.5%.

The PFI/PPP approach is being exported. The European Union is at the forefront of these

developments and has declared two key goals: reducing public expenditure and creating fresh

151

"opportunities" for private industry in a recent document ("Making the most of opening of public

procurement", 1997).

The global financial institutions that have become the target of anti-globalisation protesters in

recent years are also busy promoting public - private partnerships across the globe. There are

various types of these partnerships, including what are known as design, build, finance and

operate (DBFO); build, own, operate and transfer (BOOT), and build, operate and transfer

(BOT) schemes.

When the IMF and the World Bank enforce their economic dictates on developing countries,

they insist that all new public infrastructure developments involve PPPs. As a consequence of the

imposition of PPPs, massive cuts take place in the existing public sectors, which means that the

education sector and health services are worse now than they were in the 1960s in many

developing countries.

In 1996 the WTO implemented the "government procurement agreement" which opened up

public contracts to international competition and the WTO, IMF and the World Bank all seek to

promote "markets in infrastructure provision". The European Commission has used grants to

stimulate the development of PPP’s. The PPP market in 1994 was worth €720 billion, or 11.5%

of the gross national product of 15 member states of the European Union, and has grown since.

The European Investment Bank admits that the PPP approach is more expensive than traditional

methods of financing, but justifies its adoption by the claims that the private sector is less "risk

averse" and hence more efficient. The evidence is that the private sector is very averse to risk

indeed. They want to have their cake and eat it. When schemes to provide new computing

systems for the national insurance agency and passport agency went belly-up in Britain, the

government carried the can, refusing to fire the companies involved even though they were

entitled to. The private companies rake in the profit but jump ship when it suits them. The public

don't know everything that goes on as agreements are protected by so-called "commercial

confidentiality".

All governments that accept the restraints of the capitalist system are cutting social spending.

Selling off the assets of the state brings a temporary boost to state finances and PPP’s and the

152

PFI give the appearance of keeping down government borrowing in the short term whilst costing

much, much more in the long term.

In a further twist in the PFI tale, the private sector consortia involved are lining their pockets

even further through "re-financing" deals. Re-financing allows developers to renegotiate the

loans they have taken out to build a hospital at a later date (usually when the project is completed

and supposed "risks" are past - risks are often overstated in any case). Cheaper loans mean higher

returns for shareholders.

Is privatization more efficient?:

We are told that privatization will lead to more efficient industries and public services and will

thus save money. In fact this is seldom the case. The need to generate a profit pushes up costs

and governments can invest more cheaply as they can borrow more cheaply. Of course we are

expected to believe that privatization is good for the economy as a whole, and thus for all of us.

The truth is that it benefits the rich. It is estimated that the private sector in Britain will earn £30

billion a year through the PFI.

There are literally thousands of examples of the inefficiencies and the idiocies of the market. In

the Dominican Republic electricity prices increased by 51% after privatization. Blackouts are

common. The government however is tied into expensive contracts and by 2000 owed the power

companies

The privatization of British Rail has been an unparalleled disaster. The number of train

cancellations trebled between 1996 and 1999. Maintaining the rail system has been contracted

out to more than 20,000 companies. The result: the disaster at Potters Bar. When the

Conservative government in Ontario, Canada, cut the numbers of water-quality inspection staff

and closed government laboratories in favor of private laboratories there was a sharp fall in water

quality. As a consequence in the small town of Walkerton, seven people died as result of water

contamination.

In South Africa 25% of the country’s 44 mill population had their water and electricity

disconnected after privatization. The water service in Lee County, Florida, was returned to public

153

ownership in 2000 after an audit discovered that it was not being maintained adequately by the

private sector. It cost million to rebuild the system.

Power companies are enticed into deals by guarantees that the state will purchase electricity at a

fixed price for up to 30 years. The privatization of electricity has been fiercely resisted in India

where the Maharashtra State Electricity Board (MSEB) has been obliged to hand over hundreds

of millions to the crooked Enron Corporation.

MSEB has been forced to cut production from its own plants in order to fulfill its obligations to

Enron. Hundreds of small businesses have closed because they could not afford Enron’s

expensive power. As writer and activist Arundhati Roy states "Privatization is presented as being

the only alternative to an inefficient, corrupt state. In fact, it’s not a choice at all…..it’s a

mutually profitable business contract between the private company (preferably foreign) and the

ruling elite of the third world."

The main way in which privatizations cut costs is through job losses. In Mexico, for example, the

number of members of the rail workers’ union fell from 90,000 to 36,000 when the railways

were sold off in the 1990s. In Chile, where privatization was pioneered by the Chicago

monetarists after Pinchot’s bloody coup, employment in the public health sector fell from

110,000 to 53,000 between 1973 and 1988.

PFI plans for a new hospital in Edinburgh project 18% fewer clinical staff and in North Durham

14% fewer nursing staff. According to one of the parasitic consultancy companies that now

hovers around the NHS, "each million pounds of incremental PFI capital cost anything from

£100,000 to £179,000 a year, requiring the elimination of four to five jobs to pay for it.

An incremental investment of £200 million requires 1,000 job losses, which might be

significantly greater than 25% of the work force and is probably only achievable by reducing the

number of doctors and nurses, although often these job losses will not be realized within the

hospital undertaking the development, but in the local healthcare market" (New church and

Company, 1998).

154

(2.9.2) Privatizations of vehicle insurance:

How important is privatization in India?

How important is privatisation in India ?The first order issue is that of competition policy. When

the government hinders competition by blocking entry or FDI, this is deeply damaging. Once

competitive conditions are ensured, there are, indeed, benefits from shifting labour and capital to

more efficient hands through privatisation, but this is a second order issue.

The difficulties of governments that run businesses are well-known. PSUs face little "market

discipline". There is neither a fear of bankruptcy, nor are there incentives for efficiency and

growth. The government is unable to obtain efficiency in utilising labour and capital; hence the

GDP of the country is lowered to the extent that PSUs control labour and capital.

When an industry has large PSUs, which are able to sell at low prices because capital is free or

because losses are reimbursed by periodic bailouts, investment in that entire industry is

contaminated. This was the experience of Japan where the "zombie firms" - loss-making firms

that were artificially rescued by the government - contaminated investment in their industries by

charging low prices and forcing down the profit rate of the entire industry.

Further, in many areas, the government faces conflicts of interest between a regulatory function

and an ownership function. As an example, the Ministry of Petroleum crafts policies which cater

for the needs of government as owner, which often diverge from what is best for India.

There is a fundamental loss of credibility when a government regulator faces PSUs in its sector:

there is mistrust in the minds of private investors, who demand very high rates of return on

equity in return for bearing regulatory risk.

These arguments have led many economists to advocate large-scale privatisation, so as to clear

the slate, and get on with the task of building a mature market economy. The role model in this

regard is Germany .After the collapse of communism and the unification of East and West

Germany, an auction was held for selling off all East German PSUs.

155

Negative bids were permitted; i.e. the government was willing to even pay a private manager to

take over a loss-making business if no higher bid was to be found. Through this, Germany was

able to erase the heritage of socialism, and get on with the task of running an efficient market

economy.

While such a game plan is entirely feasible in India, the present Parliament desires no

privatisation. Does this mean that in the immediate future, progress in economic policy on

privatisation must merely wait for the next elections?

When we look at various industries in India, the gains from privatisation are quite heterogeneous.

In some cases, there are hopelessly loss-making PSUs. These operate in industries where private

and foreign firms have been able to come in, and the PSU has been left far behind the standards

of quality and price set by the private sector.

The PSUs should ideally have been sold off long ago, but today, these firms are irrelevant for the

competitive dynamics of the industries that they operate in. The only issue is that of getting the

land, the labour and some machinery out of public hands.

When privatisation is achieved, India will benefit because the private buyer will produce more

GDP using the same resources, and the flow of budgetary support to these firms will cease. The

government should be happy to get these firms out of its hands with negative bids.

The next and most interesting category comprises industries like telecom and airlines. In these

areas, India has witnessed the dramatic benefits that come from the entry of private players.

Telecom and airline services in India are now dramatically improved, if not yet up to world-

class, by changing rules in a way that permitted limited entry to domestic and foreign players.

The privatisation of VSNL was critically important because it was part of the opening up of the

ILD sector to competition: the government would arguably have been more tardy in opening up

if it had a vested interest through ownership of VSNL.

However, the key innovation, which broke with the stasis of socialism was opening up entry

barriers - not privatisation.

In both sectors, the full benefits from permitting foreign competitors, which are only present in

very muted fashion, remain to be harnessed. While Spicejet is a good airline, there are bigger

156

benefits waiting to be obtained by having domestic flights run by Lufthansa and Singapore

Airlines. In both sectors, the defining issue in policy is the removal of entry barriers, not

privatisation.

Looking forward, there is a good chance that in some years, BSNL, MTNL and the merged

airline will end up like one of the many defunct PSUs of today. It makes sense for the

government to sell today - while the going is good. But the privatisation of these three firms is no

longer the most important issue - the further elimination of entry barriers faced by domestic and

foreign firms is.

What does this tell us about banking? The decline in market shares of PSU banks, while helped

along by strikes of PSU bank unions, has proceeded only slowly. This is partly because there is a

fundamentally non-level playing field where private and foreign banks have deposit insurance

for only Rs 100,000 of deposits while PSU banks have unlimited deposit insurance. This gives

one reason in favour of bank privatisation: it is inherently difficult to achieve competitive

conditions without privatisation.

But equally, there is no industry in India where the licence-permit raj hinders entry more than in

the case of banking. At a time when the Indian economy is booming, and every kind of business

is being created, the one industry where we see no new firms starting up is banking. This has

surely got to do with government restrictions on entry.

There is absolutely no industry in India where the opening of branch offices by foreign firms and

private firms requires permission from the government. When Ford operates in India, it has to

obey rules on FDI, but after that, it never has to go back to the government to take permission to

open offices.

What is worse, all foreign banks - put together - are given permission to open 12 branches per

year in the full country. There is no worse instance where contemporary Indian policy-making is

animated by ideas from the 1960s.  

Motor insurance is the only insurance product in India mandated by law. This means that any

one owning a vehicle is bound under the Motor Vehicles Act, 1988 to have a third-party motor

insurance policy.

157

Clearly then, this product is an important contributor to the business of general insurance

companies. As a result of the late privatisation of the insurance sector, there seems to be an

underlying rift between public sector and private sector insurance companies. Public sector

insurers have had ample time to capture the market, while the late entrants are still struggling to

make their mark.

One critical issue in the insurance industry is the much debated third-party motor insurance pool.

The motor pool, operational since April 2007, is a corpus of premiums gathered from all general

insurance companies, and this corpus is managed by the General Insurance Council.

As a rule, every player must mandatorily contribute to this pool depending on their market share,

irrespective of the underwriting done by them.

Although the regulation of tariffs in the general insurance space was withdrawn in 2007, third-

party motor insurance continues to be regulated. Owing to huge losses in the motor insurance

segment, companies have been demanding an increase of around 150 pct in the premiums.

However, in April 2011, the regulator rolled out a hike in the range of 10 to 65 pct in an attempt

to provide some relief to insurance companies.

Even so, private insurers are nearly asphyxiating because of the motor pool. Public insurers like

New India Assurance own a greater market share and are alleging that they are being asked to

contribute disproportionately to this pool and are knocking on the regulator’s door to do away

with the motor pool altogether.

According to the regulator, the ultimate loss ratios for the years 2007-08, 2008-09 and 2009-10

were 172.3 pct, 181.81 pct and 194.15 pct respectively. Against this estimate, the pool had

maintained reserves at 126 pct. Earlier this year, the regulator directed all pool members to make

a tentative provision of 153 pct for each of the 4 years from 2007-08 to 2010-11. This extra

provisioning created a dent in the earnings of general insurance companies. The 10,250 crore

rupee hit that these companies took last year, on account of commercial third-party motor pool

losses, is still reverberating.

According to ASSOCHAM, motor insurance business will continue to remain the largest

category, contributing to over 40 pct of industry premiums. By 2020, India will become the

third-largest car market globally with over 7 million cars sold annually, which will further drive

158

growth in motor insurance segment. Therefore, it is not surprising to see the buzz around this

revenue contributor.

Privatization:StartUpStrategy 

Potential private entrants therefore expect to score in the areas of customer service, speed and

flexibility. They point out that their entry will mean better products and choice for the consumer.

Critics counter that the benefit will be slim, because new players will concentrate on affluent,

urban customers as foreign banks did until recently.

This might seem a logical strategy from the point of view of new players. Start-up costs-such as

those of setting up a conventional distribution network-are large and high-end niches offer better

returns. However, in the long run 'middle-market' offers the greatest potential as in terms of it is

the second largest market in the world. This may still be an urban market but goes beyond the

affluent segment.

Insurance, even more than banking, is a volume game. A very exclusive approach is unlikely to

provide meaningful numbers. Therefore, private insurers would be best served by a middle-

market approach, targeting customer segments that are currently untapped.

RegulatoryIssues

The IRDA Bill lays down that the Indian promoter must dilute the stake in the private insurance

firms from 74 per cent to 26 per cent in ten years. The bill stipulates tough solvency margins --

Rs 500 million for life insurance firms, Rs 500 million or a sum equivalent to 20 per cent of net

premium income for general insurance and Rs 1 billion for reinsurance business.

The insurer has to maintain separate accounts relating to fund of shareholders and policyholders.

The funds of policyholders should be retained within the country but does not cover repatriation

of profits and dividends. Insurance companies under the new regime will have to have exposure

159

to rural and social sectors. Foreign investment in insurance, the bill states, is crucial to financing

infrastructure and better insurance cover.

The key to success in opening up the insurance sector in India is regulation. An example of how

poor regulation can destroy a market is the mutual fund industry. A combination of improper

marketing practice and unfullfilable promises has resulted in a loss of investor faith in that

industry. Incidentally, the insurance industry in India itself has gone through the same phase.

One of the reasons for nationalization of the insurance industry (LIC in 1956 and GIC in 1973)

was the mismanagement and malpractice of erstwhile private players. But if the statements of

IRA officials are anything to go by, the new regulations are expected to be on the right track. N I

Rangachary, chairman, IRA, has already provided the time table for the changes once the Bill is

passed. The IRA has already indicated that it will have tough norms for new participants.

RepositioningbyNationalizedSector  

Floodgates of competition opened up by the privatization of insurance industry did throw a

challenge to the well-protected nationalized sector and it seems they have picked up the gauntlet.

LIC and GIC, both are trying to reposition themselves by having re-engineering done on the

structure and operations of their respective organizations.

Life Insurance Corporation is at present going through presentations from top management

consultants. These consultants have been asked to narrate their experiences in countries where

the insurance sector has been opened up for private competition so that the public sector player

can draw lessons. Based on these, LIC will appoint a consultant which can provide them broad

terms of reference on what changes are required to tackle the impending competition.

GIC has already identified the areas that need to be activated and given a shape through the four

subsidiary companies. Foremost is the area of providing health insurance services. A change in

the GIC Act will enable the corporation to float a joint venture company for health insurance.

Other areas that the GIC is looking at are savings-linked insurance products and use of alternate

160

distribution channels including bancassurance. Also in progress is the co-ordination of all foreign

operations of the group.

Even state-owned entities, SBI and UTI have serious plans for insurance sector as the banks have

unsurpassed advantages over any other player. The intermediaries are also getting more

organized with a little nudging from the IRA. The Reinsurance Consultants Association is

planning to convert itself into the Insurance Brokers Association of India in anticipation of the

laws being amended to allow insurance broking.

CrossBorderExperience

Cross-country experience shows that nowhere in the world has the entry of foreign firms

threatened the position of domestic companies. Whether it is Malaysia, where the insurance

sector has been open for more than 50 years and foreign companies account for about 10 per cent

of market penetration or it is Indonesia, Thailand, China or the Philippines, where the market has

been opened more recently, the total market share of foreign companies is less than 10 per cent

except in Indonesia where it is about 20 per cent. Closer home, we have the experience of the

banking sector where despite the presence of 42 foreign banks, their share in total banking assets

is less than 10 per cent.

Today hardly 20 per cent of the population in India is insured and insurance premium (life as

well as non-life) account for just 2 per cent of GDP as against the G-7 average of 9.2 per cent.

Consequently, the fear that new companies will displace public companies is misplaced. There is

room for more for not only the existing companies but also for any number of competitors.

In China, insurance premium accounted for just over 1 per cent of China's GDP in 1995 but in

the four years since the market has been liberalized (albeit partially), spending on insurance has

grown at a compound annual rate of 33 per cent. It is not just foreign companies alone that have

grown but also the national PICC as well. The story is no different in S Korea. There, the

opening of the sector saw the Big Six domestic players, who initially controlled the entire

market, increase their business from 7 to 37 trillion won by 1997. Meanwhile foreign companies

were not able to capture more than a miniscule 0.7 per cent of the market.

161

Future Possibilities(Next5-10Years)

Job opportunities are likely to increase manifold. The number of people working in the insurance

sector in India is roughly the same as in the UK with a population that is 1/7 India's; the US with

a population 1/4 the size of India has nearly 4 times the number. In the emerging markets, the

picture is no less encouraging. In S Korea, the no of full time employees more than doubled over

a ten year period. Thailand added 50 per cent more jobs in four years.

The liberalization of the insurance sector promises several new jobs opportunities for those

employed in the finance sector who are equipped with degrees in finance. Finance professionals

who had witnessed a slump in the job market would be a much-relieved lot to hear about the

privatization of the insurance sector.

Let us look into the type of jobs that will be created once the private players come on the scene.

Certainly, it won't be far different from the traditional streams in any other industry. There will

be demand for marketing specialists, finance experts, human resource professionals, engineers

from diverse streams like the petrochemical and power sectors, systems professionals,

statisticians and even medical professionals. Apart from this, there will be high demand for

professionals in the streams like Underwriting and claims management and actuarial sciences.

There could be a huge inflow of funds into the country. Given the industry's huge requirement of

start-up capital, the initial years after opening up are bound to see a strong inflow of foreign

capital. Moreover, given that the break-even, typically, comes much later than in the case of

other sectors, odds are that the first remittance of dividend will not happen before a good 10-15

years.

In the areas of reinsurance, huge capacity is likely to be created with players like Swiss Re and

Munich Re keenly observing the unfolding saga of liberalization of insurance industry in India.

Not only the outward reinsurance will reduce, it is bound to attract inward reinsurance from the

neighboring countries and regions. If the regulator is forward looking and legislature is

162

supportive, this trend may well lead to the creation of a Lloyds like market for the direct as well

as reinsurance businesses.

However, increased competition is very likely to result in rate reductions in certain classes of

business, but in those areas that have so far been cross subsidized, an increase in rates may be

possible. Overall, the rate reductions may outweigh the increases, thus bringing down the re-

insurance premium volume available.

Apart from pure re-insurance activities, which is providing insurance protection, a revolution

will come in service related fields like training, seminars, workshops, know-how transfer

regarding risk assessment and rating, risk inspections, risk management and devising new policy

covers, etc. Also, with more players in the market, there will be significant increase in

advertising, brand building, and keen pricing not ridiculous pricing and this will benefit whole

lot of ancillary industries.

Another effect of de-regulation will be that, projects, especially mega-projects where one needs

the capacities of the international re-insurance market, will get exposed to international trends to

an even greater extent than is the case today. This will affect rates too. Areas like the personal

lines segment, where we also expect to see substantial growth as also new types of covers, would

usually not be affected by international trends in the same way as, there is much less need for

global re-insurance support.

Substantial shift in the distribution of insurance in India is likely to take place. Many of these

changes will echo international trends. Worldwide, insurance products move along a continuum

from pure service products to pure commodity products. Initially, insurance is seen as a complex

product with a high advice and service component. Buyers prefer a face-to-face interaction and

place a high premium on brand names and reliability.

As products become simpler and awareness increases, they become off-the-shelf, commodity

products. Sellers move to remote channels such as the telephone or direct mail. Various

intermediaries, not necessarily insurance companies, sell insurance. In the UK for example,

retailer Marks & Spencer now sells insurance products. In some countries like Netherlands and

Japan, insurance is marketed using post office's distribution channels. At this point, buyers look

for low price. Brand loyalty could shift from the insurer to the seller.

163

(2.9.3) Privatization and globalization of theft insurance:

Privatization is a key strategy of the ruling classes, nationally and internationally. A whole raft of

trade agreements has been put in place to facilitate this strategy. The General Agreement on

Trade in Services (GATS) is not designed to improve all our lives but is a set of rules designed to

facilitate the corporate takeover of almost every corner of life, including basic needs such as

water, education, healthcare, and even the genetic codes for life itself.

Sometimes privatization is open, simply involving the selling off of assets to the highest bidder.

Sometimes, especially when sensitive areas such as health and education are involved, it is

covert. The government introduces private money into the public sector and tries to pretend that

this is a good thing, as if the private sector is doing us a favor, rather than chasing a quick profit.

The Private Finance Initiative (PFI) and Public Private Partnerships (PPPs, as used in the London

Underground) are methods of introducing private finance into the public sector and are central to

New Labor’s privatization strategy in Britain and Northern Ireland. Under the PFI hospitals are

built by the private sector and then leased back to the NHS over 20, 25 or 30 years. Paying the

debt is deferred - it is paid from annual income each year. We all know that this is more

expensive in the long run - who buys on credit if they are in a position to buy outright?

Furthermore, PFI schemes always result in fewer beds (in Dudley, England for example, 70

fewer), and in job cuts (1,790 in Dudley, where the staff fought long and hard to resist). The PFI

is very attractive to the private sector with its very high rates of return. Total costs (construction

costs plus financing costs) in a sample of hospitals built under the PFI are 18-60% higher than

construction costs alone. Shareholders in PFI schemes can expect real returns of 15-25% a year.

The consortiums involved in these schemes charge the NHS fees equivalent to 11.2-18.5% of

construction costs. If the Treasury were to finance new hospitals directly out of its own

borrowing, it would pay a real rate of annual interest of 3.0 - 3.5%.

The PFI/PPP approach is being exported. The European Union is at the forefront of these

developments and has declared two key goals: reducing public expenditure and creating fresh

164

"opportunities" for private industry in a recent document ("Making the most of opening of public

procurement", 1997).

The global financial institutions that have become the target of anti-globalisation protesters in

recent years are also busy promoting public - private partnerships across the globe. There are

various types of these partnerships, including what are known as design, build, finance and

operate (DBFO); build, own, operate and transfer (BOOT), and build, operate and transfer

(BOT) schemes.

When the IMF and the World Bank enforce their economic dictates on developing countries,

they insist that all new public infrastructure developments involve PPPs. As a consequence of the

imposition of PPPs, massive cuts take place in the existing public sectors, which means that the

education sector and health services are worse now than they were in the 1960s in many

developing countries.

In 1996 the WTO implemented the "government procurement agreement" which opened up

public contracts to international competition and the WTO, IMF and the World Bank all seek to

promote "markets in infrastructure provision". The European Commission has used grants to

stimulate the development of PPP’s. The PPP market in 1994 was worth €720 billion, or 11.5%

of the gross national product of 15 member states of the European Union, and has grown since.

The European Investment Bank admits that the PPP approach is more expensive than traditional

methods of financing, but justifies its adoption by the claims that the private sector is less "risk

averse" and hence more efficient. The evidence is that the private sector is very averse to risk

indeed. They want to have their cake and eat it. When schemes to provide new computing

systems for the national insurance agency and passport agency went belly-up in Britain, the

government carried the can, refusing to fire the companies involved even though they were

entitled to. The private companies rake in the profit but jump ship when it suits them. The public

don't know everything that goes on as agreements are protected by so-called "commercial

confidentiality".

All governments that accept the restraints of the capitalist system are cutting social spending.

Selling off the assets of the state brings a temporary boost to state finances and PPP’s and the

165

PFI give the appearance of keeping down government borrowing in the short term whilst costing

much, much more in the long term.

In a further twist in the PFI tale, the private sector consortia involved are lining their pockets

even further through "re-financing" deals. Re-financing allows developers to renegotiate the

loans they have taken out to build a hospital at a later date (usually when the project is completed

and supposed "risks" are past - risks are often overstated in any case). Cheaper loans mean higher

returns for shareholders.

Is privatization more efficient?:

We are told that privatization will lead to more efficient industries and public services and will

thus save money. In fact this is seldom the case. The need to generate a profit pushes up costs

and governments can invest more cheaply as they can borrow more cheaply. Of course we are

expected to believe that privatization is good for the economy as a whole, and thus for all of us.

The truth is that it benefits the rich. It is estimated that the private sector in Britain will earn £30

billion a year through the PFI.

There are literally thousands of examples of the inefficiencies and the idiocies of the market. In

the Dominican Republic electricity prices increased by 51% after privatization. Blackouts are

common. The government however is tied into expensive contracts and by 2000 owed the power

companies

The privatization of British Rail has been an unparalleled disaster. The number of train

cancellations trebled between 1996 and 1999. Maintaining the rail system has been contracted

out to more than 20,000 companies. The result: the disaster at Potters Bar. When the

Conservative government in Ontario, Canada, cut the numbers of water-quality inspection staff

and closed government laboratories in favor of private laboratories there was a sharp fall in water

quality. As a consequence in the small town of Walkerton, seven people died as result of water

contamination.

In South Africa 25% of the country’s 44 mill population had their water and electricity

disconnected after privatization. The water service in Lee County, Florida, was returned to public

166

ownership in 2000 after an audit discovered that it was not being maintained adequately by the

private sector. It cost million to rebuild the system.

Power companies are enticed into deals by guarantees that the state will purchase electricity at a

fixed price for up to 30 years. The privatization of electricity has been fiercely resisted in India

where the Maharashtra State Electricity Board (MSEB) has been obliged to hand over hundreds

of millions to the crooked Enron Corporation.

MSEB has been forced to cut production from its own plants in order to fulfill its obligations to

Enron. Hundreds of small businesses have closed because they could not afford Enron’s

expensive power. As writer and activist Arundhati Roy states "Privatization is presented as being

the only alternative to an inefficient, corrupt state. In fact, it’s not a choice at all…..it’s a

mutually profitable business contract between the private company (preferably foreign) and the

ruling elite of the third world."

The main way in which privatizations cut costs is through job losses. In Mexico, for example, the

number of members of the rail workers’ union fell from 90,000 to 36,000 when the railways

were sold off in the 1990s. In Chile, where privatization was pioneered by the Chicago

monetarists after Pinchot’s bloody coup, employment in the public health sector fell from

110,000 to 53,000 between 1973 and 1988.

PFI plans for a new hospital in Edinburgh project 18% fewer clinical staff and in North Durham

14% fewer nursing staff. According to one of the parasitic consultancy companies that now

hovers around the NHS, "each million pounds of incremental PFI capital cost anything from

£100,000 to £179,000 a year, requiring the elimination of four to five jobs to pay for it.

An incremental investment of £200 million requires 1,000 job losses, which might be

significantly greater than 25% of the work force and is probably only achievable by reducing the

number of doctors and nurses, although often these job losses will not be realized within the

hospital undertaking the development, but in the local healthcare market" (New church and

Company, 1998).

167

Privatization is a key strategy of the ruling classes, nationally and internationally. A whole raft of

trade agreements has been put in place to facilitate this strategy. The General Agreement on

Trade in Services (GATS) is not designed to improve all our lives but is a set of rules designed to

facilitate the corporate takeover of almost every corner of life, including basic needs such as

water, education, healthcare, and even the genetic codes for life itself.

Sometimes privatization is open, simply involving the selling off of assets to the highest bidder.

Sometimes, especially when sensitive areas such as health and education are involved, it is

covert. The government introduces private money into the public sector and tries to pretend that

this is a good thing, as if the private sector is doing us a favor, rather than chasing a quick profit.

The Private Finance Initiative (PFI) and Public Private Partnerships (PPPs, as used in the London

Underground) are methods of introducing private finance into the public sector and are central to

New Labor’s privatization strategy in Britain and Northern Ireland. Under the PFI hospitals are

built by the private sector and then leased back to the NHS over 20, 25 or 30 years. Paying the

debt is deferred - it is paid from annual income each year. We all know that this is more

expensive in the long run - who buys on credit if they are in a position to buy outright?

Furthermore, PFI schemes always result in fewer beds (in Dudley, England for example, 70

fewer), and in job cuts (1,790 in Dudley, where the staff fought long and hard to resist). The PFI

is very attractive to the private sector with its very high rates of return. Total costs (construction

costs plus financing costs) in a sample of hospitals built under the PFI are 18-60% higher than

construction costs alone. Shareholders in PFI schemes can expect real returns of 15-25% a year.

The consortiums involved in these schemes charge the NHS fees equivalent to 11.2-18.5% of

construction costs. If the Treasury were to finance new hospitals directly out of its own

borrowing, it would pay a real rate of annual interest of 3.0 - 3.5%.

The PFI/PPP approach is being exported. The European Union is at the forefront of these

developments and has declared two key goals: reducing public expenditure and creating fresh

"opportunities" for private industry in a recent document ("Making the most of opening of public

procurement", 1997).

168

The global financial institutions that have become the target of anti-globalisation protesters in

recent years are also busy promoting public - private partnerships across the globe. There are

various types of these partnerships, including what are known as design, build, finance and

operate (DBFO); build, own, operate and transfer (BOOT), and build, operate and transfer

(BOT) schemes.

When the IMF and the World Bank enforce their economic dictates on developing countries,

they insist that all new public infrastructure developments involve PPPs. As a consequence of the

imposition of PPPs, massive cuts take place in the existing public sectors, which means that the

education sector and health services are worse now than they were in the 1960s in many

developing countries.

In 1996 the WTO implemented the "government procurement agreement" which opened up

public contracts to international competition and the WTO, IMF and the World Bank all seek to

promote "markets in infrastructure provision". The European Commission has used grants to

stimulate the development of PPP’s. The PPP market in 1994 was worth €720 billion, or 11.5%

of the gross national product of 15 member states of the European Union, and has grown since.

The European Investment Bank admits that the PPP approach is more expensive than traditional

methods of financing, but justifies its adoption by the claims that the private sector is less "risk

averse" and hence more efficient. The evidence is that the private sector is very averse to risk

indeed. They want to have their cake and eat it. When schemes to provide new computing

systems for the national insurance agency and passport agency went belly-up in Britain, the

government carried the can, refusing to fire the companies involved even though they were

entitled to. The private companies rake in the profit but jump ship when it suits them. The public

don't know everything that goes on as agreements are protected by so-called "commercial

confidentiality".

All governments that accept the restraints of the capitalist system are cutting social spending.

Selling off the assets of the state brings a temporary boost to state finances and PPP’s and the

PFI give the appearance of keeping down government borrowing in the short term whilst costing

much, much more in the long term.

169

In a further twist in the PFI tale, the private sector consortia involved are lining their pockets

even further through "re-financing" deals. Re-financing allows developers to renegotiate the

loans they have taken out to build a hospital at a later date (usually when the project is completed

and supposed "risks" are past - risks are often overstated in any case). Cheaper loans mean higher

returns for shareholders.

Is privatization more efficient?:

We are told that privatization will lead to more efficient industries and public services and will

thus save money. In fact this is seldom the case. The need to generate a profit pushes up costs

and governments can invest more cheaply as they can borrow more cheaply. Of course we are

expected to believe that privatization is good for the economy as a whole, and thus for all of us.

The truth is that it benefits the rich. It is estimated that the private sector in Britain will earn £30

billion a year through the PFI.

There are literally thousands of examples of the inefficiencies and the idiocies of the market. In

the Dominican Republic electricity prices increased by 51% after privatization. Blackouts are

common. The government however is tied into expensive contracts and by 2000 owed the power

companies

The privatization of British Rail has been an unparalleled disaster. The number of train

cancellations trebled between 1996 and 1999. Maintaining the rail system has been contracted

out to more than 20,000 companies. The result: the disaster at Potters Bar. When the

Conservative government in Ontario, Canada, cut the numbers of water-quality inspection staff

and closed government laboratories in favor of private laboratories there was a sharp fall in water

quality. As a consequence in the small town of Walkerton, seven people died as result of water

contamination.

In South Africa 25% of the country’s 44 mill population had their water and electricity

disconnected after privatization. The water service in Lee County, Florida, was returned to public

ownership in 2000 after an audit discovered that it was not being maintained adequately by the

private sector. It cost million to rebuild the system.

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Power companies are enticed into deals by guarantees that the state will purchase electricity at a

fixed price for up to 30 years. The privatization of electricity has been fiercely resisted in India

where the Maharashtra State Electricity Board (MSEB) has been obliged to hand over hundreds

of millions to the crooked Enron Corporation.

MSEB has been forced to cut production from its own plants in order to fulfill its obligations to

Enron. Hundreds of small businesses have closed because they could not afford Enron’s

expensive power. As writer and activist Arundhati Roy states "Privatization is presented as being

the only alternative to an inefficient, corrupt state. In fact, it’s not a choice at all…..it’s a

mutually profitable business contract between the private company (preferably foreign) and the

ruling elite of the third world."

The main way in which privatizations cut costs is through job losses. In Mexico, for example, the

number of members of the rail workers’ union fell from 90,000 to 36,000 when the railways

were sold off in the 1990s. In Chile, where privatization was pioneered by the Chicago

monetarists after Pinchot’s bloody coup, employment in the public health sector fell from

110,000 to 53,000 between 1973 and 1988.

PFI plans for a new hospital in Edinburgh project 18% fewer clinical staff and in North Durham

14% fewer nursing staff. According to one of the parasitic consultancy companies that now

hovers around the NHS, "each million pounds of incremental PFI capital cost anything from

£100,000 to £179,000 a year, requiring the elimination of four to five jobs to pay for it.

An incremental investment of £200 million requires 1,000 job losses, which might be

significantly greater than 25% of the work force and is probably only achievable by reducing the

number of doctors and nurses, although often these job losses will not be realized within the

hospital undertaking the development, but in the local healthcare market" (New church and

Company, 1998).

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(2.9.4) Privatization and globalization of accident insurance:

• Privatization through sale of state property or transfer of ownership, which is the most

prevalent and simplest method of privatization meaning transfer of government properties to

private sector.

• Privatization from below (releasing and deregulation), which provides the possibility of private

sector cooperation in those activities which were previously public. This leads to competition

between actors of private and public sectors and thereby it can be prior to privatization. So, the

public sector is urged to gain a favourable level of efficiency to survive in the market. Releasing

can be a good alternative for privatization, such as sale of state properties, since it can lead to

competition with lower costs. It can also be done in cases such as entering to market and

establishing new firm in the industry, transacting in the market, exporting an importing products,

deregulating in firms’ establishment and their activities, and release of financial and employment

system and other relevant markets.

Havrylyshyn and McGettigan (2000) stress the importance of this type of privatization in the

transition economies.

Privatization plan in Iran, initiated from 2000, can be considered as privatization from below

which is known as release of insurance industry. This method is usually applied in industries

which are completely in hands of government and permits private sector to enter the industry

leading to competition in market. This method, at first, creates quantitative competition in the

market and then extends increasingly the price competition in markets related to insurance

companies such as labour, finance and properties. Consequently, it influences the private and

even public insurance companies’ performance and total insurance market. The privatization

through sale of public insurance companies has also initiated from 2009 and continues till now.

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2. PRIVATRIZATION ROLE IN IRAN INSURANCE INDUSTRY PERFORMANCE

 The privatization method in Iran, started since 2000, was privatization from below but

privatization through sale of state property or ownership transfer has initiated from 2009. Now, it

is possible to study the effects of these two methods of privatization on the industry performance.

A good measure to show privatization from below degree in insurance industry is the private

insurance companies’ share out of total insurance premiums in the insurance market. The private

insurance companies launch their businesses after the enactment of private insurance companies

Rule in 2002. At the first year, these companies gained 99 billion Rials premiums consisting 1

percent of total market premiums. But this share increased in next years and reached up to 22

percent of insurance market share in 2007 (Table 1).

3. PRIVATIZATION EFFECT ON INSURANCE ACTIVITIES VOLUME

Insurance activities volume can be showed by various indicators. All indicators show a

remarkable growth in insurance activities volume since privatization enactment in 2000.

Insurance activities share in Gross Domestic Product reached to 0.46 in 2007 while it was only

0.25 in 2002. The produced premium share to Nominal Gross Domestic Product was 1 percent in

2002 and reached to 1.17 in 2007. Iran insurance premium per capita was only 17.3 in 2002 and

increased up

4. PRIVATIZATION EFFECT ON DIVERSITY OF PRODUCTS IN INSURANCE

INDUSTRY

Another effect of privatization is offering new products into insurance market which determines

diversification in insurance industry. In the past years, Iran public insurance companies were

operating in traditional and concentrated form of business by offering products like fire, car and

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third party insurance covers. While, recently, covers such as credit, oil and energy insurances

received more importance than before 2001. Additionally, 17 new liability, 4 new life, 6 new

health plus rent and train insurances and many other ones have also added to previous insurance

covers (Iran Central Insurance, 2009: 87).

The diversity of insurance activities can be analyzed by insurance activities concentration index.

5. PRIVATIZATION FROM BELOW EFFECT ON PUBLIC INSURANCE

COMPANIES

Privatization from below not only influences total amount of insurance market but also it impacts

public insurance companies’ performance through increase in competition. In this section we

evaluate the privatization from below effect on insurance companies’ performance, started at

2000, by applying some performance evaluation measures and available statistics (Table 5).

The coverage ratio of public insurance companies is calculated based on current assets and

investment. Comparing to 2001, this measure increased in 2007 for Iran and Dana Insurance

Companies and decreased for Asia and Alborz Companies. The coverage ratio in all public

insurance companies has increased from 85% to 99% during the period studied. It indicates that

the index trend is along with insurance industry privatization.

“Total income to total cost ratio” of public insurance companies shows the income these

companies receive against their costs which can be assumed as insurance companies’

profitability.

The computations indicate that this ratio has decreased in all companies except Iran Insurance

Company in 2007, comparing to 2001. Therefore, it demonstrates that with the presence of

private insurance companies in the market, public insurance companies’ profitability decreased.

“Total profit to total income” ratio involves profitability of all insurance activities and

determines the company’s turnover

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CH:3 Introduction Of Industrial Over view Insurance

3.1 INDUSRTY PROFILE

Job growth in this large industry will be limited by corporate downsizing, new technology, and increasing direct mail, telephone, and Internet sales, but numerous job openings will arise from the need to replace workers who leave or retire. Growing areas of the insurance industry are medical services and health insurance, and its expansion into other financial services, such as securities and mutual funds. Jobs in office and administrative occupations usually may be entered with a high school diploma, but employers prefer college graduates for sales, managerial, and professional jobs.

The insurance industry consists mainly of insurance carriers (or insurers) and insurance agencies and brokerages. In general, insurance carriers are large companies that provide insurance and assume the risks covered by the policy. Insurance agencies and brokerages sell insurance policies for the carriers. While some of these establishments are directly affiliated with a particular insurer and sell only that carrier’s policies, many are independent and are thus free to market the policies of a variety of insurance carriers. In addition to supporting these two primary

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components, the insurance industry includes establishments that provide other insurance-related services, such as claims adjustment or third-party administration of insurance and pension funds.

These other insurance industry establishments also include a number of independent organizations that provide a wide array of insurance-related services to carriers and their clients. One such service is the processing of claims forms for medical practitioners. Other services include loss prevention and risk management. Also, insurance companies sometimes hire independent claims adjusters to investigate accidents and claims for property damage and to assign a dollar estimate to the claim.

Insurance carriers assume the risk associated with annuities and insurance policies and assign premiums to be paid for the policies. In the policy, the carrier states the length and conditions of the agreement, exactly which losses it will provide compensation for, and how much will be awarded. The premium charged for the policy is based primarily on the amount to be awarded in case of loss, as well as the likelihood that the insurance carrier will actually have to pay. In order to be able to compensate policyholders for their losses, insurance companies invest the money they receive in premiums, building up a portfolio of financial assets and income-producing real estate which can then be used to pay off any future claims that may be brought. There are two basic types of insurance carriers: primary and reinsurance. Primary carriers are responsible for the initial underwriting of insurance policies and annuities, while reinsurance carriers assume all or part of the risk associated with the existing insurance policies originally underwritten by other insurance carriers.

Primary insurance carriers offer a variety of insurance policies. Life insurance provides financial protection to beneficiaries—usually spouses and dependent children—upon the death of the insured. Disability insurance supplies a preset income to an insured person who is unable to work due to injury or illness, and health insurance pays the expenses resulting from accidents and illness. An annuity (a contract or a group of contracts that furnishes a periodic income at regular intervals for a specified period) provides a steady income during retirement for the remainder of one’s life. Property-casualty insurance protects against loss or damage to property resulting from hazards such as fire, theft, and natural disasters. Liability insurance shields policyholders from financial responsibility for injuries to others or for damage to other people’s property. Most policies, such as automobile and homeowner’s insurance, combine both property-casualty and liability coverage. Companies that underwrite this kind of insurance are called property-casualty carriers.

Some insurance policies cover groups of people, ranging from a few to thousands of individuals. These policies usually are issued to employers for the benefit of their employees or to unions, professional associations, or other membership organizations for the benefit of their members. Among the most common policies of this nature are group life and health plans. Insurance carriers also underwrite a variety of specialized types of insurance, such as real-estate title insurance, employee surety and fidelity bonding, and medical malpractice insurance.

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General insurance industry records 24.1% growth

The general insurance industry has recorded a 24.1% increase in premium collection at Rs 16,577.7 crore in the first eight months of the fiscal against Rs 13,350.1 crore during same period previous year, according to data compiled by Insurance Regulatory and Development Authority (IRDA).

The market share of new players continued to stay at 35% in the current fiscal, up from 26% last year. While 35% was contributed by the eight private players and remaining 65% came from the four public sector players — New India, Oriental Insurance, National Insurance and United India.

ICICI Lombard grew premium collection by over 90% to Rs 2,078.6 crore in the April-November period followed by Bajaj Allianz General Insurance, which saw 35.3% increase in premium income at Rs 1,158.8 crore.

Market leader New India grew business by 10% to Rs 3,337.1 crore in April-November, the highest premium collection by any company during the period. Clocking 13.6% growth, Oriental Insurance collected Rs 2,647.8 crore in premium, while National Insurance witnessed a mere 5.06% growth in business at Rs 2,311.6 crore during the period. United India increased premium collection by 12.3% to Rs 2,093 crore. Among the private players, Reliance General posted a record growth in premium of 419.53% at Rs 100.25 crore during the period under review.

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3.1.1. MAJOR PLAYERS OF GENERAL INSURANCE INDUSTRY:

ICICI Lombard General Insurance Company Limited

A joint venture between the second largest bank in India ICICI Bank Ltd and Canada based Fairfax Financial Holdings Limited, ICICI Lombard is the number one private insurance company in India. It started general insurance operations in August 2001 and was the first general insurance company to be awarded ISO 9001:2000. The company has earned quite a few awards for its services and customer relationship. It is also one of the top three companies to have received the “General Insurance Company of the Year” at the 10th Asia Insurance Industry Awards.

The different plans they offer are in:

Auto Insurance Travel Insurance Health Insurance Personal Accident Insurance Householder Insurance

Tata AIG General Insurance Company Limited

This is joint venture between two power house- Tata Sons and American International Group Inc. (AIG). Founded on Jan 22 in the year 2001, 74 per cent stake belongs to the Tata Group and AIG hold 26 percent of the company stakes. Having got the strength from both the organisations, Tata AIG caters to a range of categories including travel, energy, marine, property, automobile, home, personal accident etc for individuals, small businesses and big corporate houses.

They offer plans in:

Maharaksha Critical Illnes Insurance Personal Accident Insurance Mediclaim Insurance Shopkeepers Insurance Healthcare Auto Insurance Hospital Cash Insurance Secured Future Plan

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Travel Insurance Householder Insurance Hospital Care

Bajaj Allianz General Insurance Company LimitedBajaj Auto Limited and Allianz AG of Germany came together on 2nd May 2001 to form this general insurance company in India. 74% of the joint venture is owned by Bajaj Auto while the rest of the shares lie with Allianz. The company is one of the leading private insurer in the country and offers services in General Insurance, Health Insurance and Risk Management. With a capital base of Rs. 147 crores, the company has marked a niche for itself.

They offer plans in:

Householder Insurance Personal Accident Insurance Travel Insurance Health Insurance Auto Insurance

IFFCO Tokio General Insurance

Known for delivering creative solutions to its customers, IFFCO Tokio General Insurance is reckoned as a one of the best general insurance company in the country. It is known for providing quality service at affordable rates. The company has a deep knowledge of IFFCO and is the first company to underwrite mega policies for a fertilizer and automobile clients. The company has been regarded as a customer- centric and people friendly organisation.

They offer plans in:

Health Insurance Householder Insurance Travel Insurance Personal Accident Insurance

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The Oriental Insurance Company Limited

Supported by General Insurance Corporation (GIC) of India, Oriental Insurance Company started is one of the oldest companies in India. It started out in 1947 and has been catering to all sectors of society. The company believes in providing insurance to the community at a reasonable cost. Special covers are provided for large projects such as power plants, steel plants and chemical plants.

The plan offered are provided in:

Shopkeepers Insurance Health Insurance Auto Insurance Travel Insurance Householder Insurance Personal Accident Insurance

3.1.2 TURNOVER OF INDUSTRY:

General insurance turnover crosses RS. 7 billion

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List of top 10 non life insurance company

Name Collection of premiumEverest insurance RS. 738.57 mNLG insurance RS. 700.46 mShikhar insurance RS. 625.77 meverest insurance RS. 579.96 mHimalayan general insurance RS. 548.99 mRastriya bema sansthan RS. 548.69 mAlliance insurance RS. 440.31 mNational insurance RS. 401.87 mNepal insurance RS. 397.11 mThe oriental insurance RS. 361.37 m

Even though insurance industry continue to suffer from low awareness of general public and apathy of even the informed mass to safeguard their hard earned property , country ‘s non life insurance industry recorded a growth of 8.4 percent in 2010/11 , shows the latest insurance board (IB) , the insurance sector regulator. The entire non life insurance industry comprising of a total of 17 general insurance companies collected premium worth RS.7.17 billion during the period.

Everest insurance has clinched the title of the largest non life insurance company in the country in terms of premium collection, shows the IB report. The company collected premium worth RS. 738.57 million During the year, the revenue collection had gone up largely because of the contribution made by engineering portfolio, sudimana upadhyaya , assistant general manager of everest insurance , told republica referring to the new client, melamachi water supply project. He, however, is not expecting similar growth of 8.4 %. Because of this mismatch, we can’t expect much growth, as everyone is trying to grape a piece from the same pie which has not growth significantly. he said. Besides, we are not planning to introduce any unique product this year, which could have widened our clientele base.

Second in the list of non life insurance companies is NLG insurance company. It collected premium worth RS. 700.4 million last fiscal year a rise of 25% sunil ballav pant , marketing head of NLG insurance, told , republica that government decision to make third party insurance mandatory played a vital role in giving a boost to the companies revenue. Under the third party insurance policy, which came into effect in September 2009, insurance company collect a premium of as little as RS.1000 from vehicle owners and provide coverage of up to RS. 16 million. The amount is paid in case motorist damage property , or injure or kill people other than those on or inside the vehicle during road mishaps. This policy helped raise NLG insurance ‘s vehicle insurance premium collection to RS.537.42 million in the last fiscal year, making it the top vehicle insurer in the country.

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Third in the list of top non life insurance companies is shikhar insurance company. The company collected a premium of RS. 625.77 million last fiscal year an increment of 4% . like, NLG , shikhars revenue also went up due to contribution made by vehicle portfolio . the company sold vehicle insurance premium worth RS. 225.57 million during the period.

Among others, sagarmatha insurance company generated revenue of RS. 579.96 million becoming fourth largest non life insurance company in term of premium collection. Himalayan general insurance company with revenue of RS.548.99 million stood in the fifth pension , followed by state owned rastriya beema sansthan , which collected premium worth RS. 548.69 million.

3.1.3. Market share

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India insurance industry - market share of leading companies

The following table shows the market share of top insurers in India in the period till April 2011:

Company Approximate market share

LIC 50%

ICICI 10%

SBI 5%

Bajaj 4%

Reliance 5%

HDFC 6%

Birla 4%

Max New York 3%

Tata 2%

Kotak 2%

Others 8%

PSU's still retain 59% market share of Indian health insurance market (2010-11) of Rs.11145 croressThe health insurance figures for the year 2010-11 are available and PSU's have achieved premium figure of Rs.6578.64 crores vs Rs.4949.67 crores(2009-10). This is 59.02% market share vs 59.09% market share which was achieved during last year. 

Health Insurance Premium of Indian Insurance Companies 2010-11 vs 2009-2010

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You will notice that every company has shown growth in business with exception of Chola.Growth during the year of this portfolio is 33.05% and 5 top insurance companies and their market share are:

ICICI Lombard deserves appreciation for taking up 4th position as a result Oriental is now at 5th position in the list. Star Health has crossed figure of Rs.1000 crores by touching figure of Rs.1232.44 crores.

Our comment is- health insurance is the fastest growing segment but even then a lot is to be achieved as we have large population and it needs to be covered

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Accident and health insurance

The Indian accident and health insurance market is forecast to grow at an annual rate of 22% over the next five years, aided by increasing healthcare expenditure, economic growth, and changing demographics. At the same time, a decrease in capital requirements will create an attractive market for new entrants into the sector, according to a report by BRICdata which provides emerging market intelligence.

The introduction of new distribution channels is another key factor in the growth in the overall volume of new policies. The increasing penetration of major insurance companies and banks selling insurance policies to second- and third-tier cities in India will lead too to an increase in accident and health insurance policy volumes in the country over the next five years.

However, big challenges confront insurers. The key entry barrier into the market is brand recognition. Insurers are thus expected to work towards aligning with stronger brands, both domestic and foreign, to create opportunities for collaborations or joint ventures. Other major challenges include low awareness of personal accident and health insurance, low penetration in rural areas, a lack of coverage for many existing diseases, and the ineffective distribution model in the country.

While public-sector insurance providers currently constitute the majority of the market, private participants will continue to increase their market share over the next five years. At present, four public companies hold more than 50% of the market share in the personal accident and health insurance market in terms of premiums.

The Indian accident and health insurance market recorded steady growth over the report’s review period, withstanding the ill effects of global economic slowdown. Growth is expected to continue, with a forecast 22% annual growth over the next five years, and a decrease in capital requirements will create an attractive market for new entrants into the market.While public-sector insurance providers constitute the majority of the market, private participants will continue to increase their market share in the forecast period. The introduction of new distribution channels is another key factor in the growth in the overall volume of new policies.

Four public companies hold more than 50% of the market share in the personal accident and health insurance market, although this dominance will be severely challenged by private companies in the forecast period. The key entry barrier into the market is brand recognition, and

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companies are expected to work towards aligning with stronger brands, both domestic and foreign, to create opportunities for collaborations or joint ventures.

The report provides top-level market analysis, information and insights of the Indian personal accident and health insurance industry, including:

The Indian personal accident and health insurance industry’s growth prospects by product category and customer segmentThe various distribution channels in the Indian personal accident and health insurance industry The competitive landscape in the personal accident and health insurance industry A description of the personal accident and health reinsurance market in India

This report provides a comprehensive analysis of the personal accident and health insurance market in India:

- It provides historical values for India’s personal accident and health insurance industry for the report’s 2006–2010 review period and forecast figures for the 2011–2015 forecast period- It offers a detailed analysis of the key sub-segments in India’s personal accident and health insurance industry, along with market forecasts until 2015- It covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, frauds and crimes, total assets, total investment income and retentions

It analyses the various distribution channels for personal accident and health insurance products in India Using Porter’s industry-standard “Five Forces” analysis, it details the competitive landscape in India for the personal accident and health insurance business It provides a detailed analysis of the reinsurance market in India and its growth prospects It profiles the top personal accident and health insurance companies in India, and outlines the key regulations affecting them

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Reasons To Buy

Make strategic business decisions using top-level historic and forecast market data related to the Indian personal accident and health insurance industry and each sector within itUnderstand the demand-side dynamics, key market trends and growth opportunities within the Indian personal accident and health insurance industry

Assess the competitive dynamics in the personal accident and health insurance industry, along with the reinsurance segment Identify the growth opportunities and industry dynamics within key product categories Gain insights into key regulations governing the Indian insurance industry and its impact on companies and the industry's future

Key Highlights

- The growth in the Indian personal accident and health insurance market can be attributed to increasing healthcare expenditure, economic growth, and changing demographics- The Indian personal accident and health insurance market has a significant number of public-sector insurers. Private accident and health insurers account for less than 50% of the total accident and health insurance written premium- During the forecast period, public-sector insurers are expected to retain a major share of the market, while the private accident and health insurers are expected to increase their market share gradually in India- The increasing penetration of major insurance companies and banks selling insurance policies to second- and third-tier cities in India will lead to an increase in accident and health insurance policy volumes in India during the forecast period- Key challenges include low awareness of personal accident and health insurance, low penetration in rural areas, a lack of coverage for many existing diseases, and the ineffective distribution model in the country

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3.2 PEST ANALYSIS:

A PEST is an analysis of external macro environment that effects all firm. PEST is acronym of Political, Economical, Social and Technological factor of external macro environment.

POLITICAL FACTOR:

The political environment includes such as the characteristics and policies of the political parties, the nature of constitution and government system and the government environment encompassing the economic and business policies and regulations. These factor may vary very considerably between different nations, between different provinces of same nations and also over time.

In our research, in insurance sector government policy is stable so it is a favorable for insurance sector. During our research there is no any change in government so it is not affect to insurance sector.

Economic factor:

Business fortunes and strategies are influenced by the economic characteristics and economic policy dimensions. The economic environment includes the structure and nature of economy,the stage of development of the economy, economic resources, the level of income, the distribution of income and assets, global economic linkages, economic policies etc.

In our research, insurance an other service sector are fastest growing sector. The service sector now contribute nearly 70% of the world GDP. Now a days public expenditure towards insurance so insurance sector is develop. Recently bank rate reduced by 0.25% so get loan from bank become reasonable it is a benefit to insurance sector to get loan from bank & also in investment. In india income level of people is increase so people invest money in insurance.

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SOCIAL FACTORS:

According to the modern view of business, its activities and attitudes are subject to socital judgments , which may have far reaching implications. A business enterprise shall make profit only by accomplishing the socially accepted goals and by satisfying society. Business is an integral part of the social system and it is influenced by other element of society which in turn is affected by the business. The social environment of business is ,often, very complex and intricate.

In our research demographic factor also affect to the insurance factor like, income, population etc. In India population is more so most of the people take various types of insurance like vehicle, fire, theft, health, and accident etc. so in India development of insurance is being very fast now a day’s people are more educated and they are aware about insurance and benefits of insurance so people take insurance for safety. People purchase insurance according to income level and benefit of insurance so in india purchasing habit of insurance depends on income level.

TECHNOLOGICAL FACTORS:

Technology is one of the most important determinants of success of a firm as well as the economic and social development of nation. Technology includes the tools both machines (Hard technology) and ways of thinking (Soft technology) available to solve problems and promote progress between, among and between societies.

Insurance sector adopt new technology like Online registration of insurance, Online payment of premium.

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3.3 SWOT ANALYSIS

3.3.1 SWOT ANALYSIS OF HEALTH INSURANCE:

Strengths - Strengths are the qualities that enable us to accomplish the organization’s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty.

Following are the strength of health insurance in our research:

Cost advantage Asset leverage Effective communication Innovation Loyal customer Market share leadership Strong management team Strong financial position

 Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet.

Following are the weakness of health insurance in our research:

Bad communication Diseconomies of scale Over leverage financial position No online presence Not diversified Poor supply claim

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Opportunities - Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable Organizations can gain competitive advantage by making use of opportunities. Opportunities may arise from market, competition, industry/government and technology.

Following are the opportunities of health insurance in our research:

Acquisition Asset leverage Financial market Emerging market & expansion abroad Innovation Product and service expansion Takeovers

Threats - Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable.

Following are the threats of health insurance in our research:

Competition Economic slowdown External changes (Government, politics, taxes etc.) Maturing categories Lower cost competitors

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3.3.2 SWOT ANALYSIS OF FIRE INSURANCE:

Strengths - Strengths are the qualities that enable us to accomplish the organization’s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty.

Following are the strength of fire insurance in our research:

Huge pool of skilled professional Having a good research and development effort Discounting to the population below poverty line so having large set of customer Worldwide insurance companies

Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet.

Following are the weakness of fire insurance in our research:

Due to inflationary pressure people not buy insurance Inflexibility of product No online presence

Opportunities - Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable Organizations can gain competitive advantage by making use of opportunities. Opportunities may arise from market, competition, industry/government and technology

Following are the opportunities of fire insurance in our research:

Various homogeneous group churned out in order to position the bancassurance with good IT infrastructure

Acquisition

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Threats - Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable.

Following are the threats of fire insurance in our research:

Non response from target customer Threats of resistance to change workforce

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3.3.3 SWOT ANALYSIS OF THEFT INSURANCE:

Strengths - Strengths are the qualities that enable us to accomplish the organization’s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty.

Following are the strength of theft insurance in our research:

Companies core competencies Good market position Patents Excellent financial strengths

Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet.

Following are the weakness of theft insurance in our research:

Poor performance Weak management

Opportunities - Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable Organizations can gain competitive advantage by making use of opportunities. Opportunities may arise from market, competition, industry/government and technology

Following are the opportunities of theft insurance in our research:

Use of new technology Growth in abroad market

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Threats - Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable.

Following are the threats of theft insurance in our research:

Increase in competition Population shift Governmental or environmental regulation

.

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3.3.4 SWOT ANALYSIS OF ACCIDENT INSURANCE:

Strengths - Strengths are the qualities that enable us to accomplish the organization’s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty.

Following are the strength of accident insurance in our research:

Insurance having a currently good market Premium rates are increasing and so are commission The variety of product increasing patents

Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet.

Following are the weakness of accident insurance in our research:

insurance companies often slow to respond to changing needs Buying insurance policy is cumbersome process Services similar to competitors

Opportunities - Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable Organizations can gain competitive advantage by making use of opportunities. Opportunities may arise from market, competition, industry/government and technology

Following are the opportunities of accident insurance in our research:

Technology is improving paperless transactions are available Busy life , customer need flexible , customizable policies Like mobile banking mobile insurance could be hit New innovation in technology- measuring weather variable

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Threats - Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable.

Following are the threats of accident insurance in our research:

Whether cycle New substitute product emerging Increasing expenses & lower profit margin hit hard on the smaller agencies & insurance

companies Government regulation on issues like health care & terrorism can quickly change the

direction of insurance

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3.3.5 SWOT ANALYSIS OF VEHICLE INSURANCE:

Strengths - Strengths are the qualities that enable us to accomplish the organization’s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty.

Following are the strength of vehicle insurance in our research:

Very powerful brand and influential overseas Brand has a balance value equation Ubiquitous brand Takeovers

Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet.

Following are the weakness of vehicle insurance in our research:

Appears to have lost touch with core consumer Untargeted marketing Weak performance of gap brand Declining cash flow

Opportunities - Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable Organizations can gain competitive advantage by making use of opportunities. Opportunities may arise from market, competition, industry/government and technology

Following are the opportunity of vehicle insurance in our research:

Service expansion Grow into new market Emerging market expansion

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Threats - Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable.

Following are the threats of vehicle insurance in our research:

Increase numbers of competitors Economic crisis

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3.4 INDUSTRY COMPETITIVE STRUCTURE:

PORTER’S FIVE FORCES ANALYSISPorter’s five forces model is specially used in industry analysis. This will helps an organization to make a strategy. The bottled packaged water industry is a part of beverage industry which again comes under fast moving consumer goods. According to American agency the world’s bottled packed water is expected to reach $65.9bn by 2012. The cause behind this is population rising, consumer buying pattern, life style trends and growing level of health consciousness.

Threat of entry:As the number of general insurance consumption is increasing in India, the opportunity for other players in increasing rapidly. In the General insurance industry the entry barrier is low. The entry barrier is low due to high competition, amount of capital more, easy to access government and legal law, less legal and government barrier and low switching cost. The existing insurance industry is paying attention and moving into general insurance, as they have good opportunity is very huge in this industry.

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Rivalry among existing competitors:

Rivalry among existing competitors is often the most conspicuous of the competition. Firms in an industry are “mutually dependent ” – competitive moves of a firm usually affects others and may be retaliated.

1. Number of Firms, size and quality:-Number of firm in the same industry shows the level of competition, if there is large number of firm in the industry, then the competition is high. In the context of general insurance industry, there are so many firms existing in the industry so there for competition is high in general insurance industry.

2. State of growth of industry:-Faster the speed of growth makes the firm stronger then its competitior. There is continues growth of general insurance industry in india. Which make the level of competition very tuff in general insurance industry.

3. Exits barrier:-

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It explain in industry easily exit or not from the market. If industry had done high investment then industry can not leave the market easily. In context of general insurance industry, it require high investment due to which to leave the market is not easy for the firm.

4. Cost structure:-Higher the fixed cost, higher the level of competition. Fixed cost are those expencise which industry must require spending so it will increase competition for spending high. In the context of general insurance industry firm has to keep fixed cost high so therefore level of competition is high in general insurance industry.

Threat of substituteAn important force of competition is the power of substitutes. “Substitutes limit the potential returns in an industry by placing a ceiling on the price firms in the industry can profitability charge. The more attractive the price performance alternative offered by substitute, the firmer the lid on industry profit.”

Non-Life Insurance Market

In December 2000, the GIC subsidiaries were restructured as independent insurance companies. At the same time, GIC was converted into a national re-insurer. In July 2002, Parliamant passed a bill, delinking the four subsidiaries from GIC.

Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers. Although the public sector companies still dominate the general insurance business, the private players are slowly gaining a foothold. According to estimates, private insurance companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half of 2002, the private companies booked premiums worth Rs 6.34 billion. Most of the new entrants reported losses in the first year of their operation in 2001.

With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project implementaion, including geological risks, maintenance, commercial and political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non- recourse basis.

Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long term debt and equity for infrastructure projects. With long term liability, they get a good asset- liability match by investing their funds in such projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International Insurance companies also invest their funds in such projects.

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Insurance costs constitute roughly around 1.2- 2 percent of the total project costs. Under the existing norms, insurance premium payments are treated as part of the fixed costs. Consequently they are treated as pass-through costs for tariff calculations.

Premium rates of most general insurance policies come under the purview of the government appointed Tariff Advisory Commitee. For Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets the premium rates, for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the committee's guidelines; and projects above Rs 15 billion are subjected to re-insurance pricing. It is the last segment that has a number of additional products and competitive pricing.

Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the premium. The other companies share the remaining risk and premium. The policies are renewed usually on an annual basis through the invitation of bids.

Of late, with IPP projects fizzling out, the insurance companies are turning once again to old hands such as NTPC, NHPC and BSES for business.

Re-insurance business

Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which can be safely borne from their own funds. The balance risk is re-insured with other insurers. In effect, therefore, re-insurance is insurer's insurance. It forms the backbone of the insurance business. It helps to provide a better spread of risk in the international market, allows primary insurers to accept risks beyond their capacity, settle accumulated losses arising from catastrophic events and still maintain their financial stability.

While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer. Currently, all insurance companies have to give 20 per cent of their reinsurance business to GIC. The aim is to ensure that GIC's role as the national reinsurer remains unhindered. However, GIC reinsures the amount further with international companies such as Swissre (Switzerland), Munichre (Germany), and Royale (UK). Reinsurance premiums have seen an exorbitant increase in recent years, following the rise in threat perceptions globally.

 

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Sector reforms:

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…"

In 1994, the committee submitted the report and some of the key recommendations included:

1) Structure

Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these

subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate.

2) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry.

No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the

domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only One State Level Life Insurance Company should be allowed to operate in each

state.

3) Regulatory Body

The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made

independent.

4) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%.

GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time).

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5) Customer Service

LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerisation of operations and updating of technology to be carried out in the

insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition.

But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

MAJOR POLICY CHANGES

Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions:

Company is formed and registered under the Companies Act, 1956; The aggregate holdings of equity shares by a foreign company, either by itself or through

its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company;

The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business.

The minimum paid up equity capital for life or general insurance business is Rs.100 crores.

The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores.

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The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad.

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Ch: - 4 Segmentation, Targeting, & Positioning

4.1 Segmentation

Defination:- “Segmentation can be known as classification & division of customers on the basis of various perameters like geographic, demographic, behavioral, & psychographic.”

4.1.1 Geographic Segmentation

Geographic segmentation calls for dividing the market into different geographical units such as nation, state, region, countries, cities etc.

RURAL INSURANCE SCHEMESCATTLE INSURANCECattle Insurance was governed under Market Agreement asdevised by GIC and the rates, terms, conditions etc. all wereapplicable to all the four Insurance Companies. However,w.e.f May 2003, it is no longer under Market Agreement.This policy covers indigenous cross bred and exotic cattleowned by private owners, various financial institutions, dairyfarms, cooperatives, corporate dairies etc. The word cattleincludes Milch, Cows and Buffaloes calves and heifers, studbulls, bullocks and he-buffaloes and mithuns. Age group isspecified for all the animals. The evaluation of the animal isdone by a veterinary surgeon.SCOPE OF COVER/INSURANCE COVERAGEThe policy shall give indemnity only for death of cattle dueto:i. Accident (Inclusive of flood, cyclone, famine) or anyother fortuitous circumstances (fortuitous meansaccidental in origin)ii. Diseases (Inclusive of Rinder-pest, Block Quarter,Hemorrhagic Septicemia, Foot and Mouth diseasesubject to vaccination against this disease).iii. Surgical operationsiv. Strike riot and civil commotion and terrorism.v. Earthquake.Policy is subject to certain standard and general exclusions.Animals are identified by way of ear tagging.The policy covers both scheme and non-scheme animals.Scheme animals are those animals, which are sponsored bythe Government agencies and are financed by somefinancial institutions, which may or may not involve anysubsidy. Master Policy arrangements are usually done withDRDA, Bank, Cooperative Societies etc. There is aprovision of Long Term Policies also.

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Note: All Cattle of individual Insured or Dairy Farm should beinsured. No selection is allowed.FOETUS (UNBORN CALF) INSURANCESCHEMEThis scheme covers the risk of death of embryo/foetus dueto:a. Accident (Inclusive of flood, cyclone, famine) or anyother fortuitous circumstances (fortuitous meansaccidental in origin)b. Diseases (Inclusive of Rinder Pest, Block Quarter,Hemorrhagic Septicemia, Foot and Mouth diseasesubject to vaccination against this disease).c. Surgical operationsd. Strike riot and civil commotion and terrorism.e. Earthquake.The scheme is applicable to both the embryo transferredfrom a selected donor to the synchronized recipient or frozenembryo transferred to the recipient and also theembryo/fetus developed by artificial insemination technique.This can be covered as a separate policy in addition toCattle Insurance Policy covering the recipient mothercow/buffalo.

4.1.2 Demographic segmentation

Demographic segmentation can be define as a classification of customer based on demographic unit such as age, gender, income, occupation, life cycle, generation etc.

Age & life cycle:-As age changes or as cycle of life changes or moves on customers taste & preference, needs & wants will be changed.In health insurance population is segmented according to different age wise. As the age increase of person they become more weak that’s why for them premium is high.In vehicle insurance company segment by considering age. As age increasing people drive more vehicle so they get vehicle insurance.In accident insurance as age increase the possibility of accident is more.

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Health Insurance Plans for Individuals upto 65 years

Comprehensive coverage for hospitalisation

Sum insured options ranging from 3 lakhs to 15 lakhs

Cashless hospitalization in more than 4000 hospitals across India

Lifelong Renewal

No Sub-Limits on room rent or Co-Payments

No additional loadings at renewal due to claims

First of its kind Restore benefit which restores entire sum insured with no extra charges

Unique multiplier benefit that offers a bonus of 50% of sum insured for every claim free year

Life stage:-Life stage means diffirent stage in age like childhood, minor/young & old. As stage of life is getting changed need of insurance of person is getting changed. As person become old he/she have to pay large amount of premium bcz of his lifestage age. Every person have health insurance but they have different package for premium. As age is more person have more premium package.

Income:-Income means remuneration which employee get in return of his/her work.In health insurance, company segment according to income. As income high they have insurance of all family members.Income also affect in vehicle insurance as income high they have more vehicle . so they have insurance of all vehicles. Those people who have more income they have insurance of accident also. So income affect in accident segment also.If person have business and he earn high profit/income he have fire insurance for protection of business against fire.In theft insurance , company segment according to income. The person have high income they have theft insurance.

Occupation:-Every occupation require different type of product or service. If occupation changes the needs of customer might be changed.In health insurance, company segment according to occupation those who work in dangerous area they have health insurance.In fire insurance, the person who have business they always have fire insurance. as protection of business against fire.In theft insurance, person have business like of jewelry they have theft insurance.

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In vehicle and accident insurance the person who have occupation of transportation they have vehicle as well as accident insurance.

Family size:-Family size means how many members are there in family. That affect health insurance because as member high insurance will be more. It also affect accident insurance because as family size is big than accident insurance will be more.

4.1.3 Behavioral segmentation

Behavioral segmentation can be define as classification of customer according to behavioural variables like occasion, benefits, user status, usage rate, radines level etc.

Occasion:-In simple word occasion means a specific day which are celebrated.Retairement is one type of occasion for old age people. Insurance company provide after retairement packages to the retired employee. There are very much retirement package are available in the market & it also available on internet.

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4.2 Targeting

Defination:- “ Targeting can be defined as process of evaluating & selecting specific target segments to market the brand or services.

4.2.1 Targeting patterns:-

Single segment concentration:-Organisation is focusing in only & only one group & one product or services.

M1 M2 M3      P1

    P2

    P3

M = Market segment P = Product catagory Product specialization:-

This concept says that the organization wants to become specialized in one product or service.

M1 M2 M3      P1

    P2

    P3

Companies of general insurance is belong to product specialisation. Means they have one product for all market that is health,fire,theft,vehicle,accident.as they have age wise premium policy,income wise different premium policy,occupation wise premium policy.

Market specialization:-

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In this concept organization is specialized in particular segment & for that particular segment organization has got variety of product.

M1 M2 M3      P1

    P2

    P3

Selective specialization:-In this concept the concept is producing no similar services for no one particular segment. Organization is expert in different services for different segment.

M1 M2 M3      P1

    P2

    P3

Full market coverage:-Organization is targeted all products or services for all segments of the customer. In all non life insurance,

M1 M2 M3      P1

    P2

    P3

4.3 Positioning

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Defination:- “ Position can be define as an act of designing company`s offering in such a way so that it occupy a uniq & distinict place in the mind of customer.

4.3.1 Differentiation strategies:-

Product differentiation:-Brand can be differentiation on the basis of number of product or services. Dimensions such as product form, features, performance, quality, labling, packing different from the competing brand.

People differentiation:-Sometimes differentiation with your employee is also important in the market. Better trained personnel exibite six characteristics like competence, courtousy, creditiblity, reliability & communicate.As all insurance company accept people differentiation strategy to gain competitive advantages over competitors.. Employees give good services to the customer which may increase sales.

Service differentiation:- The main service differentiation are ordering ease delivering installation customer training customer consulting & maintanence & repair. Insurance company should provide the different services as compare to competitors product services. By offering good services company can increase customers and sales. If service provider provide better service than competitor than company can gain advantage of more customer & more market share.

Channel differentiation:-Company must have different channel as compare to competitors brand company can achieve through the way they design their distribution channels coverage, expertise & performance.In traditional system of providing insurance company use 1-level distribution channel. But now scenario is getting changed now person can buy insurance from online also, in traditional system there is one intermidate between company & customer & that is agent. Company should appoint one person to sale the insurane to the customer. But in online system company don`t want any person to sale the insurance.

Image differentiation:-

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Buyers respond directly to company & brand image with certain brands. Customer can easily identify the product by certain colour or certain design or symbol. As customer can identify the different company by logo,symbol.

Tata AIG General Insurance Company Limited

YH Tata_Aig_Health Goog_New _Tata Tata_AIG MT

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Chapter.5: Marketing Strategic analysis

The marketing mix is the basic set of tools marketers have available to carry out tactical marketing. The mix is generally thought of as being like the ingredients in a recipe – they need to be combined in the correct proportions and at the correct time if the overall result is to be a success. As in a recipe, one ingredient cannot substitute for another – they all work together toproduce a result. The proportions of the mix necessarily need to be different according to the product type, corporate resources and of course the consumers’ characteristics.

5.1 Product:

Service is an intangible product. It consists of a bundle of features & benefits that have relevance to specific target market. As such, there is a high level of flexibility & opportunity to be innovation in designing a product offer. The product in service marketing mix is intangible in nature. Like physical products such as a soap or a detergent, service products cannot be measured. Tourism industry or the education industry can be an excellent example.

At the same time service products are heterogeneous, perishable and cannot browned. The service product thus has to be designed with care. Generally service blue printing is done to define the service product. For example – a restaurant blue print will be prepared before establishing a restaurant business. This service blue print defines exactly how the product (in this case the restaurant) is going to be.

A product means what we produce. If we produce goods, it means tangible product and when we produce or generate services, it means intangible service product. A product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and therefore services are their product. 

 When a person or an organization buys an Insurance policy from the insurance company, he not only buys a policy, but along with it the assistance and advice of the agent, the prestige of the insurance company and the facilities of claims and compensation.

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It is natural that the users expect a reasonable return for their investment and the insurance companies want to maximize their profitability. Hence, while deciding the product portfolio or the product-mix, the services or the schemes should be motivational. The Group Insurance scheme is required to be promoted, the Crop Insurance is required to be expanded and the new schemes and policies for the villagers or the rural population are to be included.

LEVEL OF PRODUCT:

Here the product refers to the services product. It includes the activities that marketer offered to customer that will result into satisfaction of need or want of predetermined target segment.

Its not the physical product but an activity. In services we are not using the products but the benefits we get from the services. However it is depend upon the service provider i.e. levels of services

This is the bundle of benefits the firm offers to the customer, and is the element which is intended to meet people’s needs. The product is not necessarily physical – it could be a service, and indeed most products contain elements of both service and physical.

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1. Core benefit : The fundamental level of the product is core benefits,the service or benefit that the customer is really buying is knowing as core benefit.

2. Basic product :The marketer must turn the core benefit in to basic product, without basic product marketer cannot provide the core benefit to the customer , customer use non-life insurance service for connect with different people as well as being touch with friends and relatives.

3. Expected product : In the insurance customers expect different insurance . like….health , fire ,theft ,vehicle.

4.Augmented product : At the fourth level, the marketer repairs an augmented service that exceeds customers expection .lots of carying along with the influence mind blowing services which will exceeds the customer expectation is called augmented services.

5. Potential product : It means the services which does not exceed in the market but it is expected in future .At something new and innovation of insurance sector.

Potential Product

Augmented Product

Expected Product

Basic Product

Core Benefit

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5.1.1 Health Insurance product

Individual Health Insurance: Insurance that provides health coverage for those who are not covered through an employer or other group. Assurant Health's individual health insurance product has flexible features designed to protect an individual and his or her family.

Small Group Health Insurance: Health insurance coverage for a small business with 2 to 50 employees and their dependents. Assurant Health offers a variety of benefit choices to help employers design an affordable health plan that best meets the needs of their small business.

Health Savings Accounts (HSAs) :Tax-deductible savings account that is paired with a high deductible insurance plan to cover current and future medical expenses. Unused balances roll over from year to year. As a result of the Medicare Prescription & Modernization Act passed in January, 2004, Assurant Health offers anyone with a qualified high-deductible insurance plan, a tax-advantaged HSA.

Short-Term Health Insurance :A temporary health insurance plan that offers coverage for a short time period – i.e., 30-185 days (depending on the state of residence). Assurant Health's short-term health insurance is offered to individuals who experience a gap in their health insurance coverage. Many short-term health insurance policyholders are between jobs, waiting for employer group coverage, laid off, on strike, recent college graduates or seasonal employees.

Prescription, Dental-Vision and Health Savings Plans :For individuals without health insurance or for those who would like to supplement their current insurance plan with additional savings. The Assurant Health Savings Plans provide discounts on prescriptions, doctor visits, eye care, dental care via access to national networks.

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5.1.2 Fire insurance product

Fire Insurance – Product Summary : Fire, lightning and other perils can seriously damage your property and impact your business severely.NTUC Income's Fire Insurance Policy is a comprehensive Policy that insures your business property against physical loss or damage by fire and lightning.In addition, NTUC Income's Fire Insurance also covers extraneous perils such as riot & strike, malicious damage, explosion, aircraft damage, impact damage, bursting & overflowing of water pipes, flood, earthquake, volcanic eruption, hurricane, cyclone, typhoon and windstorm, with no additional charge.

The insurance can be taken up on the following interests:

The building Furniture, fixtures and fittings Office equipment Stock in trade Rent

Insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance. Property is insured in two main ways—open perils and named perils. Open perils cover all the causes of loss not specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism, and war. Named perils require the actual cause of loss to be listed in the policy for insurance to be provided. The more common named perils include such damage-causing events as fire, lightning, explosion, and theft.

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5.1.3 Theft insurance product

Identity thieves are using your information for new phone and credit card accounts, online transactions, medical fraud or to get a job with your Social Security Number. Your compromised identity may also be used for others’ utility services, house payments, loan applications, fraudulent tax returns or government benefits.

Unfortunately, most consumers don’t find out about identity theft until it’s too late. They may recognize an inconsistency in their credit reports, or be concerned about a bill that comes for a service or product they never purchased. The best way to detect identity theft early is to monitor your accounts and statements on a regular basis. Average consumers will forget to check their credit history or not monitor their identifying information. Fortunately, identity theft protection services do most of the work for you, and will provide additional recovery and resolution services as needed. But finding the right identity protection service for you and your family can be difficult.

In this site, you'll find articles such as Identity Theft Protection Services: LifeLock Command Center and How to Protect Yourself From Identity Theft as well as comprehensive reviews on identity protection services like LifeLock, Identity Force and ProtectMyID. All of this is presented with a side-by-side comparison to help you make an informed decision on which service is right for your identity protection needs

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5.1.4 Accident insurance product

Browse our Accident & Health Products

1)Amateur Sports Accident Insurance :Our participant accident plans can also provide accident medical benefits for participants, coaches, officials and other volunteers who are injured in covered accidents. These plans also complement an organization’s general liability plan by covering injuries under a separate accident policy.

2)Camp Accident Insurance :Our Camp accident insurance plans can help provide medical benefits for members who are injured in covered accidents. These plans also complement an organization’s general liability plan by covering injuries under a separate accident policy.

3)College Student Health Insurance: essential and affordably priced health insurance programs offered through educational institutions for college and university students.

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5.2 PRICE

Pricing of services is important and it is different from that of product’s pricing. The terminology price depends upon the services. services are intangible and it is very difficult to decide the price service due to following reasons

This is the total of what the firm expects the customer to do in return. Price goes beyond the amount the company receives – it also includes other costs the consumer has to pay, such as the cost of learning to use the product, the cost of switching from their existing product, the cost of installation and so forth.

1. Consumer can’t judge and evaluate before the usages

2. It doesn’t results into ownership.

3. Input-Output

STRARTEGIES USED BY SERVICES PROVIDER: Actually services price can be charged as rent , interest, premium, admission , entry fees, etc. pricing strategies depends on the perceived value by the customer.

If value is low: It means services quality is low.

1. Discount: It is the most popular pricing strategies. Here the service provider itself reduces the price.

2. Odd pricing: In this method the price is set as per od pricing bases. Like:499 Rs for Hair-styling

3. Syncro pricing: In syncro pricing the price is depends ob demand and supply of services.

If value is high:

1. Prestige Price: In prestige price service quality is superb and customer is ready to pay high price it is seen status.

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General Price strategy-

1. Two part pricing: Here, price is divided into two parts. First part in that amount compulsory pay by customer. Second part in that as per using you paid the money.

In the insurance sector The pricing decision is a critical one in service too , as this component of the marketing mix alone determines the revenue of the firm consumer sensitivity to price would be higher in service than in goods. Though the basic methods of pricing are the same as in goods, the pricing strategies for service basically depends upon value perception of various groups of people that are targeted by the organization.

In the insurance business the pricing decisions are concerned with:

 I) The premium charged against the policies, 

ii) Interest charged for defaulting the payment of premium and credit facility, and 

iii) Commission charged for underwriting and consultancy activities. 

With a view of influencing the target market or prospects the formulation of pricing strategy becomes significant. In a developing country like India where the disposable income in the hands of prospects is low, the pricing decision also governs the transformation of potential policyholders into actual policyholders.

 The strategies may be high or low pricing keeping in view the level or standard of customers or the policyholders. The pricing in insurance is in the form of premium rates. The three main factors used for determining the premium rates under a life insurance plan are mortality, expense and interest. The premium rates are revised if there are any significant changes in any of these factors. 

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1 Mortality (deaths in a particular area): When deciding upon the pricing strategy the average rate of mortality is one of the main considerations. In a country like South Africa the threat to life is very important as it is played boost of diseases. 

2 Expenses: The cost of processing, commission to agents, reinsurance companies as well as registration are all incorporated into the cost of installments and premium sum and forms the integral part of the pricing strategy

3 Interest: The rate of interest is one of the major factors which determines people's willingness to invest in insurance. People would not be willing to put their funds to invest in insurance business .

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5.3 PLACE

Service is intangible as well as inseparable. These two characteristics do not allow a service firm to follow the same channel options available for goods marketing. Due to the intangible character of service traditional wholesaler & retailers cannot be used. As service cannot be stored & cannot be speculated from producers, retailing cannot be an independent activity in service marketing. Production, distribution 7 consumption are simultaneous activity in service. However service have an advantage of using a direct selling approach, through which service can be offered to the customer at a lower cost. This does not mean direct selling is the only way selling the service. There are certainly other channels of distribution such as agents & brokers franchisers & electronic channels that are used for distribution of services. This component of the marketing mix is related to two important facets

I) Managing the insurance personnel, and

II) Locating a branch. 

The management of agents and insurance personnel is found significant with the viewpoint of maintaining the norms for offering the services. This is also to process the services to the end user in such a way that a gap between the services- promised and services -- offered is bridged over. In a majority of the service generating organizations, such a gap is found existent which has been instrumental in making worse the image problem.

The transformation of potential policyholders to the actual policyholders is a difficult task that depends upon the professional excellence of the personnel. The agents and the rural career agents acting as a link, lack professionalism. The front-line staff and the branch managers also are found not assigning due weight-age to the degeneration process. The insurance personnel if not managed properly would make all efforts insensitive. Even if the policy makers make provision for the quality upgrading the promised services hardly reach to the end users. 

It is also essential that they have rural orientation and are well aware of the lifestyles of the prospects or users. They are required to be given adequate incentives to show their excellence. 

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While recruiting agents, the branch managers need to prefer local persons and provide them training and conduct seminars. In addition to the agents, the front-line staff also needs an intensive training programmed to focus mainly on behavioral management. Another important dimension to the Place Mix is related to the location of the insurance branches. 

While locating branches, the branch manager needs to consider a number of factors, such as smooth accessibility, availability of infrastructural facilities and the management of branch offices and premises. In addition it is also significant to provide safety measures and also factors like office furnishing, civic amenities and facilities, parking facilities and interior office decoration should be given proper attention. 

Thus the place management of insurance branch offices needs a new vision, distinct approach and an innovative style. This is essential to make the work place conducive, attractive and proactive for the generation of efficiency among employees. The branch managers need professional excellence to make place decisions productive. 

Place in case of services determine where is the service product going to be located. The best place to open up a petrol pump is on the highway or in the city. A place where there is minimum traffic is a wrong location to start a petrol pump. Similarly a software company will be better placed in a business hub with a lot of companies nearby rather than being placed in a town or rural area..

The World Health Organization considers work place as one of the priority settings for health promotion into the 21st century" because it influences "physical, mental, economic and social well-being" and "offers an ideal setting and infrastructure to support the promotion of health of a large audience. The Luxembourg Declaration provides that health and well-being of employees at work can be achieved through combination of

A) Improving the organization and the working environment,

B) Promoting active participation, and

C) Encouraging personal development.

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Workplace health promotion strategies also combine alleviation of health risk factors with enhancement of health strengthening factors. This concept is also formulated as integration of a pathogenesis that addresses diseases with salutogenesis that promotes health and well-being.

A guideline recommended in the Luxembourg Declaration includes:

1. Participation: i.e. all staff have to be involved;

2. Integration: i.e. workplace health promotion has to be integrated in all important decisions and in all areas of organizations;

3. Project management: i.e. all measures and programmers have to be oriented to a problem-solving cycle: needs analysis, setting priorities, planning, implementation, continuous control and evaluation;

4. Comprehensiveness: i.e. workplace health promotion includes individual-directed and environment-directed measures from various fields. It combines the strategy of risk reduction with the strategy of the development of protection factors and health potentials.

The positive impact of implementation of workplace health promotion programmers on productivity is widely discussed. The first logical step is to examine the impact of workplace health promotion on absenteeism as productivity is impossible if an employee is absent.[3] However, the potential of increasing productivity is much greater when presenters is analyses as it presents the situation when an employee is being registered as attending and being paid with lower performance due to a health condition or other causes.

Customer & service provider Meet at an Arm’s Length :Here, customer & service provider both are communicating with certain types of insurance. In general insurance include Health, fire, Theft, Accident, Vehicle.

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5.4 PROMOTION

Consumer is co – producers in the service business the quality of service will not only depend upon the performance of the service provider but also the performance of the service consumer. Very few service organization or service concepts can have readily available mature performers as consumer. It is responsibility of service organization to educate & if necessary train customers so as to make them prepared to use the service efficiently. A well designed promotional programmer is of immense help to organization to inform, persuade & train customer to better their experiences. The insurance services depend on effective promotional measures. In a country like India, the rate of illiteracy is very high and the rural economy has dominance in the national economy. It is essential to have both personal and impersonal promotion strategies. In promoting insurance business, the agents and the rural career agents play an important role. Due attention should be given in selecting the promotional tools for agents and rural career agents and even for the branch managers and front line staff.

They also have to be given proper training in order to create impulse buying. Advertising and Publicity, organization of conferences and seminars, incentive to policyholders are impersonal communication. Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive through the mobile publicity van units would be effective in creating the impulse buying and the rural prospects would be easily transformed into actual policyholders. 

Promotions have become a critical factor in the service marketing mix. Services are easy to be duplicated and hence it is generally the brand which sets a service apart from its counterpart. You will find a lot of banks and telecom companies promoting themselves rigorously. Why is that? It is because competition in this service sector is generally high and promotions is necessary to survive. Thus banks, IT companies, and dotcoms place themselves above the rest by advertising or promotions.

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Attracting the consumer to consume services it is promotion.

PROMOTION MIX

Advertisement Publicity Public relation Events & Experiences

1. Advertisement: This is the best method to attract the consumer towards your services. In that give the advertisement in news papers, radio, holders.By that way you can also attract the consumer.

2. Publicity: This is also important way to attract the consumer. Publicity is a non paid and non personal form of service exposer to target customer.

3. Public relation: In public relation, make relation good with the customer so they can come your place again.

4. Events& Experiences: In that use events for attracting the consumer to use the services. Celebrate events at good place so that consumer trust on you and they also love your services. Like:-Cricket match

All insurance are beneficial because the following reasons:

1 Capture senior-level support. A commitment from the top is critical to the success of any promotion initiative. Management must understand the benefits of the program for both the employees and the organization and be willing to put funds towards its development, implementation and evaluation. Descriptions of what competitors are doing in the way of wellness programs and even linking wellness goals to business goals, values and strategic priorities will help to secure senior management support. Managers who “walk the talk” and take part in the initiatives and activities will go a long way to driving others to participate as well.

2. Create a promotion team. All teams should include a cross-section of potential program participants including employees. Your team should include individuals who will have a role in program development, implementation and evaluation. This ensures broad ownership of the program and more innovative ideas. A team based approach will help to garner “buy in” from both management and the participants,develop a program that is responsive to the needs of all potential

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participants, and will be responsible for overseeing all of the company’s wellness efforts.

3. Collect data that will drive your promotion initiatives. Once your team is in place and management is on board, it is time to gather baseline data to help assess employee health interests and risks. The results of your data collection will guide you in what kind of health programs to offer. This process may involve a survey of employee interest in various health initiatives, risk assessments, and claims analysis to determine current employee disease risk.

4. Craft an annual promotion operating plan. For your promotion program to succeed, you must have a plan. An annual promotion operating plan should include a mission statement for the program along with specific, measurable short-and long-term goals and objectives. Your program is more likely to be successful if it is linked to one or more of the company’s strategic initiatives, as it will have a better chance of maintaining the support of management throughout the implementation process. A written wellness plan also provides continuity when members of the health promotion committee change and is instrumental in holding the team accountable to the goals, objectives, and timeline agreed upon.

5. Choose appropriate promotion initiatives. The promotion initiatives that you choose should flow naturally from your data (survey, HRA aggregate report, claims) to goals and objectives. They should address prevailing risk factors in your employee population and be in line with what both management and employees want from the programs and/or initiatives.

6. Create a supportive environment. A supportive environment provides employees with encouragement, opportunity, and rewards. A culture of that supports worksite promotion might have such features as healthy food choices in their vending machines, a no-smoking policy and flexible work schedules that allow workers to exercise. A workplace that values will celebrate and reward achievements and have a management team that models healthy behavior. Most importantly, a culture of involves employees in every aspect of the wellness program from their design and promotion to their implementation and evaluation.

7. Consistently evaluate your promotion outcomes. Evaluation involves taking a close look at your goals and objectives and determining whether you achieved your desired result. Evaluation allows you celebrate goals that have been achieved and to discontinue or change ineffective programs and/or initiatives.

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5.5 PROCESS

Process is a functional activity that assesses service availability & quality. The way

the physical setting is designed technically & how the functions are scheduled &

routed to provide promised service to the customers speaks of the efficiency of the

process. In simple terms, the management of process is to mange service

encounters ( the interaction between service employees & customers, customers &

service environment , systems & other facilities ) effectively gringos has described

process as interactive marketing where in moment of truth.

Types of Service Process

1. Continuous process: A system where the process is continue for one type of

services in large quantity. Entries to exit the process remain same.

2. Intermittent process: In this type of service process, the services are depend

upon Order, Need & Requirement of the people. Here , the services are provided in

installment or phases. When customer want to get service, the service providers are

ready to give services otherwise not.

3. Job shop: Job shop services means services are provided into different

departments as per its types and nature.

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5.5.1 All insurance process

I. Complete an Application

Insurance companies provide various ways for you to obtain and submit a general insurance application:

ONLINE APPLICATION : This is the fastest way to purchase insurance. You provide application data directly to the insurance company website. Processing of the application begins immediately.

DOWNLOAD THE APPLICATION FORM: Download the form from the internet. Print it, then complete the application by hand. Submit the document via mail, fax or scanner/email.

REGULAR MAIL :An agent or insurance company mails you the application form. You complete the document by hand and send it back.

PHONE-IN APPLICATION is available from limited insurers.

II. Submit a Payment

Most insurance companies require a premium deposit be submitted with the application:

Insurance companies typically allow you to submit a deposit via check, money order, credit card or direct charge to a bank account.

Some insurers also require a non-refundable one-time application fee. If your application is approved, your deposit will be applied against your

premium requirement for the initial payment period. If your application is denied or if you refuse the insurer's counteroffer, your

premium deposit will be refunded net (if applicable) any non-refundable application fee.

III. An Initial Review is Performed

The insurer reviews your application and may request additional information they believe necessary to complete an accurate evaluation:

The insurer may phone you to obtain additional information. The insurer may ask you to complete a questionnaire specific to a condition

indicated on the application. The insurer may require copies of your medical records.

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If medical records are required, most insurers pay a reasonable fee for the work involved in copying and mailing the information.

For applicants age 55 or more who have not seen a physician in the last year, a checkup or paramedic exam may be required. Some insurers will assist in arranging a paramedic exam.

IV.The Application is Underwritten

When required history information is accumulated, the insurer studies the data and makes a decision. Possible outcomes include:

The application is approved with standard coverage at the lowest allowable rates. This is the preferred result.

The insurer counteroffers with a higher rate requirement. The insurer requires a medical condition-specific exclusion not included in

the standard insurance contract. The insurer requires a non-standard exclusion AND a higher rate. The insurer declines the request for insurance, refunding the premium

deposit, net (if applicable) any non-refundable application fee.

V. How Long does the Process Take

There are no guarantees as to how long it will take an insurance company to process your application for permanent insurance.For a young person in excellent the process may take only a day. If a more detailed review is required, the insurance company will need more time.

Typical insurance application turnaround is two or three weeks, but it is not unusual for an insurance company to take a month or longer. It depends on the insurance company, it depends on the insurance product, and it depends on the applicant’s history.

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5.6 PEOPLE

Service organization are people oriented & people based organization. Employees of a service firm constitute the major competency in undertaking business operations. Every employee of the service organization is a marketing person, who undertakes either full-time or part-time marketing activity. Whether an employee is involved in direct contact with the customer or not , if he was placed on the line of visibility , his behavior activities’ & performance will have a direct influence on consumers. Service employees are to be trained & motivated for better performance in marketing activities. Understanding the customer better allows to design appropriate products. Being a service industry which involves a high level of people interaction, it is very important to use this resource efficiently in order to satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be kept under consideration. The people who providing services to customer, it contain 2 element because,

Customer who receives services is Human being. Service provider who provides services is also Human being.

High contact people

High contact people mean those types of people who frequently come in contact with customers. In this people maintain appearance in their behavior. Process is a apart of marketing mix. The length of service process decides satisfaction for the customer.

Types of Service Process

1. Continuous process: A system where the process is continue for one type of

services in large quantity. Entries to exit the process remain same.

2. Intermittent process: In this type of service process, the services are depend

upon Order, Need & Requirement of the people. Here , the services are provided in

installment or phases. When customer want to get service, the service providers are

ready to give services otherwise not.

3. Job shop: Job shop services means services are provided into different

departments as per its types and nature.

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5.7 PHYSICAL EVIDENCE

Most service cannot be offered without the support of tangibles. Thought customers cannot see the service they can definitely see the tangibles associated, examine them & try to form on opinion on the service provider. Thus a passenger transport organizations promise of a sale comfortable & timely journey from one place to another will be examined by the transport vehicle’s condition, seating facilities & other physical facilities , the personality of the driver and other personnel, the officer furniture & equipment being used & also the way in which the employees are responding to customers. All these physical evidence plays a critical role in shaping consumer perceptions & also expectations. Distribution is a key determinant of success for all insurance companies. Today, the nationalized insurers have a large reach and presence in India. Building a distribution network is very expensive and time consuming. If the insurers are willing to take advantage of India's large population and reach a profitable mass of customers, then new distribution avenues and alliances will be necessary. Initially insurance was looked upon as a complex product with a high advice and service component. 

Buyers prefer a face-to-face interaction and they place a high premium on brand names and reliability. As the awareness increases, the product becomes simpler and they become off-the-shelf commodity products. Today, various intermediaries, not necessarily insurance companies, are selling insurance. low pricing. Today, it is one of the largest motor insurance operator.

Technology will not replace a distribution network though it will offer advantages like better customer service. Finance companies and banks can emerge as an attractive distribution channel for insurance in India. In Netherlands, financial services firms provide an entire range of products including bank accounts, motor, home and life insurance and pensions. In France, half of the life insurance sales are made through banks. 

In India also, banks hope to maximize expensive existing networks by selling a range of products. It is anticipated that rather than formal ownership arrangements, a loose network of alliance between insurers and banks will emerge, popularly known as banc assurance. 

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Another innovative distribution channel that could be used are the non-financial organizations. For an example, insurance for consumer items like fridge and TV can be offered at the point of sale. This increases the likelihood of insurance sales. Alliances with manufacturers or retailers of consumer goods will be possible and insurance can be one of the various incentives offered.

The last element in the service marketing mix is a very important element. As said before, services are intangible in nature. However, to create a better customer experience tangible elements are also delivered with the service. Take an example of a restaurant which has only chairs and tables and good food, or a restaurant which has ambient lighting, nice music along with good seating arrangement and this also serves good food. Which one will you prefer? The one with the nice ambience. That’s physical evidence. Several times, physical evidence is used as a differentiator in service marketing. Imagine a private hospital and a government hospital. A private hospital will have plush offices and well dressed staff. Same cannot be said for a government hospital. Thus physical evidence acts as a differentiator.

Physical evidence refers to the place where service is being delivered. The customer creates his opinion about the service organisation based on how he finds the place or the physical evidence. Factors which are always looked for in a restaurant for example are cleanliness, promptness and friendly attitude. Physical evidence is an essential part of the marketing mix for the service industry. The mere sight of the place or the appearance of the physical evidence forms the backbone of the customer's opinion making.

The term 'service' can be defined as an act of doing something for someone. Service is by far non-material and an intangible entity. So a service can easily be distinguished from a product which can be held and owned. Service cannot be owned as it is consumed at the point of purchase.

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Chapter 6 Primary Data Analysis

6.1 Data analysis: Settlement is less important for them. As per our research ,out of 100%,0.67% people give first rank to the speed of claim settlement. out of 100%,1% people give 6th rank to the speed of claim settlement.

1: occupation

business profession service housewife TotalNumber of respondent

106 20 160 14 300

% 35.33 6.67 53.33 4.67 100

35.67

6.67

53.33

4.67

occupation

businessprofessionservicehousewife

Interpretation: As per the above mention chart we can say that out of 100 percent people, non life

1. 35.33% are businessman who has insurance

2. 6.67%are professional who have insurance

3. 53.33%are doing job that have insurance

4. 4.67% are house wife who have insurance

The sample size consist of 300 respondents taken randomly. Here we have segmented sample according to occupation. as people who are doing job, they have more insurance than others. and house wife who have less insurance than others due to awareness of insurance.

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2: Family income

<20000 20000to30000 30000to40000 >40000 TotalNumber of respondent

107 112 40 41 300

% 35.67 37.33 13.33 13.67 100

35.67

37.33

13.33

13.67

Family income

<2000020000to3000030000to40000>40000

Interpretation:

As per the above chats, we can say that out of 100%, people

1. 35.67%are the people who have insurance. who belong to below 20,000 monthly family income.

2. 37.33% are the people who belong to 20,000 to 30,000 monthly family income.3. 13.33% are the people who belong to 30,000 to 40,000 monthly family income.4. 13.67% are the people who belong to more than 40,000 monthly family income.

The sample size consist of 300 respondent taken randomly. Here we have segmented our sample size according to family’s monthly income.There is no positive relationship between income and insurance taking.People have more insurance who belong to 20,000 to 30,000.

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3: Family members

two three four >four TotalNumber of respondent

13 68 104 115 300

% 4.33 22.67 34.67 38.33 100

4.3322.67

34.67

38.33

Family members

twothreefour>four

Interpretation:

The sample size consist of 300 respondents taken randomly. Here we have segmented our sample size according to family members.By observing above chart, we can say that there is positive relationship between no. of members in the family and insurance taking by them.Family having members more than four they have more insurance and family having only two members they have less insurance.

239

4 General insurance

yes no totalNumber of respondent

300 300

% 100 100

100

general insurance

yes

Interpretation:

Here we have segmented our sample size according to whether they have general insurance or not.As per our research, 98.1% people have general insurance and 2% people have general insurance and 2% people have no general insurance.

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5 Health insurance

yes no TotalNumber of respondent

257 43 300

% 85.67 14.33 100

yes no0

10

20

30

40

50

60

70

80

90

85.67

14.33

Column3Column4Column1

Interpretation:

Here we have segmented our total sample size according to whether they have health insurance or not.From the above chart, we can say that 85.67% people have health insurance. And 14.33% people have no health insurance.As per research we can say that maximum no. of people have health insurance.

241

6 Fire insurance

yes No TotalNumber of respondent

25 275 300

% 8.33 91.67 100

no. of respondent0

10

20

30

40

50

60

70

80

90

100

8.33

91.67

fire ins.

yesno

no. of res.

%

Interpretation:

Here, we have segmented our total sample size, selected randomly, according to whether they have fire insurance or not.8.33% people have fire insurance and remaining 91.67% people have no fire insurance. As per5 research we can say that maximum no. of people have health insurance.

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7 Theft insurance

Yes no TotalNumber of respondent

22 278 300

% 7.33 92.67 100

no.res0

10

20

30

40

50

60

70

80

90

100

theft insurance

yesno

no.res.

%

Interpretation:

Here, we have segmented our total sample size selected randomly, according to whether they have theft insurance or not.As per our research, 7.33% people have theft insurance 92.67% people have no theft insurance.The season, for maximum no theft insurance ,may be banking facility which give security of money, and of other thing.

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8 Accident insurance

yes no Total

Number of respondent

131 169 300

% 43.67 56.33 100

no.res0

10

20

30

40

50

60

43.67

56.33

acci. ins

yesno

no.res

%

Interpretation:

Here, we have segmented our sample size according to whether they have accident insurance or not.As per our research, 43.67% people having accident insurance 56.33% people having no insurance as day by day accident increases.In this accident insurance 131 no. of respondent consider all the factor .

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9 Vehicle insurance

yes no TotalNumber of respondent

165 135 300

% 55 45 100

Interpretation:

Here, we have segmented our sample size according to whether they have vehicle insurance or not.As per our research, 55% people having vehicle insurance 45%peo;ple having no vehicle insurance.There is no much more difference between people having vehicle insurance and people having no vehicle insurance.

no.res0

10

20

30

40

50

60 55

45

vehicle ins.

yesno

no.res

%

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10 Company of health insurance

National ins. ltd.

New India ins. ltd

Oriental ins.ltd.

United ins. ltd.

ICICI Lombard

Bajaj Allianz

TATA AIG

Others

blank

No. Res.

36 35 37 18 35 21 8 68 42

% 12 11.67

12.33 6 11.67 7 2.67 22.67 14

12

11.67

12.33

611.67

72.67

22.67

14

company Health insurance

N.I.LN.I.I.LO.I.LU.I.LICICI lombardBAJAJ AllianzTATA AIGothersBlank

Interpretation:

The above chart shows that the % of respondent having health insurance of particular company. As per our research out of 100%,

1. 12% people having health insurance of national ins. Co. ltd.2. 11.67% people having health insurance of new India assurance co.ltd3. 12.33% people having health insurance of oriental ins. Co. ltd.4. 6% people having health insurance of united insurance co. ltd.5. 11.67% people having health insurance of icici Lombard6. 7% people having health insurance of Bajaj Allianz7. 2.67% people having health insurance of Tata AIG8. 22.67% people having health insurance of Others

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9. 14% people not have health insurance .from the above chart, we can say that maximum no. of people having i9ns. Of others company than mentioned above

11 Premium

1 2 3 4 5 6 7 Blank totalNo. of Respondent

43 56 66 52 32 8 1 42 300

% 14.33 18.67 22 17.33 10.67 2.67 0.33 14 100

14.33

18.67

2217.33

10.67

2.67

0.330000000000

00214

premium

1234567blank

Interpretation:

The above mention chart shows that the % of respondents rank premium as a factor they consider while buying health.ins. 1st rank shows that people give first priority to premium and people who give 7 rank . for them it is less important.

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12 cash less benefit

1 2 3 4 5 6 7 blank totalNo.of respondent

38 38 53 58 46 21 4 42 300

% 12.67 12.67 17.67 19.33 15.33 7 1.33 14 100

12.67

12.67

17.6719.33

15.33

71.33

14

cash less benefit

1234567blank

Interpretation:

Above chart show that the % of people are considered cash less benefit as a factor while buying health insurance. Out of 100% ,12.67% people give first rank to cash less benefit. Out of 100% ,1.33 people give seven rank to cash less benefitAs per our research ,we can say that maximum no. of people give priority to cash less benefit as a factor.

248

13 Age coverage

1 2 3 4 5 6 7 blank TotalNo. of respondent

17 41 53 47 62 31 7 42 300

% 5.67 13.67 17.67 15.67 20.67 10.33 2.33 14 100

5.67 13.67

17.67

15.6720.67

10.33

2.33

14

Age coverage

1234567blank

Interpretation:

The above chart show that how far people considered Age coverage as a factor while buying health insurance. As per our research, out of 100%,5.67% people give first priority to age coverage. out of 100%,2.33% people give seven rank to age coverage.As per our research, there is no much more difference between people giving first and last priority to age coverage.

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14 Family coverage

1 2 3 4 5 6 7 blank totalNo.of respondent

113 49 21 21 23 25 6 42 300

% 37.67 16.33 7 7 7.67 8.33 2 14 100

37.67

16.337

7

7.67

8.33

2 14

family coverage

1234567blank

Interpretation:

The above chart show that the % of people giving different priority to family coverage.As per our research ,out of 100%,37.67% people give first rank to the family coverage.out of 100%,2% people give seven rank to the family coverage

250

251

15 company

1 2 3 4 5 6 7 blank TotalNo. of respondent

25 44 29 38 53 63 6 42 300

% 8.33 14.67 9.67 12.67 17.67 21 2 14 100

8.33 14.67

9.67

12.6717.67

21

2 14

company

1234567blank

Interpretation

As per our relation maximum no. of people have given 6th rank which shows less important company as a factor while buying health insurance As per our research ,out of 100%,8.33% people give first rank to the company out of 100%,2 people give seven rank to the company

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16 speed of claim settlement

1 2 3 4 5 6 7 blank TotalNo. of respondent

20 24 34 36 26 103 15 42 300

% 6.67 8 11.33 12 8.67 34.33 5 14 100

6.678

11.33

12

8.6734.33

514

speed claim settlement

1234567blank

Interpretation:

The above chart shows that how far people considered speed of claim settlement as a factor while buying health insuranceAs per our research, maximum no. of people rank 6th rank which shows speed of claim settlement is less important for them.As per our research ,out of 100%,6.67% people give first rank to the speed of claim settlement. out of 100%,5% people give seven rank to the speed of claim settlement.

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17 others

1 2 3 4 5 6 7 Blank TotalNo. of respondent

3 5 6 3 15 6 220 42 300

% 1 1.67 2 1 5 2 73.33 14 100

1 1.672 15

2

73.33

14

others

1234567blank

Interpretation:

Above chart show that how far people considered others benefit as factor while buying health insurance. Out of 100%,1% people give first rank to the others as a factor. Out of 100%,73.33% people give seven rank to the others as a factor. Maximum no. of people give 7thrank to the others. This means majority of people considered above mentioned factor rather than others.

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18 payment premium of health insurance

<2000 2001to5000 5001to8000

>8000 blank Total

No. of respondent

84 99 46 29 42 300

% 28 33 15.33 9.67 14 100

28

33

15.33

9.67

14

payment of premium

<20002001to50005001to8000>8000blank

Interpretation:

Above chart show that how far people considered others benefit as factor while buying health insurance. Out of 100 28% respondent pay the premium less than 2000 . And 15.33% no. Of respondent pay 5001 to 8000.In this maximum no. of respondent pay the premium of health insurance 2001 to 5000. In out of 100 9.67% respondent pay the premium more than 8000.

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19 satisfaction of health insurance

Yes No blank totalNo.of respondent

242 16 42 300

% 80.67 5.33 14 100

80.67

5.3314

satisfaction of health insurance

yesnoblank

Interpretation:

Here ,we have segmented our total sample size according to whether they are satisfied with services given by health insurance or not. As per our research out of 100% ,80.67% people are satisfied with services given by health insurance. As per our research out of 100% ,5.33% people are not satisfied with services given by health insurance. So ,we can say that maximum no. of people satisfied with services given by health insurance.

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20 change of Health Insurance Company

yes no blank TotalNo.of respondent

27 227 46 300

% 9 75.67 15.33 100

9

75.67

15.33

change of health ins.co.

yesnoblank

Interpretation:

Here ,we segmented our total sample size according to whether they want to change their company or not.As per our research out of 100%, 9% people want to change their insurance company. As per our research out of 100%, 75.67% people not want to change their insurance company.We can see from the above chart maximum no. of people loyal towards their insurance company.

257

21 if yes, why?

High premium

Poor cash less

Poor services

Less dieses coverage

others blank Total

No.of respondent

13 2 9 2 2 272 300

% 4.33 0.67 3 0.67 0.67 90.67 100

4.330.6700000000000053

0.67000000000000

50.67000000000000

5

90.67

if yes, why?

high premiumpoor cash lesspoor servicesless dieses coverageothersblank

Interpretation:

Here we segmented our total sample size of changing in health insurance in this chart there are so many reasons High premium , poor cash less & service , less dieses & other reasons consider . In our sample size 300 respondent maximum reasons is poor service in the health insurance it is 3%. In this 300 respondent out of 100 4.33% no. of respondent change the health insurance co. Bcz high premium & .67% no. of respondent change in health insurance co. Bcz the poor cash less & service.

258

22 companies of fire insurance

National ins. ltd.

New India ins. ltd

Oriental ins.ltd.

United ins. ltd.

ICICI Lombard

Bajaj Allianz

TATA AIG

Others

blank

No. Res.

36 35 37 18 35 21 8 68 42

% 12 11.67

12.33 6 11.67 7 2.67 22.67 14

12

11.67

12.33

611.67

72.67

22.67

14

company Fire insurance

N.I.LN.I.I.LO.I.LU.I.LICICI lombardBAJAJ AllianzTATA AIGothersBlank

Interpretation:

The above chart shows that the % of respondent having fire insurance of particular company. As per our research out of 100%,

1. 12% people having fire insurance of national ins. Co. ltd.2. 11.67% people having fire insurance of new India assurance co.ltd3. 12.33% people having fire insurance of oriental ins. Co. ltd.4. 6% people having fire insurance of united insurance co. ltd.5. 11.67% people having fire insurance of icici Lombard6. 7% people having fire insurance of Bajaj Allianz7. 2.67% people having fireinsurance of Tata AIG

259

8. 22.67% people having fire insurance of Others9. 14% people not have fire insurance .from the above chart, we can say that

maximum no. of people having i9ns. Of others company than mentioned above

23 premium of fire ins.

1 2 3 4 5 6 blank TotalNo.of respondent

5 10 3 3 2 1 276 300

% 1.67 3.33 1 1 0.67 0.33 92 100

1.67 3.33 1 1

0.67000000000000

50.33000000000000

2

92

premium of Fire ins.

123456blank

Interpretation:

The above mention chart shows that the % of respondents rank premium as a factor they consider while buying Fire .ins. 1st rank shows that people give first priority to premium and people who give 7 rank . for them it is less important.1.67% no. of respondent give 1st Rank,1% no. of respondent gives 3rd & 4th rank of the premium of fire insurance .

260

24 cash less benefit

1 2 3 4 5 6 blank TotalNo. of respondent

3 - 6 9 6 - 276 300

% 1 - 2 3 2 - 92 100

12 3 2

92

cash less benefit

1 23 45 6blank

Interpretation:

Above chart show that the % of people are considered cash less benefit as a factor while buying fire insurance. Out of 100% ,1% people give first rank to cash less benefit. Out of 100% ,3% people give seven rank to cash less benefit As per our

261

research ,we can say that maximum no. of people give priority to cash less benefit as a factor.

25 family coverage

1 2 3 4 5 6 blank totalNo.of respondent

3 5 5 2 7 2 206 300

% 1 1.67 1.67 0.67 2.33 0.67 68.67 100

1 1.67

1.670.670000000000005

2.330.670000000000005

68.67

family coverage

123456blank

Interpretation:

262

The above chart show that the % of people giving different priority to family coverage. As per our research ,out of 100%,68.67% people give first rank to the family coverage .out of 100%,0.33% people give 5th rank to the family coverage

26 companies

1 2 3 4 5 6 Blank TotalNo. of respondent

3 5 5 2 7 2 206 300

% 1 1.67 1.67 0.67 2.33 0.67 68.67 100

1 1.67

1.670.670000000000005

2.330.670000000000005

68.67

company

123456blank

Interpretation

263

As per our relation maximum no. of people have given 6th rank which shows less important company as a factor while buying fire insurance As per our research ,out of 100%,1% people give first rank to the company out of 100%,2.33% people give seven rank to the company

27 speed of claim settlement

1 2 3 4 5 6 blank TotalNo. of respondent

2 5 4 8 5 - 276 300

% 0.67 1.67 1.33 2.67 1.67 - 92 100

0.670000000000005 1.67 1.332.671.67

92

speed of claim settelment

123456blank

264

Interpretation:

The above chart shows that how far people considered speed of claim settlement as a factor while buying fire insurance As per our research, maximum no. of people rank 6th rank which shows speed of claim settlement is less important for them. As per our research ,out of 100%,0.67% people give first rank to the speed of claim settlement. out of 100%,1% people give 6th rank to the speed of claim settlement.

28 others

1 2 3 4 5 6 blank TotalNo. of respondent

1 1 1 - 1 20 276 300

% 0.33 0.33 0.33 0.33 0.67 92 100

0.330000000000002 0.330000000000002 0.330000000000002 0.3300000000000026.67

92

others

123456blank

Interpretation:

Above chart show that how far people considered others benefit as factor while buying fire insurance. Out of 100%,1% people give first rank to the others as a

265

factor .Out of 100%,92% people give 6th rank to the others as a factor. Maximum no. of people give 1st rank to the others. Which means majority of people considered above mentioned factor rather than others.

29 payment of premium of fire ins.

<2000 2001to5000 5001to8000 >8000 blank TotalNo.of respondent

5 11 5 3 276 300

% 1.67 3.67 1.67 1 92 100

1.67 3.67 1.671

92

payment of premium of fire ins.

<20002001to50005001to8000>8000blank

Interpretation:

Above chart show that how far people considered others benefit as factor while buying fire insurance. Out of 100%,1% people give first rank to the others as a

266

factor .Out of 100%,1.67% people give more than payment of fire insurance . Maximum no. of people give 1% respondent pay the premium of fire insurance more than 8000. This means majority of people considered above mentioned factor rather than others.

30 satisfaction of fire ins.

Yes No blank totalNo.of respondent

24 - 276 300

% 8 - 92 100

8

92

satisfaction of fire ins.

yesnoblank

Interpretation:

267

Here ,we have segmented our total sample size according to whether they are satisfied with services given by fire insurance or not As per our research out of 100% ,8% people are satisfied with services given by health insurance. As per our research out of 100% , people are not satisfied with services given by fire insurance. So ,we can say that maximum no. of people satisfied with services given by fire insurance.

31 changes of fire ins. Company

yes no blank TotalNo. of respondent

4 20 276 300

% 1.33 6.67 92 100

1.336.67

92

changes of fire ins. Comp.

yesnoblank

Interpretation:

268

Here ,we segmented our total sample size according to whether they want to change their company or not. As per our research out of 100%, 1.33% people want to change their insurance company. As per our research out of 100%, 6.67% people not want to change their insurance company.We can see from the above chart maximum no. of people loyal towards their insurance company.

32 if yes, why?

High premium

Poor cash less

Poor service

others blank Total

No. of respondent

4 - - - 296 300

% 1.33 - - - 98.67 100

1.33

98.67

if yes, why?

high premium poor cash lesspoor serviceothersblanks

Interpretation:

269

Here we segmented our total sample size of changing in fire insurance in this chart there are so many reasons High premium , poor cash less & service , less dieses & other reasons consider . In our sample size 300 respondent maximum reasons is poor service in the fire insurance it is1.33%. In this 300 respondent out of 100 98.67% no. of respondent which not change the fire insurance co.

33 companies of Theft insurance

National ins. ltd.

New india ins. ltd

Oriental ins.ltd.

United ins. ltd.

ICICI Lombard

Bajaj Allianz

TATA AIG

Others

blank

No. Res.

3 4 6 2 3 2 1 1 278

% 1 1.33 2 0.67 1 0.67 0.33 0.33 92.67

1 1.332

0.6700000000000051

0.6700000000000050.330000000000003

0.330000000000003

92.67

companies of T.I

N.I.LN.I.A.LO.I.LU.I.LICICIBAJAJTATAOTHERSBLANK

Interpretation:

The above chart shows that the % of respondent having theft insurance of particular company. As per our research out of 100%,

270

1. 1% people having theft insurance of national ins. Co. ltd.2. 1.33% people having theft insurance of new India assurance co.ltd3. 2.% people having theft insurance of oriental ins. Co. ltd.4. 0.67% people having theft insurance of united insurance co. ltd.5. 1% people having theft insurance of icici Lombard6. 0.67% people having theft insurance of Bajaj Allianz7. 0.33% people having theft insurance of Tata AIG8. 0.33% people having theft insurance of Others9. 92.67% people not have theft insurance .from the above chart, we can say

that maximum no. of people having i9ns. Of others company than mentioned above

34 premium of theft ins.

1 2 3 4 5 6 7 blank totalNo. of respondent

3 6 3 3 3 4 - 278 300

% 1 2 1 1 1 1.33 - 92.67 100

12

1 1 1 1.33

92.67

premium of theft ins.1

2

3

4

5

6

7

blank

271

Interpretation:

The above mention chart shows that the % of respondents rank premium as a factor they consider while buying theft .ins. 1st rank shows that people give first priority to premium and people who give 7 rank . for them it is less important no. of respondent give 1st Rank,1% no. of respondent gives 3rd & 4th rank of the premium of theft insurance.

35 cash less benefit of theft ins.

1 2 3 4 5 6 7 blank OthersNo.of respondent

3 5 3 8 2 1 - 278 300

% 1 1.67 1 2.67 0.67 0.33 - 92.67 100

272

Interpretation:

Above chart show that the % of people are considered cash less benefit as a factor while buying theft insurance. Out of 100% ,1% people give first rank to cash less benefit. Out of 100% ,0 people give 6th rank to cash less benefit As per our research ,we can say that maximum no. of people give priority to cash less benefit as a factor.

36 Age coverage

1 2 3 4 5 6 7 blank TotalNo.of respondent

1 3 4 2 6 6 - 278 300

% 0.33 1 1.33 0.67 2 2 - 92.67 100

1 1.67 12.67

0.67000000000000

50.33000000000000

2

92.67

cash less benefit

1

2

3

4

5

6

7

blank

273

0.330000000000002 1 1.33 0.6700000000000052 2

92.67

age coverage

1234567blank

Interpretation:

The above chart show that how far people considered Age coverage as a factor while buying theft insurance. As per our research, out of 100%,0.33% people give first priority to age coverage. out of 100%,2% people give 6th rank to age coverage As per our research, there is no much more difference between people giving first and last priority to age coverage

37 family coverage

1 2 3 4 5 6 7 blank TotalNo.of respondent

6 4 2 3 4 3 - 278 300

% 2 1.33 0.67 1 1.33 1 - 92.67 100

274

21.33 0.670000000000005

1

1.331

92.67

family coverage

1234567blank

Interpretation:

The above chart show that the % of people giving different priority to family coverage. As per our research ,out of 100%,2% people give first rank to the family coverage. out of 100%,1% people give 6th rank to the family coverage

38 company

1 2 3 4 5 6 7 blank TotalNo. of respondent

7 3 4 3 5 - - 278 300

% 2.33 1 1.33 1 1.67 - - 92.67 100

275

2.33 1 1.3311.67

92.67

company

1234567blank

Interpretation

As per our relation maximum no. of people have given 6th rank which shows less important company as a factor while buying theft insurance As per our research ,out of 100%,2.33% people give first rank to the company out of 100%,no any one people give seven rank to the company

39 speed claim settlement

1 2 3 4 5 6 7 blank TotalNo. of respondent

2 1 5 3 2 8 1 278 300

% 0.67 0.33 1.67 1 0.67 2.67 0.33 92.67 100

276

0.670000000000005 0.330000000000002 1.67 1 0.6700000000000052.67

0.33000000000000

2

92.67

speed claim settlement

1234567blank

Interpretation:

The above chart shows that how far people considered speed of claim settlement as a factor while buying theft insurance As per our research, maximum no. of people rank 6th rank which shows speed of claim settlement is less important for them.As per our research ,out of 100%,0.67% people give first rank to the speed of claim settlement. out of 100%,0.33% people give seven rank to the speed of claim settlement.

40 others

1 2 3 4 5 6 7 blank totleNo. of respondent

- 1 - - - - 21 278 300

277

% - 0.33 - - - - 7 92.67 100

0.3300000000000027

92.67

others

1234567blank

Interpretation:

Above chart show that how far people considered others benefit as factor while buying theft insurance .Out of 100%,no any one people give first rank to the others as a factor. Out of 100%,7% people give seven rank to the others as a factor. Maximum no. of people give 7thrank to the others. Which means majority of people considered above mentioned factor rather than others.

41 how much premium you pay

>2000 2001 to 5001 to <8000 Blank total

278

5000 8000No. of respondent

4 7 8 3 278 300

% 1.33 2.33 2.67 1 92.67 100

1.33 2.33 2.671

92.67

how much pri. You pay

>20002001-50005001-8000<8000blank

Interpretation:

Above chart show that how far people considered others benefit as factor while buying theft insurance .Out of 100%,1.33% people pay premium less than 2000. Out of 100%,maximum1% people pay the premium more than 8000rs Which means majority of people considered above mentioned factor rather than others.

42 satisfied with services by theft ins.

yes no blank totalNo. of respondent

20 2 278 300

% 6.67 0.67 92.67 100

279

6.67

0.67000000000000

5

92.67

satisfide of services by theft ins

yesnoblank

Interpretation:

Here ,we have segmented our total sample size according to whether they are satisfied with services given by theft insurance or not. As per our research out of 100% ,6.67% people are satisfied with services given by theft insurance. As per our research out of 100% ,0.67% people are not satisfied with services given by theft insurance .So ,we can say that maximum no. of people satisfied with services given by theft insurance.

43 changes of theft ins. Company

yes no blank TotalNo. of respondent

2 20 278 300

280

% 0.67 6.67 92.67 100

0.6700000000000056.67

92.67

changes of theft ins. Company

yesnoblank

Interpretation:

Here ,we segmented our total sample size according to whether they want to change their company or not.As per our research out of 100%, 0.67% people want to change their insurance company. As per our research out of 100%,6.67% people not want to change their insurance company.We can see from the above chart maximum no. of people loyal towards their insurance company.

44 if yes, why?

High pre. Poor cash less

Poor services

others blank Total

No. of 1 - - - 299 300

281

respondent% 0.33 - - - 99.67 100

0.330000000000002

99.67

if yes,why?

high pre.poor cash lesspoor servicesothersblank

Interpretation:

Here we segmented our total sample size of changing in theft insurance in this chart there are so many reasons High premium , poor cash less & service , less dieses & other reasons consider . In our sample size 300 respondent maximum reasons is high premium in the theft insurance it 0.33%. In this 300 respondent out of 100 99.67% no. of respondent is not change the health insurance co.

45 accident ins. companies

National ins.

New indi

Oriental

United ins.

ICICI Lombar

Bajaj Allian

TATA

Others

blank

282

ltd. a ins. ltd

ins.ltd. ltd. d z AIG

No. Res.

23 17 23 16 18 15 4 13 171

% 7.67 5.67 7.67 5.33 6 5 1.33 4.33 57

7.675.67

7.67

5.33

6

5

1.33

4.33

57

accident ins. Companies

n.i.c.ln.i.a.c.lo.c.lu.c.licici lombardbajaj allianztata aigotherblank

Interpretation:

The above chart shows that the % of respondent having theft insurance of particular company. As per our research out of 100%,

1. 7.67% people having accident insurance of national ins. Co. ltd.2. 5.67% people having accident insurance of new India assurance co.ltd3. 7.67% people having accident insurance of oriental ins. Co. ltd.4. 5.33% people having accident insurance of united insurance co. ltd.5. 6% people having accident insurance of icici Lombard6. 5% people having accident insurance of Bajaj Allianz7. 1.33% people having accident insurance of Tata AIG8. 4.33% people having accident insurance of Others9. 57% people not have accident insurance .from the above chart, we can say

that maximum no. of people having i9ns. Of others company than mentioned above

46 premium of accident ins.

283

1 2 3 4 5 6 7 blank totalNo. Of respondent

29 28 27 19 19 5 2 171 300

% 9.67 9.33 9 6.33 6.33 1.67 0.67 57 100

9.67 9.33

9

6.33

6.33 1.670.67000000000000

5

57

premium of accident ins.

1234567blank

Interpretation:

The above mention chart shows that the % of respondents rank premium as a factor they consider while buying accident .ins. 1st rank shows that people give first priority to premium and people who give 7 rank . for them it is less important.9.67% no. of respondent give 1st Rank,9.% no. of respondent gives 3rd rank of the premium of accident insurance. and 0.67% no of respondents give 7th rank premium of accident ins.

47 cash less benefit

284

1 2 3 4 5 6 7 blank totalNo. Of respondent

15 17 23 41 24 7 2 171 300

% 5 5.67 7.67 13.67 8 2.33 0.67 57 100

5 5.67 7.67

13.67

82.33

0.67000000000

0005

57

cash less benefit

1234567

Interpretation:

Above chart show that the % of people are considered cash less benefit as a factor while buying health insurance. Out of 100% ,5% people give first rank to cash less benefit. Out of 100% ,0.67 people give seven rank to cash less benefit As per our research ,we can say that maximum no. of people give priority to cash less benefit as a factor.

285

48 age coverage

1 2 3 4 5 6 7 blank Totalno. of respondent

19 22 19 17 33 18 1 171 300

% 6.33 7.33 6.33 5.67 11 6 0.33 57 100

6.337.33

6.33

5.67

11

6 0.33000000000000

2

57

age coverage

1234567blank

Interpretation:

The above chart show that how far people considered Age coverage as a factor while buying accident insurance. As per our research, out of 100%,6.33% people give first priority to age coverage. out of 100%,0.33% people give seven rank to age coverage. As per our research, there is no much more difference between people giving first and last priority to age coverage.

49 family coverage

286

1 2 3 4 5 6 7 blank totalNo. of respondent

31 21 20 13 20 21 3 171 300

% 10.33 7 6.67 4.33 6.67 7 1 57 100

10.337

6.67

4.33

6.67

7

1

57

family coverage

1234567

Interpretation:

The above chart show that the % of people giving different priority to family coverage. As per our research ,out of 100%,10.33% people give first rank to the family coverage. out of 100%,1% people give seven rank to the family coverage. In 57 % no of respondents no take the this factors.

50 company

287

1 2 3 4 5 6 7 blank total

No. of respondent

17 22 16 16 20 34 4 171 300

% 5.67 7.33 5.33 5.33 6.67 11.33 1.33 57 100

5.677.33

5.33

5.33

6.67

11.33

1.33

57

company

1234567blank

Interpretation

As per our relation maximum no. of people have given 6th rank which shows less important company as a factor while buying accident insurance As per our research ,out of 100%,5.67% people give first rank to the company out of 100%,1.33 people give seven rank to the company as a factor of choosing insaurance.

51 speed claim settlement

288

1 2 3 4 5 6 7 blank totalNo. of respondent

16 15 22 22 9 41 4 171 300

% 5.33 5 7.33 7.33 3 13.67 1.33 57 100

5.335 7.3

7.33

3

13.67

1.33

57

speeds claim sattlement

1234567blank

Interpretation:

The above chart shows that how far people considered speed of claim settlement as a factor while buying accident insurances per our research, maximum no. of people rank 6th rank which shows speed of claim settlement is less important for them. As per our research ,out of 100%,5.33% people give first rank to the speed of claim settlement. out of 100%,1.33% people give seven rank to the speed of claim settlement.

52 others

289

1 2 3 4 5 6 7 blank totalNo.of respondent

2 5 2 1 4 3 112 171 300

% 0.67 1.67 0.67 0.33 1.33 1 37.33 57 100

0.6700000000000051.670.670000000000005 0.330000000000002 1.331

37.33

57

others

1234567blank

Interpretation:

Above chart show that how far people considered others benefit as factor while buying health insurance. Out of 100%, 0.67% people give first rank to the others as a factor. Out of 100%, 37.33% people give seven rank to the others as a factor. Maximum no. of people give 7thrank to the others. Which means majority of people considered above mentioned factor rather than others?

290

53 how much premium you pay

<2000 2001to5000 5001to8000

>8000 blank Total

No. of respondent

44 61 14 10 171 300

% 14.67 20.33 4.67 3.33 57 100

14.67

20.33

4.67

3.33

57

how much premium you pay

<20002001to50005001to8000>8000blank

Interpretation:

Above chart show that how far people considered others benefit as factor while buying fire insurance. Out of 100% ,14.67% people give first rank to the others as a factor .Out of 100%,3.33% people give more than 8000 payment of accident . This means majority of people considered above mentioned factor rather than others. In this majority people’s pay premium 2001 to 5000.

291

54 satisfied with services given by accident ins.

yes No Blank totalNo. of respondent

124 5 171 300

% 41.33 1.67 57 100

41.33

1.67

57

satisfied with service by a.i.

yesno blank

Interpretation:

Here ,we have segmented our total sample size according to whether they are satisfied with services given by accident insurance or not. As per our research out of 100%, 41.33% people are satisfied with services given by accident insurance. As per our research out of 100% ,1.67% people are not satisfied with services given by accident insurance. So, we can say that maximum no. of people satisfied with services given by accident insurance.

292

55 want to change insurance company

yes no blank totalNo. of respondent

22 107 171 300

% 7.33 35.66 57 100

7.33

35.66

57

change insurance company

yesnoblank

Interpretation:

Here ,we segmented our total sample size according to whether they want to change their company or not. As per our research out of 100%, 7.33% people want to change their insurance company. As per our research out of 100%, 35.66% people not want to change their insurance company. We can see from the above chart maximum no. of people loyal towards their insurance company.

293

56 If yes, than why?

High pre.

Poor cash less

Poor services

others blank total

No. of respondent

8 1 9 1 281 300

% 2.67 0.33 3 0.33 93.67 100

2.67 0.3300000000000023 0.330000000000002

93.67

if yes,than why?

high pre.poor cash lesspoor servicesothers

Interpretation:

Here we segmented our total sample size of changing in health insurance in this chart there are so many reasons High premium , poor cash less & service , less dieses & other reasons consider . In our sample size 300 respondent maximum reasons ishigh premium in the accident insurance it is 2.67%. In this 300 respondent out of 100 0.33% no. of respondent change the accident insurance co. Bcz poor cash less. & .93.67% no. of respondent which is not change insurance co. Bcz then they loyal customers.

294

57 companies of vehicle insurance

n.i.c.o n.i.a.c.o

o.c.o u.i.i.c.o

icici bajaj tata other blank

No. of respondent

18 22 17 16 30 28 11 23 135

% 6 7.33 5.67 5.33 10 9.33 3.67 7.67 45

6 7.335.67

5.33

10

9.33

3.67

7.67

45

which company insurance

n.i.con.iacooncou.i.i.c.oicici lombardbajaj aalliaztata aigotherblank

Interpretation:

The above chart shows that the % of respondent having theft insurance of particular company. As per our research out of 100%,

1. 6% people having vehicle insurance of national ins. Co. ltd.2. 7.33% people having vehicle insurance of new India assurance co.ltd3. 5.67.% people having vehicle insurance of oriental ins. Co. ltd.4. 5.33% people having vehicle insurance of united insurance co. ltd.5. 10% people having vehicle insurance of icici Lombard6. 9.33% people having vehicle insurance of Bajaj Allianz7. 3.67% people having vehicle insurance of Tata AIG8. 7.67% people having vehicle insurance of Others9. 45% people not have vehicle insurance .from the above chart, we can say

that maximum no. of people having i9ns. Of others company than mentioned above.

295

58 premium

1 2 3 4 5 6 7 blank totalNo. of respondent

44 34 38 31 10 8 - 135 300

% 14.67 11.33 12.67 10.33 3.33 2.67 - 45 100

14.67

11.33

12.67

10.33

3.332.67

45

premium of vehicle insurance

1234567blank

Interpretation:

The above mention chart shows that the % of respondents rank premium as a factor they consider while buying accident .ins. 1st rank shows that people give first priority to premium and people who give 7 rank . for them it is less important.14.67% no. of respondent give 1st Rank and no anyone no. of respondent gives 7thrank of the premium of vehicle insurance

296

59 cash less benefit

1 2 3 4 5 6 7 blank totalNo. of respondent

21 25 28 45 30 15 1 135 300

% 7 8.33 9.33 15 10 5 0.33 45 100

7 8.33

9.33

15

105

0.330000000000002

45

cash less benefit

1234567blank

Interpretation:

Above chart show that the % of people are considered cash less benefit as a factor while buying vehicle insurance. Out of 100% ,7% people give first rank to cash less benefit. Out of 100% ,0.33 people give seven rank to cash less benefit As per our research ,we can say that maximum no. of people give priority to cash less benefit as a factor.

297

60 Age coverage

1 2 3 4 5 6 7 blank totalNo. of respondent

15 22 21 33 43 28 3 135 300

% 5 7.33 7 11 14.33 9.33 1 45 100

5 7.33 7

11

14.339.33

1

45

age covrager

1234567blank

Interpretation:

The above chart show that how far people considered Age coverage as a factor while buying health insurance. As per our research, out of 100%,5% people give first priority to age coverage. out of 100%,1% people give seven rank to age coverage. As per our research, there is no much more difference between people giving first and last priority to age coverage

298

61 family coverage

1 2 3 4 5 6 7 blank TotalNo. of respondent

39 32 30 15 31 27 1 135 300

% 13 10.67 10 5 10.33 9 0.33 45 100

13

10.67

10

510.339

0.33000000000000

2

45

family coverage

1234567blank

Interpretation:

The above chart show that the % of people giving different priority to family coverage. As per our research ,out of 100%,13% people give first rank to the family coverage. Out of 100%,0.33% people give seven rank to the family coverage. In this maximum people give 2nd & 5th rank factor s a family coverage.

299

62 company

1 2 3 4 5 6 7 Blank totalNo. of respondent

24 29 23 20 25 36 7 136 300

% 8 9.67 7.67 6.67 8.33 12 2.33 45.33 100

8 9.67

7.67

6.67

8.3312

2.33

45.33

company

1234567

Interpretation:

As per our relation maximum no. of people have given 6th rank which shows less important company as a factor while buying health insurance As per our research ,out of 100%,8% people give first rank to the company out of 100%,2 .33people give seven rank to the company

300

63 speed claim settlement

1 2 3 4 5 6 7 blank totalNo. of respondent

21 23 35 18 18 44 6 135 300

% 7 7.67 11.67 6 6 14.67 2 45 100

7 7.67

11.67

6

614.672

45

speed claim sattlement

1234567blank

Interpretation:

The above chart shows that how far people considered speed of claim settlement as a factor while buying vehicle insurance As per our research, maximum no. of people rank 6th rank which shows speed of claim settlement is less important for them. As per our research ,out of 100%,7% people give first rank to the speed of claim settlement. out of 100%,2% people give seven rank to the speed of claim settlement.

301

64 others

1 2 3 4 5 6 7 blank totalNo. of respondent

3 3 - 2 7 6 144 135 300

% 1 1 - 0.67 2.33 2 48 45 100

1 1 0.670000000000005 2.332

48

45

others

1234567

Interpretation:

Above chart show that how far people considered others benefit as factor while buying vehicle insurance. Out of 100%,1% people give first rank to the others as a factor. Out of 100%,48% people give seven rank to the others as a factor. Maximum no. of people give 7thrank to the others. This means majority of people considered above mentioned factor rather than others.

302

65 how much premium you pay

<2000 2000-5000

5001-8000

>8000 Blank total

No. of respondent

77 49 27 11 136 300

% 25.67 16.33 9 3.67 45.33 100

25.67

16.33

9

3.67

45.33

how much pre.you pay

<20002001-50005001-8000>8000

Interpretation:

Above chart show that how far people considered others benefit as factor while buying vehicle insurance.Out of 100%, 25.67% people give first rank to the others as a factor. Out of 100%,3.67% people give seven rank to the others as a factor. Maximum no. of people give premium more then 8000. Which means majority of people considered above mentioned factor rather than others.

303

66 satisfied with services

yes no blank totalNo. of respondent

160 5 135 300

% 53.33 1.67 45 100

160

5

135

satisfide with services

yesno3rd Qtr

Interpretation:

Here ,we have segmented our total sample size according to whether they are satisfied with services given by health insurance or not. As per our research out of 100% ,50.33% people are satisfied with services given by vehicle insurance. As per our research out of 100% ,1.67% people are not satisfied with services given by vehicle insurance. So ,we can say that maximum no. of people satisfied with services given by vehicle insurance.

304

67 want to change your ins. Company

yes no blank totalNo. of respondent

21 142 142 300

% 7 47.33 47.33 100

7

47.33

45.67

change your ins.company?

yesnoblank4th Qtr

Interpretation:

Here ,we segmented our total sample size according to whether they want to change their company or not. As per our research out of 100%, 7% people want to change their insurance company. As per our research out of 100%, 47.33% people not want to change their insurance company. We can see from the above chart maximum no. of people loyal towards their insurance company.

305

68 if yes than why?

High premium

Poor cash less

Poor services

others blank total

No. of respondent

9 3 7 - 281 300

% 3 1 2.33 - 93.67 100

31 2.33

93.67

if yes , then why?

high pre.poor cash lesspoor servicesothersblank

Interpretation:

Here we segmented our total sample size of changing in health insurance in this chart there are so many reasons High premium , poor cash less & service , less dieses & other reasons consider . In our sample size 300 respondent maximum reasons is poor service in the vehicle insurance it is 3%. In this 300 respondent out of 100 3% no. of respondent change the vehicle insurance co. Bcz high premium & .0.67% no. of respondent no change in insurance com. Bcz they are loyal customers.

306

6.2 Cross Tabulation Analysis

6.2.1. Income and payment of INS premium

A. Health ins.:

IncomePay.Of prem.

<20000 20000-30000

30000-40000

>40000 Total

<2000 55 23 3 3 842001-5000 26 54 15 4 995001-8000 6 16 13 11 46>8000 0 8 4 16 28total 87 101 35 34 257

<2000 2001-5000 5001-8000 >80000

10

20

30

40

50

60 55

26

6

0

23

54

16

83

15 13

43 4

1116

income & payment of premium

<2000020000-3000030000-40000>40000

income

p.o.

p

307

Interpretation:

From the above chart we can show that Relation between health ins. Premium and payment of premium. In this diagram x axes shows that income of customers and Y axes shows that Number of payment 0f premium.

In this health insurance Maximum people’s income are 20000 to 30000. Than total 87 people’s income are less than 20000. And 35 people’s incomes are between 30000 to 40000. Also 34 people’s incomes are more than 40000.

Here total 55 people are pay premium of health insurance less than 2000 rs of health insurance whose income are less than 20000. Total 23 people’s incomes are between 20000 to 30000. And 3 people’s income are more than 40000 whose pay premium less than 2000rs.

Here total 99 people’s pay premium amount between 2001 to 5000. And in this people’s maximum people’s income are 20000 to 30000. In this less number of people’s income are more than 40000.

Here total 28 people’s pay premium more than 8000 rs. In this no any one people’s income are less than 2000rs. Here total 8 people’s incomes are between 20000 to 30000 whose pay more than 8000 rs premium of health insurance.

Total 257 people’s buy Health insurance. In this total 84 people’s pay premium less than 2000rs. Total 99 people’s pay premium 2001 to 5000 rs. Also 46 people’s pay more than 5000rs. But here less number of 28 people’s pay premium more than 8000.

308

B. Fire ins.:

IncomePay.Of prem.

<20000 20000-30000

30000-40000

>40000 Total

<2000 5 0 0 0 52001-5000 1 5 1 4 115001-8000 0 2 1 2 5>8000 0 0 0 4 4total 6 7 2 10 25

<2000 2001-5000 5001-8000 >80000

1

2

3

4

5

6

income & payment of premium

<2000020000-3000030000-40000>40000

income

p.o.

p

309

Interpretation:

From the above chart we can show that Relation between fire ins. Premium and payment of premium. In this diagram x axes shows that income of customers and Y axes shows that Number of payment 0f premium.

In this fire insurance Maximum people’s income are more than 40000. Than total 6 people’s income are less than 20000. And 2 people’s incomes are between 30000 to 40000.

Here total 5 people’s are pay premium of fire insurance less than 2000 rs whose income are less than 20000. In this fire insurance no any one people’s pay premium less than 2000rs.

Here total 11 people’s pay premium amount between 2001 to 5000rs. And in this people’s maximum people’s income are 20000 to 30000. In this less number of people’s income are more than 20000.

Here total 4 people’s pay premium more than 8000 rs. In this no all people’s income are more than 40000 whose pay premium more than 8000 rs. Here lower level’s people’s not pay premium more than 8000.

310

C.Theft ins.:

IncomePayOf prem.

<20000 20000-30000

30000-40000

>40000 Total

<2000 3 0 0 1 42001-5000 4 6 0 3 75001-8000 0 0 0 2 8>8000 9 0 0 3 3Total 7 6 0 9 22

<2000 2001-5000 5001-8000 >80000

1

2

3

4

5

6

7

3

4

0 00 0

6

0

1

3

2

3

income & payment of premium

<2000020000-3000030000-40000>40000

income

p.o.

p

311

Interpretation:

From the above chart we can show that Relation between theft ins. Premium and payment of premium. In this diagram x axes shows that income of customers and Y axes shows that Number of payment 0f premium.

In this Theft insurance Maximum people’s income are more than 40000 . Than total 7 people’s income are less than 20000. And no any people’s incomes are between 30000 to 40000. Also 9 people’s incomes are more than 40000.

Here total 4 people are pay premium of Theft insurance less than 2000 rs in this maximum people’s whose income are less than 20000. Upper level people’s pay premium always more than 5000 and more than 8000.in this maximum 8 people’s pay premium 5001 to 8000 rs.

Total 22 people’s buy theft insurance. In this total 4 people’s pay premium less than 2000rs. Total 7 people’s pay premium 2001 to 5000 rs. Also 8 people’s pay more than 5000rs. But here less number of people’s pay premium more than 8000.

312

D. Accident ins.:

IncomePay.Of prem.

<20000 20000-30000

30000-40000

>40000 Total

<2000 14 21 4 5 442001-5000 16 31 9 5 615001-8000 3 4 4 3 14>8000 0 2 2 6 10total 33 58 19 19 129

<2000 2001-5000 5001-8000 >80000

5

10

15

20

25

30

35

1416

30

21

31

42

4

9

42

5 53

6

income & payment of premium

<2000020000-3000030000-40000>40000

income

p.o.

p

313

Interpretation:

From the above chart we can show that Relation between accident ins. Premium and payment of premium. In this diagram x axes shows that income of customers and Y axes shows that Number of payment 0f premium.

In this Accident insurance Maximum 58 people’s income are 20000 to 30000. Than total 33 people’s income are less than 20000. And 19 people’s incomes are between 30000 to 40000. Also 19 people’s incomes are more than 40000.

Here total 14 people are pay premium of Accident insurance less than 2000 rs whose income are less than 20000. Total 21 people’s incomes are between 20000 to 30000. And 5 people’s income are more than 40000 whose pay premium less than 2000rs.

Here maximum 61 people’s pay premium amount between 2001 to 5000rs. And in this people’s maximum 31 people’s income are 20000 to 30000. In this less number of people’s income are more than 40000.

Here total 10 people’s pay premium more than 8000 rs. In this no anyone people’s income are less than 2000rs. Here total 2 people’s incomes are between 20000 to 30000 whose pay more than 8000 rs premium of Accident insurance.

Total 129 people’s buy Accident insurance. In this total 44 people’s pay premium less than 2000rs. Total 61 people’s pay premium 2001 to 5000 rs. Also 14 people’s pay more than 5000rs. But here less number of people’s pay premium more than 8000.

314

E. Vehicle ins.:

IncomePay. Of prem.

<20000 20000-30000

30000-40000

>40000 Total

<2000 31 29 5 11 762001-5000 9 22 11 7 495001-8000 2 9 11 5 27>8000 0 4 0 8 12total 42 64 27 31 164

<2000 2001-5000 5001-8000 >80000

5

10

15

20

25

30

3531

9

20

29

22

9

45

11 11

0

11

75

8

income & payment of premium

<2000020000-3000030000-40000>40000

income

p.op

315

Interpretation:

From the above chart we can show that Relation between vehicle ins. Premium and payment of premium. In this diagram x axes shows that income of customers and Y axes shows that Number of payment 0f premium.

In this vehicle insurance Maximum 64 people’s income are 20000 to 30000. Than total 42 people’s income are less than 20000. And 27 people’s incomes are between 30000 to 40000. Also 31 people’s incomes are more than 40000.

Here total 31 people are pay premium of Vehicle insurance less than 2000 rs whose income are less than 20000. Total 29 people’s incomes are between 20000 to 30000. And 11 people’s income are more than 40000 whose pay premium less than 2000rs.

Here total 49 people’s pay premium amount between 2001 to 5000. And in this people’s maximum people’s income are 20000 to 30000. In this less number of people’s income are 30000 to 40000.

Here total 12 people’s pay premium more than 8000 rs. In this no anyone people’s income are less than 20000. Here total 4 people’s incomes are between 20000 to 30000 whose pay more than 8000 rs premium of vehicle insurance.

Total 164 people’s buy Vehicle insurance. In this total 76 people’s pay premium less than 2000rs. Total 49 people’s pay premium 2001 to 5000 rs. Also 27 people’s pay more than 5000rs. But here less number of 12 people’s pay premium more than 8000.

316

6.2.2 Income and factors of INS.

A: Health insurances:

1. Income & premium :

incomerank

<20000 20000-30000

30000-40000

>40000 total

1 17 16 5 5 432 14 23 14 5 563 20 28 8 10 664 27 14 5 6 525 9 15 3 5 326 0 5 0 3 87 1 0 0 0 1total 88 101 35 34 258

1 2 3 4 5 6 70

5

10

15

20

25

30

17

14

20

27

9

0 1

16

23

28

14 15

5

0

5

14

8

53

0 0

5 5

10

6 53

0

income & premium

<2000020000-3000030000-40000>40000

Ranks

Inco

me

317

Interpretation:

From the above chart we can show that Relation between health ins. Premium and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 3 rd rank to premium for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to premium for buying health ins.

There are total 43 people who give 1st rank to premium. Out of which 17 people income is less then 20000, 16 people income are 20000 to 30000. And 5 people income are 30000 to 40000. And also in this people’s income more than 40000.

There are 56 people who give 2nd rank to the premium out of which, 14 people’s income are less than 20000. And 23 people’s income are 20000 to 30000.and 5 people’s income are more then 20000.

There are total 52 people’s who give 4 th rank to the premium for buying health insurance out of which ,27 people’s income are less than 2oooo.14 people’s incomes are 20000 to 30000. 5 people’s incomes are 30000 to40000 and 6 people’s incomes are more then 40000.

There are total 52 people’s give 5th rank to the premium for buying health ins. Out of which 9 people’s income are less than 20000. Here total 258 people’s give important where buy heath insurance. In this total 88 people’s income are less than 20000rs and maximum 1o1 people’s income are 20000 to 30000.and less than pepole’s income are more than 40000rs.

318

2. Income& cash less benefit:

IncomeRank

<20000 20000-30000

30000-40000

>40000 Total

1 16 16 2 4 382 23 8 1 6 383 21 14 11 7 534 10 30 7 11 585 14 20 7 5 466 3 10 7 1 217 1 3 0 0 4total 102 101 35 34 272

1 2 3 4 5 6 70

5

10

15

20

25

30

35

16

2321

10

14

31

16

8

14

30

20

10

32 1

11

7 7 7

0

46 7

11

5

1 0

income & cash less benefit

<2000020000-3000030000-40000>40000

income

cash

less

319

Interpretation:

From the above chart we can show that Relation between cash less benefit and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers.

Form the above chart we can say that maximum people give 4th rank to cash less benefit for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to cash less benefit for buying health ins.

There are total 38 people who give 1st rank to . Out of which 16 people income are <20000, 16 people income are 20000 to 30000. And 2 people income are 30000 to 40000. And also in this people’s income more than 40000.

There are 38 people who give 2nd rank . Out of which, 23 people’s income are less than 20000. And 8 people’s income are 20000 to 30000.and 7 people’s income are more then 20000.

There are total 58 people’s who give 4 th rank to the premium for buying health insurance out of which ,3o people’s income are 20000 to 30000.In this maximum people’s incomes are less than 20000 and 1o1 people’s income’s are 20000 to30000 and 34 people’s income are more then 40000.

There are total 46 people’s give 5th rank. for buying health ins. Out of which 14 people’s income are less than 20000.. Here total 272 people’s give important where buy health insurance. In this total 102 people’s income are less than 20000rs and maximum 1o1 people’s income are 20000 to 30000.and less than 34 people’s income are more than 40000rs.

320

3. Income& Age coverage:

IncomeRank

<20000 20000-30000

30000-40000

>40000 Total

1 6 9 1 1 172 12 18 5 6 413 19 22 6 6 534 15 21 7 4 475 19 24 7 12 626 13 7 7 4 317 4 0 2 1 7total 88 101 35 34 258

1 2 3 4 5 6 70

5

10

15

20

25

30

6

12

19

15

19

13

4

9

18

22 21

24

7

01

5 6 7 7 7

21

6 64

12

4

1

Income & age coverage

<2000020000-3000030000-40000>40000

income

age

cov.

321

Interpretation:

From the above chart we can show that Relation between age coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 5th rank to age coverage for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to premium for buying health ins.

There are total 17 people who give 1st rank to age coverage. Out of which 6 people income are <20000, 9 people income are 20000 to 30000. And only one person’s income more than 40000.

There are 41people who give 2nd rank to the age coverage out of which, 88 people’s income are less than 20000. And 101 people’s income are 20000 to 30000.and 34 people’s income are more then 20000.

There are total 47 people’s who give 4th rank to age coverage the for buying health insurance out of which ,15 people’s income are less than 2oooo.21 people’s incomes are 20000 to 30000. 7 people’s incomes are 30000 to40000 and 4 people’s incomes are more then 40000.

There are 62people’s give 5th rank to the age coverage for buying health ins. Out of which 24 people’s income are 20000 to 30000. Here total 258 people’s give important where buy health insurance. In this total 88 people’s income are less than 20000rs and maximum 1o1 people’s income are 20000 to 30000.and less than 34 people’s income are more than 40000rs.

322

4. Income& family coverage:

IncomeRank

<20000 20000-30000

30000-40000

>40000 Total

1 28 49 16 20 1132 15 21 7 6 493 7 9 2 3 214 8 6 3 4 215 11 9 3 0 236 16 7 1 1 257 3 0 3 0 6total 88 101 35 34 258

1 2 3 4 5 6 70

10

20

30

40

50

60

28

15

7 811

16

3

49

21

96

9 7

0

16

72 3 3 1 3

20

63 4

0 1 0

income & family coverage

<2000020000-3000030000-40000>40000

income

fam

ily co

v.

323

Interpretation:

From the above chart we can show that Relation between family coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 1th rank to family coverage for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to family coverage for buying health ins.

There are total 113 people who give 1st rank to Family coverage. Out of which 88 people income are <20000, 101 people income are 20000 to 30000. And 35 people income are 30000 to 40000. And also in this 20 people’s income more than 40000.

There are 49 people who give 2nd rank to the family coverage out of which, 15 people’s income are less than 20000. And 21 people’s income are 20000 to 30000.and 6 people’s income are more then 20000.

In this health insurances comparison of income and family coverage prove that maximum people’s assure the health ins . all those income are 20000 to 30000. In this total 88 people’s income are less than 20000. And also 1o1 people’s income are 20000 to 30000. Also in this people’s income are more than 40000 it is 34 people’s.

There are total 23 people’s give 5th rank. for buying health ins. Out of which 11people’s income are less than 20000.. Here total 258 people’s give important to where buy health insurance. In this total 88 people’s income are less than 20000rs and maximum 1o1 people’s income are 20000 to 30000.and less than 34 people’s income are more than 40000rs

324

5. Income& company:

IncomeRank

<20000 20000-30000

30000-40000

>40000 Total

1 13 4 5 3 252 15 21 3 5 443 7 16 2 4 294 14 13 6 5 385 16 22 9 6 536 18 24 10 11 637 5 1 0 0 6total 88 101 35 34 258

1 2 3 4 5 6 70

5

10

15

20

25

30

1315

7

1416

18

54

21

16

13

2224

1

53 2

6

9 10

0

35 4 5 6

11

0

income & company

<2000020000-3000030000-40000>40000

income

com

pany

325

Interpretation:

From the above chart we can show that Relation between health ins. company and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 6th rank to company for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 7th rank to company for buying health ins.there income are more then 20000.

There are total 25 people who give 1st rank to company Out of which 88 people income are <20000, 101 people income are 20000 to 30000. And 35 people income are 30000 to 40000. And also in this 34 people’s income more than 40000.

There are44 people who give 2nd rank to the company out of which, 88 people’s income are less than 20000. And 101 people’s income are 20000 to 30000.and 34 people’s income are more then 20000.

There are total 38 people’s who give 4th rank to company the for buying health insurance out of which ,88 people’s income are less than 2oooo.and 34 people’s are income more than 40000.

1o1 people’s incomes are 20000 to 30000. 35 people’s incomes are 30000 to40000 and 34 people’s incomes are more than 40000.6 people’s are give 7th rank in company factors so company is not important factors in this health ins. All those people.

There are total 53 people’s give 5th rank to the company for buying health ins. Out Out of which 16 people’s income are less than 20000.. Here total 258 people’s give important to where buy health insurance. In this total 88 people’s income are less than 20000rs and maximum 1o1 people’s income are 20000 to 30000.and less than 34 people’s income are more than 40000rs

326

6. Income& speed claim settlement

IncomeRank

<20000 20000-30000

30000-40000

>40000 Total

1 9 7 3 1 202 5 10 3 6 243 11 12 6 5 344 11 16 5 4 365 7 9 6 4 266 36 44 9 14 1037 9 3 3 0 15total 88 101 35 34 258

1 2 3 4 5 6 70

5

10

15

20

25

30

35

40

45

50

95

11 117

36

97

1012

16

9

44

33 36 5 6

9

31

6 5 4 4

14

0

income & speed claim satt.

<2000020000-3000030000-40000>40000

income

s.c.s.

327

Interpretation:

From the above chart we can show that Relation between speed claim settlement and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

In buying health ins. There are so many factors important. But Form the above chart we can say that maximum people give 6th rank to speed claim settlement for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to speed clime settle met for buying health ins.

There are total 20 people who give 1st rank to speed claim settlement. Out of which 88 people income are <20000, 101 people income are 20000 to 30000. And 35 people income are 30000 to 40000. And also in this 34 people’s income more than 40000.

There are24 people who give 2nd rank to the s.c. settlement out of which, 88 people’s income are less than 20000. And 101 people’s income are 20000 to 30000.and 34 people’s income are more then 20000.

There are total 36people’s who give 4th rank to s.c . Settlement the for buying health insurance out of which, 88 people’s income are less than 2oooo.

1o1 people’s incomes are 20000 to 30000. 1o1 people’s incomes are 30000 to40000 and 6 people’s incomes are more then 40000.

There are total 103 people’s give 6th rank to the s.c. settlement for buying health ins. Out of which 34 people’s income are 20000 to 30000.

There are total 26 people’s give 5th rank to the company for buying health ins. Out of which 7 people’s income are less than 20000.. Here total 258 people’s give important to where buy health insurance. In this total 88 people’s income are less than 20000rs and maximum 1o1 people’s income are 20000 to 30000.and less than 34 people’s income are more than 40000rs

328

7. Income& others:

IncomeRank

<20000 20000-30000

30000-40000

>40000 Total

1 1 0 2 0 32 4 0 1 0 53 3 2 1 0 64 1 0 16 0 175 12 2 0 1 156 2 3 1 0 67 65 94 28 33 220total 88 101 49 34 272

1 2 3 4 5 6 70

10

20

30

40

50

60

70

80

90

100

1 4 3 1

12

2

65

0 0 2 0 2 3

94

2 1 1

16

0 1

28

0 0 0 0 1 0

33

income & others

<2000020000-3000030000-40000>40000

income

othe

rs

329

Interpretation:

From the above chart we can show that Relation between other factors and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

In buying health ins. There are so many factors important. But Form the above chart we can say that maximum people give 7th rank to others factors for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 1st rank to others factors for buying health ins.

There are total 3 people who give 1st rank to . Out of which 88 people income are <20000, 101 people income are 20000 to 30000. And 35 people income are 30000 to 40000. And also in this 34 people’s income more than 40000.

There are5 people who give 2nd rank to the others factors out of which, 88 people’s income are less than 20000. And 101 people’s income are 20000 to 30000.and 34 people’s income are more then 20000.

There are total 17 people’s who give 4th rank to others factors the for buying health insurance out of which, 88 people’s income are less than 2oooo.1o1 people’s incomes are 20000 to 30000. 1o1 people’s incomes are 30000 to40000 and 6 people’s incomes are more then 40000.

There are total 220 people’s give 7th rank to the for buying health ins. Out of which 101 people’s income are 20000 to 30000. . Here total 272 people’s give important to where buy health insurance. In this total 88 people’s income are less than 20000rs and maximum 1o1 people’s income are 20000 to 30000.and less than 34 people’s income are more than 40000rs

330

B: Fire Insurances:

1. Income & premium:

IncomeRank

<20000 20000-30000

30000-40000

>40000 Total

1 0 1 0 4 52 1 5 1 3 103 0 3 0 0 34 1 0 1 1 35 0 0 0 2 26 0 1 0 0 17 0 0 0 0 0total 2 10 2 10 24

1 2 3 4 5 6 70

1

2

3

4

5

6

0

1

0

1

0 0 0

1

5

3

0 0

1

00

1

0

1

0 0 0

4

3

0

1

2

0 0

income & premium

<2000020000-3000030000-40000>40000

income

prem

ium

331

Interpretation:

From the above chart we can show that Relation between fire ins. Premium and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 2nd rank to premium for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to premium for buying fire ins.

In this there are 5 people’s give 1st rank .10 people’s give 2nd rank and 3rd and 4th

rank to fire insurance premium. There are total 2 people’s give 5th rank to the premium for buying fire ins. Out of which one people’s income are less than 20000. Here total 24 people’s give important where buy fire insurance. In this total 2 people’s income are less than 20000rs and maximum 10 people’s income are 20000 to 30000.and less than people’s income are more than 40000rs.

332

2. Income & cash less benefit:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 1 0 2 32 0 0 0 0 03 0 5 1 0 64 1 2 0 6 95 1 2 1 2 66 0 0 0 0 07 0 0 0 0 0total 2 10 2 10 24

1 2 3 4 5 6 70

1

2

3

4

5

6

0

1

0

1

0 0 0

1

5

3

0 0

1

00

1

0

1

0 0 0

4

3

0

1

2

0 0

income & cash less benefits

<2000020000-3000030000-40000>40000

income

c.l.b

333

Interpretation:

From the above chart we can show that Relation between cash less benefit and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers.

Form the above chart we can say that maximum people give 4th rank to cash less benefit for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to cash less benefit for buying fire ins.

There are total 3 people who give 1st rank to . Out of which no anyone people incomes are <20000, 1 people income are 20000 to 30000. And 2 people income are. More than 40000.

.There are total 9 people’s who give 4th rank to the cash less benefit for buying fire insurance out of which ,1people’s income are 20000 to 30000.In this maximum people’s incomes are 20000 to30000 and 6 people’s income are more then 40000.

There are total 6 people’s give 5th rank. for buying fire ins. Out of which one people’s income are less than 20000.. Here total 24 people’s give important where buy fire insurance. In this total 2 people’s income are less than 20000rs and maximum 1o people’s income are 20000 to 30000.and less than 10people’s income are more than 40000rs.

334

3. Income & age coverage:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 0 2 1 32 0 2 0 3 53 2 0 0 3 54 0 2 0 0 25 0 5 0 2 76 0 1 0 1 27 0 0 0 0 0total 2 10 2 9 24

1 2 3 4 5 6 70

1

2

3

4

5

6

0 0

2

0 0 0 00

2

0

2

5

1

0

2

0 0 0 0 0 0

1

3 3

0

2

1

0

income & age coverage

<2000020000-3000030000-40000>40000

income

age

cove

rage

335

Interpretation:

From the above chart we can show that Relation between age coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 5th rank to age coverage for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th rank to age coverage for buying fire ins.

There are total 3 people who give 1st rank to age coverage. Out of which no any people income are <20000, And only one person’s income more than 40000.There are 5 people who give 2nd rank to the age coverage out of which, no any people’s income are less than 20000. And 2 people’s income are 20000 to 30000.and 3 people’s income are more then 20000.

There are total 2 people’s who give 4th rank to age coverage the for buying fire insurance out of which Here all those pepole’s income aren 20000 to 30000.There are 7 people’s give 5th rank to the age coverage for buying fire ins. Out of which 5 people’s income are 20000 to 30000. Here total 24 people’s give important where buy health insurance. In this total 2 people’s income are less than 20000rs and maximum 1o people’s income are 20000 to 30000.and less than 9 people’s income are more than 40000rs.

336

4. Income & family coverage:

Incomerank

<20000 20000-30000

30000-40000

>40000 total

1 1 6 0 3 102 0 1 1 1 33 0 1 0 4 54 0 1 1 0 25 1 0 0 2 36 0 1 0 0 17 0 0 0 0 0total 2 10 2 10 24

1 2 3 4 5 6 70

1

2

3

4

5

6

7

1

0 0 0

1

0 0

6

1 1 1

0

1

00

1

0

1

0 0 0

3

1

4

0

2

0 0

income&family coverage

<2000020000-3000030000-40000>40000

income

fam

ily co

vera

ge

337

Interpretation:

From the above chart we can show that Relation between family coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 1th rank to family coverage for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to family coverage for buying fire ins.

There are total10 people who give 1st rank to Family coverage. Out of which one people income are <20000, 6 people income are 20000 to 30000. And no anyone people income are 30000 to 40000. And also in this 3 people’s income more than 40000.

There are 3 people who give 2nd rank to the family coverage out of which, no any people’s income are less than 20000. Those people’s are not buy fire insurance. And 21 people’s income are 20000 to 30000.and 6 people’s income are more then 20000.

In this fire insurances comparison of income and family coverage prove that maximum people’s assure the fire ins . All those income are 20000 to 30000. There are total 3 people’s give 5th rank. for buying fire ins. Out of which maximum people’s income are more than 40000.. Here total 24 people’s give important to where buy fire insurance. In this total 2 people’s income are less than 20000rs and maximum 10 people’s income are 20000 to 30000.and also 10 people’s income are more than 40000rs.

338

5. Income & company:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 0 2 1 32 0 2 0 3 53 2 0 0 3 54 0 2 0 0 25 0 5 0 2 76 0 1 0 1 27 0 0 0 0 0total 2 10 2 10 24

1 2 3 4 5 6 70

1

2

3

4

5

6

0 0

2

0 0 0 00

2

0

2

5

1

0

2

0 0 0 0 0 0

1

3 3

0

2

1

0

income&company

<2000020000-3000030000-40000>40000

income

com

pany

339

Interpretation:

From the above chart we can show that Relation between fire ins. company and income. In this diagram x axes shows that rank and Y axes shows that income are customers.

Form the above chart we can say that maximum people give 5th rank to company for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 7th rank to company for buying fire isothere income are more then 20000.

There are total 3 people who give 1st rank to company Out of which no anyone people income are <20000, and people income are 20000 to 30000. And 2 people income are 30000 to 40000. And also in this one people’s income more than 40000.

There are total 2 people’s who give 4th rank to company the for buying fire insurance out of which ,no any people’s income are less than 2oooo.and 3 people’s are income more than 40000..7people’s are give 5th rank in company factors so company is not important factors in this fire ins..

Here total 24 people’s give important to where buy fire insurance. In this total 2 people’s income are less than 20000rs and maximum 1o people’s income are 20000 to 30000.and less than 10 people’s income are more than 40000rs

340

6. Income & speed claim settlement

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 1 1 0 0 22 1 1 0 3 53 0 1 1 0 44 0 5 0 3 75 0 2 1 2 56 0 0 0 0 07 0 0 0 0 0total 2 10 2 10 24

1 2 3 4 5 6 70

1

2

3

4

5

6

1 1

0 0 0 0 0

1 1 1

5

2

0 00 0

1

0

1

0 00

3

2

3

2

0 0

income&speed claim sattlement

<2000020000-3000030000-40000>40000

income

s.c.s

341

Interpretation:

From the above chart we can show that Relation between speed claim settlement and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

In buying health INS. There are so many factors important. But Form the above chart we can say that maximum people give 4th rank to speed claim settlement for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to speed clime settlement for buying fire ins.

There are total 2 people who give 1st rank to speed claim settlement. Out of which There are 5 people who give 2nd rank to the s.c. settlement There are total 7 people’s who give 4th rank to s.c . Settlement the for buying fire insurance out of which, 2 people’s income are less than 2oooo.

There are total 5 people’s give 5th rank to the company for buying fire ins. Out of which noany people’s income are less than 20000.. Here total 24 people’s give important to where buy fire insurance. In this total 2 people’s income are less than 20000rs and maximum 1o people’s income are 20000 to 30000.and less than 10 people’s income are more than 40000rs

342

7. Income & others:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 1 0 0 12 0 1 0 0 13 0 0 0 1 14 0 0 0 0 05 0 1 0 0 16 2 7 2 9 207 0 0 0 0 0total 2 10 2 10 24

1 2 3 4 5 6 70

1

2

3

4

5

6

7

8

9

10

0 0 0 0 0

2

0

1 1

0 0

1

7

00 0 0 0 0

2

00 0

1

0 0

9

0

income&others

<2000020000-3000030000-40000>40000

income

othe

rs

343

Interpretation:

From the above chart we can show that Relation between other factors and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

In buying fire ins. There are so many factors important. But Form the above chart we can say that maximum people give 7th rank to others factors for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 1st rank to others factors for buying fire ins.

There are total 1 people who give 1st rank to . Out of which no anyone people income are <20000, 1 people income are 20000 to 30000. And noany one people income are 30000 to 40000. And people’s income more than 40000.

There are total 20 people’s who give 6th rank to others factors the for buying fire insurance out of which, 2 people’s income are less than 2oooo.1 people’s incomes are 20000 to 30000. There are total no anyone people’s give 7th rank to the for buying fire ins. Out of which 2 people’s income are 20000 to 30000. . Here total 24 people’s give important to where buy fire insurance. In this total 2 people’s income are less than 20000rs and maximum 1o people’s income are 20000 to 30000.and less than 10 people’s income are more than 40000rs

344

C. Theft Insurances:

1. Income & premium:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 1 1 0 1 32 2 2 0 2 63 1 0 0 2 34 1 0 0 2 35 1 0 0 2 36 1 3 0 0 47 0 0 0 0 0total 7 6 0 9 22

1 2 3 4 5 6 70

0.5

1

1.5

2

2.5

3

3.5

1

2

1 1 1 1

0

1

2

0 0 0

3

0

1

2 2 2 2

0 0

incme&premium

<2000020000-3000030000-40000>40000

income

prem

ium

345

Interpretation:

From the above chart we can show that Relation between Theft ins. Premium and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 2 rd rank to premium for buying Theft ins.out of which more people income are 20000 rs to 30000rs and no anyone people give 7th rank to premium for buying Theft ins.

There are total 3 people’s give 5th rank to the premium for buying theft ins. Out of which one people’s income are less than 20000. Here total 22 people’s give important where buy theft insurance. In this total 7 people’s income are less than 20000rs and maximum 6 people’s income are 20000 to 30000.and less than people’s income are more than 40000rs.In this no any people’s income are 30000 to 40000.no more important give theft insurance. In general insurance income theft insurance is week part.

346

2. Income & cash less benefit:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 1 1 0 1 32 1 3 0 1 53 1 1 0 1 34 4 0 0 4 85 0 1 0 1 26 0 0 0 1 17 0 0 0 0 0total 7 6 0 9 22

1 2 3 4 5 6 70

0.5

1

1.5

2

2.5

3

3.5

4

4.5

1 1 1

4

0 0 0

1

3

1

0

1

0 0

1 1 1

4

1 1

0

income&cash less benefits

<2000020000-3000030000-40000>40000

income

c.l.b

347

Interpretation:

From the above chart we can show that Relation between cash less benefit and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers.

Form the above chart we can say that maximum people give 4th rank to cash less benefit for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to cash less benefit for buying health ins.

There are total 38 people who give 1st rank to . Out of which 16 people income are <20000, 16 people income are 20000 to 30000. And 2 people income are 30000 to 40000. And also in this people’s income more than 40000.

There are 38 people who give 2nd rank . Out of which, 23 people’s income are less than 20000. And 8 people’s income are 20000 to 30000.and 7 people’s income are more then 20000.

There are total 58 people’s who give 4 th rank to the premium for buying health insurance out of which ,3o people’s income are 20000 to 30000.In this maximum people’s incomes are less than 20000 and 1o1 people’s income’s are 20000 to30000 and 34 people’s income are more then 40000.

There are total 46 people’s give 5th rank. for buying health ins. Out of which 14 people’s income are less than 20000.. Here total 272 people’s give important where buy health insurance. In this total 102 people’s income are less than 20000rs and maximum 1o1 people’s income are 20000 to 30000.and less than 34 people’s income are more than 40000rs.

348

3. Income & age coverage:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 1 0 0 0 12 2 0 0 1 33 1 1 0 1 34 0 1 0 1 25 1 3 0 2 66 1 1 0 4 67 0 0 0 0 0total 6 6 0 9 21

1 2 3 4 5 6 70

0.5

1

1.5

2

2.5

3

3.5

4

4.5

1

2

1

0

1 1

00 0

1 1

3

1

00

1 1 1

2

4

0

income&age coverage

<2000020000-3000030000-40000>40000

income

age

civer

age

349

Interpretation:

From the above chart we can show that Relation between age coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 5th rank to age coverage for buying health ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to premium for buying theft ins.

There are total 1 people who give 1st rank to age coverage. Out of which all people income are <20000, There are 3 people who give 2nd rank to the age coverage out of which, 2 people’s income are less than 20000.

There are total 2 people’s who give 4th rank to age coverage the for buying theft insurance out of which ,no any one people’s income are less than 2oooo.1 people’s incomes are 20000 to 30000.

There are 6 people’s give 5th rank to the age coverage for buying theft ins. Out of which no any one people’s income are 20000 to 30000. Here total 258 people’s give important where buy theft insurance. In this total 6 people’s income are less than 20000rs and maximum

350

4. Income & family coverage:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 3 0 0 3 62 2 1 0 1 43 0 1 0 1 24 0 3 0 0 35 2 1 0 1 46 0 0 0 3 37 0 0 0 0 0total 7 6 00 9 22

1 2 3 4 5 6 70

0.5

1

1.5

2

2.5

3

3.5

3

2

0 0

2

0 00

1 1

3

1

0 0

3

1 1

0

1

3

income&family coverage

<2000020000-3000030000-40000>40000

income

fam

ily co

vera

ge

351

Interpretation:

From the above chart we can show that Relation between family coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 1th rank to family coverage for buying theft ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to family coverage for buying theft ins.

There are total 6people who give 1st rank to Family coverage. Out of which one people income are <20000, 3 people income are 20000 to 30000.

There are 4 people who give 2nd rank to the family coverage out of which, 2 people’s income are less than 20000. Those people’s are not buy theft insurance. And 21 people’s income are 20000 to 30000.and 6 people’s income are more then 20000.

In this theft insurances comparison of income and family coverage prove that maximum people’s assure the theft ins . All those income are 20000 to 30000. There are total 4 people’s give 5th rank. for buying theft ins. Out of which maximum people’s income are more than 40000.. Here total 22 people’s give important to where buy theft insurance. In this total 2 people’s income are less than 20000rs and maximum 10 people’s income are 20000 to 30000.and also 10 people’s income are more than 40000rs.

352

5. Income & company:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 1 3 0 3 72 0 0 0 3 33 3 0 0 1 44 0 2 0 1 35 3 1 0 1 56 0 0 0 0 07 0 0 0 0 0total 7 6 0 9 22

1 2 3 4 5 6 70

0.5

1

1.5

2

2.5

3

3.5

1

0

3

0

3

0 0

3

0 0

2

1

0 0

3 3

1 1 1

0 0

income&company

<2000020000-3000030000-40000>40000

income

com

pany

353

Interpretation:

From the above chart we can show that Relation between family coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 2th rank to family coverage for buying theft ins. out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to family coverage for buying theft ins.

There are total 7people who give 1st rank to Family coverage. Out of which one people income are <20000, 3 people income are 20000 to 30000. And no anyone people income are 30000 to 40000. And also in this 3 people’s income more than 40000.

There are 3 people who give 2nd rank to the family coverage out of which, no any people’s income are less than 20000. Those people’s are not buy theft insurance.

In this fire insurances comparison of income and family coverage prove that maximum people’s assure the theft ins . All those income are 20000 to 30000. There are total 5 people’s give 5th rank. for buying theft ins. Out of which maximum people’s income are more than 40000.. Here total 22 people’s give important to where buy theft insurance. In this total 7 people’s income are less than 20000rs and maximum 6 people’s income are 20000 to 30000.and also 9 people’s income are more than 40000rs.

354

6. Income & speed claim settlement

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 1 0 1 22 0 0 0 1 13 0 3 0 2 54 2 0 0 1 35 0 0 0 2 26 5 2 0 1 87 0 0 0 1 1total 7 6 0 9 22

1 2 3 4 5 6 70

1

2

3

4

5

6

0 0 0

2

0

5

0

1

0

3

0 0

2

0

1 1

2

1

2

1 1

income&speed claim sattlement

<2000020000-3000030000-40000>40000

income

s.c.s

355

Interpretation:

From the above chart we can show that Relation between speed claim settlement and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

In buying theft INS. There are so many factors important. But Form the above chart we can say that maximum people give 6 th rank to speed claim settlement for buying theft ins. out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to speed clime settlement for buying fire ins.

There are total 2 people who give 1st rank to speed claim settlement. There are 1people who give 2nd rank to the s.c. settlement There are total 3 people’s who give 4th rank to s.c . Settlement the for buying theft insurance out of which, 2 people’s income are less than 2oooo.

There are total 2 people’s give 5th rank to the company for buying theft ins. Out of which no any people’s income are less than 20000.. Here total 22 people’s give important to where buy theft insurance. In this total 7 people’s income are less than 20000rs and maximum 6 people’s income are 20000 to 30000.and less than 9 people’s income are more than 40000rs

356

7. Income & others:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 0 0 0 02 0 0 0 1 13 0 0 0 0 04 0 0 0 0 05 0 0 0 0 06 0 0 0 0 07 7 6 0 8 21total 7 6 0 9 22

1 2 3 4 5 6 70

1

2

3

4

5

6

7

8

9

0 0 0 0 0 0

7

0 0 0 0 0 0

6

0

1

0 0 0 0

8

income&others

<2000020000-3000030000-40000>40000

income

othe

rs

357

Interpretation:

From the above chart we can show that Relation between other factors and income. In this diagram x axes shows that rank and Y axes shows that income are customers.

In buying theft ins. There are so many factors important. But Form the above chart we can say that maximum people give 7th rank to others factors for buying theft ins.out of which more people income are 20000 rs to 30000rs and minimum people give 1st rank to others factors for buying theft ins.

In this theft ins. No any one people income 30000 to 40000 and here no any one people give rank 1st, 3rd, 4th, 6th so in is prove that customer no more important other factors were buying insurance..

. Here total 22 people’s give important to where buy fire insurance. In this total 7 people’s income are less than 20000rs and maximum 6 people’s income are 20000 to 30000.and less than 9 people’s income are more than 40000rs

358

D. Accident Insurances:

1. Income & premium:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 8 15 2 4 292 5 10 10 3 283 7 13 3 4 274 5 8 2 4 195 7 8 1 3 196 0 3 1 1 57 1 1` 0 0 2total 33 58 19 19 129

1 2 3 4 5 60

2

4

6

8

10

12

14

16

8

5

7

5

7

0

15

10

13

8 8

32

10

32

1 1

43

4 43

1

income&premium

<2000020000-3000030000-40000>40000

income

prem

ium

359

Interpretation:

From the above chart we can show that Relation between accident ins. Premium and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers.

Form the above chart we can say that maximum people give 1st rank to premium for buying accident ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to premium for buying accident ins.

There are total 29 people who give 1st rank to premium. Out of which 8 people income is less than 20000, 15 people income are 20000 to 30000. And 2 people income are 30000 to 40000. And also in this people’s income more than 40000.

There are 28 people who give 2nd rank to the premium out of which, 5 people’s income are less than 20000. And 10 people’s income are 20000 to 30000.and 3 people’s income are more then 20000.

There are total 19 people’s who give 4th rank to the premium for buying accident insurance out of which , 5 people’s income are less than 2oooo.8 people’s incomes are 20000 to 30000. 8 people’s incomes are 30000 to40000 and 3 people’s incomes are more then 40000.

There are total 19 people’s give 5th rank to the premium for buying Accident ins. Out of which 7 people’s income are less than 20000. Here total 129 people’s give important where buy accident insurance. In this total 33 people’s income are less than 20000rs and maximum 58 people’s income are 20000 to 30000.and less than 19 pepole’s income are more than 40000rs

360

2. Income & cash less benefit:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 1 7 1 3 152 2 9 1 5 173 7 7 6 3 234 9 21 7 4 415 7 13 2 2 246 4 0 1 2 77 0 1 1 0 2total 33 58 19 19 129

1 2 3 4 5 6 70

5

10

15

20

25

12

79

7

4

0

79

7

21

13

011 1

67

21 1

35

34

2 20

income &cash less benefits

<2000020000-3000030000-40000>40000

income

c.l.b

361

Interpretation:

From the above chart we can show that Relation between cash less benefit and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers.

Form the above chart we can say that maximum people give 4th rank to cash less benefit for buying accident ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to cash less benefit for buying accident ins.

There are total 15 people who give 1st rank to. Out of which 1 people income are <20000, 7 people income are 20000 to 30000. And 1 people income are 30000 to 40000. And also in this people’s income more than 40000.

There are 17 people who give 2nd rank. Out of which, 2 people’s income are less than 20000. And 9 people’s income are 20000 to 30000.and 5 people’s income are more then 20000.

There are total 41 people’s who give 4th rank to the premium for buying accident insurance out of which ,3o people’s income are 20000 to 30000.In this maximum people’s incomes are less than 20000 and 58 people’s income’s are 20000 to30000 and 19 people’s income are more then 40000.

There are total 24 people’s give 5th rank. for buying accident ins. Out of which 7 people’s income are less than 20000.. Here total 129 people’s give important where buy accident insurance. In this total 33 people’s income are less than 20000rs and maximum 58 people’s income are 20000 to 30000.and less than 19 people’s income are more than 40000rs.

362

3. Income & age coverage:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 5 12 2 0 192 9 7 2 4 223 2 10 2 5 194 5 8 3 1 175 8 12 7 6 336 4 8 3 3 187 0 1 0 0 1total 33 58 19 19 129

1 2 3 4 5 6 70

2

4

6

8

10

12

14

5

9

2

5

8

4

0

12

7

10

8

12

8

12 2 2

3

7

3

00

45

1

6

3

0

income&age coverage

<2000020000-3000030000-40000>40000

income

age

cove

rage

363

Interpretation:

From the above chart we can show that Relation between age coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 5th rank to age coverage for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th rank to age coverage for buying accident ins.

There are total 19 people who give 1st rank to age coverage. Out of which 5 people income are <20000, And only one person’s income more than 40000.There are 22 people who give 2nd rank to the age coverage out of which, 9 people’s income are less than 20000. And 7 people’s income are 20000 to 30000.and 4 people’s income are more then 40000.

There are total 17 people’s who give 4th rank to age coverage the for buying accident insurance out of which Here all those people’s income aren 20000 to 30000.There are 33 people’s give 5th rank to the age coverage for buying fire ins. Out of which 8 people’s income are 20000 to 30000. Here total 129 people’s give important where buy accident insurance. In this total 33 people’s income are less than 20000rs and maximum 58 people’s income are 20000 to 30000.and less than 19 people’s income are more than 40000rs.

364

4. Income & family coverage:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 6 13 7 5 312 6 11 2 2 213 6 12 1 1 204 5 3 1 4 135 5 8 3 4 206 4 10 4 3 217 1 1 1 0 3total 33 38 19 19 129

1 2 3 4 5 6 70

2

4

6

8

10

12

14

6 6 65 5

4

1

13

1112

3

8

10

1

7

21 1

34

1

5

21

4 43

0

income&family coverage

<2000020000-3000030000-40000>40000

income

fam

ily co

vera

ge

365

Interpretation:

From the above chart we can show that Relation between family coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers.

Form the above chart we can say that maximum people give 1th rank to family coverage for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to family coverage for buying accident ins.

There are total 31 people who give 1st rank to Family coverage. Out of 6 people income are <20000, 13 people income are 20000 to 30000. And 7 people income are 30000 to 40000. And also in this 5 people’s income more than 40000.

There are 21 people who give 2nd rank to the family coverage out of which, 6 people’s income are less than 20000. And 12 people’s income are 20000 to 30000.and 1 people’s income are more then 20000.

In this accident insurances comparison of income and family coverage prove that maximum people’s assure the accident ins. All those income are 20000 to 30000. There are total 20 people’s give 5th rank. For buying fire ins. Out of which maximum people’s income are more than 40000. Here total 129 people’s give important to where buy accident insurance. In this total 33 people’s income are less than 20000rs and maximum 19 people’s income are 20000 to 30000.and also 19 people’s income are more than 40000rs.

366

5. Income & company:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 1 0 0 12 0 1 0 0 13 0 0 0 0 04 0 0 0 0 05 0 0 0 0 06 0 0 0 0 37 0 3 0 0 0total 0 5 0 0 5

1 2 3 4 5 6 70

0.5

1

1.5

2

2.5

3

3.5

1 1

0 0 0 0

3

income&company

<2000020000-3000030000-40000>40000

income

com

pany

367

Interpretation:

From the above chart we can show that Relation between health ins. company and income. In this diagram x axes shows that rank and Y axes shows that income are customers.

Form the above chart we can say that maximum people give 6th rank to company for buying accident ins.out of which more people income are 20000 rs to 30000rs and minimum people give 7th rank to company for buying accident ins.there income are more then 20000.

There are total 1 people who give 1st rank to company no one people income are <20000, 1 people income are 20000 to 30000. And 0 people income are 30000 to 40000. And also in this 0 people’s income more than 40000.

No one people’s incomes are 20000 to 30000. 5 people’s incomes are 30000 to40000 and no one people’s incomes are more than 40000.6 people’s are give 7 th

rank in company factors so company is not important factors in this accident ins. All those people.

There are total no one people’s give 5th rank to the company for buying accident ins. Out of which no one people’s income are less than 20000. Here total 5 people’s give important to where buy accident insurance. In this total 0 people’s income are less than 20000rs and maximum 5 people’s income are 20000 to 30000.and less than 0 people’s income are more than 40000rs

368

6. Income & speed claim settlement

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 0 0 0 02 0 1 0 0 13 0 0 0 0 04 0 0 0 0 05 0 0 0 0 06 0 0 0 0 07 0 0 0 0 0total 0 1 0 0 1

1 2 3 4 5 6 70

0.2

0.4

0.6

0.8

1

1.2

0

1

0 0 0 0 0

income &speed claim sattlement

<2000020000-3000030000-40000>40000

income

s.c.s

369

Interpretation:

From the above chart we can show that Relation between speed claim settlement and income. In this diagram x axes shows that rank and Y axes shows that income are customers.

In buying accident INS. There are so many factors important. But Form the above chart we can say that maximum people give 4th rank to speed claim settlement for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to speed clime settlement for buying fire ins.

There are total no one people who give 1st rank to speed claim settlement. There are 1 people who give 2nd rank to the s.c. settlement There are total no any one people’s who give 4th rank to s.c . Settlement the for buying accident insurance out of which, no any one people’s income are less than 20000

Here total 1 people’s give important to where buy accident insurance. In this total no any one people’s income are less than 20000rs and maximum 1 people’s income are 20000 to 30000.and less than 0 people’s income are more than 40000rs

370

7. Income & others:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 0 0 0 02 0 0 0 0 03 0 0 0 0 04 0 0 0 0 05 0 0 0 0 06 0 0 0 0 07 0 1 0 0 1total 0 1 0 0 1

1 2 3 4 5 6 70

0.2

0.4

0.6

0.8

1

1.2

0 0 0 0 0 0

1

income&others

<2000020000-3000030000-40000>40000

income

othe

rs

371

Interpretation:

From the above chart we can show that Relation between other factors and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

In buying accident ins. There are so many factors important. But Form the above chart we can say that maximum people give 7th rank to others factors for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give 1st rank to others factors for buying fire ins.

Here in this insurance no customer give important other factor where buying acc. Ins. It is prove that above chart

There are total no anyone people’s give 7th rank to the for buying fire ins. Out of which 1 people’s income are 20000 to 30000. . Here total 1 people’s give important to where buy fire insurance. In this total no one people’s income are less than 20000rs and maximum 1 people’s income are 20000 to 30000.and less than 0 people’s income are more than 40000rs

372

E. Vehicle Insurances:

1. Income & premium:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 10 11 15 7 332 4 11 6 8 293 4 13 11 5 334 7 11 9 7 345 6 5 1 4 166 6 6 1 0 137 2 0 0 0 2Total 39 57 43 31 170

1 2 3 4 5 6 70

2

4

6

8

10

12

14

16

10

4 4

76 6

2

11 11

13

11

56

0

15

6

11

9

1 10

78

5

7

4

0 0

income&premium

<2000020000-3000030000-40000>40000

income

prem

ium

373

Interpretation:

From the above chart we can show that Relation between accident ins. Premium and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 4th rank to premium for buying Vehicle ins.out of which more than people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to premium for buying Vehicle ins.

There are total 33 people who give 1st rank to premium. Out of which 10 people income is less than 20000, 11 people income are 20000 to 30000. And 15 people income are 30000 to 40000. And also in this people’s income more than 40000.

There are 29 people who give 2nd rank to the premium out of which, 4 people’s income are less than 20000. And 11 people’s income are 20000 to 30000.and 8 people’s income are more then 20000.

There are total 34 people’s who give 4th rank to the premium for buying vehicle insurance out of which , 7 people’s income are less than 2oooo. 11 people’s incomes are 20000 to 30000. 9 people’s incomes are 30000 to40000 and 7 people’s incomes are more then 40000.

There are total 16 people’s give 5th rank to the premium for buying vehicle ins. Out of which 6 people’s income are less than 20000. Here total 170 people’s give important where buy vehicle insurance. In this total 39 people’s income are less than 20000rs and maximum 57 people’s income are 20000 to 30000.and less than 31 people’s income are more than 40000rs.

374

2. Income & cash less benefit:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 0 0 0 02 0 1 0 0 13 0 0 0 1 14 1` 0 0 0 15 0 0 0 0 06 0 0 0 0 07 0 0 0 0 0total 1 1 0 1 3

1 2 3 4 5 6 70

0.2

0.4

0.6

0.8

1

1.2

0 0 0

1

0 0 00 0

1

0 0 0 00 0 0 0 0 0 00 0 0

1

0 0 0

income & cash less benefit

<2000020000-3000030000-40000>40000

income

c.l.b

375

Interpretation:

From the above chart we can show that Relation between cash less benefit and income. In this diagram x axes shows that rank of premium and Y axes shows that income are customers.

Form the above chart we can say that maximum people give 4th rank to cash less benefit for buying vehicle ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th and 7th rank to cash less benefit for buying vehicle ins.

There are no one people give 1st rank

There are 1 people who give 2nd rank . Out of which, 0 people’s income are less than 20000. And 1 people’s income are 20000 to 30000.and 0 people’s income are more then 20000.

There are total no one people’s who give 4 th rank to the premium for buying vehicle insurance out of which ,no one people’s income are 20000 to 30000.

In this no any one people 4th, 5th, 6th. And 7th rank Here total 3 people’s give important where buy vehicle insurance. In this total 1 people’s income is less than 20000rs and maximum 1 people’s income are 20000 to 30000.and less than 1 people’s income are more than 40000rs.

376

3. Income & age coverage:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 0 0 0 02 0 1 0 0 13 1 0 0 1 24 0 0 0 0 05 0 0 0 0 06 0 0 0 0 07 0 0 0 0 0total 1 1 0 1 3

1 2 3 4 5 6 70

0.2

0.4

0.6

0.8

1

1.2

0 0

1

0 0 0 00

1

0 0 0 0 00 0

1

0 0 0 0

income & age coverage

<2000020000-3000030000-40000>40000

income

age

cov.

377

Interpretation:

From the above chart we can show that Relation between age coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 5th rank to age coverage for buying vehicle ins.out of which more people income are 20000 rs to 30000rs and minimum people give 6th rank to age coverage for buying vehicle ins.

There are total 0 people who give 1st rank to age coverage. Out of which no any people income are <20000, And only one person’s income more than 40000.There are 5 people who give 2nd rank to the age coverage out of which, no any people’s income are less than 20000. And 2 people’s income are 20000 to 30000.and 3 people’s income are more then 20000.

In this no any one people give 1st, 4th. 5th, 6th and 7th rank to vehicle ins. Here total 3 people’s give important where buy vehicle insurance. In this total1 people’s income are less than 20000rs and maximum 1 people’s income are 20000 to 30000.and less than 1 people’s income are more than 40000rs.

378

4. Income & family coverage:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 1 0 1 22 1 0 0 0 13 0 0 0 0 04 0 0 0 0 05 0 0 0 0 06 0 0 0 0 07 0 0 0 0 0total 1 1 0 1 3

1 2 3 4 5 6 70

0.2

0.4

0.6

0.8

1

1.2

0

1

0 0 0 0 0

1

0 0 0 0 0 0

1

0 0 0 0 0 0

income & family coverage

<2000020000-3000030000-40000>40000

income

fam

ily co

vera

ge

379

Interpretation:

From the above chart we can show that Relation between family coverage and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 1th rank to family coverage for buying vehicle ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to family coverage for buying vehicle ins.

There are total 2 people who give 1st rank to Family coverage. Out of which one people income are <20000, 1 people income are 20000 to 30000. And no anyone people income are 30000 to 40000. And also in this 1 people’s income more than 40000.

There are 1 people who give 2nd rank to the family coverage out of which, no any people’s income are less than 20000. Those people’s are not buy vehicle insurance. And 1 people’s income are 20000 to 30000.and 1 people’s income are more then 20000.

Here total 3 people’s give important to where buy vehicle insurance. In this total 1 people’s income are less than 20000rs and maximum 1people’s income are 20000 to 30000.and also 1 people’s income are more than 40000rs.

380

5. Income & company:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 1 0 0 0 12 0 0 0 1 13 0 0 0 0 04 0 1 0 0 15 00 0 0 0 06 0 0 0 0 07 0 0 0 0 0total 1 1 0 1 3

1 2 3 4 5 6 70

0.2

0.4

0.6

0.8

1

1.2

1

0 0 0 0 0 00 0 0

1

0 0 00

1

0 0 0 0 0

income & company

<2000020000-3000030000-40000>40000

income

com

pany

381

Interpretation:

From the above chart we can show that Relation between health ins. company and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

Form the above chart we can say that maximum people give 6th rank to company for buying vehicle ins.out of which more people income are 20000 rs to 30000rs and minimum people give 7th rank to company for buying health ins.there income are more then 20000.

There are total 1 people’s who give 4 th rank to company the for buying vehicle insurance out of which ,1 people’s income are less than 2oooo.and 1people’s are income more than 40000.

Here total 3 people’s give important to where buy vehicle insurance. In this total 1 people’s income are less than 20000rs and maximum1 people’s income are 20000 to 30000.and less than 1 people’s income are more than 40000rs

382

6. Income & speed claim settlement

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 1 2 0 1 42 1 0 0 1 23 1 1 0 1 34 0 0 0 0 05 0 0 0 0 06 1 0 0 1 27 0 0 0 1 1total 4 3 0 5 12

1 2 3 4 5 6 70

0.5

1

1.5

2

2.5

1 1 1

0 0

1

0

2

0

1

0 0 0 0

1 1 1

0 0

1 1

income & speed claim sett.

<2000020000-3000030000-40000>40000

income

s.c.s

383

Interpretation:

From the above chart we can show that Relation between speed claim settlement and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

In buying vehicle INS. There are so many factors important. But Form the above chart we can say that maximum people give 4th rank to speed claim settlement for buying fire ins.out of which more people income are 20000 rs to 30000rs and minimum people give and 7th rank to speed clime settlement for buying vehicle ins.

There are total 4 people who give 1st rank to speed claim settlement. Out of which There are 2 people who give 2nd rank to the s.c. settlement There are total 3 people’s who give 4th rank to s.c . Settlement the for buying vehicle insurance out of which, 4 people’s income are less than 2oooo.

There are total no any one people’s give 5th rank to the company for buying fire ins. Out of which no any people’s income are less than 20000.. Here total 12 people’s give important to where buy vehicle insurance. In this total 4 people’s income are less than 20000rs and maximum3 people’s income are 20000 to 30000.and less than 5 people’s income are more than 40000rs

384

7. Income & others:

IncomeRank

<20000 20000-30000

30000-40000

>40000 total

1 0 0 0 0 02 0 0 0 0 03 0 0 0 0 04 0 0 0 0 05 0 0 0 0 06 1 1 0 0 27 9 4 0 4 17total 10 5 0 4 19

1 2 3 4 5 6 70

1

2

3

4

5

6

7

8

9

10

0 0 0 0 0

1

9

0 0 0 0 0

1

4

0 0 0 0 0 0

4

income & others

<2000020000-3000030000-40000>40000

income

othe

rs

385

Interpretation:

From the above chart we can show that Relation between other factors and income. In this diagram x axes shows that rank and Y axes shows that income are customers..

In buying vehicle ins. There are so many factors important. But Form the above chart we can say that maximum people give 7th rank to others factors for buying vehicle ins.out of which more people income are 20000 rs to 30000rs and minimum people give 1st rank to others factors for buying fire ins.

In this all general ins. Customer no more important give other factor its prove our chart. Here no one people give 1st, 2nd, 3rd, 4th, and 5th rank where buy vehicle ins.

There are total 2 people’s who give 6th rank to others factors the for buying vehicle insurance out of which,1 people’s income are less than 2oooo.1 people’s incomes are 20000 to 30000. There are total 17 people’s give 7th rank to the for buying vehicle ins. Out of which 1 people’s income are 20000 to 30000. . Here total 19 people’s give important to where buy vehicle insurance. In this total 10 people’s income are less than 20000rs and maximum 5 people’s income are 20000 to 30000.and less than 4 people’s income are more than 40000rs

386

6.2.3. Occupation & types of insurance:

occupationtypes of ins.

Business

Profession Service House wife Total

Health .ins 93 19 131 14 257Fire .ins 22 3 0 0 25Theft .ins 16 1 5 0 22Accident .ins 57 8 64 2 131

Vehicle .ins 71 12 80 2 165Total 259 43 280 18 600

Health ins. Fire ins. Theft ins. Accident ins.

vehicle ins0

102030405060708090

100 93

2216

57

71

19

34

18 1213

05

64

80

14

0 0 2 2

occupation & types of insurance

BusinessprofessionServicesHouse wife

types of insurance

occu

patio

n

387

Interpretation

In the above chart we can shows that relation between occupation & types of insurance. Here total 600 customers. Out of which 259 people’s is own business men. 43 people is profession. 280 people are in the service sector. And in house wife sector 18 people included whose buy insurance. Here in 600 people’s out of which maximum people is in the service sector.

In the health INS total 257 people’s out of which maximum pepole’s in the service sector. And minimum people’s in the house wife sector. In the fire ins total 25 people’s out of which maximum people’s in the business. And minimum people’s in the profession sector. In this fire ins. No any one people’s comes service and house wife sector.

In the Accident ins total 131 people’s out of which maximum pepole’s in the service sector. And minimum people’s in the house wife sector. In the Vehicle insurance total 165 people out of which maximum pepole’s in the service sector. And minimum people’s in the house wife sector.

388

6.2.4.: Income & types of insurance:

incometypes of ins.

<20000 20000-30000

30000-40000

>40000 Total

Health ins. 88 100 35 34 257Fire ins. 2 10 2 11 25Theft ins. 7 6 0 9 22Accident ins. 33 59 19 20 31Vehicle ins. 43 63 28 31 165Total 173 238 84 105 600

health in-surance

fire ins. theft ins. accident ins. vehicle ins.0

20

40

60

80

100

120

88

27

3343

100

10 6

59 63

35

2 0

1928

34

11 920

31

income & types of insurance

<2000020000-3000030000-40000>40000

types of insurance

inco

me

389

Interpretation:

From the above chart we can show that Relation between Types of insurance. and income. In this diagram x axes shows that types of insurance and Y axes shows that income of customers..

Here total 600 customers. Out of which 173 people’s income are less than 20000. 238 people’s income are 20000 to 30000.and 84 people’s income are 30000 to 40000. Here in 600 people out of whom maximum people are income are 20000 to 30000.

In the health INS total 257 people’s out of which maximum people’s income are 20000 to 30000.. And minimum people’s incomes are more than 40000. In the fire INS total 25 people out of which maximum people’s income are more than 40000. And minimum people’s incomes are 20000 to 30000. In this fire INS. No anyone people’s incomes are 30000 to 40000.

In the Accident ins total 31 people’s out of which maximum people’s income are 20000 to 30000. And minimum people’s income rae 30000 to 40000. In the Vehicle insurance total 165 people out of which maximum people’s income are 20000 to 30000 And minimum people’s income are 30000 to 40000.

390

6.2.5.: occupation & insurance company:

1. Occupation & health insurance companies:

Occupation

Health ins. Com.

Business Profession Service House wife

Total

National ins.co. 7 4 19 6 36New ind.ins.co. 17 2 13 3 35Oriental 22 2 12 1 37United india 5 1 11 1 18Icici lombard 7 6 20 2 35Bajaj Allianz 6 1 13 1 21TATA AIG 1 0 2 0 3Others 23 3 42 0 68Total 88 19 132 14 253

N.I N.I.A ORIENTAL UNITED ICICI LOM.BAJAJ ALI.TATA AIG. OTHERS0

5

10

15

20

25

30

35

40

45

7

17

22

57 6

1

23

42 2 1

6

1 03

19

13 12 11

20

13

2

42

63

1 1 2 1 0 0

occupation & health ins. company

bussinessprofessionservicehouse wife

health ins. company

occu

patio

n

391

INTERPRETATION

From the above chart we can show that Relation between occupation . and insurance companies In this diagram x axes shows that insurance companies and Y axes shows that occupation of customers..

In this total 253 people’s buy health insurance. Out of which maximum pepole’s is in the service sector. And minimum people’s is in house wife sector. Maximum people’s; buying health ins of oriental company ltd.

1. In national INS company: In this total 36 people’s buy ins. Out of which maximum people’s is in service sector.

2. New India ins. Company: In this total 35 people’s buy ins. Out of which also maximum people’s comes service sector.

3. Oriental ins company: : In this total 37 people’s buy ins. Out of which maximum people’s is in business sector

4 united ins. Company: : In this total 18 people’s buy ins. Out of which maximum people’s is in service sector

5 ICICI Lombard com.: : In this total 35 people’s buy ins. Out of which maximum people’s is in service sector

6 Bajaj Allianz: : In this total 21 people’s buy ins. Out of which maximum people’s is in service sector

7Tata AIG: : In this total 36people’s buy ins. Out of which maximum people’s is in service sector

8 other: : In this total 68 people’s buy ins. Out of which maximum people’s is in service sector

392

2. Occupation & companies of fire insurance:

occupation

fire ins. com

Business Profession Service House wife

Total

National ins.co. 3 2 0 0 5New ind.ins.co. 2 0 0 0 2Oriental 4 0 0 0 4United India 3 0 0 0 3Icici Lombard 3 1 0 0 4Bajaj Allianz 0 0 0 0 0TATA AIG 2 0 0 0 2Others 4 0 0 0 4Total 21 3 0 0 24

N.i n.i.a oriental united icici lom. bajaj ali. tata aig others0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

3

2

4

3 3

0

2

4

2

0 0 0

1

0 0 0

occupation & fire insurance company

bussinessprofessionservicehouse wife

fire ins. company

occu

patio

n

393

INTERPRETATION

From the above chart we can show that Relation between occupation . and insurance companies In this diagram x axes shows that insurance companies and Y axes shows that occupation of customers..

In this total 24 people’s buy fire insurance. Out of which maximum people’s is in the service sector. And minimum people’s is in house wife sector. Maximum people’s; buying fire ins of oriental company ltd.

1. In national INS company: In this total 5 people’s buy ins. Out of which maximum people’s is in business..

2. New India ins. Company: In this total 2 people’s buy ins. Out of which also maximum people’s comes business.

3. Oriental ins company: In this total 4 people’s buy ins. Out of which maximum people’s is in business.

4 united ins. Company: In this total 3 people’s buy ins. Out of which maximum people’s is in business.

5 ICICI Lombard com.: In this total 4 people’s buy ins. Out of which maximum people’s is in business.

6 Bajaj Allianz: : In this total no any people’s buy ins. Of this company.

7Tata AIG: : In this total 2 people’s buy ins. Out of which maximum people’s is in business.

8 other: : In this total 4 people’s buy ins. Out of which maximum people’s is in business.

Here no any customers of service sector and house wife sector bcz they not requires safety of fire. Always upper business organization buying fire insurances. So fire ins. Company gaining in the business unit.

394

3. Occupation & companies of theft insurance:

occupation

Theft ins com.

Business Profession Service House wife

Total

National ins.co. 1 1 1 0 3New ind.ins.co. 1 0 1 0 2Oriental 5 0 0 0 5United india 2 0 0 0 2Icici lombard 2 0 1 0 3Bajaj Allianz 1 0 0 0 1TATA AIG 1 0 0 0 1Others 0 0 1 0 1Total 13 1 4 0 18

N.I N.I.A ORIENTAL UNITED ICICI LOM.

BAJAJ ALI.

TATA AIG OTHERS0

1

2

3

4

5

6

1 1

5

2 2

1 1

0

1

0 0 0 0 0 0 0

1 1

0 0

1

0 0

1

occupation & theft ins. company

bussinessprofessionservicehouse wife

theft ins company

occu

patio

n

395

INTERPRETATION

From the above chart we can show that Relation between occupation. And insurance companies In this diagram x axes shows that insurance companies and Y axes shows that occupation of customers..

In this total 18 people’s buy Theft insurance. Out of which maximum people’s is in the service sector. And a minimum person is in house wife sector. Maximum people’s buying theft ins of oriental company ltd.

1. In national INS company: In this total 3 people’s buy ins. Out of which same people’s comes all sector.

2. New India ins. Company: In this total 2 people’s buy ins. Out of which also maximum people comes business sector.

3. Oriental ins company: In this total 5 people’s buy ins. Out of which maximum people’s is in business sector

4 united ins. Company: In this total 2 people’s buy ins. Out of which maximum people’s is in business sector

5 ICICI Lombard com.: In this total 3 people’s buy ins. Out of which maximum people’s is in business sector

6 Bajaj Allianz: In this total 1 people’s buy ins. Out of which maximum people is in Business sector

7Tata AIG: In this total 1 people’s buy ins. Out of which maximum people is in business sector

8 other: In this total 1 people’s buy ins. Out of which maximum people is comes business sector

396

4. Occupation & companies of accident insurance:

Occupation

Accident ins com.

Business Profession Service House wife

Total

National ins.co. 8 4 11 0 23New ind.ins.co. 9 0 8 0 17Oriental 14 0 8 1 23United india 3 1 12 0 16Icici lombard 5 2 11 0 18Bajaj Allianz 7 1 6 1 15TATA AIG 2 0 2 0 4Others 8 0 5 0 13Total 56 8 63 2 129

N.I N.I.A ORIENTAL UNITED ICICI LOM.BAJAJ ALI.TATA AIG. OTHERS0

2

4

6

8

10

12

14

16

89

14

3

5

7

2

8

4

0 01

21

0 0

11

8 8

1211

6

2

5

occupation & accident ins. comany

businessprofessionservicehouse wife

accident company

occu

patio

n

397

INTERPRETATION

From the above chart we can show that Relation between occupation. And insurance companies In this diagram x axes shows that insurance companies and Y axes shows that occupation of customers..

In this total 129 people’s Accident insurance. Out of which maximum people’s is in the service sector. And minimum people are in house wife sector. Maximum people’s; buying accident ins of oriental company ltd.

1. In national INS company: In this total 23 people’s buy ins. Out of which maximum people’s is in service sector.

2. New India ins. Company: In this total 17 people’s buy ins. Out of which also maximum people’s comes Business sector.

3. Oriental ins company: In this total 23 people’s buy ins. Out of which maximum people’s is in business sector

4 united ins. Company: In this total 16 people’s buy ins. Out of which maximum people’s is in service sector

5 ICICI Lombard com.: In this total 18 people’s buy ins. Out of which maximum people’s is in service sector

6 Bajaj Allianz: In this total 15 people’s buy ins. Out of which maximum people’s is in business sector

7Tata AIG: In this total 4 people’s buy ins. Out of which maximum people’s is in service sector

8 other: In this total 13 people’s buy ins. Out of which maximum people’s is in business sector.

398

5. Occupation & companies of vehicle insurance:

Occupation

Vehicle ins. Com.

Business Profession Service House wife

Total

National ins.co. 5 2 11 0 18New ind.ins.co. 12 2 8 0 22Oriental 9 0 8 0 17United india 7 1 8 0 16Icici lombard 10 1 18 1 30Bajaj Allianz 12 4 12 0 28TATA AIG 5 2 4 0 11Others 12 0 10 1 23Total 72 12 79 2 165

N.I N.I.A ORIENTAL UNITED ICICI LOM.BAJAJ ALI. TATA AIG OTHERS0

2

4

6

8

10

12

14

16

18

20

5

12

9

7

10

12

5

12

2 2

01 1

4

2

0

11

8 8 8

18

12

4

10

0 0 0 01

0 01

occupation & vehicle ins. company

businessprofessionservicehouse wife

vehicle ins. company

occu

patio

n

399

INTERPRETATION

From the above chart we can show that Relation between occupation . and insurance companies In this diagram x axes shows that insurance companies and Y axes shows that occupation of customers..

In this total 165 people’s buy Vehicle insurance. Out of which maximum people’s is in the service sector. And minimum people’s is in house wife sector. Maximum people’s; buying Vehicle ins of oriental company ltd.

1. In national INS company: In this total 18 people’s buy ins. Out of which maximum people is in service sector.

2. New India ins. Company: In this total 22 people’s buy ins. Out of which also maximum people’s comes Business sector.

3. Oriental ins company: In this total 17 people’s buy ins. Out of which maximum people’s is in business sector

4 united ins. Company: In this total 16 people’s buy ins. Out of which maximum people’s is in service sector

5 ICICI Lombard com.: In this total 30 people’s buy ins. Out of which maximum people’s is in service sector

6 Bajaj Allianz: In this total 28 people’s buy ins. Out of which maximum people’s is in service sector

7Tata AIG: In this total 11 people’s buy ins. Out of which maximum people’s is in service sector.

8 other: In this total 23 people’s buy ins. Out of which maximum people’s is in Business sector

400

6.3. CHI-χ ² ANALYSIS

6.3.1. Income and payment of INS premium:

1. Health INS:

<20000 20000-30000

30000-40000

>40000 Total

<2000 55(28.44) 23(33.01) 3(11.44) 3(11.11) 842001-5000 26(33.51) 54(38.91) 15(13.48) 4(13.1) 995001-8000 6(15.57) 16(18.08) 13(6.26) 11(6.09) 46>8000 0(9.48) 8(11) 4(3.81) 16(3.70) 28total 87 101 35 34 257

Ho: payment of premium is independent from income

H1: payment of premium is dependent on income

Expected frequency of cell (1,1)=(87∗84 )

257 =28.44

χ ²=Ʃ(Oi−ei) ²

ei

=24.80+3.04+…………+40.89

=122.55

D.f =(r-1)(c-1) =(4-1)(4-1) =9

On 9 d.f and at 5% level of significance table value of χ ² =16.92

χ ² cal >χ ² tab

Ho: may be rejected

Payment of premium is dependent on income.

401

2. Fire ins:

<20000 20000-30000

30000-40000

>40000 Total

<2000 5(1.2) 0(1.4) 0(0.4) 0(2) 52001-5000 1(2.64) 5(3.08) 1(0.88) 4(4.4) 115001-8000 0(1.2) 2(1.4) 1(0.4) 2(2) 5>8000 0(0.96) 0(1.12) 0(0.32) 4(1.6) 4total 6 7 2 10 25

Ho: payment of premium is independent from income

H1: payment of premium is dependent on income

Expected frequency of cell (1,1)=(6∗5)

25 =1.2

χ ²=Ʃ(Oi−ei) ²

ei

=12.03+1.4+…………..+3.6

=26.83

d.f= (r-1)(c-1) =(4-1)(4-1) =9

on 9 d.f and at 5% level of significance table value of χ ² =16.92

χ ² cal >χ ² tab

Ho may be rejected

Payment of premium is dependent on income.

402

3.Theft ins:

<20000 20000-30000

30000-40000

>40000 Total

<2000 3(1.27) 0(1.09) 0(0) 1(1.64) 42001-5000 4(2.23) 6(1.91) 0(0) 3(2.86) 75001-8000 0(2.55) 0(2.18) 0(0) 2(3.27) 8>8000 9(0.95) 0(0.82) 0(0) 3(1.23) 3Total 7 6 0(0) 9 22

Ho: payment of premium is independent from income

H1: payment of premium is dependent on income

Expected frequency of cell (1,1)=(7∗4 )

22 = 1.27

χ ²=Ʃ(Oi−ei) ²

ei

=2.36+1.09+………………+2.55

=90.67

d.f= (r-1)(c-1) =(4-1)(4-1) =9

on 9 d.f and at 5% level of significance table value of χ ² =16.92

χ ² cal >χ ² tab

Ho may be rejected

Payment of premium is dependent on income.

403

4. Accident ins:

<20000 20000-30000

30000-40000

>40000 Total

<2000 14(11.26) 21(19.78) 4(6.48) 5(6.48) 442001-5000 16(15.60) 31(27.43) 9(8.98) 5(8.98) 615001-8000 3(3.58) 4(6.29) 4(2.06) 3(2.06) 14>8000 0(2.56) 2(4.50) 2(1.47) 6(1.47) 10total 33 58 19 19 129

Ho: payment of premium is independent from income

H1: payment of premium is dependent on income

Expected frequency of cell (1,1)=(33∗44 )

129 = 11.26

χ ²=Ʃ(Oi−ei) ²

ei

=0.67+0.08+…………….+13.96

=26.15

d.f= (r-1)(c-1) =(4-1)(4-1) =9

on 9 d.f and at 5% level of significance table value of χ ² =16.92

χ ² cal >χ ² tab

Ho may be rejected

Payment of premium is dependent on income.

404

5. Vehicle ins.:

<20000 20000-30000

30000-40000

>40000 Total

<2000 31(19.46) 29(29.66) 5(12.51) 11(14.37) 762001-5000 9(12.55) 22(19.12) 11(8.07) 7(9.26) 495001-8000 2(6.91) 9(10.54) 11(4.45) 5(5.10) 27>8000 0(3.07) 4(4.68) 0(1.98) 8(2.27) 12total 42 64 27 31 164

Ho: payment of premium is independent from income

H1: payment of premium is dependent on income

Expected frequency of cell (1,1)=(42∗76)

164 = 19.46

χ ²=Ʃ(Oi−ei) ²

ei

=6.84+0.01+………....+14.46

=47.79

d.f= (r-1)(c-1) =(4-1)(4-1) =9

on 9 d.f and at 5% level of significance table value of χ ² =16.92

χ ² cal >χ ² tab

Ho may be rejected

Payment of premium is dependent on income.

405

6.3.2.: Occupation & types of insurance:

Business Profession Service House wife Total

Health .ins 93(110 .94) 19(18.42) 131(119.93) 14(7.71) 257Fire .ins 22(10.79) 3(1.79) 0(11.66) 0(0.75) 25Theft .ins 16(9.50) 1(1.58) 5(10.27 ) 0(0.66) 22Accident .ins

57(56.54) 8(9.39) 64(61.13) 2(3.93) 131

Vehicle .ins 71(71.23) 12(11.83) 80(77) 2(4.95) 165Total 259 43 280 18 600

Ho: there is no significant difference between occupation and types of insurance taken by people.

H1: there is significant difference between occupation and types of insurance taken by people.

Expected frequency of cell (1,1)=(259∗257)

600 = 110.94

χ ²=Ʃ(Oi−ei) ²

ei

=2.90+0.02+…………….+1.76

=51.18

on 12 d.f and at 5% level of significance table value of χ ² =21.03

χ ² cal >χ ² tab

406

Ho may be rejected

there is significant difference between occupation and types of insurance taken by people

6.3.3.: Income & types of insurance:

<20000 20000-30000

30000-40000

>40000 Total

Health ins. 88(74.10) 100(101.94) 35(35.98) 34(44.98) 257Fire ins. 2(7.21) 10(9.92) 2(3.5) 11(4.38) 25Theft ins. 7(6.34) 6(8.73) 0(3.08) 9(3.85) 22Accident ins.

33(37.77) 59(51.96) 19(18.34) 20(22.93) 31

Vehicle ins. 43(47.8) 63(65.45) 28(23.1) 31(28.88) 165Total 173 238 84 105 600

Ho: there is no significant difference between income and types of insurance

H1: there is significant difference between income and types of insurance

Expected frequency of cell (1,1)=(173∗257)

600 = 74.10

χ ²=Ʃ(Oi−ei) ²

ei

=2.61+0.04+…………….+0.16

=34.31

on 12 d.f and at 5% level of significance table value of χ ² =21.03

χ ² cal >χ ² tab

407

Ho may be rejected

there is significant difference between income and types of insurance taken by people

6.3.4.: occupation & insurance companies:

1. Occupation & health insurance companies :

Business Profession Service House wife

Total

National ins.co.

7(12.52) 4(2.70) 19(18.78) 6(1.99) 36

New ind.ins.co.

17(12.17) 2(2.63) 13(18.26) 3(1.94) 35

Oriental 22(12.87) 2(2.78) 12(19.30) 1(2.05) 37United india

5(6.26) 1(1.35) 11(9.39) 1(1) 18

Icici lombard

7(12.17) 6(2.63) 20(18.26) 2(1.94) 35

Bajaj Allianz

6(7.30) 1(1.58) 13(10.96) 1(1.16) 21

TATA AIG 1(1.03) 0(0.23) 2(1.57) 0(0.17) 3Others 23(23.65) 3(5.11) 42(35.48) 0(3.76) 68Total 88 19 132 14 253

Ho :there is no significant different between occupation and selection of health insurance company.

H1 : there is significant different between occupation and selection of health insurance company.

408

Expected frequency of cell (1,1)=(88∗36)

253 = 12.17

χ ²=Ʃ(Oi−ei) ²

ei =2.43+0.63+………………….+3.76

=39.89

on 21 d.f and at 5% level of significance table value of χ ² =32.67

χ ² cal >χ ² tab

Ho may be rejected there is significant different between occupation and selection of health insurance company.

2. Occupation & companies of fire insurance:

Business Profession Service House wife

Total

National ins.co.

3(4.38) 2(0.63) 0(0) 0(0) 5

New ind.ins.co.

2(1.75) 0(0.25) 0(0) 0(0) 2

Oriental 4(3.5) 0(0.5) 0(0) 0(0) 4United India

3(2.63) 0(0.38) 0(0) 0(0) 3

Icici Lombard

3(3.5) 1(0.5) 0(0) 0(0) 4

Bajaj Allianz

0(0) 0(0) 0(0) 0(0) 0

TATA AIG 2(1.75) 0(0.25) 0(0) 0(0) 2Others 4(4) 0(0.5) 0(0) 0(0) 4Total 21 3 0 0 24

Ho :there is no significant different between occupation and selection of fire insurance company.

H1 : there is significant different between occupation and selection of fire insurance company.

409

Expected frequency of cell (1,1)=(21∗5)

24 = 4.38

χ ²=Ʃ(Oi−ei) ²

ei =0.43+2.98+………………….+0

=6.06

on 21 d.f and at 5% level of significance table value of χ ² =32.67

χ ² cal <χ ² tab

Ho may be accepted there is no significant different between occupation and selection of fire insurance company.

3. Occupation & companies of theft insurance:

Business Profession Service House wife

Total

National ins.co.

1(2.17) 1(0.17) 1(0.67) 0(0) 3

New ind.ins.co.

1(1.44) 0(0.11) 1(0.44) 0(0) 2

Oriental 5(3.61) 0(0.28) 0(1.11) 0(0) 5United india

2(1.44) 0(0.11) 0(0.44) 0(0) 2

Icici lombard

2(2.17) 0(0.17) 1(0.67) 0(0) 3

Bajaj Allianz

1(0.72) 0(0.06) 0(0.22) 0(0) 1

TATA AIG 1(0.72) 0(0.06) 0(0.22) 0(0) 1Others 0(0.72) 0(0.06) 1(0.22) 0(0) 1Total 13 1 4 0 18

Ho :there is no significant different between occupation and selection of theft insurance company.

410

H1 : there is significant different between occupation and selection of theft insurance company.

Expected frequency of cell (1,1)=(13∗3)

18 = 2.17

χ ²=Ʃ(Oi−ei) ²

ei =0.63+4.05+………………….+0

=13.16

on 21 d.f and at 5% level of significance table value of χ ² =32.67

χ ² cal <χ ² tab

Ho may be accepted there is no significant different between occupation and selection of theft insurance company.

4. Occupation & companies of accident insurance:

Business Profession Service House wife

Total

National ins.co.

8(9.98) 4(1.43) 11(11.23) 0(0.36) 23

New ind.ins.co.

9(7.38) 0(0.32) 8(8.30) 0(0.26) 17

Oriental 14(9.98) 0(1.43) 8(11.23) 1(0.36) 23United india

3(6.93) 1(0.99) 12(7.81) 0(0.25) 16

Icici lombard

5(7.81) 2(1.12) 11(8.79) 0(0.28) 18

Bajaj Allianz

7(6.51) 1(0.93) 6(7.32) 1(0.23) 15

TATA AIG 2(1.74) 0(0.25) 2(1.93) 0(0.06) 4Others 8(5.64) 0(0.80) 5(6.35) 0(0.20) 13Total 56 8 63 2 129

411

Ho :there is no significant different between occupation and selection of accident insurance company.

H1 : there is significant different between occupation and selection of accident insurance company.

Expected frequency of cell (1,1)=(56∗23)

129 = 9.98

χ ²=Ʃ(Oi−ei) ²

ei =0.39+4.61+………………….+0.20

=24.12

on 21 d.f and at 5% level of significance table value of χ ² =32.67

χ ² cal <χ ² tab

Ho may be accepted there is no significant different between occupation and selection of the accident insurance company.

5. Occupation & companies of vehicle insurance:

Business Profession Service House wife

Total

National ins.co.

5(7.85) 2(1.31) 11(8.62) 0(0.22) 18

New ind.ins.co.

12(9.6) 2(1.6) 8(10.53) 0(0.27) 22

Oriental 9(7.42) 0(1.24) 8(8.14) 0(0.21) 17United india

7(6.98) 1(1.16) 8(7.66) 0(0.19) 16

Icici lombard

10(13.09) 1(2.18) 18(14.36) 1(0.36) 30

Bajaj Allianz

12(12.21) 4(2.04) 12(13.41) 0(0.34) 28

TATA AIG 5(4.8) 2(0.8) 4(5.27) 0(0.13) 11Others 12(10.04) 0(1.67) 10(11.01) 1(0.28) 23

412

Total 72 12 79 2 165

Ho :there is no significant different between occupation and selection of vehicle insurance company.

H1 : there is significant different between occupation and selection of vehicle insurance company.

Expected frequency of cell (1,1)=(72∗18)

165 = 7.85

χ ²=Ʃ(Oi−ei) ²

ei =1.03+0.36+………………….+1.85

=18.08

on 21 d.f and at 5% level of significance table value of χ ² =32.67

χ ² cal <χ ² tab

Ho may be accepted there is no significant different between occupation and selection of the vehicle insurance company.

6.3.5.: .Income & insurance companies:

1. Income & companies of health insurance:

<20000 20000-30000

30000-40000

>40000 Total

National ins.co

19(12.28) 9(14.09) 4(4.88) 4(4.74) 36

New ind.ins.co

13(11.94) 15(13.70) 4(4.75) 3(4.61) 35

Oriental 10(12.62) 12(14.48) 9(5.02) 6(4.88) 37United 8(6.14) 7(7.05) 1(2.44) 2(2.37) 18Icici lombard

7(11.94) 14(13.70) 8(4.75) 6(4.61) 35

Bajaj 5(7.16) 11(8.22) 1(2.85) 4(2.77) 21

413

AllianzTATA AIG 0(2.73) 4(3.13) 2(1.09) 2(1.05) 8Others 26(23.19) 29(26.62) 6(9.22) 7(8.96) 68Total 88 101 35 34 258

Ho :there is no significant different between income level of people and selection of health insurance company.

H1: there is significant different between income level of people and selection of health insurance company.

Expected frequency of cell (1,1)=(88∗36)

258 = 12.28

χ ²=Ʃ(Oi−ei) ²

ei =3.68+1.84+………………….+0.43

=27.25

on 21 d.f and at 5% level of significance table value of χ ² =32.67

χ ² cal <χ ² tab

Ho may be accepted there is no significant different between income level of people and selection of health insurance company.

2. Income & companies of fire insurance:

<20000 20000-30000

30000-40000

>40000 Total

National ins.co

0(0.30) 0(1.5) 1(0.30) 4(2.88) 5

New ind.ins.co

0(0.67) 1(3.33) 0(0.67) 10(6.33) 11

Oriental 0(0.24) 3(1.21) 0(0.24) 1(2.30) 4United 1(0.18) 0(0.91) 0(0.18) 2(1.72) 3Icici lombard

1(0.24) 2(1.21) 1(0.24) 0(2.30) 4

Bajaj 0(0) 0(0) 0(0) 0(0) 0

414

AllianzTATA AIG 0(0.12) 0(0.61) 0(0.12) 2(1.13) 2Others 0(0.24) 4(1.21) 0(0.24) 0(2.30) 4Total 2 10 2 19 33

Ho : there is no significant different between income level of people and selection of fire insurance company.

H1: there is significant different between income level of people and selection of fire insurance company.

Expected frequency of cell (1,1)=(2∗5)

33 = 0.30

χ ²=Ʃ(Oi−ei) ²

ei =0.30+1.5+………………….+2.30

=35.65

on 21 d.f and at 5% level of significance table value of χ ² =32.67

χ ² cal >χ ² tab

Ho may be rejected. there is significant different between income level of people and selection of fire insurance company.

3. Income & companies of theft insurance:

<20000 20000-30000

30000-40000

>40000 Total

National ins.co

1(0.95) 0(0.82) 0(0) 2(1.23) 3

New ind.ins.co

2(1.27) 1(1.09) 0(0) 1(1.63) 4

Oriental 1(1.90) 4(1.63) 0(0) 1(2.45) 6United 1(0.63) 0(0.54) 0(0) 1(0.82) 2Icici 1(0.95) 0(0.82) 0(0) 2(1.23) 3

415

lombardBajaj Allianz

1(0.63) 0(0.54) 0(0) 1(0.82) 2

TATA AIG 0(0.32) 0(0.27) 0(0) 1(0.41) 1Others 0(0.32) 1(0.27) 0(0) 0(0.41) 1Total 7 6 0 9 22

Ho : there is no significant different between income level of people and selection of theft insurance company.

H1: there is significant different between income level of people and selection of theft insurance company.

Expected frequency of cell (1,1)=(7∗3)

22 = 0.95

χ ²=Ʃ(Oi−ei) ²

ei =0+0.82+………………….+0.41

=11.99

on 21 d.f and at 5% level of significance table value of χ ² =32.67

χ ² cal <χ ² tab

Ho may be accepted. there is no significant different between income level of people and selection of theft insurance company.

4. Income & companies of accident insurance:

<20000 20000-30000

30000-40000

>40000 Total

National ins.co

9(5.88) 8(10.34) 2(3.39) 4(3.39) 23

New ind.ins.co

3(4.35) 8(7.64) 2(2.50) 4(2.30) 17

Oriental 6(5.88) 11(10.34) 2(2.39) 4(2.39) 23

416

United 7(4.09) 7(7.19) 1(2.36) 1(2.36) 16Icici lombard

2(4.60) 9(8.09) 5(2.65) 2(2.65) 18

Bajaj Allianz

2(3.84) 7(6.74) 4(2.21) 2(2.21) 15

TATA AIG 1(1.02) 1(1.80) 1(0.59) 1(0.59) 4Others 3(3.33) 7(5.84) 2(1.91) 1(0.91) 13Total 33 58 19 19 129

Ho : there is no significant different between income level of people and selection of accident insurance company.

H1: there is significant different between income level of people and selection of accident insurance company.

Expected frequency of cell (1,1)=(33∗23)

129 = 5.88

χ ²=Ʃ(Oi−ei) ²

ei =1.66+0.53+………………….+0.43

=17.13

on 21 d.f and at 5% level of significance table value of χ ² =32.67

χ ² cal <χ ² tab

Ho may be accepted. there is no significant different between income level of people and selection of accident insurance company.

5. Income & companies of vehicle insurance:

<20000 20000-30000

30000-40000

>40000 Total

National ins.co

10(4.69) 6(6.98) 0(2.95) 2(3.38) 18

New ind.ins.co

4(5.73) 10(8.53) 3(3.6) 5(4.13) 22

417

Oriental 4(4.43) 10(6.59) 2(2.78) 1(3.19) 17United 7(4.17) 2(6.21) 5(2.62) 2(3) 16Icici lombard

6(7.88) 12(11.64) 7(4.91) 5(5.64) 30

Bajaj Allianz

6(7.30) 9(10.86) 3(4.58) 10(5.26) 28

TATA AIG 2(2.87) 4(4.27) 4(1.8) 1(2.67) 11Others 4(5.99) 11(8.92) 3(3.76) 5(1.32) 23Total 43 64 27 31 165

Ho : there is no significant different between income level of people and selection of vehicle insurance company.

H1: there is significant different between income level of people and selection of vehicle insurance company.

Expected frequency of cell (1,1)=(43∗18)

165 = 4.69

χ ²=Ʃ(Oi−ei) ²

ei =6.01+0.14+………………….+0.11

=34.15

on 21 d.f and at 5% level of significance table value of χ ² =32.67

χ ² cal >χ ² tab

Ho may be rejected. there is significant different between income level of people and selection of vehicle insurance company.

CONCLUSION:

From the overall report of comparative study of non life insurance industry, we as a report maker

and researcher found that how non life insurance is important for people who living in different

region. in our report we covered all non life insurance and companies of non life insurance both

private and public sector.

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The special thing in our report is that we have covered overall non life insurance industry and on

other hand we came to know about the awareness of people toward insurance and how people

buy the different insurance.

The report indicates that the growth of non life insurance industry is increasing drastically

because of the increment in peoples income, change in life style, change in employment

pattern ,change in corporate functions etc. most of the people are taking general insurance for

the safe life.

From the above we came to know that change in government policy , technology and other

factors also affect to the non life insurance company. now days awareness of people for buying

non life insurance is increase and majority of people taking insurance. In our report we covered

all the benefit and limitation of non life insurance and we also covered major players of the

general insurance company.

The main reason to make this report is to knowing non life insurance focusing on health

insurance and people awareness level, knowledge about insurance and buying behavior of people

toward non life insurance.

So, we come to know that most of the people buying general insurance and people aware about

the general insurance. So non life insurance is mainly focus on health insurance.

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